TITLE: CONCERNING RECYCLING PROGRAMS, AND, IN CONNECTION THEREWITH, MODIFYING THE DISTRIBUTION AND USAGE OF MONEYS APPROPRIATED FROM THE WASTE TIRE RECYCLING DEVELOPMENT CASH FUND AND EXTENDING THE REPEAL DATES FOR THE PLASTICS RECYCLING PROGRAM AND THE WASTE TIRE RECYCLING AND DISPOSAL PROGRAM, AND MAKING AN APPROPRIATION.

The bill would extend the program governing recycling of plastics and other materials from July 1, 1998, to July 1, 2008, and the program governing motor vehicle waste tires from July 1, 2000, to July 1, 2008. Under current law, the Department of Local Affairs retains 30 percent of the Waste Tire Recycling Development Cash Fund and 70 percent is transferred to the Economic Development Fund for allocation to the Colorado Housing and Finance Authority. The bill requires the Department of Local Affairs to retain 50 percent and allocate 50 percent to the Colorado Housing and Finance Authority. The uses for the department’s allocation from the Waste Tire Recycling Development Cash Fund by the department would also change. Forty percent of the total fund could be expended for:

∙ the disposal, recycling, or reuse of illegally dumped or stored waste tires;

∙ the encouragement of waste tire recycling by contract with private enterprises; and

∙ tire reuse or recycling incentives in state and local government public projects (limited to 10 percent).

STATE FISCAL IMPACT SUMMARY	FY 1998/99	FY 1999/2000
State Revenues General Fund Economic Development Fund (reduced transfer from Waste Tire Recycling Development Cash Fund)	($321,600)	($321,600)
State Expenditures General Fund Waste Tire Recycling Development Cash Fund	$321,600	$321,600
FTE Position Change	None	None
Local Government Impact — Changes in amounts of funds available to local governments.

Five percent would be allocated to the Colorado Advanced Technology Institute. The remaining five percent will be used for partial reimbursements to processors or end users of recycled tires as provided for in HB 98-1176 which was signed by the Governor on April 21, 1998.

In the 1998-99 Long Appropriations Bill, the Economic Development Fund would receive approximately $1,500,800 from the Waste Tire Recycling Development Cash Fund for use by the Colorado Housing and Finance Authority. This bill would reduce that appropriation to $1,072,000 (a $321,600 reduction) and retain the funds in the Waste Tire Recycling Development Cash Fund.

The amount allocated to the Division of Local Government, in the Department of Local Affairs, would increase to 50 percent of the Waste Tire Recycling Development Cash Fund and the amount allocated to the Colorado Housing and Finance Authority would be reduced to 50 percent. In FY 1998-99, the Division of Local Government’s allocation would be $1,072,000, a $321,600 increase over current law estimates. The bill would also change the purposes for which the division may disperse its share of the money from the Waste Tire Recycling Development Cash Fund. The table below shows the maximum distributions that would be allow under the bill.

Div. Of Local Government’s Distributions under SB 98-198
Cleanup and incentives (Private & Government) Cap to State & Local Governments -10 % of total fund	$857,600 214,400
Colorado Advanced Technology Institute - 5 % of total fund	107,200
HB 98-1176 - Reimbursements - 5 % of total fund	107,200
Total	$1,072,800

Local Governments received approximately $527,925 in grant money in FY 1997. The amount of grant money available would change depending upon the division’s allocation.

Current law appropriated $1,500,800 to the Economic Development Fund for use by the Colorado Housing and Finance Authority in FY 1998-99. This bill would reduce that transfer by $321,600 and retain the money in the Waste Tire Recycling Development Cash Fund.

The bill currently contains the correct appropriations authority which adjusts the FY 1998-99 Long Bill by increasing the Department of Local Affairs line item by $321,600 and reducing the Colorado Housing and Finance Authority Recycling Loans line item by $321,600. The appropriations clause also increases the Colorado Advanced Technology Institute’s line item by $107,200 in cash fund exempt spending authority.