Louisiana has one of the better waste tire programs in the country, but it does have its problems. The legislative auditor in a recent report said the program operated by the state Department of Environmental Quality needs to ensure that waste tire fees are paid to the department on time.

Two years ago, a report by the auditor covering a two-year period was critical of the time it took DEQ to reimburse tire processors and shredders. Some had to borrow money to stay afloat while waiting for DEQ payments.

One processor said, “The bank would ask why the state owes us for 12 months. It was a lot of aggravation.”

Despite the complaint, the processor praised the program and said he understood it needed more management.

Consumers pay a $2 fee for each new passenger tire purchased, $5 for medium-sized truck tires and $10 for off-road tires. That revenue is used to reimburse processors and shredders. Certified tire haulers are paid after they deliver a load of tires to a processor.

DEQ did a better job of paying processors after the 2012 audit, but now it has a problem getting tire dealers to turn in the fees that they have collected from consumers on a timely basis.

Vince Sagnibene, DEQ undersecretary, told The Advocate he knows there is room for improvement, but “we believe we run an effective program here.”

The auditor said 249 fee generators failed to submit any reports during fiscal year 2013. His report said 1,045 companies that collected fees were late in their payments in 2013, but only one was penalized.

There is no system in place to follow up with businesses that accept tires when that business doesn’t report as required, the auditor said. He added that DEQ has no way of knowing whether those who collect fees are turning all of them into the state.

Sagnibene, like some other government agency officials, offered quick excuses and didn’t indicate he planned to change anything in DEQ’s waste tire operations. The 249 generators that failed to submit any reports in 2013 either didn’t have any tire dealings or had gone out of business, he told The Advocate.

As for penalizing anyone, he was adamant.

“Am I interested in penalizing anyone? No,” he said. “Some people pay their bills late.”

Sagnibene did make one concession. He said many of the issues in the auditor’s report will be addressed when a new electronic filing system goes online.

Legislative audits play a vital role in keeping government agencies and political subdivisions on their toes. Those who fail to follow sound business practices need to be held accountable. DEQ is no exception. (MGNonline)