HOUSE ENERGY, ENVIRONMENT AND NATURAL RESOURCES

COMMITTEE SUBSTITUTE FOR

HOUSE BILL 392

57th legislature - STATE OF NEW MEXICO - first session, 2025

 

 

 

 

 

 

 

AN ACT

RELATING TO THE ENVIRONMENT; ENACTING THE SINGLE-USE PLASTIC BAG ACT; PROHIBITING RETAIL ESTABLISHMENTS FROM MAKING OR DELIVERING GOODS USING SINGLE-USE PLASTIC BAGS; CREATING EXCEPTIONS; PROVIDING PENALTIES.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. A new section of Chapter 74 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] SHORT TITLE.--This act may be cited as the "Single-Use Plastic Bag Act"."

     SECTION 2. A new section of Chapter 74 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] DEFINITIONS.--As used in the Single-Use Plastic Bag Act:

          A. "carryout bag" means a bag that is furnished to a customer at a retail establishment at the point of sale for use by the customer to transport or carry purchased items;

          B. "department" means the department of environment;

          C. "plastic" means a synthetic material made from linking monomers through a chemical reaction to create a polymer chain that can be molded or extruded at high heat into various solid forms, including material derived from petroleum or a biologically based polymer such as corn or other plant sources;

          D. "recyclable cardboard box" means a box made of non-coated cardboard, corrugated paper or paper;

          E. "recycled content paper bag" means a paper carryout bag that contains a minimum of forty percent post-consumer recycled content and is one hundred percent recyclable;

          F. "retail establishment" means a retail business that sells merchandise or dry goods to consumers or is a goods or service delivery provider;

          G. "reusable carryout bag" means a carryout bag that is designed and manufactured for multiple uses, has stitched handles and is made of cloth, fiber, polypropylene or recycled-content polyethylene terephthalate; and

          H. "single-use plastic bag" means a carryout bag that is provided to a customer at a point of sale for the purpose of transporting groceries, food or other goods that is made predominantly of plastic derived from natural gas, petroleum or a biologically based source, such as corn or other plant sources, and is not specifically designed for or manufactured for multiple uses."

     SECTION 3. A new section of Chapter 74 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] PROHIBITIONS ON THE USE OF SINGLE-USE PLASTIC BAGS--EXCEPTIONS.--

          A. A retail establishment shall not provide a single-use plastic bag or other bag or box that is not a reusable carryout bag, recycled content paper bag or recyclable cardboard box to carry groceries, food or other goods from the point of sale in a retail establishment.

          B. This section does not apply to single-use plastic bags:

                (1) provided to customers for use with loose or bulk products, produce, meat or fish or when provided for separating items to avoid contamination or prevent damage from moisture or for sanitary, public health or environmental protection purposes;

                (2) provided for prepared takeout food with a potential for leakage, as determined by the retail establishment, that is not intended for consumption on the retail establishment's premises;

                (3) provided by pharmacists or veterinarians to contain prescription drugs or medical necessities;

                (4) provided by laundries or dry cleaning establishments;

                (5) used to transport or contain live animals;

                (6) used to transport chemical pesticides or drain-cleaning or other toxic chemicals sold at retail establishments;

                (7) used to protect newspapers from inclement weather;

                (8) distributed by manufacturers for packaging or preparing goods for display prior to sale; or

                (9) that are similar to those exempted by this subsection, as determined by the department."

     SECTION 4. A new section of Chapter 74 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] DEPARTMENT RULES.--The department may promulgate rules for the implementation of the provisions of the Single-Use Plastic Bag Act."

     SECTION 5. A new section of Chapter 74 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] RECYCLED CONTENT PAPER BAGS ALLOWED--FEE--DISPOSITION OF MONEY.--

          A. A retail establishment may provide a customer with one or more recycled content paper bags at the point of sale only if the customer pays a carryout bag fee of not less than ten cents ($.10) per recycled content paper bag or a higher fee if a municipality or county in which the retail establishment is located raises the fee by ordinance, except that retail establishments shall not collect the fee from a person with a voucher or electronic benefits card issued under the women, infants and children program, the emergency food assistance program, the temporary assistance for needy families program or the federal supplemental nutrition assistance program.

          B. Retail establishments shall indicate on the customer transaction receipt the number of recycled content paper bags provided.

          C. Retail establishments shall not refund the customer any portion of the fee, either directly or indirectly, or advertise or otherwise convey to customers that a portion of the fee will be refunded.

          D. A retail establishment shall collect a fee per recycled content paper bag provided to a customer. The retail establishment may retain three cents ($.03) of the fee collected per recycled content paper bag. The retail establishment shall:

                (1) for a retail establishment in a municipality that has implemented an ordinance to assess and collect the fee, transmit the balance of the fee to the municipality in which the retail establishment is located or, if not located in a municipality, the county in which the retail establishment is located; and

                (2) for a retail establishment in a municipality that has not implemented an ordinance to assess and collect the fee, transmit the balance of the fee to the department.

          E. All fees transmitted to a municipality or county shall be used for waste and litter reduction programs.

          F. A retail establishment shall, on a quarterly basis starting January 1, 2026, remit from the total amount of recycled content paper bag fees collected in the previous quarter the amount that is owed to the municipality or county within which the retail establishment is located or to the department. A retail establishment need not remit recycled content paper bag fees collected in any quarter in which the collected fees total less than twenty dollars ($20.00). The retail establishment shall retain those collected fees until the retail establishment has more than twenty dollars ($20.00) of collected fees to remit and shall remit those fees as part of the next quarterly remittance."

     SECTION 6. A new section of Chapter 74 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] ENFORCEMENT--COMPLIANCE ORDERS--PENALTIES.--

          A. Except as provided in Section 7 of the Single-Use Plastic Bag Act, a municipality or county may enforce a violation of the Single-Use Plastic Bag Act against a retail establishment that is located within the boundaries of the municipality or county in the manner that the municipality or county chooses.

          B. A municipality or county that chooses to enforce a violation of the Single-Use Plastic Bag Act against a retail establishment may seek injunctive relief against the retail establishment or may assess civil penalties, or both. The county or municipality may assess penalties of up to:

                (1) five hundred dollars ($500) per day for a second violation; or

                (2) one thousand dollars ($1,000) per day for a third or subsequent violation.

          C. A municipality or county may enforce but shall not assess a civil penalty for the first violation of the Single-Use Plastic Bag Act.

          D. The department may enforce a violation of the Single-Use Plastic Bag Act against the owner or operator of a retail establishment if the municipality or county fails to do so."

     SECTION 7. A new section of Chapter 74 NMSA 1978 is enacted to read:

     "[NEW MATERIAL] MUNICIPALITY OR COUNTY REGULATION--PREEMPTION.--

          A. A municipality or county may enact, implement or enforce any ordinance that is as stringent as or more stringent than the Single-Use Plastic Bag Act.

          B. Beginning January 1, 2026, the department may administer and enforce the Single-Use Plastic Bag Act. Fees and civil penalties collected by the department shall be deposited in the recycling and illegal dumping fund."

     SECTION 8. EFFECTIVE DATE.--The effective date of the provisions of this act is January 1, 2026.

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