Órgão Especial do Tribunal de Justiça de São Paulo, ADI 0121480-62.2011.8.26.0000, Rel. Arantes Theodoro (October 1, 2014)
The Municipality of Sao Paulo passed a law (Lei Municipal 15.374/2011) prohibiting the distribution (for free or for sale) of plastic bags to customers for the purposes of packaging or transporting merchandise acquired in commercial establishments in the city, and encouraging the use of reusable bags.
Lei Municipal 15.374/2011: http://www3.prefeitura.sp.gov.br/cadlem/secretarias/negocios_juridicos/cadlem/integra.asp?alt=19052011L%20153740000 (in Portuguese)
In October 2014, the state constitutional court dismissed a lawsuit brought by an entity representing the plastics industry of the State of Sao Paulo (Sindicato da Indústria de Material Plástico do Estado de São Paulo), which argued that the municipal plastic bag ban violated the state constitution because it was an exercise of authority only belonging to the federal and state governments (among other constitutional arguments), and decided that the federal and state constitutions grant municipalities authority to legislate in matters of local interest (such as solid waste management) and impose on all governments (including municipalities) the duty to protect the environment. See Órgão Especial do Tribunal de Justiça de São Paulo, ADI 0121480-62.2011.8.26.0000, Rel. Arantes Theodoro (October 1, 2014), available at: http://tj-sp.jusbrasil.com.br/jurisprudencia/146500347/direta-de-inconstitucionalidade-adi-1214806220118260000-sp-0121480-6220118260000/inteiro-teor-146500355 (in Portuguese).