Bill Text: CA AB1981 | 2009-2010 | Regular Session | Amended
Bill Title: Recycling: waste tires: fees.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2010-06-28 - In committee: Set, first hearing. Hearing canceled at the request of author. [AB1981 Detail]
Download: California-2009-AB1981-Amended.html
BILL NUMBER: AB 1981 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 28, 2010
AMENDED IN ASSEMBLY APRIL 27, 2010
AMENDED IN ASSEMBLY APRIL 12, 2010
INTRODUCED BY Assembly Member Hill
FEBRUARY 17, 2010
An act to amend Section 2982 of the Civil Code, and to amend
Sections 42861, 42885, 42886, and 42889 of, and to add Sections
42860.5 and 42885.1 to, the Public Resources Code, relating to
recycling.
LEGISLATIVE COUNSEL'S DIGEST
AB 1981, as amended, Hill. Recycling: waste tires: fees.
(1) The California Tire Recycling Act requires a person who
purchases a new tire to pay a California tire fee and the revenue
generated from the fee is deposited in the California Tire Recycling
Management Fund, for expenditure by the Department of Resources
Recycling and Recovery, upon appropriation by the Legislature, for
programs related to the disposal of waste tires, except that a
specified amount of the fee is designated for programs and projects
that mitigate or remediate air pollution caused by waste tires. The
tire fee is imposed upon, among other things, a new tire sold with a
new or used motor vehicle, including the spare tire.
Existing law authorizes the department to enter into a contract
with the State Board of Equalization to collect the fee pursuant to
the Fee Collection Procedures Law, which provides for criminal
penalties for certain violations of that law.
This bill would exclude, from the tire fee, a tire on a vehicle
that is sold or leased by a new motor vehicle dealer. The bill would
instead require a person who purchases or leases those vehicles to
pay a California vehicle tire fee and would require the retail
vehicle seller, as defined, to collect the California vehicle tire
fee. The retail vehicle seller would be required to remit the fee,
except as specified, to the state for deposit in the California Tire
Recycling Management Fund.
The bill would also make conforming changes with regard to the
vehicle tire fee, including conforming changes to the Automobile
Sales Finance Act. The bill would impose a state-mandated local
program by creating new crimes with regard to the collection of the
California new vehicle tire fee.
The bill would require the State Board of Equalization, in
consultation with the State Air Resources Board and the Department of
Resources Recycling and Recovery, to submit a report to the
Legislature, by January 1, 2012, regarding the fiscal effect of the
imposition of the California vehicle tire fee.
(2) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 2982 of the Civil Code is amended to read:
2982. A conditional sale contract subject to this chapter shall
contain the disclosures required by Regulation Z, whether or not
Regulation Z applies to the transaction. In addition, to the extent
applicable, the contract shall contain the other disclosures and
notices required by, and shall satisfy the requirements and
limitations of, this section. The disclosures required by subdivision
(a) may be itemized or subtotaled to a greater extent than as
required by that subdivision and shall be made together and in the
sequence set forth in that subdivision. All other disclosures and
notices may appear in the contract in any location or sequence and
may be combined or interspersed with other provisions of the
contract.
(a) The contract shall contain the following disclosures, as
applicable, which shall be labeled "itemization of the amount
financed:"
(1) (A) The cash price, exclusive of document preparation fees,
business partnership automation fees, taxes imposed on the sale,
pollution control certification fees, prior credit or lease balance
on property being traded in, the amount charged for a service
contract, the amount charged for a theft deterrent system, the amount
charged for a surface protection product, the amount charged for an
optional debt cancellation agreement, and the amount charged for a
contract cancellation option agreement.
(B) The fee to be retained by the seller for document preparation.
(C) The fee charged by the seller for certifying that the motor
vehicle complies with applicable pollution control requirements.
(D) A charge for a theft deterrent device.
(E) A charge for a surface protection product.
(F) Taxes imposed on the sale.
(G) The amount of any optional business partnership automation fee
to register or transfer the vehicle, which shall be labeled
"Optional DMV Electronic Filing Fee."
(H) The amount charged for a service contract.
(I) The prior credit or lease balance remaining on property being
traded in, as required by paragraph (6). The disclosure required by
this subparagraph shall be labeled "prior credit or lease balance
(see downpayment and trade-in calculation)."
(J) Any charge for an optional debt cancellation agreement.
(K) Any charge for a used vehicle contract cancellation option
agreement.
(L) The total cash price, which is the sum of subparagraphs (A) to
(K), inclusive.
(M) The disclosures described in subparagraphs (D), (E), and (K)
are not required on contracts involving the sale of a motorcycle, as
defined in Section 400 of the Vehicle Code, or on contracts involving
the sale of an off-highway motor vehicle that is subject to
identification under Section 38010 of the Vehicle Code, and the
amounts of those charges, if any, are not required to be reflected in
the total price under subparagraph (L).
(2) Amounts paid to public officials for the following:
(A) Vehicle license fees.
(B) Registration, transfer, and titling fees.
(C) The California tire fee or the California vehicle tire fee
imposed pursuant to Section 42885 or 42885.1, respectively, of the
Public Resources Code.
(3) The aggregate amount of premiums agreed, upon execution of the
contract, to be paid for policies of insurance included in the
contract, excluding the amount of any insurance premium included in
the finance charge.
(4) The amount of the state fee for issuance of a certificate of
compliance, noncompliance, exemption, or waiver pursuant to any
applicable pollution control statute.
(5) A subtotal representing the sum of the foregoing items.
(6) The amount of the buyer's downpayment itemized to show the
following:
(A) The agreed value of the property being traded in.
(B) The prior credit or lease balance, if any, owing on the
property being traded in.
(C) The net agreed value of the property being traded in, which is
the difference between the amounts disclosed in subparagraphs (A)
and (B). If the prior credit or lease balance of the property being
traded in exceeds the agreed value of the property, a negative number
shall be stated.
(D) The amount of any portion of the downpayment to be deferred
until not later than the due date of the second regularly scheduled
installment under the contract and that is not subject to a finance
charge.
(E) The amount of any manufacturer's rebate applied or to be
applied to the downpayment.
(F) The remaining amount paid or to be paid by the buyer as a
downpayment.
(G) The total downpayment. If the sum of subparagraphs (C) to (F),
inclusive, is zero or more, that sum shall be stated as the total
downpayment and no amount shall be stated as the prior credit or
lease balance under subparagraph (I) of paragraph (1). If the sum of
subparagraphs (C) to (F), inclusive, is less than zero, then that
sum, expressed as a positive number, shall be stated as the prior
credit or lease balance under subparagraph (I) of paragraph (1), and
zero shall be stated as the total downpayment. The disclosure
required by this subparagraph shall be labeled "total downpayment"
and shall contain a descriptor indicating that if the total
downpayment is a negative number, a zero shall be disclosed as the
total downpayment and a reference made that the remainder shall be
included in the disclosure required pursuant to subparagraph (I) of
paragraph (1).
(7) The amount of any administrative finance charge, labeled
"prepaid finance charge."
(8) The difference between item (5) and the sum of items (6) and
(7), labeled "amount financed."
(b) No particular terminology is required to disclose the items
set forth in subdivision (a) except as expressly provided in that
subdivision.
(c) If payment of all or a portion of the downpayment is to be
deferred, the deferred payment shall be reflected in the payment
schedule disclosed pursuant to Regulation Z.
(d) If the downpayment includes property being traded in, the
contract shall contain a brief description of that property.
(e) The contract shall contain the names and addresses of all
persons to whom the notice required under Section 2983.2 and
permitted under Sections 2983.5 and 2984 is to be sent.
(f) (1) If the contract includes a finance charge determined on
the precomputed basis, the contract shall identify the method of
computing the unearned portion of the finance charge in the event of
prepayment in full of the buyer's obligation and contain a statement
of the amount or method of computation of any charge that may be
deducted from the amount of any unearned finance charge in computing
the amount that will be credited to the obligation or refunded to the
buyer. The method of computing the unearned portion of the finance
charge shall be sufficiently identified with a reference to the
actuarial method if the computation will be under that method. The
method of computing the unearned portion of the finance charge shall
be sufficiently identified with a reference to the Rule of 78's, the
sum of the digits, or the sum of the periodic time balances method in
all other cases, and those references shall be deemed to be
equivalent for disclosure purposes.
(2) If the contract includes a finance charge that is determined
on the simple-interest basis but provides for a minimum finance
charge in the event of prepayment in full, the contract shall contain
a statement of that fact and the amount of the minimum finance
charge or its method of calculation.
(g) (1) If the contract includes a finance charge that is
determined on the precomputed basis and provides that the unearned
portion of the finance charge to be refunded upon full prepayment of
the contract is to be determined by a method other than actuarial,
the contract shall contain a notice, in at least 10-point boldface
type if the contract is printed, reading as follows: "Notice to
buyer: (1) Do not sign this agreement before you read it or if it
contains any blank spaces to be filled in. (2) You are entitled to a
completely filled-in copy of this agreement. (3) You can prepay the
full amount due under this agreement at any time and obtain a
partial refund of the finance charge if it is $1 or more. Because of
the way the amount of this refund will be figured, the time when you
prepay could increase the ultimate cost of credit under this
agreement. (4) If you default in the performance of your obligations
under this agreement, the vehicle may be repossessed and you may be
subject to suit and liability for the unpaid indebtedness evidenced
by this agreement."
(2) If the contract includes a finance charge that is determined
on the precomputed basis and provides for the actuarial method for
computing the unearned portion of the finance charge upon prepayment
in full, the contract shall contain a notice, in at least 10-point
boldface type if the contract is printed, reading as follows:
"Notice to buyer: (1) Do not sign this agreement before you read it
or if it contains any blank spaces to be filled in. (2) You are
entitled to a completely filled-in copy of this agreement. (3) You
can prepay the full amount due under this agreement at any time and
obtain a partial refund of the finance charge if it is $1 or more.
(4) If you default in the performance of your obligations under this
agreement, the vehicle may be repossessed and you may be subject to
suit and liability for the unpaid indebtedness evidenced by this
agreement."
(3) If the contract includes a finance charge that is determined
on the simple-interest basis, the contract shall contain a notice, in
at least 10-point boldface type if the contract is printed, reading
as follows: "Notice to buyer: (1) Do not sign this agreement before
you read it or if it contains any blank spaces to be filled in. (2)
You are entitled to a completely filled-in copy of this agreement.
(3) You can prepay the full amount due under this agreement at any
time. (4) If you default in the performance of your obligations
under this agreement, the vehicle may be repossessed and you may be
subject to suit and liability for the unpaid indebtedness evidenced
by this agreement."
(h) The contract shall contain a notice in at least 8-point
boldface type, acknowledged by the buyer, that reads as follows:
"If you have a complaint concerning this sale, you should try to
resolve it with the seller.
Complaints concerning unfair or deceptive practices or methods by
the seller may be referred to the city attorney, the district
attorney, or an investigator for the Department of Motor Vehicles, or
any combination thereof.
After this contract is signed, the seller may not change the
financing or payment terms unless you agree in writing to the change.
You do not have to agree to any change, and it is an unfair or
deceptive practice for the seller to make a unilateral change.
-------------------------------
Buyer's Signature''
(i) (1) The contract shall contain an itemization of any insurance
included as part of the amount financed disclosed pursuant to
paragraph (3) of subdivision (a) and of any insurance included as
part of the finance charge. The itemization shall identify the type
of insurance coverage and the premium charged therefor, and, if the
insurance expires before the date of the last scheduled installment
included in the repayment schedule, the term of the insurance shall
be stated.
(2) If any charge for insurance, other than for credit life or
disability, is included in the contract balance and disbursement of
any part thereof is to be made more than one year after the date of
the conditional sale contract, any finance charge on the amount to be
disbursed after one year shall be computed from the month the
disbursement is to be made to the due date of the last installment
under the conditional sale contract.
(j) (1) Except for contracts in which the finance charge or
portion thereof is determined by the simple-interest basis and the
amount financed disclosed pursuant to paragraph (8) of subdivision
(a) is more than two thousand five hundred dollars ($2,500), the
dollar amount of the disclosed finance charge may not exceed the
greater of:
(A) (i) One and one-half percent on so much of the unpaid balance
as does not exceed two hundred twenty-five dollars ($225), 11/6
percent on so much of the unpaid balance in excess of two hundred
twenty-five dollars ($225) as does not exceed nine hundred dollars
($900) and five-sixths of 1 percent on so much of the unpaid balance
in excess of nine hundred dollars ($900) as does not exceed two
thousand five hundred dollars ($2,500).
(ii) One percent of the entire unpaid balance; multiplied in
either case by the number of months (computed on the basis of a full
month for any fractional month period in excess of 15 days) elapsing
between the date of the contract and the due date of the last
installment.
(B) If the finance charge is determined by the precomputed basis,
twenty-five dollars ($25).
(C) If the finance charge or a portion thereof is determined by
the simple-interest basis:
(i) Twenty-five dollars ($25) if the unpaid balance does not
exceed one thousand dollars ($1,000).
(ii) Fifty dollars ($50) if the unpaid balance exceeds one
thousand dollars ($1,000) but does not exceed two thousand dollars
($2,000).
(iii) Seventy-five dollars ($75) if the unpaid balance exceeds two
thousand dollars ($2,000).
(2) The holder of the contract may not charge, collect, or receive
a finance charge that exceeds the disclosed finance charge, except
to the extent (A) caused by the holder's receipt of one or more
payments under a contract that provides for determination of the
finance charge or a portion thereof on the 365-day basis at a time or
times other than as originally scheduled whether or not the parties
enter into an agreement pursuant to Section 2982.3, (B) permitted by
paragraph (2), (3), or (4) of subdivision (c) of Section 226.17 of
Regulation Z, or (C) permitted by subdivisions (a) and (c) of Section
2982.8.
(3) If the finance charge or a portion thereof is determined by
the simple-interest basis and the amount of the unpaid balance
exceeds five thousand dollars ($5,000), the holder of the contract
may, in lieu of its right to a minimum finance charge under
subparagraph (C) of paragraph (1), charge, receive, or collect on the
date of the contract an administrative finance charge not to exceed
seventy-five dollars ($75), provided that the sum of the
administrative finance charge and the portion of the finance charge
determined by the simple-interest basis shall not exceed the maximum
total finance charge permitted by subparagraph (A) of paragraph (1).
Any administrative finance charge that is charged, received, or
collected by a holder shall be deemed a finance charge earned on the
date of the contract.
(4) If a contract provides for unequal or irregular payments, or
payments on other than a monthly basis, the maximum finance charge
shall be at the effective rate provided for in paragraph (1), having
due regard for the schedule of installments.
(k) The contract may provide that for each installment in default
for a period of not less than 10 days the buyer shall pay a
delinquency charge in an amount not to exceed in the aggregate 5
percent of the delinquent installment, which amount may be collected
only once on any installment regardless of the period during which it
remains in default. Payments timely received by the seller under an
extension or deferral agreement may not be subject to a delinquency
charge unless the charge is permitted by Section 2982.3. The contract
may provide for reasonable collection costs and fees in the event of
delinquency.
(l) Notwithstanding any provision of a contract to the contrary,
the buyer may pay at any time before maturity the entire indebtedness
evidenced by the contract without penalty. In the event of
prepayment in full:
(1) If the finance charge was determined on the precomputed basis,
the amount required to prepay the contract shall be the outstanding
contract balance as of that date, provided, however, that the buyer
shall be entitled to a refund credit in the amount of the unearned
portion of the finance charge, except as provided in paragraphs (3)
and (4). The amount of the unearned portion of the finance charge
shall be at least as great a proportion of the finance charge,
including any additional finance charge imposed pursuant to Section
2982.8 or other additional charge imposed because the contract has
been extended, deferred, or refinanced, as the sum of the periodic
monthly time balances payable more than 15 days after the date of
prepayment bears to the sum of all the periodic monthly time balances
under the schedule of installments in the contract or, if the
contract has been extended, deferred, or refinanced, as so extended,
deferred, or refinanced. If the amount of the refund credit is less
than one dollar ($1), no refund credit need be made by the holder.
Any refund credit may be made in cash or credited to the outstanding
obligations of the buyer under the contract.
(2) If the finance charge or a portion thereof was determined on
the simple-interest basis, the amount required to prepay the contract
shall be the outstanding contract balance as of that date, including
any earned finance charges that are unpaid as of that date and, if
applicable, the amount provided in paragraph (3), and provided
further that in cases where a finance charge is determined on the
360-day basis, the payments theretofore received will be assumed to
have been received on their respective due dates regardless of the
actual dates on which the payments were received.
(3) Where the minimum finance charge provided by subparagraph (B)
or subparagraph (C) of paragraph (1) of subdivision (j), if either is
applicable, is greater than the earned finance charge as of the date
of prepayment, the holder shall be additionally entitled to the
difference.
(4) The provisions of this subdivision may not impair the right of
the seller or the seller's assignee to receive delinquency charges
on delinquent installments and reasonable costs and fees as provided
in subdivision (k) or extension or deferral agreement charges as
provided in Section 2982.3.
(5) Notwithstanding any provision of a contract to the contrary,
whenever the indebtedness created by any contract is satisfied prior
to its maturity through surrender of the motor vehicle, repossession
of the motor vehicle, redemption of the motor vehicle after
repossession, or any judgment, the outstanding obligation of the
buyer shall be determined as provided in paragraph (1) or (2).
Notwithstanding, the buyer's outstanding obligation shall be computed
by the holder as of the date the holder recovers the value of the
motor vehicle through disposition thereof or judgment is entered or,
if the holder elects to keep the motor vehicle in satisfaction of the
buyer's indebtedness, as of the date the holder takes possession of
the motor vehicle.
(m) Notwithstanding any other provision of this chapter to the
contrary, any information required to be disclosed in a conditional
sale contract under this chapter may be disclosed in any manner,
method, or terminology required or permitted under Regulation Z, as
in effect at the time that disclosure is made, except that permitted
by paragraph (2) of subdivision (c) of Section 226.18 of Regulation
Z, provided that all of the requirements and limitations set forth in
subdivision (a) of this section are satisfied. This chapter does not
prohibit the disclosure in that contract of additional information
required or permitted under Regulation Z, as in effect at the time
that disclosure is made.
(n) If the seller imposes a fee for document preparation, the
contract shall contain a disclosure that the fee is not a
governmental fee.
(o) A seller may not impose an application fee for a transaction
governed by this chapter.
(p) The seller or holder may charge and collect a fee not to
exceed fifteen dollars ($15) for the return by a depository
institution of a dishonored check, negotiated order of withdrawal, or
share draft issued in connection with the contract, if the contract
so provides or if the contract contains a generalized statement that
the buyer may be liable for collection costs incurred in connection
with the contract.
(q) The contract shall disclose on its face, by printing the word
"new" or "used" within a box outlined in red, that is not smaller
than one-half inch high and one-half inch wide, whether the vehicle
is sold as a new vehicle, as defined in Section 430 of the Vehicle
Code, or as a used vehicle, as defined in Section 665 of the Vehicle
Code.
(r) The contract shall contain a notice with a heading in at least
12-point bold type and the text in at least 10-point bold type,
circumscribed by a line, immediately above the contract signature
line, that reads as follows:
THERE IS NO COOLING-OFF PERIOD UNLESS
YOU
OBTAIN A CONTRACT CANCELLATION
OPTION.
California law does not provide for a
""cooling-off'' or other cancellation period
for vehicle sales. Therefore, you cannot
later cancel this contract simply because you
change your mind, decide the vehicle costs
too much, or wish you had acquired a
different vehicle. After you sign below, you
may only cancel this contract with the
agreement of the seller or for legal cause,
such as
fraud.
However, California law does require a seller
to offer a 2-day contract cancellation option
on used vehicles with a purchase price of
less than $40,000, subject to certain
statutory conditions. This contract
cancellation option requirement does not
apply to the sale of a recreational vehicle,
a motorcycle, or an off-highway motor vehicle
subject to identification under California
law. See the vehicle contract cancellation
option agreement for details.
SEC. 2. Section 42860.5 is added to the Public Resources Code, to
read:
42860.5. For purposes of this chapter, "department" or "board"
means the Department of Resources Recycling and Recovery.
SEC. 3. Section 42861 of the Public Resources Code is amended to
read:
42861. The Legislature finds and declares the following:
(a) The problem posed by used tire storage and disposal requires a
comprehensive, statewide response, including, but not limited to,
reducing landfill disposal of used whole tires, recycling of tires
into secondary uses, source material development and promotion of
secondary markets for used tire byproducts, tire shredding, and
energy recovery.
(b) California is currently faced with an existing used tire
inventory of at least 100 million tires, an amount that grows by over
20 million tires per year. Without a dedication of resources to
address the state's growing tire population, the health and safety of
all Californians will be increasingly at risk.
(c) There are currently no dedicated resources for the recycling
of used tires, or a comprehensive tire shredding program. Therefore,
the levying of a fee on the disposal of used whole tires in the state
is needed to support tire recycling activities.
(d) To mitigate the environmental impacts caused by tires mounted
on new and used vehicles on California roads, and to ease compliance
for new motor vehicle dealers and their customers, collection of a
fee for vehicles sold by new motor vehicle dealers should be assessed
on a per vehicle, rather than a per tire, basis.
(e) Used tires represent a valuable state resource that should be
reclaimed and recycled whenever possible. An abundance of tire
recycling alternatives exist that have been demonstrated to be
environmentally safe. These alternatives need to be promoted in order
to achieve the maximum use of used tires.
(f) Shredding of used tires represents a preferable alternative to
whole tire storage or disposal. Given the rapidly decreasing amount
of landfill space available to local jurisdictions, shredding
represents a positive way of storing tires until a secondary use can
be developed.
SEC. 4. Section 42885 of the Public Resources Code, as amended by
Section 55 of Chapter 77 of the Statutes of 2006, is amended to read:
42885. (a) For purposes of this section, "California tire fee"
means the fee imposed pursuant to this section.
(b) (1) Except as provided in subdivision (i), a person who
purchases a new tire, as defined in subdivision (g), 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) 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 not to exceed 3 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 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.
(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 motorized equipment, or a new tire sold
with a 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 or a new tire
sold with a new or used motor vehicle, as defined in Section 42803.5,
which is sold or leased by a new motor vehicle dealer, as defined in
Section 426 of the Vehicle Code.
(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) The California tire fee shall not be imposed on a tire on a
vehicle that is sold or leased by a new motor vehicle dealer, as
defined in Section 426 of the Vehicle Code.
(j) This section shall remain in effect only until January 1,
2015, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2015, deletes or extends
that date.
SEC. 5. Section 42885 of the Public Resources Code, as added by
Section 13.5 of Chapter 707 of the Statutes of 2004, is amended to
read:
42885. (a) For purposes of this section, "California tire fee"
means the fee imposed pursuant to this section.
(b) (1) Except as provided in subdivision (i), a person who
purchases a new tire, as defined in subdivision (g), shall pay a
California tire fee of seventy-five cents ($0.75) 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 3 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) 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 not to exceed 3 percent of the total annual
revenue deposited in the fund.
(d) The California tire fee imposed pursuant to subdivision (a)
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) Any person or business who knowingly, or with reckless
disregard, makes any false statement or representation in any
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 any person
who intentionally or negligently violates any 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 motorized equipment, or a new tire sold
with a 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 or a new tire
sold with a new or used motor vehicle, as defined in Section 42803.5,
which is sold or leased by a new motor vehicle dealer, as defined in
Section 426 of the Vehicle Code.
(h) The California tire fee may not be imposed on any tire sold
with, or sold separately for use on, any of the following:
(1) Any self-propelled wheelchair.
(2) Any motorized tricycle or motorized quadricycle, as defined in
Section 407 of the Vehicle Code.
(3) Any 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) The California tire fee shall not be imposed on a tire on a
vehicle that is sold or leased by a new motor vehicle dealer, as
defined in Section 426 of the Vehicle Code.
(j) This section shall become operative on January 1, 2015.
SEC. 6. Section 42885.1 is added to the Public Resources Code, to
read:
42885.1. (a) For purposes of this section, the following
definitions shall apply:
(1) "California vehicle tire fee" means the fee imposed pursuant
to this section.
(2) "Retail vehicle seller" means a new motor vehicle dealer, as
defined in Section 426 of the Vehicle Code.
(3) "Vehicle" means a vehicle, as defined in Section 430 of the
Vehicle Code.
(b) (1) Until December 31, 2014, a person who purchases or leases
a vehicle shall pay a California vehicle tire fee of nine
dollars and fifty cents ($9.50) ten dollars and fifty
cents ($10.50) . On and after January 1, 2015, a person who
purchases or leases a vehicle in a retail sale shall pay a California
vehicle tire fee of five dollars ($5) five
dollars and fifty cents ($5.50) .
(2) The retail vehicle seller shall charge the retail vehicle
purchaser or lessee the amount of the California vehicle 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 or lessee.
(3) The retail vehicle seller shall collect the California
vehicle tire fee from the retail vehicle purchaser or lessee at the
time of sale and may retain 1 1/2 percent of the fee as reimbursement
for any costs associated with the collection of the fee. The retail
vehicle seller shall remit the remainder to the state on a quarterly
schedule for deposit in the California Tire Recycling Management Fund
created pursuant to Section 42885.
(c) 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 vehicle tire fee, but
not to exceed 3 percent of the total annual revenue from that fee
that is deposited in the fund.
(d) The California vehicle tire fee imposed pursuant to
subdivision (b) shall be separately stated by the retail vehicle
seller on the conditional sale or lease agreement given to the retail
vehicle purchaser or lessee at the time of sale or lease. Any other
disposal or transaction fee charged by the retail vehicle seller
related to the tire purchase or vehicle lease shall be identified
separately from the California tire fee.
(e) 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.
(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) It is the intent of the Legislature that imposition of the
California vehicle tire fee pursuant to this section result in the
state collecting approximately the same amount of revenue on and
after January 1, 2011, as the amount that would have been collected
on and after that date if the changes made by the act of the 2009-10
Regular Session of the Legislature that adds this section had not
been enacted.
SEC. 7. Section 42886 of the Public Resources Code is amended to
read:
42886. The fees remitted pursuant to Sections 42885 and 42885.1
are due and payable quarterly on or before the 15th day of the month
following each calendar quarter.
SEC. 8. Section 42889 of the Public Resources Code, as amended by
Section 3 of Chapter 333 of the Statutes of 2009, is amended to read:
42889. (a) Commencing January 1, 2005, of the moneys collected
pursuant to Section 42885, an amount equal to seventy-five cents
($0.75) per tire on which the fee is imposed shall be transferred by
the State Board of Equalization to the Air Pollution Control Fund. Of
the moneys collected pursuant to Section 42885.1, an amount equal to
four dollars and nine cents ($4.09)
fifty-two cents ($4.52) per vehicle on which the fee is imposed
shall be transferred by the State Board of Equalization to the Air
Pollution Control Fund. The state 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 or the
applicable district determines that the program or project remediates
air pollution harms created by tires upon which the fee described in
Sections 42885 and 42885.1 is imposed.
(b) The remaining moneys collected pursuant to Sections 42885 and
42885.1 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 and subdivision (c) of Section
42885.1.
(3) To pay the costs associated with operating the tire recycling
program specified in Article 3 (commencing with Section 42870).
(4) 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) 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) To make studies and conduct research directed at promoting and
developing alternatives to the landfill disposal of waste tires.
(7) 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) 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) To pay the costs to create and maintain an emergency reserve,
which shall not exceed one million dollars ($1,000,000).
(10) 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) To fund border region activities specified in paragraph (8)
of subdivision (b) of Section 42885.5.
(c) This section shall remain in effect only until January 1,
2015, and as of that date is repealed, unless a later enacted statute
that is enacted before January 1, 2015, deletes or extends that
date.
SEC. 9. Section 42889 of the Public Resources Code, as amended by
Section 4 of Chapter 333 of the Statutes of 2009, is amended to read:
42889. Funding for the waste tire program 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 and subdivision (c) of Section
42885.1.
(c) To pay the costs associated with operating the tire recycling
program specified in Article 3 (commencing with Section 42870).
(d) 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) 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) To fund border region activities specified in paragraph (8) of
subdivision (b) of Section 42885.5.
(g) This section shall become operative on January 1, 2015.
SEC. 10. On or before January 1, 2012, the State
Board of Equalization, in consultation with the State Air Resources
Board and the Department of Resources Recycling and Recovery, shall
submit a report to the Legislature pursuant to Section 9795 of the
Government Code concerning the fiscal effect of imposing the
California vehicle tire fee pursuant to Section 42885.1 of the Public
Resources Code. The report shall determine whether there has been
any change in revenue collected by the state resulting from the
imposition of the California vehicle tire fee pursuant to Section
42885.1 of the Public Resources Code upon tires on a vehicle sold or
leased by a new motor vehicle dealer, in lieu of the California tire
fee that was imposed on those tires pursuant to Section 42885 of the
Vehicle Code prior to January 1, 2011. The report shall recommend any
needed adjustments to the amount of the California vehicle tire fee
to better align those fee revenues with the amount that would have
been collected under the California tire fee on and after January 1,
2011, if the changes made by the act of the 2009-10 Regular Session
of the Legislature that added this section had not been enacted.
SEC. 10. SEC. 11. No reimbursement
is required by this act pursuant to Section 6 of Article XIII B of
the California Constitution because the only costs that may be
incurred by a local agency or school district will be incurred
because this act creates a new crime or infraction, eliminates a
crime or infraction, or changes the penalty for a crime or
infraction, within the meaning of Section 17556 of the Government
Code, or changes the definition of a crime within the meaning of
Section 6 of Article XIII B of the California Constitution.
