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Article 1
General
Section 18420

Article 2
Review of Permit Applications
Section 18423-18424

Article 3
Permit Issuance, Review, Revision, Revocation, Denial, Suspension, Reinstatement , Change of Owner, Operator, and/or Address
Sections 18425-18428

Article 3.5
Waste Tire Facility Violations and Enforcement
Section 18429

Article 4
Permit Application, Exemption, Exclusion, and Beneficial Reuse
Sections 18431-18434

Article 5
Closure
Sections 18440-18441

Article 6
Inspection of Waste Tire Facilities
Section 18443

Article 7
Records
Section 18447-18448

Article 8.5
Waste Tire Hauler Registration and Manifesting Requirements for Waste and Used Tire Haulers, Retreaders, Waste and Used Tire Generators, and Waste and Used Tire End-Use Facilities
Sections 18449-18458
Sections 18459-18466

Article 9
Financial Assurance Requirements for Closure of a Major Waste Tire Facility
Sections 18470-18482

Article 10
Financial Responsibility for Operating Liability Claims of Major Waste Tire Facilities
Sections 18485-18499

Article 11
Financial Assurances Enforcement Procedures for Major Waste Tire Facilities
Sections 18499.1-18499.9

Appendix A

Regulations: Title 14, Natural Resources--Division 7, CIWMB

Chapter 6. Permitting of Waste Tire Facilities and Waste Tire Hauler Registration and Tire Manifests

Article 10. Financial Responsibility for Operating Liability Claims of Major Waste Tire Facilities

Section 18485. Scope and Applicability.
(a) This Article requires operators of major waste tire facilities to demonstrate adequate financial ability to compensate third parties for bodily injury and property damage caused by facility operation.

(b) Operators of all major waste tire facilities, except state and federal operators, shall comply with the requirements of this Article upon application for issuance of a major waste tire facilities permit pursuant to Chapter 6, Article 1, section 18420.

Note:

Authority cited:
Section 40502, 42820 of the Public Resources Code.

Reference:
Section 42821 of the Public Resources Code.

Section 18486. Definitions.
(a) When used in this Article, the following terms shall have the meanings described in Chapter 5, Article 3.5, section 18281:

(1) "Assets";
(2) "Current assets";
(3) "Current liabilities"
(4) "Financial reporting year";
(5) "Liabilities";
(6) "Net working capital"
(7) "Net worth";
(8) "Parent corporation"; and
(9) "Tangible net worth".

(b) When used in this Article, the following terms shall have the meanings given below:

(1) "Accidental occurrence" means an event, including pollution exposure, which occurs during the operation of a major waste tire facility prior to closure, that results in bodily injury and/or property damage, and includes continuous or repeated exposure to conditions, neither expected nor intended from the standpoint of the facility operator.

(2) "Admitted carrier" means an insurance company entitled to transact the business of insurance in this state, having complied with the laws imposing conditions precedent to transactions of such business.

(3) "Auto" means a land motor vehicle, trailer or semi-trailer designed for travel on public roads, including any attached machinery or equipment. But "auto" does not include "mobile equipment."

(4) "Bodily injury" means any injury to the body, sickness or disease sustained by a person, including death resulting from any of these at any time. Damages because of "bodily injury" include damages claimed by any person or organization for care, loss of services or death resulting at any time from the "bodily injury." "Bodily injury" excludes:

(A) "Bodily injury" expected or intended from the standpoint of the operator. This exclusion does not apply to "bodily injury" resulting from the use of reasonable force to protect persons or property.

(B) "Bodily injury" for which the operator is obligated to pay damages by reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability for damages that the operator would have in the absence of the contract or agreement.

(C) Any obligation of the operator under a workers compensation, disability benefits or unemployment compensation law or any similar law.

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(D) "Bodily injury" to:

1. An employee of the operator arising out of and in the course of employment by the operator; or

2. The spouse, child, parent, brother or sister of that employee as a consequence of subsection (b)(4)(D)1 above.

This exclusion applies:

a. Whether the operator may be liable as an employer or in any other capacity; and

b. To any obligation to share damages with or repay someone else who must pay damages because of the injury.

(E) "Bodily injury" arising out of the ownership, maintenance, use or entrustment to others of any aircraft, "auto" or watercraft owned or operated by or rented or loaned to any operator. Use includes operation and loading or unloading. This exclusion does not apply to:

1. Parking an "auto" on, or on the ways next to, premises the operator owns or rents, provided the "auto" is not owned by or rented or loaned to the operator;

2. "Bodily injury" arising out of the operation of any of the equipment listed in paragraph (F)2. or (F)3. of the definition of "mobile equipment", found in subsection 12 below.

(5) "Corporate guarantee" means a contract meeting the requirements of section 18494 of this Article through which a guarantor promises that, if an operator fails to pay a claim by a third party for bodily injury and/or property damage caused by an accidental occurrence, the guarantor shall pay the claim on behalf of the operator.

(6) "Excess coverage" means assurance for third party bodily injury and property damage costs that are above a specified level (i.e., above the primary coverage level or a limit of lower excess coverage) but up to a specified limit.

(7) "Financial means test" means the financial assurance mechanism specified in section 18493 of this Article by which an operator demonstrates his or her ability to pay third party claims for bodily injury and property damage caused by accidental occurrences by satisfying the prescribed set of financial criteria.

(8) "Government securities" means financial obligations meeting the requirements of section 18490 of this Article that are issued by a federal, state, or local government, including but not limited to, general obligation bonds, revenue bonds, and certificates of participation.

(9) "Guarantor" means a parent corporation, or a corporation with a substantial business relationship to the operator who guarantees payment of a present or future obligation(s) of an operator.

(10) "Insurance" means a contract meeting the requirements of section 18491 of this Article by which an insurer promises to pay a claim by a third party for bodily injury and property damage caused by an accidental occurrence.

(11) "Legal defense costs" means expenses that an operator or a provider of financial assurance incurs in defending claims brought:

(A) By or on behalf of a third party for bodily injury and/or property damage caused by an accidental occurrence; or

(B) By any person to enforce the terms of a financial assurance mechanism.

(12) "Mobile equipment" means any of the following types of land vehicles, including any attached machinery or equipment:

(A) Bulldozers, farm machinery, forklifts and other vehicles designed for use principally off public roads;

(B) Vehicles maintained for use solely on or next to premises the operator owns or rents;

(C) Vehicles that travel on crawler treads;

(D) Vehicles, whether self-propelled or not, maintained primarily to provide mobility to permanently mounted:

1. Power cranes, shovels, loaders, diggers or drills; or

2. Road construction or resurfacing equipment such as graders, scrapers or rollers;

(E) Vehicles not described in (A), (B), (C) or (D) above that are not self-propelled and are maintained primarily to provide mobility to permanently attached equipment of the following types:

1. Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting and well servicing equipment; or

2. Cherry pickers and similar devices used to raise or lower workers;

(F) Vehicles not described in (A), (B), (C) or (D) above maintained primarily for purposes other than the transportation of persons or cargo. However, self-propelled vehicles with the following types of permanently attached equipment are not "mobile equipment" but will be considered "autos:"

1. Equipment designed primarily for:

a. Snow removal;

b. Road maintenance, but not construction or resurfacing;

c. Street cleaning;

2. Cherry pickers and similar devices mounted on automobile or truck chassis and used to raise or lower workers; and

3. Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting and well servicing equipment.

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(13) "Primary coverage" means the first priority coverage for third party bodily injury and property damage costs up to a specified limit when used in combination with other coverage.

(14) "Property damage" means physical injury to tangible property, including all resulting loss of use of that property, or loss of use of tangible property that is not physically injured. "Property damage" excludes:

(A) "Property damage" expected or intended from the standpoint of the operator.

(B) "Property damage" for which the operator is obligated to pay damages by reason of the assumption of liability in a contract or agreement. This exclusion does not apply to liability for damages that the operator would have in the absence of the contract or agreement.

(C) "Property damages" arising out of the ownership, maintenance, use or entrustment to others of any aircraft, "auto" or watercraft owned or operated by or rented or loaned to any operator. Use includes operation and loading and unloading. This exclusion does not apply to:

1. Parking an "auto" on, or on the ways next to, premises the operator owns or rents, provided the "auto" is not owned by or rented or loaned to the operator;

2. "Property damage" arising out of the operation of any of the equipment listed in paragraph (F)2. or (F)3. of the definition of "mobile equipment", found in subsection 12 above.:

(D) "Property damage" to

1. Property the operator owns, rents, or occupies;

2. Premises the operator sells, gives away or abandons, if the "property damage" arises out of any part of those premises;

3. Property loaned to the operator;

4. Personal property in the operator's care, custody or control;

5. That particular part of real property on which the operator or any contractors or subcontractors working directly or indirectly on the operator's behalf are performing operations, if the "property damage" arises out of those operations; or

6. That particular part of any property that must be restored, repaired or replaced because the operator's work was incorrectly performed on it.

(15) "Provider of financial assurance" means an entity, other than the operator, that provides financial assurance to the operator of a major waste tire facility, including a trustee, an insurer, or a guarantor.

(16) "Substantial business relationship" means a business relationship that arises from a pattern of recent or ongoing business transactions.

Note:

Authority cited:
Section 40502, 42820, Public Resources Code.

Reference:
Section 42821, Public Resources Code.

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Section 18487. Amount of Required Coverage.
(a) An operator of one or more major waste tire facilities shall demonstrate financial responsibility for compensating third parties for bodily injury and property damage caused by accidental occurrences, including exposures to pollution.

(b) The required amounts of coverage shall be:

(1) $500,000 per occurrence with a $500,000 annual aggregate for each facility permitted for 5,000 to 200,000 tires or tire equivalents; or

(2) $1,000,000 per occurrence with a $1,000,000 annual aggregate for each facility permitted for 200,001 tires or more or corresponding tire equivalents.

(c) The required amounts of coverage shall be exclusive of legal defense costs, deductibles and self-insured retentions.

(d) The required amounts of coverage shall apply exclusively to an operator's facility or facilities located in the State of California.

(e) An operator may use one or more mechanisms to provide proof of financial assurance.

(f) If a trust fund or government securities is depleted to compensate third parties for bodily injuries and/or property damages caused by accidental occurrences, the operator shall, within one year of the depletion, demonstrate financial responsibility for the full amount of coverage required by section (a) by replenishing the depleted mechanism(s) and/or acquiring additional financial assurance mechanism(s).

Note:

Authority cited:
Section 40502, 42820, Public Resources Code.

Reference:
Section 4282, Public Resources Code.

Section 18488. Acceptable Mechanisms and Combinations of Mechanisms.
(a) Subject to the limitations of subsections (c) and (d) of this section, an operator shall use any one, or any combination of the mechanisms which are defined in the following sections:

(1) Section 18489, Trust Fund

(2) Section 18490, Government Securities

(3) Section 18491, Insurance

(4) Section 18492, Self-Insurance and Risk Management

(5) Section 18493, Financial Means Test

(6) Section 18494, Corporate Guarantee

(7) Section 18494.5, State Approved Mechanism

(b) If a combination of mechanisms are chosen, the operator shall designate one mechanism as "primary" and all others as "excess" coverage.

(c) The government securities and self-insurance and risk management mechanisms are acceptable only for major waste tire facilities operated by government agencies.

(d) The financial means test and corporate guarantee mechanisms are acceptable only for major waste tire facilities operated by private firms.

(1) A private operator may combine a financial means test with a corporate guarantee only if, for the purpose of meeting the requirements of the financial means test, the financial statements of the operator are not consolidated with the financial statements of the guarantor.

Note:

Authority cited:
Section 40502, 42820, Public Resources Code.

Reference:
Section 42821, Public Resources Code.

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Section 18489. Trust Fund.
(a) The trust fund shall have a trustee that is authorized to act as a trustee and whose trust operations are regulated and examined by a federal or state agency.

(b) The trust agreement shall be established by using form CIWMB 145 "Trust Agreement" (12/91) which is incorporated herein by reference; and also shall contain original signature of grantor and trustee. (See Appendix A.)

(c) If, at any time, the value of the trust fund is greater than the required amount of coverage minus the amount of coverage demonstrated by another mechanism, the operator may request in writing that the Board or its designee authorize the release of the excess funds. The Board or its designee shall review the request, and if any excess funds are verified, the Board or its designee shall instruct the trustee to release the funds.

Note:

Authority cited:
Section 40502, 42820 of the Public Resources Code.

Reference:
Section 42821 of the Public Resources Code.

Section 18490. Government Securities.
(a) The terms of issuance of government securities shall specify that proceeds from the sale of the securities shall be deposited into a financial assurance mechanism that meets the requirements of section 18490(b) below.

(b) The securities shall have been issued and the proceeds already deposited into the financial assurance mechanism that provides equivalent protection to a trust fund by meeting the following requirements:

(1) Proceeds from the sale of securities shall be used exclusively to pay claims by third parties for bodily injury and property damage caused by accidental occurrences and shall remain inviolate against all other claims, including any claims by the operator, the operator's governing body, and the creditors of the operator and its governing body;

(2) The financial operations of the provider of the financial assurance are regulated by a federal or state agency, or the provider is otherwise certain to maintain and disburse the assured funds properly;

(3) If the provider of financial assurance has authority to invest revenue deposited into the mechanism, the provider shall exercise investment discretion similar to a trustee; and

(4) The mechanism meets other requirements that the Board or its designee determines are necessary to ensure that the assured funds shall be available in a timely manner.

Note:

Authority cited:
Section 40502, 42820 of the Public Resources Code.

Reference:
Section 42821 of the Public Resources Code.

Section 18491. Insurance.
(a) The issuer of the insurance policy shall be an insurer that, at a minimum, is licensed by the California Department of Insurance to transact the business of insurance in the State of California as an admitted carrier.

(b) If coverage is not available as specified in (a) above, the operator may seek coverage by an insurer which, at a minimum, shall be eligible to provide insurance as an excess or surplus lines insurer in California.

(c) If coverage is obtained as described in section (b) of this section, the insurance shall be transacted by and through a surplus line broker currently licensed under the regulations of the California Department of Insurance and upon terms and conditions prescribed in the California Insurance Code (CIC), Division 1, Part 2, Chapter 6.

(d) The Board or its designee may object to the use of any insurer at anytime, whether before or after placement of coverage based on information obtained from, but not limited to, the Surplus Line Association of California, Best's Insurance Reports, and/or the Non-Admitted Insurers Quarterly List.

(e) Each insurance policy shall be either:

(1) Evidenced by a "Certificate of Liability Insurance" established by using form CIWMB 146 "Certificate of Liability Insurance" (12/91), which is incorporated herein by reference (See Appendix A.); or

(2) Amended and evidenced by a "Liability Insurance Endorsement" established by using form CIWMB 147 "Liability Insurance Endorsement" (12/91), which is incorporated herein by reference. (See Appendix A.)

Note:

Authority cited:
Section 40502 and 42820 of the Public Resources Code.

Reference:
Section 42821 of the Public Resources Code.

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Section 18492. Self-Insurance and Risk Management.
(a) To use the self-insurance and risk management mechanism an operator shall:

(1) Be a public entity;

(2) Be self-insured;

(3) Employ a risk manager;

(4) Have an active safety and loss prevention program that seeks to minimize the frequency and magnitude of third party damages caused by accidental occurrences and other self-insured losses; and

(5) Have procedures for and a recent history of timely investigation and resolution of any claims for third party damages caused by accidental occurrences and other self-insured losses; and

(6) Satisfy any other reasonable conditions including but not limited to the submittal of audited financial statements that the Board or its designee determines are needed to ensure that the assured amount of funds shall be available in a timely manner.

(b) This coverage shall be demonstrated by using form CIWMB 148 (12/91), "Certificate of Self-Insurance and Risk Management", which is incorporated herein by reference. (See Appendix A.)

Note:

Authority cited:
Section 40502, 42820 of the Public Resources Code.

Reference:
Section 42821 of the Public Resources Code.

Section 18493. Financial Means Test.
(a) To pass the financial means test, an operator or a guarantor shall be a private entity and shall meet the criteria of subsection (c) or (d) based on independently audited year-end financial statements for the latest completed fiscal year.

(b) The phrase "amount of liability coverage to be demonstrated by the test" as used in subsections (c) and (d) refers to the amount of liability coverage required by section 18487 of this Article.

(c) The operator or guarantor shall have:

(1) Net working capital and tangible net worth each at least six times the amount of liability coverage to be demonstrated by the test; and

(2) Tangible net worth of at least $10 million; and

(3) Assets located in the United States amounting to at least 90 percent of its total assets or at least six times the amount of liability coverage to be demonstrated by the test.

(d) The operator or guarantor shall have:

(1) A current rating for its most recent bond issuance of AAA, AA, A, or BBB issued by Standard and Poor's or Aaa, Aa, A, or Baa as issued by Moody's; and

(2) Tangible net worth of at least six times the amount of liability coverage to be demonstrated by the test; and

(3) Tangible net worth of at least $10 million; and

(4) Assets located in the United States amounting to at least 90 percent of its total assets or at least six times the amount of liability coverage to be demonstrated by the test.

(e) Within 90 days after the close of each financial reporting year, the operator or the guarantor shall submit the following items to the Board or its designee and, in the case of a guarantor, to the operator;

(1) A letter on the operator's or guarantor's official letterhead stationary that is worded and completed as specified in form CIWMB 149 "Instructions for the Letter from the Chief Financial Officer Financial Means Test for Liability" (12/91), which is incorporated herein by reference and which contains an original signature of the operator's or guarantor's chief financial officer. (See Appendix A.) An operator or guarantor shall use form CIWMB 149 (12/91) to demonstrate or guarantee financial responsibility for liability coverage only. If the operator or guarantor is using a similar financial means test to demonstrate liability coverage for facilities in California or other states, such as but not limited to, hazardous waste treatment, storage, or disposal facilities, or solid waste landfills, or other waste tire facilities, the operator shall list all facilities covered by the financial means test, whether in California or not.

(2) A copy of an independent certified public accountant's report on examination of the operator's or guarantor's financial statements for the latest completed fiscal year, with a copy of the operator's or guarantor's financial statements for the latest completed fiscal year.

(3) A letter from an independent certified public accountant stating that:

(A) He or she has compared the data in the letter in subsection (e)(1), from the chief financial officer specified as having been derived from the financial statements for the latest completed fiscal year of the operator or the guarantor, with the amounts in the financial statements; and

(B) Based on the comparison, no matters came to his or her attention that caused him or her to believe that the specified data should be adjusted.

(4) If the operator or the guarantor is required to make such a filing, a copy of the operator's or guarantor's most recent form 10-K filed with the U.S. Securities and Exchange Commission.

(f) The Board or its designee may require updated financial statements at any time from the operator or guarantor. If the Board or its designee finds that the operator no longer meets the financial means test requirements of subsections (c) or (d) based on such reports or other information, including but not limited to, credit reports and reports from other state agencies, the operator shall obtain alternate coverage within 60 days after receiving the notification of such a finding.

(g) If an operator using the financial means test fails to meet the requirements of the financial means test under subsections (c) or (d), the operator shall obtain alternate coverage within 60 days after the determination of such failure.

(h) If the operator fails to obtain alternate coverage within the times specified in subsections (f) or (g), the operator shall notify the Board or its designee by certified mail within 10 days of such failure.

Note:

Authority cited:
Section 40502, 42820 of the Public Resources Code.

Reference:
Section 42821 of the Public Resources Code.

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Section 18494. Corporate Guarantee.
(a) The guarantor shall be:

(1) A parent corporation of the operator; or

(2) A firm whose parent corporation is also the parent corporation of the operator; or

(3) A firm engaged in a substantial business relationship with the operator and issuing the corporate guarantee as an act incident to that business relationship.

(b) The guarantor shall meet the requirements of the financial means test under section 18493(c) or (d) of this Article based on the guarantor's audited year-end financial statements.

(c) The corporate guarantee shall be worded and completed as specified by form CIWMB 150 "Corporate Guarantee" (12/91), which is incorporated herein by reference. (See Appendix A.)

(d) The terms of the corporate guarantee shall specify that if the operator fails to satisfy a judgment or an award for bodily injury and property damage to third parties caused by accidental occurrences, or fails to pay an amount agreed in settlement of a claim arising from or alleged to arise from such injury and damage, the guarantor shall satisfy such judgment, award, or settlement agreement up to the limits of the corporate guarantee.

(e) If the guarantor fails to meet the requirements of the financial means test under section 18493(c) or (d) of this Article or wishes to terminate the corporate guarantee, the guarantor shall send notice of such failure or termination by certified mail to the operator and the Board or its designee within 90 days after the end of that financial reporting year. The corporate guarantee shall terminate no less than 60 days after the date that the operator and the Board or its designee have received the notice of such failure or termination, as evidenced by the return receipts. The guarantor shall establish alternate coverage as specified in section 18488 of this Article on behalf of the operator within 60 days after such notice, unless the operator has done so.

(f) The Board or its designee may require updated financial statements at any time from a guarantor. If the Board or its designee finds, on the basis of such reports or information from other sources, including but not limited to, credit reports and reports from other state agencies, that the guarantor no longer meets the financial means test requirements of section 18493(c) or (d) of this Article, or any requirements of section 18494 of this Article, the Board or its designee shall notify the guarantor and operator of such finding by certified mail. The guarantor shall establish alternate coverage as specified in section 18488 of this Article on behalf of the operator within 60 days after such notice, unless the operator has done so.

Note:

Authority cited:
Section 40502, 42820 of the Public Resources Code.

Reference:
Section 42821 of the Public Resources Code.

Section 18494.5. State Approved Mechanism.
(a) An operator may satisfy the requirements of this Chapter by obtaining any other mechanism that meets the following criteria, and that is approved by the Board.

(1) The financial assurance mechanism(s) must ensure that the amount of funds assured is sufficient to cover the costs assured when needed;

(2) The financial assurance mechanism(s) must ensure that funds will be available in a timely fashion when needed;

(3) The financial assurance mechanism(s) must be obtained by the operator before the first waste is received at a new facility and before any other financial mechanism is cancelled at existing facilities. The financial mechanism must be maintained until the operator is released from the financial assurance requirements under this Chapter.

(4) The financial assurance mechanism(s) must be legally valid, binding, and enforceable under California and Federal law.

Note:

Authority cited:
Sections 40502 and 42820, Public Resources Code.

Reference:
Section 42821, Public Resources Code.

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Section 18495. Substitution of Mechanisms by Operator.
(a) An operator may substitute any alternate financial assurance mechanism(s) as described in sections 18489 through 18494 of this Article, provided that at all times the operator maintains an effective mechanism or a combination of effective mechanisms, that satisfies the requirements of section 18488 of this Article, and informs the Board or its designee of such substitution.

(b) In the event an operator obtains alternate financial assurance, it may request that the Board or its designee terminate or authorize the termination of the previous financial assurance mechanism. The operator shall submit such a request in writing with evidence of alternate financial assurance.

Note:

Authority cited:
Section 40502, 42820 of the Public Resources Code.

Reference:
Section 42821 of the Public Resources Code.

Section 18496. Cancellation or Nonrenewal by a Provider of Financial Assurance.
(a) Except as otherwise provided in section 18497 of this Article, a provider of financial assurance may cancel or not renew a financial assurance mechanism by sending a notice of termination by certified mail to the operator and the Board or its designee.

(b) Termination of a corporate guarantee shall occur no less than 60 days after the date on which the operator and the Board or its designee have received the notice of termination, as evidenced by the return receipts.

(c) Cancellation or nonrenewal of insurance or self-insurance and risk management coverage shall occur no less than 60 days after the date on which the operator and the Board or its designee have received the notice of termination, as evidenced by the return receipts; except in the case of non-payment of insurance premiums, in which case cancellation shall occur no less than 10 days after the date on which the operator and the Board or its designee have received the notice of termination.

Note:

Authority cited:
Section 40502, 42820 of the Public Resources Code.

Reference:
Section 42821 of the Public Resources Code.

Section 18497. Bankruptcy or Other Incapacity of Operator or Provider of Financial Assurance.
(a) Within 10 days after commencement of a voluntary or involuntary proceeding under the Bankruptcy Code, Title 11 U.S.C. sections 101-1330 in which:

(1) The operator is named as debtor, the operator shall notify the Board or its designee by certified mail of such commencement.

(2) A provider of financial assurance is named as debtor, such provider shall notify the operator and the Board or its designee by certified mail of such commencement.

(b) An operator shall be deemed to be without the required financial assurance in the event of bankruptcy of its provider of financial assurance, or in the event of a suspension or revocation of the authority of the provider of financial assurance to issue a mechanism. If such an event occurs, the operator shall demonstrate alternate financial assurance as specified in this Article within 60 days after receiving notice of the event. If the operator fails to obtain alternate financial assurance within 60 days, the operator shall notify the Board or its designee within 10 days of such failure.

Note:

Authority cited:
Section 40502, 42820 of the Public Resources Code.

Reference:
Section 42821 of the Public Resources Code.

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Section 18498. Recordkeeping and Reporting.
(a) An operator shall maintain evidence of all financial assurance mechanisms until the operator is released from the requirements as specified in section 18499 of this Article. This evidence shall be maintained at each major waste tire facility, whenever possible, or at an alternate, designated location approved by the Board or its designee and which is accessible to the operator, and available for Board staff review.

(b) An operator shall maintain the following types of evidence, and shall maintain an original or copy of each mechanism used to demonstrate financial responsibility under this Article:

(1) Trust Fund. An operator using a trust fund shall maintain a copy of the trust agreement and statements verifying the current balance of the fund.

(2) Government Securities. An operator using government securities shall maintain a copy of the following:

(A) All official resolutions, forms, letters, or other pertinent documents generated to issue the securities;

(B) The terms of issuance of the securities; and

(C) With respect to the mechanism into which the funds generated by the issuance are deposited

1. Identify the major waste tire facilities covered by the fund and the amount of third party liability coverage;

2. Include a letter from an authorized officer of the institution maintaining the mechanism identifying the amount of funds provided by the mechanism as of the anniversary date of each mechanism for each year; and

3. Include a copy of the evidence documenting that the mechanism meets the requirements of section 18490(b) of this Article.

(3) Insurance. An operator using insurance shall maintain the original or a copy of the insurance policy in addition to the original or a copy of the liability insurance endorsement or the certificate of liability insurance.

(4) Self-Insurance and Risk Management. An operator using self-insurance and risk management shall maintain:

(A) The name and qualifications of the currently employed risk manager;

(B) Pertinent documents verifying the ongoing activity of the operator's safety and loss prevention program; and

(C) Pertinent documents showing procedures for timely investigation and resolution of any claims for third party damages caused by accidental occurrences and other self-insured losses.

(5) Financial Means Test. An operator using a financial means test shall maintain a copy of the information specified in section 18493(e) of this Article.

(6) Corporate Guarantee. An operator using a corporate guarantee shall maintain documentation of the corporate guarantee as specified in section 18494(a),(b),and (c) of this Article.

(c) An operator shall submit the documentation of current evidence of financial responsibility listed in section 18498(b) to the Board or its designee whenever a financial assurance mechanism is established or amended:

(1) In the case of a trust fund such documentation shall include the original mechanism and a copy of the current statement verifying the balance of the account;

(2) In the case of government securities such documentation shall include the information as specified in section 18498(b)(2) of this Article;

(3) In the case of a financial means test, or a corporate guarantee, such documentation shall include the original mechanism; or

(4) In the case of insurance or self-insurance and risk management, such documentation shall include the original liability insurance endorsement, certificate of liability insurance, or certificate of self-insurance and risk management.

(d) An operator shall submit written notice to the Board or its designee of the number of claims paid and the total dollar amount paid as a result of an accidental occurrence at an operating facility. This information shall be compiled for the previous calendar year and submitted to the Board or its designee by March 1st of each year.

Note:

Authority cited:
Section 40502, 42820 of the Public Resources Code.

Reference:
Section 42821 of the Public Resources Code.

Section 18499. Release of an Operator from the Requirements.
(a) After approving the closure of the major waste tire facility as specified in Article 6, the Board or its designee shall notify the operator and the provider of financial assurance in writing, that he or she is no longer required to demonstrate financial responsibility by this Article for third party operating liability, at the particular facility.

(b) When operational control of a major waste tire facility is transferred, the existing operator shall remain subject to the requirements of this Article until the new operator provides acceptable financial assurances to the Board or its designee.

Note:

Authority cited:
Section 40502, 42820 of the Public Resources Code.

Reference:
Section 42821 of the Public Resources Code.

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