Louisiana 2013 2013 Regular Session

Louisiana House Bill HB591 Comm Sub / Analysis

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Prepared by J. W. Wiley.
S. Bishop	HB No. 591
(KEYWORD, SUMMARY, AND DIGEST as amended by Senate committee
amendments)
ENVIRONMENT/WASTE TIRES. Provides for the waste tire program in the
Department of Environmental Quality
DIGEST
Present law provides that $2 per passenger/light truck tire, $5 per medium truck tire, and $10
per off-road tire be collected for every new tire sold. These fees are deposited into the Waste
Tire Management Fund which is used to operate the waste tire program in the Dept. of
Environmental Quality (DEQ). One aspect of that program is to reimburse waste tire
processors from the fund for scrapping waste tires generated within the state.
Present law requires the owner or operator of a waste tire collection center to provide the
department the location, size, and the approximate number of waste tires that are
accumulated at their site within 6 months after Sep. 1, 1989.
Present law prohibits any person after Jan. 1, 1990, to knowingly and intentionally dispose
of waste tires in the state, unless the waste tires are disposed of for processing, or collected
for processing at a permitted solid waste disposal facility, a permitted waste tire processing
facility, or a waste tire collection center.
Present law prohibits the knowingly or intentionally disposing of waste tires that are not
subjected to processing or recycling in a landfill after Jan. 1, 1991.
Proposed law retains present law except removes the dates.
Present law requires the secretary of DEQ to promulgate rules, regulations, and guidelines
for the administration and enforcement of a waste tire program.
Present law requires the rules and regulations to provide for technical assistance and
incentives to encourage market research and development projects.  Proposed law retains
present law.
Present law requires the rules to provide that 5% of the funds collected from July 1, 2003
through June 30, 2008, for the waste tire fund shall be used to encourage the development
and promotion of products which have a beneficial use. Any amounts in excess of $500,000
collected in that time after June 30, 2008, shall be used solely for the purposes of the Waste
Tire Management Fund.  Further requires the department to make recommendations to the
oversight committees for tax credits to encourage development and implementation of
technologies utilizing used and recycled tire rubber.  	Proposed law repeals present law.
Present law requires the rules to establish a priority system for the clean up of existing waste
tires.  Proposed law repeals present law and requires the establishment of a procedure to
accept payments from collection centers and tire retailers to cover the cost of transporting
and recycling waste tires collected at those facilities.
Present law requires the rules to establish a procedure and criteria for local governing
authorities to apply for and receive funds to remediate waste tire problems in their respective
jurisdictions and shall commence such payments by May 1, 1993.  	Proposed law repeals
present law.
Present law requires a waste tire processing facility to be paid by DEQ a minimum of 7-½¢
per pound of waste tire material that is recycled or that reaches end-market uses or that
reaches end-market uses or per whole waste tires marketed and shipped to a qualified
recycler. Page 2 of 3
Prepared by J. W. Wiley.
Proposed law changes the requirement for payment for whole waste tires from that whole
waste tires be marketed and shipped to a qualified recycler 	to that whole waste tires be
recycled or reaches end market uses.
Present law conditions payment to the waste tire processing facility on providing
documentation required by rules and regulations.  	Proposed law retains present law.
Proposed law requires the payments to waste tire processors by the 25
th
 of each month.
Present law provides that in the event the balance of the Waste Tire Management Fund is
insufficient to meet the obligations to waste tire processors, DEQ, after meeting all payments
required by law, pay any undisputed amounts in a pro rata share to waste tire processors
having a standard permit when the request was submitted.  Proposed law removes the
requirement that the payments be made after meeting all payment required by law.
Present law provides that remaining undisputed obligations unpaid due to lack of funds shall
be paid in a pro rata share from future surpluses to certain waste tire processors and to be
paid within 15 days after the month in which the surplus arises.  Proposed law repeals present
law.
Proposed law provides that payment shall be applied in priority from the earliest incurred
undisputed obligation to the most current undisputed obligation.
Present law requires the secretary to make rules for payments to processors on the basis of
weight or tire count at the option of the processor.  Proposed law removes the option to make
payments on the basis of tire count.
Present law prohibits withholding or terminating payments to a waste tire processor without
written notification of the reasons and requires any disputed payments be placed in escrow
until resolution.  Proposed law retains present law.
Present law requires the department by rule to encourage the voluntary establishment of
waste tire collection centers at all retail outlets that are engaged in the sale of tires.  Such
centers shall be open to the public and programs to encourage the return of waste tires to
collection centers shall be undertaken by the department.  Proposed law repeals present law.
Proposed law requires the department to initiate rulemaking to implement proposed law on
or before Aug. 10, 2013, and submit the summary report to the oversight committees by Dec.
31, 2013.
Effective August 1, 2013.
(Amends R.S. 30:2418(A), (B), (C), (H)(3) and (6), (I)(2) and (3)(a), and (N); Repeals R.S.
30:2418(D), (H)(9), and (I)(3)(b))
Summary of Amendments Adopted by House
Committee Amendments Proposed by 	House Committee on Municipal, Parochial and
Cultural Affairs to the original bill.
1. Changes provisions for establishing a procedure for accepting payments from
collection centers and retailers for the costs of transporting and recycling
ineligible tires to establishing a procedure when funds are available to cover
those costs.
2. Changes the payments to waste tire processors from the 25th day of each month
to the 12th day of the month following the request for payment.
3. Retains present law providing that payments to processors due to insufficiencies
in the Waste Tire Management Fund shall be paid from future surplus in a pro
rata share. Page 3 of 3
Prepared by J. W. Wiley.
4. Retains present law provisions providing for funding to local governing
authorities to remediate waste tires, encouraging the establishment of collection
centers at retailers.
5. Removes requirement that the Dept. of Environmental Quality initiate
rulemaking on or before Aug. 10, 2013.
6. Changes the submission of the summary report 	from the Senate Committee on
Natural Resources to the Senate Committee on Environmental Quality.
House Floor Amendments to the engrossed bill.
1. Increases the fee on medium truck tires from $5 to $7.50.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Environmental Quality to
the reengrossed bill
1. Removes the House Committee and Floor amendments.
2. Establishes a procedure for payment from collection centers and tire retailers.
3. Changes the effective date from July 1, 2013, to August 1, 2013.