By:  Parker                                           S.B. No. 1225
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to setting state goals, standards, and fees for used oil
    1-2  and solid waste.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Section 361.421, Health and Safety Code, is
    1-5  amended to read as follows:
    1-6        Sec. 361.421.  Definitions.  In this subchapter:
    1-7              (1)  "Compost" is the disinfected and stabilized
    1-8  product of the decomposition process that is used or sold for use
    1-9  as a soil amendment, artificial top soil, growing medium amendment,
   1-10  or other similar uses.
   1-11              (2)  "Composting" means the controlled biological
   1-12  decomposition of organic materials through microbial activity.
   1-13  Depending on the specific application, composting can serve as both
   1-14  a volume reduction and a waste treatment measure.  A beneficial
   1-15  organic composting activity is an appropriate waste management
   1-16  solution that shall divert compatible materials from the solid
   1-17  waste stream that cannot be recycled into higher grade uses and
   1-18  convert these materials into a useful product that is put to
   1-19  beneficial reuse <can serve> as a soil amendment or mulch.
   1-20              (3)  "Life-cycle cost benefit analysis" means a method
   1-21  of determining <comparing> the total equivalent costs and benefits
   1-22  of using products over their lifetimes or over any other period of
   1-23  time.  These costs and benefits are all associated costs and all
    2-1  associated benefits of each product over the time period under
    2-2  consideration and include but are not limited to initial costs,
    2-3  annual operating costs, annual savings, future costs, and residual
    2-4  (salvage) values.  The use of this method permits exact
    2-5  comparisons of these total costs and benefits to determine the most
    2-6  cost-effective <based on initial maintenance costs which include
    2-7  the initial cost, maintenance costs, and other related expenses>.
    2-8              (4)  "Postconsumer waste" means a material or product
    2-9  that has served its intended use and has been discarded after
   2-10  passing through the hands of a final user.  For the purpose of this
   2-11  subchapter, the term does not include industrial or hazardous
   2-12  waste.
   2-13              (5)  "Recyclable material" means material that has been
   2-14  recovered or diverted from the <non-hazardous> solid waste stream
   2-15  for purposes of reuse, recycling, or reclamation, a substantial
   2-16  portion of which is consistently used in the manufacture of
   2-17  products which may otherwise be produced using raw or virgin
   2-18  materials.  Recyclable material is not solid waste unless such
   2-19  material is deemed to be hazardous solid waste by the Administrator
   2-20  of the United States Environmental Protection Agency, whereupon it
   2-21  shall be regulated accordingly unless it is otherwise exempted in
   2-22  whole or in part from regulation under the federal Solid Waste
   2-23  Disposal Act, as amended by the Resource Conservation and Recovery
   2-24  Act of 1976 (42 U.S.C. Section 6901 et seq.), by Environmental
   2-25  Protection Agency regulation.  However, recyclable material may
    3-1  become solid waste at such time, if any, as it is abandoned or
    3-2  disposed of rather than recycled, whereupon it will be solid waste
    3-3  with respect only to the party actually abandoning or disposing of
    3-4  the material.
    3-5              (6)  "Recycled material" means materials, goods, or
    3-6  products that consist of recyclable material or materials derived
    3-7  from postconsumer waste, industrial waste, or hazardous waste which
    3-8  may be used in place of a raw or virgin material in manufacturing a
    3-9  new product.
   3-10              (7)  "Recycled product" means a product which meets the
   3-11  requirements for recycled material content as prescribed by the
   3-12  rules established by the department described in Section 361.427.
   3-13              (8)  "Recycling" means a process by which materials
   3-14  that have served their intended use or are scrapped, discarded,
   3-15  used, surplus, or obsolete are collected, separated, or processed
   3-16  and returned to use in the form of raw materials in the production
   3-17  of new products.  Recycling <Except for mixed municipal solid waste
   3-18  composting, that is, composting of the typical mixed solid waste
   3-19  stream generated by residential, commercial, and/or institutional
   3-20  sources, recycling> includes the composting process if the compost
   3-21  material is put to beneficial reuse as defined by the Texas Water
   3-22  Commission.
   3-23              (9)  "Source reduction" means an activity or process
   3-24  that avoids the creation of municipal solid waste in the state by
   3-25  reducing waste at the source.  The term includes redesigning
    4-1  products or packaging so that less material is disposed of,
    4-2  changing a process of producing a product or providing a service so
    4-3  that less material is disposed of, or making behavioral changes in
    4-4  the use of materials that reduce the amount of waste generated.
    4-5              (10)  "State agency" means a department, commission,
    4-6  board, office, council, or other agency in the executive branch of
    4-7  government that is created by the constitution or a statute of this
    4-8  state and has authority not limited to a geographical portion of
    4-9  the state.  The term does not include a university system or
   4-10  institution of higher education as defined by Section 61.003,
   4-11  Education Code.
   4-12              (11) <(10)>  "Virgin material" means a raw material
   4-13  used in manufacturing that has not yet become a product.
   4-14              (12) <(11)>  "Yard waste" means leaves, grass
   4-15  clippings, yard and garden debris, and brush, including clean woody
   4-16  vegetative material not greater than six inches in diameter, that
   4-17  results from landscaping maintenance and land-clearing operations.
   4-18  The term does not include stumps, roots, or shrubs with intact root
   4-19  balls.
   4-20        SECTION 2.  Section 361.422, Health and Safety Code, is
   4-21  amended to read as follows:
   4-22        Sec. 361.422.  STATE SOURCE REDUCTION AND RECYCLING GOAL.
   4-23  (a)  It is the state's goal to reduce <achieve by January 1, 1994,
   4-24  the recycling of at least 40 percent of> the state's total
   4-25  municipal solid waste stream that is disposed of as solid waste by
    5-1  at least 40 percent by January  1, 1994, through source reduction
    5-2  and recycling.
    5-3        (b)  In this section, "total municipal solid waste stream"
    5-4  means the sum of the state's total municipal solid waste that is
    5-5  disposed of as solid waste, measured in tons, and the total number
    5-6  of tons of recyclable material that has been diverted or recovered
    5-7  from the total municipal solid waste and recycled.
    5-8        (c)  The <By January 1, 1992, the> department shall establish
    5-9  rules and reporting requirements through which progress toward
   5-10  achieving the established source reduction and recycling  goals can
   5-11  be measured.  The rules may take into consideration those ongoing
   5-12  community source reduction and recycling programs where substantial
   5-13  progress has already been achieved.  The department may also
   5-14  establish a limit on the amount of credit that may be given to
   5-15  certain high-volume materials in measuring recycling progress.
   5-16        (d)  The baseline for the purpose of measuring progress
   5-17  toward the municipal solid waste reduction goal shall be the weight
   5-18  of the total municipal solid waste stream in 1991.  To calculate
   5-19  progress toward the municipal solid waste reduction goal for the
   5-20  year under comparison, the department shall:
   5-21              (1)  calculate the total number of tons of recyclable
   5-22  material that has been diverted or recovered from the total
   5-23  municipal solid waste stream and recycled; and
   5-24              (2)  calculate the amount by which the total municipal
   5-25  solid waste stream has been reduced through source reduction.
    6-1        (e)  To calculate the amount of waste reduced through source
    6-2  reduction, the department may use the results of studies, surveys,
    6-3  or reports of the source reduction activities of businesses,
    6-4  communities, and other sources of municipal solid waste.  The
    6-5  department also may estimate the amount of waste reduced through
    6-6  source reduction by adjusting the total municipal solid waste
    6-7  stream in the comparison year for changes in economic activity that
    6-8  contributes to municipal solid waste, for changes in population,
    6-9  and for other relevant changes between the baseline year and the
   6-10  comparison year.  The difference between the actual and the
   6-11  adjusted total municipal solid waste stream may be attributed to
   6-12  source reduction activities.
   6-13        SECTION 3.  Section 361.425, Health and Safety Code, is
   6-14  amended by amending Subsection (a) and adding Subsection (d) to
   6-15  read as follows:
   6-16        (a)  A state agency, state court or judicial agency, a
   6-17  university system or institution of higher education, a county,
   6-18  municipality, school district, or special district shall:
   6-19              (1)  in cooperation with the <State Purchasing and>
   6-20  General Services Commission or the department establish a program
   6-21  for the separation and collection of all recyclable materials
   6-22  generated by the entity's operations, including, at a minimum,
   6-23  aluminum, steel containers, aseptic packaging and polycoated
   6-24  paperboard cartons, high-grade office paper, and corrugated
   6-25  cardboard;
    7-1              (2)  provide procedures for collecting and storing
    7-2  recyclable materials, containers for recyclable materials, and
    7-3  procedures for making contractual or other arrangements with buyers
    7-4  of recyclable materials;
    7-5              (3)  evaluate the amount of recyclable material
    7-6  recycled and modify the recycling program as necessary to ensure
    7-7  that all recyclable materials are effectively and practicably
    7-8  recycled; and
    7-9              (4)  establish educational and incentive programs to
   7-10  encourage maximum employee participation.
   7-11        (d)  In this section, "recyclable materials" includes
   7-12  materials in the entity's possession that have been abandoned or
   7-13  disposed of by the entity's officers or employees or by any other
   7-14  person.
   7-15        SECTION 4.  Subdivision (1), Section 371.003, Health and
   7-16  Safety Code, is amended to read as follows:
   7-17              (1)  "Automotive oil" means any lubricating oils
   7-18  intended for use in an internal combustion engine, crankcase,
   7-19  transmission, gear box, or differential for an automobile, bus, or
   7-20  truck.  The term includes oil that is not labeled specifically for
   7-21  such use but is suitable for such use according to generally
   7-22  accepted industry specifications.
   7-23        SECTION 5.  Section 371.062, Health and Safety Code, is
   7-24  amended to read as follows:
   7-25        Sec. 371.062.  Fee on Sale of Automotive Oil.  (a)  In this
    8-1  section:
    8-2              (1)  "First sale" means the first actual sale of
    8-3  automotive oil delivered to a location in this state and sold to a
    8-4  purchaser who is not an automotive oil manufacturer.  The term does
    8-5  not include the sale of automotive oil exported from this state to
    8-6  a location outside this state for the purpose of sale or use
    8-7  outside this state.  This term does not include sales of automotive
    8-8  oils for resale to or use by vessels exclusively engaged in foreign
    8-9  or interstate commerce.
   8-10              (2)  "Importer" means any person who imports or causes
   8-11  to be imported automotive oil into this state for sale, use, or
   8-12  consumption.
   8-13              (3)  "Oil manufacturer" means any person or entity that
   8-14  formulates automotive oil and packages, distributes, or sells that
   8-15  automotive oil.  The term includes any person packaging or
   8-16  repackaging automotive oil.
   8-17        (b)  An oil manufacturer <or importer> who makes a first sale
   8-18  of automotive oil is liable for a fee.
   8-19        (c)  An oil importer who imports or causes to be imported
   8-20  automotive oil is liable for the fee at the time the oil is
   8-21  received.
   8-22        (d)  An oil distributor or retailer who exports from this
   8-23  state to a location outside this state oil on which the automotive
   8-24  oil fee has been paid may request from his supplier a refund or
   8-25  credit of the fee paid on the exported oil.  The supplier or oil
    9-1  manufacturer and the importer may in turn request a refund of the
    9-2  fee paid to the comptroller.  The amount of refund that may be
    9-3  claimed under this section may equal but not exceed the amount of
    9-4  the fee paid on the automotive oil.
    9-5        (e)  An oil manufacturer, importer, distributor, or retailer
    9-6  who makes a sale to a vessel or a sale for resale to a vessel of
    9-7  automotive oil on which the automotive oil fee has been paid may
    9-8  file with the comptroller a request for refund of the fee paid on
    9-9  the oil or, where applicable, may request a refund or credit from
   9-10  the supplier to whom the fee was paid.  The supplier may in turn
   9-11  request a refund from the comptroller.  The amount of refund that
   9-12  may be claimed under this section may equal but not exceed the
   9-13  amount of the fee paid on the automotive oil.
   9-14        (f)  Each oil manufacturer or importer required to pay a fee
   9-15  under this section shall:
   9-16              (1)  prepare and maintain, on a form provided or
   9-17  approved by the comptroller, a report of each first sale or, in the
   9-18  case of an importer, the first receipt in Texas of automotive oil
   9-19  by the person and the price received;
   9-20              (2)  retain the invoice or a copy of the invoice or
   9-21  other appropriate record of the sale or receipt for four years from
   9-22  the date of sale or receipt; and
   9-23              (3)  on or before the 25th day of the month following
   9-24  the end of each calendar quarter, file a report with the
   9-25  comptroller and remit to the comptroller the amount of fees
   10-1  required to be paid for the preceding quarter.
   10-2        (g) <(d)>  Records required to be maintained under Subsection
   10-3  (f) <(c)> shall be available for inspection by the comptroller at
   10-4  all reasonable times.
   10-5        (h) <(e)>  The comptroller shall adopt rules necessary for
   10-6  the administration, collection, reporting, and payment of the fees
   10-7  payable or collected under this section.
   10-8        (i) <(f)>  Except as provided by this section, Chapters 101
   10-9  and 111 through 113, Tax Code, apply to the administration,
  10-10  payment, collection, and enforcement of fees under this section in
  10-11  the same manner that those chapters apply to the administration,
  10-12  payment, collection, and enforcement of taxes under Title 2, Tax
  10-13  Code.
  10-14        (j) <(g)>  The fee imposed under this section is two cents
  10-15  per quart or eight cents per gallon of automotive oil.  The
  10-16  department shall monitor the unobligated balance of the used oil
  10-17  recycling fund and shall, by rule, adjust the fee rate to meet
  10-18  expenditure requirements of the used oil recycling program and to
  10-19  maintain an appropriate fund balance.  The fee imposed under this
  10-20  section may not exceed five cents per quart or 20 cents per gallon
  10-21  of automotive oil.  The department shall notify the comptroller of
  10-22  a fee rate adjustment at least 90 days prior to the effective date
  10-23  of the new fee rate.  <On or before September 1 of each year, the
  10-24  department and the comptroller jointly shall issue notice of the
  10-25  effective fee rate for the next fiscal year.>
   11-1        (k) <(h)>  A person required to pay a fee under this section
   11-2  may retain one percent of the amount of the fees due from each
   11-3  quarterly payment as reimbursement for administrative costs.
   11-4        (l) <(i)>  The comptroller may deduct a percentage of the
   11-5  fees collected under this section in an amount sufficient to pay
   11-6  the reasonable and necessary costs of administering and enforcing
   11-7  this section.  The comptroller shall credit the amount deducted to
   11-8  the general revenue fund.  The balance of fees and all penalties
   11-9  and interest collected under this section shall be deposited to the
  11-10  credit of the used oil recycling fund.
  11-11        SECTION 6.  This Act takes effect October 1, 1993.
  11-12        SECTION 7.  The importance of this legislation and the
  11-13  crowded condition of the calendars in both houses create an
  11-14  emergency and an imperative public necessity that the
  11-15  constitutional rule requiring bills to be read on three several
  11-16  days in each house be suspended, and this rule is hereby suspended.