87R8192 JAM-F
By: Taylor S.B. No. 1276
A BILL TO BE ENTITLED
AN ACT
relating to public health improvement and pollution reduction
through recycling incentives; assessing a fee.
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 375 to read as follows:
CHAPTER 375. TEXAS CLEAN AND HEALTHY PROGRAM
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 375.0101. DEFINITIONS. In this chapter:
(1) "Beverage" means a nonalcoholic, carbonated, or
noncarbonated drink prepared in liquid, ready-to-drink form and
intended for human consumption. The term includes:
(A) soda;
(B) water, including mineral water and vitamin
water;
(C) carbonated water, including carbonated
mineral water;
(D) carbonated soft drinks;
(E) noncarbonated soft drinks and sport drinks;
(F) noncarbonated fruit drinks;
(G) energy drinks;
(H) coffee and tea drinks; and
(I) carbonated fruit drinks.
(2) "Beverage container" means a plastic vessel that:
(A) is made of polyethylene terephthalate and has
the plastic resin symbol 1 as described by Section 369.002(d);
(B) is hermetically sealed or capped; and
(C) contains a beverage at the time it is sold or
offered for sale.
(3) "Consumer" means a person who purchases or
receives for the person's own use or consumption a beverage
container, single-use bag, or single-use cup.
(4) "Council" means the Texas Clean and Healthy
Advisory Council.
(5) "Eligible material" means a beverage container,
single-use bag, single-use cup, plastic film or wrap or other
flexible plastic packaging, or other material subject to a fee and
eligible for a rebate under this chapter. The term does not include
a beverage container that:
(A) has a capacity of more than one gallon; or
(B) contains medical food or infant formula.
(6) "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 Federal Food, Drug, and Cosmetic Act (21 U.S.C.
Section 360ee).
(7) "Processor" means an entity that sells eligible
material to a recycler, material recovery facility, or baling
center.
(8) "Program" means the Texas clean and healthy
program.
(9) "Rebate" means a payment by a rebate center under
Section 375.0402 to a person who presents eligible material at the
rebate center.
(10) "Rebate center" means an operation approved by
the council to accept eligible material and issue a cash rebate or a
redeemable credit slip with a value not less than the material's
rebate value.
(11) "Recycler" means an entity that purchases
eligible material from a processor for the purposes of recycling.
(12) "Retailer" means a person who sells or provides
to a consumer a beverage container, single-use bag, or single-use
cup. The term includes the owner or operator of a beverage vending
machine.
(13) "Rural area" means an area that is not designated
as urbanized by the Bureau of the Census or under rules adopted by
the comptroller.
(14) "Single-use bag" means a bag provided by a
business establishment to a consumer at the point of sale for the
purpose of transporting a purchase. The term does not include a
carryout bag that:
(A) is specifically designed and manufactured to
be used multiple times;
(B) displays highly visible language on the
exterior of the bag describing the bag's ability to be reused and
recycled;
(C) has a handle; and
(D) is constructed out of cloth or other durable
materials whether woven or nonwoven.
(15) "Single-use cup" means a cup made of plastic,
including polystyrene, paper, or laminate material used to contain
a beverage purchased from a retailer.
(16) "Urban area" means an area that is designated as
urbanized by the Bureau of the Census or under rules adopted by the
comptroller.
Sec. 375.0102. ADMINISTRATION AND RULES. (a) The
comptroller shall administer the program with the advice of the
council.
(b) In administering the program, the comptroller shall:
(1) approve rebate centers under Section 375.0401;
(2) enforce compliance with the provisions of this
chapter;
(3) develop and implement a marketing plan to provide
information and educate consumers about the program;
(4) develop and maintain a publicly accessible
Internet website to provide information about the program,
including the location of rebate centers;
(5) develop a system for:
(A) approval of rebate centers and processors;
and
(B) reimbursement of deposits and rebates and for
distribution of handling fees;
(6) develop a system for monitoring the amount of
eligible material sold by retailers and the amount of eligible
material returned to rebate centers;
(7) develop a system to prevent fraudulent use of the
program;
(8) administer the fund as provided by Section
375.0303; and
(9) adopt procedures and forms necessary to implement
this chapter.
(c) After consultation with the council, the comptroller
may adopt rules necessary to implement this chapter.
(d) The comptroller may delegate to the council duties
described by Subsection (b) to the extent authorized by law.
Sec. 375.0103. REPORT TO LEGISLATURE. Not later than
December 1st of each even-numbered year, the comptroller shall
deliver a report to the lieutenant governor, the speaker of the
house of representatives, and the committee in each house of the
legislature that has primary jurisdiction over environmental
matters about the progress and success of the program.
SUBCHAPTER B. TEXAS CLEAN AND HEALTHY ADVISORY COUNCIL
Sec. 375.0201. TEXAS CLEAN AND HEALTHY ADVISORY COUNCIL.
(a) The council is formed to advise the comptroller in
administering the program.
(b) The council consists of 17 members appointed by the
comptroller as follows:
(1) one producer of beverage containers;
(2) one producer of single-use bags;
(3) one producer of single-use cups;
(4) one retailer who sells beverage containers;
(5) one retailer who uses single-use bags;
(6) one retailer who uses single-use cups;
(7) one processor of beverage containers;
(8) one processor of plastic film;
(9) one processor of single-use cups;
(10) one recycler of beverage containers;
(11) one recycler of plastic film;
(12) one recycler of single-use cups;
(13) one representative of the packaging industry that
uses recycled material;
(14) one representative of a rural rebate center;
(15) one representative of an urban rebate center;
(16) one representative of a statewide nonprofit
organization devoted to litter prevention; and
(17) one member of the public.
(b-1) To form the initial council, the comptroller shall
appoint members as described by Subsection (b) except that the
offices for the representatives described by Subsections (b)(14)
and (15) must remain vacant until one or more rural rebate centers
and urban rebate centers are formed and operating.
(c) The members serve staggered terms of two years with
eight or nine members' terms, as applicable, expiring February 1 of
each year.
(d) The members shall designate one member of the council to
serve as presiding officer.
Sec. 375.0202. COUNCIL DUTIES. The council shall make
recommendations to the comptroller with respect to:
(1) additional materials eligible for inclusion in the
program;
(2) a fee paid by consumers for eligible material;
(3) changes to the value of the rebate paid to
consumers for eligible material;
(4) standards for rebate centers;
(5) changes to the value of the handling fee paid to
processors;
(6) the establishment of a system for approving
processors;
(7) the establishment of a system for approving
recyclers;
(8) the education of consumers, rebate centers,
processors, and recyclers about the program;
(9) eligibility criteria for program development
grants; and
(10) the establishment of standards for eligible
material that contains postconsumer recycled content.
Sec. 375.0203. DELEGATION OF COUNCIL DUTIES. The
comptroller may delegate council duties to a cooperative
organization or commodity board that the comptroller determines
represents retailers, processors, and recyclers of eligible
material. An entity designated under this section may retain money
from the fund established under Section 375.0303 to administer and
manage the program, as determined by the comptroller.
SUBCHAPTER C. COLLECTION OF FEE
Sec. 375.0301. COLLECTION OF FEE BY RETAILER; EXCEPTIONS.
(a) Except as provided by Subsections (b), (c), and (d), a retailer
shall collect a fee of one cent from a consumer for each item of
eligible material that the retailer sells or distributes to the
consumer.
(b) A retailer is not required to collect a fee for a
single-use bag, a single-use cup, or a beverage container if the
retailer pays to the comptroller an amount that is equivalent to the
fees that would be collected for 95 percent of the single-use bags,
single-use cups, or beverage containers purchased by the retailer
for sale or distribution to consumers.
(c) A retailer may not collect a fee from a consumer under
this chapter if the consumer demonstrates that the consumer
receives assistance from:
(1) the supplemental nutrition assistance program
established under Chapter 33, Human Resources Code;
(2) the federal special supplemental nutrition
program for women, infants, and children authorized by 42 U.S.C.
Section 1786; or
(3) another food assistance program recognized by the
comptroller.
(d) The comptroller may suspend the collection of a fee
under this chapter during a state of disaster declared by:
(1) the president of the United States under the
Robert T. Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. Section 5121 et seq.);
(2) the governor under Section 418.014, Government
Code; or
(3) the presiding officer of the governing body of a
political subdivision under Section 418.108, Government Code.
Sec. 375.0302. REMITTANCE OF FEES BY RETAILER. A retailer
shall remit to the comptroller the fees collected by the retailer
under Section 375.0301.
Sec. 375.0303. TEXAS CLEAN AND HEALTHY PROGRAM FUND. (a)
The Texas clean and healthy program fund is a special fund in the
treasury outside the general revenue fund. Section 404.071,
Government Code, does not apply to the fund. Interest earned and
other earnings on the investment of money in the fund are credited
to the fund.
(b) Fees collected under this chapter and money collected
under Section 375.0301(b) shall be deposited to the credit of the
Texas clean and healthy program fund maintained by the comptroller.
Money in the fund may be allocated only for:
(1) reimbursements and handling fees paid to rebate
centers or processors, as applicable;
(2) administration of this chapter;
(3) the provision of information and education of
consumers about the program; and
(4) the purposes authorized under this chapter.
SUBCHAPTER D. REBATE CENTERS AND HANDLING FEES
Sec. 375.0401. ESTABLISHMENT OF REBATE CENTER.
(a) Subject to Subsection (b), any person may establish, own, and
operate a rebate center at which empty eligible material may be
returned for rebate value. A rebate center may be located in
another business or engage in other forms of business.
(b) A person must file an application for approval of a
rebate center with the council. The application must provide any
information the comptroller requires as necessary or convenient for
the implementation of this section.
(c) The comptroller shall provide for expedited review and
approval of applications for rebate centers associated with a
school, school district, or disadvantaged community, including a
community without collection systems for eligible material.
(d) The council at any time may review its approval of a
rebate center.
Sec. 375.0402. REBATE FOR ELIGIBLE MATERIAL. (a) Except
as provided by Subsection (b), and subject to any additional
antifraud requirements developed by the comptroller under Section
375.0102(b)(7), a rebate center shall accept eligible material and
shall pay the rebate value of the material established by Section
375.0403 in cash, check, or, if permitted by rule, voucher to the
person presenting the material.
(b) A rebate center may refuse to accept eligible material
for rebate for reasons established by the comptroller.
Sec. 375.0403. REBATE VALUE. All eligible material
distributed, sold, or offered for sale in this state has a rebate
value of 25 cents per pound or a value set by the comptroller.
Sec. 375.0404. REIMBURSEMENT OF REBATE CENTER. On
submission of a completed invoice of rebates paid by a rebate center
on a form adopted by the comptroller, the comptroller shall pay to
the rebate center an amount equal to the rebate value established by
Section 375.0403 plus a handling fee, if applicable.
Sec. 375.0405. HANDLING FEE TO PROCESSORS. (a) The
comptroller shall pay to an approved processor a handling fee of:
(1) 60 cents per pound of eligible material processed
in an urban area; and
(2) 90 cents per pound of eligible material processed
in a rural area.
(b) The comptroller may adjust the rates provided by
Subsection (a) as necessary to reflect changes in market
conditions.
(c) To receive payment under this section, a processor must
submit to the comptroller a report demonstrating the processed
material was sold for recycling. Information contained in the
report submitted under this section is confidential and may not be
disclosed by the comptroller unless required by law.
(d) A processor may engage in other forms of business,
including the operation of a rebate center.
SUBCHAPTER E. OTHER PROGRAMS AND RELATED ACCOUNTS
Sec. 375.0501. LITTER ENFORCEMENT AND EDUCATION GRANT
PROGRAM AND ACCOUNT. (a) The litter enforcement and education
grant program is established to provide grants to counties to
develop and implement litter and illegal dumping abatement and
enforcement programs.
(b) The grant program established by this section is
administered by the comptroller. The comptroller may partner with
or designate a statewide litter prevention nonprofit organization
to administer the program established under this section.
(c) The litter enforcement and education account is an
account in the Texas clean and healthy program fund established by
Section 375.0303. The account consists of:
(1) revenue from the program allocated by the
comptroller; and
(2) interest earned and other earnings on the
investment of money in the account.
(d) Money in the account may be appropriated only to award
grants to counties as provided by this section.
(e) The comptroller shall develop an application process
for the submission by counties of applications to receive grants
provided under this section.
(f) The comptroller shall issue to a county receiving a
grant under this section:
(1) not less than $100,000 per year; and
(2) for every 500,000 persons residing in the county,
an additional $100,000 per year.
(g) Grants awarded by the comptroller under this section may
be used only for:
(1) the abatement and enforcement of violations of
Chapters 341, 343, and 365 of this code and Chapter 7, Water Code;
(2) the establishment and management of litter
control, solid waste management, or recycling systems; and
(3) the support of litter prevention, solid waste
management, and recycling education programs.
(h) A county receiving a grant under the program may
coordinate with the appropriate council of government to:
(1) use personnel to administer this section; and
(2) establish training programs to implement this
section.
Sec. 375.0502. PROGRAM DEVELOPMENT GRANT ACCOUNT. (a) The
program development grant account is an account in the Texas clean
and healthy program fund established by Section 375.0303. Section
404.071, Government Code, does not apply to the account.
(b) The account consists of any available funds
appropriated for the purposes of this section.
(c) The program development grant account shall be used to
provide grants for the construction of rebate centers.
(d) This section expires and the program development grant
account is abolished September 1, 2027.
Sec. 375.0503. PUBLIC HEALTH EMERGENCY ACCOUNT. (a) The
public health emergency account is an account in the Texas clean and
healthy program fund established by Section 375.0303. Section
404.071, Government Code, does not apply to the account.
(b) The account consists of:
(1) the balance of program money not allocated to the
litter enforcement and education grant program established by
Section 375.0501 or another purpose provided by this chapter; and
(2) interest earned and other earnings on the
investment of money in the account.
(c) The comptroller may disburse money in the account to
assist prevention, mitigation, or recovery programs related to
public health emergency declarations.
(d) The balance of the account may not exceed $1 billion.
Any amount, including interest earned, in excess of $1 billion
shall be deposited to the credit of the Texas clean and healthy
program fund established by Section 375.0303.
SECTION 2. (a) Not later than September 1, 2022, the
comptroller of public accounts shall appoint members of the Texas
Clean and Healthy Advisory Council and, after consultation with the
Texas Clean and Healthy Advisory Council, shall adopt any rules
necessary to implement Chapter 375, Health and Safety Code, as
added by this Act.
(b) The requirements of Chapter 375, Health and Safety Code,
as added by this Act, do not apply to any person before March 1,
2023.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2021.