42885.
(a) (1) For purposes of this section, “California tire fee” means the fee imposed pursuant to subdivision (b) of this section.(2) For purposes of this section, a “California tire regulatory fee” means a fee imposed pursuant to subdivision (c) of this section.
(b) (1) A person who purchases a new tire, as defined in subdivision (h), shall pay a California tire fee of one dollar and seventy-five cents ($1.75) per tire.
(2) The retail seller shall charge the retail purchaser the amount of
the California tire fee as a charge that is separate from, and not included in, any other fee, charge, or other amount paid by the retail purchaser.
(3) The retail seller shall collect the California tire fee from the retail purchaser at the time of sale and may retain 11/2 percent of the fee as reimbursement for any costs associated with the collection of the fee. The retail seller shall remit the remainder to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund, which is hereby created in the State Treasury.
(c) (1) Upon a finding by the department that the balance of the California Tire Recycling Management Fund is projected to
drop below ten million dollars ($10,000,000) twenty-five million dollars ($25,000,000) for the next fiscal year, the department shall establish, and a waste tire generator that is a retail seller of new tires to end user purchasers shall pay, a California tire regulatory fee. The amount of the California tire regulatory fee shall be established and adjusted by the department based on the factors specified in paragraph (3), but that amount shall not exceed one dollar ($1) per new tire sold. The department shall set this fee to collect no more than is necessary for the following fiscal year, including a prudent reserve, as specified in subparagraph (B) of paragraph (3). The department may differentiate in setting fees between
waste tire generators who are retail sellers of new tires to end user purchasers depending upon the nature of the retail seller’s activity generating waste tires, the number of waste tires generated, and other appropriate bases.
(2) A waste tire generator that is a retail seller of new tires to end user purchasers shall remit the fee assessed pursuant to this subdivision to the state on a quarterly schedule for deposit in the California Tire Recycling Management Fund. The revenue from the California tire regulatory fee shall be tracked separately by the department and shall not be used for activities other than those described in
this subdivision.
(3) Prior to establishing or adjusting the California tire regulatory fee, the department shall review at a public hearing the following factors:
(A) The amount necessary to fund the reasonable regulatory costs incurred by the department incident to audits, inspections, administrative activities, adjudications, manifesting, registration, and other regulatory activities associated with waste tires pursuant to this chapter, Chapter 16 (commencing with Section 42800), and Chapter 19 (commencing with Section 42950).
(B) The sufficiency of revenues in the California Tire Recycling Management Fund for the department to
administer, enforce, and promote its regulatory activities regarding waste tires, including the regulatory aspects of the programs established pursuant to this chapter, Chapter 16 (commencing with Section 42800), and Chapter 19 (commencing with Section 42950), plus a prudent reserve.
(C) Whether additional revenue is necessary to preserve the department’s ability to conduct regulatory activities in the following fiscal year.
(D) Whether, at the end of a fiscal year, after making payments pursuant to Sections 42872.1 and 42889, sufficient surplus net fund balance
remains in the California Tire Recycling Management Fund to reduce the California tire regulatory fee.
(4) An adjustment to the California tire regulatory fee shall become effective on January 1 of the year following its adoption.
(5) (A) The department shall adopt regulations to establish the California tire regulatory fee.
(B) The department may adopt regulations to adjust the California tire regulatory fee. These regulations shall be deemed to meet the description in subdivision (g) of Section 11340.9 of the Government Code and may be filed by the department pursuant to Section 11343.8 of the
Government Code.
(6) The department shall identify the specific programs to be funded by the California tire regulatory fee.
(d) The department, or its agent authorized pursuant to Section 42882, shall be reimbursed for its costs of collection, auditing, and making refunds associated with the California Tire Recycling Management Fund, but the amount of that reimbursement shall not exceed 3 percent of the total annual revenue deposited in the fund.
(e) The California tire fee imposed pursuant to subdivision (b) shall be separately stated by the retail seller on the invoice given to the customer at the time of sale. Any other disposal or transaction fee charged by
the retail seller related to the tire purchase shall be identified separately from the California tire fee.
(f) A person or business who knowingly, or with reckless disregard, makes a false statement or representation in a document used to comply with this section is liable for a civil penalty for each violation or, for continuing violations, for each day that the violation continues. Liability under this section may be imposed in a civil action and shall not exceed twenty-five thousand dollars ($25,000) for each violation.
(g) In addition to the civil penalty that may be imposed pursuant to subdivision (f), the department may impose an administrative penalty in an amount not to exceed five thousand dollars ($5,000) for each violation of a separate provision or, for continuing violations,
for each day that the violation continues, on a person who intentionally or negligently violates a permit, rule, regulation, standard, or requirement issued or adopted pursuant to this chapter. The department shall adopt regulations that specify the amount of the administrative penalty and the procedure for imposing an administrative penalty pursuant to this subdivision.
(h) For purposes of this section, “new tire” means a pneumatic or solid tire intended for use with onroad or off-road motor vehicles, motorized equipment, construction equipment, or farm equipment that is sold separately from the motorized equipment, or a new tire sold with a new or used motor vehicle, as defined in Section 42803.5, including the spare tire, construction equipment, or farm equipment. “New tire” does not include retreaded, reused, or recycled tires.
(i) The California tire fee and the California tire regulatory fee shall not be imposed on a tire sold with, or sold separately for use on, any of the following:
(1) A self-propelled wheelchair.
(2) A motorized tricycle or motorized quadricycle, as defined in Section 407 of the Vehicle Code.
(3) A vehicle that is similar to a motorized tricycle or motorized quadricycle and is designed to be operated by a person who, by reason of the person’s physical disability, is otherwise unable to move about as a pedestrian.
(j) This section shall remain in effect only until January 1, 2024, and
as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2024, deletes or extends that date.