Texas 2015 - 84th Regular

Texas House Bill HB2425 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	84R3314 JAM-F
2	2	By: Rodriguez of Travis H.B. No. 2425
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to water quality improvement and pollution reduction
8	8	through beverage container recycling incentives; assessing a fee;
9	9	providing penalties; creating a criminal offense.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subtitle B, Title 5, Health and Safety Code, is
12	12	amended by adding Chapter 376 to read as follows:
13	13	CHAPTER 376. TEXAS BEVERAGE CONTAINER RECYCLING INCENTIVE PROGRAM
14	14	SUBCHAPTER A. GENERAL PROVISIONS
15	15	Sec. 376.001. DEFINITIONS. In this chapter:
16	16	(1) "Beverage" means an alcoholic, nonalcoholic,
17	17	carbonated, or noncarbonated drink prepared in liquid,
18	18	ready-to-drink form and intended for human consumption. The term
19	19	includes:
20	20	(A) beer;
21	21	(B) ale;
22	22	(C) malt liquor;
23	23	(D) other drinks produced by fermenting malt;
24	24	(E) wine coolers;
25	25	(F) soda;
26	26	(G) water, including mineral water and vitamin
27	27	water;
28	28	(H) carbonated water, including carbonated
29	29	mineral water;
30	30	(I) carbonated soft drinks;
31	31	(J) noncarbonated soft drinks and sport drinks;
32	32	(K) noncarbonated fruit drinks;
33	33	(L) energy drinks;
34	34	(M) coffee and tea drinks; and
35	35	(N) carbonated fruit drinks.
36	36	(2) "Beverage container" means a glass, metal, or
37	37	plastic vessel that is hermetically sealed or capped and that
38	38	contains a beverage at the time it is sold or offered for sale.
39	39	(3) "Consortium" means the Texas Beverage Container
40	40	Recycling Consortium.
41	41	(4) "Consumer" means a person who purchases or
42	42	receives a beverage in a beverage container for the person's own use
43	43	or consumption. The term includes a lodging, eating, or drinking
44	44	establishment if beverages are generally consumed on the
45	45	establishment's premises and does not include a person who
46	46	purchases the beverage from the establishment for consumption on
47	47	the premises.
48	48	(5) "Distributor" means a person who distributes
49	49	beverages in beverage containers to retail dealers.
50	50	(6) "Incentive program" means the Texas beverage
51	51	container recycling program established under this chapter.
52	52	(7) "Infant formula" means any liquid food sold as an
53	53	alternative for human milk for the feeding of infants.
54	54	(8) "Manufacturer" means any person who fills beverage
55	55	containers for sale to distributors or retail dealers.
56	56	(9) "Medical food" means a food or beverage that is
57	57	formulated to be consumed or administered under the supervision of
58	58	a physician and that is intended for specific dietary management of
59	59	diseases or health conditions for which distinctive nutritional
60	60	requirements, based on recognized scientific principles, are
61	61	established by medical evaluation. The term also includes any
62	62	product that meets the definition of "medical food" under Section
63	63	5(b)(3), the Food, Drug, and Cosmetic Act (21 U.S.C. Section
64	64	360ee).
65	65	(10) "Redemption center" means an operation approved
66	66	by the consortium to redeem beverage containers under this chapter
67	67	and includes a manned operation or a mechanical device that accepts
68	68	empty beverage containers and issues a cash refund or a redeemable
69	69	credit slip with a value not less than the container's refund value.
70	70	(11) "Refund" means a payment by a redemption center
71	71	under Section 376.201 to a person who presents a beverage container
72	72	at the redemption center.
73	73	(12) "Retail dealer" means a person who sells a
74	74	beverage in a beverage container to a consumer and includes the
75	75	owner or operator of a beverage vending machine.
76	76	Sec. 376.002. TEXAS BEVERAGE CONTAINER RECYCLING
77	77	CONSORTIUM. (a) The consortium is an association formed to
78	78	administer the incentive program.
79	79	(b) The consortium consists of nine voting members
80	80	appointed by the governor as follows:
81	81	(1) one distributor of alcoholic beverages;
82	82	(2) one distributor of nonalcoholic beverages;
83	83	(3) one recycler;
84	84	(4) one beverage retailer;
85	85	(5) one representative of the waste industry;
86	86	(6) one redemption center owner or operator;
87	87	(7) one container processor or remanufacturer;
88	88	(8) one representative of a municipality with a
89	89	population of less than 10,000; and
90	90	(9) one representative of a municipality with a
91	91	population of at least 10,000.
92	92	(c) The voting members serve staggered terms of two years
93	93	with four or five members' terms, as applicable, expiring June 1 of
94	94	each year.
95	95	(d) The voting members annually shall designate one member
96	96	of the consortium to serve as presiding officer.
97	97	(e) The voting members shall appoint an executive director
98	98	to oversee the consortium's operation under the supervision of the
99	99	consortium.
100	100	(f) The executive director may employ personnel necessary
101	101	to the operation of the consortium.
102	102	(g) The comptroller or the comptroller's designee and the
103	103	chair of the Texas Commission on Environmental Quality or the
104	104	chair's designee serve as ex officio nonvoting members of the
105	105	consortium.
106	106	Sec. 376.003. ADMINISTRATION AND RULES. (a) In
107	107	administering the incentive program, the consortium shall:
108	108	(1) after consultation with the comptroller and the
109	109	Texas Commission on Environmental Quality regarding standards and
110	110	requirements for redemption centers, enter into appropriate
111	111	agreements approving redemption centers under Section 376.151;
112	112	(2) enforce compliance with the provisions of this
113	113	chapter;
114	114	(3) develop and implement a marketing plan to provide
115	115	information and educate consumers about the incentive program;
116	116	(4) conduct any audit of the incentive program the
117	117	comptroller determines is necessary;
118	118	(5) develop an operating budget for the incentive
119	119	program;
120	120	(6) ensure the solvency of the incentive program's
121	121	account;
122	122	(7) develop a system for reimbursement of deposits and
123	123	refunds and for distribution of handling fees;
124	124	(8) develop a system for monitoring the number of
125	125	containers sold by distributors and the number of containers
126	126	returned to redemption centers and curbside recycling centers;
127	127	(9) develop a system to prevent fraudulent use of the
128	128	incentive program, including payment by voucher for the redemption
129	129	of beverage containers if the consortium determines that vouchers
130	130	will be an effective fraud prevention measure;
131	131	(10) administer an account as provided by Section
132	132	376.105;
133	133	(11) adopt procedures and forms necessary to implement
134	134	this chapter; and
135	135	(12) develop and maintain a publicly accessible
136	136	website to provide information about the program, including
137	137	redemption center locations.
138	138	(b) The comptroller, after consultation with the
139	139	consortium, may adopt rules necessary to implement this chapter.
140	140	Sec. 376.004. CRIMINAL PENALTIES. A person commits an
141	141	offense if the person knowingly violates Section 376.051, 376.101,
142	142	376.102, 376.201, or 376.204. An offense under this section is a
143	143	Class C misdemeanor.
144	144	Sec. 376.005. REPORT TO LEGISLATURE. Not later than
145	145	November 1 of each year, the consortium shall submit a report to the
146	146	lieutenant governor, the speaker of the house of representatives,
147	147	the comptroller, the Texas Commission on Environmental Quality, and
148	148	the committee in each house of the legislature that has primary
149	149	jurisdiction over environmental matters about the progress and
150	150	success of the incentive program. The report must be submitted
151	151	electronically in a format prescribed by the officer or entity to
152	152	which the report is transmitted.
153	153	SUBCHAPTER B. REFUND VALUE AND LABELING OF BEVERAGE CONTAINERS
154	154	Sec. 376.051. REFUND VALUE AND LABEL REQUIRED. (a) Except
155	155	as provided by Subsection (b), a person may not distribute, sell, or
156	156	offer for sale in this state a beverage container unless the
157	157	container:
158	158	(1) has:
159	159	(A) a fluid capacity of less than 24 ounces and a
160	160	refund value of five cents; or
161	161	(B) a fluid capacity of at least 24 ounces and a
162	162	refund value of 10 cents; and
163	163	(2) is labeled as required by Section 376.052.
164	164	(b) A person may distribute, sell, or offer for sale in this
165	165	state a beverage container that does not have a refund value if:
166	166	(1) the container has a fluid capacity of more than one
167	167	gallon; or
168	168	(2) the container contains:
169	169	(A) a beverage that consists of milk or of 100
170	170	percent fruit or vegetable juice; or
171	171	(B) medical food or infant formula.
172	172	Sec. 376.052. LABELING. (a) A beverage container required
173	173	to have a refund value under Section 376.051 that is distributed or
174	174	offered for sale in this state must have legibly stamped, labeled,
175	175	or embossed on the container:
176	176	(1) "TxR"; and
177	177	(2) other language as required by the consortium.
178	178	(b) A beverage container intended for sale in this state
179	179	must be printed, embossed, stamped, labeled, or otherwise marked
180	180	with a universal product code or similar machine-readable indicium.
181	181	SUBCHAPTER C. COLLECTION OF DEPOSIT
182	182	Sec. 376.101. COLLECTION OF DEPOSIT BY DISTRIBUTOR AND
183	183	RETAIL DEALER. (a) A distributor shall collect a deposit of 5 or 10
184	184	cents, as established by Section 376.051, from a retail dealer for
185	185	each beverage container that the distributor sells to the retail
186	186	dealer.
187	187	(b) A retail dealer shall collect a deposit of 5 or 10 cents,
188	188	as established by Section 376.051, from a consumer for each
189	189	beverage container that the retail dealer sells to the consumer.
190	190	(c) A retail dealer who sells one or more beverage
191	191	containers to a consumer for off-premise consumption shall list the
192	192	beverage container deposit paid as a separate line item on a receipt
193	193	given to the consumer. The deposit may not be included in any sales
194	194	tax calculation.
195	195	Sec. 376.102. REMITTANCE OF DEPOSITS BY DISTRIBUTOR. Not
196	196	later than the fifth day of each month, a distributor shall remit to
197	197	the consortium the deposits collected by the distributor under
198	198	Section 376.101 during the preceding month.
199	199	Sec. 376.103. MONTHLY REPORT. (a) Not later than the fifth
200	200	day of each month, a distributor who collects a deposit under
201	201	Section 376.101 shall report to the consortium, on a form approved
202	202	by the consortium:
203	203	(1) the total amount of deposits collected during the
204	204	preceding month; and
205	205	(2) the number of beverage containers sold during the
206	206	preceding month separated by deposit amount and material of
207	207	container.
208	208	(b) The consortium may require a distributor to include in
209	209	the report required by Subsection (a) other information the
210	210	consortium considers necessary.
211	211	(c) The information contained in the report required by this
212	212	section is confidential and may not be disclosed by the consortium
213	213	or an officer or employee of the consortium unless required by law.
214	214	Sec. 376.104. DONATIONS. A manufacturer or distributor who
215	215	donates beverage containers covered by this chapter shall pay the
216	216	requisite deposit for the donated beverage containers to the
217	217	consortium using the method prescribed by the consortium.
218	218	Sec. 376.105. RECYCLING REFUND TRUST ACCOUNT. (a)
219	219	Deposits collected under this chapter shall be deposited to the
220	220	credit of the recycling refund trust account maintained by the
221	221	consortium. Money in the account may be allocated only for:
222	222	(1) reimbursements and handling fees paid to
223	223	redemption centers or curbside recycling programs, as applicable;
224	224	(2) administration of this chapter;
225	225	(3) providing information and educating consumers
226	226	about the incentive program;
227	227	(4) the purposes authorized under Subsections (b) and
228	228	(c); and
229	229	(5) matching grants or low-interest loans to fund
230	230	water quality, waste reduction, recycling, or curbside redemption
231	231	programs.
232	232	(b) On the last day of each state fiscal biennium, the
233	233	consortium shall send to the comptroller a fee in the amount
234	234	necessary for the comptroller to fulfill the comptroller's
235	235	obligations under this chapter.
236	236	(c) On the last day of each state fiscal biennium, the
237	237	consortium shall send to the Texas Commission on Environmental
238	238	Quality a fee in the amount necessary to reimburse that agency for
239	239	the agency's participation in the program.
240	240	(d) On the last day of each state fiscal biennium, the
241	241	consortium shall send to the comptroller a fee in the amount of two
242	242	and one-half percent of the unencumbered balance of the account for
243	243	deposit in the state treasury to the credit of the Texas Commission
244	244	on Environmental Quality. Money deposited under this subsection
245	245	may be appropriated only for the purposes of Section 361.014(b).
246	246	The money must be allocated as provided by that subsection and each
247	247	planning region shall include in the biennial report issued under
248	248	that subsection information detailing how the money is spent.
249	249	SUBCHAPTER D. REDEMPTION CENTERS
250	250	Sec. 376.151. ESTABLISHMENT OF REDEMPTION CENTER
251	251	AGREEMENTS. (a) To facilitate the return of empty beverage
252	252	containers, a local government or independent entity may establish,
253	253	own, and operate a redemption center at which empty containers may
254	254	be returned for their refund value.
255	255	(b) The local government or independent entity must file an
256	256	application for approval of a redemption center with the
257	257	consortium. The application must provide:
258	258	(1) the name, mailing address, telephone number,
259	259	e-mail address, and title of the person responsible for the
260	260	establishment and operation of the redemption center;
261	261	(2) the physical address of the redemption center;
262	262	(3) the applicant's federal tax identification number
263	263	or social security number if a tax identification number is not
264	264	required by federal law; and
265	265	(4) any additional information the consortium
266	266	requires as necessary or convenient for the implementation of this
267	267	section.
268	268	(c) The consortium shall approve a redemption center if it
269	269	finds the redemption center will provide a convenient service to
270	270	persons for the return of empty beverage containers.
271	271	(d) The consortium at any time may review its approval of a
272	272	redemption center. After written notice to the person responsible
273	273	for the establishment and operation of the redemption center and to
274	274	each retail dealer located within a two-mile radius of the
275	275	redemption center, the consortium may, after providing the owner or
276	276	operator an opportunity for a hearing to verify facts and resolve
277	277	the matter at issue, withdraw approval of a redemption center if the
278	278	consortium finds the redemption center has violated any terms of
279	279	the approval of the redemption center.
280	280	(e) The consortium and applicant shall establish the
281	281	required hours of operation for a redemption center in the approval
282	282	under Subsection (c).
283	283	(f) The consortium may not limit the number of redemption
284	284	centers within a geographic area.
285	285	(g) To be eligible to receive handling fees and
286	286	reimbursements for redemptions under Section 376.205, a redemption
287	287	center owner and operator must complete a biennial training program
288	288	established by the consortium.
289	289	SUBCHAPTER E. BEVERAGE CONTAINER REDEMPTION
290	290	Sec. 376.201. USED BEVERAGE CONTAINER REDEMPTION. Except
291	291	as provided by Sections 376.202 and 376.203, and subject to any
292	292	additional antifraud requirements developed by the consortium
293	293	under Section 376.003(a)(9), a redemption center shall accept a
294	294	used beverage container that has a refund value as established by
295	295	Section 376.051 and shall pay the refund value of the container in
296	296	cash, check, or, if permitted by consortium rule, voucher to the
297	297	person presenting the container if the container is stamped,
298	298	labeled, or embossed with "TxR."
299	299	Sec. 376.202. REFUSAL PERMITTED. A redemption center may
300	300	refuse to accept for refund:
301	301	(1) a glass bottle that is broken;
302	302	(2) a used beverage container that contains part of
303	303	its original contents or other foreign matter to the extent that it
304	304	could present health or sanitation problems; or
305	305	(3) a used beverage container that is not legibly
306	306	marked "TxR."
307	307	Sec. 376.203. REDEMPTION BY WEIGHT. (a) The consortium
308	308	shall establish:
309	309	(1) a procedure and reimbursement rates for providing
310	310	a reimbursement based on the weight and material of the beverage
311	311	containers presented to be used in circumstances in which the
312	312	number of containers is so large that counting the containers
313	313	individually would be burdensome on a redemption center or curbside
314	314	recycling program; and
315	315	(2) a handling fee to be paid to redemption centers for
316	316	containers redeemed in the manner described by Subdivision (1).
317	317	(b) Not more than every six months the consortium may adjust
318	318	the reimbursement rates described by Subsection (a).
319	319	Sec. 376.204. RECYCLING OF BEVERAGE CONTAINERS BY
320	320	REDEMPTION CENTER AND CURBSIDE RECYCLING PROGRAM. A redemption
321	321	center or curbside recycling program shall recycle the returned
322	322	used beverage containers by:
323	323	(1) selling the material to a processor or other end
324	324	user; or
325	325	(2) another method prescribed by the consortium.
326	326	Sec. 376.205. REIMBURSEMENT OF REDEMPTION CENTERS BY
327	327	CONSORTIUM; HANDLING FEE. (a) On submission of a completed invoice
328	328	of refunds paid by a redemption center on a form adopted by the
329	329	consortium, the consortium shall pay to the redemption center an
330	330	amount equal to the redemption value established by Section 376.051
331	331	or 376.203(a)(1), as applicable, plus a handling fee of:
332	332	(1) one and one-half cents for each beverage container
333	333	redeemed by the redemption center under Section 376.201; or
334	334	(2) the amount determined under Section 376.203(a)(2)
335	335	for beverage containers redeemed in the manner described by that
336	336	section.
337	337	(b) The consortium shall reimburse a redemption center
338	338	under Subsection (a) not later than the fifth working day after the
339	339	date the consortium receives the invoice submitted by the
340	340	redemption center.
341	341	(c) The consortium may adjust a handling fee to account for:
342	342	(1) changes in market conditions for recycled
343	343	materials; and
344	344	(2) different market conditions for recycled
345	345	materials based on population or geographic location.
346	346	Sec. 376.206. REIMBURSEMENT OF CURBSIDE RECYCLING PROGRAM
347	347	BY CONSORTIUM. (a) On submission of a completed report, on a form
348	348	adopted by the consortium, indicating the number or weight, as
349	349	applicable, of beverage containers collected by a curbside
350	350	recycling program that are covered under this chapter, the
351	351	consortium shall pay to the curbside recycling program an amount
352	352	equal to the redemption value established by Section 376.203.
353	353	(b) The consortium shall reimburse a curbside recycling
354	354	program under Subsection (a) not later than the fifth working day
355	355	after the date the consortium receives the invoice submitted by the
356	356	curbside recycling program.
357	357	Sec. 376.207. REPORTING REQUIREMENTS. Each redemption
358	358	center and curbside recycling program shall submit a report with
359	359	the submission of the completed invoice required under Sections
360	360	376.205 and 376.206, respectively, to the consortium, on a form
361	361	approved by the consortium, that provides:
362	362	(1) the redemption value of beverage containers
363	363	collected by the redemption center or curbside recycling program;
364	364	(2) the number or weight of beverage containers
365	365	collected by the center or curbside recycling program; and
366	366	(3) an invoice or other documentation that provides
367	367	proof that the collected recycled material was recycled in a manner
368	368	described by Section 376.204.
369	369	Sec. 376.208. NOTICE. The consortium must provide to each
370	370	redemption center and curbside recycling program, as applicable,
371	371	written notice at least 30 days before implementation of a change in
372	372	rates under Section 376.204 or handling fees under Section 376.205.
373	373	SECTION 2. Section 151.007(c), Tax Code, is amended to read
374	374	as follows:
375	375	(c) "Sales price" or "receipts" does not include any of the
376	376	following if separately identified to the customer by such means as
377	377	an invoice, billing, sales slip or ticket, or contract:
378	378	(1) a cash discount allowed on the sale;
379	379	(2) the amount charged for tangible personal property
380	380	returned by a customer if the total amount charged is refunded by
381	381	cash or credit;
382	382	(3) a refund of the charges for the performance of a
383	383	taxable service;
384	384	(4) finance, carrying and service charges, or interest
385	385	from credit extended on sales of taxable items under a conditional
386	386	sales contract or other contract providing for the deferred payment
387	387	of the purchase price;
388	388	(5) the value of tangible personal property that:
389	389	(A) is taken by a seller in trade as all or part
390	390	of the consideration for a sale of a taxable item; and
391	391	(B) is of a type of property sold by the seller in
392	392	the regular course of business;
393	393	(6) the face value of United States coin or currency in
394	394	a sale of that coin or currency in which the total consideration
395	395	given by the purchaser exceeds the face value of the coin or
396	396	currency; [or]
397	397	(7) a voluntary gratuity or a reasonable mandatory
398	398	charge for the service of a meal or food products, including soft
399	399	drinks and candy, for immediate human consumption when the service
400	400	charge is separated from the sales price of the meal or food product
401	401	and identified as a gratuity or tip and when the total amount of the
402	402	service charge is disbursed by the employer to employees who
403	403	customarily and regularly provide the service; or
404	404	(8) a beverage container redemption deposit under
405	405	Chapter 376, Health and Safety Code.
406	406	SECTION 3. (a) Not later than September 1, 2016, the
407	407	comptroller of public accounts, after consultation with the Texas
408	408	Beverage Container Recycling Consortium and the Texas Commission on
409	409	Environmental Quality, shall adopt any rules necessary to implement
410	410	Chapter 376, Health and Safety Code, as added by this Act.
411	411	(b) The requirements of and penalties imposed by Chapter
412	412	376, Health and Safety Code, as added by this Act, do not apply to
413	413	any person before January 1, 2017.
414	414	(c) The remittance and report requirements imposed by
415	415	Sections 376.102 and 376.103, Health and Safety Code, as added by
416	416	this Act, do not apply to any person before March 5, 2017.
417	417	(d) The Texas Beverage Container Recycling Consortium may
418	418	not adjust a handling fee under Section 376.205(c), Health and
419	419	Safety Code, as added by this Act, until January 1, 2018.
420	420	SECTION 4. This Act takes effect September 1, 2015.