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Home My WebLink About10361 ORDINANCE NO. 10361 AN ORDINANCE AMENDING CHAPTER 3 OF TITLE VII OF THE PUEBLO MUNICIPAL CODE BY THE ADDITION OF A NEW ARTICLE IV RELATING TO THE CARRYOUT BAG FEES IMPOSED PURSUANT TO THE PLASTIC POLLUTION REDUCTION ACT, SECTION 25-17-501 ET SEQ., C.R.S., AND PROVIDING FOR THE ENFORCEMENT, COLLECTION, REMITTANCE, AND DISTRIBUTION OF SAID FEES BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: (brackets indicate matter being deleted, underscoring indicates new matter being added) SECTION 1. Chapter 3 of Title VII of the Pueblo Municipal Code is amended by the addition of a new Article IV to read as follows: ARTICLE IV – Plastic Pollution Reduction Act Section 7-3-46. – Definitions. The following definitions shall apply to words and phrases used in this Article: “Act” shall mean Plastic Pollution Reduction Act, §25-17-501 et seq. C.R.S., as amended. “Carryout Bag Fee” shall mean the fee imposed pursuant to Section 25-17-505, C.R.S., as amended. “Retail Food Establishment” shall have the same meaning as that term is defined in Section 25-17-503(9), C.R.S., as amended. “Store” shall have the same meaning as that term is defined in in Section 25-17- 503(14), C.R.S., as amended. Section 7-3-47. – Recordkeeping and audits. (a) Each Store required to collect and remit Carryout Bag Fees shall maintain accurate and complete records of such fees collected and the number of recycled paper or single-use carryout bags provided to customers, and shall also maintain such books, accounts, invoices, or other documentation necessary to verify the accuracy and completeness of such records. It shall be the duty of each Store to keep and preserve all such documents and records, including any electronic information, for a period of three (3) years from the end of the calendar year in which the documents or records were generated. In the event of an audit, investigation or other enforcement action, records and documents must be retained until three (3) years after notice of completion or resolution of such audit, investigation or enforcement action. (b) If requested, each Store shall make the foregoing records available for inspection and audit by the City during regular business hours so that the City may verify compliance with the provisions of this Article and the Act. To the extent permitted by law, all such records shall be treated as confidential commercial information. Section 7-3-48. – Payment to and administration of the Carryout Bag Fees by the City. (a) Each Store required to collect and remit Carryout Bag Fees pursuant to the Act shall remit the required portion of those fees to the City of Pueblo Finance Department, along with a form provided by the Director of the Finance Department for that purpose. (b) Any and all funds remitted to the Finance Department pursuant to subsection (a) of this section shall be credited and deposited into a special fund designated as the “Plastic Pollution Reduction Fund”, which shall be segregated from all other City funds. Said funds shall not be transferred therefrom to any other account of the City or used for any purpose except: (1) To pay for any administrative and enforcement costs incurred as a result of this Article or the Act; and (2) To pay for any recycling, composting, or other waste diversion programs and related outreach and education activities. (c) Any Store required to remit fees pursuant to the Act shall remit on a quarterly basis starting April 1, 2024, the total amount that is owed to the City in the previous quarter. The fees due to the City by the Store shall be due on the twentieth day of the month following the conclusion of each calendar quarter. With respect to fees collected in calendar year 2023, said fees shall be remitted to the City no later than April 20, 2024. (d) A Store need not remit Carryout Bag Fees collected in any quarter in which the collected fees total less than twenty dollars. The Store shall retain those collected fees until the store has more than twenty dollars worth of collected fees to remit and shall remit those fees as part of the next quarterly remittance. Section 7-3-49. – Director of Finance’s Authority. The Director of Finance shall have the authority to prepare and promulgate such rules, regulations, and forms necessary to carry out the provisions of this Article. Section 7-3-50. – Restriction and Prohibitions on Use. A Store or Retail Food Establishment located within the City shall comply with all restriction and prohibitions on use set forth within Sections 25-17-504 and 25-17-506 of the Act. Section 7-3-51. - Violations and penalties. It shall be unlawful and a Class 2 municipal offense for any Store or Retail Food Establishment to violate any of the provisions of this Article; provided, however, the City shall not enforce any violation of this Article or the Act against a Retail Food Establishment located within a school. Each retail sales transaction in which a violation of this Article is committed, regardless of whether multiple violations of this Article are committed in one retail sales transaction, constitutes a single violation of this Article. SECTION 2. The officers and staff of the City are authorized to perform any and all acts consistent with the intent of this Ordinance to implement the policies and procedures described herein. SECTION 3. This Ordinance shall become effective on the date of final action by the Mayor and City Council. Action by City Council: Introduced and initial adoption of Ordinance by City Council on December 12, 2022. Final adoption of Ordinance by City Council on December 27, 2022 . President of City Council Action by the Mayor: ☒ Approved on December 29, 2022 . □ Disapproved on based on the following objections: Mayor Action by City Council After Disapproval by the Mayor: □ Council did not act to override the Mayor's veto. □ Ordinance re-adopted on a vote of , on □ Council action on _______ failed to override the Mayor’s veto. President of City Council ATTEST Deputy City Clerk City Clerk's Office Item # R9 Background Paper for Proposed Ordinance COUNCIL MEETING DATE: December 12, 2022 TO: President Heather Graham and Members of City Council CC: Mayor Nicholas A. Gradisar VIA: Marisa Stoller, City Clerk FROM: James Wagner, Assistant City Attorney SUBJECT: AN ORDINANCE AMENDING CHAPTER 3 OF TITLE VII OF THE PUEBLO MUNICIPAL CODE BY THE ADDITION OF A NEW ARTICLE IV RELATING TO THE CARRYOUT BAG FEES IMPOSED PURSUANT TO THE PLASTIC POLLUTION REDUCTION ACT, SECTION 25-17-501 ET SEQ., C.R.S., AND PROVIDING FOR THE ENFORCEMENT, COLLECTION, REMITTANCE, AND DISTRIBUTION OF SAID FEES SUMMARY: Attached for consideration is a new Article IV of Chapter 3 of Title VII of the Pueblo Municipal Code that would provide for the collection, remittance, and distribution of the carryout bag fees collected pursuant to Sec. 25-17-501 et seq., C.R.S., as amended, as well as the penalty for failure to comply with the provisions of said Article. PREVIOUS COUNCIL ACTION: Not applicable to this Ordinance. BACKGROUND: On July 6, 2021, Governor Jared Polis signed into law the Plastic Pollution Reduction Act (HB21-1162). Beginning January 1st, 2023, certain retailers will be required to collect a $0.10 fee for every recycled paper or single-use plastic carryout bag provided to a customer for his or her use. According to the Act, sixty percent (60%) of the fee is required to be remitted to the municipality where the transaction occurred. The Act provides that the funds received by the municipality where the transaction occurred are to be separated from other funds and used for specific purposes related to the implementation of this legislation. The attached Ordinance addresses and provides for the method and manner of collection, remittance and use of such fees as well as providing penalties for violations thereof. FINANCIAL IMPLICATIONS: Not significant. It is anticipated that the effect of the Ordinance will provide for more orderly collection of the carryout bag fees and likely increase the amount of such fees received by the City. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Ordinance. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: The City Council can choose to not act, and the provisions contained in this Ordinance would not be applicable. As a result, there would be no clear legislation providing for the method and manner of collection, remittance and use of such fees nor any enforcement provisions all of which are authorized by the Plastic Pollution Reduction Act. RECOMMENDATION: The proposed Ordinance be passed and approved. ATTACHMENTS: None