HB5112 104TH GENERAL ASSEMBLY

LRB104 16994 BDA 30408 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5112

Introduced 2/10/2026, by Rep. Laura Faver Dias

SYNOPSIS AS INTRODUCED:

See Index

Creates the Carryout Bag Reduction Act. Imposes, beginning January 1, 2027, a carryout bag fee of $0.10 on each carryout bag used by a consumer at a retail mercantile establishment. Increases the amount of the fee by $0.05 every year until the fee is $0.25 per carryout bag. Provides that the fee shall be further increased by $0.05 per year if certain goals are not met. Requires retail mercantile establishments to retain a specific amount of the fee and remit the remainder to the Department of Revenue for deposit into the Carryout Bag Fee Fund. Requires a specific amount of the fee to be deposited into the General Revenue Fund through 2030 and requires the remainder of the fee to be remitted either (i) to the county where the retail mercantile establishment is located or (ii) if a municipal joint action agency or a municipality with a population greater than 1,000,000 is located in the county, then to either the municipal joint action agency if the fee was collected from a retail mercantile establishment located within the municipal joint action agency service area or to the municipality with a population greater than 1,000,000 if the fee was collected from a retail mercantile establishment located within the municipality with a population greater than 1,000,000. Prohibits, beginning January 1, 2027, plastic bags from being used to transport goods from a retail mercantile establishment for delivery to the location of a consumer. Requires the Department to annually report certain information to the General Assembly and post that information on the Department's website. Establishes requirements for use of the revenue received from the carryout bag fee for units of local government. Exempts from the requirements of the Act bags for items purchased pursuant to the Supplemental Nutrition Assistance Program or any similar governmental food assistance program. Requires the Environmental Protection Agency to develop certain materials. Establishes civil penalties for violations of the Act. Provides for enforcement by the Attorney General or a State's Attorney, with penalties collected by the Attorney General to be deposited into the Solid Waste Management Fund. Limits home rule powers and functions. Defines terms. Amends the State Finance Act to create the Carryout Bag Fee Fund as a special fund in the State treasury. Effective immediately.

A BILL FOR

AN ACT concerning safety.

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 Reduction Act.

Section 5. Definition. As used in this Act:

"Agency" means the Illinois Environmental Protection Agency.

"Carryout bag" means a plastic bag, recycled paper bag, or reusable bag that is provided by a retail mercantile establishment either (i) at the checkout, cash register, or point of sale to a consumer for the purpose of transporting goods out of the retail mercantile establishment or (ii) to a consumer for the purpose of delivering goods from the location of a retail mercantile establishment to the location of the consumer.

"Consumer" means any person who makes a purchase at retail.

"Department" means the Department of Revenue.

"Person" means an individual, natural person, public or private corporation, government, partnership, unincorporated association, or other entity.

"Plastic" means an organic or petroleum-derived synthetic or semisynthetic solid material that is synthesized by the polymerization of organic substances, that is moldable into various rigid and flexible forms, and that may have had other substances added to it.

"Plastic bag" means a single-use plastic bag that is provided by a retail mercantile establishment at the checkout, cash register, or point of sale to a consumer for the purposes of transporting goods out of the retail mercantile establishment and that is not a recycled paper bag or reusable bag. "Plastic bag" does not include:

(1) a bag that is used to package bulk items, such as fruit, vegetables, nuts, and grains;

(2) a bag that is used for greeting cards, balloons, or small hardware items, such as nails and bolts;

(3) a bag that is used to contain or wrap frozen foods, meat, or fish, whether prepackaged or not;

(4) a bag that is used to contain or wrap flowers or potted plants or other items where dampness may be a problem;

(5) a bag that is used to contain unwrapped prepared foods or bakery goods;

(6) a bag that is used to contain prescription drugs;

(7) a bag that is sold in packages containing multiple bags intended for use as garbage bags, pet waste bags, or landscape waste bags;

(8) a bag that is brought to a store by the consumer for the consumer's own use or to carry away from the store goods that are not placed in a bag provided by the store;

(9) a bag that is provided by a dine-in or take-out restaurant to contain food or drink purchased by the restaurant's consumer;

(10) a bag containing a plastic liner that is permanently affixed, or designed and intended to be permanently affixed, to the inside of the particular bag;

(11) a newspaper bag, door-hanger bag, laundry cleaning bag, garment bag; or

(12) a bag that is used for online or digital orders where an employee of the retail mercantile establishment packages the goods for curbside pick-up or delivery.

"Primarily engaged in the sale of ready-to-eat food for immediate consumption" means having sales of ready-to-eat food for immediate consumption comprising at least 51% of the total sales, excluding the sale of liquor.

"Recycled paper bag" means a paper bag that is 100% recyclable and contains at least 40% post-consumer recycled material.

"Restaurant" means any business that is primarily engaged in the sale of ready-to-eat food for immediate consumption.

"Retail mercantile establishment" means a business that makes sales at retail and generates occupation or use tax revenue. "Retail mercantile establishment" does not include a restaurant.

"Reusable bag" means a bag with threaded stitched handles that is designed and manufactured for multiple uses; that can carry 22 pounds for a distance of 175 feet; and that is made of cloth, fiber, or other fabric or recycled material that is machine washable and can be cleaned and disinfected regularly.

Section 10. Carryout Bag Fee Fund.

(a) The Carryout Bag Fee Fund is created as a special 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) Beginning January 1, 2027, a carryout bag fee of $0.10 is imposed on each carryout bag used by a consumer at a retail mercantile establishment located in Illinois, which shall be paid by the consumer. Beginning January 1, 2028, the carryout bag fee shall be increased to $0.15 per carryout bag; beginning January 1, 2029, the carryout bag fee shall be increased to $0.20 per carryout bag; and beginning January 1, 2030, the carryout bag fee shall be increased to $0.25 per carryout bag. The ultimate incidence and liability for payment of the carryout bag fee is to be borne by the consumer. The fee shall be separately stated on the receipt provided to the consumer and shall be identified as the carryout bag fee. It is a violation of this Section for the retail mercantile establishment to fail to separately itemize the fee on a consumer's purchase of such a carryout bag or to otherwise absorb the fee on such sale.

Beginning January 1, 2027, the retail mercantile establishment shall retain $0.02 of each carryout bag fee that it collects; beginning January 1, 2028, it shall retain $0.03 of each carryout bag fee that it collects; beginning January 1, 2029, it shall retain $0.04 of each carryout bag fee that it collects; and beginning January 1, 2030, it shall retain $0.05 of each carryout bag fee that it collects. The retail mercantile establishment shall remit the remainder of the carryout bag fees that it collects each month to the Department on form ST-1.

The Department shall deposit into the Carryout Bag Fee Fund the portion of the carryout bag fees that are remitted to it. The Department shall monthly transfer into the General Revenue Fund $0.06 of the portion of each carryout bag fee that is remitted to it for 2027, $0.09 of the portion of each carryout bag fee that is remitted to it for 2028, $0.012 of the portion of each carryout bag fee that is remitted to it for 2029, and $0.15 of the portion of each carryout bag fee that is remitted to it for 2030. The Department shall monthly remit the remainder of the fee for each year to the county where the retail mercantile establishment that collected the fee is located, except that, if a municipal joint action agency or a municipality with a population greater than 1,000,000 is located in the county, then the Department shall remit the fee directly to either the municipal joint action agency if the fee was collected from a retail mercantile establishment located within the municipal joint action agency service area or to the municipality with a population greater than 1,000,000 if the fee was collected from a retail mercantile establishment located within the municipality with a population greater than 1,000,000.

(b) Beginning January 1, 2027, plastic bags shall not be used to transport goods from a retail mercantile establishment for delivery to the location of the consumer. Only recyclable paper bags or reusable bags shall be used for deliveries to consumer locations. Retail mercantile establishments are encouraged to implement a system that reuses containers or reusable bags to deliver goods to consumers. The reuse system must be able to demonstrate to the Agency that the containers or reusable bags used to deliver goods to consumers can be used at least 75 times before disposal. If such a demonstration is made and if the Agency approves the demonstration, the containers or reusable bags used shall be exempt from the requirements of this Section.

Section 20. Data requirements, program evaluation and program goals.

(a) By March 1, 2028, and March 1 of each year thereafter, the Department shall report to the General Assembly and shall post on the Department's website the total revenue generated from the carryout bag fee and the total number of carryout bags purchased by consumers in the previous calendar year in each county, municipal joint action agency service area, and municipality with a population greater than 1,000,000.

(b) After the report required by subsection (a) has been filed with the General Assembly and posted on the Department's website for calendar year 2030, the Department shall calculate the percentage decrease, if any, in the number of carryout bags purchased by consumers from calendar year 2027 through calendar year 2030. If the number of carryout bags purchased by consumers in 2030 decreased by at least 90% compared to 2027, the carryout bag fee shall remain at $0.25 per carryout bag. If the percentage decrease in carryout bags purchased by consumers has decreased by less than 90%, the carryout bag fee shall be increased by another $0.05. The carryout bag fee shall increase by $0.05 annually each calendar year until a 90% or greater reduction, compared to 2027, has been achieved. If the carryout bag use at any time in future annual reports show that sales of carryout bags to consumers are no longer less than at least 90% compared to 2027, the carryout bag fee shall be increased by $0.05 annually until carryout bag use again is at least 90% less than 2027.

Section 25. Use of the carryout bag fee by counties, municipal joint action agencies, or municipalities with a population greater than 1,000,000. The county, municipal joint action agency, or municipality with a population greater than 1,000,000 shall use the revenue received from the carryout bag fee for the following purposes:

(1) preparing and implementing waste management plans pursuant to the Solid Waste Planning and Recycling Act;

(2) inspecting and monitoring facilities used to manage municipal waste;

(3) paying for salaries and benefits of public sector employees, and costs associated with consultants and legal counsel hired to assist with developing and implementing programs consistent with this Section;

(4) implementing litter clean-up programs and events;

(5) increasing access to recycling and composting in areas deemed to be in environmental justice areas;

(6) developing and implementing education programs to increase participation in recycling programs, composting programs, household hazardous waste programs, and special collection events;

(7) conducting household hazardous waste collection programs; or

(8) conducting special collection events.

Section 30. 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 35. Education material and signage.

(a) Every retail mercantile establishment subject to the carryout bag fee shall conspicuously display a sign in a location outside or inside the establishment, viewable by consumers, alerting consumers to the carryout bag fee.

(b) The Agency shall develop educational and promotional material, including a sign that complies with subsection (a) of this Section. The Agency shall make the materials available on the Agency's website for use by retail mercantile establishments that are subject to the requirements of this Act.

Section 40. Enforcement.

(a) A person who violates any provision of this Act shall be liable for a civil penalty of up to $250 for the first offense within a 12-month period; a civil penalty of up to $500 for a second offense within a 12-month period; and a penalty of up to $1,000 for a third or subsequent offense within a 12-month period.

(b) Any violation of this Act may be enforced by the Attorney General or the State's Attorney of the county in which the violation occurs. The penalties provided for in subsection (a) may be recovered in a civil action brought in the name of the people of the State of Illinois by the State's Attorney of the county in which the violation occurred or by the Attorney General. Any penalties collected under this Section in an action in which the Attorney General has prevailed shall be deposited into the Solid Waste Management Fund. The Attorney General or the State's Attorney of a county in which a violation occurs may institute a civil action for an injunction, prohibitory or mandatory, to restrain violations of this Act or to require such actions as may be necessary to address violations of this Act.

(c) The penalties and injunctions provided in this Act are in addition to penalties, injunctions, or other relief provided under any other law. Nothing in this Act bars a cause of action by the State for any other penalty, injunction, or other relief provided by any other law.

Section 45. Carryout bag audits; home rule. The power to audit taxes or fees on the collection, remittance, and payment of any fees on carryout bags, however defined, is an exclusive power and function of the State. A municipality or county, including a home rule municipality or county, may not conduct a financial audit, with respect to the provision of carryout bags, of any person that provides a carryout bag to a consumer, except that any municipality or county with an ordinance related to carryout bags in effect as of January 1, 2026 may continue to audit carryout bags until January 1, 2030. This Section is a denial and limitation of home rule powers and functions under subsection (h) of Section 6 of Article VII of the Illinois Constitution.

Section 50. Regulation of carryout bags; home rule. A municipality or county, including a home rule unit, may not regulate in any manner the use, disposition, content, taxation, or sale of any carryout bag, however defined, that is provided by a retail mercantile establishment at the checkout, cash register, point of sale, or other point of departure to a consumer for the purpose of transporting goods out of the retail mercantile establishment, except that any municipality or county with an ordinance related to carryout bags in effect on the effective date of this Act may continue to regulate carryout bags until January 1, 2030, and except that any home rule municipality or county may prohibit a retail mercantile establishment from providing plastic bags to consumers. 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 80. The State Finance Act is amended by adding Section 5.1038 as follows:

(30 ILCS 105/5.1038 new)

Sec. 5.1038. The Carryout Bag Fee Fund.

Section 99. Effective date. This Act takes effect upon becoming law.