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A BILL TO BE ENTITLED
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AN ACT
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relating to an incentive program to promote beverage container |
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recycling; imposing a fee. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle B, Title 5, Health and Safety Code, is |
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amended by adding Chapter 375 to read as follows: |
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CHAPTER 375. BEVERAGE CONTAINER RECYCLING REFUND PROGRAM |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 375.001. DEFINITIONS. In this chapter: |
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(1) "Beverage" means an alcoholic, nonalcoholic, |
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carbonated, or noncarbonated drink prepared in liquid, |
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ready-to-drink form and intended for human consumption. |
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(2) "Beverage container" means a glass, metal, or |
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plastic vessel that is hermetically sealed or capped and that |
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contains a beverage at the time it is sold or offered for sale. The |
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term does not include a container that: |
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(A) has a fluid capacity of more than one gallon; |
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(B) contains milk or another dairy product; |
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(C) contains infant formula, including any |
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liquid food sold as an alternative for human milk for the feeding of |
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infants; or |
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(D) contains medical food, including: |
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(i) a liquid food that is formulated to be |
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consumed or administered under the supervision of a physician and |
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that is intended for specific dietary management of diseases or |
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health conditions for which distinctive nutritional requirements, |
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based on recognized scientific principles, are established by |
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medical evaluation; and |
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(ii) a product that meets the definition of |
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a medical food under Section 5(b) of the Orphan Drug Act (21 U.S.C. |
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Section 360ee(b)). |
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(3) "Commission" means the Texas Commission on |
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Environmental Quality. |
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(4) "Consortium" means the Texas Beverage Container |
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Recycling Consortium established under this chapter. |
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(5) "Consumer" means a person who purchases at retail |
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a beverage in a beverage container. The term includes a lodging, |
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eating, or drinking establishment if beverages are generally |
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consumed on the establishment's premises. The term does not |
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include a person who purchases a beverage from a lodging, eating, or |
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drinking establishment for consumption on the establishment's |
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premises. |
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(6) "Dealer" means a person in this state that sells to |
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a consumer a sealed beverage in a beverage container. |
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(7) "Distributor" means a person that sells beverages |
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in beverage containers to a dealer in this state. The term includes |
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a manufacturer or importer and a dealer that self-distributes its |
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own brand. |
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(8) "Manufacturer" means a person that fills beverage |
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containers for sale to a distributor or dealer. |
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(9) "Redemption center" means a manned or unmanned |
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operation approved by the consortium under this chapter that |
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redeems returned empty beverage containers by collecting beverage |
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containers from persons who deliver to the operation beverage |
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containers and issuing to a person delivering beverage containers a |
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refund for each with a value not less than the beverage container's |
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refund value. |
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(10) "Refund" means a payment by a redemption center |
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under Section 375.101 to a person who presents a beverage container |
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at the redemption center. |
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(11) "Refund program" means the beverage container |
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recycling program established under this chapter. |
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Sec. 375.002. RULES. The comptroller may adopt rules to |
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administer this chapter. The comptroller shall consult the |
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consortium, the advisory committee established under Section |
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375.003, and the commission in developing for proposal rules to |
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administer this chapter. |
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Sec. 375.003. ADVISORY COMMITTEE. (a) The comptroller |
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shall appoint an advisory committee to advise the comptroller and |
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the consortium on the implementation of this chapter. In |
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considering persons to appoint to the advisory committee, the |
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comptroller shall consult the consortium and the commission. |
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(b) The advisory committee is composed of the following nine |
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members: |
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(1) one distributor of alcoholic beverages; |
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(2) one distributor of nonalcoholic beverages; |
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(3) one recycler; |
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(4) one beverage retailer; |
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(5) one member representing the waste industry; |
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(6) one owner or operator of a redemption center; |
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(7) one member representing a container processor or |
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remanufacturer; |
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(8) one representative of a municipality with a |
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population of less than 10,000; and |
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(9) one representative of a municipality with a |
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population of 10,000 or more. |
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(c) A member of the advisory committee serves at the will of |
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the comptroller. |
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Sec. 375.004. ANNUAL REPORT. Not later than November 1 of |
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each year, the consortium shall submit a report to the lieutenant |
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governor, the speaker of the house of representatives, the |
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comptroller, the commission, and the committee in each house of the |
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legislature that has primary jurisdiction over environmental |
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matters about the progress and success of the refund program. The |
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report must be submitted electronically in a format prescribed by |
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the officer or entity to which the report is transmitted. |
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SUBCHAPTER B. TEXAS BEVERAGE CONTAINER RECYCLING CONSORTIUM |
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Sec. 375.051. CONSORTIUM AND APPROVED PLAN REQUIRED; |
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NON-JOINING DISTRIBUTORS; MEMBERSHIP FEES. (a) Distributors shall |
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form, and a distributor shall participate in, the Texas Beverage |
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Container Recycling Consortium. The consortium must be a nonprofit |
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corporation under Chapter 22, Business Organizations Code, that is |
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formed for the purpose of creating and implementing a plan to meet |
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the requirements of this chapter. The consortium's organizational |
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and operational structure must be approved by the comptroller. |
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(b) The consortium shall develop a plan in accordance with |
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Section 375.052 and submit the plan to the comptroller for |
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approval. The comptroller's approval of the consortium's plan |
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submitted under this subsection constitutes the comptroller's |
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initial approval of the nonprofit corporation for purposes of |
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Subsection (a). The comptroller may approve the initial plan on a |
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provisional basis and require an amended plan to be submitted not |
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later than a date established by the comptroller. |
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(c) A distributor may not sell or supply beverages in |
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beverage containers in this state if the distributor has not joined |
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the consortium. |
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(d) The consortium may sue a distributor that has not joined |
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the consortium in an appropriate court to require compliance with |
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the duty to join the consortium and to enforce Subsection (c). The |
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consortium may recover court costs and attorney's fees if it |
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prevails in a suit brought under this subsection. |
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(e) The consortium shall assess and collect membership fees |
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from its members in accordance with Section 375.054. |
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Sec. 375.052. PLAN REQUIREMENTS. To be approved under this |
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subchapter, a plan must: |
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(1) be based on objective and measurable criteria to |
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the extent possible; |
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(2) include provisions sufficient to enable the |
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comptroller to determine: |
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(A) whether the consortium, distributors, |
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redemption centers, and other affected persons are in compliance |
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with the plan and this chapter; and |
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(B) whether the plan is cost-effective and |
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sufficiently convenient to the public; |
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(3) establish reasonable standards and guidelines to |
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ensure that redemption centers are efficient, cost-effective, and |
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convenient for the public; |
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(4) show how the consortium will encourage public |
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participation in the program and require distributor compliance |
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with this chapter; |
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(5) include a marketing plan to provide information |
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and educate consumers about the refund program; |
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(6) include requirements to ensure transparency and |
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adequate recordkeeping to facilitate audits of the refund program |
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by the comptroller or the consortium; |
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(7) include an operating budget for the refund |
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program; |
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(8) show how the consortium will ensure the solvency |
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of the recycling refund trust fund; |
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(9) provide for a system for payment of the deposit by |
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consumers at point of sale and transferring the deposit to the |
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recycling refund trust fund; |
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(10) provide for a system for monitoring the number of |
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beverages in beverage containers sold by distributors in or into |
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this state and the number of beverage containers returned to |
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redemption centers and curbside recycling programs; |
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(11) provide for a system to prevent fraudulent use of |
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the refund program through current statutes prohibiting fraud and |
|
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theft that includes cost-effective measures to ensure to the extent |
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|
possible that beverage containers purchased outside of this state |
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|
are not returned for refund under this chapter; |
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(12) describe how the consortium will administer the |
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recycling refund trust fund under Section 375.056; |
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(13) prescribe procedures and forms necessary to |
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implement the plan and this chapter; |
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(14) provide a link to a publicly accessible Internet |
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website developed and maintained by the consortium that provides |
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information about the program, including redemption center |
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locations; |
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(15) prescribe labeling standards for manufacturers |
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and distributors; |
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(16) include standards and procedures for payment by |
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the consortium to curbside collection programs for beverage |
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containers collected at curbside based on the number of containers |
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collected and the quality of those containers as compared to the |
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quality of containers collected at redemption centers; |
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(17) include standards for efficiently and |
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|
cost-effectively approving redemption centers operated by a local |
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government or private operator; |
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(18) include standards for making refund payments |
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based on the weight of returned beverage containers; |
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|
(19) include standards for material acceptance and |
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refusal by redemption centers; |
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(20) establish requirements and standards for |
|
|
information necessary to compute a recycling rate for beverage |
|
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containers collected through redemption centers; and |
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(21) to the extent feasible, establish requirements |
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|
and standards for information necessary to compute a recycling rate |
|
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for beverage containers collected through curbside recycling |
|
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programs and other means. |
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Sec. 375.053. PLAN APPROVAL; APPLICABILITY OF APPROVED |
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PLAN. (a) Before approving the consortium's plan submitted under |
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Section 375.051(b), the comptroller: |
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(1) shall consult the advisory committee; |
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(2) shall publish notice and the text of the proposed |
|
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plan on the comptroller's Internet website; |
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|
(3) shall provide a reasonable period for and solicit |
|
|
comments from the public, distributors, dealers, manufacturers, |
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|
and other interested persons, including local government entities |
|
|
and other persons involved in collection efforts; |
|
|
(4) may hold workshops or informal hearings on the |
|
|
proposed plan; and |
|
|
(5) may allow the consortium to amend the proposed |
|
|
plan in response to comments from the comptroller or the public. |
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|
(b) The comptroller may approve the plan only if the |
|
|
comptroller determines that the plan: |
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(1) complies with Section 375.052; |
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|
(2) is supported by the available evidence; and |
|
|
(3) will accomplish the purposes of this chapter in a |
|
|
manner that is feasible, well-founded, cost-effective, and |
|
|
convenient to the public. |
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(c) Standards, procedures, guidelines, and requirements |
|
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established in a plan approved by the comptroller are binding, as |
|
|
applicable, on: |
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(1) persons engaged in commerce involving beverage |
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containers in this state, to the extent allowed under federal law; |
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|
(2) persons and local government entities engaged in |
|
|
collecting or sorting for recycling or other disposition used |
|
|
beverage containers; and |
|
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(3) redemption centers. |
|
|
(d) Plan amendments must be approved by the comptroller in |
|
|
accordance with this section. |
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Sec. 375.054. CONSORTIUM FINANCES; FEES PAID BY CONSORTIUM |
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MEMBERS. (a) The consortium shall charge distributors a |
|
|
membership fee. The fee must be set in an amount that is sufficient |
|
|
to cover the cost to the consortium of implementing the plan and |
|
|
administering this chapter, including the cost of: |
|
|
(1) operating and maintaining, or providing for the |
|
|
operation and maintenance of, redemption centers built or operated |
|
|
under this chapter; and |
|
|
(2) paying to the comptroller an amount equal to the |
|
|
comptroller's costs and the commission's costs incurred in |
|
|
administering this chapter, as directed by the comptroller. |
|
|
(b) The consortium shall provide to the comptroller a |
|
|
description of how the consortium computes and sets the membership |
|
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fee and the process by which the consortium collects the fee from |
|
|
distributors. |
|
|
(c) The amount of the membership fee to be paid by a |
|
|
distributor must be: |
|
|
(1) generally proportional to the relative number of |
|
|
beverage containers that the distributor introduces into the stream |
|
|
of commerce in this state; and |
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|
(2) based on a reasonable estimate and consideration |
|
|
of the cost to the consortium of collecting and processing for |
|
|
recycling or other disposal the distributor's beverage containers. |
|
|
(d) The consortium shall add to the amount of the membership |
|
|
fee to be paid by a distributor the consortium's best reasonable |
|
|
estimate of the cost to the consortium of: |
|
|
(1) collecting, processing, and disposing of beverage |
|
|
containers the distributor introduces into the stream of commerce |
|
|
in this state that are difficult to recycle or unsuitable for |
|
|
recycling; and |
|
|
(2) higher payments made to curbside collection |
|
|
programs due to containers described by Subdivision (1). |
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(e) The consortium shall establish a date on which the |
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membership fee charged to a distributor under this section is due. |
|
|
If a distributor is more than 180 days delinquent in payment of a |
|
|
fee, the consortium may bring suit to recover the fee, court costs, |
|
|
and reasonable attorney's fees. |
|
|
Sec. 375.055. CERTAIN BEVERAGE DONATIONS. A manufacturer |
|
|
or distributor that donates beverages shall pay to the consortium |
|
|
the required deposit for the donated beverage containers in the |
|
|
manner prescribed by the consortium. |
|
|
Sec. 375.056. RECYCLING REFUND TRUST FUND. Deposits |
|
|
collected under this chapter, including deposits collected under |
|
|
Section 375.055, and membership fees collected from distributors |
|
|
shall be deposited to the credit of a recycling refund trust fund |
|
|
maintained by the consortium in a depository chosen by the |
|
|
consortium. Except as provided by Section 375.152(b), money in the |
|
|
trust fund may be allocated and expended only for: |
|
|
(1) construction, operation, and maintenance of |
|
|
redemption centers; |
|
|
(2) operation of technology-based redemption centers, |
|
|
including reverse vending machines and bag-drop receptacles, that |
|
|
provide convenient cost-effective methods of paying refunds; |
|
|
(3) leasing agreements and liability insurance on |
|
|
redemption centers; |
|
|
(4) appropriate payments to curbside recycling |
|
|
programs for beverage containers that, based on reliable data |
|
|
submitted to the consortium by a program, meet quality standards |
|
|
determined by the consortium and are ultimately recycled; |
|
|
(5) making refund payments to persons who return a |
|
|
beverage container to a redemption center and receive a refund; |
|
|
(6) reimbursing a local government entity or |
|
|
independent entity operating a redemption center, as authorized by |
|
|
the consortium, for refunds paid to persons returning beverage |
|
|
containers; |
|
|
(7) providing information to and educating consumers |
|
|
about the refund program; and |
|
|
(8) administering this chapter and reimbursing the |
|
|
comptroller and the commission for costs incurred in administering |
|
|
this chapter. |
|
|
Sec. 375.057. COMPTROLLER OVERSIGHT; RESERVES. The |
|
|
comptroller may: |
|
|
(1) require the consortium to provide financial |
|
|
information; |
|
|
(2) conduct financial audits of the refund program; |
|
|
and |
|
|
(3) require the consortium to maintain reserves in an |
|
|
amount determined by the comptroller in accordance with applicable |
|
|
financial accounting standards. |
|
|
Sec. 375.058. LABEL REQUIRED. (a) A person may not |
|
|
distribute, sell, or offer for sale in this state a beverage in a |
|
|
beverage container unless the beverage container meets labeling |
|
|
standards established by the consortium in a plan approved by the |
|
|
comptroller. |
|
|
(b) A person may not sell at retail in this state a beverage |
|
|
in a beverage container unless the person collects or provides for |
|
|
the collection of the deposit on the beverage container in |
|
|
accordance with Subchapter C and in a manner established by the |
|
|
consortium in a plan approved by the comptroller. |
|
|
SUBCHAPTER C. DEPOSITS AND REFUNDS FOR BEVERAGE CONTAINERS; |
|
|
REDEMPTION CENTERS |
|
|
Sec. 375.101. AMOUNT OF DEPOSIT AND REFUND FOR BEVERAGE |
|
|
CONTAINERS. (a) The deposit on a beverage container is five cents. |
|
|
(b) A person who returns a beverage container to a |
|
|
redemption center is eligible to receive a refund of five cents for |
|
|
the returned container. |
|
|
Sec. 375.102. PROCEDURES. The consortium shall establish |
|
|
efficient, convenient, and cost-effective procedures for |
|
|
collection of the beverage container deposit and payment of the |
|
|
deposit refunds. |
|
|
Sec. 375.103. REDEMPTION CENTERS. (a) A person or local |
|
|
governmental entity may not operate a redemption center without the |
|
|
consortium's approval. |
|
|
(b) A person or local governmental entity that operates a |
|
|
redemption center must do so according to standards and guidelines |
|
|
established by the consortium. |
|
|
SUBCHAPTER D. RECYCLING TARGETS |
|
|
Sec. 375.151. RECYCLING TARGETS FOR BEVERAGE CONTAINERS. |
|
|
(a) The consortium shall implement a plan approved under this |
|
|
chapter to meet the following recycling rates for beverage |
|
|
containers sold or distributed in this state: |
|
|
(1) not less than 35 percent, beginning January 1, |
|
|
2027; |
|
|
(2) not less than 50 percent, beginning January 1, |
|
|
2031; |
|
|
(3) not less than 65 percent, beginning January 1, |
|
|
2035; and |
|
|
(4) an average rate of not less than 65 percent during |
|
|
each four-year period after January 1, 2035. |
|
|
(b) The recycling rate is computed by dividing the number of |
|
|
beverage containers that are recovered and recycled in a year by the |
|
|
total number of beverage containers sold or distributed in this |
|
|
state during that year. |
|
|
(c) The number of beverage containers that are recovered and |
|
|
recycled in a year is the sum of: |
|
|
(1) the number of beverage containers that are |
|
|
recovered at redemption centers and recycled in accordance with |
|
|
this chapter; and |
|
|
(2) the comptroller's estimated number of beverage |
|
|
containers recovered and ultimately recycled as a result of |
|
|
curbside collection, commercial contracts for collection and |
|
|
recycling, and other recycling methods in this state not described |
|
|
by Subdivision (1). |
|
|
(d) The comptroller by rule may establish an alternative |
|
|
method of computing the recycling rate as necessary for accuracy |
|
|
and feasibility of implementation. |
|
|
Sec. 375.152. FAILURE TO MEET RECYCLING TARGETS. (a) If |
|
|
the consortium does not meet a year's recycling rate target |
|
|
provided by Section 375.151, the consortium shall take additional |
|
|
steps to raise the recycling rate, including making increases to: |
|
|
(1) public outreach; |
|
|
(2) the number of redemption centers; and |
|
|
(3) the deposit and refund to 10 cents per beverage |
|
|
container. |
|
|
(b) If the consortium does not meet the recycling rate |
|
|
target provided by Section 375.151 before the second anniversary of |
|
|
the date the consortium was required to take additional steps under |
|
|
Subsection (a), the comptroller may require the consortium to remit |
|
|
to the state all or part of the money in the recycling refund trust |
|
|
fund established under Section 375.056. The comptroller shall hold |
|
|
money remitted under this subsection until the consortium or |
|
|
another organization provides to the comptroller a corrective plan |
|
|
to meet the recycling targets under this chapter. |
|
|
(c) The comptroller shall consult with the advisory |
|
|
committee before approving the corrective plan and releasing the |
|
|
money remitted and held under Subsection (b) to the consortium or |
|
|
other organization responsible for the approved corrective plan. |
|
|
(d) The comptroller may audit the consortium for accuracy |
|
|
and adherence to recycling targets under this chapter. The |
|
|
consortium shall reimburse the comptroller for the cost incurred by |
|
|
the comptroller in the audit process. |
|
|
SECTION 2. (a) Not later than September 1, 2024, the |
|
|
comptroller shall adopt rules for the implementation of Chapter |
|
|
375, Health and Safety Code, as added by this Act. To facilitate |
|
|
the approval of the structure and organization of the Texas |
|
|
Beverage Container Recycling Consortium and the consortium's |
|
|
initial plan, the comptroller may adopt the initial rules in the |
|
|
manner provided by law for emergency rules. |
|
|
(b) Except as otherwise provided by this Act, a dealer, |
|
|
distributor, manufacturer, redemption center, or other person |
|
|
subject to requirements imposed by the consortium plan adopted and |
|
|
approved under Chapter 375, Health and Safety Code, as added by this |
|
|
Act, shall comply with those requirements beginning January 1, |
|
|
2025. |
|
|
(c) The consortium shall submit the initial report required |
|
|
by Section 375.004, Health and Safety Code, as added by this Act, |
|
|
not later than November 1, 2025. |
|
|
SECTION 3. (a) Except as provided by Subsections (b) and |
|
|
(c) of this section, this Act takes effect September 1, 2023. |
|
|
(b) Section 375.051(c), Health and Safety Code, as added by |
|
|
this Act, takes effect October 1, 2025. |
|
|
(c) Section 375.058, Health and Safety Code, as added by |
|
|
this Act, takes effect January 1, 2025. |