Texas 2021 - 87th Regular

Texas House Bill HB4022 Compare Versions

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1	1	By: Morrison H.B. No. 4022
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to public health improvement and pollution reduction
7	7	through recycling incentives; assessing a fee.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Subtitle B, Title 5, Health and Safety Code, is
10	10	amended by adding Chapter 375 to read as follows:
11	11	CHAPTER 375. TEXAS CLEAN AND HEALTHY PROGRAM
12	12	SUBCHAPTER A. GENERAL PROVISIONS
13	13	Sec. 375.0101. DEFINITIONS. In this chapter:
14	14	(1) "Beverage" means a nonalcoholic, carbonated, or
15	15	noncarbonated drink prepared in liquid, ready-to-drink form and
16	16	intended for human consumption. The term includes:
17	17	(A) soda;
18	18	(B) water, including mineral water and vitamin
19	19	water;
20	20	(C) carbonated water, including carbonated
21	21	mineral water;
22	22	(D) carbonated soft drinks;
23	23	(E) noncarbonated soft drinks and sport drinks;
24	24	(F) noncarbonated fruit drinks;
25	25	(G) energy drinks;
26	26	(H) coffee and tea drinks; and
27	27	(I) carbonated fruit drinks.
28	28	(2) "Beverage container" means a plastic vessel that:
29	29	(A) is made of polyethylene terephthalate and has
30	30	the plastic resin symbol 1 as described by Section 369.002(d);
31	31	(B) is hermetically sealed or capped; and
32	32	(C) contains a beverage at the time it is sold or
33	33	offered for sale.
34	34	(3) "Consumer" means a person who purchases or
35	35	receives for the person's own use or consumption a beverage
36	36	container, single-use bag, or single-use cup.
37	37	(4) "Council" means the Texas Clean and Healthy
38	38	Advisory Council.
39	39	(5) "Eligible material" means a beverage container,
40	40	single-use bag, single-use cup, plastic film or wrap or other
41	41	flexible plastic packaging, or other material subject to a fee and
42	42	eligible for a rebate under this chapter. The term does not include
43	43	a beverage container that:
44	44	(A) has a capacity of more than one gallon; or
45	45	(B) contains medical food or infant formula.
46	46	(6) "Medical food" means a food or beverage that is
47	47	formulated to be consumed or administered under the supervision of
48	48	a physician and that is intended for specific dietary management of
49	49	diseases or health conditions for which distinctive nutritional
50	50	requirements, based on recognized scientific principles, are
51	51	established by medical evaluation. The term also includes any
52	52	product that meets the definition of "medical food" under Section
53	53	5(b)(3), the Federal Food, Drug, and Cosmetic Act (21 U.S.C.
54	54	Section 360ee).
55	55	(7) "Processor" means an entity that sells eligible
56	56	material to a recycler, material recovery facility, or baling
57	57	center.
58	58	(8) "Program" means the Texas clean and healthy
59	59	program.
60	60	(9) "Rebate" means a payment by a rebate center under
61	61	Section 375.0402 to a person who presents eligible material at the
62	62	rebate center.
63	63	(10) "Rebate center" means an operation approved by
64	64	the council to accept eligible material and issue a cash rebate or a
65	65	redeemable credit slip with a value not less than the material's
66	66	rebate value.
67	67	(11) "Recycler" means an entity that purchases
68	68	eligible material from a processor for the purposes of recycling.
69	69	(12) "Retailer" means a person who sells or provides
70	70	to a consumer a beverage container, single-use bag, or single-use
71	71	cup. The term includes the owner or operator of a beverage vending
72	72	machine.
73	73	(13) "Rural area" means an area that is not designated
74	74	as urbanized by the Bureau of the Census or under rules adopted by
75	75	the comptroller.
76	76	(14) "Single-use bag" means a bag provided by a
77	77	business establishment to a consumer at the point of sale for the
78	78	purpose of transporting a purchase. The term does not include a
79	79	carryout bag that:
80	80	(A) is specifically designed and manufactured to
81	81	be used multiple times;
82	82	(B) displays highly visible language on the
83	83	exterior of the bag describing the bag's ability to be reused and
84	84	recycled;
85	85	(C) has a handle; and
86	86	(D) is constructed out of cloth or other durable
87	87	materials whether woven or nonwoven.
88	88	(15) "Single-use cup" means a cup made of plastic,
89	89	including polystyrene, paper, or laminate material used to contain
90	90	a beverage purchased from a retailer.
91	91	(16) "Urban area" means an area that is designated as
92	92	urbanized by the Bureau of the Census or under rules adopted by the
93	93	comptroller.
94	94	Sec. 375.0102. ADMINISTRATION AND RULES. (a) The
95	95	comptroller shall administer the program with the advice of the
96	96	council.
97	97	(b) In administering the program, the comptroller shall:
98	98	(1) approve rebate centers under Section 375.0401;
99	99	(2) enforce compliance with the provisions of this
100	100	chapter;
101	101	(3) develop and implement a marketing plan to provide
102	102	information and educate consumers about the program;
103	103	(4) develop and maintain a publicly accessible
104	104	Internet website to provide information about the program,
105	105	including the location of rebate centers;
106	106	(5) develop a system for:
107	107	(A) approval of rebate centers and processors;
108	108	and
109	109	(B) reimbursement of deposits and rebates and for
110	110	distribution of handling fees;
111	111	(6) develop a system for monitoring the amount of
112	112	eligible material sold by retailers and the amount of eligible
113	113	material returned to rebate centers;
114	114	(7) develop a system to prevent fraudulent use of the
115	115	program;
116	116	(8) administer the fund as provided by Section
117	117	375.0303; and
118	118	(9) adopt procedures and forms necessary to implement
119	119	this chapter.
120	120	(c) After consultation with the council, the comptroller
121	121	may adopt rules necessary to implement this chapter.
122	122	(d) The comptroller may delegate to the council duties
123	123	described by Subsection (b) to the extent authorized by law.
124	124	Sec. 375.0103. REPORT TO LEGISLATURE. Not later than
125	125	December 1st of each even-numbered year, the comptroller shall
126	126	deliver a report to the lieutenant governor, the speaker of the
127	127	house of representatives, and the committee in each house of the
128	128	legislature that has primary jurisdiction over environmental
129	129	matters about the progress and success of the program.
130	130	SUBCHAPTER B. TEXAS CLEAN AND HEALTHY ADVISORY COUNCIL
131	131	Sec. 375.0201. TEXAS CLEAN AND HEALTHY ADVISORY COUNCIL.
132	132	(a) The council is formed to advise the comptroller in
133	133	administering the program.
134	134	(b) The council consists of 17 members appointed by the
135	135	comptroller as follows:
136	136	(1) one producer of beverage containers;
137	137	(2) one producer of single-use bags;
138	138	(3) one producer of single-use cups;
139	139	(4) one retailer who sells beverage containers;
140	140	(5) one retailer who uses single-use bags;
141	141	(6) one retailer who uses single-use cups;
142	142	(7) one processor of beverage containers;
143	143	(8) one processor of plastic film;
144	144	(9) one processor of single-use cups;
145	145	(10) one recycler of beverage containers;
146	146	(11) one recycler of plastic film;
147	147	(12) one recycler of single-use cups;
148	148	(13) one representative of the packaging industry that
149	149	uses recycled material;
150	150	(14) one representative of a rural rebate center;
151	151	(15) one representative of an urban rebate center;
152	152	(16) one representative of a statewide nonprofit
153	153	organization devoted to litter prevention; and
154	154	(17) one member of the public.
155	155	(b-1) To form the initial council, the comptroller shall
156	156	appoint members as described by Subsection (b) except that the
157	157	offices for the representatives described by Subsections (b)(14)
158	158	and (15) must remain vacant until one or more rural rebate centers
159	159	and urban rebate centers are formed and operating.
160	160	(c) The members serve staggered terms of two years with
161	161	eight or nine members' terms, as applicable, expiring February 1 of
162	162	each year.
163	163	(d) The members shall designate one member of the council to
164	164	serve as presiding officer.
165	165	Sec. 375.0202. COUNCIL DUTIES. The council shall make
166	166	recommendations to the comptroller with respect to:
167	167	(1) additional materials eligible for inclusion in the
168	168	program;
169	169	(2) a fee paid by consumers for eligible material;
170	170	(3) changes to the value of the rebate paid to
171	171	consumers for eligible material;
172	172	(4) standards for rebate centers;
173	173	(5) changes to the value of the handling fee paid to
174	174	processors;
175	175	(6) the establishment of a system for approving
176	176	processors;
177	177	(7) the establishment of a system for approving
178	178	recyclers;
179	179	(8) the education of consumers, rebate centers,
180	180	processors, and recyclers about the program;
181	181	(9) eligibility criteria for program development
182	182	grants; and
183	183	(10) the establishment of standards for eligible
184	184	material that contains postconsumer recycled content.
185	185	Sec. 375.0203. DELEGATION OF COUNCIL DUTIES. The
186	186	comptroller may delegate council duties to a cooperative
187	187	organization or commodity board that the comptroller determines
188	188	represents retailers, processors, and recyclers of eligible
189	189	material. An entity designated under this section may retain money
190	190	from the fund established under Section 375.0303 to administer and
191	191	manage the program, as determined by the comptroller.
192	192	SUBCHAPTER C. COLLECTION OF FEE
193	193	Sec. 375.0301. COLLECTION OF FEE BY RETAILER; EXCEPTIONS.
194	194	(a) Except as provided by Subsections (b), (c), and (d), a retailer
195	195	shall collect a fee of one cent from a consumer for each item of
196	196	eligible material that the retailer sells or distributes to the
197	197	consumer.
198	198	(b) A retailer is not required to collect a fee for a
199	199	single-use bag, a single-use cup, or a beverage container if the
200	200	retailer pays to the comptroller an amount that is equivalent to the
201	201	fees that would be collected for 95 percent of the single-use bags,
202	202	single-use cups, or beverage containers purchased by the retailer
203	203	for sale or distribution to consumers.
204	204	(c) A retailer may not collect a fee from a consumer under
205	205	this chapter if the consumer demonstrates that the consumer
206	206	receives assistance from:
207	207	(1) the supplemental nutrition assistance program
208	208	established under Chapter 33, Human Resources Code;
209	209	(2) the federal special supplemental nutrition
210	210	program for women, infants, and children authorized by 42 U.S.C.
211	211	Section 1786; or
212	212	(3) another food assistance program recognized by the
213	213	comptroller.
214	214	(d) The comptroller may suspend the collection of a fee
215	215	under this chapter during a state of disaster declared by:
216	216	(1) the president of the United States under the
217	217	Robert T. Stafford Disaster Relief and Emergency Assistance Act (42
218	218	U.S.C. Section 5121 et seq.);
219	219	(2) the governor under Section 418.014, Government
220	220	Code; or
221	221	(3) the presiding officer of the governing body of a
222	222	political subdivision under Section 418.108, Government Code.
223	223	Sec. 375.0302. REMITTANCE OF FEES BY RETAILER. A retailer
224	224	shall remit to the comptroller the fees collected by the retailer
225	225	under Section 375.0301.
226	226	Sec. 375.0303. TEXAS CLEAN AND HEALTHY PROGRAM FUND. (a)
227	227	The Texas clean and healthy program fund is a special fund in the
228	228	treasury outside the general revenue fund. Section 404.071,
229	229	Government Code, does not apply to the fund. Interest earned and
230	230	other earnings on the investment of money in the fund are credited
231	231	to the fund.
232	232	(b) Fees collected under this chapter and money collected
233	233	under Section 375.0301(b) shall be deposited to the credit of the
234	234	Texas clean and healthy program fund maintained by the comptroller.
235	235	Money in the fund may be allocated only for:
236	236	(1) reimbursements and handling fees paid to rebate
237	237	centers or processors, as applicable;
238	238	(2) administration of this chapter;
239	239	(3) the provision of information and education of
240	240	consumers about the program; and
241	241	(4) the purposes authorized under this chapter.
242	242	SUBCHAPTER D. REBATE CENTERS AND HANDLING FEES
243	243	Sec. 375.0401. ESTABLISHMENT OF REBATE CENTER. (a)
244	244	Subject to Subsection (b), any person may establish, own, and
245	245	operate a rebate center at which empty eligible material may be
246	246	returned for rebate value. A rebate center may be located in
247	247	another business or engage in other forms of business.
248	248	(b) A person must file an application for approval of a
249	249	rebate center with the council. The application must provide any
250	250	information the comptroller requires as necessary or convenient for
251	251	the implementation of this section.
252	252	(c) The comptroller shall provide for expedited review and
253	253	approval of applications for rebate centers associated with a
254	254	school, school district, or disadvantaged community, including a
255	255	community without collection systems for eligible material.
256	256	(d) The council at any time may review its approval of a
257	257	rebate center.
258	258	Sec. 375.0402. REBATE FOR ELIGIBLE MATERIAL. (a) Except as
259	259	provided by Subsection (b), and subject to any additional antifraud
260	260	requirements developed by the comptroller under Section
261	261	375.0102(b)(7), a rebate center shall accept eligible material and
262	262	shall pay the rebate value of the material established by Section
263	263	375.0403 in cash, check, or, if permitted by rule, voucher to the
264	264	person presenting the material.
265	265	(b) A rebate center may refuse to accept eligible material
266	266	for rebate for reasons established by the comptroller.
267	267	Sec. 375.0403. REBATE VALUE. All eligible material
268	268	distributed, sold, or offered for sale in this state has a rebate
269	269	value of 25 cents per pound or a value set by the comptroller.
270	270	Sec. 375.0404. REIMBURSEMENT OF REBATE CENTER. On
271	271	submission of a completed invoice of rebates paid by a rebate center
272	272	on a form adopted by the comptroller, the comptroller shall pay to
273	273	the rebate center an amount equal to the rebate value established by
274	274	Section 375.0403 plus a handling fee, if applicable.
275	275	Sec. 375.0405. HANDLING FEE TO PROCESSORS. (a) The
276	276	comptroller shall pay to an approved processor a handling fee of:
277	277	(1) 60 cents per pound of eligible material processed
278	278	in an urban area; and
279	279	(2) 90 cents per pound of eligible material processed
280	280	in a rural area.
281	281	(b) The comptroller may adjust the rates provided by
282	282	Subsection (a) as necessary to reflect changes in market
283	283	conditions.
284	284	(c) To receive payment under this section, a processor must
285	285	submit to the comptroller a report demonstrating the processed
286	286	material was sold for recycling. Information contained in the
287	287	report submitted under this section is confidential and may not be
288	288	disclosed by the comptroller unless required by law.
289	289	(d) A processor may engage in other forms of business,
290	290	including the operation of a rebate center.
291	291	SUBCHAPTER E. OTHER PROGRAMS AND RELATED ACCOUNTS
292	292	Sec. 375.0501. LITTER ENFORCEMENT AND EDUCATION GRANT
293	293	PROGRAM AND ACCOUNT. (a) The litter enforcement and education
294	294	grant program is established to provide grants to counties to
295	295	develop and implement litter and illegal dumping abatement and
296	296	enforcement programs.
297	297	(b) The grant program established by this section is
298	298	administered by the comptroller. The comptroller may partner with
299	299	or designate a statewide litter prevention nonprofit organization
300	300	to administer the program established under this section.
301	301	(c) The litter enforcement and education account is an
302	302	account in the Texas clean and healthy program fund established by
303	303	Section 375.0303. The account consists of:
304	304	(1) revenue from the program allocated by the
305	305	comptroller; and
306	306	(2) interest earned and other earnings on the
307	307	investment of money in the account.
308	308	(d) Money in the account may be appropriated only to award
309	309	grants to counties as provided by this section.
310	310	(e) The comptroller shall develop an application process
311	311	for the submission by counties of applications to receive grants
312	312	provided under this section.
313	313	(f) The comptroller shall issue to a county receiving a
314	314	grant under this section:
315	315	(1) not less than $100,000 per year; and
316	316	(2) for every 500,000 persons residing in the county,
317	317	an additional $100,000 per year.
318	318	(g) Grants awarded by the comptroller under this section may
319	319	be used only for:
320	320	(1) the abatement and enforcement of violations of
321	321	Chapters 341, 343, and 365 of this code and Chapter 7, Water Code;
322	322	(2) the establishment and management of litter
323	323	control, solid waste management, or recycling systems; and
324	324	(3) the support of litter prevention, solid waste
325	325	management, and recycling education programs.
326	326	(h) A county receiving a grant under the program may
327	327	coordinate with the appropriate council of government to:
328	328	(1) use personnel to administer this section; and
329	329	(2) establish training programs to implement this
330	330	section.
331	331	Sec. 375.0502. PROGRAM DEVELOPMENT GRANT ACCOUNT. (a) The
332	332	program development grant account is an account in the Texas clean
333	333	and healthy program fund established by Section 375.0303. Section
334	334	404.071, Government Code, does not apply to the account.
335	335	(b) The account consists of any available funds
336	336	appropriated for the purposes of this section.
337	337	(c) The program development grant account shall be used to
338	338	provide grants for the construction of rebate centers.
339	339	(d) This section expires and the program development grant
340	340	account is abolished September 1, 2027.
341	341	Sec. 375.0503. PUBLIC HEALTH EMERGENCY ACCOUNT. (a) The
342	342	public health emergency account is an account in the Texas clean and
343	343	healthy program fund established by Section 375.0303. Section
344	344	404.071, Government Code, does not apply to the account.
345	345	(b) The account consists of:
346	346	(1) the balance of program money not allocated to the
347	347	litter enforcement and education grant program established by
348	348	Section 375.0501 or another purpose provided by this chapter; and
349	349	(2) interest earned and other earnings on the
350	350	investment of money in the account.
351	351	(c) The comptroller may disburse money in the account to
352	352	assist prevention, mitigation, or recovery programs related to
353	353	public health emergency declarations.
354	354	(d) The balance of the account may not exceed $1 billion.
355	355	Any amount, including interest earned, in excess of $1 billion
356	356	shall be deposited to the credit of the Texas clean and healthy
357	357	program fund established by Section 375.0303.
358	358	SECTION 2. (a) Not later than September 1, 2022, the
359	359	comptroller of public accounts shall appoint members of the Texas
360	360	Clean and Healthy Advisory Council and, after consultation with the
361	361	Texas Clean and Healthy Advisory Council, shall adopt any rules
362	362	necessary to implement Chapter 375, Health and Safety Code, as
363	363	added by this Act.
364	364	(b) The requirements of Chapter 375, Health and Safety Code,
365	365	as added by this Act, do not apply to any person before March 1,
366	366	2023.
367	367	SECTION 3. This Act takes effect immediately if it receives
368	368	a vote of two-thirds of all the members elected to each house, as
369	369	provided by Section 39, Article III, Texas Constitution. If this
370	370	Act does not receive the vote necessary for immediate effect, this
371	371	Act takes effect September 1, 2021.