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Committee approves bill to restructure tire recycling fee to shore up program funding
Summary
Senate Bill 238, sponsored by Senator John Payton, passed the committee after testimony that restructuring the rim-removal fee and collecting recycling fees at point-of-sale will stabilize waste-tire program funding and reduce future cleanup costs.
Senate Bill 238, intended to stabilize Arkansas’ waste-tire program finances, passed the Public Health, Welfare and Labor Committee after sponsor and industry testimony.
Senator John Payton (District 22) told committee members the state consolidated 11 tire boards into four in recent years but the program remains insolvent without dedicated revenue. He said SB 238 would restructure the rim-removal fee (renaming it the tire-recycling fee), collect it at point-of-sale on new tires (including tires sold on new vehicles), and expand the fee to cover tires that come on new automobiles.
Payton said the measure is intended to avoid higher taxpayer costs later: he cited a handout showing abatement costs at roughly $9.67 per illegally dumped tire versus under $3 per tire when processed properly through the disposal system. He also explained the bill sets a $3 fee for regular tires, allows boards to set a $5 fee for large tires and up to $30 for agricultural tires, and would close a gap between current reimbursement rates and program costs. Craig Douglas, director of District 2 Waste Tire Program, said processors such as Nucor are already buying crumb rubber and that a functioning in‑state processing infrastructure is key.
Committee members asked about details, rural transport costs and current reimbursement rates; Douglas said the DEQ‑approved reimbursement averages about $2.85 per tire while the legislative audit calculated net available revenue from the $3 rim-removal fee at $2.31 per tire. After sponsor remarks and questions, Senator Payton moved to pass; the committee approved the bill by voice vote.
The transcript records discussion of program insolvency, the point-of-sale collection mechanism, proposed per‑tire fees by tire type, DEQ reimbursement figures and legislative-audit revenue estimates.
