Plastic bag companies file suit over Dallas fee

Hilex Poly Co., Superbag Operating Ltd., The Inteplast Group and Advance Polybag Inc. (API) have filed a suit against the city of Dallas over a city ordinance imposing a five-cent-per-bag charge on single-use plastic bags. The plaintiffs claim the charge conflicts with Texas state law.

The four plastic bag companies claim in their petition that aspects of Dallas Ordinance 29307 “do not comport with Texas Statutes and the Texas Constitution. Although the city was aware before the ordinance was enacted that the ordinance violated the Texas Health and Safety code, the city nevertheless pressed on undeterred and enacted the ordinance. Similarly, although the city was notified prior to the effective date of the ordinance that the ordinance also constituted an impermissible tax, the city pressed forward with enforcing the ordinance,” say the bag companies.

“Because the city’s ordinance conflicts with Texas law, it is preempted, invalid and of no force or effect. Accordingly, by this original petition, Hilex, Superbag, Inteplast and API seek a Declaratory Judgement invalidating the ordinance and a permanent injunction prohibiting enforcement of the ordinance,” the petition reads in part.

Under the ordinance, the plaintiffs claim, single-use carry out bags must have a thickness of at least 0.70 mill; any business wishing to provide its customers with carry out bags must separately register each location to the city annually; they also must charge customers five cents for each bag provided, remitting to the city 90 percent of the amount collected; any reusable bag sold must describe the bag’s ability to be reused or recycled; and businesses must erect multi-lingual signs stating whether the business is registered to sell carry out bags, what options are available for carrying items purchased from the business and encouraging customers to bring their own bags.

The plaintiffs say the ordinance would penalize the four bag companies through a decline in the sale of single-use carry out bags; require the manufacturers to perform short manufacturing runs; impose additional expenses on printing; and require warehouse space to accommodate multiple product identification codes for bags.

The four parties also say the ordinance would result in higher costs for citizens and retailers in the Dallas area.

Following the filing of the suit, the city of Dallas issued the following response: “We are disappointed that four plastic bag manufacturers have filed a lawsuit seeking to invalidate the city’s carry out bag ordinance despite the manufacturers’ explicit admission in their lawsuit that ‘the city’s goals [in adopting the ordinance] are laudable.’ The filing of this lawsuit directly contradicts the vigorous support for a fee-based option shown by the lead plaintiff, Hilex Poly Co., during the city’s consideration of the ordinance. The city will continue to act in the best interest of the health, safety, and welfare of its residents.”