82R22978 KJM-D
By: Allen, Reynolds, et al. H.B. No. 695
Substitute the following for H.B. No. 695:
By: Aliseda C.S.H.B. No. 695
A BILL TO BE ENTITLED
AN ACT
relating to the establishment of a program for the collection,
transportation, recycling, and disposal of mercury-added
thermostats.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 361, Health and Safety Code, is amended
by adding Subchapter Z to read as follows:
SUBCHAPTER Z. MERCURY-ADDED THERMOSTAT COLLECTION PROGRAM
Sec. 361.971. DEFINITIONS. In this subchapter:
(1) "Air-conditioning and refrigeration contractor"
has the meaning assigned by Section 1302.002, Occupations Code.
(2) "Manufacturer" means a business concern that owns
or owned a name brand of mercury-added thermostats sold in this
state.
(3) "Mercury-added thermostat" means a thermostat
that uses a mercury switch to sense and control room temperature
through communication with heating, ventilating, or
air-conditioning equipment in residential, commercial, industrial,
or other buildings. The term does not include a thermostat used to
sense and control temperature as part of a manufacturing process.
(4) "Out-of-service mercury-added thermostat" means a
mercury-added thermostat that is removed from service in this state
and is intended to be discarded.
(5) "Retailer" means a person who sells thermostats
directly to a consumer through a selling or distribution mechanism,
including a sale using a catalog or the Internet.
(6) "Thermostat" means a device that uses a switch to
sense and control room temperature in a residential, commercial,
industrial, or other building through communication with heating,
ventilating, or air-conditioning equipment.
(7) "Wholesaler" means a person engaged in the
distribution and wholesale selling of heating, ventilation, and
air-conditioning components to contractors who install heating,
ventilation, and air-conditioning components and whose total
wholesale sales account for 80 percent or more of total sales. The
term does not include a manufacturer.
Sec. 361.972. MERCURY-ADDED THERMOSTAT RECYCLING. A person
who removes a mercury-added thermostat from service shall:
(1) handle the thermostat in accordance with this
subchapter and rules adopted under this subchapter;
(2) take the thermostat to a point of collection with a
collection bin operating in accordance with this subchapter and
rules adopted under this subchapter; and
(3) dispose of the thermostat only by recycling the
thermostat in a manner described by this subchapter.
Sec. 361.973. MANUFACTURER PROGRAMS FOR OUT-OF-SERVICE
MERCURY-ADDED THERMOSTATS. (a) Each manufacturer of mercury-added
thermostats that have been sold in this state shall, individually
or collectively with other manufacturers, establish and maintain a
collection and recycling program for out-of-service mercury-added
thermostats. Each manufacturer, individually or collectively with
other manufacturers, is responsible for collecting, handling,
transporting, and recycling or disposing of out-of-service
mercury-added thermostats through a program in accordance with this
subchapter and rules adopted under this subchapter.
(b) A manufacturer or a group of manufacturers operating a
program collectively may contract with a retailer to provide a
point of collection for out-of-service mercury-added thermostats,
either in the retailer's place of business or elsewhere.
(c) A retailer participating in a manufacturer's program
under this section by providing a point of collection for
out-of-service mercury-added thermostats shall post at the
collection site prominent, easily visible signs that provide
information about the collection and recycling of out-of-service
mercury-added thermostats.
(d) A manufacturer may not sell, offer for sale, or
distribute in this state any thermostats unless the manufacturer
complies with this subchapter and the rules adopted under this
subchapter.
Sec. 361.974. COLLECTION BINS. A manufacturer's program
established under Section 361.973 shall:
(1) provide collection bins for out-of-service
mercury-added thermostat collection to:
(A) wholesalers, at a one-time administrative
fee not to exceed $40; and
(B) a local government that requests a collection
bin for use at a household hazardous waste collection facility or a
household hazardous waste event, at a one-time administrative fee
not to exceed $40; and
(2) arrange for either:
(A) the pickup of the contents of the collection
bins provided pursuant to this section for proper handling and
recycling; or
(B) the payment of the costs of shipping the
collection bins provided under this section for proper handling and
recycling in accordance with the program.
Sec. 361.975. INITIAL PROGRAM EDUCATION AND OUTREACH. (a)
A manufacturer's program established under Section 361.973, in
accordance with commission rules, shall:
(1) establish and provide to the commission the
address of a public Internet website through which visitors can
easily download templates of educational materials;
(2) to encourage greater participation in the proper
management of out-of-service mercury-added thermostats in this
state, undertake to engage other stakeholders, including waste,
demolition, heating, ventilation, and air-conditioning
organizations, and appropriate state agencies;
(3) encourage wholesalers to support and participate
in educating customers on the proper management of out-of-service
mercury-added thermostats; and
(4) encourage retailers to support and participate in
educating consumers on the proper management of out-of-service
mercury-added thermostats.
(b) This section expires January 1, 2014.
Sec. 361.976. EDUCATIONAL AND OUTREACH MATERIALS. (a) A
manufacturer's program established under Section 361.973, in
accordance with commission rules, shall develop, update as
necessary, and make available to participating retailers,
participating wholesalers, and participating household hazardous
waste programs educational and other outreach materials for:
(1) heating, ventilation, and air-conditioning
contractors, demolition contractors, and associations of those
contractors;
(2) local governments that provide household
hazardous waste programs; and
(3) homeowners.
(b) Materials developed and made available under Subsection
(a) must include at least one of the following:
(1) signs designed for prominent, easily visible
display for viewing by consumers and contractors; or
(2) written materials or templates of materials for
reproduction by participating retailers and participating
wholesalers to be provided to the consumer at the time of purchase
or delivery of a thermostat that include information on:
(A) proper management of out-of-service
mercury-added thermostats; and
(B) locations where out-of-service mercury-added
thermostats are collected for proper handling, recycling, or
disposal.
Sec. 361.977. PROGRESS REPORT. (a) On or before April 1 of
each year, a manufacturer, through a program established under
Section 361.973, shall submit to the commission and post on the
program's Internet website a report that includes:
(1) the number of out-of-service mercury-added
thermostats the program collected in this state during the
preceding calendar year;
(2) the estimated total amount of mercury contained in
the out-of-service mercury-added thermostats the program collected
during the preceding calendar year;
(3) an evaluation of the effectiveness of the program;
(4) an accounting of the program's administrative
costs that includes:
(A) for a nonprofit organization's program, a
copy of Internal Revenue Service Form 990; or
(B) for a for-profit organization's program,
independently audited financial statements detailing revenues and
a full accounting of administrative costs incurred;
(5) a description of the outreach strategies employed
to increase participation and collection rates;
(6) examples of outreach and educational materials
used;
(7) names and locations of all participating points of
collection;
(8) the total number of out-of-service mercury-added
thermostats collected;
(9) the Internet website address at which the annual
report may be viewed online;
(10) a description of how the collected out-of-service
mercury-added thermostats were managed; and
(11) beginning with the report due April 1, 2014, a
comparison of collections to the collection goals established under
this section.
(b) With the first progress report due under Subsection (a),
a manufacturer, individually or collectively with other
manufacturers, shall submit to the commission collection goals that
ensure an increase in the number of mercury-added thermostats
collected each year until 2018 or until a time the commission
determines that the number of in-service mercury-added thermostats
is steadily declining as a result of the ban on sales and
installation of mercury-added thermostats.
(c) The commission shall use the progress reports required
by this section to determine whether collection goals are being
met. If collection goals are not met, the commission may require
modifications to a manufacturer's collection plans in an attempt to
improve collection rates.
(d) The manufacturer or group of manufacturers operating a
program shall post the progress report submitted under this section
on a public Internet website.
(e) The commission shall post progress reports submitted
under this section on the commission's Internet website or provide
a link to the public Internet website described by Subsection (d).
(f) The commission by rule shall establish a review
procedure that includes:
(1) notice of the review procedure and timeline,
including notice of the opportunity for public comment to be posted
on the commission's Internet website; and
(2) a period for public comment that extends at least
90 days from the date the commission posts progress reports
submitted under this section.
(g) The commission shall review and consider the progress
reports and the public comments submitted under this section. The
commission shall consider each progress report's consistency with
other thermostat manufacturers' collection programs in this state
and in other states. The commission may consult with thermostat
manufacturers, thermostat wholesalers, thermostat technicians,
thermostat retailers, environmental interest groups, and local
governments to solicit additional comments.
(h) The commission may discontinue the requirement for the
progress report under this section and the requirements of Section
361.976 if the commission finds, based on diminished returns of
thermostats, that additional education and reporting requirements
would result in only a de minimis number of out-of-service
mercury-added thermostats being returned in this state.
Sec. 361.978. COMMISSION'S EDUCATION RESPONSIBILITIES.
(a) The commission may provide outreach to educate consumers
regarding the collection and recycling requirement for
out-of-service mercury-added thermostats.
(b) The commission shall provide a link on the commission's
Internet website for a program operated by a manufacturer or group
of manufacturers by which consumers, contractors, retailers, and
wholesalers are provided information about the recycling of
out-of-service mercury-added thermostats.
Sec. 361.979. THERMOSTAT SALES OR DISTRIBUTION PROHIBITED;
LIST OF NONCOMPLIANT MANUFACTURERS. (a) A person, including a
manufacturer, wholesaler, or retailer, may not sell, offer for
sale, or distribute in this state:
(1) a mercury-added thermostat; or
(2) a thermostat that is produced by a manufacturer
that has been listed on the commission's Internet website as a
noncompliant manufacturer for 120 or more consecutive days.
(b) On January 2 and July 1 of each year, the commission
shall post a list on its Internet website of manufacturers that are
not in compliance with this subchapter.
(c) A wholesaler or retailer that distributes or sells
thermostats shall monitor the commission's Internet website to
determine whether the sale of a manufacturer's thermostat is in
compliance with this subchapter.
Sec. 361.980. THERMOSTAT INSTALLATION PROHIBITED. A person
may not install a mercury-added thermostat.
Sec. 361.981. WHOLESALER DUTY: POINT OF COLLECTION. (a) A
wholesaler may not sell, offer for sale, or distribute in this state
any thermostats unless the wholesaler:
(1) provides at each of its places of business in this
state a point of collection for out-of-service mercury-added
thermostats if the wholesaler conducts business from a physical
location in this state;
(2) participates as a collection site in a
manufacturer's collection program as described under Section
361.973; or
(3) otherwise collects out-of-service mercury-added
thermostats in accordance with applicable state and federal law.
(b) A wholesaler that provides a collection site shall post
at the collection site prominent, easily visible signs that provide
information about the collection and recycling of out-of-service
mercury-added thermostats.
Sec. 361.982. DISTRIBUTION OF INFORMATION ON POINTS OF
COLLECTION. A retailer or wholesaler that distributes new
thermostats by mail to buyers in this state shall include with the
sale of the new thermostat an Internet website address and
toll-free telephone number with instructions on obtaining a prepaid
mail-in label that a consumer may use to send an out-of-service
mercury-added thermostat to a point of collection for mercury-added
thermostats.
Sec. 361.983. WHOLESALER DISTRIBUTION OF EDUCATIONAL AND
OUTREACH MATERIALS. A wholesaler shall distribute the educational
and outreach materials developed and made available under Section
361.976 to its customers.
Sec. 361.984. AIR-CONDITIONING AND REFRIGERATION
CONTRACTOR RESPONSIBILITIES. An air-conditioning and
refrigeration contractor who removes a mercury-added thermostat
shall:
(1) handle the thermostat in accordance with this
subchapter and rules adopted under this subchapter; and
(2) take the thermostat to a point of collection with a
collection bin operating in accordance with this subchapter and
rules adopted under this subchapter.
Sec. 361.985. MANUFACTURERS' COMPLIANCE ASSURANCE. The
commission may require a manufacturer or group of manufacturers
operating a program established under Section 361.973 to revise the
collection and recycling program and to take other necessary
actions to comply with this subchapter.
Sec. 361.986. AIR-CONDITIONING AND REFRIGERATION
CONTRACTOR COMPLIANCE. (a) The commission is responsible for
ensuring compliance with Section 361.984.
(b) The Texas Department of Licensing and Regulation shall
refer to the commission any complaints filed with that department
and any other information obtained by that department against an
air-conditioning and refrigeration contractor related to a
violation of Section 361.984.
Sec. 361.987. COMMISSION REPORT. Not later than August 1 of
each year, the commission shall compile information from progress
reports and comments received under Section 361.977 and issue an
electronic report to the committee in each house of the legislature
that has primary jurisdiction over environmental matters.
Sec. 361.988. DISPOSAL AND TRANSPORTATION REQUIREMENT. (a)
An owner or operator of a solid waste treatment, processing, or
disposal facility is not in violation of this subchapter or a rule
adopted under this subchapter if the owner or operator:
(1) posts in a conspicuous location a sign stating
that mercury-added thermostats are not accepted at the facility and
must be taken to a point of collection; and
(2) notifies in writing at least once each calendar
year until December 31, 2014, each solid waste collector who has
contracted to dispose of waste at the facility that mercury-added
thermostats are not accepted for disposal in a solid waste
treatment, processing, or disposal facility.
(b) A commercial transporter of solid waste who transports
waste to a solid waste treatment, processing, or disposal facility
is not in violation of this subchapter or a rule adopted under this
subchapter if the transporter notifies in writing at least once
each calendar year until December 31, 2014, each person who has
contracted directly with the transporter for the transportation of
solid waste that mercury-added thermostats are not accepted for
disposal in a solid waste treatment, processing, or disposal
facility.
SECTION 2. (a) A manufacturer's program established
individually or collectively under Section 361.973, Health and
Safety Code, as added by this Act, is required to provide collection
bins as provided by Section 361.974, Health and Safety Code, as
added by this Act, only on and after July 1, 2012.
(b) A manufacturer's program established individually or
collectively under Section 361.973, Health and Safety Code, as
added by this Act, is required to perform the duties provided by
Section 361.975, Health and Safety Code, as added by this Act, only
on and after July 1, 2012.
(c) A manufacturer's program established individually or
collectively under Section 361.973, Health and Safety Code, as
added by this Act, is required to develop, update, and make
available educational and outreach materials as provided by Section
361.976, Health and Safety Code, as added by this Act, only on and
after July 1, 2012.
(d) The first progress report required by Section 361.977,
Health and Safety Code, as added by this Act, is due April 1, 2013.
(e) The Texas Commission on Environmental Quality shall
begin posting the commission's list of noncompliant manufacturers
as provided by Section 361.979, Health and Safety Code, as added by
this Act, on July 1, 2012.
(f) The Texas Commission on Environmental Quality shall
issue the first report required by Section 361.987, Health and
Safety Code, as added by this Act, not later than August 1, 2013.
SECTION 3. This Act takes effect September 1, 2011.