<?xml version='1.0' encoding='utf-8'?>
<baltimore-city-law heading="Subtitle 32 – Checkout Bag Surcharge">
  <section prefix="§" num="32-1" heading="Definitions.">
    <para num="(a)" heading="In general.">In this subtitle, the following terms have the meanings indicated.</para>
    <para num="(b)" heading="Dealer.">“Dealer” has the meaning stated in City Code &lt;cite data-path="|7|§62-1|(b)"&gt;Article 7, § 62-1(b) {“Definitions: Dealer”}&lt;/cite&gt;.</para>
    <para num="(c)" heading="Director.">“Director” means the Director of the Department of Finance or the Director’s designee.</para>
    <para num="(d)" heading="Checkout bag.">
      <para num="(1)" heading="In general.">“Checkout bag” means any paper or plastic bag supplied by a dealer to a customer at the point of sale, pickup, or delivery to carry purchased items.</para>
      <para num="(2)" heading="Inclusions.">“Checkout bag” includes a compostable plastic bag that meets the standards described in City Code &lt;cite data-path="|7|§62-1|(c)|(2)"&gt;Article 7, § 62-1(c)(2) {“Definitions: Plastic checkout bag”}&lt;/cite&gt;.</para>
      <para num="(3)" heading="Exclusions.">“Checkout bag” does not include:<para num="(i)">a bag solely used to contain:<para num="(A)">fresh fish and fresh fish products;</para>
          <para num="(B)">fresh meat and fresh meat products;</para>
          <para num="(C)">fresh poultry and fresh poultry products;</para>
          <para num="(D)">otherwise unpackaged fruits, nuts, or vegetables;</para>
          <para num="(E)">otherwise unpackaged confectionery;</para>
          <para num="(F)">otherwise unpackaged fresh cheese;</para>
          <para num="(G)">otherwise unpackaged baked goods;</para>
          <para num="(H)">ice;</para>
          <para num="(I)">food and goods obtained at a farmers’ market;</para>
          <para num="(J)">prescription drugs obtained from a pharmacy;</para>
          <para num="(K)">newspapers; or</para>
          <para num="(L)">dry-cleaned goods; or</para>
        </para>
        <para num="(ii)">a “plastic checkout bag” described in City Code, &lt;cite data-path="|7|§62-1|(c)|(1)"&gt;Article 7, § 62-1(c)(1) {“Definitions: Plastic checkout bag”}&lt;/cite&gt;.</para>
      </para>
    </para>
    <annotation type="History">Ord. 20-337</annotation>
    <annotation type="History">Ord. 22-125</annotation>
  </section>
  <section prefix="§" num="32-2" reserved="true" />
  <section prefix="§" num="32-3" heading="Surcharge imposed.">
    <para num="(a)" heading="In general.">A surcharge is imposed on every checkout bag supplied by a dealer to a customer.</para>
    <para num="(b)" heading="Amount of surcharge.">The amount of the surcharge is 5 cents for each bag.</para>
    <para num="(c)" heading="No effect on dealer’s own imposition.">Nothing in this section limits the ability of a dealer to impose a separate purchase or service fee for a checkout bag provided to a customer.</para>
    <annotation type="History">Ord. 20-337</annotation>
  </section>
  <section prefix="§" num="32-4" heading="Collection and remittance.">
    <para num="(a)" heading="Dealer to collect.">
      <para num="(1)">The dealer must collect the surcharge imposed by this subtitle from the customer to whom the checkout bag is supplied.</para>
      <para num="(2)">The amount of the surcharge must be itemized on any receipt, invoice, or like document issued to the customer.</para>
    </para>
    <para num="(b)" heading="Remittance to Director.">
      <para num="(1)">Except as specifically authorized in paragraph (2) of this subsection, the surcharge imposed by this subtitle must be remitted to the Director on or before the 25th day of the month following the month in which the transaction occurred.</para>
      <para num="(2)">To cover the administrative expense of collecting and remitting the surcharge to the Director, the dealer may retain 4 cents from each 5-cent surcharge collected under this subtitle.</para>
    </para>
    <para num="(c)" heading="Remittance reports.">
      <para num="(1)">Each remittance must be accompanied by a report for the month of all transactions that involved checkout bags subject to the surcharge.</para>
      <para num="(2)">The report must:<para num="(i)">be in the form and contain the information that the Director requires; and</para>
        <para num="(ii)">include:<para num="(A)">the number of checkout bags supplied or provided to customers;</para>
          <para num="(B)">the aggregate amount of the surcharge required by this subtitle to be collected; and</para>
          <para num="(C)">any other information that the Director requires to assure that the proper surcharge has been remitted.</para>
        </para>
      </para>
    </para>
    <annotation type="History">Ord. 20-337</annotation>
  </section>
  <section prefix="§" num="32-5" reserved="true" />
  <section prefix="§" num="32-6" heading="Interest and civil penalties.">
    <para num="(a)" heading="Failure to remit surcharge.">If a person fails to remit the surcharge imposed by this subtitle when due, the person must pay the Director, in addition to the surcharge due:<para num="(1)">interest at the rate of 1% for each month or fraction of a month that the surcharge is overdue; and</para>
      <para num="(2)">a penalty of 10% of the amount of the surcharge due.</para>
    </para>
    <para num="(b)" heading="Failure to file reports; maintain records.">If a person fails to submit the remittance reports or fails to keep suitable records as required by &lt;cite data-path="|28|§32-4"&gt;§ 32-4 of this subtitle&lt;/cite&gt;, the person must pay the Director, in addition to the surcharge, a penalty of $1,000 for each month that reports are not submitted or for each month that suitable records are not kept.</para>
    <annotation type="History">Ord. 20-337</annotation>
  </section>
  <section prefix="§" num="32-7" reserved="true" />
  <section prefix="§" num="32-8" heading="Rules and regulations.">
    <text>Subject to Title 4 {“Administrative Procedure Act – Regulations”} of the &lt;cite data-path="|general"&gt;City General Provisions Article&lt;/cite&gt;, the Director must adopt rules and regulations to carry out this subtitle.</text>
    <annotation type="History">Ord. 20-337</annotation>
    <annotation type="History">Text Conformed 02/25/21</annotation>
    <annotation type="Editor's Notes">By authority of Ordinance 20-431, Section 5, the Director of Legislative Reference, in consultation with the Law Department, has conformed this section to refer expressly to and reflect the requirements of the recently-enacted Administrative Procedure Act that, effective January 15, 2021, governs the proposal, adoption, and publication of administrative rules and regulations.</annotation>
  </section>
  <section prefix="§" num="32-9" reserved="true" />
  <section prefix="§" num="32-10" heading="Prohibited conduct.">
    <text>A person may not:</text>
    <para num="(1)">fail, neglect, or refuse to collect or remit the surcharge imposed by this subtitle;</para>
    <para num="(2)">make any incomplete, false, or fraudulent return;</para>
    <para num="(3)">fail to keep complete and accurate records;</para>
    <para num="(4)">refuse to permit the Finance Director or the Director’s authorized agent, employee, or representative to inspect and audit the operator’s records; or</para>
    <para num="(5)">fail to fully comply with any provision of this subtitle or of any rule or regulation adopted under this subtitle.</para>
    <annotation type="History">Ord. 20-337</annotation>
  </section>
  <section prefix="§" num="32-11" heading="Criminal penalties.">
    <text>Any person who violates any provision of this subtitle or of a rule or regulation adopted under this subtitle is guilty of a misdemeanor and, on conviction, is subject to a fine of not more than $1,000 or to imprisonment for not more than 6 months or to both fine and imprisonment for each offense.</text>
    <annotation type="History">Ord. 20-337</annotation>
  </section>
</baltimore-city-law>
