AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

 

Estimates suggest that there are over 99 million televisions in United States households that are no longer in use.  This massive amount of electronic waste threatens to overwhelm available landfill space.  Additionally, there is growing concern that components of electronic waste, such as mercury and lead, threaten the environment and public health.

 

S.B. 329 adds Subchapter Z to Chapter 361 (Solid Waste Disposal Act), Health and Safety Code, to create the Television Equipment Recycling Program.  It requires television manufacturers to take back and recycle a percentage of their Texas market-share.  S.B. 329 would require manufacturers to provide consumers with convenient alternatives to the disposal of televisions in Texas landfills and incinerators.

 

S.B. 329 amends current law relating to the sale, recovery, and recycling of certain television equipment and provides administrative penalties.

 

[Note: While the statutory reference in this bill is to the Texas Natural Resource Conservation Commission (TNRCC), the following amendments affect the Texas Commission on Environmental Quality, as the successor agency to TNRCC.]

 

RULEMAKING AUTHORITY

 

Rulemaking authority is expressly granted to the Texas Commission on Environmental Quality in SECTION 3 of this bill.

 

Rulemaking authority is expressly granted to the comptroller of public accounts in SECTION 1 (Section 361.991, Health and Safety Code) of this bill.

 

SECTION BY SECTION ANALYSIS

 

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

 

SUBCHAPTER Z.  TELEVISION EQUIPMENT RECYCLING PROGRAM

 

Sec. 361.971.  DEFINITIONS.  Defines "brand," "consumer," "covered television equipment," "market share allocation," "recycling," "retailer," "television," and "television manufacturer" in this subchapter.

 

Sec.  361.972.  LEGISLATIVE FINDINGS AND PURPOSE.  Provides that the purpose of this subchapter is to establish a comprehensive, convenient, and environmentally sound program for the collection and recycling of television equipment.  Provides that the program is based on individual television manufacturer responsibility and shared responsibility among consumers, retailers, and the government of this state.

 

Sec. 361.973.  APPLICABILITY.  (a) Provides that except as provided by this section and Section 361.991, this subchapter applies only to covered television equipment that is offered for sale or sold to a consumer in this state, or used by a consumer in this state and returned for recycling.

 

(b) Provides that this subchapter does not apply to:

 

(1)  computer equipment as that term is defined by Section 361.952;

 

(2)  a manufacturer of a display device that is peripheral to a computer and contains a television tuner, if that manufacturer collects and recycles the device in accordance with Subchapter Y (Computer Equipment Recycling Program);

 

(3) any part of a motor vehicle, including a replacement part;

 

(4)  a device that is functionally or physically part of or connected to another system or piece of equipment:

 

(A)  designed and intended for use in an industrial, governmental, commercial, research and development, or medical setting, including diagnostic monitoring or control equipment; or

 

(B)  used for security, sensing, monitoring, antiterrorism, or emergency services purposes;

 

(5)  a device that is contained in exercise equipment intended for home use or an appliance intended for home use including a clothes washer, clothes dryer, refrigerator, refrigerator and freezer, microwave oven, conventional oven or range, dishwasher, room air conditioner, dehumidifier, and air purifier;

 

(6)  a telephone of any type;

 

(7)  a personal digital assistant;

 

(8)  a global positioning system;

 

(9)  a consumer's lease of covered television equipment or a consumer's use of covered television equipment under a lease agreement; or

 

(10)  the sale or lease of covered television equipment to an entity when the television manufacturer and the entity enter into a contract that effectively addresses the recycling of equipment that has reached the end of its useful life.

 

Sec. 361.974.  SALES PROHIBITION.  Prohibits a person from offering for sale in this state new covered television equipment unless the equipment has been labeled in compliance with Section 361.975. 

 

Sec. 361.975.  MANUFACTURER'S LABELING REQUIREMENT.  Authorizes a television manufacturer to sell or offer for sale in this state only covered television equipment that is labeled with the television manufacturer's brand.  Requires that the label be permanently affixed and readily visible.

 

Sec.  361.976.  MANUFACTURER'S REGISTRATION AND REPORTING. (a) Requires a television manufacturer of covered television equipment to register with the Texas Natural Resource Conservation Commission (TNRCC) and, except as provided by Section 361.979, pay a registration fee of $2,500.  Requires a registered television manufacturer to renew the registration and, except as provided by Section 361.979, pay the fee on or before January 31 of each year.  Sets forth the required information to be included in a registration or registration renewal.

 

(b)  Requires each registered television manufacturer of covered television equipment, except as provided by Section 361.979, not later than January 31 of each year, to report to TNRCC certain information relating to covered television equipment sold, collected, and recycled in this state. 

 

(c)  Requires that fees collected under this section be deposited to the credit of the television recycling account created under Section 361.977.

 

Sec.  361.977.  TELEVISION RECYCLING ACCOUNT.  (a)  Provides that the television recycling account is an account in the general revenue fund that consists of the fees collected under Section 361.976, and interest earned on the money in the account.

 

(b)  Authorizes money in the account to be appropriated only to TNRCC to be used by TNRCC to maintain a public Internet website and toll-free telephone number that provide consumers with information about covered television equipment recycling opportunities in this state.

 

Sec. 361.978.  MANUFACTURER'S RECOVERY PLAN AND RELATED RESPONSIBILITIES.  (a)  Provides that this section does not apply to a television manufacturer that participates in a recycling leadership program described by Section 361.979.

 

(b)  Requires that each television manufacturer of covered television equipment sold in this state, not later than the first January 31 that occurs after the date the television manufacturer first registers with TNRCC under Section 361.976, individually or as a member of a group of television manufacturers, to submit to TNRCC a recovery plan to collect, reuse, and recycle covered television equipment.

 

(c)  Requires an individual television manufacturer that submits a recovery plan under Subsection (a) to collect, reuse, and recycle covered television equipment.  Requires the individual television manufacturer, beginning with the television manufacturer's second year of registration, to collect, reuse, and recycle the quantity of covered television equipment computed by TNRCC as the manufacturer's market share allocation.

 

(d)  Requires a group of television manufacturers that submits a recovery plan under Subsection (b) to collect, reuse, and recycle covered television equipment.  Requires the group of television manufacturers, beginning the second year of registration for a group of television manufacturers, to collect, reuse, and recycle a quantity of covered television equipment equal to the sum of the combined market share allocations of the group's participants.

 

(e)  Sets forth the minimum requirements of a recovery plan under Subsection (b).

 

(f) Requires TNRCC to review the recovery plan for satisfaction of the requirements of this subchapter.  Requires TNRCC, if the registration and recovery plan are complete, to include the television manufacturer on TNRCC's Internet website listing as provided by Section 361.984(a).  Authorizes TNRCC to reject the recovery plan if it does not meet all requirements of this subchapter.

 

Sec. 361.979.  MANUFACTURER RECYCLING LEADERSHIP PROGRAM.  (a)  Authorizes a group of television manufacturers to establish a recycling leadership program to provide collection, transportation, and recycling infrastructure for covered television equipment in this state.

 

(b)  Requires that a recycling leadership program provide at least 200 individual collection sites or programs in this state in a manner described by Subsection (d) where a consumer may return covered television equipment for reuse or recycling.

 

(c)  Prohibits a television manufacturer from charging a separate fee at the time of recycling under this section unless at the time of recycling a financial incentive of equal or greater value to the fee charged is provided by the television manufacturer.

 

(d)  Provides that collection methods that may be used by a recycling leadership program under Subsection (b) for recycling of covered television equipment include:

 

(1) a system by which the television manufacturer, an entity designated by the television manufacturer, or another private or public sector entity associated with the television manufacturer offers a consumer a physical collection site to return covered television equipment;

 

(2)  a system by which the television manufacturer, an entity designated by the television manufacturer, or another private or public sector entity associated with the television manufacturer offers the consumer a method for returning covered television equipment by mail; and

 

(3)  a system by which the television manufacturer, an entity designated by the television manufacturer, or another private or public sector entity associated with the television manufacturer holds a collection event where the consumer may return covered television equipment.

 

(e)  Provides that a television manufacturer of covered television equipment sold in this state that is participating in a recycling leadership program for covered television equipment as of January 1 of any year is not subject during that year to:

 

(1)  the registration fees and renewal fees required by Section 361.976(a); and

 

(2)  the reporting requirements of Section 361.976(b).

 

(f)  Requires that each recycling leadership program, not later than January 31 of each year, provide to TNRCC a list of the television manufacturers participating in the program for that year.

 

(g) Requires a television manufacturer of covered television equipment that is sold in this state that participates in a recycling leadership program to individually or through the recycling leadership program establish and implement a public education program regarding collection, reuse, and recycling opportunities that exist in this state for covered television equipment.  Requires that the public education program:

 

(1) inform consumers about the collection, reuse, and recycling opportunities for covered television equipment available in this state;

 

(2)  work with TNRCC and other interested parties to develop educational materials that inform consumers about collection, reuse, and recycling opportunities available in this state;

 

(3)  use television manufacturer-developed customer outreach materials, such as packaging inserts, television manufacturers' Internet websites, and other communication methods, to inform consumers about collection, reuse, and recycling opportunities for covered television equipment available in this state; and

 

(4)  use television manufacturer-developed customer outreach materials to provide rural communities with a centralized Internet-based information center that provides information for those communities about best practices for collection, reuse, and recycling of covered television equipment; and collection events and other recycling opportunities in those communities and surrounding areas.

 

Sec.  361.980.  RECYCLING LEADERSHIP PROGRAM COLLECTION REPORT.  (a)  Requires a television manufacturer of covered television equipment sold in this state that is participating in a recycling leadership program under Section 361.979, not later than January 31 of every other year beginning with the television manufacturer's second year of registration, to individually or as a member of the recycling leadership program, submit to TNRCC a collection report regarding the television manufacturer's collection, reuse, and recycling of covered television equipment.

 

(b)  Requires that the collection report include:

 

(1)  an inventory of covered television equipment collection, reuse, and recycling opportunities that are currently available to consumers through the individual television manufacturer or the recycling leadership program in this state;

(2)  documentation of collection opportunities available to consumers in counties with populations of less than 50,000, including an analysis of the number of collection sites available to consumers in those counties compared to the number of opportunities available to consumers in those counties to purchase new covered television equipment;

 

(3)  the amount by weight of the covered television equipment that the individual television manufacturer or the recycling leadership program collected in the two preceding years; and

 

(4)  documentation that the collection, reuse, and recycling of the collected covered television equipment complies with Section 361.990.

 

(c)  Authorizes the inventory of covered television equipment collection, reuse, and recycling opportunities required by Subsection (b)(1) to be submitted in the form of a map noting the location of the opportunities.

 

(d)  Authorizes the collection report to include a listing of other existing collection and recycling infrastructure for covered television equipment not associated with the recycling leadership program, including electronic recyclers and repair shops, recyclers of other appropriate commodities, reuse organizations, not-for-profit corporations, retailers, and other suitable operations, including local government collection events, if available.

 

Sec.  361.981.  RETAILER RESPONSIBILITY.  (a) Authorizes a retailer to order and sell only products from a television manufacturer that is included on the list published under Section 361.984(a).  Requires a retailer to consult that list before ordering covered television equipment in this state.  Provides that a retailer is considered to have complied with this subsection and is authorized to  sell a product in the retailer's inventory if, on the date the product was ordered from the television manufacturer, the television manufacturer was listed on the Internet website described by Section 361.984(a).

 

(b) Requires a person who is a retailer of covered television equipment to provide to consumers in writing the information published by TNRCC regarding the legal disposition and recycling of television equipment.  Authorizes the information to be included with the sales receipt or as part of the packaging of the equipment.  Authorizes the retailer, alternatively, to provide the information required by this subsection through a toll-free telephone number and address of an Internet website provided to consumers. 

 

(c) Provides that this subchapter does not require a retailer to collect covered television equipment for recycling.

 

Sec. 361.982.  RECYCLER RESPONSIBILITIES.  (a)  Provides that this section does not apply to a television manufacturer.

 

(b)  Requires a person who is engaged in the business of recycling covered television equipment in this state to:

 

(1) register with TNRCC and certify that the person is in compliance with the standards adopted under Section 361.990;

 

(2) on or before January 31 of each year renew the registration with TNRCC and certify the person's continued compliance with the standards adopted under Section 361.990;

 

(3) recycle all covered television equipment accepted for recycling in accordance with the standards adopted under Section 361.990;

 

(4) maintain a written log recording the weight of all covered television equipment received by the person and the disposition of that equipment; and

 

(5) annually report to TNRCC the total weight of covered television equipment received and recycled by the person in the preceding 12 months.

 

Sec. 361.983.  LIABILITY.  (a)  Provides that a television manufacturer, retailer, or person who recycles covered television equipment is not liable in any way for information in any form that a consumer leaves on covered television equipment that is collected or recycled under this subchapter.

 

(b)  Provides that this subchapter does not exempt a person from liability under other law.

 

Sec. 361.984.  COMMISSION RESPONSIBILITIES.  (a) Requires TNRCC to publish on a publicly accessible Internet website a list of television manufacturers:

 

(1) whose recovery plans have been approved by TNRCC;

 

(2) whose public education programs are in full compliance with this subchapter; and

 

(3)  who are in compliance with the registration and fee requirements of this subchapter, if applicable.

 

(b)  Requires TNRCC to remove television manufacturers no longer in compliance under Subsection (a) from the Internet website once each fiscal quarter.

 

(c) Requires TNRCC to educate consumers regarding the collection and recycling of covered television equipment.

 

(d) Requires TNRCC to host or designate another person to host an Internet website and provide a toll-free telephone number to provide consumers with information about the recycling of covered television equipment, including best management practices and information about or links to information about:

 

(1) television manufacturers' collection and recycling programs, including television manufacturers' recovery plans; and

 

(2) covered television equipment collection events, collection sites, and community television equipment recycling programs.

 

(e) Provides that information about collection and recycling provided on a television manufacturer's publicly available Internet website and through a toll-free telephone number does not constitute a determination by TNRCC that the television manufacturer's recovery plan or actual practices are in compliance with this subchapter or other law.

 

(f) Requires TNRCC, not later than November 1 of each year, to establish the state recycling rate by computing the ratio of the weight of total returns of covered television equipment in this state by television manufacturers submitting a recovery plan under Section 361.978 to the total weight of covered television equipment sold in this state by television manufacturers submitting a recovery plan under Section 361.978 during the preceding year.

 

(g) Requires TNRCC, not later than December 1 of each year, to compute and provide to each registered television manufacturer submitting a recovery plan under Section 361.978 the television manufacturer's market share allocation for collection, reuse, and recycling for that year.  Provides that a television manufacturer's market share allocation equals the weight of the television manufacturer's covered television equipment sold in this state during the preceding calendar year multiplied by the state recycling rate determined under Subsection (f). 

 

(h)  Requires TNRCC, in any year in which more than one recycling leadership program is implemented under Section 361.979, to review all active recycling leadership programs established under this subchapter to ensure the programs are operating in a manner consistent with the goals of this subchapter, including a balanced recycling effort.  Authorizes TNRCC, based on TNRCC's review, to make recommendations to the legislature on ways to improve the balance of the recycling effort.

 

(i)  Requires TNRCC to provide to each county and municipality of this state information regarding the legal disposal and recycling of covered television equipment.  Requires that the information be provided in writing. 

 

Sec. 361.985.  ENFORCEMENT.  (a) Authorizes TNRCC to conduct audits and inspections to ensure compliance with this subchapter and rules adopted under this subchapter. 

 

(b)  Requires TNRCC and the attorney general, as appropriate, to enforce this subchapter and, except as provided by Subsections (d) and (e), take enforcement action against a television manufacturer, a retailer, or a person who recycles covered television equipment.

 

(c) Authorizes the executive director of TNRCC or the attorney general to institute a suit under Section 7.032 (Injunctive Relief), Water Code, to enjoin an activity related to the sale of covered television equipment in violation of this subchapter. 

 

(d) Requires TNRCC to issue a warning notice to a person on the person's first violation of this subchapter.  Requires the person to comply with this subchapter not later than the 60th day after the date the warning notice is issued.

 

(e) Requires a retailer who receives a warning notice from TNRCC that the retailer's inventory violates this subchapter because it includes covered television equipment from a television manufacturer that is not in compliance with this subchapter to bring the inventory into compliance with this subchapter not later than the 60th day after the date the warning notice is issued.

 

Sec. 361.986.  FINANCIAL AND PROPRIETARY INFORMATION.  Provides that financial or proprietary information submitted to TNRCC under this subchapter is exempt from public disclosure under Chapter 552 (Public Information), Government Code. 

 

Sec. 361.987.  BIENNUAL REPORT TO LEGISLATURE.  (a) Requires TNRCC to compile information from television manufacturers and issue an electronic report to the committee in each house of the legislature having primary jurisdiction over environmental matters not later than March 1 of each even-numbered year.

 

(b) Sets forth information required to be included in the report.

 

Sec.  361.988.  FEES.  (a) Provides that except as provided by Sections 361.976(a), this subchapter does not authorize TNRCC to impose a fee, including a recycling fee, on a consumer, television manufacturer, retailer, or person who recycles covered television equipment. 

 

(b) Authorizes fees or costs collected under this subchapter to be used by TNRCC only to implement this subchapter. 

 

Sec. 361.989.  CONSUMER RESPONSIBILITIES.  (a) Provides that a consumer is responsible for any information in any form left on the consumer's covered television equipment that is collected or recycled.

 

(b) Provides that a consumer is encouraged to learn about recommended methods for recycling covered television equipment that has reached the end of its useful life by visiting TNRCC's and television manufacturers' Internet websites or calling their toll-free telephone numbers.

 

Sec. 361.990.  MANAGEMENT OF COLLECTED TELEVISION EQUIPMENT.  (a) Requires that covered television equipment collected under this subchapter be disposed of or recycled in a manner that complies with federal, state, and local law.

 

(b) Requires TNRCC to adopt as standards for recycling or reuse of covered television 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, Incorporated, April 25, 2006, or other standards from a comparable nationally recognized organization.

 

Sec. 361.991.  STATE PROCUREMENT REQUIREMENTS.  (a)  Defines, in this section, "state agency."

 

(b) Requires a person who submits a bid for a contract with a state agency for the purchase or lease of covered television equipment to be in compliance with this subchapter.

 

(c) Requires a state agency that purchases or leases covered television equipment to require a prospective bidder to certify the bidder's compliance with this subchapter before the agency may accept the prospective bidder's bid.

 

(d)  Requires the state, in considering bids for a contract for covered television equipment, in addition to any other preferences provided under other laws of this state, to give special preference to a manufacturer that:

 

(1) through its recovery plan collects more than its market share allocation; or

 

(2) provides collection sites or recycling events in any county located in a council of governments region in which there are fewer than six permanent collection sites open at least twice each month.

 

(e)  Requires the comptroller of public accounts to adopt rules to implement this section.

 

Sec. 361.992. FEDERAL PREEMPTION; EXPIRATION.  (a) Authorizes TNRCC to adopt an agency statement that interprets a federal law as preemptive of this subchapter if federal law establishes a national program for the collection and recycling of covered television equipment and TNRCC determines that the federal law substantially meets the purposes of this subchapter.

 

(b) Provides that this subchapter expires on the date TNRCC issues a statement under this section.

 

SECTION 2.  Amends Sections 7.052(b-1) and (b-2), Water Code, as follows:

 

(b-1) Prohibits the amount of the penalty assessed against a manufacturer that does not label its computer equipment or covered television equipment  or adopt and implement a recovery plan as required by Section 361.955 (Manufacturer Responsibilities), 361.975, or 361.978, Health and Safety Code, as applicable, from exceeding $10,000 for the second violation or $25,000 for each subsequent violation.  Provides that a penalty under this subsection is in addition to any other penalty that may be assessed for a violation of Subchapter Y or Z, Chapter 361, Health and Safety Code.

 

(b-2)  Prohibits the amount of the penalty for a violation of Subchapter Y or Z, Chapter 361, Health and Safety Code, except as provided by Subsection (b-1), from exceeding $1,000 for the second violation or $2,000 for each subsequent violation.  Provides that a penalty under this subsection is in addition to any other penalty that may be assessed for a violation of Subchapter Y or Z, Chapter 361, Health and Safety Code.

 

SECTION 3.  (a) Requires the Texas Commission on Environmental Quality (TCEQ) to adopt rules required to implement this Act not later than May 1, 2012.

 

(b) Prohibits this Act from being enforced before July 1, 2012.

 

(c) Provides that a report required under Section 361.976, Health and Safety Code, as added by this Act, is not required to be prepared or submitted for the first time before January 31, 2013.

 

(d)  Provides that a recovery plan required under Section 361.978, Health and Safety Code, as added by this Act, is not required to be prepared and submitted before January 31, 2013.

 

(e)  Provides that a collection report required under Section 361.980, Health and Safety Code, as added by this Act, is not required to be prepared and submitted for the first time before January 31, 2015.

 

(f)  Provides that a retailer of covered television equipment is not required to provide the information described by Section 361.981(b), Health and Safety Code, as added by this Act, before the date on which TCEQ rules implementing this Act take effect. 

 

(g)  Requires TCEQ, not later than April 1, 2013, to prepare and post for the first time the list required under Section 361.984(a), Health and Safety Code, as added by this Act.

 

(h)  Requires TCEQ, not later than November 1, 2013, to establish for the first time the state recycling rate required under Section 361.984(f), Health and Safety Code, as added by this Act.

 

(i)  Requires TCEQ, not later than December 1, 2013, to provide for the first time to each applicable television manufacturer the television manufacturer's market share allocation as required under Section 361.984(g), Health and Safety Code, as added by this Act.

 

(j)  Authorizes a retailer of television equipment, notwithstanding Section 361.985, Health and Safety Code, as added by this Act, to sell television equipment inventory that the retailer acquired before September 1, 2012, without incurring a penalty.

 

(k)  Provides that TCEQ is not required to prepare or submit for the first time the report required under Section 361.987, Health and Safety Code, as added by this Act, before March 1, 2014.

 

SECTION 4.  Effective date: September 1, 2011.