H.B. No. 2714
 
 
 
 
AN ACT
  relating to a program for the recycling of computer equipment of
  consumers in this state; providing administrative penalties.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 361, Health and Safety Code, is amended
  by adding Subchapter Y to read as follows:
  SUBCHAPTER Y.  COMPUTER EQUIPMENT RECYCLING PROGRAM
         Sec. 361.951.  SHORT TITLE.  This subchapter may be cited as
  the Manufacturer Responsibility and Consumer Convenience Computer
  Equipment Collection and Recovery Act.
         Sec. 361.952.  DEFINITIONS.  In this subchapter:
               (1)  "Brand" means the name, symbol, logo, trademark,
  or other information that identifies a product rather than the
  components of the product.
               (2)  "Computer equipment" means a desktop or notebook
  computer and includes a computer monitor or other display device
  that does not contain a tuner.
               (3)  "Consumer" means an individual who uses computer
  equipment that is purchased primarily for personal or home business
  use.
               (4)  "Manufacturer" means a person:
                     (A)  who manufactures or manufactured computer
  equipment under a brand that:
                           (i)  the person owns or owned; or
                           (ii)  the person is or was licensed to use,
  other than under a license to manufacture computer equipment for
  delivery exclusively to or at the order of the licensor;
                     (B)  who sells or sold computer equipment
  manufactured by others under a brand that:
                           (i)  the person owns or owned; or
                           (ii)  the person is or was licensed to use,
  other than under a license to manufacture computer equipment for
  delivery exclusively to or at the order of the licensor;
                     (C)  who manufactures or manufactured computer
  equipment without affixing a brand;
                     (D)  who manufactures or manufactured computer
  equipment to which the person affixes or affixed a brand that:
                           (i)  the person does not or has not owned; or
                           (ii)  the person is not or was not licensed
  to use; or
                     (E)  who imports or imported computer equipment
  manufactured outside the United States into the United States
  unless at the time of importation the company or licensee that sells
  or sold the computer equipment to the importer has or had assets or
  a presence in the United States sufficient to be considered the
  manufacturer.
               (5)  "Television" means any telecommunication system
  device that can broadcast or receive moving pictures and sound over
  a distance and includes a television tuner or a display device
  peripheral to a computer that contains a television tuner.
         Sec. 361.953.  LEGISLATIVE FINDINGS AND PURPOSE.  
  (a)  Computers and related display devices are critical elements to
  the strength and growth of this state's economic prosperity and
  quality of life.  Many of those products can be refurbished and
  reused, and many contain valuable components that can be recycled.
         (b)  The purpose of this subchapter is to establish a
  comprehensive, convenient, and environmentally sound program for
  the collection, recycling, and reuse of computer equipment that has
  reached the end of its useful life.  The program is based on
  individual manufacturer responsibility and shared responsibility
  among consumers, retailers, and the government of this state.
         Sec. 361.954.  APPLICABILITY.  (a)  The collection,
  recycling, and reuse provisions of this subchapter apply to
  computer equipment used and returned to the manufacturer by a
  consumer in this state and do not impose any obligation on an owner
  or operator of a solid waste facility.
         (b)  This subchapter does not apply to:
               (1)  a television, any part of a motor vehicle, a
  personal digital assistant, or a telephone;
               (2)  a consumer's lease of computer equipment or a
  consumer's use of computer equipment under a lease agreement; or
               (3)  the sale or lease of computer equipment to an
  entity when the manufacturer and the entity enter into a contract
  that effectively addresses the collection, recycling, and reuse of
  computer equipment that has reached the end of its useful life.
         Sec. 361.955.  MANUFACTURER RESPONSIBILITIES.  (a)  Before
  a manufacturer may offer computer equipment for sale in this state,
  the manufacturer must:
               (1)  adopt and implement a recovery plan; and
               (2)  affix a permanent, readily visible label to the
  computer equipment with the manufacturer's brand.
         (b)  The recovery plan must enable a consumer to recycle
  computer equipment without paying a separate fee at the time of
  recycling and must include provisions for:
               (1)  the manufacturer's collection from a consumer of
  any computer equipment that has reached the end of its useful life
  and is labeled with the manufacturer's brand; and
               (2)  recycling or reuse of computer equipment collected
  under Subdivision (1).
         (c)  The collection of computer equipment provided under the
  recovery plan must be:
               (1)  reasonably convenient and available to consumers
  in this state; and
               (2)  designed to meet the collection needs of consumers
  in this state.
         (d)  Examples of collection methods that alone or combined
  meet the convenience requirements of this section include:
               (1)  a system by which the manufacturer or the
  manufacturer's designee offers the consumer a system for returning
  computer equipment by mail;
               (2)  a system using a physical collection site that the
  manufacturer or the manufacturer's designee keeps open and staffed
  and to which the consumer may return computer equipment; and
               (3)  a system using a collection event held by the
  manufacturer or the manufacturer's designee at which the consumer
  may return computer equipment.
         (e)  Collection services under this section may use existing
  collection and consolidation infrastructure for handling computer
  equipment and may include electronic recyclers and repair shops,
  recyclers of other commodities, reuse organizations,
  not-for-profit corporations, retailers, recyclers, and other
  suitable operations.
         (f)  The recovery plan must include information for the
  consumer on how and where to return the manufacturer's computer
  equipment.  The manufacturer:
               (1)  shall include collection, recycling, and reuse
  information on the manufacturer's publicly available Internet
  site;
               (2)  shall provide collection, recycling, and reuse
  information to the commission; and
               (3)  may include collection, recycling, and reuse
  information in the packaging for or in other materials that
  accompany the manufacturer's computer equipment when the equipment
  is sold.
         (g)  Information about collection, recycling, and reuse on a
  manufacturer's publicly available Internet site does not
  constitute a determination by the commission that the
  manufacturer's recovery plan or actual practices are in compliance
  with this subchapter or other law.
         (h)  Each manufacturer shall submit a report to the
  commission not later than January 31 of each year that includes:
               (1)  the weight of computer equipment collected,
  recycled, and reused during the preceding calendar year; and
               (2)  documentation verifying the collection,
  recycling, and reuse of that computer equipment in a manner that
  complies with Section 361.964 regarding sound environmental
  management.
         (i)  If more than one person is a manufacturer of a certain
  brand of computer equipment as defined by Section 361.952, any of
  those persons may assume responsibility for and satisfy the
  obligations of a manufacturer under this subchapter for that brand.  
  If none of those persons assumes responsibility or satisfies the
  obligations of a manufacturer for the computer equipment of that
  brand, the commission may consider any of those persons to be the
  responsible manufacturer for purposes of this subchapter.
         (j)  The obligations under this subchapter of a manufacturer
  who manufactures or manufactured computer equipment, or sells or
  sold computer equipment manufactured by others, under a brand that
  was previously used by a different person in the manufacture of the
  computer equipment extends to all computer equipment bearing that
  brand regardless of its date of manufacture.
         Sec. 361.956.  RETAILER RESPONSIBILITY.  (a)  A person who
  is a retailer of computer equipment may not sell or offer to sell
  new computer equipment in this state unless the equipment is
  labeled with the manufacturer's label and the manufacturer is
  included on the commission's list of manufacturers that have
  recovery plans.
         (b)  Retailers can go to the commission's Internet site as
  outlined in Section 361.958 and view all manufacturers that are
  listed as having registered a compliant collection program.  
  Covered electronic products from manufacturers on that list may be
  sold in or into the State of Texas.
         (c)  A retailer is not required to collect computer equipment
  for recycling or reuse under this subchapter.
         Sec. 361.957.  LIABILITY.  (a)  A manufacturer or retailer
  of computer equipment is not liable in any way for information in
  any form that a consumer leaves on computer equipment that is
  collected, recycled, or reused under this subchapter.
         (b)  This subchapter does not exempt a person from liability
  under other law.
         Sec. 361.958.  COMMISSION'S EDUCATION RESPONSIBILITIES.  
  (a)  The commission shall educate consumers regarding the
  collection, recycling, and reuse of computer equipment.
         (b)  The commission shall host or designate another person to
  host an Internet site providing consumers with information about
  the recycling and reuse of computer equipment, including best
  management practices and information about and links to information
  on:
               (1)  manufacturers' collection, recycling, and reuse
  programs, including manufacturers' recovery plans; and
               (2)  computer equipment collection events, collection
  sites, and community computer equipment recycling and reuse
  programs.
         Sec. 361.959.  ENFORCEMENT.  (a)  The commission may conduct
  audits and inspections to determine compliance with this
  subchapter.
         (b)  The commission and the attorney general, as
  appropriate, shall enforce this subchapter and, except as provided
  by Subsections (d) and (e), take enforcement action against any
  manufacturer, retailer, or person who recycles or reuses computer
  equipment for failure to comply with this subchapter.
         (c)  The attorney general may file suit under Section 7.032,
  Water Code, to enjoin an activity related to the sale of computer
  equipment in violation of this subchapter.
         (d)  The commission shall issue a warning notice to a person
  on the person's first violation of this subchapter. The person must
  comply with this subchapter not later than the 60th day after the
  date the warning notice is issued.
         (e)  A retailer who receives a warning notice from the
  commission that the retailer's inventory violates this subchapter
  because it includes computer equipment from a manufacturer that has
  not submitted the recovery plan required by Section 361.955 must
  bring the inventory into compliance with this subchapter not later
  than the 60th day after the date the warning notice is issued.
         Sec. 361.960.  FINANCIAL AND PROPRIETARY INFORMATION.  
  Financial or proprietary information submitted to the commission
  under this subchapter is exempt from public disclosure under
  Chapter 552, Government Code.
         Sec. 361.961.  ANNUAL REPORT TO LEGISLATURE.  The commission
  shall compile information from manufacturers and issue an
  electronic report to the committee in each house of the legislature
  having primary jurisdiction over environmental matters not later
  than March 1 of each year.
         Sec. 361.962.  FEES NOT AUTHORIZED.  This subchapter does
  not authorize the commission to impose a fee, including a recycling
  fee or registration fee, on a consumer, manufacturer, retailer, or
  person who recycles or reuses computer equipment.
         Sec. 361.963.  CONSUMER RESPONSIBILITIES.  (a)  A consumer
  is responsible for any information in any form left on the
  consumer's computer equipment that is collected, recycled, or
  reused.
         (b)  A consumer is encouraged to learn about recommended
  methods for recycling and reuse of computer equipment that has
  reached the end of its useful life by visiting the commission's and
  manufacturers' Internet sites.
         Sec. 361.964.  SOUND ENVIRONMENTAL MANAGEMENT.  (a)  All
  computer equipment collected under this subchapter must be recycled
  or reused in a manner that complies with federal, state, and local
  law.
         (b)  The commission shall adopt as standards for recycling or
  reuse of computer equipment in this state the standards provided by
  "Electronics Recycling Operating Practices" as approved by the
  board of directors of the Institute of Scrap Recycling Industries,
  Inc., April 25, 2006, or other standards from a comparable
  nationally recognized organization.
         Sec. 361.965.  STATE PROCUREMENT REQUIREMENTS.  (a)  In this
  section, "state agency" has the meaning assigned by Section
  2052.101, Government Code.
         (b)  A person who submits a bid for a contract with a state
  agency for the purchase or lease of computer equipment must be in
  compliance with this subchapter.
         (c)  A state agency that purchases or leases computer
  equipment shall require each prospective bidder to certify the
  bidder's compliance with this subchapter.  Failure to provide that
  certification renders the prospective bidder ineligible to
  participate in the bidding.
         (d)  In considering bids for a contract for computer
  equipment, in addition to any other preferences provided under
  other laws of this state, the state shall give special preference to
  a manufacturer that has a program to recycle the computer equipment
  of other manufacturers, including collection events and
  manufacturer initiatives to accept computer equipment labeled with
  another manufacturer's brand.
         (e)  The Texas Building and Procurement Commission and the
  Department of Information Resources shall adopt rules to implement
  this section.
         Sec. 361.966.  FEDERAL PREEMPTION; EXPIRATION. (a)  If
  federal law establishes a national program for the collection and
  recycling of computer equipment and the commission determines that
  the federal law substantially meets the purposes of this
  subchapter, the commission may adopt an agency statement that
  interprets the federal law as preemptive of this subchapter.
         (b)  This subchapter expires on the date the commission
  issues a statement under this section.
         SECTION 2.  Section 7.052, Water Code, is amended by adding
  Subsections (b-1) and (b-2) to read as follows:
         (b-1)  The amount of the penalty assessed against a
  manufacturer that does not label its computer equipment or adopt
  and implement a recovery plan as required by Section 361.955,
  Health and Safety Code, may not exceed $10,000 for the second
  violation or $25,000 for each subsequent violation. A penalty
  under this subsection is in addition to any other penalty that may
  be assessed for a violation of Subchapter Y, Chapter 361, Health and
  Safety Code.
         (b-2)  Except as provided by Subsection (b-1), the amount of
  the penalty for a violation of Subchapter Y, Chapter 361, Health and
  Safety Code, may not exceed $1,000 for the second violation or
  $2,000 for each subsequent violation.  A penalty under this
  subsection is in addition to any other penalty that may be assessed
  for a violation of Subchapter Y, Chapter 361, Health and Safety
  Code.
         SECTION 3.  Section 7.069, Water Code, is amended to read as
  follows:
         Sec. 7.069.  DISPOSITION OF PENALTY.  (a)  Except as
  provided by Subsection (b), a [A] penalty collected under this
  subchapter shall be deposited to the credit of the general revenue
  fund.
         (b)  A penalty collected under Section 7.052(b-1) or (b-2)
  shall be paid to the commission and deposited to the credit of the
  waste management account.
         SECTION 4.  (a)  The Texas Commission on Environmental
  Quality shall adopt any rules required to implement this Act not
  later than May 1, 2008.
         (b)  This Act may not be enforced before September 1, 2008.
         (c)  The reports required under Sections 361.955 and
  361.961, Health and Safety Code, as added by this Act, are not
  required to be prepared or submitted for the first time before the
  dates specified by those sections in 2010.
         (d)  Notwithstanding the 60-day limit under Section
  361.959(d) or (e), Health and Safety Code, as added by this Act, a
  retailer may sell any inventory accrued before the effective date
  of this Act without incurring a penalty.
         SECTION 5.  This Act takes effect September 1, 2007.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2714 was passed by the House on May 2,
  2007, by the following vote:  Yeas 147, Nays 0, 2 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 2714 on May 25, 2007, by the following vote:  Yeas 137, Nays 0,
  2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 2714 was passed by the Senate, with
  amendments, on May 22, 2007, by the following vote:  Yeas 30, Nays
  0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor