| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to water quality improvement and pollution reduction |
|
|
through beverage container recycling incentives; assessing a fee; |
|
|
providing penalties; creating a criminal offense. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Subtitle B, Title 5, Health and Safety Code, is |
|
|
amended by adding Chapter 376 to read as follows: |
|
|
CHAPTER 376. TEXAS BEVERAGE CONTAINER RECYCLING INCENTIVE PROGRAM |
|
|
SUBCHAPTER A. GENERAL PROVISIONS |
|
|
Sec. 376.001. DEFINITIONS. In this chapter: |
|
|
(1) "Beverage" means an alcoholic, nonalcoholic, |
|
|
carbonated, or noncarbonated drink prepared in liquid, |
|
|
ready-to-drink form and intended for human consumption. The term |
|
|
includes: |
|
|
(A) beer; |
|
|
(B) ale; |
|
|
(C) malt liquor; |
|
|
(D) other drinks produced by fermenting malt; |
|
|
(E) wine coolers; |
|
|
(F) soda; |
|
|
(G) water, including mineral water and vitamin |
|
|
water; |
|
|
(H) carbonated water, including carbonated |
|
|
mineral water; |
|
|
(I) carbonated soft drinks; |
|
|
(J) noncarbonated soft drinks and sport drinks; |
|
|
(K) noncarbonated fruit drinks; |
|
|
(L) energy drinks; |
|
|
(M) coffee and tea drinks; and |
|
|
(N) carbonated fruit drinks. |
|
|
(2) "Beverage container" means a glass, metal, or |
|
|
plastic vessel that is hermetically sealed or capped and that |
|
|
contains a beverage at the time it is sold or offered for sale. |
|
|
(3) "Consortium" means the Texas Beverage Container |
|
|
Recycling Consortium. |
|
|
(4) "Consumer" means a person who purchases or |
|
|
receives a beverage in a beverage container for the person's own use |
|
|
or consumption. The term includes a lodging, eating, or drinking |
|
|
establishment if beverages are generally consumed on the |
|
|
establishment's premises and does not include a person who |
|
|
purchases the beverage from the establishment for consumption on |
|
|
the premises. |
|
|
(5) "Distributor" means a person who distributes |
|
|
beverages in beverage containers to retail dealers. |
|
|
(6) "Incentive program" means the Texas beverage |
|
|
container recycling program established under this chapter. |
|
|
(7) "Infant formula" means any liquid food sold as an |
|
|
alternative for human milk for the feeding of infants. |
|
|
(8) "Manufacturer" means any person who fills beverage |
|
|
containers for sale to distributors or retail dealers. |
|
|
(9) "Medical food" means a food or beverage that is |
|
|
formulated to be consumed or administered under the supervision of |
|
|
a physician and that is intended for specific dietary management of |
|
|
diseases or health conditions for which distinctive nutritional |
|
|
requirements, based on recognized scientific principles, are |
|
|
established by medical evaluation. The term also includes any |
|
|
product that meets the definition of "medical food" under Section |
|
|
5(b)(3), the Food, Drug, and Cosmetic Act (21 U.S.C. Section |
|
|
360ee). |
|
|
(10) "Redemption center" means an operation approved |
|
|
by the consortium to redeem beverage containers under this chapter |
|
|
and includes a manned operation or a mechanical device that accepts |
|
|
empty beverage containers and issues a cash refund or a redeemable |
|
|
credit slip with a value not less than the container's refund value. |
|
|
(11) "Refund" means a payment by a redemption center |
|
|
under Section 376.201 to a person who presents a beverage container |
|
|
at the redemption center. |
|
|
(12) "Retail dealer" means a person who sells a |
|
|
beverage in a beverage container to a consumer and includes the |
|
|
owner or operator of a beverage vending machine. |
|
|
Sec. 376.002. TEXAS BEVERAGE CONTAINER RECYCLING |
|
|
CONSORTIUM. (a) The consortium is an association formed to |
|
|
administer the incentive program. |
|
|
(b) The consortium consists of nine voting members |
|
|
appointed by the governor as follows: |
|
|
(1) one distributor of alcoholic beverages; |
|
|
(2) one distributor of nonalcoholic beverages; |
|
|
(3) one recycler; |
|
|
(4) one beverage retailer; |
|
|
(5) one representative of the waste industry; |
|
|
(6) one redemption center owner or operator; |
|
|
(7) one container processor or remanufacturer; |
|
|
(8) one representative of a municipality with a |
|
|
population of less than 10,000; and |
|
|
(9) one representative of a municipality with a |
|
|
population of at least 10,000. |
|
|
(c) The voting members serve staggered terms of two years |
|
|
with four or five members' terms, as applicable, expiring June 1 of |
|
|
each year. |
|
|
(d) The voting members annually shall designate one member |
|
|
of the consortium to serve as presiding officer. |
|
|
(e) The voting members shall appoint an executive director |
|
|
to oversee the consortium's operation under the supervision of the |
|
|
consortium. |
|
|
(f) The executive director may employ personnel necessary |
|
|
to the operation of the consortium. |
|
|
(g) The comptroller or the comptroller's designee and the |
|
|
chair of the Texas Commission on Environmental Quality or the |
|
|
chair's designee serve as ex officio nonvoting members of the |
|
|
consortium. |
|
|
Sec. 376.003. ADMINISTRATION AND RULES. (a) In |
|
|
administering the incentive program, the consortium shall: |
|
|
(1) after consultation with the comptroller and the |
|
|
Texas Commission on Environmental Quality regarding standards and |
|
|
requirements for redemption centers, enter into appropriate |
|
|
agreements approving redemption centers under Section 376.151; |
|
|
(2) enforce compliance with the provisions of this |
|
|
chapter; |
|
|
(3) develop and implement a marketing plan to provide |
|
|
information and educate consumers about the incentive program; |
|
|
(4) conduct any audit of the incentive program the |
|
|
comptroller determines is necessary; |
|
|
(5) develop an operating budget for the incentive |
|
|
program; |
|
|
(6) ensure the solvency of the incentive program's |
|
|
account; |
|
|
(7) develop a system for reimbursement of deposits and |
|
|
refunds and for distribution of handling fees; |
|
|
(8) develop a system for monitoring the number of |
|
|
containers sold by distributors and the number of containers |
|
|
returned to redemption centers and curbside recycling centers; |
|
|
(9) develop a system to prevent fraudulent use of the |
|
|
incentive program, including payment by voucher for the redemption |
|
|
of beverage containers if the consortium determines that vouchers |
|
|
will be an effective fraud prevention measure; |
|
|
(10) administer an account as provided by Section |
|
|
376.105; |
|
|
(11) adopt procedures and forms necessary to implement |
|
|
this chapter; and |
|
|
(12) develop and maintain a publicly accessible |
|
|
website to provide information about the program, including |
|
|
redemption center locations. |
|
|
(b) The comptroller, after consultation with the |
|
|
consortium, may adopt rules necessary to implement this chapter. |
|
|
Sec. 376.004. CRIMINAL PENALTIES. A person commits an |
|
|
offense if the person knowingly violates Section 376.051, 376.101, |
|
|
376.102, 376.201, or 376.204. An offense under this section is a |
|
|
Class C misdemeanor. |
|
|
Sec. 376.005. REPORT TO LEGISLATURE. Not later than |
|
|
November 1 of each year, the consortium shall submit a report to the |
|
|
lieutenant governor, the speaker of the house of representatives, |
|
|
the comptroller, the Texas Commission on Environmental Quality, and |
|
|
the committee in each house of the legislature that has primary |
|
|
jurisdiction over environmental matters about the progress and |
|
|
success of the incentive program. The report must be submitted |
|
|
electronically in a format prescribed by the officer or entity to |
|
|
which the report is transmitted. |
|
|
SUBCHAPTER B. REFUND VALUE AND LABELING OF BEVERAGE CONTAINERS |
|
|
Sec. 376.051. REFUND VALUE AND LABEL REQUIRED. (a) Except |
|
|
as provided by Subsection (b), a person may not distribute, sell, or |
|
|
offer for sale in this state a beverage container unless the |
|
|
container: |
|
|
(1) has: |
|
|
(A) a fluid capacity of less than 24 ounces and a |
|
|
refund value of five cents; or |
|
|
(B) a fluid capacity of at least 24 ounces and a |
|
|
refund value of 10 cents; and |
|
|
(2) is labeled as required by Section 376.052. |
|
|
(b) A person may distribute, sell, or offer for sale in this |
|
|
state a beverage container that does not have a refund value if: |
|
|
(1) the container has a fluid capacity of more than one |
|
|
gallon; or |
|
|
(2) the container contains: |
|
|
(A) a beverage that consists of milk or of 100 |
|
|
percent fruit or vegetable juice; or |
|
|
(B) medical food or infant formula. |
|
|
Sec. 376.052. LABELING. (a) A beverage container required |
|
|
to have a refund value under Section 376.051 that is distributed or |
|
|
offered for sale in this state must have legibly stamped, labeled, |
|
|
or embossed on the container: |
|
|
(1) "TxR"; and |
|
|
(2) other language as required by the consortium. |
|
|
(b) A beverage container intended for sale in this state |
|
|
must be printed, embossed, stamped, labeled, or otherwise marked |
|
|
with a universal product code or similar machine-readable indicium. |
|
|
SUBCHAPTER C. COLLECTION OF DEPOSIT |
|
|
Sec. 376.101. COLLECTION OF DEPOSIT BY DISTRIBUTOR AND |
|
|
RETAIL DEALER. (a) A distributor shall collect a deposit of 5 or 10 |
|
|
cents, as established by Section 376.051, from a retail dealer for |
|
|
each beverage container that the distributor sells to the retail |
|
|
dealer. |
|
|
(b) A retail dealer shall collect a deposit of 5 or 10 cents, |
|
|
as established by Section 376.051, from a consumer for each |
|
|
beverage container that the retail dealer sells to the consumer. |
|
|
(c) A retail dealer who sells one or more beverage |
|
|
containers to a consumer for off-premise consumption shall list the |
|
|
beverage container deposit paid as a separate line item on a receipt |
|
|
given to the consumer. The deposit may not be included in any sales |
|
|
tax calculation. |
|
|
Sec. 376.102. REMITTANCE OF DEPOSITS BY DISTRIBUTOR. Not |
|
|
later than the fifth day of each month, a distributor shall remit to |
|
|
the consortium the deposits collected by the distributor under |
|
|
Section 376.101 during the preceding month. |
|
|
Sec. 376.103. MONTHLY REPORT. (a) Not later than the fifth |
|
|
day of each month, a distributor who collects a deposit under |
|
|
Section 376.101 shall report to the consortium, on a form approved |
|
|
by the consortium: |
|
|
(1) the total amount of deposits collected during the |
|
|
preceding month; and |
|
|
(2) the number of beverage containers sold during the |
|
|
preceding month separated by deposit amount and material of |
|
|
container. |
|
|
(b) The consortium may require a distributor to include in |
|
|
the report required by Subsection (a) other information the |
|
|
consortium considers necessary. |
|
|
(c) The information contained in the report required by this |
|
|
section is confidential and may not be disclosed by the consortium |
|
|
or an officer or employee of the consortium unless required by law. |
|
|
Sec. 376.104. DONATIONS. A manufacturer or distributor who |
|
|
donates beverage containers covered by this chapter shall pay the |
|
|
requisite deposit for the donated beverage containers to the |
|
|
consortium using the method prescribed by the consortium. |
|
|
Sec. 376.105. RECYCLING REFUND TRUST ACCOUNT. (a) |
|
|
Deposits collected under this chapter shall be deposited to the |
|
|
credit of the recycling refund trust account maintained by the |
|
|
consortium. Money in the account may be allocated only for: |
|
|
(1) reimbursements and handling fees paid to |
|
|
redemption centers or curbside recycling programs, as applicable; |
|
|
(2) administration of this chapter; |
|
|
(3) providing information and educating consumers |
|
|
about the incentive program; |
|
|
(4) the purposes authorized under Subsections (b) and |
|
|
(c); and |
|
|
(5) matching grants or low-interest loans to fund |
|
|
water quality, waste reduction, recycling, or curbside redemption |
|
|
programs. |
|
|
(b) On the last day of each state fiscal biennium, the |
|
|
consortium shall send to the comptroller a fee in the amount |
|
|
necessary for the comptroller to fulfill the comptroller's |
|
|
obligations under this chapter. |
|
|
(c) On the last day of each state fiscal biennium, the |
|
|
consortium shall send to the Texas Commission on Environmental |
|
|
Quality a fee in the amount necessary to reimburse that agency for |
|
|
the agency's participation in the program. |
|
|
(d) On the last day of each state fiscal biennium, the |
|
|
consortium shall send to the comptroller a fee in the amount of two |
|
|
and one-half percent of the unencumbered balance of the account for |
|
|
deposit in the state treasury to the credit of the Texas Commission |
|
|
on Environmental Quality. Money deposited under this subsection |
|
|
may be appropriated only for the purposes of Section 361.014(b). |
|
|
The money must be allocated as provided by that subsection and each |
|
|
planning region shall include in the biennial report issued under |
|
|
that subsection information detailing how the money is spent. |
|
|
SUBCHAPTER D. REDEMPTION CENTERS |
|
|
Sec. 376.151. ESTABLISHMENT OF REDEMPTION CENTER |
|
|
AGREEMENTS. (a) To facilitate the return of empty beverage |
|
|
containers, a local government or independent entity may establish, |
|
|
own, and operate a redemption center at which empty containers may |
|
|
be returned for their refund value. |
|
|
(b) The local government or independent entity must file an |
|
|
application for approval of a redemption center with the |
|
|
consortium. The application must provide: |
|
|
(1) the name, mailing address, telephone number, |
|
|
e-mail address, and title of the person responsible for the |
|
|
establishment and operation of the redemption center; |
|
|
(2) the physical address of the redemption center; |
|
|
(3) the applicant's federal tax identification number |
|
|
or social security number if a tax identification number is not |
|
|
required by federal law; and |
|
|
(4) any additional information the consortium |
|
|
requires as necessary or convenient for the implementation of this |
|
|
section. |
|
|
(c) The consortium shall approve a redemption center if it |
|
|
finds the redemption center will provide a convenient service to |
|
|
persons for the return of empty beverage containers. |
|
|
(d) The consortium at any time may review its approval of a |
|
|
redemption center. After written notice to the person responsible |
|
|
for the establishment and operation of the redemption center and to |
|
|
each retail dealer located within a two-mile radius of the |
|
|
redemption center, the consortium may, after providing the owner or |
|
|
operator an opportunity for a hearing to verify facts and resolve |
|
|
the matter at issue, withdraw approval of a redemption center if the |
|
|
consortium finds the redemption center has violated any terms of |
|
|
the approval of the redemption center. |
|
|
(e) The consortium and applicant shall establish the |
|
|
required hours of operation for a redemption center in the approval |
|
|
under Subsection (c). |
|
|
(f) The consortium may not limit the number of redemption |
|
|
centers within a geographic area. |
|
|
(g) To be eligible to receive handling fees and |
|
|
reimbursements for redemptions under Section 376.205, a redemption |
|
|
center owner and operator must complete a biennial training program |
|
|
established by the consortium. |
|
|
SUBCHAPTER E. BEVERAGE CONTAINER REDEMPTION |
|
|
Sec. 376.201. USED BEVERAGE CONTAINER REDEMPTION. Except |
|
|
as provided by Sections 376.202 and 376.203, and subject to any |
|
|
additional antifraud requirements developed by the consortium |
|
|
under Section 376.003(a)(9), a redemption center shall accept a |
|
|
used beverage container that has a refund value as established by |
|
|
Section 376.051 and shall pay the refund value of the container in |
|
|
cash, check, or, if permitted by consortium rule, voucher to the |
|
|
person presenting the container if the container is stamped, |
|
|
labeled, or embossed with "TxR." |
|
|
Sec. 376.202. REFUSAL PERMITTED. A redemption center may |
|
|
refuse to accept for refund: |
|
|
(1) a glass bottle that is broken; |
|
|
(2) a used beverage container that contains part of |
|
|
its original contents or other foreign matter to the extent that it |
|
|
could present health or sanitation problems; or |
|
|
(3) a used beverage container that is not legibly |
|
|
marked "TxR." |
|
|
Sec. 376.203. REDEMPTION BY WEIGHT. (a) The consortium |
|
|
shall establish: |
|
|
(1) a procedure and reimbursement rates for providing |
|
|
a reimbursement based on the weight and material of the beverage |
|
|
containers presented to be used in circumstances in which the |
|
|
number of containers is so large that counting the containers |
|
|
individually would be burdensome on a redemption center or curbside |
|
|
recycling program; and |
|
|
(2) a handling fee to be paid to redemption centers for |
|
|
containers redeemed in the manner described by Subdivision (1). |
|
|
(b) Not more than every six months the consortium may adjust |
|
|
the reimbursement rates described by Subsection (a). |
|
|
Sec. 376.204. RECYCLING OF BEVERAGE CONTAINERS BY |
|
|
REDEMPTION CENTER AND CURBSIDE RECYCLING PROGRAM. A redemption |
|
|
center or curbside recycling program shall recycle the returned |
|
|
used beverage containers by: |
|
|
(1) selling the material to a processor or other end |
|
|
user; or |
|
|
(2) another method prescribed by the consortium. |
|
|
Sec. 376.205. REIMBURSEMENT OF REDEMPTION CENTERS BY |
|
|
CONSORTIUM; HANDLING FEE. (a) On submission of a completed invoice |
|
|
of refunds paid by a redemption center on a form adopted by the |
|
|
consortium, the consortium shall pay to the redemption center an |
|
|
amount equal to the redemption value established by Section 376.051 |
|
|
or 376.203(a)(1), as applicable, plus a handling fee of: |
|
|
(1) one and one-half cents for each beverage container |
|
|
redeemed by the redemption center under Section 376.201; or |
|
|
(2) the amount determined under Section 376.203(a)(2) |
|
|
for beverage containers redeemed in the manner described by that |
|
|
section. |
|
|
(b) The consortium shall reimburse a redemption center |
|
|
under Subsection (a) not later than the fifth working day after the |
|
|
date the consortium receives the invoice submitted by the |
|
|
redemption center. |
|
|
(c) The consortium may adjust a handling fee to account for: |
|
|
(1) changes in market conditions for recycled |
|
|
materials; and |
|
|
(2) different market conditions for recycled |
|
|
materials based on population or geographic location. |
|
|
Sec. 376.206. REIMBURSEMENT OF CURBSIDE RECYCLING PROGRAM |
|
|
BY CONSORTIUM. (a) On submission of a completed report, on a form |
|
|
adopted by the consortium, indicating the number or weight, as |
|
|
applicable, of beverage containers collected by a curbside |
|
|
recycling program that are covered under this chapter, the |
|
|
consortium shall pay to the curbside recycling program an amount |
|
|
equal to the redemption value established by Section 376.203. |
|
|
(b) The consortium shall reimburse a curbside recycling |
|
|
program under Subsection (a) not later than the fifth working day |
|
|
after the date the consortium receives the invoice submitted by the |
|
|
curbside recycling program. |
|
|
Sec. 376.207. REPORTING REQUIREMENTS. Each redemption |
|
|
center and curbside recycling program shall submit a report with |
|
|
the submission of the completed invoice required under Sections |
|
|
376.205 and 376.206, respectively, to the consortium, on a form |
|
|
approved by the consortium, that provides: |
|
|
(1) the redemption value of beverage containers |
|
|
collected by the redemption center or curbside recycling program; |
|
|
(2) the number or weight of beverage containers |
|
|
collected by the center or curbside recycling program; and |
|
|
(3) an invoice or other documentation that provides |
|
|
proof that the collected recycled material was recycled in a manner |
|
|
described by Section 376.204. |
|
|
Sec. 376.208. NOTICE. The consortium must provide to each |
|
|
redemption center and curbside recycling program, as applicable, |
|
|
written notice at least 30 days before implementation of a change in |
|
|
rates under Section 376.204 or handling fees under Section 376.205. |
|
|
SECTION 2. Section 151.007(c), Tax Code, is amended to read |
|
|
as follows: |
|
|
(c) "Sales price" or "receipts" does not include any of the |
|
|
following if separately identified to the customer by such means as |
|
|
an invoice, billing, sales slip or ticket, or contract: |
|
|
(1) a cash discount allowed on the sale; |
|
|
(2) the amount charged for tangible personal property |
|
|
returned by a customer if the total amount charged is refunded by |
|
|
cash or credit; |
|
|
(3) a refund of the charges for the performance of a |
|
|
taxable service; |
|
|
(4) finance, carrying and service charges, or interest |
|
|
from credit extended on sales of taxable items under a conditional |
|
|
sales contract or other contract providing for the deferred payment |
|
|
of the purchase price; |
|
|
(5) the value of tangible personal property that: |
|
|
(A) is taken by a seller in trade as all or part |
|
|
of the consideration for a sale of a taxable item; and |
|
|
(B) is of a type of property sold by the seller in |
|
|
the regular course of business; |
|
|
(6) the face value of United States coin or currency in |
|
|
a sale of that coin or currency in which the total consideration |
|
|
given by the purchaser exceeds the face value of the coin or |
|
|
currency; [or] |
|
|
(7) a voluntary gratuity or a reasonable mandatory |
|
|
charge for the service of a meal or food products, including soft |
|
|
drinks and candy, for immediate human consumption when the service |
|
|
charge is separated from the sales price of the meal or food product |
|
|
and identified as a gratuity or tip and when the total amount of the |
|
|
service charge is disbursed by the employer to employees who |
|
|
customarily and regularly provide the service; or |
|
|
(8) a beverage container redemption deposit under |
|
|
Chapter 376, Health and Safety Code. |
|
|
SECTION 3. (a) Not later than September 1, 2016, the |
|
|
comptroller of public accounts, after consultation with the Texas |
|
|
Beverage Container Recycling Consortium and the Texas Commission on |
|
|
Environmental Quality, shall adopt any rules necessary to implement |
|
|
Chapter 376, Health and Safety Code, as added by this Act. |
|
|
(b) The requirements of and penalties imposed by Chapter |
|
|
376, Health and Safety Code, as added by this Act, do not apply to |
|
|
any person before January 1, 2017. |
|
|
(c) The remittance and report requirements imposed by |
|
|
Sections 376.102 and 376.103, Health and Safety Code, as added by |
|
|
this Act, do not apply to any person before March 5, 2017. |
|
|
(d) The Texas Beverage Container Recycling Consortium may |
|
|
not adjust a handling fee under Section 376.205(c), Health and |
|
|
Safety Code, as added by this Act, until January 1, 2018. |
|
|
SECTION 4. This Act takes effect September 1, 2015. |