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A BILL TO BE ENTITLED
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AN ACT
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relating to beverage container deposits and recycling; providing |
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penalties. |
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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 376 to read as follows: |
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CHAPTER 376. TEXAS CONTAINER RECYCLING INITIATIVE |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 376.001. 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. The term |
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includes: |
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(A) beer; |
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(B) ale; |
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(C) malt liquor; |
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(D) other drinks produced by fermenting malt; |
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(E) spirits; |
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(F) wine; |
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(G) wine coolers; |
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(H) soda; |
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(I) water, including mineral water; |
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(J) carbonated water, including carbonated |
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mineral water; |
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(K) carbonated soft drinks; |
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(L) noncarbonated soft drinks and sport drinks; |
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(M) noncarbonated fruit drinks; |
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(N) energy drinks; |
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(O) coffee and tea drinks; and |
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(P) carbonated fruit drinks. |
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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. |
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(3) "Consumer" means a person who purchases a beverage |
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in a beverage container for the person's own use or consumption. |
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The term includes a lodging, eating, or drinking establishment if |
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beverages are generally consumed on the establishment's premises |
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and does not include a person who purchases the beverage from the |
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establishment for consumption on the premises. |
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(4) "Convenience redemption zone" means: |
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(A) the one-half-mile radius around a retail |
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dealer with at least $2 million in food-related sales each year who |
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is located in a municipality with a population of more than 50,000; |
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or |
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(B) the two-mile radius around a retail dealer |
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with at least $2 million in food-related sales each year who is not |
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located in a municipality described by Paragraph (A). |
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(5) "Distributor" means a person who distributes |
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beverages in beverage containers to retail dealers. |
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(6) "Infant formula" means any liquid food sold as an |
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alternative for human milk for the feeding of infants. |
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(7) "Medical food" means a food or beverage that is |
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formulated to be consumed or administered under the supervision of |
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a physician and that is intended for specific dietary management of |
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diseases or health conditions for which distinctive nutritional |
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requirements, based on recognized scientific principles, are |
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established by medical evaluation. The term also includes any |
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product that meets the definition of "medical food" under Section |
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5(b)(3), the Food, Drug, and Cosmetic Act (21 U.S.C. Section |
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360ee). |
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(8) "Redemption center" means an operation approved by |
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the commission to redeem beverage containers under this chapter and |
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includes a manned operation or a mechanical device that accepts |
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empty beverage containers and issues a cash refund or a redeemable |
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credit slip with a value not less than the container's refund value. |
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(9) "Refund" means a payment by a redemption center |
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under Section 376.201 to a person who presents a beverage container |
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at the redemption center. |
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(10) "Retail dealer" means a person who sells a |
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beverage in a beverage container to a consumer. |
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Sec. 376.002. ADMINISTRATION AND RULES. (a) The |
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comptroller shall establish and administer the Texas container |
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recycling initiative in accordance with this chapter. |
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(b) In administering the Texas container recycling |
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initiative, the comptroller shall: |
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(1) approve redemption centers under Section 376.152; |
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(2) enforce compliance with the provisions of this |
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chapter; |
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(3) administer the infrastructure improvement grant |
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program under Section 376.003; |
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(4) develop and implement a marketing plan to provide |
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information and educate consumers about the initiative; |
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(5) conduct any audit of the initiative the |
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comptroller determines is necessary; |
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(6) develop an operating budget for the initiative; |
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(7) ensure the solvency of the initiative's account; |
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(8) develop a system for reimbursement of deposits and |
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refunds and for distribution of handling fees; |
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(9) develop a system for monitoring the number of |
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containers sold by distributors and the number of containers |
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returned to redemption centers and curbside recycling centers; |
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(10) develop a system for covering the start-up costs |
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of the initiative as described by Section 376.105; |
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(11) administer the Texas container recycling |
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initiative account as provided by Section 376.104; and |
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(12) adopt rules and forms necessary to implement this |
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chapter. |
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Sec. 376.003. INFRASTRUCTURE IMPROVEMENT GRANT PROGRAM. |
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(a) The comptroller shall develop and administer a program to |
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provide grants from money in the Texas container recycling |
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initiative account to ensure sufficient infrastructure is |
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available to increase the state recycling rate by expanding |
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curbside recycling programs, municipal recycling facilities, and |
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independent redemption centers. |
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(b) The total amount of money available each year under the |
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grant program may not exceed five percent of the money available in |
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the account. |
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(c) The comptroller may adopt guidelines to allow a regional |
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planning commission, council of governments, or similar regional |
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planning agency created under Chapter 391, Local Government Code, |
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to apply for and receive a grant to improve the ability of the |
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program to achieve its goals. |
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(d) A recipient of a grant under this section must return |
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any unexpended grant money to the comptroller for redeposit into |
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the account. |
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(e) A project funded by a grant under this section must |
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promote cooperation between public and private entities and may not |
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be used to create a competitive advantage over a private industry |
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that provides recycling services. |
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(f) Not later than September 1 of each year, an entity |
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receiving a grant under this section must submit a report to the |
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comptroller detailing the use of the grant money. The comptroller |
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shall include this information in its report to the legislature |
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under 376.005. |
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(g) An application for a grant under this section must be |
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made on a form provided by the comptroller and must contain the |
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information required by the comptroller. |
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(h) This section expires when the state recycling rate |
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reaches 65 percent, as determined by the comptroller. |
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Sec. 376.004. CRIMINAL PENALTIES. A person commits an |
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offense if the person knowingly violates Section 376.051, 376.101, |
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376.102, or 376.201. An offense under this section is a Class C |
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misdemeanor. |
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Sec. 376.005. REPORT TO LEGISLATURE. Not later than |
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November 1 of each year, the comptroller shall submit a report to |
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the governor, lieutenant governor, speaker of the house of |
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representatives, and committee in each house of the legislature |
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that has primary jurisdiction over environmental matters about the |
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progress and success of the Texas container recycling initiative |
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established under this chapter. |
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[Sections 376.006-376.050 reserved for expansion] |
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SUBCHAPTER B. REFUND VALUE AND LABELING OF BEVERAGE CONTAINERS |
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Sec. 376.051. REFUND VALUE AND LABEL REQUIRED. (a) Except |
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as provided by Subsection (b), a person may not sell or offer for |
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sale in this state a beverage container unless the container: |
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(1) has: |
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(A) a fluid capacity of less than 24 ounces and a |
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refund value of five cents; or |
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(B) a fluid capacity of at least 24 ounces and a |
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refund value of 10 cents; and |
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(2) is labeled as required by Section 376.052. |
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(b) A person may sell or offer for sale a beverage container |
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that does not have a refund value if: |
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(1) the container has a fluid capacity of more than one |
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gallon; or |
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(2) the container contains: |
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(A) a beverage that consists of milk or of 100 |
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percent fruit or vegetable juice; or |
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(B) medical food or infant formula. |
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Sec. 376.052. LABELING. (a) A beverage container required |
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to have a refund value under Section 376.051 that is offered for |
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sale in this state must have legibly stamped, labeled, or embossed |
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on the container: |
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(1) the refund value of the container; |
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(2) the name "Texas" or the abbreviation "TX"; and |
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(3) other language as required by the commission. |
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(b) Any beverage container intended for sale in this state |
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must be printed, embossed, stamped, labeled, or otherwise marked |
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with a universal product code or similar machine-readable indicia. |
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[Sections 376.053-376.100 reserved for expansion] |
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SUBCHAPTER C. COLLECTION OF DEPOSIT |
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Sec. 376.101. COLLECTION OF DEPOSIT BY DISTRIBUTOR AND |
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RETAIL DEALER. (a) A distributor shall collect a deposit of 5 or 10 |
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cents, as established by Section 376.051, from a retail dealer for |
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each beverage container that the distributor sells to the retail |
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dealer. |
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(b) A retail dealer shall collect a deposit of 5 or 10 cents, |
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as established by Section 376.051, from a consumer for each |
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beverage container that the retail dealer sells to the consumer. |
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(c) The invoice for a beverage container sold by a retail |
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dealer to a consumer must list the beverage container deposit as a |
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separate line item. The deposit may not be included in the sales |
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tax calculation. |
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Sec. 376.102. REMITTANCE OF DEPOSITS BY DISTRIBUTOR. Not |
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later than the fifth day of each month, a distributor shall remit to |
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the comptroller the deposits collected by the distributor under |
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Section 376.101 during the preceding month. |
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Sec. 376.103. MONTHLY REPORT. (a) Not later than the fifth |
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day of each month, a distributor who collects a deposit under |
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Section 376.101 shall report to the comptroller, on a form approved |
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by the comptroller: |
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(1) the total amount of deposits collected during the |
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preceding month; and |
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(2) the number of beverage containers sold during the |
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preceding month separated by deposit amount and material of |
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container. |
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(b) The comptroller may require a distributor to include in |
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the report required by Subsection (a) other information the |
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comptroller considers necessary. |
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(c) The information contained in the report required by this |
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section is confidential and may not be disclosed by the comptroller |
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or an officer or employee of the comptroller. |
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Sec. 376.104. TEXAS CONTAINER RECYCLING INITIATIVE |
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ACCOUNT. (a) Deposits collected under this chapter shall be |
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deposited to the credit of the Texas container recycling initiative |
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account in the general revenue fund. Money in the account may be |
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appropriated only for: |
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(1) reimbursements and handling fees paid to |
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redemption centers or curbside recycling programs, as applicable; |
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(2) administration of this chapter; |
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(3) providing information and educating consumers |
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about the Texas container recycling initiative; |
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(4) reimbursing a distributor under Section 376.105; |
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and |
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(5) the purposes authorized under Section 376.003. |
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(b) At the end of each state fiscal biennium, any money in |
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the account that is unencumbered must be distributed as follows: |
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(1) 15 percent must be retained in the account for |
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unforeseen costs associated with a higher than expected recycling |
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rate; and |
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(2) 85 percent must be transferred to the undedicated |
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portion of the general revenue fund. |
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Sec. 376.105. FINANCING START-UP COSTS. (a) The |
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comptroller may apply for, accept, receive, and administer gifts, |
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grants, loans, and other funds available from any source for the |
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purposes of this chapter. |
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(b) The comptroller may charge distributors an initial fee |
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in an amount necessary to cover the start-up costs of the Texas |
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container recycling initiative. The comptroller shall reimburse |
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the distributors as sufficient money becomes available. |
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(c) The comptroller shall deposit revenue collected under |
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this section to the credit of the Texas container recycling |
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initiative account in the general revenue fund. |
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[Sections 376.106-376.150 reserved for expansion] |
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SUBCHAPTER D. REDEMPTION CENTERS AND CONVENIENCE REDEMPTION ZONES |
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Sec. 376.151. CONVENIENCE REDEMPTION ZONES. (a) A retail |
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dealer may not sell a beverage in a beverage container eligible for |
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redemption under this chapter to a consumer if there is not a |
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redemption center within the retail dealer's convenience |
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redemption zone. |
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(b) On petition by a retail dealer, the comptroller may |
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exempt the dealer from the requirements of this section if the |
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comptroller determines that extenuating circumstances support the |
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exemption. |
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(c) A redemption center within a convenience redemption |
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zone may be owned and operated by a retail dealer, local government, |
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or independent entity. |
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(d) A retail dealer who owns and operates a redemption |
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center shall register with the comptroller in the manner described |
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by Section 376.152. |
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Sec. 376.152. REDEMPTION CENTERS. (a) To facilitate the |
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return of empty beverage containers, a retail dealer, local |
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government, or independent entity may establish a redemption center |
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at which empty containers may be returned for their refund value. |
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(b) The retail dealer, local government, or independent |
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entity must file an application for approval of a redemption center |
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with the comptroller. The application must state: |
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(1) the name, mailing address, telephone number, |
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electronic mail address, and title of the person responsible for |
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the establishment and operation of the redemption center; |
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(2) the physical address of the redemption center; |
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(3) the name and address of each retail dealer in whose |
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convenience redemption zone the redemption center is located; |
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(4) the applicant's federal tax identification number, |
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if applicable; and |
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(5) any additional information the comptroller by rule |
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requires as necessary or convenient for the implementation of this |
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section. |
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(c) The comptroller by order shall approve a redemption |
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center if it finds the redemption center will provide a convenient |
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service to persons for the return of empty beverage containers. The |
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comptroller may include in the order other provisions that the |
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comptroller determines are necessary to ensure that the redemption |
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center will provide a convenient service to the public. |
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(d) The comptroller at any time may review its approval of a |
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redemption center. After written notice to the person responsible |
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for the establishment and operation of the redemption center and to |
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each retail dealer in whose convenience redemption zone the |
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redemption center is located, the comptroller may, after a hearing, |
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withdraw approval of a redemption center if the comptroller finds |
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the redemption center has violated the order approving the |
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redemption center. |
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(e) The comptroller by rule shall establish the required |
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hours of operation for a redemption center. |
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(f) The comptroller may not limit the number of redemption |
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centers within a convenience redemption zone. |
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[Sections 376.153-376.200 reserved for expansion] |
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SUBCHAPTER E. BEVERAGE CONTAINER REDEMPTION |
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Sec. 376.201. USED BEVERAGE CONTAINER REDEMPTION. Except |
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as provided by Sections 376.202 and 376.203, a redemption center |
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shall accept a used beverage container that has a refund value as |
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established by Section 376.051 and shall pay the refund value of the |
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container in cash to the person presenting the container if the |
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container is stamped, labeled, or embossed with the refund value |
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and the name "Texas" or the abbreviation "TX." |
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Sec. 376.202. REFUSAL PERMITTED. A redemption center may |
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refuse to accept for refund: |
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(1) a glass bottle that is broken to the extent that it |
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would present a safety hazard when handled; or |
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(2) a used beverage container that contains part of |
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its original contents or other foreign matter to the extent that it |
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could present health or sanitation problems. |
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Sec. 376.203. REDEMPTION BY WEIGHT. (a) The comptroller by |
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rule shall establish: |
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(1) a procedure for providing a reimbursement based on |
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the weight of the beverage containers presented to be used in |
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circumstances in which the number of containers is so large that |
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counting the containers individually would be burdensome on a |
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redemption center or curbside recycling program; |
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(2) a per pound redemption value for containers |
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composed of each material covered by this chapter that are redeemed |
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in the manner described by Subdivision (1); |
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(3) a per pound redemption value for unsorted |
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containers composed of any material covered by this chapter that |
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are collected as part of a single-stream recycling program and |
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redeemed in the manner described by Subdivision (1); |
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(4) a per pound handling fee to be paid to redemption |
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centers and curbside recycling programs for containers redeemed in |
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the manner described by Subdivision (1); and |
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(5) procedures for regulating the accuracy of scales |
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used to weigh containers under this section. |
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(b) Not more than every six months the comptroller by rule |
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may adjust the per pound rates described by Subsection (a). |
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Sec. 376.204. DISPOSAL OF BEVERAGE CONTAINERS BY REDEMPTION |
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CENTER AND CURBSIDE RECYCLING PROGRAM. A redemption center or |
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curbside recycling program shall dispose of the returned used |
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beverage containers by: |
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(1) selling the material generated by the crushed or |
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shredded used beverage containers to a processor or other end user; |
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or |
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(2) recycling the material in another manner |
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prescribed by the comptroller. |
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Sec. 376.205. REIMBURSEMENT OF REDEMPTION CENTERS BY |
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COMPTROLLER; HANDLING FEE. (a) On submission of a completed |
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invoice of refunds paid by a redemption center on a form adopted by |
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the comptroller, the comptroller shall pay to the redemption center |
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an amount equal to the redemption value established by Section |
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376.051 or 376.203, as applicable, plus a handling fee of: |
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(1) one and one-half cents for each beverage container |
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redeemed by the redemption center under Section 376.201; or |
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(2) the per pound amount determined under Section |
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376.203 for beverage containers redeemed in the manner described by |
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that section. |
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(b) The comptroller shall reimburse a redemption center |
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under Subsection (a) not later than five working days after the |
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comptroller receives the invoice submitted by the redemption |
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center. |
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(c) The comptroller by rule may adjust a handling fee to |
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account for changes in market conditions. The comptroller may |
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periodically conduct research to determine if an adjustment is |
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necessary. |
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Sec. 376.206. REIMBURSEMENT OF CURBSIDE RECYCLING PROGRAM |
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BY COMPTROLLER. (a) On submission of a completed report, on a form |
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adopted by the comptroller, indicating the number or weight, as |
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applicable, of beverage containers collected by a curbside |
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recycling program that are covered under this chapter, the |
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comptroller shall pay to the curbside recycling program an amount |
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equal to the redemption value established by Section 376.051 or |
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376.203, as applicable, plus a handling fee of: |
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(1) one-half of one cent for each beverage container |
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collected by the curbside recycling program; or |
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(2) the per pound amount determined under Section |
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376.203 for beverage containers redeemed in the manner described by |
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that section. |
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(b) The comptroller shall reimburse a curbside recycling |
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program under Subsection (a) not later than five working days after |
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the comptroller receives the invoice submitted by the curbside |
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recycling program. |
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(c) The comptroller by rule may adjust a handling fee to |
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account for changes in market conditions. The comptroller may |
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periodically conduct research to determine if an adjustment is |
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necessary. |
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Sec. 376.207. REPORTING REQUIREMENTS. Each redemption |
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center and curbside recycling program shall submit a report with |
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the submission of the completed invoice required under Sections |
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376.205 and 376.206, respectively, to the comptroller, on a form |
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approved by the comptroller, that provides: |
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(1) the redemption value of beverage containers |
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collected by the redemption center or curbside recycling program; |
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(2) the number or weight of beverage containers |
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collected by the center or curbside recycling program; and |
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(3) an invoice or other documentation that provides |
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proof that the collected recycled material was recycled in a manner |
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described under Section 376.204. |
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SECTION 2. Section 151.007(c), Tax Code, is amended to read |
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as follows: |
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(c) "Sales price" or "receipts" does not include any of the |
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following if separately identified to the customer by such means as |
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an invoice, billing, sales slip or ticket, or contract: |
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(1) a cash discount allowed on the sale; |
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(2) the amount charged for tangible personal property |
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returned by a customer if the total amount charged is refunded by |
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cash or credit; |
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(3) a refund of the charges for the performance of a |
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taxable service; |
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(4) finance, carrying and service charges, or interest |
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from credit extended on sales of taxable items under a conditional |
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sales contract or other contract providing for the deferred payment |
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of the purchase price; |
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(5) the value of tangible personal property that: |
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(A) is taken by a seller in trade as all or part |
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of the consideration for a sale of a taxable item; and |
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(B) is of a type of property sold by the seller in |
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the regular course of business; |
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(6) the face value of United States coin or currency in |
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a sale of that coin or currency in which the total consideration |
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given by the purchaser exceeds the face value of the coin or |
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currency; [or] |
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(7) a voluntary gratuity or a reasonable mandatory |
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charge for the service of a meal or food products, including soft |
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drinks and candy, for immediate human consumption when the service |
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charge is separated from the sales price of the meal or food product |
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and identified as a gratuity or tip and when the total amount of the |
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service charge is disbursed by the employer to employees who |
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customarily and regularly provide the service; or |
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(8) a beverage container redemption fee under Chapter |
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376, Health and Safety Code. |
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SECTION 3. (a) Not later than September 1, 2012, the |
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comptroller of public accounts shall adopt the rules necessary to |
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implement Chapter 376, Health and Safety Code, as added by this Act. |
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(b) The requirements of and penalties imposed by Chapter |
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376, Health and Safety Code, as added by this Act, do not apply to |
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any person before January 1, 2013. |
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SECTION 4. This Act takes effect September 1, 2011. |