Maryland Beverage Container Recycling Refund and Litter Reduction Program

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW. [Brackets] indicate matter deleted from existing law. *hb0232* HOUSE BILL 232 M3 5lr1373 HB 735/24 – ENT & ECM (PRE–FILED) CF 5lr1374 By: Delegates Terrasa, Feldmark, Foley, Kaufman, Mireku –North, Pena–Melnyk, Ruth, Vogel, and Ziegler Requested: October 25, 2024 Introduced and read first time: January 8, 2025 Assigned to: Environment and Transportation and Economic Matters A BILL ENTITLED AN ACT concerning 1 Maryland Beverage Container Recycling Refund and Litter Reduction Program 2 FOR the purpose of establishing the Maryland Beverage Container Recycling Refund and 3 Litter Reduction Program to increase the reuse and recycling of beverage containers 4 and reduce the litter, pollution, and costs associated with bevera ge containers; 5 altering the duties of the Office of Recycling; altering the contents and use of the 6 State Recycling Trust Fund; requiring the Comptroller to establish a separate 7 account within the Fund; requiring that each redeemable beverage container sold in 8 the State depict certain information beginning on a certain date; requiring the 9 wholesale price and retail price of a full redeemable beverage container to include 10 the refund value of the container, subject to a certain exception, beginning on a 11 certain date; requiring a retailer to include certain information on a customer’s sales 12 receipt; establishing a framework for the redemption of redeemable beverage 13 containers sold in the State; requiring a producer to provide a certified copy of a 14 certain contr actual agreement to a certain beverage container stewardship 15 organization; prohibiting a producer from selling, offering for sale, or distributing in 16 or importing into the State a redeemable beverage container unless the producer is 17 registered with the Department of the Environment, pays a certain fee, and is part 18 of the beverage container stewardship organization; establishing a framework for 19 the beverage container stewardship organization to represent producers in fulfilling 20 the requirements of this Act; requiring the beverage container stewardship 21 organization to submit a certain beverage container stewardship plan to the 22 Department for approval; requiring the beverage container stewardship 23 organization to implement and administer the beverage container stewardship plan 24 within a certain time after the plan is approved; requiring the Department to 25 establish a process for a county or municipal corporation to create a redemption 26 facility; authorizing redeemable beverage containers redeemed at a redemption 27 facility managed by a county or municipal corporation to be credited toward meeting 28 certain recycling rates; establishing the Beverage Container Recycling Refund Grant 29 2 HOUSE BILL 232 Program to evaluate the investments and policies necessary to achieve a certain 1 performance target, increase the reuse and recycling of beverage containers in the 2 State, increase the availability of public water fountains and refill stations in the 3 State, and reduce the volume of litter from beverage containers in the State; 4 establishing the Red eemable Beverage Container Recycling Refund Advisory 5 Council to review certain reports, make certain recommendations, and advise the 6 Department on certain matters; providing immunity from liability to a certain 7 person under certain circumstances; and gener ally relating to the Maryland 8 Beverage Container Recycling Refund and Litter Reduction Program. 9 BY repealing and reenacting, without amendments, 10 Article – Environment 11 Section 9–1701(a) and (q) and 9–1702(a) 12 Annotated Code of Maryland 13 (2014 Replacement Volume and 2024 Supplement) 14 BY repealing and reenacting, with amendments, 15 Article – Environment 16 Section 9–1702(d) and 9–1707(f) 17 Annotated Code of Maryland 18 (2014 Replacement Volume and 2024 Supplement) 19 BY adding to 20 Article – Environment 21 Section 9 –1737 through 9 –1755 to be under the new part “Part V I. Maryland 22 Beverage Container Recycling Refund and Litter Reduction Program” 23 Annotated Code of Maryland 24 (2014 Replacement Volume and 2024 Supplement) 25 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 26 That the Laws of Maryland read as follows: 27 Article – Environment 28 9–1701. 29 (a) In this subtitle the following words have the meanings indicated. 30 (q) “Recycling” means any process in which recyclable materials are collected, 31 separated, or processed and returned to the marketplace in the form of raw materials or 32 products. 33 9–1702. 34 (a) There is an Office of Recycling created within the Department. 35 (d) The Office shall: 36 HOUSE BILL 232 3 (1) Assist the counties in developing an acceptable recycling plan required 1 under § 9–1703 of this subtitle and § 9 –505 of this title, including technical assistance to 2 the local governments; 3 (2) Coordinate the efforts of the State to facilita te the implementation of 4 the recycling goals at the county level; 5 (3) Review all recycling plans submitted as part of a county plan as 6 required under § 9 –505 of this title and advise the Secretary on the adequacy of the 7 recycling plan; 8 (4) Administer the Statewide Electronics Recycling Program under Part IV 9 of this subtitle; 10 (5) Promote the development of markets for recycled materials and 11 recycled products in the State in accordance with § 9–1702.1 of this subtitle; [and] 12 (6) Review and approv e plans and annual reports, including the paint 13 stewardship assessment, submitted in accordance with a Paint Stewardship Program 14 established under Part V of this subtitle; AND 15 (7) ADMINISTER THE MARYLAND BEVERAGE CONTAINER 16 RECYCLING REFUND AND LITTER REDUCTION PROGRAM ESTABLISHED U NDER § 17 9–1739 OF THIS SUBTITLE. 18 9–1707. 19 (f) (1) There is a State Recycling Trust Fund. 20 (2) The Fund shall consist of: 21 (i) The newsprint recycling incentive fee; 22 (ii) The telephone directory recycling incentive fee collected under § 23 9–1709 of this subtitle; 24 (iii) The covered electronic device manufacturer registration fee 25 collected under § 9–1728 of this subtitle; 26 (iv) The Paint Stewardship Program plan and annual report review 27 fees collected under § 9–1733(b) and (h) of this subtitle; 28 (V) UNCLAIMED DEPOSITS , FEES, AND PENALTIES 29 TRANSFERRED TO THE FUND UNDER §§ 9–1743, 9–1744, AND 9–1754 OF THIS 30 SUBTITLE; 31 4 HOUSE BILL 232 [(v)] (VI) All fines and penalties collected under this subtitle; 1 [(vi)] (VII) Money appropriated in the State budget to the Fund; and 2 [(vii)] (VIII) Any other money from any other source accepted for the 3 benefit of the Fund. 4 (3) The Secretary shall administer the Fund. 5 (4) The Treasurer shall hold the Fund separately and the Comptroller shall 6 account for the Fund. 7 (5) (I) [At] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 8 PARAGRAPH, AT the end of each fiscal year, any unspent or unencumbered balance in the 9 Fund that exceeds $2,000,000 shall revert to the General Fund of t he State in accordance 10 with § 7–302 of the State Finance and Procurement Article. 11 (II) THE FUNDS TRANSFERRED TO THE FUND UNDER 12 PARAGRAPH (2)(V) OF THIS SUBSECTION A RE NOT SUBJECT TO § 7–302 OF THE 13 STATE FINANCE AND PROCUREMENT ARTICLE AND MAY NOT R EVERT TO THE 14 GENERAL FUND OF THE STATE. 15 (6) In accordance with the State budget, the Fund shall be used only: 16 (i) To provide grants to the counties to be used by the counties to 17 develop and implement local recycling plans; 18 (ii) To provide grants to counties that have addressed methods for 19 the separate collection and recycling of covered electronic devices in accordance with § 20 9–1703(c)(1) of this subtitle; 21 (iii) To provide grants to municipalities to be used by the 22 municipalities to implement local covered electronic device recycling programs; 23 (iv) To cover the costs of the Paint Stewardship Program plan review 24 under § 9 –1733(b) of this subtitle, the annual report review under § 9 –1733(h) of this 25 subtitle, and associated costs for Program compliance oversight; [and] 26 (V) TO COVER THE COSTS OF ADMINISTERING, MONITORING, 27 EVALUATING, AND ENFORCING THE MARYLAND BEVERAGE CONTAINER 28 RECYCLING REFUND AND LITTER REDUCTION PROGRAM ESTABLISHED U NDER § 29 9–1739 OF THIS SUBTITLE; AND 30 [(v)] (VI) To carry out the purposes of the land management 31 administration. 32 HOUSE BILL 232 5 (7) (I) THE COMPTROLLER SHALL EST ABLISH A SEPARATE 1 ACCOUNT WITHIN THE FUND. 2 (II) THE ACCOUNT SHALL CONSIST OF THE FUNDS SPECIFIED IN 3 PARAGRAPH (2)(V) OF THIS SUBSECTION. 4 (III) THE ACCOUNT MAY BE USED ONLY TO: 5 1. COVER THE COSTS OF ADMINISTERING, MONITORING, 6 EVALUATING, AND ENFORCING THE MARYLAND BEVERAGE CONTAINER 7 RECYCLING REFUND AND LITTER REDUCTION PROGRAM ESTABLISHED U NDER § 8 9–1739 OF THIS SUBTITLE; 9 2. FUND THE BEVERAGE CONTAINER RECYCLING 10 REFUND GRANT PROGRAM ESTABLISHED UNDER § 9–1750 OF THIS SUBTITLE; 11 3. COMPENSATE LOCAL GOVE RNMENTS IN 12 ACCORDANCE WITH § 9–1748 OF THIS SUBTITLE; AND 13 4. MEET OR EXCEED THE PE RFORMANCE TARGETS 14 ESTABLISHED UNDER § 9–1740 OF THIS SUBTITLE. 15 [(7)] (8) (i) The Treasurer shall invest the money in the Fund in the 16 same manner as other State money may be invested. 17 (ii) Any investment earnings of the Fund shall be credited to the 18 General Fund of the State. 19 9–1735. RESERVED. 20 9–1736. RESERVED. 21 PART VI. MARYLAND BEVERAGE CONTAINER RECYCLING REFUND AND LITTER 22 REDUCTION PROGRAM. 23 9–1737. 24 (A) IN THIS PART THE FOLL OWING WORDS HAVE THE MEANINGS 25 INDICATED. 26 (B) (1) “ACCOUNT–BASED BULK PROCESSIN G PROGRAM ” MEANS A 27 PROGRAM THAT: 28 6 HOUSE BILL 232 (I) UTILIZES A SYSTEM OF CUSTOMER ACCOUNTS AN D A 1 MECHANISM TO ASSOCIATE REDEEMED REDEEMABLE BEVERAGE CONTAINERS WITH 2 THE APPROPRIATE CUSTOMER ACCOUNT; 3 (II) CONSOLIDATES THE REDE EMED REDEEMABLE BEVE RAGE 4 CONTAINERS FOR BULK SORTING WHILE COLLEC TING DATA ABOUT THE 5 CONTAINERS; 6 (III) FULLY PREPARES REDEEM ED REDEEMABLE BEVERA GE 7 CONTAINERS FOR SALE TO RECYCLERS; AND 8 (IV) COLLECTS DATA TO SUPP ORT AN ACCOUNTI NG OF THE 9 REDEEMABLE BEVERAGE CONTAINERS, INCLUDING THE DEPOSI TS, FEES, AND 10 POUNDS OF MATERIAL PRODUCED THAT ARE ASSOCIATED WITH THE REDEEMABLE 11 BEVERAGE CONTAINERS. 12 (2) “ACCOUNT–BASED BULK PROCESSIN G PROGRAM ” INCLUDES A 13 BAG DROP PROGRAM IF THE BAG DROP PROGRAM IS A COMPONE NT OF THE 14 ACCOUNT–BASED BULK PROCESSING PROGRAM. 15 (C) “ADVISORY COUNCIL” MEANS THE REDEEMABLE BEVERAGE 16 CONTAINER RECYCLING REFUND ADVISORY COUNCIL ESTABLISHED U NDER § 17 9–1752 OF THIS SUBTITLE. 18 (D) “BAG DROP PROGRAM” MEANS A PROGRAM THAT ALLOWS A CUSTOMER 19 TO: 20 (1) DROP OFF EMPTY REDEEMABLE BEVERAGE CONTAINERS IN A BAG 21 OR OTHER RECEPTACLE AT ONE OR MORE LOCATIONS FOR A REFUND; AND 22 (2) HAVE THE CORRESPONDING REFUND PLACED INTO AN ACCOUNT 23 HELD FOR THE BENEFIT OF THE CUSTOMER IN A MANNER THAT ALLOWS THE 24 CUSTOMER TO OBTAIN T HE REFUND OR REFUND RECEIPT WITHIN A SPE CIFIED 25 NUMBER OF DAYS AFTER THE DROP–OFF. 26 (E) (1) “BEVERAGE” MEANS ANY DRINKABLE LIQUID INTENDED FOR 27 HUMAN ORAL CONSUMPTION. 28 (2) “BEVERAGE” DOES NOT INCLUDE: 29 (I) DRUGS REGULATED UNDER TH E FEDERAL FOOD, DRUG, 30 AND COSMETIC ACT; AND 31 HOUSE BILL 232 7 (II) INFANT FORMULA. 1 (F) (1) “BEVERAGE CONTAINER ” MEANS A BOTTLE , CAN, OR OTHER 2 CONTAINER THAT: 3 (I) HAS BEEN SEALED BY A MANUFACTURER; 4 (II) IS MADE OF GLASS, METAL, OR PLASTIC; AND 5 (III) AT THE TIME OF SALE , CONTAINS 3 LITERS OR LESS OF A 6 BEVERAGE. 7 (2) “BEVERAGE CONTAINER” DOES NOT INCLUDE: 8 (I) A CARTON; 9 (II) A POUCH; OR 10 (III) ASEPTIC PACKAGING. 11 (G) “BEVERAGE CONTAINER RE DEMPTION AND PROCESS ING METHOD ” 12 MEANS A MANUAL OR TE CHNOLOGICAL METHOD F OR PROPERLY COLLECTI NG, 13 IDENTIFYING, COUNTING, OR PROCESSING EMPTY REDEEMABLE BEVERAGE 14 CONTAINERS FOR REDEMPTION. 15 (H) “BEVERAGE CONTAINER ST EWARDSHIP ORGANIZAT ION” MEANS A 16 NONPROFIT ORGANIZATION THAT IS: 17 (1) EXEMPT FROM TAXATION UNDER § 501(C)(3) OF THE INTERNAL 18 REVENUE CODE; 19 (2) CREATED BY PRODUCERS TO IMPLEMENT A BEVER AGE 20 CONTAINER STEWARDSHIP PLAN; AND 21 (3) APPROVED BY THE DEPARTMENT IN ACCORDANCE WITH § 9–1745 22 OF THIS SUBTITLE. 23 (I) “BEVERAGE CONTAINER ST EWARDSHIP PLAN ” MEANS A PLAN 24 SUBMITTED TO THE DEPARTMENT UNDER § 9–1746 OF THIS SUBTITLE. 25 (J) “DEPOSIT INITIATOR” MEANS THE FIRST DIST RIBUTOR TO COLLECT A 26 DEPOSIT ON A BEVERAGE CONTAINER SOLD IN THE STATE. 27 (K) (1) “DISTRIBUTOR” MEANS A PERSON THAT SELLS BEVERAGES IN 28 8 HOUSE BILL 232 REDEEMABLE BEVERAGE CONTAINERS TO A RETAILER IN THE STATE. 1 (2) “DISTRIBUTOR” INCLUDES A PERSON THAT MANUFACTURES AND 2 SELLS BEVERAGES IN REDEEMABLE BEVERAGE CONTAINERS TO A RETAILER IN THE 3 STATE. 4 (3) “DISTRIBUTOR” DOES NOT INCLUDE AIR LINES OR SHIPPING 5 COMPANIES THAT TRANSPORT REDEEMABLE BEVERAGE CONTAINERS. 6 (L) “GRANT PROGRAM” MEANS THE BEVERAGE CONTAINER RECYCLING 7 REFUND GRANT PROGRAM ESTABLISHED UNDER § 9–1750 OF THIS SUBTITLE. 8 (M) “LINE BREAKAGE” MEANS A BEVERAGE CONTAINER THAT: 9 (1) BECOMES DEFECTIVE OR DAMAGED DURING MANUFACTURING; 10 (2) IS NOT INTENDED TO BE SOLD; AND 11 (3) IS NOT ELIGIBLE FOR REDEMPTION. 12 (N) “MARYLAND–SPECIFIC UPC BARCODE” MEANS A UNIVERSAL PRODUCT 13 CODE THAT IS: 14 (1) UNIQUE TO BEVERAGE CONTAINERS SOLD IN THE STATE; AND 15 (2) USED TO DETER FRAUD A ND ENSURE THE LEGITI MATE 16 REDEMPTION OF REDEEMABLE BEVERAGE CONTAINERS. 17 (O) (1) “ON–PREMISES SELLER ” MEANS A PERSON THAT SELLS FILLED 18 AND UNOPENED REDEE MABLE BEVERAGE CONTA INERS FOR ON –PREMISES 19 CONSUMPTION. 20 (2) “ON–PREMISES SELLER” INCLUDES: 21 (I) BARS; 22 (II) HOTELS; 23 (III) RESTAURANTS; 24 (IV) SPORTING VENUES; 25 (V) ENTERTAINMENT VENUES; AND 26 HOUSE BILL 232 9 (VI) GAMING VENUES. 1 (P) “PERFORMANCE TARGETS” MEANS THE TARGETS ESTABLISHED UNDER 2 § 9–1740 OF THIS SUBTITLE. 3 (Q) (1) “PRODUCER” MEANS A PERSON RESPO NSIBLE FOR COMPLYING 4 WITH THE REQUIREMENTS UNDER THIS PART. 5 (2) “PRODUCER” INCLUDES A FRANCHISO R OF A FRANCHISE 6 LOCATED IN THE STATE. 7 (3) “PRODUCER” DOES NOT INCLUDE: 8 (I) THE STATE, A COUNTY , A MUNICIPAL CORPORAT ION, OR 9 ANY OTHER POLITICAL SUBDIVISION OF THE STATE; 10 (II) A CHARITABLE ORGANIZAT ION THAT IS TAX –EXEMPT 11 UNDER § 501(C)(3) OF THE INTERNAL REVENUE CODE; 12 (III) A SOCIAL WE LFARE ORGANIZATION T HAT IS TAX –EXEMPT 13 UNDER § 501(C)(4) OF THE INTERNAL REVENUE CODE; 14 (IV) A FRANCHISEE THAT OPER ATES A FRANCHISE IN THE 15 STATE; 16 (V) A PERSON THAT ANNUALLY SELLS, OFFERS FOR SALE , 17 DISTRIBUTES, OR IMPORTS INTO THE COUNTRY FOR SALE IN THE STATE FEWER 18 THAN 1,000 REDEEMABLE BEVERAGE CONTAINERS; OR 19 (VI) A PERSON THAT ANNUALLY SELLS, OFFERS FOR SALE , OR 20 DISTRIBUTES IN THE STATE REDEEMABLE BEVE RAGE CONTAINERS THAT IN 21 AGGREGATE GENERATE LESS THAN $5,000,000 EACH YEAR IN GLOBAL REVENUE. 22 (R) “PROGRAM” MEANS THE MARYLAND BEVERAGE CONTAINER 23 RECYCLING REFUND AND LITTER REDUCTION PROGRAM ESTABLISHED U NDER § 24 9–1739 OF THIS SUBTITLE. 25 (S) “RECYCLING RATE ” MEANS THE NUMBER OF NONREFILLABLE 26 REDEEMABLE BEVERAGE CONTAINERS SOLD IN T HE STATE THAT A RE RECYCLED 27 SHOWN AS A PERCENTAG E OF ALL NONREFILLAB LE REDEEMABLE BEVERA GE 28 CONTAINERS SOLD IN THE STATE. 29 10 HOUSE BILL 232 (T) “REDEEM” MEANS THE RETURN OF AN EMPTY REDEEMABLE BEVERAGE 1 CONTAINER IN EXCHANGE FOR A REFUND, A VOUCHER FOR A REFUND, OR A CREDIT 2 TO AN ACCOUNT FOR NOT LESS THAN THE REFUND VALUE. 3 (U) “REDEEMABLE BEVERAGE C ONTAINER” MEANS A BEVERAGE 4 CONTAINER THAT, AT THE TIME OF SALE: 5 (1) CONTAINS 3 LITERS OR LESS OF A BEVERAGE; 6 (2) BEARS A UNIVERSAL PRODUCT CODE; AND 7 (3) MAY BEAR A MARYLAND–SPECIFIC UPC BARCODE FOR THE 8 PURPOSE OF ENSURING LEGITIMATE REDEMPTION AND DETERRING FRAUD. 9 (V) “REDEMPTION FACILITY” MEANS A FACILITY THAT: 10 (1) ACCEPTS EMPTY BEVERAGE CONTAINERS FROM A CONSUMER, A 11 RETAILER, OR BOTH; 12 (2) COLLECTS, SORTS, AND COUNTS EMPTY BEVERAGE CONTAINERS; 13 (3) REFUNDS THE REFUND VA LUE OF EMPTY REDEEMA BLE 14 BEVERAGE CONTAINERS IN CASH , WITH A VOUCHER , OR AS A CREDIT TO AN 15 ACCOUNT FOR NOT LESS THAN THE REFUND VALU E OF THE REDEEMABLE 16 BEVERAGE CONTAINER; AND 17 (4) IS LICENSED UNDER § 9–1742 OF THIS SUBTITLE. 18 (W) “REDEMPTION RATE ” MEANS THE PERCENTAGE OF REDEEMABLE 19 BEVERAGE CONTAINERS SOLD IN THE STATE THAT ARE REDEEM ED FOR THE 20 DEPOSIT VALUE. 21 (X) “REFILLABLE” MEANS A BEVERAGE CONTAINER THAT IS DESIGNED AND 22 INTENDED TO BE REUSE D AS A BEVERAGE CONT AINER AFTER BEING US ED BY A 23 CONSUMER WITHOUT THE NEED FOR REMANUFACTURING. 24 (Y) (1) “RETAILER” MEANS A PERSON THAT ENGAGES IN THE SALE OF 25 REDEEMABLE BEVERAGE CONTAINERS TO A CONSUMER IN THE STATE. 26 (2) “RETAILER” INCLUDES A PERSON THAT ENGAGES IN THE SALE OF 27 REDEEMABLE BEVERAGE CONTAINERS: 28 (I) THROUGH A VENDING MACHINE; OR 29 HOUSE BILL 232 11 (II) ONLINE FOR HOME OR OFFICE DELIVERY. 1 (Z) “REVERSE VENDING MACHINE” MEANS AN AUTOMATED DEVICE THAT: 2 (1) ACCEPTS ONE OR MORE TYPES OF EMPTY REDEE MABLE 3 BEVERAGE CONTAINERS; 4 (2) USES A LASER SCANNER , AN OPTICAL SENSOR , A 5 MICROPROCESSOR, OR OTHER TECHNOLOGY TO ACCURATELY RECOGN IZE A 6 BEVERAGE CONTAINER’S UNIVERSAL PRODUCT CODE TO DETERMINE WHETHER THE 7 CONTAINER IS A REDEEMABLE BEVERAGE CONTAINER; 8 (3) ISSUES A REDEEMABLE C REDIT SLIP FOR THE R EDEEMABLE 9 BEVERAGE CONTAINER’S REFUND VALUE; 10 (4) SEPARATES REDEEMABLE BEVERAGE CONTAINERS FROM 11 CONTAINERS THAT ARE NOT REDEEMABLE; 12 (5) USES MECHANICAL COMPA CTION TO CANCEL REDE EMABLE 13 BEVERAGE CONTAINERS THAT HAVE BEEN REDEEMED; AND 14 (6) COMPILES INFORMATION REGARDING THE REDEEM ABLE 15 BEVERAGE CONTAINERS THAT HAVE BEEN REDEEMED, INCLUDING THE NUMBER OF 16 REDEEMABLE BEVERAGE CONTAINERS REDEEMED. 17 (AA) (1) “UNIVERSAL PRODUCT COD E” OR “UPC” MEANS A STANDARD 18 BARCODE THAT ENCODES A NUMBER UNIQUELY AS SIGNED TO A PRODUCT FOR 19 IDENTIFICATION OF THE PRODUCT. 20 (2) “UNIVERSAL PRODUCT CODE” OR “UPC” INCLUDES: 21 (I) ANY INDUSTRY –ACCEPTED BARCODE USE D FOR PRODUCT 22 IDENTIFICATION PURPOSES; AND 23 (II) A EUROPEAN ARTICLE NUMBER. 24 9–1738. 25 IT IS THE INTENT OF THE GENERAL ASSEMBLY TO: 26 (1) REDUCE THE VOLUME OF LITTER AND PLASTIC POLLUTION FROM 27 BEVERAGE CONTAINERS IN THE STATE BY ACHIEVING A REDEMPTION RATE OF AT 28 12 HOUSE BILL 232 LEAST 90% FOR THE APPROXIMATEL Y 5,500,000,000 SINGLE–USE BEVERAGE 1 CONTAINERS SOLD ANNUALLY IN THE STATE; 2 (2) PROVIDE A SOURCE OF HIGH–QUALITY, FOOD–GRADE MATERIALS 3 FOR USE AS RECYCLED CONTENT IN BEVERAGE AND FOOD CONTAINERS; 4 (3) REDUCE THE VOLUME OF BEVERAGE CONTAINERS THAT ARE 5 LANDFILLED OR INCINERATED IN THE STATE; 6 (4) REDUCE THE COSTS OF L ITTER AND BEVERAGE C ONTAINER 7 COLLECTION, RECYCLING, AND DISPOSAL INCURRE D BY TAXPAYERS , COUNTIES, 8 AND MUNICIPAL CORPOR ATIONS BY MAKING PRO DUCERS OF BEVERAGE 9 CONTAINERS RESPONSIB LE FOR THE RECOVE RY, RECYCLING, AND REUSE OF 10 BEVERAGE CONTAINERS; 11 (5) PROVIDE INCENTIVES FO R INCREASING THE USE OF REUSABLE 12 AND REFILLABLE BEVERAGE CONTAINERS; AND 13 (6) REDUCE GREENHOUSE GAS EMISSIONS ASSOCIATED WITH THE 14 PRODUCTION, TRANSPORTATION, PROCESSING, AND WA STE DISPOSAL OF 15 SINGLE–USE BEVERAGE CONTAINERS SOLD IN THE STATE. 16 9–1739. 17 THERE IS A MARYLAND BEVERAGE CONTAINER RECYCLING REFUND AND 18 LITTER REDUCTION PROGRAM IN THE DEPARTMENT. 19 9–1740. 20 PERFORMANCE TARGETS FOR THE PROGRAM ARE AS FOLLOWS: 21 (1) A 70% REDEMPTION RATE BY DECEMBER 31, 2029; 22 (2) A 90% REDEMPTION RATE BY DECEMBER 31, 2032; 23 (3) BY DECEMBER 31, 2027, ATTAINMENT OF ALL CO NVENIENCE 24 STANDARDS IDENTIFIED BY THE DEPARTMENT UNDER § 9–1751 OF THIS SUBTITLE; 25 AND 26 (4) BY DECEMBER 31, 2035, AT LEAST 10% OF ALL BEVERAGE 27 CONTAINERS SOLD IN THE STATE ARE RETURNED AND REFILLED. 28 9–1741. 29 HOUSE BILL 232 13 (A) (1) SUBJECT TO PARAGRAPHS (2) AND (3) OF THIS SUBSECTION , 1 BEGINNING JANUARY 1, 2028, EACH REDEEMABLE BEVERAGE CONTAINER SOLD IN 2 THE STATE SHALL INCLUDE A DEPICTION OF THE FOLLOWING INFORMATION: 3 (I) THE WORD “MARYLAND” OR THE LETTERS “MD”; AND 4 (II) 1. FOR REDEEMABLE BEVERA GE CONTAINERS WITH A 5 VOLUME OF 24 FLUID OUNCES OR LESS, A REFUND VALUE OF 10 CENTS; OR 6 2. FOR REDEEMABLE BEVERA GE CONTAINERS W ITH A 7 VOLUME OF MORE THAN 24 FLUID OUNCES, A REFUND VALUE OF 15 CENTS. 8 (2) THE DEPARTMENT MAY ADJUST THE REFUND VALUES SPECIFIED 9 IN PARAGRAPH (1) OF THIS SUBSECTION: 10 (I) IF THE DEPARTMENT DETERMINES ALTERING THE REFUND 11 VALUES IS NECESSARY TO MEET OR EXCEED PERFORMANCE TARGETS; OR 12 (II) AT THE REQUEST OF A B EVERAGE CONTAINER 13 STEWARDSHIP ORGANIZATION. 14 (3) BEGINNING JANUARY 1, 2032, THE DEPARTMENT SHALL 15 INCREASE THE REFUND VALUES SPECIFIED IN PARAGRAPH (1) OF THIS SUBSECTION 16 BY 5 CENTS IF THE DEPARTMENT DETERMINES TH AT FOR 2 CONSECUTIVE 17 CALENDAR YEARS THE R EDEMPTION RATE WAS L ESS THAN 90% OF THE TOTAL 18 NUMBER OF BEVERAGE CONTAINERS SOLD IN THE STATE. 19 (B) A BEVERAGE CONTAINER DEPICTING THE INFORMATION SPECIFIED IN 20 SUBSECTION (A) OF THIS SECTION MAY NOT BE SOLD TO A CON SUMER BEFORE 21 JANUARY 1, 2028. 22 (C) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 23 BEGINNING JANUARY 1, 2028: 24 (I) THE WHOLESALE PRICE AND THE RETAIL PRICE OF A FULL 25 REDEEMABLE BEVERAGE CONTAINER SHALL INCLUDE THE REFUND VALUE OF THE 26 REDEEMABLE BEVERAGE CONTAINER; AND 27 (II) A RETAILER SHALL INCLU DE ON A CUSTOMER ’S SALES 28 RECEIPT THE REFUND V ALUE OF A REDEEMABLE BEVERAGE CONTAINER SOLD BY 29 THE RETAILER TO THE CUSTOMER. 30 14 HOUSE BILL 232 (2) THE RETAIL PRICE OF A FULL REDEEMABLE BE VERAGE 1 CONTAINER SOLD BY AN ON–PREMISES SELLER MAY NOT INCLUDE THE REFU ND 2 VALUE OF THE REDEEMABLE BEVERAGE CONTAINER. 3 9–1742. 4 (A) (1) THE PROGRAM SHALL PROVIDE A RANGE OF OPTIONS F OR 5 CUSTOMERS TO CONVENI ENTLY REDEEM EMPTY R EDEEMABLE BEVERAGE 6 CONTAINERS FOR THE FULL REFUND VALUE, INCLUDING: 7 (I) AT A RETAILER ’S PLACE OF BUSINESS THROUGH DIRECT 8 TAKE–BACK BY THE RETAILER , REVERSE VENDING MACH INES, A BAG DROP 9 PROGRAM, OR OTHER REDEMPTION METHODS; 10 (II) DEDICATED AND CONVENI ENTLY LOCATED REDEMP TION 11 FACILITIES OPERATED BY RETAILERS, PUBLIC ENTITIES , OR THE BEVERAGE 12 CONTAINER STEWARDSHIP ORGANIZATION; AND 13 (III) PLACING REDEEMABLE BE VERAGE CONTAINER 14 REDEMPTION AND PROCESSING METHODS, SUCH AS REVERSE VENDING MACHINES, 15 BAG DROP PROGRAMS , AND ACCOUNT –BASED BULK PROCESSING PR OGRAMS, IN 16 AREAS: 17 1. WITH A HIGH NUMBER OF PEDESTRIANS; AND 18 2. WHERE INDIVIDUALS PUR CHASE OR USE BEVERAG E 19 CONTAINERS. 20 (2) THE PROGRAM SHALL PROVIDE A RANGE OF OPTIONS F OR 21 ON–PREMISES SELLERS TO CONVENIENTLY REDEEM EMPTY RE DEEMABLE 22 BEVERAGE CONTAINERS FOR THE FULL REFUND VALUE, INCLUDING: 23 (I) AN ACCOUNT –BASED REFUND ISSUED BY THE BEVERAGE 24 CONTAINER STEWARDSHI P ORGANIZATION OR IT S AGENTS FOLLOWING T HE 25 COLLECTION OF EMPTY REDEEMABLE BEVERAGE CONTAINERS BY THE BE VERAGE 26 CONTAINER STEWARDSHIP ORGANIZATION OR ITS AGENTS FROM THE ON–PREMISES 27 SELLER; OR 28 (II) AN ACCOUNT–BASED REFUND ISSUED BY THE OPERATOR OF 29 A BAG DROP PROGRAM. 30 (B) (1) A PERSON SHALL APPLY TO THE DEPARTMENT FOR A LICENSE TO 31 OPERATE A REDEMPTION FACILITY IN THE STATE. 32 HOUSE BILL 232 15 (2) THE DEPARTMENT SHALL DEVE LOP STANDARDS AND A 1 LICENSING PROCESS FO R THE ESTABLISHMENT AND OPERATION OF RED EMPTION 2 FACILITIES. 3 (C) SUBJECT TO SUBSECTION (D) OF THIS SECTION , A REDEMPTION 4 FACILITY SHALL ACCEP T ALL TYPES OF EMPTY REDEEMABLE BEVERAGE 5 CONTAINERS FOR REDEMPTION. 6 (D) A RETAILER OR REDEMPTI ON FACILITY MAY REFU SE TO ACCEPT AN 7 EMPTY REDEEMABLE BEVERAGE CONTAINER THAT: 8 (1) IS DIRTY; 9 (2) IS BROKEN; 10 (3) CONTAINS MATERIAL FOR EIGN TO THE NORMAL C ONTENTS OF 11 THE BEVERAGE CONTAINER; OR 12 (4) THE RETAILER OR REDEM PTION FACILITY BELIE VES WAS NOT 13 SOLD IN THE STATE. 14 (E) (1) THIS SUBSECTION APPLIES TO A RETAILER WITH AT LEAST 3,000 15 SQUARE FEET OF SALES FLOOR SPACE AND AT L EAST 150 SQUARE FEET OF SHELF 16 SPACE DEDICATED TO THE DISPLAY OF REDEEMABLE BEVERAGE CONTAINERS. 17 (2) SUBJECT TO SUBSECTION (D) OF THIS SECTION , A RETAILER 18 SHALL: 19 (I) ESTABLISH AND MAINTAI N A DEDICATED AREA AT THE 20 RETAILER’S PLACE OF BUSINESS TO ACCEPT EMPTY REDE EMABLE BEVERAGE 21 CONTAINERS; 22 (II) ACCEPT AT THE RETAILE R’S PLACE OF BUSINESS ANY 23 EMPTY REDEEMABLE BEV ERAGE CONTAINERS RET URNED FOR REDEMPTION 24 DURING THE RETAILER’S BUSINESS HOURS; AND 25 (III) PAY TO THE REDEEMER T HE REFUND VALUE FOR EACH 26 EMPTY REDEEMABLE BEVERAGE CONTAINER REDEEMED. 27 (3) RETAILERS MAY MEET THE REQUIREMENTS IN PARAGRAPH (2) OF 28 THIS SUBSECTION THROUGH VARIOUS METHODS, INCLUDING: 29 16 HOUSE BILL 232 (I) SUPPLEMENTING THE MANUAL COLLECTION AND STORING 1 OF REDEEMED REDEEMAB LE BEVERAGE CONTAINE RS WITH A REVERSE VE NDING 2 MACHINE, A BAG DROP PROGRAM , OR OTHER COUNTING AN D SORTING METHODS; 3 AND 4 (II) GROUPING BEVERAGE CON TAINER REDEMPTION AN D 5 PROCESSING METHODS WITH THOSE OF OTHER RETAILERS IF: 6 1. THE BEVERAGE CONTAINER S TEWARDSHIP 7 ORGANIZATION APPROVES THE PROPOSAL; AND 8 2. THE RETAILERS PARTICI PATING IN THE GROUPE D 9 METHODS PROVIDE CONS ISTENT SERVICE , MARKETING, AND SITE REDEMPTION 10 LOCATIONS THAT COMPL Y WITH DISTANCE PROV ISIONS DETERMINE D BY THE 11 DEPARTMENT. 12 (4) A RETAILER WITHIN AN A REA THAT MEETS THE C ONVENIENCE 13 STANDARDS ESTABLISHE D BY THE DEPARTMENT UNDER § 9–1751 OF THIS 14 SUBTITLE MAY BE EXEMPT FROM THE REQUIREMENTS OF THIS SUBSECTION IF THE 15 RETAILER: 16 (I) IS LOCATED IN CLOSE P ROXIMITY TO A REDEMPTI ON 17 FACILITY IN THAT AREA; AND 18 (II) SHARES THE COST OF TH E OPERATION OF THE 19 REDEMPTION FACILITY WITH THE BEVERAGE CONTAINER S TEWARDSHIP 20 ORGANIZATION. 21 (5) THE DEPARTMENT MAY: 22 (I) SET STANDARDS FOR THE NUMBER OF REVERSE VE NDING 23 MACHINES REQUIRED FOR RETAILERS LOCATED IN UNDERSERVED COMMUNITIES; 24 AND 25 (II) ESTABLISH A CAP FOR T HE NUMBER OF EMPTY 26 REDEEMABLE BEVERAGE CONTAINERS THAT MAY BE REDEEMED PER VISI T AT 27 SMALL RETAILERS. 28 (F) SUBJECT TO SUBSECTION (D) OF THIS SECTION, A RETAILER WITH LESS 29 THAN 3,000 SQUARE FEET OF SALES FLOOR SPACE OR LESS THAN 150 SQUARE FEET 30 OF SHELF SPACE DEDIC ATED TO THE DISPLAY OF REDEEMABLE BEVERA GE 31 CONTAINERS SHALL: 32 HOUSE BILL 232 17 (1) PROVIDE ON–SITE CASH REFUNDS FOR THE REDEMPTION OF ANY 1 EMPTY REDEEMABLE BEVERAGE CONTAINER THAT IS OF THE SAME MATERIAL AND 2 SIZE AS THOSE THAT A RE SOLD BY THE RETAI LER IF THE EMPTY RED EEMABLE 3 BEVERAGE CONTAINER B EING REDEEMED IS NOT ACCEPTED BY A REVERS E 4 VENDING MACHINE; AND 5 (2) POST AT THE RETAILER ’S ENTRANCE THE ADDRE SS OF THE 6 NEAREST REVERSE VEND ING MACHINE OR OTHER REDEMPTION METHOD TH AT 7 PROVIDES AN IMMEDIAT E CASH REFUND FOR RE DEEMING EMPTY REDEEM ABLE 8 BEVERAGE CONTAINERS. 9 (G) (1) A PERSON THAT PROVIDES A REVERSE VENDING MA CHINE FOR 10 THE REDEMPTION OF EMPTY REDEEMABLE BEVERAGE CONTAINERS SHALL: 11 (I) PROVIDE AN OPTION FOR REDEEMING EMPTY REDEEMABLE 12 BEVERAGE CONTAINERS WHEN THE REVERSE VENDING MACHINE IS FULL, BROKEN, 13 OR UNDER REPAIR; AND 14 (II) PROVIDE AN OPTION FOR REDEEMING ANY EMPTY 15 REDEEMABLE BEVERAGE CONTAINERS NOT ACCEPTED BY THE REVE RSE VENDING 16 MACHINE. 17 (2) (I) THE DEPARTMENT SHALL ESTA BLISH A PROCESS FOR 18 SUBMITTING FOR REVIE W, APPROVING, AND MONITORING AN AC COUNT–BASED 19 BULK PROCESSING PROGRAM THAT: 20 1. ENSURES THAT THE PROG RAM WILL ACCURATELY 21 REFUND DEPOSITS AND MAINTAIN AND REPORT DATA FROM EAC H TRANSACTION; 22 AND 23 2. IDENTIFIES THE INFORM ATION THAT MUST BE 24 SUBMITTED TO THE DEPARTMENT FOR APPROVAL OF THE PROGRAM. 25 (II) A PERSON THAT INTENDS TO PROVIDE AN ACCOUNT–BASED 26 BULK PROCESSING PROG RAM FOR THE R EDEMPTION OF EMPTY R EDEEMABLE 27 BEVERAGE CONTAINERS SHALL SUBMIT INFORMA TION IDENTIFIED UNDE R 28 SUBPARAGRAPH (I) OF THIS PARAGRAPH TO THE DEPARTMENT FOR APPROVAL OF 29 THE PROGRAM. 30 (H) REFUNDS PROVIDED FOR AN EMPTY REDEEMED RE DEEMABLE 31 BEVERAGE CONTAINER SHALL BE: 32 (1) IN CASH; 33 18 HOUSE BILL 232 (2) IN THE FORM OF A RECEIPT FROM A REVERSE VENDING MACHINE 1 IF: 2 (I) THE RECEIPT CAN BE EX CHANGED FOR CASH WIT HIN 60 3 DAYS AFTER THE RECEIPT IS ISSUED; AND 4 (II) THERE IS NO REQUIREME NT THAT OTHER GOODS BE 5 PURCHASED TO RECEIVE THE CASH REFUND; OR 6 (3) CREDITED TO AN ACCOUN T BY THE RECEIVER OF THE EMPTY 7 REDEEMABLE BEVERAGE CONTAINER SO THAT TH E CONSUMER CAN RECEI VE THE 8 REFUND OR A REFUND R ECEIPT WITHIN A SPEC IFIED NUMBER OF DAYS , AS 9 DETERMINED BY THE DEPARTMENT, AFTER REDEEMING THE EMPTY REDEEMABLE 10 BEVERAGE CONTAINER. 11 (I) (1) A REDEMPTION FACILITY , RETAILER, OR ANY OTHER PERSON 12 THAT ACCEPTS REDEEMABLE BEVERAGE CONTAINERS FOR REDEMPTION SHALL BE 13 REIMBURSED BY THE BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION OR ITS 14 AGENT FOR THE HANDLING OF EACH EMP TY REDEEMABLE BEVERAGE CONTAINER 15 REDEEMED. 16 (2) (I) THE DEPARTMENT SHALL SET A HANDLING FEE TO BE PAID 17 BY THE BEVERAGE CONTAINER S TEWARDSHIP ORGANIZATION OR ITS AGENT TO A 18 REDEMPTION FACILITY, RETAILER, OR ANY OTHER PERSON THAT AC CEPTS EMPTY 19 REDEEMABLE BEVERAGE CONTAINERS FOR REDEMPTION. 20 (II) 1. THE HANDLING FEE SHAL L BE SET AT AN AMOUN T 21 THAT COVERS THE COST S OF COLLECTING , SORTING, PROCESSING, AND 22 TRANSPORTING EMPTY R EDEEMABLE BEVERAGE C ONTAINERS FOR RECYC LING, 23 REUSE, OR REFILLING. 24 2. THE DEPARTMENT MAY INCREA SE THE HANDLING 25 FEE IF THE DEPARTMENT DETERMINES AN INCREASE IS NECESSARY TO ENCOURAGE 26 THE ESTABLISHMENT OF MORE REDEMPTION FACILITIES. 27 (J) (1) AN ON–PREMISES SELLER THAT PROVIDES EMPTY REDEEMABLE 28 BEVERAGE CONTAINERS FOR REDEMPTION SHALL BE REIMBURSED BY THE 29 BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION OR ITS AGENT FOR: 30 (I) THE REFUNDS PAID BY THE ON–PREMISES SELLER FOR THE 31 EMPTY REDEEMED REDEEMABLE BEVERAGE CONTAINERS; AND 32 HOUSE BILL 232 19 (II) THE HANDLING OF EACH EMPTY REDEEMABLE BEV ERAGE 1 CONTAINER REDEEMED. 2 (2) (I) THE DEPARTMENT SHALL SET A MATERIAL HANDLING FEE 3 TO BE PAID BY THE BEVERAGE CONTAINER S TEWARDSHIP ORGANIZATION OR ITS 4 AGENT TO AN ON –PREMISES SELLER THAT PROVIDES EMPTY RED EEMABLE 5 BEVERAGE CONTAINERS FOR REDEMPTION. 6 (II) THE HANDLING FEE SHAL L BE SET AT AN AMOUN T THAT 7 COVERS THE COSTS OF TEMPORARY STORAGE , PRELIMINARY SORTING , AND 8 PREPARING EACH REDEE MABLE BEVERAGE CONTA INER REDEEMED FOR 9 COLLECTION. 10 (3) THE BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION OR ITS 11 AGENT SHALL PROVIDE TO AN ON–PREMISES SELLER: 12 (I) ANY RECEPTACLES OR BA GS REQUIRED FOR THE 13 PRELIMINARY SORTING OF REDEEMED REDEEMAB LE BEVERAGE CONTAINE RS BY 14 THE ON–PREMISES SELLER; AND 15 (II) ANY LABELS NECE SSARY FOR ATTRIBUTIN G THE 16 REDEEMED REDEEMABLE BEVERAGE CONTAINERS TO THE ON–PREMISES SELLER. 17 (K) A DEPOSIT INITIATOR TH AT COLLECTS A DEPOSI T FROM A RETAILER , 18 REDEMPTION FACILITY , OR ANY OTHER PERSON THAT AC CEPTS REDEEMABLE 19 BEVERAGE CONTAINERS FOR REDEMPTION SHALL ACCOUNT FOR ANY DEPOSITS IN 20 ACCORDANCE WITH § 9–1743 OF THIS SUBTITLE. 21 (L) REDEEMED EMPTY REDEEM ABLE BEVERAGE CONTAI NERS SHALL BE 22 COLLECTED FOR RETURN TO THE BEVERAGE CONTAINER S TEWARDSHIP 23 ORGANIZATION FOR SALE AS SCRAP MATERIAL TO FINANCE THE PROGRAM. 24 9–1743. 25 (A) A DEPOSIT INITIATOR SH ALL DEPOSIT ANY DEPO SITS COLLECTED 26 UNDER § 9–1742 OF THIS SUBTITLE INTO A DEPOSIT COLLECTION ACCOUNT THAT IS 27 MAINTAINED SEPARATELY FROM ALL OTHER REVENUES. 28 (B) THE FUNDS IN THE DEPOSIT COLLECTION ACCOUNT MAY BE USED ONLY 29 TO PAY THE REFUND VA LUE OF AN EMPTY REDE EMABLE BEVERAGE CONT AINER 30 BEING REDEEMED. 31 (C) A DEPOSIT INITIATOR SH ALL REPORT TO THE BEVERAGE CONTAINER 32 20 HOUSE BILL 232 STEWARDSHIP ORGANIZA TION, AT A FREQUENCY DETER MINED BY THE 1 DEPARTMENT, THE FOLLOWING INFORMATION: 2 (1) THE NUMBER OF REDEEMA BLE BEVERAGE CONTAIN ERS SOLD 3 AND EMPTY REDEEMABLE BEVERAGE CONTAINERS REDEEMED SINCE THE L AST 4 REPORT WAS SUBMITTED TO THE BEVERAGE CONT AINER STEWARDSHIP 5 ORGANIZATION UNDER THIS SUBSECTION; 6 (2) THE FUNDS DEPOSITED I NTO T HE DEPOSIT COLLECTIO N 7 ACCOUNT AND THE REFU NDS ISSUED FROM THE DEPOSIT COLLECTION A CCOUNT 8 SINCE THE LAST REPOR T WAS SUBMITTED TO T HE BEVERAGE CONTAINE R 9 STEWARDSHIP ORGANIZATION UNDER THIS SUBSECTION; 10 (3) ANY INCOME EARNED ON THE FUNDS IN THE DEP OSIT 11 COLLECTION ACCOUNT SINCE THE LAST REPORT WAS SUBMITTED TO THE 12 BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION UNDER THIS SUBSECTION; 13 (4) THE BALANCE OF THE DEPOSIT COLLECTION ACCOUNT; AND 14 (5) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT. 15 (D) (1) THE DEPARTMENT SHALL DETER MINE THE POINT AT WH ICH A 16 DEPOSIT BECOMES AN UNCLAIMED DEPOSIT. 17 (2) UNCLAIMED DEPOSITS AR E CALCULATED AS THE AMOUNT OF 18 FUNDS TRANSFERRED TO A DEPOSIT COLLECTION ACCOUNT THAT ARE IN EXCESS 19 OF THE SUM OF: 20 (I) ANY INTEREST EARNINGS ON THE DEPOSIT COLLE CTION 21 ACCOUNT DURING THE T IME FOR WHICH UNCLAI MED DEPOSITS ARE BEI NG 22 CALCULATED; AND 23 (II) THE TOTAL AMOUNT OF THE REFUND VALUE RECEIVED FOR 24 THE EMPTY REDEEMABLE BEVERAGE CONTAINERS REDEEMED DURING THE TIME 25 FOR WHICH THE UNCLAIMED DEPOSITS ARE BEING CALCULATED. 26 (3) A DEPOSIT INITIATOR SH ALL TRANSFER ALL UNC LAIMED 27 DEPOSITS TO THE BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION AT A 28 FREQUENCY DETERMINED BY THE DEPARTMENT. 29 (4) THE BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION 30 SHALL: 31 HOUSE BILL 232 21 (I) ESTABLISH A RESERVE A CCOUNT TO MANAGE ALL 1 UNCLAIMED DEPOSITS; AND 2 (II) TRANSFER 10% OF ALL UNCLAIMED DEP OSITS TO THE 3 DEPARTMENT WITH A FREQUENCY DETERMINED BY THE DEPARTMENT. 4 (5) THE BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION 5 SHALL USE THE FU NDS IN THE RESERVE A CCOUNT ESTABLISHED U NDER 6 PARAGRAPH (4) OF THIS SUBSECTION TO: 7 (I) ACHIEVE THE INTENT OF THE GENERAL ASSEMBLY STATED 8 IN § 9–1738 OF THIS SUBTITLE; AND 9 (II) MEET OR EXCEED THE PE RFORMANCE TARGETS 10 ESTABLISHED IN § 9–1740 OF THIS SUBTITLE. 11 (6) (I) THE DEPARTMENT SHALL TRAN SFER ANY UNCLAIMED 12 DEPOSITS RECEIVED UN DER THIS PARAGRAPH T O THE STATE RECYCLING TRUST 13 FUND UNDER § 9–1707(F) OF THIS SUBTITLE. 14 (II) THE UNCLAIMED DEPOSIT S TRANSFERRED TO THE STATE 15 RECYCLING TRUST FUND MAY BE USED ONLY FOR THE CO STS OF ADMINISTERING 16 AND FINANCING THE GRANT PROGRAM UNDER § 9–1750 OF THIS SUBTITLE. 17 9–1744. 18 (A) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, THIS SECTION 19 APPLIES TO A PRODUCE R THAT SELLS , OFFERS FOR SALE , OR DISTRIBUTES 20 REDEEMABLE BEVERAGE CONTAINERS IN THE STATE. 21 (2) (I) IF THE BEVERAGE CONTA INER IS SOLD UNDER T HE 22 PRODUCER’S OWN BRAND OR LACKS IDENTIFICATION OF A BRAND, THE PRODUCER 23 IS THE PERSON THAT MANUFACTURES THE REDEEMABLE BEVERAGE CONTAINER. 24 (II) IF THE REDEEMABL E BEVERAGE CONTAINER IS 25 MANUFACTURED BY A PERSON OTHER THAN THE BRAND OWNER, THE PRODUCER IS 26 THE PERSON THAT IS THE LICENSEE OF A BRA ND OR TRADEMARK UNDER WHICH A 27 REDEEMABLE BEVERAGE CONTAINER IS SOLD , OFFERED FOR SALE , OR 28 DISTRIBUTED IN THE STATE, WHETHER OR NOT THE TRADEMARK IS REGISTERED IN 29 THE STATE, UNLESS ANOTHER RESPO NSIBLE PERSON HAS CO NTRACTUALLY 30 ACCEPTED RESPONSIBILITY AS THE PRODUCER AND HAS JOINED THE BEVERAGE 31 CONTAINER STEWARDSHIP ORGANIZATION AS TH E PRODUCER RESPONSIB LE FOR 32 THE REDEEMABLE BEVERAGE CONTAINER UNDER THIS SECTION. 33 22 HOUSE BILL 232 (III) IF THERE IS NO PERSON DESCRIBED IN THIS PA RAGRAPH 1 OVER WHOM THE STATE CAN CONSTITUTIO NALLY EXERCISE JURIS DICTION, THE 2 PRODUCER IS THE PERS ON THAT IMPORTS OR D ISTRIBUTES THE REDEE MABLE 3 BEVERAGE CONTAINER IN THE STATE. 4 (3) IF ANOTHER PERSON CON TRACTUALLY ACCEPTS 5 RESPONSIBILITY AS A PRODUCER UNDER PARAGRAPH (2)(II) OF THIS SUBSECTION, 6 THE PRODUCER MUST PR OVIDE A CERTIFIED CO PY OF THE CONTRACTUA L 7 AGREEMENT TO THE BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION. 8 (B) BEGINNING JANUARY 1, 2028, A PRODUCER MAY NOT SELL, OFFER FOR 9 SALE, OR DISTRIBUTE IN OR IMPORT INTO THE STATE A REDEEMABLE BE VERAGE 10 CONTAINER UNLESS THE PRODUCER: 11 (1) IS REGISTERED WITH TH E DEPARTMENT IN ACCORDA NCE WITH 12 THIS SECTION; 13 (2) HAS PAID THE REGISTRATION FEE UNDER SUBSECTION (F) OF 14 THIS SECTION; AND 15 (3) IS PART OF THE BEVERAGE CONTAINER S TEWARDSHIP 16 ORGANIZATION THAT: 17 (I) HAS BEEN APPROVED BY THE DEPARTMENT UNDER § 18 9–1745 OF THIS SUBTITLE; AND 19 (II) HAS A BEVERAGE CONTAI NER STE WARDSHIP PLAN 20 APPROVED BY THE DEPARTMENT UNDER § 9–1746 OF THIS SUBTITLE. 21 (C) ON OR BEFORE MARCH 1 EACH YEAR , BEGINNING IN 2027, THE 22 BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION SHALL PROVIDE TO THE 23 DEPARTMENT: 24 (1) A LIST OF EACH PRODUCE R PARTICIPATING IN THE BEVERAGE 25 CONTAINER STEWARDSHIP ORGANIZATION; AND 26 (2) FOR EACH PRODUCER , THE REGISTRATION FOR M REQUIRED 27 UNDER SUBSECTION (D) OF THIS SECTION. 28 (D) (1) THE DEPARTMENT SHALL CREATE A REGISTRATION FO RM THAT 29 REQUIRES EACH PRODUC ER PARTICIPATING IN THE BEVERAGE CONTAIN ER 30 STEWARDSHIP ORGANIZATION TO PROVIDE THE FOLLOWING INFORMATION: 31 HOUSE BILL 232 23 (I) THE NAME , PRIMARY BUSINESS ADD RESS, AND CONTACT 1 INFORMATION OF THE P ERSON RESPONSIBLE FO R ENSURING COMPLIANC E WITH 2 THIS PART; 3 (II) A LIST OF EACH BRAND O F RE DEEMABLE BEVERAGE 4 CONTAINERS THAT THE PRODUCER INTENDS TO SELL, OFFER FOR SALE , OR 5 DISTRIBUTE IN THE STATE, INCLUDING THE SIZE A ND MATERIAL OF THE 6 REDEEMABLE BEVERAGE CONTAINERS FOR EACH BRAND; 7 (III) FOR EACH REDEEMABLE BEVERAGE CONTAINER SPECIFIED 8 IN THE REGISTRATION, WHETHER THE REDEEMABLE BEVERAGE CONTAINER: 9 1. IS REFILLABLE; AND 10 2. DEPICTS A UPC OR MARYLAND–SPECIFIC UPC 11 BARCODE; 12 (IV) HOW EACH PRODUCER WIL L PREVENT THE FRAUDU LENT 13 SALE AND REDEMPTION OF REDEEMABLE BEVERAGE CONTAINERS THAT WERE NOT 14 SOLD IN THE STATE; 15 (V) THE NUMBER OF REDEEMA BLE BEVERAGE CONTAIN ERS 16 EACH PRODUCER SOLD IN THE STATE IN THE IMMEDIATELY PRECEDING CALENDAR 17 YEAR; AND 18 (VI) ANY OTHER INFORMATION REQUIRED BY THE 19 DEPARTMENT. 20 (2) A PRODUCER SHALL SUBMIT A COMPLETED REGISTRATION FORM 21 TO THE BEVERAGE CONT AINER STEWARDSHIP OR GANIZATION THAT REPR ESENTS 22 THE PRODUCER. 23 (E) ON A SCHEDULE DETERMINED BY THE DEPARTMENT, EACH PRODUCER 24 SHALL PAY A REGISTRA TION FEE ES TABLISHED BY THE DEPARTMENT UNDER 25 SUBSECTION (F) OF THIS SECTION. 26 (F) (1) THE DEPARTMENT SHALL ESTABLISH AN ANNUAL REGISTRATION 27 FEE FOR PRODUCERS TH AT SELL REDEEMABLE B EVERAGE CONTAINERS I N THE 28 STATE. 29 (2) THE REGISTRATION FEE SHALL BE SET IN A MANNER THAT: 30 24 HOUSE BILL 232 (I) WHEN TAKEN IN COMBINA TION WITH ANTICIPATE D 1 REVENUES FROM PENALTIES COLLECTED UNDER § 9–1754 OF THIS SUBTITLE, WILL 2 PRODUCE FUNDS SUFFICIENT TO COVER THE DEPARTMENT’S ESTIMATED COSTS OF 3 PLANNING, IMPLEMENTING, ADMINISTERING, MONITORING, ENFORCING, AND 4 EVALUATING THE PROGRAM FOR THE UPCOMING YEAR; 5 (II) FOR THE FIRST YEAR OF THE PROGRAM DURING WHICH 6 REGISTRATION FEES ARE COLLECTED, SHALL COVER THE START–UP COSTS OF THE 7 PROGRAM THAT WERE INCURRED BY THE DEPARTMENT AND FINANCED FROM THE 8 GENERAL FUND; AND 9 (III) IS PROPORTIONAL TO A PRODUCER’S SHARE OF THE TOTAL 10 NUMBER OF REDEEMABLE BEVERAGE CONTAINERS SOLD IN THE STATE FOR THE 11 IMMEDIATELY PRECEDING CALENDAR YEAR. 12 (3) THE DEPARTMENT SHALL: 13 (I) IF THE REVENUES FROM THE REGISTRATION FEE S IN THE 14 IMMEDIATELY PRECEDIN G YEAR EXCEED THE CO STS SPECIFIED IN PAR AGRAPH 15 (2)(I) OF THIS SUBSECTION, CARRY THE EXCESS REV ENUES FORWARD TO RED UCE 16 REGISTRATION FEES THE FOLLOWING YEAR; AND 17 (II) IF THE REVENUES FROM THE REGISTRATION FEE S IN THE 18 IMMEDIATELY PRECEDIN G YEAR DO NOT COVER THE COSTS SPECIFIED IN 19 PARAGRAPH (2)(I) OF THIS SUBSECTION , ADJUST REGI STRATION FEES FOR TH E 20 FOLLOWING YEAR TO AN AMOUNT THAT WILL COV ER THE DEPARTMENT’S ACTUAL 21 COSTS FROM THE IMMEDIATELY PRECEDING YEAR. 22 (4) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 23 PARAGRAPH, REGISTRATION FEES COLLECTED UNDER THIS SUBSECTION SHALL BE: 24 1. TRANSFERRED TO THE STATE RECYCLING TRUST 25 FUND UNDER § 9–1707(F) OF THIS SUBTITLE; AND 26 2. USED ONLY TO COVER THE DEPARTMENT’S COSTS OF 27 PLANNING, IMPLEMENTING, ADMINISTERING, MONITORING, ENFORCING, AND 28 EVALUATING THE PROGRAM. 29 (II) THE PORTION OF THE REGISTRATION FEES THAT COVERED 30 THE START–UP COSTS OF THE PROGRAM AND WERE FINANCED FROM THE GENERAL 31 FUND DURING THE FIRST YEAR OF THE PROGRAM FOR WHICH REGISTRATION FEES 32 ARE COLLECTED IN ACC ORDANCE WITH PARAGRA PH (2)(II) OF THIS SUBSECTIO N 33 SHALL BE DEPOSITED INTO THE GENERAL FUND. 34 HOUSE BILL 232 25 9–1745. 1 (A) ON OR BEFORE OCTOBER 1, 2026, THE DEPARTMENT MAY APPROV E, 2 FOR A PERIOD NOT TO EXCEED 10 YEARS, A SINGLE BEVERAGE CO NTAINER 3 STEWARDSHIP ORGANIZATION TO REPRESENT ALL PRODUCERS IN FULFILLING THE 4 REQUIREMENTS OF THIS PART , IF THE BEVERAGE CONT AINER STEWARDSHIP 5 ORGANIZATION DEMONSTRATES THAT IT HAS: 6 (1) THE ABILITY , AS DETERMINED BY THE DEPARTMENT, TO 7 ADMINISTER THE REQUIREMENTS OF A BEVERAGE CONTAINER STEWARDSHIP PLAN 8 UNDER § 9–1746 OF THIS SUBTITLE; 9 (2) A GOVERNING BOARD CONS ISTING OF PRODUCERS THAT 10 REPRESENT THE DIVERSITY OF APPLICABLE REDEEMABLE BEVERAGE CONTAINERS 11 IN THE MARKET; 12 (3) SET NO UNREASONABLE B ARRIERS TO JOINING T HE BEVERAGE 13 CONTAINER STEWARDSHIP ORGANIZATION AND W ILL TAKE INTO CO NSIDERATION 14 THE NEEDS OF SMALL P RODUCERS THAT DO NOT GENERATE A HIGH VOLU ME OF 15 CONTAINERS; 16 (4) ADEQUATE FINANCIAL RE SPONSIBILITY AND SAF EGUARDS, 17 INCLUDING FRAUD PREVENTION MEASURES AND AN AUDIT SCHEDULE; 18 (5) THE ABILITY TO SECURE THE CAPITAL NECESSAR Y FOR THE 19 INITIAL INVESTMENT I N INFRASTRUCTURE , SORTING EQUIPMENT , SOFTWARE, 20 TRANSPORTATION, AND OTHER START–UP EXPENSES; AND 21 (6) MET ANY OTHER REQUIREMENTS SET BY THE DEPARTMENT. 22 (B) THE DEPARTMENT MAY RENEW THE APPROVAL OF THE BEVERAGE 23 CONTAINER STEWARDSHI P ORGANIZATION UNDER SUBSECTION (A) OF THIS 24 SECTION IF THE BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION CONTINUES 25 TO MEET THE REQUIREMENTS OF THIS SECTION AND ANY OTHER REQUIREMENT SET 26 BY THE DEPARTMENT. 27 (C) (1) THE DEPARTMENT SHALL REVO KE THE APPROVAL OF THE 28 BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION IF THE DEPARTMENT 29 DETERMINES THAT THE BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION: 30 (I) FAILED TO MEET THE REQUIREMENTS OF THIS SECTION; OR 31 26 HOUSE BILL 232 (II) FAILED TO I MPLEMENT AND ADMINIS TER AN APPROVED 1 BEVERAGE CONTAINER S TEWARDSHIP PLAN IN A CCORDANCE WITH § 9–1746 OF 2 THIS SUBTITLE. 3 (2) IF THE DEPARTMENT REVOKES TH E APPROVAL OF THE 4 BEVERAGE CONTAINER S TEWARDSHIP ORGANIZATION UNDER PARAGRAPH (1) OF 5 THIS SUBSECTION: 6 (I) THE DEPARTMENT MAY APPROV E ONE OR MORE 7 ADDITIONAL BEVERAGE CONTAINER STEWARDSHIP ORGANIZATIONS TO CARRY OUT 8 THE RESPONSIBILITIES OF THE BEVERAGE CONT AINER STEWARDSHIP 9 ORGANIZATION THAT WA S REVOKED , SUBJECT TO ONE OR MO RE OF THE 10 ADDITIONAL BEVERAGE CONTAINER STEWARDSHIP ORGANIZATIONS MEETING THE 11 REQUIREMENTS SPECIFIED IN SUBSECTION (A) OF THIS SECTION; AND 12 (II) THE TRUSTEE OR ESCROW AGENT OF THE TRUST F UND OR 13 ESCROW ACCOUNT ESTAB LISHED IN THE BEVERA GE CONTAINER STEWARD SHIP 14 PLAN UNDER § 9–1746(A)(3)(VI) OF THIS SUBTITLE SHALL: 15 1. RECEIVE ALL PAYMENTS DIRECTLY FROM 16 PRODUCERS THAT WOULD HAVE BEEN PAID TO TH E BEVERAGE CONTAINER 17 STEWARDSHIP ORGANIZATION; 18 2. DEPOSIT THE PAYMENTS RECEIVED UNDER ITEM 1 OF 19 THIS ITEM INTO THE TRUST FUND OR ESCROW ACCOUNT; AND 20 3. MAKE PAYMENTS FROM THE TRUST FUND OR ESCROW 21 ACCOUNT AS DIRECTED BY THE DEPARTMENT TO IMPLEMENT THE REQUIREMENTS 22 OF THIS PART. 23 9–1746. 24 (A) (1) ON OR BEFORE MARCH 1, 2027, THE BEVERAGE CONTAINER 25 STEWARDSHIP ORGANIZA TION SHALL SUBMIT A BEVERAGE CONTAINER 26 STEWARDSHIP PLAN TO THE DEPARTMENT. 27 (2) A BEVERAGE CONTAINER STEWARDSHIP PLAN SHALL: 28 (I) IDENTIFY AND INCLUDE THE CONTACT INFORMATION FOR 29 EACH PRODUCER INTENDED TO BE COVERED UNDER THE PLAN; 30 (II) IDENTIFY EACH BRAND O F REDEEMABLE BEVERAG E 31 CONTAINER INTENDED T O BE SOLD UNDER THE PLAN, INCLUDING THE SIZE A ND 32 HOUSE BILL 232 27 MATERIAL OF THE REDE EMABLE BEVERAGE CONT AINERS FOR EACH BRAN D AND 1 WHETHER THE REDEEMABLE BEVERAGE CONTAINERS ARE REFILLABLE; 2 (III) DESCRIBE: 3 1. THE FINANCING INFORMA TION SPECIFIED IN 4 PARAGRAPH (3) OF THIS SUBSECTION; 5 2. HOW THE PERFORMANCE T ARGETS WILL BE MET O R 6 EXCEEDED FOR THE 5–YEAR PERIOD FOLLOWING THE YEAR IN WHICH THE PLAN IS 7 APPROVED; 8 3. HOW STAKEHOLDER COMME NTS WERE CONS IDERED 9 AND REFLECTED IN THE DEVELOPMENT OF THE P LAN, INCLUDING THE ROLE O F 10 RETAILERS, DISTRIBUTORS, AND LOCAL GOVERNMENTS IN PLAN IMPLEMENTATION; 11 4. THE ADMINISTRATION AN D IMPLEMENTATION OF 12 THE PLAN , INCLUDING ANY STAFFI NG THAT WILL BE NECE SSARY FOR T HESE 13 PURPOSES; 14 5. THE ACTIONS THAT HAVE BEEN TAKEN AND THAT 15 WILL BE TAKEN FOR PU BLIC OUTREACH , EDUCATION, AND COMMUNICATION , 16 INCLUDING MESSAGING AND IDENTIFICATION OF TARGET AUDIENCES; AND 17 6. THE ANTICIPATED INVES TMENTS THAT WILL BE 18 MADE TO IMPROVE THE REUSE OF BEVERAGE CONTAINERS , INCLUDING THE 19 SOURCE OF FUNDING FOR THE INVESTMENTS; 20 (IV) LIST THE STAKEHOLDERS CONSULTED IN DEVELOPING THE 21 PLAN; 22 (V) PROVIDE THE ANTICIPATED COSTS OF IMPLEMENTING THE 23 PLAN FOR 5 YEARS, BROKEN DOWN BY YEAR; 24 (VI) INCLUDE A CLOSURE AND TRANSFER PLAN FOR HANDLING 25 THE AFFAIRS OF THE B EVERAGE CONTAINER ST EWARDSHIP ORGANIZATION THAT 26 ENSURES THAT EACH PRODUCER INTENDED TO BE COVERED UNDER THE BEVERAGE 27 CONTAINER STEWARDSHIP PLAN CAN FULFILL T HE PRODUCER’S OBLIGATIONS IN 28 THE EVENT THAT THE B EVERAGE CONTAINER ST EWARDSHIP ORGANIZATI ON 29 DISSOLVES OR HAS ITS APPROVAL REVOKED UNDER § 9–1745 OF THIS SUBTITLE ; 30 AND 31 (VII) INCLUDE ANY OTHER INF ORMATION REQUESTED B Y THE 32 28 HOUSE BILL 232 DEPARTMENT. 1 (3) THE FINANCING INFORMA TION INCLUDED IN A BEVERA GE 2 CONTAINER STEWARDSHIP PLAN SHALL: 3 (I) EXPLAIN THE FINANCING FOR DIRECT INVESTMEN TS OR 4 REIMBURSEMENTS THAT WILL IMPROVE INFRAST RUCTURE IN A MANNER THAT 5 SUPPORTS REDEMPTION SERVICES AND TECHNOLOGIES; 6 (II) ESTABLISH A FEE STRUC TURE IN ACCORDANCE WI TH 7 PARAGRAPH (4) OF THIS SUBSECTION F OR PRODUCERS PARTICI PATING IN THE 8 BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION; 9 (III) DESCRIBE THE COSTS OF MEETING THE PERFORMA NCE 10 TARGETS; 11 (IV) DESCRIBE THE INCENTIV ES USED TO ENCOURAGE 12 PRODUCERS TO: 13 1. INVEST IN REUSABLE AN D REFILLABLE BEVERAG E 14 CONTAINER SYSTEMS; AND 15 2. REDESIGN BEVERAGE CON TAINERS TO BE EASIER 16 AND LESS COSTLY TO RECYCLE; 17 (V) CREATE INCENTIVES FOR PRODUCERS TO USE A 18 MARYLAND–SPECIFIC UPC BARCODE TO REDUCE FRAUDULENT REDEMPTION; 19 (VI) ESTABLISH A TRUST FUND OR AN ESCROW ACCOUNT IN THE 20 STATE INTO WHICH THE BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION 21 SHALL DEPOSIT ALL UN EXPENDED FUNDS FOR U SE IN ACCORDANCE WIT H THIS 22 SECTION IN THE EVENT THAT THE BEVERAGE CO NTAINER STEWARDSHIP 23 ORGANIZATION DISSOLVES OR HAS ITS APPROVAL REVOKED BY THE DEPARTMENT 24 UNDER § 9–1745 OF THIS SUBTITLE; AND 25 (VII) MEET ANY OTHER REQUIR EMENTS ESTABLISHED B Y THE 26 DEPARTMENT. 27 (4) (I) THE FEE STRUCTURE REQUIRED UNDER PARAGRAPH (3) OF 28 THIS SUBSECTION FOR PRODUCERS PARTICIPATING IN THE BEVERAGE CONTAINER 29 STEWARDSHIP ORGANIZATION SHALL BE: 30 1. SET IN A MANNER THAT COVERS THE COSTS OF 31 HOUSE BILL 232 29 ADMINISTERING THE BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION AND 1 IMPLEMENTING THE BEVERAGE CONTAINER STEWARDSHIP PLAN; AND 2 2. BASED ON: 3 A. THE COSTS ASSOCIATED WITH TRANSPORTING , 4 COLLECTING, AND PROCESSING EACH TYPE OF REDEEMABLE B EVERAGE 5 CONTAINER MATERIAL; 6 B. WHETHER A PRODUCER ’S REDEEMABLE BEVERAG E 7 CONTAINERS ARE REFILLABLE; 8 C. WHETHER A PRODUCER ’S EMPTY REDEEMABLE 9 BEVERAGE CONTAINERS ARE EASY TO RECYCLE; 10 D. WHETHER A PRODUCER ’S REDEEMABLE BEVERAG E 11 CONTAINERS HAVE A MARYLAND–SPECIFIC UPC BARCODE; 12 E. A PRODUCER’S PORTION , BY MATERIAL TYPE , OF 13 REDEEMABLE BEVERAGE CONTAINERS SOLD IN THE STATE DURING THE PREVIOUS 14 CALENDAR YEAR; AND 15 F. ANY OTHER FACTOR THE DEPARTMENT DETERMINES 16 IS NECESSARY TO SUPPORT THE PROGRAM. 17 (II) 1. EXCEPT AS PROVIDED IN § 9–1745(C)(2) OF THIS 18 SUBTITLE, A PRODUCER PARTICIPA TING IN THE BEVERAGE CONTAINER 19 STEWARDSHIP ORGANIZA TION SHALL PAY THE F EE ESTABLISHED UNDER 20 PARAGRAPH (3) OF THIS SUBSECTION TO THE BEVERAGE CONTAINER STEWARDSHIP 21 ORGANIZATION. 22 2. THE BEVERAGE CONTAINER S TEWARDSHIP 23 ORGANIZATION SHALL DEPOSIT FEES RECEIVED UNDER THIS SUBPARAGRAPH TO AN 24 ACCOUNT HELD BY THE BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION. 25 3. THE BEVERAGE CONTAINER S TEWARDSHIP 26 ORGANIZATION MAY USE THE FEES RECEIVED UN DER THIS SUBPARAGRAP H ONLY 27 FOR IMPLEMENTING THE BEVERAGE CONTAINER STEWARDSHIP PLAN. 28 (5) THE DEPARTMENT SHALL SUBM IT A BEVERAGE CONTAI NER 29 STEWARDSHIP PLAN TO AN INDEPENDENT FINAN CIAL AUDITOR TO ENSU RE THAT 30 THE FINANCING PROPOSED IN THE PLAN WILL COVER THE COSTS OF IMPLEMENTING 31 THE PLAN. 32 30 HOUSE BILL 232 (B) (1) (I) WITHIN 120 DAYS AFTER RECEIPT O F A BEVERAGE 1 CONTAINER STEWARDSHIP PLAN SUBMITTED TO THE DEPARTMENT UNDER THIS 2 SECTION, THE DEPARTMENT SHALL APPR OVE, APPROVE WITH CONDITI ONS, OR 3 DENY THE PLAN. 4 (II) IN DETERMINING WHETHE R TO APPROVE , APPROVE WITH 5 CONDITIONS, OR DENY A BEVERAGE C ONTAINER STEWARDSHIP PLAN , THE 6 DEPARTMENT SHALL: 7 1. CONSIDER WHETHER: 8 A. THE PLAN COMPLIES WIT H THE REQUIREMENTS O F 9 THIS SECTION; AND 10 B. THERE WAS SUFFICIENT ENGAGEMENT WITH 11 STAKEHOLDERS, INCLUDING LOCAL GOVE RNMENTS, RETAILERS, DISTRIBUTORS, 12 AND ON–PREMISES SELLERS, IN DEVELOPING THE PLAN; AND 13 2. CONSULT WITH THE ADVISORY COUNCIL. 14 (2) (I) THE DEPARTMENT MAY RESCIN D APPROVAL OF A 15 BEVERAGE CONTAINER STEWARDSHIP PLAN FOR GOOD CAUSE. 16 (II) THE BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION 17 MAY AMEND A RESCINDED BEVERAGE CONTAINER STEWARDSHIP PLAN AND SUBMIT 18 THE AMENDED PLAN TO THE DEPARTMENT FOR APPROVAL. 19 (3) (I) A BEVERAGE CONTAINER S TEWARDSHIP PLAN APPR OVED 20 BY THE DEPARTMENT MAY BE AMENDED WITH APPROVAL OF THE DEPARTMENT. 21 (II) THE DEPARTMENT MAY REQUIRE T HAT AN APPROVED 22 BEVERAGE CONTAINER S TEWARDSHIP PLAN BE A MENDED IF THE REPORT 23 SUBMITTED UNDER § 9–1747 OF THIS SUBTITLE REFLECTS THAT THE 24 PERFORMANCE TARGETS HAVE NOT BEEN MET. 25 (C) AN APPROVED BEVERAGE CONTAINER STEWARDSHIP PLAN EXPIRES AT 26 THE END OF 5 YEARS. 27 (D) (1) THE BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION 28 SHALL IMPLEMENT AND ADMINISTER A BEVERAGE CONTAINER STEWARDSHIP PLAN 29 WITHIN 6 MONTHS AFTER THE PLAN IS APPROVED. 30 HOUSE BILL 232 31 (2) IN IMPLEMENTING AND ADMINISTERING A BEVERAGE CONTAINER 1 STEWARDSHIP PLAN , THE BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION 2 SHALL: 3 (I) FACILITATE LOGISTICS, THE INITIATION OF DEPOSITS, AND 4 THE ISSUANCE OF REFUNDS UNDER THE PLAN; 5 (II) COORDINATE THE LOGISTICS FOR TIMELY COLLECTION OF 6 REDEEMABLE BEVERAGE CONTAINERS FROM AN ON–PREMISES SELLER; 7 (III) ESTABLISH PROCEDURES FOR TRACKING REDEEMA BLE 8 BEVERAGE CONTAINERS SOLD IN THE STATE; 9 (IV) DESIGN AND OPERATE SE RVICES FOR THE 10 TRANSPORTATION AND PROCESSING OF REDEEMABLE BEVERAGE CONTAINERS; 11 (V) DEVELOP AND IMPLEMENT A PLAN FOR ESTABLISH ING, 12 OPERATING, AND MANAGING REDEMPT ION FACILITIES THAT WILL OFFER A WIDE 13 RANGE OF CONVENIENT REDEMPTION LOCATIONS AND TECHNOLOGIES THA T ARE 14 EASY TO USE, ACCESSIBLE, AND MEET OR EXCEED T HE CONVENIENCE STANDARDS 15 ESTABLISHED BY THE DEPARTMENT UNDER § 9–1751 OF THIS SUBTITLE; 16 (VI) DEVELOP AND IMPLEMENT A PLAN FOR THE DISTRIBUTION, 17 OPERATION, AND MAINTENANCE OF B EVERAGE CONTAINER RE DEMPTION AND 18 PROCESSING METHODS , INCLUDING REVERSE VE NDING MACHINES , BAG DROP 19 PROGRAMS, AND ACCOUNT–BASED BULK PROCESSING PROGRAMS; 20 (VII) DEVELOP ACCOUNTING AND CONTROL STANDARDS; 21 (VIII) IMPLEMENT ACCOUNTING , AUDIT, PAYMENT, AND 22 REPORTING PROCEDURES; 23 (IX) ESTABLISH A HIGH –VOLUME VALIDATION AN D AUDIT 24 SYSTEM TO PAY A BULK RATE TO AN ON –PREMISES SELLER FOR THE REDEMPTION 25 OF EMPTY REDEEMABLE BEVERAGE CONTAINERS; 26 (X) ESTABLISH AN APPLICAT ION PROCESS FOR LARG E 27 ON–PREMISES SELLERS TO APPLY FOR AND RECEIV E A BULK RATE FOR TH E 28 REDEMPTION OF HIGH VOLUMES OF EMPTY REDEEMABLE BEVERAGE CONTAINERS; 29 (XI) MARKET REDEEMABLE BEVERAGE CONTAINER MATERIALS 30 FOR REUSE IN THE MANUFACTURING OF SIMILAR PRODUCTS; 31 32 HOUSE BILL 232 (XII) FUND A MARKETING PROG RAM TO EDUCATE THE P UBLIC 1 ABOUT THE PROGRAM; 2 (XIII) ESTABLISH A SYSTEM FO R REPORTING KEY INFO RMATION 3 GATHERED BY THE PROGRAM TO THE DEPARTMENT ON A QUARTERLY BASIS; AND 4 (XIV) CREATE INCENTIVES FOR THE DEVELOPMENT OF 5 REFILLABLE AND REUSABLE BEVERAGE CONTAINER SYSTEMS. 6 (3) ON REQUEST OF THE DEPARTMENT, THE BEVERAGE CONTAINER 7 STEWARDSHIP ORGANIZATION SHALL SUBMIT A COPY OF ITS FINANC IAL RECORDS 8 TO THE DEPARTMENT FOR A FINANCIAL AUDIT. 9 9–1747. 10 (A) THIS SECTION APPLIES TO THE BEVERAGE CONTAINER S TEWARDSHIP 11 ORGANIZATION THAT HAS A BEVERAGE CONTAINER STEWARDSHIP PLAN APPROVED 12 BY THE DEPARTMENT UNDER § 9–1746 OF THIS SUBTITLE. 13 (B) (1) ON OR BEFORE APRIL 1 EACH YEAR, BEGINNING IN 2029, THE 14 BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION SHALL SUBMIT A REPORT TO 15 THE DEPARTMENT ON THE PRO GRESS MADE IN THE PR ECEDING CALENDAR YEAR 16 TOWARD MEETING THE PERFORMANCE TARGETS AND THE GOALS OF THE PROGRAM 17 AND THE BEVERAGE CON TAINER STEWARDSHIP O RGANIZATION’S BEVERAGE 18 CONTAINER STEWARDSHIP PLAN. 19 (2) THE DEPARTMENT SHALL PROV IDE THE ADVISORY COUNCIL 20 WITH A COPY OF EACH REPORT SUBMITTED UNDER THIS SUBSECTION. 21 (C) THE REPORT SUBMITTED UNDER SUBSECTION (B) OF THIS SECTION 22 SHALL INCLUDE, FOR THE PRECEDING CALENDAR YEAR: 23 (1) THE PROGRESS MADE TOWARD ACHIEVING THE PERFORMANCE 24 TARGETS; 25 (2) IF THE PERFORMANCE TA RGETS WERE NOT ACHIE VED, A 26 DESCRIPTION OF THE A CTIONS PROPOSED TO A CHIEVE THE PERFORMAN CE 27 TARGETS; 28 (3) THE NUMBER OF REDEEMABLE BEVERAGE CONTAINERS SOLD IN 29 THE STATE; 30 (4) THE NUMBER OF REDEEMABLE BEVERAGE CONTAINERS SOLD IN 31 HOUSE BILL 232 33 THE STATE SORTED BY MATER IAL TYPE , REFUND VALUE , AND WHETHER THE 1 CONTAINER CAN BE REFILLED OR REUSED; 2 (5) THE NUMBER OF EMPTY R EDEEMABLE BEVERAGE C ONTAINERS 3 REDEEMED; 4 (6) THE NUMBER OF EMPTY R EDEEMABLE BEVERAGE CONTAINERS 5 REDEEMED AT EACH RED EMPTION FACILITY , REVERSE VENDING MACH INE, BAG 6 DROP PROGRAM , ACCOUNT–BASED BULK PROCESSIN G PROGRAM , OR OTHER 7 BEVERAGE CONTAINER R EDEMPTION AND PROCES SING METHOD SORTED B Y 8 MATERIAL TYPE , REFUND VALUE , AND WHETHER THE EMPT Y REDEEMABLE 9 BEVERAGE CONTAINER CAN BE REFILLED OR REUSED; 10 (7) THE REDEMPTION RATE A ND RECYCLING RATE FO R 11 NONREFILLABLE REDEEM ABLE BEVERAGE CONTAI NERS SOLD IN THE STATE 12 SORTED BY MATERIAL T YPE, NUMBER OF CONTAINERS SOLD, AND CONTAINER 13 WEIGHT; 14 (8) THE AMOUNT OF EACH TYPE OF: 15 (I) REDEEMABLE BEVERAGE C ONTAINER MATERIAL 16 COLLECTED IN THE STATE; AND 17 (II) SCRAP MATERIAL SOLD B Y THE BEVERAGE CONTAINER 18 STEWARDSHIP ORGANIZATION; 19 (9) THE LOCATION OF EACH REDEMPTION FACILITY IN THE STATE 20 AND THE REDEMPTION METHOD USED AT EACH REDEMPTION FACILITY; 21 (10) A DESCRIPTION OF ANY I MPROVEMENTS MADE TO MAKE 22 RETURNING EMPTY REDE EMABLE BEVERAGE CONT AINERS EASIER AND MO RE 23 CONVENIENT; 24 (11) THE IDENTIFICATION AND DESCRIPTION OF AREAS THAT DO NOT 25 HAVE READILY AVAILABLE OPTIONS FO R REDEEMING AN EMPTY REDEEMABLE 26 BEVERAGE CONTAINER A ND ACTIONS THE BEVER AGE CONTAINER STEWAR DSHIP 27 ORGANIZATION WILL TAKE TO IMPROVE OPTIONS IN THESE AREAS; 28 (12) THE NUMBER OF CONSUME R COMPLAINTS PER MON TH, SORTED 29 BY REDEMPTION FACILITY; 30 (13) THE NUMBER AND TYPE O F COMPLAINTS FROM ON–PREMISES 31 SELLERS PER MONTH, SORTED BY TYPE OF BUSINESS; 32 34 HOUSE BILL 232 (14) THE NUMBER OF INDIVID UALS AND ORGANIZATIO NS WITH 1 ACCOUNTS ESTABLISHED FOR THE RECEIPT OF E LECTRONIC DEPOSITS O R 2 REFUNDS; 3 (15) THE TOTAL COST OF IMPLEMENTING THE BEVERAGE CONTAINER 4 STEWARDSHIP PLAN, AS DETERMINED BY AN INDEPENDENT FINANCIAL AUDITOR 5 UNDER § 9–1746(A)(5) OF THIS SUBTITLE; 6 (16) THE AVERAGE COST OF P ROCESSING AN EMPTY R EDEEMED 7 REDEEMABLE BEVERAGE CONTAINER; 8 (17) A COPY O F THE AUDIT CONDUCTE D UNDER § 9–1746(A)(5) OF 9 THIS SUBTITLE; 10 (18) FINANCIAL STATEMENTS DETAILING ALL DEPOSI TS RECEIVED 11 AND REFUNDS ISSUED B Y EACH PRODUCER COVE RED UNDER THE BEVERA GE 12 CONTAINER STEWARDSHIP PLAN; 13 (19) THE TOTAL AMOUNT OF D EPOSITS INITIATED, REFUNDS ISSUED, 14 AND UNCLAIMED DEPOSI TS COLLECTED UNDER T HE BEVERAGE CONTAINE R 15 STEWARDSHIP PLAN; 16 (20) AN ACCOUNTING OF ALL ACTIVITIES AND INVES TMENTS 17 FINANCED BY UNCLAIMED DEPOSITS; 18 (21) EXPENDITURES AND REVENUES SORTED BY SOURCE, INCLUDING 19 FEES PAID UNDER § 9–1746(A)(4) OF THIS SUBTITLE, REVENUE FROM THE SALE OF 20 SCRAP MATERIALS, AND UNCLAIMED DEPOSITS; 21 (22) SAMPLES OF ALL EDUCAT IONAL MATERIALS PROV IDED TO 22 CONSUMERS, RETAILERS, AND OTHER ENTITIES; 23 (23) A DETAILED DESCRIPTION OF INVESTMENTS M ADE IN NEW 24 REDEMPTION FACILITIES AND REDEMPTION METHODS; 25 (24) THE LOCATION OF NEW R EDEMPTION FACILITIES AND 26 REDEMPTION METHODS; 27 (25) A DETAILED DESCRIPTION OF CHANGES MADE BY PRODUCERS TO 28 INCREASE THE RECYCLABILITY OF REDEEMABLE BEVERAGE CONTAINERS; 29 (26) A DETAILED DESCRIPTION OF ANY INCIDENTS OF FRAUD AND 30 HOUSE BILL 232 35 EFFORTS TAKEN TO PREVENT FRAUD; AND 1 (27) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT. 2 (D) THE FINANCIAL , PRODUCTION, AND SALES DATA OF IN DIVIDUAL 3 PRODUCERS REPORTED T O THE DEPARTMENT UNDER THIS SECTION S HALL BE 4 KEPT CONFIDENTIAL BY THE DEPARTMENT AND THE ADVISORY COUNCIL. 5 (E) THE DEPARTMENT SHALL POST THE REPORT SUBMITTED UNDER THIS 6 SECTION ON THE DEPARTMENT’S WEBSITE IN A MANNE R THAT PROTECTS THE 7 CONFIDENTIALITY OF T HE DATA SPECIFIE D UNDER SUBSECTION (D) OF THIS 8 SECTION. 9 9–1748. 10 (A) THE DEPARTMENT SHALL ESTA BLISH A PROCESS FOR A COUNTY OR 11 MUNICIPAL CORPORATION TO CREATE A REDEMPTION FACILITY. 12 (B) EMPTY REDEEMABLE BEVE RAGE CONTAINERS REDE EMED AT A 13 REDEMPTION FACILITY MANAGED BY A COUNTY OR MUNICIPA L CORPORATION 14 SHALL BE CREDITED TOWARD MEETING THE RECYCLING RATES REQUIRED UNDER § 15 9–505 OF THIS TITLE. 16 (C) (1) THROUGH DECEMBER 31, 2030, A PORTION OF PROGRAM 17 REVENUES SHALL BE US ED TO COMPENSATE A C OUNTY OR MUNICIPAL 18 CORPORATION FOR ANY NET LOSS OF RE VENUE TO THE COUNTY ’S OR MUNICIPAL 19 CORPORATION’S WASTE MANAGEMENT S YSTEM THAT CAN BE DO CUMENTED AND 20 ATTRIBUTED TO THE PROGRAM. 21 (2) IN DETERMINING A NET LOSS OF REVENUE , A COUNTY OR 22 MUNICIPAL CORPORATION SHALL CONSIDER: 23 (I) THE LO SS OF REVENUE FROM T HE SALE OF SCRAP 24 MATERIALS; 25 (II) FINANCIAL SAVINGS FROM A REDUCTION IN: 26 1. GLASS BOTTLES IN THE RECYCLING STREAM; 27 2. TRANSPORTATION COSTS ASSOCIATED WITH 28 CURBSIDE COLLECTION OF TRASH AND RECYCLING; 29 3. PROCESSING COSTS ASSO CIATED WITH RECYCLIN G 30 36 HOUSE BILL 232 BEVERAGE CONTAINERS; 1 4. THE COSTS OF LANDFILL ING AND INCINERATING 2 BEVERAGE CONTAINERS THAT ARE NOT RECYCLED; AND 3 5. THE COSTS OF LITTER COLLECTION; AND 4 (III) FOR A COUNTY OR MUNIC IPAL CORPORATION THAT HAS A 5 TOTAL MAXIMUM DAILY LOAD FOR TRASH IN A WATERWAY UNDER ITS 6 JURISDICTION, THE REDUCED COSTS AN D INCREASED BENEFITS OF COMPLYING 7 WITH THE TOTAL MAXIM UM DAILY LOAD DUE TO A REDUCTION IN BEVER AGE 8 CONTAINER LITTER. 9 9–1749. 10 FUNDING FOR THE PROGRAM SHALL: 11 (1) INCLUDE: 12 (I) REDEEMABLE BEVERAGE C ONTAINER STEWARDSHIP 13 ORGANIZATION FEES COLLECTED UNDER § 9–1746 OF THIS SUBTITLE; 14 (II) REVENUE FROM THE SALE OF RAW MATERIALS; 15 (III) UNCLAIMED DEPOSITS CO LLECTED UNDER § 9–1743 OF 16 THIS SUBTITLE; 17 (IV) REGISTRATION FEES COLLECTED UNDER § 9–1744 OF THIS 18 SUBTITLE; AND 19 (V) PENALTIES COLLECTED U NDER § 9–1754 OF THIS 20 SUBTITLE; AND 21 (2) BE USED IN ACCORDANCE WITH §§ 9–1707(F), 9–1743, 9–1744, 22 AND 9–1754 OF THIS SUBTITLE. 23 9–1750. 24 (A) THERE IS A BEVERAGE CONTAINER RECYCLING REFUND GRANT 25 PROGRAM. 26 (B) THE PURPOSE OF THE GRANT PROGRAM IS TO PROVIDE FUNDING: 27 HOUSE BILL 232 37 (1) FOR AN EVALUATION OF THE INVESTMENTS AND POLI CIES 1 NECESSARY TO ENSURE THAT, BY DECEMBER 31, 2035, AT LEAST 10% OF ALL 2 BEVERAGE CONTAINERS SOLD IN THE STATE ARE RETURNED AND REFILLED; AND 3 (2) FOR PROJECTS THAT: 4 (I) INCREASE THE REUSE AN D RECYCLING OF BEVER AGE 5 CONTAINERS IN THE STATE; 6 (II) INCREASE THE AVAILABI LITY OF PUBLIC WATER 7 FOUNTAINS AND REFILL STATIONS IN THE STATE; AND 8 (III) REDUCE THE VOLUME OF LITTER FROM BEVERAGE 9 CONTAINERS IN THE STATE. 10 (C) THE DEPARTMENT SHALL ADMINISTER THE GRANT PROGRAM. 11 (D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE GRANT 12 PROGRAM SHALL BE FUNDED FROM A PORTIO N OF THE UNCLAIMED D EPOSITS 13 TRANSFERRED TO THE SEPARATE ACCOUNT ESTABLISHED UNDER § 9–1707(F)(7) OF 14 THIS SUBTITLE. 15 (2) THE GRANT PROGRAM MAY AWARD UP TO $5,000,000 IN GRANTS 16 EACH YEAR FROM THE U NCLAIMED DEPOSITS TR ANSFERRED TO THE SE PARATE 17 ACCOUNT ESTABLISHED UNDER § 9–1707(F)(7) OF THIS SUBTITLE. 18 (E) THE FOLLOWING ENTITIE S ARE ELIGIBLE FOR A GRANT UNDER THE 19 GRANT PROGRAM: 20 (1) A SCHOOL OR AN INSTITUTION OF HIGHER EDUCATION; 21 (2) A NONPROFIT ORGANIZATION; 22 (3) A COUNTY OR MUNICIPAL CORPORATION; 23 (4) A FOR–PROFIT ORGANIZATION; AND 24 (5) A PUBLIC–PRIVATE PARTNERSHIP. 25 (F) THE DEPARTMENT, IN CONSULTATION WITH THE ADVISORY COUNCIL, 26 SHALL ADOPT REGULATIONS ESTABLISHING: 27 (1) AN APPLICATION PROCES S FOR AN ENTITY TO A PPLY FO R A 28 38 HOUSE BILL 232 GRANT; 1 (2) THE CRITERIA FOR EVALUATING AND AWARDING GRANTS; 2 (3) REPORTING AND EVALUAT ION REQUIREMENTS FOR A GRANT 3 AWARDED UNDER THIS SECTION; AND 4 (4) ANY OTHER REQUIREMENT S THE DEPARTMENT DETERMINES 5 ARE NECESSARY FOR AD MINISTERING AND IMPL EMENTING GRANTS AWARDED 6 UNDER THE GRANT PROGRAM. 7 (G) THE DEPARTMENT SHALL BEGI N AWARDING GRANTS ON OR BEFORE 8 JANUARY 1, 2029. 9 9–1751. 10 IN ADDITION TO THE DU TIES AND REQUIREMENTS SPECIFIED IN THIS PART, 11 THE DEPARTMENT SHALL: 12 (1) IN CONSULTATION WITH THE ADVISORY COUNCIL: 13 (I) ESTABLISH CONVENIENCE STANDARDS FOR THE COVERAGE 14 AND AVAILABILITY OF REDEMPTION OPTIONS ACROSS THE STATE; AND 15 (II) ENSURE THE CONVENIENC E STANDARDS PROVIDE 16 ACCESSIBLE REDEMPTION OPTIONS FOR DIFFERENTLY ABLED PEOPLE AND PEOPLE 17 WHO LIVE IN RURAL AREAS OR LOW–INCOME COMMUNITIES OF COLOR; 18 (2) ESTABLISH A SYSTEM FO R LARGE ON –PREMISES SELLERS TO 19 VERIFY THE SOURCE OF THE HIGH VOLUMES OF REDE EMABLE BEVERAGE 20 CONTAINERS REDEEMED BY THE ON–PREMISES SELLER; AND 21 (3) PERIODICALLY REVIEW AVAILABLE BEVERAGE CONTAINER 22 REDEMPTION AND PROCESSING METHODS TO DETERMINE WHETHER THE TYPES OF 23 BEVERAGE CONTAINERS COVERED UNDER THE PROGRAM SHOULD BE EXPANDED. 24 9–1752. 25 (A) THERE IS A REDEEMABLE BEVERAGE CONTAINER RECYCLING 26 REFUND ADVISORY COUNCIL. 27 (B) THE ADVISORY COUNCIL CONSISTS OF T HE FOLLOWING MEMBERS , 28 DESIGNATED BY THE SECRETARY: 29 HOUSE BILL 232 39 (1) ONE MEMBER REPRESENTING RECYCLING PROCESSORS; 1 (2) ONE MEMBER REPRESENTI NG LOCAL GOVERNMENT AGENCIES 2 RESPONSIBLE FOR RECYCLING PROGRAMS; 3 (3) ONE MEMBER REPRESENTI NG GLASS MANUFACTURE RS OR A 4 GLASS MANUFACTURING TRADE ORGANIZATION; 5 (4) ONE MEMBER REPRESENTI NG ALUMINUM MANUFACT URERS O R 6 AN ALUMINUM MANUFACTURING TRADE ORGANIZATION; 7 (5) ONE MEMBER REPRESENTI NG PLASTIC MANUFACTU RERS OR A 8 PLASTIC MANUFACTURING TRADE ORGANIZATION; 9 (6) ONE MEMBER REPRESENTING BEVERAGE COMPANIES; 10 (7) ONE MEMBER REPRESENTI NG PURCHASERS OF REC YCLED 11 CONTENT; 12 (8) ONE MEMBER REPRESENTING RETAILERS; 13 (9) ONE MEMBER REPRESENTI NG RESTAURANTS OR OT HER 14 ON–PREMISES SELLERS; 15 (10) ONE MEMBER REPRESENTI NG REVERSE VENDING M ACHINE 16 BUSINESSES; 17 (11) ONE MEMBER REPRESENTI NG ACCOUNT –BASED BULK 18 PROCESSORS; 19 (12) ONE MEMBER REPRESENTI NG BUSINESSES INVOLV ED IN REUSE 20 AND REFILL SYSTEMS; 21 (13) AT LEAST ONE MEMBER R EPRESENTING AN ENVIR ONMENTAL 22 ADVOCACY ORGANIZATION; 23 (14) AT LEAST ONE MEMBER R EPRESENTING AN ENVIR ONMENTAL 24 JUSTICE ADVOCACY ORGANIZATION; AND 25 (15) AT LEAST TWO MEMBERS WHO ARE MEMBERS OF T HE GENERAL 26 PUBLIC AND RESIDE IN THE STATE. 27 40 HOUSE BILL 232 (C) THE SECRETARY SHALL DESIGNATE TWO COCHAIRS FROM AMONG THE 1 MEMBERSHIP OF THE ADVISORY COUNCIL. 2 (D) THE DEPARTMENT SHALL PROV IDE STAFF FOR THE ADVISORY 3 COUNCIL. 4 (E) A MEMBER OF THE ADVISORY COUNCIL: 5 (1) MAY NOT RECEIVE COMPE NSATION AS A MEMBER OF THE 6 ADVISORY COUNCIL; BUT 7 (2) IS ENTITLED TO REIMBU RSEMENT FOR EXPENSES UNDER THE 8 STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET. 9 (F) THE ADVISORY COUNCIL SHALL MEET: 10 (1) AT LEAST QUARTERLY EACH YEAR; AND 11 (2) AS REQUESTED BY THE DEPARTMENT. 12 (G) THE ADVISORY COUNCIL SHALL: 13 (1) ADVISE THE DEPARTMENT ON DETERMI NING WHETHER TO 14 APPROVE A BEVERAGE CONTAINER STEWARDSHIP PLAN; 15 (2) MAKE RECOMMENDATIONS TO T HE DEPARTMENT ON THE 16 IMPLEMENTATION OF APPROVED BEVERAGE CONTAINER STEWARDSHIP PLANS; 17 (3) REVIEW AND ADVISE THE DEPARTMENT ON THE ANN UAL 18 REPORTS SUBMITTED UNDER § 9–1747 OF THIS SUBTITLE; AND 19 (4) ADVISE THE DEPARTMENT ON THE IMP LEMENTATION, 20 ADMINISTRATION, AND PERFORMANCE OF THE PROGRAM. 21 9–1753. 22 (A) ON OR BEFORE JUNE 1, 2026, THE DEPARTMENT SHALL ADOP T 23 REGULATIONS TO CARRY OUT THIS PART. 24 (B) THE DEPARTMENT MAY EXPAND THE TYPES OF BEVERAGE CONTAINERS 25 COVERED UNDER THE PROGRAM BY REGULATION IF, BASED ON ITS REVIEW UNDER 26 § 9–1751(3) OF THIS SUBTITLE, THE DEPARTMENT DETERMINES THERE ARE 27 CONVENIENT REDEMPTION OPTIONS FOR THOSE BEVERAGE CONTAINERS. 28 HOUSE BILL 232 41 9–1754. 1 (A) EXCEPT AS PROVIDED IN SUBSECTIONS (C) AND (D) OF THIS SECTION, 2 THE PROVISIONS OF §§ 9–334 THROUGH 9–344 OF THIS TITLE APPLY TO ENFORCE 3 VIOLATIONS OF THIS PART. 4 (B) A PENALTY MAY NOT BE I MPOSED ON A PRODUCER FOR FAILING TO 5 PROPERLY REGISTER WITH THE DEPARTMENT UNDER § 9–1744 OF THIS SUBTITLE, 6 INCLUDING FAILING TO IDENTIFY EACH BRAND OF REDE EMABLE BEVERAGE 7 CONTAINER THAT THE P RODUCER INTENDS TO S ELL, OFFER FOR SALE , OR 8 DISTRIBUTE IN THE STATE, UNLESS: 9 (1) THE DEPARTMENT FIRST ISSU ES A WRITTEN NOTICE OF THE 10 VIOLATION TO THE PRODUCER; AND 11 (2) THE PRODUCER DOES NOT REGISTER WITHIN 90 DAYS AFTER 12 RECEIVING THE WRITTEN NOTICE. 13 (C) (1) A PERSON MAY NOT REDEE M, ATTEMPT TO REDEEM , RECEIVE, 14 STORE, TRANSPORT, DISTRIBUTE, OR OTHERWISE FACILIT ATE OR AID IN THE 15 REDEMPTION OF THE FOLLOWING MATERIALS WITH AN INTENT TO DEFRAUD: 16 (I) AN EMPTY REDEEMABLE BEVERAGE CONTAINER THAT WAS 17 SOLD IN ANOTHER STATE; 18 (II) AN EMPTY REDEEMABLE BEVERAGE CONTAINER THAT WAS 19 REJECTED FOR REDEMPTION; 20 (III) LINE BREAKAGE; 21 (IV) A PREVIOUSLY REDEEMED REDEEMABLE BEVERAGE 22 CONTAINER; OR 23 (V) ANOTHER INELIGIBLE MATERIAL. 24 (2) A PERSON MAY NOT DISPO SE OF A REDEEMED RED EEMABLE 25 BEVERAGE CONTAINER IN A LANDFILL OR AN INCINERATOR. 26 (3) THE DEPARTMENT SHALL ESTA BLISH ADMINISTRATIVE 27 PENALTIES FOR A VIOL ATION OF THIS SUBSEC TION THAT ARE BASED ON THE 28 NUMBER OF BEVERAGE CONTAINERS AND REFUND AMOUNTS INVOLVED. 29 42 HOUSE BILL 232 (D) (1) BEGINNING JANUARY 1, 2031, IF THE BEVERAGE CONTAINER 1 STEWARDSHIP ORGANIZA TION HAS NOT MET THE REDEMPTION RATES 2 ESTABLISHED IN § 9–1740 OF THIS SUBTITLE FOR THE IMMEDIATELY PRECEDING 2 3 YEARS, THE DEPARTMENT SHALL ASSESS AN ADMINISTRATIVE PE NALTY ON THE 4 BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION. 5 (2) EACH YEAR THAT THE BEVERAGE CONTAINER S TEWARDSHIP 6 ORGANIZATION DOES NOT MEET THE REDEMPTION RATES ESTABLISHED IN § 9–1740 7 OF THIS SUBTITLE IS A SEPARATE VIOLATION UNDER THIS SUBSECTION. 8 (3) AN ADMINISTRATIVE PEN ALTY ASSESSED UNDER THIS 9 SUBSECTION SHALL EQU AL THE TOTAL NUMBER OF REDEEMABLE BEVERA GE 10 CONTAINERS NEEDED TO BE REDEEMED TO MEE T THE REDEMPTION RAT ES 11 ESTABLISHED IN § 9–1740 OF THIS SUBTITLE, MINUS THE NUMBER OF REDEEMABLE 12 BEVERAGE CONTAINERS ACTUALLY REDEEMED , MULTIPLIED BY THE REFUND 13 VALUE IN EFFECT AT THE TIME THE VIOLATION OCCURRED. 14 (E) THE DEPARTMENT MAY ALTER THE ADMINISTRATIVE PENAL TIES 15 ASSESSED UNDER SUBSE CTIONS (C) AND (D) OF THIS SECTION AS N ECESSARY TO 16 ENSURE THAT THE PENA LTY AMOUNTS ASSESSED EXCEED THE COSTS OF 17 COMPLYING WITH THIS PART. 18 (F) PENALTIES COLLECTED UNDER THIS SECTION SHALL BE: 19 (1) TRANSFERRED TO THE STATE RECYCLING TRUST FUND UNDER § 20 9–1707(F) OF THIS SUBTITLE; AND 21 (2) USED ONLY TO COVER THE DEPARTMENT’S COSTS OF PLANNING, 22 IMPLEMENTING, ADMINISTERING, MONITORING, ENFORCING, AND EVALUATING 23 THE PROGRAM. 24 9–1755. 25 ANY PERSON PARTICIPATING IN A BEVERAGE CONTAINER STEWARDSHIP 26 PLAN IN ACCORDANCE W ITH THIS SUBTITLE IS IMMUNE FROM LIABILIT Y UNDER 27 STATE LAWS CONCERNING ANTITRUST AND RESTRA INT OF TRADE FOR 28 COOPERATIVE ACTIVITI ES ASSOCIATED WITH T HE COLLECTION , TRANSPORT, 29 PROCESSING, RECYCLING, REUSE, AND MANAGEMENT OF EM PTY REDEEMABLE 30 BEVERAGE CONTAINERS. 31 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 32 1, 2025. 33