SB1597sam003 100TH GENERAL ASSEMBLY

Sen. Terry Link

Filed: 4/23/2018

10000SB1597sam003 LRB100 08906 AWJ 38677 a

AMENDMENT TO SENATE BILL 1597

AMENDMENT NO. ______. Amend Senate Bill 1597, AS AMENDED, by replacing everything after the enacting clause with the following:

"Section 1. Short title. This Act may be cited as the Carryout Bag Fee Act.

Section 5. Definition. As used in this Act, "carryout bag" has the meaning given to that term in Section 5-1184 of the Counties Code.

Section 10. Carryout Bag Fee Fund.

(a) The Carryout Bag Fee Fund is created as a new fund in the State treasury. Moneys in the Fund shall be used as provided in this Act.

(b) Notwithstanding any other provision of law, the Carryout Bag Fee Fund is not subject to sweeps, administrative charges or chargebacks, or any other fiscal or budgetary maneuver that would in any way transfer any funds from the Carryout Bag Fee Fund into any other fund of the State.

Section 15. Payment of carryout bag fee required. A carryout bag fee of $0.05 is imposed on each carryout bag used by a customer at retail establishments located within Illinois. The retail establishment shall retain $0.02 of the fee. The retail establishment shall remit the remaining $0.03 of the fee to the Department of Revenue on form ST-1. The Department shall deposit $0.02 into the Carryout Bag Fee Fund and $0.01 into the General Revenue Fund. The Department of Revenue shall monthly remit the $0.02 of each fee from the Carryout Bag Fee Fund to the county where the retail establishment is located, except that if a municipal joint action agency is located within the county where the retail establishment is located, the Department of Revenue shall monthly remit to the municipal joint action agency a portion of the fee to the municipal joint action agency based on the location of retail establishments within the municipal joint action agency.

Section 20. Use of the carryout bag fee by counties and municipal joint action agencies. The county or municipal joint action agency shall use the revenue received from the carryout bag fee to fund the implementation of the county's or municipal joint action agency's solid waste management plan developed and approved pursuant to the Solid Waste Planning and Recycling Act, which may include entering into a contract with a person who can assist the county with implementing its solid waste management plan. If funds are available after implementing the solid waste management plan, then the fee may also be used for funding grants to encourage market development for recyclables and compost, to collect and manage household hazardous waste, to develop a carryout bag and plastic film recycling program, and to educate residents and businesses on source reduction, reuse, recycling, and composting programs.

Section 25. Exemption. The carryout bag fee does not apply to the retail sale or use of carryout bags that are used to carry items purchased pursuant to the Supplemental Nutrition Assistance Program or a similar governmental food assistance program.

Section 30. Incorporation by reference. All of the provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act that are not inconsistent with this Act, and all provisions of the Uniform Penalty and Interest Act shall apply, as far as practicable, to the subject matter of this Act to the same extent as if such provisions were included in this Act.

Section 900. The State Finance Act is amended by adding Section 5.886 as follows:

(30 ILCS 105/5.886 new)

Sec. 5.886. The Carryout Bag Fee Fund.

Section 905. The Counties Code is amended by adding Section 5-1184 as follows:

(55 ILCS 5/5-1184 new)

Sec. 5-1184. Auxiliary containers.

(a) As used in this Section:

"Auxiliary container" means a bag, carryout bag, cup, bottle, or other packaging that is designed to be reusable or for single use; that is made of cloth, paper, plastic, cardboard, corrugated material, aluminum, glass, extruded polystyrene, postconsumer recycled material, or similar material or substrates, including coated, laminated, or multi-layer substrates; and that is designed for transporting, containing, or protecting merchandise, food, or beverages from a food service or retail establishment.

"Carryout bag" means a plastic, paper, or compostable bag that is provided by a retail establishment at the checkstand, cash register, point of sale, or other point of departure to a customer for the purpose of transporting goods out of the retail establishment. "Carryout bag" does not include bags used by customers inside stores: to package bulk items, such as fruit, vegetables, nuts, grains, candy; that are used for greeting cards or small hardware items, such as nails and bolts; to contain or wrap frozen foods, meat, or fish, whether prepackaged or not; to contain or wrap flowers or potted plants, or other items where dampness may be a problem; to contain unwrapped prepared foods or bakery goods; to contain prescription drugs; to safeguard public health and safety during the transportation of prepared take-out foods and prepared liquids intended for consumption away from the retail establishment; that are newspaper bags, door-hanger bags, reusable bags, laundry-dry cleaning bags; or that are bags with a retail price of at least $0.50 each.

"Restaurant" means any business having sales of ready-to-eat food for immediate consumption comprising at least 51% of total sales excluding the sale of liquor.

"Retail establishment" means any person, corporation, partnership, business venture, public sports or entertainment facility, government agency, or organization that sells or provides merchandise, goods, or materials, including, but not limited to, clothing, food, beverages, household goods, or personal items of any kind directly to a customer. "Retail establishment" includes, but is not limited to, department stores, clothing stores, jewelry stores, grocery stores, pharmacies, home improvement stores, liquor stores, convenience stores, gas stations, and farmers markets. "Retail establishment" does not include food banks and other food assistance programs, mobile food delivery, or restaurants.

"Reusable bag" means a carryout bag with handles that is provided by a retail establishment at the checkstand, cash register, point of sale, or other point of departure to a customer for the purpose of transporting goods out of the establishment that is specifically designed and manufactured for multiple reuse, has a minimum lifetime capability of 125 or more uses carrying 22 or more pounds over a distance of at least 175 feet, and is capable of being washed so as to be cleaned and disinfected at least 100 times.

(b) Except as otherwise provided in this Section, a county may not ban, place a fee or tax on, or regulate in any other manner the use, disposition, content, taxation, or sale of auxiliary containers.

(c) Subsection (b) may not be construed to prohibit or restrict any of the following:

(1) A curbside recycling program.

(2) A designated residential or commercial recycling location.

(3) A commercial recycling program.

(4) The use of auxiliary containers on property owned by a unit of local government.

(d) A county that charged a fee or tax on auxiliary containers on February 1, 2018 may continue to charge the fee or tax. The county is prohibited from further regulating auxiliary containers, including bags and carryout bags, and from making further changes to the bag fee or bag tax ordinance in effect on February 1, 2018. However, the county may change its regulations to be consistent with this Section or eliminate the fee or tax altogether.

(e) A home rule county may not regulate or impose fees or taxes on auxiliary containers in a manner inconsistent with this Section. This Section is a limitation under subsection (i) of Section 6 of Article VII of the Illinois Constitution on the concurrent exercise by home rule units of powers and functions exercised by the State.

Section 910. The Illinois Municipal Code is amended by adding Section 11-42-17 as follows:

(65 ILCS 5/11-42-17 new)

Sec. 11-42-17. Auxiliary containers.

(a) As used in this Section:

"Auxiliary container" means a bag, carryout bag, cup, bottle, or other packaging that is designed to be reusable or for single use; that is made of cloth, paper, plastic, cardboard, corrugated material, aluminum, glass, extruded polystyrene, postconsumer recycled material, or similar material or substrates, including coated, laminated, or multi-layer substrates; and that is designed for transporting, containing, or protecting merchandise, food, or beverages from a food service or retail establishment.

"Carryout bag" means a plastic, paper, or compostable bag that is provided by a retail establishment at the checkstand, cash register, point of sale, or other point of departure to a customer for the purpose of transporting goods out of the retail establishment. "Carryout bag" does not include bags used by customers inside stores: to package bulk items, such as fruit, vegetables, nuts, grains, candy; that are used for greeting cards or small hardware items, such as nails and bolts; to contain or wrap frozen foods, meat, or fish, whether prepackaged or not; to contain or wrap flowers or potted plants, or other items where dampness may be a problem; to contain unwrapped prepared foods or bakery goods; to contain prescription drugs; to safeguard public health and safety during the transportation of prepared take-out foods and prepared liquids intended for consumption away from the retail establishment; that are newspaper bags, door-hanger bags, reusable bags, laundry-dry cleaning bags; or that are bags with a retail price of at least $0.50 each.

"Restaurant" means any business having sales of ready-to-eat food for immediate consumption comprising at least 51% of total sales excluding the sale of liquor.

"Retail establishment" means any person, corporation, partnership, business venture, public sports, or entertainment facility, government agency, or organization that sells or provides merchandise, goods, or materials including, but not limited to, clothing, food, beverages, household goods, or personal items of any kind directly to a customer. "Retail establishment" includes, but is not limited to, department stores, clothing stores, jewelry stores, grocery stores, pharmacies, home improvement stores, liquor stores, convenience stores, gas stations, and farmers markets. "Retail establishment" does not include food banks and other food assistance programs, mobile food delivery, or restaurants.

"Reusable bag" means a carryout bag with handles that is provided by a retail establishment at the checkstand, cash register, point of sale, or other point of departure to a customer for the purpose of transporting goods out of the establishment that is specifically designed and manufactured for multiple reuse, has a minimum lifetime capability of 125 or more uses carrying 22 or more pounds over a distance of at least 175 feet, and is capable of being washed so as to be cleaned and disinfected at least 100 times.

(b) Except as otherwise provided in this Section, a municipality may not ban, place a fee or tax on, or regulate in any other manner the use, disposition, content, taxation, or sale of auxiliary containers except as provided for in this Section.

(c) Subsection (b) may not be construed to prohibit or restrict any of the following:

(1) A curbside recycling program.

(2) A designated residential or commercial recycling location.

(3) A commercial recycling program.

(4) The use of auxiliary containers on property owned by a unit of local government.

(d) A municipality that charged a fee or tax on auxiliary containers on February 1, 2018 may continue to charge the fee or tax. The municipality is prohibited from further regulating auxiliary containers, including bags and carryout bags, and from making further changes to the bag fee or bag tax ordinance in effect on February 1, 2018. However, the municipality may change its regulations to be consistent with this Section or eliminate the fee or tax altogether.

(e) A home rule municipality may not regulate or impose fees or taxes on auxiliary containers in a manner inconsistent with this Section. This Section is a limitation under subsection (i) of Section 6 of Article VII of the Illinois Constitution on the concurrent exercise by home rule units of powers and functions exercised by the State.".