PLASTIC RETAIL BAG MANUFACTURERS AND RECYCLERS FILE LAWSUIT AGAINST CITY OF DALLAS

FOR IMMEDIATE RELEASE

May 1, 2015

PLASTIC RETAIL BAG MANUFACTURERS AND RECYCLERS FILE LAWSUIT AGAINST CITY OF DALLAS
CITY’S ORDINANCE REGULATING GROCERY BAGS VIOLATES TEXAS CONSTITUTION

DALLAS, TEXAS – Today, a coalition of plastic retail bag manufacturers and recyclers filed suit in the District Court of Dallas arguing that Ordinance 29307 [Single-Use Carryout Bag] violates the Texas Solid Waste Disposal Act and should be invalidated.

The plaintiffs, which include Hilex Poly (“Hilex”), Superbag Operating, Ltd. (“Superbag”), the Inteplast Group, Ltd. (“Inteplast”), and Advance Polybag, Inc. (“API”) claim that Ordinance 29307 violates the Texas Solid Waste Disposal Act, which explicitly prohibits a city from imposing “a fee or deposit on the sale or use of a container or package” and expressly forbids a city from enacting an ordinance to “prohibit or restrict, for solid waste management purposes the sale or use of a container or package in a manner not authorized by state law.” In a direct violation of this state law, Ordinance 29307 levies a five-cent fee for each bag provided at the checkout counter. In 2014, the Texas Attorney General issued a formal written opinion stating that municipal ordinances like this one are likely prohibited by state law.

“The plastic bag manufacturing and recycling industry has invested millions in new technologies and education programs to enhance and promote the sustainability of this one-hundred percent recyclable product,” said Mark Daniels, Senior Vice President of Sustainability with Hilex. “Bag bans, taxes or fees do not have a meaningful impact on reducing litter or waste, and, in the state of Texas, the law is clear that a city cannot ban or impose a fee on plastic bags. Dallas is in direct violation of Texas law.”

Additionally, the suit questions whether the “environmental fee” imposed by the Ordinance is an illegal tax. It also highlights distinct legal problems within the Ordinance that infringe on the rights of retailers and low-income families. By forcing store owners to recite the city’s environmental message with signs inside their store and out, the Ordinance violates both the state and federal constitution by compelling speech. At the same time, the Ordinance violates federal regulations by imposing the bag tax on items purchased with food stamps.

Beyond the legal concerns themselves, the Ordinance is problematic for both local businesses and residents alike. Store owners are forced to shoulder additional cost burdens by purchasing alternative bags that are more expensive.

“The plastic retail bag manufacturing and recycling industries support thousands of Texans with high-paying, quality jobs they need to support their families. For the sake of our workers, the hardworking residents of Dallas, and Texas’ overall economy, to which we contribute millions every year, we are eager to resolve this matter once and for all,” said Mark Daniels.

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