1-1 By: Parker S.B. No. 1051
1-2 (In the Senate - Filed March 12, 1993; March 15, 1993, read
1-3 first time and referred to Committee on Natural Resources;
1-4 March 24, 1993, rereferred to Committee on Economic Development;
1-5 April 15, 1993, reported adversely, with favorable Committee
1-6 Substitute by the following vote: Yeas 7, Nays 0; April 15, 1993,
1-7 sent to printer.)
1-8 COMMITTEE VOTE
1-9 Yea Nay PNV Absent
1-10 Parker x
1-11 Lucio x
1-12 Ellis x
1-13 Haley x
1-14 Harris of Dallas x
1-15 Harris of Tarrant x
1-16 Leedom x
1-17 Madla x
1-18 Rosson x
1-19 Shapiro x
1-20 Wentworth x
1-21 COMMITTEE SUBSTITUTE FOR S.B. No. 1051 By: Parker
1-22 A BILL TO BE ENTITLED
1-23 AN ACT
1-24 relating to the reduction of solid waste by creating markets for
1-25 recycled materials and otherwise promoting the use of recycled
1-26 materials.
1-27 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-28 SECTION 1. Chapter 481, Government Code, is amended by
1-29 adding Subchapter AA to read as follows:
1-30 SUBCHAPTER AA. RECYCLING MARKET DEVELOPMENT
1-31 Sec. 481.371. PURPOSE. The purpose of this subchapter is to
1-32 develop and diversify the economy of this state and develop and
1-33 expand commerce in this state through sustaining and promoting
1-34 recycling enterprises.
1-35 Sec. 481.372. DEFINITIONS. In this subchapter, "enterprise
1-36 zone" and "governing body" have the meanings assigned by the Texas
1-37 Enterprise Zone Act (Article 5190.7, Vernon's Texas Civil
1-38 Statutes).
1-39 Sec. 481.373. DESIGNATION AS RECYCLING MARKET DEVELOPMENT
1-40 ZONE. On application by the governing body of an enterprise zone,
1-41 the department may designate the enterprise zone as a recycling
1-42 market development zone for the development of local business and
1-43 industry in the zone to recycle materials that have served their
1-44 intended use or that are scrapped, discarded, used, surplus, or
1-45 obsolete by collecting, separating, or processing the materials for
1-46 use in the production of new products.
1-47 Sec. 481.374. RECYCLING MARKET DEVELOPMENT LOANS AND GRANTS.
1-48 (a) The department may make a loan or grant to the governing body
1-49 of an enterprise zone designated as a recycling market development
1-50 zone to fund an activity that sustains or increases recycling
1-51 efforts.
1-52 (b) A grant recipient under this section must match the
1-53 amount of the state grant with an equal amount of money from
1-54 another source.
1-55 (c) A grant under this section may not exceed $30,000.
1-56 (d) The department may make loans or grants from
1-57 appropriated funds or from any special fund.
1-58 Sec. 481.375. RULEMAKING. The department shall adopt
1-59 necessary rules to implement and administer this subchapter in
1-60 accordance with the purposes of this subchapter, including rules
1-61 on:
1-62 (1) criteria for designating a recycling market
1-63 development zone;
1-64 (2) designation applications, loan applications, and
1-65 grant applications;
1-66 (3) the minimum and maximum amount of a loan made
1-67 under this subchapter;
1-68 (4) application fees; and
2-1 (5) operational guidelines for loan and grant
2-2 disbursement.
2-3 SECTION 2. Article 11, State Purchasing and General Services
2-4 Act (Article 601b, Vernon's Texas Civil Statutes), is amended by
2-5 adding Sections 11.07 and 11.08 to read as follows:
2-6 Sec. 11.07. RECYCLING BY PRIVATE ENTERPRISES THAT CONTRACT
2-7 WITH STATE. A private enterprise that contracts with the state
2-8 shall exert its best efforts to recycle all materials that are
2-9 capable of being recycled, including paper products.
2-10 Sec. 11.08. INTERSTATE COMPACTS AND COOPERATIVE AGREEMENTS
2-11 FOR THE PROCUREMENT OF RECYCLED PRODUCTS. The commission shall
2-12 enter into compacts and cooperative agreements with other states
2-13 and government entities for the procurement of products made of
2-14 recycled materials.
2-15 SECTION 3. Section 382.002, Local Government Code, is
2-16 amended to read as follows:
2-17 Sec. 382.002. Purpose. The primary purpose of this chapter
2-18 is to create county research and development authorities to promote
2-19 scientific research and development and commercialization of
2-20 research in affiliation with public and private institutions of
2-21 research, higher education, or health science centers. Research to
2-22 be promoted, developed, and commercialized includes research in
2-23 recycling processes and recyclable materials.
2-24 SECTION 4. Subsection (a), Section 481.078, Government Code,
2-25 is amended to read as follows:
2-26 (a) The department may develop and plan programs for the
2-27 purpose of promoting and encouraging the location and expansion of
2-28 major industrial, <and> manufacturing, and recycling enterprises
2-29 within this state and may coordinate, with the consent of local
2-30 governments, the activities of the local governments related to the
2-31 programs, including financing options available under existing law
2-32 and this section for that purpose.
2-33 SECTION 5. Subdivision (2), Subsection (a), Section 4B,
2-34 Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas
2-35 Civil Statutes), is amended to read as follows:
2-36 (2) "Project" means land, buildings, equipment,
2-37 facilities, and improvements included in the definition of that
2-38 term under Section 2 of this Act, including recycling facilities,
2-39 and land, buildings, equipment, facilities, and improvements found
2-40 by the board of directors to be required or suitable for use for
2-41 professional and amateur (including children's) sports, athletic,
2-42 entertainment, tourist, convention, and public park purposes and
2-43 events, including stadiums, ball parks, auditoriums, amphitheaters,
2-44 concert halls, learning centers, parks and park facilities, open
2-45 space improvements, municipal buildings, museums, exhibition
2-46 facilities, and related store, restaurant, concession, and
2-47 automobile parking facilities, related area transportation
2-48 facilities, and related roads, streets, and water and sewer
2-49 facilities, and other related improvements that enhance any of
2-50 those items.
2-51 SECTION 6. Subsections (a) and (e), Section 361.013, Health
2-52 and Safety Code, are amended to read as follows:
2-53 (a) Except as provided by Subsection (e), the department
2-54 shall charge a fee on solid waste that is disposed of within this
2-55 state. The fee is the greater of 50 cents per ton or, for
2-56 compacted solid waste, 50 cents per cubic yard or, for uncompacted
2-57 solid waste, 10 cents per cubic yard received for disposal at a
2-58 landfill. The department shall set the fee for sludge or similar
2-59 waste applied to the land for beneficial use on a dry weight basis
2-60 and for solid waste received at an incinerator <or a shredding and
2-61 composting facility> at half the fee set for solid waste received
2-62 for disposal at a landfill. The department may charge comparable
2-63 fees for other means of solid waste disposal that are used.
2-64 (e)(1) The department may not charge a fee under Subsection
2-65 (a) for scrap tires that are deposited in a designated recycling
2-66 collection area at a landfill permitted by the commission or the
2-67 department or licensed by a county or by a political subdivision
2-68 exercising the authority granted by Section 361.165 and that are
2-69 temporarily stored for eventual recycling, reuse, or energy
2-70 recovery.
3-1 (2) No fee may be charged under Subsection (a) for
3-2 materials received at a composting facility, including a composting
3-3 facility located at a permitted landfill site, that are converted
3-4 to compost through the composting process. Any compost that is not
3-5 used as compost and is deposited in a landfill is not exempt from
3-6 the fee.
3-7 SECTION 7. Section 361.422, Health and Safety Code, is
3-8 amended by adding Subsection (d) to read as follows:
3-9 (d) Before January 1, 1994, the commission shall determine
3-10 whether the goal established in Subsection (a) is being achieved.
3-11 If the commission finds that the goal is not being achieved, it
3-12 shall convene an advisory task force consisting of representatives
3-13 of the commission, the General Land Office, local governments, the
3-14 Municipal Solid Waste Management and Resource Recovery Advisory
3-15 Council, and the commercial solid waste disposal industry and shall
3-16 institute a phased-in ban on the disposal of yard waste in a
3-17 landfill after adoption of rules for that purpose and beginning no
3-18 earlier than January 1, 1996. The task force shall recommend a
3-19 plan to the commission for implementing the ban, after taking the
3-20 following factors into consideration:
3-21 (1) how the ban will affect the state's disposal
3-22 capacity;
3-23 (2) how the ban will affect the economy of the state;
3-24 (3) how the ban will affect local governments; and
3-25 (4) how the ban will be accepted and adhered to by the
3-26 citizens of the state.
3-27 SECTION 8. Section 361.423, Health and Safety Code, is
3-28 amended to read as follows:
3-29 Sec. 361.423. RECYCLING MARKET DEVELOPMENT BOARD <STUDY> AND
3-30 IMPLEMENTATION PROGRAM. (a) The Commissioner of the General Land
3-31 Office<, in cooperation with the department>, the chairman of the
3-32 Texas Water Commission, the executive director of the General
3-33 Services <Railroad> Commission <of Texas>, and the executive
3-34 director of the Texas Department of Commerce<,> shall constitute
3-35 the Recycling Market Development Board. The Commissioner of the
3-36 General Land Office serves as the chair of the Recycling Market
3-37 Development Board initially, and the position of chair shall rotate
3-38 among the members annually thereafter. The Recycling Market
3-39 Development Board may designate chief executives of additional
3-40 agencies as members of the board if it identifies the agencies as
3-41 agencies needed to assist the board in performing its duties as
3-42 outlined in Subsection (b). The Recycling Market Development Board
3-43 shall provide support to and coordinate the recycling activities of
3-44 member agencies and shall pursue <initiate, coordinate, and conduct
3-45 a comprehensive market development study that quantifies the
3-46 potential benefits and costs of recycling in order to provide the
3-47 groundwork for> an economic development strategy that focuses on
3-48 the state's waste management priorities established by Section
3-49 361.022 and that includes development of recycling industries and
3-50 markets as an integrated component.
3-51 (b) The Recycling Market Development Board, on an ongoing
3-52 basis, <study> shall:
3-53 (1) identify existing economic and regulatory
3-54 incentives and disincentives for creating an optimal market
3-55 development strategy;
3-56 (2) analyze the market development implications of:
3-57 (A) the state's waste management policies and
3-58 regulations;
3-59 (B) existing and potential markets for plastic,
3-60 glass, paper, lead-acid batteries, tires, compost, scrap gypsum,
3-61 and other recyclable materials; and
3-62 (C) the state's tax structure and overall
3-63 economic base;
3-64 (3) examine and make policy recommendations regarding
3-65 the need for changes in or the development of:
3-66 (A) economic policies that affect
3-67 transportation, such as those embodied in freight rate schedules;
3-68 (B) tax incentives and disincentives;
3-69 (C) the availability of financial capital
3-70 including grants, loans, and venture capital;
4-1 (D) enterprise zones;
4-2 (E) managerial and technical assistance;
4-3 (F) job-training programs;
4-4 (G) strategies for matching market supply and
4-5 market demand for recyclable materials, including intrastate and
4-6 interstate coordination;
4-7 (H) the state recycling goal;
4-8 (I) public-private partnerships;
4-9 (J) research and development;
4-10 (K) government procurement policies;
4-11 (L) educational programs for the public,
4-12 corporate and regulated communities, and government entities; and
4-13 (M) public health and safety regulatory
4-14 policies; <and>
4-15 (4) establish a comprehensive statewide strategy to
4-16 expand markets for recycled products in Texas; and
4-17 (5) provide information and technical assistance to
4-18 small and disadvantaged businesses, business development centers,
4-19 chambers of commerce, educational institutions, and nonprofit
4-20 associations on market opportunities in the area of recycling.
4-21 (c) In carrying out this section <preparing the study>, the
4-22 responsible agencies may obtain research and development and
4-23 technical assistance from the Hazardous Waste Research Center at
4-24 Lamar University at Beaumont or other similar institutions.
4-25 (d) The General Land Office shall provide ongoing research
4-26 and assistance to the Recycling Market Development Board in the
4-27 carrying out of its responsibilities.
4-28 (e) The Texas Water Commission shall develop and carry out a
4-29 program designed to implement the recommendations of the
4-30 comprehensive market development study completed pursuant to
4-31 Section 1, Chapter 303, Acts of the 72nd Legislature, Regular
4-32 Session, 1991, and the comprehensive statewide strategy established
4-33 pursuant to Subsection (b)(4).
4-34 SECTION 9. Subchapter N, Chapter 361, Health and Safety
4-35 Code, is amended by adding Section 361.4261 to read as follows:
4-36 Sec. 361.4261. STATE AGENCY EXPENDITURES FOR RECYCLED
4-37 MATERIALS. State agencies shall expend a minimum of five percent
4-38 of their procurement budget in fiscal year 1994 and eight percent
4-39 of their procurement budget for each fiscal year thereafter for
4-40 materials, supplies, and equipment that have recycled material
4-41 content or are remanufactured or environmentally sensitive, as
4-42 those terms are defined by the General Services Commission. A
4-43 report of the total expenditures in these areas and the amount
4-44 expended in each category for the previous fiscal year shall be
4-45 delivered to the governor, the Legislative Budget Board, the
4-46 lieutenant governor, and the speaker of the house of
4-47 representatives not later than January 1 of each year.
4-48 SECTION 10. Section 361.428, Health and Safety Code, is
4-49 amended to read as follows:
4-50 Sec. 361.428. Composting Program. (a) <The Municipal Solid
4-51 Waste Management and Resource Recovery Advisory Council of the
4-52 department shall develop recommendations for the 73rd Legislature
4-53 regarding the development of a state composting program. In
4-54 developing these recommendations, the council shall, at a minimum,
4-55 consider:>
4-56 <(1) the development of local yard waste separation
4-57 programs;>
4-58 <(2) the commercial application of composting
4-59 activities;>
4-60 <(3) the potential beneficial uses of compost; and>
4-61 <(4) the necessary changes to existing law and
4-62 regulations required to facilitate conversion of yard waste to
4-63 compost.>
4-64 <(b)> The commission <department> shall put in place a
4-65 composting program that is capable of achieving at least a 15
4-66 percent reduction in the amount of the municipal solid waste stream
4-67 that is disposed of in landfills by January 1, 1994.
4-68 (b) The commission shall adopt rules establishing minimum
4-69 standards and guidelines for the issuance of permits for processes
4-70 or facilities which produce compost that is the product of material
5-1 from the typical mixed solid waste stream generated by residential,
5-2 institutional, commercial, or industrial sources. A reduction in
5-3 the mixed solid waste stream that occurs as a result of the
5-4 beneficial reuse of compost produced by a facility permitted under
5-5 this subsection shall be used in achieving the goal established
5-6 under Section 361.422. The minimum standards must include
5-7 end-product standards and a definition of beneficial reuse. The
5-8 commission shall consider regulations issued by the United States
5-9 Environmental Protection Agency in developing minimum standards.
5-10 Beneficial reuse does not include landfilling or the use of compost
5-11 as daily landfill cover.
5-12 (c) A composting facility may not accept mixed municipal
5-13 solid waste from a governmental unit without ensuring that
5-14 residents have access to household hazardous waste collection and
5-15 source-separated recycling programs. The commission shall
5-16 establish standards for household hazardous waste collection
5-17 programs and source-separated recycling programs that qualify under
5-18 this section.
5-19 SECTION 11. Section 361.452, Health and Safety Code, is
5-20 amended to read as follows:
5-21 Sec. 361.452. Collection for Recycling. A person selling
5-22 lead-acid batteries at retail or offering lead-acid batteries for
5-23 retail sale in this state shall:
5-24 (1) accept <from customers>, if offered, at least one
5-25 but not more than three <the point of transfer, used> lead-acid
5-26 batteries for recycling <of the type and in a quantity at least
5-27 equal to the number of new batteries purchased>; and
5-28 (2) post written notice, which must be at least 8-1/2
5-29 inches by 11 inches in size, containing the universal recycling
5-30 symbol and the following language:
5-31 (A) "It is illegal to discard or improperly
5-32 dispose of a motor-vehicle battery or other lead-acid battery.";
5-33 (B) "Recycle your used batteries."; and
5-34 (C) "State law requires us to accept used
5-35 motor-vehicle batteries or other lead-acid batteries for recycling
5-36 <in exchange for new batteries purchased>."
5-37 SECTION 12. Section 361.454, Health and Safety Code, is
5-38 amended to read as follows:
5-39 Sec. 361.454. LEAD-ACID BATTERY WHOLESALERS. Any person
5-40 selling new lead-acid batteries at wholesale shall accept from
5-41 customers, at the point of transfer, used lead-acid batteries for
5-42 recycling <of the type and in a quantity at least equal to the
5-43 number of new batteries purchased>, if offered by customers. A
5-44 person accepting batteries in transfer from a battery retailer
5-45 shall remove batteries from the retail point of collection within
5-46 90 days after acceptance.
5-47 SECTION 13. Section 63.071, Agriculture Code, is amended by
5-48 adding Subsection (h) to read as follows:
5-49 (h) A person is not required to pay an inspection fee on
5-50 compost as defined by Section 361.421, Health and Safety Code.
5-51 SECTION 14. Section 481.295, Government Code, is amended by
5-52 adding Subsection (c) to read as follows:
5-53 (c) The department and the advisory board may make a loan or
5-54 a loan guarantee to the governing body of an enterprise zone
5-55 designated as a recycling market development zone under Subchapter
5-56 AA to fund an activity that sustains or increases recycling
5-57 efforts.
5-58 SECTION 15. The Texas Natural Resource Conservation
5-59 Commission shall adopt the rules required by Subsection (b),
5-60 Section 361.428, Health and Safety Code, as added by this Act, not
5-61 later than six months after the effective date of this Act.
5-62 SECTION 16. The importance of this legislation and the
5-63 crowded condition of the calendars in both houses create an
5-64 emergency and an imperative public necessity that the
5-65 constitutional rule requiring bills to be read on three several
5-66 days in each house be suspended, and this rule is hereby suspended,
5-67 and that this Act take effect and be in force from and after its
5-68 passage, and it is so enacted.
5-69 * * * * *
5-70 Austin,
6-1 Texas
6-2 April 15, 1993
6-3 Hon. Bob Bullock
6-4 President of the Senate
6-5 Sir:
6-6 We, your Committee on Economic Development to which was referred
6-7 S.B. No. 1051, have had the same under consideration, and I am
6-8 instructed to report it back to the Senate with the recommendation
6-9 that it do not pass, but that the Committee Substitute adopted in
6-10 lieu thereof do pass and be printed.
6-11 Parker,
6-12 Chairman
6-13 * * * * *
6-14 WITNESSES
6-15 FOR AGAINST ON
6-16 ___________________________________________________________________
6-17 Name: Garry Mauro x
6-18 Representing: GLO
6-19 City: Austin
6-20 -------------------------------------------------------------------
6-21 Name: William Petty x
6-22 Representing: City of Houston
6-23 City: Houston
6-24 -------------------------------------------------------------------
6-25 Name: J. D. Porter x
6-26 Representing: Tx Dept. of Commerce
6-27 City: Austin
6-28 -------------------------------------------------------------------
6-29 Name: Blanton Moore x
6-30 Representing: Bedminster Corp.
6-31 City: Austin
6-32 -------------------------------------------------------------------
6-33 Name: Patrice "Pete" Parsons x
6-34 Representing: General Services Commission
6-35 City: Austin
6-36 -------------------------------------------------------------------
6-37 Name: Susan Kaderka x
6-38 Representing: Texas Water Commission
6-39 City: Austin
6-40 -------------------------------------------------------------------
6-41 Name: Allan Kimball x
6-42 Representing: GLO
6-43 City: Austin
6-44 -------------------------------------------------------------------
6-45 Name: Brian Christian x
6-46 Representing: GLO
6-47 City: Austin
6-48 -------------------------------------------------------------------
6-49 Name: Susan Cox x
6-50 Representing: GLO
6-51 City: Austin
6-52 -------------------------------------------------------------------
6-53 Name: Kitty Coley x
6-54 Representing: Texas Water Commission
6-55 City: Austin
6-56 -------------------------------------------------------------------
6-57 Name: Gail Vittori x
6-58 Representing: Environmental Defense Fund
6-59 City: Austin
6-60 -------------------------------------------------------------------
6-61 Name: Jim AuBuchon x
6-62 Representing: Commercial Metals Company
6-63 City: Dallas
6-64 -------------------------------------------------------------------