SESSION OF 2001


SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2131


As Amended by Senate Committee on
Natural Resources




Brief (1)



HB 2131, as amended, would modify statutes dealing with waste tires. The bill would exclude from the definition of a "waste tire site" an accumulation of tires which has a beneficial use approved by statute or rules and regulations of the Secretary of the Kansas Department of Health and Environment (KDHE). The bill also would allow processing of waste tires by baling for disposal or beneficial use and would reinstate prior law allowing processed waste tires to be deposited in municipal landfills. The bill would require that any person contracting or arranging with any person, permitted by the Secretary of KDHE, for the transportation, or processing or disposal of waste tires to maintain records of the transaction for a period of not less than five years following the date of transfer. The bill sets an excise tax of $.25 on the retail sale of new vehicle tires. Of the amount raised by the tax, $300,000 or 43 percent, whichever is less, could be used for paying compensation and other expenses of personnel to carry out the duties under the waste tire law. The bill also would eliminate the abatement grant program and the enforcement grant program which are contained in current law.



The bill also would modify the section of law that outlines the purposes for which money out of the Waste Tire Management Fund may be used by allowing money to be expended for: action by KDHE before July 1, 2003, to abate waste tires accumulated prior to July 1, 1990, action by KDHE with the consent of the city or county, to pay for up to 75 percent of the cost of the removal and disposal or on-site stabilization of waste tires which have been illegally accumulated after July 1, 1990 or illegally managed when the responsible party is unknown or unwilling or unable to perform the corrective action and action by KDHE to implement measures to minimize nuisances or risks to the public health until the responsible party can fully abate or until a state cleanup occurs. In addition, the bill would allow the money in the fund to be used for the costs of using contractors to provide certain public education; certain technical training; and certain services described below.



The bill would require the Secretary to enter into service contracts with one or more associations of tire retailers to: assist in disseminating information to all tire retailers on state law requirements; establish a point of contact for persons requesting information on solid waste laws and rules and regulations relating to waste tires; assist in planning and implementing conferences, workshops, and other requested training events for persons involved in the generation, transportation, processing, or disposal of waste tires; and assemble and analyze data on waste tire management by tire retailers in Kansas.



Specific authority would be given to the Secretary to enter onto any property or premises where an accumulation of waste tires is located to conduct an inspection and site assessment to determine whether the accumulation creates a nuisance or risk to public health. This would occur only upon written notice. Authorization is given to perform abatement activities, for waste tires accumulated after July 1, 1990, if the responsible party fails to perform the cleanup work, however, no entry is to be made under this circumstance without the property owner's consent except upon notice and hearing. Authority would be given to suspend, revoke, or refuse to issue a permit under the Waste Tire Law if the Secretary determines that the permit holder is operating in violation of the law or is creating or threatens to create a hazard or public nuisance.





Background



This bill was introduced at the request of a spokesperson from KDHE. At the hearing on the bill, a spokesperson from KDHE explained that most of the amendments proposed in the original bill were a result of a public hearing conducted in Salina in May of 2000. The spokesperson offered a number of amendments to the bill during the hearing. Also appearing on the bill was a spokesperson for the Mid-America Tire Dealers Association. The Association also suggested a number of amendments to the bill. A representative of the Kansas Association of Counties also appeared before the Committee and expressed support for the bill and for the continuation of the tire excise tax of $.50 per tire. Written testimony was submitted on behalf of Waste Management. This testimony expressed a number of questions and concerns about the bill. The Chairperson of the Committee formed a subcommittee to address the concerns and amendments expressed at the hearing. The House Committee accepted the amendments developed by the subcommittee.



The Senate Committee on Natural Resources amended the bill, among other things, to:



The fiscal note on the original bill states that the Division of the Budget estimates that maintaining the waste tire excise tax at $.50 per tire would generate total revenues of $14.6 million for the Waste Tire Management Fund in FY 2002. It also states that this estimate is an increase of $730,000 over the Department of Health and Environment's estimated collections included in its budget submission based upon the rate of $0.25 per tire established in current law.



Under the provisions of the bill, as introduced, KDHE estimates it will require additional expenditures of $700,000 and 4.0 additional FTE positions for FY 2002 to implement the bill. The fiscal note also states that the Department indicates that the 2.0 current FTE positions assigned to the program would not be sufficient to carry out the initiatives associated with this bill. The Department estimates the salaries and wages of the 4.0 new FTE positions to total $165,420 for FY 2002. The Department also estimates it will require $79,465 for associated operating expenditures for these new positions. The Department further estimates $250,000 would be provided in clean-up contracts and $100,000 would be provided in public education and technical assistance to Kansas communities. Finally, the Department estimates that it would provide $105,115 in grants for tire enforcement and to encourage waste tire recycling. Any fiscal effect resulting from the passage of HB 2131 would be in addition to amounts included in The FY 2002 Governor's Budget Report.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/fulltext.cgi