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.