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BTLG Table of Contents > California Tire Fee > Chapter 17 California Tire Recycling Act > entire chapter

California Tire Fee

Public Resources Code

Division 30. Waste Management

Chapter 17 California Tire Recycling Act

California Tire Fee

PUBLIC RESOURCES CODE PROVISIONS Relating to the California Tire Fee

[Added Stats. 1990, Ch. 35, effective March 30, 1990.]

Note: The remaining administrative provisions related to this fee can be found under Fee Collection Procedures Law, Revenue and Taxation Code §§ 55001–55381.

Chapter 17. California Tire Recycling Act

Article 1. Findings

42860. Citation of act. This chapter shall be known and may be cited as the California Tire Recycling Act.

42861. Legislative findings. 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 which 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) Used tires represent a valuable state resource which should be reclaimed and recycled whenever possible. An abundance of tire recycling alternatives exist which have been demonstrated to be environmentally safe. These alternatives need to be promoted in order to achieve the maximum use of used tires.

(e) 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.

Article 2. Storage at Landfills

42865. Policy; "tire"; "shredding". (a) It is the policy of the state that until a state tire recycling program is fully underway and operational, the shredding of used tires shall be encouraged.

(b) For the purposes of this act, a "tire" refers to any vehicle tire whose major component is rubber, and its component parts. "Shredding" includes both mechanical and cryogenic shredding which reduces tires to a size of less than four inches in width.

42866. Adoption of emergency regulations. [Repealed by Stats. 2000, Ch. 838 (SB 876), in effect January 1, 2001.

42867. Eligibility for financial assistance. Except as otherwise determined by the board, only landfills authorized in this article shall be eligible for financial assistance in the shredding of tires pursuant to Article 3 (commencing with Section 42870).

Article 3. Tire Recycling

42870. Legislative intent. It is the intent of the Legislature:

(a) To reduce the landfill disposal and stockpiling of used whole tires by 25 percent within four years of full implementation of a statewide tire recycling program and to recycle and reclaim used tires and used tire components to the greatest extent possible in order to recover valuable natural resources.

(b) To eliminate illegal dumping and unnecessary stockpiling of used tires.

42871. Initiation of tire recycling program. The board shall administer a tire recycling program that promotes and develops alternatives to the landfill disposal of used whole tires.

42872. Awarding of grants; information and education programs. The tire recycling program may include, but is not limited to, the following:

(a) The awarding of grants, subsidies, rebates, and loans to businesses or other enterprises, and public entities, involved in activities and applications that result in reduced landfill disposal of used whole tires and reduced illegal disposal or stockpiling of used whole tires.

(b) The awarding of grants for research aimed at developing technologies or improving current activities and applications that result in reduced landfill disposal of used whole tires.

(c) The awarding of grants or loans for the evaluation, planning, design, improvement, and implementation of alternative used tire recycling programs in this state.

(d) The awarding of grants, subsidies, rebates, or loans to businesses that shred used tires for purposes of recycling.

(e) Development and implementation of an information and education program, including seminars and conferences, aimed at promoting alternatives to the landfill disposal of used whole tires.

(f) The awarding of grants or loans to tire shredding programs at authorized landfills, solid waste transfer stations, or dedicated tire shredding facilities, including the direct purchase of shredders or financing of shredder contracts.

(g) Development and implementation of a waste tire incentive payment program to promote increased demand for waste tires recycled in this state and to promote higher valued products.

42872.1. Rubberized Pavement Market Development Act. (a) This section shall be known, and may be cited, as the Rubberized Pavement Market Development Act.

(b) In accordance with the tire recycling program authorized by Section 42872, the department shall award grants in the following manner:

(1) To cities, counties, and other local governmental agencies for the funding of public works projects that utilize rubberized pavement.

(2) To state and local governmental agencies, including regional park districts, for the funding of disability access projects at parks and Class I bikeways as defined in subdivision (a) of Section 890.4, relative to projects that utilize rubberized pavement.

(c) (1) Except as provided in paragraph (2), the department shall award the grants pursuant to subdivision (b) in the amount of two dollars ($2) for every 12 pounds of crumb rubber used in a public works or disability access project by a state or local governmental agency, including a regional park district.

(2) The department may adjust the amount of grants awarded pursuant to paragraph (1) to an amount that is greater than, or less than, two dollars ($2) for every 12 pounds of crumb rubber if the department finds this adjustment would further the purposes of this article.

(d) This section shall become inoperative on June 30, 2019, and, as of January 1, 2020, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2020, deletes or extends the dates on which it becomes inoperative and is repealed.

42872.5. Awarding of grants for public works projects. [Repealed by Stats. 2011, Ch. 573 (AB 525), in effect January 1, 2016.]

42872.6. Awarding of grants for public works projects; tire derived products. (a) (1) When awarding grants pursuant to Section 42872 to cities, counties, and other local government agencies for public works projects that use tire-derived products, the department may, in addition to any other authorized use of those funds, award grants for public works projects that use tire-derived products, including recycled tire lumber, to create parklets, greenways, or both.

(2) If the department awards grants pursuant to this section, the department shall give priority to public works projects that use tire-derived products to create parklets, greenways, or both, in disadvantaged communities.

(b) For the purposes of this section, the following terms have the following meanings:

(1) "Disadvantaged community" means a community, as determined by the department, with an annual median household income that is less than 80 percent of the statewide median household income.

(2) "Greenway" means a travel corridor for pedestrians, bicycles, nonmotorized vehicle transportation, recreation, or a combination thereof, located along natural landscape features, such as an urban watercourse.

(3) "Parklet" means a small urban park intended for people and that provides amenities, including, but not limited to, seating, tables, bicycle racks, and landscaping.

History—Added by Stats. 2014, Ch. 589 (AB 1179), in effect January 1, 2015.

42873. Activities eligible for funding. (a) Activities eligible for funding under this article, that reduce, or that are designed to reduce or promote the reduction of, landfill disposal of used whole tires, may include the following:

(1) Polymer treatment.

(2) Rubber reclaiming and crumb rubber production.

(3) Retreading.

(4) Shredding.

(5) The manufacture of products made from used tires, including, but not limited to, all of the following:

(A) Rubberized asphalt, asphalt rubber, modified binders, and chip seals.

(B) Playground equipment.

(D) Erosion control materials.

(E) Nonslip floor and track surfacing.

(F) Oilspill recovery equipment.

(G) Roofing adhesives.

(H) Tire-derived aggregate applications, including lightweight fill and vibration mitigation.

(I) Molded products.

(J) Products using recycling rubber and other materials, such as plastic.

(K) Paint and coatings.

(6) Other environmentally safe applications or treatments determined to be appropriate by the board.

(b) (1) The board may not expend funds for an activity that provides support or research for the incineration of tires. For the purposes of this article, incineration of tires, includes, but is not limited to, fuel feed system development, fuel sizing analysis, and capacity and production optimization.

(2) Paragraph (1) does not affect the permitting or regulation of facilities that engage in the incineration of tires.

History—Stats. 2006, Ch. 300 (SB369), in effect January 1, 2007, substituted "Rubberized asphalt, asphalt rubber, modified binders, and chip seals" for "Artificial reefs" in subparagraph (A) of, substituted "Playground equipment" for "Rubber asphalt" in subparagraph (B) of, substituted "Crash barriers" for "Playground equipment" in subparagraph (C) of, substituted "Erosion control materials" for "Crash barriers" in subparagraph (D) of, substituted "Nonslip floor and track surfacing" for "Erosion control materials" in subparagraph (E) of, substituted "Oilspill recovery equipment" for "Nonslip floor and track surfacing" in subparagraph (F) of, substituted "Roofing adhesives" for "Oil spill recovery equipment" in subparagraph (G) of, and substituted "Tire-derived aggregate applications, including lightweight fill and vibration mitigation" for "Roofing adhesives" in paragraph (H) of paragraph (5) of subdivision (a). Stats. 2012, Ch. 534 (AB 1647), in effect January 1, 2013, added subparagraphs (I), (J), and (K) to paragraph (5) of subdivision (a).

42874. Factors in evaluating loan applications. The board shall evaluate applications for loans or grants under this article based upon, but not limited to, the following factors in the proposal:

(a) The quantity of used tires that will be diverted from landfills.

(b) The estimated cost per tire in the recycling, processing, or conversion process.

(d) The degree to which the processing program mitigates or avoids adverse environmental effects.

42875. Additional factors for loan applications. The board may also consider the following factors in awarding grant or loan applications:

(a) The ability of the proposed processing program to integrate with existing or proposed solid waste management activities.

(b) Financial support for implementation and operation of the proposed processing program from sources other than loans and grants from the board.

(c) The degree to which the technical approach of the proposal makes the loan and grant program financially self-sufficient.

(d) The degree to which the program can be measured or evaluated for success.

(e) The probability that the processing program can be implemented and operated with the funds applied for and the amount of funds sought.

(f) The time that the land or property on which the proposed processing facility is available to the applicant. No proposal shall be considered for a loan or grant unless the property or facility is available for at least five years.

(g) The business plan for operation of the facility.

Article 4. Administration

42880. Administration of chapter. The board shall administer this chapter. For organizational purposes, the board may create a new division, bureau, office, or unit to administer this chapter.

42881. Adoption of rules and regulations; preparation of printed materials. (a) In addition to any regulations which the board is required by statute to adopt, the board may adopt any rules or regulations which the board determines may be necessary or useful to carry out this chapter or any of the board's duties or responsibilities imposed pursuant to this chapter.

(b) The board may prepare, publish, or issue printed materials which the board determines to be necessary for the dissemination of information concerning the activities of the board pursuant to this chapter.

42882. Contracting with other state agencies; Fee Collection Procedures Law. [Repealed by Stats. 2024, Ch. 34 (SB 167), effective June 27, 2024.]

History—Added by Stats. 1995, Ch. 555, in effect January 1, 1996, added "If the board … and (Taxation Code)." as the second sentence.

42882. Contracting with other state agencies. In carrying out this chapter, the department may solicit and use expertise available in other state agencies and, if an existing state agency performs functions of a similar nature to the department's functions, the department may contract with, or cooperate with, that agency in carrying out this chapter.

History—Added by Stats. 2024, Ch. 1000 (AB 178), in effect September 30, 2024.

42883. Grant recipient reporting requirements. The recipient of a grant, subsidy, or loan pursuant to Article 3 (commencing with Section 42870) shall, on or before January 1 of each year, submit a report to the board containing information required by the board, including, but not limited to, the number of used whole tires recycled, which is necessary to measure the success of the recipient's program in reducing the number of tires disposed of in landfills or stockpiled.

42884. Annual tire recycling reports. [Repealed by Stats. 1996, Ch. 1038, in effect September 29, 1996.]

Text of Section Operative January 1, 2005 to December 31, 2033

42885. Disposal fee; seller reimbursement retention; California Tire Recycling Management Fund; reimbursement of department. (a) For purposes of this section, "California tire fee" means the fee imposed pursuant to this section.

(b) (1) 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 1½ 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 California Department of Tax and Fee Administration shall collect the California tire fee pursuant to the Fee Collection Procedures Law (Part 30 (commencing with Section 55001)) of Division 2 of the Revenue and Taxation Code. For purposes of this section, the reference in the Fee Collection Procedures Law to "feepayer" shall include a person required to pay the fee imposed by this section, which includes the retail seller. (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 onroad 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 new or 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.

(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) This section shall remain in effect only until January 1, 2034, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2034, deletes or extends that date.

History—Stats. 2006, Ch. 77 (AB 1803), in effect July 18, 2006, renumbered former subdivision (b)(1)(A) as (b)(1), substituted "A" for "Every" in the former subdivision (b)(1)(A), and substituted "one dollar and seventy-five cents ($1.75)" for "one dollar ($1.00)" in the former subdivision (b)(1)(A); deleted subdivisions (b)(1)(B) and (b)(1)(C); substituted reference "subdivision (b)" for "subdivision (a)" in subdivision (d); substituted "A" for "Any" and "a" for "any" in subdivision (e); substituted "a" for "any" two times in subdivision (f); substituted "shall" for "may" "a" for "any" in, and substituted "A" for "Any" in paragraphs (1), (2), and (3) of subdivision (h). Stats. 2013, Ch. 401 (AB 8) in effect September 28, 2013, substituted "department" for "board" after "The" in subdivision (c); substituted "department" for "board" after "The" in subdivision (f); substituted "onroad" for "on-road" in subdivision (g); and substituted "January 1, 2024" for "January 1, 2015" twice in subdivision (i). Stats. 2022, Ch. 355 (AB 2836), substituted "2034" for "2024" throughout subdivision (i). Stats. 2024, Ch. 42 (SB 175), effective June 29, 2024, substituted "California Department of Tax and Fee Administration … the retail seller." for "department … deposited in the fund." after "The" in subdivision (c).

Text of Section Operative January 1, 2034

(b) (1) Every 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.

(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.

(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.

(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) This section shall become operative on January 1, 2034.

History—Amended by Stats. 2024, Ch. 42 (SB 175), effective June 29, 2024, substituted "California Department of Tax and Fee Administration … the retail seller." for "department … deposited in the fund." after "The" in subdivision (c).

42885.5. Goals and priorities. (a) The department shall adopt a five-year plan, which shall be updated every two years, to establish goals and priorities for the waste tire program and each program element.

(b) On or before July 1, 2001, and every two years thereafter, the department shall submit the adopted five-year plan to the appropriate policy and fiscal committees of the Legislature. The department shall include in the plan elements addressing programmatic and fiscal issues, including, but not limited to, the hierarchy used by the department to maximize productive uses of waste and used tires, and the performance objectives and measurement criteria used by the department to evaluate the success of its waste and used tire recycling program. Additionally, based upon performance measures developed by the department, , the plan shall describe the effectiveness of each element of the program, including, but not limited to, the following:

(1) Enforcement and regulations relating to the storage of waste and used tires.

(2) Cleanup, abatement, or other remedial action related to waste tire stockpiles throughout the state.

(3) Research directed at promoting and developing alternatives to the landfill disposal of waste tires.

(4) Market development and new technology activities for used tires and waste tires.

(5) The waste and used tire hauler program, the registration of, and reporting by, tire brokers, and the manifest system.

(6) A description of the grants, loans, contracts, and other expenditures proposed to be made by the department under the tire recycling program.

(7) Until June 30, 2015, the grant program authorized under Section 42872.5 to encourage the use of waste tires, including, but not limited to, rubberized asphalt concrete technology in public works projects.

(8) Border region activities, conducted in coordination with the California Environmental Protection Agency, including, but not limited to, all of the following:

(A) Training programs to assist Mexican waste and used tire haulers to meet the requirements for hauling those tires in California.

(B) Environmental education training.

(C) In coordination with the California-Mexico Border Relations Council, development of a waste tire abatement , which may also provide for the abatement of solid waste, with the appropriate government entities of California and Mexico.

(D) Tracking both the legal and illegal waste and used tire flow across the border and recommending revisions to the waste tire policies of California and Mexico.

(E) Coordination with businesses operating in the border region and with Mexico, with regard to applying the same environmental and control requirements throughout the border region.

(F) Development of projects in Mexico in the California-Mexico border region, as defined by the La Paz Agreement, that include, but are not limited to, education, infrastructure, mitigation, cleanup, prevention, reuse, and recycling projects, that address the movement of used tires from California to Mexico, and support the cleanup of illegally disposed waste tires and solid waste along the border that could negatively impact California's environment.

(9) Grants to certified community conservation corps and community conservation corps, pursuant to paragraph (3) of subdivision (a) of, and paragraph (3) of subdivision (b) of, Section 17001, for purposes of the programs specified in paragraphs (2) and (6) and for related education and outreach.

(d) The plan may not propose financial or other support that promotes, or provides for research for the incineration of tires.

History—Stats. 2006, Ch. 300 (SB 369), in effect January 1, 2007, deleted the comma after "board shall include" and added comma after "waste and used tires" in second sentence of subdivision (b); substituted "2010" for "2006" after "Until June 30," in paragraph 7 of subdivision (b); and added paragraph (8) and subparagraphs (A), (B), (C), (D), and (E) of new paragraph (8) of subdivision (b). Stats. 2009, Ch. 333 (SB 167), in effect January 1, 2010, added subparagraph (F) in paragraph (8) of subdivision (b). Stats. 2011, Ch. 573 (AB 525), in effect January 1, 2012, substituted "department" for "board" throughout the section; substituted "2015" for "2010" after "Until June 30,", added "waste tires, including, but not limited to," after "encourage the use of", and added a comma after "concrete technology" in paragraph (7) of subdivision (b). Stats. 2012, Ch. 534 (AB 1647), in effect January 1, 2013, added "the registration of, and reporting by, tire brokers," and "the" before "manifest" to paragraph (5) of subdivision (b). Stats. 2014, Ch. 35 (SB 861), in effect June 20, 2014, added paragraph (9) to subdivision (b). Stats. 2015, Ch. 24 (SB 83), in effect June 24, 2015, substituted "plan elements addressing" for "plan," after "The department shall include in the", added a comma after "programmatic and fiscal", deleted "the plan shall describe each program element's effectiveness," after "Additionally," and added "the plan shall describe the effectiveness of each element of the program," after "developed by the department," in subdivision (b); deleted "to" after "used tire haulers" in subparagraph (A) of paragraph (8) of subdivision (b); replaced "Development" with "In coordination with the California-Mexico Border Relations Council, development" and replaced "plan" with "plan, which may also provide for the abatement of solid waste," in subparagraph (C) of paragraph (8) of subdivision (b); substituted "recommending" for "recommended" after "across the border and" in subparagraph (D) of paragraph (8) of subdivision (b); substituted "Mexico, and support the cleanup of illegally disposed waste tires and solid waste along the border that could negatively impact California's environment." for "Mexico that are eventually disposed of in California." after "movement of used tires from California" in subparagraph (F) of paragraph (8) of subdivision (b).

Note.—Stats. 2009, Ch. 333 (SB 167), Section 1, provides the Legislature finds and declares all of the following:

(a) According to the California Integrated Waste Management Board's Five Year Plan for the Waste Tire Recycling Management Program, Fourth Edition, issued on July 1, 2007, nearly 2.3 million reusable and waste tires were exported from California with many of the tires exported to Mexico.

(b) Many of the tires exported to Mexico have a very short life span and are illegally disposed of or are used inappropriately for structural purposes in shanty towns and colonias in or near the City of Tijuana, Mexico.

(c) Illegally disposed tires on the Mexico side of the border have caused environmental issues in California, such as tires entering into the Tijuana Estuary and smoke from tire fires in Mexicali dispersing into Calexico.

(d) During the wet weather months, stormwater carries thousands of waste tires back across the border from Tijuana into California through the Tijuana River channel and open culverts in the border fence.

(e) Waste tires from Tijuana blanket the sensitive ecosystems of the Tijuana River Valley, Estuary, and Border Field State Park. Approximately 80,000 pounds of tires are removed by hand each year from the river, sediment basins, and the sensitive habitats of the Tijuana River Valley and the Tijuana River National Estuarine Research Reserve.

(f) Waste tires that cannot be removed serve as breeding grounds for mosquitoes, viruses, and rodents threatening the public health.

(g) Federal, state, and local agencies spend between five dollars ($5) and thirteen dollars ($13) to excavate each tire that is ultimately deposited in a California landfill.

(h) It is more efficient and cost effective to work directly with agencies in Baja California to invest in, and develop cooperative recycling and reuse projects, mirroring the effective waste tire programs in California.

42886. Payment due date; penalty. The fees remitted pursuant to Section 42885 are due and payable quarterly on or before the 15th day of the month following each calendar quarter.

42886.1. Payment due date; yearly period. (a) The California Department of Tax and Fee Administration if it deems it necessary in order to ensure payment to or facilitate the collection by the state of the amount of fees, may require returns and payment of the amount of fees for a yearly period.

(b) On or before the 15th day of the month following each designated yearly period, a return for the preceding designated yearly period shall be filed with the California Department of Tax and Fee Administration in the form as the California Department of Tax and Fee Administration may prescribe.

History—Amended by Stats. 2024, Ch. 34 (SB 167), effective June 27, 2024, substituted "California Department of Tax and Fee Administration" for "State Board of Equalization" throughout.

42887. Limitations; deficiency determination; failure to file return. Except in the case of fraud, intent to evade this chapter or rules and regulations adopted to implement this chapter, or failure to file a return, the notice of a deficiency determination shall be mailed within three years after the amount that is proposed to be determined was due or within three years after the return is filed, whichever period expires later. In the case of failure to file a return, the notice of determination shall be mailed within eight years after the amount that is proposed to be determined was due.

42888. Refund or credit claim; limitation period. (a) Except as agreed to by the board, no refund shall be approved by the board after three years from the date the payment was due for which the overpayment was made, or with respect to deficiency or jeopardy determinations, after six months from the date the determinations become final, or after six months from the date of overpayment, whichever period expires later, unless a claim therefor is filed with the board within that period. No credit shall be approved by the board after the expiration of that period, unless a claim for credit is filed with the board within that period or unless the credit relates to a period for which a waiver is given by the board.

(b) A refund may be approved by the board for any period agreed to by the board for good cause if a claim for the referral is filed with the board before the expiration of the period agreed upon.

History—Stats. 2006, Ch. 538 (SB 1852), in effect January 1, 2007, renumbered paragraph (2) of subdivision (a) as subdivision (b), and substituted "for the referral" for "therefor" after "for good cause if a claim" in the new subdivision (b).

Text of Section Operative January 1, 2005 to December 31, 2033

42889. Expenditure of funds. (a) All revenues, interest, and penalties derived from the California Tire Fee, less refunds and reimbursement to the California Department of Tax and Fee Administration for expenses incurred in the administration and collection of the fee imposed by this article, shall be deposited as follows:

(1) An amount equal to seventy-five cents ($0.75) per tire on which the fee is imposed shall be deposited in 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 Section 42885 is imposed.

(2) The remaining moneys collected pursuant to Section 42885 shall be deposited in the California Tire Recycling Management Fund 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:

(A) 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.

(B) To pay the costs associated with operating the tire recycling program specified in Article 3 (commencing with Section 42870).

(C) 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.

(D) 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.

(E) To make studies and conduct research directed at promoting and developing alternatives to the landfill disposal of waste tires.

(F) 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.

(G) 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).

(H) To pay the costs to create and maintain an emergency reserve, which shall not exceed one million dollars ($1,000,000).

(I) 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.

(J) To fund border region activities specified in paragraph (8) of subdivision (b) of Section 42885.5.

(K) For expenditure pursuant to paragraph (3) of subdivision (a) of, and paragraph (3) of subdivision (b) of, Section 17001.

(b) This section shall remain in effect only until January 1, 2034, and as of that date is repealed, unless a later enacted statute that is enacted before January 1, 2034, deletes or extends that date.

History—Stats. 2006, Ch. 77 (AB 1803), in effect July 18, 2006, renumbered subdivision (a)(1) as (a), deleted "and until December 31, 2006," after "Commencing January 1, 2005," in the new subdivision (a); deleted paragraph (2) of subdivision (a); and substituted "(c)" for "(b)" after "provided in subdivision" in paragraph (2) of subdivision (b). Stats. 2008, Ch. 696 (SB 1781), in effect September 30, 2008, added ", and regulations relating to the hauling of waste and used tires, as provided in subdivision (b) of Section 42963" after "subdivision (c) of Section 42850" in paragraph (4) of subdivision (b). Stats. 2009, Ch. 333 (SB 167), in effect January 1, 2010, added paragraph (11) of subdivision (b). Stats. 2013, Ch. 401 (AB 8), in effect September 28, 2013 replaced "Commencing January 1, 2005, of" with "Of" in first sentence of subdivision (a); substituted "department" for "board" throughout the section; and substituted "January 1, 2024" for "January 1, 2015" twice in subdivision (c). Stats. 2014, Ch. 35 (SB 861), in effect June 20, 2014, added paragraph (12) to subdivision (b). Stats. 2022, Ch. 355 (AB 2836), substituted "2034" for "2024" throughout subdivision (c). Stats. 2024, Ch. 42 (SB 175), effective June 29, 2024, added "All revenues … shall be deposited as follows:" at the beginning of subdivision (a); deleted "Of the moneys collected pursuant to Section 42885, an" from the first sentence of former subdivision (a); redesignated the remainder of former subdivision (a) as paragraph (a)(1), added "An" before "amount", and substituted "deposited in" for "transferred by the State Board of Equalization", in the first sentence of new paragraph (a)(1); redesignated subdivision (b) as paragraph (a)(2); substituted "deposited in the California Tire Recycling Management Fund" for "used" after "shall be" in the first sentence of new paragraph (a)(2); redesignated paragraph (b)(1) as subparagraph (a)(2)(A); deleted former paragraph (b)(2) which stated, "To pay the cost of administration … as provided in subdivision (b) of Section 42885."; redesignated paragraphs (b)(3)-(12) as subparagraphs (a)(2)(B)-(K); and redesignated subdivision (c) as subdivision (b).

Text of Section Operative January 1, 2034

42889. Expenditure of funds. All revenues, interest, and penalties derived from the California tire fee, less refunds and reimbursement to the California Department of Tax and Fee Administration for expenses incurred in the administration and collection of the fee imposed by this article, shall be deposited in the California Tire Recycling Management Fund in the State Treasury. 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 following purposes:

(1) 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.

(2) To pay the costs associated with operating the tire recycling program specified in Article 3 (commencing with Section 42870).

(3) 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.

(4) 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.

(5) To fund border region activities specified in paragraph (8) of subdivision (b) of Section 42885.5.

(6) For expenditure pursuant to paragraph (3) of subdivision (a) of, and paragraph (3) of subdivision (b) of, Section 17001.

(b) This section shall become operative on January 1, 2034.

History—Stats. 2013, Ch. 401 (AB 8), in effect September 28, 2013, substituted "department" for "board" throughout the section; and substituted "January 1, 2024" for "January 1, 2015" in subdivision (g). Stats. 2014, Ch. 35 (SB 861), in effect June 20, 2014, added new subdivision (g) and relettered former subdivision (g) as subdivision (h). Stats. 2022, Ch. 355 (AB 2836), substituted "2034" for "2024" in subdivision (h). Stats. 2024, Ch. 42 (SB 175), effective June 29, 2024, deleted first paragraph "Funding for … following purposes:" in its entirety; added "All revenues … following purposes:" as new subdivision (a); redesignated former subdivision (a) as paragraph (a)(1); deleted subdivision (b) which stated, "To pay the cost … subdivision (b) of Section 42885."; redesignated subdivisions (c)–(g) as paragraphs (a)(2)–(6); redesignated subdivision (h) as subdivision (b).

42889.1. Expenditure plan. [Repealed by Stats. 2004, Ch. 644 (AB 2701), effective January 1, 2005.]

42889.3. Use of waste tires. [Repealed by Stats. 2012, Ch. 728 (SB 71), effective January 1, 2013.]

42889.4. Air emissions. If facilities are permitted to burn tires in the previous calendar year, the State Air Resources Board, in conjunction with air pollution control districts and air quality management districts, shall post on its Web site, updated on or before July 1 of the subsequent year, information summarizing the types and quantities of air emissions, if any, from those facilities.

Article 6. Use of Recycled Tire Products by State Agencies

42890. "Recycled tire product." "Recycled tire product" means a product with not less than 50 percent of its total content derived from recycled used tires.

42891. Revision of state procedures and procurement specifications. The Department of General Services shall revise its procedures and procurement specifications for state purchases of products that are made of, or contain components that can be derived from the recycling of, used tires, including, but not limited to, rubber, oil, natural gas, carbon black, asphalt rubber, floor tiles, carpet underlays, mats, drainage pipes, garbage cans, retreaded tires, and water hoses. For those purchases, the department shall give preference, wherever feasible, to the suppliers of recycled tire products. This preference shall be 5 percent of the lowest bid or price quoted by suppliers offering similar products made from nonrecycled components.

History—Stats. 2006, Ch. 538 (SB 1852), in effect January 1, 2007, deleted reference subdivision (a); substituted "that" for "which" after "state purchases of products", and substituted "that" for "which" after "or contain components".

42892. Bid preference. In bids in which the state has reserved the right to make multiple awards, the recycled tire product preference cost shall be applied, to the extent possible, so as to maximize the dollar participation of recycled tire product businesses in the contract award.

42893. Limit on preference grants. (a) The combined amount of preference granted pursuant to this section shall not exceed one hundred thousand dollars ($100,000) each year.

(b) Notwithstanding Section 42892, the recycled tire product preference shall not exceed fifty thousand dollars ($50,000) if a preference exceeding that amount would preclude an award to a small business that offers a similar product made of nonrecycled tire components and is qualified in accordance with Section 14838 of the Government Code. This provision applies regardless of whether the small business is the lowest responsible bidder or is eligible for the contract award on the basis of application of the 5 percent small business preference.

42894. Preference for highest percentage of recycled tire products. To encourage the use of recycled tires, the department's specifications shall require recycled tire product contracts to be awarded to the bidder whose product has the greatest percentage of recycled tire content if the fitness, quality, and price are otherwise equal.

42895. Adoption of rules and regulations for bid preference. The department may adopt rules and regulations to carry out this article.

Laws, Regulations and Annotations

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Business Taxes Law Guide—Revision 2024

California Tire Fee

Public Resources Code

Division 30. Waste Management

Chapter 17 California Tire Recycling Act

Article 1. Findings

Article 2. Storage at Landfills

Article 3. Tire Recycling

Article 4. Administration

Article 5. Financial Provisions

Article 6. Use of Recycled Tire Products by State Agencies

California Tire Fee

PUBLIC RESOURCES CODE PROVISIONS Relating to the California Tire Fee

Note: The remaining administrative provisions related to this fee can be found under Fee Collection Procedures Law, Revenue and Taxation Code §§ 55001–55381.

Chapter 17. California Tire Recycling Act

Article 1. Findings

Article 2. Storage at Landfills

Article 3. Tire Recycling

Article 4. Administration

Text of Section Operative January 1, 2005 to December 31, 2033

Text of Section Operative January 1, 2034

Text of Section Operative January 1, 2005 to December 31, 2033

Text of Section Operative January 1, 2034

Article 6. Use of Recycled Tire Products by State Agencies