(a) A state agency, state court or judicial agency, a university system or institution of higher education, a county, municipality, school district, or special district shall:
(1) in cooperation with the comptroller or the commission establish a program for the separation and collection of all recyclable materials generated by the entity’s operations, including, at a minimum, aluminum, steel containers, aseptic packaging and polycoated paperboard cartons, high-grade office paper, and corrugated cardboard;
(2) provide procedures for collecting and storing recyclable materials, containers for recyclable materials, and procedures for making contractual or other arrangements with buyers of recyclable materials;
(3) evaluate the amount of recyclable material recycled and modify the recycling program as necessary to ensure that all recyclable materials are effectively and practicably recycled; and
(4) establish educational and incentive programs to encourage maximum employee participation.
(b) The commission:
(1) by order shall exempt from compliance with this section:
(A) a municipality with a population of less than 5,000 if the commission finds that compliance would work a hardship on the municipality;
(B) a school district with a student enrollment of fewer than 10,000 students; and
(C) an entity described by Subsection (a) if:
(i) the entity petitions the commission for an exemption; and
(ii) the commission finds that compliance would work a hardship on the entity; and
(2) shall adopt rules for administering this subsection.

(c) Expired.
(d) In this section, “recyclable materials” includes materials in the entity’s possession that have been abandoned or disposed of by the entity’s officers or employees or by any other person.