Bill Description: Senate Bill 1393 would create a new tire waste recycling fund and impose a new tire recycling fee.

Rating: -5

Does it create, expand, or enlarge any agency, board, program, function, or activity of government? Conversely, does it eliminate or curtail the size or scope of government?

Senate Bill 1393 ludicrously asserts that "the disposal of waste tires is a matter of statewide concern" and therefore the "recycling of waste tires should be promoted" by the state because of its "health, environmental, and economic benefits."

In response to these unsubstantiated claims, Senate Bill 1393 would establish "in the state treasury the waste tire recycling fund, which shall be administered by the director and shall be subject to legislative appropriation."

This is an expansion of the size and scope of government.

(-1)

Does it transfer a function of the private sector to the government? Examples include government ownership or control of any providers of goods or services such as the Land Board’s purchase of a self-storage facility, mandatory emissions testing, or pre-kindergarten. Conversely, does it eliminate a function of government or return a function of government to the private sector?

Under Senate Bill 1393, a recycler of waste tires would be "entitled to" a $65 subsidy for "each ton of waste tires or material derived from waste tires converted to ground rubber, if a contract exists for the sale of the ground rubber for use as a component in an end product;" a $50 subsidy for "each ton of waste tires or material derived from waste tires recycled, other than as ground rubber;" and a $20 subsidy for "each ton of ground rubber used for a beneficial use."

The appropriateness and economic viability of recycling should be determined by the free market, not mandated or subsidized by government.

(-1)

Does it directly or indirectly create or increase any taxes, fees, or other assessments? Conversely, does it eliminate or reduce any taxes, fees, or other assessments?

Senate Bill 1393 would impose "a waste tire recycling fee of one dollar ($1.00) per new motor vehicle tire sold at retail." 

The fiscal note for Senate Bill 1393 estimates that the fee would transfer $2 million annually from tire purchasers to the state. 

(-1)

This fee has the potential for automatic increases under Section 39-6510, Idaho Code, which is created by Senate Bill 1393. It says, "Prior to July 1, 2029, if at any time during a fiscal year applications for reimbursement exceed moneys in the fund, the waste tire recycling fee shall be increased by five percent (5%)." The reimbursements referenced are the subsidies paid to recyclers of waste tires.

If this increase were realized for four consecutive fiscal years, the fee would stand at $1.22 per new tire, which would mean that the annual cost imposed on tire purchasers would reach $2.44 million. 

(-1)

Does it increase government spending (for objectionable purposes) or debt? Conversely, does it decrease government spending or debt?

The waste tire recycling fund would receive an estimated $2 million coercively expropriated from tire purchasers. It also would receive money derived from interest, penalties, and "moneys recovered by the attorney general" for regulatory violations related to the disposal of waste tires. 

The fund would spend money for "costs associated with cleanup of waste tire storage sites operating in violation of this chapter; … partial reimbursement of the cost of transporting, processing, and recycling of waste tires as provided in this chapter; and costs of the department in administering and enforcing this chapter."

(-1)