A BILL TO BE ENTITLED
AN ACT to establish the "NC Managing Environmental Waste Act of 2019" to address the issue of single‑use plastics by, among other measures, increasing revenue distributed to cities and counties with programs to reduce plastic waste, establishing a pilot program to reduce the use of single‑use plastics at state‑operated food service facilities, and directing the environmental review Commission to study the issue of single‑use plastics.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑187.63 reads as rewritten:
"§ 105‑187.63.  Use of tax proceeds.
From the taxes received pursuant to this Article, the Secretary may retain the costs of collection, not to exceed two hundred twenty‑five thousand dollars ($225,000) a year, as reimbursement to the Department. The Secretary must credit or distribute taxes received pursuant to this Article, less the cost of collection, on a quarterly basis as follows:
(1)	Fifty percent (50%) to the Inactive Hazardous Sites Cleanup Fund established by G.S. 130A‑310.11.
(2)	Thirty‑two and one‑half percent (32.5%) to cities and counties in the State on a per capita basis, using the most recent annual estimate of population certified by the State Budget Officer. One‑half of this amount must be distributed to cities, and one‑half of this amount must be distributed to counties. For purposes of this distribution, the population of a county does not include the population of a city located in the county.
A city or county is excluded from the distribution under this subdivision if it does not provide solid waste management programs and services and is not responsible by contract for payment for these programs and services. The Department of Environmental Quality must provide the Secretary with a list of the cities and counties that are excluded under this subdivision. The list must be provided by May 15 of each year and applies to distributions made in the fiscal year that begins on July 1 of that year.
Funds distributed under this subdivision must be used by a city or county solely for solid waste management programs and services.
(2a)	Five percent (5%) to cities and counties in the State that provide plastics recycling services within their jurisdictions. Funds distributed to cities and counties pursuant to this subdivision shall be distributed on a per capita basis, using the most recent annual estimate of population certified by the State Budget Officer. One‑half of this amount must be distributed to cities eligible under this subdivision and one‑half of this amount must be distributed to counties eligible under this subdivision. For purposes of this distribution, the population of a county does not include the population of a city located in the county.
The Department of Environmental Quality must adopt a rule establishing the criteria for eligibility under this subdivision and must provide the Secretary with a list of the cities and counties that are eligible under this subdivision. The list must be provided by May 15 of each year and applies to distributions made in the fiscal year that begins on July 1 of that year.
Funds distributed under this subdivision must be used by a city or county solely for plastics recycling and single‑use plastics reduction programs and services, including for the procurement of alternatives to single‑use plastics for packaging and food service ware to be used by the city or county.
(3)	Twelve and one‑half percent (12.5%) to the General Fund."
SECTION 2.(a)  G.S. 143‑58.2 reads as rewritten:
"§ 143‑58.2.  State policy; bid procedures and specifications; identification of products.
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(d)	The Department of Administration, in cooperation with the Division of Environmental Assistance and Customer Service of the Department of Environmental Quality, shall identify materials and supplies with recycled content that meet appropriate standards for use by State departments, institutions, agencies, community colleges, and local school administrative units.
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(f)	On or before October 1 of each year, each State department, institution, agency, community college, and local school administrative unit authorized to purchase materials and supplies shall report to the Division of Environmental Assistance and Customer Service of the Department of Environmental Quality, the amounts and types of materials and supplies with recycled content that were purchased during the previous fiscal year and its progress toward reaching the goals under G.S. 143‑58.3. On or before December 1 of each year, the Division of Environmental Assistance and Customer Service shall prepare a summary of these reports and submit the summary to the Joint Legislative Commission on Governmental Operations. The summary of these reports shall also be included in the report required by G.S. 130A‑309.06(c).
(g)	The Department of Administration and the Department of Environmental Quality shall develop guidelines for minimum content standards for materials and supplies with recycled content and may recommend appropriate goals in addition to those goals set forth in G.S. 143‑58.3, for types of materials and supplies with recycled content to be purchased by the State.
(h)	The Secretary of Administration may adopt rules to implement the provisions of this section and G.S. 143‑58.3.
(i)	On or before October 1 of each year, each State department, institution, agency, community college, and local school administrative unit authorized to purchase materials and supplies shall report to the Division of Environmental Assistance and Customer Service of the Department of Environmental Quality the amounts and types of materials and supplies with recycled content that were purchased during the previous fiscal year and its progress toward reaching the goals under G.S. 143‑58.3. On or before December 1 of each year, the Division of Environmental Assistance and Customer Service shall prepare a summary of these reports and submit the summary to the Environmental Review Commission. The summary of these reports shall also be included in the report required by G.S. 130A‑309.06(c).
(j)	On or before October 1 of each year, each State department, institution, agency, community college, and local school administrative unit shall report to the Division of Environmental Assistance and Customer Service of the Department of Environmental Quality the amounts and types of materials collected for recycling within the department, institution, agency, community college, and local school administrative unit. On or before December 1 of each year, the Division of Environmental Assistance and Customer Service shall prepare a summary of these reports and submit the summary to the Environmental Review Commission. The summary of these reports shall also be included in the report required by G.S. 130A‑309.06(c)."
SECTION 2.(b)  G.S. 130A‑309.06(c) is amended by adding a new subdivision to read:
"(c)	The Department shall report to the Environmental Review Commission and the Fiscal Research Division on or before January 15 of each year on the status of solid waste management efforts in the State. The report shall include:
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(20)	A summary of the reports by each State department, institution, agency, community college, and local school administrative unit authorized to purchase materials and supplies detailing the amounts and types of materials and supplies with recycled content that were purchased during the previous fiscal year and the progress toward reaching the goals under G.S. 143‑58.3, as required by G.S. 143‑58.2(i)."
SECTION 3.  The Environmental Review Commission shall study the issue of single‑use plastics. In conducting this study, the Commission shall examine all of the following matters:
(1)	The environmental impacts of plastics pollution.
(2)	The State's current requirements for plastics recycling.
(3)	Estimates of the proportionate volume of plastics recycled versus plastics disposed of in landfills in the State.
(4)	Recycling markets and available information on the fate of plastics collected for recycling in the State, including data on plastics used as feedstock for in‑State recycling, and national and international markets.
(5)	Pending and enacted legislation in other states to regulate single‑use plastics, including bans on single‑use plastic packaging and food service ware.
(6)	Current private sector initiatives to reduce plastics pollution and additional financial and market tools that may be employed by private sector interests for this purpose.
(7)	Alternatives to use of single‑use plastics for packaging and food service ware.
(8)	Any other issue the Commission deems relevant.
In conducting the study, the Commission shall consult with stakeholders, including the Department of Environmental Quality, the Department of Health and Human Services, the Department of Administration, representatives of the environmental community, the North Carolina Retail Merchants Association, and the North Carolina Beverage Association. The Environmental Review Commission shall report its findings and recommendations, including any legislative proposals, to the 2020 Regular Session of the 2019 General Assembly upon its convening.
SECTION 4.(a)  The Legislative Services Officer shall evaluate all opportunities to reduce the use of single‑use plastics in food establishments operated by the General Assembly and implement such measures at the earliest date that (i) does not result in disposal, prior to use, of single‑use plastics already procured on the date this act becomes law and (ii) does not impair contracts for purchase of such food service ware in effect on the date this act becomes law. The Legislative Services Officer shall issue a preliminary report on implementation of the requirements of this section to the Environmental Review Commission no later than September 1, 2019, and shall provide a final report to the Commission no later than March 1, 2020.
SECTION 4.(b)  The Department of Administration shall implement a pilot program to eliminate the sale or provision of food or beverages for consumption on or off the premises, in or with single‑use plastics at State agencies or agencies of a political subdivision of the State that is using State funds. In implementing this pilot, the Department shall identify five food service establishments operated by State agencies to implement measures to eliminate single‑use plastics at the earliest possible date that (i) does not result in disposal, prior to use, of single‑use plastics already procured by the agency on the date this act becomes law and (ii) does not impair contracts for purchase of such food service ware in effect on the date this act becomes law. The Department shall issue a preliminary report on implementation of the requirements of this section to the Environmental Review Commission no later than September 1, 2019, and shall provide a final report to the Commission no later than March 1, 2020.
SECTION 5.  For purposes of Sections 3 and 4 of this act, the term "single‑use plastics" means non‑recyclable and noncompostable single‑use disposable products food service ware used by a food provider for serving or transporting prepared, ready‑to‑consume food or beverages including plastic or polystyrene plates, cups, bowls, trays, utensils, straws, cup lids, and hinged or lidded containers.
SECTION 6.  The Department of Environmental Quality shall adopt rules to implement G.S. 105‑187.63(2a), as enacted by Section 1 of this act.
SECTION 7.  Section 1 of this act becomes effective July 1, 2020. The remainder of this act is effective when it becomes law.