SB3423 101ST GENERAL ASSEMBLY

LRB101 17232 AWJ 66636 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB3423

Introduced 2/14/2020, by Sen. Melinda Bush

SYNOPSIS AS INTRODUCED:

New Act
30 ILCS 105/5.930 new
55 ILCS 5/5-1186 new
65 ILCS 5/11-42-17 new

Creates the Carryout Bag Fee Act. Provides that a carryout bag fee of $0.10 is imposed on each carryout bag used by a customer at retail establishments, except in municipalities with a population greater than 1,000,000, with $0.03 being returned to the retail establishment, $0.04 into the Carryout Bag Fee Fund, $0.01 to the Prairie Research Institute of the University of Illinois, $0.01 into the Solid Waste Management Fund, and $0.01 into the Partners for Conservation Fund. Provides that the carryout bag fee does not apply to the retail sale or use of carryout bags that are used to carry items purchased under specified governmental food assistance programs. Repeals the new Act on January 1, 2026. Amends the State Finance Act making conforming changes. Amends the Counties Code and Illinois Municipal Code. Provides that a county or municipality may not ban, place a fee or tax on, or regulate in any other manner the use, disposition, content, taxation, or sale of carryout bags. Limits the applicability of the provisions as they relate to a county or municipality that charged a fee or tax on carryout bags on May 1, 2020 and specified recycling programs. Limits home rule powers.

FISCAL NOTE ACT MAY APPLY

HOME RULE NOTE ACT MAY APPLY

HOUSING AFFORDABILITY IMPACT NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning local government.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

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 subsection (a) of 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 $0.10 is imposed on each carryout bag used by a customer at retail establishments located within Illinois, except in municipalities with a population greater than 1,000,000, that shall be paid by the customer. The ultimate incidence and liability for payment of the fee is to be borne by the customer. The fee shall be separately stated on the receipt provided to the customer at the time of sale and shall be identified as the Carryout Bag Fee. It is a violation of this Section for the store to fail to separately itemize the fee on a customer's purchase of such a bag, or to otherwise absorb the fee on such sale. The retail establishment shall retain $0.03 of the fee. The retail establishment shall remit the remaining $0.07 of the fee to the Department of Revenue on form ST-1. The Department shall deposit $0.04 into the Carryout Bag Fee Fund, $0.01 to the Prairie Research Institute of the University of Illinois, $0.01 into the Solid Waste Management Fund, and $0.01 into Partners for Conservation Fund. The Department of Revenue shall monthly remit the $0.03 of the 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:

(1) household hazardous waste collection one-day events;

(2) collection centers, as defined in Section 3 of the Household Hazardous Waste Collection Program Act;

(3) education programs to reduce contamination and increase participation in recycling and composting programs;

(4) programs to increase the collection and recycling or composting of auxiliary containers;

(5) grants to encourage market development or infrastructure development for recycling and composting; and

(6) the implementation of solid waste management plans developed pursuant to the Solid Waste Planning and Recycling Act.

At least 25% of the revenue received from the carryout bag fee shall be used as specified in items (1) and (2).

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 35. Repeal. This Act is repealed on January 1, 2026.

Section 900. The State Finance Act is amended by adding Section 5.930 as follows:

(30 ILCS 105/5.930 new)

Sec. 5.930. The Carryout Bag Fee Fund.

Section 905. The Counties Code is amended by adding Section 5-1186 as follows:

(55 ILCS 5/5-1186 new)

Sec. 5-1186. Carryout bags.

(a) As used in this Section:

"Carryout bag" means a plastic, paper, or compostable bag that is provided by a retail establishment at the checkout, cash register, point of sale, or other point of departure to a customer for the purpose of transporting goods out of the retail establishment.

"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.

(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 carryout bags.

(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.

(d) A county that charged a fee or tax on carryout bags on May 1, 2020 may continue to charge the fee or tax. The county is prohibited from further regulating carryout bags and from making further changes to the bag fee or bag tax ordinance in effect on May 1, 2020. However, the county may change its regulations to be consistent with this Section.

(e) No mistakes by the employee or retailer regarding the charging of fees under this Section shall be the basis for filing an action by a private person under the Illinois False Claims Act.

(f) A home rule county may not ban, place a fee or tax on, or regulate in any other manner the use, disposition, content, taxation, or sale of carryout bags, except as provided for in this Section. This Section is a denial and limitation of home rule powers and functions under subsection (g) of Section 6 of Article VII of the Illinois Constitution.

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. Carryout bags.

(a) As used in this Section:

"Carryout bag" means a plastic, paper, or compostable bag that is provided by a retail establishment at the checkout, cash register, point of sale, or other point of departure to a customer for the purpose of transporting goods out of the retail establishment.

"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.

(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 carryout bags.

(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.

(d) A municipality that charged a fee or tax on carryout bags on May 1, 2020 may continue to charge the fee or tax. The municipality is prohibited from further regulating carryout bags and from making further changes to the bag fee or bag tax ordinance in effect on May 1, 2020. However, the municipality may change its regulations to be consistent with this Section.

(e) No mistakes by the employee or retailer regarding the charging of fees under this Section shall be the basis for filing an action by a private person under the Illinois False Claims Act.

(f) Except in municipalities with a population greater than 1,000,000, a home rule municipality may not ban, place a fee or tax on, or regulate in any other manner the use, disposition, content, taxation, or sale of carryout bags, except as provided for in this Section. This Section is a denial and limitation of home rule powers and functions under subsection (g) of Section 6 of Article VII of the Illinois Constitution.