S.B. No. 1051
                                        AN ACT
    1-1  relating to the reduction of solid waste by creating markets for
    1-2  recycled materials and otherwise promoting recycling and the use of
    1-3  recycled materials and by municipal solid waste management.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5                         ARTICLE 1.  RECYCLING
    1-6        SECTION 1.01.  Chapter 481, Government Code, is amended by
    1-7  adding Subchapter AA to read as follows:
    1-8             SUBCHAPTER AA.  RECYCLING MARKET DEVELOPMENT
    1-9        Sec. 481.371.  PURPOSE.  The purpose of this subchapter is to
   1-10  develop and diversify the economy of this state and develop and
   1-11  expand commerce in this state through sustaining and promoting
   1-12  recycling enterprises.
   1-13        Sec. 481.372.  DEFINITIONS.  In this subchapter, "enterprise
   1-14  zone" and "governing body" have the meanings assigned by the Texas
   1-15  Enterprise Zone Act (Article 5190.7, Vernon's Texas Civil
   1-16  Statutes).
   1-17        Sec. 481.373.  DESIGNATION AS RECYCLING MARKET DEVELOPMENT
   1-18  ZONE.  On application by the governing body of an enterprise zone,
   1-19  the department may designate the enterprise zone as a recycling
   1-20  market development zone for the development of local business and
   1-21  industry in the zone to recycle materials that have served their
   1-22  intended use or that are scrapped, discarded, used, surplus, or
   1-23  obsolete by collecting, separating, or processing the materials for
    2-1  use in the production of new products.
    2-2        Sec. 481.374.  RECYCLING MARKET DEVELOPMENT LOANS AND GRANTS.
    2-3  (a)  The department may make a loan or grant to the governing body
    2-4  of an enterprise zone designated as a recycling market development
    2-5  zone to fund an activity that sustains or increases recycling
    2-6  efforts.
    2-7        (b)  A grant recipient under this section must match the
    2-8  amount of the state grant with an equal amount of money from
    2-9  another source.
   2-10        (c)  A grant under this section may not exceed $30,000.
   2-11        (d)  The department may make loans or grants from
   2-12  appropriated funds or from any special fund.
   2-13        Sec. 481.375.  RULEMAKING.  The department shall adopt
   2-14  necessary rules to implement and administer this subchapter in
   2-15  accordance with the purposes of this subchapter, including rules
   2-16  on:
   2-17              (1)  criteria for designating a recycling market
   2-18  development zone;
   2-19              (2)  designation applications, loan applications, and
   2-20  grant applications;
   2-21              (3)  the minimum and maximum amount of a loan made
   2-22  under this subchapter;
   2-23              (4)  application fees; and
   2-24              (5)  operational guidelines for loan and grant
   2-25  disbursement.
    3-1        SECTION 1.02.  Article 3, State Purchasing and General
    3-2  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
    3-3  amended by adding Section 3.33 to read as follows:
    3-4        Sec. 3.33.  STATE AGENCY EXPENDITURES FOR RECYCLED MATERIALS.
    3-5  A state agency shall expend a minimum of five percent of its
    3-6  consumable procurement budget in fiscal year 1994 and eight percent
    3-7  of its consumable procurement budget for each fiscal year
    3-8  thereafter for materials, supplies, and equipment that have
    3-9  recycled material content or are remanufactured or environmentally
   3-10  sensitive, as those terms are defined by the commission.  A report
   3-11  of the total expenditures in these areas and the amount expended in
   3-12  each category for the previous fiscal year shall be delivered to
   3-13  the governor, the Legislative Budget Board, the lieutenant
   3-14  governor, and the speaker of the house of representatives not later
   3-15  than January 1 of each year.
   3-16        SECTION 1.03.  Article 11, State Purchasing and General
   3-17  Services Act (Article 601b, Vernon's Texas Civil Statutes), is
   3-18  amended by adding Section 11.07 to read as follows:
   3-19        Sec. 11.07.  INTERSTATE COMPACTS AND COOPERATIVE AGREEMENTS
   3-20  FOR PROCUREMENT OF RECYCLED PRODUCTS.  The commission shall enter
   3-21  into compacts and cooperative agreements with other states and
   3-22  government entities for the procurement of products made of
   3-23  recycled materials.
   3-24        SECTION 1.04.  Section 382.002, Local Government Code, is
   3-25  amended to read as follows:
    4-1        Sec. 382.002.  Purpose.  The primary purpose of this chapter
    4-2  is to create county research and development authorities to promote
    4-3  scientific research and development and commercialization of
    4-4  research in affiliation with public and private institutions of
    4-5  research, higher education, or health science centers.  Research to
    4-6  be promoted, developed, and commercialized includes research in
    4-7  recycling processes and recyclable materials.
    4-8        SECTION 1.05.  Subsection (a), Section 481.078, Government
    4-9  Code, is amended to read as follows:
   4-10        (a)  The department may develop and plan programs for the
   4-11  purpose of promoting and encouraging the location and expansion of
   4-12  major industrial, <and> manufacturing, and recycling enterprises
   4-13  within this state and may coordinate, with the consent of local
   4-14  governments, the activities of the local governments related to the
   4-15  programs, including financing options available under existing law
   4-16  and this section for that purpose.
   4-17        SECTION 1.06.  Subdivision (10), Section 2, Development
   4-18  Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
   4-19  Statutes), is amended to read as follows:
   4-20              (10)  "Project" shall mean the land, buildings,
   4-21  equipment, facilities, and improvements (one or more) found by the
   4-22  board of directors to be required or suitable for the promotion of
   4-23  development and expansion of manufacturing and industrial
   4-24  facilities, transportation facilities (including but not limited to
   4-25  airports, ports, mass commuting facilities, and parking
    5-1  facilities), sewage or solid waste disposal facilities,  recycling
    5-2  facilities, air or water pollution control facilities, facilities
    5-3  for the furnishing of water to the general public, distribution
    5-4  centers, small warehouse facilities capable of serving as
    5-5  decentralized storage and distribution centers, and facilities
    5-6  which are related to any of the foregoing, and in furtherance of
    5-7  the public purposes of this Act, all as defined in the rules of the
    5-8  department, irrespective of whether in existence or required to be
    5-9  identified, acquired, or constructed thereafter.  As used in this
   5-10  Act, the term "development areas" shall mean any area or areas of a
   5-11  city that the city finds and determines, after a public hearing,
   5-12  should be developed in order to meet the development objectives of
   5-13  the city.  In addition, in blighted or economically depressed
   5-14  areas, development areas or federally assisted new communities
   5-15  located within a home-rule city or a federally designated
   5-16  economically depressed county of less than 50,000 persons according
   5-17  to the last federal decennial census, a project may include the
   5-18  land, buildings, equipment, facilities, and improvements (one or
   5-19  more) found by the board of directors to be required or suitable
   5-20  for the promotion of commercial development and expansion and in
   5-21  furtherance of the public purposes of this Act, or for use by
   5-22  commercial enterprises, all as defined in the rules of the
   5-23  department, irrespective of whether in existence or required to be
   5-24  acquired or constructed thereafter.  As used in this Act, the term
   5-25  blighted or economically depressed areas shall mean those areas and
    6-1  areas immediately adjacent thereto within a city which by reason of
    6-2  the presence of a substantial number of substandard, slum,
    6-3  deteriorated, or deteriorating structures, or which suffer from a
    6-4  high relative rate of unemployment, or which have been designated
    6-5  and included in a tax incremental district created under Chapter
    6-6  695, Acts of the 66th Legislature, Regular Session, 1979 (Article
    6-7  1066d, Vernon's Texas Civil Statutes), or any combination of the
    6-8  foregoing, the city finds and determines, after a hearing,
    6-9  substantially impair or arrest the sound growth of the city, or
   6-10  constitute an economic or social liability and are a menace to the
   6-11  public health, safety, or welfare in their present condition and
   6-12  use.  The department shall adopt guidelines that describe the kinds
   6-13  of areas that may be considered to be blighted or economically
   6-14  depressed.  The city shall consider these guidelines in making its
   6-15  findings and determinations.  Notice of the hearing at which the
   6-16  city considers establishment of a development area or an
   6-17  economically depressed or blighted area shall be posted at the city
   6-18  hall before the hearing.
   6-19        "Federally assisted new communities" shall mean those
   6-20  federally assisted areas which have received or will receive
   6-21  assistance in the form of loan guarantees under Title X of the
   6-22  National Housing Act  and a portion of the federally assisted area
   6-23  has received grants under Section 107(a)(1) of the Housing and
   6-24  Community Development Act of 1974, as amended.
   6-25        SECTION 1.07.  Subdivision (2), Subsection (a), Section 4B,
    7-1  Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas
    7-2  Civil Statutes), is amended to read as follows:
    7-3              (2)  "Project" means land, buildings, equipment,
    7-4  facilities, and improvements included in the definition of that
    7-5  term under Section 2 of this Act, including recycling facilities,
    7-6  and land, buildings, equipment, facilities, and improvements found
    7-7  by the board of directors to be required or suitable for use for
    7-8  professional and amateur (including children's) sports, athletic,
    7-9  entertainment, tourist, convention, and public park purposes and
   7-10  events, including stadiums, ball parks, auditoriums, amphitheaters,
   7-11  concert halls, learning centers, parks and park facilities, open
   7-12  space improvements, municipal buildings, museums, exhibition
   7-13  facilities, and related store, restaurant, concession, and
   7-14  automobile parking facilities, related area transportation
   7-15  facilities, and related roads, streets, and water and sewer
   7-16  facilities, and other related improvements that enhance any of
   7-17  those items.
   7-18        SECTION 1.08.  Section 361.013, Health and Safety Code, is
   7-19  amended by amending Subsection (a) and adding Subsections (f) and
   7-20  (g) to read as follows:
   7-21        (a)  Except as provided by Subsection (e), the department
   7-22  shall charge a fee on solid waste that is disposed of within this
   7-23  state.  The fee is $1.25 <the greater of 50 cents> per ton received
   7-24  for disposal at a landfill if the solid waste is measured by
   7-25  weight.  If the solid waste is measured by volume, the fee <or,>
    8-1  for compacted solid waste is 40<, 50> cents per cubic yard or, for
    8-2  uncompacted solid waste, 25 <10> cents per cubic yard received for
    8-3  disposal at a landfill.  The department shall set the fee for
    8-4  sludge or similar waste applied to the land for beneficial use on a
    8-5  dry weight basis and for solid waste received at an incinerator or
    8-6  a shredding and composting facility at half the fee set for solid
    8-7  waste received for disposal at a landfill.  The department may
    8-8  charge comparable fees for other means of solid waste disposal that
    8-9  are used.
   8-10        (f)  The department may not charge a fee under Subsection (a)
   8-11  for source separated yard waste materials that are composted at a
   8-12  composting facility, including a composting facility located at a
   8-13  permitted landfill site.  The department shall credit any fee
   8-14  payment due under Subsection (a) for any material received and
   8-15  converted to compost or product for composting through a composting
   8-16  process.  Any compost or product for composting that is not used as
   8-17  compost and is deposited in a landfill is not exempt from the fee.
   8-18        (g)  The department shall allow a home-rule municipality that
   8-19  has enacted an ordinance imposing a local environmental protection
   8-20  fee for disposal services as of January 1, 1993, to offer disposal
   8-21  or environmental programs or services to persons within its
   8-22  jurisdiction, from the revenues generated by said fee, as such
   8-23  services are required by state or federal mandates.  If such
   8-24  services or programs are offered, the home-rule municipality may
   8-25  require their use by those persons within its jurisdiction.
    9-1        SECTION 1.09.  Subchapter B, Chapter 361, Health and Safety
    9-2  Code, is amended by adding Section 361.0135 to read as follows:
    9-3        Sec. 361.0135.  COMPOSTING REFUND.  (a)  The operator of a
    9-4  public or privately owned municipal solid waste facility is
    9-5  entitled to a refund of 15 percent of the solid waste fees
    9-6  collected by the facility under Section 361.013(a) if:
    9-7              (1)  the refunds are used to lease or purchase and
    9-8  operate equipment necessary to compost yard waste;
    9-9              (2)  composting operations are actually performed; and
   9-10              (3)  the finished compost material produced by the
   9-11  facility is returned to beneficial reuse.
   9-12        (b)  The amount of the refund authorized by this section
   9-13  increases to 20 percent of the solid waste fees collected by the
   9-14  facility if, in addition to composting the yard waste, the operator
   9-15  of the facility voluntarily bans the disposal of yard waste at the
   9-16  facility.
   9-17        (c)  In order to receive a refund authorized by this section,
   9-18  the operator of the facility must submit a composting plan to the
   9-19  commission.  The commission by rule may set a fee for reviewing a
   9-20  composting plan in an amount not to exceed the costs of review.
   9-21        (d)  The operator is entitled to a refund of fees collected
   9-22  by the facility under Section 361.013(a) on or after the date on
   9-23  which the commission approves the composting plan.  The refund is
   9-24  collectable  beginning on the date that the first composting
   9-25  operations occur in accordance with the approved plan.  The
   10-1  commission may allow the refund to be applied as a credit against
   10-2  fees required to be collected by the facility under Section
   10-3  361.013(a).
   10-4        (e)  In this section, the terms "compost," "composting," and
   10-5  "yard waste" have the meanings assigned by Section 361.421.
   10-6        (f)  This section expires September 1, 1999, if the
   10-7  commission on or before that date determines that a market in
   10-8  composting materials has developed sufficiently to ensure that
   10-9  composting activities will continue without the incentives provided
  10-10  by this section.
  10-11        SECTION 1.10.  Section 361.014, Health and Safety Code, is
  10-12  amended to read as follows:
  10-13        Sec. 361.014.  Use of Solid Waste Fee Revenue.  Revenue
  10-14  received by the commission <department> under Section 361.013 shall
  10-15  be deposited in the state treasury to the credit of the commission
  10-16  <department>.  At least half the revenue is dedicated to the
  10-17  commission's <department's> municipal solid waste permitting and
  10-18  enforcement programs and related support activities, and the
  10-19  balance of the revenue is dedicated to pay for activities that will
  10-20  enhance the state's solid waste management program, including:
  10-21              (1)  provision of funds for the municipal solid waste
  10-22  management planning fund and the municipal solid waste resource
  10-23  recovery applied research and technical assistance fund established
  10-24  by the Comprehensive Municipal Solid Waste Management, Resource
  10-25  Recovery, and Conservation Act (Chapter 363);
   11-1              (2)  conduct of demonstration projects and studies to
   11-2  help local governments of various populations and the private
   11-3  sector to convert to accounting systems and set rates that reflect
   11-4  the full costs of providing waste management services and are
   11-5  proportionate to the amount of waste generated;
   11-6              (3)  provision of technical assistance to local
   11-7  governments concerning solid waste management;
   11-8              (4) <(3)>  establishment of a solid waste resource
   11-9  center in the department and an office of waste minimization and
  11-10  recycling;
  11-11              (5) <(4)>  provision of supplemental funding to local
  11-12  governments for the enforcement of this chapter, the Texas Litter
  11-13  Abatement Act (Chapter 365), and Chapter 741, Acts of the 67th
  11-14  Legislature, Regular Session, 1981 (Article 4477-9a, Vernon's Texas
  11-15  Civil Statutes);
  11-16              (6) <(5)>  conduct of a statewide public awareness
  11-17  program concerning solid waste management;
  11-18              (7) <(6)>  provision of supplemental funds for other
  11-19  state agencies with responsibilities concerning solid waste
  11-20  management, recycling, and other initiatives with the purpose of
  11-21  diverting recyclable waste from landfills;
  11-22              (8) <(7)>  conduct of research to promote the
  11-23  development and stimulation of markets for recycled waste products;
  11-24              (9) <(8)>  creation of a state municipal solid waste
  11-25  superfund for:
   12-1                    (A)  the cleanup of unauthorized tire dumps and
   12-2  solid waste dumps for which a responsible party cannot be located
   12-3  or is not immediately financially able to provide the cleanup; and
   12-4                    (B)  the cleanup or proper closure of abandoned
   12-5  or contaminated municipal solid waste sites for which a responsible
   12-6  party is not immediately financially able to provide the cleanup;
   12-7  <and>
   12-8              (10)  provision of funds to mitigate the economic and
   12-9  environmental impacts of lead-acid battery recycling on local
  12-10  governments;
  12-11              (11)  provision of funds for the conduct of research by
  12-12  a public or private entity to assist the state in developing new
  12-13  technologies and methods to reduce the amount of municipal waste
  12-14  disposed of in landfills; and
  12-15              (12) <(9)>  provision of funds for other programs that
  12-16  the commission <board of health> may consider appropriate to
  12-17  further the purposes of this chapter.
  12-18        SECTION 1.11.  Subdivision (5), Section 361.421, Health and
  12-19  Safety Code, is amended to read as follows:
  12-20              (5)  "Recyclable material" means material that has been
  12-21  recovered or diverted from the non-hazardous solid waste stream for
  12-22  purposes of reuse, recycling, or reclamation, a substantial portion
  12-23  of which is consistently used in the manufacture of products which
  12-24  may otherwise be produced using raw or virgin materials.
  12-25  Recyclable material is not solid waste.  However, recyclable
   13-1  material may become solid waste at such time, if any, as it is
   13-2  abandoned or disposed of rather than recycled, whereupon it will be
   13-3  solid waste with respect only to the party actually abandoning or
   13-4  disposing of the material.
   13-5        SECTION 1.12.  Section 361.423, Health and Safety Code, is
   13-6  amended to read as follows:
   13-7        Sec. 361.423.  RECYCLING MARKET DEVELOPMENT BOARD <STUDY> AND
   13-8  IMPLEMENTATION PROGRAM.  (a)  The commissioner of the General Land
   13-9  Office<, in cooperation with the department>, the chairman of the
  13-10  Texas Water Commission, the executive director of the General
  13-11  Services <Railroad> Commission <of Texas>, and the executive
  13-12  director of the Texas Department of Commerce<,> shall constitute
  13-13  the Recycling Market Development Board.  The commissioner of the
  13-14  General Land Office serves as presiding officer of the Recycling
  13-15  Market Development Board for the first year, and after that year
  13-16  the members of the Recycling Market Development Board shall, in the
  13-17  order listed in this subsection, rotate as the presiding officer
  13-18  for terms of one year.  The Recycling Market Development Board may
  13-19  designate chief executives of additional agencies as members of the
  13-20  board if it identifies the agencies as agencies needed to assist
  13-21  the board in performing its duties as outlined in Subsection (b).
  13-22  The Recycling Market Development Board shall provide support to and
  13-23  coordinate the recycling activities of member agencies and shall
  13-24  pursue <initiate, coordinate, and conduct a comprehensive market
  13-25  development study that quantifies the potential benefits and costs
   14-1  of recycling in order to provide the groundwork for> an economic
   14-2  development strategy that focuses on the state's waste management
   14-3  priorities established by Section 361.022 and that includes
   14-4  development of recycling industries and markets as an integrated
   14-5  component.
   14-6        (b)  The Recycling Market Development Board, on an ongoing
   14-7  basis, <study> shall:
   14-8              (1)  identify existing economic and regulatory
   14-9  incentives and disincentives for creating an optimal market
  14-10  development strategy;
  14-11              (2)  analyze the market development implications of:
  14-12                    (A)  the state's waste management policies and
  14-13  regulations;
  14-14                    (B)  existing and potential markets for plastic,
  14-15  glass, paper, lead-acid batteries, tires, compost, scrap gypsum,
  14-16  coal combustion by-products, and other recyclable materials; and
  14-17                    (C)  the state's tax structure and overall
  14-18  economic base;
  14-19              (3)  examine and make policy recommendations regarding
  14-20  the need for changes in or the development of:
  14-21                    (A)  economic policies that affect
  14-22  transportation, such as those embodied in freight rate schedules;
  14-23                    (B)  tax incentives and disincentives;
  14-24                    (C)  the availability of financial capital
  14-25  including grants, loans, and venture capital;
   15-1                    (D)  enterprise zones;
   15-2                    (E)  managerial and technical assistance;
   15-3                    (F)  job-training programs;
   15-4                    (G)  strategies for matching market supply and
   15-5  market demand for recyclable materials, including intrastate and
   15-6  interstate coordination;
   15-7                    (H)  the state recycling goal;
   15-8                    (I)  public-private partnerships;
   15-9                    (J)  research and development;
  15-10                    (K)  government procurement policies;
  15-11                    (L)  educational programs for the public,
  15-12  corporate and regulated communities, and government entities; and
  15-13                    (M)  public health and safety regulatory
  15-14  policies; <and>
  15-15              (4)  establish a comprehensive statewide strategy to
  15-16  expand markets for recycled products in Texas;
  15-17              (5)  provide information and technical assistance to
  15-18  small and disadvantaged businesses, business development centers,
  15-19  chambers of commerce, educational institutions, and nonprofit
  15-20  associations on market opportunities in the area of recycling; and
  15-21              (6)  with the cooperation of the Office of
  15-22  State-Federal Relations, assist communities and private entities in
  15-23  identifying state and federal grants pertaining to recycling and
  15-24  solid waste management.
  15-25        (c)  In carrying out this section <preparing the study>, the
   16-1  responsible agencies may obtain research and development and
   16-2  technical assistance from the Hazardous Waste Research Center at
   16-3  Lamar University at Beaumont or other similar institutions.
   16-4        (d)  The General Land Office shall provide ongoing research
   16-5  and assistance to the Recycling Market Development Board in
   16-6  carrying out its responsibilities <develop and carry out a program
   16-7  designed to implement the comprehensive statewide strategy
   16-8  established pursuant to Subsection (b)(4)>.
   16-9        SECTION 1.13.  Section 361.428, Health and Safety Code, is
  16-10  amended to read as follows:
  16-11        Sec. 361.428.  Composting Program.  (a)  <The Municipal Solid
  16-12  Waste Management and Resource Recovery Advisory Council of the
  16-13  department shall develop recommendations for the 73rd Legislature
  16-14  regarding the development of a state composting program.  In
  16-15  developing these recommendations, the council shall, at a minimum,
  16-16  consider:>
  16-17              <(1)  the development of local yard waste separation
  16-18  programs;>
  16-19              <(2)  the commercial application of composting
  16-20  activities;>
  16-21              <(3)  the potential beneficial uses of compost; and>
  16-22              <(4)  the necessary changes to existing law and
  16-23  regulations required to facilitate conversion of yard waste to
  16-24  compost.>
  16-25        <(b)>  The commission <department> shall put in place
   17-1  incentives for a composting program that is capable of achieving at
   17-2  least a 15 percent reduction in the amount of the municipal solid
   17-3  waste stream that is disposed of in landfills by January 1, 1994.
   17-4        (b)  The commission shall adopt rules establishing minimum
   17-5  standards and guidelines for the issuance of permits for processes
   17-6  or facilities that produce compost that is the product of material
   17-7  from the typical mixed solid waste stream generated by residential,
   17-8  institutional, commercial, or industrial sources.  A reduction in
   17-9  the mixed solid waste stream that occurs as a result of the
  17-10  beneficial reuse of compost produced by a facility permitted under
  17-11  this subsection shall be used in achieving the goal established
  17-12  under Section 361.422.  The minimum standards must include
  17-13  end-product standards and a definition of beneficial reuse.  The
  17-14  commission shall consider regulations issued by the United States
  17-15  Environmental Protection Agency in developing minimum standards.
  17-16  Beneficial reuse does not include landfilling or the use of compost
  17-17  as daily landfill cover.
  17-18        (c)  A composting facility may not accept mixed municipal
  17-19  solid waste from a governmental unit for composting purposes at
  17-20  that facility unless residents have reasonable access to household
  17-21  hazardous waste collection and source-separated recycling programs
  17-22  in the area.  The commission shall establish standards for
  17-23  household hazardous waste collection programs and source-separated
  17-24  recycling programs that qualify under this section.
  17-25        SECTION 1.14.  Section 361.452, Health and Safety Code, is
   18-1  amended to read as follows:
   18-2        Sec. 361.452.  Collection for Recycling.  A person selling
   18-3  lead-acid batteries at retail or offering lead-acid batteries for
   18-4  retail sale in this state shall:
   18-5              (1)  accept from each customer <customers>, if offered,
   18-6  at least one but not more than three <the point of transfer, used>
   18-7  lead-acid batteries for recycling <of the type and in a quantity at
   18-8  least equal to the number of new batteries purchased>; and
   18-9              (2)  post written notice, which must be at least 8-1/2
  18-10  inches by 11 inches in size, containing the universal recycling
  18-11  symbol and the following language:
  18-12                    (A)  "It is illegal to discard or improperly
  18-13  dispose of a motor-vehicle battery or other lead-acid battery.";
  18-14                    (B)  "Recycle your used batteries."; and
  18-15                    (C)  "State law requires us to accept used
  18-16  motor-vehicle batteries or other lead-acid batteries for recycling
  18-17  <in exchange for new batteries purchased>."
  18-18        SECTION 1.15.  Section 361.454, Health and Safety Code, is
  18-19  amended to read as follows:
  18-20        Sec. 361.454.  LEAD-ACID BATTERY WHOLESALERS.  Any person
  18-21  selling new lead-acid batteries at wholesale shall accept from
  18-22  customers, at the point of transfer, used lead-acid batteries for
  18-23  recycling <of the type and in a quantity at least equal to the
  18-24  number of new batteries purchased>, if offered by customers.  A
  18-25  person accepting batteries in transfer from a battery retailer
   19-1  shall remove batteries from the retail point of collection within
   19-2  90 days after acceptance.
   19-3        SECTION 1.16.  Section 63.071, Agriculture Code, is amended
   19-4  by adding Subsection (h) to read as follows:
   19-5        (h)  A person is not required to pay an inspection fee on
   19-6  compost as defined by Section 361.421, Health and Safety Code.
   19-7        SECTION 1.17.  Section 481.295, Government Code, is amended
   19-8  by adding Subsection (c) to read as follows:
   19-9        (c)  The department and the advisory board may make a loan or
  19-10  a loan guarantee to the governing body of an enterprise zone
  19-11  designated as a recycling market development zone under Subchapter
  19-12  AA to fund an activity that sustains or increases recycling
  19-13  efforts.
  19-14        SECTION 1.18.  The Texas Natural Resource Conservation
  19-15  Commission shall adopt the rules required by Subsection (b),
  19-16  Section 361.428, Health and Safety Code, as added by this article,
  19-17  not later than six months after the effective date of this Act.
  19-18             ARTICLE 2.  MUNICIPAL SOLID WASTE MANAGEMENT
  19-19        SECTION 2.01.  The legislature finds that:
  19-20              (1)  the reduction of municipal solid waste by
  19-21  encouraging affordable alternatives to disposal is an important
  19-22  strategy in state-local waste management policy;
  19-23              (2)  improving all the municipal solid waste management
  19-24  techniques is necessary to achieve the goal of reducing the
  19-25  municipal solid waste stream;
   20-1              (3)  waste reduction efforts should focus on waste
   20-2  stream components that are highest in volume;
   20-3              (4)  a municipal solid waste infrastructure that
   20-4  encourages  the reduction of waste through environmentally and
   20-5  economically sound waste management incentives and the use of
   20-6  source reduction, reuse, recycling, composting, and resource
   20-7  recovery processes should be developed;
   20-8              (5)  flexible and effective means of implementing and
   20-9  enforcing municipal solid waste laws should be provided;
  20-10              (6)  incentives for businesses to use recycled
  20-11  materials should be created; and
  20-12              (7)  the actual cost of municipal solid waste disposal
  20-13  should be imposed by municipalities on those that place municipal
  20-14  solid waste in the solid waste stream in order to pay for
  20-15  infrastructure development and to encourage waste reduction from
  20-16  landfills.
  20-17        SECTION 2.02.  Subsections (a), (b), (d), (e), and (f),
  20-18  Section 361.020, Health and Safety Code, are amended to read as
  20-19  follows:
  20-20        (a)  The commission <department> shall develop  a strategic
  20-21  state solid waste plan for all solid waste under its jurisdiction.
  20-22  The commission shall develop a strategic <state solid waste> plan
  20-23  for the reduction of solid waste <under its jurisdiction.  The
  20-24  state agencies shall coordinate the solid waste plans developed>.
  20-25        (b)  A strategic plan shall<, for the kinds of waste under
   21-1  the jurisdiction of the agency preparing the plan,> identify both
   21-2  short-term and long-term waste management problems, set short-term
   21-3  objectives as steps toward meeting long-term goals, and recommend
   21-4  specific actions to be taken within stated <state> times designed
   21-5  to address the identified problems and to achieve the stated
   21-6  objectives and goals.  A plan shall reflect the state's preferred
   21-7  waste management methods as stated in Section 361.022 or 361.023
   21-8  <for the kinds of waste under the jurisdiction of the agency
   21-9  preparing the plan>.  A strategic plan shall describe the total
  21-10  estimated generation of solid waste in the state over a five-year
  21-11  and a 10-year period and shall list existing and proposed solid
  21-12  waste management facilities to manage that waste.
  21-13        (d)  The commission in developing a comprehensive statewide
  21-14  <Each agency in preparing its> strategic plan shall:
  21-15              (1)  consult with:
  21-16                    (A) <(1)>  the agency's waste minimization,
  21-17  recycling, or reduction division;
  21-18                    (B)  the municipal solid waste management and
  21-19  resource recovery advisory council;
  21-20                    (C) <(2)>  the waste reduction advisory
  21-21  committee; <and>
  21-22                    (D) <(3)>  the interagency coordinating council;
  21-23  and
  21-24                    (E)  local governments, appropriate regional and
  21-25  state agencies, businesses, citizen groups, and private waste
   22-1  management firms;
   22-2              (2)  hold public hearings in different regions of the
   22-3  state; and
   22-4              (3)  publish the proposed plan in the Texas Register.
   22-5        (e)  A strategic plan shall be updated every two years.  The
   22-6  commission <Each agency> continually shall collect and analyze data
   22-7  for use in its next updated plan and systematically shall monitor
   22-8  progress toward achieving existing plan objectives and goals.  In
   22-9  preparing its updated plan, an agency shall examine previously and
  22-10  newly identified waste management problems, reevaluate its plan
  22-11  objectives and goals, and review and update its planning documents.
  22-12        (f)  Before the <department or the> commission adopts its
  22-13  strategic plan or makes significant amendments to the plan, the
  22-14  Texas Air Control Board  must have the opportunity to comment and
  22-15  make recommendations on the proposed plan or amendments and shall
  22-16  be given such reasonable time to do so as specified by the agency.
  22-17        SECTION 2.03.  Subchapter B, Chapter 361, Health and Safety
  22-18  Code, is amended by adding Section 361.0201 to read as follows:
  22-19        Sec. 361.0201.  COMPREHENSIVE MUNICIPAL SOLID WASTE
  22-20  MANAGEMENT STRATEGIC PLAN.  (a)  The comprehensive municipal solid
  22-21  waste management strategic plan developed under Section 361.020
  22-22  shall identify the components of the municipal solid waste stream
  22-23  that are highest in volume and shall set priorities according to
  22-24  those findings.
  22-25        (b)  The plan shall:
   23-1              (1)  describe the capacity in the state to manage
   23-2  municipal waste through existing treatment or disposal facilities
   23-3  and identify all existing municipal solid waste management
   23-4  facilities in the state, their capacity, and their projected
   23-5  remaining useful life; and
   23-6              (2)  analyze the state's capacity requirements over the
   23-7  planning periods specified in Section 361.020(c).
   23-8        (c)  The analysis of capacity requirements under Subsection
   23-9  (b) shall:
  23-10              (1)  examine the type and amount of each municipal
  23-11  solid waste stream that can reasonably be expected to be generated
  23-12  in the state or accepted from other states, using information on
  23-13  existing and past levels of waste and representative receipts from
  23-14  other states, and shall include information on the sources,
  23-15  characteristics, and current patterns of waste management of those
  23-16  waste streams; and
  23-17              (2)  estimate the amount of the total municipal solid
  23-18  waste identified under this subsection that is reasonably expected
  23-19  to be:
  23-20                    (A)  recycled annually, according to previous
  23-21  rates and projected increases from those rates;
  23-22                    (B)  transported annually to another state or
  23-23  imported into this state for treatment or other disposition
  23-24  according to previous rates and projected increases from those
  23-25  rates; and
   24-1                    (C)  disposed of or incinerated annually within
   24-2  the state.
   24-3        (d)  The plan shall set a goal for overall reduction in the
   24-4  amount of municipal solid waste  consistent with Section 361.422
   24-5  using 1991 as the base year for computing the reduction.  The
   24-6  commission may adjust this goal if it determines that it is not
   24-7  necessary given the state's disposal capacity, is not economically
   24-8  or technologically feasible, or is not feasible given the state's
   24-9  projected population growth.
  24-10        (e)  The plan shall ensure that source reduction, reuse,
  24-11  recycling, composting, and resource recovery are all addressed.
  24-12        (f)  The plan shall include a program of public education
  24-13  developed under Section 361.0202.
  24-14        (g)  The plan may not allow the commission to require a local
  24-15  government to perform any act not specifically required by state
  24-16  law or commission rule.
  24-17        SECTION 2.04.  Subchapter B, Chapter 361, Health and Safety
  24-18  Code, is amended by adding Section 361.0202 to read as follows:
  24-19        Sec. 361.0202.  DEVELOPMENT OF EDUCATION PROGRAMS.  (a)  The
  24-20  commission shall develop a public awareness program to increase
  24-21  awareness of individual responsibility for properly reducing and
  24-22  disposing of municipal solid waste and to encourage participation
  24-23  in waste source reduction, composting, reuse, and recycling.  The
  24-24  program shall include:
  24-25              (1)  a media campaign to develop and disseminate
   25-1  educational materials designed to establish broad public
   25-2  understanding and compliance with the state's waste reduction and
   25-3  recycling goals; and
   25-4              (2)  a curriculum, developed in cooperation with the
   25-5  commissioner of education and suitable for use in programs from
   25-6  kindergarten through high school, that promotes waste reduction and
   25-7  recycling.
   25-8        (b)  As part of the program, the commission may:
   25-9              (1)  advise and consult with individuals, businesses,
  25-10  and manufacturers on source reduction techniques and recycling; and
  25-11              (2)  sponsor or cosponsor with public and private
  25-12  organizations technical workshops and seminars on source reduction
  25-13  and recycling.
  25-14        SECTION 2.05.  Subchapter B, Chapter 361, Health and Safety
  25-15  Code, is amended by adding Section 361.0219 to read as follows:
  25-16        Sec. 361.0219.  OFFICE OF WASTE EXCHANGE.  (a)  The office of
  25-17  waste exchange is an office of the commission.
  25-18        (b)  The office shall facilitate the exchange of solid waste,
  25-19  recyclable or compostable materials, and other secondary materials
  25-20  among persons that generate, recycle, compost, or reuse those
  25-21  materials, in order to foster greater recycling, composting, and
  25-22  reuse in the state.  At least one party to such an exchange must be
  25-23  in the state.  The office shall provide information to interested
  25-24  persons on arranging exchanges of these materials in order to allow
  25-25  greater recycling, composting, and reuse of the materials, and may
   26-1  act as broker for exchanges of the materials if private brokers are
   26-2  not available.
   26-3        (c)  The office of waste exchange shall adopt a plan for
   26-4  providing to interested persons information on waste exchange and
   26-5  shall report to the legislature on the plan and on the state's
   26-6  participation in any regional or national waste exchange program.
   26-7  Annually the office of waste exchange shall report to the
   26-8  legislature on progress in implementing this section, including
   26-9  information on the movement and exchange of materials and the
  26-10  effect on recycling, composting, and reuse rates in the state.
  26-11        SECTION 2.06.  Section 361.024, Health and Safety Code, is
  26-12  amended by adding Subsection (e) to read as follows:
  26-13        (e)  Rules shall be adopted as provided by the Administrative
  26-14  Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
  26-15  Civil Statutes).  As provided by that Act, the commission must
  26-16  adopt rules when adopting, repealing, or amending any agency
  26-17  statement of general applicability that interprets or prescribes
  26-18  law or policy or describes the procedure or practice requirements
  26-19  of the agency.  The commission shall follow its own rules as
  26-20  adopted until it changes them in accordance with that Act.
  26-21        SECTION 2.07.  Subsection (a), Section 361.034, Health and
  26-22  Safety Code, is amended to read as follows:
  26-23        (a)  The commission shall submit a report to the presiding
  26-24  officers of the legislature and the governor not later than January
  26-25  1 of each odd-numbered year.  The report must include:
   27-1              (1)  a summary of a performance report of the imposed
   27-2  industrial solid waste and hazardous waste fees authorized under
   27-3  Subchapter D  and related activities to determine the
   27-4  appropriateness of the fee structures;
   27-5              (2)  an evaluation of progress made in accomplishing
   27-6  the state's public policy concerning the preference of waste
   27-7  management methods under Section 361.023;
   27-8              (3)  projections of the volume of waste by type of
   27-9  waste, disposition of waste, and remaining capacity or capacity
  27-10  used for the treatment and disposal of the waste; <and>
  27-11              (4)  projections of the availability of adequate
  27-12  capacity in this state for the management of all types of hazardous
  27-13  waste generated within the state and a report of the amounts,
  27-14  types, and sources of hazardous waste imported into and exported
  27-15  from the state in the previous year;
  27-16              (5)  an evaluation of the progress made and activities
  27-17  engaged in consistent with the state's municipal solid waste
  27-18  management plan, in particular the progress toward  meeting the
  27-19  waste reduction goal established by Section 361.0201(d);
  27-20              (6)  an evaluation of the progress made by local
  27-21  governments under the solid waste management plans;
  27-22              (7)  the status of state procurement under Section
  27-23  361.426 of products made of recycled materials or that are
  27-24  reusable, including documentation of any decision not to purchase
  27-25  those products;
   28-1              (8)  the status of the governmental entity recycling
   28-2  program established under Section 361.425, including the status of
   28-3  collection and storage procedures and program evaluations required
   28-4  by that section;
   28-5              (9)  the status of the public education program
   28-6  described in Section 361.0202; and
   28-7              (10)  recommendations to the governor and to the
   28-8  legislature for improving the management of municipal solid waste
   28-9  in the state.
  28-10        SECTION 2.08.  Section 361.111, Health and Safety Code, is
  28-11  amended to read as follows:
  28-12        Sec. 361.111.  COMMISSION SHALL <DEPARTMENT MAY> EXEMPT
  28-13  CERTAIN MUNICIPAL SOLID WASTE MANAGEMENT FACILITIES.  (a)  The
  28-14  commission shall <department may> exempt from permit requirements a
  28-15  municipal solid waste management facility that<:>
  28-16              <(1)>  is used in the transfer of municipal solid waste
  28-17  to a solid waste processing or disposal facility from:
  28-18              (1)  a municipality <service area> with a population of
  28-19  less than 50,000;
  28-20              (2)  a county with a population of less than 85,000;
  28-21              (3)  a facility used in the transfer of municipal solid
  28-22  waste that transfers or will transfer 125 tons a day or less; or
  28-23              (4)  a materials recovery facility that recycles for
  28-24  reuse more than 10 percent of its incoming nonsegregated waste
  28-25  stream if the remaining nonrecyclable waste is transferred to a
   29-1  permitted Type I landfill not farther than 50 miles from the
   29-2  materials recovery facility.
   29-3        (b)  The facility shall comply <5,000 to a solid waste
   29-4  processing or disposal site; and>
   29-5              <(2)  complies> with design and operational
   29-6  requirements established by commission <board of health> rule that
   29-7  are necessary to protect the public's health and the environment.
   29-8        (c)  To qualify for an exemption under this section, an
   29-9  applicant must hold a public meeting about the siting of the
  29-10  facility in the municipality or county in which the facility is or
  29-11  will be located.
  29-12        SECTION 2.09.  Section 363.062, Health and Safety Code, is
  29-13  amended by adding a new Subsection (d) and relettering existing
  29-14  Subsections (d) and (e) to read as follows:
  29-15        (d)  In each even-numbered year on the anniversary of the
  29-16  adoption of a municipal solid waste management plan, each planning
  29-17  region shall report to the department on the progress of the
  29-18  region's municipal solid waste management program and recycling
  29-19  activities developed under this section.  The department may not
  29-20  require a planning region to submit to the department information
  29-21  previously submitted to the department by the planning region in an
  29-22  earlier plan or report.
  29-23        (e)  If the department determines that a regional solid waste
  29-24  management plan does not conform to the requirements adopted by the
  29-25  board, the department shall give written notice to the planning
   30-1  region of each aspect of the plan that must be changed to conform
   30-2  to board requirements.  After the changes have been made in the
   30-3  plan as provided by the department, the department shall submit the
   30-4  plan to the board for approval.
   30-5        (f) <(e)>  The board by rule shall adopt an approved regional
   30-6  solid waste management plan.
   30-7        SECTION 2.10.  Section 363.063, Health and Safety Code, is
   30-8  amended by adding a new Subsection (d) and relettering existing
   30-9  Subsections (d) and (e) to read as follows:
  30-10        (d)  In each even-numbered year on the anniversary of the
  30-11  adoption of a municipal solid waste management plan, each local
  30-12  government shall report to the department on the progress of its
  30-13  municipal solid waste management program and recycling activities
  30-14  implemented under this section.  The department may not require a
  30-15  local government to submit to the planning region or to the
  30-16  department information previously submitted to the planning region
  30-17  or department by the local government in an earlier plan or report.
  30-18        (e)  If the department determines that a local solid waste
  30-19  management plan does not conform to the requirements adopted by the
  30-20  board, the department shall give written notice to the local
  30-21  government of each aspect of the plan that must be changed to
  30-22  conform to board requirements.  After changes are made in the plan
  30-23  as requested by the department, the department shall submit the
  30-24  plan to the board for approval.
  30-25        (f) <(e)>  The board by rule shall adopt an approved local
   31-1  solid waste  management plan.
   31-2        SECTION 2.11.  Section 363.064, Health and Safety Code, is
   31-3  amended to read as follows:
   31-4        Sec. 363.064.  Contents of Regional or Local Solid Waste
   31-5  Management Plan.  A regional or local solid waste management plan
   31-6  must:
   31-7              (1)  include a description and an assessment of current
   31-8  efforts in the geographic area covered by the plan to minimize
   31-9  production of municipal solid waste, including sludge, and efforts
  31-10  to reuse or recycle waste;
  31-11              (2)  identify additional opportunities for waste
  31-12  minimization and waste reuse or recycling;
  31-13              (3)  include a description and assessment of existing
  31-14  or proposed community programs for the collection of household
  31-15  hazardous waste;
  31-16              (4)  make recommendations for encouraging and achieving
  31-17  a greater degree of waste minimization and waste reuse or recycling
  31-18  in the geographic area covered by the plan;
  31-19              (5)  encourage cooperative efforts between local
  31-20  governments and private industry in the siting of landfills for the
  31-21  disposal of solid waste;
  31-22              (6)  consider the need to transport waste between
  31-23  municipalities, from a municipality to an area in the jurisdiction
  31-24  of a county, or between counties, particularly if a technically
  31-25  suitable site for a landfill does not exist in a particular area;
   32-1  <and>
   32-2              (7)  allow a local government to justify the need for a
   32-3  landfill in its jurisdiction to dispose of the solid waste
   32-4  generated in the jurisdiction of another local government that does
   32-5  not have a technically suitable site for a landfill in its
   32-6  jurisdiction;<.>
   32-7              (8) <(7)>  establish recycling rate goals appropriate
   32-8  to the area covered by the plan; <and>
   32-9              (9) <(8)>  recommend composting programs for yard waste
  32-10  and related organic wastes that may include:
  32-11                    (A)  creation and use of community composting
  32-12  centers;
  32-13                    (B)  adoption of the "Don't Bag It" program for
  32-14  lawn clippings developed by the Texas Agricultural Extension
  32-15  Service; and
  32-16                    (C)  development and promotion of education
  32-17  programs on home composting, community composting, and the
  32-18  separation of yard waste for use as mulch;
  32-19              (10)  assess the need for new waste disposal capacity;
  32-20              (11)  include a public education program; and
  32-21              (12)  include waste reduction in accordance with the
  32-22  goal established under Section 361.0201(d), to the extent that
  32-23  funds are available.
  32-24        SECTION 2.12.  The office of waste exchange created by
  32-25  Section 361.0219, Health and Safety Code, as added by this article,
   33-1  shall adopt the plan required by that section not later than
   33-2  September 1, 1994.
   33-3        SECTION 2.13.  The change in law made by Section 361.024,
   33-4  Health and Safety Code, as amended by this article, applies to
   33-5  rules in effect on or adopted on or after the effective date of
   33-6  this Act.
   33-7                      ARTICLE 3.  TIRE RECYCLING
   33-8        SECTION 3.01.  Sections 361.471 and 361.472, Health and
   33-9  Safety Code, are amended to read as follows:
  33-10        Sec. 361.471.  Definitions.  In this subchapter:
  33-11              (1)  "Fund" means the waste tire recycling fund.
  33-12              (2)  "Green tire" means the casing form of a tire that
  33-13  has not been cured or does not have a tread or marking of any kind.
  33-14              (3)  "Manufacturer reject tire" means a tire rendered
  33-15  defective in the manufacturing process, whether the tire is
  33-16  determined to be defective before or after consumer purchase.
  33-17              (4)  "Mobile tire shredder" means equipment mounted on
  33-18  wheels or skid-mounted and hauled from place to place to split,
  33-19  shred, or quarter used or scrap tires.
  33-20              (5) <(3)>  "Scrap tire" has the meaning assigned by
  33-21  Section 361.112.
  33-22              (6) <(4)>  "Waste tire facility" means a facility
  33-23  registered <permitted> by the commission <department> under Section
  33-24  361.477 <361.112> at which scrap tires are collected <or deposited>
  33-25  and shredded to facilitate the future extraction of useful
   34-1  materials for recycling, reuse, or energy recovery and are stored
   34-2  in a waste tire storage facility or a facility that recycles,
   34-3  reuses, or recovers the energy from the shredded tire pieces.
   34-4              (7) <(5)>  "Waste tire processor" means:
   34-5                    (A)  a waste tire facility; or
   34-6                    (B)  a mobile tire shredder that splits, shreds,
   34-7  or quarters tires and deposits the split, shredded, or quartered
   34-8  tires for eventual recycling, reuse, or energy recovery at:
   34-9                          (i)  a waste tire storage facility
  34-10  registered by the commission <department> under Section 361.112; or
  34-11                          (ii)  a waste tire facility.
  34-12              (8)  "Waste tire storage facility" means a facility
  34-13  registered by the commission under Section 361.477 at which whole
  34-14  used or scrap tires or shredded tire pieces are collected and
  34-15  stored to facilitate the future extraction of useful material for
  34-16  recycling, reuse, or recovery.  The term does not include a marine
  34-17  dock, rail yard, or trucking facility used to store tires that are
  34-18  awaiting shipment to a person for recycling, reuse, or energy
  34-19  recovery for 30 days or less.
  34-20              (9) <(6)>  "Waste tire transporter" means a person who
  34-21  collects and transports used or scrap tires or scrap tire pieces
  34-22  for storage or disposal.
  34-23              (10) <(7)>  "Weighed tire" means a unit of weight for
  34-24  shredded scrap tires that is equal to 18.7 pounds.
  34-25        Sec. 361.472.  Waste Tire Recycling Fees.  (a)  A wholesale
   35-1  or retail tire dealer who sells or offers to sell new tires not for
   35-2  resale shall collect at the time and place of sale a waste tire
   35-3  recycling fee <of $2> for each new <automobile, van, bus, truck,
   35-4  trailer, semitrailer, truck tractor and semitrailer combination, or
   35-5  recreational vehicle> tire sold as follows:
   35-6              (1)  $2 for each tire that has a rim diameter of <equal
   35-7  to or greater than> 12 inches but less than 17.5 <26> inches;
   35-8              (2)  $3.50 for each tire that has a rim diameter of
   35-9  17.5 inches but less than 25 inches; and
  35-10              (3)  $2 for a motorcycle tire, regardless of the rim
  35-11  diameter.
  35-12        (b)  The sale of a tire as original equipment in the
  35-13  manufacture of a new vehicle is a sale for resale.
  35-14        (c)  A fee may not be assessed for a bicycle tire.
  35-15        (d)  <A dealer required to collect a fee under this section
  35-16  may retain 2 1/2  cents from each fee the dealer collects.  A
  35-17  dealer shall account for amounts retained under this subsection in
  35-18  the manner prescribed by the comptroller.>
  35-19        <(c)>  A dealer required to collect a fee under this section:
  35-20              (1)  shall list as a separate item on an invoice a fee
  35-21  due under this section; and
  35-22              (2)  except as provided by Subsection (e) <(d)>, on or
  35-23  before the 20th day of the month following the end of each calendar
  35-24  month and on a form and in the manner prescribed by the
  35-25  comptroller, shall file a report with and shall remit to the
   36-1  comptroller the amount of fees collected during the preceding
   36-2  calendar month.
   36-3        (e) <(d)>  A person required to collect a fee under this
   36-4  section who collects less than $50 for a calendar month or less
   36-5  than $150 for a calendar quarter is not required to file a monthly
   36-6  report but shall file a quarterly report with and make a quarterly
   36-7  remittance to the comptroller.  The quarterly report and remittance
   36-8  shall include fees collected during the preceding calendar quarter.
   36-9  The report and remittance are due not later than the 20th day of
  36-10  the month following the end of the calendar quarter.
  36-11        (f) <(e)>  An invoice or other record required by this
  36-12  section or rules of the comptroller must be maintained for at least
  36-13  four years after the date on which the invoice or record is
  36-14  prepared and be open for inspection by the comptroller at all
  36-15  reasonable times.
  36-16        (g) <(f)>  The comptroller shall adopt rules necessary for
  36-17  the administration, collection, reporting, and payment of the fees
  36-18  payable or collected under this section.
  36-19        (h)  A waste tire recycling fee is imposed on the storage,
  36-20  use, or consumption in this state of a new tire at the same rate as
  36-21  provided by Subsection (a), except when purchased for the purpose
  36-22  of resale.
  36-23        (i)  A person storing, using, or consuming a new tire in this
  36-24  state is liable for the waste tire recycling fee as defined in this
  36-25  section and is responsible for reporting and paying the fee to the
   37-1  comptroller in the same manner as a person required to collect this
   37-2  fee, as provided in Subsections (d)(2) and (e).
   37-3        (j)  A person storing, using, or consuming a new tire in this
   37-4  state is not further liable for the waste tire recycling fee
   37-5  imposed by Subsection (a) if the person pays the fee to a
   37-6  wholesaler or retailer engaged in business in this state or another
   37-7  person authorized by the comptroller to collect the fee and
   37-8  receives from the wholesaler, retailer, or other person a
   37-9  purchaser's receipt.
  37-10        SECTION 3.02.  Subchapter P, Chapter 361, Health and Safety
  37-11  Code, is amended by adding Section 361.4725 to read as follows:
  37-12        Sec. 361.4725.  REGISTRATION; FEE.  A person who applies to
  37-13  the commission to register a waste tire storage facility or a fixed
  37-14  or mobile tire processor, or to renew or amend the registration,
  37-15  must pay a fee of $500.
  37-16        SECTION 3.03.  Sections 361.475, 361.476, and 361.477, Health
  37-17  and Safety Code, are amended to read as follows:
  37-18        Sec. 361.475.  Waste Tire Recycling Fund.  (a)  The waste
  37-19  tire recycling fund is a special account in the general revenue
  37-20  fund.
  37-21        (b)  The commission <department> shall administer the fund.
  37-22        (c)  The fund consists of fees and penalties collected under
  37-23  this subchapter, interest on money in the fund, and money from
  37-24  gifts, grants, or any other source intended to be used for the
  37-25  purposes of this subchapter.
   38-1        (d)  The fund may be used only to pay:
   38-2              (1)  waste tire processors that meet the requirements
   38-3  for payment under Section 361.477 and rules adopted under that
   38-4  section;
   38-5              (2)  the commission's <department's> reasonable and
   38-6  necessary administrative costs of performing its duties under this
   38-7  subchapter in an amount not to exceed six percent of the money
   38-8  annually accruing to the fund; and
   38-9              (3)  the comptroller's reasonable and necessary
  38-10  administrative costs of performing the comptroller's duties under
  38-11  this subchapter in an amount not to exceed two percent of the money
  38-12  annually accruing to the fund.
  38-13        (e)  Registration fees received under Section 361.4725 shall
  38-14  be allocated to the commission for its reasonable and necessary
  38-15  costs associated with reviewing applications for registration of
  38-16  and with registering fixed and mobile tire processing facilities
  38-17  and storage sites.
  38-18        (f)  The fund may not be used to reimburse shredding of:
  38-19              (1)  innertubes;
  38-20              (2)  scrap rubber products;
  38-21              (3)  green tires;
  38-22              (4)  industrial solid waste, excluding waste tires;
  38-23              (5)  oversized tires, as defined by commission rule,
  38-24  unless the oversized tires are collected from a priority
  38-25  enforcement list site; or
   39-1              (6)  manufacturer reject tires.
   39-2        (g)  The commission may classify special authorization tires,
   39-3  as defined by commission rule, as priority enforcement list tires.
   39-4        (h)  The fund shall maintain a balance of not less than
   39-5  $500,000.
   39-6        (i)  If the commission has reason to believe that the fund
   39-7  balance will fall below $500,000, the commission may:
   39-8              (1)  suspend the requirement to reimburse priority
   39-9  enforcement list tires shredded in excess of the minimum percentage
  39-10  identified in Section 361.477(c)(3)(C); or
  39-11              (2)  limit the number of waste tires for which a
  39-12  processor will be reimbursed.
  39-13        (j)  The revenues obtained from the waste tire recycling fees
  39-14  shall be deposited to the credit of the waste tire recycling fund
  39-15  and may be used only to pay for those activities and costs
  39-16  identified in Subsection (d) or (e).
  39-17        Sec. 361.476.  Priority Enforcement List.  The commission
  39-18  <department> shall identify scrap <unauthorized> tire sites <dumps>
  39-19  that present an existing or potential threat to public health and
  39-20  safety or to the environment and shall prepare an enforcement list
  39-21  of those sites <dumps>, giving priority to sites <dumps> for which
  39-22  the commission cannot locate a person who:
  39-23              (1)  is the property owner of record, the site
  39-24  operator, or the depositor of the scrap tires on the site;
  39-25              (2)  has benefitted financially from the disposition of
   40-1  the scrap tires on the site; and
   40-2              (3)  is financially capable of paying all or part of
   40-3  the total or partial cleanup of the site, considering the costs of
   40-4  the cleanup as the commission determines <a responsible party
   40-5  cannot be located>.
   40-6        Sec. 361.477.  Payments to Waste Tire Processors.  (a)  The
   40-7  commission <department> each month shall pay a waste tire processor
   40-8  that shreds scrap tires and meets the requirements of this section
   40-9  and rules adopted under this section an amount equal to 85 cents
  40-10  for each weighed tire shredded by the processor during the
  40-11  preceding calendar month.
  40-12        (b)  If the total number of used or scrap tires or tire
  40-13  pieces contained in illegal scrap tire sites that are identified on
  40-14  the priority enforcement list is below 500,000 tires, the
  40-15  commission may pay more than 85 cents for each weighed tire to
  40-16  processors with whom the commission has contracted to remove and
  40-17  shred scrap tires and scrap tire pieces from priority enforcement
  40-18  list sites.  The 500,000 tire limit does not include those tires
  40-19  contained in sites under commission enforcement or attorney general
  40-20  action or that require corrective action or remedial action in
  40-21  response to a release or threat of release of hazardous substances.
  40-22  In acting under this subsection, the commission may contract with
  40-23  processors on a regional or site-specific basis.  The contracts
  40-24  shall be procured through a competitive bid process conducted in
  40-25  accordance with the provisions of the State Purchasing and General
   41-1  Services Act (Article 601b, Vernon's Texas Civil Statutes)
   41-2  applicable to contracts for services.  The commission may elect not
   41-3  to enter into contracts under this subsection.  The contracts may
   41-4  be only for the removal and shredding of tires from priority
   41-5  enforcement list sites.
   41-6        (c)  A waste tire processor that desires to receive payment
   41-7  under this section for tires shredded by the processor during a
   41-8  calendar month must:
   41-9              (1)  apply to the commission for registration
  41-10  <department> in accordance with forms prescribed by the commission
  41-11  <department>;
  41-12              (2)  apply to the commission for payment on forms
  41-13  prescribed by the commission or, on a voluntary basis, apply by a
  41-14  removable storage medium stored in an industry standard file format
  41-15  acceptable to the commission;
  41-16              (3)  demonstrate as required by rules adopted under
  41-17  this section that:
  41-18                    (A)  all tires for which payment is sought have
  41-19  been shredded to a particle size not larger than nine square
  41-20  inches; <and>
  41-21                    (B)  not less than 25 percent of those tires were
  41-22  collected from generators; and
  41-23                    (C)  if the total number of used or scrap tires
  41-24  or tire pieces contained in illegal waste tire sites that are
  41-25  identified on the priority enforcement list exceeds 500,000 tires
   42-1  for more than 30 consecutive days, not less than 15 <25> percent
   42-2  and not more than 30 percent of those tires were collected from
   42-3  scrap tire sites <dumps> listed on the <department's> priority
   42-4  enforcement list;
   42-5              (4) <(3)>  provide any other information the commission
   42-6  <department> determines is needed to accomplish the purposes of
   42-7  this subchapter, including a monthly report of scrap tires or tire
   42-8  pieces shredded, subtotaled by tire count or weight, for each
   42-9  generator number and priority enforcement list number; <and>
  42-10              (5) <(4)>  demonstrate that energy recovery activities
  42-11  in the state are in compliance with applicable air emission control
  42-12  rules and standards as adopted by the Texas Air Control Board; and
  42-13              (6)  provide financial assurance deemed adequate by the
  42-14  commission that corresponds to:
  42-15                    (A)  the payment appropriate for the number of
  42-16  scrap tires the processor anticipates shredding in the next
  42-17  calendar month; or
  42-18                    (B)  the number of scrap tires the waste tire
  42-19  storage site owner or operator anticipates accepting for storage in
  42-20  the next calendar month.
  42-21        (d) <(c)>  A waste tire processor that in any month exceeds
  42-22  the <25 percent> minimum requirement of Subsection (c)(3)(C)
  42-23  <(b)(2)> shall receive a credit for the amount in excess of the
  42-24  requirement <25 percent> that may be used to meet the minimum
  42-25  requirement during a later month.  The commission <board of health>
   43-1  by rule may prescribe the method of applying credits accrued under
   43-2  this subsection.
   43-3        (e) <(d)>  The commission <board of health> by rule shall
   43-4  adopt application and payment procedures and requirements to
   43-5  implement this section.
   43-6        (f)  Until the commission has determined that a waste tire
   43-7  processor is in compliance with all applicable requirements, the
   43-8  commission may not authorize the processor to process or store
   43-9  scrap tires at a site at which the processor processes or stores or
  43-10  intends to process or store scrap tires.
  43-11        (g)  Notwithstanding Section 361.486, the commission may
  43-12  reimburse a processor for shredded scrap tires if the processor has
  43-13  a binding agreement to deliver the shredded scrap tires to a person
  43-14  to recycle or reuse or to use for energy recovery within 180 days
  43-15  after the date of reimbursement.
  43-16        (h)  The commission may not pay a waste tire processor for
  43-17  processing scrap tires if the commission determines that the
  43-18  processor:
  43-19              (1)  has not provided adequate financial assurance;
  43-20              (2)  does not have adequate fire protection; or
  43-21              (3)  is causing an imminent danger to public health or
  43-22  welfare.
  43-23        (i)  The commission shall issue to an applicant all
  43-24  processing and storage registrations necessary to begin operations
  43-25  and obtain reimbursement from the fund if the applicant, on or
   44-1  before March 10, 1993:
   44-2              (1)  had an application pending for a new processing
   44-3  facility that was reviewed by the commission and found to be in
   44-4  general technical compliance;
   44-5              (2)  had an application pending for a new storage
   44-6  facility with a total capacity in excess of 7 million waste tire
   44-7  units; and
   44-8              (3)  had expended or committed in excess of $1 million
   44-9  in total project costs.
  44-10        (j)  The commission shall adopt rules to manage payments from
  44-11  the fund to prevent depletion of the fund.  Rules adopted under
  44-12  this subsection shall consider:
  44-13              (1)  appropriate payments to reflect the varying
  44-14  amounts of money available in the fund;
  44-15              (2)  a waste tire processor's monthly average number of
  44-16  tires for which the processor has been reimbursed historically;
  44-17              (3)  a waste tire processor's shredding and storage
  44-18  capacity; and
  44-19              (4)  the date the waste tire processor was registered.
  44-20        (k)  If a waste tire processor does not fully use its monthly
  44-21  allocation for reimbursement, the commission may assign the unused
  44-22  portion of the allocation to another waste tire processor who can
  44-23  demonstrate having underutilized shredding and storage capacity
  44-24  available for service to rural counties in this state.
  44-25        (l)  A person receiving payment from the fund may only
   45-1  receive more than 85 cents per waste tire unit under Subsection
   45-2  (b).
   45-3        <(e)  A permitted Type VIII tire monofill approved under
   45-4  board of health rules may qualify as a waste tire processor and is
   45-5  eligible to receive payment under this section if the Type VIII
   45-6  tire monofill complies with all the provisions of this subchapter
   45-7  and rules of the board of health.>
   45-8        SECTION 3.04.  Subchapter P, Chapter 361, Health and Safety
   45-9  Code, is amended by adding Sections 361.4771, 361.4772, and
  45-10  361.4773 to read as follows:
  45-11        Sec. 361.4771.  PAYMENT FOR SHREDDING OUTSIDE OF STATE.
  45-12  Effective September 1, 1994, the commission may reimburse a
  45-13  registered waste tire processor for shredding tires generated in
  45-14  this state and shredded outside this state if the processor:
  45-15              (1)  meets all requirements that apply to a waste tire
  45-16  processor who shreds tires within this state;
  45-17              (2)  monthly reimburses the state for reasonable and
  45-18  necessary costs incurred by an agency of the state for such related
  45-19  to the out-of-state facility regulatory activities as are deemed
  45-20  necessary by such agency;
  45-21              (3)  voluntarily submits to the commission's
  45-22  enforcement authority as necessary to ensure compliance with this
  45-23  subchapter; and
  45-24              (4)  agrees to maintain evidence of financial
  45-25  responsibility under Section 361.479 in an amount equal to twice
   46-1  the amount that would be required of an in-state waste tire
   46-2  processor.
   46-3        Sec. 361.4772.  PAYMENT FOR BALING TIRES.  Effective March 1,
   46-4  1994, a registered waste tire processor who bales whole tires for
   46-5  energy recovery purposes is eligible for reimbursement at a rate of
   46-6  25 cents for each tire if the processor meets the requirements of
   46-7  this subchapter that apply to a waste tire processor including
   46-8  provisions for financial assurance for such baled tires.  The
   46-9  commission shall adopt rules to determine the amount of financial
  46-10  assurance required under this section to apply to baled tires or
  46-11  whole tires stored for baling.  A processor seeking reimbursement
  46-12  under this section for baling tires may not, directly or
  46-13  indirectly, receive additional reimbursement from the fund for the
  46-14  shredding of such baled tires.
  46-15        Sec. 361.4773.  PAYMENT FOR RECYCLING TIRES INTO PRODUCT.
  46-16  The commission by rule may establish a program to reimburse from
  46-17  the fund a waste tire recycler no more than 25 cents for each
  46-18  weighed tire the waste tire recycler processes to make useful
  46-19  products.
  46-20        SECTION 3.05.  Sections 361.478 and 361.479, Health and
  46-21  Safety Code, are amended to read as follows:
  46-22        Sec. 361.478.  Evaluation of Recycling and Energy Recovery
  46-23  Activities; Certification for Payment.  (a)  Beginning January 1,
  46-24  1996 <June 1, 1995>, and every two <five> years after that date,
  46-25  the commission <department> shall evaluate according to standards
   47-1  adopted by commission <board of health> rule the recycling and
   47-2  energy recovery activities of each waste tire processor that
   47-3  received payment from the waste tire recycling fund <under Section
   47-4  361.477 during the preceding five years>.
   47-5        (b)  After evaluation, the commission <department> shall
   47-6  certify as eligible for payment under this subchapter <Section
   47-7  361.477> during the next two <five> years a waste tire processor
   47-8  that has conducted or provided for recycling of or energy recovery
   47-9  from tires for which the processor received payment during the
  47-10  preceding period of operation <five years>.
  47-11        (c)  A waste tire processor that receives payment under this
  47-12  subchapter <Section 361.477> during any two-year <five-year> period
  47-13  and that after evaluation is not certified by the commission
  47-14  <department> under Subsection (b) as eligible for payment under
  47-15  this subchapter <Section 361.477> may not receive payment under
  47-16  this subchapter <that section> for the next two <five> years.
  47-17        (d)  The commission <board of health> by rule may establish a
  47-18  procedure by which a waste tire processor can reestablish
  47-19  eligibility for payment under this subchapter <Section 361.477>.
  47-20        Sec. 361.479.  Evidence of Financial Responsibility.  (a)  A
  47-21  waste tire storage facility registered by the commission
  47-22  <department> under Section 361.112 or a waste tire facility that
  47-23  accepts shredded scrap tires for storage or for processing for
  47-24  recycling, reuse, or energy recovery shall submit to the commission
  47-25  <department> evidence of financial responsibility in an amount
   48-1  adequate to assure proper cleanup and <or> closure of the facility.
   48-2        (b)  A facility subject to Subsection (a) shall submit to the
   48-3  commission <department> an estimate of the total amount of shredded
   48-4  scrap tires and tire pieces measured by weighed tire that the
   48-5  facility will store or process, the maximum number of out-of-state
   48-6  tires the facility will store, and the estimated cost, using that
   48-7  total amount, of cleaning up and <or> closing the facility.
   48-8        (c)  The commission <department> shall evaluate and may amend
   48-9  an estimate submitted under Subsection (b) and <by order> shall
  48-10  determine for each facility the amount for which evidence of
  48-11  financial responsibility is required.
  48-12        (d)  Evidence of financial responsibility may be in the form
  48-13  of:
  48-14              (1)  a performance bond or<,> a letter of credit
  48-15  acceptable to the commission that is from a <recognized> financial
  48-16  institution, a trust fund, or insurance for a privately owned
  48-17  facility; or
  48-18              (2)  a self-insurance test designed by the commission<,
  48-19  or a resolution by the commissioners court or the city council, as
  48-20  appropriate,> for a publicly owned facility.  A person who makes an
  48-21  initial request for reimbursement from the waste tire recycling
  48-22  fund on or after September 1, 1993, must provide evidence of
  48-23  financial responsibility for the full amount determined under
  48-24  Subsection (c).
  48-25        SECTION 3.06.  Sections 361.482 and 361.483, Health and
   49-1  Safety Code, are amended to read as follows:
   49-2        Sec. 361.482.  Prohibition on Disposal of Shredded Tires in
   49-3  Landfill.  A waste tire processor may not dispose of shredded scrap
   49-4  tires in a landfill if the processor has received payment under
   49-5  Section 361.477 for shredding the tires.
   49-6        Sec. 361.483.  Civil Penalty.  (a)  A person who violates
   49-7  this subchapter or a rule adopted or order issued under this
   49-8  subchapter <Section 361.481 or 361.482> is liable for a civil
   49-9  penalty of up to $10,000 for each violation and for each day of a
  49-10  continuing violation.
  49-11        (b)  The attorney general or the prosecuting attorney in the
  49-12  county in which the alleged violation occurs may bring suit to
  49-13  recover the civil penalty imposed under Subsection (a).
  49-14        (c)  A penalty collected under this section shall be
  49-15  deposited to the credit of the waste tire recycling fund.
  49-16        SECTION 3.07.  Subchapter P, Chapter 361, Health and Safety
  49-17  Code, is amended by adding Sections 361.4831 and 361.4832 to read
  49-18  as follows:
  49-19        Sec. 361.4831.  INJUNCTION FOR CORRECTIVE ACTION.  (a)  The
  49-20  attorney general or the prosecuting attorney in a county in which
  49-21  the violation occurs may bring suit for an injunction to compel a
  49-22  person who violates this subchapter or a rule adopted or order
  49-23  issued under this subchapter to take corrective action.
  49-24        (b)  The suit may be brought independently of or in
  49-25  conjunction with a suit under Section 382.483.
   50-1        Sec. 361.4832.  ADMINISTRATIVE PENALTY AND ORDER FOR
   50-2  CORRECTIVE ACTION.  If a person violates this subchapter or a rule
   50-3  adopted or order issued under this subchapter the commission may:
   50-4              (1)  assess against the person an administrative
   50-5  penalty under Section 361.252; or
   50-6              (2)  order the person to take a corrective action.
   50-7        SECTION 3.08.  Sections 361.484 and 361.485, Health and
   50-8  Safety Code, are amended to read as follows:
   50-9        Sec. 361.484.  Rules.  The commission <board of health> may
  50-10  adopt rules reasonably necessary to implement this subchapter.
  50-11        Sec. 361.485.  Report.  Not later than February 1 of each
  50-12  odd-numbered year, the commission <department> shall report to the
  50-13  governor and the legislature on the administration of the program
  50-14  established under this subchapter and its effectiveness in cleaning
  50-15  up existing scrap tire sites <dumps> and in preventing new scrap
  50-16  tire sites <dumps>.
  50-17        SECTION 3.09.  Subchapter P, Chapter 361, Health and Safety
  50-18  Code, is amended by adding Sections 361.486 through 361.495 to read
  50-19  as follows:
  50-20        Sec. 361.486.  RECYCLING EFFORTS.  (a)  On and after January
  50-21  1, 1996, for all new, amended, and renewal processing registration
  50-22  applications, the processor must identify those persons who will
  50-23  accept the processor's shredded scrap tire pieces for recycling or
  50-24  reuse or to use the shredded scrap tires for energy recovery.  The
  50-25  commission shall reimburse a processor for only those shredded
   51-1  tires that the commission determines are committed to a legitimate
   51-2  end user.
   51-3        (b)  The commission may disapprove of the use a person
   51-4  identified by the processor has for the tire pieces unless the
   51-5  person identified is authorized by the state to use tire-derived
   51-6  fuel for energy recovery.
   51-7        (c)  The commission by rule shall define recycling for
   51-8  purposes of this subchapter.
   51-9        (d)  On or before January 1, 1994, and on a semiannual basis
  51-10  thereafter, registered processors and storage site owners and
  51-11  operators shall report their recycling, reuse, and energy recovery
  51-12  activities to the commission.  The commission by rule shall
  51-13  prescribe the form and other requirements of the report.
  51-14        (e)  A person who, in this state, recycles or recovers the
  51-15  energy from shredded tire pieces shall register with the commission
  51-16  in accordance with the rules and on the forms prescribed by the
  51-17  commission.
  51-18        Sec. 361.487.  REIMBURSEMENT RESTRICTIONS.  (a)  A processor
  51-19  seeking reimbursement under Section 361.477 shall process and store
  51-20  the scrap tires or scrap tire pieces in the state.
  51-21        (b)  The commission shall treat scrap tires and scrap tire
  51-22  pieces generated in Texas, removed from Texas, and subsequently
  51-23  reintroduced to Texas as out-of-state scrap tires for the purposes
  51-24  of this subchapter.
  51-25        (c)  Scrap tires and scrap tire pieces that are shredded and
   52-1  for which a person is reimbursed may not be disposed of in a Type
   52-2  VIII-S tire monofill.
   52-3        Sec. 361.488.  GENERATOR CHARGE FOR SCRAP TIRES PROHIBITED.
   52-4  A scrap tire generator may not receive remuneration in exchange for
   52-5  scrap tires.
   52-6        Sec. 361.489.  IMMEDIATE REMOVAL AND REMEDIAL ACTION BY
   52-7  COMMISSION.  (a)  The commission may, with the funds available to
   52-8  the commission from the waste tire recycling fund, undertake
   52-9  immediate remediation of a site if, after investigation, the
  52-10  commission finds:
  52-11              (1)  that there exists a situation caused by the
  52-12  illegal dumping of scrap tires that is causing or may cause
  52-13  imminent and substantial endangerment to the public health and
  52-14  safety or the environment; and
  52-15              (2)  the immediacy of the situation makes it
  52-16  prejudicial to the public interest to delay action until an
  52-17  administrative order can be issued to potentially responsible
  52-18  parties or until a judgment can be entered in an appeal of an
  52-19  administrative order.
  52-20        (b)  If a person ordered to eliminate an imminent and
  52-21  substantial danger to the public health and safety or the
  52-22  environment has failed to do so within the time limits specified in
  52-23  the order or any extension of time approved by the commission, the
  52-24  commission may implement a remedial program for the site.
  52-25        (c)  The commission may bring suit against a potentially
   53-1  responsible party to recover reasonable expenses incurred in
   53-2  undertaking immediate removal under Subsection (a) or in
   53-3  implementing a remedial action order under Subsection (b).  For
   53-4  purposes of this subsection, the commission shall employ the
   53-5  following three criteria to determine whether a person is a
   53-6  potentially responsible party:
   53-7              (1)  the person must be the property owner of record,
   53-8  the site operator, or the depositor of the scrap tires on the site;
   53-9              (2)  the person must have benefitted financially from
  53-10  the disposition of the scrap tires on the site; and
  53-11              (3)  the person must be financially capable of paying
  53-12  all or part of the costs of the total or partial cleanup of the
  53-13  site, considering the costs of the cleanup as determined by the
  53-14  commission.
  53-15        (d)  The commission shall file the suit to recover costs not
  53-16  later than one year after the date removal or remedial measures are
  53-17  completed.
  53-18        (e)  Money collected in a suit to recover costs shall be
  53-19  deposited to the credit of the waste tire recycling fund.
  53-20        (f)  The commission, in lieu of bringing suit to recover
  53-21  costs incurred under this section, may file a lien against the
  53-22  property on which the site is located.  The lien shall state the
  53-23  name of the owner of the property, the amount owed, and the legal
  53-24  description of the property.  The lien arises and attaches on the
  53-25  date the lien is filed in the real property records of the county
   54-1  in which the property is located.  The lien is subordinate to the
   54-2  rights of prior bona fide purchasers or lienholders on the
   54-3  property.
   54-4        Sec. 361.490.  ACCESS TO PRIORITY ENFORCEMENT LIST SITE.
   54-5  (a)  Members of the commission, employees or agents of the
   54-6  commission, and authorized processors or their subcontractors are
   54-7  entitled to enter any public or private property at any reasonable
   54-8  time for the purpose of inspecting, investigating, or remediating
   54-9  any condition related to illegal dumping of scrap tires.  An
  54-10  authorized processor or subcontractor is entitled to enter property
  54-11  only if the commission directs the processor or subcontractor to
  54-12  enter the property.  The executive director shall give notice of
  54-13  intent to enter private property for those purposes by certified
  54-14  mail to the last known address indicated in the current county
  54-15  property records at least 10 days before a commission member,
  54-16  commission employee or agent, or authorized processor or
  54-17  subcontractor enters the property.  A commission member, commission
  54-18  employee or agent, or authorized processor or subcontractor who,
  54-19  acting under this subsection, enters private property shall:
  54-20              (1)  observe the establishment's rules concerning
  54-21  safety, internal security, and fire protection; and
  54-22              (2)  if the property has management in residence, make
  54-23  a reasonable attempt to notify the management or person in charge
  54-24  of the  entry and exhibit credentials.
  54-25        (b)  Authorized processors and their subcontractors may not
   55-1  be considered agents of the state and are solely responsible for
   55-2  their actions.
   55-3        Sec. 361.491.  INJUNCTION TO RESTRAIN VIOLATION.  If it
   55-4  appears that a person has violated, is violating, or is threatening
   55-5  to violate this subchapter or a rule, permit, or order adopted or
   55-6  issued under this subchapter, the executive director may bring suit
   55-7  in a district court for injunctive relief to restrain the person
   55-8  from continuing the violation or threat of violation.
   55-9        Sec. 361.492.  NEW TIRE WHOLESALERS AND RETAILERS.  A person
  55-10  selling new tires as described in Section 361.472(a) shall accept
  55-11  from customers, without charge, used tires of the type and in a
  55-12  quantity at least equal to the number of new tires purchased.
  55-13        Sec. 361.493.  CONFIDENTIALITY.  Information submitted to the
  55-14  commission in accordance with Section 361.477(g) or Section
  55-15  361.486(a) or (d), and any report generated by the commission based
  55-16  on the information, is confidential and is not subject to
  55-17  disclosure under Chapter 424, Acts of the 63rd Legislature, Regular
  55-18  Session, 1973 (Article 6252-17a, Vernon's Texas Civil Statutes),
  55-19  and the commission shall protect the information accordingly.
  55-20        Sec. 361.494.  APPEAL.  The commission shall establish a
  55-21  process by which a registered waste tire processor who is adversely
  55-22  affected by an agency decision affecting reimbursement may appeal
  55-23  that decision to the executive director or the commission.
  55-24        Sec. 361.495.  ENSURING CAPACITY.  Not later than October 1
  55-25  of each odd-numbered year, the commission shall determine the total
   56-1  shredding capacity of all registered waste tire processors.  If the
   56-2  commission determines that the shredding capacity is less than the
   56-3  previous year's reimbursed waste tire units, the commission may
   56-4  issue registrations to waste tire processors until the anticipated
   56-5  shredding capacity equals the previous year's reimbursed waste tire
   56-6  units.  If the commission determines that the shredding capacity
   56-7  exceeds the previous year's reimbursed waste tire units, the
   56-8  commission may not issue a registration to a new waste tire
   56-9  processor until the next capacity assessment is completed.
  56-10        SECTION 3.10.  Section 361.014, Health and Safety Code, is
  56-11  amended to read as follows:
  56-12        Sec. 361.014.  Use of Solid Waste Fee Revenue.  (a)  Revenue
  56-13  received by the department under Section 361.013 shall be deposited
  56-14  in the state treasury to the credit of the department.  At least
  56-15  half the revenue is dedicated to the department's municipal solid
  56-16  waste permitting and enforcement programs and related support
  56-17  activities, and the balance of the revenue is dedicated to pay for
  56-18  activities that will enhance the state's solid waste management
  56-19  program, including:
  56-20              (1)  provision of funds for the municipal solid waste
  56-21  management planning fund and the municipal solid waste resource
  56-22  recovery applied research and technical assistance fund established
  56-23  by the Comprehensive Municipal Solid Waste Management, Resource
  56-24  Recovery, and Conservation Act (Chapter 363);
  56-25              (2)  provision of technical assistance to local
   57-1  governments concerning solid waste management;
   57-2              (3)  establishment of a solid waste resource center in
   57-3  the department and an office of waste minimization and recycling;
   57-4              (4)  provision of supplemental funding to local
   57-5  governments for the enforcement of this chapter, the Texas Litter
   57-6  Abatement Act (Chapter 365), and Chapter 741, Acts of the 67th
   57-7  Legislature, Regular Session, 1981 (Article 4477-9a, Vernon's Texas
   57-8  Civil Statutes);
   57-9              (5)  conduct of a statewide public awareness program
  57-10  concerning solid waste management;
  57-11              (6)  provision of supplemental funds for other state
  57-12  agencies with responsibilities concerning solid waste management,
  57-13  recycling, and other initiatives with the purpose of diverting
  57-14  recyclable waste from landfills;
  57-15              (7)  conduct of research to promote the development and
  57-16  stimulation of markets for recycled waste products;
  57-17              (8)  creation of a state municipal solid waste
  57-18  superfund for:
  57-19                    (A)  the cleanup of unauthorized tire dumps and
  57-20  solid waste dumps for which a responsible party cannot be located
  57-21  or is not immediately financially able to provide the cleanup; and
  57-22                    (B)  the cleanup or proper closure of abandoned
  57-23  or contaminated municipal solid waste sites for which a responsible
  57-24  party is not immediately financially able to provide the cleanup;
  57-25  and
   58-1              (9)  provision of funds for other programs that the
   58-2  board of health may consider appropriate to further the purposes of
   58-3  this chapter.
   58-4        (b)  Revenue derived from fees charged under Section
   58-5  361.013(c) to a transporter of whole used or scrap tires or
   58-6  shredded tire pieces shall be deposited to the credit of the waste
   58-7  tire recycling fund.
   58-8        SECTION 3.11.  Section 361.112, Health and Safety Code, is
   58-9  amended by adding Subsection (m) to read as follows:
  58-10        (m)  The commission may adopt rules to regulate the storage
  58-11  of scrap or shredded tires that are stored at a marine dock, rail
  58-12  yard, or trucking facility for more than 30 days.
  58-13        SECTION 3.12.  Section 363.041, Health and Safety Code, is
  58-14  amended to read as follows:
  58-15        Sec. 363.041.  Composition of Advisory Council.  The
  58-16  Municipal Solid Waste Management and Resource Recovery Advisory
  58-17  Council is composed of the following 17 <15> members appointed by
  58-18  the board:
  58-19              (1)  an elected official from a municipality with a
  58-20  population of 750,000 or more;
  58-21              (2)  an elected official from a municipality with a
  58-22  population of 100,000 or more but less than 750,000;
  58-23              (3)  an elected official from a municipality with a
  58-24  population of 25,000 or more but less than 100,000;
  58-25              (4)  an elected official from a municipality with a
   59-1  population of less than 25,000;
   59-2              (5)  two elected officials of separate counties, one of
   59-3  whom is from a county with a population of less than 150,000;
   59-4              (6)  an official from a municipality or county solid
   59-5  waste agency;
   59-6              (7)  a representative from a private environmental
   59-7  conservation organization;
   59-8              (8)  a representative from a public solid waste
   59-9  district or authority;
  59-10              (9)  a representative from a planning region;
  59-11              (10)  a representative of the financial community;
  59-12              (11)  a representative from a solid waste management
  59-13  organization composed primarily of commercial operators;
  59-14              (12)  a board member; <and>
  59-15              (13)  two persons representing the public who would not
  59-16  otherwise qualify as members under this section;
  59-17              (14)  a registered, fixed waste tire processor; and
  59-18              (15)  a registered, mobile waste tire processor.
  59-19        SECTION 3.13.  (a)  The Texas Natural Resource Conservation
  59-20  Commission may not register a waste tire processor until after the
  59-21  commission makes its initial determination of the capacity of
  59-22  registered waste tire processors as provided by Section 361.495,
  59-23  Health and Safety Code, as added by this article.
  59-24        (b)  If this article takes immediate effect, notwithstanding
  59-25  the date provided by Section 361.495, Health and Safety Code, as
   60-1  added by this article, the Texas Natural Resource Conservation
   60-2  Commission shall make the initial determination of the capacity of
   60-3  registered waste tire processors not later than 30 days after the
   60-4  effective date of this article.
   60-5        SECTION 3.14.  The changes in the waste tire recycling fee
   60-6  made by Section 361.472, Health and Safety Code, as amended by this
   60-7  article, take effect October 1, 1993.
   60-8         ARTICLE 4.  USED OIL, RECYCLING, AND WASTE REDUCTION
   60-9        SECTION 4.01.  Section 361.421, Health and Safety Code, is
  60-10  amended to read as follows:
  60-11        Sec. 361.421.  Definitions.  In this subchapter:
  60-12              (1)  "Compost" is the disinfected and stabilized
  60-13  product of the decomposition process that is used or sold for use
  60-14  as a soil amendment, artificial top soil, growing medium amendment,
  60-15  or other similar uses.
  60-16              (2)  "Composting" means the controlled biological
  60-17  decomposition of organic materials through microbial activity.
  60-18  Depending on the specific application, composting can serve as both
  60-19  a volume reduction and a waste treatment measure.  A beneficial
  60-20  organic composting activity is an appropriate waste management
  60-21  solution that shall divert compatible materials from the solid
  60-22  waste stream that cannot be recycled into higher grade uses and
  60-23  convert these materials into a useful product that is put to
  60-24  beneficial reuse <can serve> as a soil amendment or mulch.
  60-25              (3)  "Life-cycle cost benefit analysis" means a method
   61-1  of determining <comparing> the total equivalent costs and benefits
   61-2  of using products over their lifetimes or over any other period of
   61-3  time.  These costs and benefits are all associated costs and all
   61-4  associated benefits of each product over the time under
   61-5  consideration and include initial costs, annual operating costs,
   61-6  annual savings, future costs, and residual (salvage) values.  The
   61-7  use of this method permits exact  comparisons of these total costs
   61-8  and benefits to determine the most cost-effective product <based on
   61-9  initial maintenance costs which include the initial cost,
  61-10  maintenance costs, and other related expenses>.
  61-11              (4)  "Postconsumer waste" means a material or product
  61-12  that has served its intended use and has been discarded after
  61-13  passing through the hands of a final user.  For the purpose of this
  61-14  subchapter, the term does not include industrial or hazardous
  61-15  waste.
  61-16              (5)  "Recyclable material" means material that has been
  61-17  recovered or diverted from the <non-hazardous> solid waste stream
  61-18  for purposes of reuse, recycling, or reclamation, a substantial
  61-19  portion of which is consistently used in the manufacture of
  61-20  products which may otherwise be produced using raw or virgin
  61-21  materials.  Recyclable material is not solid waste unless the
  61-22  material is deemed to be hazardous solid waste by the Administrator
  61-23  of the United States Environmental Protection Agency, whereupon it
  61-24  shall be regulated accordingly unless it is otherwise exempted in
  61-25  whole or in part from regulation under the federal Solid Waste
   62-1  Disposal Act, as amended by the Resource Conservation and Recovery
   62-2  Act of 1976 (42 U.S.C. Section 6901 et seq.), by Environmental
   62-3  Protection Agency regulation.  However, recyclable material may
   62-4  become solid waste at such time, if any, as it is abandoned or
   62-5  disposed of rather than recycled, whereupon it will be solid waste
   62-6  with respect only to the party actually abandoning or disposing of
   62-7  the material.
   62-8              (6)  "Recycled material" means materials, goods, or
   62-9  products that consist of recyclable material or materials derived
  62-10  from postconsumer waste, industrial waste, or hazardous waste which
  62-11  may be used in place of a raw or virgin material in manufacturing a
  62-12  new product.
  62-13              (7)  "Recycled product" means a product which meets the
  62-14  requirements for recycled material content as prescribed by the
  62-15  rules established by the department described in Section 361.427.
  62-16              (8)  "Recycling" means a process by which materials
  62-17  that have served their intended use or are scrapped, discarded,
  62-18  used, surplus, or obsolete are collected, separated, or processed
  62-19  and returned to use in the form of raw materials in the production
  62-20  of new products.  Recycling <Except for mixed municipal solid waste
  62-21  composting, that is, composting of the typical mixed solid waste
  62-22  stream generated by residential, commercial, and/or institutional
  62-23  sources, recycling> includes:
  62-24                    (A)  the composting process if the compost
  62-25  material is put to beneficial reuse as defined by the commission;
   63-1  and
   63-2                    (B)  the application to land, as organic
   63-3  fertilizer, of processed sludge or biosolids from municipal
   63-4  wastewater treatment plants and other organic matter resulting from
   63-5  poultry, dairy, livestock, or other agricultural operations.
   63-6              (9)  "Source reduction" means an activity or process
   63-7  that avoids the creation of municipal solid waste in the state by
   63-8  reducing waste at the source and includes:
   63-9                    (A)  redesigning a product or packaging so that
  63-10  less material is ultimately disposed of;
  63-11                    (B)  changing a process for producing a good or
  63-12  providing a service so that less material is disposed of; or
  63-13                    (C)  changing the way a material is used so that
  63-14  the amount of waste generated is reduced.
  63-15              (10)  "State agency" means a department, commission,
  63-16  board, office, council, or other agency in the executive branch of
  63-17  government that is created by the constitution or a statute of this
  63-18  state and has authority not limited to a geographical portion of
  63-19  the state.  The term does not include a university system or
  63-20  institution of higher education as defined by Section 61.003,
  63-21  Education Code.
  63-22              (11) <(10)>  "Virgin material" means a raw material
  63-23  used in manufacturing that has not yet become a product.
  63-24              (12) <(11)>  "Yard waste" means leaves, grass
  63-25  clippings, yard and garden debris, and brush, including clean woody
   64-1  vegetative material not greater than six inches in diameter, that
   64-2  results from landscaping maintenance and land-clearing operations.
   64-3  The term does not include stumps, roots, or shrubs with intact root
   64-4  balls.
   64-5        SECTION 4.02.  Section 361.422, Health and Safety Code, is
   64-6  amended to read as follows:
   64-7        Sec. 361.422.  STATE SOURCE REDUCTION AND RECYCLING GOAL.
   64-8  (a)  It is the state's goal to reduce <achieve> by January 1, 1994,
   64-9  <the recycling of at least 40 percent of> the amount of <state's
  64-10  total> municipal solid waste disposed of in this state by at least
  64-11  40 percent through source reduction and recycling <stream>.
  64-12        (b)  In this section, "total municipal solid waste stream"
  64-13  means the sum of the state's total municipal solid waste that is
  64-14  disposed of as solid waste, measured in tons, and the total number
  64-15  of tons of recyclable material that has been diverted or recovered
  64-16  from the total municipal solid waste and recycled.
  64-17        (c)  The <By January 1, 1992, the> department shall establish
  64-18  rules and reporting requirements through which progress toward
  64-19  achieving the established source reduction and recycling goals can
  64-20  be measured.  The rules may take into consideration those ongoing
  64-21  community source reduction and recycling programs where substantial
  64-22  progress has already been achieved.  The department may also
  64-23  establish a limit on the amount of credit that may be given to
  64-24  certain high-volume materials in measuring recycling progress.
  64-25        (d)  For the purpose of measuring progress toward the
   65-1  municipal solid waste reduction goal, the department shall use the
   65-2  weight of the total municipal solid waste stream in 1991 as a
   65-3  baseline for comparison.  To compute progress toward the municipal
   65-4  solid waste reduction goal for a year, the department shall compare
   65-5  the total number of tons disposed in the year under comparison,
   65-6  either by landfilling or by other disposal methods, to the total
   65-7  number of tons disposed in the base year, adjusting for changes in
   65-8  population, tons of solid waste imported and exported, and other
   65-9  relevant changes between the baseline year and the comparison year.
  65-10        (e)  Before January 1, 1994, the commission shall determine
  65-11  whether the goal established in Subsection (a) is being achieved.
  65-12  If the commission finds that the goal is not being achieved, it
  65-13  shall convene an advisory task force consisting of representatives
  65-14  of the commission, the General Land Office, local governments, the
  65-15  Municipal Solid Waste Management and Resource Recovery Advisory
  65-16  Council, and the commercial solid waste disposal industry and may
  65-17  recommend to the legislature a phased-in ban on the disposal of
  65-18  yard waste in a landfill.  The task force may recommend a plan to
  65-19  the legislature for implementing the ban after considering how the
  65-20  ban will:
  65-21              (1)  affect the state's disposal capacity;
  65-22              (2)  affect the economy of the state;
  65-23              (3)  affect local governments; and
  65-24              (4)  be accepted and adhered to by the citizens of the
  65-25  state.
   66-1        SECTION 4.03.  Section 361.425, Health and Safety Code, is
   66-2  amended by amending Subsection (a) and adding Subsection (d) to
   66-3  read as follows:
   66-4        (a)  A state agency, state court or judicial agency, a
   66-5  university system or institution of higher education, a county,
   66-6  municipality, school district, or special district shall:
   66-7              (1)  in cooperation with the <State Purchasing and>
   66-8  General Services Commission or the department establish a program
   66-9  for the separation and collection of all recyclable materials
  66-10  generated by the entity's operations, including, at a minimum,
  66-11  aluminum, steel containers, aseptic packaging and polycoated
  66-12  paperboard cartons, high-grade office paper, and corrugated
  66-13  cardboard;
  66-14              (2)  provide procedures for collecting and storing
  66-15  recyclable materials, containers for recyclable materials, and
  66-16  procedures for making contractual or other arrangements with buyers
  66-17  of recyclable materials;
  66-18              (3)  evaluate the amount of recyclable material
  66-19  recycled and modify the recycling program as necessary to ensure
  66-20  that all recyclable materials are effectively and practicably
  66-21  recycled; and
  66-22              (4)  establish educational and incentive programs to
  66-23  encourage maximum employee participation.
  66-24        (d)  In this section, "recyclable materials" includes
  66-25  materials in the entity's possession that have been abandoned or
   67-1  disposed of by the entity's officers or employees or by any other
   67-2  person.
   67-3        SECTION 4.04.  The heading to Subchapter N, Chapter 361,
   67-4  Health and Safety Code, is amended to read as follows:
   67-5         SUBCHAPTER N.  WASTE REDUCTION <RECYCLING> PROGRAMS;
   67-6                             DISPOSAL FEES
   67-7        SECTION 4.05.  Subdivision (1), Section 371.003, Health and
   67-8  Safety Code, is amended to read as follows:
   67-9              (1)  "Automotive oil" means any lubricating oils
  67-10  intended for use in an internal combustion engine, crankcase,
  67-11  transmission, gear box, or differential for an automobile, bus, or
  67-12  truck.  The term includes oil that is not labeled specifically for
  67-13  that use but is suitable for that use according to generally
  67-14  accepted industry specifications.
  67-15        SECTION 4.06.  Section 371.061, Health and Safety Code, is
  67-16  amended by adding Subsection (e) to read as follows:
  67-17        (e)  The fund is exempt from the application of Sections
  67-18  403.094(h) and 403.095, Government Code.
  67-19        SECTION 4.07.  Subchapter B, Chapter 371, Health and Safety
  67-20  Code, is amended by adding Sections 371.0245 and 371.0246 to read
  67-21  as follows:
  67-22        Sec. 371.0245.  REIMBURSEMENT OF COLLECTION CENTER.  (a)  The
  67-23  commission, on proper application, shall reimburse the owner or
  67-24  operator of an eligible registered public used oil collection
  67-25  center for costs associated with the collection center's disposal
   68-1  of:
   68-2              (1)  do-it-yourself (DIY) used oil collected by the
   68-3  collection center that, unknown to the center at the time of
   68-4  collection, contains hazardous wastes;
   68-5              (2)  used oil collected by the collection center that
   68-6  has been commingled with DIY oils described in Subdivision (1) and
   68-7  is unsuitable for recycling; or
   68-8              (3)  contaminated used oil left at the collection
   68-9  center as used oil after posted business hours and without the
  68-10  knowledge of the collection center.
  68-11        (b)  A registered public used oil collection center is
  68-12  eligible for reimbursement if it demonstrates to the satisfaction
  68-13  of the commission that:
  68-14              (1)  the center has established procedures to minimize
  68-15  the risk that the used oil the center generates or collects from
  68-16  the public will not be mixed with hazardous wastes, especially
  68-17  halogenated wastes;
  68-18              (2)  the center accepts not more than five gallons of
  68-19  used oil from any person at any one time; and
  68-20              (3)  the center can document to the satisfaction of the
  68-21  commission the volume of used oil the center collects from the
  68-22  public during a period by:
  68-23                    (A)  providing a process by which all individuals
  68-24  leaving do-it-yourself (DIY) used oil at the center are required to
  68-25  log their names, addresses, and the approximate amounts of used oil
   69-1  brought to the collection center and ensuring that all
   69-2  do-it-yourself (DIY) used oil collected is kept in a separate
   69-3  sealed and labeled container placed on an impermeable surface; or
   69-4                    (B)  another method approved by the commission.
   69-5        (c)  For the purpose of Subsection (b)(2), the owner or
   69-6  operator of a registered public used oil collection center may
   69-7  presume that a quantity of not more than five gallons of used oil
   69-8  collected from a member of the public is not mixed with a hazardous
   69-9  substance, if the owner or operator acts in good faith and in the
  69-10  belief the oil is generated from the individual's personal
  69-11  activity.
  69-12        (d)  In any state fiscal year, a registered public used oil
  69-13  collection center may not be reimbursed for more than $5,000 in
  69-14  total eligible disposal costs, subject to Section 371.0246(d).
  69-15        (e)  A reimbursement made under this section may be paid out
  69-16  of the used oil recycling fund not to exceed an aggregate amount of
  69-17  $500,000 each fiscal year.
  69-18        Sec. 371.0246.  PROCEDURES FOR REIMBURSEMENT.  (a)  An owner
  69-19  or operator of a registered public used oil collection center may
  69-20  apply for reimbursement from the commission.
  69-21        (b)  An application for reimbursement shall be filed on a
  69-22  form approved or provided by the commission.
  69-23        (c)  An application must contain:
  69-24              (1)  the name, address, and telephone number of the
  69-25  applicant;
   70-1              (2)  the name, mailing address, location address, and
   70-2  commission registration number of the registered public used oil
   70-3  collection center from which the contaminated oil was removed;
   70-4              (3)  the name, address, telephone number, and
   70-5  commission registration number of the hazardous waste transporter
   70-6  used to dispose of the contaminated used oil;
   70-7              (4)  a copy of the signed uniform hazardous waste
   70-8  manifest;
   70-9              (5)  a copy of each invoice for which reimbursement is
  70-10  requested and evidence that the amount shown on the invoice has
  70-11  been paid in full, which may be in the form of:
  70-12                    (A)  canceled checks;
  70-13                    (B)  business receipts from the person who
  70-14  performed the work; or
  70-15                    (C)  other documentation approved by the
  70-16  commission;
  70-17              (6)  a waste-characterization or similar documentation
  70-18  required before acceptance of a hazardous waste by the disposal
  70-19  facility that accepted the contaminated used oil for disposal; and
  70-20              (7)  any other information that the executive director
  70-21  may reasonably require.
  70-22        (d)  All claims for reimbursement filed under this section
  70-23  and Section 371.0245 are subject to the availability of money in
  70-24  the used oil recycling fund and to Section 371.0245(e).  This
  70-25  subchapter does not create an entitlement to money in the used oil
   71-1  recycling fund or any other fund.
   71-2        SECTION 4.08.  Subchapter D, Chapter 371, Health and Safety
   71-3  Code, is amended by adding Section 371.063 to read as follows:
   71-4        Sec. 371.063.  ANNUAL REPORTING REQUIREMENT.  The commission
   71-5  shall monitor the balance of the used oil recycling fund and shall
   71-6  provide a detailed report of all income, expenditures, and programs
   71-7  funded to the Texas Legislature on an annual basis.
   71-8        SECTION 4.09.  Section 371.062, Health and Safety Code, is
   71-9  amended to read as follows:
  71-10        Sec. 371.062.  Fee on Sale of Automotive Oil.  (a)  In this
  71-11  section:
  71-12              (1)  "First sale" means the first actual sale of
  71-13  automotive oil delivered to a location in this state and sold to a
  71-14  purchaser who is not an automotive oil manufacturer.  The term does
  71-15  not include the sale of automotive oil exported from this state to
  71-16  a location outside this state for the purpose of sale or use
  71-17  outside this state.  This term does not include sales of automotive
  71-18  oils for resale to or use by vessels exclusively engaged in foreign
  71-19  or interstate commerce.
  71-20              (2)  "Importer" means any person who imports or causes
  71-21  to be imported automotive oil into this state for sale, use, or
  71-22  consumption.
  71-23              (3)  "Oil manufacturer" means any person or entity that
  71-24  formulates automotive oil and packages, distributes, or sells that
  71-25  automotive oil.  The term includes any person packaging or
   72-1  repackaging automotive oil.
   72-2        (b)  An oil manufacturer <or importer> who makes a first sale
   72-3  of automotive oil is liable for a fee.
   72-4        (c)  An oil importer who imports or causes to be imported
   72-5  automotive oil is liable for the fee at the time the oil is
   72-6  received.
   72-7        (d)  An oil distributor or retailer who exports from this
   72-8  state to a location outside this state oil on which the automotive
   72-9  oil fee has been paid may request from his supplier a refund or
  72-10  credit of the fee paid on the exported oil.  The supplier or oil
  72-11  manufacturer and the importer may in turn request a refund of the
  72-12  fee paid to the comptroller.  The amount of refund that may be
  72-13  claimed under this section may equal but not exceed the amount of
  72-14  the fee paid on the automotive oil.
  72-15        (e)  An oil manufacturer, importer, distributor, or retailer
  72-16  who makes a sale to a vessel or a sale for resale to a vessel of
  72-17  automotive oil on which the automotive oil fee has been paid may
  72-18  file with the comptroller a request for refund of the fee paid on
  72-19  the oil or, where applicable, may request a refund or credit from
  72-20  the supplier to whom the fee was paid.  The supplier may in turn
  72-21  request a refund from the comptroller.  The amount of refund that
  72-22  may be claimed under this section may equal but not exceed the
  72-23  amount of the fee paid on the automotive oil.
  72-24        (f)  Each oil manufacturer or importer required to pay a fee
  72-25  under this section shall:
   73-1              (1)  prepare and maintain, on a form provided or
   73-2  approved by the comptroller, a report of each first sale or, in the
   73-3  case of an importer, the first receipt in Texas of automotive oil
   73-4  by the person and the price received;
   73-5              (2)  retain the invoice or a copy of the invoice or
   73-6  other appropriate record of the sale or receipt for four years from
   73-7  the date of sale or receipt; and
   73-8              (3)  on or before the 25th day of the month following
   73-9  the end of each calendar quarter, file a report with the
  73-10  comptroller and remit to the comptroller the amount of fees
  73-11  required to be paid for the preceding quarter.
  73-12        (g) <(d)>  Records required to be maintained under Subsection
  73-13  (f) <(c)> shall be available for inspection by the comptroller at
  73-14  all reasonable times.
  73-15        (h) <(e)>  The comptroller shall adopt rules necessary for
  73-16  the administration, collection, reporting, and payment of the fees
  73-17  payable or collected under this section.
  73-18        (i) <(f)>  Except as provided by this section, Chapters 101
  73-19  and 111 through 113, Tax Code, apply to the administration,
  73-20  payment, collection, and enforcement of fees under this section in
  73-21  the same manner that those chapters apply to the administration,
  73-22  payment, collection, and enforcement of taxes under Title 2, Tax
  73-23  Code.
  73-24        (j) <(g)>  The fee imposed under this section is two cents
  73-25  per quart or eight cents per gallon of automotive oil.  The
   74-1  department shall monitor the unobligated balance of the used oil
   74-2  recycling fund and shall adjust the fee rate to meet expenditure
   74-3  requirements of the used oil recycling program and to maintain an
   74-4  appropriate fund balance.  The fee imposed under this section may
   74-5  not exceed five cents per quart or 20 cents per gallon of
   74-6  automotive oil.  On or before September 1 of each year, the
   74-7  department and the comptroller jointly shall issue notice of the
   74-8  effective fee rate for the next fiscal year.
   74-9        (k) <(h)>  A person required to pay a fee under this section
  74-10  may retain one percent of the amount of the fees due from each
  74-11  quarterly payment as reimbursement for administrative costs.
  74-12        (l) <(i)>  The comptroller may deduct a percentage of the
  74-13  fees collected under this section in an amount sufficient to pay
  74-14  the reasonable and necessary costs of administering and enforcing
  74-15  this section.  The comptroller shall credit the amount deducted to
  74-16  the general revenue fund.  The balance of fees and all penalties
  74-17  and interest collected under this section shall be deposited to the
  74-18  credit of the used oil recycling fund.
  74-19        SECTION 4.10.  The change in law made by Sections 371.0245
  74-20  and 371.0246, Health and Safety Code, as added by this article,
  74-21  applies only to costs incurred by an eligible registered public
  74-22  used oil collection center on or after September 1, 1993.
  74-23        SECTION 4.11.  Not later than December 1, 1993, the Texas
  74-24  Water Commission or its successor shall adopt any rules necessary
  74-25  to administer the reimbursement program established by Sections
   75-1  371.0245 and 371.0246, Health and Safety Code, as added by this
   75-2  article.
   75-3        SECTION 4.12.  (a)  Except as provided by Subsection (b),
   75-4  this article takes effect October 1, 1993.
   75-5        (b)  Sections 4.07 and 4.08 take effect September 1, 1993.
   75-6                       ARTICLE 5.  MISCELLANEOUS
   75-7        SECTION 5.01.  This Act does not affect the transfer of
   75-8  powers, duties, rights, and obligations made by Chapter 3, Acts of
   75-9  the 72nd Legislature, 1st Called Session, 1991.
  75-10        SECTION 5.02.  Except as otherwise provided by this Act, this
  75-11  Act takes effect immediately.
  75-12        SECTION 5.03.  The importance of this legislation and the
  75-13  crowded condition of the calendars in both houses create an
  75-14  emergency and an imperative public necessity that the
  75-15  constitutional rule requiring bills to be read on three several
  75-16  days in each house be suspended, and this rule is hereby suspended,
  75-17  and that this Act take effect and be in force from and after its
  75-18  passage, and it is so enacted.