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  80R4177 SGA-D
 
  By: Watson S.B. No. 1324
 
 
 
   
 
 
A BILL TO BE ENTITLED
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)  "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)  for whose account computer equipment
manufactured outside the United States is or was imported into the
United States, if at the time of importation the computer equipment
was not included for collection under the recovery plan of another
person.
             (4)  "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.
       (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 a
business.
       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 include, at no charge to the
consumer, 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)  Collection methods that 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 person who is a
retailer of computer equipment may not sell or offer to sell
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.
       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
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.
       (c)  Inclusion on the commission's Internet site under
Subsection (b) does not constitute a determination by the
commission that the manufacturer's recovery plan or practices are
in compliance with this subchapter or other law.
       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 take enforcement
action against any manufacturer, retailer, or person who recycles
or reuses computer equipment for failure to comply with this
subchapter.
       (c)  Notwithstanding Section 7.052, Water Code, a
manufacturer that does not label its new computer equipment or
adopt and implement a recovery plan as required by Section
361.955(a) may be assessed an administrative penalty, in addition
to any other penalty under this subchapter, of not more than $10,000
for the first violation and not more than $25,000 for each
subsequent violation.
       (d)  Except as provided by Subsection (c) and
notwithstanding Section 7.052, Water Code, a person who violates
this subchapter may be assessed an administrative penalty, in
addition to any other penalty under this subchapter, of not more
than $1,000 for the first violation and not more than $2,000 for
each subsequent violation.
       (e)  A penalty assessed under this section shall be paid to
the commission.
       (f)  A violation of a prohibition of this subchapter related
to sales may be enjoined in an action brought by the attorney
general on behalf of this state under Section 7.032, Water Code.
       (g)  Money collected under this section may be used only for
the administration of this subchapter.
       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 producers 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 or reuse the computer
equipment of other manufacturers, including collection events,
recycling grants, 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.  (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.
       SECTION 3.  This Act takes effect September 1, 2007.