The URL can be used to link to this page

Home My WebLink AboutAgenda Item - 2020-01-07 - Number 8.4 - Compliance with State Plastic Bag Laws 8.4 COUNCIL REPORT 1.6 10:911Ar oj EGG� Subject: Update to Chapter 26 of the Lake Oswego Code to Comply with HB 2509 (2019) Sustainable Shopping Initiative Meeting Date: January 7, 2020 Staff Member: Jenny Slepian Department: City Manager's Office Action Required Advisory Board/Commission Recommendation ❑ Motion ❑ Approval ❑ Public Hearing ❑ Denial ❑ Ordinance ❑ None Forwarded ❑ Resolution ❑ Not Applicable ❑ Information Only Comments: ❑Z Council Direction ❑ Consent Agenda Staff Recommendation: Direct staff to prepare and present an ordinance amending LOC Chapter 26 to contain identical definitions, requirements, and restrictions of HB 2509 and reducing bag fee to 5 cents from 10 cents. Recommended Language for Motion: Move to direct staff to prepare and present an ordinance amending LOC Chapter 26 to contain identical definitions, requirements, and restrictions of HB 2509 and reducing the bag fee to 5 cents from 10 cents. Project/ Issue Relates To: ❑Council Goals/Priorities ❑Adopted Master Plan(s) ElNot Applicable BACKGROUND On December 24, 2018, the City Council adopted Ordinance 2806 adding Chapter 26 to the Lake Oswego Code prohibiting the distribution of single use plastic bags. LOC Chapter 26 established a mandatory minimum fee of 10 cents for paper bags to be charged by retailers larger than 10,000 square feet as of July 1, 2019. The ordinance was intended to go into effect for all retailers and restaurants on January 1, 2020, with the bag fee optional but permitted for 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city Page 2 retailers and restaurants smaller than 10,000 square feet. Currently, there are 7 retailers in Lake Oswego charging 10 cents for paper bags. In its 2019 session, the Oregon Legislature passed HB 2509, the Sustainable Shopping Initiative. HB 2509 generally preempts any existing local checkout bag policy. However, local governments have the discretion to: • Adopt a fee greater than the minimum 5 cent fee required by HB 2509; and • Impose a penalty other than the penalty established in HB 2509. Local governments are prohibited from enforcing definitions, requirements, or restrictions that differ from HB 2509. Lake Oswego's Chapter 2806 contains several definitions that vary from the new state law. DISCUSSION The Lake Oswego City Council has three options to comply with HB 2509: 1. Repeal LOC Chapter 26. This would remove plastic bag provisions from the City Code. 2. Amend LOC Chapter 26 to include identical definitions, restrictions, and requirements as HB 2509 while maintaining the 10 cent bag fee. 3. Amend LOC Chapter 26 to include identical definitions, restrictions, and requirements as HB 2509 and reduce the bag fee to 5 cents. This would keep plastic bag provisions in the City Code. Options 1 and 3 and functionally similar, and should the City Council determine that a 10 cent bag fee is not in the interest of the Lake Oswego community, then Option 3 is recommended by staff to maintain some control over fines and enforcement. If the 10 cent fee is found by the City Council to be in the best interest of the Lake Oswego community, then Option 2 is recommended by staff as would be required under HB 2509. Ordinance 2806 vs HB 2509 Lake Oswego Code Chapter 26 differs from HB 2509 in a few key ways. Many of these changes are now required for the City to adopt. The table below illustrates the key differences. LOC Chapter 26 HB 2509 Bag Fee 10 cents required for retailers 5 cents required for all retailers. greater than 10,000 square feet. For restaurants, only applies to Optional for smaller retailers reusable plastic bags. and restaurants. Plastic Bags allowed as No. Yes, if thicker than 4 mils. "reusable" Restaurants included Yes, but not required to charge Yes, and required to charge a a fee for paper bags. fee for thicker plastic bags. 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city Page 3 Fabric Bag Restriction None A retailer may only give out free reusable fabric bags as a promotion, no more than 12 days per year Fee Retention Business keeps fee Business keeps fee Lake Oswego is impacted by Section 3 of HB 2509, which states that a local government: • May amend a local provision that was in effect so the local provision establishes definitions, requirements, and restrictions that are identical to the definitions, requirements, and restrictions of HB 2509 • May adopt, amend, or enforce a local provision to impose a penalty other than the penalty established by HB 2509 • May not enforce a local provision that establishes definitions, requirements, or restrictions not identical to HB 2509 • May enforce a local provision to require a retailer or restaurant to charge a fee of more than five cents Currently, Lake Oswego is one of two cities charging 10 cents for paper bags. Ashland is the other remaining city and they have no current plans to lower their fee. Oregon cities with plastic bag ordinances adopted prior to HB 2509 have responded to the new law as follows: Ashland No current plan to change other than what is required by the state. Will keep 10 cent fee. Bend Repealed Ordinance Corvallis Repealed Ordinance Eugene Amended to Comply Hillsboro Will Amend to Comply McMinnville Amended to Comply Milwaukie Likely to repeal Newport Repealed Ordinance Portland Amended to Comply Salem Repealed Ordinance *Forest Grove, Hood River, and Silverton did not have information available The majority of the businesses in Lake Oswego currently charging 10 cents for a bag have other branches outside of the city. A few have expressed that it is challenging from an accounting standpoint to have most stores charging 5 cents while their Lake Oswego store charges 10 cents for a bag. However, Lake Oswego customers are now accustomed to paying 10 cents per bag and the City Council opted for a 10 cent fee to both encourage behavior change and help retailers recover their costs from switching from cheaper plastic bags to more expensive paper bags. 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city Page 4 Regardless, to be consistent with what is now state law, staff recommend amending Ordinance 2806 to comply with HB 2509 and dropping the bag fee to 5 cents. FISCAL IMPACT None RECOMMENDATION Direct staff to prepare and present an ordinance amending LOC Chapter 26 to include identical language to HB 2509 and reducing the bag fee from 10 cents to 5 cents. 503.635.0215 380 A Avenue PO BOX 369 Lake Oswego, OR 97034 www.lakeoswego.city