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Waste Diversion Act, 2002

ONTARIO REGULATION 84/03

USED TIREs

Historical version for the period November 24, 2016 to November 29, 2016.

Note: This Regulation is revoked on November 30, 2016, the day clause 73 (1) (b) of Schedule 2 to the Waste-Free Ontario Act, 2016 comes into force. (See: O. Reg. 396/16, s. 1)

Last amendment:  O. Reg. 396/16.

This is the English version of a bilingual regulation.

Interpretation

1. (1) In this Regulation,

“OTS Tire Classification” means, in respect of a calendar year, the most recent document entitled “OTS Tire Classification” that is prepared by Ontario Tire Stewardship and that is made available on the website of Ontario Tire Stewardship on or before December 1 in the preceding calendar year; (“classement officiel des pneus”)

“tire” includes a part of a tire; (“pneu”)

“used tires” means waste that consists of any of the following materials, or any combination of them:

(a) used tires that have not been refurbished for road use,

(b) tires that, for any reason, are not suitable for their intended purpose. (“pneus usagés”) O. Reg. 84/03, s. 1; O. Reg. 45/13, s. 1 (1).

(2) Despite the definition of “OTS Tire Classification” in subsection (1), the OTS Tire Classification in respect of 2013 and 2014 is the document of that title that is dated April 2013 and that is made available on the website of Ontario Tire Stewardship on or before April 19, 2013. O. Reg. 139/13, s. 1; O. Reg. 305/13, s. 1.

Designation

2. Used tires are prescribed as a designated waste for the purposes of the Act.  O. Reg. 84/03, s. 2.

Industry funding organization

3. Ontario Tire Stewardship is continued under the name Ontario Tire Stewardship in English and Société de gestion des pneus usagés de l’Ontario in French and is designated as the industry funding organization for the waste diversion program for used tires approved by the Minister under section 26 of the Act. O. Reg. 45/13, s. 2.

Composition

4. (1) Ontario Tire Stewardship is composed of the members of its board of directors who shall be appointed in accordance with section 5.  O. Reg. 157/09, s. 1. 

(2) Despite subsection (1), each member of the board of directors who holds office immediately before Ontario Regulation 157/09 comes into force is deemed to have been appointed to the board in accordance with this Regulation and shall continue to hold office until notice that all members have been appointed under section 5 is published on Ontario Tire Stewardship’s website.  O. Reg. 157/09, s. 1.

Appointed members

5. (1) The board of directors shall be composed of the following members:

1. Three members appointed by The Rubber Association of Canada.

2. Two members appointed by Retail Council of Canada.

3. Two members appointed by Ontario Tire Dealers Association.

4. One member appointed by Canadian Vehicle Manufacturers’ Association.

5. One member appointed by Association of International Automobile Manufacturers of Canada.  O. Reg. 157/09, s. 1.

(2) If an appointment is not made under subsection (1) within 30 days after the day Ontario Regulation 157/09 is filed, the Chair of Ontario Tire Stewardship may, after providing 30 days notice to the appointing corporations mentioned in subsection (1), appoint an individual as a member of the board of directors, subject to the approval of the Chair of Waste Diversion Ontario.  O. Reg. 157/09, s. 1.

(3) A member appointed under subsection (2) shall hold office until the appointment is made under subsection (1).  O. Reg. 157/09, s. 1.

Qualification

6. (1) An individual may be appointed as a member of the board of directors under section 5 only if he or she,

(a) is a director, officer or employee of a corporation that supplies new tires in Ontario, or of a corporation referred to in section 5;

(b) is a resident of Canada; and

(c) is at least 18 years of age.  O. Reg. 157/09, s. 1; O. Reg. 45/13, s. 3.

(2) Despite subsection (1), an individual shall not be appointed as a member of the board of directors if he or she is a bankrupt or has been found by a court to be mentally incapable of managing property.  O. Reg. 157/09, s. 1.

Application of Corporations Act

7. Sections 59 and 80 and subsections 283 (4) and (5) of the Corporations Act apply, with necessary modifications, to Ontario Tire Stewardship.  O. Reg. 157/09, s. 1.

Base fee

8. (1) In this section,

“base fee period” means,

(a) the period beginning on April 1, 2013 and ending on April 30, 2014, or

(b) after April 30, 2014, a period beginning on May 1 and ending on April 30; (“période des droits de base”)

“cost reference period” means, in respect of a base fee period, the calendar year preceding the calendar year in which the base fee period begins; (“période de référence pour les coûts”)

“tire class” means, in respect of a base fee period, a class of tire set out in the OTS Tire Classification in respect of the calendar year in which the base fee period begins. (“catégorie de pneu”) O. Reg. 45/13, s. 4.

(2) The amount of a fee required to be paid in respect of each calendar month during a base fee period by a steward designated under the Act in respect of used tires shall be determined by applying the method set out in this section. O. Reg. 45/13, s. 4.

(3) Ontario Tire Stewardship shall,

(a) determine the cost attributable to each tire class in respect of the base fee period by,

(i) determining the sum of the amounts described in paragraph 1 of subsection 30 (3) of the Act that were incurred in relation to used tires during the cost reference period, and

(ii) determining, subject to subsection (4), the portion of that sum that is attributable to each tire class; and

(b) determine the cost attributable to a tire in each tire class in respect of the base fee period by,

(i) assigning each tire supplied by stewards during the cost reference period to a tire class if the tire meets the criteria of the tire class, and

(ii) dividing the cost attributable to a tire class, as determined under clause (a), by the number of tires assigned to that tire class under subclause (i). O. Reg. 45/13, s. 4.

(4) For the purposes of subclause (3) (a) (ii), if the tire classes in respect of the base fee period have changed from the previous base fee period, Ontario Tire Stewardship shall determine the portion of the sum determined under subclause (3) (a) (i) that would have been attributable to each tire class, had the tire classes in respect of the base fee period been the applicable tire classes during the cost reference period. O. Reg. 45/13, s. 4.

(4.1) For the base fee period beginning on May 1, 2014, the following rules apply, despite anything else in this Regulation:

1. After making its determinations under subsection (3), Ontario Tire Stewardship shall compare,

i. the cost attributable to a tire in each tire class, as determined for the base fee period beginning on May 1, 2014, and

ii. the cost attributable to a tire in the same tire class, as determined for the previous base fee period and set out in the document entitled “TSF Tire Categories and Definitions”, dated April 2013 and published on the website of Ontario Tire Stewardship on April 19, 2013.

2. If a cost described in subparagraph 1 ii is equal to or higher than the corresponding one described in subparagraph 1 i, Ontario Tire Stewardship shall provide the written notice described in subsection (5) to each steward with respect to the relevant tire class.

3. A steward who receives notice as described in paragraph 2 shall determine fees for the relevant tire class in respect of a calendar month in accordance with clauses (6) (a) and (b).

4. If a cost described in subparagraph 1 ii is lower than the corresponding one described in subparagraph 1 i, Ontario Tire Stewardship shall provide written notice of that lower cost to each steward with respect to the relevant tire class, instead of the notice described in subsection (5).

5. A steward who receives notice as described in paragraph 4 shall determine fees for the relevant tire class in respect of a calendar month as follows, instead of in accordance with clauses (6) (a) and (b):

i. the steward shall assign each tire that is supplied by the steward during the calendar month and meets the criteria of the relevant tire class to that tire class in respect of the base fee period,

ii. the steward shall multiply the cost attributable to a tire in the relevant tire class (namely, the cost described in subparagraph 1 ii, of which the steward was given notice as described in paragraph 4) by the number of tires assigned to the tire class under subparagraph i.

6. A steward shall determine the sum of all amounts determined under subparagraph 5 ii and all amounts determined under clause (6) (b).

7. The fee required to be paid by a steward in respect of a calendar month is the sum determined under paragraph 6.

8. The fees and other amounts required to be paid by a steward in respect of used tires and in respect of a calendar month shall not include anything other than,

i. the fees determined in accordance with this Regulation, and

ii. any applicable interest or penalties charged in accordance with a rule made under clause 30 (1) (d) of the Act. O. Reg. 305/13, s. 2.

(5) Ontario Tire Stewardship shall provide written notice to each steward of the cost attributable to each tire class under clause (3) (a), the number of tires assigned to each tire class under subclause (3) (b) (i) and the cost attributable to a tire in each tire class under clause (3) (b),

(a) on or before April 19, 2013, if the determination is in respect of the base fee period mentioned in clause (a) of the definition of “base fee period” in subsection (1); and

(b) at least 60 days before the base fee period begins, if the determination is made in respect of any other base fee period. O. Reg. 45/13, s. 4; O. Reg. 139/13, s. 2.

(6) A steward shall determine the amount of the fee required to be paid by a steward in respect of a calendar month by,

(a) assigning each tire supplied by the steward during the calendar month to a tire class in respect of the base fee period if the tire meets the criteria of the tire class;

(b) multiplying the cost attributable to a tire in each tire class, as determined under clause (3) (b), by the number of tires assigned to the tire class under clause (a); and

(c) determining the sum of all amounts determined under clause (b). O. Reg. 45/13, s. 4.

(7) Unless a rule has been made under clause 30 (1) (c) of the Act prescribing the times when a fee determined under this section is required to be paid, the fee shall be paid no later than 60 days following the end of the calendar month in respect of which the fee is required to be paid. O. Reg. 45/13, s. 4.

Reconciliation of fees for calendar year

9. (1) In this section,

“tire class” means, in respect of a calendar year, a class of tire set out in the OTS Tire Classification in respect of the calendar year. O. Reg. 45/13, s. 4.

(2) The amount of a fee required to be paid under this section in respect of each calendar year starting in 2013 by a steward designated under the Act in respect of used tires shall be determined by applying the method set out in this section. O. Reg. 45/13, s. 4.

(3) Ontario Tire Stewardship shall,

(a) determine the cost attributable to each tire class in respect of the calendar year by,

(i) determining the sum of the amounts described in paragraph 1 of subsection 30 (3) of the Act that were incurred in relation to used tires during the calendar year, and

(ii) attributing a portion of that sum to each tire class;

(b) determine the cost attributable to a tire in each tire class in respect of the calendar year by,

(i) assigning each tire supplied by stewards during the calendar year to a tire class if the tire meets the criteria of the tire class, and

(ii) dividing the cost attributable to a tire class, as determined under clause (a), by the number of tires assigned to that tire class under subclause (i); and

(c) determine the amount of the fee required to be paid by a steward in respect of a calendar year by,

(i) assigning each tire supplied by the steward during the calendar year to a tire class in respect of the calendar year if the tire meets the criteria of the tire class,

(ii) multiplying the cost attributable to a tire in each tire class, as determined under clause (b), by the number of tires assigned to the tire class under subclause (i),

(iii) determining the sum of all amounts determined under subclause (ii),

(iv) determining the amount of fees required to be paid under section 8 in respect of the calendar year and any other fees that were required to be paid by the steward under the Act in respect of used tires and in respect of the calendar year, and

(v) subtracting the amount determined under subclause (iv) from the sum determined under subclause (iii), in order to arrive at the amount of the fee required to be paid under this section by the steward in respect of the calendar year. O. Reg. 45/13, s. 4.

(4) If the amount arrived at under subclause (3) (c) (v) is less than zero, that amount is owed to the steward by Ontario Tire Stewardship and no fee is required to be paid by the steward under this section. O. Reg. 45/13, s. 4.

(5) Ontario Tire Stewardship shall, no later than May 1 in the calendar year following the calendar year in respect of which the fee is required to be paid, provide written notice of the following to the steward:

1. The cost attributable to each tire class under clause (3) (a).

2. The number of tires supplied by the steward that were assigned to each tire class under subclause (3) (c) (i).

3. The amount required to be paid by the steward in respect of each tire class, as determined under subclause (3) (c) (ii).

4. The sum determined under subclause (3) (c) (iii).

5. The portion of the amount of fees determined under subclause (3) (c) (iv) that was required to be paid by the steward in respect of each tire class.

6. The amount of the fee required to be paid under this section by the steward in respect of the calendar year, as arrived at under subclause (3) (c) (v).

7. If the amount set out under paragraph 6 is greater than zero, the date on or before which that amount is required to be paid by the steward.

8. If the amount set out under paragraph 6 is less than zero, the date on or before which that amount is required to be credited or paid to the steward and a statement that no fee is required to be paid by the steward under this section. O. Reg. 45/13, s. 4.

(6) A fee required to be paid by a steward in respect of a calendar year, as determined under clause (3) (c), shall be paid no later than June 30 in the calendar year following the calendar year in respect of which the fee is required to be paid. O. Reg. 45/13, s. 4.

(7) If an amount is owed to a steward under subsection (4), Ontario Tire Stewardship shall,

(a) subject to clause (b),

(i) apply the amount as a credit against fees payable by the steward under the Act in respect of used tires no later than June 15 in the calendar year that is two years following the calendar year in respect of which the amount was determined, and

(ii) pay any amount not applied as a credit under subclause (i) to the steward no later than June 30 in the calendar year that is two years following the calendar year in respect of which the amount was determined; and

(b) if the steward ceases to be designated as a steward in respect of used tires, pay the amount to the steward no later than June 30 in the calendar year following the calendar year in respect of which the amount was determined. O. Reg. 45/13, s. 4.