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  83R125 JAM-F
 
  By: Rodriguez of Travis H.B. No. 1473
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to water quality improvement and pollution reduction
  through beverage container recycling incentives; assessing a fee;
  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 376 to read as follows:
  CHAPTER 376. TEXAS BEVERAGE CONTAINER RECYCLING INCENTIVE PROGRAM
  SUBCHAPTER A.  GENERAL PROVISIONS
         Sec. 376.001.  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)  wine coolers;
                     (F)  soda;
                     (G)  water, including mineral water and vitamin
  water;
                     (H)  carbonated water, including carbonated
  mineral water;
                     (I)  carbonated soft drinks;
                     (J)  noncarbonated soft drinks and sport drinks;
                     (K)  noncarbonated fruit drinks;
                     (L)  energy drinks;
                     (M)  coffee and tea drinks; and
                     (N)  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.
               (3)  "Consortium" means the Texas Beverage Container
  Recycling Consortium.
               (4)  "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.
               (5)  "Distributor" means a person who distributes
  beverages in beverage containers to retail dealers.
               (6)  "Incentive program" means the Texas beverage
  container recycling program established under this chapter.
               (7)  "Infant formula" means any liquid food sold as an
  alternative for human milk for the feeding of infants.
               (8)  "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 Section
  5(b)(3), the Food, Drug, and Cosmetic Act (21 U.S.C. Section
  360ee).
               (9)  "Redemption center" means an operation approved by
  the consortium to redeem beverage containers under this chapter and
  includes a manned operation or a mechanical device that accepts
  empty beverage containers and issues a cash refund or a redeemable
  credit slip with a value not less than the container's refund value.
               (10)  "Refund" means a payment by a redemption center
  under Section 376.201 to a person who presents a beverage container
  at the redemption center.
               (11)  "Retail dealer" means a person who sells a
  beverage in a beverage container to a consumer.
         Sec. 376.002.  TEXAS BEVERAGE CONTAINER RECYCLING
  CONSORTIUM. (a) The consortium is an association formed to
  administer the incentive program.
         (b)  The consortium consists of nine members appointed by the
  governor as follows:
               (1)  one distributor of alcoholic beverages;
               (2)  one distributor of nonalcoholic beverages;
               (3)  one recycler;
               (4)  one beverage retailer;
               (5)  one representative from the waste industry;
               (6)  one redemption center operator;
               (7)  one container processor or remanufacturer;
               (8)  one representative from the comptroller's office;
  and
               (9)  one representative from the general public.
         (c)  The members serve staggered terms of three years with
  three members' terms expiring June 1 of each year.
         (d)  The members shall appoint an executive director to
  oversee the consortium's operation.
         Sec. 376.003.  ADMINISTRATION AND RULES.  (a)  In
  administering the incentive program, the consortium shall:
               (1)  enter into appropriate agreements approving
  redemption centers under Section 376.151;
               (2)  enforce compliance with the provisions of this
  chapter;
               (3)  develop and implement a marketing plan to provide
  information and educate consumers about the incentive program;
               (4)  conduct any audit of the incentive program the
  comptroller determines is necessary;
               (5)  develop an operating budget for the incentive
  program;
               (6)  ensure the solvency of the incentive program's
  account;
               (7)  develop a system for reimbursement of deposits and
  refunds and for distribution of handling fees;
               (8)  develop a system for monitoring the number of
  containers sold by distributors and the number of containers
  returned to redemption centers and curbside recycling centers;
               (9)  develop a system to prevent fraudulent use of the
  incentive program;
               (10)  administer an account as provided by Section
  376.104;
               (11)  adopt procedures and forms necessary to implement
  this chapter; and
               (12)  develop and maintain a publicly accessible
  website to provide information about the program, including
  redemption center locations.
         (b)  The comptroller, after consultation with the
  consortium, may adopt rules necessary to implement this chapter.
         Sec. 376.004.  CRIMINAL PENALTIES.  A person commits an
  offense if the person knowingly violates Section 376.051, 376.101,
  376.102, 376.201, or 376.204. An offense under this section is a
  Class C misdemeanor.
         Sec. 376.005.  REPORT TO LEGISLATURE.  Not later than
  November 1 of each year, the consortium shall submit a report to the
  governor, lieutenant governor, speaker of the house of
  representatives, the comptroller, the Texas Commission on
  Environmental Quality, and the committee in each house of the
  legislature that has primary jurisdiction over environmental
  matters about the progress and success of the incentive program.
  SUBCHAPTER B. REFUND VALUE AND LABELING OF BEVERAGE CONTAINERS
         Sec. 376.051.  REFUND VALUE AND LABEL REQUIRED.  (a)  Except
  as provided by Subsection (b), a person may not distribute, sell, or
  offer for sale in this state a beverage container unless the
  container:
               (1)  has:
                     (A)  a fluid capacity of less than 24 ounces and a
  refund value of five cents; or
                     (B)  a fluid capacity of at least 24 ounces and a
  refund value of 10 cents; and
               (2)  is labeled as required by Section 376.052.
         (b)  A person may distribute, sell, or offer for sale in this
  state a beverage container that does not have a refund value if:
               (1)  the container has a fluid capacity of more than one
  gallon; or
               (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.
         Sec. 376.052.  LABELING.  (a) A beverage container required
  to have a refund value under Section 376.051 that is distributed or
  offered for sale in this state must have legibly stamped, labeled,
  or embossed on the container:
               (1)  the refund value of the container;
               (2)  the name "Texas" or the abbreviation "TX"; and
               (3)  other language as required by the consortium.
         (b)  Any beverage container intended for sale in this state
  must be printed, embossed, stamped, labeled, or otherwise marked
  with a universal product code or similar machine-readable indicium.
  SUBCHAPTER C. COLLECTION OF DEPOSIT
         Sec. 376.101.  COLLECTION OF DEPOSIT BY DISTRIBUTOR AND
  RETAIL DEALER.  (a)  A distributor shall collect a deposit of 5 or 10
  cents, as established by Section 376.051, from a retail dealer for
  each beverage container that the distributor sells to the retail
  dealer.
         (b)  A retail dealer shall collect a deposit of 5 or 10 cents,
  as established by Section 376.051, from a consumer for each
  beverage container that the retail dealer sells to the consumer.
         (c)  A retail dealer who sells one or more beverage
  containers to a consumer shall list the beverage container deposit
  paid as a separate line item on a receipt given to the consumer. The
  deposit may not be included in any sales tax calculation.
         Sec. 376.102.  REMITTANCE OF DEPOSITS BY DISTRIBUTOR.  Not
  later than the fifth day of each month, a distributor shall remit to
  the consortium the deposits collected by the distributor under
  Section 376.101 during the preceding month.
         Sec. 376.103.  MONTHLY REPORT. (a)  Not later than the fifth
  day of each month, a distributor who collects a deposit under
  Section 376.101 shall report to the consortium, on a form approved
  by the consortium:
               (1)  the total amount of deposits collected during the
  preceding month; and
               (2)  the number of beverage containers sold during the
  preceding month separated by deposit amount and material of
  container.
         (b)  The consortium may require a distributor to include in
  the report required by Subsection (a) other information the
  consortium considers necessary.
         (c)  The information contained in the report required by this
  section is confidential and may not be disclosed by the consortium
  or an officer or employee of the consortium.
         Sec. 376.104.  INCENTIVE PROGRAM ACCOUNT.  (a) Deposits
  collected under this chapter shall be deposited to the credit of an
  account maintained by the consortium. Money in the account may be
  allocated only for:
               (1)  reimbursements and handling fees paid to
  redemption centers or curbside recycling programs, as applicable;
               (2)  administration of this chapter;
               (3)  providing information and educating consumers
  about the incentive program;
               (4)  the purposes authorized under Subsections (b) and
  (c); and
               (5)  implementation of the state's water infrastructure
  plan.
         (b)  At the end of each state fiscal biennium, two percent of
  the money in the account that is unencumbered must be redistributed
  to beverage distributors in proportion to the amount that each
  distributor contributed to the account.
         (c)  On the last day of each state fiscal biennium, the
  consortium shall send to the comptroller a fee in the amount of two
  and one-half percent of the unencumbered balance of the account for
  deposit in the state treasury to the credit of the Texas Commission
  on Environmental Quality. Money deposited under this subsection
  may be appropriated only for the purposes of Section 361.014(b).
  The money must be allocated as provided by that subsection and each
  planning region shall include in the biennial report issued under
  that subsection information detailing how the money is spent. This
  subsection expires when the state recycling rate reaches 65
  percent, as determined by the comptroller based on information
  available from the consortium and local governments and regional
  planning commissions that receive money allocated as provided by
  Section 361.014(b).
  SUBCHAPTER D.  REDEMPTION CENTERS
         Sec. 376.151.  ESTABLISHMENT OF REDEMPTION CENTER
  AGREEMENTS.  (a)  To facilitate the return of empty beverage
  containers, a retail dealer, local government, or independent
  entity may establish, own, and operate a redemption center at which
  empty containers may be returned for their refund value.
         (b)  The retail dealer, local government, or independent
  entity must file an application for approval of a redemption center
  with the consortium.  The application must provide:
               (1)  the name, mailing address, telephone number,
  e-mail address, and title of the person responsible for the
  establishment and operation of the redemption center;
               (2)  the physical address of the redemption center;
               (3)  the applicant's federal tax identification number,
  if applicable; and
               (4)  any additional information the consortium
  requires as necessary or convenient for the implementation of this
  section.
         (c)  The consortium shall approve a redemption center if it
  finds the redemption center will provide a convenient service to
  persons for the return of empty beverage containers.
         (d)  The consortium at any time may review its approval of a
  redemption center. After written notice to the person responsible
  for the establishment and operation of the redemption center and to
  each retail dealer located within a two-mile radius of the
  redemption center, the consortium may, after providing the owner or
  operator an opportunity for a hearing to verify facts and resolve
  the matter at issue, withdraw approval of a redemption center if the
  consortium finds the redemption center has violated any terms of
  the approval of the redemption center.
         (e)  The consortium and applicant shall establish the
  required hours of operation for a redemption center in the approval
  under Subsection (c).
         (f)  The consortium may not limit the number of redemption
  centers within a geographic area.
  SUBCHAPTER E. BEVERAGE CONTAINER REDEMPTION
         Sec. 376.201.  USED BEVERAGE CONTAINER REDEMPTION.  Except
  as provided by Sections 376.202 and 376.203, a redemption center
  shall accept a used beverage container that has a refund value as
  established by Section 376.051 and shall pay the refund value of the
  container in cash to the person presenting the container if the
  container is stamped, labeled, or embossed with the refund value
  and the name "Texas" or the abbreviation "TX."
         Sec. 376.202.  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; or
               (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.
         Sec. 376.203.  REDEMPTION BY WEIGHT.  (a)  The consortium
  shall establish:
               (1)  a procedure for providing a reimbursement based on
  the weight of the beverage containers presented to be used in
  circumstances in which the number of containers is so large that
  counting the containers individually would be burdensome on a
  redemption center or curbside recycling program;
               (2)  a per pound redemption value for containers
  composed of each material covered by this chapter that are redeemed
  in the manner described by Subdivision (1);
               (3)  a per pound redemption value for unsorted
  containers composed of any material covered by this chapter that
  are collected as part of a single-stream recycling program and
  redeemed in the manner described by Subdivision (1);
               (4)  a per pound handling fee to be paid to redemption
  centers for containers redeemed in the manner described by
  Subdivision (1); and
               (5)  procedures for regulating the accuracy of scales
  used to weigh containers under this section.
         (b)  Not more than every six months the consortium may adjust
  the per pound rates described by Subsection (a).
         Sec. 376.204.  RECYCLING OF BEVERAGE CONTAINERS BY
  REDEMPTION CENTER AND CURBSIDE RECYCLING PROGRAM. A redemption
  center or curbside recycling program shall recycle the returned
  used beverage containers by:
               (1)  selling the material generated by the crushed or
  shredded used beverage containers to a processor or other end user;
  or
               (2)  another method prescribed by the consortium.
         Sec. 376.205.  REIMBURSEMENT OF REDEMPTION CENTERS BY
  CONSORTIUM; HANDLING FEE.  (a) On submission of a completed invoice
  of refunds paid by a redemption center on a form adopted by the
  consortium, the consortium shall pay to the redemption center an
  amount equal to the redemption value established by Section 376.051
  or 376.203, as applicable, plus a handling fee of:
               (1)  one and one-half cents for each beverage container
  redeemed by the redemption center under Section 376.201; or
               (2)  the per pound amount determined under Section
  376.203 for beverage containers redeemed in the manner described by
  that section.
         (b)  The consortium shall reimburse a redemption center
  under Subsection (a) not later than the fifth working day after the
  date the consortium receives the invoice submitted by the
  redemption center.
         (c)  The consortium may adjust a handling fee to account for
  changes in market conditions. The consortium may periodically
  conduct research to determine if an adjustment is necessary.
         Sec. 376.206.  REIMBURSEMENT OF CURBSIDE RECYCLING PROGRAM
  BY CONSORTIUM.  (a)  On submission of a completed report, on a form
  adopted by the consortium, indicating the number or weight, as
  applicable, of beverage containers collected by a curbside
  recycling program that are covered under this chapter, the
  consortium shall pay to the curbside recycling program an amount
  equal to the redemption value established by Section 376.203.
         (b)  The consortium shall reimburse a curbside recycling
  program under Subsection (a) not later than the fifth working day
  after the date the consortium receives the invoice submitted by the
  curbside recycling program.
         Sec. 376.207.  REPORTING REQUIREMENTS. Each redemption
  center and curbside recycling program shall submit a report with
  the submission of the completed invoice required under Sections
  376.205 and 376.206, respectively, to the consortium, on a form
  approved by the consortium, that provides:
               (1)  the redemption value of beverage containers
  collected by the redemption center or curbside recycling program;
               (2)  the number or weight of beverage containers
  collected by the center or curbside recycling program; and
               (3)  an invoice or other documentation that provides
  proof that the collected recycled material was recycled in a manner
  described under Section 376.204.
         Sec. 376.208.  NOTICE.  The consortium must provide to each
  redemption center and curbside recycling program, as applicable,
  written notice at least 30 days before implementation of a change in
  per pound rates under Section 376.204 or handling fees under
  Section 376.205.
         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 deposit under
  Chapter 376, Health and Safety Code.
         SECTION 3.  (a)  Not later than September 1, 2014, the
  comptroller of public accounts, after consultation with the Texas
  Beverage Container Recycling Consortium, shall adopt any rules
  necessary to implement Chapter 376, Health and Safety Code, as
  added by this Act.
         (b)  The requirements of and penalties imposed by Chapter
  376, Health and Safety Code, as added by this Act, do not apply to
  any person before January 1, 2015.
         SECTION 4.  This Act takes effect September 1, 2013.