S2600 —

S2600 SBA1R Statement[First 6/18/18Reprint] SENATE BUDGET AND APPROPRIATIONS COMMITTEE   STATEMENT TO   SENATE, No.

 2600 withSTATE committeeOF amendmentsNEW JERSEY 218th LEGISLATURE   STATEINTRODUCED OFMAY NEW21, JERSEY2018   DATED:  Sponsored by:

 JUNESenator  18,M. 2018         The Senate Budget and Appropriations Committee reports favorably Senate Bill No.

2600,TERESA withRUIZ committeeDistrict 29 (Essex) Senator  BOB SMITH District 17 (Middlesex and Somerset) Senator  LORETTA WEINBERG District 37 (Bergen)         SYNOPSIS      Establishes fee on single-use carryout bags used in certain stores and dedicates fee revenue to “Healthy Schools and Community Lead Abatement Fund.”   CURRENT VERSION OF TEXT      As reported by the Senate Budget and Appropriations Committee on June 18, 2018, with amendments.

        AsAn amended,Act thisconcerning bill would establish a fee on the use of single-use carryout bags providedin by certain types of stores to customers and dedicatesupplementing revenueTitles from13 the fee to the “Healthy Schools and Community54 Lead Abatement Fund.”       Specifically, beginning on October 1, 2018, the bill would require each operator of a store to impose a $0.05 fee on a customer for each single-use carryout bag that is provided to the customer.Revised Statutes.

 However,  the     billBe providesIt thatEnacted noby fee would be charged if the customerSenate is enrolled as a participant in the Supplemental Nutrition Assistance Program (SNAP), the Special Supplemental Nutrition Program for Women, Infants and ChildrenGeneral (WIC),Assembly orof the WorkState Firstof New JerseyJersey: program.

            “Store”1.    isa.   definedBeginning in1[June the1, bill2017] asOctober a1, drug20181 store,, supermarket,each oroperator retailshall establishmentimpose thata has$0.05 overfee 2,000on squarethe feetcustomer offor retaileach spacesingle-use orcarryout bag that is partprovided ofas a chain,carryout andbag thatto providesthe carryoutcustomer, bagsexcept tothat itsthe customersoperator asshall anot resultcharge of the salefee ofon aany product.customer who 1[:

 A     “chain”(1)   is any65 businessyears withof 10age or moreolder; locations in the State or nationally and doing business under the same trade name or under common ownership or control, or as franchised outlets of a parent business.

 “Single-useor carryout     bag”(2)]1 is definedenrolled as any bag that is not a reusableparticipant carryoutin bag,the andSupplemental wouldNutrition includeAssistance single-useProgram, compostableestablished andpursuant non-compostableto plastic bags and paper bags.  However, as amended by the committee,federal the“Food term “single-use carryout bag” would not include any non-handled bag intended to separate and preventNutrition anAct itemof from2008” damaging(7 orU.S.C. contaminating another item.

     s.2011 Underet theseq.), bill, each store operator would be required to indicate the totalSpecial numberSupplemental ofNutrition single-useProgram carryoutfor bagsWomen, providedInfants to a customer and theChildren, totalestablished feepursuant chargedto for the bagsfederal on“Child theNutrition salesAct orof other1966” receipt(42 givenU.S.C. to the customer.

 Stores.1771 operatorset wouldseq.), retainor $0.01 of the feeWork collected,First andNew payJersey theprogram, remainingestablished $0.04pursuant to theP.L.1997, Directorc.38 of(C.44:10-55 theet Divisionseq.). of Taxation, in a manner prescribed by the director.

 The     directorb.    couldEach useoperator upshall toindicate onethe percenttotal number of thesingle-use revenuescarryout collectedbags provided to defraya customer, and the costtotal offee administrationcharged ofpursuant theto bill.subsection a.

 Theof directorthis wouldsection, depositon the remainingsales revenuesor intoother thereceipt “Healthygiven Schoolsto and Community Lead Abatement Fund” established in the bill.customer.

 Moneys     inc.     theEach fundoperator wouldshall beretain used$0.01 by the Department of Environmental Protection (DEP), in consultation with the Departmentfee ofcollected Education,pursuant theto Departmentsubsection ofa. Community Affairs, and the Department of Health, for lead abatement in schools and communities, including:

 removalof this section, and replacementremit the remaining $0.04 to the director in a manner prescribed by the director.  Each operator shall be personally liable for the fees imposed, collected, or required to be collected.  Any operator shall have the same right in respect to collecting the fee from a customer as if the fee were a part of waterthe fountains,sales plumbing,price of the product sold and pipespayable thatat containthe lead;same time.       d.    The director may use up to one percent of the revenues collected pursuant to subsection c.

of this section to defray the costs of administration and collection of the fees.  The director shall deposit the remainder of the revenues into the “Healthy Schools and Community Lead Abatement Fund” established pursuant to section 3 of P.L.    , c.    (C.        ) (pending before the Legislature as this bill).

     e.     The fee imposed pursuant to this section shall be governed by the provisions of the State Uniform Tax Procedure Law, R.S.54:48-1 et seq.

     f.     The director shall adopt, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations necessary for the implementation of this act.

     g.    This section shall supersede and preempt municipal and county rules, regulations, codes, and ordinances concerning the regulation or prohibition of carryout bags or fees charged therefor 1, except that this section shall not supersede or preempt any municipal or county rule, regulation, code, or ordinance establishing a prohibition on single-use carryout bags adopted prior to the date of enactment of P.L.    , c.    (C.        ) (pending before the Legislature as this bill)1 .

     h.    As used in this section:       “Carryout bag” means a bag provided by a store at the point of sale for customers to carry their goods out of the store.

     “Chain” means a business with 10 or more locations in the State or nationally and doing business under the same trade name or under common ownership or control, or as franchised outlets of a parent business.       “Director” means the Director of the Division of Taxation in the Department of the Treasury.

     “Operator” means a person in control of, or having responsibility for, the daily operation of a store, which may include, but need not be limited to, the owner of the store.

     “Reusable carryout bag” means a bag made of cloth or other machine washable fabric that has handles, a non-woven polypropylene bag that has handles, or a durable plastic bag that has handles and is at least 2.25 mils thick, and which is specifically designed and manufactured for multiple reuse.

     “Single-use carryout bag” means any carryout bag that is not a reusable carryout bag 1, except that “single-use carryout bag” shall not include any non-handled bag intended to separate and prevent an item from damaging or contaminating another item1 .

     “Store” means a drug store, supermarket, or retail establishment that has over 2,000 square feet of retail space or is part of a chain, and that provides carryout bags to its customers as a result of the sale of a product.

       2.    a.   Within 90 days after the effective date of this act, the Department of Environmental Protection shall establish a public information program which addresses the effects of single-use carryout bags on the environment, and encourages consumers to use reusable carryout bags for retail shopping.  The public information program shall include information on the fee charged for single-use carryout bags pursuant to section 1 of P.L.     , c.     (C.         ) (pending before the Legislature as this bill).       b.    For the purposes of this section:

     “Carryout bag” means a bag provided by a store at the point of sale for customers to carry their goods out of the store.

     “Chain” means a business with 10 or more locations in the State or nationally and doing business under the same trade name or under common ownership or control, or as franchised outlets of a parent business.       “Reusable carryout bag” means a bag made of cloth or other machine washable fabric that has handles, a non-woven polypropylene bag that has handles, or a durable plastic bag that has handles and is at least 2.25 mils thick, and which is specifically designed and manufactured for multiple reuse.

     “Single-use carryout bag” means any carryout bag that is not a reusable carryout bag 1, except that “single-use carryout bag” shall not include any non-handled bag intended to separate and prevent an item from damaging or contaminating another item1 .

     “Store” means a drug store, supermarket, or retail establishment that has over 2,000 square feet of retail space or is part of a chain, and that provides carryout bags to its customers as a result of the sale of a product.

        3.   a.   There is established in the Department of Environmental Protection a nonlapsing fund to be known as the “Healthy Schools and Community Lead Abatement Fund.”       b.   The fund shall be credited with:

     (1)   the fees collected by the director pursuant to section 1 of P.L.       , c.     (C.       ) (pending before the Legislature as this bill);

     (2)   all interest or other investment income earned and received on investment of the moneys in the fund;

and      (3)   any other monies that may be made available, or appropriated, to the department for the purposes of the fund.        c.    Moneys in the fund shall be used by the Department of Environmental Protection, in consultation with the Department of Education, the Department of Community Affairs, and the Department of Health, solely for lead abatement in schools and communities, including:

removal and replacement of water fountains, plumbing, and pipes that contain lead;

and other lead abatement programs.programs, as established by the department in consultation with the Department of Education, the Department of Community Affairs, and the Department of Health.

           d.   The billdepartment alsoshall woulddevelop requireguidelines the DEP to establishprioritize athe publicdisbursement informationof programmonies whichfrom addresses the harmfulfund environmental effects caused by single-use carryout bags, and encouragesshall consumerspost tothese useguidelines reusableon carryoutits bagsInternet forwebsite. retail shopping.

 The     public e.    informationThe programdepartment wouldshall includesubmit informationannually onto the feeGovernor chargedand, forpursuant single-useto carryoutsection bags2 pursuantof P.L.1991, c.164 (C.52:14-19.1), to the bill.Legislature a report detailing the lead abatement activities undertaken and the funds disbursed pursuant to this section.

       Finally,     the 4.   billThis wouldact supersedeshall andtake preempteffect anyimmediately. municipal and county rules, regulations, codes, and ordinances concerning the regulation or prohibition of single-use carryout bags or fees charged for those bags, except that the bill would not supersede or preempt any municipal or county rule, regulation, code, or ordinance establishing a prohibition on single-use carryout bags adopted prior to the date the bill is enacted into law.

  COMMITTEE AMENDMENTS       The committee amendments to the bill: