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.