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).