House File 560 - IntroducedA Bill ForAn Act 1relating to financial assurance instruments and surety
2bonds required for collecting, processing, or transporting
3waste tires, and making penalties applicable.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  Section 455D.11A, subsection 5, Code 2021, is
2amended to read as follows:
   35.  Financial assurance shall be provided in the amounts as
4follows:

   5a.  For a waste tire collection or processing site, the
6financial assurance instrument for a waste tire collection
7site shall provide coverage in an amount which is equivalent
8to thirty-five cents per passenger tire equivalent collected
9by the site prior to July 1, 1998. The financial assurance
10instrument for a waste tire processing site shall provide
11coverage in an amount which is equivalent to thirty-five cents
12per passenger tire equivalent collected for processing by the
13site which is above the three-day processing supply of tires
14for the site as determined by the department.
   15b.  For a waste tire collection or processing site, the The
16 financial assurance instrument for a waste tire collection site
17shall provide coverage in an amount which that is equivalent
18to eighty-five two dollars and fifty cents per passenger tire
19equivalent collected by the site on or after July 1, 1998,
20and the
. The financial assurance instrument for a waste tire
21processing site shall provide coverage in an amount which that
22 is equivalent to eighty-five two dollars and fifty cents per
23passenger tire equivalent collected for processing by the site
24which that is above the three-day processing supply of tires
25for the site as determined by the department.
26   Sec. 2.  Section 455D.11I, subsection 6, Code 2021, is
27amended to read as follows:
   286.  The department shall require that a waste tire hauler
29have on file with the department before the issuance or renewal
30of a registration certificate, a surety bond executed by a
31surety company authorized to do business in this state in the
32sum of a minimum of ten one hundred fifty thousand dollars,
33which bond shall be continuous in nature until canceled by the
34surety. A surety shall provide at least thirty days’ notice
35in writing to the waste tire hauler and to the department
-1-1indicating the surety’s intent to cancel the bond and the
2effective date of the cancellation. The surety bond shall
3be for the benefit of the citizens of this state and shall
4be conditioned upon the waste tire hauler’s willingness to
5comply with this section. The surety’s liability under this
6subsection is limited to the amount of the bond or the amount
7of the damages or moneys due, whichever is less. However, this
8subsection does not limit the amount of damages recoverable
9from a waste tire hauler to the amount of the surety bond. The
10bond shall be made in a form prescribed by the commissioner
11of insurance and written by a company authorized by the
12commissioner of insurance to do business in this state.
13EXPLANATION
14The inclusion of this explanation does not constitute agreement with
15the explanation’s substance by the members of the general assembly.
   16This bill relates to financial assurance instruments
17and surety bonds required for collecting, processing, or
18transporting waste tires.
   19Under current law, an owner or operator of a waste tire
20collection or processing site is required to obtain a permit
21from the department of natural resources prior to operation of
22the site and to provide to the department prior to approval
23or renewal of a permit a financial assurance instrument that
24provides coverage in an amount that is equivalent to 85 cents
25per passenger tire equivalent collected by the site. The bill
26increases the amount to $2.50 per passenger tire equivalent.
   27Current law requires a waste tire hauler to have on file with
28the department before the issuance or renewal of a registration
29certificate a surety bond of at least $10,000. The bill
30increases the minimum required amount of a surety bond to
31$150,000.
   32The bill also removes language relating to financial
33assurance instruments required for waste tires collected by a
34waste tire collection or processing site prior to July 1, 1998.
   35A violation of the requirements amended by the bill is
-2-1punishable by a civil penalty not to exceed $10,000 per day of
2the violation.
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