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AB-755 California tire fee: Stormwater Permit Compliance Fund.(2019-2020)

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Date Published: 05/17/2019 04:00 AM
AB755:v98#DOCUMENT

Amended  IN  Assembly  May 16, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 755

Introduced by Assembly Member Holden

February 19, 2019

An act to amend Sections 42885 42882, 42885, and 42889 of, and to add Section 42888.5 to, and to repeal Section 42888 of, the Public Resources Code, relating to tires, and making an appropriation therefor, and declaring the urgency thereof, to take effect immediately. therefor.


LEGISLATIVE COUNSEL'S DIGEST


AB 755, as amended, Holden. California tire fee: Stormwater Permit Compliance Fund.
The California Tire Recycling Act, until January 1, 2024, requires a person who purchases a new tire to pay a California tire fee of $1.75 per tire, for deposit, except for 11/2% retained by retailers and as provided below, in the California Tire Recycling Management Fund for expenditure by the Department of Resources Recycling and Recovery upon appropriation by the Legislature for prescribed purposes related to disposal and use of used tires. Commencing January 1, 2024, existing law reduces the California tire fee to $0.75 per tire and changes the retailers’ share to 3%. Existing law authorizes the department, in carrying out the act, to solicit and use any and all expertise available in, and to contract or cooperate with, other state agencies, as provided. Existing law authorizes the department to contract with the California Department of Tax and Fee Administration to collect the California tire fee. Existing law requires the department, or its authorized agent, to be reimbursed for its costs of collection, auditing, and making refunds associated with the California Tire Recycling Management Fund, in an amount up to 3% of the total annual revenue deposited in the fund.
Existing law, until January 1, 2024, requires that $0.75 per tire on which the California tire fee is imposed be deposited in the Air Pollution Control Fund with these moneys to be available upon appropriation by the Legislature for use by the State Air Resources Board and local air districts to fund programs and projects that mitigate or remediate air pollution caused by tires in the state, as provided.
This bill would require the California Department of Tax and Fee Administration to collect the California tire fee and would repeal the provision authorizing the Department of Resources Recycling and Recovery to solicit and use the expertise of, and contract or cooperate with, other state agencies. The bill would increase the California tire fee by $1.50. The bill would deposit require the California Department of Tax and Fee Administration to transfer the additional moneys in to the Stormwater Permit Compliance Fund, which would be established by the bill, and would make the moneys available to the State Water Resources Control Board Division of Financial Assistance. Board. The bill would continuously appropriate moneys in the fund for competitive grants for projects and programs for municipal storm sewer system permit compliance requirements that would prevent or remediate zinc pollutants pollutants, including zinc, caused by tires in the state and for an annual audit of the fund. Money in the fund would be available upon appropriation for the administrative expenses of the fund, not to exceed 3% 5% of the overall revenue annually deposited in the fund, except as specified. The bill would also make conforming changes.
The bill would revise and recast the provisions governing payments and transfers from the California Tire Recycling Management Fund. The bill would require the California Department of Tax and Fee Administration, instead of the Department of Resources Recycling and Recovery, to be reimbursed for its costs of collection, auditing, and making refunds associated with the California Tire Recycling Management Fund, in an amount up to 2.5% of the total annual revenue deposited in the fund.

This bill would declare that it is to take effect immediately as an urgency statute.

Vote: 2/3   Appropriation: YES   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 42882 of the Public Resources Code is amended to read:
42882.

In carrying out this chapter, the board may solicit and use any and all expertise available in other state agencies, including, but not limited to, the State Board of Equalization, and, where an existing state agency performs functions of a similar nature to the board’s functions, the board may contract with, or cooperate with that agency in carrying out this chapter. If the board contracts with the State Board of Equalization to

42882.
 The California Department of Tax and Fee Administration shall collect the fee imposed in Section 42885, the State Board of Equalization may collect that fee pursuant to the Fee Collection Procedures Law (Part 30 (commencing with Section 55001) of Division 2 of the Revenue and Taxation Code).

SECTION 1.SEC. 2.

 Section 42885 of the Public Resources Code, as amended by Section 31 of Chapter 401 of the Statutes of 2013, is amended to read:

42885.
 (a) For purposes of this section, “California tire fee” means the fee imposed pursuant to this section.
(b) (1) A person who purchases a new tire, as defined in subdivision (g), shall pay a California tire fee of three dollars and twenty-five cents ($3.25) 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) (A) 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.
(B) 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, the Air Pollution Control Fund, and the Stormwater Permit Compliance Fund, established pursuant to Section 42888.5. Of this amount, for each tire subject to the California Tire Fee, seventy-five cents ($0.75) shall be deposited in the Air Pollution Control Fund pursuant to Section 42889, one dollar and fifty cents ($1.50) shall be deposited in the Stormwater Permit Compliance Fund, and the balance shall be deposited in the California Tire Recycling Management Fund. Treasury.
(c) The department, or its agent authorized pursuant to Section 42882, California Department of Tax and Fee Administration shall be reimbursed for its costs of collection, auditing, and making refunds associated with the California Tire Recycling Management Fund, but not to exceed 3 2.5 percent of the total annual revenue deposited in the fund.
(d) 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.
(e) A person or business that 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.
(f) In addition to the civil penalty that may be imposed pursuant to subdivision (e), 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.
(g) For purposes of this section, “new tire” means a pneumatic or solid tire intended for use with on-road or off-road motor vehicles, motorized equipment, construction equipment, or farm equipment that is sold separately from the vehicle or equipment, or a new tire sold with a new or used motor vehicle, as defined in Section 42803.5, including the spare tire, or with construction equipment or farm equipment. “New tire” does not include retreaded, reused, or recycled tires.
(h) The California tire 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.

(i)

This

(i) 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.

SEC. 2.SEC. 3.

 Section 42885 of the Public Resources Code, as amended by Section 32 of Chapter 401 of the Statutes of 2013, is amended to read:

42885.
 (a) For purposes of this section, “California tire fee” means the fee imposed pursuant to this section.
(b) (1) A person who purchases a new tire, as defined in subdivision (g), shall pay a California tire fee of two dollars and twenty-five cents ($2.25) 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) (A) The retail seller shall collect the California tire fee from the retail purchaser at the time of sale and may retain 3 percent of the fee as reimbursement for any costs associated with the collection of the fee.
(B) 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, and the Stormwater Permit Compliance Fund, established pursuant to Section 42888.5. Of this amount, for each tire subject to the California Tire Fee, one dollar and fifty cents ($1.50) shall be deposited in the Stormwater Permit Compliance Fund and the balance shall be deposited in the California Tire Recycling Management Fund. Treasury.
(c) The department, or its agent authorized pursuant to Section 42882, California Department of Tax and Fee Administration shall be reimbursed for its costs of collection, auditing, and making refunds associated with the California Tire Recycling Management Fund, but not to exceed 3 2.5 percent of the total annual revenue deposited in the fund.
(d) 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.
(e) A person or business that 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.
(f) In addition to the civil penalty that may be imposed pursuant to subdivision (e), 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.
(g) For purposes of this section, “new tire” means a pneumatic or solid tire intended for use with on-road or off-road motor vehicles, motorized equipment, construction equipment, or farm equipment that is sold separately from the vehicle or equipment, or a new tire sold with a new or used motor vehicle, as defined in Section 42803.5, including the spare tire, or with construction equipment or farm equipment. “New tire” does not include retreaded, reused, or recycled tires.
(h) The California tire 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.
(i) This section shall become operative on January 1, 2024.

SEC. 4.

 Section 42888 of the Public Resources Code is repealed.
42888.

(a)Except as agreed to by the board, no refund shall be approved by the board after three years from the date the payment was due for which the overpayment was made, or with respect to deficiency or jeopardy determinations, after six months from the date the determinations become final, or after six months from the date of overpayment, whichever period expires later, unless a claim therefor is filed with the board within that period. No credit shall be approved by the board after the expiration of that period, unless a claim for credit is filed with the board within that period or unless the credit relates to a period for which a waiver is given by the board.

(b)A refund may be approved by the board for any period agreed to by the board for good cause if a claim for the referral is filed with the board before the expiration of the period agreed upon.

SEC. 3.SEC. 5.

 Section 42888.5 is added to the Public Resources Code, to read:

42888.5.
 (a) The Stormwater Permit Compliance Fund is hereby established in the State Treasury. Moneys in the Stormwater Permit Compliance Fund shall be available to the State Water Resources Control Board Division of Financial Assistance as follows:
(1) Notwithstanding Section 13340 of the Government Code, moneys in the fund shall be continuously appropriated, without regard to fiscal year, for the following purposes:
(A) Competitive grants to fund projects and programs for municipal separate storm sewer system permit compliance requirements that would prevent or remediate zinc pollutants pollutants, including zinc, caused by tires in the state. Grants that are issued under this subparagraph shall address zinc or prevent water quality impairments and zinc or address total maximum daily loads under the federal Clean Water Act (33 U.S.C. Sec. 1251), and priority 1251). Priority shall be given to applicants that discharge to waters with zinc levels that exceed the established total maximum daily loads. loads and to projects that provide multiple benefits. Grants issued under this subparagraph are authorized for the development, administration, and operation of a program to fund a municipal permittee’s compliance with municipal separate storm sewer system permit requirements and the costs associated with that program.
(B) An annual audit of the Stormwater Permit Compliance Fund on the financial status of the Stormwater Permit Compliance Fund as of June 30. The audit shall be submitted to the State Water Resources Control Board and shall be posted on the State Water Resources Control Board’s Division of Financial Assistance internet website.
(2) Moneys in the fund shall be available upon appropriation by the Legislature for the administrative overhead cost of the Stormwater Permit Compliance Fund, not to exceed 3 5 percent of the total revenue deposited in the Stormwater Permit Compliance Fund annually, or an amount otherwise specified in the annual Budget Act. If moneys for administrative expenses are not timely appropriated, those expenses shall be advanced from the Stormwater Permit Compliance Fund. Expenses advanced pursuant to this paragraph shall be reimbursed in full to the Stormwater Permit Compliance Fund upon enactment of an annual Budget Act that appropriates those moneys.
(b) Except as provided in paragraph (2) of subdivision (a), moneys in the fund shall not be used or borrowed for any other purpose.

SEC. 4.SEC. 6.

 Section 42889 of the Public Resources Code, as amended by Section 152 of Chapter 35 of the Statutes of 2014, is amended to read:

42889.
 (a) Of The moneys collected pursuant to subdivision (b) of Section 42885 that are deposited in the California Tire Recycling Management Fund shall be used for the following purposes:
(1) To pay the administrative overhead cost of this chapter, not to exceed 6 percent of the total revenue deposited in the fund annually, or an amount otherwise specified in the annual Budget Act.
(2) To pay the costs of administration associated with collection, making refunds, and auditing revenues in the fund, not to exceed 2.5 percent of the total revenue deposited in the fund, as provided in subdivision (c) of Section 42885.
(3) Of the moneys collected pursuant to subparagraph (B) of paragraph (3) of subdivision (b) of Section 42885, the amount designated there for deposit in the Air Pollution Control Fund an amount equal to seventy-five cents ($0.75) per tire on which the California tire fee is imposed shall be transferred by the California Department of Tax and Fee Administration to that fund. The state board the Air Pollution Control Fund. The State Air Resources Board shall expend those moneys, or allocate those moneys to the districts for expenditure, to fund programs and projects that mitigate or remediate air pollution caused by tires in the state, to the extent that the state board State Air Resources Board or the applicable district determines that the program or project remediates air pollution harms created by tires upon which the fee described in Section 42885 is imposed.

(b)The moneys remitted pursuant to subparagraph (B) of paragraph (3) of subdivision (b) of Section 42885 that are designated for deposit in the California Tire Recycling Management Fund shall be used to fund the waste tire program, and shall be appropriated to the department in the annual Budget Act in a manner consistent with the five-year plan adopted and updated by the department. These moneys shall be expended for the payment of refunds under this chapter and for the following purposes:

(1)To pay the administrative overhead cost of this chapter, not to exceed 6 percent of the total revenue deposited in the fund annually, or an amount otherwise specified in the annual Budget Act.

(2)To pay the costs of administration associated with collection, making refunds, and auditing revenues in the fund, not to exceed 3 percent of the total revenue deposited in the fund, as provided in subdivision (c) of Section 42885.

(4) Of the moneys collected pursuant to subdivision (b) of Section 42885, an amount equal to one dollar and fifty cents ($1.50) shall be transferred by the California Department of Tax and Fee Administration to the Stormwater Permit Compliance Fund to be used as specified in Section 42888.5.
(5) The remaining moneys collected pursuant to subdivision (b) of Section 42885 that are in the California Tire Recycling Management Fund after payments and transfers pursuant to paragraphs (1) to (4), inclusive, shall be used to fund the waste tire program and shall be appropriated to the department in the annual Budget Act in a manner consistent with the five-year plan adopted and updated by the department. These moneys shall be expended for the following purposes:

(3)

(A) To pay the costs associated with operating the tire recycling program specified in Article 3 (commencing with Section 42870).

(4)

(B) To pay the costs associated with the development and enforcement of regulations relating to the storage of waste tires and used tires. The department shall consider designating a city, county, or city and county as the enforcement authority of regulations relating to the storage of waste tires and used tires, as provided in subdivision (c) of Section 42850, and regulations relating to the hauling of waste and used tires, as provided in subdivision (b) of Section 42963. If the department designates a local entity for that purpose, the department shall provide sufficient, stable, and noncompetitive funding to that entity for that purpose, based on available resources, as provided in the five-year plan adopted and updated as provided in subdivision (a) of Section 42885.5. The department may consider and create, as appropriate, financial incentives for citizens who report the illegal hauling or disposal of waste tires as a means of enhancing local and statewide waste tire and used tire enforcement programs.

(5)

(C) To pay the costs of cleanup, abatement, removal, or other remedial action related to waste tire stockpiles throughout the state, including all approved costs incurred by other public agencies involved in these activities by contract with the department. Not less than six million five hundred thousand dollars ($6,500,000) shall be expended by the department during each of the following fiscal years for this purpose: 2001–02 to 2006–07, inclusive.

(6)

(D) To make studies and conduct research directed at promoting and developing alternatives to the landfill disposal of waste tires.

(7)

(E) To assist in developing markets and new technologies for used tires and waste tires. The department’s expenditure of funds for purposes of this subdivision shall reflect the priorities for waste management practices specified in subdivision (a) of Section 40051.

(8)

(F) To pay the costs associated with implementing and operating a waste tire and used tire hauler program and manifest system pursuant to Chapter 19 (commencing with Section 42950).

(9)

(G) To pay the costs to create and maintain an emergency reserve, which shall not exceed one million dollars ($1,000,000).

(10)

(H) To pay the costs of cleanup, abatement, or other remedial action related to the disposal of waste tires in implementing and operating the Farm and Ranch Solid Waste Cleanup and Abatement Grant Program established pursuant to Chapter 2.5 (commencing with Section 48100) of Part 7.

(11)

(I) To fund border region activities specified in paragraph (8) of subdivision (b) of Section 42885.5.

(12)

(J) For expenditure pursuant to paragraph (3) of subdivision (a) of, and paragraph (3) of subdivision (b) of, Section 17001.

(c)

(b) 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.

SEC. 5.SEC. 7.

 Section 42889 of the Public Resources Code, as amended by Section 153 of Chapter 35 of the Statutes of 2014, is amended to read:
42889.

The moneys remitted

42889.
 (a) The moneys collected pursuant to subdivision (b) of Section 42885 that are deposited in the California Tire Recycling Management Fund shall be used for the following purposes:
(1) To pay the administrative overhead cost of this chapter, not to exceed 5 percent of the total revenue deposited in the fund annually, or an amount otherwise specified in the annual Budget Act.
(2) To pay the costs of administration associated with collection, making refunds, and auditing revenues in the fund, not to exceed 3 percent of the total revenue deposited in the fund, as provided in subdivision (c) of Section 42885.
(3) Of the moneys collected pursuant to subdivision (b) of Section 42885, an amount equal to one dollar and fifty cents ($1.50) shall be transferred by the California Department of Tax and Fee Administration to the Stormwater Permit Compliance Fund to be used as specified in Section 42888.5.
(4) The remaining moneys collected pursuant to subparagraph (B) of paragraph (3) of subdivision (b) of Section 42885 that are not for deposit in the Stormwater Permit Compliance Fund after payments and transfers pursuant to paragraphs (1) to (3), inclusive, shall be used to fund the waste tire program and shall be appropriated to the department in the annual Budget Act. The moneys in the fund shall be expended for the payment of refunds under this chapter and for the following purposes:

(a)To pay the administrative overhead cost of this chapter, not to exceed 5 percent of the total revenue deposited in the fund annually, or an amount otherwise specified in the annual Budget Act.

(b)To pay the costs of administration associated with collection, making refunds, and auditing revenues in the fund, not to exceed 3 percent of the total revenue deposited in the fund, as provided in subdivision (c) of Section 42885.

(c)

(A) To pay the costs associated with operating the tire recycling program specified in Article 3 (commencing with Section 42870).

(d)

(B) To pay the costs associated with the development and enforcement of regulations relating to the storage of waste tires and used tires. The department shall consider designating a city, county, or city and county as the enforcement authority of regulations relating to the storage of waste tires and used tires, as provided in subdivision (c) of Section 42850, and regulations relating to the hauling of waste and used tires, as provided in subdivision (b) of Section 42963. If the department designates a local entity for that purpose, the department shall provide sufficient, stable, and noncompetitive funding to that entity for that purpose, based on available resources, as provided in the five-year plan adopted and updated as provided in subdivision (a) of Section 42885.5. The department may consider and create, as appropriate, financial incentives for citizens who report the illegal hauling or disposal of waste tires as a means of enhancing local and statewide waste tire and used tire enforcement programs.

(e)

(C) To pay the costs of cleanup, abatement, removal, or other remedial action related to waste tire stockpiles throughout the state, including all approved costs incurred by other public agencies involved in these activities by contract with the department. Not less than six million five hundred thousand dollars ($6,500,000) shall be expended by the department during each of the following fiscal years for this purpose: 2001–02 to 2006–07, inclusive.

(f)

(D) To fund border region activities specified in paragraph (8) of subdivision (b) of Section 42885.5.

(g)

(E) For expenditure pursuant to paragraph (3) of subdivision (a) of, and paragraph (3) of subdivision (b) of, Section 17001.

(h)

(b) This section shall become operative on January 1, 2024.

SEC. 6.

This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:

To help grant recipients achieve municipal separate storm sewer system permit compliance requirements that would prevent or remediate zinc pollutants caused by tires in the state at the earliest possible time, it is necessary that this act take effect immediately.