SRC-TAG S.B. 1239 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1239
78R7288 SMH-FBy: Barrientos
Natural Resources
4/9/2003
As Filed


DIGEST AND PURPOSE 

Currently, businesses that generate 220 pounds or more of obsolete
electronic equipment per month are legally required to treat that waste as
hazardous material.  However, some individuals and small generators store
obsolete electronic equipment in basements, garages, offices, and shops,
while others dispose of electronics in landfills or illegally dump the
equipment, because safe and environmentally responsible recycling programs
are very limited.  An estimated 50 to 80 percent of electronic waste sent
to "recyclers" is actually shipped to developing countries, where the
waste is neither recycled nor disposed of properly.  As proposed, S.B.
1239 requires electronics producers to be responsible for their products,
through recycling and safe disposal of obsolete electronic equipment.  

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 361, Health and Safety Code, by adding
Subchapter W, as follows: 

SUBCHAPTER W.  ELECTRONIC EQUIPMENT
 
Sec.  361.801.  DEFINITIONS.  Defines "electronic equipment," "electronic
equipment waste," "historical waste," "orphan waste," "plan," "producer,"
"recycling," and "reuse." 

Sec.  361.802.  COMMISSION POWERS AND DUTIES.  Requires the Texas
Commission on Environmental Quality (TCEQ) to implement this subchapter
and include in its biennial reports under Section 5.178 (Annual Reports;
Biennial Appendix), Water Code, any recommendations regarding amendments
to this subchapter. 

Sec.  361.803.  PLAN APPROVAL AND IMPLEMENTATION REQUIRED.  Prohibits a
producer from selling or reselling electronic equipment in this state
unless TCEQ approves a plan submitted by the producer under this
subchapter and the producer implements the approved plan. 

Sec. 361.804.  CONTENTS OF PLAN.  Requires the plan for financing the
collection, treatment, recovery, reuse, recycling, and disposition of
electronic equipment to meet certain standards.  

Sec.  361.805.   FINANCIAL RESPONSIBILITY OF PRODUCERS.  (a)  Requires
each producer of electronic equipment sold or resold in this state to
implement a program that meets certain requirements  for financing the
environmentally sound collection, treatment, recovery, reuse, recycling,
and disposition of electronic equipment. 

(b)  Authorizes the producer to meet the requirements of this section
individually or in cooperation with other producers.  

 (c)  Authorizes the plan to require consumers and other electronic
equipment end users to deliver electronic equipment waste into the
collection system, although a producer is encouraged to provide in the
plan for direct collection or reverse delivery systems. 

Sec.  361.806.  PRODUCER'S SHARE OF ORPHAN AND HISTORICAL WASTE.  (a)
Provides that a producer's share of orphan waste and historical waste
derived from electronic equipment of a type sold by the producer is
proportional to the producer's share of the market for that type of
equipment at the time waste management costs are incurred. 

(b)  Requires TCEQ to determine annually the market share of each producer
for this section.  
 
Sec.  361.807.  LABELING OF EQUIPMENT.  Requires each producer of
electronic equipment sold or resold in this state to mark or label the
equipment to provide consumers and other end users with certain
information. 

Sec.  361.808.  CONSUMER EDUCATION PLAN.  Requires each producer of
electronic equipment sold or resold in this state to implement a certain
consumer education plan designed to ensure that consumers and other end
users of electronic equipment, understand certain issues regarding
electronic equipment waste. 

Sec.  361.809.  DEMONSTRATION OF PUBLIC AWARENESS.  (a)  Requires the
producer, by the second anniversary of the date TCEQ approves a producer's
plan, to demonstrate by means of an independent public poll that at least
85 percent of the public is aware of the producer's plan for the
collection, treatment, recovery, reuse, recycling, and disposition of the
electronic equipment sold by the producer that becomes electronic
equipment waste. 

(b)  Authorizes the producers, in the alternative, to collectively satisfy
the requirements of this subsection by means of a single poll that
demonstrates that at least 85 percent of the public is aware of a majority
of producers' plans for the collection, treatment, recovery, reuse,
recycling, and disposition of the electronic equipment waste that is
derived from a majority of the types of electronic equipment covered by
this subchapter. 

(c)  Requires the design, protocols, and implementations plan for the
polling required by this section to be approved by TCEQ. 

Sec.  361.810.  PROVISION OF INFORMATION TO RECYCLERS AND PROCESSORS.  (a)
Requires a producer's plan to require the producer to demonstrate that the
producer will take adequate measures to provide information to recyclers
and processors of the producer's electronic equipment. 

(b)  Requires the producer, not later than the first anniversary of the
date a producer begins selling or reselling electronic equipment in this
state, to provide to recyclers and processors information regarding
certain matters for purposes of end-of-life treatment of the equipment. 

Sec.  361.811.  ENVIRONMENTAL PERFORMANCE REQUIREMENTS.  (a) Provides
that,  for orphan and historical waste, a producer is responsible for
certain demonstration requirements. 

(b)  Provides that for electronic equipment waste other than orphan or
historical waste, a producer is responsible for demonstrating a certain
level of recycling and reuse. 

Sec.  361.812.  RESTRICTIONS ON USE OF PRISON LABOR.  Prohibits a plan
from including a reliance on prison labor unless all incarcerated workers
involved in the  processing and recycling of electronic equipment waste
are provided with compensation equivalent to market rate wages for work
performed and afforded the protections of state occupational safety and
health laws, rules, and regulations and the worker safety and health
protections required by Section 361.816. 

Sec.   361.813.  PROHIBITION ON EXPORTING ELECTRONIC EQUIPMENT WASTE.
Requires a plan to prohibit the export of electronic equipment waste to
any country that is not a member of the Organization for Economic
Cooperation and Development.   

Sec.  361.814.  SUBMISSION, REVIEW, AND APPROVAL OF PLAN.  (a)  Requires a
producer that desires to sell or resell electronic equipment in this state
to submit a plan to TCEQ for review.  Requires the plan to be accompanied
by an application fee in an amount determined by TCEQ to be sufficient to
cover the cost of reviewing the plan. 

(b)  Requires TCEQ to review a plan submitted under this section.
Requires TCEQ, if it determines the plan does not meet the requirements of
this subchapter, to advise the producer of any necessary amendments to the
plan and provide the producer an opportunity to submit an amended plan. 

(c)  Requires TCEQ to approve a plan that  meets the requirements of this
subchapter. 

Sec.  361.815.  RESTRICTIONS ON HAZARDOUS MATERIALS.  (a)  Prohibits a
producer from selling electronic equipment in this state that contains
lead, mercury, cadmium, hexavalent chromium, brominated flame retardants,
or polyvinyl chloride. 

(b)  Authorizes TCEQ by order to allow a producer to sell electronic
equipment in this state that contains a substance prohibited by Subsection
(a) for a period specified by TCEQ if the producer demonstrates that it is
not technically possible to produce the type of electronic equipment in
question without using that substance.  

(c)  Authorizes TCEQ to rescind order issued under Subsection (b) if the
commission  subsequently determines that it is technically possible to
produce the type of electronic equipment in question without using the
substance in question. 

Sec.  361.816.  WORKER SAFETY AND HEALTH PROTECTIONS.  Requires an owner
or operator of a facility used to collect, recover, recycle electronic
equipment waste as part of a plan to meet certain standards in order to
protect the health and safety of the persons employed at the facility. 

Sec.  361.817.  STATE PURCHASING AND LEASING.  Requires each state agency
to adopt policies that meet certain specifications for  purchasing and
leasing electronic equipment. 

Sec.  361.818.  REPORTS.  (a)  Requires each producer to submit an annual
report to TCEQ detailing the producer's implementation of the producer's
plan and compliance with this subchapter. 

(b)  Requires the annual report to document that the implementation of the
plan has not resulted in the export of electronic equipment waste to any
country that is not a member of the Organization for Economic Cooperation
and Development. 

(c)  Requires TCEQ to review the report by the 180th day after the report
is submitted.  Requires TCEQ, if it determines that the producer is not in
compliance with this subchapter, to notify the producer not later than the
end of the following quarter.  Authorizes TCEQ, if the producer fails to
comply with this subchapter by the end of the quarter following the
quarter in which the notice is  given, to take an action to enforce this
subchapter. 

(d)  Requires TCEQ to post on its Internet website the annual report
required by this section for the current year and the two preceding years
and any other report detailing the implementation of the producer's plan
for the current year and the two preceding years.  

Sec. 361.819.  BAN ON INCINERATION OR DISPOSAL IN LANDFILL.  (a)
Prohibits an electronic equipment and electronic equipment waste  from
being disposed of in a landfill, incinerator, or cement kiln or used for
another form of energy recovery or energy generation dependent on
combustion of the waste. 

(b)  Provides that this section applies to whole units of electronic
equipment waste as well as to the constituent components or materials from
which the units are made. 

Sec. 361.820.  IMMUNITY FROM LIABILITY.    Provides that an owner or
operator of a landfill who disposes of electronic equipment or electronic
equipment waste in a landfill is immune from liability, under this code or
the Water Code for disposing of the electronic equipment or electronic
equipment waste in violation of this subchapter, under certain
circumstances. 

SECTION 2.  Amends Chapter 7E, Water Code, by adding Section 7.1855, as
follows: 

Sec. 7.1855.  KNOWING UNAUTHORIZED DISPOSAL OF ELECTRONIC EQUIPMENT OR
ELECTRONIC EQUIPMENT WASTE.  (a)  Provides that a  person commits an
offense if the person knowingly disposes of electronic equipment or
electronic equipment waste in a manner that violates Chapter 361W,  Health
and Safety Code. 

(b)  Provides that an offense under this section is a Class C misdemeanor.

SECTION 3.  (a)  Establishes that this Act takes effect September 1, 2003,
except as otherwise provided by this section. 

(b)  Requires each producer who is engaged in the sale or resale of
electronic equipment in this state to: 

1.  submit to TCEQ a plan required by Section 361.803, Health and Safety
Code, as added by this Act, by March 1, 2004; 

2.  provide TCEQ a financial guarantee required by Section 361.804(8),
Health and Safety Code,  as added by this Act, not later than the earlier
of September 1, 2004, or the date the producer's plan is approved under
Section 361.814(c), Health and Safety Code, as added by this Act; 

3. implement a plan required by Section 361.803, Health and Safety Code,
as added by this Act, not later than September 1, 2005, except as provided
by Subdivision (4); and 

4.  comply with Sections 361.807 and 361.810(b), Health and Safety Code,
as added by this Act, not later than September 1, 2004. 

(c)  Provides that Section 361.815, Health and Safety Code, as added by
this Act, takes effect January 1, 2006. 

(d)  Requires  each state agency to adopt policies under Section 361.817,
Health and Safety Code, as added by this Act, not later than March 1,
2004. 

 (e)  Provides that Sections 361.819 and 361.820, Health and Safety Code,
and Section 7.1855, Water Code, as added by this Act, take effect
September 1, 2005.