78R300 SMH-D

By:  Dukes                                                        H.B. No. 595


A BILL TO BE ENTITLED
AN ACT
relating to the establishment of a program for the disposition of electronic equipment; providing a criminal penalty. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 361, Health and Safety Code, is amended by adding Subchapter W to read as follows:
SUBCHAPTER W. ELECTRONIC EQUIPMENT
Sec. 361.801. DEFINITIONS. In this subchapter: (1) "Electronic equipment" means a device that is operated primarily by electronic rather than mechanical means or equipment or a device that contains a significant number of components similar to those found in exclusively electronic equipment. The term includes a computer, printer, copier, television, monitor, facsimile machine, or video game player or a device with a computer chip or circuit board. (2) "Unit of electronic equipment" means an item of electronic equipment that is regularly sold at wholesale or retail and includes an item of electronic equipment that is not completely assembled or is not working if the item contains substantially all of the components that would regularly be found in such an item being sold at wholesale or retail. Sec. 361.802. RULES. (a) The commission, with the assistance of the comptroller, shall adopt rules to implement the program established by this subchapter. (b) Notwithstanding Section 2001.039, Government Code, the commission staff annually shall review the rules adopted under this subchapter to ensure that the rules take into account changes in the electronics or waste disposal industry. (c) The commission may establish a technical advisory committee to advise the commission in developing or reviewing rules under this subchapter. Sec. 361.803. RECYCLING MARKET DEVELOPMENT BOARD. The Recycling Market Development Board shall: (1) advise the commission and other participants in the program established by this subchapter with regard to the implementation of the program; and (2) recommend changes to rules or other matters to enhance the effectiveness of the program. Sec. 361.804. SUSPENSION OF IMPLEMENTATION OF PROGRAM. (a) The commission by rule may suspend the implementation of the program established by this subchapter if the Recycling Market Development Board determines that the private sector is implementing an alternative program that complies substantially with the requirements of this subchapter regarding the disposition of electronic equipment. (b) The commission by rule may reinstate the implementation of the program established by this subchapter if the Recycling Market Development Board subsequently determines that the private sector is no longer implementing an alternative program that complies substantially with the requirements of this subchapter regarding the disposition of electronic equipment. Sec. 361.805. EXEMPTION FOR CERTAIN EQUIPMENT OR COMPONENTS. The commission by rule may exempt from fees or disposition requirements under this subchapter electronic equipment or components that do not contain harmful materials or that contain de minimis amounts of those materials. Sec. 361.806. INFORMATION REGARDING DISPOSITION OF ELECTRONIC EQUIPMENT. (a) The commission shall maintain a toll-free telephone number to allow a person to obtain information regarding the requirements for disposition of electronic equipment. (b) A wholesale electronic equipment dealer or a manufacturer of electronic equipment who sells electronic equipment at retail shall: (1) attach to any unit of electronic equipment sold in this state a decal that contains the toll-free telephone number maintained under Subsection (a) and any other information prescribed by commission rule; and (2) include with the unit of electronic equipment information in a form prescribed by the commission describing the requirements for disposition of electronic equipment. Sec. 361.807. REGISTRATION OF WHOLESALERS AND MANUFACTURERS OF ELECTRONIC EQUIPMENT. Unless the person holds a registration issued by the commission under Chapter 37, Water Code, the person may not engage in business as a wholesale electronic equipment dealer in this state or a manufacturer of electronic equipment who sells electronic equipment at retail in this state. Sec. 361.808. FEE ON SALE OF ELECTRONIC EQUIPMENT. (a) A wholesale electronic equipment dealer in this state or a manufacturer of electronic equipment who sells electronic equipment at retail in this state shall collect a fee at the time and place of a sale in this state of a unit of electronic equipment. (b) The amount of the fee is based on the classification of the unit of electronic equipment. The commission by rule shall classify units of electronic equipment as follows: (1) Class A: a unit of electronic equipment with minimal disposition costs; (2) Class B: a unit of electronic equipment with moderate disposition costs; or (3) Class C: a unit of electronic equipment with high disposition costs. (c) The commission by rule shall determine the amount of the fee for each class of units of electronic equipment. The commission shall set the fees in amounts sufficient to cover the cost of administering this subchapter. The fee for units of electronic equipment classified as Class B shall exceed the fee for units of electronic equipment classified as Class A, and the fee for units of electronic equipment classified as Class C shall exceed the fee for units of electronic equipment classified as Class B. (d) The commission by rule shall establish a procedure by which a person may appeal a commission rule regarding: (1) the fee class that applies to a unit of electronic equipment; or (2) the eligibility of electronic equipment or a component for an exemption from this section. (e) A person required to collect a fee under this section shall remit fees collected to the comptroller together with documentation identifying: (1) the manufacturers of the units of electronic equipment on which the fees are imposed; (2) the classes of the units of equipment sold; and (3) the number of units of equipment of each class sold. (f) The comptroller shall collect from each manufacturer of electronic equipment for which a wholesale dealer collects a fee under this section an additional fee equal to the amount of the fee collected by the wholesale dealer. (g) The comptroller shall deposit the fees collected by the comptroller under this section to the credit of the electronic equipment disposition account established under Section 361.809. (h) The commission, with the assistance of the comptroller, shall adopt rules for the implementation of this section, including rules governing: (1) the types of sales of electronic equipment that are subject to this section; (2) the manner in which records of the sale of electronic equipment are kept and submitted to the commission; and (3) the manner in which fees are collected, remitted, and deposited under this section. Sec. 361.809. ELECTRONIC EQUIPMENT DISPOSITION ACCOUNT. (a) The electronic equipment disposition account is an account in the general revenue fund that may be appropriated only to the commission to: (1) make payments to registered electronic equipment disposition specialists for the proper disposition of electronic equipment; (2) make low-interest loans to registered electronic equipment disposition specialists to be used to make improvements necessary to bring their facilities into compliance with rules adopted under this subchapter and other laws governing the disposition of electronic equipment; (3) make grants to organizations for research on the manner for disposing of electronic equipment; (4) annually reimburse the comptroller for the administrative costs incurred by the comptroller in implementing and enforcing this subchapter, which costs may not exceed six percent of the amount deposited to the credit of the account during that year; and (5) pay the administrative costs incurred by the commission in implementing and enforcing this subchapter, including the costs of: (A) training landfill operators and registered electronic equipment disposition specialists; and (B) developing training materials for use by electronic equipment disposition specialists in preparing for registration. (b) The commission may not use more than six percent of the amount deposited to the credit of the account to pay costs described by Subsection (a)(5). (c) The commission may defer the making of payments, loans, or grants from the account until the balance in the account reaches an amount determined by the commission. (d) The commission by rule shall specify the manner in which payments, loans, or grants from the account are made. Sec. 361.810. PUBLICATION OF INFORMATION DEVELOPED WITH GRANTS. Information developed by a recipient of a grant under Section 361.809(a)(3) shall be made available to the commission for dissemination to the public. Sec. 361.811. GIFTS, DONATIONS, AND GRANTS. The commission may accept gifts, donations, and grants from any source for the benefit of the electronic equipment disposition account. Sec. 361.812. REPORTING TO LEGISLATURE AND RECYCLING MARKET DEVELOPMENT BOARD. The commission shall report to the legislature and the Recycling Market Development Board annually on the status of the implementation of the program established by this subchapter. Sec. 361.813. REGISTRATION OF ELECTRONIC EQUIPMENT DISPOSITION SPECIALISTS. Unless the person holds a registration issued by the commission under Chapter 37, Water Code, a person may not act as an electronic equipment disposition specialist. Sec. 361.814. DISPOSITION OF ELECTRONIC EQUIPMENT. (a) A person may not dispose of electronic equipment except by delivery to a registered electronic equipment disposition specialist. (b) A registered electronic equipment disposition specialist shall accept for disposition all electronic equipment delivered to the specialist by any source, subject to any restrictions regarding: (1) the volume of equipment that is appropriate for the facility operated by the specialist; and (2) the manner in which equipment must be delivered to the specialist. (c) A registered electronic equipment disposition specialist shall dispose of electronic equipment delivered to the specialist in a manner authorized by commission rule. The rules shall prohibit disposing of electronic equipment by burial in a landfill or by incineration. Sec. 361.815. REIMBURSEMENT OF REGISTERED ELECTRONIC EQUIPMENT DISPOSITION SPECIALIST. (a) A registered electronic equipment disposition specialist shall keep a record in the manner provided by commission rules of each unit of electronic equipment disposed of by the specialist. The commission shall verify the accuracy of the records. (b) The commission, on application, shall reimburse a registered electronic equipment disposition specialist from the electronic equipment disposition account an amount determined by the commission for each unit of electronic equipment disposed of by the specialist. The amount the specialist may be reimbursed is based on the classification of the unit of electronic equipment under Section 361.808(b). The commission by rule shall set the reimbursement amount for each class of units of electronic equipment, with the reimbursement amount for units of equipment classified as Class B exceeding the reimbursement amount for units of equipment classified as Class A and the reimbursement amount for units of equipment classified as Class C exceeding the reimbursement amount for units of equipment classified as Class B. (c) The commission shall make reimbursements to registered electronic equipment disposition specialists quarterly. SECTION 2. Subchapter E, Chapter 7, Water Code, is amended by adding Section 7.1855 to read as follows: Sec. 7.1855. VIOLATIONS RELATING TO DISPOSAL OF ELECTRONIC EQUIPMENT. (a) In this section, "electronic equipment" has the meaning assigned by Section 361.801, Health and Safety Code. (b) A person commits an offense if the person: (1) knowingly disposes of electronic equipment or a component of electronic equipment in a manner not authorized by rules adopted under Subchapter W, Chapter 361, Health and Safety Code; (2) knowingly exports electronic equipment or a component of electronic equipment to a final destination in violation of the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal; (3) intentionally keeps false records of electronic equipment accepted for disposition; or (4) intentionally falsifies a request for reimbursement for disposing of electronic equipment. (c) An offense under this section is a Class C misdemeanor. SECTION 3. Sections 37.002 and 37.003, Water Code, are amended to read as follows: Sec. 37.002. RULES. The commission shall adopt any rules necessary to: (1) establish occupational licenses and registrations prescribed by Sections 26.0301, 26.3573, 26.452, 26.456, and 34.007 of this code and Sections 341.033, 341.034, 361.027, 361.807, 361.813, and 366.071, Health and Safety Code; (2) establish classes and terms of occupational licenses and registrations; and (3) administer the provisions of this chapter and other laws governing occupational licenses and registrations under the commission's jurisdiction. Sec. 37.003. LICENSE OR REGISTRATION REQUIRED. A person may not engage in a business, occupation, or profession described by Section 26.0301, 26.3573, 26.452, 26.456, or 34.007 of this code or Section 341.033, 341.034, 361.027, 361.807, 361.813, 366.014, or 366.071, Health and Safety Code, unless the person holds the appropriate license or registration issued by the commission. SECTION 4. (a) This Act takes effect September 1, 2003. (b) The Texas Commission on Environmental Quality shall adopt rules under this Act not later than March 1, 2004. (c) A person is not required to be registered under Section 361.807 or 361.813, Health and Safety Code, as added by this Act, until March 1, 2004. (d) Notwithstanding Subsection (c) of this section: (1) a person who is engaged in business as a wholesale electronic equipment dealer in this state or a manufacturer of electronic equipment who sells electronic equipment at retail in this state before March 1, 2004, and who applies for a registration before that date may continue to engage in that business until the commission acts on the person's application; and (2) a person who acts as an electronic equipment disposition specialist before March 1, 2004, and who applies for a registration before that date may continue to act in that capacity until the commission acts on the person's application.