Texas 2021 - 87th Regular

Texas Senate Bill SB1276 Compare Versions

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11 87R8192 JAM-F
22 By: Taylor S.B. No. 1276
33
44
55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to public health improvement and pollution reduction
88 through recycling incentives; assessing a fee.
99 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1010 SECTION 1. Subtitle B, Title 5, Health and Safety Code, is
1111 amended by adding Chapter 375 to read as follows:
1212 CHAPTER 375. TEXAS CLEAN AND HEALTHY PROGRAM
1313 SUBCHAPTER A. GENERAL PROVISIONS
1414 Sec. 375.0101. DEFINITIONS. In this chapter:
1515 (1) "Beverage" means a nonalcoholic, carbonated, or
1616 noncarbonated drink prepared in liquid, ready-to-drink form and
1717 intended for human consumption. The term includes:
1818 (A) soda;
1919 (B) water, including mineral water and vitamin
2020 water;
2121 (C) carbonated water, including carbonated
2222 mineral water;
2323 (D) carbonated soft drinks;
2424 (E) noncarbonated soft drinks and sport drinks;
2525 (F) noncarbonated fruit drinks;
2626 (G) energy drinks;
2727 (H) coffee and tea drinks; and
2828 (I) carbonated fruit drinks.
2929 (2) "Beverage container" means a plastic vessel that:
3030 (A) is made of polyethylene terephthalate and has
3131 the plastic resin symbol 1 as described by Section 369.002(d);
3232 (B) is hermetically sealed or capped; and
3333 (C) contains a beverage at the time it is sold or
3434 offered for sale.
3535 (3) "Consumer" means a person who purchases or
3636 receives for the person's own use or consumption a beverage
3737 container, single-use bag, or single-use cup.
3838 (4) "Council" means the Texas Clean and Healthy
3939 Advisory Council.
4040 (5) "Eligible material" means a beverage container,
4141 single-use bag, single-use cup, plastic film or wrap or other
4242 flexible plastic packaging, or other material subject to a fee and
4343 eligible for a rebate under this chapter. The term does not include
4444 a beverage container that:
4545 (A) has a capacity of more than one gallon; or
4646 (B) contains medical food or infant formula.
4747 (6) "Medical food" means a food or beverage that is
4848 formulated to be consumed or administered under the supervision of
4949 a physician and that is intended for specific dietary management of
5050 diseases or health conditions for which distinctive nutritional
5151 requirements, based on recognized scientific principles, are
5252 established by medical evaluation. The term also includes any
5353 product that meets the definition of "medical food" under Section
5454 5(b)(3), the Federal Food, Drug, and Cosmetic Act (21 U.S.C.
5555 Section 360ee).
5656 (7) "Processor" means an entity that sells eligible
5757 material to a recycler, material recovery facility, or baling
5858 center.
5959 (8) "Program" means the Texas clean and healthy
6060 program.
6161 (9) "Rebate" means a payment by a rebate center under
6262 Section 375.0402 to a person who presents eligible material at the
6363 rebate center.
6464 (10) "Rebate center" means an operation approved by
6565 the council to accept eligible material and issue a cash rebate or a
6666 redeemable credit slip with a value not less than the material's
6767 rebate value.
6868 (11) "Recycler" means an entity that purchases
6969 eligible material from a processor for the purposes of recycling.
7070 (12) "Retailer" means a person who sells or provides
7171 to a consumer a beverage container, single-use bag, or single-use
7272 cup. The term includes the owner or operator of a beverage vending
7373 machine.
7474 (13) "Rural area" means an area that is not designated
7575 as urbanized by the Bureau of the Census or under rules adopted by
7676 the comptroller.
7777 (14) "Single-use bag" means a bag provided by a
7878 business establishment to a consumer at the point of sale for the
7979 purpose of transporting a purchase. The term does not include a
8080 carryout bag that:
8181 (A) is specifically designed and manufactured to
8282 be used multiple times;
8383 (B) displays highly visible language on the
8484 exterior of the bag describing the bag's ability to be reused and
8585 recycled;
8686 (C) has a handle; and
8787 (D) is constructed out of cloth or other durable
8888 materials whether woven or nonwoven.
8989 (15) "Single-use cup" means a cup made of plastic,
9090 including polystyrene, paper, or laminate material used to contain
9191 a beverage purchased from a retailer.
9292 (16) "Urban area" means an area that is designated as
9393 urbanized by the Bureau of the Census or under rules adopted by the
9494 comptroller.
9595 Sec. 375.0102. ADMINISTRATION AND RULES. (a) The
9696 comptroller shall administer the program with the advice of the
9797 council.
9898 (b) In administering the program, the comptroller shall:
9999 (1) approve rebate centers under Section 375.0401;
100100 (2) enforce compliance with the provisions of this
101101 chapter;
102102 (3) develop and implement a marketing plan to provide
103103 information and educate consumers about the program;
104104 (4) develop and maintain a publicly accessible
105105 Internet website to provide information about the program,
106106 including the location of rebate centers;
107107 (5) develop a system for:
108108 (A) approval of rebate centers and processors;
109109 and
110110 (B) reimbursement of deposits and rebates and for
111111 distribution of handling fees;
112112 (6) develop a system for monitoring the amount of
113113 eligible material sold by retailers and the amount of eligible
114114 material returned to rebate centers;
115115 (7) develop a system to prevent fraudulent use of the
116116 program;
117117 (8) administer the fund as provided by Section
118118 375.0303; and
119119 (9) adopt procedures and forms necessary to implement
120120 this chapter.
121121 (c) After consultation with the council, the comptroller
122122 may adopt rules necessary to implement this chapter.
123123 (d) The comptroller may delegate to the council duties
124124 described by Subsection (b) to the extent authorized by law.
125125 Sec. 375.0103. REPORT TO LEGISLATURE. Not later than
126126 December 1st of each even-numbered year, the comptroller shall
127127 deliver a report to the lieutenant governor, the speaker of the
128128 house of representatives, and the committee in each house of the
129129 legislature that has primary jurisdiction over environmental
130130 matters about the progress and success of the program.
131131 SUBCHAPTER B. TEXAS CLEAN AND HEALTHY ADVISORY COUNCIL
132132 Sec. 375.0201. TEXAS CLEAN AND HEALTHY ADVISORY COUNCIL.
133133 (a) The council is formed to advise the comptroller in
134134 administering the program.
135135 (b) The council consists of 17 members appointed by the
136136 comptroller as follows:
137137 (1) one producer of beverage containers;
138138 (2) one producer of single-use bags;
139139 (3) one producer of single-use cups;
140140 (4) one retailer who sells beverage containers;
141141 (5) one retailer who uses single-use bags;
142142 (6) one retailer who uses single-use cups;
143143 (7) one processor of beverage containers;
144144 (8) one processor of plastic film;
145145 (9) one processor of single-use cups;
146146 (10) one recycler of beverage containers;
147147 (11) one recycler of plastic film;
148148 (12) one recycler of single-use cups;
149149 (13) one representative of the packaging industry that
150150 uses recycled material;
151151 (14) one representative of a rural rebate center;
152152 (15) one representative of an urban rebate center;
153153 (16) one representative of a statewide nonprofit
154154 organization devoted to litter prevention; and
155155 (17) one member of the public.
156156 (b-1) To form the initial council, the comptroller shall
157157 appoint members as described by Subsection (b) except that the
158158 offices for the representatives described by Subsections (b)(14)
159159 and (15) must remain vacant until one or more rural rebate centers
160160 and urban rebate centers are formed and operating.
161161 (c) The members serve staggered terms of two years with
162162 eight or nine members' terms, as applicable, expiring February 1 of
163163 each year.
164164 (d) The members shall designate one member of the council to
165165 serve as presiding officer.
166166 Sec. 375.0202. COUNCIL DUTIES. The council shall make
167167 recommendations to the comptroller with respect to:
168168 (1) additional materials eligible for inclusion in the
169169 program;
170170 (2) a fee paid by consumers for eligible material;
171171 (3) changes to the value of the rebate paid to
172172 consumers for eligible material;
173173 (4) standards for rebate centers;
174174 (5) changes to the value of the handling fee paid to
175175 processors;
176176 (6) the establishment of a system for approving
177177 processors;
178178 (7) the establishment of a system for approving
179179 recyclers;
180180 (8) the education of consumers, rebate centers,
181181 processors, and recyclers about the program;
182182 (9) eligibility criteria for program development
183183 grants; and
184184 (10) the establishment of standards for eligible
185185 material that contains postconsumer recycled content.
186186 Sec. 375.0203. DELEGATION OF COUNCIL DUTIES. The
187187 comptroller may delegate council duties to a cooperative
188188 organization or commodity board that the comptroller determines
189189 represents retailers, processors, and recyclers of eligible
190190 material. An entity designated under this section may retain money
191191 from the fund established under Section 375.0303 to administer and
192192 manage the program, as determined by the comptroller.
193193 SUBCHAPTER C. COLLECTION OF FEE
194194 Sec. 375.0301. COLLECTION OF FEE BY RETAILER; EXCEPTIONS.
195195 (a) Except as provided by Subsections (b), (c), and (d), a retailer
196196 shall collect a fee of one cent from a consumer for each item of
197197 eligible material that the retailer sells or distributes to the
198198 consumer.
199199 (b) A retailer is not required to collect a fee for a
200200 single-use bag, a single-use cup, or a beverage container if the
201201 retailer pays to the comptroller an amount that is equivalent to the
202202 fees that would be collected for 95 percent of the single-use bags,
203203 single-use cups, or beverage containers purchased by the retailer
204204 for sale or distribution to consumers.
205205 (c) A retailer may not collect a fee from a consumer under
206206 this chapter if the consumer demonstrates that the consumer
207207 receives assistance from:
208208 (1) the supplemental nutrition assistance program
209209 established under Chapter 33, Human Resources Code;
210210 (2) the federal special supplemental nutrition
211211 program for women, infants, and children authorized by 42 U.S.C.
212212 Section 1786; or
213213 (3) another food assistance program recognized by the
214214 comptroller.
215215 (d) The comptroller may suspend the collection of a fee
216216 under this chapter during a state of disaster declared by:
217217 (1) the president of the United States under the
218218 Robert T. Stafford Disaster Relief and Emergency Assistance Act (42
219219 U.S.C. Section 5121 et seq.);
220220 (2) the governor under Section 418.014, Government
221221 Code; or
222222 (3) the presiding officer of the governing body of a
223223 political subdivision under Section 418.108, Government Code.
224224 Sec. 375.0302. REMITTANCE OF FEES BY RETAILER. A retailer
225225 shall remit to the comptroller the fees collected by the retailer
226226 under Section 375.0301.
227227 Sec. 375.0303. TEXAS CLEAN AND HEALTHY PROGRAM FUND. (a)
228228 The Texas clean and healthy program fund is a special fund in the
229229 treasury outside the general revenue fund. Section 404.071,
230230 Government Code, does not apply to the fund. Interest earned and
231231 other earnings on the investment of money in the fund are credited
232232 to the fund.
233233 (b) Fees collected under this chapter and money collected
234234 under Section 375.0301(b) shall be deposited to the credit of the
235235 Texas clean and healthy program fund maintained by the comptroller.
236236 Money in the fund may be allocated only for:
237237 (1) reimbursements and handling fees paid to rebate
238238 centers or processors, as applicable;
239239 (2) administration of this chapter;
240240 (3) the provision of information and education of
241241 consumers about the program; and
242242 (4) the purposes authorized under this chapter.
243243 SUBCHAPTER D. REBATE CENTERS AND HANDLING FEES
244244 Sec. 375.0401. ESTABLISHMENT OF REBATE CENTER.
245245 (a) Subject to Subsection (b), any person may establish, own, and
246246 operate a rebate center at which empty eligible material may be
247247 returned for rebate value. A rebate center may be located in
248248 another business or engage in other forms of business.
249249 (b) A person must file an application for approval of a
250250 rebate center with the council. The application must provide any
251251 information the comptroller requires as necessary or convenient for
252252 the implementation of this section.
253253 (c) The comptroller shall provide for expedited review and
254254 approval of applications for rebate centers associated with a
255255 school, school district, or disadvantaged community, including a
256256 community without collection systems for eligible material.
257257 (d) The council at any time may review its approval of a
258258 rebate center.
259259 Sec. 375.0402. REBATE FOR ELIGIBLE MATERIAL. (a) Except
260260 as provided by Subsection (b), and subject to any additional
261261 antifraud requirements developed by the comptroller under Section
262262 375.0102(b)(7), a rebate center shall accept eligible material and
263263 shall pay the rebate value of the material established by Section
264264 375.0403 in cash, check, or, if permitted by rule, voucher to the
265265 person presenting the material.
266266 (b) A rebate center may refuse to accept eligible material
267267 for rebate for reasons established by the comptroller.
268268 Sec. 375.0403. REBATE VALUE. All eligible material
269269 distributed, sold, or offered for sale in this state has a rebate
270270 value of 25 cents per pound or a value set by the comptroller.
271271 Sec. 375.0404. REIMBURSEMENT OF REBATE CENTER. On
272272 submission of a completed invoice of rebates paid by a rebate center
273273 on a form adopted by the comptroller, the comptroller shall pay to
274274 the rebate center an amount equal to the rebate value established by
275275 Section 375.0403 plus a handling fee, if applicable.
276276 Sec. 375.0405. HANDLING FEE TO PROCESSORS. (a) The
277277 comptroller shall pay to an approved processor a handling fee of:
278278 (1) 60 cents per pound of eligible material processed
279279 in an urban area; and
280280 (2) 90 cents per pound of eligible material processed
281281 in a rural area.
282282 (b) The comptroller may adjust the rates provided by
283283 Subsection (a) as necessary to reflect changes in market
284284 conditions.
285285 (c) To receive payment under this section, a processor must
286286 submit to the comptroller a report demonstrating the processed
287287 material was sold for recycling. Information contained in the
288288 report submitted under this section is confidential and may not be
289289 disclosed by the comptroller unless required by law.
290290 (d) A processor may engage in other forms of business,
291291 including the operation of a rebate center.
292292 SUBCHAPTER E. OTHER PROGRAMS AND RELATED ACCOUNTS
293293 Sec. 375.0501. LITTER ENFORCEMENT AND EDUCATION GRANT
294294 PROGRAM AND ACCOUNT. (a) The litter enforcement and education
295295 grant program is established to provide grants to counties to
296296 develop and implement litter and illegal dumping abatement and
297297 enforcement programs.
298298 (b) The grant program established by this section is
299299 administered by the comptroller. The comptroller may partner with
300300 or designate a statewide litter prevention nonprofit organization
301301 to administer the program established under this section.
302302 (c) The litter enforcement and education account is an
303303 account in the Texas clean and healthy program fund established by
304304 Section 375.0303. The account consists of:
305305 (1) revenue from the program allocated by the
306306 comptroller; and
307307 (2) interest earned and other earnings on the
308308 investment of money in the account.
309309 (d) Money in the account may be appropriated only to award
310310 grants to counties as provided by this section.
311311 (e) The comptroller shall develop an application process
312312 for the submission by counties of applications to receive grants
313313 provided under this section.
314314 (f) The comptroller shall issue to a county receiving a
315315 grant under this section:
316316 (1) not less than $100,000 per year; and
317317 (2) for every 500,000 persons residing in the county,
318318 an additional $100,000 per year.
319319 (g) Grants awarded by the comptroller under this section may
320320 be used only for:
321321 (1) the abatement and enforcement of violations of
322322 Chapters 341, 343, and 365 of this code and Chapter 7, Water Code;
323323 (2) the establishment and management of litter
324324 control, solid waste management, or recycling systems; and
325325 (3) the support of litter prevention, solid waste
326326 management, and recycling education programs.
327327 (h) A county receiving a grant under the program may
328328 coordinate with the appropriate council of government to:
329329 (1) use personnel to administer this section; and
330330 (2) establish training programs to implement this
331331 section.
332332 Sec. 375.0502. PROGRAM DEVELOPMENT GRANT ACCOUNT. (a) The
333333 program development grant account is an account in the Texas clean
334334 and healthy program fund established by Section 375.0303. Section
335335 404.071, Government Code, does not apply to the account.
336336 (b) The account consists of any available funds
337337 appropriated for the purposes of this section.
338338 (c) The program development grant account shall be used to
339339 provide grants for the construction of rebate centers.
340340 (d) This section expires and the program development grant
341341 account is abolished September 1, 2027.
342342 Sec. 375.0503. PUBLIC HEALTH EMERGENCY ACCOUNT. (a) The
343343 public health emergency account is an account in the Texas clean and
344344 healthy program fund established by Section 375.0303. Section
345345 404.071, Government Code, does not apply to the account.
346346 (b) The account consists of:
347347 (1) the balance of program money not allocated to the
348348 litter enforcement and education grant program established by
349349 Section 375.0501 or another purpose provided by this chapter; and
350350 (2) interest earned and other earnings on the
351351 investment of money in the account.
352352 (c) The comptroller may disburse money in the account to
353353 assist prevention, mitigation, or recovery programs related to
354354 public health emergency declarations.
355355 (d) The balance of the account may not exceed $1 billion.
356356 Any amount, including interest earned, in excess of $1 billion
357357 shall be deposited to the credit of the Texas clean and healthy
358358 program fund established by Section 375.0303.
359359 SECTION 2. (a) Not later than September 1, 2022, the
360360 comptroller of public accounts shall appoint members of the Texas
361361 Clean and Healthy Advisory Council and, after consultation with the
362362 Texas Clean and Healthy Advisory Council, shall adopt any rules
363363 necessary to implement Chapter 375, Health and Safety Code, as
364364 added by this Act.
365365 (b) The requirements of Chapter 375, Health and Safety Code,
366366 as added by this Act, do not apply to any person before March 1,
367367 2023.
368368 SECTION 3. This Act takes effect immediately if it receives
369369 a vote of two-thirds of all the members elected to each house, as
370370 provided by Section 39, Article III, Texas Constitution. If this
371371 Act does not receive the vote necessary for immediate effect, this
372372 Act takes effect September 1, 2021.