PRINTER'S NO. 203

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 186 Session of 1993


        INTRODUCED BY MELIO, JAROLIN, STEELMAN, KENNEY, VAN HORNE,
           CAWLEY, LUCYK, TRELLO, GIGLIOTTI, McGEEHAN, DALEY, TANGRETTI
           AND BELFANTI, FEBRUARY 3, 1993

        REFERRED TO COMMITTEE ON RULES, FEBRUARY 3, 1993

                                     AN ACT

     1  Requiring the Department of Environmental Resources to conduct a
     2     waste tire recycling and reuse study; and imposing a
     3     surcharge.

     4     The General Assembly of the Commonwealth of Pennsylvania
     5  hereby enacts as follows:
     6  Section 1.  Short title.
     7     This act shall be known and may be cited as the Waste Tire
     8  Recycling and Reuse Investigation Act.
     9  Section 2.  Legislative findings and declaration of policy.
    10     The General Assembly finds and declares as follows:
    11         (1)  This Commonwealth accumulates approximately
    12     12,000,000 waste tires each year. Many of these tires are
    13     stockpiled or dumped illegally due to the expense and
    14     difficulty associated with proper disposal.
    15         (2)  Waste tires are incompressible and consume scarce
    16     and valuable space in landfills.
    17         (3)  Tire piles pose many environmental and health
    18     hazards due to their susceptibility to fires, which result in

     1     noxious emissions, and their service as a breeding site for
     2     mosquitoes, which can carry several diseases.
     3         (4)  The chemical composition of tires makes them capable
     4     of recycling and reuse as a fuel source, as an additive to
     5     asphalt, etc.
     6         (5)  To promote the health and welfare of its citizens,
     7     to protect the environment and to explore economic
     8     opportunities, the Commonwealth should explore the methods of
     9     recycling and reuse of waste tires and the markets for
    10     recycled rubber.
    11  Section 3.  Definitions.
    12     The following words and phrases when used in this act shall
    13  have the meanings given to them in this section unless the
    14  context clearly indicates otherwise:
    15     "Department."  The Department of Environmental Resources of
    16  the Commonwealth.
    17     "New vehicle tire."  An originally manufactured tire for use
    18  on a vehicle. The term does not include any remanufactured,
    19  recapped, retreaded or otherwise restored tire.
    20     "Purchase price of a new tire."  The purchase price of a new
    21  vehicle tire that shall be subject to the surcharge in section 5
    22  shall not include any other taxes on new vehicle tires.
    23     "Vehicle."  Every device in, upon or by which any person or
    24  property is or may be transported or drawn upon a highway,
    25  except devices used exclusively upon rails or tracks. The term
    26  does not include a pedalcycle.
    27     "Waste tire."  A tire no longer suitable for its intended
    28  purpose because of wear, damage or defect.
    29  Section 4.  Study by Department of Environmental Resources.
    30     (a)  Waste tire recycling and reuse study.--Within 18 months
    19930H0186B0203                  - 2 -

     1  of the effective date of this act, the department shall submit
     2  to the Governor and the General Assembly a report which shall
     3  include, but not be limited to, the following information:
     4         (1)  The volume of waste tires in this Commonwealth,
     5     including the geographic distribution and the location and
     6     size of waste tire storage, disposal, collection and
     7     processing sites.
     8         (2)  Assessment of current technology for recycling and
     9     reuse of waste tires, including deficiencies in existing
    10     technology.
    11         (3)  Prioritization of methods of recycling and reuse of
    12     waste tires.
    13         (4)  Current and future market projections for the use of
    14     recycled rubber products.
    15         (5)  Methods of encouraging the demand for and use of
    16     recycled rubber products.
    17         (6)  Recommendations regarding the most appropriate
    18     methods of recycling and reuse of waste tires, markets for
    19     recycled rubber, incentives to encourage recycling and reuse
    20     of waste tires and use of recycled rubber, and the need for
    21     legislation addressing this issue.
    22         (7)  Recommendation regarding the continuance or
    23     discontinuance of the surcharge on new vehicle tires
    24     established under section 5(a).
    25     (b)  Updating study.--Within five years after completion of
    26  the waste tire recycling and reuse study required under
    27  subsection (a), the department shall submit to the Governor and
    28  the General Assembly an updated study, taking into account
    29  information developed since completion of the initial study.
    30     (c)  Distribution of study.--The department shall promptly
    19930H0186B0203                  - 3 -

     1  make available to the Department of Transportation,
     2  municipalities and other interested persons the results of the
     3  study required by this section.
     4  Section 5.  Funding for waste tire recycling and reuse study.
     5     (a)  Surcharge on the purchase price of new vehicle tires.--A
     6  surcharge of $1.00 shall be placed on the purchase price of each
     7  new vehicle tire sold in this Commonwealth. This surcharge shall
     8  not apply to new vehicle tires sold by wholesalers to retailers
     9  for resale or to vehicle manufacturers.
    10     (b)  Collection.--The surcharge established in subsection (a)
    11  shall be collected by the seller. The seller shall remit, on a
    12  quarterly basis, 99% of the surcharge collected to the
    13  Department of Revenue and may retain 1% for costs of collection
    14  if the report is filed in a timely manner. The Department of
    15  Revenue shall deposit the money collected in the General Fund of
    16  the State Treasury. This money shall be held in trust solely for
    17  the purposes of this act and shall be earmarked for the use of,
    18  and annually appropriated to, the department for the
    19  disbursement solely for that purpose. Moneys from the
    20  department's appropriations from the preceding fiscal year shall
    21  be used for the purposes of this act in the interim between
    22  collection of the surcharge and appropriation to the department.
    23     (c)  Use of proceeds of surcharge.--The proceeds of the
    24  surcharge which are appropriated to the department shall be used
    25  for the purpose of defraying the cost of conducting the waste
    26  tire recycling and reuse study, for research and demonstration
    27  projects relating to the feasibility of technologies for the
    28  recycling and reuse of waste tires, for programs to promote tire
    29  recycling and reuse in this Commonwealth and for any other
    30  purpose consistent with this act.
    19930H0186B0203                  - 4 -

     1     (d)  Penalty for failure to remit or collect surcharge.--
     2  Failure to remit surcharges collected in a timely manner shall
     3  cause the surcharges to become delinquent, and the retailer,
     4  wholesaler or vehicle dealer shall forfeit his claim to the
     5  discount authorized in subsection (b) and shall remit 100% of
     6  the surcharges due plus a penalty of $1.00 per tire for each
     7  tire for which a surcharge is due. Failure to collect the
     8  surcharge required by subsection (a) shall subject the retailer,
     9  wholesaler or vehicle dealer to a penalty of $2.00 per tire for
    10  each tire for which the surcharge has not been collected. The
    11  Department of Revenue may promulgate rules and regulations as
    12  may be necessary to carry out the purposes of this subsection.
    13  Section 6.  Effective date.
    14     This act shall take effect immediately.











    L14L27SFG/19930H0186B0203        - 5 -