TITLE: CONCERNING WASTE TIRE RECYCLING, AND, IN CONNECTION THEREWITH, DIRECTING THE DEPARTMENT OF LOCAL AFFAIRS TO USE MONEYS FROM THE WASTE TIRE RECYCLING DEVELOPMENT CASH FUND TO PROVIDE PARTIAL REIMBURSEMENT TO WASTE TIRE PROCESSORS AND END USERS.

The reengrossed bill would change the state waste tire recycling program. The appropriation from the Waste Tire Recycling Development Cash Fund to the Colorado Housing and Finance Authority would be reduced 20 percent. The moneys retained in the fund would be used to increase the maximum amount of the fund that would be used to cleanup illegally dumped waste tires by 20 percent. At least forty percent of the remaining funds would be used for the partial reimbursement of costs incurred by processors of waste tires for recycling and end users of processed waste tires until July 1, 2003. The reimbursement rate would be set at $20 per ton of raw waste. The bill would become effective at 12:01 a.m. on the day following the ninety-day period after adjournment sine die of the General Assembly, or on the date of the official declaration of the vote of the people as proclaimed by the Governor, if a referendum petition is filed pursuant to Article V, Section 1 (3) of the State Constitution.

STATE FISCAL IMPACT SUMMARY	FY 1998/99	FY 1999/2000
State Revenues General Fund Economic Development Fund (Reduces transfer from the Waste Tire Recycling Development Cash Fund)	($246,365)	($246,365)
State Expenditures General Fund
FTE Position Change	None	None
Local Government Impact — Decrease in grants available to counties for cleaning up illegally dumped tires.

Under the current law, the Economic Development Fund received approximately $1,231,826 from the Waste Tire Recycling Development Cash Fund. This bill would reduce that transfer by 20 percent and retain the funds in the Waste Tire Recycling Development Cash Fund. For the purposes of this fiscal note, it is assumed that the revenues deposited into the Waste Tire Recycling Development Cash Fund in FY 1998-99 will be the same as in FY 1997-98.

The reengrossed bill would change the purposes for dispersing moneys from the Waste Tire Recycling Development Cash Fund. The amount the department would provide to counties under the grant program would increase from 30 percent to 50 percent. However, at least 40 percent of the fund would be used to reimburse waste tires processors and end users for recycling and using processed waste tires at a rate of $20 per ton. There would not be a change in the amount of the Department of Local Affairs’ expenditures from the Waste Tire Recycling Development Cash.

Local Governments received approximately $527,925 in grant money in FY 1997. The estimated amount of grant money available would decrease by 20 percent of the fund total in FY 1998-99. The reengrossed bill would leave 50 percent of the fund for the Department of Local Affairs. However, at least 40 percent of the fund would be used to reimburse waste tires processors and end users for recycling and using processed waste tires at a rate of $20 per ton. The remaining 10 percent would be left for grants to local governments.

Current law appropriated $1,231,826 to the Economic Development Fund for use by the Colorado Housing and Finance Authority in FY 1997-98. The reengrossed bill would reduce that transfer by 20 percent and retain the money in the Waste Tire Recycling Development Cash Fund.

This fiscal note implies no additional spending authority would be required to implement this bill.