[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2091 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 2091

 To amend the Internal Revenue Code of 1986 to impose a retail tax on 
           single-use carryout bags, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 23, 2009

Mr. Moran of Virginia introduced the following bill; which was referred 
to the Committee on Ways and Means, and in addition to the Committee on 
 Natural Resources, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to impose a retail tax on 
           single-use carryout bags, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Plastic Bag Reduction Act of 2009''.

SEC. 2. IMPOSITION OF TAX ON SINGLE-USE CARRYOUT BAGS.

    (a) General Rule.--Chapter 31 of the Internal Revenue Code of 1986 
(relating to environmental taxes) is amended by inserting after 
subchapter C the following new subchapter:

                ``Subchapter D--Single-Use Carryout Bags

``Sec. 4056. Imposition of tax.

``SEC. 4056. IMPOSITION OF TAX.

    ``(a) General Rule.--There is hereby imposed on any retail sale a 
tax on any single-use carryout bag.
    ``(b) Amount of Tax.--The amount of tax imposed by subsection (a) 
on any single-use carryout bag shall be--
            ``(1) $0.05 on and after January 1, 2010, and before 
        January 1, 2015, and
            ``(2) $0.25 on and after January 1, 2015.
    ``(c) Liability for Tax.--The retailer shall be liable for the tax 
imposed by subsection (a).
    ``(d) Definitions.--For purposes of this section--
            ``(1) Single-use bag.--
                    ``(A) In general.--The term `single-use carryout 
                bag' means a carryout bag, including a grocery sack, 
                dry-cleaning bag, take-out food bag, retail bag, 
                membership or wholesaler bag, and service station bag, 
                manufactured or imported for use by a retail seller at 
                a point of sale with a customer.
                    ``(B) Exceptions.--Such term does not include--
                            ``(i) any reusable bag,
                            ``(ii) any bag manufactured for use by a 
                        customer inside a store to package bulk items 
                        such as fruit, vegetables, nuts, grains, candy, 
                        or small hardware items, such as nails and 
                        bolts,
                            ``(iii) any bag manufactured for use by a 
                        pharmacist to contain prescription drugs, and
                            ``(iv) any bag manufactured to be sold at 
                        retail in packages containing multiple bags 
                        intended for use as garbage, pet waste, or yard 
                        waste bags.
            ``(2) Reusable bag.--The term `reusable bag' means a bag 
        that has handles and is--
                    ``(A)(i) made of cloth or other machine washable 
                fabric, or
                    ``(ii) made of a durable plastic that is at least 
                2.25 mils thick, and
                    ``(B) is specifically designed and manufactured for 
                multiple reuse.
    ``(e) Special Rules.--
            ``(1) Pass through of tax.--The tax imposed by subsection 
        (a) shall be passed through to the customer and shall be 
        separately stated on the receipt of sale provided to the 
        customer.
            ``(2) Records.--Each retailer shall keep records for 
        purposes of this section and section 6433. Such records shall 
        include the total number of single-use carryout bags purchased 
        and the amounts passed through to the customer for such bags 
        pursuant to paragraph (1).
            ``(3) 1st retail sale; use treated as sale.--For purposes 
        of this section, rules similar to the rules of subsections (a) 
        and (b) of section 4002 shall apply.''.
    (b) Carryout Bag Recycling Program.--Subchapter B of chapter 65 of 
such Code is amended by adding at the end the following new section:

``SEC. 6433. QUALIFIED SINGLE-USE CARRYOUT BAG RECYCLING PROGRAM.

    ``(a) Allowance of Credit.--If--
            ``(1) tax has been imposed under section 4056 on any 
        single-use carryout bag, and
            ``(2) a retailer provides such bag to a customer in a point 
        of sale transaction, and
            ``(3) such retailer has in effect at the time of such 
        transaction a qualified carryout bag recycling program,
the Secretary shall pay (without interest) to such retailer an amount 
equal to the applicable amount for each such bag used by the retailer 
in connection with a point of sale transaction.
    ``(b) Applicable Amount.--For purposes of subsection (a), the 
applicable amount is--
            ``(1) $0.01 with respect to transaction on and after 
        January 1, 2010, and before January 1, 2015, and
            ``(2) $0.05 with respect to transaction on and after 
        January 1, 2015.
    ``(c) Qualified Single-Use Carryout Bag Recycling Program.--For 
purposes of this section, the term `qualified carryout bag recycling 
program' means a program under which the retailer--
            ``(1) to the extent the retailer provides single-use 
        carryout bags (as defined in section 4056) to customers--
                    ``(A) passes through the tax imposed by section 
                4056 and tracks the total number of bags purchased and 
                amount of tax passed through pursuant to section 
                4056(d), and
                    ``(B) has printed or displayed on each such bag, in 
                a manner visible to a customer, the words `PLEASE 
                RETURN TO A PARTICIPATING STORE FOR RECYCLING',
            ``(2) places at each place of business at which retail 
        operations are conducted one or more carryout bag collection 
        bins which are visible, easily accessible to the customer, and 
        clearly marked as being for the purpose of collecting and 
        recycling single-use carryout bags,
            ``(3) recycles the single-use carryout bags collected 
        pursuant to paragraph (2),
            ``(4) maintains for not less than 3 years records (which 
        shall be available to the Secretary) describing the collection, 
        transport, and recycling of single-use carryout bags collected, 
        and
            ``(5) makes available to customers within the retail 
        establishment reusable bags (as defined in section 4056(c)(2)) 
        which may be purchased and used in lieu of using a single-use 
        carryout bag.''.
    (c) Establishment of Trust Fund.--Subchapter A of chapter 98 of 
such Code (relating to trust fund code) is amended by adding at the end 
the following:

``SEC. 9511. SINGLE-USE CARRYOUT BAG TRUST FUND.

    ``(a) Creation of Trust Fund.--There is established in the Treasury 
of the United States a trust fund to be known as the `Single-Use 
Carryout Bag Trust Fund' (referred to in this section as the `Trust 
Fund'), consisting of such amounts as may be appropriated or credited 
to the Trust Fund as provided in this section or section 9602(b).
    ``(b) Transfers to Trust Fund.--There is hereby appropriated to the 
Trust Fund an amount equivalent to the amounts received in the Treasury 
pursuant to section 4056.
    ``(c) Expenditures From Trust Fund.--Amounts in the Trust Fund 
shall be available, as provided by appropriation Acts, for--
            ``(1) grants to States and localities that establish taxes 
        on plastic and paper bags which are similar to the taxes 
        imposed under section 4056, and
            ``(2) making payments under section 6433.
    ``(d) Transfer to Land and Water Conservation Fund.--
            ``(1) In general.--The Secretary shall pay from time to 
        time from the Trust Fund into the land and water conservation 
        fund provided for in title I of the Land and Water Conservation 
        Fund Act of 1965 amounts (as determined by the Secretary) 
        equivalent to the aggregate of the transactions on which tax is 
        imposed under section 4056 aggregate amounts determined on the 
        basis of--
                    ``(A) $0.01 with respect to each such transaction 
                on and after January 1, 2010, and before January 1, 
                2015, and
                    ``(B) $0.05 with respect to each such transaction 
                on and after January 1, 2015.
            ``(2) Special rule regarding amounts transferred.--Amounts 
        transferred to the land and water conservation fund under 
        paragraph (1) shall not be taken into account for purposes of 
        determining amounts to be appropriated or credited to the fund 
        under section 2(c) of the Land and Water Conservation Fund Act 
        of 1965 (16 U.S.C. 460l-5(c)).''.
    (d) Study.--Not later than December 31, 2012, the Comptroller 
General of the United States shall conduct a study on the effectiveness 
of the provisions of this Act at reducing the use of single-use 
carryout bags and encouraging recycling of such bags. The report 
shall--
            (1) address measures that the Comptroller General 
        determines may increase the effectiveness of such provisions, 
        including the amount of tax imposed on each single-use carryout 
        bag, and
            (2) evaluate whether imposing taxes on other products, such 
        as food wrappers and containers, could reduce the use of such 
        products.
The Comptroller General shall submit a report of such study to the 
Committee on Ways and Means of the House of Representatives and the 
Committee on Finance of the Senate.
    (e) Clerical Amendments.--
            (1) The table of subchapters for chapter 31 of such Code is 
        amended by inserting after the item relating to adding at the 
        end thereof the following new item:

``Subchapter D. Single-Use Carryout Bags.''.
            (2) The table of sections for subchapter B of chapter 65 of 
        such Code is amended by adding at the end the following new 
        item:

``Sec. 6433. Qualified single-use carryout bag recycling program.''.
            (3) The table of sections for subchapter A of chapter 98 of 
        such Code is amended by adding at the end the following new 
        item:

``Sec. 9511. Single-Use Carryout Bag Trust Fund.''.
    (f) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2010.
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