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SB24-123

Waste Tire Management Enterprise

Concerning the creation of an enterprise that is exempt from the requirements of section 20 of article X of the state constitution to administer a fee-based waste tire management program, and, in connection therewith, making an appropriation.
Session:
2024 Regular Session
Subjects:
Business & Economic Development
Fiscal Policy & Taxes
Natural Resources & Environment
State Government
Bill Summary

The bill creates the waste tire management enterprise (enterprise). Under current law, when a consumer buys new tires, the retailer charges the consumer a waste tire fee (fee) that is then collected by the department 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 establishes 2 different fees that will be collected and deposited into 3 separate funds. The waste tire enterprise fee (enterprise fee) is collected by the enterprise and the revenues from that fee are deposited into the waste tire management enterprise fund and the end users fund. The waste tire management enterprise fund is established by the bill and used to cover the costs of operating the enterprise. The end users fund is used to fund the end-user rebate program. The enterprise fee amount is set by the enterprise and capped at $2.50 per tire, adjusted for inflation. The department is responsible for collecting the waste tire administration fee (administration fee) and the revenue from that fee is deposited into the waste tire administration fund. Both the enterprise fee and the administration fee are collected from consumers and charged by retailers of new motor vehicle and new trailer tires at the point of sale. The bill shifts the following responsibilities from the department to The enterprise's primary powers and duties are:

  • Collecting the enterprise fee;
  • Managing the waste tire administration, enforcement, market development, and cleanup management enterprise 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 Developing waste tire recycling, beneficial reuse, and management strategies and contracting with public or private entities for services related to the waste tire recycling, beneficial reuse, and management strategies .

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.

The department collects the administration fee, which is used to cover the direct and indirect costs of conducting the regulatory and administrative functions of the department related to the management of waste tires. The administration fee amount is set by the department and is at minimum $0.50 cents per tire, but must not exceed half of the amount of the enterprise fee. The waste tire administration fund is funded by the administration fee and the money in the fund is used by the department for conducting regulatory and administrative functions of the department, such as:

  • Inspecting new motor vehicle tire and new trailer tire retailers;
  • Coordinating with law enforcement, fire departments, and citizens to ensure the enforcement of rules and regulations related to the waste tire management;
  • Reimbursing certain departments that may assist in the department;
  • Inspection of waste tire collection facilities, waste tire processors, and waste tire monofils;
  • Training and providing grants to various entities involved in waste tire management; and
  • Registering and regulating waste tire haulers, waste tire generators, used tire managers, waste tire collection facilities, waste tire processors, mobile processors, waste tire monofills, and end users.

The bill extends the end user rebate program that exists under current law until December 31, 2041. The bill extends the operation of a waste tire monofill until July 1, 2034. The bill establishes a waste tire management grant program that is administered by the enterprise and funded by the enterprise fee. The grant program is available to eligible entities for economic assistance related to the recycling, beneficial reuse, and management of waste tires. Eligible entities may be awarded grants for the purchase of equipment or infrastructure, staffing at waste tire facilities, marketing and communications, policy and research development, and community engagement projects.

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.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)


(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Status

Introduced
Under Consideration

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Bill Text

Sponsors

Sponsor Type Legislators
Prime Sponsor

Sen. C. Hansen, Sen. K. Priola
Rep. M. Froelich, Rep. T. Mauro

Sponsor

Co-sponsor

Sen. S. Jaquez Lewis, Sen. F. Winter

Upcoming Schedule

Apr
25
Thursday

Finance

1:30 pm  |  HCR 0112

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The effective date for bills enacted without a safety clause is August 7, 2024, if the General Assembly adjourns sine die on May 8, 2024, unless otherwise specified. Details