82R6169 KJM-D
By: Ellis S.B. No. 1119
A BILL TO BE ENTITLED
AN ACT
relating to beverage container deposits and recycling; providing
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. TEXAS CONTAINER RECYCLING INITIATIVE
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) spirits;
(F) wine;
(G) wine coolers;
(H) soda;
(I) water, including mineral water;
(J) carbonated water, including carbonated
mineral water;
(K) carbonated soft drinks;
(L) noncarbonated soft drinks and sport drinks;
(M) noncarbonated fruit drinks;
(N) energy drinks;
(O) coffee and tea drinks; and
(P) 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) "Consumer" means a person who purchases 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.
(4) "Convenience redemption zone" means:
(A) the one-half-mile radius around a retail
dealer with at least $2 million in food-related sales each year who
is located in a municipality with a population of more than 50,000;
or
(B) the two-mile radius around a retail dealer
with at least $2 million in food-related sales each year who is not
located in a municipality described by Paragraph (A).
(5) "Distributor" means a person who distributes
beverages in beverage containers to retail dealers.
(6) "Infant formula" means any liquid food sold as an
alternative for human milk for the feeding of infants.
(7) "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).
(8) "Redemption center" means an operation approved by
the commission 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.
(9) "Refund" means a payment by a redemption center
under Section 376.201 to a person who presents a beverage container
at the redemption center.
(10) "Retail dealer" means a person who sells a
beverage in a beverage container to a consumer.
Sec. 376.002. ADMINISTRATION AND RULES. (a) The
comptroller shall establish and administer the Texas container
recycling initiative in accordance with this chapter.
(b) In administering the Texas container recycling
initiative, the comptroller shall:
(1) approve redemption centers under Section 376.152;
(2) enforce compliance with the provisions of this
chapter;
(3) administer the infrastructure improvement grant
program under Section 376.003;
(4) develop and implement a marketing plan to provide
information and educate consumers about the initiative;
(5) conduct any audit of the initiative the
comptroller determines is necessary;
(6) develop an operating budget for the initiative;
(7) ensure the solvency of the initiative's account;
(8) develop a system for reimbursement of deposits and
refunds and for distribution of handling fees;
(9) 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;
(10) develop a system for covering the start-up costs
of the initiative as described by Section 376.105;
(11) administer the Texas container recycling
initiative account as provided by Section 376.104; and
(12) adopt rules and forms necessary to implement this
chapter.
Sec. 376.003. INFRASTRUCTURE IMPROVEMENT GRANT PROGRAM.
(a) The comptroller shall develop and administer a program to
provide grants from money in the Texas container recycling
initiative account to ensure sufficient infrastructure is
available to increase the state recycling rate by expanding
curbside recycling programs, municipal recycling facilities, and
independent redemption centers.
(b) The total amount of money available each year under the
grant program may not exceed five percent of the money available in
the account.
(c) The comptroller may adopt guidelines to allow a regional
planning commission, council of governments, or similar regional
planning agency created under Chapter 391, Local Government Code,
to apply for and receive a grant to improve the ability of the
program to achieve its goals.
(d) A recipient of a grant under this section must return
any unexpended grant money to the comptroller for redeposit into
the account.
(e) A project funded by a grant under this section must
promote cooperation between public and private entities and may not
be used to create a competitive advantage over a private industry
that provides recycling services.
(f) Not later than September 1 of each year, an entity
receiving a grant under this section must submit a report to the
comptroller detailing the use of the grant money. The comptroller
shall include this information in its report to the legislature
under 376.005.
(g) An application for a grant under this section must be
made on a form provided by the comptroller and must contain the
information required by the comptroller.
(h) This section expires when the state recycling rate
reaches 65 percent, as determined by the comptroller.
Sec. 376.004. CRIMINAL PENALTIES. A person commits an
offense if the person knowingly violates Section 376.051, 376.101,
376.102, or 376.201. 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 comptroller shall submit a report to
the governor, lieutenant governor, speaker of the house of
representatives, and committee in each house of the legislature
that has primary jurisdiction over environmental matters about the
progress and success of the Texas container recycling initiative
established under this chapter.
[Sections 376.006-376.050 reserved for expansion]
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 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 sell or offer for sale 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 offered for
sale in this state must have legibly stamped, labeled, or embossed
on the container:
(1) the refund value of the container;
(2) the name "Texas" or the abbreviation "TX"; and
(3) other language as required by the commission.
(b) Any 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 indicia.
[Sections 376.053-376.100 reserved for expansion]
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) The invoice for a beverage container sold by a retail
dealer to a consumer must list the beverage container deposit as a
separate line item. The deposit may not be included in the 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 comptroller 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 comptroller, on a form approved
by the comptroller:
(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 comptroller may require a distributor to include in
the report required by Subsection (a) other information the
comptroller considers necessary.
(c) The information contained in the report required by this
section is confidential and may not be disclosed by the comptroller
or an officer or employee of the comptroller.
Sec. 376.104. TEXAS CONTAINER RECYCLING INITIATIVE
ACCOUNT. (a) Deposits collected under this chapter shall be
deposited to the credit of the Texas container recycling initiative
account in the general revenue fund. Money in the account may be
appropriated 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 Texas container recycling initiative;
(4) reimbursing a distributor under Section 376.105;
and
(5) the purposes authorized under Section 376.003.
(b) At the end of each state fiscal biennium, any money in
the account that is unencumbered must be distributed as follows:
(1) 15 percent must be retained in the account for
unforeseen costs associated with a higher than expected recycling
rate; and
(2) 85 percent must be transferred to the undedicated
portion of the general revenue fund.
Sec. 376.105. FINANCING START-UP COSTS. (a) The
comptroller may apply for, accept, receive, and administer gifts,
grants, loans, and other funds available from any source for the
purposes of this chapter.
(b) The comptroller may charge distributors an initial fee
in an amount necessary to cover the start-up costs of the Texas
container recycling initiative. The comptroller shall reimburse
the distributors as sufficient money becomes available.
(c) The comptroller shall deposit revenue collected under
this section to the credit of the Texas container recycling
initiative account in the general revenue fund.
[Sections 376.106-376.150 reserved for expansion]
SUBCHAPTER D. REDEMPTION CENTERS AND CONVENIENCE REDEMPTION ZONES
Sec. 376.151. CONVENIENCE REDEMPTION ZONES. (a) A retail
dealer may not sell a beverage in a beverage container eligible for
redemption under this chapter to a consumer if there is not a
redemption center within the retail dealer's convenience
redemption zone.
(b) On petition by a retail dealer, the comptroller may
exempt the dealer from the requirements of this section if the
comptroller determines that extenuating circumstances support the
exemption.
(c) A redemption center within a convenience redemption
zone may be owned and operated by a retail dealer, local government,
or independent entity.
(d) A retail dealer who owns and operates a redemption
center shall register with the comptroller in the manner described
by Section 376.152.
Sec. 376.152. REDEMPTION CENTERS. (a) To facilitate the
return of empty beverage containers, a retail dealer, local
government, or independent entity may establish a redemption center
at which empty containers may be returned for their refund value.
(b) The retail dealer, local government, or independent
entity must file an application for approval of a redemption center
with the comptroller. The application must state:
(1) the name, mailing address, telephone number,
electronic 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 name and address of each retail dealer in whose
convenience redemption zone the redemption center is located;
(4) the applicant's federal tax identification number,
if applicable; and
(5) any additional information the comptroller by rule
requires as necessary or convenient for the implementation of this
section.
(c) The comptroller by order 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. The
comptroller may include in the order other provisions that the
comptroller determines are necessary to ensure that the redemption
center will provide a convenient service to the public.
(d) The comptroller 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 in whose convenience redemption zone the
redemption center is located, the comptroller may, after a hearing,
withdraw approval of a redemption center if the comptroller finds
the redemption center has violated the order approving the
redemption center.
(e) The comptroller by rule shall establish the required
hours of operation for a redemption center.
(f) The comptroller may not limit the number of redemption
centers within a convenience redemption zone.
[Sections 376.153-376.200 reserved for expansion]
SUBCHAPTER E. BEVERAGE CONTAINER REDEMPTION
Sec. 376.201. USED BEVERAGE CONTAINER REDEMPTION. Except
as provided by Sections 376.202 and 376.203, 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 to the person presenting the container if the
container is stamped, labeled, or embossed with the refund value
and the name "Texas" or the abbreviation "TX."
Sec. 376.202. REFUSAL PERMITTED. A redemption center may
refuse to accept for refund:
(1) a glass bottle that is broken to the extent that it
would present a safety hazard when handled; or
(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.
Sec. 376.203. REDEMPTION BY WEIGHT. (a) The comptroller by
rule shall establish:
(1) a procedure for providing a reimbursement based on
the weight 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;
(2) a per pound redemption value for containers
composed of each material covered by this chapter that are redeemed
in the manner described by Subdivision (1);
(3) a per pound redemption value for unsorted
containers composed of any material covered by this chapter that
are collected as part of a single-stream recycling program and
redeemed in the manner described by Subdivision (1);
(4) a per pound handling fee to be paid to redemption
centers and curbside recycling programs for containers redeemed in
the manner described by Subdivision (1); and
(5) procedures for regulating the accuracy of scales
used to weigh containers under this section.
(b) Not more than every six months the comptroller by rule
may adjust the per pound rates described by Subsection (a).
Sec. 376.204. DISPOSAL OF BEVERAGE CONTAINERS BY REDEMPTION
CENTER AND CURBSIDE RECYCLING PROGRAM. A redemption center or
curbside recycling program shall dispose of the returned used
beverage containers by:
(1) selling the material generated by the crushed or
shredded used beverage containers to a processor or other end user;
or
(2) recycling the material in another manner
prescribed by the comptroller.
Sec. 376.205. REIMBURSEMENT OF REDEMPTION CENTERS BY
COMPTROLLER; HANDLING FEE. (a) On submission of a completed
invoice of refunds paid by a redemption center on a form adopted by
the comptroller, the comptroller shall pay to the redemption center
an amount equal to the redemption value established by Section
376.051 or 376.203, 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 per pound amount determined under Section
376.203 for beverage containers redeemed in the manner described by
that section.
(b) The comptroller shall reimburse a redemption center
under Subsection (a) not later than five working days after the
comptroller receives the invoice submitted by the redemption
center.
(c) The comptroller by rule may adjust a handling fee to
account for changes in market conditions. The comptroller may
periodically conduct research to determine if an adjustment is
necessary.
Sec. 376.206. REIMBURSEMENT OF CURBSIDE RECYCLING PROGRAM
BY COMPTROLLER. (a) On submission of a completed report, on a form
adopted by the comptroller, indicating the number or weight, as
applicable, of beverage containers collected by a curbside
recycling program that are covered under this chapter, the
comptroller shall pay to the curbside recycling program an amount
equal to the redemption value established by Section 376.051 or
376.203, as applicable, plus a handling fee of:
(1) one-half of one cent for each beverage container
collected by the curbside recycling program; or
(2) the per pound amount determined under Section
376.203 for beverage containers redeemed in the manner described by
that section.
(b) The comptroller shall reimburse a curbside recycling
program under Subsection (a) not later than five working days after
the comptroller receives the invoice submitted by the curbside
recycling program.
(c) The comptroller by rule may adjust a handling fee to
account for changes in market conditions. The comptroller may
periodically conduct research to determine if an adjustment is
necessary.
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 comptroller, on a form
approved by the comptroller, 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 under Section 376.204.
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 fee under Chapter
376, Health and Safety Code.
SECTION 3. (a) Not later than September 1, 2012, the
comptroller of public accounts shall adopt the 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, 2013.
SECTION 4. This Act takes effect September 1, 2011.