82R9981 JE-D By: Hernandez Luna H.B. No. 3236 A BILL TO BE ENTITLED AN ACT relating to requirements for businesses that offer plastic checkout bags to customers; providing civil and administrative penalties. 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. CHECKOUT BAGS Sec. 376.001. DEFINITIONS. In this chapter: (1) "Business" means a commercial enterprise or establishment, including a sole proprietorship, joint venture, partnership, corporation, or other legally recognizable entity, whether for profit or not for profit. (2) "Checkout bag" means a carryout bag that is provided by a store to a customer at the point of sale. (3) "Commission" means the Texas Commission on Environmental Quality. (4) "Reusable bag" means a bag with handles that is specifically designed and manufactured for multiple reuse and is made of: (A) cloth or other machine-washable fabric; or (B) other durable material suitable for reuse, including plastic that is at least 2.25 millimeters thick. (5) "Shopping mall" means an enclosed public walkway or hall area that connects retail, service, or professional establishments. Sec. 376.002. APPLICABILITY. This chapter does not apply to a business: (1) with fewer than 51 employees; (2) that provides plastic checkout bags to less than 10 percent of the business's customers; or (3) whose principal business activity is providing prepared food for immediate consumption. Sec. 376.003. BUSINESS REQUIRED TO OFFER REUSABLE BAGS AT REASONABLE PRICE. (a) A business that offers a plastic checkout bag to a customer shall: (1) make a reusable bag available for sale at a reasonable price; and (2) display the reusable bag at or near the point of sale. (b) Before an employee of the business provides a customer with a plastic checkout bag, the employee shall ask the customer if the customer would like to purchase a reusable bag. Sec. 376.004. RECYCLING PROGRAM. A business that offers a plastic checkout bag to a customer shall establish a checkout bag recycling program that requires the business to: (1) print or display in a highly visible manner on the outside of a plastic checkout bag provided by the business the words "Please Return to a Participating Business for Recycling"; (2) place in a visible, easily accessible location near each public entrance of either a business or a shopping mall that contains a business that offers a plastic checkout bag to a customer a plastic checkout bag collection bin clearly marked with information stating that the bin is for the purpose of collecting and recycling plastic checkout bags; (3) maintain records describing the collection, transport, and recycling of plastic checkout bags under the program established under this section; and (4) make the records of the program available to the commission on request. Sec. 376.005. TEXAS COMMISSION ON ENVIRONMENTAL QUALITY INFORMATION. The commission shall establish an online clearinghouse of information relating to the use and recycling of plastic checkout bags, including information on: (1) alternatives to plastic checkout bags; (2) companies that recycle plastic checkout bags; (3) companies that sell biodegradable checkout bags; and (4) products that are made of recycled plastic from checkout bags. Sec. 376.006. RULES. The commission shall adopt rules to implement this chapter. SECTION 2. Section 7.052, Water Code, is amended by adding Subsection (b-3) to read as follows: (b-3) The amount of the penalty for a violation of Chapter 376, Health and Safety Code, may not exceed $200, except that, if the person has previously been determined by the commission to have violated the chapter: (1) one time during the 12-month period preceding the commission of the instant violation, the fine may not exceed $400; or (2) two or more times during the 24-month period preceding the commission of the instant violation, the fine may not exceed $600. SECTION 3. Sections 7.102 and 7.103, Water Code, are amended to read as follows: Sec. 7.102. MAXIMUM PENALTY. A person who causes, suffers, allows, or permits a violation of a statute, rule, order, or permit relating to Chapter 37 of this code, Chapter 366, 371, or 372, Health and Safety Code, Subchapter G, Chapter 382, Health and Safety Code, or Chapter 1903, Occupations Code, shall be assessed for each violation a civil penalty not less than $50 nor greater than $5,000 for each day of each violation as the court or jury considers proper. A business that causes, suffers, allows, or permits a violation of a statute, rule, or order relating to Chapter 376, Health and Safety Code, other than Section 376.003, shall be assessed a civil penalty not greater than $100 for each day of each violation as the court or jury considers proper. A person who causes, suffers, allows, or permits a violation of a statute, rule, order, or permit relating to any other matter within the commission's jurisdiction to enforce, other than violations of Chapter 11, 12, 13, 16, or 36 of this code, or Chapter 341, Health and Safety Code, shall be assessed for each violation a civil penalty not less than $50 nor greater than $25,000 for each day of each violation as the court or jury considers proper. Each day of a continuing violation is a separate violation. Sec. 7.103. CONTINUING VIOLATIONS. (a) Except as provided by Subsection (b), if [If] it is shown on a trial of a defendant that the defendant has previously been assessed a civil penalty for a violation of a statute within the commission's jurisdiction or a rule adopted or an order or a permit issued under such a statute within the year before the date on which the violation being tried occurred, the defendant shall be assessed a civil penalty not less than $100 nor greater than $25,000 for each subsequent day and for each subsequent violation. (b) If it is shown on the trial of a defendant for a violation of Chapter 376, Health and Safety Code, other than Section 376.003, or a rule adopted or an order issued under that chapter that the defendant has previously been assessed a civil penalty for a violation of that chapter or a rule adopted or an order issued under that chapter within the year before the date on which the violation being tried occurred, the defendant shall be assessed a civil penalty not greater than: (1) $200 if the violation being tried is the defendant's second violation of that chapter, other than Section 376.003, or a rule adopted or an order issued under that chapter; or (2) $500 if the violation being tried is the defendant's third or a subsequent violation of that chapter, other than Section 376.003, or a rule adopted or an order issued under that chapter. (c) Each day of a continuing violation is a separate violation. SECTION 4. (a) The Texas Commission on Environmental Quality shall conduct a study to determine: (1) the impact of Chapter 376, Health and Safety Code, as added by this Act, on businesses and the environment; (2) the effectiveness of the recycling programs established under Chapter 376, Health and Safety Code, as added by this Act; (3) the number of businesses collecting the plastic checkout bags from the collection bins and recycling the bags; and (4) the feasibility and costs to businesses of using checkout bags that are made from biodegradable plastic and other alternate materials. (b) Not later than January 1, 2013, the Texas Commission on Environmental Quality shall submit a report regarding the results of the study to the standing committees of the senate and house of representatives having primary jurisdiction over environmental issues. SECTION 5. This Act takes effect January 1, 2012, except that Section 376.006, Health and Safety Code, as added by this Act, takes effect September 1, 2011.