By: Watson, Hinojosa S.B. No. 329
(In the Senate - Filed January 11, 2011; February 2, 2011,
read first time and referred to Committee on Natural Resources;
March 17, 2011, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 11, Nays 0; March 17, 2011,
sent to printer.)
COMMITTEE SUBSTITUTE FOR S.B. No. 329 By: Jackson
A BILL TO BE ENTITLED
AN ACT
relating to the sale, recovery, and recycling of certain television
equipment; providing administrative penalties.
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. TELEVISION EQUIPMENT RECYCLING PROGRAM
Sec. 361.971. DEFINITIONS. In this subchapter:
(1) "Brand" has the meaning assigned by Section
361.952.
(2) "Consumer" means an individual who uses covered
television equipment that is purchased primarily for personal or
home business use.
(3) "Covered television equipment" means the
following equipment marketed to and intended for consumers:
(A) a direct view or projection television with a
viewable screen of nine inches or larger whose display technology
is based on cathode ray tube, plasma, liquid crystal, digital light
processing, liquid crystal on silicon, silicon crystal reflective
display, light-emitting diode, or similar technology; or
(B) a display device that is peripheral to a
computer that contains a television tuner.
(4) "Market share allocation" means the quantity of
covered television equipment, by weight, that an individual
television manufacturer submitting a recovery plan under Section
361.977 is responsible for collecting, reusing, and recycling, as
computed by the commission under Section 361.983(g).
(5) "Recycling" means any process by which equipment
that would otherwise become solid waste or hazardous waste is
collected, separated, and refurbished for reuse or processed to be
returned to use in the form of raw material or products. The term
does not include incineration.
(6) "Retailer" means a person who owns or operates a
business that sells new covered television equipment by any means
directly to a consumer. The term does not include a person who, in
the ordinary course of business, regularly leases, offers to lease,
or arranges for the leasing of merchandise under a rental-purchase
agreement.
(7) "Television" means an electronic device that
contains a tuner that locks onto a selected carrier frequency and is
capable of receiving and displaying video programming from a
broadcast, cable, or satellite source.
(8) "Television manufacturer" means a person that:
(A) manufactures covered television equipment
under a brand the person owns or is licensed to use;
(B) manufactures covered television equipment
without affixing a brand;
(C) resells covered television equipment
produced by other suppliers under a brand the person owns or is
licensed to use;
(D) manufactures covered television equipment,
supplies it to any person within a distribution network that
includes a wholesaler or retailer, and benefits from the sale of the
covered television equipment through that distribution network; or
(E) assumes the responsibilities of a television
manufacturer under this subchapter.
Sec. 361.972. LEGISLATIVE FINDINGS AND PURPOSE. The
purpose of this subchapter is to establish a comprehensive,
convenient, and environmentally sound program for the collection
and recycling of television equipment. The program is based on
individual television manufacturer responsibility and shared
responsibility among consumers, retailers, and the government of
this state.
Sec. 361.973. APPLICABILITY. (a) Except as provided by
this section and Section 361.991, this subchapter applies only to
covered television equipment that is:
(1) offered for sale or sold to a consumer in this
state; or
(2) used by a consumer in this state and returned for
recycling.
(b) This subchapter does not apply to:
(1) computer equipment as that term is defined by
Section 361.952;
(2) a manufacturer of a display device that is
peripheral to a computer and contains a television tuner, if that
manufacturer collects and recycles the device in accordance with
Subchapter Y;
(3) any part of a motor vehicle, including a
replacement part;
(4) a device that is functionally or physically part
of or connected to another system or piece of equipment:
(A) designed and intended for use in an
industrial, governmental, commercial, research and development, or
medical setting, including diagnostic monitoring or control
equipment; or
(B) used for security, sensing, monitoring,
antiterrorism, or emergency services purposes;
(5) a device that is contained in exercise equipment
intended for home use or an appliance intended for home use
including a clothes washer, clothes dryer, refrigerator,
refrigerator and freezer, microwave oven, conventional oven or
range, dishwasher, room air conditioner, dehumidifier, and air
purifier;
(6) a telephone of any type;
(7) a personal digital assistant;
(8) a global positioning system;
(9) a consumer's lease of covered television equipment
or a consumer's use of covered television equipment under a lease
agreement; or
(10) the sale or lease of covered television equipment
to an entity when the television manufacturer and the entity enter
into a contract that effectively addresses the recycling of
equipment that has reached the end of its useful life.
Sec. 361.974. SALES PROHIBITION. A person may not offer for
sale in this state new covered television equipment unless the
equipment has been labeled in compliance with Section 361.975.
Sec. 361.975. MANUFACTURER'S LABELING REQUIREMENT. A
television manufacturer may sell or offer for sale in this state
only covered television equipment that is labeled with the
television manufacturer's brand. The label must be permanently
affixed and readily visible.
Sec. 361.976. MANUFACTURERS' REGISTRATION AND REPORTING.
(a) A television manufacturer of covered television equipment
shall register with the commission and, except as provided by
Section 361.978, pay a registration fee of $2,500. A registered
television manufacturer shall renew the registration and, except as
provided by Section 361.978, pay the fee on or before July 1 of each
year. The registration or registration renewal must include:
(1) a list of all brands the television manufacturer
uses in this state on covered television equipment regardless of
whether the television manufacturer owns or is licensed to use the
brand; and
(2) contact information for the person the commission
may contact regarding the television manufacturer's activities to
comply with this subchapter.
(b) Except as provided by Section 361.978, not later than
July 1 of each year, each registered television manufacturer of
covered television equipment shall report to the commission:
(1) the total weight of covered television equipment
for which the television manufacturer is responsible that was sold
in this state during the preceding calendar year or, if the
manufacturer does not track the weight of covered television
equipment it sells by state, the television manufacturer may report
the total amount of covered television equipment the television
manufacturer sold nationally in the preceding calendar year; and
(2) the total weight of covered television equipment
the television manufacturer collected and recycled in this state
during the preceding calendar year.
Sec. 361.977. MANUFACTURER'S RECOVERY PLAN AND RELATED
RESPONSIBILITIES. (a) This section does not apply to a television
manufacturer that participates in a recycling leadership program
described by Section 361.978.
(b) Each television manufacturer of covered television
equipment sold in this state shall, individually or as a member of a
group of television manufacturers, submit to the commission a
recovery plan to collect, reuse, and recycle covered television
equipment.
(c) An individual television manufacturer that submits a
recovery plan under Subsection (b) shall collect, reuse, and
recycle covered television equipment. Beginning with the
television manufacturer's second year of registration, the
individual television manufacturer shall collect, reuse, and
recycle the quantity of covered television equipment computed by
the commission as the television manufacturer's market share
allocation.
(d) A group of television manufacturers that submits a
recovery plan under Subsection (b) shall collect, reuse, and
recycle covered television equipment. Beginning the second year of
registration for a group of television manufacturers, the group of
television manufacturers shall collect, reuse, and recycle a
quantity of covered television equipment equal to the sum of the
combined market share allocations of the group's participants.
(e) A recovery plan under Subsection (b) must include at a
minimum:
(1) a statement of whether the television manufacturer
intends to collect and recycle its market share allocation through
operation of its program, individually or in partnership with other
television manufacturers;
(2) beginning with the television manufacturer's
second year of registration, the total weight of covered television
equipment collected, reused, and recycled by or on behalf of the
television manufacturer during the preceding year; and
(3) collection methods that allow a consumer to
recycle covered television equipment without paying a separate fee
at the time of recycling.
(f) The commission shall review the recovery plan for
satisfaction of the requirements of this subchapter. If the
registration and recovery plan are complete, the commission shall
include the television manufacturer on the commission's Internet
website listing as provided by Section 361.983(a). The commission
may reject the recovery plan if it does not meet all requirements of
this subchapter.
Sec. 361.978. MANUFACTURER RECYCLING LEADERSHIP PROGRAM.
(a) A group of television manufacturers may establish a recycling
leadership program to provide collection, transportation, and
recycling infrastructure for covered television equipment in this
state.
(b) A recycling leadership program must:
(1) provide at least 200 individual collection sites
or programs in this state in a manner described by Subsection (d)
where a consumer may return covered television equipment for reuse
or recycling; and
(2) include television manufacturers that
cumulatively represent at least five percent of the television
equipment industry in terms of the total amount of television
equipment sold in this state.
(c) A television manufacturer may not charge a separate fee
at the time of recycling under this section unless at the time of
recycling a financial incentive of equal or greater value to the fee
charged is provided by the television manufacturer.
(d) Collection methods that may be used by a recycling
leadership program under Subsection (b) for the recycling of
covered television equipment include:
(1) a system by which the television manufacturer, an
entity designated by the television manufacturer, or another
private or public sector entity associated with the television
manufacturer offers a consumer a physical collection site to return
covered television equipment;
(2) a system by which the television manufacturer, an
entity designated by the television manufacturer, or another
private or public sector entity associated with the television
manufacturer offers the consumer a method for returning covered
television equipment by mail; and
(3) a system by which the television manufacturer, an
entity designated by the television manufacturer, or another
private or public sector entity associated with the television
manufacturer holds a collection event where the consumer may return
covered television equipment.
(e) A television manufacturer of covered television
equipment sold in this state that is participating in a recycling
leadership program for covered television equipment as of January 1
of any year is not subject during that year to:
(1) the registration fees and renewal fees required by
Section 361.976(a); and
(2) the reporting requirements of Section 361.976(b).
(f) A television manufacturer of covered television
equipment that is sold in this state that participates in a
recycling leadership program shall individually or through the
recycling leadership program establish and implement a public
education program regarding collection, reuse, and recycling
opportunities that exist in this state for covered television
equipment. The public education program must:
(1) inform consumers about the collection, reuse, and
recycling opportunities for covered television equipment available
in this state;
(2) work with the commission and other interested
parties to develop educational materials that inform consumers
about collection, reuse, and recycling opportunities available in
this state; and
(3) use television manufacturer-developed customer
outreach materials, such as packaging inserts, television
manufacturers' Internet websites, and other communication methods,
to inform consumers about collection, reuse, and recycling
opportunities for covered television equipment available in this
state.
Sec. 361.979. RECYCLING LEADERSHIP PROGRAM COLLECTION
REPORT. (a) Not later than March 1 of each year, a television
manufacturer of covered television equipment sold in this state
that is participating in a recycling leadership program under
Section 361.978 shall, individually or as a member of the recycling
leadership program, submit to the commission and to the committee
in each house of the legislature that has primary jurisdiction over
environmental matters a collection report regarding the television
manufacturer's collection, reuse, and recycling of covered
television equipment.
(b) The collection report must include:
(1) an inventory of covered television equipment
collection, reuse, and recycling opportunities that are currently
available to consumers through the individual television
manufacturer or the recycling leadership program in this state; and
(2) documentation of collection opportunities
available to consumers in counties with populations of less than
50,000, including an analysis of the number of collection sites
available to consumers in those counties compared to the number of
opportunities available to consumers in those counties to purchase
new covered television equipment.
(c) The inventory of covered television equipment
collection, reuse, and recycling opportunities required by
Subsection (b)(1) may be submitted in the form of a map noting the
location of the opportunities.
(d) The collection report may include:
(1) a listing of other existing collection and
recycling infrastructure for covered television equipment not
associated with the recycling leadership program, including
electronic recyclers and repair shops, recyclers of other
appropriate commodities, reuse organizations, not-for-profit
corporations, retailers, and other suitable operations, including
local government collection events, if available; and
(2) the amount by weight of the covered television
equipment that the individual television manufacturer or the
recycling leadership program has collected in the preceding year.
Sec. 361.980. RETAILER RESPONSIBILITY. (a) A retailer may
order and sell only products from a television manufacturer that is
included on the list published under Section 361.983(a). A
retailer shall consult that list before ordering covered television
equipment in this state. A retailer is considered to have complied
with this subsection and may sell a product in the retailer's
inventory if, on the date the product was ordered from the
television manufacturer, the television manufacturer was listed on
the Internet website described by Section 361.983(a).
(b) A person who is a retailer of covered television
equipment shall provide to consumers in writing the information
published by the commission regarding the legal disposition and
recycling of television equipment. The information may be included
with the sales receipt or as part of the packaging of the equipment.
Alternatively, the retailer may provide the information required by
this subsection through a toll-free telephone number and address of
an Internet website provided to consumers.
(c) This subchapter does not require a retailer to collect
covered television equipment for recycling.
Sec. 361.981. RECYCLER RESPONSIBILITIES. A person who is
engaged in the business of recycling covered television equipment
in this state shall:
(1) register with the commission and certify that the
person is in compliance with the standards adopted under Section
361.990;
(2) on or before January 31 of each year renew the
registration with the commission and certify the person's continued
compliance with the standards adopted under Section 361.990;
(3) recycle all covered television equipment accepted
for recycling in accordance with the standards adopted under
Section 361.990;
(4) maintain a written log recording the weight of all
covered television equipment received by the person and the
disposition of that equipment; and
(5) annually report to the commission the total weight
of covered television equipment received and recycled by the person
in the preceding 12 months.
Sec. 361.982. LIABILITY. (a) A television manufacturer,
retailer, or person who recycles covered television equipment is
not liable in any way for information in any form that a consumer
leaves on covered television equipment that is collected or
recycled under this subchapter.
(b) This subchapter does not exempt a person from liability
under other law.
Sec. 361.983. COMMISSION RESPONSIBILITIES. (a) The
commission shall publish on a publicly accessible Internet website:
(1) a list of television manufacturers who have
registered with the commission; and
(2) a list of television manufacturers who are in full
compliance with this subchapter.
(b) The commission shall remove television manufacturers no
longer in compliance with this subchapter from the Internet website
once each calendar quarter.
(c) The commission shall educate consumers regarding the
collection and recycling of covered television equipment.
(d) The commission shall host or designate another person to
host an Internet website and shall provide a toll-free telephone
number to provide consumers with information about the recycling of
covered television equipment, including best management practices
and information about or links to information about:
(1) television manufacturers' collection and
recycling programs, including television manufacturers' recovery
plans; and
(2) covered television equipment collection events,
collection sites, and community television equipment recycling
programs.
(e) Information about collection and recycling provided on
a television manufacturer's publicly available Internet website
and through a toll-free telephone number does not constitute a
determination by the commission that the television manufacturer's
recovery plan or actual practices are in compliance with this
subchapter or other law.
(f) Not later than February 15 of each year, the commission
shall establish the state recycling rate by computing the ratio of
the weight of total returns of covered television equipment in this
state by television manufacturers submitting a recovery plan under
Section 361.977 to the total weight of covered television equipment
sold in this state by television manufacturers submitting a
recovery plan under Section 361.977 during the preceding year.
(g) Not later than March 1 of each year, the commission
shall compute and provide to each registered television
manufacturer submitting a recovery plan under Section 361.977 the
television manufacturer's market share allocation for collection,
reuse, and recycling for that year. A television manufacturer's
market share allocation equals the weight of the television
manufacturer's covered television equipment sold in this state
during the preceding calendar year multiplied by the state
recycling rate determined under Subsection (f).
(h) In any year in which more than one recycling leadership
program is implemented under Section 361.978, the commission shall
review all active recycling leadership programs established under
this subchapter to ensure the programs are operating in a manner
consistent with the goals of this subchapter, including a balanced
recycling effort. Based on the commission's review, the commission
may make recommendations to the legislature on ways to improve the
balance of the recycling effort.
(i) The commission shall provide to each county and
municipality of this state information regarding the legal disposal
and recycling of covered television equipment. The information
must be provided in writing.
Sec. 361.984. ENFORCEMENT. (a) The commission may conduct
audits and inspections to ensure compliance with this subchapter
and rules adopted under this subchapter.
(b) The commission and the attorney general, as
appropriate, shall enforce this subchapter and, except as provided
by Subsections (d) and (e), take enforcement action against a
television manufacturer, a retailer, or a person who recycles
covered television equipment.
(c) The executive director or the attorney general may
institute a suit under Section 7.032, Water Code, to enjoin an
activity related to the sale of covered television equipment in
violation of this subchapter.
(d) The commission shall issue a warning notice to a person
on the person's first violation of this subchapter. The person must
comply with this subchapter not later than the 60th day after the
date the warning notice is issued.
(e) A retailer who receives a warning notice from the
commission that the retailer's inventory violates this subchapter
because it includes covered television equipment from a television
manufacturer that is not in compliance with this subchapter must
bring the inventory into compliance with this subchapter not later
than the 60th day after the date the warning notice is issued.
Sec. 361.985. FINANCIAL AND PROPRIETARY INFORMATION.
Financial or proprietary information submitted to the commission
under this subchapter is exempt from public disclosure under
Chapter 552, Government Code.
Sec. 361.986. ANNUAL REPORT TO LEGISLATURE. (a) The
commission shall compile information from television manufacturers
and issue an electronic report to the committee in each house of the
legislature having primary jurisdiction over environmental matters
not later than March 1 of each year.
(b) The report must include:
(1) collection information provided to the commission
by each television manufacturer's annual report required by Section
361.976(b) or 361.979(a), as applicable;
(2) a summary of comments that have been received from
stakeholders such as television manufacturers, electronic
equipment recyclers, local governments, and nonprofit
organizations;
(3) any recommendations under Section 361.983(h); and
(4) any other information that would assist the
legislature in evaluating the effectiveness of this subchapter.
Sec. 361.987. PROGRESS REPORT. (a) Not later than
September 1, 2017, the commission shall submit a report to the
lieutenant governor, the speaker of the house of representatives,
and the committees in each house of the legislature having primary
jurisdiction over:
(1) environmental matters;
(2) state affairs; and
(3) business.
(b) The report must include:
(1) an evaluation of the effectiveness of covered
television equipment collection, reuse, and recycling efforts
under this subchapter; and
(2) any recommendations for improvement of the
collection, reuse, and recycling efforts under this subchapter.
(c) In order to prepare the report required under Subsection
(a), the commission shall require any recycling leadership program
established under Section 361.978 to submit the program's
collection amount in weight for the preceding six years.
(d) This section expires September 1, 2018.
Sec. 361.988. FEES. (a) Except as provided by Section
361.976(a), this subchapter does not authorize the commission to
impose a fee, including a recycling fee, on a consumer, television
manufacturer, retailer, or person who recycles covered television
equipment.
(b) Fees or costs collected under this subchapter may be
used by the commission only to implement this subchapter.
Sec. 361.989. CONSUMER RESPONSIBILITIES. (a) A consumer
is responsible for any information in any form left on the
consumer's covered television equipment that is collected or
recycled.
(b) A consumer is encouraged to learn about recommended
methods for recycling covered television equipment that has reached
the end of its useful life by visiting the commission's and
television manufacturers' Internet websites or calling their
toll-free telephone numbers.
Sec. 361.990. MANAGEMENT OF COLLECTED TELEVISION
EQUIPMENT. (a) Covered television equipment collected under this
subchapter must be disposed of or recycled in a manner that complies
with federal, state, and local law.
(b) For the purposes of recycling, reusing, or otherwise
disposing of collected covered television equipment, a television
manufacturer must follow the standards established under
"Responsible Recycling Practices for Use in Accredited
Certification Programs for Electronic Recyclers," "e-Stewards
Standard for Responsible Recycling and Reuse of Electronic
Equipment," or the recycling standards adopted by the commission or
use a recycler that follows those standards.
Sec. 361.991. STATE PROCUREMENT REQUIREMENTS. (a) In
this section, "state agency" has the meaning assigned by Section
2052.101, Government Code.
(b) A person who submits a bid for a contract with a state
agency for the purchase or lease of covered television equipment
must be in compliance with this subchapter.
(c) A state agency that purchases or leases covered
television equipment shall require a prospective bidder to certify
the bidder's compliance with this subchapter before the agency may
accept the prospective bidder's bid.
(d) In considering bids for a contract for covered
television equipment, in addition to any other preferences provided
under other laws of this state, the state shall give special
preference to a television manufacturer that:
(1) through its recovery plan collects more than its
market share allocation; or
(2) provides collection sites or recycling events in
any county located in a council of governments region in which there
are fewer than six permanent collection sites open at least twice
each month.
(e) The comptroller shall adopt rules to implement this
section.
Sec. 361.992. FEDERAL PREEMPTION; EXPIRATION. (a) If
federal law establishes a national program for the collection and
recycling of covered television equipment and the commission
determines that the federal law substantially meets the purposes of
this subchapter, the commission may adopt an agency statement that
interprets the federal law as preemptive of this subchapter.
(b) This subchapter expires on the date the commission
issues a statement under this section.
SECTION 2. Subsections (b-1) and (b-2), Section 7.052,
Water Code, are amended to read as follows:
(b-1) The amount of the penalty assessed against a
manufacturer that does not label its computer equipment or covered
television equipment or adopt and implement a recovery plan as
required by Section 361.955, 361.975, or 361.977, Health and Safety
Code, as applicable, may not exceed $10,000 for the second
violation or $25,000 for each subsequent violation. A penalty
under this subsection is in addition to any other penalty that may
be assessed for a violation of Subchapter Y or Z, Chapter 361,
Health and Safety Code.
(b-2) Except as provided by Subsection (b-1), the amount of
the penalty for a violation of Subchapter Y or Z, Chapter 361,
Health and Safety Code, may not exceed $1,000 for the second
violation or $2,000 for each subsequent violation. A penalty under
this subsection is in addition to any other penalty that may be
assessed for a violation of Subchapter Y or Z, Chapter 361, Health
and Safety Code.
SECTION 3. (a) The Texas Commission on Environmental
Quality shall adopt any rules required to implement this Act not
later than May 1, 2012.
(b) This Act may not be enforced before July 1, 2012.
(c) A report required under Section 361.976, Health and
Safety Code, as added by this Act, is not required to be prepared or
submitted for the first time before July 1, 2013.
(d) A recovery plan required under Section 361.977, Health
and Safety Code, as added by this Act, is not required to be
prepared and submitted before July 1, 2013.
(e) To qualify as a member of a recycling leadership program
for 2013 under Section 361.978, Health and Safety Code, as added by
this Act, a television manufacturer must provide documentation to
the Texas Commission on Environmental Quality that the manufacturer
is participating in a program before January 1, 2013.
(f) A collection report required under Section 361.979,
Health and Safety Code, as added by this Act, is not required to be
prepared and submitted for the first time before March 1, 2013.
(g) A retailer of covered television equipment is not
required to provide the information described by Subsection (b),
Section 361.980, Health and Safety Code, as added by this Act,
before the date on which the Texas Commission on Environmental
Quality rules implementing this Act take effect.
(h) Not later than September 1, 2013, the Texas Commission
on Environmental Quality shall prepare and post for the first time
the list required under Section 361.983, Health and Safety Code, as
added by this Act.
(i) Notwithstanding Section 361.984, Health and Safety
Code, as added by this Act, a retailer of television equipment may
sell television equipment inventory that the retailer acquired
before September 1, 2013, without incurring a penalty.
(j) The Texas Commission on Environmental Quality is not
required to prepare or submit for the first time the report required
under Section 361.986, Health and Safety Code, as added by this Act,
before March 1, 2014.
SECTION 4. This Act takes effect September 1, 2011.
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