83R125 JAM-F
By: Ellis S.B. No. 645
A BILL TO BE ENTITLED
AN ACT
relating to water quality improvement and pollution reduction
through beverage container recycling incentives; assessing a fee;
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 BEVERAGE CONTAINER RECYCLING INCENTIVE PROGRAM
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) wine coolers;
(F) soda;
(G) water, including mineral water and vitamin
water;
(H) carbonated water, including carbonated
mineral water;
(I) carbonated soft drinks;
(J) noncarbonated soft drinks and sport drinks;
(K) noncarbonated fruit drinks;
(L) energy drinks;
(M) coffee and tea drinks; and
(N) 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) "Consortium" means the Texas Beverage Container
Recycling Consortium.
(4) "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.
(5) "Distributor" means a person who distributes
beverages in beverage containers to retail dealers.
(6) "Incentive program" means the Texas beverage
container recycling program established under this chapter.
(7) "Infant formula" means any liquid food sold as an
alternative for human milk for the feeding of infants.
(8) "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).
(9) "Redemption center" means an operation approved by
the consortium 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.
(10) "Refund" means a payment by a redemption center
under Section 376.201 to a person who presents a beverage container
at the redemption center.
(11) "Retail dealer" means a person who sells a
beverage in a beverage container to a consumer.
Sec. 376.002. TEXAS BEVERAGE CONTAINER RECYCLING
CONSORTIUM. (a) The consortium is an association formed to
administer the incentive program.
(b) The consortium consists of nine members appointed by the
governor as follows:
(1) one distributor of alcoholic beverages;
(2) one distributor of nonalcoholic beverages;
(3) one recycler;
(4) one beverage retailer;
(5) one representative from the waste industry;
(6) one redemption center operator;
(7) one container processor or remanufacturer;
(8) one representative from the comptroller's office;
and
(9) one representative from the general public.
(c) The members serve staggered terms of three years with
three members' terms expiring June 1 of each year.
(d) The members shall appoint an executive director to
oversee the consortium's operation.
Sec. 376.003. ADMINISTRATION AND RULES. (a) In
administering the incentive program, the consortium shall:
(1) enter into appropriate agreements approving
redemption centers under Section 376.151;
(2) enforce compliance with the provisions of this
chapter;
(3) develop and implement a marketing plan to provide
information and educate consumers about the incentive program;
(4) conduct any audit of the incentive program the
comptroller determines is necessary;
(5) develop an operating budget for the incentive
program;
(6) ensure the solvency of the incentive program's
account;
(7) develop a system for reimbursement of deposits and
refunds and for distribution of handling fees;
(8) 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;
(9) develop a system to prevent fraudulent use of the
incentive program;
(10) administer an account as provided by Section
376.104;
(11) adopt procedures and forms necessary to implement
this chapter; and
(12) develop and maintain a publicly accessible
website to provide information about the program, including
redemption center locations.
(b) The comptroller, after consultation with the
consortium, may adopt rules necessary to implement this chapter.
Sec. 376.004. CRIMINAL PENALTIES. A person commits an
offense if the person knowingly violates Section 376.051, 376.101,
376.102, 376.201, or 376.204. 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 consortium shall submit a report to the
governor, lieutenant governor, speaker of the house of
representatives, the comptroller, the Texas Commission on
Environmental Quality, and the committee in each house of the
legislature that has primary jurisdiction over environmental
matters about the progress and success of the incentive program.
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 distribute, 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 distribute, sell, or offer for sale in this
state 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 distributed or
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 consortium.
(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 indicium.
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) A retail dealer who sells one or more beverage
containers to a consumer shall list the beverage container deposit
paid as a separate line item on a receipt given to the consumer. The
deposit may not be included in any 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 consortium 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 consortium, on a form approved
by the consortium:
(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 consortium may require a distributor to include in
the report required by Subsection (a) other information the
consortium considers necessary.
(c) The information contained in the report required by this
section is confidential and may not be disclosed by the consortium
or an officer or employee of the consortium.
Sec. 376.104. INCENTIVE PROGRAM ACCOUNT. (a) Deposits
collected under this chapter shall be deposited to the credit of an
account maintained by the consortium. Money in the account may be
allocated 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 incentive program;
(4) the purposes authorized under Subsections (b) and
(c); and
(5) implementation of the state's water infrastructure
plan.
(b) At the end of each state fiscal biennium, two percent of
the money in the account that is unencumbered must be redistributed
to beverage distributors in proportion to the amount that each
distributor contributed to the account.
(c) On the last day of each state fiscal biennium, the
consortium shall send to the comptroller a fee in the amount of two
and one-half percent of the unencumbered balance of the account for
deposit in the state treasury to the credit of the Texas Commission
on Environmental Quality. Money deposited under this subsection
may be appropriated only for the purposes of Section 361.014(b).
The money must be allocated as provided by that subsection and each
planning region shall include in the biennial report issued under
that subsection information detailing how the money is spent. This
subsection expires when the state recycling rate reaches 65
percent, as determined by the comptroller based on information
available from the consortium and local governments and regional
planning commissions that receive money allocated as provided by
Section 361.014(b).
SUBCHAPTER D. REDEMPTION CENTERS
Sec. 376.151. ESTABLISHMENT OF REDEMPTION CENTER
AGREEMENTS. (a) To facilitate the return of empty beverage
containers, a retail dealer, local government, or independent
entity may establish, own, and operate 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 consortium. The application must provide:
(1) the name, mailing address, telephone number,
e-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 applicant's federal tax identification number,
if applicable; and
(4) any additional information the consortium
requires as necessary or convenient for the implementation of this
section.
(c) The consortium 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.
(d) The consortium 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 located within a two-mile radius of the
redemption center, the consortium may, after providing the owner or
operator an opportunity for a hearing to verify facts and resolve
the matter at issue, withdraw approval of a redemption center if the
consortium finds the redemption center has violated any terms of
the approval of the redemption center.
(e) The consortium and applicant shall establish the
required hours of operation for a redemption center in the approval
under Subsection (c).
(f) The consortium may not limit the number of redemption
centers within a geographic area.
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 consortium
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 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 consortium may adjust
the per pound rates described by Subsection (a).
Sec. 376.204. RECYCLING OF BEVERAGE CONTAINERS BY
REDEMPTION CENTER AND CURBSIDE RECYCLING PROGRAM. A redemption
center or curbside recycling program shall recycle 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) another method prescribed by the consortium.
Sec. 376.205. REIMBURSEMENT OF REDEMPTION CENTERS BY
CONSORTIUM; HANDLING FEE. (a) On submission of a completed invoice
of refunds paid by a redemption center on a form adopted by the
consortium, the consortium 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 consortium shall reimburse a redemption center
under Subsection (a) not later than the fifth working day after the
date the consortium receives the invoice submitted by the
redemption center.
(c) The consortium may adjust a handling fee to account for
changes in market conditions. The consortium may periodically
conduct research to determine if an adjustment is necessary.
Sec. 376.206. REIMBURSEMENT OF CURBSIDE RECYCLING PROGRAM
BY CONSORTIUM. (a) On submission of a completed report, on a form
adopted by the consortium, indicating the number or weight, as
applicable, of beverage containers collected by a curbside
recycling program that are covered under this chapter, the
consortium shall pay to the curbside recycling program an amount
equal to the redemption value established by Section 376.203.
(b) The consortium shall reimburse a curbside recycling
program under Subsection (a) not later than the fifth working day
after the date the consortium receives the invoice submitted by the
curbside recycling program.
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 consortium, on a form
approved by the consortium, 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.
Sec. 376.208. NOTICE. The consortium must provide to each
redemption center and curbside recycling program, as applicable,
written notice at least 30 days before implementation of a change in
per pound rates under Section 376.204 or handling fees under
Section 376.205.
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 deposit under
Chapter 376, Health and Safety Code.
SECTION 3. (a) Not later than September 1, 2014, the
comptroller of public accounts, after consultation with the Texas
Beverage Container Recycling Consortium, shall adopt any 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, 2015.
SECTION 4. This Act takes effect September 1, 2013.