SB-0941, As Passed House, December 18, 2014

SUBSTITUTE FOR

SENATE BILL NO. 941

A bill to amend 1994 PA 451, entitled

"Natural resources and environmental protection act,"

by amending sections 16901, 16902, 16903, 16903b, 16903c, 16904,

16905, 16906, 16908, 16909, 16909a, and 16911 (MCL 324.16901,

324.16902, 324.16903, 324.16903b, 324.16903c, 324.16904, 324.16905,

324.16906, 324.16908, 324.16909, 324.16909a, and 324.16911),

sections 16901 and 16909 as amended by 2006 PA 520, section 16902

as amended by 2006 PA 521, section 16903 as amended by 2006 PA 522,

section 16903b as amended by 2006 PA 523, section 16903c as added

by 2002 PA 496, sections 16904 and 16905 as amended by 2006 PA 527,

section 16906 as amended by 2006 PA 529, section 16908 as amended

by 2006 PA 524, section 16909a as added by 2006 PA 530, and section

16911 as added by 2006 PA 525, and by adding sections 16904b and

16908c.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 16901. (1) As used in this part:

(a) "Abandoned scrap tires" means an accumulation of scrap

tires on property where the property owner is not responsible in

whole or in part for the accumulation of the scrap tires. For the

purposes of this subdivision, an owner who purchased or willingly

took possession of an existing scrap tire collection site shall be

considered by the department to be responsible in whole or in part

for the accumulation of the scrap tires.

(b) "Automotive recycler" means that term as defined in

section 2a of the Michigan vehicle code, 1949 PA 300, MCL 257.2a.

authorized to transact business in this state, a certificate of

deposit, a cash bond, or an irrevocable letter of credit, in favor

of the department.

(d) "Collection site" means, subject to subdivision (e), a

site ~~, other than a disposal area licensed under part 115, a~~

~~racecourse, or a feed storage location,~~ consisting of a parcel or

adjacent parcels of real property where any of the following are

accumulated:

(i) 500 or more scrap tires. This subparagraph does not apply

if that property is owned or leased by and associated with the

operations of a retailer or automotive recycler or a commercial

contractor as described in subparagraph (iv).

(ii) 1,500 or more scrap tires if that property is owned or

leased by and associated with the operations of a retailer ~~. This~~

~~subparagraph does not apply if the site is owned or leased by and~~

~~associated with the operations of~~ that is not also an automotive

recycler.

(iii) 2,500 or more scrap tires if that property is owned or

leased by and associated with the operations of an automotive

recycler.

(iv) More than 150 cubic yards of tire chips if that property

is owned or leased by and associated with the operations of a

commercial contractor that is authorized to use the tire chips as

an aggregate replacement in a manner approved by a designation of

inertness for scrap tires or is otherwise authorized for such use

by the department under part 115.

(e) "Collection site" does not include a disposal area

licensed under part 115, a community cleanup site, a racecourse, or

a feed storage location.

(f) ~~(e)~~ "Commodity" means crumb rubber, tire chips, a ring or

slab cut from a tire for use as a weight, or a product die-cut or

punched from a tire, or any other product that, as determined by

the department based on the product's production cost and value, is

not likely to result in an accumulation, at the site of production

or use, that poses a threat to public health or the environment. A

product is not a commodity unless it meets published national

standards or specifications that the department determines are

relevant to accomplishing the purposes of this part.

(g) ~~(f)~~ "Commodity storage area" means 1 or more locations

within a collection site where a commodity is stored.

(h) "Community cleanup site" means a site owned by a local

unit of government or nonprofit organization that has received a

scrap tire cleanup grant under section 16908(2)(c) and uses this

site for the purpose of collecting scrap tires from residents as

part of a community cleanup day or resident drop off.

(i) ~~(g)~~ "Crumb rubber" means rubber material derived from

tires that is less than 1/8 inch by 1/8 inch in size and is free of

steel and fiber.

(j) ~~(h)~~ "Department" means the department of environmental

quality.

(k) ~~(i)~~ "End-user" means any of the following:

(i) A person who possesses a permit to burn tires under part

55.

(ii) The owner or operator of a landfill that is authorized

under the landfill's operating license to use scrap tires.

(iii) A person who uses a commodity to make a product that is

sold in the market.

(iv) A person who is authorized by this part to accumulate

scrap tires, who acquires scrap tires, and who converts scrap tires

into a product that is sold in the market or reused in a manner

authorized by this part.

(l) ~~(j)~~ "Farm" means that term as defined in section 2 of the

Michigan right to farm act, 1981 PA 93, MCL 286.472.

(m) ~~(k)~~ "Farm operation" means that term as defined in section

2 of the Michigan right to farm act, 1981 PA 93, MCL 286.472.

(n) (l) "Feed storage location" means a location on ~~1 or more~~

~~parcels of adjacent~~ a parcel or adjacent parcels of real property

containing a farm operation where not more than 3,000 scrap tires

are used to secure stored feed.

(o) ~~(m)~~ "Fund" means the scrap tire regulatory fund created in

section 16908.

(p) ~~(n)~~ "Landfill" means a landfill as defined in section

11504 that is licensed under part 115.

(q) "Law enforcement officer" means any law enforcement

officer who is trained and certified pursuant to the commission on

law enforcement standards act, 1965 PA 203, MCL 28.601 to 28.616,

or an officer appointed by the director of the department of state

police pursuant to section 6d of 1935 PA 59, MCL 28.6d.

(r) ~~(o)~~ "Outdoor" or "outdoors" means in a place other than a

building or covered vehicle.

(s) ~~(p)~~ "Portable shredding operation" means a person who

operates scrap tire shredding equipment ~~, which~~ that produces a

commodity or tire shreds ~~, if the shredding equipment~~ and that can

be moved from site to site.

(t) ~~(q)~~ "Racecourse" means a commercially operated track for

go-carts, ~~vehicles,~~ off-road recreational vehicles, or motorcycles,

or other vehicles that uses ~~not more than 3,000~~ scrap tires ~~for~~ as

bumpers along the track for safety purposes and that meets 1 or

more of the following requirements:

(i) Uses not more than 3,000 scrap tires for bumpers.

(ii) Is operated on a temporary basis and, between races,

stores the scrap tires at a collection site bonded under section

16903 and registered under section 16904.

(u) ~~(r)~~ "Retailer" means a person who sells or offers for sale

new, retreaded, or remanufactured tires to consumers in this state.

(v) ~~(s)~~ "Retreader" means a person who retreads, recases, or

recaps tire casings for reuse.

(w) ~~(t)~~ "Scrap tire" means a tire that is no longer being used

for its original intended purpose including, but not limited to, a

used tire, a reusable tire casing, or portions of a tire. Scrap

tire does not include a vehicle support stand.

(x) ~~(u)~~ "Scrap tire hauler" means a person who transports more

than 7 10 scrap tires at once in a vehicle on a public road or

street. Scrap tire hauler does not include any of the following:

(i) A person, other than a commercial business, who is

~~transporting his or her~~ transports that person's own tires to a

location authorized in section 16902(1).

(ii) A member of a nonprofit service organization who is

participating in a community service project and is transporting

scrap tires to a location authorized in section 16902(1).

(iii) The owner of a farm who is transporting only scrap tires

that originated from his or her farm operation, to a location

authorized in section 16902(1), or that are intended for use in a

feed storage location.

(iv) A solid waste hauler that is transporting solid waste to a

disposal area licensed under part 115.

(v) A person who is transporting only a commodity.

(vi) A retreader who is transporting scrap tires for the

purpose of retreading, recasing, or recapping and who has the

documentation required in section 16906(5).

(y) ~~(v)~~ "Scrap tire processor" means either of the following:

(i) A person who is authorized by this part to accumulate scrap

tires and is engaged in the business of buying or otherwise

acquiring scrap tires and reducing their volume by shredding or

otherwise facilitating recycling or resource recovery techniques

for scrap tires.

(ii) A portable shredding operation.

(z) ~~(w)~~ "Solid waste hauler" means a solid waste hauler as

defined in part 115 who transports less than 25% by weight or

volume of scrap tires along with other solid waste in any truckload

to a disposal area licensed under part 115.

(aa) "Storage requirements" means the requirements of section

16903(1) and, if applicable, (2).

(bb) ~~(x)~~ "Tire" means a continuous solid or pneumatic rubber

covering encircling the wheel of a tractor or other farm machinery

or of a vehicle.

(cc) ~~(y)~~ "Tire chip" means a portion of a tire that is any of

the following:

(i) Not more than 2 inches by 2 inches in size and meets

requirements for size, metal content, and cleanliness as specified

in an executed contract for delivery of the material by the scrap

tire processor.

(ii) Not more than 3/8 inch by 3/8 inch in size and

sufficiently free from steel to be used in the construction and

modification of sports surfaces such as golf course turf, athletic

field turf, athletic tracks, hiking surfaces, livestock show arena

surfaces, and playgrounds.

(iii) To be used in a drain field approved under a district or

county sanitary code.

(iv) To be used as ground cover or mulch, if, in aggregate, 95%

of the material is equal to or less than 3/4 inch in size in any

dimension and the material contains less than 1% by weight or

volume of steel and fiber.

(v) Approved by the department for use at a landfill as daily

cover or a leachate collection system protective layer or for

access road construction within a lined cell.

(dd) ~~(z)~~ "Tire shred" means a portion of a tire that is not a

commodity.

(ee) ~~(aa)~~ "Tire storage area" means a location within a

collection site where tires are accumulated.

(ff) ~~(bb)~~ "Vehicle" means a device in, upon, or by which a

person or property is or may be transported or drawn upon a

highway. Vehicle does not include a device that is exclusively

moved by human power or used exclusively upon stationary rails or

tracks or a mobile home as defined in section 2 of the mobile home

commission act, 1987 PA 96, MCL 125.2302.

(gg) ~~(cc)~~ "Vehicle support stand" means equipment used to

support a stationary vehicle consisting of an inflated tire and

wheel that is attached to another wheel.

(2) A reference in this part to a number of scrap tires means

either of the following, or an equivalent combination thereof:

(a) That number of whole tires or reusable tire casings.

(b) A quantity of a commodity or tire shreds equivalent in

weight to that number of whole tires.

Sec. 16902. (1) A person shall deliver a scrap tire only to,

and only with the consent of the owner or operator of, 1 of the

following that is in compliance with this part:

(a) A collection site registered under section 16904.

(b) A location that has legally accumulated scrap tires below

the regulatory threshold for qualifying as a collection site as

specified in section 16901(d).

(d) An end-user.

(e) A scrap tire processor.

(f) A ~~tire~~ retailer.

(2) A person shall not by contract, agreement, or otherwise

arrange for the removal of scrap tires except with 1 of the

following:

(a) A scrap tire hauler ~~who~~ that is registered pursuant to

section ~~16905(1) and who~~ 16905 and that by contract, agreement, or

otherwise is obligated to deliver the scrap tires to the

destination as identified under section 16905(3)(c).

(b) A If the scrap tires are a commodity, a person hauling

only a commodity.

only tire casings.

(d) A solid waste hauler.

(3) Subsection (2) does not do any of the following:

(a) Prohibit a person from transporting his or her scrap tires

to a site authorized by subsection (1).

(b) Prohibit a member of a nonprofit service organization who

is participating in a community service project from transporting

scrap tires to a site authorized by subsection (1).

that originated from his or her farm operation to a ~~location~~ site

authorized by subsection (1).

(d) Prohibit a solid waste hauler from transporting solid

waste to a disposal area licensed under part 115.

(4) The driver of a vehicle used to transport scrap tires is

presumed to be responsible for any scrap tires transported,

discarded, or disposed of from the vehicle in violation of this

section.

(5) In a proceeding for a violation of this section committed

using a vehicle, it is presumed that the registered owner of the

vehicle at the time of the violation or, if the registered owner is

not an individual, the registered owner's agent was the driver of

the vehicle at the time of the violation. However, if the vehicle

was leased at the time of the violation, it is presumed that the

lessee or, if the lessee is not an individual, the lessee's agent

was the driver of the vehicle at the time of the violation.

Sec. 16903. (1) A person who owns or operates a collection

site where ~~less~~ fewer than 2,500 scrap tires are accumulated

outdoors shall comply with all of the following:

(a) Scrap tires shall be stored in the tire storage area

identified on the scrap tire collection site registration

application map and approved by the department.

(b) Only scrap tires shall be accumulated in the tire storage

area.

accumulated in piles no greater than 15 feet in height with

horizontal dimensions no greater than 200 by 40 feet.

(d) Subject to subdivision (f), the scrap tires shall not be

within 20 feet of the property line or within 60 feet of a building

or structure.

(e) Subject to subdivision (f), there shall be a minimum

separation of 30 feet between scrap tire piles. The open space

between the piles shall at all times be free of rubbish, equipment,

and other materials.

(f) Scrap tire piles shall be accessible to fire fighting

equipment. If the requirement of this subdivision is met, the local

fire department that serves the jurisdiction in which the

collection site is located may grant a variance from the

requirements of ~~subdivisions~~ subdivision (c), (d), ~~and~~ or (e). A

variance under this subsection shall be in writing.

(g) Scrap tires shall be isolated from other stored materials

that may create hazardous products if there is a fire, including,

but not limited to, lead acid batteries, fuel tanks, solvent

barrels, and pesticide containers.

(h) Except for scrap tires that are a commodity used to create

a storage pad for, or a roadway for access to, other scrap tires

that are also a commodity, scrap tires shall not be placed in the

open spaces between tire piles or used to construct on-site roads.

(i) The owner or operator of the collection site shall allow

the local fire department that serves the jurisdiction in which the

collection site is located to inspect the collection site at any

reasonable time.

(j) All persons employed to work at the collection site shall

be trained in emergency response operations. The owner or operator

of the collection site shall maintain training records and shall

make these records available to the local fire department that

serves the jurisdiction in which the collection site is located.

(2) A person who owns or operates a collection site where at

least 2,500 but ~~less~~ fewer than 100,000 scrap tires are accumulated

outdoors shall comply with all of the following:

(a) All of the requirements of subsection (1).

(b) The tire storage area shall be completely enclosed with a

fence that is at least 6 feet tall with lockable gates and that is

designed to prevent easy access.

completely enclose the tire storage area except to allow for

necessary ingress and egress from roadways and buildings.

(d) The collection site shall contain sufficient drainage so

that water does not pool or collect on the property.

(e) The approach road to the tire storage area and on-site

access roads to the tire storage area shall be of all-weather

construction and maintained in good condition and free of debris

and equipment so that it is passable at all times for fire fighting

and other emergency vehicles. If the local fire department for the

jurisdiction where the collection site is located submits to the

department a written determination that the on-site access roads do

not ensure that the site is accessible to emergency vehicles at all

times during the year, the department of environmental quality

shall consider the on-site access roads to be in violation of this

requirement.

(f) Tire storage areas shall be mowed regularly or otherwise

kept free of weeds, vegetation, and other growth at all times.

(g) An emergency procedures plan shall be prepared and

displayed at the collection site. The plan shall include telephone

numbers of the local fire and police departments. The plan shall be

reviewed by the local fire department prior to being posted.

(h) Scrap tires shall not be accumulated in excess of 10,000

cubic yards of scrap tires per acre.

(3) A person who owns or operates a collection site where

100,000 or more scrap tires are accumulated outdoors shall comply

with all of the requirements of subsections (1) and (2) and ~~that~~

~~person~~ shall operate as a scrap tire processor.

(4) Except as otherwise provided in this subsection,

subsection ~~(5)~~ (6), and section 16903b, a person who owns a

collection site shall maintain a bond in favor of the department.

If the collection site registration application under section 16904

includes a written agreement between the owner and the operator of

the collection site that requires the operator to maintain the bond

and the department approves that requirement, then the operator

shall maintain the bond. The bond shall be on a form approved by

the department. If the operator is required to maintain the bond

under this subsection but fails to do so, both the owner and

operator are responsible for a violation of this subsection. The

amount of the bond shall be not less than the sum of $25,000.00 per

quarter acre, or fraction thereof, of outdoor tire storage area,

and $2.00 per square foot of tire storage area in a building.

However, for collection sites with fewer than 2,500 tires, the bond

shall not exceed $2,500.00.

(5) A person who elects to use a certificate of deposit as a

bond under subsection (4) shall receive any accrued interest on

that certificate of deposit upon release of the bond by the

department. A If a person ~~who~~ elects to post cash as a bond, ~~shall~~

~~accrue~~ interest shall accrue on that bond quarterly at the annual

rate of 6%, ~~to be accrued quarterly,~~ except that the interest rate

payable to ~~an applicant~~ the person who maintained the bond shall

not exceed the rate of interest accrued on the state common cash

fund for the quarter in which an accrual is determined. Interest

shall be paid to the ~~applicant~~ person who maintained the bond upon

release of the bond by the department. Any interest greater than 6%

shall be deposited into the fund. ~~The department may utilize a bond~~

~~required under this subsection for removing scrap tires from a~~

~~collection site, for other costs of cleanup at the collection site,~~

~~and for costs of fire suppression and costs associated with~~

~~responding to a fire or an emergency at a collection site, if there~~

~~is an emergency at the collection site, if the collection site~~

~~owner becomes insolvent, or if the owner or operator of the~~

~~collection site fails to comply with the requirements of this~~

~~section and does not cause the removal of the tires at the~~

~~direction of a court of competent jurisdiction.~~

(6) ~~(5)~~ A bond is not required under subsection (4) for a

commodity storage area that meets all of the following

requirements:

(a) The commodity is stored in accordance with the

requirements of subsection (1).

(b) Not less than 75% of the commodity, by weight or volume,

that is stored at the collection site each calendar year is removed

from the collection site to a market during that year, and the

collection site owner or operator certifies compliance with this

~~subparagraph~~ subdivision on a form approved by the department.

of the commodity are not larger than a total of 1 acre and those

areas are indicated on a survey by a registered professional

engineer submitted to the department as part of the collection site

registration.

(7) Subject to subsections (8) and (9), the department may

utilize a bond required under subsection (4) for the costs of any

of the following:

(a) Removing scrap tires from the collection site.

(b) Bringing the collection site into compliance with this

part.

(d) Fire suppression or other costs associated with responding

to a fire or other emergency at a collection site, including

reimbursement to any local unit of government that incurred those

costs.

(8) The department may draw on the bond required under

subsection (4) if any of the following apply:

(a) There is a fire or other emergency at the collection site.

(b) The collection site owner becomes insolvent.

part and does not cause the removal of the scrap tires as ordered

by the department or a court of competent jurisdiction.

(d) The owner or operator of the collection site fails to

extend or renew the bond under its terms or establish alternate

financial assurance under subsection (4) at least 30 days before

the expiration date or cancellation date of the bond, unless the

owner or operator is exempt from the requirement to obtain a bond

under section 16903b.

(9) At least 7 days before the department draws on the bond

under subsection (8)(b) or (c), the department shall issue a notice

or order alleging that the owner or operator of the collection site

is insolvent or violated this part and shall provide an opportunity

for an informal hearing. This subsection does not apply if the bond

is drawn upon under subsection (8)(c) as a result of failure to

cause the removal of scrap tires as ordered by a court.

Sec. 16903b. (1) Subject to subsection (2), the owner and

operator of a collection site is are exempt from the requirement to

obtain a bond under section 16903(4) if all of the following

requirements are met:

(a) The owner or operator of the collection site is a scrap

tire processor.

(b) Not less than 75% of the scrap tires, by weight or volume,

that are stored at the collection site each calendar year are

recycled or used for resource recovery during that year.

storage requirements for at least 1 year.

(d) The owner or operator annually certifies compliance with

the requirements of this subsection on a form approved by the

department.

(2) If the department determines that the owner or operator of

a collection site is not in compliance with ~~the site requirements~~

~~or the certification requirements of~~ subsection (1), the department

shall deliver to ~~the owner of~~ the collection site owner or

operator, or both, a notice of noncompliance. If, within 60 days

after receipt of that notice, the owner or operator who received

the notice does not bring the collection site into compliance with

~~the site requirements or the certification requirements of~~

subsection (1), ~~respectively,~~ the owner or operator shall comply

with section 16903(4). Once an owner or operator is required to

obtain a bond under section 16903(4), the bond shall be maintained

unless the owner or operator brings the collection site into

compliance with ~~the site requirements, maintains compliance with~~

~~the site requirements for a 1-year period, and complies with the~~

~~certification requirements of~~ subsection (1).

~~(3) As used in this section, "site requirements" means all the~~

~~requirements of section 16903(1) and, if applicable, 16903(2).~~

(3) If a scrap tire processor has maintained its collection

site in compliance with subsection (1) for 5 years, the scrap tire

processor may move its operation to a new collection site location

and remains exempt from the requirement to maintain a bond under

section 16903(4) as long as the scrap tire processor continues to

comply with subsection (1).

Sec. 16903c. (1) The owner or operator of a collection site

shall ensure that tires at a collection site are maintained in a

manner that limits the potential of mosquito breeding by complying

with 1 or more of the following:

(a) The tires shall be covered by plastic sheets or other

impermeable barriers to prevent the accumulation of precipitation.

(b) The tires shall be chemically treated to eliminate

mosquito breeding.

no larger than 4 inches by 6 inches and stored in piles that allow

complete water drainage.

(2) A person who violates this section is responsible for ~~the~~

~~payment of~~ a state civil infraction and may be ordered to pay a

civil fine of not more than $400.00, plus costs.

(3) A default in the payment of a civil fine or costs ordered

under this section or an installment of the fine or costs may be

remedied by any means authorized under the revised judicature act

of 1961, 1961 PA 236, MCL 600.101 to ~~600.9948.~~600.9947.

Sec. 16904. (1) By January 31 of each year, ~~a person who owns~~

the owner or operator of a collection site or portable shredding

operation ~~, or both,~~ shall submit an application for registration

to the department. If a person who owns or operates a collection

site is also a portable shredding operation, the person may submit

a single application covering both. The application shall be on a

form provided by the department and shall contain the information

required by the department. The application for registration of a

collection site shall include ~~documentation~~ all of the following:

(a) Documentation that the collection site is bonded for the

registration period ~~in accordance with the requirements of~~ as

required by section 16903(4), if applicable.

(b) The signature of the applicant and, if the applicant is

not the owner of the real property, the signature of the owner.

(2) The department shall not register a collection site unless

the collection site is in compliance with the storage requirements.

~~of section 16903.~~

(3) A $200.00 registration fee shall accompany each annual

application for registration under this section. The department

shall deposit money collected under this subsection into the state

treasury to be credited to the fund.

Sec. 16904b. Scrap tires that are managed in compliance with

this part are exempt from regulation as solid waste under part 115.

Scrap tires that are not managed in compliance with this part are

regulated as solid waste under part 115 in addition to being

regulated under this part.

Sec. 16905. (1) By January 31 of each year, a scrap tire

hauler shall submit an application for registration to the

department. The application shall be on a form provided by the

department and shall contain the information required by the

department. The application shall include documentation that the

scrap tire hauler is bonded as required by subsection (6) for the

registration period.

(2) A scrap tire hauler when transporting scrap tires shall

have in his or her possession a copy of the current unexpired scrap

tire hauler registration and shall present it upon demand of a

~~peace~~ the department or a law enforcement officer. The scrap tire

hauler registration number issued by the department shall be

visibly displayed on a motor vehicle transporting scrap tires,

whether the scrap tires are transported in or on the motor vehicle

or a trailer. The number shall be in block style numerals at least

2 inches high and located on the driver's side of the vehicle but

not on a window. The color of the numerals shall contrast with the

background vehicle color.

(3) A scrap tire hauler shall maintain a record of each load

or consolidated load of scrap tires he or she transports on forms

approved by the department. The record shall be maintained for a

~~period of~~ 3 years and shall be made available, upon request, to the

department or to a ~~peace~~ law enforcement officer at reasonable

hours. The record shall contain all of the following information:

(a) The name, address, telephone number, authorized signature,

and registration number of the scrap tire hauler.

(b) The name, address, telephone number, and authorized

signature of the person who contracts for the removal of the scrap

tires.

the authorized signature, as required under section 16906(3), of

the owner or operator of the location described in section 16902(1)

where the tires are to be delivered.

(d) The date of removal and the number of scrap tires being

transported.

(4) A scrap tire hauler shall not dispose of scrap tires at a

location other than the location identified under subsection

(3)(c).

(5) The original record as required by subsection (3) shall be

in the possession of the scrap tire hauler during the actual

transportation of the scrap tires. A copy of the record provided

for in subsection (3) shall be provided to the person who contracts

for the removal of scrap tires at the time of removal of the tires

from the originating location. A copy shall also be provided to the

owner or operator of the location described in section 16902(1) to

which the scrap tires are delivered at the time of delivery.

(6) A scrap tire hauler shall maintain a bond in favor of the

department, unless the scrap tire hauler is owned and operated by a

scrap tire processor in compliance with this part. The bond shall

be on a form approved by the department. The amount of the bond

shall be $10,000.00.

(7) A person who elects to use a certificate of deposit as a

bond under subsection (6) shall receive any accrued interest on

that certificate of deposit. If cash is posted as a bond, interest

shall accrue on the bond quarterly, at the annual rate of 6%,

except that the interest rate payable to the scrap tire hauler

shall not exceed the rate of interest accrued on the state common

cash fund for the quarter in which an accrual is determined.

Interest shall be paid to the scrap tire hauler upon release of the

bond by the department. Any interest greater than 6% shall be

deposited into the fund.

(8) Subject to subsections (9) and (10), the department may

utilize a bond required under subsection (6) for the costs of any

of the following:

(a) Removing scrap tires accumulated by the scrap tire hauler.

(b) Removing scrap tires deposited at an illegal location by

the scrap tire hauler.

tire hauler into compliance with this part.

(d) Cleanup of scrap tires accumulated or deposited by the

scrap tire hauler.

(e) Fire suppression or other costs associated with responding

to a fire or other emergency involving the scrap tire hauler or a

site where scrap tires have been accumulated or deposited by the

scrap tire hauler, including reimbursement to any local unit of

government that incurred those costs.

(9) The department may draw on the bond required under

subsection (6) if any of the following apply:

(a) There is a fire or other emergency involving the scrap

tire hauler or a site where scrap tires have been accumulated or

deposited by the scrap tire hauler.

(b) The scrap tire hauler becomes insolvent.

cause the removal of the tires as ordered by the department or a

court of competent jurisdiction.

(d) The scrap tire hauler fails to extend or renew the bond

under its terms or establish alternate financial assurance under

subsection (6) at least 30 days before the expiration date or

cancellation date of the bond.

(10) At least 7 days before the department draws on the bond

under subsection (9)(b) or (c), the department shall issue a notice

or order alleging that the scrap tire hauler is insolvent or

violated this part and shall provide an opportunity for an informal

hearing. This subsection does not apply if the bond is drawn upon

under subsection (9)(c) as a result of failure to cause the removal

of scrap tires as ordered by a court.

Sec. 16906. (1) A person ~~, other than a property owner~~

~~removing 7 or fewer scrap tires from his or her property,~~ who by

contract, agreement, or otherwise arranges for the removal of scrap

tires from a property under his or her control, including an end-

user, shall ~~maintain at the site of removal the record~~ do all of

the following:

(a) If a complete record is not obtained from a the registered

scrap tire hauler pursuant to section 16905(5) ~~and the record~~

~~received~~ or from an owner, operator, or authorized agent of a

location pursuant to subsection (3), promptly notify the department

of the missing record or information. ~~A person who by contract,~~

~~agreement, or otherwise arranges for the removal of scrap tires~~

~~from a property under his or her control does not have an~~

~~affirmative duty to obtain these records and is not liable for the~~

~~failure to receive such records. These records shall be maintained~~

(b) Maintain the records described in subdivision (a) at the

site of removal for ~~a period of~~ 3 years. ~~and shall be made~~

enforcement officer upon request during reasonable hours.

(2) A person ~~, other than a solid waste hauler or a scrap tire~~

~~hauler,~~ who receives scrap tires, including an end-user, shall

maintain a record of all scrap tires received. ~~from a scrap tire~~

~~hauler by contract, agreement, or otherwise.~~ The record shall be

maintained for ~~a period of~~ 3 years and shall be made available upon

request to the department or a ~~peace~~ law enforcement officer at

reasonable hours. The record shall contain all of the information

required of a scrap tire hauler in section 16905(3).

(3) Upon ~~delivery of scrap tires by a scrap tire hauler by~~

~~contract, agreement, or otherwise to a location described in~~

acceptance of scrap tires at a location authorized by section

16902(1), the owner, operator, or authorized agent of that location

shall sign the record, indicating acceptance of the scrap tires,

and provide a copy of the signed record to the person delivering

the scrap tires. ~~and shall within~~ Within 30 days, the owner or

operator of the location receiving the scrap tires shall forward a

copy of the signed record to the person who by contract, agreement,

or otherwise arranged for the removal of the scrap tires being

delivered. If the number of scrap tires received by a location

authorized by section 16902(1) differs from the number of scrap

tires indicated on the record provided for in section 16905(3) by

the person who by contract, agreement, or otherwise arranged for

the removal of the scrap tires being delivered or by the scrap tire

hauler, the owner or operator of the location receiving the scrap

tires shall contact the person who arranged for removal of the

scrap tires or the scrap tire hauler, or both, as necessary, and

determine where any additional tires received by that location

originated or where any missing tires not received by that location

were taken.

(4) If a consumer purchases replacement tires at a retailer

and retains the tires being replaced, the retailer shall obtain the

signature of the consumer on an invoice, receipt, or other record

acknowledging retention of the scrap tires unless the consumer

refuses.

(5) ~~(4)~~ A retreader shall maintain for ~~a period of~~ 3 years,

and make available upon request to the department or a ~~peace~~ law

enforcement officer at reasonable hours, all records required to be

carried or maintained with the retreader's tire casings including

all of the following:

(a) A retread work order that includes the customer's name,

date of transaction, retreader DOT identification number pursuant

to 49 CFR part 574, order number, and details of casing information

for the casing intended for processing. Work orders shall reflect

the number of tires that are being transported and retreaded.

(b) A work order sales report that specifies the work process

detail for the customer work order. This report shall be returned

to the customer with the work order number and invoice.

process that was completed for the customer.

Sec. 16908. (1) The scrap tire regulatory fund is created in

the state treasury. The fund shall receive money as provided by law

and any gifts or contributions to the fund. The state treasurer

shall direct the investment of the fund. Interest and earnings of

the fund shall be credited to the fund. The department shall be the

administrator of the fund for auditing purposes. Money in the fund

at the close of the fiscal year shall remain in the fund and shall

not revert to the general fund.

(2) Money in the fund shall be used, upon appropriation, for

all of the following purposes:

(a) For administrative costs of the department associated with

this part including the implementation and enforcement of this

part. However, money shall not be expended under this subdivision

for the employment of more than 11 full-time equated positions.

(b) For the administrative costs of the secretary of state

associated with the collection of the tire disposal surcharge

pursuant to section 806 of the Michigan vehicle code, 1949 PA 300,

MCL 257.806.

scrap tires at collection sites. The department shall give priority

to funding activities under this subdivision at collection sites in

which the scrap tires were accumulated prior to January 1, 1991 and

to collection sites that pose an imminent threat to public health,

safety, welfare, or the environment. ~~The department shall make~~

~~every effort to assure that all abandoned scrap tires accumulated~~

~~at collection sites prior to January 1, 1991 are cleaned up or~~

~~collected by September 31, 2009.~~ For collection sites that have

accumulated tires after January 1, 1991, a lien, in favor of the

state up to the value of the cleanup grant amount and any increase

in the value of the property as a result of the cleanup of the

property with grant funds, shall be placed on the property that is

affected by the removal of the tires as provided in section 16908b.

Before making a grant under this subdivision, the department shall

consider the extent to which the making of the grant would

contribute to the achievement of a balanced distribution of grants

under this subdivision throughout the state. If a grant is awarded

under this subdivision for collecting scrap tires at a community

cleanup site, the tires shall be removed from the community cleanup

site by the time specified in the grant contract.

~~(3) Money expended under subsection (2)(c) may be expended for~~

~~either or both of the following:~~

~~(a) Not more than $500,000.00 each year for~~

(d) For grants to reimburse the cost of purchasing scrap tires

to support the development of increased markets for scrap tires.

Only the cost of purchasing scrap tires from scrap tire processors

in this state or other generators of scrap tires in this state is

eligible for reimbursement under this subdivision.

(e) ~~(b)~~ For grants of up to 50% of the cost of purchasing

equipment, or research and development, to provide for a new or

increased use for scrap tires.

(f) For costs associated with enforcement of this part,

including grants to local law enforcement agencies.

(3) ~~(4)~~ Applications for grants under subsection ~~(3)~~ (2) shall

be submitted on a form approved by the department and ~~containing~~

shall contain the information required by the department. The

department shall publish criteria upon which the grants will be

issued and shall make that information available to grant

applicants.

Sec. 16908c. A person shall not intentionally engage in the

open burning of a scrap tire.

Sec. 16909. (1) A person who violates this part, ~~when~~ if fewer

than 50 scrap tires are involved, is guilty of a misdemeanor

punishable by imprisonment for not more than 90 days or a fine of

not less than $200.00 or more than $500.00, or both, for each

violation.

(2) A person who violates this part, ~~when~~ if 50 or more scrap

tires are involved, is guilty of a misdemeanor punishable by

imprisonment for not more than 180 days or a fine of not less than

$500.00 or more than $10,000.00, or both, for each violation.

(3) A person convicted of a second or subsequent violation of

this part is guilty of a misdemeanor punishable by imprisonment for

not more than 1 year or a fine of not less than $1,000.00 or more

than $25,000.00, or both, for each violation.

(4) In addition to any other penalty provided for in this

section, the court may order a person who violates this part to

perform not more than 100 hours of community service.

(5) For any violation of this part, each day that a violation

continues constitutes a separate violation.

(6) A ~~peace~~ law enforcement officer may issue an appearance

ticket as described and authorized by sections 9c to 9g of chapter

IV of the code of criminal procedure, 1927 PA 175, MCL 764.9c to

764.9g, to a person who violates this part.

(7) This section does not apply to a violation of section

16903c.

~~(8) The penalties provided for in this section shall not be~~

~~applied against a person in violation of section 16903(1)(a), (b),~~

~~(c), (d), (e), (g), or (j) or 16903(4) before September 1, 2002 if~~

~~the person is in compliance with these provisions by September 1,~~

~~2002 and the person maintains compliance with those provisions.~~

~~This subsection does not apply to a person who, before July 3,~~

~~2002, was convicted under this section.~~

(8) A person who knowingly makes or causes to be made a false

statement or entry in a registration application, scrap tire

transportation record, or grant application under this part is

Senate Bill No. 941 (S-1) as amended December 18, 2014

guilty of a [misdemeanor] punishable by imprisonment for not more than [1

year] or a fine of not less than $2,500.00 or more than $10,000.00,

or both.

Sec. 16909a. (1) The department may enter at reasonable hours

a tire retail establishment, vehicle owned or operated by a scrap

tire hauler for the transport of scrap tires, or collection site or

other place where scrap tires are or have been present, and may

inspect the location or other place for the purposes of enforcing

or administering this part. An investigation or inspection under

this part shall comply with the United States constitution and the

state constitution of 1963.

(2) If the department or a law enforcement officer has

probable cause to believe that a person is violating this part, the

department or a law enforcement officer may search without a

warrant a vehicle or other transportation-related equipment that is

possessed, used, or operated by that person.

(3) A vehicle, or other transportation-related equipment used

in a criminal violation of this part is subject to seizure by a law

enforcement officer and forfeiture [in the same manner] as provided in

chapter 47 of the

revised judicature act of 1961, 1961 PA 236, MCL 600.4701 to

600.4709.

(4) The court may award court costs and other expenses of

litigation including attorney fees to a party who successfully

brings an action for a violation of this section.

Sec. 16911. (1) The department shall annually report to the

standing committees of the senate and house of representatives with

primary responsibility for issues pertaining to natural resources

and the environment on the utilization of revenues of the fund.

(2) ~~Not later than 3 years after the effective date of the~~

~~2006 amendatory act that added this section,~~ In 2006 and every

third year thereafter, the department shall prepare a report on the

effectiveness of this part in encouraging the reuse of scrap tires

and ensuring the safe storage of scrap tires. The report shall

include recommendations for such changes to this part, including

any further description of the ~~use~~ uses of money described in

section ~~16908(2)(c) and (3),~~ 16908(2)(c), (d), and (e) as the

department finds necessary and appropriate. The department shall

submit the report to the standing committees of the senate and

house of representatives with primary responsibility for issues

pertaining to natural resources and the environment.

(3) The director of the department shall appoint a scrap tire

advisory committee of individuals interested in the management of

scrap tires to advise the department on the implementation of this

part. In addition to such other issues as the department may

request the committee to consider, the committee shall advise the

department on the report required by subsection (2) and the

relevance of a national standard or specification under section

~~16901(1)(e).~~16901(1)(f).