By:  Parker                                           S.B. No. 1051
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to the reduction of solid waste by creating markets for
    1-2  recycled materials and otherwise promoting the use of recycled
    1-3  materials.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Chapter 481, Government Code, is amended by
    1-6  adding Subchapter AA to read as follows:
    1-7                SUBCHAPTER AA.  RECYCLING MARKET DEVELOPMENT
    1-8        Sec. 481.371.  PURPOSE.  The purpose of this subchapter is to
    1-9  develop and diversify the economy of this state and develop and
   1-10  expand commerce in this state through sustaining and promoting
   1-11  recycling enterprises.
   1-12        Sec. 481.372.  DEFINITIONS.  In this subchapter, "enterprise
   1-13  zone" and "governing body" have the meanings assigned by the Texas
   1-14  Enterprise Zone Act (Article 5190.7, Vernon's Texas Civil
   1-15  Statutes).
   1-16        Sec. 481.373.  DESIGNATION AS RECYCLING MARKET DEVELOPMENT
   1-17  ZONE.  On application by the governing body of an enterprise zone,
   1-18  the department may designate the enterprise zone as a recycling
   1-19  market development zone for the development of local business and
   1-20  industry in the zone to recycle materials that have served their
   1-21  intended use or that are scrapped, discarded, used, surplus, or
   1-22  obsolete by collecting, separating, or processing the materials for
   1-23  use in the production of new products.
    2-1        Sec. 481.374.  RECYCLING MARKET DEVELOPMENT LOANS AND GRANTS.
    2-2  (a)  The department may make a loan or grant to the governing body
    2-3  of an enterprise zone designated as a recycling market development
    2-4  zone to fund an activity that sustains or increases recycling
    2-5  efforts.
    2-6        (b)  A grant recipient under this section must match the
    2-7  amount of the state grant with an equal amount of money from
    2-8  another source.
    2-9        (c)  A grant under this section may not exceed $30,000.
   2-10        (d)  The department may make loans or grants from
   2-11  appropriated funds or from any special fund.
   2-12        Sec. 481.375.  RULEMAKING.  The department shall adopt
   2-13  necessary rules to implement and administer this subchapter in
   2-14  accordance with the purposes of this subchapter, including rules
   2-15  on:
   2-16              (1)  criteria for designating a recycling market
   2-17  development zone;
   2-18              (2)  designation applications, loan applications, and
   2-19  grant applications;
   2-20              (3)  the minimum and maximum amount of a loan made
   2-21  under this subchapter;
   2-22              (4)  application fees; and
   2-23              (5)  operational guidelines for loan and grant
   2-24  disbursement.
   2-25        SECTION 2.  Article 11, State Purchasing and General Services
    3-1  Act (Article 601b, Vernon's Texas Civil Statutes), is amended by
    3-2  adding Sections 11.07 and 11.08 to read as follows:
    3-3        Sec. 11.07.  RECYCLING BY PRIVATE ENTERPRISES THAT CONTRACT
    3-4  WITH STATE.  A private enterprise that contracts with the state
    3-5  shall exert its best efforts to recycle all materials that are
    3-6  capable of being recycled, including paper products.
    3-7        Sec. 11.08.  INTERSTATE COMPACTS AND COOPERATIVE AGREEMENTS
    3-8  FOR THE PROCUREMENT OF RECYCLED PRODUCTS.  The commission shall
    3-9  enter into compacts and cooperative agreements with other states
   3-10  and government entities for the procurement of products made of
   3-11  recycled materials.
   3-12        SECTION 3.  Section 382.002, Local Government Code, is
   3-13  amended to read as follows:
   3-14        Sec. 382.002.  Purpose.  The primary purpose of this chapter
   3-15  is to create county research and development authorities to promote
   3-16  scientific research and development and commercialization of
   3-17  research in affiliation with public and private institutions of
   3-18  research, higher education, or health science centers.  Research to
   3-19  be promoted, developed, and commercialized includes research in
   3-20  recycling processes and recyclable materials.
   3-21        SECTION 4.  Subsection (a), Section 481.078, Government Code,
   3-22  is amended to read as follows:
   3-23        (a)  The department may develop and plan programs for the
   3-24  purpose of promoting and encouraging the location and expansion of
   3-25  major industrial, <and> manufacturing, and recycling enterprises
    4-1  within this state and may coordinate, with the consent of local
    4-2  governments, the activities of the local governments related to the
    4-3  programs, including financing options available under existing law
    4-4  and this section for that purpose.
    4-5        SECTION 5.  Subdivision (2), Subsection (a), Section 4B,
    4-6  Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas
    4-7  Civil Statutes), is amended to read as follows:
    4-8              (2)  "Project" means land, buildings, equipment,
    4-9  facilities, and improvements included in the definition of that
   4-10  term under Section 2 of this Act, including recycling facilities,
   4-11  and land, buildings, equipment, facilities, and improvements found
   4-12  by the board of directors to be required or suitable for use for
   4-13  professional and amateur (including children's) sports, athletic,
   4-14  entertainment, tourist, convention, and public park purposes and
   4-15  events, including stadiums, ball parks, auditoriums, amphitheaters,
   4-16  concert halls, learning centers, parks and park facilities, open
   4-17  space improvements, municipal buildings, museums, exhibition
   4-18  facilities, and related store, restaurant, concession, and
   4-19  automobile parking facilities, related area transportation
   4-20  facilities, and related roads, streets, and water and sewer
   4-21  facilities, and other related improvements that enhance any of
   4-22  those items.
   4-23        SECTION 6.  Subsections (a) and (e), Section 361.013, Health
   4-24  and Safety Code, are amended to read as follows:
   4-25        (a)  Except as provided by Subsection (e), the department
    5-1  shall charge a fee on solid waste that is disposed of within this
    5-2  state.  The fee is the greater of 50 cents per ton or, for
    5-3  compacted solid waste, 50 cents per cubic yard or, for uncompacted
    5-4  solid waste, 10 cents per cubic yard received for disposal at a
    5-5  landfill.  The department shall set the fee for sludge or similar
    5-6  waste applied to the land for beneficial use on a dry weight basis
    5-7  and for solid waste received at an incinerator <or a shredding and
    5-8  composting facility> at half the fee set for solid waste received
    5-9  for disposal at a landfill.  The department may charge comparable
   5-10  fees for other means of solid waste disposal that are used.
   5-11        (e)(1)  The department may not charge a fee under Subsection
   5-12  (a) for scrap tires that are deposited in a designated recycling
   5-13  collection area at a landfill permitted by the commission or the
   5-14  department or licensed by a county or by a political subdivision
   5-15  exercising the authority granted by Section 361.165 and that are
   5-16  temporarily stored for eventual recycling, reuse, or energy
   5-17  recovery.
   5-18              (2)  No fee may be charged under Subsection (a) for
   5-19  materials received at a composting facility, including a composting
   5-20  facility located at a permitted landfill site, that are converted
   5-21  to compost through the composting process.  Any compost that is not
   5-22  used as compost and is deposited in a landfill is not exempt from
   5-23  the fee.
   5-24        SECTION 7.  Section 361.422, Health and Safety Code, is
   5-25  amended by adding Subsection (d) to read as follows:
    6-1        (d)  Before January 1, 1994, the commission shall determine
    6-2  whether the goal established in Subsection (a) is being achieved.
    6-3  If the commission finds that the goal is not being achieved, it
    6-4  shall convene an advisory task force consisting of representatives
    6-5  of the commission, the General Land Office, local governments, the
    6-6  Municipal Solid Waste Management and Resource Recovery Advisory
    6-7  Council, and the commercial solid waste disposal industry and shall
    6-8  institute a phased-in ban on the disposal of yard waste in a
    6-9  landfill after adoption of rules for that purpose and beginning no
   6-10  earlier than January 1, 1996.  The task force shall recommend a
   6-11  plan to the commission for implementing the ban, after taking the
   6-12  following factors into consideration:
   6-13              (1)  how the ban will affect the state's disposal
   6-14  capacity;
   6-15              (2)  how the ban will affect the economy of the state;
   6-16              (3)  how the ban will affect local governments; and
   6-17              (4)  how the ban will be accepted and adhered to by the
   6-18  citizens of the state.
   6-19        SECTION 8.  Section 361.423, Health and Safety Code, is
   6-20  amended to read as follows:
   6-21        Sec. 361.423.  RECYCLING MARKET DEVELOPMENT BOARD <STUDY> AND
   6-22  IMPLEMENTATION PROGRAM.  (a)  The Commissioner of the General Land
   6-23  Office<, in cooperation with the department>, the chairman of the
   6-24  Texas Water Commission, the executive director of the General
   6-25  Services <Railroad> Commission <of Texas>, and the executive
    7-1  director of the Texas Department of Commerce<,> shall constitute
    7-2  the Recycling Market Development Board.  The Commissioner of the
    7-3  General Land Office serves as the chair of the Recycling Market
    7-4  Development Board initially, and the position of chair shall rotate
    7-5  among the members annually thereafter.  The Recycling Market
    7-6  Development Board may designate chief executives of additional
    7-7  agencies as members of the board if it identifies the agencies as
    7-8  agencies needed to assist the board in performing its duties as
    7-9  outlined in Subsection (b).  The Recycling Market Development Board
   7-10  shall provide support to and coordinate the recycling activities of
   7-11  member agencies and shall pursue <initiate, coordinate, and conduct
   7-12  a comprehensive market development study that quantifies the
   7-13  potential benefits and costs of recycling in order to provide the
   7-14  groundwork for> an economic development strategy that focuses on
   7-15  the state's waste management priorities established by Section
   7-16  361.022 and that includes development of recycling industries and
   7-17  markets as an integrated component.
   7-18        (b)  The Recycling Market Development Board, on an ongoing
   7-19  basis, <study> shall:
   7-20              (1)  identify existing economic and regulatory
   7-21  incentives and disincentives for creating an optimal market
   7-22  development strategy;
   7-23              (2)  analyze the market development implications of:
   7-24                    (A)  the state's waste management policies and
   7-25  regulations;
    8-1                    (B)  existing and potential markets for plastic,
    8-2  glass, paper, lead-acid batteries, tires, compost, scrap gypsum,
    8-3  and other recyclable materials; and
    8-4                    (C)  the state's tax structure and overall
    8-5  economic base;
    8-6              (3)  examine and make policy recommendations regarding
    8-7  the need for changes in or the development of:
    8-8                    (A)  economic policies that affect
    8-9  transportation, such as those embodied in freight rate schedules;
   8-10                    (B)  tax incentives and disincentives;
   8-11                    (C)  the availability of financial capital
   8-12  including grants, loans, and venture capital;
   8-13                    (D)  enterprise zones;
   8-14                    (E)  managerial and technical assistance;
   8-15                    (F)  job-training programs;
   8-16                    (G)  strategies for matching market supply and
   8-17  market demand for recyclable materials, including intrastate and
   8-18  interstate coordination;
   8-19                    (H)  the state recycling goal;
   8-20                    (I)  public-private partnerships;
   8-21                    (J)  research and development;
   8-22                    (K)  government procurement policies;
   8-23                    (L)  educational programs for the public,
   8-24  corporate and regulated communities, and government entities; and
   8-25                    (M)  public health and safety regulatory
    9-1  policies; <and>
    9-2              (4)  establish a comprehensive statewide strategy to
    9-3  expand markets for recycled products in Texas; and
    9-4              (5)  provide information and technical assistance to
    9-5  small and disadvantaged businesses, business development centers,
    9-6  chambers of commerce, educational institutions, and nonprofit
    9-7  associations on market opportunities in the area of recycling.
    9-8        (c)  In carrying out this section <preparing the study>, the
    9-9  responsible agencies may obtain research and development and
   9-10  technical assistance from the Hazardous Waste Research Center at
   9-11  Lamar University at Beaumont or other similar institutions.
   9-12        (d)  The General Land Office shall provide ongoing research
   9-13  and assistance to the Recycling Market Development Board in the
   9-14  carrying out of its responsibilities.
   9-15        (e)  The Texas Water Commission shall develop and carry out a
   9-16  program designed to implement the recommendations of the
   9-17  comprehensive market development study completed pursuant to
   9-18  Section 1, Chapter 303, Acts of the 72nd Legislature, Regular
   9-19  Session, 1991, and the comprehensive statewide strategy established
   9-20  pursuant to Subsection (b)(4).
   9-21        SECTION 9.  Subchapter N, Chapter 361, Health and Safety
   9-22  Code, is amended by adding Section 361.4261 to read as follows:
   9-23        Sec. 361.4261.  STATE AGENCY EXPENDITURES FOR RECYCLED
   9-24  MATERIALS.  State agencies shall expend a minimum of five percent
   9-25  of their procurement budget in fiscal year 1994 and eight percent
   10-1  of their procurement budget for each fiscal year thereafter for
   10-2  materials, supplies, and equipment that have recycled material
   10-3  content or are remanufactured or environmentally sensitive, as
   10-4  those terms are defined by the General Services Commission.  A
   10-5  report of the total expenditures in these areas and the amount
   10-6  expended in each category for the previous fiscal year shall be
   10-7  delivered to the governor, the Legislative Budget Board, the
   10-8  lieutenant governor, and the speaker of the house of
   10-9  representatives not later than January 1 of each year.
  10-10        SECTION 10.  Section 361.428, Health and Safety Code, is
  10-11  amended to read as follows:
  10-12        Sec. 361.428.  Composting Program.  (a)  <The Municipal Solid
  10-13  Waste Management and Resource Recovery Advisory Council of the
  10-14  department shall develop recommendations for the 73rd Legislature
  10-15  regarding the development of a state composting program.  In
  10-16  developing these recommendations, the council shall, at a minimum,
  10-17  consider:>
  10-18              <(1)  the development of local yard waste separation
  10-19  programs;>
  10-20              <(2)  the commercial application of composting
  10-21  activities;>
  10-22              <(3)  the potential beneficial uses of compost; and>
  10-23              <(4)  the necessary changes to existing law and
  10-24  regulations required to facilitate conversion of yard waste to
  10-25  compost.>
   11-1        <(b)>  The commission <department> shall put in place a
   11-2  composting program that is capable of achieving at least a 15
   11-3  percent reduction in the amount of the municipal solid waste stream
   11-4  that is disposed of in landfills by January 1, 1994.
   11-5        (b)  The commission shall adopt rules establishing minimum
   11-6  standards and guidelines for the issuance of permits for processes
   11-7  or facilities which produce compost that is the product of material
   11-8  from the typical mixed solid waste stream generated by residential,
   11-9  institutional, commercial, or industrial sources.  A reduction in
  11-10  the mixed solid waste stream that occurs as a result of the
  11-11  beneficial reuse of compost produced by a facility permitted under
  11-12  this subsection shall be used in achieving the goal established
  11-13  under Section 361.422.  The minimum standards must include
  11-14  end-product standards and a definition of beneficial reuse.  The
  11-15  commission shall consider regulations issued by the United States
  11-16  Environmental Protection Agency in developing minimum standards.
  11-17  Beneficial reuse does not include landfilling or the use of compost
  11-18  as daily landfill cover.
  11-19        (c)  A composting facility may not accept mixed municipal
  11-20  solid waste from a governmental unit without ensuring that
  11-21  residents have access to household hazardous waste collection and
  11-22  source-separated recycling programs.  The commission shall
  11-23  establish standards for household hazardous waste collection
  11-24  programs and source-separated recycling programs that qualify under
  11-25  this section.
   12-1        SECTION 11.  Section 361.452, Health and Safety Code, is
   12-2  amended to read as follows:
   12-3        Sec. 361.452.  Collection for Recycling.  A person selling
   12-4  lead-acid batteries at retail or offering lead-acid batteries for
   12-5  retail sale in this state shall:
   12-6              (1)  accept <from customers>, if offered, at least one
   12-7  but not more than three <the point of transfer, used> lead-acid
   12-8  batteries for recycling <of the type and in a quantity at least
   12-9  equal to the number of new batteries purchased>; and
  12-10              (2)  post written notice, which must be at least 8-1/2
  12-11  inches by 11 inches in size, containing the universal recycling
  12-12  symbol and the following language:
  12-13                    (A)  "It is illegal to discard or improperly
  12-14  dispose of a motor-vehicle battery or other lead-acid battery.";
  12-15                    (B)  "Recycle your used batteries."; and
  12-16                    (C)  "State law requires us to accept used
  12-17  motor-vehicle batteries or other lead-acid batteries for recycling
  12-18  <in exchange for new batteries purchased>."
  12-19        SECTION 12.  Section 361.454, Health and Safety Code, is
  12-20  amended to read as follows:
  12-21        Sec. 361.454.  LEAD-ACID BATTERY WHOLESALERS.  Any person
  12-22  selling new lead-acid batteries at wholesale shall accept from
  12-23  customers, at the point of transfer, used lead-acid batteries for
  12-24  recycling <of the type and in a quantity at least equal to the
  12-25  number of new batteries purchased>, if offered by customers.  A
   13-1  person accepting batteries in transfer from a battery retailer
   13-2  shall remove batteries from the retail point of collection within
   13-3  90 days after acceptance.
   13-4        SECTION 13.  Section 63.071, Agriculture Code, is amended by
   13-5  adding Subsection (h) to read as follows:
   13-6        (h)  A person is not required to pay an inspection fee on
   13-7  compost as defined by Section 361.421, Health and Safety Code.
   13-8        SECTION 14.  Section 481.295, Government Code, is amended by
   13-9  adding Subsection (c) to read as follows:
  13-10        (c)  The department and the advisory board may make a loan or
  13-11  a loan guarantee to the governing body of an enterprise zone
  13-12  designated as a recycling market development zone under Subchapter
  13-13  AA to fund an activity that sustains or increases recycling
  13-14  efforts.
  13-15        SECTION 15.  The Texas Natural Resource Conservation
  13-16  Commission shall adopt the rules required by Subsection (b),
  13-17  Section 361.428, Health and Safety Code, as added by this Act, not
  13-18  later than six months after the effective date of this Act.
  13-19        SECTION 16.  The importance of this legislation and the
  13-20  crowded condition of the calendars in both houses create an
  13-21  emergency and an imperative public necessity that the
  13-22  constitutional rule requiring bills to be read on three several
  13-23  days in each house be suspended, and this rule is hereby suspended,
  13-24  and that this Act take effect and be in force from and after its
  13-25  passage, and it is so enacted.