House File 560 - Introduced HOUSE FILE 560 BY COMMITTEE ON NATURAL RESOURCES (SUCCESSOR TO HSB 177) A BILL FOR An Act relating to financial assurance instruments and surety 1 bonds required for collecting, processing, or transporting 2 waste tires, and making penalties applicable. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2373HV (2) 89 js/ns

H.F. 560 Section 1. Section 455D.11A, subsection 5, Code 2021, is 1 amended to read as follows: 2 5. Financial assurance shall be provided in the amounts as 3 follows: 4 a. For a waste tire collection or processing site, the 5 financial assurance instrument for a waste tire collection 6 site shall provide coverage in an amount which is equivalent 7 to thirty-five cents per passenger tire equivalent collected 8 by the site prior to July 1, 1998. The financial assurance 9 instrument for a waste tire processing site shall provide 10 coverage in an amount which is equivalent to thirty-five cents 11 per passenger tire equivalent collected for processing by the 12 site which is above the three-day processing supply of tires 13 for the site as determined by the department. 14 b. For a waste tire collection or processing site, the The 15 financial assurance instrument for a waste tire collection site 16 shall provide coverage in an amount which that is equivalent 17 to eighty-five two dollars and fifty cents per passenger tire 18 equivalent collected by the site on or after July 1, 1998, 19 and the . The financial assurance instrument for a waste tire 20 processing site shall provide coverage in an amount which that 21 is equivalent to eighty-five two dollars and fifty cents per 22 passenger tire equivalent collected for processing by the site 23 which that is above the three-day processing supply of tires 24 for the site as determined by the department. 25 Sec. 2. Section 455D.11I, subsection 6, Code 2021, is 26 amended to read as follows: 27 6. The department shall require that a waste tire hauler 28 have on file with the department before the issuance or renewal 29 of a registration certificate, a surety bond executed by a 30 surety company authorized to do business in this state in the 31 sum of a minimum of ten one hundred fifty thousand dollars, 32 which bond shall be continuous in nature until canceled by the 33 surety. A surety shall provide at least thirty days’ notice 34 in writing to the waste tire hauler and to the department 35 -1- LSB 2373HV (2) 89 js/ns 1/ 3

H.F. 560 indicating the surety’s intent to cancel the bond and the 1 effective date of the cancellation. The surety bond shall 2 be for the benefit of the citizens of this state and shall 3 be conditioned upon the waste tire hauler’s willingness to 4 comply with this section . The surety’s liability under this 5 subsection is limited to the amount of the bond or the amount 6 of the damages or moneys due, whichever is less. However, this 7 subsection does not limit the amount of damages recoverable 8 from a waste tire hauler to the amount of the surety bond. The 9 bond shall be made in a form prescribed by the commissioner 10 of insurance and written by a company authorized by the 11 commissioner of insurance to do business in this state. 12 EXPLANATION 13 The inclusion of this explanation does not constitute agreement with 14 the explanation’s substance by the members of the general assembly. 15 This bill relates to financial assurance instruments 16 and surety bonds required for collecting, processing, or 17 transporting waste tires. 18 Under current law, an owner or operator of a waste tire 19 collection or processing site is required to obtain a permit 20 from the department of natural resources prior to operation of 21 the site and to provide to the department prior to approval 22 or renewal of a permit a financial assurance instrument that 23 provides coverage in an amount that is equivalent to 85 cents 24 per passenger tire equivalent collected by the site. The bill 25 increases the amount to $2.50 per passenger tire equivalent. 26 Current law requires a waste tire hauler to have on file with 27 the department before the issuance or renewal of a registration 28 certificate a surety bond of at least $10,000. The bill 29 increases the minimum required amount of a surety bond to 30 $150,000. 31 The bill also removes language relating to financial 32 assurance instruments required for waste tires collected by a 33 waste tire collection or processing site prior to July 1, 1998. 34 A violation of the requirements amended by the bill is 35 -2- LSB 2373HV (2) 89 js/ns 2/ 3

H.F. 560 punishable by a civil penalty not to exceed $10,000 per day of 1 the violation. 2 -3- LSB 2373HV (2) 89 js/ns 3/ 3