SB3423 - Carryout Bag Fee Act Summary

• Imposes a $0.10 fee on each carryout bag at retail establishments in Illinois, except in municipalities with populations over 1,000,000, with the retail establishment retaining $0.03 and $0.07 distributed to state funds and local governments.

• Requires retailers to separately itemize the carryout bag fee on customer receipts and prohibits retailers from absorbing the fee cost.

• Directs county and municipal revenue from the fee toward household hazardous waste collection, recycling and composting programs, and waste management infrastructure, with at least 25% used for hazardous waste collection.

• Exempts carryout bags used for items purchased through the Supplemental Nutrition Assistance Program or similar governmental food assistance programs from the fee.

• Prohibits counties and municipalities from banning or independently regulating carryout bags, with exceptions for municipalities over 1,000,000 in population and jurisdictions that had carryout bag fees in effect on May 1, 2020; the act automatically repeals on January 1, 2026.