ORDINANCE NO.2 SERIES OF 2023  AN ORDINANCE OF THE TOWN OF CARBONDALE, COLORADO AMENDING ARTICLE 7 OF CHAPTER 7 OF THE CARBONDALE REVISED MUNICIPAL CODE REGARDING CARRYOUT BAG  REGULATIONS.  WHEREAS, the Carbondale Board ofTrustees adopted Ordinance No. 12, Series of2011 ("the 2012 Bag Ordinance") which banned the use of plastic bags at grocers larger than 3,500  square feet and imposed a fee on single-use bags beginning May 1,2012; and bags have dramatically reduced the use of disposable bags in Carbondale; and  WHEREAS, the 2012 Bag Ordinance and efforts to educate the public and supply reusable WHEREAS, pursuant to HB 21-1162, the State of Colorado legislature recently adopted a statewide single-use carryout bag ban and feet that are similar to Carbondale's, but which law contains  differences in definitions, timing, and certain other requirements; and ordinances are more stringent than the state's bag requirements; and  WHEREAS, pursuant to the new state law, the Town retains authority to implement WHEREAS, the Town wishes to maintain in place its plastic bag ban and fees which apply to large markets for the remainder of 2023, and thereafter integrate the Town's ordinance with the  new state law; and  WHEREAS, the Town does not wish to impose local sales tax on retail delivery fees and carryout bag fees enacted by the Town or the State of Colorado that would otherwise be taxable  under the Code; and sales and use tax; and  WHEREAS, the Town adopts this ordinance with the intent to exempt suchi fees from local WHEREAS, the Board of Trustees finds that further limiting the use of disposable carryout bags in coordination with Colorado state laws will mitigate the harmful effects of such materials on  our natural environment.  NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF TRUSTEES OF SECTION 1. Article 7 of Chapter 7 oft the Town of Carbondale Revised Municipal Code shall be  CARBONDALE, COLORADO:  repealed and replaced in its entirety, to read as follows:    Town ofCarbondale Ordinance No. 2-2023  Page Z  ARTICLE7.-1 Disposable Carryout Bag Regulations  Sec. 7-7-10 - Definitions.  (a) The Town adopts and incorporates by reference the definitions contained in the Plastic Pollution Reduction Act, C.R.S. $25-17-503, as such may be amended from time to time. (b) For the time period extending from January 1,2023 through December 31, 2023, the Town shall apply the ban and fee on disposable carryout bags set forth below in Sec. 7-7- The term "grocer" means a retail establishment or business located within Carbondale Town Limits in aj permanent building, operating year-round, that is a full line, self-service market and which sells al line of staple foodstuffs, meats, produce, household supplies,  20 to "grocers" as defined below:  dairy products or other perishable items. Grocer does not mean:  (I)Atemporary vending establishment for fruits, vegetables, packaged meats and (3). A location where food items are: not the majority of sales for that business; or (4) A location where the facility is less than Three Thousand Five Hundred  dairy;  (2). A Vendor at farmer's markets or other temporary events;  (3,500) square feet.  This definition of"grocer" shall sunset and be ofno further force and effect after. January  1,2024, after which time Section 7-7-20(b) ofthis Code shall control. Sec. 7-7-20. - Fees and Prohibitions on single-use carryout bags.  (a) Prior to January 1, 2024, the Town shall retain its plastic bag regulation of grocers in  the following manner:  (1)No grocer shall provide a disposable plastic bag to a customer at the point of (2) A grocer may provide a customer with one or more recycled paper carryout bags at the point of sale only if the customer pays a carryout bag fee oftwenty cents per recycled paper carryout bag. For each carryout bag fee collected  sale.  pursuant to this subsection 7-7-20(a), the grocer shall:  (I) Remit 60% oft the first ten cents of the fee and 100% of the remaining ten cent fee (for clarity, 80% oft the total 20 cent fee) to the Town and the  Town shall use the remitted fee to pay:  (A). Its administrative and enforcement costs incurred as a result of (B) For any recycling, composting, or other waste diversion programs and related outreach and education activities.  this section; and    Town ofCarbondale Ordinance. No. 2-2023  Page 3  (II) Retain 40% of the first ten cents oft the fee (for clarity, 20% of the total 20 cent fee) which portion oft the fee does not count as revenue for the (II) Any grocer may choose to voluntarily remit 100% oft the 20 cent fee to (3) The carryout bag fee set forth in subsection (a)(2) of this section does not apply to a customer that provides evidence to the store that the customeri isa (4)This subsection 7-7-20 (a) shall sunset and be ofno further force and effect after December 31, 2023, after which time sub-section 7-7-20(b) oft this Code  purpose of calculating sales tax.  the Town.  participant in a federal or state food assistance program.  shall control.  (b) Prior to January 1,2024, a store, including a small store, as defined under the state law (with the exception of grocers regulated above in sub-section 7-7-20(a) while that sub-section remains in effect) may provide a customer with one or more disposable plastic bags or recycled paper carryout bags at the point of sale only if the customer pays ac carryout bag fee oftwenty cents per disposable plastic bag or recycled paper carryout bag. On and after January 1,2024, no store, including a small store, as defined under the state law, shall provide a disposable plastic bag to a customer at the point of sale. For each carryout bag fee collected pursuant to this subsection (b), a store, including a  small store, shall:  (1) Remit 60% of the first ten cents oft the fee and 100% oft the remaining ten cent fee (for clarity, 80% oft the total 20 cent fee) to the Town and the Town shall use (A) Its administrative and enforcement costs incurred as a result of this (B) For any recycling, composting, or other waste diversion programs and (2) Retain 40% of the first ten cents oft the fee (for clarity, 20% oft the total 20 cent fee) which portion of the fee does not count as revenue for the purpose of (3) Any store, including small store, may choose to voluntarily remit 100% oft the (4) The carryout bag fee set forth in this subsection (b) does not apply toa customer that provides evidence to the store that the customer is a participant ina  the remitted fee to pay: section; and  related outreach and education activities.  calculating sales tax. 20 cent fee to the Town.  federal or state food assistance program.  (c) A retail food establishment need not comply with this Article ift the retail food  establishment:  (1) Prepares or serves food in individual portions for immediate on- or off-  premises consumption; and  (2) Is not a grocery store or convenience store.    Town ofCarbondale Ordinance No. 2-2023  Page 4  Sec. 7-7-30.-1 Provision of carryout and reusable bags.  (a) In providing carryout bags for a fee pursuant under this Article, a grocer, store, or  small store shall:  (1)Fore each customer provided a carryout bag for a fee, provide on the customer's transaction receipt a record of the number of carryout bags provided as part ofthe transaction and the total amount of fees charged for the carryout bags provided, (2) Not refund to the customer any portion of the carryout bag fee, either directly ori indirectly, or advertise or otherwise convey to customers that any portion of the (3)Conspicuously display a sign in a location inside or outside the store, which (4) Beginning on April 20, 2023 for the first quarter of 2023, ai market, grocer, store, or small store shall pay to the Town's Finance Department on a quarterly basis the total amount of carryout bag fees collected in the previous quarter. The Town shall provide the necessary forms for markets, grocers, stores or small stores to file individual returns with the Town, separate from the required Town sales tax forms, to demonstrate compliance with the provisions of this Article. Upon the approval ofthe Finance Director, a grocer, market, store or small store whose quarterly bag fees due to the Town are less than $30.00 may file and pay  itemized by type of carryout bag; carryout bag fee will be refunded;  sign alerts customers about the carryout bag fee; and  these fees annually instead of quarterly.  (b) Nothing in this section shall preclude persons, markets, grocers, stores, or small stores from making reusable bags available for sale or for no cost to customers.  Sec. 7-7-40.- - Audits and violations.  (a) Each market, grocer, store, or small store shall maintain accurate and complete records of the carryout bag fees collected, the number of carryout bags provided to customers, the form and recipients of any notice required pursuant to this chapter, and any underlying records, including any books, accounts, invoices, or other records necessary to verify the accuracy and completeness of such records. It shall be the duty of each market, grocer, store, or small store to keep and preserve all such documents and records, including any electronic information, for a period of three (3), years from the end (b) Ifrequested, each market, grocer, store, or small store shall make its records available for audit by the Town Manager during regular business hours in order for the Town to verify compliance with the provisions of this Article. All such information shall be  oft the calendar year ofs such records.  treated as confidential commercial documents.    Town ofCarbondale Ordinance No. 2-2023  Page. 5  (c) Violation of any oft the requirements oft this Article shall subject a market, grocer,  store, or small store to the penalties set forth in this section.  (1)Ifiti is determined that a violation has occurred, the Town of Carbondale shall issue a warning notice to the market, store, or small store for the initial violation. (2) Ifiti is determined that an additional violation of this chapter has occurred within one year after a warning notice has been issued for an initial violation, the Town of Carbondale shall issue ai notice ofinfraction and shall impose a penalty (3) The penalty for each violation that occurs after the issuance of the warning  against the market, store, or small store. notice shall be no more than:  (A) Fifty dollars ($50.00) for the first offense; (B) One hundred dollars ($100.00) for the second offense; (C) For the third and all subsequent offenses there shall be a mandatory court appearance and such penalty as may be determined by the court. (4) No more than one (1) penalty shall be imposed upon a market, store, or small (5) A market, store, or small store shall have fifteen (15) calendar days after the (6) The penalty shall double after fifteen (15) calendars days ifthe market, store, or small store does not pay the penalty; or fails to respond to a notice ofinfraction by either denying or objecting in writing to the infraction or penalty. (d)Ifpayment of any amounts of the carryout bag fee to the Town is not received on or before the applicable due date, penalty and interest charges shall be added to the amount  store within a seven (7) calendar day period.  date that a notice ofinfraction is issued to pay the penalty.  due in the amount of:  (1)A$10.00 late fee.  (2). A penalty oft ten (10) percent of total due.  (3) Interest charge of one and one half(1.5) percent oftotal penalty per month. SECTION:2. The Board of Trustees hereby finds, determines, and declares that this ordinance is necessary for the immediate preservation of the public peace, health and safety. SECTION3. This Ordinance shall take effect on April 1, 2023 after posting and  publication in accordance with the Carbondale Home Rule Charter.    Town of Carbondale Ordinance No. 2-2023  Page 6  SECTION 4. All ordinances heretofore passed and adopted by the Board of Trustees of Carbondale, Colorado, are hereby repealed to the extent that said ordinances, or parts thereof, are  inc conflict herewith. to.  INTRODUCED, READ AND PASSED this 14th day of February, 2023 by a vote of 7  THE TOWN OF CARBONDALE BB4  TTES  1  -  OF  SEAL COLORADO  Cathy Derby, Town Clerk  20716214_v1