Maryland Beverage Container Recycling Refund and Litter Reduction Program

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW. [Brackets] indicate matter deleted from existing law. *sb0346* SENATE BILL 346 M3 5lr1374 SB 642/24 – EEE CF HB 232 By: Senators Brooks, Gile, M. Washington, Kagan, Ellis, Muse, Rosapepe, Smith, Lewis Young, Hettleman, and Benson Introduced and read first time: January 16, 2025 Assigned to: Education, Energy, and the Environment 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 beverage 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 contractual 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 Enviro nment, 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 beverag e 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 Program to evaluate the investments and policies necessary to achieve a certain 30 2 SENATE BILL 346 performance target, increase the reuse and recycling of beverage containers in the 1 State, increase the availability of public water fountains and refill stations in the 2 State, and reduce the volume of litter from beverage containers in the State; 3 establishing the Redeemable Beverage Cont ainer Recycling Refund Advisory 4 Council to review certain reports, make certain recommendations, and advise the 5 Department on certain matters; providing immunity from liability to a certain 6 person under certain circumstances; and generally relating to the Maryland 7 Beverage Container Recycling Refund and Litter Reduction Program. 8 BY repealing and reenacting, without amendments, 9 Article – Environment 10 Section 9–1701(a) and (q) and 9–1702(a) 11 Annotated Code of Maryland 12 (2014 Replacement Volume and 2024 Supplement) 13 BY repealing and reenacting, with amendments, 14 Article – Environment 15 Section 9–1702(d) and 9–1707(f) 16 Annotated Code of Maryland 17 (2014 Replacement Volume and 2024 Supplement) 18 BY adding to 19 Article – Environment 20 Section 9 –1737 through 9 –1755 to be under the new part “Part VI. Maryland 21 Beverage Container Recycling Refund and Litter Reduction Program” 22 Annotated Code of Maryland 23 (2014 Replacement Volume and 2024 Supplement) 24 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 25 That the Laws of Maryland read as follows: 26 Article – Environment 27 9–1701. 28 (a) In this subtitle the following words have the meanings indicated. 29 (q) “Recycling” means any process in which recyclable materials are collected, 30 separated, or processed and returned to the marketplace in the form of raw materials or 31 products. 32 9–1702. 33 (a) There is an Office of Recycling created within the Department. 34 (d) The Office shall: 35 SENATE BILL 346 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 facilitate the implementation of 4 the recycling goals at the county level; 5 (3) Review all recycli ng 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 approve 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 SENATE BILL 346 [(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 an y 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 the 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 SENATE BILL 346 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 (I) UTILIZES A SYSTEM OF CUSTOMER ACCOUNTS AN D A 29 6 SENATE BILL 346 MECHANISM TO ASSOCIATE REDEEMED REDEEMABLE BEVERAGE CONTAINERS WITH 1 THE APPROPRIATE CUSTOMER ACCOUNT; 2 (II) CONSOLIDATES THE REDE EMED REDEEMABLE BEVE RAGE 3 CONTAINERS FOR BULK SORTING WHILE COLLE CTING DATA ABOUT THE 4 CONTAINERS; 5 (III) FULLY PREPARES REDEEM ED REDEEMABLE BEVERA GE 6 CONTAINERS FOR SALE TO RECYCLERS; AND 7 (IV) COLLECTS DATA TO SUPP ORT AN ACCOUNTING OF THE 8 REDEEMABLE BEVERAGE CONTAINERS, INCLUDING THE DEPOSI TS, FEES, AND 9 POUNDS OF MATERIAL PRODUCED THAT ARE ASSOCIATED WITH THE REDEEMABLE 10 BEVERAGE CONTAINERS. 11 (2) “ACCOUNT–BASED BULK PROCESSIN G PROGRAM ” INCLUDES A 12 BAG DROP PROGRAM IF THE BAG DROP PROGRAM IS A COMPONENT OF TH E 13 ACCOUNT–BASED BULK PROCESSING PROGRAM. 14 (C) “ADVISORY COUNCIL” MEANS THE REDEEMABLE BEVERAGE 15 CONTAINER RECYCLING REFUND ADVISORY COUNCIL ESTABLISHED U NDER § 16 9–1752 OF THIS SUBTITLE. 17 (D) “BAG DROP PROGRAM” MEANS A PROGRAM THAT ALLOWS A CUSTOMER 18 TO: 19 (1) DROP OFF EMPTY REDEEMABLE BEVERAGE CONTAINERS IN A BAG 20 OR OTHER RECEPTACLE AT ONE OR MORE LOCATIONS FOR A REFUND; AND 21 (2) HAVE THE CORRESPONDING REFUND PLACED INTO AN ACCOUNT 22 HELD FOR THE BENEFIT OF THE CUSTOMER IN A MANNER THAT ALLOWS T HE 23 CUSTOMER TO OBTAIN T HE REFUND OR REFUND RECEIPT WITHIN A SPECIFIED 24 NUMBER OF DAYS AFTER THE DROP–OFF. 25 (E) (1) “BEVERAGE” MEANS ANY DRINKABLE LIQUID INTENDED FOR 26 HUMAN ORAL CONSUMPTION. 27 (2) “BEVERAGE” DOES NOT INCLUDE: 28 (I) DRUGS REGULATED UNDER THE FEDERAL FOOD, DRUG, 29 AND COSMETIC ACT; AND 30 (II) INFANT FORMULA. 31 SENATE BILL 346 7 (F) (1) “BEVERAGE CONTAINER ” MEANS A BOTTLE , CAN, OR OTHER 1 CONTAINER THAT: 2 (I) HAS BEEN SEALED BY A MANUFACTURER; 3 (II) IS MADE OF GLASS, METAL, OR PLASTIC; AND 4 (III) AT THE TIME OF SALE , CONTAINS 3 LITERS OR LESS OF A 5 BEVERAGE. 6 (2) “BEVERAGE CONTAINER” DOES NOT INCLUDE: 7 (I) A CARTON; 8 (II) A POUCH; OR 9 (III) ASEPTIC PACKAGING. 10 (G) “BEVERAGE CONTAINER RE DEMPTION AND PROCESS ING METHOD ” 11 MEANS A MANUAL OR TE CHNOLOGICAL METHOD F OR PROPERLY COLLECTI NG, 12 IDENTIFYING, COUNTING, OR PROCESSING EMPTY REDEEMABLE BEVERAGE 13 CONTAINERS FOR REDEMPTION. 14 (H) “BEVERAGE CONTAINER ST EWARDSHIP ORGANIZATI ON” MEANS A 15 NONPROFIT ORGANIZATION THAT IS: 16 (1) EXEMPT FROM TAXATION UNDER § 501(C)(3) OF THE INTERNAL 17 REVENUE CODE; 18 (2) CREATED BY PRODUCERS TO IMPLEMENT A BEVER AGE 19 CONTAINER STEWARDSHIP PLAN; AND 20 (3) APPROVED BY THE DEPARTMENT IN ACCORDANCE WITH § 9–1745 21 OF THIS SUBTITLE. 22 (I) “BEVERAGE CONTAINER ST EWARDSHIP PLAN ” MEANS A PLAN 23 SUBMITTED TO THE DEPARTMENT UNDER § 9–1746 OF THIS SUBTITLE. 24 (J) “DEPOSIT INITIATOR” MEANS THE FIRST DIST RIBUTOR TO COLLECT A 25 DEPOSIT ON A BEVERAGE CONTAINER SOLD IN THE STATE. 26 (K) (1) “DISTRIBUTOR” MEANS A PERSON THAT SELLS BEVERAGES IN 27 REDEEMABLE BEVERAGE CONTAINERS TO A RETAILER IN THE STATE. 28 8 SENATE BILL 346 (2) “DISTRIBUTOR” INCLUDES A PERSON THAT MANUFACTURES AND 1 SELLS BEVERAGES IN REDEEMABLE BEVERAGE CONTAINERS TO A RETAILER IN THE 2 STATE. 3 (3) “DISTRIBUTOR” DOES NOT INCLUDE AIR LINES OR SHIPPING 4 COMPANIES THAT TRANSPORT REDEEMABLE BEVERAGE CONTAINERS. 5 (L) “GRANT PROGRAM” MEANS THE BEVERAGE CONTAINER RECYCLING 6 REFUND GRANT PROGRAM ESTABLISHED UNDER § 9–1750 OF THIS SUBTITLE. 7 (M) “LINE BREAKAGE” MEANS A BEVERAGE CONTAINER THAT: 8 (1) BECOMES DEFECTIVE OR DAMAGED DURING MANUFACTURING; 9 (2) IS NOT INTENDED TO BE SOLD; AND 10 (3) IS NOT ELIGIBLE FOR REDEMPTION. 11 (N) “MARYLAND–SPECIFIC UPC BARCODE” MEANS A UNIVERSAL PRODUCT 12 CODE THAT IS: 13 (1) UNIQUE TO BEVERAGE CONTAINERS SOLD IN THE STATE; AND 14 (2) USED TO DETER FRAUD A ND ENSURE THE LEGITI MATE 15 REDEMPTION OF REDEEMABLE BEVERAGE CONTAINERS. 16 (O) (1) “ON–PREMISES SELLER ” MEANS A PERSON THAT SELLS FILLED 17 AND UNOPENED REDEEMA BLE BEVERAGE CONTAIN ERS FOR ON –PREMISES 18 CONSUMPTION. 19 (2) “ON–PREMISES SELLER” INCLUDES: 20 (I) BARS; 21 (II) HOTELS; 22 (III) RESTAURANTS; 23 (IV) SPORTING VENUES; 24 (V) ENTERTAINMENT VENUES; AND 25 SENATE BILL 346 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 WELFARE ORGAN IZATION THAT 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 I N 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 ARE RECYCL ED 27 SHOWN AS A PERCENTAG E OF ALL NONREFILLAB LE REDEEMABLE BEVERA GE 28 CONTAINERS SOLD IN THE STATE. 29 (T) “REDEEM” MEANS THE RETURN OF AN EMPTY REDEEMABLE BEVERAGE 30 10 SENATE BILL 346 CONTAINER IN EXCHANGE FOR A REFUND, A VOUCHER FOR A REFUND, OR A CREDIT 1 TO AN ACCOUNT FOR NOT LESS THAN THE REFUND VALUE. 2 (U) “REDEEMABLE BEVERAGE C ONTAINER” MEANS A BEVERAGE 3 CONTAINER THAT, AT THE TIME OF SALE: 4 (1) CONTAINS 3 LITERS OR LESS OF A BEVERAGE; 5 (2) BEARS A UNIVERSAL PRODUCT CODE; AND 6 (3) MAY BEAR A MARYLAND–SPECIFIC UPC BARCODE FOR THE 7 PURPOSE OF ENSURING LEGITIMATE REDEMPTION AND DETERRING FRAUD. 8 (V) “REDEMPTION FACILITY” MEANS A FACILITY THAT: 9 (1) ACCEPTS EMPTY BEVERAGE CONTAINERS FROM A CONSUMER, A 10 RETAILER, OR BOTH; 11 (2) COLLECTS, SORTS, AND COUNTS EMPTY BEVERAGE CONTAINERS; 12 (3) REFUNDS THE REFUND VA LUE OF EMPTY REDEEMA BLE 13 BEVERAGE CONTAINERS IN CASH , WITH A VOUCHER, OR AS A CREDIT TO AN 14 ACCOUNT FOR NOT LESS THAN THE REFUND VALU E OF THE REDEEMABLE 15 BEVERAGE CONTAINER; AND 16 (4) IS LICENSED UNDER § 9–1742 OF THIS SUBTITLE. 17 (W) “REDEMPTION RATE ” MEANS THE PERCENTAGE OF REDEEMABLE 18 BEVERAGE CONTAINERS SOLD IN TH E STATE THAT ARE REDEEM ED FOR THE 19 DEPOSIT VALUE. 20 (X) “REFILLABLE” MEANS A BEVERAGE CONTAINER THAT IS DESIGNED AND 21 INTENDED TO BE REUSE D AS A BEVERAGE CONT AINER AFTER BEING US ED BY A 22 CONSUMER WITHOUT THE NEED FOR REMANUFACTURING. 23 (Y) (1) “RETAILER” MEANS A PERSON THAT ENGA GES IN THE SALE OF 24 REDEEMABLE BEVERAGE CONTAINERS TO A CONSUMER IN THE STATE. 25 (2) “RETAILER” INCLUDES A PERSON THAT ENGAGES IN THE SALE OF 26 REDEEMABLE BEVERAGE CONTAINERS: 27 (I) THROUGH A VENDING MACHINE; OR 28 SENATE BILL 346 11 (II) ONLINE FOR HOME OR OFFICE DELIVERY. 1 (Z) “REVERSE VENDING MACHINE” MEANS AN AUTOMATED DEVICE THAT: 2 (1) ACCEPTS ONE OR MORE T YPES OF EMPTY REDEEM ABLE 3 BEVERAGE CONTAINERS; 4 (2) USES A LASER SCANNER , AN OPTICAL SENSOR , A 5 MICROPROCESSOR, OR OTHER TECHNOLOGY TO ACCURATE LY RECOGNIZE 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 A T 28 LEAST 90% FOR THE APPROXIMATEL Y 5,500,000,000 SINGLE–USE BEVERAGE 29 12 SENATE BILL 346 CONTAINERS SOLD ANNUALLY IN THE STATE; 1 (2) PROVIDE A SOURCE OF HIGH–QUALITY, FOOD–GRADE MATERIALS 2 FOR USE AS RECYCLED CONTENT IN BEVERAGE AND FOOD CONTAINERS; 3 (3) REDUCE THE VOLUME OF BEVERAGE CONTAINERS THAT ARE 4 LANDFILLED OR INCINERATED IN THE STATE; 5 (4) REDUCE THE COSTS OF L ITTER AND BEVERAGE C ONTAINER 6 COLLECTION, RECYCLING, AND DISPOSAL INCURRE D BY TAXPAYERS , COUNTIES, 7 AND MUNICIPAL CORPOR ATIONS BY MAKING PRO DUCERS OF BEVERAGE 8 CONTAINERS RESPONSIB LE FOR THE RECOVERY , RECYCLING, AND REUSE OF 9 BEVERAGE CONTAINERS; 10 (5) PROVIDE INCENTIVES FO R INCREASING THE US E OF REUSABLE 11 AND REFILLABLE BEVERAGE CONTAINERS; AND 12 (6) REDUCE GREENHOUSE GAS EMISSIONS ASSOCIATED WITH THE 13 PRODUCTION, TRANSPORTATION, PROCESSING, AND WASTE DISPOSAL O F 14 SINGLE–USE BEVERAGE CONTAINERS SOLD IN THE STATE. 15 9–1739. 16 THERE IS A MARYLAND BEVERAGE CONTAINER RECYCLING REFUND AND 17 LITTER REDUCTION PROGRAM IN THE DEPARTMENT. 18 9–1740. 19 PERFORMANCE TARGETS FOR THE PROGRAM ARE AS FOLLOWS: 20 (1) A 70% REDEMPTION RATE BY DECEMBER 31, 2029; 21 (2) A 90% REDEMPTION RATE BY DECEMBER 31, 2032; 22 (3) BY DECEMBER 31, 2027, ATTAINMENT OF ALL CO NVENIENCE 23 STANDARDS IDENTIFIED BY THE DEPARTMENT UNDER § 9–1751 OF THIS SUBTITLE; 24 AND 25 (4) BY DECEMBER 31, 2035, AT LEAST 10% OF ALL BEVERAGE 26 CONTAINERS SOLD IN THE STATE ARE RETURNED AND REFILLED. 27 9–1741. 28 SENATE BILL 346 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 WITH 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 THAT 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 (2) THE RETAIL PRICE OF A FULL REDEEMABLE BEVE RAGE 31 14 SENATE BILL 346 CONTAINER SOLD BY AN ON–PREMISES SELLER MAY NOT INCLUDE THE REFU ND 1 VALUE OF THE REDEEMABLE BEVERAGE CONTAINER. 2 9–1742. 3 (A) (1) THE PROGRAM SHALL PROVIDE A RANGE OF OPTIONS F OR 4 CUSTOMERS TO CONVENI ENTLY REDEEM EMPTY R EDEEMABLE BEVERAGE 5 CONTAINERS FOR THE FULL REFUND VALUE, INCLUDING: 6 (I) AT A RETAILER ’S PLACE OF BUSINESS THROUGH DIRECT 7 TAKE–BACK BY THE RETAILER , REVERSE VENDING MACH INES, A BAG DROP 8 PROGRAM, OR OTHER REDEMPTION METHODS; 9 (II) DEDICATED AND CONVENI ENTLY LOCATED REDEMP TION 10 FACILITIES OPERATED BY RETAILERS , PUBLIC ENTITIES , OR THE BEVERAGE 11 CONTAINER STEWARDSHIP ORGANIZATION; AND 12 (III) PLACING REDEEMABLE BE VERAGE CONTAINER 13 REDEMPTION AND PROCESSING METHODS, SUCH AS REVERSE VENDING MACHINES, 14 BAG DROP PROGRAMS , AND ACCOUNT –BASED BULK PROCESSIN G PROGRAMS , IN 15 AREAS: 16 1. WITH A HIGH NUMBER OF PEDESTRIANS; AND 17 2. WHERE INDIVIDUALS PURC HASE OR USE BEVERAGE 18 CONTAINERS. 19 (2) THE PROGRAM SHALL PROVIDE A RANGE OF OPTIONS F OR 20 ON–PREMISES SELLERS TO CONVENIENTLY REDEEM EMPTY REDEEMABLE 21 BEVERAGE CONTAINERS FOR THE FULL REFUND VALUE, INCLUDING: 22 (I) AN ACCOUNT –BASED REF UND ISSUED BY THE BE VERAGE 23 CONTAINER STEWARDSHI P ORGANIZATION OR IT S AGENTS FOLLOWING T HE 24 COLLECTION OF EMPTY REDEEMABLE BEVERAGE CONTAINERS BY THE BE VERAGE 25 CONTAINER STEWARDSHIP ORGANIZATION OR ITS AGENTS FROM THE ON–PREMISES 26 SELLER; OR 27 (II) AN ACCOUNT–BASED REFUND ISSUED BY THE OPERATOR OF 28 A BAG DROP PROGRAM. 29 (B) (1) A PERSON SHALL APPLY TO THE DEPARTMENT FOR A LICENSE TO 30 OPERATE A REDEMPTION FACILITY IN THE STATE. 31 SENATE BILL 346 15 (2) THE DEPARTMENT SHALL DEVE LOP STANDARDS AND A 1 LICENSING PROCESS FO R THE ESTABLISHMENT AND OPERATION OF REDEMPTIO N 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 T O 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 R ETAILER 18 SHALL: 19 (I) ESTABLISH AND MAINTAI N A DEDICATED AREA A T 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 RED EMPTION 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 (I) SUPPLEMENTING THE MANUAL COLLECTION AND STORING 30 16 SENATE BILL 346 OF REDEEMED REDEEMAB LE BEVERAGE CONTAINE RS WITH A REVERSE VE NDING 1 MACHINE, A BAG DROP PROGRAM , OR OTHER COUNTING AN D SORTING METHODS; 2 AND 3 (II) GROUPING BEVERAGE CON TAINER REDEMPTION AN D 4 PROCESSING METHODS WITH THOSE OF OTHER RETAILERS IF: 5 1. THE BEVERAGE CONTAINE R STEWARDSHIP 6 ORGANIZATION APPROVES THE PROPOSAL; AND 7 2. THE RETAILERS PARTICI PATING IN THE GROUPE D 8 METHODS PROVIDE CONS ISTENT SERVICE , MARKETING, AND SITE REDEMPTION 9 LOCATIONS THAT COMPLY WITH DISTANCE PROVIS IONS DETERMINED BY T HE 10 DEPARTMENT. 11 (4) A RETAILER WITHIN AN A REA THAT MEETS THE C ONVENIENCE 12 STANDARDS ESTABLISHE D BY THE DEPARTMENT UNDER § 9–1751 OF THIS 13 SUBTITLE MAY BE EXEMPT FROM THE REQUIREMENTS OF THIS SUBSECTION IF THE 14 RETAILER: 15 (I) IS LOCATED IN CLOSE P ROXIMITY TO A REDEMP TION 16 FACILITY IN THAT AREA; AND 17 (II) SHARES THE COST OF TH E OPERATION OF THE 18 REDEMPTION FACILITY WITH THE BEVERAGE CO NTAINER STEWARDSHIP 19 ORGANIZATION. 20 (5) THE DEPARTMENT MAY: 21 (I) SET STANDARDS FOR THE NUMBER OF REVERSE VE NDING 22 MACHINES REQUIRED FOR RETAILERS LOCATED IN UNDERSERVED COMMUNITIES; 23 AND 24 (II) ESTABLISH A CAP FOR T HE NUMBER OF EMPTY 25 REDEEMABLE BEVERAGE CONTAINERS THAT MAY BE REDEEMED PER VISI T AT 26 SMALL RETAILERS. 27 (F) SUBJECT TO SUBSECTION (D) OF THIS SECTION, A RETAILER WITH LESS 28 THAN 3,000 SQUARE FEET OF SALES FLOOR SPACE OR LESS THAN 150 SQUARE FEET 29 OF SHELF SPACE DEDIC ATED TO THE DISPLAY OF REDEEMABLE BEVERA GE 30 CONTAINERS SHALL: 31 (1) PROVIDE ON–SITE CASH REFUNDS FOR THE REDEMPTION OF ANY 32 SENATE BILL 346 17 EMPTY REDEEMABLE BEVERAGE CONTAINER THAT IS OF THE SAME MATERIAL AND 1 SIZE AS THOSE THAT A RE SOLD BY THE RETAI LER IF THE EMPTY RED EEMABLE 2 BEVERAGE CONTAINER B EING REDEEMED IS NOT ACCEPTED BY A REVERS E 3 VENDING MACHINE; AND 4 (2) POST AT THE RETAILER ’S ENTRANCE THE ADDRE SS OF THE 5 NEAREST REVERSE VEND ING MACHINE OR OTHER REDEMPTION METHOD TH AT 6 PROVIDES AN IMMEDIAT E CASH REFUND FOR RE DEEMING EMPTY REDEEM ABLE 7 BEVERAGE CONTAINERS. 8 (G) (1) A PERSON THAT PROVIDES A REVERSE VENDING MACHINE FOR 9 THE REDEMPTION OF EMPTY REDEEMABLE BEVERAGE CONTAINERS SHALL: 10 (I) PROVIDE AN OPTION FOR REDEEMING EMPTY REDEEMABLE 11 BEVERAGE CONTAINERS WHEN THE REVERSE VENDING MACHINE IS FULL, BROKEN, 12 OR UNDER REPAIR; AND 13 (II) PROVIDE AN OPTION FOR REDEEMING ANY EMPTY 14 REDEEMABLE BEVERAGE CONTAINERS NOT ACCEPTED BY THE REVERSE V ENDING 15 MACHINE. 16 (2) (I) THE DEPARTMENT SHALL ESTA BLISH A PROCESS FOR 17 SUBMITTING FOR REVIE W, APPROVING, AND MONITORING AN AC COUNT–BASED 18 BULK PROCESSING PROGRAM THAT: 19 1. ENSURES THAT THE PROG RAM WILL ACCURATELY 20 REFUND DEPOSITS AND MAINTAIN AND REPORT DATA FROM EACH TRANS ACTION; 21 AND 22 2. IDENTIFIES THE INFORM ATION THAT MUST BE 23 SUBMITTED TO THE DEPARTMENT FOR APPROVAL OF THE PROGRAM. 24 (II) A PERSON THAT INTENDS TO PROVIDE AN ACCOUNT–BASED 25 BULK PROCESSING PROG RAM FOR THE REDEMPTI ON OF EMPTY REDEEMAB LE 26 BEVERAGE CONTAINERS SHALL SUBMIT INFORMA TION IDENTIFIED UNDE R 27 SUBPARAGRAPH (I) OF THIS PARAGRAPH TO THE DEPARTMENT FOR APPROVAL OF 28 THE PROGRAM. 29 (H) REFUNDS PROVIDED FOR AN EMPTY REDEEMED RED EEMABLE 30 BEVERAGE CONTAINER SHALL BE: 31 (1) IN CASH; 32 18 SENATE BILL 346 (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 R EQUIREMENT THAT OTHE R 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 DA YS, 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 HANDLI NG OF EACH EMPTY RED EEMABLE BEVERAGE CONTAINER 15 REDEEMED. 16 (2) (I) THE DEPARTMENT SHALL SET A HANDLING FEE TO BE PAID 17 BY THE BEVERAGE CONT AINER STEWARDSHIP OR GANIZATION OR ITS AG ENT TO A 18 REDEMPTION FACILITY, RETAILER, OR ANY OTHER PERSON THAT ACCEPTS 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 BE VERAGE CONTAINERS FO R RECYCLING , 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 R EDEEMABLE 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 (II) THE HANDLING OF EACH EMPTY REDEEMABLE BEV ERAGE 33 SENATE BILL 346 19 CONTAINER REDEEMED. 1 (2) (I) THE DEPARTMENT SHALL SET A MATERIAL HANDLING FEE 2 TO BE PAID BY THE BE VERAGE CONTAINER STE WARDSHIP ORGANIZATION OR ITS 3 AGENT TO AN ON –PREMISES SELLER THAT PROVIDES EMPTY REDEEMABLE 4 BEVERAGE CONTAINERS FOR REDEMPTION. 5 (II) THE HANDLING FEE SHAL L BE SET AT AN AMOUN T THAT 6 COVERS THE COSTS OF TEMPORARY STORAGE , PRELIMINARY SORTING , AND 7 PREPARING EACH REDEE MABLE BEVERAGE CONTA INER REDEEMED FOR 8 COLLECTION. 9 (3) THE BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION OR ITS 10 AGENT SHALL PROVIDE TO AN ON–PREMISES SELLER: 11 (I) ANY RECEPTACLES OR BA GS REQUIRED FOR THE 12 PRELIMINARY SORTING OF REDEEMED REDEEMAB LE BEVERAGE CONTAINE RS BY 13 THE ON–PREMISES SELLER; AND 14 (II) ANY LA BELS NECESSARY FOR A TTRIBUTING THE 15 REDEEMED REDEEMABLE BEVERAGE CONTAINERS TO THE ON–PREMISES SELLER. 16 (K) A DEPOSIT INITIATOR TH AT COLLECTS A DEPOSI T FROM A RETAILER , 17 REDEMPTION FACILITY , OR ANY OTHER PERSON THAT ACCEPTS REDEEMA BLE 18 BEVERAGE CONTAINERS FOR REDEMPTION SHALL ACCOUNT FOR ANY DEPOSITS IN 19 ACCORDANCE WITH § 9–1743 OF THIS SUBTITLE. 20 (L) REDEEMED EMPTY REDEEM ABLE BEVERAGE CONTAI NERS SHALL BE 21 COLLECTED FOR RETURN TO THE BEVERAGE CONT AINER STEWARDSHIP 22 ORGANIZATION FOR SALE AS SCRAP MATERIAL TO FINANCE THE PROGRAM. 23 9–1743. 24 (A) A DEPOSIT INITIATOR SH ALL DEPOSIT ANY DEPO SITS COLLECTED 25 UNDER § 9–1742 OF THIS SUBTITLE INTO A DEPOSIT COLLECTION ACCOUNT THAT IS 26 MAINTAINED SEPARATELY FROM ALL OTHER REVENUES. 27 (B) THE FUNDS IN THE DEPOSIT COLLECTION ACCOUNT MAY BE USED ONLY 28 TO PAY THE REFUND VA LUE OF AN EMPTY REDE EMABLE BEVERAGE CONT AINER 29 BEING REDEEMED. 30 (C) A DEPOSIT INITIATOR SH ALL REPORT TO THE BE VERAGE CONTAINER 31 STEWARDSHIP ORGANIZA TION, AT A FREQUENCY DETER MINED BY THE 32 20 SENATE BILL 346 DEPARTMENT, THE FOLLOWING INFORMATION: 1 (1) THE NUMBER OF REDEEMA BLE BEVERAGE CONTAIN ERS SOLD 2 AND EMPTY REDEEMABLE BEVERAGE CONTAINERS REDEEMED SINCE THE L AST 3 REPORT WAS SUBMITTED TO THE BEVERAGE CONT AINER STEWARDSHIP 4 ORGANIZATION UNDER THIS SUBSECTION; 5 (2) THE FUNDS DEPOSITE D INTO THE DEPOSIT C OLLECTION 6 ACCOUNT AND THE REFU NDS ISSUED FROM THE DEPOSIT COLLECTION A CCOUNT 7 SINCE THE LAST REPOR T WAS SUBMITTED TO T HE BEVERAGE CONTAINE R 8 STEWARDSHIP ORGANIZATION UNDER THIS SUBSECTION; 9 (3) ANY INCOME EARNED ON THE FUNDS IN THE DEP OSIT 10 COLLECTION ACCOUNT S INCE THE LAST REPORT WAS SUBMITTED TO THE 11 BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION UNDER THIS SUBSECTION; 12 (4) THE BALANCE OF THE DEPOSIT COLLECTION ACCOUNT; AND 13 (5) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT. 14 (D) (1) THE DEPARTMENT SHALL DETE RMINE THE POINT AT W HICH A 15 DEPOSIT BECOMES AN UNCLAIMED DEPOSIT. 16 (2) UNCLAIMED DEPOSITS AR E CALCULATED AS THE AMOUNT OF 17 FUNDS TRANSFERRED TO A DEPOSIT COLLECTION ACCOUNT THAT ARE IN EXCESS 18 OF THE SUM OF: 19 (I) ANY INTEREST EARNINGS ON THE DEPO SIT COLLECTION 20 ACCOUNT DURING THE T IME FOR WHICH UNCLAI MED DEPOSITS ARE BEI NG 21 CALCULATED; AND 22 (II) THE TOTAL AMOUNT OF THE REFUND VALUE RECEIVED FOR 23 THE EMPTY REDEEMABLE BEVERAGE CONTAINERS REDEEMED DURING THE TIME 24 FOR WHICH THE UNCLAIMED DEPOSITS ARE BEING CALCULATED. 25 (3) A DEPOSIT INITIATOR SH ALL TRANSFER ALL UNC LAIMED 26 DEPOSITS TO THE BEVE RAGE CONTAINER STEWA RDSHIP ORGANIZATION AT A 27 FREQUENCY DETERMINED BY THE DEPARTMENT. 28 (4) THE BEVERAGE CONTAINE R STEWARDSHIP ORGANI ZATION 29 SHALL: 30 (I) ESTABLISH A RESERVE A CCOUNT TO MANAGE ALL 31 SENATE BILL 346 21 UNCLAIMED DEPOSITS; AND 1 (II) TRANSFER 10% OF ALL UNCLAIMED DEP OSITS TO THE 2 DEPARTMENT WITH A FREQUENCY DETERMINED BY THE DEPARTMENT. 3 (5) THE BEVERAGE CONTAINE R STEWARDSHIP ORGANI ZATION 4 SHALL U SE THE FUNDS IN THE RESERVE ACCOUNT ESTA BLISHED UNDER 5 PARAGRAPH (4) OF THIS SUBSECTION TO: 6 (I) ACHIEVE THE INTENT OF THE GENERAL ASSEMBLY STATED 7 IN § 9–1738 OF THIS SUBTITLE; AND 8 (II) MEET OR EXCEED THE PE RFORMANCE TARGETS 9 ESTABLISHED IN § 9–1740 OF THIS SUBTITLE. 10 (6) (I) THE DEPARTMENT SHALL TRAN SFER ANY UNCLAIMED 11 DEPOSITS RECEIVED UN DER THIS PARAGRAPH T O THE STATE RECYCLING TRUST 12 FUND UNDER § 9–1707(F) OF THIS SUBTITLE. 13 (II) THE UNCLAIMED DEPOSIT S TRANSFERRED TO THE STATE 14 RECYCLING TRUST FUND MAY BE USED ONLY FOR THE COSTS OF ADM INISTERING 15 AND FINANCING THE GRANT PROGRAM UNDER § 9–1750 OF THIS SUBTITLE. 16 9–1744. 17 (A) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, THIS SECTION 18 APPLIES TO A PRODUCE R THAT SELLS , OFFERS FOR SALE , OR DISTRIBUT ES 19 REDEEMABLE BEVERAGE CONTAINERS IN THE STATE. 20 (2) (I) IF THE BEVERAGE CONTA INER IS SOLD UNDER T HE 21 PRODUCER’S OWN BRAND OR LACKS IDENTIFICATION OF A BRAND, THE PRODUCER 22 IS THE PERSON THAT MANUFACTURES THE REDEEMABLE BEVERAGE CONTAINER. 23 (II) IF THE REDEEMABLE BEVERAGE CONTAINER IS 24 MANUFACTURED BY A PERSON OTHER THAN THE BRAND OWNER, THE PRODUCER IS 25 THE PERSON THAT IS THE LICENSEE OF A BRA ND OR TRADEMARK UNDER WHICH A 26 REDEEMABLE BEVERAGE CONTAINER IS SOLD , OFFERED FOR SALE , OR 27 DISTRIBUTED IN THE STATE, WHETHER OR NOT THE TRADEMARK IS REGISTERED IN 28 THE STATE, UNLESS ANOTHER RESPO NSIBLE PERSON HAS CO NTRACTUALLY 29 ACCEPTED RESPONSIBILITY AS THE PRODUCER AND HAS JOINED THE B EVERAGE 30 CONTAINER STEWARDSHIP ORGANIZATION AS TH E PRODUCER RESPONSIB LE FOR 31 THE REDEEMABLE BEVERAGE CONTAINER UNDER THIS SECTION. 32 22 SENATE BILL 346 (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 REGISTRA TION FEE UNDER SUBSE CTION (F) OF 14 THIS SECTION; AND 15 (3) IS PART OF THE BEVERA GE CONTAINER STEWARD SHIP 16 ORGANIZATION THAT: 17 (I) HAS BEEN APPROVED BY THE DEPARTMENT UNDER § 18 9–1745 OF THIS SUBTITLE; AND 19 (II) HAS A BEVERAG E CONTAINER STEWARDS HIP 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 T HE 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 PAR TICIPATING IN THE BE VERAGE CONTAINER 30 STEWARDSHIP ORGANIZATION TO PROVIDE THE FOLLOWING INFORMATION: 31 SENATE BILL 346 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 EAC H BRAND OF REDEEMABL E 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 ESTABLISHED 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 (I) WHEN TAKEN IN COMBINA TION WITH ANTICIPATED 31 24 SENATE BILL 346 REVENUES FROM PENALTIES COLLECTED UNDER § 9–1754 OF THIS SUBTITLE, WILL 1 PRODUCE FUNDS SUFFICIENT TO COVER THE DEPARTMENT’S ESTIMATED COSTS OF 2 PLANNING, IMPLEMENTING, ADMINISTERING, MONITORING, ENFORCING, AND 3 EVALUATING THE PROGRAM FOR THE UPCOMING YEAR; 4 (II) FOR THE FIRST YEAR OF THE PROGRAM DURING WHICH 5 REGISTRATION FEES ARE COLLECTED, SHALL COVER THE START–UP COSTS OF THE 6 PROGRAM THAT WERE INCURRED BY THE DEPARTMENT AND FINANCED FROM THE 7 GENERAL FUND; AND 8 (III) IS PROPORTIONAL TO A PRODUCER’S SHARE OF THE TOTAL 9 NUMBER OF REDEEMABLE BEVERAGE CONTAINERS SOLD IN THE STATE FOR THE 10 IMMEDIATELY PRECEDING CALENDAR YEAR. 11 (3) THE DEPARTMENT SHALL: 12 (I) IF THE REVENUES FROM THE REGISTRATION FEE S IN THE 13 IMMEDIATELY PRECEDIN G YEAR EXCEED THE COSTS SPECIFIED IN PARAGRAPH 14 (2)(I) OF THIS SUBSECTION, CARRY THE EXCESS REV ENUES FORWARD TO RED UCE 15 REGISTRATION FEES THE FOLLOWING YEAR; AND 16 (II) IF THE REVENUES FROM THE REGISTRATION FEE S IN THE 17 IMMEDIATELY PRECEDIN G YEAR DO NOT COVER THE COSTS SPECIFIED IN 18 PARAGRAPH (2)(I) OF THIS SUBSECTION , ADJUST REGISTRATION FEES FOR THE 19 FOLLOWING YEAR TO AN AMOUNT THAT WILL COV ER THE DEPARTMENT’S ACTUAL 20 COSTS FROM THE IMMEDIATELY PRECEDING YEAR. 21 (4) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 22 PARAGRAPH, REGISTRATION FEES COLLECTED UNDER THIS SUBSECTION SHALL BE: 23 1. TRANSFERRED TO THE STATE RECYCLING TRUST 24 FUND UNDER § 9–1707(F) OF THIS SUBTITLE; AND 25 2. USED ONLY TO COVER THE DEPARTMENT’S COSTS OF 26 PLANNING, IMPLEMENTING, ADMINISTERING, MONITORING, ENFORCING, AND 27 EVALUATING THE PROGRAM. 28 (II) THE PORTION OF THE REGISTRATION FEES THAT COVERED 29 THE START–UP COSTS OF THE PROGRAM AND WERE FINANCED FROM THE GENERAL 30 FUND DURING THE FIRST YEAR OF THE PROGRAM FOR WHICH REGISTRATION FEES 31 ARE COLLECTED IN ACCORDANCE W ITH PARAGRAPH (2)(II) OF THIS SUBSECTION 32 SHALL BE DEPOSITED INTO THE GENERAL FUND. 33 SENATE BILL 346 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 BEVERA GE 13 CONTAINER STEWARDSHIP ORGANIZATION AND W ILL TAKE INTO CONSID ERATION 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 T HE 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 (II) FAILED TO IMPLEMENT A ND ADMINISTER AN APP ROVED 32 26 SENATE BILL 346 BEVERAGE CONTAINER S TEWARDSHIP PLAN IN A CCORDANCE WITH § 9–1746 OF 1 THIS SUBTITLE. 2 (2) IF THE DEPARTMENT REVOKES TH E APPROVAL OF THE 3 BEVERAGE CONTAINER S TEWARDSHIP ORGANIZATION UNDER PARAGRAPH (1) OF 4 THIS SUBSECTION: 5 (I) THE DEPARTMENT MAY APPROV E ONE OR MORE 6 ADDITIONAL BEVERAGE CONTAINER STEWARDSHIP ORGANIZATIONS TO CARRY OUT 7 THE RESPONSIBILITIES OF THE BEVERAGE CONT AINER STEWARDSHIP 8 ORGANIZATION THAT WA S REVOKED , SUBJECT TO ONE OR MO RE OF THE 9 ADDITIONAL BEVERAGE CONTAINER STEWARDSHIP ORGANIZATIONS MEETING THE 10 REQUIREMENTS SPECIFIED IN SUBSECTION (A) OF THIS SECTION; AND 11 (II) THE TRUSTEE OR ESCROW AGENT OF THE TRUST F UND OR 12 ESCROW ACCOUNT ESTAB LISHED IN THE BEVERA GE CONTAINER STEWARD SHIP 13 PLAN UNDER § 9–1746(A)(3)(VI) OF THIS SUBTITLE SHALL: 14 1. RECEIVE ALL PAYMENTS DIRECTLY FROM 15 PRODUCERS THAT WOULD HAVE BEEN PAID TO TH E BEVERAGE CONTAINER 16 STEWARDSHIP ORGANIZATION; 17 2. DEPOSIT THE PAYMENTS RECEIVED UNDER ITEM 1 OF 18 THIS ITEM INTO THE TRUST FUND OR ESCROW ACCOUNT; AND 19 3. MAKE PAYMENTS FROM THE TRUST FUND OR ESCROW 20 ACCOUNT AS DIRECTED BY THE DEPARTMENT TO IMPLEMENT THE REQUIREMENTS 21 OF THIS PART. 22 9–1746. 23 (A) (1) ON OR BEFORE MARCH 1, 2027, THE BEVERAGE CONTAIN ER 24 STEWARDSHIP OR GANIZATION SHALL SUB MIT A BEVERAGE CONTA INER 25 STEWARDSHIP PLAN TO THE DEPARTMENT. 26 (2) A BEVERAGE CONTAINER STEWARDSHIP PLAN SHALL: 27 (I) IDENTIFY AND INCLUDE THE CONTACT INFORMATION FOR 28 EACH PRODUCER INTENDED TO BE COVERED UNDER THE PLAN; 29 (II) IDENTIFY EACH BRAND O F REDEEMABLE BEVERAG E 30 CONTAINER INTENDED T O BE SOLD UNDER THE PLAN, INCLUDING THE SIZE A ND 31 MATERIAL OF THE REDE EMABLE BEVERAGE CONT AINERS FOR EACH BRAN D AND 32 SENATE BILL 346 27 WHETHER THE REDEEMABLE BEVERAGE CONTAINERS ARE REFILLABLE; 1 (III) DESCRIBE: 2 1. THE FINANCING INFORMA TION SPECIFIED IN 3 PARAGRAPH (3) OF THIS SUBSECTION; 4 2. HOW THE PERFORMANCE T ARGETS WILL BE MET O R 5 EXCEEDED FOR THE 5–YEAR PERIOD FOLLOWING THE YEAR IN WHICH THE PLAN IS 6 APPROVED; 7 3. HOW STAKEHOLDER COMME NTS WERE CONS IDERED 8 AND REFLECTED IN THE DEVELOPMENT OF THE P LAN, INCLUDING THE ROLE O F 9 RETAILERS, DISTRIBUTORS, AND LOCAL GOVERNMENTS IN PLAN IMPLEMENTATION; 10 4. THE ADMINISTRATION AN D IMPLEMENTATION OF 11 THE PLAN , INCLUDING ANY STAFFI NG THAT WILL BE NECE SSARY FOR T HESE 12 PURPOSES; 13 5. THE ACTIONS THAT HAVE BEEN TAKEN AND THAT 14 WILL BE TAKEN FOR PU BLIC OUTREACH , EDUCATION, AND COMMUNICATION , 15 INCLUDING MESSAGING AND IDENTIFICATION OF TARGET AUDIENCES; AND 16 6. THE ANTICIPATED INVES TMENTS THAT WILL BE 17 MADE TO IMPRO VE THE REUSE OF BEVE RAGE CONTAINERS , INCLUDING THE 18 SOURCE OF FUNDING FOR THE INVESTMENTS; 19 (IV) LIST THE STAKEHOLDERS CONSULTED IN DEVELOPING THE 20 PLAN; 21 (V) PROVIDE THE ANTICIPATED COSTS OF IMPLEMENTING THE 22 PLAN FOR 5 YEARS, BROKEN DOWN BY YEAR; 23 (VI) INCLUDE A CLOSURE AND TRANSFER PLAN FOR HANDLING 24 THE AFFAIRS OF THE B EVERAGE CONTAINER ST EWARDSHIP ORGANIZATION THAT 25 ENSURES THAT EACH PRODUCER INTENDED TO BE COVERED UNDER THE BEVERAGE 26 CONTAINER STEWARDSHIP PLAN CAN FULFILL T HE PRODUCER’S OBLIGATIONS IN 27 THE EVENT THAT THE B EVERAGE CONTAINER ST EWARDSHIP ORGANIZATI ON 28 DISSOLVES OR HAS ITS APPROVAL REVOKED UND ER § 9–1745 OF THIS SUBTITLE ; 29 AND 30 (VII) INCLUDE ANY OTHER INF ORMATION REQUESTED B Y THE 31 DEPARTMENT. 32 28 SENATE BILL 346 (3) THE FINANCING INFORMA TION INCLUDED IN A BEVERAGE 1 CONTAINER STEWARDSHIP PLAN SHALL: 2 (I) EXPLAIN THE FINANCING FOR DIRECT INVESTMEN TS OR 3 REIMBURSEMENTS THAT WILL IMPROVE INFRAST RUCTURE IN A MANNER THAT 4 SUPPORTS REDEMPTION SERVICES AND TECHNOLOGIES; 5 (II) ESTABLISH A FEE STRUC TURE IN ACCOR DANCE WITH 6 PARAGRAPH (4) OF THIS SUBSECTION F OR PRODUCERS PARTICI PATING IN THE 7 BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION; 8 (III) DESCRIBE THE COSTS OF MEETING THE PERFORMA NCE 9 TARGETS; 10 (IV) DESCRIBE THE INCENTIV ES USED TO ENCOURAGE 11 PRODUCERS TO: 12 1. INVEST IN REUSABLE AN D REFILLABLE BEVERAG E 13 CONTAINER SYSTEMS; AND 14 2. REDESIGN BEVERAGE CON TAINERS TO BE EASIER 15 AND LESS COSTLY TO RECYCLE; 16 (V) CREATE INCENTIVES FOR PRODUCERS TO USE A 17 MARYLAND–SPECIFIC UPC BARCODE TO REDUCE FRAUDULENT REDEMPTION; 18 (VI) ESTABLISH A TRUST FUND OR AN ESCROW ACCOUNT IN THE 19 STATE INTO WHICH THE BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION 20 SHALL DEPOSIT ALL UN EXPENDED FUNDS FOR U SE IN ACCORDANCE WIT H THIS 21 SECTION IN THE EVENT THAT THE BEVERAGE CO NTAINER STEWARDSH IP 22 ORGANIZATION DISSOLVES OR HAS ITS APPROVAL REVOKED BY THE DEPARTMENT 23 UNDER § 9–1745 OF THIS SUBTITLE; AND 24 (VII) MEET ANY OTHER REQUIR EMENTS ESTABLISHED B Y THE 25 DEPARTMENT. 26 (4) (I) THE FEE STRUCTURE REQUIRED UNDER PARAGRAPH (3) OF 27 THIS SUBSECTION FOR PRODUCERS PARTICIPATING IN THE BEVERAGE CONTAINER 28 STEWARDSHIP ORGANIZATION SHALL BE: 29 1. SET IN A MANNER THAT COVERS THE COSTS OF 30 ADMINISTERING THE BE VERAGE CONTAINER STE WARDSHIP ORGANIZATIO N AND 31 SENATE BILL 346 29 IMPLEMENTING THE BEVERAGE CONTAINER STEWARDSHIP PLAN; AND 1 2. BASED ON: 2 A. THE COSTS ASSOCIATED WITH TRANSPORTING , 3 COLLECTING, AND PROCESSING EACH TYPE OF REDEEMABLE B EVERAGE 4 CONTAINER MATERIAL; 5 B. WHETHER A PRODUCER ’S REDEEMABLE BEVERAG E 6 CONTAINERS ARE REFILLABLE; 7 C. WHETHER A PRODUCER ’S EMPTY REDEEMABLE 8 BEVERAGE CONTAINERS ARE EASY TO RECYCLE; 9 D. WHETHER A PRODUCER ’S REDEEMABLE BEVERAG E 10 CONTAINERS HAVE A MARYLAND–SPECIFIC UPC BARCODE; 11 E. A PRODUCER’S PORTION , BY MATERIAL TYPE , OF 12 REDEEMABLE BEVERAGE CONTAINERS SOLD IN THE STATE DURING THE PREVIOUS 13 CALENDAR YEAR; AND 14 F. ANY OTHER FACTOR THE DEPARTMENT DETERMINES 15 IS NECESSARY TO SUPPORT THE PROGRAM. 16 (II) 1. EXCEPT AS PROVIDED IN § 9–1745(C)(2) OF THIS 17 SUBTITLE, A PRODUCER PARTICIPA TING IN THE BEVERAGE CONTAINER 18 STEWARDSHIP ORGANIZATION SHALL P AY THE FEE ESTABLISH ED UNDER 19 PARAGRAPH (3) OF THIS SUBSECTION TO THE BEVERAGE CONTAINER STEWARDSHIP 20 ORGANIZATION. 21 2. THE BEVERAGE CONTAINE R STEWARDSHIP 22 ORGANIZATION SHALL DEPOSIT FEES RECEIVED UNDER THIS SUBPARAGRAPH TO AN 23 ACCOUNT HELD BY THE BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION. 24 3. THE BEVERAGE CONTAINE R STEWARDSHIP 25 ORGANIZATION MAY USE THE FEES RECEIVED UN DER THIS SUBPARAGRAP H ONLY 26 FOR IMPLEMENTING THE BEVERAGE CONTAINER STEWARDSHIP PLAN. 27 (5) THE DEPARTMENT SHALL S UBMIT A BEVERAGE CON TAINER 28 STEWARDSHIP PLAN TO AN INDEPENDENT FINAN CIAL AUDITOR TO ENSU RE THAT 29 THE FINANCING PROPOSED IN THE PLAN WILL COVER THE COSTS OF IMPLEMENTING 30 THE PLAN. 31 30 SENATE BILL 346 (B) (1) (I) WITHIN 120 DAYS AFTER RECEIPT O F A BEVERAGE 1 CONTAINER STEWARDSHIP PLAN SUBMITTED TO TH E 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 REQUIR E THAT AN APPROVED 22 BEVERAGE CONTAINER S TEWARDSHIP PLAN BE A MENDED IF THE REPORT 23 SUBMITTED UNDER § 9–1747 OF THIS SUBTITLE REF LECTS 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 CONTAINE R STEWARDSHIP ORGANI ZATION 28 SHALL IMPLEMENT AND ADMINISTER A BEVERAGE CONTAINER STEWARDSHIP PLAN 29 WITHIN 6 MONTHS AFTER THE PLAN IS APPROVED. 30 (2) IN IMPLEMENTING AND ADMINISTERING A BEVERAGE CONTAINER 31 SENATE BILL 346 31 STEWARDSHIP PLAN , THE BEVERAGE CO NTAINER STEWARDSHIP ORGANIZATION 1 SHALL: 2 (I) FACILITATE LOGISTICS, THE INITIATION OF DEPOSITS, AND 3 THE ISSUANCE OF REFUNDS UNDER THE PLAN; 4 (II) COORDINATE THE LOGISTICS FOR TIMELY COLLECTION OF 5 REDEEMABLE BEVERAGE CONTAINERS FROM AN ON–PREMISES SELLER; 6 (III) ESTABLISH PROCEDURES FOR TRACKING REDEEMA BLE 7 BEVERAGE CONTAINERS SOLD IN THE STATE; 8 (IV) DESIGN AND OPERATE SE RVICES FOR THE 9 TRANSPORTATION AND PROCESSING OF REDEEMABLE BEVERAGE CONTAINERS; 10 (V) DEVELOP AND IMPLEMENT A PLAN FOR ESTABLI SHING, 11 OPERATING, AND MANAGING REDEMPT ION FACILITIES THAT WILL OFFER A WIDE 12 RANGE OF CONVENIENT REDEMPTION LOCATIONS AND TECHNOLOGIES THA T ARE 13 EASY TO USE, ACCESSIBLE, AND MEET OR EXCEED T HE CONVENIENCE STANDARDS 14 ESTABLISHED BY THE DEPARTMENT UNDER § 9–1751 OF THIS SUBTITLE; 15 (VI) DEVELOP AND IMPLEMENT A PLAN FOR THE DISTRIBUTION, 16 OPERATION, AND MAINTENANCE OF B EVERAGE CONTAINER RE DEMPTION AND 17 PROCESSING METHODS , INCLUDING REVERSE VE NDING MACHINES , BAG DROP 18 PROGRAMS, AND ACCOUNT–BASED BULK PROCESSING PROGRAMS; 19 (VII) DEVELOP ACCOUNTING AND CONTROL STANDARDS; 20 (VIII) IMPLEMENT ACCOUNTING , AUDIT, PAYMENT, AND 21 REPORTING PROCEDURES; 22 (IX) ESTABLISH A HIGH –VOLUME VALIDATION AN D AUDIT 23 SYSTEM TO PAY A BULK RATE TO AN ON –PREMISES SELLER FOR THE REDEMPTION 24 OF EMPTY REDEEMABLE BEVERAGE CONTAINERS; 25 (X) ESTABLISH AN APPLICAT ION PROCESS FOR LARG E 26 ON–PREMISES SELLERS TO APPLY FOR AND RECEIV E A BULK RATE FOR TH E 27 REDEMPTION OF HIGH VOLUMES OF EMPTY REDEEMABLE BEVERAGE CONTAINERS; 28 (XI) MARKET REDEEMABLE BEVERAGE CONTAINER MATERIALS 29 FOR REUSE IN THE MANUFACTURING OF SIMILAR PRODUCTS; 30 (XII) FUND A MARKETING PROG RAM TO EDUCATE THE P UBLIC 31 32 SENATE BILL 346 ABOUT THE PROGRAM; 1 (XIII) ESTABLISH A SYSTEM FO R REPORTING KEY INFO RMATION 2 GATHERED BY THE PROGRAM TO THE DEPARTMENT ON A QUARTERLY BASIS; AND 3 (XIV) CREATE INCENTIVES FOR THE DEVELOPMENT OF 4 REFILLABLE AND REUSABLE BEVERAGE CONTAINER SYSTEMS. 5 (3) ON REQUEST OF THE DEPARTMENT, THE BEVERAGE CONTAINER 6 STEWARDSHIP ORGANIZATION SHALL SUBMIT A COPY OF ITS FINANCIA L RECORDS 7 TO THE DEPARTMENT FOR A FINANCIAL AUDIT. 8 9–1747. 9 (A) THIS SECTION APPLIES TO THE BEVERAGE CONT AINER STEWARDSHIP 10 ORGANIZATION THAT HAS A BEVERAGE CONTAINER STEWARDSHIP PLAN APPROVED 11 BY THE DEPARTMENT UNDER § 9–1746 OF THIS SUBTITLE. 12 (B) (1) ON OR BEFORE APRIL 1 EACH YEAR, BEGINNING IN 2029, THE 13 BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION SHALL SUBMIT A REPORT TO 14 THE DEPARTMENT ON THE PRO GRESS MADE IN THE PR ECEDING CALENDAR YEAR 15 TOWARD MEETING THE PERFORMANCE TARGETS AND THE GOALS OF THE PROGRAM 16 AND THE BEVERAGE CON TAINER STEWARDSHIP O RGANIZATION’S BEVERAGE 17 CONTAINER STEWARDSHIP PLAN. 18 (2) THE DEPARTMENT SHALL PROV IDE THE ADVISORY COUNCIL 19 WITH A COPY OF EACH REPORT SUBMITTED UNDER THIS SUBSECTION. 20 (C) THE REPORT SUBMITTED UNDER SUBSECTION (B) OF THIS SECTION 21 SHALL INCLUDE, FOR THE PRECEDING CALENDAR YEAR: 22 (1) THE PROGRESS MADE TOW ARD ACHIEVING THE PE RFORMANCE 23 TARGETS; 24 (2) IF THE PERFORMANCE TA RGETS WERE NOT ACHIE VED, A 25 DESCRIPTION OF THE A CTIONS PROPOSED TO A CHIEVE THE PERFORMAN CE 26 TARGETS; 27 (3) THE NUMBER OF REDEEMABLE BEVERAGE CONTAINERS SOLD IN 28 THE STATE; 29 (4) THE NUMBER OF REDEEMABLE BEVERAGE CONTAINERS SOLD IN 30 THE STATE SORTED BY MATER IAL TYPE , REFUND VALUE , AND WHETHER THE 31 SENATE BILL 346 33 CONTAINER CAN BE REFILLED OR REUSED; 1 (5) THE NUMBER OF EMPTY REDEEMABLE BEV ERAGE CONTAINERS 2 REDEEMED; 3 (6) THE NUMBER OF EMPTY R EDEEMABLE BEVERAGE C ONTAINERS 4 REDEEMED AT EACH RED EMPTION FACILITY , REVERSE VENDING MACH INE, BAG 5 DROP PROGRAM , ACCOUNT–BASED BULK PROCESSIN G PROGRAM , OR OTHER 6 BEVERAGE CONTAINER R EDEMPTION AND PROCESSI NG METHOD SORTED BY 7 MATERIAL TYPE , REFUND VALUE , AND WHETHER THE EMPT Y REDEEMABLE 8 BEVERAGE CONTAINER CAN BE REFILLED OR REUSED; 9 (7) THE REDEMPTION RATE A ND RECYCLING RATE FO R 10 NONREFILLABLE REDEEM ABLE BEVERAGE CONTAI NERS SOLD IN THE STATE 11 SORTED BY MATERIAL T YPE, NUMBER OF CONTAINERS SOLD, AND CONTAINER 12 WEIGHT; 13 (8) THE AMOUNT OF EACH TYPE OF: 14 (I) REDEEMABLE BEVERAGE C ONTAINER MATERIAL 15 COLLECTED IN THE STATE; AND 16 (II) SCRAP MATERIAL SOLD B Y THE BEVERAGE CONTA INER 17 STEWARDSHIP ORGANIZATION; 18 (9) THE LOCATION OF EACH REDEMPTION FACILITY IN THE STATE 19 AND THE REDEMPTION METHOD USED AT EACH REDEMPTION FACILITY; 20 (10) A DESCRIPTION OF ANY I MPROVEMENTS MADE TO MAKE 21 RETURNING EMPTY REDE EMABLE BEVERAGE CONT AINERS EASIER AND MO RE 22 CONVENIENT; 23 (11) THE IDENTIFICATION AND DESCRIPTION OF AREAS THAT DO NOT 24 HAVE READILY AVAILAB LE OPTIONS FOR REDEE MING AN EMPTY REDEEM ABLE 25 BEVERAGE CONTAINER A ND ACTIONS THE BEVER AGE CONTAINER STEWAR DSHIP 26 ORGANIZATION WILL TAKE TO IMPROVE OPTIONS IN THESE AREAS; 27 (12) THE NUMBER OF CONSUME R COMPLAINTS PER MON TH, SORTED 28 BY REDEMPTION FACILITY; 29 (13) THE NUMBER AND TYPE O F COMPLAINTS FROM ON –PREMISES 30 SELLERS PER MONTH, SORTED BY TYPE OF BUSINESS; 31 34 SENATE BILL 346 (14) THE NUMBER OF INDIVID UALS AND ORGANIZATIO NS WITH 1 ACCOUNTS ESTABLISHED F OR THE RECEIPT OF EL ECTRONIC DEPOSITS OR 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 AVERA GE COST OF PROCESSIN G AN EMPTY REDEEMED 7 REDEEMABLE BEVERAGE CONTAINER; 8 (17) A COPY OF THE AUDIT CO NDUCTED 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 UND ER THE BEVERAGE 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 MADE 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 EFFORTS TAKEN TO PREVENT FRAUD; AND 31 SENATE BILL 346 35 (27) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT. 1 (D) THE FINANCIAL, PRODUCTION, AND SALES DATA OF IN DIVIDUAL 2 PRODUCERS REPORTED T O THE DEPARTMENT UNDER THIS SECTION SHALL BE 3 KEPT CONFIDENTIAL BY THE DEPARTMENT AND THE ADVISORY COUNCIL. 4 (E) THE DEPARTMENT SHALL POST THE REPORT SUBMITTED UNDER THIS 5 SECTION ON TH E DEPARTMENT’S WEBSITE IN A MANNE R THAT PROTECTS THE 6 CONFIDENTIALITY OF T HE DATA SPECIFIED UN DER SUBSECTION (D) OF THIS 7 SECTION. 8 9–1748. 9 (A) THE DEPARTMENT SHALL ESTA BLISH A PROCESS FOR A COUNTY OR 10 MUNICIPAL CORPORATION TO CREATE A REDEMPTION FACILITY. 11 (B) EMPTY REDEEMABLE BEVE RAGE CONTAINERS REDE EMED AT A 12 REDEMPTION FACILITY MANAGED BY A COUNTY OR MUNICIPAL CORPORA TION 13 SHALL BE CREDITED TOWARD MEETING THE RECYCLING RATES REQUIRED UNDER § 14 9–505 OF THIS TITLE. 15 (C) (1) THROUGH DECEMBER 31, 2030, A PORTION OF PROGRAM 16 REVENUES SHALL BE US ED TO COMPENSATE A C OUNTY OR MUNICIPAL 17 CORPORATION FOR ANY NET LOSS OF REVENUE TO THE COUNTY ’S OR MUNICIPAL 18 CORPORATION’S WASTE MANAGEMENT S YSTEM THAT CAN BE DO CUMENTED AND 19 ATTRIBUTED TO THE PROGRAM. 20 (2) IN DETERMI NING A NET LOSS OF R EVENUE, A COUNTY OR 21 MUNICIPAL CORPORATION SHALL CONSIDER: 22 (I) THE LOSS OF REVENUE F ROM THE SALE OF SCRA P 23 MATERIALS; 24 (II) FINANCIAL SAVINGS FROM A REDUCTION IN: 25 1. GLASS BOTTLES IN THE RECYCLING STREAM; 26 2. TRANSPORTATION COSTS ASSOCIATED WITH 27 CURBSIDE COLLECTION OF TRASH AND RECYCLING; 28 3. PROCESSING COSTS ASSO CIATED WITH RECYCLIN G 29 BEVERAGE CONTAINERS; 30 36 SENATE BILL 346 4. THE COSTS OF LANDFILL ING AND INCINERATING 1 BEVERAGE CONTAINERS THAT ARE NOT RECYCLED; AND 2 5. THE COSTS OF LITTER COLLECTION; AND 3 (III) FOR A COUNTY OR MUNIC IPAL CORPORATION THAT HAS A 4 TOTAL MAXIMUM DAILY LOAD FOR TRASH IN A WATERWAY UNDER ITS 5 JURISDICTION, THE REDUCED COSTS AN D INCREASED BENEFITS OF COMPLYING 6 WITH THE TOTAL MAXIM UM DAILY LOA D DUE TO A REDUCTION IN BEVERAGE 7 CONTAINER LITTER. 8 9–1749. 9 FUNDING FOR THE PROGRAM SHALL: 10 (1) INCLUDE: 11 (I) REDEEMABLE BEVERAGE C ONTAINER STEWARDSHIP 12 ORGANIZATION FEES COLLECTED UNDER § 9–1746 OF THIS SUBTITLE; 13 (II) REVENUE FROM THE SALE OF RAW MATERIALS; 14 (III) UNCLAIMED DEPOSITS CO LLECTED UNDER § 9–1743 OF 15 THIS SUBTITLE; 16 (IV) REGISTRATION FEES COLLECTED UNDER § 9–1744 OF THIS 17 SUBTITLE; AND 18 (V) PENALTIES COLLECTED U NDER § 9–1754 OF THIS 19 SUBTITLE; AND 20 (2) BE USED IN ACCORDANCE WITH §§ 9–1707(F), 9–1743, 9–1744, 21 AND 9–1754 OF THIS SUBTITLE. 22 9–1750. 23 (A) THERE IS A BEVERAGE CONTAINER RECYCLING REFUND GRANT 24 PROGRAM. 25 (B) THE PURPOSE OF THE GRANT PROGRAM IS TO PROVIDE FUNDING: 26 (1) FOR AN EVALUATION OF THE INVESTMENTS AND POLICIES 27 SENATE BILL 346 37 NECESSARY TO ENSURE THAT, BY DECEMBER 31, 2035, AT LEAST 10% OF ALL 1 BEVERAGE CONTAINERS SOLD IN THE STATE ARE RETURNED AND REFILLED; AND 2 (2) FOR PROJECTS THAT: 3 (I) INCREASE THE REUSE AN D RECYCLING OF BEVER AGE 4 CONTAINERS IN THE STATE; 5 (II) INCREASE THE AVAILABIL ITY OF PUBLIC WATER 6 FOUNTAINS AND REFILL STATIONS IN THE STATE; AND 7 (III) REDUCE THE VOLUME OF LITTER FROM BEVERAGE 8 CONTAINERS IN THE STATE. 9 (C) THE DEPARTMENT SHALL ADMINISTER THE GRANT PROGRAM. 10 (D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE GRANT 11 PROGRAM SHALL BE FUND ED FROM A PORTION OF THE UNCLAIMED DEPOSI TS 12 TRANSFERRED TO THE SEPARATE ACCOUNT ESTABLISHED UNDER § 9–1707(F)(7) OF 13 THIS SUBTITLE. 14 (2) THE GRANT PROGRAM MAY AWARD UP TO $5,000,000 IN GRANTS 15 EACH YEAR F ROM THE UNCLAIMED DE POSITS TRANSFERRED T O THE SEPARATE 16 ACCOUNT ESTABLISHED UNDER § 9–1707(F)(7) OF THIS SUBTITLE. 17 (E) THE FOLLOWING ENTITIE S ARE ELIGIBLE FOR A GRANT UNDER THE 18 GRANT PROGRAM: 19 (1) A SCHOOL OR AN INSTITUTION OF HIGHER EDUCATION; 20 (2) A NONPROFIT ORGANIZATION; 21 (3) A COUNTY OR MUNICIPAL CORPORATION; 22 (4) A FOR–PROFIT ORGANIZATION; AND 23 (5) A PUBLIC–PRIVATE PARTNERSHIP. 24 (F) THE DEPARTMENT, IN CONSULTATION WITH THE ADVISORY COUNCIL, 25 SHALL ADOPT REGULATIONS ESTABLISHING: 26 (1) AN APPLICATION PROCESS FOR AN ENTITY TO APP LY FOR A 27 GRANT; 28 38 SENATE BILL 346 (2) THE CRITERIA FOR EVALUATING AND AWARDING GRANTS; 1 (3) REPORTING AND EVALUAT ION REQUIREMENTS FOR A GRANT 2 AWARDED UNDER THIS SECTION; AND 3 (4) ANY OTHER REQUIREMENT S THE DEPARTMENT DETERMINES 4 ARE NECESSARY FOR AD MINISTERING AND IMPL EMENTING GRANTS AWAR DED 5 UNDER THE GRANT PROGRAM. 6 (G) THE DEPARTMENT SHALL BEGI N AWARDING GRANTS ON OR BEFORE 7 JANUARY 1, 2029. 8 9–1751. 9 IN ADDITION TO THE DU TIES AND REQUIREMENTS SPECIFIED IN THIS PART, 10 THE DEPARTMENT SHALL: 11 (1) IN CONSULTATION WITH THE ADVISORY COUNCIL: 12 (I) ESTABLISH CONVENIENCE STANDARDS FOR THE COVERAGE 13 AND AVAILABILITY OF REDEMPTION OPTIONS ACROSS THE STATE; AND 14 (II) ENSURE THE CONVENIENC E STANDARDS PROVIDE 15 ACCESSIBLE REDEMPTION OPTIONS FOR DIFFERENTLY ABLED PEOPLE AND PEOPLE 16 WHO LIVE IN RURAL AREAS OR LOW–INCOME COMMUNITIES OF COLOR; 17 (2) ESTABLISH A SYSTEM FO R LARGE ON –PREMISES SELLERS TO 18 VERIFY THE SOURCE OF THE HIGH VOLUMES OF REDEEMABLE BEVERAGE 19 CONTAINERS REDEEMED BY THE ON–PREMISES SELLER; AND 20 (3) PERIODICALLY REVIEW A VAILABLE BEVERAGE CO NTAINER 21 REDEMPTION AND PROCESSING METHODS TO DETERMINE WHETHER THE TYPES OF 22 BEVERAGE CONTAINERS COVERED UNDER THE PROGRAM SHOULD BE EXPANDED. 23 9–1752. 24 (A) THERE IS A REDEEMABLE BEVERAGE CONTAINER RECYCLING 25 REFUND ADVISORY COUNCIL. 26 (B) THE ADVISORY COUNCIL CONSISTS OF T HE FOLLOWING MEMBERS , 27 DESIGNATED BY THE SECRETARY: 28 SENATE BILL 346 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 OR 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 REU SE 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 (C) THE SECRETARY SHALL DESIGNATE TWO COCHAIRS FROM AMONG THE 28 40 SENATE BILL 346 MEMBERSHIP OF THE ADVISORY COUNCIL. 1 (D) THE DEPARTMENT SHALL PROV IDE STAFF FOR THE ADVISORY 2 COUNCIL. 3 (E) A MEMBER OF THE ADVISORY COUNCIL: 4 (1) MAY NOT R ECEIVE COMPENSATION AS A MEMBER OF THE 5 ADVISORY COUNCIL; BUT 6 (2) IS ENTITLED TO REIMBU RSEMENT FOR EXPENSES UNDER THE 7 STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET. 8 (F) THE ADVISORY COUNCIL SHALL MEET: 9 (1) AT LEAST QUARTERLY EACH YEAR; AND 10 (2) AS REQUESTED BY THE DEPARTMENT. 11 (G) THE ADVISORY COUNCIL SHALL: 12 (1) ADVISE THE DEPARTMENT ON DETERMI NING WHETHER TO 13 APPROVE A BEVERAGE CONTAINER STEWARDSHIP PLAN; 14 (2) MAKE RECOMMENDATIONS TO THE DEPARTMENT ON THE 15 IMPLEMENTATION OF APPROVED BEVERAGE CONTAINER STEWARDSHIP PLANS; 16 (3) REVIEW AND ADVISE THE DEPARTMENT ON THE ANN UAL 17 REPORTS SUBMITTED UNDER § 9–1747 OF THIS SUBTITLE; AND 18 (4) ADVISE THE DEPARTMENT ON THE IMP LEMENTATION, 19 ADMINISTRATION, AND PERFORMANCE OF THE PROGRAM. 20 9–1753. 21 (A) ON OR BEFORE JUNE 1, 2026, THE DEPARTMENT SHALL ADOP T 22 REGULATIONS TO CARRY OUT THIS PART. 23 (B) THE DEPARTMENT MAY EXPAND THE TYPES OF BEVERAGE CONTAINERS 24 COVERED UNDER THE PROGRAM BY REGULATION IF, BASED ON ITS REVIEW UNDER 25 § 9–1751(3) OF THIS SUBTITLE , THE DEPARTMENT DETERMINES THERE ARE 26 CONVENIENT REDEMPTION OPTIONS FOR THOSE BEVERAGE CONTAINERS. 27 SENATE BILL 346 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 ENFOR CE 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 REDEEMABLE BEVERA GE 7 CONTAINER THAT THE PRODUCER IN TENDS TO SELL , 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 DISPOSE OF A REDEEMED REDEEM ABLE 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 (D) (1) BEGINNING JANUARY 1, 2031, IF THE BEVERAGE CONT AINER 30 42 SENATE BILL 346 STEWARDSHIP ORGANIZA TION HAS NOT MET THE REDEMPTION RATES 1 ESTABLISHED IN § 9–1740 OF THIS SUBTITLE FOR THE IMMEDIATELY PRECEDING 2 2 YEARS, THE DEPARTMENT SHALL ASSE SS AN ADMI NISTRATIVE PENALTY O N THE 3 BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION. 4 (2) EACH YEAR THAT THE BE VERAGE CONTAINER STE WARDSHIP 5 ORGANIZATION DOES NOT MEET THE REDEMPTION RATES ESTABLISHED IN § 9–1740 6 OF THIS SUBTITLE IS A SEPARATE VIOLATION UNDER THIS SUBSECTION. 7 (3) AN ADMINISTRATIVE PEN ALTY ASSESSED UNDER THIS 8 SUBSECTION SHALL EQU AL THE TOTAL NUMBER OF REDEEMABLE BEVERA GE 9 CONTAINERS NEEDED TO BE REDEEMED TO MEET THE REDEMPTION RATES 10 ESTABLISHED IN § 9–1740 OF THIS SUBTITLE, MINUS THE NUMBER OF REDEEMABLE 11 BEVERAGE CONTAINERS ACTUALLY REDEEMED , MULTIPLIED BY THE RE FUND 12 VALUE IN EFFECT AT THE TIME THE VIOLATION OCCURRED. 13 (E) THE DEPARTMENT MAY ALTER THE ADMINISTRATIVE P ENALTIES 14 ASSESSED UNDER SUBSE CTIONS (C) AND (D) OF THIS SECTION AS N ECESSARY TO 15 ENSURE THAT THE PENALTY AMO UNTS ASSESSED EXCEED THE COSTS OF 16 COMPLYING WITH THIS PART. 17 (F) PENALTIES COLLECTED UNDER THIS SECTION SHALL BE: 18 (1) TRANSFERRED TO THE STATE RECYCLING TRUST FUND UNDER § 19 9–1707(F) OF THIS SUBTITLE; AND 20 (2) USED ONLY TO COVER THE DEPARTMENT’S COSTS OF PLANNING, 21 IMPLEMENTING, ADMINISTERING, MONITORING, ENFORCING, AND EVALUATING 22 THE PROGRAM. 23 9–1755. 24 ANY PERSON PARTICIPAT ING IN A BEVERAGE CO NTAINER STEWARDSHIP 25 PLAN IN ACCORDANCE W ITH THIS SUBTITLE IS IMMUNE FROM LIABILIT Y UNDER 26 STATE LAWS CONCERNING ANTITRUST AND RESTRA INT OF TRADE FOR 27 COOPERATIVE ACTIVITI ES ASSOCIATED WITH T HE COLLECTION , TRANSPORT, 28 PROCESSING, RECYCLING, REUSE, AND MANAGEMENT OF EM PTY REDEEMABLE 29 BEVERAGE CONTAINERS. 30 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 31 1, 2025. 32