Texas 2025 - 89th Regular

Texas Senate Bill SB728 Compare Versions

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

Old	New	Differences
1	1	89R2897 DRS-F
2	2	By: Johnson S.B. No. 728
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to an incentive program to promote beverage container
10	10	recycling.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subtitle B, Title 5, Health and Safety Code, is
13	13	amended by adding Chapter 375 to read as follows:
14	14	CHAPTER 375. BEVERAGE CONTAINER RECYCLING REFUND PROGRAM
15	15	Sec. 375.001. 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.
19	19	(2) "Beverage container" means a glass, metal, or
20	20	plastic vessel that is hermetically sealed or capped and that
21	21	contains a beverage at the time it is sold or offered for sale. The
22	22	term does not include a container that:
23	23	(A) has a fluid capacity of more than one gallon;
24	24	(B) contains milk or another dairy product;
25	25	(C) contains infant formula, including any
26	26	liquid food sold as an alternative for human milk for the feeding of
27	27	infants; or
28	28	(D) contains medical food, including:
29	29	(i) a liquid food that is formulated to be
30	30	consumed or administered under the supervision of a physician and
31	31	that is intended for specific dietary management of diseases or
32	32	health conditions for which distinctive nutritional requirements,
33	33	based on recognized scientific principles, are established by
34	34	medical evaluation; and
35	35	(ii) a product that meets the definition of
36	36	a medical food under Section 5(b) of the Orphan Drug Act (21 U.S.C.
37	37	Section 360ee(b)).
38	38	(3) "Commission" means the Texas Commission on
39	39	Environmental Quality.
40	40	(4) "Consortium" means the Texas Beverage Container
41	41	Recycling Consortium established under this chapter.
42	42	(5) "Consumer" means a person who purchases at retail
43	43	a beverage in a beverage container. The term includes a lodging,
44	44	eating, or drinking establishment if beverages are generally
45	45	consumed on the establishment's premises. The term does not
46	46	include a person who purchases a beverage from a lodging, eating, or
47	47	drinking establishment for consumption on the establishment's
48	48	premises.
49	49	(6) "Redemption center" means a staffed or unstaffed
50	50	operation approved by the consortium under this chapter that
51	51	redeems returned empty beverage containers by collecting beverage
52	52	containers from persons who deliver to the operation beverage
53	53	containers and issuing to a person delivering beverage containers a
54	54	refund for each with a value not less than the beverage container's
55	55	refund value.
56	56	(7) "Refund" means a payment by a redemption center to
57	57	a person who presents a beverage container at the redemption
58	58	center.
59	59	(8) "Refund program" means the beverage container
60	60	recycling program established under this chapter.
61	61	Sec. 375.002. RULES. The commission may adopt rules to
62	62	administer this chapter. The commission may consult the consortium
63	63	and the Municipal Solid Waste Management and Resource Recovery
64	64	Advisory Council in developing for proposal rules to administer
65	65	this chapter.
66	66	Sec. 375.003. PRODUCERS. (a) Except as provided by
67	67	Subsection (b), for purposes of this chapter, the following person
68	68	is considered to be the producer of a beverage sold, offered for
69	69	sale, or distributed in or imported into this state:
70	70	(1) the manufacturer of the beverage, if the beverage
71	71	is sold in a beverage container:
72	72	(A) under the brand of the manufacturer; or
73	73	(B) that does not identify the brand;
74	74	(2) if a person described by Subdivision (1) cannot be
75	75	identified, the person licensed to manufacture the beverage and
76	76	sell or offer to sell the beverage to consumers in this state in a
77	77	beverage container under the brand or trademark of another person;
78	78	(3) if a person described by Subdivision (1) or (2)
79	79	cannot be identified, the owner of the beverage brand;
80	80	(4) if a person described by Subdivision (1), (2), or
81	81	(3) cannot be identified, the importer of record for the beverage
82	82	into the United States for use in a commercial enterprise that
83	83	sells, offers for sale, or distributes the beverage in this state;
84	84	or
85	85	(5) if a person described by Subdivision (1), (2),
86	86	(3), or (4) cannot be identified, the person that first distributes
87	87	the beverage in this state.
88	88	(b) A person is not considered to be a producer for purposes
89	89	of this chapter if the person:
90	90	(1) is a state, a federal or state agency, a political
91	91	subdivision, or another governmental entity;
92	92	(2) is an organization that is exempt from federal
93	93	income taxation under Section 501(a), Internal Revenue Code of
94	94	1986, by being listed as an exempt organization under Section
95	95	501(c)(3) or (4) of that code; or
96	96	(3) sells, offers for sale, or distributes in or
97	97	imports into this state beverages in an amount that the commission
98	98	determines to be a de minimis amount.
99	99	Sec. 375.004. CONSORTIUM REQUIRED; NON-JOINING PRODUCERS.
100	100	(a) Producers shall form, and a producer shall participate in, the
101	101	Texas Beverage Container Recycling Consortium. The consortium must
102	102	be a nonprofit corporation under Chapter 22, Business Organizations
103	103	Code, that is formed for the purpose of creating and implementing a
104	104	plan to meet and maintain the recycling rate target provided by
105	105	Section 375.009.
106	106	(b) The consortium may sue a producer that has not joined
107	107	the consortium in an appropriate court to require compliance with
108	108	the duty to join the consortium. The consortium may recover court
109	109	costs and attorney's fees if it prevails in a suit brought under
110	110	this subsection.
111	111	(c) The consortium shall:
112	112	(1) establish labeling standards for beverage
113	113	containers covered by this chapter to inform the consumer of the
114	114	refund amount provided on return of the beverage container;
115	115	(2) establish quality standards for beverage
116	116	containers accepted for refund; and
117	117	(3) collect and provide to the commission information
118	118	necessary to enable the commission to determine the biennial
119	119	recycling rate for beverage containers collected through
120	120	redemption centers, curbside recycling programs, and other means.
121	121	Sec. 375.005. RECYCLING REFUND TRUST FUND. Money,
122	122	including beverage container deposits, collected under this
123	123	chapter shall be deposited to the credit of a recycling refund trust
124	124	fund maintained by the consortium in a depository chosen by the
125	125	consortium. Money in the trust fund may be allocated and spent only
126	126	for:
127	127	(1) the construction, operation, and maintenance of
128	128	redemption centers;
129	129	(2) the operation of technology-based redemption
130	130	centers, including reverse vending machines and bag-drop
131	131	receptacles, that provide convenient cost-effective methods of
132	132	paying refunds;
133	133	(3) leasing agreements for and liability insurance on
134	134	redemption centers;
135	135	(4) refund payments to persons, including curbside
136	136	recycling programs, that return a beverage container to a
137	137	redemption center, or through other means as determined by the
138	138	consortium, that meet quality standards determined by the
139	139	consortium and that receive a refund;
140	140	(5) reimbursing a local governmental entity or
141	141	independent entity operating a redemption center, as authorized by
142	142	the consortium, for refunds paid to persons, including curbside
143	143	recycling programs, returning beverage containers that meet
144	144	quality standards determined by the consortium;
145	145	(6) reimbursing a governmental or other entity that
146	146	provides beverages free of charge to the public during a declared
147	147	disaster;
148	148	(7) providing information to and educating consumers
149	149	about the refund program; and
150	150	(8) administering and managing the consortium.
151	151	Sec. 375.006. COMPTROLLER OVERSIGHT; RESERVES. The
152	152	comptroller may:
153	153	(1) require the consortium to provide financial
154	154	information;
155	155	(2) conduct financial audits of the refund program;
156	156	and
157	157	(3) require the consortium to maintain reserves in an
158	158	amount determined by the comptroller in accordance with applicable
159	159	financial accounting standards.
160	160	Sec. 375.007. LABEL AND DEPOSIT REQUIRED. (a) A person may
161	161	not sell, offer for sale, or distribute in or import into this state
162	162	a beverage in a beverage container unless the beverage container
163	163	meets labeling standards established by the consortium.
164	164	(b) A person may not sell at retail in this state a beverage
165	165	in a beverage container unless the person collects or provides for
166	166	the collection of a deposit on the beverage container in a manner
167	167	established by the consortium.
168	168	Sec. 375.008. DEPOSITS AND REFUNDS FOR BEVERAGE CONTAINERS.
169	169	The consortium shall establish efficient, convenient, and
170	170	cost-effective procedures for the collection of a beverage
171	171	container deposit and payment of deposit refunds.
172	172	Sec. 375.009. RECYCLING RATE TARGET FOR BEVERAGE
173	173	CONTAINERS. (a) The consortium shall implement a plan to meet and
174	174	maintain an average biennial recycling rate for beverage containers
175	175	sold or distributed in or imported into this state of not less than
176	176	75 percent by January 1, 2035.
177	177	(b) If the consortium does not meet the recycling rate
178	178	target provided by Subsection (a) before the second anniversary of
179	179	the date the consortium was required to meet the target under that
180	180	subsection, the commission may require the consortium to remit to
181	181	the state all or part of the money in the recycling refund trust
182	182	fund established under Section 375.005. The comptroller shall hold
183	183	money remitted under this subsection until the consortium or
184	184	another organization provides to the commission a corrective plan
185	185	to meet the recycling rate target provided by Subsection (a).
186	186	(c) On approval by the commission of the corrective plan,
187	187	the comptroller shall release the money remitted and held under
188	188	Subsection (b) to the consortium or other organization responsible
189	189	for the plan.
190	190	(d) The commission may audit the consortium for accuracy and
191	191	adherence to the recycling rate target provided by Subsection (a).
192	192	The consortium shall reimburse the commission for the cost incurred
193	193	by the commission in the audit process.
194	194	SECTION 2. (a) Not later than September 1, 2026, the Texas
195	195	Commission on Environmental Quality shall adopt rules for the
196	196	implementation of Chapter 375, Health and Safety Code, as added by
197	197	this Act. To facilitate the approval of the structure and
198	198	organization of the Texas Beverage Container Recycling Consortium
199	199	and the consortium's initial plan, the commission may adopt the
200	200	initial rules in the manner provided by law for emergency rules.
201	201	(b) Except as otherwise provided by this Act, a producer or
202	202	other person subject to the requirements imposed by the consortium
203	203	plan adopted under Chapter 375, Health and Safety Code, as added by
204	204	this Act, shall comply with those requirements beginning January 1,
205	205	2028.
206	206	SECTION 3. (a) Except as provided by Subsection (b) of this
207	207	section, this Act takes effect September 1, 2025.
208	208	(b) Section 375.007, Health and Safety Code, as added by
209	209	this Act, takes effect October 1, 2028.