By Moncrief S.B. No. 1241
77R5434 JAT-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to beverage container redemption and recycling; 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 REDEMPTION AND RECYCLING
1-8 SUBCHAPTER A. GENERAL PROVISIONS
1-9 Sec. 374.001. DEFINITIONS. In this chapter:
1-10 (1) "Beverage" means an alcoholic, nonalcoholic,
1-11 carbonated, or noncarbonated drink prepared in liquid,
1-12 ready-to-drink form and intended for human consumption. The term
1-13 includes:
1-14 (A) beer;
1-15 (B) ale;
1-16 (C) malt liquor;
1-17 (D) other drinks produced by fermenting malt;
1-18 (E) spirits;
1-19 (F) wine;
1-20 (G) wine coolers;
1-21 (H) soda;
1-22 (I) water, including mineral water;
1-23 (J) carbonated water, including carbonated
1-24 mineral water;
2-1 (K) carbonated soft drinks;
2-2 (L) noncarbonated soft drinks and sport drinks;
2-3 (M) noncarbonated fruit drinks;
2-4 (N) coffee and tea drinks; and
2-5 (O) carbonated fruit drinks.
2-6 (2) "Beverage container" means a glass, metal, or
2-7 plastic vessel that is hermetically sealed or capped and that
2-8 contains a beverage at the time it is sold or offered for sale.
2-9 The term does not include cans or cups made primarily of aluminum.
2-10 (3) "Commission" means the Texas Natural Resource
2-11 Conservation Commission.
2-12 (4) "Consumer" means a person who purchases a beverage
2-13 in a beverage container for the person's own use or consumption.
2-14 The term includes a lodging, eating, or drinking establishment if
2-15 beverages are generally consumed on the establishment's premises
2-16 and does not include a person who purchases the beverage from the
2-17 establishment for consumption on the premises.
2-18 (5) "Infant formula" means any liquid food sold as an
2-19 alternative for human milk for the feeding of infants.
2-20 (6) "Medical food" means a food or beverage that is
2-21 formulated to be consumed or administered under the supervision of
2-22 a physician and that is intended for specific dietary management of
2-23 diseases or health conditions for which distinctive nutritional
2-24 requirements, based on recognized scientific principles, are
2-25 established by medical evaluation. The term also includes any
2-26 product that meets the definition of "medical food" under the Food,
2-27 Drug, and Cosmetic Act, 21 U.S.C. Section 360ee(b)(3), as amended.
3-1 (7) "Redemption center" means an operation certified
3-2 by the commission or by a council of governments under Section
3-3 374.154 to redeem beverage containers under this chapter.
3-4 (8) "Refund" means a payment by a redemption center
3-5 under Section 374.201 to a person who presents a beverage container
3-6 at the redemption center.
3-7 (9) "Retail dealer" means a person who sells a
3-8 beverage in a beverage container to a consumer.
3-9 Sec. 374.002. PROGRAM ADMINISTRATION. The commission shall
3-10 establish a beverage container redemption and recycling program to
3-11 be administered in accordance with this chapter. The commission
3-12 shall administer and enforce this chapter and may adopt rules and
3-13 forms necessary to carry out the purposes of this chapter.
3-14 Sec. 374.003. CRIMINAL PENALTIES. A person commits an
3-15 offense if the person knowingly violates Section 374.051, 374.101,
3-16 374.156, or 374.201. An offense under this section is a Class C
3-17 misdemeanor.
3-18 Sec. 374.004. REPORT TO LEGISLATURE. The commission shall
3-19 include information on the beverage container redemption and
3-20 recycling program established under this chapter as part of its
3-21 annual report to the legislature under Section 5.178, Water Code.
3-22 (Sections 374.005-374.050 reserved for expansion
3-23 SUBCHAPTER B. REFUND VALUE AND LABELING OF BEVERAGE CONTAINERS
3-24 Sec. 374.051. REFUND VALUE AND LABEL REQUIRED. (a) Except
3-25 as provided by Subsection (b), a person may not sell or offer for
3-26 sale in this state a beverage container unless the container has a
3-27 refund value of five cents or more and is labeled as required by
4-1 Section 374.052.
4-2 (b) A person may sell or offer for sale a beverage container
4-3 that does not have a refund value if:
4-4 (1) the container has a fluid capacity of more than
4-5 one gallon;
4-6 (2) the container contains:
4-7 (A) a beverage that consists of milk or of 100
4-8 percent fruit or vegetable juice; or
4-9 (B) medical food or infant formula; or
4-10 (3) the container is sold for use by a common carrier
4-11 in conducting passenger transport.
4-12 Sec. 374.052. LABELING. (a) A beverage container required
4-13 to have a refund value under Section 374.051 that is offered for
4-14 sale in this state must have legibly stamped, labeled, or embossed
4-15 on the container:
4-16 (1) the words "return for refund";
4-17 (2) the refund value of the container;
4-18 (3) the name "Texas" or the abbreviation "TX" or
4-19 "Tex."; and
4-20 (4) other language as required by the commission.
4-21 (b) The commission may require that any beverage container
4-22 intended for sale in this state be printed, embossed, stamped,
4-23 labeled, or otherwise marked with a universal product code or
4-24 similar machine-readable indicia.
4-25 (c) Subsection (a) does not apply to the sale of a
4-26 refillable glass beverage container that contains water or a soft
4-27 drink and that has a brand name permanently marked on the
5-1 container.
5-2 (Sections 374.053-374.100 reserved for expansion
5-3 SUBCHAPTER C. COLLECTION OF REDEMPTION FEE
5-4 Sec. 374.101. COLLECTION AND REMITTANCE BY RETAIL DEALER.
5-5 (a) A retail dealer shall collect a redemption fee of five cents
5-6 from a consumer for each beverage container that the retail dealer
5-7 sells to the consumer.
5-8 (b) The retail dealer shall remit to the comptroller 4.75
5-9 cents of each five-cent redemption fee the retail dealer collects
5-10 under Subsection (a). The retail dealer may retain one quarter of
5-11 one cent for the retail dealer's administrative costs.
5-12 (c) Subject to Subsection (d), the comptroller by rule shall
5-13 adopt procedures for remitting the redemption fee under Subsection
5-14 (b).
5-15 (d) A retail dealer may, on approval of the comptroller,
5-16 elect to remit the redemption fee annually if the retail dealer's
5-17 projected remittance for a calendar year totals less than $10,000.
5-18 The retail dealer shall make an annual redemption remittance under
5-19 this subsection not later than February 1 of the year immediately
5-20 following the year for which the remittance is being made. A
5-21 retail dealer shall notify the comptroller of its intent to make an
5-22 annual redemption remittance under this subsection not later than
5-23 January 31 of the year for which the annual remittance will be
5-24 made.
5-25 Sec. 374.102. ANNUAL REPORT. (a) Not later than March 1 of
5-26 each year a retail dealer who collects a redemption fee under
5-27 Section 374.101 shall report to the comptroller, on a form approved
6-1 by the comptroller, the total amount of fees collected under
6-2 Section 374.101 for the calendar year immediately preceding the
6-3 year in which the report is filed.
6-4 (b) The comptroller may require the retail dealer to include
6-5 in the report required by Subsection (a) other information the
6-6 comptroller considers necessary to ensure timely and accurate
6-7 remittance under Section 374.101.
6-8 Sec. 374.103. TEXAS BEVERAGE REDEMPTION AND RECYCLING
6-9 ACCOUNT. (a) Fees collected under this subchapter shall be
6-10 deposited to the credit of the Texas beverage redemption and
6-11 recycling account in the general revenue fund and may be
6-12 appropriated to the commission only for:
6-13 (1) reimbursement and handling fees paid to redemption
6-14 centers;
6-15 (2) administration of this chapter; and
6-16 (3) the purposes authorized under Subsection (b).
6-17 (b) Each quarter, after setting aside amounts for
6-18 reimbursement and handling fees paid to redemption centers, for the
6-19 administration of this chapter, and for a reserve amount
6-20 established under Subsection (c), the commission shall allocate
6-21 money in the Texas beverage container redemption and recycling
6-22 account under this section for:
6-23 (1) grants to councils of governments to:
6-24 (A) operate the program under this chapter; and
6-25 (B) finance the purchase of redemption center
6-26 infrastructure;
6-27 (2) grants to local governments to promote litter
7-1 abatement and encourage recycling;
7-2 (3) research and development of markets for and
7-3 products made from used beverage containers redeemed under this
7-4 chapter;
7-5 (4) public education about the program established
7-6 under this chapter; and
7-7 (5) other litter reduction strategies.
7-8 (c) The commission shall ensure that the Texas beverage
7-9 container redemption and recycling account contains a reserve
7-10 amount to be used for contingencies that is equal to:
7-11 (1) five percent of the total amount paid to
7-12 redemption centers under Section 374.204 in the preceding calendar
7-13 year; and
7-14 (2) any amount of interest earned on the amount
7-15 reserved under Subdivision (1).
7-16 (Sections 374.104-374.150 reserved for expansion
7-17 SUBCHAPTER D. REDEMPTION CENTERS
7-18 Sec. 374.151. DELEGATION TO COUNCIL OF GOVERNMENTS. (a) The
7-19 commission may delegate to a council of governments the
7-20 establishment and certification of redemption centers.
7-21 (b) A council of governments may apply for and use grant
7-22 funds from the commission to establish and certify redemption
7-23 centers under this section.
7-24 Sec. 374.152. REDEMPTION ZONES AND LOCATION OF REDEMPTION
7-25 CENTERS. (a) The commission annually shall designate redemption
7-26 zones throughout the state and shall ensure that at least one
7-27 redemption center is located in each redemption zone. The
8-1 commission may consult with councils of governments in designating
8-2 redemption zones under this section.
8-3 (b) If practicable, the commission shall designate as a
8-4 redemption zone an area within a one-half mile radius of a retail
8-5 food store, as that term is defined under Section 437.001.
8-6 (c) If designation under Subsection (b) is not practicable,
8-7 the commission may designate redemption zones based on other
8-8 appropriate criteria, including population ratios and the number of
8-9 retail dealers located in an area.
8-10 Sec. 374.153. ESTABLISHMENT OF REDEMPTION CENTERS. (a) The
8-11 commission on its own or through a council of governments shall
8-12 contract with a private entity, including a retail dealer, a
8-13 nonprofit entity, or a local government or a combination of
8-14 private, nonprofit, or local government entities to operate a
8-15 certified redemption center in each redemption zone.
8-16 (b) The commission shall establish temporary alternative
8-17 redemption options for a redemption zone without a redemption
8-18 center until the commission or the council of governments contracts
8-19 with another entity to establish and operate a redemption center.
8-20 (c) The commission or a council of governments shall
8-21 establish and enforce audit procedures to ensure that a redemption
8-22 center is in compliance with the contract between the redemption
8-23 center and the commission or the council of governments.
8-24 (d) A council of governments that contracts with a private
8-25 entity to establish a redemption center shall ensure that the
8-26 private entity complies with commission rules relating to
8-27 certification of redemption centers under Section 374.154.
9-1 Sec. 374.154. CERTIFICATION OF REDEMPTION CENTERS. (a) The
9-2 commission by rule shall adopt a procedure for the certification of
9-3 redemption centers, including standards and requirements for
9-4 certification.
9-5 (b) The commission may delegate certification of redemption
9-6 centers to individual councils of governments.
9-7 (c) Rules adopted under Subsection (a) shall require the
9-8 operator of a redemption center to:
9-9 (1) provide any information required for certification
9-10 under the penalty of perjury;
9-11 (2) demonstrate that the operator will operate the
9-12 redemption center in accordance with this chapter; and
9-13 (3) promptly notify the commission or council of
9-14 governments, as appropriate, of any material change in the nature
9-15 of the operation that conflicts with information submitted in the
9-16 operator's application for certification.
9-17 Sec. 374.155. OPERATION OF REDEMPTION CENTERS. (a) The
9-18 commission shall adopt rules for the operation of a redemption
9-19 center.
9-20 (b) Rules adopted under Subsection (a) shall require a
9-21 redemption center to:
9-22 (1) reject for refund drink packaging material or a
9-23 beverage container or other product that does not have the refund
9-24 value established by Section 374.051;
9-25 (2) act to prevent payment of a refund for a beverage
9-26 container that does not have a refund value established by Section
9-27 374.051;
10-1 (3) reject for refund a beverage container that the
10-2 redemption center knows or should know was purchased in another
10-3 state;
10-4 (4) reject for refund a beverage container for which
10-5 the redemption center knows or should know a redemption fee was not
10-6 paid at the time the beverage container was purchased from a retail
10-7 dealer;
10-8 (5) prepare and maintain records regarding the
10-9 processing and disposal of empty beverage containers under Section
10-10 374.203;
10-11 (6) make the redemption center's records of
10-12 transactions related to empty beverage containers available for
10-13 review during a commission audit or investigation; and
10-14 (7) to the extent practicable, use reverse vending
10-15 machines or other machinery that will immediately crush or shred a
10-16 beverage container on acceptance by the redemption center.
10-17 Sec. 374.156. REDEMPTION CENTER LOCATION NOTICE. A retail
10-18 dealer that sells beverage containers for which a refund value is
10-19 required by Section 374.051 shall post, in a conspicuous place at
10-20 the retail dealer's premises or on the vending machine, a notice to
10-21 purchasers of the refund value of a used beverage container and the
10-22 location of the nearest redemption center at which the container
10-23 may be returned for a refund.
10-24 (Sections 374.157-374.200 reserved for expansion
10-25 SUBCHAPTER E. BEVERAGE CONTAINER REDEMPTION
10-26 Sec. 374.201. USED BEVERAGE CONTAINER REDEMPTION. Except as
10-27 provided by Section 374.202, a redemption center shall accept a
11-1 used beverage container that has a refund value as established by
11-2 Section 374.051 and shall pay the refund value of the container in
11-3 cash to the person presenting the container if:
11-4 (1) the brand and refund value are ascertainable from
11-5 the container; or
11-6 (2) the container is an unbroken refillable glass
11-7 beverage container that is widely known in this state to have a
11-8 refund value of five cents or more.
11-9 Sec. 374.202. REFUSAL PERMITTED. A redemption center may
11-10 refuse to accept for refund:
11-11 (1) a glass bottle that is broken to the extent that
11-12 it would present a safety hazard when handled;
11-13 (2) a used beverage container that contains part of
11-14 its original contents or other foreign matter to the extent that it
11-15 could present health or sanitation problems; or
11-16 (3) more than 240 used beverage containers presented
11-17 by a single person in one day.
11-18 Sec. 374.203. DISPOSAL OF BEVERAGE CONTAINERS BY REDEMPTION
11-19 CENTER. (a) A redemption center shall dispose of the returned used
11-20 beverage containers redeemed under Section 374.201 by:
11-21 (1) selling the material generated by the crushed or
11-22 shredded used beverage containers to a processor or other end user;
11-23 or
11-24 (2) disposing of the material in another manner
11-25 prescribed by the commission.
11-26 (b) To promote the reuse and recycling of the glass,
11-27 plastic, and metal materials of beverage containers redeemed under
12-1 this chapter, the commission in conjunction with the participating
12-2 councils of governments shall encourage the development in this
12-3 state of markets for the materials or products that can be
12-4 manufactured using those materials.
12-5 Sec. 374.204. REIMBURSEMENT OF REDEMPTION CENTERS BY
12-6 COMMISSION; HANDLING FEE. (a) On submission of a completed invoice
12-7 of refunds paid by a redemption center on a form adopted by the
12-8 commission, the commission shall pay to the redemption center an
12-9 amount equal to the redemption value of five cents plus a handling
12-10 fee of one-half of one cent for each beverage container redeemed by
12-11 the redemption center under Section 374.201.
12-12 (b) The commission shall reimburse a redemption center under
12-13 Subsection (a) not later than three working days after the
12-14 commission receives the invoice submitted by the redemption center.
12-15 (c) If a council of governments has contracted with a
12-16 private entity for the operation of a redemption center under
12-17 Section 374.155, the redemption center shall submit its invoice of
12-18 refunds paid under Section 374.201 to the council of governments.
12-19 The council of governments shall promptly submit the invoice to the
12-20 commission for payment to the redemption center under this section.
12-21 SECTION 2. Section 151.007(c), Tax Code, is amended to read
12-22 as follows:
12-23 (c) "Sales price" or "receipts" does not include any of the
12-24 following if separately identified to the customer by such means as
12-25 an invoice, billing, sales slip or ticket, or contract:
12-26 (1) a cash discount allowed on the sale;
12-27 (2) the amount charged for tangible personal property
13-1 returned by a customer if the total amount charged is refunded by
13-2 cash or credit;
13-3 (3) a refund of the charges for the performance of a
13-4 taxable service;
13-5 (4) finance, carrying and service charges, or interest
13-6 from credit extended on sales of taxable items under a conditional
13-7 sales contract or other contract providing for the deferred payment
13-8 of the purchase price;
13-9 (5) the value of tangible personal property that:
13-10 (A) is taken by a seller in trade as all or part
13-11 of the consideration for a sale of a taxable item; and
13-12 (B) is of a type of property sold by the seller
13-13 in the regular course of business;
13-14 (6) the face value of United States coin or currency
13-15 in a sale of that coin or currency in which the total consideration
13-16 given by the purchaser exceeds the face value of the coin or
13-17 currency; [or]
13-18 (7) a voluntary gratuity or a reasonable mandatory
13-19 charge for the service of a meal or food products, including soft
13-20 drinks and candy, for immediate human consumption when the service
13-21 charge is separated from the sales price of the meal or food
13-22 product and identified as a gratuity or tip and when the total
13-23 amount of the service charge is disbursed by the employer to
13-24 employees who customarily and regularly provide the service; or
13-25 (8) a beverage container redemption fee under Chapter
13-26 374, Health and Safety Code.
13-27 SECTION 3. (a) This Act takes effect September 1, 2001.
14-1 (b) Not later than September 1, 2002, the Texas Natural
14-2 Resource Conservation Commission and the comptroller of public
14-3 accounts shall adopt the rules necessary to implement Chapter 374,
14-4 Health and Safety Code, as added by this Act.
14-5 (c) The requirements of and penalties imposed by Chapter
14-6 374, Health and Safety Code, as added by this Act, do not apply to
14-7 any person before January 1, 2003.
14-8 (d) A retail dealer is not required to submit a report to
14-9 the Texas Natural Resource Conservation Commission under Section
14-10 374.102, Health and Safety Code, as added by this Act, before March
14-11 1, 2004.