Second Regular Session Seventy-fourth General Assembly STATE OF COLORADO ENGROSSED This Version Includes All Amendments Adopted on Second Reading in the House of Introduction LLS NO. 24-0517.01 Christopher McMichael x4775 SENATE BILL 24-123 Senate Committees House Committees Finance Appropriations 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 , AND, IN CONNECTION THEREWITH , 104 MAKING AN APPROPRIATION .105 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 SENATE Amended 2nd Reading April 16, 2024 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. the consumer a waste tire fee (fee) that is then collected by the department 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 123-2- (1) and (2) as follows:1 30-20-1401. Legislative declaration - rules - enforcement -2 recyclable material. (1) The general assembly hereby finds and declares3 that:4 (a) In order to protect the environment and the public health, there5 is a special need to address problems created by the disposal of waste tires6 and the lack of recycling and beneficial use REUSE of waste tires; It is the7 policy of this state to pursue proposals for recycling and other beneficial8 use of waste tires in lieu of storage or landfill disposal, and, in addition,9 it is the intent of the general assembly10 (b) In adopting this part 14, to encourage THE GENERAL ASSEMBLY11 HAS ENCOURAGED the development of techniques for resource recovery,12 recycling, and reuse of waste tires; and to provide for the management of13 waste tires. HOWEVER, THERE IS STILL ROOM FOR IMPROVEMENT14 REGARDING THE MANAGEMENT OF WASTE TIRES IN COLORADO;15 (c) T HE MANAGEMENT OF WASTE TIRES AT THE STATE LEVEL16 PROMOTES ECONOMIC DEVELOPMENT AND PROVIDES SUBSTANTIAL17 ENVIRONMENTAL IMPACTS ACROSS THE STATE ;18 (d) I T IS IN THE STATE'S INTEREST TO PROVIDE FOR THE RECOVERY,19 RECYCLING, REUSE, AND MANAGEMENT OF WASTE TIRES THROUGH A20 GOVERNMENT-RUN ENTERPRISE;21 (e) P ROVIDING STATEWIDE WASTE TIRE RECYCLING , BENEFICIAL 22 REUSE, AND MANAGEMENT CONSTITUTES A VALUABLE SERVICE AND23 BENEFIT, AND A WASTE TIRE MANAGEMENT ENTERPRISE WOULD PROVIDE24 USEFUL BUSINESS SERVICES TO TIRE RETAILERS , AUTOMOBILE DEALERS,25 AUTOMOBILE REPAIR SHOPS , SERVICE STATIONS, AUTOMOTIVE FLEET26 CENTERS, WASTE TIRE HAULERS, WASTE TIRE COLLECTION FACILITIES,27 123 -3- WASTE TIRE PROCESSORS, RECYCLING AND WASTE FACILITIES, LANDFILLS,1 CONSUMERS, AND ALL RESIDENTS OF COLORADO;2 (f) T HE WASTE TIRE MANAGEMENT ENTERPRISE WILL AID IN THE 3 PROPER MANAGEMENT OF WASTE TIRES BY PROVIDING FINANCIAL4 INCENTIVES AND REBATES FOR THE RECYCLING OF WASTE TIRES INTO5 END-USE TIRE-DERIVED PRODUCTS, WHICH FINANCIAL INCENTIVES AND6 REBATES DIRECTLY COMPENSATE PEOPLE WHO PROPERLY DISPOSE OF OR7 RECYCLE WASTE TIRES, PROVIDE FEE PAYERS MORE CONVENIENT WASTE8 TIRE AND DISPOSAL OPTIONS, INCREASE THE PRODUCTION OF TIRE-DERIVED9 PRODUCTS, AND POSITIVELY IMPACT HUMAN HEALTH AND SAFETY AND10 THE ENVIRONMENT;11 (g) IT IS NECESSARY, APPROPRIATE, AND IN THE BEST INTEREST OF12 THE STATE TO ACKNOWLEDGE THAT , BY PROVIDING THE BUSINESS13 SERVICES SPECIFIED IN THIS PART 14, THE ENTERPRISE ENGAGES IN AN14 ACTIVITY CONDUCTED IN THE PURSUIT OF A BENEFIT, GAIN, OR LIVELIHOOD15 AND THEREFORE OPERATES AS A BUSINESS ;16 (h) CONSISTENT WITH THE DETERMINATION OF THE COLORADO17 SUPREME COURT IN NICHOLL V. E-470 PUBLIC HIGHWAY AUTHORITY, 89618 P.2d 859 (COLO. 1995), THAT THE POWER TO IMPOSE TAXES IS19 INCONSISTENT WITH ENTERPRISE STATUS UNDER SECTION 20 OF ARTICLE20 X OF THE STATE CONSTITUTION, IT IS THE CONCLUSION OF THE GENERAL21 ASSEMBLY THAT THE WASTE TIRE ENTERPRISE FEE COLLECTED BY THE22 ENTERPRISE IS A FEE, NOT A TAX, BECAUSE THE FEE IS IMPOSED FOR THE23 SPECIFIC PURPOSE OF ALLOWING THE ENTERPRISE TO DEFRAY THE COSTS24 OF PROVIDING THE BUSINESS SERVICES SPECIFIED IN SECTIONS 30-20-140425 AND 30-20-1405 TO CONSUMERS WHO ULTIMATELY PAY THE ENTERPRISE26 FEE, WHICH ENTERPRISE FEE IS IMPOSED AT RATES THAT ARE REASONABLY27 123 -4- CALCULATED BASED ON THE COST OF PROVIDING THE SERVICES NEEDED BY1 THOSE CONSUMERS;2 (i) SO LONG AS THE ENTERPRISE QUALIFIES AS AN ENTERPRISE FOR3 THE PURPOSES OF SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION,4 THE REVENUE FROM THE WASTE TIRE ENTERPRISE FEE COLLECTED BY THE5 ENTERPRISE IS NOT STATE FISCAL YEAR SPENDING, AS DEFINED IN SECTION6 24-77-102 (17), OR STATE REVENUES, AS DEFINED IN SECTION 24-77-103.67 (6)(c), AND DOES NOT COUNT AGAINST EITHER THE STATE FISCAL YEAR8 SPENDING LIMIT IMPOSED BY SECTION 20 OF ARTICLE X OF THE STATE9 CONSTITUTION OR THE EXCESS STATE REVENUES CAP , AS DEFINED IN10 SECTION 24-77-103.6 (6)(b)(I); AND11 (j) THE ENTERPRISE CREATED IN THIS PART 14 IS NECESSARY TO12 CONTINUE COLORADO'S MANAGEMENT OF WASTE TIRES AND PROVIDE13 INCENTIVES TO LOCAL GOVERNMENTS ; FOR-PROFIT WASTE TIRE14 MANAGEMENT, RECYCLING, AND REUSE COMPANIES ; AND OTHER15 ORGANIZATIONS THAT ARE INVOLVED IN WASTE TIRE RECYCLING ,16 BENEFICIAL REUSE, AND MANAGEMENT.17 (2) (a) By May 31, 2015, The commission, IN CONSULTATION18 WITH THE ENTERPRISE, shall promulgate rules for the implementation and19 enforcement of this part 14. Until the commission promulgates rules to20 implement and enforce this part 14, the commission's rules in effect on21 July 1, 2014, governing waste tires continue to apply to the extent that22 they do not conflict with this part 14 SECTIONS 30-20-1403, 30-20-1404,23 AND 30-20-1405, AS APPLICABLE.24 (b) T HE COMMISSION, IN CONSULTATION WITH THE DEPARTMENT , 25 SHALL PROMULGATE RULES FOR THE IMPLEMENTATION AND ENFORCEMENT26 OF SECTIONS 30-20-1403 AND 30-20-1405.5 AND OTHER SECTIONS OF THIS27 123 -5- PART 14, AS APPLICABLE.1 SECTION 2. In Colorado Revised Statutes, 30-20-1402, add2 (1.7), (4.5), (12.5), and (14.5) as follows:3 30-20-1402. Definitions. As used in this part 14, unless the4 context otherwise requires:5 (1.7) "B OARD OF DIRECTORS" OR "BOARD" MEANS THE BOARD OF6 DIRECTORS OF THE ENTERPRISE.7 (4.5) "E NTERPRISE" MEANS THE WASTE TIRE MANAGEMENT8 ENTERPRISE CREATED IN SECTION 30-20-1403.9 (12.5) "W ASTE TIRE ADMINISTRATION FEE" OR "ADMINISTRATION 10 FEE" MEANS MONEY COLLECTED PURSUANT TO SECTION 30-20-140311 (2.5)(b).12 (14.5) "W ASTE TIRE ENTERPRISE FEE" OR "ENTERPRISE FEE" MEANS 13 MONEY COLLECTED PURSUANT TO SECTION 30-20-1403 (2.5)(a).14 SECTION 3. In Colorado Revised Statutes, 30-20-1403, add15 (1)(c), (1.5), (2)(c), (2.5), and (3) as follows:16 30-20-1403. Waste tire recycling, beneficial reuse, and17 management - waste tire fees - distribution - rules. (1) (c) T HIS 18 SUBSECTION (1) IS REPEALED, EFFECTIVE JULY 1, 2025.19 (1.5) Enterprise. (a) (I) T HERE IS CREATED IN THE DEPARTMENT 20 THE WASTE TIRE MANAGEMENT ENTERPRISE . THE ENTERPRISE IS AND21 OPERATES AS A GOVERNMENT-OWNED BUSINESS WITHIN THE DEPARTMENT22 TO COLLECT THE WASTE TIRE ENTERPRISE FEE CHARGED BY RETAILERS OF23 NEW TIRES PURSUANT TO SUBSECTION (2.5) OF THIS SECTION AND TO USE24 THE WASTE TIRE ENTERPRISE FEE TO PROMOTE WASTE TIRE RECYCLING ,25 BENEFICIAL REUSE, AND MANAGEMENT STRATEGIES IN COLORADO.26 (II) T HE ENTERPRISE IS AND OPERATES AS A GOVERNMENT -OWNED27 123 -6- BUSINESS WITHIN THE DEPARTMENT FOR THE PURPOSE OF CONDUCTING1 THE BUSINESS ACTIVITIES SPECIFIED IN THIS SECTION. THE ENTERPRISE IS2 A TYPE 1 ENTITY, AS DEFINED IN SECTION 24-1-105, AND EXERCISES ITS3 POWERS AND PERFORMS ITS DUTIES AND FUNCTIONS UNDER THE4 DEPARTMENT.5 (III) T HE ENTERPRISE CONSTITUTES AN ENTERPRISE FOR PURPOSES6 OF SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION SO LONG AS IT7 RETAINS THE AUTHORITY TO ISSUE REVENUE BONDS AND RECEIVES LESS8 THAN TEN PERCENT OF ITS TOTAL REVENUES IN GRANTS FROM ALL9 C OLORADO STATE AND LOCAL GOVERNMENTS COMBINED . SO LONG AS IT10 CONSTITUTES AN ENTERPRISE PURSUANT TO THIS SUBSECTION (1.5)(a), 11 THE ENTERPRISE IS NOT SUBJECT TO SECTION 20 OF ARTICLE X OF THE12 STATE CONSTITUTION.13 (IV) T HE REPEAL OF THE WASTE TIRE FEE , AS IT EXISTED 14 PURSUANT TO SUBSECTION (1) OF THIS SECTION, PRIOR TO ITS REPEAL IN15 2025, AND THE CREATION OF THE WASTE TIRE MANAGEMENT ENTERPRISE 16 AS A NEW ENTERPRISE TO CHARGE AND COLLECT A NEW WASTE TIRE17 ENTERPRISE FEE AS AUTHORIZED BY SUBSECTION (2.5) OF THIS SECTION18 AND TO PROVIDE AND PROMOTE WASTE TIRE RECYCLING , BENEFICIAL19 REUSE, AND MANAGEMENT STRATEGIES AND SERVICES FUNDED BY THE20 WASTE TIRE ENTERPRISE FEE AS A NEW GOVERNMENT -OWNED BUSINESS21 THAT PROVIDES BUSINESS SERVICES AS A NEW ENTERPRISE FOR THE22 PURPOSE OF SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION, DOES23 NOT CONSTITUTE THE QUALIFICATION OF AN EXISTING24 GOVERNMENT-OWNED BUSINESS AS AN ENTERPRISE FOR THE PURPOSES OF25 SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION OR SECTION26 24-77-103.6 (6)(b)(II), AND, THEREFORE, DOES NOT REQUIRE OR 27 123 -7- AUTHORIZE ADJUSTMENT OF THE STATE FISCAL YEAR SPENDING LIMIT1 CALCULATED PURSUANT TO SECTION 20 OF ARTICLE X OF THE STATE2 CONSTITUTION OR THE EXCESS STATE REVENUES CAP , AS DEFINED IN3 SECTION 24-77-103.6 (6)(b)(I).4 (V) T HE ENTERPRISE IS NECESSARY FOR THE PRESERVATION OF THE 5 PUBLIC PEACE, HEALTH, AND SAFETY AND IS THEREFORE NOT SUBJECT TO6 THE REQUIREMENTS OF SECTION 24-77-108.7 (b) T HE ENTERPRISE'S PRIMARY POWERS AND DUTIES ARE TO :8 (I) C OLLECT THE WASTE TIRE ENTERPRISE FEE ;9 (II) P ROMOTE WASTE TIRE RECYCLING , BENEFICIAL REUSE, AND10 MANAGEMENT STRATEGIES THROUGHOUT COLORADO;11 (III) I SSUE REVENUE BONDS PAYABLE FROM THE REVENUES OF THE12 ENTERPRISE TO PROMOTE THE WASTE TIRE RECYCLING , BENEFICIAL REUSE, 13 AND MANAGEMENT STRATEGIES SPECIFIED IN THIS SECTION ;14 (IV) P UBLISH EACH YEAR, ON THE DEPARTMENT'S WEBSITE AND AS15 OTHERWISE DEEMED APPROPRIATE BY THE BOARD , THE WASTE TIRE16 RECYCLING, BENEFICIAL REUSE, AND MANAGEMENT STRATEGIES THAT THE17 BOARD HAS PRIORITIZED THROUGH THE COLLECTION OF THE WASTE TIRE18 ENTERPRISE FEE;19 (V) A DOPT, AMEND, OR REPEAL POLICIES FOR THE REGULATION OF20 THE ENTERPRISE'S AFFAIRS AND THE C ONDUCT OF THE ENTERPRISE 'S21 BUSINESS CONSISTENT WITH THIS PART 14; 22 (VI) (A) C ONTRACT WITH ANY PUBLIC OR PRIVATE ENTITY , 23 INCLUDING STATE AGENCIES , CONSULTANTS, AND THE ATTORNEY24 GENERAL'S OFFICE, FOR PROFESSIONAL AND TECHNICAL ASSISTANCE ,25 OFFICE SPACE AND ADMINISTRATIVE SERVICES , ADVICE, AND OTHER26 SERVICES RELATED TO THE CONDUCT OF THE AFFAIRS OF THE ENTERPRISE .27 123 -8- THE BOARD SHALL ENCOURAGE DIVERSITY IN APPLICANTS FOR CONTRACTS1 AND SHALL GENERALLY AVOID USING SINGLE -SOURCE BIDS.2 (B) T HE ENTERPRISE SHALL PAY A FAIR MARKET RATE TO ANY 3 PUBLIC ENTITY, PRIVATE ENTITY, CONTRACTOR, OR CONSULTANT, WHICH4 MAY INCLUDE A STATE AGENCY , THE ATTORNEY GENERAL 'S OFFICE, OR5 THE DEPARTMENT, THAT IS HIRED BY THE ENTERPRISE TO PERFORM DUTIES6 PURSUANT TO THIS SUBSECTION (1.5)(b); AND7 (VII) P REPARE AND ADOPT AN ANNUAL BUDGET PURSUANT TO 8 SUBSECTION (1)(h) OF THIS SECTION.9 (c) T HE ENTERPRISE IS GOVERNED BY A BOARD OF DIRECTORS . THE10 BOARD CONSISTS OF THE FOLLOWING NINE MEMBERS :11 (I) T WO MEMBERS APPOINTED BY THE EXECUTIVE DIRECTOR OF12 THE DEPARTMENT TO REPRESENT THE DEPARTMENT , INCLUDING ONE WITH13 EXPERTISE IN SUSTAINABILITY AND ONE WITH EXPERTISE IN COMPLIANCE ;14 (II) O NE MEMBER APPOINTED BY THE EXECUTIVE DIRECTOR OF THE15 DEPARTMENT WHO REPRESENTS A COUNTY THAT HAS EXPERIENCE WITH 16 THE MANAGEMENT OF WASTE TIRES; AND17 (III) S IX MEMBERS APPOINTED BY THE EXECUTIVE DIRECTOR OF18 THE DEPARTMENT WHO ARE REPRESENTATIVES OF NONPROFIT AND19 FOR-PROFIT ENTITIES ENGAGED IN THE RECOVERY , RECYCLING, REUSE,20 AND MANAGEMENT OF WASTE TIRES , INCLUDING A TIRE RETAILER, A21 WASTE TIRE COLLECTION FACILITY , A WASTE TIRE PROCESSOR, AND A22 WASTE TIRE HAULER. TO THE EXTENT PRACTICABLE, THE REPRESENTATION23 OF NONPROFIT AND FOR-PROFIT ENTITIES MUST BE BALANCED EQUALLY .24 (d) O F THE MEMBERS APPOINTED TO THE BOARD OF DIRECTORS25 PURSUANT TO SUBSECTION (1.5)(c)(III) OF THIS SECTION, AT LEAST ONE26 MEMBER MUST DO BUSINESS IN A RURAL COUNTY IN THE STATE .27 123 -9- (e) (I) THE MEMBER REPRESENTING THE DEPARTMENT WHO HAS1 EXPERTISE IN SUSTAINABILITY AND IS APPOINTED PURSUANT TO2 SUBSECTION (1.5)(c)(I) OF THIS SECTION SHALL CALL THE FIRST MEETING3 OF THE BOARD.4 (II) T HE BOARD SHALL ELECT A CHAIR FROM AMONG ITS MEMBERS5 TO SERVE FOR A TERM NOT TO EXCEED TWO YEARS .6 (III) T HE BOARD SHALL MEET QUARTERLY , AND THE CHAIR OF THE7 BOARD MAY CALL ADDITIONAL MEETINGS AS NECESSARY FOR THE BOARD8 TO COMPLETE ITS DUTIES.9 (IV) T HE TERM OF OFFICE FOR A BOARD MEMBER IS THREE YEARS ;10 EXCEPT THAT FOUR OF THE SIX MEMBERS APPOINTED PURSUANT TO11 SUBSECTION (1.5)(c)(III) OF THIS SECTION SERVE INITIAL TERMS OF TWO12 YEARS. A BOARD MEMBER MAY SERVE UNLIMITED TERMS .13 (f) (I) A MEMBER OF THE BOARD OF DIRECTORS , EXCEPT FOR14 MEMBERS APPOINTED PURSUANT TO SUBSECTIONS (1.5)(c)(I) AND 15 (1.5)(c)(II) OF THIS SECTION, MAY RECEIVE A PER DIEM STIPEND WHILE ON16 OFFICIAL ENTERPRISE BUSINESS.17 (II) T HE PER DIEM STIPEND SHALL BE AT LEAST EQUAL TO THE18 C OLORADO STATE EMPLOYEE PER DIEM FOR INTRA -STATE TRAVEL AS19 ESTABLISHED BY THE DEPARTMENT OF PERSONNEL .20 (III) A LL MEMBERS OF THE BOARD OF DIRECTORS MAY RECEIVE21 REIMBURSEMENT FOR ACTUAL AND NECESSARY EXPENSES INCURRED22 WHILE ON OFFICIAL ENTERPRISE BUSINESS.23 (IV) T HE ENTERPRISE MAY USE MONEY IN THE WASTE TIRE24 MANAGEMENT ENTERPRISE FUND , CREATED IN SECTION 30-20-1404, TO25 PAY THE PER DIEM STIPEND TO A BOARD MEMBER AND TO REIMBURSE A26 BOARD MEMBER FOR ACTUAL AND NECESSARY EXPENSES INCURRED AS27 123 -10- PART OF THE ENTERPRISE'S OPERATING EXPENSES.1 (g) T HE DEPARTMENT SHALL PROVIDE OFFICE SPACE AND2 ADMINISTRATIVE STAFF TO THE ENTERPRISE, IF REQUESTED BY THE BOARD.3 I N ACCORDANCE WITH SUBSECTION (1.5)(b)(VI)(B) OF THIS SECTION, THE 4 ENTERPRISE SHALL PAY THE DEPARTMENT A FAIR MARKET RATE FOR ANY5 OFFICE SPACE OR ADMINISTRATIVE STAFF USED BY THE BOARD IN6 PERFORMANCE OF THE ENTERPRISE 'S DUTIES.7 (h) (I) T HE DEPARTMENT MAY TRANSFER MONEY FROM ANY 8 LEGALLY AVAILABLE SOURCE TO THE ENTERPRISE FOR THE PURPOSE OF9 DEFRAYING EXPENSES INCURRED BY THE ENTERPRISE BEFORE IT RECEIVES10 FEE REVENUE. THE ENTERPRISE MAY ACCEPT AND EXPEND ANY MONEY SO11 TRANSFERRED, AND, NOTWITHSTANDING ANY STATE FISCAL RULE OR12 GENERALLY ACCEPTED ACCOUNTING PRINCIPLE THAT COULD OTHERWISE13 BE INTERPRETED TO REQUIRE A CONTRARY CONCLUSION , SUCH A14 TRANSFER IS A LOAN FROM THE DEPARTMENT TO THE ENTERPRISE THAT IS15 REQUIRED TO BE REPAID AND IS NOT A GRANT FOR PURPOSES OF SECTION16 20 (2)(d) OF ARTICLE X OF THE STATE CONSTITUTION OR AS DEFINED IN 17 SECTION 24-77-102 (7).18 (II) ALL MONEY TRANSFERRED AS A LOAN TO THE ENTERPRISE 19 MUST BE CREDITED TO THE WASTE TIRE ADMINISTRATION , ENFORCEMENT,20 MARKET DEVELOPMENT , AND CLEANUP FUND , CREATED IN SECTION21 30-20-1404 (1)(a). L OAN LIABILITIES THAT ARE RECORDED IN THE WASTE 22 TIRE ADMINISTRATION, ENFORCEMENT, MARKET DEVELOPMENT , AND23 CLEANUP FUND BUT THAT ARE NOT REQUIRED TO BE PAID IN THE CURRENT24 STATE FISCAL YEAR SHALL NOT BE CONSIDERED WHEN CALCULATING25 SUFFICIENT STATUTORY FUND BALANCE FOR PURPOSES OF SECTION26 24-75-109.27 123 -11- (III) AS THE ENTERPRISE RECEIVES SUFFICIENT REVENUE IN EXCESS1 OF EXPENSES, IT SHALL REIMBURSE THE DEPARTMENT FOR THE PRINCIPAL2 AMOUNT OF ANY LOAN MADE BY THE DEPARTMENT , PLUS INTEREST AT A3 RATE AGREED UPON BY THE DEPARTMENT AND THE ENTERPRISE .4 (i) (I) T O ENSURE TRANSPARENCY AND ACCOUNTABILITY , THE 5 ENTERPRISE SHALL PREPARE AND ADOPT AN ANNUAL BUDGET FOR EACH6 FISCAL YEAR IN ACCORDANCE WITH THE REQUIREMENTS OF PART 1 OF7 ARTICLE 1 OF TITLE 29 AS IF THE ENTERPRISE WERE A LOCAL8 GOVERNMENT.9 (II) T HE ENTERPRISE SHALL PROVIDE A COPY OF THE ADOPTED 10 BUDGET TO LEGISLATIVE COUNCIL STAFF AND THE JOINT BUDGET11 COMMITTEE OF THE GENERAL ASSEMBLY NO LATER THAN THIRTY DAYS12 AFTER THE ENTERPRISE ADOPTS ITS ANNUAL BUDGET .13 (III) T HE ENTERPRISE SHALL POST A COPY OF THE ENTERPRISE 'S 14 ADOPTED BUDGET ON THE ENTERPRISE 'S PUBLIC WEBSITE.15 (2) (c) T HIS SUBSECTION (2) IS REPEALED, EFFECTIVE JULY 1, 2025. 16 (2.5) Waste tire enterprise fee and waste tire administration17 fee. (a) (I) E FFECTIVE JULY 1, 2025, RETAILERS OF NEW MOTOR VEHICLE18 TIRES AND NEW TRAILER TIRES SHALL COLLECT A WASTE TIRE ENTERPRISE19 FEE IN AN AMOUNT TO BE SET BY THE ENTERPRISE, IN COORDINATION WITH20 THE COMMISSION. THE WASTE TIRE ENTERPRISE FEE AMOUNT MUST NOT21 EXCEED TWO DOLLARS AND FIFTY CENTS ON THE SALE OF EACH NEW TIRE.22 T HE MAXIMUM PER TIRE ENTERPRISE FEE AMOUNT MAY BE ADJUSTED BY 23 THE ENTERPRISE EVERY TWO YEARS IN ACCORDANCE WITH ANY ANNUAL24 PERCENTAGE CHANGE IN THE UNITED STATES DEPARTMENT OF LABOR 'S25 BUREAU OF LABOR STATISTICS CONSUMER PRICE INDEX FOR THE26 D ENVER-AURORA-LAKEWOOD METROPOLITAN AREA FOR ALL ITEMS PAID 27 123 -12- BY ALL URBAN CONSUMERS , OR ITS APPLICABLE SUCCESSOR INDEX.1 (II) E FFECTIVE JULY 1, 2025, THE BOARD OF DIRECTORS MAY2 REVIEW THE WASTE TIRE ENTERPRISE FEE ON AN ANNUAL BASIS AND, IN3 ACCORDANCE WITH THE FEE AMOUNT LIMIT SET FORTH IN SUBSECTION4 (2.5)(a)(I) OF THIS SECTION, ADJUST THE WASTE TIRE FEE AMOUNT SO5 THAT THE WASTE TIRE ENTERPRISE FEE IS IMPOSED IN AN AMOUNT THAT6 IS:7 (A) R EASONABLY RELATED TO THE DIRECT AND INDIRECT COSTS 8 OF OPERATING THE ENTERPRISE IN ACCORDANCE WITH THIS PART 14 AND9 THE SERVICES PROVIDED BY THE ENTERPRISE , WHICH COSTS MUST NOT10 EXCEED THE EQUIVALENT OF ONE -HALF OF THE WASTE TIRE ENTERPRISE11 FEE COLLECTED FOR EACH NEW TIRE SOLD PURSUANT TO THIS SUBSECTION12 (2.5);13 (B) S UFFICIENT TO PAY COSTS ASSOCIATED WITH PROVIDING 14 REBATES AS DESCRIBED IN SECTION 30-20-1405; AND15 (C) S UFFICIENT TO PROVIDE GRANTS TO ELIGIBLE ENTITIES 16 PURSUANT TO THE WASTE TIRE MANAGEMENT GRANT PROGRAM17 ESTABLISHED IN SECTION 30-20-1418.18 (b) (I) E FFECTIVE JULY 1, 2025, RETAILERS OF NEW MOTOR 19 VEHICLE TIRES AND NEW TRAILER TIRES SHALL COLLECT A WASTE TIRE20 ADMINISTRATION FEE IN AN AMOUNT TO BE SET BY THE COMMISSION , IN21 COORDINATION WITH THE DEPARTMENT .22 (II) T HE COMMISSION MAY REVIEW THE WASTE TIRE 23 ADMINISTRATION FEE ON AN ANNUAL BASIS AND ADJUST THE24 ADMINISTRATION FEE AMOUNT SO THAT IT COVERS THE DIRECT AND25 INDIRECT COSTS OF CONDUCTING THE REGULATORY AND ADMINISTRATIVE26 FUNCTIONS OF THE DEPARTMENT IN IMPLEMENTING THIS PART 14.27 123 -13- (III) THE WASTE TIRE ADMINISTRATION FEE AMOUNT MUST NOT1 EXCEED HALF OF THE AMOUNT OF THE WASTE TIRE ENTERPRISE FEE ;2 EXCEPT THAT THE MINIMUM AMOUNT OF THE WASTE TIRE3 ADMINISTRATION FEE ON THE SALE OF EACH NEW TIRE MUST BE FIFTY4 CENTS OR MORE.5 (c) (I) O N AND AFTER JULY 1, 2025, RETAILERS OF NEW MOTOR 6 VEHICLE TIRES AND NEW TRAILER TIRES SHALL COLLECT BOTH THE7 ENTERPRISE FEE AND THE ADMINISTRATION FEE FROM THE CONSUMER AT8 THE POINT OF SALE.9 (II) T HE RECEIPT FROM THE RETAILER TO THE CONSUMER FOR 10 EVERY NEW MOTOR VEHICLE OR NEW TRAILER TIRE PURCHASED MUST11 CONTAIN THE FOLLOWING STATEMENT IN THE LARGEST BOLD -FACED TYPE12 CAPABLE BASED ON POINT-OF-SALE SOFTWARE AND ON EXISTING INVOICE13 PRINTERS, NOT TO EXCEED FIFTEEN POINTS : "SECTION 30-20-1403,14 C OLORADO REVISED STATUTES, REQUIRES RETAILERS TO COLLECT A 15 WASTE TIRE ENTERPRISE FEE SET BY THE WASTE TIRE MANAGEMENT16 ENTERPRISE, WHICH IS A GOVERNMENT-OWNED BUSINESS WITHIN THE17 DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT , AND A WASTE18 TIRE ADMINISTRATION FEE SET BY THE SOLID AND HAZARDOUS WASTE19 COMMISSION ON THE SALE OF EACH NEW MOTOR VEHICLE TIRE AND20 EACH NEW TRAILER TIRE."21 (III) T HE RETAILER SHALL SUBMIT TO THE ENTERPRISE BY THE 22 TWENTIETH DAY OF EACH QUARTER OF EACH CALE NDAR YEAR THE23 ENTERPRISE FEE COLLECTED PURSUANT TO THIS SECTION IN THE24 PRECEDING QUARTER OF THE CALE NDAR YEAR , TOGETHER WITH ANY25 REPORT REQUIRED BY THE ENTERPRISE. THE ENTERPRISE SHALL TRANSMIT26 THE ENTERPRISE FEES TO THE STATE TREASURER , WHO SHALL CREDIT27 123 -14- THEM IN ACCORDANCE WITH SUBSECTION (3)(a) OF THIS SECTION OR AS1 SPECIFIED IN RULES PROMULGATED BY THE COMMISSION .2 (IV) T HE RETAILER SHALL SUBMIT TO THE DEPARTMENT BY THE 3 TWENTIETH DAY OF EACH QUARTER OF EACH CALENDAR YEAR THE4 ADMINISTRATION FEE COLLECTED PURSUANT TO THIS SECTION IN THE5 PRECEDING QUARTER OF THE CALENDAR YEAR , TOGETHER WITH ANY6 REPORT REQUIRED BY THE DEPARTMENT . THE DEPARTMENT SHALL7 TRANSMIT THE ADMINISTRATION FEES TO THE STATE TREASURER , WHO8 SHALL CREDIT THEM IN ACCORDANCE WITH SUBSECTION (3)(b) OF THIS9 SECTION OR AS SPECIFIED IN RULES PROMULGATED BY THE COMMISSION .10 (3) (a) B EGINNING ON JULY 1, 2025, THE STATE TREASURER SHALL 11 DISTRIBUTE THE REVENUE FROM THE WASTE TIRE ENTERPRISE FEE12 ASSESSED IN SUBSECTION (2.5)(a) OF THIS SECTION AS FOLLOWS:13 (I) T HE PORTION OF THE ENTERPRISE FEE COLLECTED TO COVER 14 THE COSTS DESCRIBED IN SUBSECTION (2.5)(a)(II)(A) OF THIS SECTION TO15 THE WASTE TIRE MANAGEMENT ENTERPRISE FUND CREATED IN SECTION16 30-20-1404;17 (II) T HE PORTION OF THE ENTERPRISE FEE COLLECTED TO COVER 18 THE COSTS DESCRIBED IN SUBSECTION (2.5)(a)(II)(B) OF THIS SECTION TO19 THE END USERS FUND CREATED IN SECTION 30-20-1405;20 (III) A LL INTEREST EARNED ON THE INVESTMENT OF MONEY IN THE 21 WASTE TIRE MANAGEMENT ENTERPRISE FUND TO THE WASTE TIRE22 MANAGEMENT ENTERPRISE FUND . ANY UNEXPENDED AND UNENCUMBERED23 MONEY IN THE WASTE TIRE MANAGEMENT ENTERPRISE FUND AT THE END24 OF ANY FISCAL YEAR SHALL REMAIN IN THE WASTE TIRE MANAGEMENT25 ENTERPRISE FUND.26 (IV) A LL INTEREST EARNED ON THE INVESTMENT OF MONEY IN THE 27 123 -15- END USERS FUND TO THE END USERS FUND . ANY UNEXPENDED AND1 UNENCUMBERED MONEY IN THE END USERS FUND AT THE END OF ANY2 FISCAL YEAR SHALL REMAIN IN THE END USERS FUND .3 (b) (I) B EGINNING ON JULY 1, 2025, THE STATE TREASURER SHALL 4 DISTRIBUTE THE REVENUE FROM THE WASTE TIRE ADMINISTRATION FEE5 ASSESSED IN SUBSECTION (2.5)(b) OF THIS SECTION TO THE WASTE TIRE6 ADMINISTRATION FUND CREATED IN SECTION 30-20-1405.5.7 (II) A LL INTEREST EARNED ON THE INVESTMENT OF MONEY IN THE 8 WASTE TIRE ADMINISTRATION FUND SHALL BE CREDITED TO THE WASTE9 TIRE ADMINISTRATION FUND. ANY UNEXPENDED AND UNENCUMBERED10 MONEY IN THE WASTE TIRE ADMINISTRATION FUND IN EXCESS OF SIXTEEN11 AND ONE-HALF PERCENT OF THE PREVIOUS STATE FISCAL YEAR 'S12 EXPENDITURES AT THE END OF ANY FISCAL YEAR SHALL REMAIN IN THE13 WASTE TIRE ADMINISTRATION FUND .14 15 SECTION 4. In Colorado Revised Statutes, 30-20-1404, amend16 (1), (2) introductory portion, (2)(a), (2)(o), (5), (6), and (7); repeal17 (2)(b), (2)(c), (2)(d), (2)(i), (2)(j), (2)(k), (2)(l), (2)(p), (3), (4), and (8);18 and add (2)(q), (2)(r), (2)(s), (2)(t), and (2)(u) as follows:19 30-20-1404. Waste tire management enterprise fund - creation20 - rules. (1) (a) There is hereby created in the state treasury the waste tire21 administration, enforcement, market development, and cleanup22 MANAGEMENT ENTERPRISE fund, referred to in this section as the "fund",23 consisting of the fee revenue credited pursuant to section 30-20-140324 (2.5)(a) and any other money appropriated OR TRANSFERRED to it. The25 general assembly shall annually appropriate the money in the fund to the26 department for its direct and indirect administrative and enforcement27 123 -16- costs in administering and enforcing this part 14 MONEY CREDITED TO1 THE FUND IS CONTINUOUSLY APPROPRIATED TO THE ENTERPRISE FOR THE2 PURPOSES SET FORTH IN THIS SECTION AND TO PAY THE ENTERPRISE'S3 REASONABLE AND NECESSARY OPERATING EXPENSES .4 (b) The state treasurer shall credit all interest earned on the5 investment of money in the fund to the fund. Any unexpended and6 unencumbered money in the fund in excess of sixteen and one-half7 percent of the previous fiscal year's expenditures at the end of any fiscal8 year shall be credited: REMAIN IN THE FUND.9 (a) Through December 31, 2025, to the end users fund created in10 section 30-20-1405; and11 (b) On and after January 1, 2026, to the general fund.12 (2) The department shall ENTERPRISE MAY, IN CONSULTATION13 WITH THE DEPARTMENT, use the money in the fund for:14 (a) Collecting the WASTE TIRE ENTERPRISE fee assessed in section 15 30-20-1403 (1) (2.5)(a);16 (b) Inspecting retailers to determine whether all fees are being17 collected;18 (c) Enforcing the requirements of this part 14 pursuant to existing19 authority, including sections 30-20-113 and 30-20-114;20 (d) Developing a system to address the receipt by registered21 persons of unmanifested waste tires from unregistered haulers;22 (i) Providing grants to law enforcement, fire departments, local23 health departments, state agencies, and any other applicable entities for24 purchasing equipment and supplies to implement this part 14;25 (j) Training of and enforcement by entities that enforce this part26 14;27 123 -17- (k) Awarding grants and developing educational programs for1 enforcement, fire prevention and suppression, proper waste tire2 management and disposal, training, and customer technical assistance;3 (l) Maintaining an online complaint form and processes for law4 enforcement, fire departments, and citizens to report potential waste tire5 violations;6 (o) Encouraging waste tire market development; and7 (p) Reimbursing the division of fire prevention and control in the8 department of public safety for:9 (I) Inspections of facilities where waste tires are present10 conducted by the division to determine whether the waste tire collection11 facilities, waste tire processors, and waste tire monofills are in12 compliance with the rules promulgated by the director of the division13 pursuant to section 24-33.5-1203.5 (2); and14 (II) Technical and other assistance the division provides to the15 department or the public related to waste tires, including assistance16 related to:17 (A) The development of fire prevention education materials; and18 (B) Review of fire prevention plans.19 (q) T HE PAYMENT OF ANY BONDS ISSUED PURS UANT TO SECTION20 30-20-1403 (1.5)(b); 21 (r) R EIMBURSEMENT OF ANY CONTRACTORS USED FOR CLEANUP22 AND REMEDIATION ACTIVITIES ENGAGED IN PURSUANT TO SUBSECTIONS23 (2)(f) AND (2)(g) 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; 27 123 -18- (t) FUNDING GRANTS IN ACCORDANCE WITH THE WASTE TIRE1 MANAGEMENT GRANT PROGRAM ESTABLISHED IN SECTION 30-20-1418;2 AND3 (u) ANY OTHER ACTIVITY NECESSARY TO IMPLEMENT SECTION4 30-20-1403, AS DETERMINED BY THE BOARD OF DIRECTORS .5 (3) If the department is denied access or if consent to access has6 not been given to clean up a site where the department reasonably7 believes waste tires exist illegally, the department may obtain from the8 district court for the judicial district in which the property is located a9 warrant to enter the property and remove the waste tires.10 (4) (a) In addition to any penalties assessed, the department may11 issue an order requiring the owner or operator to compensate the12 department for the cost of remediation of the site, and the department may13 request the attorney general to bring suit for compensation from the14 owner or operator for money expended remediating the site. The15 department shall use the recovered moneys to reimburse the fund for16 actual costs of remediating the site and of seeking compensation pursuant17 to this section. The state treasurer shall credit all additional moneys to the18 general fund.19 (b) The department may place a lien on a property on which the20 department funds the remediation of waste tires pursuant to this section21 until the costs of remediation have been repaid to the department. If22 complete repayment has not been made before a sale of the property, the23 department shall be repaid in full, to the extent possible, from proceeds24 of the sale.25 (5) (a) In providing assistance pursuant to this section, the26 department ENTERPRISE shall give primary consideration to protection of27 123 -19- public health and the environment.1 (b) In awarding contracts for services pursuant to this section, the2 department ENTERPRISE may give preferential bidding treatment to3 individuals or entities that will recycle, pursuant to rules of the4 department concerning recycling, and reuse, rather than dispose of, the5 waste tires.6 (6) The department ENTERPRISE shall, either itself or through a7 contractor, create a priority abatement list of illegal waste tire disposal8 sites.9 (7) The ENTERPRISE, IN COORDINATION WITH THE department and10 the department of transportation, shall coordinate with one another to 11 systematically investigate and research the use of tire-derived aggregates12 in technically feasible and economically viable civil applications13 associated with the department of transportation's roadway mission. The14 department shall include any findings regarding tire-derived aggregates,15 as appropriate, in the department's annual report to the general assembly.16 (8) Notwithstanding any other provision of this section, on June17 30, 2020, the state treasurer shall transfer five million three hundred18 seventy-two thousand four hundred fifteen dollars from the fund to the19 general fund.20 SECTION 5. In Colorado Revised Statutes, 30-20-1405, amend21 (1), (2)(a) introductory portion, (3), (4)(a), (4)(b) introductory portion, (5)22 introductory portion, (5)(c) introductory portion, (5)(d), (5)(e)23 introductory portion, (5)(e)(I), (6) introductory portion, (6)(b)(II), (7), (8)24 introductory portion, (9), and (10); and repeal (1.5) as follows:25 30-20-1405. End users fund - creation - quarterly rebates -26 rules - repeal. (1) (a) There is hereby created in the state treasury the end27 123 -20- users fund, referred to in this section as the "fund", consisting of the fee1 revenue credited pursuant to section 30-20-1403 (2)(a)(II) 30-20-14032 (3)(a)(II).3 (b) The state treasurer shall credit all interest and any other return4 on the investment of money in the fund to the fund. The fund is subject5 to annual appropriation by the general assembly to the department for the6 purposes specified in this section MONEY CREDITED TO THE FUND IS7 CONTINUOUSLY APPROPRIATED TO THE ENTERPRISE FOR THE PURPOSES SET8 FORTH IN THIS SECTION.9 (1.5) Notwithstanding any other provision of this section, on June10 30, 2020, the state treasurer shall transfer one million four hundred11 thousand dollars from the fund to the general fund.12 (2) (a) The department ENTERPRISE, IN CONSULTATION WITH THE13 DEPARTMENT, shall use the money in the fund to provide quarterly rebates14 to in-state:15 (3) The rebate is subject to the following conditions:16 (a) The department ENTERPRISE shall pay the rebate amount17 quarterly, on a per-ton basis; and18 (b) Once the department ENTERPRISE has paid a rebate on a19 particular quantity of tire-derived product, every part of that particular20 quantity of tire-derived product is no longer eligible for payment of the21 rebate.22 (4) (a) The commission ENTERPRISE, IN CONSULTATION WITH THE23 COMMISSION, shall annually set the amount of the rebate, by rule, on a24 per-ton basis, and the department ENTERPRISE shall pay the set rebate25 amount for each ton of qualified tire-derived product. The commission26 ENTERPRISE shall calculate the rebate to equal, but not exceed, the amount27 123 -21- of the anticipated income transferred into the fund during each1 succeeding twelve-month period.2 (b) Each year, the department ENTERPRISE shall continue to3 provide the rebate in accordance with the tiered structure set forth in4 subsection (5)(e) of this section until:5 (5) The commission shall promulgate rules governing6 administration of the rebate. which ON AND AFTER THE EFFECTIVE DATE7 OF THIS SECTION, AS AMENDED, THE COMMISSION SHALL CONSULT WITH8 THE ENTERPRISE IN ADOPTING RULES GOVERNING ADMINISTRATION OF THE9 REBATE. THE COMMISSION'S rules must include the following:10 (c) If the balance of the fund is anticipated to be insufficient to11 pay out all of the rebates applied for, a requirement that the department12 ENTERPRISE:13 (d) A requirement that an end user that qualifies for a rebate by14 utilizing waste tires for:15 (I) Alternative daily cover must verify with the department16 ENTERPRISE that the alternative daily cover meets all specification17 standards for all type-B tire-derived aggregate, as established by the18 ASTM standard D6270; and19 (II) Tire-derived aggregate must verify with the department20 ENTERPRISE that the tire-derived aggregate meets all specification21 standards for all type-A AND TYPE-B tire-derived aggregate, as established22 by the ASTM standard D6270; and23 (e) Three tiers of rebate amounts that the department ENTERPRISE24 may pay out based on the amount of the waste tire that was used and25 destroyed as follows:26 (I) Tier 1: Full rebates going to crumbed rubber end uses and end27 123 -22- uses that completely destroy the waste tire for the purpose of energy1 recovery or other clean technologies as defined and approved by the2 commission by rule;3 (6) The department ENTERPRISE:4 (b) May deny:5 6 (II) All future rebates pursuant to this section and grants of money7 from the waste tire administration, enforcement, market development, and8 cleanup MANAGEMENT ENTERPRISE fund created in section 30-20-1404 to9 an applicant that knowingly or intentionally provides false information to10 the department ENTERPRISE when applying for a rebate or for a grant of11 money from the waste tire administration, enforcement, market12 development, and cleanup MANAGEMENT ENTERPRISE fund.13 (7) Waste tires obtained from rural counties are eligible for an14 additional rebate amount of twenty-five dollars per ton; however, the15 additional rebate amount must not exceed the rebate amount for tier 316 rebates as determined by the commission by rule pursuant to subsection17 (5)(e)(III) of this section. To qualify for the additional rebate amount set18 forth in this subsection (7), an end user must provide evidence to the19 department ENTERPRISE documenting the county of origin for each waste20 tire.21 (8) The department ENTERPRISE shall require that an end user22 submit an application for a rebate that contains self-certifications23 provided by the end user regarding:24 (9) (a) O N OR AFTER JANUARY 1, 2026, AND UNTIL DECEMBER 31,25 2041, the department ENTERPRISE may issue rebates after January 1, 2026,26 only for end uses occurring and rebates applied for on or before27 123 -23- December 31, 2025 PURSUANT TO THIS SECTION.1 (b) The commission, IN CONSULTATION WITH THE ENTERPRISE ,2 shall repeal any rules concerning the fund and implementation of this3 section once the department ENTERPRISE has issued the final rebates4 pursuant to subsection (9)(a) of this section.5 (c) On July 1, 2026 JULY 1, 2042, the state treasurer shall transfer6 any money left in the fund to the general fund.7 (10) This section is repealed, effective July 1, 2026 DECEMBER 31,8 2042.9 SECTION 6. In Colorado Revised Statutes, add 30-20-1405.5 as10 follows:11 30-20-1405.5. Waste tire administration fund - creation - clean12 up - reimbursement - penalties - rules. (1) (a) T HERE IS CREATED IN 13 THE STATE TREASURY THE WASTE TIRE ADMINISTRATION FUND , REFERRED14 TO IN THIS SECTION AS THE "FUND".15 (b) T HE FUND CONSISTS OF THE WASTE TIRE ADMINISTRATION FEE 16 REVENUE CREDITED TO THE FUND PURSUANT TO SECTION 30-20-140317 (3)(b) AND ANY OTHER MONEY APPROPRIATED OR TRANSFERRED TO IT . 18 (c) M ONEY CREDITED TO THE FUND IS CONTINUOUSLY 19 APPROPRIATED TO THE DEPARTMENT FOR THE PURPOSES SET FORTH IN20 SUBSECTION (2) OF THIS SECTION.21 (2) T HE DEPARTMENT MAY USE THE MONEY IN THE FUND FOR THE 22 REASONABLE DIRECT AND INDIRECT COSTS OF CONDUCTING THE23 REGULATORY AND ADMINISTRATIVE FUNCTIONS OF THE DEPARTMENT IN24 IMPLEMENTING THIS PART 14, INCLUDING:25 (a) I NSPECTING NEW MOTOR VEHICLE TIRE AND NEW TRAILER TIRE 26 RETAILERS TO DETERMINE WHETHER ALL FEES ARE BEING COLLECTED ;27 123 -24- (b) ENFORCING THE REQUIREMENTS OF THIS PART 14 PURSUANT TO1 EXISTING AUTHORITY, INCLUDING SECTIONS 30-20-113 AND 30-20-114;2 (c) D EVELOPING A SYSTEM TO ADDRESS THE RECEIPT BY 3 REGISTERED PERSONS OF UNMANIFESTED WASTE TIRES FROM4 UNREGISTERED WASTE TIRE HAULERS ;5 (d) M AINTAINING AN ONLINE COMPLAINT FORM AND PROCESS FOR 6 LAW ENFORCEMENT , FIRE DEPARTMENTS, AND CITIZENS TO REPORT7 POTENTIAL WASTE TIRE VIOLATIONS;8 (e) R EIMBURSING THE DIVISION OF FIRE PREVENTION AND CONTROL 9 IN THE DEPARTMENT OF PUBLIC SAFETY FOR :10 (I) I NSPECTIONS OF FACILITIES WHERE WASTE TIRES ARE PRESENT 11 CONDUCTED BY THE DIVISION OF FIRE PREVENTION AND CONTROL TO12 DETERMINE WHETHER THE WASTE TIRE COLLECTION FACILITIES , WASTE13 TIRE PROCESSORS, AND WASTE TIRE MONOFILLS ARE IN COMPLIANCE WITH14 THE RULES PROMULGATED BY THE DIRECTOR OF THE DIVISION PURSUANT15 TO SECTION 24-33.5-1203.5 (2); AND16 (II) T ECHNICAL AND OTHER ASSISTANCE THE DIVISION OF FIRE 17 PREVENTION AND CONTROL PROVIDES TO THE DEPARTMENT OR THE PUBLIC18 RELATED TO WASTE TIRES, INCLUDING ASSISTANCE RELATED TO:19 (A) T HE DEVELOPMENT OF FIRE PREVENTION EDUCATION 20 MATERIALS; AND21 (B) R EVIEW OF FIRE PREVENTION PLANS; 22 (f) R EGISTERING AND REGULATING WASTE TIRE HAULERS , WASTE 23 TIRE GENERATORS, USED TIRE MANAGERS , WASTE TIRE COLLECTION24 FACILITIES, WASTE TIRE PROCESSORS, MOBILE PROCESSORS, WASTE TIRE25 MONOFILLS, AND END USERS IN ACCORDANCE WITH SECTIONS 30-20-140826 TO 30-20-1417;27 123 -25- (g) PROVIDING GRANTS TO LAW ENFORCEMENT , FIRE1 DEPARTMENTS, LOCAL HEALTH DEPARTMENTS, STATE AGENCIES, AND ANY2 OTHER APPLICABLE ENTITIES FOR PURCHASING EQUIPMENT AND SUPPLIES3 TO IMPLEMENT THIS PART 14;4 (h) T RAINING OF AND ENFORCEMENT BY ENTITIES THAT ENFORCE 5 THIS PART 14;6 (i) A WARDING GRANTS AND DEVELOPING EDUCATIONAL 7 PROGRAMS FOR ENFORCEMENT , FIRE PREVENTION AND SUPPRESSION ,8 PROPER WASTE TIRE MANAGEMENT AND DISPOSAL , TRAINING, AND9 CUSTOMER TECHNICAL ASSISTANCE ; AND10 (j) A NY OTHER REGULATORY OR ADMINISTRATIVE COSTS RELATED 11 TO THE DEPARTMENT'S AUTHORITY AND DUTIES IN IMPLEMENTING THIS12 PART 14.13 (3) I F THE DEPARTMENT IS DENIED ACCESS OR IF CONSENT TO 14 ACCESS HAS NOT BEEN GIVEN TO CLEAN UP A SITE WHERE THE15 DEPARTMENT REASONABLY BELIEVES WASTE TIRES EXIST ILLEGALLY , THE16 DEPARTMENT MAY OBTAIN FROM THE DISTRICT COURT FOR THE JUDICIAL17 DISTRICT IN WHICH THE PROPERTY IS LOCATED A WARRANT TO ENTER THE18 PROPERTY AND REMOVE THE WASTE TIRES .19 (4) (a) I N ADDITION TO ANY PENALTIES ASSESSED , THE 20 DEPARTMENT MAY ISSUE AN ORDER REQUIRING THE OWNER OR OPERATOR21 TO COMPENSATE THE DEPARTMENT FOR THE COST OF REMEDIATION OF THE22 SITE, AND THE DEPARTMENT MAY REQUEST THE ATTORNEY GENERAL TO23 BRING SUIT FOR COMPENSATION FROM THE OWNER OR OPERATOR FOR24 MONEY EXPENDED REMEDIATING THE SITE . THE DEPARTMENT SHALL USE25 THE RECOVERED MONEY TO REIMBURSE THE FUND FOR ACTUAL COSTS OF26 REMEDIATING THE SITE AND OF SEEKING COMPENSATION PURSUANT TO27 123 -26- THIS SECTION. THE STATE TREASURER SHALL CREDIT ALL ADDITIONAL1 MONEY TO THE GENERAL FUND .2 (b) T HE DEPARTMENT MAY PLACE A LIEN ON A PROPERTY ON 3 WHICH THE DEPARTMENT FUNDS THE REMEDIATION OF WASTE TIRES4 PURSUANT TO THIS SECTION UNTIL THE COSTS OF REMEDIATION HAVE BEEN5 REPAID TO THE DEPARTMENT . IF COMPLETE REPAYMENT HAS NOT BEEN6 MADE BEFORE A SALE OF THE PROPERTY , THE DEPARTMENT SHALL BE7 REPAID IN FULL, TO THE EXTENT POSSIBLE, FROM PROCEEDS OF THE SALE.8 SECTION 7. In Colorado Revised Statutes, 30-20-1415, amend9 (1)(k) as follows:10 30-20-1415. Waste tire monofills - requirements. (1) An owner11 or operator of a waste tire monofill shall, as specified by the commission12 by rule:13 (k) Not place any waste tires into monofill storage after January14 1, 2018, and SHALL close, or cause to be closed, the waste tire monofill 15 by July 1, 2024 2034.16 SECTION 8. In Colorado Revised Statutes, add 30-20-1418 as17 follows:18 30-20-1418. Waste tire management grant program -19 definitions - repeal. (1) A S USED IN THIS SECTION, UNLESS THE CONTEXT 20 OTHERWISE REQUIRES:21 (a) "E LIGIBLE ENTITY" MEANS THE FOLLOWING ENTITIES THAT 22 PROVIDE SERVICES RELATED TO WASTE TIRE RECYCLING , BENEFICIAL23 REUSE, AND MANAGEMENT IN COLORADO:24 (I) M UNICIPALITIES, COUNTIES, AND CITIES AND COUNTIES; 25 (II) N ONPROFIT AND FOR-PROFIT BUSINESSES INVOLVED IN WASTE 26 TIRE RECYCLING, BENEFICIAL REUSE, AND MANAGEMENT; AND27 123 -27- (III) INSTITUTIONS OF HIGHER EDUCATION AND PUBLIC OR PRIVATE1 SCHOOLS.2 (b) "G RANT PROGRAM" MEANS THE WASTE TIRE MANAGEMENT 3 GRANT PROGRAM CREATED IN THIS SECTION .4 (2) (a) T HERE IS CREATED THE WASTE TIME MANAGEMENT GRANT 5 PROGRAM, WHICH SHALL BE ADMINISTERED BY THE ENTERPRISE .6 (b) T HE ENTERPRISE SHALL , SUBJECT TO AVAILABLE 7 APPROPRIATIONS AND REVENUES , AWARD GRANTS FROM THE WASTE TIRE8 MANAGEMENT ENTERPRISE FUND , CREATED IN SECTION 30-20-1404, IN9 ACCORDANCE WITH THIS SECTION .10 (3) (a) T HE PURPOSE OF THE GRANT PROGRAM IS TO : 11 (I) P ROMOTE THE DEVELOPMENT OF WASTE TIRE RECYCLING , 12 BENEFICIAL REUSE, AND MANAGEMENT STRATEGIES IN ACCOR DANCE WITH13 THIS PART 14;14 (II) D EVELOP WASTE TIRE RECYCLING , BENEFICIAL REUSE, AND 15 MANAGEMENT FACILITIES AND INFRASTRUCTURE ; AND16 (III) E XPAND WASTE TIRE RECYCLING , BENEFICIAL REUSE, AND 17 MANAGEMENT SERVICES TO FEE PAYERS .18 (b) T HE GRANT PROGRAM IS INTENDED TO PROVIDE ECONOMIC AND 19 TECHNICAL ASSISTANCE TO ELIGIBLE ENTITIES IN THEIR EFFORTS RELATED20 TO THE RECYCLING, BENEFICIAL REUSE, AND MANAGEMENT OF WASTE21 TIRES.22 (4) (a) A N ELIGIBLE ENTITY MAY SUBMIT AN APPLICATION TO THE 23 ENTERPRISE FOR A GRANT PURSUANT TO THE APPLICATION POLICIES AND24 PROCEDURES ESTABLISHED BY THE BOARD .25 (b) A T A MINIMUM, AN APPLICATION SUBMITTED TO THE BOARD 26 MUST INCLUDE THE FOLLOWING INFORMATION :27 123 -28- (I) AN APPLICATION NARRATIVE THAT DESCRIBES HOW THE1 ELIGIBLE ENTITY WILL USE THE GRANT, INCLUDING HOW THE GRANT WILL2 PROMOTE THE RECYCLING , BENEFICIAL REUSE, AND MANAGEMENT OF3 WASTE TIRES;4 (II) A N ESTIMATE OF THE COST OF THE EQUIPMENT , 5 INFRASTRUCTURE, OR PROJECT THE ELIGIBLE ENTITY IS INTENDING TO6 FUND WITH THE GRANT AND WHETHER THE EQUIPMENT , INFRASTRUCTURE,7 OR PROJECT MEETS THE REQUIREMENTS SPECIFIED IN SUBSECTION (5) OF8 THIS SECTION;9 (III) T HE AMOUNT OF IN-KIND CONTRIBUTIONS OR MATCHING 10 FUNDS, IF ANY, TO THE PROJECT BUDGET FROM THE APPLICANT OR OTHER11 SOURCES OUTSIDE OF THE GRANT; AND12 (IV) W HETHER THERE IS LOCAL COMMUNITY SUPPORT FOR THE 13 GRANT APPLICATION.14 (5) (a) T HE BOARD MAY AWARD GRANTS TO ELIGIBLE ENTITIES FOR 15 THE FOLLOWING PURPOSES:16 (I) T HE PURCHASE OF WASTE TIRE RECYCLING , BENEFICIAL REUSE, 17 AND MANAGEMENT EQUIPMENT OR INFRASTRUCTURE ;18 (II) S TAFFING OF WASTE TIRE RECYCLING, BENEFICIAL REUSE, AND 19 MANAGEMENT FACILITIES;20 (III) M ARKETING AND COMMUNICATIONS FOR WASTE TIRE 21 RECYCLING, BENEFICIAL REUSE, AND MANAGEMENT SERVICES ;22 (IV) P OLICY AND RESEARCH DEVELOPMENT RELATED TO WASTE 23 TIRE RECYCLING, BENEFICIAL REUSE, AND MANAGEMENT STRATEGIES ;24 (V) C OMMUNITY ENGAGEMENT REGARDING WASTE TIRE 25 RECYCLING, BENEFICIAL REUSE, AND MANAGEMENT; AND26 (VI) O THER PROJECTS OR USES AS DETERMINED BY THE BOARD . 27 123 -29- (b) (I) THE BOARD MAY AWARD GRANTS TO AN ELIGIBLE ENTITY1 FOR THE PURCHASE OF EQUIPMENT OR INFRASTRUCTURE , BUT NO MORE2 THAN FIFTY PERCENT OF THE COST OF ANY EQUIPMENT OR3 INFRASTRUCTURE CAN BE FUNDED THROUGH THE GRANT PROGRAM .4 (II) T HE BOARD MAY AWARD GRANTS TO AN ELIGIBLE ENTITY THAT 5 FUND ONE HUNDRED PERCENT OF THE COST OF A PROJECT THAT DOES NOT6 INVOLVE THE PURCHASE OF EQUIPMENT OR INFRASTRUCTURE .7 (c) I N AWARDING GRANTS TO ELIGIBLE ENTITIES , THE BOARD IS 8 SUBJECT TO THE FOLLOWING CONDITIONS :9 (I) U P TO FORTY PERCENT OF THE ENTERPRISE 'S ANNUAL GRANT 10 FUNDING MAY GO TO A SINGLE AWARD ; AND11 (II) I F THE BOARD AWARDS A GRANT TO AN ELIGIBLE ENTITY FOR 12 THE PURCHASE OF INFRASTRUCTURE OR EQUIPMENT , THE ELIGIBLE ENTITY13 IS INELIGIBLE TO RECEIVE A GRANT FOR THE FOLLOWING FIVE YEARS .14 (6) (a) (I) T HE BOARD SHALL ESTABLISH CRITERIA AND POLICIES TO 15 DETERMINE WHICH GRANTS TO AWARD FROM THE GRANT APPLICATIONS ,16 WHICH CRITERIA AND POLICIES IT SHALL MAKE AVAILABLE TO APPLICANTS .17 (II) T HE BOARD SHALL GIVE PRIORITY TO PROJECTS THAT ADVANCE 18 SUSTAINABLE DESIGN, PRODUCTION, RECOVERABILITY, REUSE, REPAIR, OR19 RECYCLING OF WASTE TIRES , WITH THE HIGHEST PRIORITY GIVEN TO20 PROJECTS THAT WOULD KEEP WASTE TIRE MATERIAL AVAILABLE FOR21 REMANUFACTURING .22 (b) T HE BOARD SHALL ESTABLISH POLICIES FOR THE GRANT 23 PROGRAM, WHICH MUST INCLUDE:24 (I) A N APPLICATION FORM AND APPLICATION PROCEDURES ; 25 (II) A DEADLINE EACH YEAR FOR WHEN GRANT PROGRAM 26 APPLICATIONS MUST BE SUBMITTED ;27 123 -30- (III) A POLICY THAT REQUIRES A GRANT RECIPIENT TO ENTER INTO1 A GRANT AGREEMENT WITH THE BOARD THAT INCLUDES A SCOPE OF WORK2 AND DEADLINES FOR THE ACHIEVEMENT OF THAT WORK ;3 (IV) C RITERIA FOR MEASURING PROGRESS OF THE PROJECTS THAT 4 RECEIVE FUNDING THROUGH THE GRANT PROGRAM ;5 (V) A POLICY THAT REQUIRES ANNUAL REPORTING BY GRANT 6 RECIPIENTS ON THE PROGRESS OF THE PROJECT FINANCED BY THE GRANT ;7 AND8 (VI) A POLICY REGARDING A GRANT RECIPIENT'S NONCOMPLIANCE 9 WITH THE GRANT AGREEMENT ENTERED INTO BY THE GRANT RECIPIENT 'S10 AND THE BOARD, WHICH POLICY MAY INCLUDE A MECHANISM FOR THE11 BOARD TO CONVERT THE GRANT RECIPIENT 'S GRANT TO A LOAN WITH12 INTEREST.13 (7) (a) T HE GRANT PROGRAM IS FUNDED BY THE WASTE TIRE 14 ENTERPRISE FEE. THE BOARD MAY DESIGNATE UP TO TEN PERCENT OF THE15 REVENUE GENERATED FROM THE ENTERPRISE FEE TO THE GRANT PROGRAM16 IN ANY GIVEN YEAR.17 (b) T HE BOARD SHALL NOT AWARD ANY GRANTS TO ELIGIBLE 18 ENTITIES THROUGH THE GRANT PROGRAM AFTER DECEMBER 31, 2040.19 (8) T HIS SECTION IS REPEALED EFFECTIVE DECEMBER 31, 2042. 20 SECTION 9. Appropriation. (1) For the 2024-25 state fiscal21 year, $60,208 is appropriated to the department of public health and22 environment. This appropriation is from the waste tire administration,23 enforcement, market development, and cleanup fund created in section24 30-20-1404 (1), C.R.S. To implement this act, the department may use25 this appropriation as follows:26 (a) $9,000 for use by the hazardous materials and waste27 123 -31- management division for the solid waste control program; and 1 (b) $51,208 for the purchase of legal services.2 (2) For the 2024-25 state fiscal year, $51,208 is appropriated to3 the department of law. This appropriation is from reappropriated funds4 received from the department of public health and environment under5 subsection (1)(b) of this section and is based on an assumption that the6 department of law will require an additional 0.2 FTE. To implement this7 act, the department of law may use this appropriation to provide legal8 services for the department of public health and environment.9 SECTION 10. Effective date. This act takes effect upon passage;10 except that section 30-20-1403 (2.5), Colorado Revised Statutes, as added11 in section 3 of this act, takes effect on July 1, 2025; section 30-20-1404,12 Colorado Revised Statutes, as amended in section 4 of this act, takes13 effect on July 1, 2025; section 30-20-1405, Colorado Revised Statutes, as14 amended in section of 5 of this act, takes effect on July 1, 2025; section15 30-20-1405.5, as added in section 6 of this act, takes effect on July 1,16 2025; and section 30-20-1418, as added in section 8 of this act, takes17 effect on July 1, 2025.18 SECTION 11. Safety clause. The general assembly finds,19 determines, and declares that this act is necessary for the immediate20 preservation of the public peace, health, or safety or for appropriations for21 the support and maintenance of the departments of the state and state22 institutions.23 123 -32-