In compliance with the California Uniform Waste and Used Tire Manifest System, waste tire haulers, generators, and other end-use facilities must secure valid permits when hauling tires. And to get permit approval, they need to get a waste tire hauler surety bond.
But first, let’s describe what makes a waste tire hauler.
A waste tire hauler is any person or business that intends to transport or haul waste tires or materials derived from waste tires over the highways of the State of California.
A “waste tire” defines a tire that is unfit or no longer safe for continued use. Some waste tire haulers deliver waste tires to a recycling facility or specialty waste disposal point. Waste tire haulers may remove good tires for resale (or cull them) during the collection process before transporting waste tires to these waste tire facilities.
Waste tire haulers do not keep tires on any public or private property, even including their own. Instead, they deliver the collected tires directly to a state-licensed waste tire disposal point.
Why do you need to post waste tire hauler bonds?
To be a licensed waste tire hauler, you need to purchase a surety bond. Various jurisdictions require a waste tire hauler bond to those who deliver waste tires as part of a commercial business. This type of license and permit bond is also known as a scrap tire hauler bond, Here, we focus on the State of California. The California waste tire hauler bonds ensure that the scrap tires are only carried to licensed facilities and points that store, dispose or use tires in a way that protects public health, environment safety, and complies with all applicable state laws and regulations.
How does a waste tire hauler bond works?
Waste tire hauler bonds in California are designed to guarantee that the waste tire hauler conducts business in line with all local and state laws at the location designated on the surety bond contract.
Like all surety bonds, which are a form of agreement made between three parties, a waste tire hauler bond includes the principal (waste tire haulers or transporters), the obligee (the state requesting the bond, and the surety company (who issues and backs the bond).
The bond works where the surety vouches for the waste tire hauler’s reliability and credibility and supports their bond financially. If the hauler fails to comply with all the necessary obligations as specified in the contract, the obligee can file a claim against the waste tire hauler’s surety bond and demand compensation.
The surety looks into the issue if the obligee files a claim. If the claim is legit, the surety will compensate the obligee up to the full amount of the surety bond. In return, the waste tire hauler must reimburse the surety for the compensation it has paid out.
What are the prohibited actions included in this bond?
The State of California has specified these prohibited actions under a waste tire hauler bond.
These include, but not limited to:
- Hauling used or waste tires to unauthorized (not licensed and state-recognized) facilities
- Conducting a waste tire hauler business without having a registration permit
- Running an unlicensed vehicle to transport tires
If the principal (waste tire hauler) violates any of the terms of the bond contract and consumers are financially injured, the surety will compensate the consumers for any damages up to the full bond amount.
How do you become a waste tire hauler in California?
First, get that surety bond.
Then, register to become a legitimate waste tire hauler business.
The California state law requires waste tire haulers to carry a valid waste tire hauler registration. Tire Haulers can submit their registration applications to the California Department of Resources Recycling and Recovery (CalRecycle). Typically, you need to include the following information in your registration form:
- Business name
- Facility address
- Business model
- Surety bond proof
- Vehicle description sheet
When does a waste tire hauler bond expire?
A waste tire hauler bond runs concurrently with the period of the registration granted to the principal and shall remain in full force and effect for any renewals. The total liability of the surety shall not exceed $10,000, regardless of the number of registration periods for which the bond in question is in force. The surety is also entirely responsible for notifying the California Integrated Waste Management Board immediately upon the payment of funds.
The surety company may cancel the bond by sending a notice of cancellation by registered or certified mail to the Tire Hauler Compliance Section, Compliance Evaluation and Enforcement Division located in Sacramento, CA. At the same time, the surety shall mail or deliver a copy of the notice of cancellation to the principal.
How much do a waste tire hauler bond costs?
The total bond amount and the cost of the bond are not the same. The waste tire hauler bond amount is the maximum amount of payment that a surety may pay out in the case of one or more claims. The state usually determines the full amount. For waste tire haulers, it is $10,000.
The bond cost is a premium that the waste tire hauler must pay to acquire the bond. That cost is a small fraction of the total bond amount wherein the surety determines the exact percentage on an individual basis with no fixed price. Typically, sureties evaluate the financial capacity and credit rating of each applicant for bond approval.
What else do you need to do besides issuing a waste tire hauler surety bond?
In California, there is a waste tire hauler permit requirement. The California Tire Recycling Act, states that anyone who transports 10 or more used or waste tires in the state must hold a waste tire hauler permit.
While individuals may deliver waste tires on a one-time use basis (after being granted permission by local authorities under an Amnesty Program), anyone without authorization must be licensed when hauling waste tires.
To be registered as a waste tire hauler in the state, you must apply at the CalRecycle. Permits are issued and renewed annually (they expire on December 31).
- Complete the CalRecycle 60 registration form
- Post a $10,000 waste tire hauler bond
When applying for waste tire hauler permits in California, there are no application fees involved. However, registered applicants must act in compliance with the Waste Tire Hauler Manifest Program for used and waste tires.
Under the Manifest program, registered waste tire haulers are required to manifest (log and report) loads of tires they haul and transport. These trip logs and reporting inputs into the CalRecycle’s website.
For commercial carriers and agricultural tire haulers, they may apply for permit requirement exemptions under CalRecycle 241’s specific conditions.
In brief, waste tire hauler management is considered a serious business that needs to act in adherence to local and state laws and regulations. Note that a registered waste tire hauler is not a guarantee for the services rendered by the business. By getting bonded, a waste tire hauler business will ensure that it will comply with all the necessary obligations stated in the bond agreement. It also serves to provide public health, safety, and wellbeing, as well as keeps in line with environmental regulations.