Texas 2011 bill text

HB 2114

The following text was found at http://www.capitol.state.tx.us/tlodocs/82R/billtext/html/HB02114I.htm
The corresponding Senate Bill (SB 1119) can be found at http://www.capitol.state.tx.us/tlodocs/82R/billtext/html/SB01119I.htm

A BILL TO BE ENTITLED
 
AN ACT
  relating to beverage container deposits and recycling; 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 CONTAINER RECYCLING INITIATIVE
  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)  spirits;
                     (F)  wine;
                     (G)  wine coolers;
                     (H)  soda;
                     (I)  water, including mineral water;
                     (J)  carbonated water, including carbonated
  mineral water;
                     (K)  carbonated soft drinks;
                     (L)  noncarbonated soft drinks and sport drinks;
                     (M)  noncarbonated fruit drinks;
                     (N)  energy drinks;
                     (O)  coffee and tea drinks; and
                     (P)  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)  "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.
               (4)  "Convenience redemption zone" means:
                     (A)  the one-half-mile radius around a retail
  dealer with at least $2 million in food-related sales each year who
  is located in a municipality with a population of more than 50,000;
  or
                     (B)  the two-mile radius around a retail dealer
  with at least $2 million in food-related sales each year who is not
  located in a municipality described by Paragraph (A).
               (5)  "Distributor" means a person who distributes
  beverages in beverage containers to retail dealers.
               (6)  "Infant formula" means any liquid food sold as an
  alternative for human milk for the feeding of infants.
               (7)  "Medical food" means a food or beverage that is
  formulated to be consumed or administered under the supervision of
  a physician and that is intended for specific dietary management of
  diseases or health conditions for which distinctive nutritional
  requirements, based on recognized scientific principles, are
  established by medical evaluation. The term also includes any
  product that meets the definition of "medical food" under Section
  5(b)(3), the Food, Drug, and Cosmetic Act (21 U.S.C. Section
  360ee).
               (8)  "Redemption center" means an operation approved by
  the commission 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.
               (9)  "Refund" means a payment by a redemption center
  under Section 376.201 to a person who presents a beverage container
  at the redemption center.
               (10)  "Retail dealer" means a person who sells a
  beverage in a beverage container to a consumer.
         Sec. 376.002.  ADMINISTRATION AND RULES.  (a)  The
  comptroller shall establish and administer the Texas container
  recycling initiative in accordance with this chapter.
         (b)  In administering the Texas container recycling
  initiative, the comptroller shall:
               (1)  approve redemption centers under Section 376.152;
               (2)  enforce compliance with the provisions of this
  chapter;
               (3)  administer the infrastructure improvement grant
  program under Section 376.003;
               (4)  develop and implement a marketing plan to provide
  information and educate consumers about the initiative;
               (5)  conduct any audit of the initiative the
  comptroller determines is necessary;
               (6)  develop an operating budget for the initiative;
               (7)  ensure the solvency of the initiative's account;
               (8)  develop a system for reimbursement of deposits and
  refunds and for distribution of handling fees;
               (9)  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;
               (10)  develop a system for covering the start-up costs
  of the initiative as described by Section 376.105;
               (11)  administer the Texas container recycling
  initiative account as provided by Section 376.104; and
               (12)  adopt rules and forms necessary to implement this
  chapter.
         Sec. 376.003.  INFRASTRUCTURE IMPROVEMENT GRANT PROGRAM.  
  (a) The comptroller shall develop and administer a program to
  provide grants from money in the Texas container recycling
  initiative account to ensure sufficient infrastructure is
  available to increase the state recycling rate by expanding
  curbside recycling programs, municipal recycling facilities, and
  independent redemption centers.
         (b)  The total amount of money available each year under the
  grant program may not exceed five percent of the money available in
  the account.
         (c)  The comptroller may adopt guidelines to allow a regional
  planning commission, council of governments, or similar regional
  planning agency created under Chapter 391, Local Government Code,
  to apply for and receive a grant to improve the ability of the
  program to achieve its goals.
         (d)  A recipient of a grant under this section must return
  any unexpended grant money to the comptroller for redeposit into
  the account.
         (e)  A project funded by a grant under this section must
  promote cooperation between public and private entities and may not
  be used to create a competitive advantage over a private industry
  that provides recycling services.
         (f)  Not later than September 1 of each year, an entity
  receiving a grant under this section must submit a report to the
  comptroller detailing the use of the grant money. The comptroller
  shall include this information in its report to the legislature
  under 376.005.
         (g)  An application for a grant under this section must be
  made on a form provided by the comptroller and must contain the
  information required by the comptroller.
         (h)  This section expires when the state recycling rate
  reaches 65 percent, as determined by the comptroller.
         Sec. 376.004.  CRIMINAL PENALTIES. A person commits an
  offense if the person knowingly violates Section 376.051, 376.101,
  376.102, or 376.201. 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 comptroller shall submit a report to
  the governor, lieutenant governor, speaker of the house of
  representatives, and committee in each house of the legislature
  that has primary jurisdiction over environmental matters about the
  progress and success of the Texas container recycling initiative
  established under this chapter.
  [Sections 376.006-376.050 reserved for expansion]
  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 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 sell or offer for sale 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 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 commission.
         (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 indicia.
  [Sections 376.053-376.100 reserved for expansion]
  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)  The invoice for a beverage container sold by a retail
  dealer to a consumer must list the beverage container deposit as a
  separate line item. The deposit may not be included in the 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 comptroller 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 comptroller, on a form approved
  by the comptroller:
               (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 comptroller may require a distributor to include in
  the report required by Subsection (a) other information the
  comptroller considers necessary.
         (c)  The information contained in the report required by this
  section is confidential and may not be disclosed by the comptroller
  or an officer or employee of the comptroller.
         Sec. 376.104.  TEXAS CONTAINER RECYCLING INITIATIVE
  ACCOUNT.  (a) Deposits collected under this chapter shall be
  deposited to the credit of the Texas container recycling initiative
  account in the general revenue fund. Money in the account may be
  appropriated 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 Texas container recycling initiative;
               (4)  reimbursing a distributor under Section 376.105;
  and
               (5)  the purposes authorized under Section 376.003.
         (b)  At the end of each state fiscal biennium, any money in
  the account that is unencumbered must be distributed as follows:
               (1)  15 percent must be retained in the account for
  unforeseen costs associated with a higher than expected recycling
  rate; and
               (2)  85 percent must be transferred to the undedicated
  portion of the general revenue fund.
         Sec. 376.105.  FINANCING START-UP COSTS. (a) The
  comptroller may apply for, accept, receive, and administer gifts,
  grants, loans, and other funds available from any source for the
  purposes of this chapter.
         (b)  The comptroller may charge distributors an initial fee
  in an amount necessary to cover the start-up costs of the Texas
  container recycling initiative. The comptroller shall reimburse
  the distributors as sufficient money becomes available.
         (c)  The comptroller shall deposit revenue collected under
  this section to the credit of the Texas container recycling
  initiative account in the general revenue fund.
  [Sections 376.106-376.150 reserved for expansion]
  SUBCHAPTER D.  REDEMPTION CENTERS AND CONVENIENCE REDEMPTION ZONES
         Sec. 376.151.  CONVENIENCE REDEMPTION ZONES. (a)  A retail
  dealer may not sell a beverage in a beverage container eligible for
  redemption under this chapter to a consumer if there is not a
  redemption center within the retail dealer's convenience
  redemption zone.
         (b)  On petition by a retail dealer, the comptroller may
  exempt the dealer from the requirements of this section if the
  comptroller determines that extenuating circumstances support the
  exemption.
         (c)  A redemption center within a convenience redemption
  zone may be owned and operated by a retail dealer, local government,
  or independent entity.
         (d)  A retail dealer who owns and operates a redemption
  center shall register with the comptroller in the manner described
  by Section 376.152.
         Sec. 376.152.  REDEMPTION CENTERS.  (a)  To facilitate the
  return of empty beverage containers, a retail dealer, local
  government, or independent entity may establish 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 comptroller.  The application must state:
               (1)  the name, mailing address, telephone number,
  electronic 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 name and address of each retail dealer in whose
  convenience redemption zone the redemption center is located;
               (4)  the applicant's federal tax identification number,
  if applicable; and
               (5)  any additional information the comptroller by rule
  requires as necessary or convenient for the implementation of this
  section.
         (c)  The comptroller by order 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.  The
  comptroller may include in the order other provisions that the
  comptroller determines are necessary to ensure that the redemption
  center will provide a convenient service to the public.
         (d)  The comptroller 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 in whose convenience redemption zone the
  redemption center is located, the comptroller may, after a hearing,
  withdraw approval of a redemption center if the comptroller finds
  the redemption center has violated the order approving the
  redemption center.
         (e)  The comptroller by rule shall establish the required
  hours of operation for a redemption center.
         (f)  The comptroller may not limit the number of redemption
  centers within a convenience redemption zone.
  [Sections 376.153-376.200 reserved for expansion]
  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 comptroller by
  rule 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 and curbside recycling programs 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 comptroller by rule
  may adjust the per pound rates described by Subsection (a).
         Sec. 376.204.  DISPOSAL OF BEVERAGE CONTAINERS BY REDEMPTION
  CENTER AND CURBSIDE RECYCLING PROGRAM. A redemption center or
  curbside recycling program shall dispose of 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)  recycling the material in another manner
  prescribed by the comptroller.
         Sec. 376.205.  REIMBURSEMENT OF REDEMPTION CENTERS BY
  COMPTROLLER; HANDLING FEE.  (a) On submission of a completed
  invoice of refunds paid by a redemption center on a form adopted by
  the comptroller, the comptroller 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 comptroller shall reimburse a redemption center
  under Subsection (a) not later than five working days after the
  comptroller receives the invoice submitted by the redemption
  center.
         (c)  The comptroller by rule may adjust a handling fee to
  account for changes in market conditions. The comptroller may
  periodically conduct research to determine if an adjustment is
  necessary.
         Sec. 376.206.  REIMBURSEMENT OF CURBSIDE RECYCLING PROGRAM
  BY COMPTROLLER.  (a)  On submission of a completed report, on a form
  adopted by the comptroller, indicating the number or weight, as
  applicable, of beverage containers collected by a curbside
  recycling program that are covered under this chapter, the
  comptroller shall pay to the curbside recycling program an amount
  equal to the redemption value established by Section 376.051 or
  376.203, as applicable, plus a handling fee of:
               (1)  one-half of one cent for each beverage container
  collected by the curbside recycling program; or
               (2)  the per pound amount determined under Section
  376.203 for beverage containers redeemed in the manner described by
  that section.
         (b)  The comptroller shall reimburse a curbside recycling
  program under Subsection (a) not later than five working days after
  the comptroller receives the invoice submitted by the curbside
  recycling program.
         (c)  The comptroller by rule may adjust a handling fee to
  account for changes in market conditions. The comptroller may
  periodically conduct research to determine if an adjustment is
  necessary.
         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 comptroller, on a form
  approved by the comptroller, 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.
         SECTION 2.  Section 151.007(c), Tax Code, is amended to read
  as follows:
         (c)  "Sales price" or "receipts" does not include any of the
  following if separately identified to the customer by such means as
  an invoice, billing, sales slip or ticket, or contract:
               (1)  a cash discount allowed on the sale;
               (2)  the amount charged for tangible personal property
  returned by a customer if the total amount charged is refunded by
  cash or credit;
               (3)  a refund of the charges for the performance of a
  taxable service;
               (4)  finance, carrying and service charges, or interest
  from credit extended on sales of taxable items under a conditional
  sales contract or other contract providing for the deferred payment
  of the purchase price;
               (5)  the value of tangible personal property that:
                     (A)  is taken by a seller in trade as all or part
  of the consideration for a sale of a taxable item; and
                     (B)  is of a type of property sold by the seller in
  the regular course of business;
               (6)  the face value of United States coin or currency in
  a sale of that coin or currency in which the total consideration
  given by the purchaser exceeds the face value of the coin or
  currency; [or]
               (7)  a voluntary gratuity or a reasonable mandatory
  charge for the service of a meal or food products, including soft
  drinks and candy, for immediate human consumption when the service
  charge is separated from the sales price of the meal or food product
  and identified as a gratuity or tip and when the total amount of the
  service charge is disbursed by the employer to employees who
  customarily and regularly provide the service; or
               (8)  a beverage container redemption fee under Chapter
  376, Health and Safety Code.
         SECTION 3.  (a)  Not later than September 1, 2012, the
  comptroller of public accounts shall adopt the 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, 2013.
         SECTION 4.  This Act takes effect September 1, 2011.

 

Updated March 3, 2011