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