79R6111 JTS-D
By: Chavez H.B. No. 2530
A BILL TO BE ENTITLED
AN ACT
relating to beverage container redemption and recycling in border
counties; providing penalties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle B, Title 5, Health and Safety Code, is
amended by adding Chapter 375 to read as follows:
CHAPTER 375. BEVERAGE CONTAINER REDEMPTION AND RECYCLING IN BORDER
COUNTIES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 375.001. DEFINITIONS. In this chapter:
(1) "Beverage" means an alcoholic, nonalcoholic,
carbonated, or noncarbonated drink prepared in liquid,
ready-to-drink form and intended for human consumption. The term
includes:
(A) beer;
(B) ale;
(C) malt liquor;
(D) other drinks produced by fermenting malt;
(E) spirits;
(F) wine;
(G) wine coolers;
(H) soda;
(I) water, including mineral water;
(J) carbonated water, including carbonated
mineral water;
(K) carbonated soft drinks;
(L) noncarbonated soft drinks and sport drinks;
(M) noncarbonated fruit drinks;
(N) coffee and tea drinks; and
(O) carbonated fruit drinks.
(2) "Beverage container" means a glass, metal, or
plastic vessel that is hermetically sealed or capped and that
contains a beverage at the time it is sold or offered for sale. The
term does not include cans or cups made primarily of aluminum.
(3) "Border county" means a county that borders the
United Mexican States.
(4) "Commission" means the Texas Commission on
Environmental Quality.
(5) "Consumer" means a person who purchases a beverage
in a beverage container for the person's own use or consumption.
The term includes a lodging, eating, or drinking establishment if
beverages are generally consumed on the establishment's premises
and does not include a person who purchases the beverage from the
establishment for consumption on the premises.
(6) "Infant formula" means any liquid food sold as an
alternative for human milk for the feeding of infants.
(7) "Medical food" means a food or beverage that is
formulated to be consumed or administered under the supervision of
a physician and that is intended for specific dietary management of
diseases or health conditions for which distinctive nutritional
requirements, based on recognized scientific principles, are
established by medical evaluation. The term also includes any
product that meets the definition of "medical food" under the Food,
Drug, and Cosmetic Act, 21 U.S.C. Section 360ee(b)(3).
(8) "Redemption center" means an operation certified
by the commission or by a border county under Section 375.154 to
redeem beverage containers under this chapter.
(9) "Refund" means a payment by a redemption center
under Section 375.201 to a person who presents a beverage container
at the redemption center.
(10) "Retail dealer" means a person who sells a
beverage in a beverage container to a consumer.
Sec. 375.002. PROGRAM ADMINISTRATION. The commission shall
establish a beverage container redemption and recycling program to
be administered only in border counties in accordance with this
chapter. The commission shall administer and enforce this chapter
and may adopt rules and forms necessary to carry out the purposes of
this chapter.
Sec. 375.003. CRIMINAL PENALTIES. A person commits an
offense if the person knowingly violates Section 375.051, 375.101,
375.156, or 375.201. An offense under this section is a Class C
misdemeanor.
Sec. 375.004. REPORT TO LEGISLATURE. The commission shall
include information on the beverage container redemption and
recycling program established under this chapter as part of its
annual report to the legislature under Section 5.178, Water Code.
[Sections 375.005-375.050 reserved for expansion]
SUBCHAPTER B. REFUND VALUE AND LABELING OF BEVERAGE CONTAINERS
Sec. 375.051. REFUND VALUE AND LABEL REQUIRED. (a) Except
as provided by Subsection (b), a person may not sell or offer for
sale in a border county a beverage container unless the container
has a refund value of five cents or more and is labeled as required
by Section 375.052.
(b) A person may sell or offer for sale in a border county a
beverage container that does not have a refund value if:
(1) the container has a fluid capacity of more than one
gallon;
(2) the container contains:
(A) a beverage that consists of milk or of 100
percent fruit or vegetable juice; or
(B) medical food or infant formula; or
(3) the container is sold for use by a common carrier
in conducting passenger transport.
Sec. 375.052. LABELING. (a) A beverage container required
to have a refund value under Section 375.051 that is offered for
sale in a border county must have legibly stamped, labeled, or
embossed on the container:
(1) the words "return for refund";
(2) the refund value of the container;
(3) the name "Texas" or the abbreviation "TX" or
"Tex."; and
(4) other language as required by the commission.
(b) The commission may require that any beverage container
intended for sale in a border county be printed, embossed, stamped,
labeled, or otherwise marked with a universal product code or
similar machine-readable indicia.
(c) Subsection (a) does not apply to the sale of a
refillable glass beverage container that contains water or a soft
drink and that has a brand name permanently marked on the container.
[Sections 375.053-375.100 reserved for expansion]
SUBCHAPTER C. COLLECTION OF REDEMPTION FEE
Sec. 375.101. COLLECTION AND REMITTANCE BY RETAIL DEALER.
(a) A retail dealer in a border county shall collect a redemption
fee of five cents from a consumer for each beverage container that
the retail dealer sells to the consumer.
(b) The retail dealer shall remit to the comptroller 4.75
cents of each five-cent redemption fee the retail dealer collects
under Subsection (a). The retail dealer may retain one quarter of
one cent for the retail dealer's administrative costs.
(c) Subject to Subsection (d), the comptroller by rule shall
adopt procedures for remitting the redemption fee under Subsection
(b).
(d) A retail dealer may, on approval of the comptroller,
elect to remit the redemption fee annually if the retail dealer's
projected remittance for a calendar year totals less than $10,000.
The retail dealer shall make an annual redemption remittance under
this subsection not later than February 1 of the year following the
year for which the remittance is being made. A retail dealer shall
notify the comptroller of its intent to make an annual redemption
remittance under this subsection not later than January 31 of the
year for which the annual remittance will be made.
Sec. 375.102. ANNUAL REPORT. (a) Not later than March 1 of
each year a retail dealer who collects a redemption fee under
Section 375.101 shall report to the comptroller, on a form approved
by the comptroller, the total amount of fees collected under
Section 375.101 for the calendar year preceding the year in which
the report is filed.
(b) The comptroller may require the retail dealer to include
in the report required by Subsection (a) other information the
comptroller considers necessary to ensure timely and accurate
remittance under Section 375.101.
Sec. 375.103. TEXAS BEVERAGE REDEMPTION AND RECYCLING
ACCOUNT. (a) Fees collected under this subchapter shall be
deposited to the credit of the Texas beverage redemption and
recycling account in the general revenue fund and may be
appropriated to the commission only for:
(1) reimbursement and handling fees paid to redemption
centers;
(2) administration of this chapter; and
(3) the purposes authorized under Subsection (b).
(b) Each quarter, after setting aside amounts for
reimbursement and handling fees paid to redemption centers, for the
administration of this chapter, and for a reserve amount
established under Subsection (c), the commission shall allocate
money in the Texas beverage container redemption and recycling
account under this section for:
(1) grants to border counties to:
(A) operate the program under this chapter; and
(B) finance the purchase of redemption center
infrastructure;
(2) grants to local governments in border counties to
promote litter abatement and encourage recycling;
(3) research and development of markets for and
products made from used beverage containers redeemed under this
chapter;
(4) public education in border counties about the
program established under this chapter; and
(5) other litter reduction strategies employed in
border counties.
(c) The commission shall ensure that the Texas beverage
container redemption and recycling account contains a reserve
amount to be used for contingencies that is equal to:
(1) five percent of the total amount paid to
redemption centers under Section 375.204 in the preceding calendar
year; and
(2) any amount of interest earned on the amount
reserved under Subdivision (1).
[Sections 375.104-375.150 reserved for expansion]
SUBCHAPTER D. REDEMPTION CENTERS
Sec. 375.151. DELEGATION TO BORDER COUNTIES. (a) The
commission may delegate to a border county the establishment and
certification of redemption centers.
(b) A border county may apply for and use grant funds from
the commission to establish and certify redemption centers under
this section.
Sec. 375.152. REDEMPTION ZONES AND LOCATION OF REDEMPTION
CENTERS. (a) The commission annually shall designate redemption
zones throughout the border counties and shall ensure that at least
one redemption center is located in each redemption zone. The
commission may consult with border counties in designating
redemption zones under this section.
(b) If practicable, the commission shall designate as a
redemption zone an area within a one-half mile radius of a retail
food store, as that term is defined under Section 437.001.
(c) If designation under Subsection (b) is not practicable,
the commission may designate redemption zones based on other
appropriate criteria, including population ratios and the number of
retail dealers located in an area.
Sec. 375.153. ESTABLISHMENT OF REDEMPTION CENTERS. (a) The
commission on its own or through a border county shall contract with
a private entity, including a retail dealer, a nonprofit entity, or
a local government or a combination of private, nonprofit, or local
government entities to operate a certified redemption center in
each redemption zone.
(b) The commission shall establish temporary alternative
redemption options for a redemption zone without a redemption
center until the commission or the border county contracts with
another entity to establish and operate a redemption center.
(c) The commission or a border county shall establish and
enforce audit procedures to ensure that a redemption center is in
compliance with the contract between the redemption center and the
commission or the border county.
(d) A border county that contracts with a private entity to
establish a redemption center shall ensure that the private entity
complies with commission rules relating to certification of
redemption centers under Section 375.154.
Sec. 375.154. CERTIFICATION OF REDEMPTION CENTERS. (a) The
commission by rule shall adopt a procedure for the certification of
redemption centers, including standards and requirements for
certification.
(b) The commission may delegate certification of redemption
centers to individual border counties.
(c) Rules adopted under Subsection (a) shall require the
operator of a redemption center to:
(1) provide any information required for
certification under the penalty of perjury;
(2) demonstrate that the operator will operate the
redemption center in accordance with this chapter; and
(3) promptly notify the commission or county, as
appropriate, of any material change in the nature of the operation
that conflicts with information submitted in the operator's
application for certification.
Sec. 375.155. OPERATION OF REDEMPTION CENTERS. (a) The
commission shall adopt rules for the operation of a redemption
center.
(b) Rules adopted under Subsection (a) shall require a
redemption center to:
(1) reject for refund drink packaging material or a
beverage container or other product that does not have the refund
value established by Section 375.051;
(2) act to prevent payment of a refund for a beverage
container that does not have a refund value established by Section
375.051;
(3) reject for refund a beverage container that the
redemption center knows or should know was purchased in a county
other than a border county;
(4) reject for refund a beverage container for which
the redemption center knows or should know a redemption fee was not
paid at the time the beverage container was purchased from a retail
dealer;
(5) prepare and maintain records regarding the
processing and disposal of empty beverage containers under Section
375.203;
(6) make the redemption center's records of
transactions related to empty beverage containers available for
review during a commission audit or investigation; and
(7) to the extent practicable, use reverse vending
machines or other machinery that will immediately crush or shred a
beverage container on acceptance by the redemption center.
Sec. 375.156. REDEMPTION CENTER LOCATION NOTICE. A retail
dealer that sells beverage containers for which a refund value is
required by Section 375.051 shall post, in a conspicuous place at
the retail dealer's premises or on the vending machine, a notice to
purchasers of the refund value of a used beverage container and the
location of the nearest redemption center at which the container
may be returned for a refund.
[Sections 375.157-375.200 reserved for expansion]
SUBCHAPTER E. BEVERAGE CONTAINER REDEMPTION
Sec. 375.201. USED BEVERAGE CONTAINER REDEMPTION. Except as
provided by Section 375.202, a redemption center shall accept a
used beverage container that has a refund value as established by
Section 375.051 and shall pay the refund value of the container in
cash to the person presenting the container if:
(1) the brand and refund value are ascertainable from
the container; or
(2) the container is an unbroken refillable glass
beverage container that is widely known to have a refund value of
five cents or more.
Sec. 375.202. REFUSAL PERMITTED. A redemption center may
refuse to accept for refund:
(1) a glass bottle that is broken to the extent that it
would present a safety hazard when handled;
(2) a used beverage container that contains part of
its original contents or other foreign matter to the extent that it
could present health or sanitation problems; or
(3) more than 240 used beverage containers presented
by a single person in one day.
Sec. 375.203. DISPOSAL OF BEVERAGE CONTAINERS BY REDEMPTION
CENTER. (a) A redemption center shall dispose of the returned used
beverage containers redeemed under Section 375.201 by:
(1) selling the material generated by the crushed or
shredded used beverage containers to a processor or other end user;
or
(2) disposing of the material in another manner
prescribed by the commission.
(b) To promote the reuse and recycling of the glass,
plastic, and metal materials of beverage containers redeemed under
this chapter, the commission in conjunction with the border
counties shall encourage the development in this state of markets
for the materials or products that can be manufactured using those
materials.
Sec. 375.204. REIMBURSEMENT OF REDEMPTION CENTERS BY
COMMISSION; HANDLING FEE. (a) On submission of a completed invoice
of refunds paid by a redemption center on a form adopted by the
commission, the commission shall pay to the redemption center an
amount equal to the redemption value of five cents plus a handling
fee of one-half of one cent for each beverage container redeemed by
the redemption center under Section 375.201.
(b) The commission shall reimburse a redemption center
under Subsection (a) not later than three working days after the
commission receives the invoice submitted by the redemption center.
(c) If a border county has contracted with a private entity
for the operation of a redemption center under Section 375.155, the
redemption center shall submit its invoice of refunds paid under
Section 375.201 to the county. The county shall promptly submit the
invoice to the commission for payment to the redemption center
under this section.
SECTION 2. Section 151.007(c), Tax Code, is amended to read
as follows:
(c) "Sales price" or "receipts" does not include any of the
following if separately identified to the customer by such means as
an invoice, billing, sales slip or ticket, or contract:
(1) a cash discount allowed on the sale;
(2) the amount charged for tangible personal property
returned by a customer if the total amount charged is refunded by
cash or credit;
(3) a refund of the charges for the performance of a
taxable service;
(4) finance, carrying and service charges, or interest
from credit extended on sales of taxable items under a conditional
sales contract or other contract providing for the deferred payment
of the purchase price;
(5) the value of tangible personal property that:
(A) is taken by a seller in trade as all or part
of the consideration for a sale of a taxable item; and
(B) is of a type of property sold by the seller in
the regular course of business;
(6) the face value of United States coin or currency in
a sale of that coin or currency in which the total consideration
given by the purchaser exceeds the face value of the coin or
currency; [or]
(7) a voluntary gratuity or a reasonable mandatory
charge for the service of a meal or food products, including soft
drinks and candy, for immediate human consumption when the service
charge is separated from the sales price of the meal or food product
and identified as a gratuity or tip and when the total amount of the
service charge is disbursed by the employer to employees who
customarily and regularly provide the service; or
(8) a beverage container redemption fee under Chapter
375, Health and Safety Code.
SECTION 3. (a) Not later than September 1, 2006, the Texas
Commission on Environmental Quality and the comptroller of public
accounts shall adopt the rules necessary to implement Chapter 375,
Health and Safety Code, as added by this Act.
(b) The requirements of and penalties imposed by Chapter
375, Health and Safety Code, as added by this Act, do not apply to
any person before January 1, 2007.
(c) A retail dealer is not required to submit a report to the
Texas Commission on Environmental Quality under Section 375.102,
Health and Safety Code, as added by this Act, before March 1, 2008.
SECTION 4. This Act takes effect September 1, 2005.