BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF [STATE]:

WHEREAS public health, wildlife and wildlands, and freedom for recreation and enjoyment of public spaces are all degraded by the presence of litter and trash.

WHEREAS conservation of materials are critical to continued consumer product safety and national security.

WHEREAS protection of domestic manufacturing from hostile foreign governments and the need to build resilience in domestic supply chains.

CHAPTER [x].  BEVERAGE CONTAINER RECYCLING REFUND PROGRAM

SUBCHAPTER A.  GENERAL PROVISIONS

Sec. [x].001.  DEFINITIONS.  In this chapter:

(1) “Beverage” means an alcoholic, nonalcoholic, carbonated, or noncarbonated drink packaged and prepared in liquid, ready-to-drink form and intended for human consumption.

(2) “Beverage container” means a glass, metal, or plastic vessel that is hermetically sealed or capped and that contains a beverage at the time it is sold or offered for sale.  The term does not include a container that:

(A) has a fluid capacity of more than one gallon;

(B) contains milk, dairy alternatives, dairy product or plant-based drink;

(C) contains infant formula, including any liquid food sold as an alternative for human milk for the feeding of infants; or

(D) contains medical food, including:

(i) a liquid food that is formulated to be consumed or administered under the supervision of a physician and that is intended for specific dietary management of diseases or health conditions for which distinctive nutritional requirements, based on recognized scientific principles, are established by medical evaluation; and

(ii) a product that meets the definition of a medical food under Section 5(b) of the Orphan Drug Act (21 U.S.C. Section 360ee(b)).

(3) “Commission” means the [STATE REGULATORY BODY IN CHARGE OF ENVIRONMENT].

(4) “Consumer” means a person who purchases at retail a beverage in a beverage container. The term includes home and office delivery; a lodging, eating, or drinking establishment if beverages are generally not consumed on the establishment’s premises.  The term does not include a person who purchases a beverage from a lodging, eating, or drinking establishment for consumption on the establishment’s premises.

(5) “De minimus” means a Producer that sells less than 1 million beverages per year in the State.

(6) “PRO” means the [INSERT STATE] Producer Responsibility Organization established under this chapter.

(7) “Producer” means a person responsible for compliance with requirements under this act:

(a) for beverages sold in a beverage container at a physical retail location in this state:

(i) if the beverage is sold in a beverage container under the brand of the beverage manufacturer or is sold in a beverage container that lacks identification of a brand, the producer is the person that manufactures the beverage;

(ii) if there is no person to which item (i) applies, the producer is the person that is licensed to manufacture and sell or offer for sale to consumers in this state a beverage in a beverage container under the brand or trademark of another manufacturer or person;

(iii) if there is no person to which item (i) or (ii) applies, the producer is the brand owner of the beverage;

(iv) if there is no person described in item (i), (ii), or (iii) within the United States, the producer is the person who is the importer of record for the beverage into the United States for use in a commercial enterprise that sells, offers for sale, or distributes the beverage in this state; or

(v) if there is no person described in items (i) to (iv), the producer is the person that first distributes the beverage in or into this state;

(b) for beverages sold or distributed in a beverage container in or into this state via e-commerce, remote sale, or distribution the producer of the packaging is the same as the producer identified under clause (1);

(c) “Producer” does not include:

(i) a state, a federal or state agency, a political subdivision, or other governmental unit;

(ii) a registered 501(c)(3) charitable organization or 501(c)(4) social welfare organization; or

(iii) a de minimis producer.

(8) “Redemption center” means a manned or unmanned operation approved by the PRO under this chapter that redeems returned empty beverage containers by collecting beverage containers from persons who deliver to the operation beverage containers and issuing to a person delivering beverage containers a refund for each with a value not less than the beverage container’s refund value.

(9) “Refund” means a payment by a redemption center under Section [x].101 to a person or entity who presents a beverage container at the redemption center.

(10) “Refund program” means the beverage container recycling program established under this chapter.

(11) “Retail” means an establishment or physical location that sells beverage containers, including vending machines.

Sec. [x].002.  RULES.  The Commission may adopt rules to administer this chapter.  The Commission may consult the PRO in developing rules to administer this chapter.

SUBCHAPTER B. BEVERAGE CONTAINER RECYCLING PRO

Sec. [x].003.  PRO REQUIREMENTS

(a) Producers shall form, and a producer shall participate in, the Beverage Container Recycling PRO.  The PRO must be a nonprofit corporation under Chapter 22, Business Organizations Code, that is formed for the purpose of creating and implementing a plan to meet and maintain at least an biennial average recycling rate of no less than 75% for beverage containers by January 1, 2035.

(b) The PRO may sue a Producer that has not joined the PRO in an appropriate court to require compliance with the duty to join the PRO. The PRO may recover court costs and attorney’s fees if it prevails in a suit brought under this subsection.

(c) The PRO shall establish labeling standards for beverage containers covered under this chapter to inform the consumer of the refund amount provided on return.

(d) The PRO shall establish quality standards for beverage containers accepted for refund.

(e) The PRO shall collect and provide information necessary to enable the Commission to determine an annual recycling rate for beverage containers collected through redemption centers, curbside recycling programs and other means.

Sec. [x].004.  RECYCLING REFUND TRUST FUND.  The PRO shall establish and maintain a system to collect and refund the full amount of a consumer deposit. All collected consumer funds shall be deposited to the credit of a recycling refund trust fund maintained by the PRO in a depository chosen by the PRO.  Money in the trust fund may be allocated and expended only for:

(1) siting and permitting, construction, operation, transportation of material, leasing agreements and liability insurance and maintenance of redemption centers and technology-based redemption centers, including reverse vending machines and bag-drop receptacles, that provide convenient cost-effective methods of paying refunds;

(2) making refund payments to persons or entities, including curbside recycling programs, who return a beverage container to a redemption center or through other means as determined by the PRO, that meets quality standards determined by the PRO;

(3) reimbursing a local government entity or independent entity operating a redemption center, as authorized by the PRO, for refunds paid to persons or entities, including curbside recycling programs, returning beverage containers that meet quality standards determined by the PRO;

(4) reimbursing a governmental or other entity that provides beverages without charging a fee to the public during disaster declaration for any deposit paid on donated beverages;

(5) providing information to and educating consumers about the refund program;

(6) reimburse the comptroller and the commission for costs incurred through audit, oversight, or compliance processes; and

(7) administration and management of the PRO.

Sec. [x].005.  COMPTROLLER OVERSIGHT; RESERVES.  The comptroller may:

(1) require the PRO to provide financial information;

(2) conduct financial audits of the refund program; and

(3) require the PRO to maintain reserves in an amount determined by the comptroller in accordance with applicable financial accounting standards.

Sec. [x].006.  LABEL REQUIRED.

(a) A person may not distribute, sell, or offer for sale in this state a beverage in a beverage container unless the beverage container meets labeling standards established by the PRO unless they are a de minimis producer as previously defined.

(b) A person may not sell at retail in this state a beverage in a beverage container unless the person collects or provides for the collection of the deposit on the beverage container in accordance with the manner established by the PRO.

Sec. [x].007.  PROCEDURES.  The PRO shall establish efficient, convenient, and cost-effective procedures for collection of the beverage container deposit and payment of the deposit refunds.

(b) If the PRO does not meet the recycling rate target provided by Section [x].003 before the end of subsequent biennial the commission may require the PRO to remit to the state all or part of the money in the recycling refund trust fund established under Section [x].004.  The comptroller shall hold money remitted under this subsection until the PRO or another organization provides to the commission a corrective plan to meet the recycling target under this chapter.

(c) The comptroller shall consult with the commission before approving the corrective plan and releasing the money remitted and held under Subsection (b) to the PRO or other organization responsible for the approved corrective plan.

(d) The commission may audit the PRO for accuracy and adherence to recycling targets under this chapter. The PRO shall reimburse the commission for the cost incurred by the commission in the audit process.

SECTION 2.

(a) Not later than [DATE], the commission shall adopt rules for the implementation of Chapter [x], [APPLICABLE STATE CODE], as added by this Act.  To facilitate the approval of the structure and organization of the Beverage Container Recycling PRO and the PRO’s initial plan, the commission may adopt the initial rules in the manner provided by law for emergency rules.

(b) The PRO shall provide information as required by Section [x].003, as added by this Act, not later than [DATE].

(c) Except as otherwise provided by this Act, a producer, retailer, redemption center, or other person subject to requirements imposed by the PRO plan adopted and approved under Chapter [x], as added by this Act, shall comply with those requirements beginning [DATE].