By:  Maxey                                             H.B. No. 299
       73R823 JJT-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to requirements concerning beverage containers; providing
    1-3  penalties.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Subtitle B, Title 5, Health and Safety Code, is
    1-6  amended by adding Chapter 373 to read as follows:
    1-7               CHAPTER 373.  BEVERAGE CONTAINER REFUNDS
    1-8        Sec. 373.001.  DEFINITIONS.  In this chapter:
    1-9              (1)  "Beverage" means an alcoholic, nonalcoholic,
   1-10  carbonated, or noncarbonated drink prepared in liquid form and
   1-11  intended for human consumption and includes beer, ale, malt liquor,
   1-12  other drinks produced by fermenting malt, spirits, wine, wine
   1-13  coolers, soda, water, carbonated water, or soft drinks.
   1-14              (2)  "Beverage container" means a glass, metal, or
   1-15  plastic vessel that is hermetically sealed or capped and that
   1-16  contains a beverage at the time it is sold or offered for sale.
   1-17              (3)  "Commission" means the Texas Natural Resource
   1-18  Conservation Commission.
   1-19              (4)  "Distributor" means a person who distributes
   1-20  beverages in beverage containers to retail dealers.
   1-21              (5)  "Retail dealer" means a person who sells beverages
   1-22  in beverage containers to the public.
   1-23        Sec. 373.002.  REFUND VALUE AND LABEL REQUIRED.  (a)  Except
   1-24  as provided by Subsection (b), a person may not sell or offer for
    2-1  sale in this state a beverage container unless the container has a
    2-2  refund value of five cents or more and is labeled as required by
    2-3  Section 373.003.
    2-4        (b)  A person may sell or offer for sale a beverage container
    2-5  that does not have a refund value if:
    2-6              (1)  the container has a fluid capacity of more than
    2-7  one gallon;
    2-8              (2)  the container contains a noncarbonated soft drink,
    2-9  a beverage that consists of milk or of fruit or vegetable juice, or
   2-10  a beverage the primary protein source of which is derived from
   2-11  soybeans and that does not contain an additional flavoring
   2-12  ingredient; or
   2-13              (3)  the container is sold for use by a common carrier
   2-14  in conducting passenger transport.
   2-15        Sec. 373.003.  LABELING.  (a)  A beverage container required
   2-16  to have a refund value under Section 373.002 that is offered for
   2-17  sale in this state must have legibly stamped, labeled, or embossed
   2-18  on the container:
   2-19              (1)  the words "return for refund";
   2-20              (2)  the refund value of the container; and
   2-21              (3)  the name of this state or the abbreviation "TX".
   2-22        (b)  Subsection (a) does not apply to the sale of a
   2-23  refillable glass beverage container that contains water or a soft
   2-24  drink and that has a brand name permanently marked on the
   2-25  container.
   2-26        Sec. 373.004.  VENDING MACHINE NOTICE.  A person who operates
   2-27  in this state a vending machine that sells beverage containers for
    3-1  which a refund value is required by Section 373.002 shall post in a
    3-2  conspicuous place on the machine a notice to purchasers that states
    3-3  the refund value of the used beverage containers and the location
    3-4  the vending machine operator provides at which the containers may
    3-5  be returned for a refund.
    3-6        Sec. 373.005.  RETAIL DEALER REFUNDS.  (a)  Except as
    3-7  otherwise provided by this section, a retail dealer shall accept a
    3-8  used beverage container for which a refund value is required by
    3-9  Section 373.002 that is of a kind, size, and brand sold by that
   3-10  retail dealer and shall pay the refund value of the container in
   3-11  cash to the person presenting the container if:
   3-12              (1)  the brand and refund value are ascertainable from
   3-13  the container; or
   3-14              (2)  the container is an unbroken refillable glass
   3-15  beverage container that is widely known in this state to have a
   3-16  refund value of five cents or more.
   3-17        (b)  A retail dealer may refuse to accept and pay the refund
   3-18  value for more than 48 used beverage containers presented by a
   3-19  single person in one day.
   3-20        (c)  A retail dealer who sells beverages in beverage
   3-21  containers solely for consumption on the retail dealer's premises
   3-22  is not required to pay the refund value of a beverage container for
   3-23  which a deposit has not been paid to the retailer.
   3-24        Sec. 373.006.  DISTRIBUTOR REFUNDS.  (a)  A distributor of
   3-25  beverage containers shall pay the refund value in cash for a used
   3-26  beverage container for which a refund value is required by Section
   3-27  373.002 that is of a kind, size, and brand sold by that distributor
    4-1  if:
    4-2              (1)  the brand name and refund value of the container
    4-3  are ascertainable from the container; or
    4-4              (2)  the container is an unbroken refillable glass
    4-5  beverage container that is widely known in this state to have a
    4-6  refund value of five cents or more.
    4-7        (b)  Subsection (a) does not apply to the return of a
    4-8  beverage container that was sold for use by common carriers in
    4-9  conducting passenger transport.
   4-10        (c)  In addition to the payment of the refund value, a
   4-11  distributor shall reimburse the retail dealer or redemption center,
   4-12  as applicable, for the cost of handling used beverage containers in
   4-13  an amount that equals at least two cents for each returned
   4-14  container.
   4-15        (d)  Each time a distributor delivers beverage containers to
   4-16  a retail dealer, the distributor shall collect from the retail
   4-17  dealer all returned beverage containers that are of a kind, brand,
   4-18  and size sold by the distributor to the retail dealer.
   4-19        Sec. 373.007.  REFUSAL PERMITTED.  (a)  A retail dealer or
   4-20  distributor may refuse to accept for refund a glass bottle that is
   4-21  broken to the extent that it would present a safety hazard when
   4-22  handled.
   4-23        (b)  A retail dealer or distributor may refuse to accept for
   4-24  refund a used beverage container that contains part of its original
   4-25  contents or other foreign matter to the extent that it could
   4-26  present health or sanitation problems.
   4-27        Sec. 373.008.  REDEMPTION CENTERS.  A redemption center may
    5-1  be established as a place for refund of deposits on beverage
    5-2  containers in addition to, but not as a substitute for, retail
    5-3  dealerships.
    5-4        Sec. 373.009.  WASTE CONTAINER FEE.  (a)  For each calendar
    5-5  quarter, a distributor shall account for the number of beverage
    5-6  containers sold and the number of beverage containers for the
    5-7  return of which the distributor paid a refund to a retailer,
    5-8  collection center, or other person.
    5-9        (b)  If a distributor paid a refund for fewer returned
   5-10  beverage containers in a calendar quarter than the distributor sold
   5-11  in the preceding calendar quarter, the distributor shall pay a fee
   5-12  of two and one-half cents for each beverage container that
   5-13  represents the difference between the number of containers sold and
   5-14  the number of containers returned.
   5-15        (c)  On the first day of each calendar quarter, according to
   5-16  rules adopted and with forms and reports required by the
   5-17  commission, a distributor shall pay to the state treasurer the
   5-18  waste container fee required by Subsection (b).
   5-19        (d)  Money paid to the state treasurer under Subsection (c)
   5-20  shall be deposited in the state treasury to the credit of the
   5-21  municipal solid waste planning fund established by Section 363.091.
   5-22        Sec. 373.010.  REIMBURSEMENT FOR REFUND OVERPAYMENT.  A
   5-23  distributor who, in a calendar year, pays to other persons the
   5-24  refund values for more returned beverage containers than the
   5-25  distributor sells in that calendar year may apply to the
   5-26  comptroller for reimbursement on forms and with documentation
   5-27  required by the commission.  The comptroller shall reimburse a
    6-1  distributor five cents for each beverage container that represents
    6-2  the difference between the number of containers sold and the number
    6-3  of containers for which the distributor paid a refund.
    6-4  Reimbursement amounts shall be paid out of the municipal solid
    6-5  waste planning fund established by Section 363.091.
    6-6        Sec. 373.011.  CRIMINAL PENALTIES.  (a)  A person commits an
    6-7  offense if the person intentionally violates Section 373.002,
    6-8  373.004, or 373.005.  An offense under this subsection is a Class C
    6-9  misdemeanor.
   6-10        (b)  A person commits an offense if the person intentionally
   6-11  violates Section 373.006 or 373.009.  An offense under this
   6-12  subsection is a Class B misdemeanor.
   6-13        Sec. 373.012.  ADMINISTRATION.  The commission shall
   6-14  administer and enforce this chapter and may adopt rules and forms
   6-15  necessary to carry out the purposes of this chapter.
   6-16        SECTION 2.  This Act takes effect January 1, 1994.
   6-17        SECTION 3.  The importance of this legislation and the
   6-18  crowded condition of the calendars in both houses create an
   6-19  emergency   and   an   imperative   public   necessity   that   the
   6-20  constitutional rule requiring bills to be read on three several
   6-21  days in each house be suspended, and this rule is hereby suspended.