By Madla S.B. No. 1287 74R3484 JJT-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the imposition of a fee on the sale of oil filters and 1-3 to oil filter recycling. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter N, Chapter 361, Health and Safety 1-6 Code, is amended by adding Section 361.432 to read as follows: 1-7 Sec. 361.432. FEE ON SALE OF OIL FILTERS. (a) A person 1-8 who, at wholesale or retail, sells an oil filter not for resale or 1-9 who sells an oil filter in connection with the maintenance of an 1-10 internal combustion engine shall collect at the time and place of 1-11 sale a fee in the amount of 50 cents for each oil filter sold. 1-12 (b) A person required to collect a fee under this section: 1-13 (1) shall list as a separate item on an invoice a fee 1-14 due under this section; and 1-15 (2) except as provided by Subsection (c), on or before 1-16 the 20th day of the month following the end of each calendar month 1-17 and on a form and in the manner prescribed by the comptroller, 1-18 shall file a report with and shall remit to the comptroller the 1-19 amount of fees collected during the preceding calendar month. 1-20 (c) A person required to collect a fee under this section 1-21 who collects less than $50 for a calendar month or less than $150 1-22 for a calendar quarter is not required to file a monthly report but 1-23 shall file a quarterly report with and make a quarterly remittance 1-24 to the comptroller. The quarterly report and remittance shall 2-1 include fees collected during the preceding calendar quarter. The 2-2 report and remittance are due not later than the 20th day following 2-3 the end of the calendar quarter. 2-4 (d) An invoice or other record required by this section or 2-5 rules of the comptroller must be maintained for at least four years 2-6 after the date on which the invoice or record is prepared and be 2-7 available for inspection by the comptroller at all reasonable 2-8 times. 2-9 (e) The comptroller shall adopt rules necessary for the 2-10 administration, collection, reporting, and payment of the fees 2-11 payable or collected under this section. 2-12 (f) A person who does not file a report as provided by this 2-13 section or who possesses a fee collected or payable under this 2-14 section and who does not remit the fee to the comptroller at the 2-15 time and in the manner required by this section and the rules of 2-16 the comptroller shall pay a penalty of five percent of the amount 2-17 of the fee due and payable. If the person does not file the report 2-18 or pay the fee before the 30th day after the date on which the fee 2-19 or report is due, the person shall pay a penalty of an additional 2-20 five percent of the amount of the fee due and payable. 2-21 (g) Except as provided in this section, the provisions of 2-22 Chapters 101 and 111-113, Tax Code, apply to the administration, 2-23 payment, collection, and enforcement of fees under this section in 2-24 the same manner that those provisions apply to the administration, 2-25 payment, collection, and enforcement of taxes under Title 2, Tax 2-26 Code. 2-27 (h) A person required to collect a fee under this section 3-1 may retain two and one-half cents from each fee the dealer 3-2 collects. A dealer shall account for amounts retained under this 3-3 subsection in the manner prescribed by the comptroller. 3-4 (i) The comptroller may deduct a percentage of the fees 3-5 collected under this section, not to exceed four percent of 3-6 receipts, to pay the reasonable and necessary costs of 3-7 administering and enforcing this section. The comptroller shall 3-8 credit the amount deducted to the general revenue fund. The 3-9 comptroller shall divide the balance of the fees, penalties, and 3-10 interest the comptroller collects under this section for deposit 3-11 into two special accounts in the hazardous and solid waste 3-12 remediation fee fund. The comptroller shall deposit one-half of 3-13 the money into an account that may be used only for administration 3-14 of programs related to oil filter collection or recycling, but at 3-15 the end of each fiscal biennium money in that account may be used 3-16 for any purpose permitted for the fund. The comptroller shall 3-17 deposit one-half of the money into an account that may be used only 3-18 for community grants or research for used oil filter collection, 3-19 recycling, and market development and for the support of a used oil 3-20 filter collection facility or program. 3-21 (j) In this section, "oil filter" means any disposable 3-22 device designed for use as a filter for the oil supply of an 3-23 internal combustion engine. 3-24 SECTION 2. Section 361.423(b), Health and Safety Code, is 3-25 amended to read as follows: 3-26 (b) The Recycling Market Development Board, on an ongoing 3-27 basis, shall: 4-1 (1) identify existing economic and regulatory 4-2 incentives and disincentives for creating an optimal market 4-3 development strategy; 4-4 (2) analyze the market development implications of: 4-5 (A) the state's waste management policies and 4-6 regulations; 4-7 (B) existing and potential markets for plastic, 4-8 glass, paper, lead-acid batteries, tires, compost, scrap gypsum, 4-9 coal combustion by-products, oil filters, and other recyclable 4-10 materials; and 4-11 (C) the state's tax structure and overall 4-12 economic base; 4-13 (3) examine and make policy recommendations regarding 4-14 the need for changes in or the development of: 4-15 (A) economic policies that affect 4-16 transportation, such as those embodied in freight rate schedules; 4-17 (B) tax incentives and disincentives; 4-18 (C) the availability of financial capital 4-19 including grants, loans, and venture capital; 4-20 (D) enterprise zones; 4-21 (E) managerial and technical assistance; 4-22 (F) job-training programs; 4-23 (G) strategies for matching market supply and 4-24 market demand for recyclable materials, including intrastate and 4-25 interstate coordination; 4-26 (H) the state recycling goal; 4-27 (I) public-private partnerships; 5-1 (J) research and development; 5-2 (K) government procurement policies; 5-3 (L) educational programs for the public, 5-4 corporate and regulated communities, and government entities; and 5-5 (M) public health and safety regulatory 5-6 policies; 5-7 (4) establish a comprehensive statewide strategy to 5-8 expand markets for recycled products in Texas; 5-9 (5) provide information and technical assistance to 5-10 small and disadvantaged businesses, business development centers, 5-11 chambers of commerce, educational institutions, and nonprofit 5-12 associations on market opportunities in the area of recycling; and 5-13 (6) with the cooperation of the Office of 5-14 State-Federal Relations, assist communities and private entities in 5-15 identifying state and federal grants pertaining to recycling and 5-16 solid waste management. 5-17 SECTION 3. This Act takes effect January 1, 1996. 5-18 SECTION 4. The importance of this legislation and the 5-19 crowded condition of the calendars in both houses create an 5-20 emergency and an imperative public necessity that the 5-21 constitutional rule requiring bills to be read on three several 5-22 days in each house be suspended, and this rule is hereby suspended.