81R4813 KJM-D
 
  By: Bonnen H.B. No. 1189
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a program for the recycling of electronic equipment of
  consumers in this state; providing administrative penalties.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The heading to Subchapter Y, Chapter 361, Health
  and Safety Code, is amended to read as follows:
  SUBCHAPTER Y. ELECTRONIC [COMPUTER] EQUIPMENT RECYCLING PROGRAM
         SECTION 2.  Section 361.951, Health and Safety Code, is
  amended to read as follows:  
         Sec. 361.951.  SHORT TITLE. This subchapter may be cited as
  the Manufacturer Responsibility and Consumer Convenience
  Electronic [Computer] Equipment Collection and Recovery Act.
         SECTION 3.  Section 361.952, Health and Safety Code, is
  amended by amending Subdivisions (3) and (4) and adding Subdivision
  (3-a) to read as follows:
               (3)  "Consumer" means an individual who uses electronic 
  [computer] equipment that is purchased primarily for personal or
  home business use.
               (3-a)  "Electronic equipment" means computer equipment
  or televisions.
               (4)  "Manufacturer" means a person:
                     (A)  who manufactures or manufactured electronic
  [computer] equipment under a brand that:
                           (i)  the person owns or owned; or
                           (ii)  the person is or was licensed to use,
  other than under a license to manufacture electronic [computer]
  equipment for delivery exclusively to or at the order of the
  licensor;
                     (B)  who sells or sold electronic [computer]
  equipment manufactured by others under a brand that:
                           (i)  the person owns or owned; or
                           (ii)  the person is or was licensed to use,
  other than under a license to manufacture electronic [computer]
  equipment for delivery exclusively to or at the order of the
  licensor;
                     (C)  who manufactures or manufactured electronic
  [computer] equipment without affixing a brand;
                     (D)  who manufactures or manufactured electronic
  [computer] equipment to which the person affixes or affixed a brand
  that:
                           (i)  the person does not or has not owned; or
                           (ii)  the person is not or was not licensed
  to use; or
                     (E)  who imports or imported electronic
  [computer] equipment manufactured outside the United States into
  the United States unless at the time of importation the company or
  licensee that sells or sold the electronic [computer] equipment to
  the importer has or had assets or a presence in the United States
  sufficient to be considered the manufacturer.
         SECTION 4.  Section 361.953, Health and Safety Code, is
  amended to read as follows:
         Sec. 361.953.  LEGISLATIVE FINDINGS AND PURPOSE.
  (a)  Computers and other electronic [related display] devices are
  critical elements to the strength and growth of this state's
  economic prosperity and quality of life. Many of those products can
  be refurbished and reused, and many contain valuable components
  that can be recycled.
         (b)  The purpose of this subchapter is to establish a
  comprehensive, convenient, and environmentally sound program for
  the collection, recycling, and reuse of electronic [computer]
  equipment that has reached the end of its useful life. The program
  is based on individual manufacturer responsibility and shared
  responsibility among consumers, retailers, and the government of
  this state.
         SECTION 5.  Section 361.954, Health and Safety Code, is
  amended to read as follows:
         Sec. 361.954.  APPLICABILITY. (a) The collection,
  recycling, and reuse provisions of this subchapter apply to
  electronic [computer] equipment used and returned to the
  manufacturer by a consumer in this state and do not impose any
  obligation on an owner or operator of a solid waste facility.
         (b)  This subchapter does not apply to:
               (1)  [a television,] any part of a motor vehicle, a
  personal digital assistant, or a telephone;
               (2)  a consumer's lease of electronic [computer]
  equipment or a consumer's use of electronic [computer] equipment
  under a lease agreement; or
               (3)  the sale or lease of electronic [computer]
  equipment to an entity when the manufacturer and the entity enter
  into a contract that effectively addresses the collection,
  recycling, and reuse of electronic [computer] equipment that has
  reached the end of its useful life.
         SECTION 6.  Sections 361.955(a), (b), (c), (d), (e), (f),
  (h), (i), and (j), Health and Safety Code, are amended to read as
  follows:
         (a)  Before a manufacturer may offer electronic [computer]
  equipment for sale in this state, the manufacturer must:
               (1)  adopt and implement a recovery plan; and
               (2)  affix a permanent, readily visible label to the
  electronic [computer] equipment with the manufacturer's brand.
         (b)  The recovery plan must enable a consumer to recycle
  electronic [computer] equipment without paying a separate fee at
  the time of recycling and must include provisions for:
               (1)  the manufacturer's collection from a consumer of
  any electronic [computer] equipment that has reached the end of its
  useful life and is labeled with the manufacturer's brand; and
               (2)  recycling or reuse of electronic [computer]
  equipment collected under Subdivision (1).
         (c)  The collection of electronic [computer] equipment
  provided under the recovery plan must be:
               (1)  reasonably convenient and available to consumers
  in this state; and
               (2)  designed to meet the collection needs of consumers
  in this state.
         (d)  Examples of collection methods that alone or combined
  meet the convenience requirements of this section include:
               (1)  a system by which the manufacturer or the
  manufacturer's designee offers the consumer a system for returning
  electronic [computer] equipment by mail;
               (2)  a system using a physical collection site that the
  manufacturer or the manufacturer's designee keeps open and staffed
  and to which the consumer may return electronic [computer]
  equipment; and
               (3)  a system using a collection event held by the
  manufacturer or the manufacturer's designee at which the consumer
  may return electronic [computer] equipment.
         (e)  Collection services under this section may use existing
  collection and consolidation infrastructure for handling
  electronic [computer] equipment and may include electronic
  recyclers and repair shops, recyclers of other commodities, reuse
  organizations, not-for-profit corporations, retailers, recyclers,
  and other suitable operations.
         (f)  The recovery plan must include information for the
  consumer on how and where to return the manufacturer's electronic
  [computer] equipment. The manufacturer:
               (1)  shall include collection, recycling, and reuse
  information on the manufacturer's publicly available Internet
  site;
               (2)  shall provide collection, recycling, and reuse
  information to the commission; and
               (3)  may include collection, recycling, and reuse
  information in the packaging for or in other materials that
  accompany the manufacturer's electronic [computer] equipment when
  the equipment is sold.
         (h)  Each manufacturer shall submit a report to the
  commission not later than January 31 of each year that includes:
               (1)  the weight of electronic [computer] equipment
  collected, recycled, and reused during the preceding calendar year;
  and
               (2)  documentation verifying the collection,
  recycling, and reuse of that electronic [computer] equipment in a
  manner that complies with Section 361.964 regarding sound
  environmental management.
         (i)  If more than one person is a manufacturer of a certain
  brand of electronic [computer] equipment as defined by Section
  361.952, any of those persons may assume responsibility for and
  satisfy the obligations of a manufacturer under this subchapter for
  that brand. If none of those persons assumes responsibility or
  satisfies the obligations of a manufacturer for the electronic
  [computer] equipment of that brand, the commission may consider any
  of those persons to be the responsible manufacturer for purposes of
  this subchapter.
         (j)  The obligations under this subchapter of a manufacturer
  who manufactures or manufactured electronic [computer] equipment,
  or sells or sold electronic [computer] equipment manufactured by
  others, under a brand that was previously used by a different person
  in the manufacture of the electronic [computer] equipment extends
  to all electronic [computer] equipment bearing that brand
  regardless of its date of manufacture.
         SECTION 7.  Sections 361.956(a) and (c), Health and Safety
  Code, are amended to read as follows:
         (a)  A person who is a retailer of electronic [computer]
  equipment may not sell or offer to sell new electronic [computer]
  equipment in this state unless the equipment is labeled with the
  manufacturer's label and the manufacturer is included on the
  commission's list of manufacturers that have recovery plans.
         (c)  A retailer is not required to collect electronic
  [computer] equipment for recycling or reuse under this subchapter.
         SECTION 8.  Section 361.957(a), Health and Safety Code, is
  amended to read as follows:
         (a)  A manufacturer or retailer of electronic [computer]
  equipment is not liable in any way for information in any form that
  a consumer leaves on electronic [computer] equipment that is
  collected, recycled, or reused under this subchapter.
         SECTION 9.  Section 361.958, Health and Safety Code, is
  amended to read as follows:
         Sec. 361.958.  COMMISSION'S EDUCATION RESPONSIBILITIES.
  (a)  The commission shall educate consumers regarding the
  collection, recycling, and reuse of electronic [computer]
  equipment.
         (b)  The commission shall host or designate another person to
  host an Internet site providing consumers with information about
  the recycling and reuse of electronic [computer] equipment,
  including best management practices and information about and links
  to information on:
               (1)  manufacturers' collection, recycling, and reuse
  programs, including manufacturers' recovery plans; and
               (2)  electronic [computer] equipment collection
  events, collection sites, and community electronic [computer]
  equipment recycling and reuse programs.
         SECTION 10.  Sections 361.959(b), (c), and (e), Health and
  Safety Code, are amended to read as follows:
         (b)  The commission and the attorney general, as
  appropriate, shall enforce this subchapter and, except as provided
  by Subsections (d) and (e), take enforcement action against any
  manufacturer, retailer, or person who recycles or reuses electronic
  [computer] equipment for failure to comply with this subchapter.
         (c)  The attorney general may file suit under Section 7.032,
  Water Code, to enjoin an activity related to the sale of electronic
  [computer] equipment in violation of this subchapter.
         (e)  A retailer who receives a warning notice from the
  commission that the retailer's inventory violates this subchapter
  because it includes electronic [computer] equipment from a
  manufacturer that has not submitted the recovery plan required by
  Section 361.955 must bring the inventory into compliance with this
  subchapter not later than the 60th day after the date the warning
  notice is issued.
         SECTION 11.  Section 361.962, Health and Safety Code, is
  amended to read as follows:
         Sec. 361.962.  FEES NOT AUTHORIZED. This subchapter does
  not authorize the commission to impose a fee, including a recycling
  fee or registration fee, on a consumer, manufacturer, retailer, or
  person who recycles or reuses electronic [computer] equipment.
         SECTION 12.  Section 361.963, Health and Safety Code, is
  amended to read as follows:
         Sec. 361.963.  CONSUMER RESPONSIBILITIES. (a)  A consumer
  is responsible for any information in any form left on the
  consumer's electronic [computer] equipment that is collected,
  recycled, or reused.
         (b)  A consumer is encouraged to learn about recommended
  methods for recycling and reuse of electronic [computer] equipment
  that has reached the end of its useful life by visiting the
  commission's and manufacturers' Internet sites.
         SECTION 13.  Section 361.964, Health and Safety Code, is
  amended to read as follows:
         Sec. 361.964.  SOUND ENVIRONMENTAL MANAGEMENT. (a)  All
  electronic [computer] equipment collected under this subchapter
  must be recycled or reused in a manner that complies with federal,
  state, and local law.
         (b)  The commission shall adopt as standards for recycling or
  reuse of electronic [computer] equipment in this state the
  standards provided by "Electronics Recycling Operating Practices"
  as approved by the board of directors of the Institute of Scrap
  Recycling Industries, Inc., April 25, 2006, or other standards from
  a comparable nationally recognized organization.
         SECTION 14.  Sections 361.965(b), (c), and (d), Health and
  Safety Code, are amended to read as follows:
         (b)  A person who submits a bid for a contract with a state
  agency for the purchase or lease of electronic [computer] equipment
  must be in compliance with this subchapter.
         (c)  A state agency that purchases or leases electronic 
  [computer] equipment shall require each prospective bidder to
  certify the bidder's compliance with this subchapter.  Failure to
  provide that certification renders the prospective bidder
  ineligible to participate in the bidding.
         (d)  In considering bids for a contract for electronic
  [computer] equipment, in addition to any other preferences provided
  under other laws of this state, the state shall give special
  preference to a manufacturer that has a program to recycle the
  electronic [computer] equipment of other manufacturers, including
  collection events and manufacturer initiatives to accept
  electronic [computer] equipment labeled with another
  manufacturer's brand.
         SECTION 15.  Section 361.966(a), Health and Safety Code, is
  amended to read as follows:
         (a)  If federal law establishes a national program for the
  collection and recycling of electronic [computer] equipment and the
  commission determines that the federal law substantially meets the
  purposes of this subchapter, the commission may adopt an agency
  statement that interprets the federal law as preemptive of this
  subchapter.
         SECTION 16.  Section 7.052(b-1), Water Code, is amended to
  read as follows:
         (b-1)  The amount of the penalty assessed against a
  manufacturer that does not label its electronic [computer]
  equipment or adopt and implement a recovery plan as required by
  Section 361.955, Health and Safety Code, may not exceed $10,000 for
  the second violation or $25,000 for each subsequent violation. A
  penalty under this subsection is in addition to any other penalty
  that may be assessed for a violation of Subchapter Y, Chapter 361,
  Health and Safety Code.
         SECTION 17.  (a)  In this section, "television" has the
  meaning assigned  by Section 361.952, Health and Safety Code.
         (b)  The Texas Commission on Environmental Quality shall
  adopt any rules required to implement the amendments made by this
  Act to Subchapter Y, Chapter 361, Health and Safety Code, not later
  than May 1, 2010.
         (c)  The Texas Commission on Environmental Quality may not
  enforce the change in law made by this Act applicable to televisions
  under Subchapter Y, Chapter 361, Health and Safety Code, before
  September 1, 2010.
         (d)  The reports required under Section 361.955, Health and
  Safety Code, as amended by this Act, and Section 361.961, Health and
  Safety Code, to the extent that they apply to televisions, are not
  required to be prepared or submitted for the first time before the
  dates specified by those sections in 2012.
         (e)  Notwithstanding the 60-day limit under Section
  361.959(d) or (e), Health and Safety Code, as amended by this Act, a
  retailer may sell any television inventory accrued before the
  effective date of this Act without incurring a penalty.
         SECTION 18.  This Act takes effect September 1, 2009.