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