84R3314 JAM-F
By: Rodriguez of Travis H.B. No. 2425
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; creating a criminal offense.
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 or
receives 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) "Manufacturer" means any person who fills beverage
containers for sale to distributors or retail dealers.
(9) "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).
(10) "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.
(11) "Refund" means a payment by a redemption center
under Section 376.201 to a person who presents a beverage container
at the redemption center.
(12) "Retail dealer" means a person who sells a
beverage in a beverage container to a consumer and includes the
owner or operator of a beverage vending machine.
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 voting 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 of the waste industry;
(6) one redemption center owner or operator;
(7) one container processor or remanufacturer;
(8) one representative of a municipality with a
population of less than 10,000; and
(9) one representative of a municipality with a
population of at least 10,000.
(c) The voting members serve staggered terms of two years
with four or five members' terms, as applicable, expiring June 1 of
each year.
(d) The voting members annually shall designate one member
of the consortium to serve as presiding officer.
(e) The voting members shall appoint an executive director
to oversee the consortium's operation under the supervision of the
consortium.
(f) The executive director may employ personnel necessary
to the operation of the consortium.
(g) The comptroller or the comptroller's designee and the
chair of the Texas Commission on Environmental Quality or the
chair's designee serve as ex officio nonvoting members of the
consortium.
Sec. 376.003. ADMINISTRATION AND RULES. (a) In
administering the incentive program, the consortium shall:
(1) after consultation with the comptroller and the
Texas Commission on Environmental Quality regarding standards and
requirements for redemption centers, 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, including payment by voucher for the redemption
of beverage containers if the consortium determines that vouchers
will be an effective fraud prevention measure;
(10) administer an account as provided by Section
376.105;
(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
lieutenant governor, the 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. The report must be submitted
electronically in a format prescribed by the officer or entity to
which the report is transmitted.
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) "TxR"; and
(2) other language as required by the consortium.
(b) A 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 for off-premise consumption 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 unless required by law.
Sec. 376.104. DONATIONS. A manufacturer or distributor who
donates beverage containers covered by this chapter shall pay the
requisite deposit for the donated beverage containers to the
consortium using the method prescribed by the consortium.
Sec. 376.105. RECYCLING REFUND TRUST ACCOUNT. (a)
Deposits collected under this chapter shall be deposited to the
credit of the recycling refund trust 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) matching grants or low-interest loans to fund
water quality, waste reduction, recycling, or curbside redemption
programs.
(b) On the last day of each state fiscal biennium, the
consortium shall send to the comptroller a fee in the amount
necessary for the comptroller to fulfill the comptroller's
obligations under this chapter.
(c) On the last day of each state fiscal biennium, the
consortium shall send to the Texas Commission on Environmental
Quality a fee in the amount necessary to reimburse that agency for
the agency's participation in the program.
(d) 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.
SUBCHAPTER D. REDEMPTION CENTERS
Sec. 376.151. ESTABLISHMENT OF REDEMPTION CENTER
AGREEMENTS. (a) To facilitate the return of empty beverage
containers, a 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 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
or social security number if a tax identification number is not
required by federal law; 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.
(g) To be eligible to receive handling fees and
reimbursements for redemptions under Section 376.205, a redemption
center owner and operator must complete a biennial training program
established by the consortium.
SUBCHAPTER E. BEVERAGE CONTAINER REDEMPTION
Sec. 376.201. USED BEVERAGE CONTAINER REDEMPTION. Except
as provided by Sections 376.202 and 376.203, and subject to any
additional antifraud requirements developed by the consortium
under Section 376.003(a)(9), 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, check, or, if permitted by consortium rule, voucher to the
person presenting the container if the container is stamped,
labeled, or embossed with "TxR."
Sec. 376.202. REFUSAL PERMITTED. A redemption center may
refuse to accept for refund:
(1) a glass bottle that is broken;
(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; or
(3) a used beverage container that is not legibly
marked "TxR."
Sec. 376.203. REDEMPTION BY WEIGHT. (a) The consortium
shall establish:
(1) a procedure and reimbursement rates for providing
a reimbursement based on the weight and material 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; and
(2) a handling fee to be paid to redemption centers for
containers redeemed in the manner described by Subdivision (1).
(b) Not more than every six months the consortium may adjust
the reimbursement 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 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(a)(1), 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 amount determined under Section 376.203(a)(2)
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:
(1) changes in market conditions for recycled
materials; and
(2) different market conditions for recycled
materials based on population or geographic location.
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 by 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
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, 2016, the
comptroller of public accounts, after consultation with the Texas
Beverage Container Recycling Consortium and the Texas Commission on
Environmental Quality, 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, 2017.
(c) The remittance and report requirements imposed by
Sections 376.102 and 376.103, Health and Safety Code, as added by
this Act, do not apply to any person before March 5, 2017.
(d) The Texas Beverage Container Recycling Consortium may
not adjust a handling fee under Section 376.205(c), Health and
Safety Code, as added by this Act, until January 1, 2018.
SECTION 4. This Act takes effect September 1, 2015.