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.