1-1 By: Parker S.B. No. 1225
1-2 (In the Senate - Filed March 12, 1993; March 16, 1993, read
1-3 first time and referred to Committee on Economic Development;
1-4 April 15, 1993, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 7, Nays 0; April 15, 1993,
1-6 sent to printer.)
1-7 COMMITTEE VOTE
1-8 Yea Nay PNV Absent
1-9 Parker x
1-10 Lucio x
1-11 Ellis x
1-12 Haley x
1-13 Harris of Dallas x
1-14 Harris of Tarrant x
1-15 Leedom x
1-16 Madla x
1-17 Rosson x
1-18 Shapiro x
1-19 Wentworth x
1-20 COMMITTEE SUBSTITUTE FOR S.B. No. 1225 By: Parker
1-21 A BILL TO BE ENTITLED
1-22 AN ACT
1-23 relating to setting state goals, standards, and fees for used oil
1-24 and solid waste.
1-25 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-26 SECTION 1. Section 361.421, Health and Safety Code, is
1-27 amended to read as follows:
1-28 Sec. 361.421. Definitions. In this subchapter:
1-29 (1) "Compost" is the disinfected and stabilized
1-30 product of the decomposition process that is used or sold for use
1-31 as a soil amendment, artificial top soil, growing medium amendment,
1-32 or other similar uses.
1-33 (2) "Composting" means the controlled biological
1-34 decomposition of organic materials through microbial activity.
1-35 Depending on the specific application, composting can serve as both
1-36 a volume reduction and a waste treatment measure. A beneficial
1-37 organic composting activity is an appropriate waste management
1-38 solution that shall divert compatible materials from the solid
1-39 waste stream that cannot be recycled into higher grade uses and
1-40 convert these materials into a useful product that is put to
1-41 beneficial reuse <can serve> as a soil amendment or mulch.
1-42 (3) "Life-cycle cost benefit analysis" means a method
1-43 of determining <comparing> the total equivalent costs and benefits
1-44 of using products over their lifetimes or over any other period of
1-45 time. These costs and benefits are all associated costs and all
1-46 associated benefits of each product over the time period under
1-47 consideration and include but are not limited to initial costs,
1-48 annual operating costs, annual savings, future costs, and residual
1-49 (salvage) values. The use of this method permits exact
1-50 comparisons of these total costs and benefits to determine the most
1-51 cost-effective <based on initial maintenance costs which include
1-52 the initial cost, maintenance costs, and other related expenses>.
1-53 (4) "Postconsumer waste" means a material or product
1-54 that has served its intended use and has been discarded after
1-55 passing through the hands of a final user. For the purpose of this
1-56 subchapter, the term does not include industrial or hazardous
1-57 waste.
1-58 (5) "Recyclable material" means material that has been
1-59 recovered or diverted from the <non-hazardous> solid waste stream
1-60 for purposes of reuse, recycling, or reclamation, a substantial
1-61 portion of which is consistently used in the manufacture of
1-62 products which may otherwise be produced using raw or virgin
1-63 materials. Recyclable material is not solid waste unless such
1-64 material is deemed to be hazardous solid waste by the Administrator
1-65 of the United States Environmental Protection Agency, whereupon it
1-66 shall be regulated accordingly unless it is otherwise exempted in
1-67 whole or in part from regulation under the federal Solid Waste
1-68 Disposal Act, as amended by the Resource Conservation and Recovery
2-1 Act of 1976 (42 U.S.C. Section 6901 et seq.), by Environmental
2-2 Protection Agency regulation. However, recyclable material may
2-3 become solid waste at such time, if any, as it is abandoned or
2-4 disposed of rather than recycled, whereupon it will be solid waste
2-5 with respect only to the party actually abandoning or disposing of
2-6 the material.
2-7 (6) "Recycled material" means materials, goods, or
2-8 products that consist of recyclable material or materials derived
2-9 from postconsumer waste, industrial waste, or hazardous waste which
2-10 may be used in place of a raw or virgin material in manufacturing a
2-11 new product.
2-12 (7) "Recycled product" means a product which meets the
2-13 requirements for recycled material content as prescribed by the
2-14 rules established by the department described in Section 361.427.
2-15 (8) "Recycling" means a process by which materials
2-16 that have served their intended use or are scrapped, discarded,
2-17 used, surplus, or obsolete are collected, separated, or processed
2-18 and returned to use in the form of raw materials in the production
2-19 of new products. Recycling <Except for mixed municipal solid waste
2-20 composting, that is, composting of the typical mixed solid waste
2-21 stream generated by residential, commercial, and/or institutional
2-22 sources, recycling> includes the composting process if the compost
2-23 material is put to beneficial reuse as defined by the Texas Water
2-24 Commission.
2-25 (9) "Source reduction" means an activity or process
2-26 that avoids the creation of municipal solid waste in the state by
2-27 reducing waste at the source. The term includes redesigning
2-28 products or packaging so that less material is disposed of,
2-29 changing a process of producing a product or providing a service so
2-30 that less material is disposed of, or making behavioral changes in
2-31 the use of materials that reduce the amount of waste generated.
2-32 (10) "State agency" means a department, commission,
2-33 board, office, council, or other agency in the executive branch of
2-34 government that is created by the constitution or a statute of this
2-35 state and has authority not limited to a geographical portion of
2-36 the state. The term does not include a university system or
2-37 institution of higher education as defined by Section 61.003,
2-38 Education Code.
2-39 (11) <(10)> "Virgin material" means a raw material
2-40 used in manufacturing that has not yet become a product.
2-41 (12) <(11)> "Yard waste" means leaves, grass
2-42 clippings, yard and garden debris, and brush, including clean woody
2-43 vegetative material not greater than six inches in diameter, that
2-44 results from landscaping maintenance and land-clearing operations.
2-45 The term does not include stumps, roots, or shrubs with intact root
2-46 balls.
2-47 SECTION 2. Section 361.422, Health and Safety Code, is
2-48 amended to read as follows:
2-49 Sec. 361.422. STATE SOURCE REDUCTION AND RECYCLING GOAL.
2-50 (a) It is the state's goal to reduce <achieve by January 1, 1994,
2-51 the recycling of at least 40 percent of> the state's total
2-52 municipal solid waste stream that is disposed of as solid waste by
2-53 at least 40 percent by January 1, 1994, through source reduction
2-54 and recycling.
2-55 (b) In this section, "total municipal solid waste stream"
2-56 means the sum of the state's total municipal solid waste that is
2-57 disposed of as solid waste, measured in tons, and the total number
2-58 of tons of recyclable material that has been diverted or recovered
2-59 from the total municipal solid waste and recycled.
2-60 (c) The <By January 1, 1992, the> department shall establish
2-61 rules and reporting requirements through which progress toward
2-62 achieving the established source reduction and recycling goals can
2-63 be measured. The rules may take into consideration those ongoing
2-64 community source reduction and recycling programs where substantial
2-65 progress has already been achieved. The department may also
2-66 establish a limit on the amount of credit that may be given to
2-67 certain high-volume materials in measuring recycling progress.
2-68 (d) The baseline for the purpose of measuring progress
2-69 toward the municipal solid waste reduction goal shall be the weight
2-70 of the total municipal solid waste stream in 1991. To calculate
3-1 progress toward the municipal solid waste reduction goal for the
3-2 year under comparison, the department shall:
3-3 (1) calculate the total number of tons of recyclable
3-4 material that has been diverted or recovered from the total
3-5 municipal solid waste stream and recycled; and
3-6 (2) calculate the amount by which the total municipal
3-7 solid waste stream has been reduced through source reduction.
3-8 (e) To calculate the amount of waste reduced through source
3-9 reduction, the department may use the results of studies, surveys,
3-10 or reports of the source reduction activities of businesses,
3-11 communities, and other sources of municipal solid waste. The
3-12 department also may estimate the amount of waste reduced through
3-13 source reduction by adjusting the total municipal solid waste
3-14 stream in the comparison year for changes in economic activity that
3-15 contributes to municipal solid waste, for changes in population,
3-16 and for other relevant changes between the baseline year and the
3-17 comparison year. The difference between the actual and the
3-18 adjusted total municipal solid waste stream may be attributed to
3-19 source reduction activities.
3-20 SECTION 3. Section 361.425, Health and Safety Code, is
3-21 amended by amending Subsection (a) and adding Subsection (d) to
3-22 read as follows:
3-23 (a) A state agency, state court or judicial agency, a
3-24 university system or institution of higher education, a county,
3-25 municipality, school district, or special district shall:
3-26 (1) in cooperation with the <State Purchasing and>
3-27 General Services Commission or the department establish a program
3-28 for the separation and collection of all recyclable materials
3-29 generated by the entity's operations, including, at a minimum,
3-30 aluminum, steel containers, aseptic packaging and polycoated
3-31 paperboard cartons, high-grade office paper, and corrugated
3-32 cardboard;
3-33 (2) provide procedures for collecting and storing
3-34 recyclable materials, containers for recyclable materials, and
3-35 procedures for making contractual or other arrangements with buyers
3-36 of recyclable materials;
3-37 (3) evaluate the amount of recyclable material
3-38 recycled and modify the recycling program as necessary to ensure
3-39 that all recyclable materials are effectively and practicably
3-40 recycled; and
3-41 (4) establish educational and incentive programs to
3-42 encourage maximum employee participation.
3-43 (d) In this section, "recyclable materials" includes
3-44 materials in the entity's possession that have been abandoned or
3-45 disposed of by the entity's officers or employees or by any other
3-46 person.
3-47 SECTION 4. Subdivision (1), Section 371.003, Health and
3-48 Safety Code, is amended to read as follows:
3-49 (1) "Automotive oil" means any lubricating oils
3-50 intended for use in an internal combustion engine, crankcase,
3-51 transmission, gear box, or differential for an automobile, bus, or
3-52 truck. The term includes oil that is not labeled specifically for
3-53 such use but is suitable for such use according to generally
3-54 accepted industry specifications.
3-55 SECTION 5. Section 371.062, Health and Safety Code, is
3-56 amended to read as follows:
3-57 Sec. 371.062. Fee on Sale of Automotive Oil. (a) In this
3-58 section:
3-59 (1) "First sale" means the first actual sale of
3-60 automotive oil delivered to a location in this state and sold to a
3-61 purchaser who is not an automotive oil manufacturer. The term does
3-62 not include the sale of automotive oil exported from this state to
3-63 a location outside this state for the purpose of sale or use
3-64 outside this state. This term does not include sales of automotive
3-65 oils for resale to or use by vessels exclusively engaged in foreign
3-66 or interstate commerce.
3-67 (2) "Importer" means any person who imports or causes
3-68 to be imported automotive oil into this state for sale, use, or
3-69 consumption.
3-70 (3) "Oil manufacturer" means any person or entity that
4-1 formulates automotive oil and packages, distributes, or sells that
4-2 automotive oil. The term includes any person packaging or
4-3 repackaging automotive oil.
4-4 (b) An oil manufacturer <or importer> who makes a first sale
4-5 of automotive oil is liable for a fee.
4-6 (c) An oil importer who imports or causes to be imported
4-7 automotive oil is liable for the fee at the time the oil is
4-8 received.
4-9 (d) An oil distributor or retailer who exports from this
4-10 state to a location outside this state oil on which the automotive
4-11 oil fee has been paid may request from his supplier a refund or
4-12 credit of the fee paid on the exported oil. The supplier or oil
4-13 manufacturer and the importer may in turn request a refund of the
4-14 fee paid to the comptroller. The amount of refund that may be
4-15 claimed under this section may equal but not exceed the amount of
4-16 the fee paid on the automotive oil.
4-17 (e) An oil manufacturer, importer, distributor, or retailer
4-18 who makes a sale to a vessel or a sale for resale to a vessel of
4-19 automotive oil on which the automotive oil fee has been paid may
4-20 file with the comptroller a request for refund of the fee paid on
4-21 the oil or, where applicable, may request a refund or credit from
4-22 the supplier to whom the fee was paid. The supplier may in turn
4-23 request a refund from the comptroller. The amount of refund that
4-24 may be claimed under this section may equal but not exceed the
4-25 amount of the fee paid on the automotive oil.
4-26 (f) Each oil manufacturer or importer required to pay a fee
4-27 under this section shall:
4-28 (1) prepare and maintain, on a form provided or
4-29 approved by the comptroller, a report of each first sale or, in the
4-30 case of an importer, the first receipt in Texas of automotive oil
4-31 by the person and the price received;
4-32 (2) retain the invoice or a copy of the invoice or
4-33 other appropriate record of the sale or receipt for four years from
4-34 the date of sale or receipt; and
4-35 (3) on or before the 25th day of the month following
4-36 the end of each calendar quarter, file a report with the
4-37 comptroller and remit to the comptroller the amount of fees
4-38 required to be paid for the preceding quarter.
4-39 (g) <(d)> Records required to be maintained under Subsection
4-40 (f) <(c)> shall be available for inspection by the comptroller at
4-41 all reasonable times.
4-42 (h) <(e)> The comptroller shall adopt rules necessary for
4-43 the administration, collection, reporting, and payment of the fees
4-44 payable or collected under this section.
4-45 (i) <(f)> Except as provided by this section, Chapters 101
4-46 and 111 through 113, Tax Code, apply to the administration,
4-47 payment, collection, and enforcement of fees under this section in
4-48 the same manner that those chapters apply to the administration,
4-49 payment, collection, and enforcement of taxes under Title 2, Tax
4-50 Code.
4-51 (j) <(g)> The fee imposed under this section is two cents
4-52 per quart or eight cents per gallon of automotive oil. The
4-53 department shall monitor the unobligated balance of the used oil
4-54 recycling fund and shall, by rule, adjust the fee rate to meet
4-55 expenditure requirements of the used oil recycling program and to
4-56 maintain an appropriate fund balance. The fee imposed under this
4-57 section may not exceed five cents per quart or 20 cents per gallon
4-58 of automotive oil. The department shall notify the comptroller of
4-59 a fee rate adjustment at least 90 days prior to the effective date
4-60 of the new fee rate. <On or before September 1 of each year, the
4-61 department and the comptroller jointly shall issue notice of the
4-62 effective fee rate for the next fiscal year.>
4-63 (k) <(h)> A person required to pay a fee under this section
4-64 may retain one percent of the amount of the fees due from each
4-65 quarterly payment as reimbursement for administrative costs.
4-66 (l) <(i)> The comptroller may deduct a percentage of the
4-67 fees collected under this section in an amount sufficient to pay
4-68 the reasonable and necessary costs of administering and enforcing
4-69 this section. The comptroller shall credit the amount deducted to
4-70 the general revenue fund. The balance of fees and all penalties
5-1 and interest collected under this section shall be deposited to the
5-2 credit of the used oil recycling fund.
5-3 SECTION 6. This Act takes effect October 1, 1993.
5-4 SECTION 7. The importance of this legislation and the
5-5 crowded condition of the calendars in both houses create an
5-6 emergency and an imperative public necessity that the
5-7 constitutional rule requiring bills to be read on three several
5-8 days in each house be suspended, and this rule is hereby suspended.
5-9 * * * * *
5-10 Austin,
5-11 Texas
5-12 April 15, 1993
5-13 Hon. Bob Bullock
5-14 President of the Senate
5-15 Sir:
5-16 We, your Committee on Economic Development to which was referred
5-17 S.B. No. 1225, have had the same under consideration, and I am
5-18 instructed to report it back to the Senate with the recommendation
5-19 that it do not pass, but that the Committee Substitute adopted in
5-20 lieu thereof do pass and be printed.
5-21 Parker,
5-22 Chairman
5-23 * * * * *
5-24 WITNESSES
5-25 FOR AGAINST ON
5-26 ___________________________________________________________________
5-27 Name: Jim AuBuchon x
5-28 Representing: Commercial Metals Company
5-29 City: Dallas
5-30 -------------------------------------------------------------------
5-31 Name: Blanton Moore x
5-32 Representing: Bedminster Corp.
5-33 City: Austin
5-34 -------------------------------------------------------------------
5-35 Name: Gary Gallo x
5-36 Representing: Steel Can Recycling Institute
5-37 City: Houston
5-38 -------------------------------------------------------------------
5-39 Name: Hayden W. Denham, Jr. x
5-40 Representing: State Comptroller
5-41 City: Austin
5-42 -------------------------------------------------------------------
5-43 Name: Patrice "Pete" Parsons x
5-44 Representing: General Services Commission
5-45 City: Austin
5-46 -------------------------------------------------------------------
5-47 Name: Susan Kaderka x
5-48 Representing: Texas Water Commission
5-49 City: Austin
5-50 -------------------------------------------------------------------
5-51 Name: Kitty Coley x
5-52 Representing: Texas Water Commission
5-53 City: Austin
5-54 -------------------------------------------------------------------
5-55 Name: Jim Haley x
5-56 Representing: TWC
5-57 City: Austin
5-58 -------------------------------------------------------------------
5-59 Name: John C. Poulano x
5-60 Representing: GSC
5-61 City: Austin
5-62 -------------------------------------------------------------------