Bill Text: MI HB6610 | 2017-2018 | 99th Legislature | Introduced

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Bill Title: Environmental protection; pollution prevention; disposable grocery bags; impose fee and tax on. Amends title of 1994 PA 451 (MCL 324.101 - 324.90106) & adds pt. 177. TIE BAR WITH: HB 6609'18, HB 6611'18, HB 6612'18

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2018-12-19 - Bill Electronically Reproduced 12/19/2018 [HB6610 Detail]

Download: Michigan-2017-HB6610-Introduced.html

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HOUSE BILL No. 6610

 

 

December 19, 2018, Introduced by Reps. Rabhi, Wittenberg and Sowerby and referred to the Committee on Commerce and Trade.

 

     A bill to amend 1994 PA 451, entitled

 

"Natural resources and environmental protection act,"

 

(MCL 324.101 to 324.90106) by amending the title, as amended by

 

2013 PA 22, and by adding part 177.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

TITLE

 

     An act to protect the environment and natural resources of the

 

state; to codify, revise, consolidate, and classify laws relating

 

to the environment and natural resources of the state; to regulate

 

the discharge of certain substances into the environment; to

 

regulate the use of certain lands, waters, and other natural

 

resources of the state; to protect the people's right to hunt and

 

fish; to prescribe the powers and duties of certain state and local

agencies and officials; to provide for certain charges, fees,

 

taxes, assessments, and donations; to provide certain

 

appropriations; to prescribe penalties and provide remedies; and to

 

repeal acts and parts of acts.

 

PART 177 GROCERY BAGS

 

     Sec. 17701. As used in this part:

 

     (a) "Department" means the department of environmental

 

quality.

 

     (b) "Disposable grocery bag", subject to subdivision (c),

 

means a bag, made of any material, to allow a customer to carry

 

purchases from a retail grocery.

 

     (c) "Disposable grocery bag" does not include any of the

 

following:

 

     (i) A reusable grocery bag.

 

     (ii) A bag used inside a retail grocery to do any of the

 

following:

 

     (A) Package bulk items, such as fruit, vegetables, grain, or

 

candy.

 

     (B) Contain or wrap meat, fish, or frozen foods, whether or

 

not the items are prepackaged.

 

     (C) Contain unwrapped prepared foods or bakery goods.

 

     (iii) A bag used by a customer or pharmacist to contain

 

prescription drugs.

 

     (iv) A bag used by a retail grocery to contain leaks that may

 

occur in the transportation of soups, sauces, salad dressing, or

 

other liquids.

 

     (v) A bag provided to a customer by a restaurant to carry out

prepared food.

 

     (d) "Fund" means the recycling initiative fund created in

 

section 17711.

 

     (e) "Law enforcement officer" means that term as defined in

 

section 8801 of the revised judicature act of 1961, 1961 PA 236,

 

MCL 600.8801.

 

     (f) "Retail grocery" means that term as defined in section

 

1111 of the food law, 2000 PA 92, MCL 289.1111.

 

     (g) "Reusable grocery bag" means a bag to allow a customer to

 

carry purchases from a retail grocery, that is specifically

 

designed and manufactured to withstand repeated reuse, and that

 

meets the following requirements:

 

     (i) Has handles.

 

     (ii) Is capable of carrying 22 pounds 125 times over a

 

distance of at least 175 feet.

 

     (iii) Has a volume of 15 liters or more.

 

     (iv) Is machine-washable or made from a material that can be

 

cleaned and disinfected regularly.

 

     (v) If made from plastic, is at least 4/1,000 inch thick.

 

     Sec. 17703. A retail grocery shall not provide a customer with

 

a disposable grocery bag unless the bag meets the following

 

requirements:

 

     (a) If made from paper, contains a minimum of 40% postconsumer

 

recycled content.

 

     (b) Displays highly visible labeling of proper recycling or

 

disposal requirements, as prescribed by rules promulgated by the

 

department.

     Sec. 17705. (1) A retail grocery shall assess a fee of 2 cents

 

and a tax of 8 cents for each disposable grocery bag provided to a

 

customer at purchase. The fee and tax shall be charged to a

 

customer making a purchase whether the purchase is in person,

 

through the internet, by telephone, by facsimile, electronically,

 

or by any other means.

 

     (2) A retail grocery shall indicate on the customer

 

transaction receipt the number of disposable grocery bags provided

 

to the customer and the associated total fee and total tax.

 

     (3) A retail grocery shall not rebate or otherwise reimburse a

 

customer in whole or in part for the fee or tax under this section.

 

     Sec. 17707. (1) A retail grocery shall not assess a fee or tax

 

under section 17705 for a grocery bag provided to a customer who

 

shows valid proof of being a current beneficiary of the federal

 

supplemental nutrition assistance program (SNAP) or the special

 

supplemental nutrition program for women, infants, and children

 

(WIC).

 

     (2) The department of treasury shall grant a retail grocery an

 

exemption from 1 or more of the requirements of this part for up to

 

a 1-year period if the retail grocery demonstrates to the

 

department of treasury that compliance with the requirements of

 

this part would cause undue financial hardship or subject the

 

retail grocery to a disproportionate economic impact because of

 

circumstances particular to the retail grocery.

 

     (3) A request for an exemption under subsection (2) shall be

 

in writing and include information necessary for the department of

 

treasury to make its determination, including documentation showing

the factual support for the exemption requested. The department of

 

treasury may require the applicant to provide additional

 

information to allow the department of treasury to make its

 

determination. The department of treasury shall by rule establish a

 

fee for exemption requests sufficient to cover the administrative

 

costs for processing an exemption request.

 

     Sec. 17709. (1) A retail grocery shall retain the fees

 

generated under section 17705 and shall remit the tax revenue

 

generated under section 17705 to the department of treasury.

 

     (2) The amount of fees retained by a retail grocery under

 

subsection (1) is not classified as revenue for the purposes of

 

calculating the sales tax under the general sales tax act, 1933 PA

 

167, MCL 205.51 to 205.78.

 

     (3) It is the intent of the legislature that the fees retained

 

by a retail grocery under subsection (1) be used for the following

 

purposes:

 

     (a) To develop and provide educational resources to the

 

public, including retail grocery customers and staff, about the

 

following:

 

     (i) This part.

 

     (ii) Ecological benefits of reusable grocery bags.

 

     (iii) Proper end-of-life management and recycling of grocery

 

bags.

 

     (b) To train retail grocery staff in the implementation and

 

administration of this part.

 

     (c) To improve or alter infrastructure and equipment to allow

 

for the implementation or administration of this part.

     (d) To improve infrastructure and equipment to increase

 

recycling of plastic retail grocery bags.

 

     (e) To collect, account for, and remit the fee under section

 

17705 to the department.

 

     (4) The department of treasury shall deposit all tax revenue

 

collected by the department of treasury under this part into the

 

fund.

 

     Sec. 17711. (1) The recycling initiative fund is created

 

within the state treasury.

 

     (2) The state treasurer may receive money or other assets from

 

any source for deposit into the fund. The state treasurer shall

 

direct the investment of the fund. The state treasurer shall credit

 

to the fund interest and earnings from fund investments. Money in

 

the fund at the close of the fiscal year shall remain in the fund

 

and shall not lapse to the general fund. The department shall be

 

the administrator of the fund for auditing purposes.

 

     (3) The department of environmental quality shall expend money

 

from the fund, upon appropriation, only for 1 or more of the

 

following purposes:

 

     (a) To promote recycling of or reduce the use of disposable

 

bags, packaging, and containers.

 

     (b) For grants to municipalities to increase recycling

 

capacity and participation or to reduce waste.

 

     (c) For administration, education, and enforcement of the

 

program under this part and the polystyrene foam program under part

 

163.

 

     (d) For programs and grants to clean up litter and pollution

composed wholly or in part by disposable containers, packaging, and

 

bags.

 

     (e) For programs, or grants to municipalities, universities,

 

or nonprofits, to research recycling and waste reduction.

 

     Sec. 17713. (1) On a calendar quarter basis, a retail grocery

 

shall report to the department of treasury, on a form provided by

 

the department of treasury, the following:

 

     (a) The number of disposable grocery bags provided to

 

customers.

 

     (b) The total amount of money collected under section 17705.

 

     (c) A summary of any efforts to promote the use of reusable

 

grocery bags by customers.

 

     (2) A retail grocery shall submit the report required under

 

subsection (1) within 30 days after the end of the calendar quarter

 

covered by the report.

 

     Sec. 17715. A retail establishment that is not subject to this

 

part may comply with this part after providing written notice to

 

the department.

 

     Sec. 17717. (1) A law enforcement officer shall issue a

 

warning notice to a retail grocery for an initial violation of

 

section 17703. The notice shall contain a description of the

 

violation and a statement of how to remedy the violation. The

 

retail grocery shall comply with this part within 5 days after

 

receipt of the notice.

 

     (2) A person who violates section 17703 after an initial

 

violation for which a warning was received under subsection (1) is

 

responsible for a state civil infraction and may be ordered to pay

a civil fine of not more than the following amount:

 

     (a) Except as provided in subdivision (b) or (c), $200.00.

 

     (b) For a second violation within 1 year after a first

 

violation under this subsection, $400.00.

 

     (c) For a third violation within 1 year after a second

 

violation under this subsection or for any fourth or subsequent

 

violation under this subsection, $1.000.00.

 

     (3) A retail grocery shall not be found responsible for more

 

than 1 violation of section 17703 within a 7-day period.

 

     (4) Except as provided in subsections (1) to (3), the

 

department of treasury shall enforce this part, pursuant to 1941 PA

 

122, MCL 205.1 to 205.31. However, this part, except for the

 

requirement to remit collected tax revenue under section 17709(1),

 

is not enforceable against a retail establishment that elects to

 

comply with this part under section 17715.

 

     Sec. 17719. Pursuant to the administrative procedures act of

 

1969, 1969 PA 306, MCL 24.201 to 24.328, the department of treasury

 

and department of environmental quality shall jointly promulgate

 

rules to implement this part by 1 year after the effective date of

 

this section.

 

     Enacting section 1. (1) This amendatory act takes effect 90

 

days after the date it is enacted into law.

 

     (2) Sections 17701 to 17717 apply beginning 90 days after the

 

deadline for rule promulgation under section 17719.

 

     Enacting section 2. This amendatory act does not take effect

 

unless all of the following bills of the 99th Legislature are

 

enacted into law:

     (a) Senate Bill No.____ or House Bill No. 6611 (request no.

 

06618'18 a).

 

     (b) Senate Bill No.____ or House Bill No. 6612 (request no.

 

06618'18 b).

 

     (c) Senate Bill No.____ or House Bill No. 6609 (request no.

 

06619'18).