Texas 2013 bill text

SB 645

The following text was found at http://www.capitol.state.tx.us/Search/DocViewer.aspx?K2DocKey=odbc%3a%2f%2fTLO%2fTLO.dbo.vwCurrBillDocs%2f83%2fR%2fS%2fB%2f00645%2f1%2fB%40TloCurrBillDocs&QueryText=SB+645&HighlightType=
Companion House Bill at http://www.capitol.state.tx.us/Search/DocViewer.aspx?K2DocKey=odbc%3a%2f%2fTLO%2fTLO.dbo.vwCurrBillDocs%2f83%2fR%2fH%2fB%2f01473%2f1%2fB%40TloCurrBillDocs&QueryText=HB+1473&HighlightType=1

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.