,i #aacth ,,congress #ast ,session ,h4 ,r4 #afhf ,,in ,,the ,,house ,,of ,,representatives ,april #bc1 #bjac ,mr4 ,moran 7for himself1 ,ms4 ,norton1 ,mr4 ,blumenauer1 and ,mr4 ,garamendi7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committee on ,natural ,resources1 for a period to be subsequently determined by the ,speaker1 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 #aihf to impose a retail tax on disposable carryout bags1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,trash ,reduction ,act of #bjac4 #b4 ,imposition of tax on disposable carryout bags 7a7 ,general rule ,chapter #ca of the ,internal ,revenue ,code of #aihf 7relating to retail excise taxes7 is amended by inserting after subchapter ,c the following new subchapter3 ,d ,disposable ,carryout ,bags ,sec4 #djef4 ,imposition of tax4 #djef4 ,imposition of tax 7a7 ,general rule ,there is hereby imposed on any retail sale a tax on each disposable carryout bag4 7b7 ,amount of tax ,the amount of tax imposed by subsection 7a7 shall be #j4je per disposable carryout bag4 7c7 ,liability for tax ,the retailer shall be liable for the tax imposed by this section4 7d7 ,definitions ,for purposes of this section-- 7#a7 ,disposable carryout bag 7,a7 ,in general ,the term disposable carryout bag means a bag of any material1 commonly plastic or kraft paper1 which is provided to a consumer at the point of sale to carry or cover purchases1 merchandise1 or other items4 7,b7 ,exceptions ,such term does not include-- 7i7 any reusable bag1 7ii7 any bag manufactured for use by a customer inside a store to package bulk items such as fruit1 vegetables1 nuts1 grains1 candy1 or small hardware items1 such as nails and bolts1 7iii7 any bag that contains or wraps frozen foods1 prepared foods1 or baked goods when not prepackaged1 7iv7 any bag manufactured for use by a pharmacist to contain prescription drugs1 and 7v7 any bag manufactured to be sold at retail in packages containing multiple bags intended for use as garbage1 pet waste1 or yard waste bags4 7#b7 ,reusable bag ,the term reusable bag means a bag that is-- 7,a7 7i7 made of cloth or other machine washable fabric1 or 7ii7 made of a durable plastic that is at least #b4be millimeters thick1 and 7,b7 is specifically designed and manufactured for multiple use4 7e7 ,special rules 7#a7 ,pass through of tax ,the tax imposed by subsection 7a7 shall be passed through to the customer and shall be separately stated on the receipt of sale provided to the customer4 7#b7 #ast retail sale2 use treated as sale ,for purposes of this section1 rules similar to the rules of subsections 7a7 and 7b7 of section #djjb shall apply4 4 7b7 ,carryout bag recycling program ,subchapter ,b of chapter #fe of such ,code is amended by adding at the end the following new section3 #fdcc4 ,qualified disposable carryout bag recycling program 7a7 ,allowance of credit ,if-- 7#a7 tax has been imposed under section #djef on any disposable carryout bag1 7#b7 a retailer provides such bag to a customer in a point of sale transaction1 7#c7 such retailer has in effect at the time of such transaction a qualified carryout bag recycling program1 and 7#d7 such retailer has kept and can produce records for purposes of this section and section #djef that include the total number of disposable carryout bags purchased and the amounts passed through to the customer for such bags pursuant to section #djef7;e71 the ,secretary shall pay 7without interest7 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 transaction4 7b7 ,applicable amount ,for purposes of subsection 7a71 the applicable amount is #j4ja4 7c7 ,qualified disposable carryout bag recycling program ,for purposes of this section-- 7#a7 ,in general ,the term qualified carryout bag recycling program means a recycling program under which the retailer-- 7,a7 to the extent the retailer provides disposable carryout bags 7as defined in section #djef7 to customers-- 7i7 passes through the tax imposed by section #djef and tracks the total number of bags purchased and amount of tax passed through pursuant to section #fdcc7;a71 7ii7 has printed or displayed on each such bag1 in a manner clearly visible to a customer1 the words ,,please ,,return ,,to ,a ,,participating ,,store ,,for ,,recycling1 7iii7 uses bags that are #ajj percent recyclable1 7iv7 uses bags that are made of high-density polyethylene film marked with the ,,spi resin identification code #b or low-density polyethylene film marked with the ,,spi resin identification code #d1 and 7v7 uses bags that contain a minimum of #dj percent post-consumer recycled content1 7,b7 places at each place of business at which retail operations are conducted one or more carryout bag collection bins which are visible1 easily accessible to the customer1 and clearly marked as being for the purpose of collecting and recycling disposable carryout bags1 7,c7 recycles the disposable carryout bags collected pursuant to subparagraph 7,b71 7,d7 maintains for not less than #c years records 7which shall be available to the ,secretary7 describing the collection1 transport1 and recycling of disposable carryout bags collected1 7,e7 makes available to customers within the retail establishment reusable bags 7as defined in section #djef7;c77#b77 which may be purchased and used in lieu of using a disposable carryout bag1 and 7,f7 meets the definition of #djef7;d77#c74 7#b7 ,recycling program ,the term recycling program means a program that processes used materials or waste materials into new products to prevent waste of potentially useful materials2 reduce raw materials consumption2 reduce energy usage2 reduce air1 water1 or other pollution2 or reduce the need for disposal4 4 7c7 ,establishment of trust fund ,subchapter ,a of chapter #ih of such ,code 7relating to trust fund code7 is amended by adding at the end the following3 #ieab4 ,disposable carryout bag trust fund 7a7 ,creation of trust fund ,there is established in the ,treasury of the ,united ,states a trust fund to be known as the ,disposable carryout bag ,trust ,fund 7referred to in this section as the ,trust ,fund71 consisting of such amounts as may be appropriated or credited to the ,trust ,fund as provided in this section or section #ifjb7;b74 7b7 ,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 #djef4 7c7 ,expenditures from trust fund ,amounts in the ,trust ,fund shall be available1 as provided by appropriation ,acts1 for making payments under section #fdcc4 7d7 ,transfer to land and water conservation fund 7#a7 ,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 #aife amounts 7as determined by the ,secretary7 equivalent to the aggregate of the transactions on which tax is imposed under section #djef aggregate amounts determined on the basis of #j4jd4 7#b7 ,special rule regarding amounts transferred ,amounts transferred to the land and water conservation fund under paragraph 7#a7 shall not be taken into account for purposes of determining amounts to be appropriated or credited to the fund under section #b7;c7 of the ,land and ,water ,conservation ,fund ,act of #aife 7#af ,u4,s4,c4 #dfjl-#e7;c774 4 7d7 ,study ,not later than ,december #ca1 #bjae1 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 disposable carryout bags and encouraging recycling of such bags4 ,the report shall-- 7#a7 address measures that the ,comptroller ,general determines may increase the effectiveness of such provisions1 including the amount of tax imposed on each disposable carryout bag1 and 7#b7 any effects1 both positive and negative1 on any ,united ,states businesses4 ,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 ,senate4 7e7 ,clerical amendments 7#a7 ,the table of subchapters for chapter #ca of such ,code is amended by inserting after the item relating to adding at the end thereof the following new item3 ,subchapter ,d4 ,disposable carryout bags4 4 7#b7 ,the table of sections for subchapter ,b of chapter #fe of such ,code is amended by adding at the end the following new item3 ,sec4 #fdcc4 ,qualified disposable carryout bag recycling program4 4 7#c7 ,the table of sections for subchapter ,a of chapter #ih of such ,code is amended by adding at the end the following new item3 ,sec4 #ieab4 ,disposable carryout bag trust fund4 4 7f7 ,effective date ,the amendments made by this section shall take effect on ,january #a1 #bjad4