By McClendon H.B. No. 1837 75R5205 JJT-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to requirements concerning beverage containers; providing 1-3 penalties. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subtitle B, Title 5, Health and Safety Code, is 1-6 amended by adding Chapter 374 to read as follows: 1-7 CHAPTER 374. BEVERAGE CONTAINER REFUNDS 1-8 Sec. 374.001. DEFINITIONS. In this chapter: 1-9 (1) "Beverage" means an alcoholic, nonalcoholic, 1-10 carbonated, or noncarbonated drink prepared in liquid form and 1-11 intended for human consumption. The term includes: 1-12 (A) beer; 1-13 (B) ale; 1-14 (C) malt liquor; 1-15 (D) other drinks produced by fermenting malt; 1-16 (E) spirits; 1-17 (F) wine; 1-18 (G) wine coolers; 1-19 (H) soda; 1-20 (I) water; 1-21 (J) carbonated water; or 1-22 (K) soft drinks. 1-23 (2) "Beverage container" means a glass, metal, or 1-24 plastic vessel that is hermetically sealed or capped and that 2-1 contains a beverage at the time it is sold or offered for sale. 2-2 (3) "Commission" means the Texas Natural Resource 2-3 Conservation Commission. 2-4 (4) "Distributor" means a person who distributes 2-5 beverages in beverage containers to retail dealers. 2-6 (5) "Retail dealer" means a person who sells beverages 2-7 in beverage containers to the public. 2-8 Sec. 374.002. REFUND VALUE AND LABEL REQUIRED. (a) Except 2-9 as provided by Subsection (b), a person may not sell or offer for 2-10 sale in this state a beverage container unless the container has a 2-11 refund value of five cents or more and is labeled as required by 2-12 Section 374.003. 2-13 (b) A person may sell or offer for sale a beverage container 2-14 that does not have a refund value if: 2-15 (1) the container has a fluid capacity of more than 2-16 one gallon; 2-17 (2) the container contains: 2-18 (A) a noncarbonated soft drink; 2-19 (B) a beverage that consists of milk or of fruit 2-20 or vegetable juice; or 2-21 (C) a beverage the primary protein source of 2-22 which is derived from soybeans and that does not contain an 2-23 additional flavoring ingredient; or 2-24 (3) the container is sold for use by a common carrier 2-25 in conducting passenger transport. 2-26 Sec. 374.003. LABELING. (a) A beverage container required 2-27 to have a refund value under Section 374.002 that is offered for 3-1 sale in this state must have legibly stamped, labeled, or embossed 3-2 on the container: 3-3 (1) the words "return for refund"; 3-4 (2) the refund value of the container; and 3-5 (3) the name "Texas" or the abbreviation "TX" or 3-6 "Tex." 3-7 (b) Subsection (a) does not apply to the sale of a 3-8 refillable glass beverage container that contains water or a soft 3-9 drink and that has a brand name permanently marked on the 3-10 container. 3-11 Sec. 374.004. VENDING MACHINE NOTICE. A person who operates 3-12 in this state a vending machine that sells beverage containers for 3-13 which a refund value is required by Section 374.002 shall post in a 3-14 conspicuous place on the machine a notice to purchasers that states 3-15 the refund value of the used beverage containers and the location 3-16 the vending machine operator provides at which the containers may 3-17 be returned for a refund. 3-18 Sec. 374.005. RETAIL DEALER REFUNDS. (a) Except as 3-19 otherwise provided by this section, a retail dealer shall accept a 3-20 used beverage container for which a refund value is required by 3-21 Section 374.002 that is of a kind, size, and brand sold by that 3-22 retail dealer and shall pay the refund value of the container in 3-23 cash to the person presenting the container if: 3-24 (1) the brand and refund value are ascertainable from 3-25 the container; or 3-26 (2) the container is an unbroken refillable glass 3-27 beverage container that is widely known in this state to have a 4-1 refund value of five cents or more. 4-2 (b) A retail dealer may refuse to accept and pay the refund 4-3 value for more than 48 used beverage containers presented by a 4-4 single person in one day. 4-5 (c) A retail dealer who sells beverages in beverage 4-6 containers solely for consumption on the retail dealer's premises 4-7 is not required to pay the refund value of a beverage container for 4-8 which a deposit has not been paid to the retailer. 4-9 Sec. 374.006. DISTRIBUTOR REFUNDS. (a) A distributor of 4-10 beverage containers shall pay the refund value in cash for a used 4-11 beverage container for which a refund value is required by Section 4-12 374.002 that is of a kind, size, and brand sold by that distributor 4-13 if: 4-14 (1) the brand name and refund value of the container 4-15 are ascertainable from the container; or 4-16 (2) the container is an unbroken refillable glass 4-17 beverage container that is widely known in this state to have a 4-18 refund value of five cents or more. 4-19 (b) Subsection (a) does not apply to the return of a 4-20 beverage container that was sold for use by a common carrier in 4-21 conducting passenger transport. 4-22 (c) In addition to the payment of the refund value, a 4-23 distributor shall reimburse the retail dealer or redemption center, 4-24 as applicable, for the cost of handling used beverage containers in 4-25 an amount that equals at least two cents for each returned 4-26 container. 4-27 (d) Each time a distributor delivers beverage containers to 5-1 a retail dealer, the distributor shall collect from the retail 5-2 dealer all returned beverage containers that are of a kind, brand, 5-3 and size sold by the distributor to the retail dealer. 5-4 Sec. 374.007. REFUSAL PERMITTED. A retail dealer or 5-5 distributor may refuse to accept for refund: 5-6 (1) a glass bottle that is broken to the extent that 5-7 it would present a safety hazard when handled; or 5-8 (2) a used beverage container that contains part of 5-9 its original contents or other foreign matter to the extent that it 5-10 could present health or sanitation problems. 5-11 Sec. 374.008. REDEMPTION CENTERS. A redemption center may 5-12 be established as a place for refund of deposits on beverage 5-13 containers in addition to, but not as a substitute for, retail 5-14 dealerships. 5-15 Sec. 374.009. WASTE CONTAINER FEE. (a) For each calendar 5-16 quarter, a distributor shall account for the number of beverage 5-17 containers sold and the number of beverage containers for the 5-18 return of which the distributor paid a refund to a retailer, 5-19 collection center, or other person. 5-20 (b) If a distributor paid a refund for fewer returned 5-21 beverage containers in a calendar quarter than the distributor sold 5-22 in the preceding calendar quarter, the distributor shall pay a fee 5-23 of two and one-half cents for each beverage container that 5-24 represents the difference between the number of containers sold and 5-25 the number of containers returned. 5-26 (c) On the first day of each calendar quarter, according to 5-27 rules adopted and with forms and reports required by the 6-1 commission, a distributor shall pay to the state treasurer the 6-2 waste container fee required by Subsection (b). 6-3 (d) Money paid to the state treasurer under Subsection (c) 6-4 shall be deposited in the state treasury to the credit of the 6-5 municipal solid waste management planning fund established by 6-6 Section 363.091. 6-7 Sec. 374.010. REIMBURSEMENT FOR REFUND OVERPAYMENT. A 6-8 distributor who, in a calendar year, pays to other persons the 6-9 refund values for more returned beverage containers than the 6-10 distributor sells in that calendar year may apply to the 6-11 comptroller for reimbursement on forms and with documentation 6-12 required by the commission. The comptroller shall reimburse a 6-13 distributor five cents for each beverage container that represents 6-14 the difference between the number of containers sold and the number 6-15 of containers for which the distributor paid a refund. 6-16 Reimbursement amounts shall be paid out of the municipal solid 6-17 waste management planning fund established by Section 363.091. 6-18 Sec. 374.011. CRIMINAL PENALTIES. (a) A person commits an 6-19 offense if the person intentionally violates Section 374.002, 6-20 374.004, or 374.005. An offense under this subsection is a Class C 6-21 misdemeanor. 6-22 (b) A person commits an offense if the person intentionally 6-23 violates Section 374.006 or 374.009. An offense under this 6-24 subsection is a Class B misdemeanor. 6-25 Sec. 374.012. ADMINISTRATION. The commission shall 6-26 administer and enforce this chapter and may adopt rules and forms 6-27 necessary to carry out the purposes of this chapter. 7-1 SECTION 2. (a) This Act takes effect September 1, 1997. 7-2 (b) Not later than December 1, 1997, the Texas Natural 7-3 Resource Conservation Commission and the comptroller of public 7-4 accounts shall adopt the rules necessary to administer Chapter 374, 7-5 Health and Safety Code, as added by this Act. 7-6 (c) The requirements of and penalties provided by Chapter 7-7 374, Health and Safety Code, as added by this Act, do not apply to 7-8 any person before January 1, 1998. 7-9 SECTION 3. The importance of this legislation and the 7-10 crowded condition of the calendars in both houses create an 7-11 emergency and an imperative public necessity that the 7-12 constitutional rule requiring bills to be read on three several 7-13 days in each house be suspended, and this rule is hereby suspended.