81R1491 KJM-F
 
  By: Hegar S.B. No. 2326
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the sale, recovery, and recycling of certain television
  equipment; 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 Z to read as follows:
  SUBCHAPTER Z. TELEVISION EQUIPMENT RECYCLING PROGRAM
         Sec. 361.971.  DEFINITIONS. In this subchapter:
               (1)  "Brand" has the meaning assigned by Section
  361.952.
               (2)  "Consumer" means an individual who uses covered
  television equipment that is purchased primarily for personal or
  home business use.
               (3)  "Covered television equipment" means a direct view
  or projection television with a viewable screen of nine inches or
  larger whose display technology is based on cathode ray tube,
  plasma, liquid crystal, digital light processing, liquid crystal on
  silicon, silicon crystal reflective display, light emitting diode,
  or similar technology marketed and intended for consumers.
               (4)  "Market share allocation" means the quantity of
  covered television equipment, by weight, that an individual
  manufacturer is responsible for collecting, transporting, and
  recycling, as computed by the commission under Section 361.980(f).
               (5)  "Recycling" means any process by which equipment
  that would otherwise become solid waste or hazardous waste is
  collected, separated, and refurbished for reuse or processed to be
  returned to use in the form of raw material or products.  The term
  does not include incineration.
               (6)  "Retailer" means a person who owns or operates a
  business that sells new covered television equipment by any means
  directly to a consumer.
               (7)  "Television" means an electronic device that
  contains a tuner that locks onto a selected carrier frequency and is
  capable of receiving and displaying video programming from a
  broadcast, cable, or satellite source.
               (8)  "Television manufacturer" means a person that:
                     (A)  manufactures covered television equipment
  under a brand the person owns or is licensed to use;
                     (B)  manufactures covered television equipment
  without affixing a brand;
                     (C)  resells covered television equipment
  produced by other suppliers under a brand the person owns or is
  licensed to use;
                     (D)  imports covered television equipment into
  the United States for sale, except that if a company from which an
  importer purchases the equipment has a presence or assets in the
  United States, that company is considered to be the manufacturer of
  the television equipment;
                     (E)  manufactures covered television equipment,
  supplies it to any person within a distribution network that
  includes a wholesaler or retailer, and benefits from the sale of the
  covered television equipment through that distribution network; or
                     (F)  assumes the responsibilities of a television
  manufacturer under this subchapter.
         Sec. 361.972.  APPLICABILITY. (a) Except as provided by
  this section and Section 361.986, this subchapter applies only to
  covered television equipment that is:
               (1)  offered for sale or sold to a consumer in this
  state; or
               (2)  used by a consumer in this state and returned for
  recycling.
         (b)  This subchapter does not impose an obligation on an
  owner or operator of a solid waste facility.
         (c)  This subchapter does not apply to:
               (1)  computer equipment as that term is defined by
  Section 361.952;
               (2)  any part of a motor vehicle, including a
  replacement part;
               (3)  a device that is functionally or physically part
  of or connected to another system or piece of equipment:
                     (A)  designed and intended for use in an
  industrial, governmental, commercial, research and development, or
  medical setting, including diagnostic monitoring or control
  equipment; or
                     (B)  used for security, sensing, monitoring,
  antiterrorism, or emergency services purposes;
               (4)  a device that is contained in exercise equipment
  intended for home use or an appliance intended for home use
  including a clothes washer, clothes dryer, refrigerator,
  refrigerator and freezer, microwave oven, conventional oven or
  range, dishwasher, room air conditioner, dehumidifier, and air
  purifier;
               (5)  a telephone of any type;
               (6)  a personal digital assistant;
               (7)  a global positioning system;
               (8)  a consumer's lease of covered television equipment
  or a consumer's use of covered television equipment under a lease
  agreement; or
               (9)  the sale or lease of covered television equipment
  to an entity when the television manufacturer and the entity enter
  into a contract that effectively addresses the recycling of
  equipment that has reached the end of its useful life.
         Sec. 361.973.  SALES PROHIBITION.  A person may not offer for
  sale in this state new covered television equipment unless the
  equipment has been labeled in compliance with Section 361.974.
         Sec. 361.974.  MANUFACTURER'S LABELING REQUIREMENT.  A
  television manufacturer may sell or offer for sale in this state
  only covered television equipment that is labeled with the
  television manufacturer's brand.  The label must be permanently
  affixed and readily visible.
         Sec. 361.975.  MANUFACTURERS' REGISTRATION AND REPORTING.
  (a)  A manufacturer of covered television equipment shall register
  with the commission and pay a registration fee of $2,500.  A
  registered television manufacturer shall renew the registration
  and pay the fee on or before January 31 of each year.  The
  registration or registration renewal must include:
               (1)  a list of all brands the television manufacturer
  uses in this state on covered television equipment regardless of
  whether the television manufacturer owns or is licensed to use the
  brand; and
               (2)  contact information for the person the commission
  may contact regarding the television manufacturer's activities to
  comply with this subchapter.
         (b)  Not later than January 31 of each year, each registered
  television manufacturer of covered television equipment shall
  report to the commission:
               (1)  the total weight of covered television equipment
  for which the television manufacturer is responsible that was sold
  in this state during the preceding calendar year or, if the
  manufacturer does not track the weight of covered television
  equipment it sells by state, the television manufacturer may report
  the total amount of covered television equipment the television
  manufacturer sold nationally in the preceding calendar year; and
               (2)  the total weight of covered television equipment
  the manufacturer collected and recycled in this state during the
  preceding calendar year.
         Sec. 361.976.  MANUFACTURER'S RECOVERY PLAN AND RELATED
  RESPONSIBILITIES. (a) Each television manufacturer of covered
  television equipment sold in this state shall, individually or as a
  member of a group of television manufacturers, submit to the
  commission a recovery plan to collect, transport, and recycle
  covered television equipment.
         (b)  An individual television manufacturer that submits a
  recovery plan under Subsection (a) shall collect, transport, and
  recycle covered television equipment.  Beginning with the
  television manufacturer's second year of registration, the
  individual television manufacturer shall collect, transport, and
  recycle the quantity of covered television equipment computed by
  the commission as the manufacturer's market share allocation.
         (c)  A group of television manufacturers that submits a
  recovery plan under Subsection (a) shall collect, transport, and
  recycle covered television equipment.  Beginning the second year of
  registration for a group of television manufacturers, the group of
  television manufacturers shall collect, transport, and recycle a
  quantity of covered television equipment equal to the sum of the
  combined market share allocations of the group's participants.
         (d)  A recovery plan under Subsection (a) must include at a
  minimum:
               (1)  a statement of whether the television manufacturer
  intends to collect and recycle its market share allocation through
  operation of its program, individually or in partnership with other
  television manufacturers; and
               (2)  beginning with the television manufacturer's 
  second year of registration, the total weight of covered television
  equipment collected, transported, and recycled by or on behalf of
  the television manufacturer during the preceding year.
         (e)  The commission shall review the recovery plan for
  satisfaction of the requirements of this subchapter.  If the
  registration and recovery plan are complete, the commission shall
  include the television manufacturer on the commission's Internet
  website listing as provided by Section 361.980(a). The commission
  may reject the recovery plan if it does not meet all requirements of
  this subchapter.
         Sec. 361.977.  RETAILER RESPONSIBILITY.  (a)  A retailer may
  sell only products from a television manufacturer that is included
  on the list published under Section 361.980(a) that identifies
  manufacturers whose recovery plans have been approved by the
  commission. A retailer shall consult that list before selling
  covered television equipment in this state.  A retailer is
  considered to have complied with this subsection if, on the date the
  product was ordered from the manufacturer, the manufacturer was
  listed on the Internet website described by Section 361.980(a) as
  having an approved recovery plan.
         (b)  This chapter does not require a retailer to collect
  covered television equipment for recycling or reuse.
         Sec. 361.978.  RECYCLER RESPONSIBILITIES. (a)  A person who
  is engaged in the business of recycling covered television
  equipment in this state shall:
               (1)  register with the commission and certify that the
  person is in compliance with the standards adopted under Section
  361.985;
               (2)  on or before January 31 of each year renew the
  registration with the commission and certify the person's continued
  compliance with the standards adopted under Section 361.985;
               (3)  recycle all covered television equipment accepted
  for recycling in accordance with the standards adopted under
  Section 361.985;
               (4)  maintain a written log recording the weight of all
  covered television equipment received by the person and the
  disposition of that equipment;
               (5)  obtain and retain documentation in accordance with
  commission rules that covered television equipment received for
  recycling was last used by a consumer in this state; and
               (6)  annually report to the commission the total weight
  of covered television equipment received and recycled by the person
  in the preceding 12 months.
         (b)  The commission may impose a fee for registration under
  this section in an amount necessary to recover the costs of
  registrations under this section.
         Sec. 361.979.  LIABILITY. (a)  A television manufacturer,
  retailer, or person who recycles covered television equipment is
  not liable in any way for information in any form that a consumer
  leaves on covered television equipment that is collected, recycled,
  or reused under this subchapter.
         (b)  This subchapter does not exempt a person from liability
  under other law.
         Sec. 361.980.  COMMISSION RESPONSIBILITIES.  (a)  The
  commission shall publish on a publicly accessible Internet website:
               (1)  a list of television manufacturers who have
  registered with the commission; and
               (2)  a list of television manufacturers who are in full
  compliance with this subchapter.
         (b)  The commission shall educate consumers regarding the
  collection, recycling, and reuse of covered television equipment.
         (c)  The commission shall host or designate another person to
  host an Internet website providing consumers with information about
  the recycling and reuse of covered television equipment, including
  best management practices and information about or links to
  information about:
               (1)  television manufacturers' collection, recycling,
  and reuse programs, including television manufacturers' recovery
  plans; and
               (2)  covered television equipment collection events,
  collection sites, and community television equipment recycling and
  reuse programs.
         (d)  Information about collection, recycling, and reuse on a
  television manufacturer's publicly available Internet website 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.
         (e)  Not later than February 15 of each year, the commission
  shall establish the state recycling rate by computing the ratio of
  the weight of total returns of covered television equipment in this
  state to the total weight of covered television equipment sold in
  this state during the preceding year.
         (f)  Not later than March 1 of each year, the commission
  shall compute and provide to each registered television
  manufacturer the manufacturer's market share allocation for
  collection, recycling, and transportation for that year.  A
  television manufacturer's market share allocation equals the
  weight of the television manufacturer's covered television
  equipment sold in this state during the preceding calendar year
  multiplied by the state recycling rate determined under Subsection
  (e).
         Sec. 361.981.  ENFORCEMENT. (a)  The commission may conduct
  audits and inspections to ensure compliance with this subchapter
  and rules adopted under 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 a
  television manufacturer, a retailer, or a person who recycles or
  reuses covered television equipment.
         (c)  The executive director or the attorney general may
  institute a suit under Section 7.032, Water Code, to enjoin an
  activity related to the sale of covered television 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 covered television equipment from a television
  manufacturer that is not in compliance with this subchapter must
  bring the inventory into compliance with this subchapter not later
  than the 60th day after the date the warning notice is issued.
         Sec. 361.982.  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. 361.983.  FEES.  (a)  Except as provided by Sections
  361.975(a) and 361.978, this subchapter does not authorize the
  commission to impose a fee, including a recycling fee, on a
  consumer, television manufacturer, retailer, or person who
  recycles or reuses covered television equipment.
         (b)  Fees or costs collected under this subchapter may be
  used by the commission only to implement this subchapter.
         Sec. 361.984.  CONSUMER RESPONSIBILITIES. (a)  A consumer
  is responsible for any information in any form left on the
  consumer's covered television equipment that is collected,
  recycled, or reused.
         (b)  A consumer is encouraged to learn about recommended
  methods for recycling and reuse of covered television equipment
  that has reached the end of its useful life by visiting the
  commission's and television manufacturers' Internet websites.
         Sec. 361.985.  MANAGEMENT OF COLLECTED TELEVISION
  EQUIPMENT. (a)  Covered television equipment collected under this
  subchapter must be disposed of, 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 covered television 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. 361.986.  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 covered television equipment
  must be in compliance with this subchapter.
         (c)  A state agency that purchases or leases covered
  television equipment shall require a prospective bidder to certify
  the bidder's compliance with this subchapter before the agency may
  accept the prospective bidder's bid.
         (d)  In considering bids for a contract for covered
  television equipment, in addition to any other preferences provided
  under other laws of this state, the state shall give special
  preference to a television manufacturer that has a program to
  recycle the covered television equipment of other television
  manufacturers, including collection events and television
  manufacturer initiatives to accept covered television equipment
  labeled with another manufacturer's brand.
         (e)  The comptroller shall adopt rules to implement this
  section.
         Sec. 361.987.  FEDERAL PREEMPTION; EXPIRATION. (a)  If
  federal law establishes a national program for the collection and
  recycling of covered television 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.  Sections 7.052(b-1) and (b-2), Water Code, are
  amended to read as follows:
         (b-1)  The amount of the penalty assessed against a
  manufacturer that does not label its computer equipment or covered
  television equipment or adopt and implement a recovery plan as
  required by Section 361.955 or 361.976, Health and Safety Code, as
  applicable, 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 or Z, 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 or Z, 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 or Z, Chapter 361, Health
  and Safety Code.
         SECTION 3.  (a)  The Texas Commission on Environmental
  Quality shall adopt any rules required to implement this Act not
  later than May 1, 2010.
         (b)  This Act may not be enforced before September 1, 2010.
         (c)  A report required under Section 361.975, Health and
  Safety Code, as added by this Act, is not required to be prepared or
  submitted for the first time before the date specified by that
  section in 2012.
         (d)  Notwithstanding Section 361.981, Health and Safety
  Code, as added by this Act, a retailer of television equipment may
  sell television equipment inventory that the retailer acquired
  before the effective date of this Act without incurring a penalty.
         SECTION 4.  This Act takes effect September 1, 2009.