What you need to know about the new $10,000 Bond Requirement : GUEST BLOG: New Bond Requirement For Waste Tire Transporters In Louisiana

Todd Bryant, president and founder of Bryant Surety Bonds, explains the implication for waste transporters of a new bond requirement for transporting waste tires in Louisiana…

In late February, a number of amendments were made to the Louisiana 'Title 33 Environmental Regulatory Code - Part VII - Solid Waste' introducing new requirements for Louisiana waste tire transporters. These requirements include the obligation to complete and submit a Louisiana waste tire transporter authorization application form and post a $10,000 surety bond.

More on the amendments to the code and why transporters need to get bonded can be found, HERE

According to '§10523 Standards and Responsibilities of Waste Tire Transporters' of the Environmental Regulatory Code (ERC), waste tire transporters must now comply with a new set of requirements.

The code specifies that a Louisiana waste tire transporter is someone who "transports more than 20 waste tires within the state of Louisiana". Anyone transporting more than 20 waste tires must obtain a valid transporter authorization certificate from the Louisiana Department of Environmental Quality (DEQ).

To obtain this certificate a transporter must:

Submit the authorization application form

Submit proof of financial responsibility in the form of a $10,000 surety bond (whereas until now waste tire transporters were only required to have liability insurance)

Submit proof of commercial liability insurance for every vehicle

Submit copies of the vehicle registration or lease agreement for every vehicle

Pay a certification fee in the amount of $100 and an additional $25 for every vehicle.

Fulfilling these requirements qualifies a transporter to obtain the authorization certificate and legally operate within the state under the conditions specified in the ERC.

Transporter certificates expire on Jul 31 of every year. According to the regulation, transporters must reapply to renew their certificates no later than July 1 of every year.

Under a number of cases the DEQ may revoke or suspend the authorization certificate of a transporter. These include:

Collecting or transporting tires without an authorization

Disposing waste tires or waste tire material without authorization

Delivering waste tires to a facility that is not permitted to accept such tires

Falsifying waste tire shipping documents

Not maintaining complete and precise records of tire shipments

Not complying with rules issued by the DEQ

Volating federal or state law.

Under these conditions the DEQ may revoke the authorization certificate of a Louisiana waste tire transporter. The DEQ may further file a claim against their surety bond. What does that mean?

Surety bonds are a form of agreement that is typically made between three sides - the bond principal (waste tire transporters, in this case), the bond obligee requesting the bond (the DEQ) and the surety company issuing and backing the bond.

A bond works like a line of credit extended by the surety to the principal. The surety vouches for a transporter's reliability and trustworthiness and backs their bond financially. If the transporter commits any of the above violations the bond obligee can file a claim against the transporter's surety bond and request compensation.

When a claim is filed, the surety must investigate the issue and check if it is legitimate. If it is - the surety will compensate the claimant up to the full amount of the surety bond. In return, the bond principal, i.e. the transporter, must then repay the surety for the compensation it has extended. This is why a bond is like a line of credit.

Have you gotten your authorization certificate and surety bond already? What do you think of the new requirement for Louisiana waste transporters? We'd like to hear your opinion on the issue. Get in touch via www.bryantsuretybonds.com

Todd Bryant is the president and founder of Bryant Surety Bonds with years of experience in helping business owners get bonded and start their business.

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