Second Regular Session Seventy-fourth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 24-0517.01 Christopher McMichael x4775 SENATE BILL 24-123 Senate Committees House Committees Finance A BILL FOR AN ACT C ONCERNING THE CREATION OF AN ENTERPRISE THAT IS EXEMPT FROM101 THE REQUIREMENTS OF SECTION 20 OF ARTICLE X OF THE STATE102 CONSTITUTION TO ADMINISTER A FEE -BASED WASTE TIRE103 MANAGEMENT PROGRAM .104 Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov .) The bill creates the waste tire management enterprise (enterprise). Under current law, when a consumer buys new tires, the retailer charges the consumer a waste tire fee (fee) that is then collected by the department SENATE SPONSORSHIP Priola and Hansen, HOUSE SPONSORSHIP Mauro and Froelich, Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing law. Dashes through the words or numbers indicate deletions from existing law. of public health and environment (department) and distributed into 2 separate cash funds: ! The waste tire administration, enforcement, market development, and cleanup fund; and ! The end users fund. The department uses the money in the waste tire administration, enforcement, market development, and cleanup fund for various purposes related to waste tire recycling and management. The department uses the money in the end users fund to issue rebates to end users of waste tires. The bill shifts the following responsibilities from the department to the enterprise: ! Collecting the fee; ! Managing the waste tire administration, enforcement, market development, and cleanup fund and the end users fund; ! Issuing rebates to end users; and ! In conjunction with the solid and hazardous waste commission, overseeing the activities of waste tire haulers, waste tire generators, waste tire collection facilities, waste tire processors, mobile processors, waste tire monofills, end users, and used tire management. The bill extends the amount of time that the fee may be collected, from December 31, 2025, until December 31, 2040. The enterprise is operated by a board of directors appointed by the executive director of the department. The enterprise's primary duties and functions are to: ! Collect the fee; ! Promote waste tire recycling and management strategies for Colorado; ! Issue revenue bonds; ! Publish waste tire recycling and management strategies online; and ! Engage the services of contractors, consultants, or legal counsel to provide professional and technical assistance related to the conduct of the enterprise. Because the enterprise is a government-owned business, the revenue generated by the enterprise is not subject to section 20 of article X of the state constitution. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. In Colorado Revised Statutes, 30-20-1401, amend2 (1) and (2) as follows:3 SB24-123-2- 30-20-1401. Legislative declaration - rules - enforcement -1 recyclable material. (1) The general assembly hereby finds and declares2 that:3 (a) In order to protect the environment and the public health, there4 is a special need to address problems created by the disposal of waste tires5 and the lack of recycling and beneficial use of waste tires; It is the policy6 of this state to pursue proposals for recycling and other beneficial use of7 waste tires in lieu of storage or landfill disposal, and, in addition, it is the8 intent of the general assembly9 (b) In adopting this part 14, to encourage THE GENERAL ASSEMBLY10 HAS ENCOURAGED the development of techniques for resource recovery,11 recycling, and reuse of waste tires; and to provide for the management of12 waste tires. HOWEVER, THERE IS STILL ROOM FOR IMPROVEMENT13 REGARDING THE MANAGEMENT OF WASTE TIRES IN COLORADO;14 (c) T HE MANAGEMENT OF WASTE TIRES AT THE STATE LEVEL15 PROMOTES ECONOMIC DEVELOPMENT AND PROVIDES SUBSTANTIAL16 ENVIRONMENTAL IMPACTS ACROSS THE STATE ;17 (d) I T IS IN THE STATE'S INTEREST TO PROVIDE FOR THE RECOVERY,18 RECYCLING, REUSE, AND MANAGEMENT OF WASTE TIRES THR OUGH A19 GOVERNMENT-RUN ENTERPRISE;20 (e) P ROVIDING STATEWIDE WASTE TIRE RECYCLING AND21 MANAGEMENT CONSTITUTES A VALUABLE SERVICE AND BENEFIT , AND A22 WASTE TIRE MANAGEMENT ENTERPRISE WOULD PROVIDE USEFUL BUSINESS23 SERVICES TO TIRE RETAILERS, AUTOMOBILE DEALERS, AUTOMOBILE REPAIR24 SHOPS, SERVICE STATIONS, AUTOMOTIVE FLEET CENTERS , WASTE TIRE25 HAULERS, WASTE TIRE COLLECTION FACILITIES, WASTE TIRE PROCESSORS,26 RECYCLING AND WASTE FACILITIES , LANDFILLS, CONSUMERS, AND ALL27 SB24-123 -3- RESIDENTS OF COLORADO;1 (f) I T IS NECESSARY, APPROPRIATE, AND IN THE BEST INTEREST OF2 THE STATE TO ACKNOWLEDGE THAT , BY PROVIDING THE BUSINESS3 SERVICES SPECIFIED IN THIS PART 14, THE ENTERPRISE ENGAGES IN AN4 ACTIVITY CONDUCTED IN THE PURSUIT OF A BENEFIT, GAIN, OR LIVELIHOOD5 AND THEREFORE OPERATES AS A BUSINESS ;6 (g) C ONSISTENT WITH THE DETERMINATION OF THE COLORADO7 SUPREME COURT IN NICHOLL V. E-470 PUBLIC HIGHWAY AUTHORITY, 8968 P.2d 859 (COLO. 1995), THAT THE POWER TO IMPOSE TAXES IS9 INCONSISTENT WITH ENTERPRISE STATUS UNDER SECTION 20 OF ARTICLE10 X OF THE STATE CONSTITUTION, IT IS THE CONCLUSION OF THE GENERAL11 ASSEMBLY THAT THE WASTE TIRE FEE COLLECTED BY THE ENTERPRISE IS12 A FEE, NOT A TAX, BECAUSE THE FEE IS IMPOSED FOR THE SPECIFIC13 PURPOSE OF ALLOWING THE ENTERPRISE TO DEFRAY THE COSTS OF14 PROVIDING THE BUSINESS SERVICES SPECIFIED IN THIS PART 14 TO WASTE15 TIRE GENERATORS THAT ULTIMATELY PAY THE FEE , WHICH FEE IS IMPOSED16 AT RATES THAT ARE REASONABLY CALCULATED BASED ON THE BENEFITS17 RECEIVED BY THOSE WASTE TIRE GENERATORS ;18 (h) S O LONG AS THE ENTERPRISE QUALIFIES AS AN ENTERPRISE FOR19 THE PURPOSES OF SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION,20 THE REVENUE FROM THE WASTE TIRE FEE COLLECTED BY THE ENTERPRISE21 IS NOT STATE FISCAL YEAR SPENDING, AS DEFINED IN SECTION 24-77-10222 (17), OR STATE REVENUES, AS DEFINED IN SECTION 24-77-103.6 (6)(c),23 AND DOES NOT COUNT AGAINST EITHER THE STATE FISCAL YEAR SPENDING24 LIMIT IMPOSED BY SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION25 OR THE EXCESS STATE REVENUES CAP, AS DEFINED IN SECTION 24-77-103.626 (6)(b)(I); AND27 SB24-123 -4- (i) THE ENTERPRISE CREATED IN THIS PART 14 IS NECESSARY TO1 CONTINUE COLORADO'S MANAGEMENT OF WASTE TIRES AND PROVIDE2 INCENTIVES TO LOCAL GOVERNMENTS ; FOR-PROFIT WASTE TIRE3 MANAGEMENT, RECYCLING, AND REUSE COMPANIES ; AND OTHER4 ORGANIZATIONS THAT ARE INVOLVED IN WASTE TIRE RECYCLING AND5 MANAGEMENT.6 (2) By May 31, 2015, The commission, IN CONSULTATION WITH7 THE ENTERPRISE, shall promulgate rules for the implementation and8 enforcement of this part 14. Until the commission promulgates rules to9 implement and enforce this part 14, the commission's rules in effect on10 July 1, 2014, governing waste tires continue to apply to the extent that11 they do not conflict with this part 14.12 SECTION 2. In Colorado Revised Statutes, 30-20-1402, add13 (1.7), (4.5), and (14.5) as follows:14 30-20-1402. Definitions. As used in this part 14, unless the15 context otherwise requires:16 (1.7) "B OARD OF DIRECTORS" OR "BOARD" MEANS THE BOARD OF17 DIRECTORS OF THE ENTERPRISE.18 (4.5) "E NTERPRISE" MEANS THE WASTE TIRE MANAGEMENT19 ENTERPRISE CREATED IN SECTION 30-20-1403.20 (14.5) "W ASTE TIRE FEE" OR "FEE" MEANS MONEY COLLECTED21 PURSUANT TO SECTION 30-20-1403.22 SECTION 3. In Colorado Revised Statutes, repeal and reenact,23 with amendments, 30-20-1403 as follows:24 30-20-1403. Waste tire management enterprise - board of25 directors - waste tire fee - distribution - rules. (1) Enterprise.26 (a) (I) T HERE IS CREATED IN THE DEPARTMENT THE WASTE TIRE27 SB24-123 -5- MANAGEMENT ENTERPRISE . THE ENTERPRISE IS AND OPERATES AS A1 GOVERNMENT-OWNED BUSINESS WITHIN THE DEPARTMENT TO COLLECT2 THE WASTE TIRE FEE CHARGED BY RETAILERS OF NEW TIRES PURSUANT TO3 SUBSECTION (2) OF THIS SECTION AND TO USE THE WASTE TIRE FEE TO4 PROMOTE THE WASTE TIRE RECYCLING AND MANAGEMENT INDUSTRY IN5 C OLORADO.6 (II) T HE ENTERPRISE IS AND OPERATES AS A GOVERNMENT -OWNED7 BUSINESS WITHIN THE DEPARTMENT FOR THE PURPOSE OF CONDUCTING8 THE BUSINESS ACTIVITIES SPECIFIED IN THIS SECTION. THE ENTERPRISE IS9 A TYPE 1 ENTITY, AS DEFINED IN SECTION 24-1-105, AND EXERCISES ITS10 POWERS AND PERFORMS ITS DUTIES AND FUNCTIONS UNDER THE11 DEPARTMENT.12 (III) T HE ENTERPRISE CONSTITUTES AN ENTERPRISE FOR PURPOSES13 OF SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION SO LONG AS IT14 RETAINS THE AUTHORITY TO ISSUE REVENUE BONDS AND RECEIVES LESS15 THAN TEN PERCENT OF ITS TOTAL REVENUES IN GRANTS FROM ALL16 C OLORADO STATE AND LOCAL GOVERNMENTS COMBINED . SO LONG AS IT17 CONSTITUTES AN ENTERPRISE PURSUANT TO THIS SUBSECTION (1)(a), THE18 ENTERPRISE IS NOT SUBJECT TO SECTION 20 OF ARTICLE X OF THE STATE19 CONSTITUTION.20 (b) T HE ENTERPRISE'S PRIMARY POWERS AND DUTIES ARE TO :21 (I) C OLLECT THE WASTE TIRE FEE;22 (II) P ROMOTE WASTE TIRE RECYCLING AND MANAGEMENT23 STRATEGIES THROUGHOUT COLORADO;24 (III) I SSUE REVENUE BONDS PAYABLE FROM THE REVENUES OF THE25 ENTERPRISE TO PROMOTE THE WASTE TIRE RECYCLING AND MANAGEMENT26 STRATEGIES SPECIFIED IN THIS SECTION;27 SB24-123 -6- (IV) PUBLISH EACH YEAR, ON THE DEPARTMENT'S WEBSITE AND AS1 OTHERWISE DEEMED APPROPRIATE BY THE BOARD , THE WASTE TIRE2 RECYCLING AND MANAGEMENT STRATEGIES THAT THE BOARD HAS3 PRIORITIZED THROUGH THE COLLECTION OF THE WASTE TIRE FEE ;4 (V) A DOPT, AMEND, OR REPEAL POLICIES FOR THE REGULATION OF5 THE ENTERPRISE'S AFFAIRS AND THE C ONDUCT OF THE ENTERPRISE 'S6 BUSINESS CONSISTENT WITH THIS PART 14; AND7 (VI) E NGAGE THE SERVICES OF CONTRACTORS , CONSULTANTS, OR8 LEGAL COUNSEL, INCLUDING THE DEPARTMENT AND THE ATTORNEY9 GENERAL'S OFFICE, FOR PROFESSIONAL AND TECHNICAL ASSISTANCE AND10 ADVICE AND TO SUPPLY OTHER SERVICES RELATED TO THE CONDUCT OF11 THE ENTERPRISE, WITHOUT REGARD TO THE "PROCUREMENT CODE",12 ARTICLES 101 TO 112 OF TITLE 24. THE BOARD SHALL ENCOURAGE13 DIVERSITY IN APPLICANTS FOR CONTRACTS AND SHALL AVOID USING14 SINGLE-SOURCE BIDS.15 (c) T HE ENTERPRISE IS GOVERNED BY A BOARD OF DIRECTORS . THE16 BOARD CONSISTS OF THE FOLLOWING NINE MEMBERS :17 (I) T WO MEMBERS APPOINTED BY THE EXECUTIVE DIRECTOR OF18 THE DEPARTMENT TO REPRESENT THE DEPARTMENT , INCLUDING ONE WITH19 EXPERTISE IN SUSTAINABILITY AND ONE WITH EXPERTISE IN COMPLIANCE ;20 (II) O NE MEMBER APPOINTED BY THE EXECUTIVE DIRECTOR OF THE21 DEPARTMENT WHO IS A MEMBER OF A BOARD OF COUNTY COMMISSIONERS22 FOR A COUNTY THAT HAS EXPERIENCE WITH THE MANAGEMENT OF WASTE23 TIRES; AND24 (III) S IX MEMBERS APPOINTED BY THE EXECUTIVE DIRECTOR OF25 THE DEPARTMENT WHO ARE REPRESENTATIVES OF NONPROFIT AND26 FOR-PROFIT ENTITIES ENGAGED IN THE RECOVERY , RECYCLING, REUSE,27 SB24-123 -7- AND MANAGEMENT OF WASTE TIRES , INCLUDING A TIRE RETAILER, A1 WASTE TIRE COLLECTION FACILITY, A WASTE TIRE PROCESSOR, A WASTE2 TIRE HAULER, AND A LANDFILL OPERATOR. TO THE EXTENT PRACTICABLE,3 THE REPRESENTATION OF NONPROFIT AND FOR -PROFIT ENTITIES MUST BE4 BALANCED EQUALLY.5 (d) O F THE MEMBERS APPOINTED TO THE BOARD OF DIRECTORS6 PURSUANT TO SUBSECTION (1)(c)(III) OF THIS SECTION, AT LEAST ONE7 MEMBER MUST DO BUSINESS IN A RURAL COUNTY IN THE STATE .8 (e) (I) T HE MEMBER REPRESENTING THE DEPARTMENT WHO HAS9 EXPERTISE IN SUSTAINABILITY AND IS APPOINTED PURSUANT TO10 SUBSECTION (1)(c)(I) OF THIS SECTION SHALL CALL THE FIRST MEETING OF11 THE BOARD.12 (II) T HE BOARD SHALL ELECT A CHAIR FROM AMONG ITS MEMBERS13 TO SERVE FOR A TERM NOT TO EXCEED TWO YEARS .14 (III) T HE BOARD SHALL MEET QUARTERLY , AND THE CHAIR OF THE15 BOARD MAY CALL ADDITIONAL MEETINGS AS NECESSARY FOR THE BOARD16 TO COMPLETE ITS DUTIES.17 (IV) T HE TERM OF OFFICE FOR A BOARD MEMBER IS THREE YEARS ;18 EXCEPT THAT FOUR OF THE SIX MEMBERS APPOINTED PURSUANT TO19 SUBSECTION (1)(c)(III) OF THIS SECTION SERVE INITIAL TERMS OF TWO20 YEARS. A BOARD MEMBER MAY SERVE UNLIMITED TERMS .21 (f) (I) A MEMBER OF THE BOARD OF DIRECTORS , EXCEPT FOR22 MEMBERS APPOINTED PURSUANT TO SUBSECTIONS (1)(c)(I) AND (1)(c)(II)23 OF THIS SECTION, MAY RECEIVE A PER DIEM STIPEND WHILE ON OFFICIAL24 ENTERPRISE BUSINESS.25 (II) T HE PER DIEM STIPEND SHALL BE AT LEAST EQUAL TO THE26 C OLORADO STATE EMPLOYEE PER DIEM FOR INTRA -STATE TRAVEL AS27 SB24-123 -8- ESTABLISHED BY THE DEPARTMENT OF PERSONNEL .1 (III) A LL MEMBERS OF THE BOARD OF DIRECTORS MAY RECEIVE2 REIMBURSEMENT FOR ACTUAL AND NECESSARY EXPENSES INCURRED3 WHILE ON OFFICIAL ENTERPRISE BUSINESS.4 (IV) T HE ENTERPRISE MAY USE MONEY IN THE WASTE TIRE5 MANAGEMENT ENTERPRISE FUND , CREATED IN SECTION 30-20-1404, TO6 PAY THE PER DIEM STIPEND TO A BOARD MEMBER AND TO REIMBURSE A7 BOARD MEMBER FOR ACTUAL AND NECESSARY EXPENSES INCURRED AS8 PART OF THE ENTERPRISE'S OPERATING EXPENSES.9 (g) T HE DEPARTMENT SHALL PROVIDE OFFICE SPACE AND10 ADMINISTRATIVE STAFF TO THE ENTERPRISE, IF REQUESTED BY THE BOARD.11 (2) Waste tire fee. (a) (I) E FFECTIVE JANUARY 1, 2025, AND12 CONTINUING THROUGH DECEMBER 31, 2040, RETAILERS OF NEW MOTOR13 VEHICLE TIRES AND NEW TRAILER TIRES SHALL COLLECT A WASTE TIRE FEE14 IN AN AMOUNT TO BE SET BY THE ENTERPRISE, IN COORDINATION WITH THE15 COMMISSION. THE WASTE TIRE FEE AMOUNT MUST NOT EXCEED FOUR16 DOLLARS ON THE SALE OF EACH NEW TIRE .17 (II) E FFECTIVE JANUARY 1, 2025, THE BOARD OF DIRECTORS MAY18 REVIEW THE WASTE TIRE FEE ON AN ANNUAL BASIS AND , IN ACCORDANCE19 WITH THE FEE AMOUNT LIMIT SET FORTH IN SUBSECTION (2)(a)(I) OF THIS20 SECTION, ADJUST THE WASTE TIRE FEE AMOUNT SO THAT THE WASTE TIRE21 FEE IS IMPOSED IN AN AMOUNT THAT IS SUFFICIENT TO:22 (A) P AY THE DEPARTMENT 'S AND ENTERPRISE'S DIRECT AND23 INDIRECT COSTS OF IMPLEMENTING THIS PART 14 AND OPERATING THE24 ENTERPRISE, WHICH COSTS MUST NOT EXCEED THE EQUIVALENT OF25 ONE-HALF OF THE WASTE TIRE FEE COLLECTED FOR EACH NEW TIRE SOLD26 PURSUANT TO THIS SUBSECTION (2); AND27 SB24-123 -9- (B) PAY COSTS ASSOCIATED WITH PROVIDING REBATES AS1 DESCRIBED IN SECTION 30-20-1405.2 (III) T HE RECEIPT FROM THE RETAILER TO THE CUSTOMER FOR3 EVERY NEW TIRE PURCHASED MUST CONTAIN THE FOLLOWING STATEMENT4 IN THE LARGEST BOLD-FACED TYPE CAPABLE BASED ON POINT -OF-SALE5 SOFTWARE AND ON EXISTING INVOICE PRINTERS , NOT TO EXCEED FIFTEEN6 POINTS: "SECTION 30-20-1403, COLORADO REVISED STATUTES,7 REQUIRES RETAILERS TO COLLECT A WASTE TIRE FEE SET BY THE8 WASTE TIRE MANAGEMENT ENTERPRISE , WHICH IS A9 GOVERNMENT-OWNED BUSINESS WITHIN TH E DEPARTMENT OF PUBLIC10 HEALTH AND ENVIRONMENT , ON THE SALE OF EACH NEW MOTOR11 VEHICLE TIRE AND EACH NEW TRAILER TIRE ."12 (b) T HE RETAILER SHALL SUBMIT TO THE ENTERPRISE BY THE13 TWENTIETH DAY OF EACH MONTH ALL FEES COLLECTED PURSUANT TO THIS14 SECTION IN THE PRECEDING MONTH , TOGETHER WITH ANY REPORT15 REQUIRED BY THE ENTERPRISE. THE ENTERPRISE SHALL TRANSMIT THE16 FEES TO THE STATE TREASURER , WHO SHALL CREDIT THEM IN17 ACCORDANCE WITH SUBSECTION (3) OF THIS SECTION OR AS SPECIFIED IN18 RULES PROMULGATED BY THE COMMISSION .19 (3) F ROM JANUARY 1, 2025, THROUGH JANUARY 31, 2041, THE20 STATE TREASURER SHALL DISTRIBUTE THE REVENUE FROM THE FEE21 ASSESSED IN SUBSECTION (2) OF THIS SECTION AS FOLLOWS:22 (a) T HE PORTION OF THE FEE COLLECTED TO OFFSET THE COSTS23 DESCRIBED IN SUBSECTION (2)(a)(II)(A) OF THIS SECTION TO THE WASTE24 TIRE MANAGEMENT ENTERPRISE FUND CREATED IN SECTION 30-20-1404;25 (b) T HE PORTION OF THE FEE COLLECTED TO COVER THE COSTS26 DESCRIBED IN SUBSECTION (2)(a)(II)(B) OF THIS SECTION TO THE END27 SB24-123 -10- USERS FUND CREATED IN SECTION 30-20-1405; AND1 (c) A LL INTEREST EARNED ON THE INVESTMENT OF MONEY IN THE2 WASTE TIRE MANAGEMENT ENTERPRISE FUND TO THE FUND . ANY3 UNEXPENDED AND UNENCUMBERED MONEY IN THE WASTE TIRE4 MANAGEMENT ENTERPRISE FUND AT THE END OF ANY FISCAL YEAR SHALL5 REMAIN IN THE FUND.6 SECTION 4. In Colorado Revised Statutes, 30-20-1404, amend7 (1), (2) introductory portion, (2)(a), (2)(b), (2)(c), (2)(f), (2)(o), (5), and8 (7); repeal (8); and add (2)(q), (2)(r), (2)(s), and (2)(t) as follows:9 30-20-1404. Waste tire management enterprise fund - creation10 - rules. (1) (a) There is hereby created in the state treasury the waste tire11 administration, enforcement, market development, and cleanup12 MANAGEMENT ENTERPRISE fund, referred to in this section as the "fund",13 consisting of the fee revenue credited pursuant to section 30-20-1403 and14 any other money appropriated OR TRANSFERRED to it. The general 15 assembly shall annually appropriate the money in the fund to the16 department for its direct and indirect administrative and enforcement17 costs in administering and enforcing this part 14 MONEY CREDITED TO18 THE FUND IS CONTINUOUSLY APPROPRIATED TO THE ENTERPRISE FOR THE19 PURPOSES SET FORTH IN THIS PART 14 AND TO PAY THE ENTERPRISE'S20 REASONABLE AND NECESSARY OPERATING EXPENSES .21 (b) The state treasurer shall credit all interest earned on the22 investment of money in the fund to the fund. Any unexpended and23 unencumbered money in the fund in excess of sixteen and one-half24 percent of the previous fiscal year's expenditures at the end of any fiscal25 year shall be credited: REMAIN IN THE FUND.26 (a) Through December 31, 2025, to the end users fund created in27 SB24-123 -11- section 30-20-1405; and1 (b) On and after January 1, 2026, to the general fund.2 (2) The department shall ENTERPRISE MAY, IN CONSULTATION3 WITH THE DEPARTMENT, use the money in the fund for:4 (a) Collecting the fee assessed in section 30-20-1403 (1) (2);5 (b) Inspecting PETITIONING THE DEPARTMENT TO INSPECT retailers6 to determine whether all fees are being collected;7 (c) Enforcing PETITIONING THE DEPARTMENT TO ENFORCE the8 requirements of this part 14 pursuant to existing authority, including9 sections 30-20-113 and 30-20-114;10 (f) I F REQUESTED BY THE DEPARTMENT , CONSULTING WITH THE11 DEPARTMENT IN hiring a contractor to clean up waste tires and12 tire-derived product PRODUCTS that have been illegally disposed of or13 have been disposed of at a landfill pursuant to section 30-20-1009 (2) and14 funding a grant program to reimburse local governing authorities for15 cleaning up waste tires and tire-derived products that have been illegally16 disposed of or have been disposed of at a landfill pursuant to section17 30-20-1009 (2);18 (o) Encouraging waste tire market development; and19 (q) T HE PAYMENT OF ANY BONDS ISSUED PURS UANT TO SECTION20 30-20-1403 (1)(b);21 (r) R EIMBURSEMENT OF THE DEPARTMENT FOR CLEANUP AND22 REMEDIATION ACTIVITIES ENGAGED IN PURSUANT TO SUBSECTIONS (3) AND23 (4) OF THIS SECTION;24 (s) T HE PAYMENT OF PER DIEM AND THE REIMBURSEMENT OF25 ACTUAL AND NECESSARY EXPENSES FOR BOARD MEMBERS WHILE ON26 OFFICIAL ENTERPRISE BUSINESS; AND27 SB24-123 -12- (t) ANY OTHER ACTIVITY NECESSARY TO IMPLEMENT THIS PART 14,1 AS DETERMINED BY THE BOARD OF DIRECTORS .2 (5) (a) In providing assistance pursuant to this section, the3 department ENTERPRISE shall give primary consideration to protection of4 public health and the environment.5 (b) In awarding contracts for services pursuant to this section, the6 department ENTERPRISE may give preferential bidding treatment to7 individuals or entities that will recycle, pursuant to rules of the8 department concerning recycling, and reuse, rather than dispose of, the9 waste tires.10 (7) The ENTERPRISE, IN COORDINATION WITH THE department and11 the department of transportation, shall coordinate with one another to 12 systematically investigate and research the use of tire-derived aggregates13 in technically feasible and economically viable civil applications14 associated with the department of transportation's roadway mission. The15 department shall include any findings regarding tire-derived aggregates,16 as appropriate, in the department's annual report to the general assembly.17 (8) Notwithstanding any other provision of this section, on June18 30, 2020, the state treasurer shall transfer five million three hundred19 seventy-two thousand four hundred fifteen dollars from the fund to the20 general fund.21 SECTION 5. In Colorado Revised Statutes, 30-20-1405, amend22 (1), (2)(a) introductory portion, (3), (4)(a), (4)(b) introductory portion, (5)23 introductory portion, (5)(c) introductory portion, (5)(d), (5)(e)24 introductory portion, (5)(e)(I), (6) introductory portion, (6)(b), (7), (8)25 introductory portion, (9), and (10); and repeal (1.5) as follows:26 30-20-1405. End users fund - creation - quarterly rebates -27 SB24-123 -13- rules - repeal. (1) (a) There is hereby created in the state treasury the end1 users fund, referred to in this section as the "fund", consisting of the fee2 revenue credited pursuant to section 30-20-1403 (2)(a)(II) 30-20-14033 (3)(b).4 (b) The state treasurer shall credit all interest and any other return5 on the investment of money in the fund to the fund. The fund is subject6 to annual appropriation by the general assembly to the department for the7 purposes specified in this section MONEY CREDITED TO THE FUND IS8 CONTINUOUSLY APPROPRIATED TO THE ENTERPRISE FOR THE PURPOSES SET9 FORTH IN THIS SECTION.10 (1.5) Notwithstanding any other provision of this section, on June11 30, 2020, the state treasurer shall transfer one million four hundred12 thousand dollars from the fund to the general fund.13 (2) (a) The department ENTERPRISE, IN CONSULTATION WITH THE14 DEPARTMENT, shall use the money in the fund to provide quarterly rebates15 to in-state:16 (3) The rebate is subject to the following conditions:17 (a) The department ENTERPRISE shall pay the rebate amount18 quarterly, on a per-ton basis; and19 (b) Once the department ENTERPRISE has paid a rebate on a20 particular quantity of tire-derived product, every part of that particular21 quantity of tire-derived product is no longer eligible for payment of the22 rebate.23 (4) (a) The commission ENTERPRISE, IN CONSULTATION WITH THE24 COMMISSION, shall annually set the amount of the rebate, by rule, on a25 per-ton basis, and the department ENTERPRISE shall pay the set rebate26 amount for each ton of qualified tire-derived product. The commission27 SB24-123 -14- ENTERPRISE shall calculate the rebate to equal, but not exceed, the amount1 of the anticipated income transferred into the fund during each2 succeeding twelve-month period.3 (b) Each year, the department ENTERPRISE shall continue to4 provide the rebate in accordance with the tiered structure set forth in5 subsection (5)(e) of this section until:6 (5) The commission shall promulgate rules governing7 administration of the rebate. which ON AND AFTER THE EFFECTIVE DATE8 OF THIS SECTION, AS AMENDED, THE COMMISSION SHALL CONSULT WITH9 THE ENTERPRISE IN ADOPTING RULES GOVERNING ADMINISTRATION OF THE10 REBATE. THE COMMISSION'S rules must include the following:11 (c) If the balance of the fund is anticipated to be insufficient to12 pay out all of the rebates applied for, a requirement that the department13 ENTERPRISE:14 (d) A requirement that an end user that qualifies for a rebate by15 utilizing waste tires for:16 (I) Alternative daily cover must verify with the department17 ENTERPRISE that the alternative daily cover meets all specification18 standards for all type-B tire-derived aggregate, as established by the19 ASTM standard D6270; and20 (II) Tire-derived aggregate must verify with the department21 ENTERPRISE that the tire-derived aggregate meets all specification22 standards for all type-A tire-derived aggregate, as established by the23 ASTM standard D6270; and24 (e) Three tiers of rebate amounts that the department ENTERPRISE25 may pay out based on the amount of the waste tire that was used and26 destroyed as follows:27 SB24-123 -15- (I) Tier 1: Full rebates going to crumbed rubber end uses and end1 uses that completely destroy the waste tire for the purpose of energy2 recovery or other clean technologies as defined and approved by the3 commission by rule;4 (6) The department ENTERPRISE:5 (b) May deny:6 (I) The rebate to a person that is out of compliance with any state7 or federal environmental laws OR rules or regulations RELATED TO THE8 MANAGEMENT OF WASTE TIRES ; and9 (II) All future rebates pursuant to this section and grants of money10 from the waste tire administration, enforcement, market development, and11 cleanup MANAGEMENT ENTERPRISE fund created in section 30-20-1404 to12 an applicant that knowingly or intentionally provides false information to13 the department ENTERPRISE when applying for a rebate or for a grant of14 money from the waste tire administration, enforcement, market15 development, and cleanup MANAGEMENT ENTERPRISE fund.16 (7) Waste tires obtained from rural counties are eligible for an17 additional rebate amount of twenty-five dollars per ton; however, the18 additional rebate amount must not exceed the rebate amount for tier 319 rebates as determined by the commission by rule pursuant to subsection20 (5)(e)(III) of this section. To qualify for the additional rebate amount set21 forth in this subsection (7), an end user must provide evidence to the22 department ENTERPRISE documenting the county of origin for each waste23 tire.24 (8) The department ENTERPRISE shall require that an end user25 submit an application for a rebate that contains self-certifications26 provided by the end user regarding:27 SB24-123 -16- (9) (a) ON OR AFTER JANUARY 1, 2026, AND UNTIL DECEMBER 31,1 2040, the department ENTERPRISE may issue rebates after January 1, 2026,2 only for end uses occurring and rebates applied for on or before3 December 31, 2025 PURSUANT TO THIS SECTION.4 (b) The commission, IN CONSULTATION WITH THE ENTERPRISE ,5 shall repeal any rules concerning the fund and implementation of this6 section once the department ENTERPRISE has issued the final rebates7 pursuant to subsection (9)(a) of this section.8 (c) On July 1, 2026 JULY 1, 2041, the state treasurer shall transfer9 any money left in the fund to the general fund.10 (10) This section is repealed, effective July 1, 2026 JULY 1, 2042.11 SECTION 6. Safety clause. The general assembly finds,12 determines, and declares that this act is necessary for the immediate13 preservation of the public peace, health, or safety or for appropriations for14 the support and maintenance of the departments of the state and state15 institutions.16 SB24-123 -17-