Maryland Beverage Container Recycling Refund and Litter Reduction Program

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW. [Brackets] indicate matter deleted from existing law. *sb0342* SENATE BILL 342 M3 6lr1135 SB 346/25 – EEE CF HB 331 By: Senators Brooks, Augustine, Guzzone, Hettleman, Kagan, Love, Muse, Smith, and A. Washington Introduced and read first time: January 23, 2026 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 342 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 requiring the Chesapeake Bay Trust to administer the Grant Program; requiring the 4 beverage container stewardship organization to provide certain payments to certain 5 facilities for a certain period of time for managing unredeemed beverage containers 6 in accordance with certain requirements; establishing the Redeemable Beverage 7 Container Recycling Refund Advisory Council to review certain reports, make 8 certain recommendations, and advise the Department on certain matters; providing 9 immunity from liability to a certain person under certain circumstanc es; and 10 generally relating to the Maryland Beverage Container Recycling Refund and Litter 11 Reduction Program. 12 BY repealing and reenacting, without amendments, 13 Article – Environment 14 Section 9–1701(a) and (q) and 9–1702(a) 15 Annotated Code of Maryland 16 (2014 Replacement Volume and 2025 Supplement) 17 BY repealing and reenacting, with amendments, 18 Article – Environment 19 Section 9–1702(d) and 9–1707(f) 20 Annotated Code of Maryland 21 (2014 Replacement Volume and 2025 Supplement) 22 BY adding to 23 Article – Environment 24 Section 9 –1737 through 9 –1756 to be under the new part “Part VI. Maryland 25 Beverage Container Recycling Refund and Litter Reduction Program” 26 Annotated Code of Maryland 27 (2014 Replacement Volume and 2025 Supplement) 28 SECTION 1. BE IT ENACTED BY THE GEN ERAL ASSEMBLY OF MARYLAND, 29 That the Laws of Maryland read as follows: 30 Article – Environment 31 9–1701. 32 (a) In this subtitle the following words have the meanings indicated. 33 (q) “Recycling” means any process in which recyclable materials are collected, 34 separated, or processed and returned to the marketplace in the form of raw materials or 35 products. 36 9–1702. 37 SENATE BILL 342 3 (a) There is an Office of Recycling created within the Department. 1 (d) The Office shall: 2 (1) Assist the counties in developing an acceptable recycling plan required 3 under § 9–1703 of this subtitle and § 9 –505 of this title, including technical assistance to 4 the local governments; 5 (2) Coordinate the efforts of the State to facilitate the implementation of 6 the recycling goals at the county level; 7 (3) Review all recycling plans submitted as part of a county plan as 8 required under § 9 –505 of this title and advise the Secretary on the adequacy of the 9 recycling plan; 10 (4) Administer the Statewide Electronics Recycling Program under Part IV 11 of this subtitle; 12 (5) Promote the development of markets for recycled materials and 13 recycled products in the State in accordance with § 9–1702.1 of this subtitle; 14 (6) Review and approve plans and annual reports, including the paint 15 stewardship assessme nt, submitted in accordance with a Paint Stewardship Program 16 established under Part V of this subtitle; [and] 17 (7) Review and approve, in consultation with the producer responsibility 18 advisory council established under § 9–2503 of this title, producer responsibility plans and 19 annual reports submitted in accordance with Subtitle 25 of this title; AND 20 (8) ADMINISTER THE MARYLAND BEVERAGE CONTAINER 21 RECYCLING REFUND AND LITTER REDUCTION PROGRAM ESTABLISHED U NDER § 22 9–1739 OF THIS SUBTITLE. 23 9–1707. 24 (f) (1) There is a State Recycling Trust Fund. 25 (2) The Fund shall consist of: 26 (i) The newsprint recycling incentive fee; 27 (ii) The telephone directory recycling incentive fee collected under § 28 9–1709 of this subtitle; 29 (iii) The covered electronic device manufacturer registration fee 30 collected under § 9–1728 of this subtitle; 31 4 SENATE BILL 342 (iv) The Paint Stewardship Program plan and annual report review 1 fees collected under § 9–1733(b) and (h) of this subtitle; 2 (v) Any fees collected from producer respon sibility organizations 3 under § 9–1702.2 of this subtitle or Subtitle 25 of this title; 4 (VI) FEES AND PENALTIES TRANSFERRED TO THE FUND UNDER 5 §§ 9–1744 AND 9–1755 OF THIS SUBTITLE; 6 [(vi)] (VII) All fines and penalties collected under this subtitle a nd § 7 9–2512 of this title; 8 [(vii)] (VIII) Money appropriated in the State budget to the Fund; and 9 [(viii)] (IX) Any other money from any other source accepted for the 10 benefit of the Fund. 11 (3) The Secretary shall administer the Fund. 12 (4) The Treasurer shall hold the Fund separately and the Comptroller shall 13 account for the Fund. 14 (5) (I) [At] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 15 PARAGRAPH, AT the end of each fiscal year, any unspent or unencumbered balance in the 16 Fund that exceeds $2,000,000 shall revert to the General Fund of the State in accordance 17 with § 7–302 of the State Finance and Procurement Article. 18 (II) THE FUNDS TRANSFERRED TO T HE FUND UNDER 19 PARAGRAPH (2)(VI) OF THIS SUBSECTION A RE NOT SUBJECT TO § 7–302 OF THE 20 STATE FINANCE AND PROCUREMENT ARTICLE AND MAY NOT R EVERT TO THE 21 GENERAL FUND OF THE STATE. 22 (6) In accordance with the State budget, the Fund shall be used only: 23 (i) To provide grants to the counties to be used by the counties to 24 develop and implement local recycling plans; 25 (ii) To provide grants to counties that have addressed methods for 26 the separate collection and recycling of covered electronic devices in acco rdance with § 27 9–1703(c)(1) of this subtitle; 28 (iii) To provide grants to municipalities to be used by the 29 municipalities to implement local covered electronic device recycling programs; 30 SENATE BILL 342 5 (iv) To cover the costs of the Paint Stewardship Program plan review 1 under § 9–1733(b) of this subtitle, the annual report review under § 9–1733(h) of this 2 subtitle, and associated costs for Program compliance oversight; 3 (v) In accordance with paragraph (7) of this subsection, to cover the 4 costs of a statewide recycling needs assessment conducted under § 9–1702.2 of this subtitle; 5 (vi) In accordance with paragraph (7) of this subsection, to cover the 6 costs of producer responsibility plan review, oversight, and enforcement under Subtitle 25 7 of this title; [and] 8 (VII) IN ACCORDANCE WITH PA RAGRAPH (8) OF THIS 9 SUBSECTION, TO COVER THE COSTS O F ADMINISTERING , MONITORING, 10 EVALUATING, AND ENFORCING THE MARYLAND BEVERAGE CONTAINER 11 RECYCLING REFUND AND LITTER REDUCTION PROGRAM ESTABLISHED U NDER § 12 9–1739 OF THIS SUBTITLE; AND 13 [(vii)] (VIII) To carry out the purposes of the land management 14 administration. 15 (7) (i) There is a separate account within the Fund[. 16 (ii) The separate account shall consist] CONSISTING of: 17 1. Any fees collected from producer responsibility 18 organizations under § 9–1702.2 of this subtitle or Subtitle 25 of this title; and 19 2. All fines and penalties collected under § 9–2512 of this 20 title. 21 [(iii)] (II) The separate account shall be used only for the costs of 22 statewide rec ycling needs assessments conducted under § 9–1702.2 of this subtitle and 23 producer responsibility plan review, oversight, and enforcement under Subtitle 25 of this 24 title. 25 (8) (I) THERE IS A SEPARATE A CCOUNT WITHIN THE FUND 26 CONSISTING OF THE FUNDS SPECIFIED IN PARAGRAPH (2)(VI) OF THIS SUBSECTION. 27 (II) THE SEPARATE ACCOUNT SHALL BE USED ONLY: 28 1. TO COVER THE COSTS OF ADMINISTERING, 29 MONITORING, EVALUATING, AND ENFORCING THE MARYLAND BEVERAGE 30 CONTAINER RECYCLING REFUND AND LITTER REDUCTION PROGRAM 31 ESTABLISHED UNDER § 9–1739 OF THIS SUBTITLE; 32 6 SENATE BILL 342 2. TO COMPENSATE LOCAL G OVERNMENTS IN 1 ACCORDANCE WITH § 9–1748 OF THIS SUBTITLE; AND 2 3. TO MEET OR EXCEED THE PERFORMANCE TARGETS 3 ESTABLISHED UNDER § 9–1740 OF THIS SUBTITLE. 4 [(8)] (9) (i) The Treasurer shall invest the money in the Fund in the 5 same manner as other State money may be invested. 6 (ii) Any investment earnings of the Fund shall be credited to the 7 General Fund of the State. 8 9–1735. RESERVED. 9 9–1736. RESERVED. 10 PART VI. MARYLAND BEVERAGE CONTAINER RECYCLING REFUND AND LITTER 11 REDUCTION PROGRAM. 12 9–1737. 13 (A) IN THIS PART THE FOLL OWING WORDS HAVE THE MEANINGS 14 INDICATED. 15 (B) (1) “ACCOUNT–BASED BULK PROCESSIN G PROGRAM ” MEANS A 16 PROGRAM THAT: 17 (I) UTILIZES A SYSTEM OF CUSTOMER ACC OUNTS AND A 18 MECHANISM TO ASSOCIATE REDEEMED REDEEMABLE BEVERAGE CONTAINERS WITH 19 THE APPROPRIATE CUSTOMER ACCOUNT; 20 (II) CONSOLIDATES THE REDE EMED REDEEMABLE BEVE RAGE 21 CONTAINERS FOR BULK SORTING WHILE COLLEC TING DATA ABOUT THE 22 CONTAINERS; 23 (III) FULLY PREPARES REDEEMED REDEEMABLE BEVERAGE 24 CONTAINERS FOR SALE TO RECYCLERS; AND 25 (IV) COLLECTS DATA TO SUPP ORT AN ACCOUNTING OF THE 26 REDEEMABLE BEVERAGE CONTAINERS, INCLUDING THE DEPOSI TS, FEES, AND 27 POUNDS OF MATERIAL PRODUCED THAT ARE ASSOCIATED WITH THE REDEEMABLE 28 BEVERAGE CONTAINERS. 29 (2) “ACCOUNT–BASED BULK PROCESSIN G PROGRAM ” INCLUDES A 30 SENATE BILL 342 7 BAG DROP PROGRAM IF THE BAG DROP PROGRAM IS A COMPONENT OF TH E 1 ACCOUNT–BASED BULK PROCESSING PROGRAM. 2 (C) “ADVISORY COUNCIL” MEANS THE REDEEMABLE BEVERAGE 3 CONTAINER RECYCLING REFUND ADVISORY COUNCIL ESTABLISHED U NDER § 4 9–1753 OF THIS SUBTITLE. 5 (D) “BAG DROP PROGRAM” MEANS A PROGRAM THAT ALLOWS A CUSTOMER 6 TO: 7 (1) DROP OFF EMPTY REDEEMABLE BEVERAGE CONTAINERS IN A BAG 8 OR OTHER RECEPTACLE AT ONE OR MORE LOCATIONS FOR A REFUND; AND 9 (2) HAVE THE CORRESPONDING REFUND PLACED INTO AN ACCOUNT 10 HELD FOR THE BENEFIT OF THE CUSTOMER IN A MANNER THAT ALLOWS T HE 11 CUSTOMER TO OBTAIN T HE REFUND OR REFUND RECEIPT WITHIN A SPE CIFIED 12 NUMBER OF DAYS AFTER THE DROP–OFF. 13 (E) (1) “BEVERAGE” MEANS ANY DRINKABLE LIQUID INTENDED FOR 14 HUMAN ORAL CONSUMPTION. 15 (2) “BEVERAGE” DOES NOT INCLUDE: 16 (I) DRUGS REGULATED UNDER THE FEDERAL FOOD, DRUG, 17 AND COSMETIC ACT; AND 18 (II) INFANT FORMULA. 19 (F) (1) “BEVERAGE CONTAINER ” MEANS A BOTTL E, CAN, OR OTHER 20 CONTAINER THAT: 21 (I) HAS BEEN SEALED BY A MANUFACTURER; 22 (II) IS MADE OF GLASS, METAL, OR PLASTIC; AND 23 (III) AT THE TIME OF SALE , CONTAINS 3 LITERS OR LESS OF A 24 BEVERAGE. 25 (2) “BEVERAGE CONTAINER” DOES NOT INCLUDE: 26 (I) A CARTON; 27 (II) A POUCH; OR 28 8 SENATE BILL 342 (III) ASEPTIC PACKAGING. 1 (G) “BEVERAGE CONTAINER RE DEMPTION AND PROCESS ING METHOD ” 2 MEANS A MANUAL OR TE CHNOLOGICAL METHOD F OR PROPERLY COLLECTI NG, 3 IDENTIFYING, COUNTING, OR PROCESSING EMPTY REDEEMABLE BEVERAGE 4 CONTAINERS FOR REDEMPTION. 5 (H) “BEVERAGE CONTAINER ST EWARDSHIP ORGANIZATI ON” MEANS A 6 NONPROFIT ORGANIZATION THAT IS: 7 (1) EXEMPT FROM TAXATION UNDER § 501(C)(3) OF THE INTERNAL 8 REVENUE CODE; 9 (2) CREATED BY PRODUCERS TO IMPLEMENT A BEVER AGE 10 CONTAINER STEWARDSHIP PLAN; AND 11 (3) APPROVED BY THE DEPARTMENT IN ACCORDANCE WITH § 9–1745 12 OF THIS SUBTITLE. 13 (I) “BEVERAGE CONTAINER ST EWARDSHIP PLAN ” MEANS A PLAN 14 SUBMITTED TO THE DEPARTMENT UNDER § 9–1746 OF THIS SUBTITLE. 15 (J) “CHESAPEAKE BAY TRUST” MEANS T HE CHESAPEAKE BAY TRUST 16 ESTABLISHED UNDER § 8–1902 OF THE NATURAL RESOURCES ARTICLE. 17 (K) “DEPOSIT INITIATOR” MEANS THE FIRST DIST RIBUTOR TO COLLECT A 18 DEPOSIT ON A BEVERAGE CONTAINER SOLD IN THE STATE. 19 (L) (1) “DISTRIBUTOR” MEANS A PERSON THAT SELLS BEVERAGES IN 20 REDEEMABLE BEVERAGE CONTAINERS TO A RETAILER IN THE STATE. 21 (2) “DISTRIBUTOR” INCLUDES A PERSON THAT MANUFACTURES AND 22 SELLS BEVERAGES IN REDEEMABLE BEVERAGE CONTAINERS TO A RETAILER IN THE 23 STATE. 24 (3) “DISTRIBUTOR” DOES NOT INCLUDE AIR LINES OR SHIPPING 25 COMPANIES THAT TRANSPORT REDEEMABLE BEVERAGE CONTAINERS. 26 (M) “GRANT PROGRAM” MEANS THE BEVERAGE CONTAINER RECYCLING 27 REFUND GRANT PROGRAM ESTABLISHED UNDER § 9–1750 OF THIS SUBTITLE. 28 (N) “LINE BREAKAGE” MEANS A BEVERAGE CONTAINER THAT: 29 SENATE BILL 342 9 (1) BECOMES DEFECTIVE OR DAMAGED DURING MANUFACTURING; 1 (2) IS NOT INTENDED TO BE SOLD; AND 2 (3) IS NOT ELIGIBLE FOR REDEMPTION. 3 (O) “MARYLAND–SPECIFIC UPC BARCODE” MEANS A UNIVERSAL PRODUCT 4 CODE THAT IS: 5 (1) UNIQUE TO BEVERAGE CONTAINERS SOLD IN THE STATE; AND 6 (2) USED TO DETER FRAUD A ND ENSURE THE LEGITI MATE 7 REDEMPTION OF REDEEMABLE BEVERAGE CONTAINERS. 8 (P) “MATERIAL RECOVERY FACILITY” MEANS A FACILITY LOCATED IN THE 9 STATE THAT COLLECTS , COMPACTS, REPACKAGES, SORTS, OR PROCESSES 10 SOURCE–SEPARATED MATERIALS FOR TRANSPORTATION AND RECYCLING. 11 (Q) (1) “ON–PREMISES SELLER ” MEANS A PERSON THAT SELLS FILLED 12 AND UNOPENED REDEEMA BLE BEVERAGE CONTAIN ERS FOR ON –PREMISES 13 CONSUMPTION. 14 (2) “ON–PREMISES SELLER” INCLUDES: 15 (I) BARS; 16 (II) HOTELS; 17 (III) RESTAURANTS; 18 (IV) SPORTING VENUES; 19 (V) ENTERTAINMENT VENUES; AND 20 (VI) GAMING VENUES. 21 (R) “PERFORMANCE TARGETS” MEANS THE TARGETS ESTABLISHED UNDER 22 § 9–1740 OF THIS SUBTITLE. 23 (S) (1) “PRODUCER” MEANS A PERSON RESPO NSIBLE FOR COMPLYING 24 WITH THE REQUIREMENTS UNDER THIS PART. 25 (2) “PRODUCER” INCLUDES A FRANCHISO R OF A FRANCHISE 26 10 SENATE BILL 342 LOCATED IN THE STATE. 1 (3) “PRODUCER” DOES NOT INCLUDE: 2 (I) THE STATE, A COUNTY , A MUNICIPAL CORPORAT ION, OR 3 ANY OTHER POLITICAL SUBDIVISION OF THE STATE; 4 (II) A CHARITABLE ORGANIZAT ION THAT IS TAX –EXEMPT 5 UNDER § 501(C)(3) OF THE INTERNAL REVENUE CODE; 6 (III) A SOCIAL WELFARE ORGAN IZATION THAT IS TAX –EXEMPT 7 UNDER § 501(C)(4) OF THE INTERNAL REVENUE CODE; 8 (IV) A FRANCHISEE THAT OPER ATES A FRANCHISE IN THE 9 STATE; 10 (V) A PERSON THAT ANNUALLY SELLS, OFFERS FOR SALE , 11 DISTRIBUTES, OR IMPORTS INTO THE COUNTRY FOR SALE IN THE STATE FEWER 12 THAN 1,000 REDEEMABLE BEVERAGE CONTAINERS; OR 13 (VI) A PERSON THAT ANNUALLY SELLS, OFFERS FOR SALE , OR 14 DISTRIBUTES IN THE STATE REDEEMABLE BEVE RAGE CONTAINERS THAT IN 15 AGGREGATE GENERATE LESS THAN $5,000,000 EACH YEAR IN GLOBAL REVENUE. 16 (T) “PROGRAM” MEANS THE MARYLAND BEVERAGE CONTAINER 17 RECYCLING REFUND AND LITTER REDUCTION PROGRAM ESTABLISHED U NDER § 18 9–1739 OF THIS SUBTITLE. 19 (U) “RECYCLING RATE ” MEANS THE NUMBER OF NONREFILLABLE 20 REDEEMABLE BEVERAGE CONTAINERS SOLD IN T HE STATE THAT ARE RECYCL ED 21 SHOWN AS A PERCENTAG E OF ALL NONREFILLAB LE REDEEMABLE BEVERA GE 22 CONTAINERS SOLD IN THE STATE. 23 (V) “REDEEM” MEANS THE RETURN OF AN EMPTY REDEEMABLE BEVERAGE 24 CONTAINER IN EXCHANGE FOR A REFUND, A VOUCHER FOR A REFUND, OR A CREDIT 25 TO AN ACCOUNT FOR NOT LESS THAN THE REFUND VALUE. 26 (W) “REDEEMABLE BEVERAGE C ONTAINER” MEANS A BEVERAGE 27 CONTAINER THAT, AT THE TIME OF SALE: 28 (1) CONTAINS 3 LITERS OR LESS OF A BEVERAGE; 29 (2) BEARS A UNIVERSAL PRODUCT CODE; AND 30 SENATE BILL 342 11 (3) MAY BEAR A MARYLAND–SPECIFIC UPC BARCODE FOR THE 1 PURPOSE OF ENSURING LEGITIMATE REDEMPTION AND DETERRING FRAUD. 2 (X) “REDEMPTION FACILITY” MEANS A FACILITY THAT: 3 (1) ACCEPTS EMPTY BEVERAGE CONTAINERS FROM A CONSUMER, A 4 RETAILER, OR BOTH; 5 (2) COLLECTS, SORTS, AND COUNTS EMPTY BEVERAGE CONTAINERS; 6 (3) REFUNDS THE REFUND VA LUE OF EMPTY REDEEMA BLE 7 BEVERAGE CONTAINERS IN CASH , WITH A VOUCHER , OR AS A CREDIT TO AN 8 ACCOUNT FOR NOT LESS THAN THE REFUND VALU E OF THE REDEEMABLE 9 BEVERAGE CONTAINER; AND 10 (4) IS LICENSED UNDER § 9–1742 OF THIS SUBTITLE. 11 (Y) “REDEMPTION RATE ” MEANS THE PERCENTAGE OF REDEEMABLE 12 BEVERAGE CONTAINERS SOLD IN THE STATE THA T ARE REDEEMED FOR T HE 13 DEPOSIT VALUE. 14 (Z) “REFILLABLE” MEANS A BEVERAGE CONTAINER THAT IS DESIGNED AND 15 INTENDED TO BE REUSE D AS A BEVERAGE CONT AINER AFTER BEING US ED BY A 16 CONSUMER WITHOUT THE NEED FOR REMANUFACTURING. 17 (AA) (1) “RETAILER” MEANS A PERSON THAT ENGAGES IN THE SALE OF 18 REDEEMABLE BEVERAGE CONTAINERS TO A CONSUMER IN THE STATE. 19 (2) “RETAILER” INCLUDES A PERSON THAT ENGAGES IN THE SALE OF 20 REDEEMABLE BEVERAGE CONTAINERS: 21 (I) THROUGH A VENDING MACHINE; OR 22 (II) ONLINE FOR HOME OR OFFICE DELIVERY. 23 (BB) “REVERSE VENDING MACHINE” MEANS AN AUTOMATED DEVICE THAT: 24 (1) ACCEPTS ONE OR MORE T YPES OF EMPTY REDEEM ABLE 25 BEVERAGE CONTAINERS; 26 (2) USES A LASER SCANNER , AN OPTICAL SENSOR , A 27 MICROPROCESSOR, OR OTHER TECHNOLOGY TO ACCURATELY RECOGN IZE A 28 12 SENATE BILL 342 BEVERAGE CONTAINER’S UNIVERSAL PRODUCT CODE TO DETERMINE WHETHER THE 1 CONTAINER IS A REDEEMABLE BEVERAGE CONTAINER; 2 (3) ISSUES A REDEEMABLE C REDIT SL IP FOR THE REDEEMABL E 3 BEVERAGE CONTAINER’S REFUND VALUE; 4 (4) SEPARATES REDEEMABLE BEVERAGE CONTAINERS FROM 5 CONTAINERS THAT ARE NOT REDEEMABLE; 6 (5) USES MECHANICAL COMPA CTION TO CANCEL REDE EMABLE 7 BEVERAGE CONTAINERS THAT HAVE BEEN REDEEMED; AND 8 (6) COMPILES INFORMATION REGARDING THE REDEEM ABLE 9 BEVERAGE CONTAINERS THAT HAVE BEEN REDEEMED, INCLUDING THE NUMBER OF 10 REDEEMABLE BEVERAGE CONTAINERS REDEEMED. 11 (CC) (1) “UNIVERSAL PRODUCT COD E” OR “UPC” MEANS A STANDARD 12 BARCODE THAT ENCODES A NUMBER UNIQUEL Y ASSIGNED TO A PROD UCT FOR 13 IDENTIFICATION OF THE PRODUCT. 14 (2) “UNIVERSAL PRODUCT CODE” OR “UPC” INCLUDES: 15 (I) ANY INDUSTRY –ACCEPTED BARCODE USE D FOR PRODUCT 16 IDENTIFICATION PURPOSES; AND 17 (II) A EUROPEAN ARTICLE NUMBER. 18 9–1738. 19 IT IS THE INTENT OF THE GENERAL ASSEMBLY TO: 20 (1) REDUCE THE VOLUME OF LITTER AND PLASTIC POLLUTION FROM 21 BEVERAGE CONTAINERS IN THE STATE BY ACHIEVING A REDEMPTION RATE OF A T 22 LEAST 90% FOR THE APPROXIMATEL Y 5,500,000,000 SINGLE–USE BEVERAGE 23 CONTAINERS SOLD ANNUALLY IN THE STATE; 24 (2) PROVIDE A SOURCE OF HIGH–QUALITY, FOOD–GRADE MATERIALS 25 FOR USE AS RECYCLED CONTENT IN BEVERAGE AND FOOD CONTAINERS; 26 (3) REDUCE THE VOLUME OF BEVERAGE CONTAINERS THAT ARE 27 LANDFILLED OR INCINERATED IN THE STATE; 28 (4) REDUCE THE COSTS OF LITTER AND BEVERA GE CONTAINER 29 SENATE BILL 342 13 COLLECTION, RECYCLING, AND DISPOSAL INCURRE D BY TAXPAYERS , COUNTIES, 1 AND MUNICIPAL CORPOR ATIONS BY MAKING PRO DUCERS OF BEVERAGE 2 CONTAINERS RESPONSIB LE FOR THE RECOVERY , RECYCLING, AND REUSE OF 3 BEVERAGE CONTAINERS; 4 (5) PROVIDE INCENTIVES FO R INCREASING THE USE OF REUSABLE 5 AND REFILLABLE BEVERAGE CONTAINERS; AND 6 (6) REDUCE GREENHOUSE GAS EMISSIONS ASSOCIATED WITH THE 7 PRODUCTION, TRANSPORTATION, PROCESSING, AND WASTE DISPOSAL O F 8 SINGLE–USE BEVERAGE CONTAINERS SOLD IN THE STATE. 9 9–1739. 10 THERE IS A MARYLAND BEVERAGE CONTAINER RECYCLING REFUND AND 11 LITTER REDUCTION PROGRAM IN THE DEPARTMENT. 12 9–1740. 13 PERFORMANCE TARGETS FOR THE PROGRAM ARE AS FOLLOWS: 14 (1) A 70% REDEMPTION RATE BY DECEMBER 31, 2030; 15 (2) A 90% REDEMPTION RATE BY DECEMBER 31, 2033; 16 (3) BY DECEMBER 31, 2028, ATTAINMENT OF ALL CO NVENIENCE 17 STANDARDS IDENTIFIED BY THE DEPARTMENT UNDER § 9–1752 OF THIS SUBTITLE; 18 AND 19 (4) BY DECEMBER 31, 2038, AT LEAST 10% OF ALL BEVERAGE 20 CONTAINERS SOLD IN THE STATE ARE RETURNED AND REFILLED. 21 9–1741. 22 (A) (1) SUBJECT TO PARAGRAPHS (2) AND (3) OF THIS SUBSECTION , 23 BEGINNING JANUARY 1, 2029, EACH REDEEMABLE BEVERAGE CONTAINER SOLD IN 24 THE STATE SHALL INCLUDE A DEPICTION OF THE FOLLOWING INFORMATION: 25 (I) THE WORD “MARYLAND” OR THE LETTERS “MD”; AND 26 (II) 1. FOR REDEEMABLE BEVERA GE CONTAINERS WITH A 27 VOLUME OF 24 FLUID OUNCES OR LESS, A REFUND VALUE OF 10 CENTS; OR 28 14 SENATE BILL 342 2. FOR REDEEMABLE BEVERA GE CONTAINERS WITH A 1 VOLUME OF MORE THAN 24 FLUID OUNCES, A REFUND VALUE OF 15 CENTS. 2 (2) THE DEPARTMENT MAY ADJUST THE REFUND VALUES SPECIFIED 3 IN PARAGRAPH (1) OF THIS SUBSECTION: 4 (I) IF THE DEPARTMENT DETERMINES ALTERING THE REFUND 5 VALUES IS NECESSARY TO MEET OR EXCEED PERFORMANCE TARGETS; OR 6 (II) AT THE REQUEST OF A BEVERAGE CONTAI NER 7 STEWARDSHIP ORGANIZATION. 8 (3) BEGINNING JANUARY 1, 2034, THE DEPARTMENT SHALL 9 INCREASE THE REFUND VALUES SPECIFIED IN PARAGRAPH (1) OF THIS SUBSECTION 10 BY 5 CENTS IF THE DEPARTMENT DETERMINES THAT FOR 2 CONSECUTIVE 11 CALENDAR YEARS THE REDEMPTION RATE WAS LESS THAN 90% OF THE TOTAL 12 NUMBER OF BEVERAGE CONTAINERS SOLD IN THE STATE. 13 (B) A BEVERAGE CONTAINER DEPICTING THE INFORMATION SPECIFIED IN 14 SUBSECTION (A) OF THIS SECTION MAY NOT BE SOLD TO A CON SUMER BEFORE 15 JANUARY 1, 2029. 16 (C) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 17 BEGINNING JANUARY 1, 2029: 18 (I) THE WHOLESALE PRICE AND THE RETAIL PRICE OF A FULL 19 REDEEMABLE BEVERAGE CONTAINER SHALL INCLUDE THE REFUND VALUE OF THE 20 REDEEMABLE BEVERAGE CONTAINER; AND 21 (II) A RETAILER SHALL INCLU DE ON A CUSTOMER ’S SALES 22 RECEIPT THE REFUND V ALUE OF A REDEEMABLE BEVERAGE CONTAINER SOLD BY 23 THE RETAILER TO THE CUSTOMER. 24 (2) THE RETAIL PRICE OF A FULL REDEEMABLE BEVE RAGE 25 CONTAINER SOLD BY AN ON–PREMISES SELLER MAY NOT INCLUDE THE REFUND 26 VALUE OF THE REDEEMABLE BEVERAGE CONTAINER. 27 9–1742. 28 (A) (1) THE PROGRAM SHALL PROVIDE A RANGE OF OPTIONS F OR 29 CUSTOMERS TO CONVENI ENTLY REDEEM EMPTY R EDEEMABLE BEVERAGE 30 CONTAINERS FOR THE FULL REFUND VALUE, INCLUDING: 31 SENATE BILL 342 15 (I) AT A RET AILER’S PLACE OF BUSINESS THROUGH DIRECT 1 TAKE–BACK BY THE RETAILER , REVERSE VENDING MACH INES, A BAG DROP 2 PROGRAM, OR OTHER REDEMPTION METHODS; 3 (II) DEDICATED AND CONVENI ENTLY LOCATED REDEMP TION 4 FACILITIES OPERATED BY RETAILERS , PUBLIC ENTITIES , OR THE BEVERAGE 5 CONTAINER STEWARDSHIP ORGANIZATION; AND 6 (III) PLACING REDEEMABLE BE VERAGE CONTAINER 7 REDEMPTION AND PROCESSING METHODS, SUCH AS REVERSE VENDING MACHINES, 8 BAG DROP PROGRAMS , AND ACCOUNT –BASED BULK PROCESSIN G PROGRAMS , IN 9 AREAS: 10 1. WITH A HIGH NUMBER OF PEDESTRIANS; AND 11 2. WHERE INDIVIDUALS PUR CHASE OR USE BEVERAG E 12 CONTAINERS. 13 (2) THE PROGRAM SHALL PROVIDE A RANGE OF OPTIONS F OR 14 ON–PREMISES SELLERS TO CONVENIENTLY REDEEM EMPTY REDEEMABLE 15 BEVERAGE CONTAINERS FOR THE FULL REFUND VALUE, INCLUDING: 16 (I) AN ACCOUNT –BASED REFUND ISSUED BY THE BEVERAGE 17 CONTAINER STEWARDSHI P ORGANIZATION OR IT S AGENTS FOLLOWING T HE 18 COLLECTION OF EMPTY REDEEMABLE BEVERAGE CONTAINERS BY THE BE VERAGE 19 CONTAINER STEWARDSHIP ORGANIZATION OR ITS AGENTS FROM THE ON–PREMISES 20 SELLER; OR 21 (II) AN ACCOUNT–BASED REFUND ISSUED BY THE OPERATOR OF 22 A BAG DROP PROGRAM. 23 (B) (1) A PERSON SHALL APPLY TO THE DEPARTMENT FOR A LICENSE TO 24 OPERATE A REDEMPTION FACILITY IN THE STATE. 25 (2) THE DEPARTMENT SHALL DEVE LOP STANDARDS AND A 26 LICENSING PROCESS FO R THE ESTABLISHMENT AND OPERATION OF RED EMPTION 27 FACILITIES. 28 (C) SUBJECT TO SUBSECTION (D) OF THIS SECTION , A REDEMPTION 29 FACILITY SHALL ACCEP T ALL TYPES OF EMPTY REDEEMABLE BEVERAGE 30 CONTAINERS FOR REDEMPTION. 31 (D) A RETAILER OR REDEMPTI ON FACILITY MAY REFU SE TO ACCEPT AN 32 16 SENATE BILL 342 EMPTY REDEEMABLE BEVERAGE CONTAINER THAT: 1 (1) IS DIRTY; 2 (2) IS BROKEN; 3 (3) CONTAINS MATERIAL FOR EIGN TO THE NORMAL C ONTENTS OF 4 THE BEVERAGE CONTAINER; OR 5 (4) THE RETAILER OR REDEM PTION F ACILITY BELIEVES WAS NOT 6 SOLD IN THE STATE. 7 (E) (1) THIS SUBSECTION APPLIES TO A RETAILER WITH AT LEAST 3,000 8 SQUARE FEET OF SALES FLOOR SPACE AND AT L EAST 150 SQUARE FEET OF SHELF 9 SPACE DEDICATED TO THE DISPLAY OF REDEEMABLE BEVERAGE CONTAINERS. 10 (2) SUBJECT TO SUBSECTION (D) OF THIS SECTION , A RETAILER 11 SHALL: 12 (I) ESTABLISH AND MAINTAI N A DEDICATED AREA A T THE 13 RETAILER’S PLACE OF BUSINESS TO ACCEPT EMPTY REDE EMABLE BEVERAGE 14 CONTAINERS; 15 (II) ACCEPT AT THE RETAILE R’S PLACE OF BUSINESS ANY 16 EMPTY REDEEMABLE BEVERAG E CONTAINERS RETURNE D FOR REDEMPTION 17 DURING THE RETAILER’S BUSINESS HOURS; AND 18 (III) PAY TO THE REDEEMER T HE REFUND VALUE FOR EACH 19 EMPTY REDEEMABLE BEVERAGE CONTAINER REDEEMED. 20 (3) RETAILERS MAY MEET THE REQUIREMENTS IN PARAGRAPH (2) OF 21 THIS SUBSECTION THROUGH VARIOUS METHODS, INCLUDING: 22 (I) SUPPLEMENTING THE MANUAL COLLECTION AND STORING 23 OF REDEEMED REDEEMAB LE BEVERAGE CONTAINE RS WITH A REVERSE VE NDING 24 MACHINE, A BAG DROP PROGRAM , OR OTHER COUNTING AN D SORTING METHODS; 25 AND 26 (II) GROUPING BEVERAGE CON TAINER REDEMPTION AN D 27 PROCESSING METHODS WITH THOSE OF OTHER RETAILERS IF: 28 1. THE BEVERAGE CONTAINE R STEWARDSHIP 29 ORGANIZATION APPROVES THE PROPOSAL; AND 30 SENATE BILL 342 17 2. THE RETAILERS PARTICI PATING IN THE GROUPE D 1 METHODS PROVIDE CONSISTENT SERVICE , MARKETING, AND SITE REDEMPTION 2 LOCATIONS THAT COMPL Y WITH DISTANCE PROV ISIONS DETERMINED BY THE 3 DEPARTMENT. 4 (4) A RETAILER WITHIN AN A REA THAT MEETS THE C ONVENIENCE 5 STANDARDS ESTABLISHE D BY THE DEPARTMENT UNDER § 9–1752 OF THIS 6 SUBTITLE MAY BE EXEMPT FROM THE REQUIREMENTS OF THIS SUBSECTION IF THE 7 RETAILER: 8 (I) IS LOCATED IN CLOSE P ROXIMITY TO A REDEMP TION 9 FACILITY IN THAT AREA; AND 10 (II) SHARES THE COST OF TH E OPERATION OF THE 11 REDEMPTION FACILITY WITH THE BEVERAGE CO NTAINER ST EWARDSHIP 12 ORGANIZATION. 13 (5) THE DEPARTMENT MAY: 14 (I) SET STANDARDS FOR THE NUMBER OF REVERSE VE NDING 15 MACHINES REQUIRED FOR RETAILERS LOCATED IN UNDERSERVED COMMUNITIES; 16 AND 17 (II) ESTABLISH A CAP FOR T HE NUMBER OF EMPTY 18 REDEEMABLE BEVERAGE CONTAINERS THAT MAY BE REDEE MED PER VISIT AT 19 SMALL RETAILERS. 20 (F) SUBJECT TO SUBSECTION (D) OF THIS SECTION, A RETAILER WITH LESS 21 THAN 3,000 SQUARE FEET OF SALES FLOOR SPACE OR LESS THAN 150 SQUARE FEET 22 OF SHELF SPACE DEDIC ATED TO THE DISPLAY OF REDEEMABLE BEVER AGE 23 CONTAINERS SHALL: 24 (1) PROVIDE ON–SITE CASH REFUNDS FOR THE REDEMPTION OF ANY 25 EMPTY REDEEMABLE BEVERAGE CONTAINER THAT IS OF THE SAME MATERIAL AND 26 SIZE AS THOSE THAT A RE SOLD BY THE RETAI LER IF THE EMPTY RED EEMABLE 27 BEVERAGE CONTAINER B EING REDEEMED I S NOT ACCEPTED BY A REVERSE 28 VENDING MACHINE; AND 29 (2) POST AT THE RETAILER ’S ENTRANCE THE ADDRE SS OF THE 30 NEAREST REVERSE VEND ING MACHINE OR OTHER REDEMPTION METHOD TH AT 31 PROVIDES AN IMMEDIAT E CASH REFUND FOR RE DEEMING EMPTY REDEEM ABLE 32 BEVERAGE CONTAINERS. 33 18 SENATE BILL 342 (G) (1) A PERSON THAT PROVIDES A REVERSE VENDING MA CHINE FOR 1 THE REDEMPTION OF EMPTY REDEEMABLE BEVERAGE CONTAINERS SHALL: 2 (I) PROVIDE AN OPTION FOR REDEEMING EMPTY REDEEMABLE 3 BEVERAGE CONTAINERS WHEN THE REVERSE VENDING MACHINE IS FULL, BROKEN, 4 OR UNDER REPAIR; AND 5 (II) PROVIDE AN OPTION FOR REDEEMING ANY EMPTY 6 REDEEMABLE BEVERAGE CONTAINERS NOT ACCEPTED BY THE REVERSE V ENDING 7 MACHINE. 8 (2) (I) THE DEPARTMENT SHALL ESTA BLISH A PROCESS FOR 9 SUBMITTING FOR REVIE W, APPROVING, AND MONITORING AN AC COUNT–BASED 10 BULK PROCESSING PROGRAM THAT: 11 1. ENSURES THAT THE PROG RAM WILL ACCURATELY 12 REFUND DEPOSITS AND MAINTAIN AND REPORT DATA FROM EACH TRANS ACTION; 13 AND 14 2. IDENTIFIES THE INFORM ATION THAT MUST BE 15 SUBMITTED TO THE DEPARTMENT FOR APPROVAL OF THE PROGRAM. 16 (II) A PERSON THAT INTENDS TO PROVIDE AN ACCOUNT–BASED 17 BULK PROCESSING PROG RAM FOR THE REDEMPTI ON OF EMPTY REDEEMAB LE 18 BEVERAGE CONTAINERS SHALL SUBMIT INFORMA TION IDENTIFIED UNDE R 19 SUBPARAGRAPH (I) OF THIS PARAGRAPH TO THE DEPARTMENT FOR APPROVAL OF 20 THE PROGRAM. 21 (H) (1) REFUNDS PROVIDED FOR AN EMPTY REDEEMED RE DEEMABLE 22 BEVERAGE CONTAINER SHALL BE: 23 (I) IN CASH; 24 (II) IN THE FORM OF A RECEIPT FROM A REVER SE VENDING 25 MACHINE OR ACCOUNT–BASED REDEMPTION SYSTEM, IF: 26 1. THE RECEIPT CAN BE EXCHANGED FOR CASH WITHIN 27 60 DAYS AFTER THE RECEIPT IS ISSUED; AND 28 2. THERE IS NO REQUIREMENT THAT OTHER GOODS BE 29 PURCHASED TO RECEIVE THE CASH REFUND; OR 30 SENATE BILL 342 19 (III) CREDITED TO AN ACCOUN T BY THE RECEIVER OF THE 1 EMPTY REDEEMABLE BEV ERAGE CONTAINER SO T HAT THE CONSUMER CAN 2 RECEIVE THE REFUND O R A REFUND RECEIPT W ITHIN A SPECIFIED NU MBER OF 3 DAYS, AS DETERMINED BY THE DEPARTMENT, AFTER REDEEMING THE EMPTY 4 REDEEMABLE BEVERAGE CONTAINER. 5 (2) THE BEVERAGE CONTAINE R STEWARDSHIP ORGANI ZATION 6 SHALL REIMBURSE A RETAILER FOR THE VALUE OF VALID RECEIPTS REDEEMED BY 7 CONSUMERS. 8 (I) (1) A REDEMPTION FACILITY , RETAILER, OR ANY OTHER PERSON 9 THAT ACCEPTS REDEEMABLE BEVERAGE CONTAINERS FOR REDEMPTION SHALL BE 10 REIMBURSED BY THE BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION OR ITS 11 AGENT FOR THE HANDLI NG OF EACH EMPTY RED EEMABLE BEVERAGE CONTAINER 12 REDEEMED. 13 (2) (I) THE DEPARTMENT SHALL SET A HANDLING FEE TO BE PAID 14 BY THE BEVERAGE CONT AINER STEWARDSHIP OR GANIZATION OR ITS AG ENT TO A 15 REDEMPTION FACILITY, RETAILER, OR ANY OTHER PERSON THAT ACCEPTS EMPTY 16 REDEEMABLE BEVERAGE CONTAINERS FOR REDEMPTION. 17 (II) 1. THE HANDLING FEE SHAL L BE SET AT AN AMOUN T 18 THAT COVERS THE COSTS OF COLLECT ING, SORTING, PROCESSING, AND 19 TRANSPORTING EMPTY R EDEEMABLE BEVERAGE C ONTAINERS FOR RECYCL ING, 20 REUSE, OR REFILLING. 21 2. THE DEPARTMENT MAY INCREA SE THE HANDLING 22 FEE IF THE DEPARTMENT DETERMINES AN INCREASE IS NECESSARY TO ENCOURAGE 23 THE ESTABLISHMENT OF MORE REDEMPTION FACILITIES. 24 (J) (1) AN ON–PREMISES SELLER THAT PROVIDES EMPTY REDEEMABLE 25 BEVERAGE CONTAINERS FOR REDEMPTION SHALL BE REIMBURSED BY THE 26 BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION OR ITS AGENT FOR: 27 (I) THE REFUNDS PAID BY THE ON–PREMISES SELLER FOR THE 28 EMPTY REDEEMED REDEEMABLE BEVERAGE CONTAINERS; AND 29 (II) THE HANDLING OF EACH EMPTY REDEEMABLE BEV ERAGE 30 CONTAINER REDEEMED. 31 (2) (I) THE DEPARTMENT SHALL SET A MATERIAL HANDLING FEE 32 TO BE PAID BY THE BE VERAGE CONTAINER STEWARDSHIP ORGANIZATION OR ITS 33 AGENT TO AN ON –PREMISES SELLER THAT PROVIDES EMPTY REDEE MABLE 34 20 SENATE BILL 342 BEVERAGE CONTAINERS FOR REDEMPTION. 1 (II) THE HANDLING FEE SHAL L BE SET AT AN AMOUN T THAT 2 COVERS THE COSTS OF TEMPORARY STORAGE , PRELIMINARY SORTING , AND 3 PREPARING EACH REDEE MABLE BEVERAGE CONTA INER REDEEMED FOR 4 COLLECTION. 5 (3) THE BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION OR ITS 6 AGENT SHALL PROVIDE TO AN ON–PREMISES SELLER: 7 (I) ANY RECEPTACLES OR BA GS REQUIRED FOR THE 8 PRELIMINARY SORTING OF RE DEEMED REDEEMABLE BE VERAGE CONTAINERS BY 9 THE ON–PREMISES SELLER; AND 10 (II) ANY LABELS NECESSARY FOR ATTRIBUTING THE 11 REDEEMED REDEEMABLE BEVERAGE CONTAINERS TO THE ON–PREMISES SELLER. 12 (K) A DEPOSIT INITIATOR TH AT COLLECTS A DEPOSI T FROM A RETAILER , 13 REDEMPTION FACILITY , OR ANY OTHER PERSON THAT ACCEPTS REDEEMA BLE 14 BEVERAGE CONTAINERS FOR REDEMPTION SHALL ACCOUNT FOR ANY DEPOSITS IN 15 ACCORDANCE WITH § 9–1743 OF THIS SUBTITLE. 16 (L) REDEEMED EMPTY REDEEM ABLE BEVERAGE CONTAI NERS SHALL BE 17 COLLECTED FOR RETUR N TO THE BEVERAGE CO NTAINER STEWARDSHIP 18 ORGANIZATION FOR SALE AS SCRAP MATERIAL TO FINANCE THE PROGRAM. 19 9–1743. 20 (A) A DEPOSIT INITIATOR SH ALL DEPOSIT ANY DEPO SITS COLLECTED 21 UNDER § 9–1742 OF THIS SUBTITLE INTO A DEPOSIT COLLECTION ACCOUNT THAT IS 22 MAINTAINED SEPARATELY FROM ALL OTHER REVENUES. 23 (B) THE FUNDS IN THE DEPOSIT COLLECTION ACCOUNT MAY BE USED ONLY 24 TO PAY THE REFUND VA LUE OF AN EMPTY REDE EMABLE BEVERAGE CONT AINER 25 BEING REDEEMED. 26 (C) A DEPOSIT INITIATOR SH ALL REPORT TO THE BE VERAGE CONTAINER 27 STEWARDSHIP ORGANIZA TION, AT A FREQUENCY DETER MINED BY THE 28 DEPARTMENT, THE FOLLOWING INFORMATION: 29 (1) THE NUMBER OF REDEEMA BLE BEVERAGE CONTAIN ERS SOLD 30 AND EMPTY REDEEMABLE BEVERAGE CONTAINERS REDEEMED SINCE THE L AST 31 REPORT WAS SUBMITTED TO THE BEVERAGE CONTAINER STEWARDSHI P 32 SENATE BILL 342 21 ORGANIZATION UNDER THIS SUBSECTION; 1 (2) THE FUNDS DEPOSITED I NTO THE DEPOSIT COLL ECTION 2 ACCOUNT AND THE REFU NDS ISSUED FROM THE DEPOSIT COLLECTION A CCOUNT 3 SINCE THE LAST REPOR T WAS SUBMITTED TO T HE BEVERAGE CONTAINE R 4 STEWARDSHIP ORGANIZATION UNDER THIS SUBSECTION; 5 (3) ANY INCOME EARNED ON THE FUNDS IN THE DEP OSIT 6 COLLECTION ACCOUNT S INCE THE LAST REPORT WAS SUBMITTED TO THE 7 BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION UNDER THIS SUBSECTION; 8 (4) THE BALANCE OF THE DEPOSIT COLLECTION ACCOUNT; AND 9 (5) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT. 10 (D) (1) THE DEPARTMENT SHALL DETE RMINE THE POINT AT W HICH A 11 DEPOSIT BECOMES AN UNCLAIMED DEPOSIT. 12 (2) UNCLAIMED DEPOSITS AR E CALCULATED AS THE AMOUNT OF 13 FUNDS TRANSFERRED TO A DEPOSIT COLLECTION ACCOUNT THAT ARE IN E XCESS 14 OF THE SUM OF: 15 (I) ANY INTEREST EARNINGS ON THE DEPOSIT COLLE CTION 16 ACCOUNT DURING THE T IME FOR WHICH UNCLAI MED DEPOSITS ARE BEI NG 17 CALCULATED; AND 18 (II) THE TOTAL AMOUNT OF THE REFUND VALUE RECEIVED FOR 19 THE EMPTY REDEEMABLE BEVERAGE CONTAINERS REDEEMED DURING THE TIME 20 FOR WHICH THE UNCLAIMED DEPOSITS ARE BEING CALCULATED. 21 (3) A DEPOSIT INITIATOR SH ALL TRANSFER ALL UNC LAIMED 22 DEPOSITS TO THE BEVE RAGE CONTAINER STEWA RDSHIP ORGANIZATION AT A 23 FREQUENCY DETERMINED BY THE DEPARTMENT. 24 (4) THE BEVERAGE CONTAINE R STEWARDSHIP ORGANI ZATION 25 SHALL: 26 (I) ESTABLISH A RESERVE A CCOUNT TO MANAGE ALL 27 UNCLAIMED DEPOSITS; AND 28 (II) BEGINNING JANUARY 1, 2030, TRANSFER 10% OF ALL 29 UNCLAIMED DEPOSITS T O THE CHESAPEAKE BAY TRUST WITH A FREQUENC Y 30 DETERMINED BY THE DEPARTMENT. 31 22 SENATE BILL 342 (5) THE BEVERAGE CONTAINE R STEWARDSHIP ORGANI ZATION 1 SHALL USE THE FUNDS IN THE RESERVE ACCOU NT ESTABLISHED UNDE R 2 PARAGRAPH (4) OF THIS SUBSECTION TO: 3 (I) ACHIEVE THE INTENT OF THE GENERAL ASSEMBLY STATED 4 IN § 9–1738 OF THIS SUBTITLE; AND 5 (II) MEET OR EXCEED THE PE RFORMANCE TARGETS 6 ESTABLISHED IN § 9–1740 OF THIS SUBTITLE. 7 (6) THE UNCLAIMED DEPOSITS TRANSFERRED TO THE CHESAPEAKE 8 BAY TRUST UNDER PARAGRAPH (4)(II) OF THIS SUBSECTION M AY BE USED ONLY 9 FOR THE COSTS OF ADMINISTERING AND FINANCING THE GRANT PROGRAM UNDER 10 § 9–1750 OF THIS SUBTITLE. 11 9–1744. 12 (A) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, THIS SECTION 13 APPLIES TO A PRODUCE R THAT SELLS , OFFERS FOR SALE , OR DISTRIBUTES 14 REDEEMABLE BEVERAGE CONTAINERS IN THE STATE. 15 (2) (I) IF THE BEVERAGE CONTA INER IS SOLD UNDER T HE 16 PRODUCER’S OWN BRAND OR LACKS IDENTIFICATION OF A BRAND, THE PRODUCER 17 IS THE PERSON THAT MANUFACTURES THE REDEEMABLE BEVERAGE CONTAINER. 18 (II) IF THE REDEEMABLE BEV ERAGE CONTAINER IS 19 MANUFACTURED BY A PERSON OTHER THAN THE BRAND OWNER, THE PRODUCER IS 20 THE PERSON THAT IS THE LICENSEE OF A BRA ND OR TRADEMARK UNDER WHICH A 21 REDEEMABLE BEVERAGE CONTAINE R IS SOLD , OFFERED FOR SALE , OR 22 DISTRIBUTED IN THE STATE, WHETHER OR NOT THE TRADEMARK IS REGISTERED IN 23 THE STATE, UNLESS ANOTHER RESPO NSIBLE PERSON HAS CO NTRACTUALLY 24 ACCEPTED RESPONSIBILITY AS THE PRODUCER AND HAS JOINED THE B EVERAGE 25 CONTAINER STEWARDSHIP ORGANIZATION AS THE PRODUCER RESPONSIBLE FOR 26 THE REDEEMABLE BEVERAGE CONTAINER UNDER THIS SECTION. 27 (III) IF THERE IS NO PERSON DESCRIBED IN THIS PA RAGRAPH 28 OVER WHOM THE STATE CAN CONSTITUTIO NALLY EXERCISE JURIS DICTION, THE 29 PRODUCER IS THE PERSON THAT I MPORTS OR DISTRIBUTE S THE REDEEMABLE 30 BEVERAGE CONTAINER IN THE STATE. 31 (3) IF ANOTHER PERSON CON TRACTUALLY ACCEPTS 32 RESPONSIBILITY AS A PRODUCER UNDER PARAGRAPH (2)(II) OF THIS SUBSECTION, 33 SENATE BILL 342 23 THE PRODUCER MUST PR OVIDE A CERTIFIED CO PY O F THE CONTRACTUAL 1 AGREEMENT TO THE BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION. 2 (B) BEGINNING JANUARY 1, 2029, A PRODUCER MAY NOT SELL, OFFER FOR 3 SALE, OR DISTRIBUTE IN OR IMPORT INTO THE STATE A REDEEMABLE BE VERAGE 4 CONTAINER UNLESS THE PRODUCER: 5 (1) IS REGISTERED WITH TH E DEPARTMENT IN ACCORDA NCE WITH 6 THIS SECTION; 7 (2) HAS PAID THE REGISTRA TION FEE UNDER SUBSE CTION (F) OF 8 THIS SECTION; AND 9 (3) IS PART OF THE BEVERA GE CONTAINER STEWARD SHIP 10 ORGANIZATION THAT: 11 (I) HAS BEEN APPROVED BY THE DEPARTMENT UNDER § 12 9–1745 OF THIS SUBTITLE; AND 13 (II) HAS A BEVERAGE CONTAI NER STEWARDSHIP PLAN 14 APPROVED BY THE DEPARTMENT UNDER § 9–1746 OF THIS SUBTITLE. 15 (C) ON OR BEFORE MARCH 1 EACH YEAR , BEGINNING IN 2028, THE 16 BEVERAGE CONTAINER S TEWARDSHIP ORGANIZ ATION SHALL PROVIDE TO THE 17 DEPARTMENT: 18 (1) A LIST OF EACH PRODUCE R PARTICIPATING IN T HE BEVERAGE 19 CONTAINER STEWARDSHIP ORGANIZATION; AND 20 (2) FOR EACH PRODUCER , THE REGISTRATION FOR M REQUIRED 21 UNDER SUBSECTION (D) OF THIS SECTION. 22 (D) (1) THE DEPARTMENT SHALL CREATE A REGISTRATION FORM THAT 23 REQUIRES EACH PRODUC ER PARTICIPATING IN THE BEVERAGE CONTAIN ER 24 STEWARDSHIP ORGANIZATION TO PROVIDE THE FOLLOWING INFORMATION: 25 (I) THE NAME , PRIMARY BUSINESS ADD RESS, AND CONTACT 26 INFORMATION OF THE P ERSON RESPONSIBLE FOR ENSURING COMPLIANCE WITH 27 THIS PART; 28 (II) A LIST OF EACH BRAND O F REDEEMABLE BEVERAG E 29 CONTAINERS THAT THE PRODUCER INTENDS TO SELL, OFFER FOR SALE , OR 30 DISTRIBUTE IN THE STATE, INCLUDING THE SIZE A ND MATERIAL OF THE 31 24 SENATE BILL 342 REDEEMABLE BEVERAGE CONTAINERS FOR EACH BRAND; 1 (III) FOR EACH REDEEMABLE BEVERAGE CONTAINER SPECIFIED 2 IN THE REGISTRATION, WHETHER THE REDEEMABLE BEVERAGE CONTAINER: 3 1. IS REFILLABLE; AND 4 2. DEPICTS A UPC OR MARYLAND–SPECIFIC UPC 5 BARCODE; 6 (IV) HOW EACH PRODUCER WILL PREVENT THE FRA UDULENT 7 SALE AND REDEMPTION OF REDEEMABLE BEVERAGE CONTAINERS THAT WERE NOT 8 SOLD IN THE STATE; 9 (V) THE NUMBER OF REDEEMA BLE BEVERAGE CONTAIN ERS 10 EACH PRODUCER SOLD IN THE STATE IN THE IMMEDIATELY PRECEDING CALENDAR 11 YEAR; AND 12 (VI) ANY OTHER INFORMATION REQUIRED BY THE 13 DEPARTMENT. 14 (2) A PRODUCER SHALL SUBMIT A COMPLETED REGISTRATION FORM 15 TO THE BEVERAGE CONT AINER STEWARDSHIP OR GANIZATION THAT REPR ESENTS 16 THE PRODUCER. 17 (E) ON A SCHEDULE DETERMINED BY THE DEPARTMENT, EACH PRODUCER 18 SHALL PAY A REGISTRA TION FEE ESTABLISHED BY THE DEPARTMENT UNDER 19 SUBSECTION (F) OF THIS SECTION. 20 (F) (1) THE DEPARTMENT SHALL ESTABLISH AN ANNUAL REGISTRATION 21 FEE FOR PRODUCERS TH AT SELL REDEEMABLE B EVERAGE CONTAINERS I N THE 22 STATE. 23 (2) THE REGISTRATION FEE SHALL BE SET IN A MANNER THAT: 24 (I) WHEN TAKEN IN COMBINA TION WITH ANTICIPATE D 25 REVENUES FROM PENALTIES COLLECTED UNDER § 9–1755 OF THIS SUBTITLE, WILL 26 PRODUCE FUNDS SUFFICIENT TO COVER THE DEPARTMENT’S ESTIMATED COSTS OF 27 PLANNING, IMPLEMENTING, ADMINISTERING, MONITORING, ENFORCING, AND 28 EVALUATING THE PROGRAM FOR THE UPCOMING YEAR; 29 (II) FOR THE FIRST YEAR OF THE PROGRAM DURING WHICH 30 REGISTRATION FEES ARE COLLECTED, SHALL COVER THE START–UP COSTS OF THE 31 SENATE BILL 342 25 PROGRAM THAT WERE INCURRED BY THE DEPARTMENT AND FINANCED FROM THE 1 GENERAL FUND; AND 2 (III) IS PROPORTIONAL TO A PRODUCER’S SHARE OF THE TOTAL 3 NUMBER OF REDEEMABLE BEVERAGE CONTAINERS SOLD IN THE STATE FOR THE 4 IMMEDIATELY PRECEDING CALENDAR YEAR. 5 (3) THE DEPARTMENT SHALL: 6 (I) IF THE RE VENUES FROM THE REGI STRATION FEES IN THE 7 IMMEDIATELY PRECEDIN G YEAR EXCEED THE CO STS SPECIFIED IN PAR AGRAPH 8 (2)(I) OF THIS SUBSECTION, CARRY THE EXCESS REV ENUES FORWARD TO RED UCE 9 REGISTRATION FEES THE FOLLOWING YEAR; AND 10 (II) IF THE REVENUES FROM THE REGISTRATION FEES IN THE 11 IMMEDIATELY PRECEDIN G YEAR DO NOT COVER THE COSTS SPECIFIED IN 12 PARAGRAPH (2)(I) OF THIS SUBSECTION , ADJUST REGISTRATION FEES FOR THE 13 FOLLOWING YEAR TO AN AMOUNT THAT WILL COV ER THE DEPARTMENT’S ACTUAL 14 COSTS FROM THE IMMEDIATELY PRECEDING YEAR. 15 (4) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 16 PARAGRAPH, REGISTRATION FEES COLLECTED UNDER THIS SUBSECTION SHALL BE: 17 1. TRANSFERRED TO THE STATE RECYCLING TRUST 18 FUND UNDER § 9–1707(F) OF THIS SUBTITLE; AND 19 2. USED ONLY TO COVER THE DEPARTMENT’S COSTS OF 20 PLANNING, IMPLEMENTING, ADMINISTERING, MONITORING, ENFORCING, AND 21 EVALUATING THE PROGRAM. 22 (II) THE PORTION OF THE REGISTRATION FEES THAT COVERED 23 THE START–UP COSTS OF THE PROGRAM AND WERE FINANCED FROM THE GENERAL 24 FUND DURING THE FIRST YEAR OF THE PROGRAM FOR WHICH REGISTRATION FEES 25 ARE COLLECTED IN ACC ORDANCE WITH PARAGRA PH (2)(II) OF THIS SUBSECTION 26 SHALL BE DEPOSITED INTO THE GENERAL FUND. 27 9–1745. 28 (A) ON OR BEFORE OCTOBER 1, 2027, THE DEPARTMENT SHALL APPROVE, 29 FOR A PERIOD NOT TO EX CEED 10 YEARS, A SINGLE BEVERAGE CO NTAINER 30 STEWARDSHIP ORGANIZATION TO REPRESENT ALL PRODUCERS IN FULFILLING THE 31 REQUIREMENTS OF THIS PART, IF THE BEVERAGE CONT AINER STEWARDSHIP 32 ORGANIZATION DEMONSTRATES THAT IT HAS: 33 26 SENATE BILL 342 (1) THE ABILITY , AS DETERMINED BY THE DEPARTMENT, TO 1 ADMINISTER THE REQUIREMENTS OF A BEVERAGE CONTAINER STEWARDSHIP PLAN 2 UNDER § 9–1746 OF THIS SUBTITLE; 3 (2) A GOVERNING BOARD CONS ISTING OF PRODUCERS THAT 4 REPRESENT THE DIVERSITY OF APPLICABLE REDEEMABLE BEVERAGE CONTAINERS 5 IN THE MARKET; 6 (3) SET NO UNREASONABLE B ARRIERS TO JOINING T HE BEVERAGE 7 CONTAINER STEWARDSHIP ORGANIZATION AND W ILL TAKE INTO CONSID ERATION 8 THE NEEDS OF SMALL P RODUCERS THAT DO NOT GENERATE A HIGH VOLU ME OF 9 CONTAINERS; 10 (4) ADEQUATE FINANCIAL RE SPONSIBILITY AND SAF EGUARDS, 11 INCLUDING FRAUD PREVENTION MEASURES AND AN AUDIT SCHEDULE; 12 (5) THE ABILITY TO SECURE THE CAPITAL NECESSAR Y FOR THE 13 INITIAL INVESTMENT I N INFRASTRUCTURE , SORTING EQUIPMENT , SOFTWARE, 14 TRANSPORTATION, AND OTHER START–UP EXPENSES; AND 15 (6) MET ANY OTHER REQUIREMENTS SET BY THE DEPARTMENT. 16 (B) IF NO APPLICATION TO OPERATE A BEVERAGE C ONTAINER 17 STEWARDSHIP ORGANIZATION IS SUBMITTED BY PRODUCERS TO THE DEPARTMENT 18 BY OCTOBER 1, 2027, THE DEPARTMENT SHALL: 19 (1) ESTABLISH OR DESIGNATE A BEVERAGE CONTAINER 20 STEWARDSHIP ORGANIZATION TO IMPLEMENT THIS PART; AND 21 (2) REQUIRE ALL PRODUCERS , AS A CONDITION OF SE LLING OR 22 DISTRIBUTING BEVERAGES IN THE STATE, TO JOIN AND FUND THE DESIGNATED 23 ORGANIZATION. 24 (C) THE DEPARTMENT MAY RENEW THE APPROVAL OF THE BEVERAGE 25 CONTAINER STEWARDSHI P ORGANIZATION UNDER SUBSECTION (A) OF THIS 26 SECTION IF THE BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION CONTINUES 27 TO MEET THE REQUIREMENTS OF THIS SECTION AND ANY OTHER REQUIREMENT SET 28 BY THE DEPARTMENT. 29 (D) (1) THE DEPARTMENT SHALL REVO KE THE APPROVAL OF T HE 30 BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION IF THE DEPARTMENT 31 DETERMINES THAT THE BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION: 32 SENATE BILL 342 27 (I) FAILED TO MEET THE REQUIREMENTS OF THIS SECTION; OR 1 (II) FAILED TO IMPLEMENT AND ADMINISTER AN APPROV ED 2 BEVERAGE CONTAINER S TEWARDSHIP PLAN IN A CCORDANCE WITH § 9–1746 OF 3 THIS SUBTITLE. 4 (2) IF THE DEPARTMENT REVOKES TH E APPROVAL OF THE 5 BEVERAGE CONTAINER S TEWARDSHIP ORGANIZATION UNDER PARAGRAPH (1) OF 6 THIS SUBSECTION: 7 (I) THE DEPARTMENT MAY APPROV E ONE OR MORE 8 ADDITIONAL BEVERAGE CONTAINER STEWARDSHIP ORGANIZATIONS TO CARRY OUT 9 THE RESPONSIBILITIES OF THE BEVERAGE CONT AINER STEWARDSHIP 10 ORGANIZATION THAT WA S REVOKED , SUBJECT TO ONE OR MO RE OF THE 11 ADDITIONAL BEVERAGE CONTAINER STEWARDSHIP ORGANIZATIONS MEETING THE 12 REQUIREMENTS SPECIFIED IN SUBSECTION (A) OF THIS SECTION; AND 13 (II) THE TRUSTEE OR ESCROW AGENT OF THE TRUST F UND OR 14 ESCROW ACCOUNT ESTAB LISHED IN THE BEVERA GE CONTAINER STEWARD SHIP 15 PLAN UNDER § 9–1746(A)(3)(VI) OF THIS SUBTITLE SHALL: 16 1. RECEIVE ALL PAYMENTS DIRECTLY FROM 17 PRODUCERS THAT WOULD HAVE BEEN PAID TO TH E BEVERAGE CONTAINER 18 STEWARDSHIP ORGANIZATION; 19 2. DEPOSIT THE PAYMENTS RECEIVED UNDER ITEM 1 OF 20 THIS ITEM INTO THE TRUST FUND OR ESCROW ACCOUNT; AND 21 3. MAKE PAYMENTS FROM THE TRUST FUND OR ESCROW 22 ACCOUNT AS DIRECTED BY THE DEPARTMENT TO IMPLEMENT THE REQUIREMENTS 23 OF THIS PART. 24 9–1746. 25 (A) (1) ON OR BEFORE MARCH 1, 2028, THE BEVERAGE CONTAIN ER 26 STEWARDSHIP ORGANIZA TION SHALL SUBMIT A BEVERAGE CO NTAINER 27 STEWARDSHIP PLAN TO THE DEPARTMENT. 28 (2) A BEVERAGE CONTAINER STEWARDSHIP PLAN SHALL: 29 (I) IDENTIFY AND INCLUDE THE CONTACT INFORMATION FOR 30 EACH PRODUCER INTENDED TO BE COVERED UNDER THE PLAN; 31 28 SENATE BILL 342 (II) IDENTIFY EACH BRAND OF REDEEMABLE BEVERA GE 1 CONTAINER INTENDED T O BE SOLD UNDER THE PLAN, INCLUDING THE SIZE A ND 2 MATERIAL OF THE REDE EMABLE BEVERAGE CONT AINERS FOR EACH BRAN D AND 3 WHETHER THE REDEEMABLE BEVERAGE CONTAINERS ARE REFILLABLE; 4 (III) DESCRIBE: 5 1. THE FINANCI NG INFORMATION SPECI FIED IN 6 PARAGRAPH (3) OF THIS SUBSECTION; 7 2. THE LOCATION AND DIST RIBUTION OF 8 ACCOUNT–BASED BULK PROCESSIN G PROGRAMS , BAG DROP PROGRAMS , AND 9 REDEMPTION FACILITIES THE ORGANIZATION WILL DEVELOP, AS NECESSARY TO: 10 A. COMPLY WITH THE CONVE NIENCE STANDARDS 11 ESTABLISHED BY THE DEPARTMENT UNDER § 9–1752 OF THIS SUBTITLE; AND 12 B. ACHIEVE THE PERFORMAN CE TARGETS UNDER § 13 9–1740 OF THIS SUBTITLE; 14 3. HOW THE PERFORMANCE T ARGETS WILL BE MET O R 15 EXCEEDED FOR THE 5–YEAR PERIOD FOLLOWING THE YEAR IN WHICH THE PLAN IS 16 APPROVED; 17 4. HOW STAKEHOLDER COMME NTS WERE CONSIDERED 18 AND REFLECTED IN THE DEVELOPMENT OF THE P LAN, INCLUDING THE ROLE O F 19 RETAILERS, DISTRIBUTORS, AND LOCAL GOVERNMENTS IN PLAN IMPLEMENTATION; 20 5. THE A DMINISTRATION AND IM PLEMENTATION OF 21 THE PLAN , INCLUDING ANY STAFFI NG THAT WILL BE NECE SSARY FOR THESE 22 PURPOSES; 23 6. THE ACTIONS THAT HAVE BEEN TAKEN AND THAT 24 WILL BE TAKEN FOR PU BLIC OUTREACH , EDUCATION, AND COMMUNICATION , 25 INCLUDING MESSAGING AND IDENTIFICATION OF TARGET AUDIENCES; 26 7. THE ANTICIPATED INVES TMENTS THAT WILL BE 27 MADE TO IMPROVE THE REUSE OF BEVERAGE CO NTAINERS, INCLUDING THE 28 SOURCE OF FUNDING FOR THE INVESTMENTS; AND 29 8. THE ACTIONS THE ORGAN IZATION WILL TAKE TO 30 ENSURE THE PLA N IS IMPLEMENTED IN A MANNER THAT COMPLI ES WITH THE 31 SENATE BILL 342 29 REQUIREMENTS OF SUBSECTION (D)(2) OF THIS SECTION; 1 (IV) LIST THE STAKEHOLDERS CONSULTED IN DEVELOPING THE 2 PLAN; 3 (V) PROVIDE THE ANTICIPATED COSTS OF IMPLEMENTING THE 4 PLAN FOR 5 YEARS, BROKEN DOWN BY YEAR; 5 (VI) INCLUDE A CLOSURE AND TRANSFER PLAN FOR HANDLING 6 THE AFFAIRS OF THE B EVERAGE CONTAINER ST EWARDSHIP ORGANIZATION THAT 7 ENSURES THAT EACH PRODUCER INTENDED TO BE COVERED UNDER THE BEVERAGE 8 CONTAINER STEWARDSHIP PLAN CAN FULFILL T HE PRODUCER’S OBLIGATIONS IN 9 THE EVENT THAT THE B EVERAGE CONTAINER ST EWARDSHIP ORGANIZATI ON 10 DISSOLVES OR HAS ITS APPROVAL REVOKED UND ER § 9–1745 OF THIS SUBTITLE ; 11 AND 12 (VII) INCLUDE ANY OTHER INF ORMATION REQUESTED B Y THE 13 DEPARTMENT. 14 (3) THE FINANCING INFORMA TION INCLUDED IN A BEVE RAGE 15 CONTAINER STEWARDSHIP PLAN SHALL: 16 (I) EXPLAIN THE FINANCING FOR DIRECT INVESTMEN TS OR 17 REIMBURSEMENTS THAT WILL IMPROVE INFRAST RUCTURE IN A MANNER THAT 18 SUPPORTS REDEMPTION SERVICES AND TECHNOLOGIES; 19 (II) ESTABLISH A FEE STRU CTURE IN ACCORDANCE WITH 20 PARAGRAPH (4) OF THIS SUBSECTION F OR PRODUCERS PARTICI PATING IN THE 21 BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION; 22 (III) DESCRIBE THE COSTS OF MEETING THE PERFORMA NCE 23 TARGETS; 24 (IV) DESCRIBE THE INCENTIV ES USED TO ENCOURAGE 25 PRODUCERS TO: 26 1. INVEST IN REUSABLE AN D REFILLABLE BEVERAG E 27 CONTAINER SYSTEMS; AND 28 2. REDESIGN BEVERAGE CON TAINERS TO BE EASIER 29 AND LESS COSTLY TO RECYCLE; 30 (V) CREATE INCENTIVES FOR PRODUCERS TO USE A 31 30 SENATE BILL 342 MARYLAND–SPECIFIC UPC BARCODE TO REDUCE FRAUDULENT REDEMPTION; 1 (VI) ESTABLISH A TRUST FUND OR AN ESCROW ACCOUNT IN THE 2 STATE INTO WHICH THE BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION 3 SHALL DEPOSIT ALL UN EXPENDED FUNDS FOR U SE IN ACCORDANCE WIT H THIS 4 SECTION IN THE EVENT THAT THE BEVERAGE CO NTAINER STEWARDSHIP 5 ORGANIZATION DISSOLVES OR HAS ITS APPROVAL REVOKED BY THE DEPARTMENT 6 UNDER § 9–1745 OF THIS SUBTITLE; AND 7 (VII) MEET ANY OTHER REQUIR EMENTS ESTABLISHED B Y THE 8 DEPARTMENT. 9 (4) (I) THE FEE STRUCTURE REQUIRED UNDER PARAGRAPH (3) OF 10 THIS SUBSECTION FOR PRODUCERS PARTICIPATING IN THE BEVERAGE CONTAINER 11 STEWARDSHIP ORGANIZATION SHALL BE: 12 1. SET IN A MANNER THAT COVERS THE COSTS OF 13 ADMINISTERING THE BE VERAGE CONTAINER STE WARDSHIP ORGANIZATIO N AND 14 IMPLEMENTING THE BEVERAGE CONTAINER STEWARDSHIP PLAN; AND 15 2. BASED ON: 16 A. THE COSTS ASSOCIATED WITH TRANSPORTING , 17 COLLECTING, AND PROCESSING EACH TYPE OF REDEEMABLE B EVERAGE 18 CONTAINER MATERIAL; 19 B. WHETHER A PRODUCER ’S REDEEMABLE BEVERA GE 20 CONTAINERS ARE REFILLABLE; 21 C. WHETHER A PRODUCER ’S EMPTY REDEEMABLE 22 BEVERAGE CONTAINERS ARE EASY TO RECYCLE; 23 D. WHETHER A PRODUCER ’S REDEEMABLE BEVERAG E 24 CONTAINERS HAVE A MARYLAND–SPECIFIC UPC BARCODE; 25 E. A PRODUCER’S PORTION , BY MATERIAL TYPE, OF 26 REDEEMABLE BEVERAGE CONTAINERS SOLD IN THE STATE DURING THE PREVIOUS 27 CALENDAR YEAR; AND 28 F. ANY OTHER FACTOR THE DEPARTMENT DETERMINES 29 IS NECESSARY TO SUPPORT THE PROGRAM. 30 (II) 1. EXCEPT AS PROVIDED IN § 9–1745(D)(2) OF THIS 31 SENATE BILL 342 31 SUBTITLE, A P RODUCER PARTICIPATIN G IN THE BEVERAGE CO NTAINER 1 STEWARDSHIP ORGANIZA TION SHALL PAY THE F EE ESTABLISHED UNDER 2 PARAGRAPH (3) OF THIS SUBSECTION TO THE BEVERAGE CONTAINER STEWARDSHIP 3 ORGANIZATION. 4 2. THE BEVERAGE CONTAINE R STEWARDSHIP 5 ORGANIZATION SHALL DEPOSIT FEES RECEIVED UNDER THIS SUBPARAGRAPH TO AN 6 ACCOUNT HELD BY THE BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION. 7 3. THE BEVERAGE CONTAINE R STEWARDSHIP 8 ORGANIZATION MAY USE THE FEES RECEIVED UN DER THIS SUBPARAGRAP H ONLY 9 FOR IMPLEMENTING THE BEVERAGE CONTAINER STEWARDSHIP PLAN. 10 (5) THE DEPARTMENT SHALL SUBM IT A BEVERAGE CONTAI NER 11 STEWARDSHIP PLAN TO AN INDEPENDENT FINAN CIAL AUDITOR TO ENSU RE THAT 12 THE FINANCING PROPOSED IN THE PLAN WILL COVER THE COSTS OF IMPLEMENTING 13 THE PLAN. 14 (B) (1) (I) WITHIN 120 DAYS AFTER RECEIPT O F A BEVERAGE 15 CONTAINER STEWARDSHIP PLAN SUBMITTED TO THE DEPARTMENT UNDER THIS 16 SECTION, THE DEPARTMENT SHALL APPR OVE, APPROVE WITH CONDITI ONS, OR 17 DENY THE PLAN. 18 (II) IN DETERMINING WHETHE R TO APPROVE , APPROVE WITH 19 CONDITIONS, OR DENY A BEVERAGE CO NTAINER STEWARDSHIP PLAN, THE 20 DEPARTMENT SHALL: 21 1. CONSIDER WHETHER: 22 A. THE PLAN COMPLIES WIT H THE REQUIREMENTS O F 23 THIS SECTION; AND 24 B. THERE WAS SUFFICIENT ENGAGEMENT WITH 25 STAKEHOLDERS, INCLUDING LOCAL GOVE RNMENTS, RETAILERS, DISTRIBUTORS, 26 AND ON–PREMISES SELLERS, IN DEVELOPING THE PLAN; AND 27 2. CONSULT WITH THE ADVISORY COUNCIL. 28 (2) (I) THE DEPARTMENT MAY RESCIN D APPROVAL OF A 29 BEVERAGE CONTAINER STEWARDSHIP PLAN FOR GOOD CAUSE. 30 (II) THE BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION 31 MAY AMEND A RESCINDED BEVERAGE CONTAINER STEWARDSHIP PLAN AND SUBMIT 32 32 SENATE BILL 342 THE AMENDED PLAN TO THE DEPARTMENT FOR APPROVAL. 1 (3) (I) A BEVERAGE CONTAINER S TEWARDSHIP PLAN APPR OVED 2 BY THE DEPARTMENT MAY BE AMENDED WITH APPROVAL OF THE DEPARTMENT. 3 (II) THE DEPARTMENT MAY REQUIR E THAT AN APPROVED 4 BEVERAGE CONTAINER S TEWARDSHIP PLAN BE A MENDED IF THE REPORT 5 SUBMITTED UNDER § 9–1747 OF THIS SUBTITLE REF LECTS THAT THE 6 PERFORMANCE TARGETS HAVE NOT BEEN MET. 7 (C) AN APPROVED BEVERAGE CONTAINER STEWARDSHIP PLAN EXPIRES AT 8 THE END OF 5 YEARS. 9 (D) (1) THE BEVERAGE CONTAINE R STEWARDSHIP ORGANI ZATION 10 SHALL IMPLEMENT AND ADMINISTER A BEVERAGE CONTAINER STEWARDSHIP PLAN 11 WITHIN 6 MONTHS AFTER THE PLAN IS APPROVED. 12 (2) IN IMPLEMENTING AND ADMINISTERING A BEVERAGE CONTAINER 13 STEWARDSHIP PLAN , THE BEVERAGE CONTAIN ER STEWARDSHIP ORGAN IZATION 14 SHALL: 15 (I) FACILITATE LOGISTICS, THE INITIATION OF DEPOSITS, AND 16 THE ISSUANCE OF REFUNDS UNDER THE PLAN; 17 (II) COORDINATE THE LOGISTICS FOR TIMELY COLLECTION OF 18 REDEEMABLE BEVERAGE CONTAINERS FROM AN ON–PREMISES SELLER; 19 (III) ESTABLISH PROCEDURES FOR TRACKING REDEEMA BLE 20 BEVERAGE CONTAINERS SOLD IN THE STATE; 21 (IV) DESIGN AND OPERATE SE RVICES FOR THE 22 TRANSPORTATION AND PROCESSING OF REDEEMABLE BEVERAGE CONTAINERS; 23 (V) DEVELOP AND IMPLEMENT A PLAN FOR ESTABLISH ING, 24 OPERATING, AND MANAGING REDEMPT ION FACILITIES THAT WILL OFFER A WIDE 25 RANGE OF CONVENIENT REDEMPTION LOCATIONS AND TECHNOLOGIES THA T ARE 26 EASY TO USE, ACCESSIBLE, AND MEET OR EXCEED T HE CONVENIENCE STANDARDS 27 ESTABLISHED BY THE DEPARTMENT UNDER § 9–1752 OF THIS SUBTITLE; 28 (VI) DEVELOP AND IMPLEMENT A PLAN FOR THE DISTRIBUTION, 29 OPERATION, AND MAINTENANCE OF B EVERAGE CONTAINER RE DEMPTION AND 30 PROCESSING METHODS , INCLUDING REVERSE VE NDING MACHIN ES, BAG DROP 31 PROGRAMS, AND ACCOUNT–BASED BULK PROCESSING PROGRAMS; 32 SENATE BILL 342 33 (VII) DEVELOP ACCOUNTING AND CONTROL STANDARDS; 1 (VIII) IMPLEMENT ACCOUNTING , AUDIT, PAYMENT, AND 2 REPORTING PROCEDURES; 3 (IX) ESTABLISH A HIGH –VOLUME VALIDATION AN D AUDIT 4 SYSTEM TO PAY A BULK RATE TO AN ON–PREMISES SELLER FOR THE REDEMPTION 5 OF EMPTY REDEEMABLE BEVERAGE CONTAINERS; 6 (X) ESTABLISH AN APPLICAT ION PROCESS FOR LARG E 7 ON–PREMISES SELLERS TO APPLY FOR AND RECEIV E A BULK RATE FOR TH E 8 REDEMPTION OF HIGH VOLUMES OF EMPTY REDEEMABLE BEVERAGE CONTAINERS; 9 (XI) MARKET REDEEMABLE BEVERAGE CONTAINER MATERIALS 10 FOR REUSE IN THE MANUFACTURING OF SIMILAR PRODUCTS; 11 (XII) FUND A MARKETING PROG RAM TO EDUCATE THE P UBLIC 12 ABOUT THE PROGRAM; 13 (XIII) ESTABLISH A SYSTEM FO R REPORTING KEY INFORMATION 14 GATHERED BY THE PROGRAM TO THE DEPARTMENT ON A QUARTERLY BASIS; AND 15 (XIV) CREATE INCENTIVES FOR THE DEVELOPMENT OF 16 REFILLABLE AND REUSABLE BEVERAGE CONTAINER SYSTEMS. 17 (3) ON REQUEST OF THE DEPARTMENT, THE BEVERAGE CONTAINER 18 STEWARDSHIP ORGANIZATION SHALL SUBMIT A COPY OF ITS FINANCIA L RECORDS 19 TO THE DEPARTMENT FOR A FINANCIAL AUDIT. 20 9–1747. 21 (A) THIS SECTION APPLIES TO THE BEVERAGE CONT AINER STEWARDSHIP 22 ORGANIZATION THAT HAS A BEVERAGE CONTAINER STEWARDSHIP PLAN APPROVED 23 BY THE DEPARTMENT UNDER § 9–1746 OF THIS SUBTITLE. 24 (B) (1) ON OR BEFORE APRIL 1 EACH YEAR, BEGINNING IN 2030, THE 25 BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION SHALL SUBMIT A REPORT TO 26 THE DEPARTMENT ON THE PRO GRESS MADE IN THE PR ECEDING CALENDAR YEAR 27 TOWARD MEETING THE PERFORMANCE TARGETS AND THE GOALS OF THE PROGRAM 28 AND THE BEVERAGE CON TAINER STEWARDSHIP O RGANIZATION’S BEVERAGE 29 CONTAINER STEWARDSHIP PLAN. 30 34 SENATE BILL 342 (2) THE DEPARTMENT SHALL PROV IDE THE ADVISORY COUNCIL 1 WITH A COPY OF EACH REPORT SUBMITTED UNDER THIS SUBSECTION. 2 (C) THE REPORT SUBMITTED UNDER SUBSECTION (B) OF THIS SECTION 3 SHALL INCLUDE, FOR THE PRECEDING CALENDAR YEAR: 4 (1) THE PROGRESS MADE TOW ARD ACHIEVING THE PE RFORMANCE 5 TARGETS; 6 (2) IF THE PERFORMANCE TA RGETS WERE NOT ACHIE VED, A 7 DESCRIPTION OF THE ACTIO NS PROPOSED TO ACHIE VE THE PERFORMANCE 8 TARGETS; 9 (3) THE NUMBER OF REDEEMABLE BEVERAGE CONTAINERS SOLD IN 10 THE STATE; 11 (4) THE NUMBER OF REDEEMABLE BEVERAGE CONTAINERS SOLD IN 12 THE STATE SORTED BY MATER IAL TYPE , REFUND VALUE , AND WHET HER THE 13 CONTAINER CAN BE REFILLED OR REUSED; 14 (5) THE NUMBER OF EMPTY R EDEEMABLE BEVERAGE C ONTAINERS 15 REDEEMED; 16 (6) THE NUMBER OF EMPTY R EDEEMABLE BEVERAGE C ONTAINERS 17 REDEEMED AT EACH RED EMPTION FACILITY , REVERSE VENDING MACH INE, BAG 18 DROP PROGRAM , ACCOUNT–BASED BULK PROCESSIN G PROGRAM , OR OTHER 19 BEVERAGE CONTAINER R EDEMPTION AND PROCES SING METHOD SORTED B Y 20 MATERIAL TYPE , REFUND VALUE , AND WHETHER THE EMPT Y REDEEMABLE 21 BEVERAGE CONTAINER CAN BE REFILLED OR REUSED; 22 (7) THE REDEMPTION RATE A ND RECYCLI NG RATE FOR 23 NONREFILLABLE REDEEM ABLE BEVERAGE CONTAI NERS SOLD IN THE STATE 24 SORTED BY MATERIAL T YPE, NUMBER OF CONTAINERS SOLD, AND CONTAINER 25 WEIGHT; 26 (8) THE AMOUNT OF EACH TYPE OF: 27 (I) REDEEMABLE BEVERAGE C ONTAINER MATERIAL 28 COLLECTED IN THE STATE; AND 29 (II) SCRAP MATERIAL SOLD B Y THE BEVERAGE CONTA INER 30 STEWARDSHIP ORGANIZATION; 31 SENATE BILL 342 35 (9) THE LOCATION OF EACH REDEMPTION FACILITY IN THE STATE 1 AND THE REDEMPTION METHOD USED AT EACH REDEMPTION FACILITY; 2 (10) A DESCRIPTION OF ANY I MPROVEMENTS MADE TO MAKE 3 RETURNING EMPTY REDE EMABLE BEVERAGE CONT AINERS EASIER AND MO RE 4 CONVENIENT; 5 (11) THE IDENTIFICATION AND DESCRIPTION OF AREAS THAT DO NOT 6 HAVE READILY AVAILAB LE OPTIONS FOR REDEE MING AN EMPTY REDEEM ABLE 7 BEVERAGE CONTAINER A ND ACTIONS THE BEVER AGE CONT AINER STEWARDSHIP 8 ORGANIZATION WILL TAKE TO IMPROVE OPTIONS IN THESE AREAS; 9 (12) THE NUMBER OF CONSUME R COMPLAINTS PER MON TH, SORTED 10 BY REDEMPTION FACILITY; 11 (13) THE NUMBER AND TYPE O F COMPLAINTS FROM ON –PREMISES 12 SELLERS PER MONTH, SORTED BY TYPE OF BUSINESS; 13 (14) THE NUMBER OF INDIVID UALS AND ORGANIZATIO NS WITH 14 ACCOUNTS ESTABLISHED FOR THE RECEIPT OF E LECTRONIC DEPOSITS O R 15 REFUNDS; 16 (15) THE TOTAL COST OF IMPLEMENTING THE BEVERAGE CONTAINER 17 STEWARDSHIP PLAN, AS DETERMINED BY AN INDEPENDENT FINANCIAL AUDITOR 18 UNDER § 9–1746(A)(5) OF THIS SUBTITLE; 19 (16) THE AVERAGE COST OF P ROCESSING AN EMPTY R EDEEMED 20 REDEEMABLE BEVERAGE CONTAINER; 21 (17) A COPY OF THE AUDIT CO NDUCTED UNDER § 9–1746(A)(5) OF 22 THIS SUBTITLE; 23 (18) FINANCIAL STATEMENTS DETAILING ALL DEPOSITS RECEIVE D 24 AND REFUNDS ISSUED B Y EACH PRODUCER COVE RED UNDER THE BEVERA GE 25 CONTAINER STEWARDSHIP PLAN; 26 (19) THE TOTAL AMOUNT OF D EPOSITS INITIATED, REFUNDS ISSUED, 27 AND UNCLAIMED DEPOSI TS COLLECTED UNDER T HE BEVERAGE CONTAINE R 28 STEWARDSHIP PLAN; 29 (20) AN ACCOUNTING OF ALL ACTIVITIES AND INVES TMENTS 30 FINANCED BY UNCLAIMED DEPOSITS; 31 36 SENATE BILL 342 (21) EXPENDITURES AND REVENUES SORTED BY SOURCE, INCLUDING 1 FEES PAID UNDER § 9–1746(A)(4) OF THIS SUBTITLE, REVENUE FROM THE SALE OF 2 SCRAP MATERIALS, AND UNCLAIMED DEPOSITS; 3 (22) SAMPLES OF ALL EDUCAT IONAL MATERIALS PROV IDED TO 4 CONSUMERS, RETAILERS, AND OTHER ENTITIES; 5 (23) A DETAILED DESCRIPTION OF INVESTMENTS MADE IN NEW 6 REDEMPTION FACILITIES AND REDEMPTION METHODS; 7 (24) THE LOCATION OF NEW R EDEMPTION FACI LITIES AND 8 REDEMPTION METHODS; 9 (25) A DETAILED DESCRIPTION OF CHANGES MADE BY PRODUCERS TO 10 INCREASE THE RECYCLABILITY OF REDEEMABLE BEVERAGE CONTAINERS; 11 (26) A DETAILED DESCRIPTION OF ANY INCIDENTS OF FRAUD AND 12 EFFORTS TAKEN TO PREVENT FRAUD; AND 13 (27) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT. 14 (D) THE FINANCIAL , PRODUCTION, AND SALES DATA OF IN DIVIDUAL 15 PRODUCERS REPORTED T O THE DEPARTMENT UNDER THIS SECTION SHALL BE 16 KEPT CONFIDENTIAL BY THE DEPARTMENT AND THE ADVISORY COUNCIL. 17 (E) THE DEPARTMENT SHALL POST THE REPORT SUBMITTED UNDER THIS 18 SECTION ON THE DEPARTMENT’S WEBSITE IN A MANNE R THAT PROTECTS THE 19 CONFIDENTIALITY OF T HE DATA SPECIFIED UN DER SUBSECTION (D) OF THIS 20 SECTION. 21 9–1748. 22 (A) (1) THE DEPARTMENT SHALL ESTABLISH A PROCESS FOR A COUNTY 23 OR MUNICIPAL CORPORATION TO CREATE A REDEMPTION FACILITY. 24 (2) A COUNTY OR MUNICIPAL CORPORATION MAY NOT BE REQUIRED 25 TO HOST, OPERATE, OR PROVIDE LAND, FACILITIES, OR ANY OTHER RESOURCES FOR 26 THE ESTABLISHMENT OR OPERATION OF ANY REDEMPTION FACILITY. 27 (B) EMPTY REDEEMABLE BEVE RAGE CONTAINERS REDE EMED AT A 28 REDEMPTION FACILITY MANAGED BY A COUNTY OR MUNICIPAL CORPORA TION 29 SHALL BE CREDITED TOWARD MEETING THE RECYCLING RATES REQUIRED UNDER § 30 9–505 OF THIS TITLE. 31 SENATE BILL 342 37 (C) (1) THROUGH DECEMBER 31, 2031, A PORTION OF PROGRAM 1 REVENUES SHALL BE US ED TO COMPENSATE A C OUNTY OR MUNICIPAL 2 CORPORATION FOR ANY NET LOSS OF REVENUE TO THE COUNTY ’S OR MUNICIPAL 3 CORPORATION’S WASTE MANAGEMENT S YSTEM THAT CAN BE DO CUMENTED AND 4 ATTRIBUTED TO THE PROGRAM. 5 (2) IN DE TERMINING A NET LOSS OF REVENUE , A COUNTY OR 6 MUNICIPAL CORPORATION SHALL CONSIDER: 7 (I) THE LOSS OF REVENUE F ROM THE SALE OF SCRA P 8 MATERIALS; 9 (II) FINANCIAL SAVINGS FROM A REDUCTION IN: 10 1. GLASS BOTTLES IN THE RECYCLING STREAM; 11 2. TRANSPORTATION COSTS ASSOCIATED WITH 12 CURBSIDE COLLECTION OF TRASH AND RECYCLING; 13 3. PROCESSING COSTS ASSO CIATED WITH RECYCLIN G 14 BEVERAGE CONTAINERS; 15 4. THE COSTS OF LANDFILL ING AND INCINERATING 16 BEVERAGE CONTAINERS THAT ARE NOT RECYCLED; AND 17 5. THE COSTS OF LITTER COLLECTION; AND 18 (III) FOR A COUNTY OR MUNIC IPAL CORPORATION THAT HAS A 19 TOTAL MAXIMUM DAILY LOAD FOR TRASH IN A WATERWAY UNDER ITS 20 JURISDICTION, THE REDUCED COSTS AN D INCREASED BENEFITS OF COMPLYING 21 WITH THE TOTAL MAXIM UM DAILY LOA D DUE TO A REDUCTION IN BEVERAGE 22 CONTAINER LITTER. 23 9–1749. 24 FUNDING FOR THE PROGRAM SHALL: 25 (1) INCLUDE: 26 (I) REDEEMABLE BEVERAGE C ONTAINER STEWARDSHIP 27 ORGANIZATION FEES COLLECTED UNDER § 9–1746 OF THIS SUBTITLE; 28 38 SENATE BILL 342 (II) REVENUE FROM THE SALE OF RAW MATERIALS; 1 (III) UNCLAIMED DEPOSITS CO LLECTED UNDER § 9–1743 OF 2 THIS SUBTITLE; 3 (IV) REGISTRATION FEES COLLECTED UNDER § 9–1744 OF THIS 4 SUBTITLE; AND 5 (V) PENALTIES COLLECTED U NDER § 9–1755 OF THIS 6 SUBTITLE; AND 7 (2) BE USED IN ACCORDANCE WITH §§ 9–1707(F), 9–1743, 9–1744, 8 AND 9–1755 OF THIS SUBTITLE. 9 9–1750. 10 (A) THERE IS A BEVERAGE CONTAINER RECYCLING REFUND GRANT 11 PROGRAM. 12 (B) THE PURPOSE OF THE GRANT PROGRAM IS TO PROVIDE FUNDING FOR: 13 (1) AN ASSESSMENT OF THE INVESTMENTS AND POL ICIES 14 NECESSARY TO ENSURE THAT, BY DECEMBER 31, 2038, AT LEAST 10% OF ALL 15 BEVERAGE CONTAINERS SOLD IN THE STATE ARE RETURNED AND REFILLED; AND 16 (2) PROJECTS THAT: 17 (I) INCREASE THE REUSE AN D RECYCLING OF BEVER AGE 18 CONTAINERS IN THE STATE; 19 (II) INCREASE THE AVAILABI LITY OF PUBLIC WATER 20 FOUNTAINS AND REFILL STATIONS IN THE STATE; AND 21 (III) REDUCE THE VOLUME OF LITTER FROM BEVERAGE 22 CONTAINERS IN THE STATE. 23 (C) THE CHESAPEAKE BAY TRUST SHALL ADMINISTE R THE GRANT 24 PROGRAM. 25 (D) THE GRANT PROGRAM SHALL BE FUNDED FR OM A PORTION OF THE 26 UNCLAIMED DEPOSITS T RANSFERRED TO THE CHESAPEAKE BAY TRUST UNDER § 27 9–1743(D)(4)(II) OF THIS SUBTITLE. 28 SENATE BILL 342 39 (E) THE FOLLOWING ENTITIE S ARE ELIGIBLE FOR A GRANT UNDER THE 1 GRANT PROGRAM: 2 (1) A SCHOOL OR AN INSTITUTION OF HIGHER EDUCATION; 3 (2) A NONPROFIT ORGANIZATION; 4 (3) A COUNTY OR MUNICIPAL CORPORATION; 5 (4) A FOR–PROFIT ORGANIZATION; AND 6 (5) A PUBLIC–PRIVATE PARTNERSHIP. 7 (F) THE DEPARTMENT, IN CONSULTATION WITH THE ADVISORY COUNCIL, 8 SHALL ADOPT REGULATIONS ESTABLISHING: 9 (1) AN APPLICATION PROCES S FOR AN ENTITY TO A PPLY FOR A 10 GRANT; 11 (2) THE CRITERIA FOR EVALUATING AND AWARDING GRANTS; 12 (3) REPORTING AND EVALUAT ION REQUIREMENTS FOR A GRANT 13 AWARDED UNDER THIS SECTION; AND 14 (4) ANY OTHER REQUIREMENTS THE DEPARTMENT DETERMINES 15 ARE NECESSARY FOR AD MINISTERING AND IMPL EMENTING GRANTS AWAR DED 16 UNDER THE GRANT PROGRAM. 17 (G) BEGINNING JANUARY 1, 2030, THE CHESAPEAKE BAY TRUST SHALL 18 BEGIN AWARDING GRANTS UNDER THE GRANT PROGRAM. 19 9–1751. 20 (A) BEGINNING JANUARY 1, 2029, AND CONTINUING UNTIL 21 REIMBURSEMENT PAYMENTS UNDER § 9–2506 OF THIS TITLE BEGIN, THE BEVERAGE 22 CONTAINER STEWARDSHI P ORGANIZATION SHALL PROVIDE PAYMENTS TO A 23 MATERIAL RECOVERY FA CILITY TO COVER THE COSTS OF COLLECTING , SORTING, 24 PROCESSING, AND TRANSPORTING EMPTY UNREDEEMED REDEEMABLE BEVERAGE 25 CONTAINERS FOR RECYCLING, REUSE, OR REFILLING. 26 (B) A MATERIAL RECOVERY FA CILITY SHALL BE ELIG IBLE TO RECEIVE A 27 PAYMENT UNDER THIS SECTION ONLY IF: 28 40 SENATE BILL 342 (1) THE UNREDEEMED REDEEM ABLE BEVERAGE C ONTAINERS 1 RECEIVED MEET THE AP PLICABLE SPECIFICATI ONS IN THE MOST RECE NTLY 2 PUBLISHED GUIDELINES OF THE INSTITUTE OF SCRAP RECYCLING INDUSTRIES; 3 (2) THE MATERIAL RECOVERY FACILITY REPORTS TO THE BEVERAGE 4 CONTAINER STEWARDSHIP ORGANIZATION THE NUMBER OF TONS OF UNREDEEMED 5 REDEEMABLE BEVERAGE CONTAINERS RECEIVED FOR PROCESSING IN TH E 6 PREVIOUS MONTH, CATEGORIZED BY MATERIAL TYPE; AND 7 (3) THE MATERIAL RECOVERY FACILITY REPORTS TO THE BEVERAGE 8 CONTAINER STEWARDSHI P ORGANIZATION THE N UMBER OF UNREDEEMED 9 REDEEMABLE BEVERAGE CONTAINERS TRANSFERRED TO ADDITIONAL MATERIALS 10 PROCESSING FACILITIES OR END MARKETS IN THE PREVIOUS MONTH, CATEGORIZED 11 BY MATERIAL TYPE. 12 (C) THE OPERATOR OF A MAT ERIAL RECOVERY FACIL ITY SHALL USE AN 13 INDUSTRY–STANDARD SCALE TO ME ASURE T HE WEIGHT OF ALL COV ERED 14 BEVERAGE CONTAINER MATERIALS RECEIVED BY THE FACILITY. 15 (D) THE BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION MAY, AT ITS 16 OWN EXPENSE, CONDUCT AUDITS OF TH E QUALITY AND QUANTI TY OF MATERIALS 17 HANDLED BY A MATERIA L RECOVERY FACILITY , ON REQUEST BY THE 18 ORGANIZATION. 19 (E) (1) THE DEPARTMENT SHALL ESTA BLISH THE PAYMENT AM OUNT 20 UNDER THIS SECTION. 21 (2) THE DEPARTMENT MAY ADJUST THE PAYMENT AMOUNT A S 22 NECESSARY TO ACCOUNT FOR CHANGES IN THE C OSTS OF COLLECTING, SORTING, 23 PROCESSING, AND TRANSPORTING EMPTY UNREDEEMED REDEEMABLE BEVERAGE 24 CONTAINERS. 25 9–1752. 26 IN ADDITION TO THE DU TIES AND REQUIREMENTS SPECIFIED IN THIS PART, 27 THE DEPARTMENT SHALL: 28 (1) IN CONSULTATION WITH THE ADVISORY COUNCIL: 29 (I) ESTABLISH CONVENIENCE STANDARDS FOR THE COVERAGE 30 AND AVAILABILITY OF REDEMPTION OPTIONS ACROSS THE STATE; AND 31 (II) ENSURE THE CONVENIENC E STANDARDS PROVIDE 32 SENATE BILL 342 41 ACCESSIBLE REDEMPTION OPTIONS FOR DIFFERENTLY ABLED PEOPLE AND PEOPLE 1 WHO LIVE IN RURAL AREAS OR LOW–INCOME COMMUNITIES OF COLOR; 2 (2) ESTABLISH A SYSTEM FO R LARGE ON –PREMISES SELLERS TO 3 VERIFY THE SOURCE OF THE HIGH VOLUMES OF REDEEMABLE BEVERAGE 4 CONTAINERS REDEEMED BY THE ON–PREMISES SELLER; AND 5 (3) PERIODICALLY REVIEW A VAILABLE BEVERAGE CO NTAINER 6 REDEMPTION AND PROCESSING METHODS TO DETERMINE WHETHER THE TYPES OF 7 BEVERAGE CONTAINERS COVERED UNDER THE PROGRAM SHOULD BE EXPANDED. 8 9–1753. 9 (A) THERE IS A REDEEMABLE BEVERAGE CONTAINER RECYCLING 10 REFUND ADVISORY COUNCIL. 11 (B) THE ADVISORY COUNCIL CONSISTS OF T HE FOLLOWING MEMBERS, 12 DESIGNATED BY THE SECRETARY: 13 (1) ONE MEMBER REPRESENTING RECYCLING PROCESSORS; 14 (2) ONE MEMBER REPRESENTI NG LOCAL GOVERNMENT AGENCIES 15 RESPONSIBLE FOR RECYCLING PROGRAMS; 16 (3) ONE MEMBER REPRESENTI NG GLASS MANUFACTURE RS OR A 17 GLASS MANUFACTURING TRADE ORGANIZATION; 18 (4) ONE MEMBER REPRESENTI NG ALUMINUM MANUFACT URERS OR 19 AN ALUMINUM MANUFACTURING TRADE ORGANIZATION; 20 (5) ONE MEMBER REPRESENTI NG PLASTIC MANUFACTU RERS OR A 21 PLASTIC MANUFACTURING TRADE ORGANIZATION; 22 (6) ONE MEMBER REPRESENTING BEVERAGE COMPANIES; 23 (7) ONE MEMBER REPRESENTI NG PURCHASERS OF REC YCLED 24 CONTENT; 25 (8) ONE MEMBER REPRESENTING RETAILERS; 26 (9) ONE MEMBER REPRESENTI NG RESTAURANTS OR OT HER 27 ON–PREMISES SELLERS; 28 42 SENATE BILL 342 (10) ONE MEMBER REPRESENTI NG REVERSE VEND ING MACHINE 1 BUSINESSES; 2 (11) ONE MEMBER REPRESENTI NG ACCOUNT –BASED BULK 3 PROCESSORS; 4 (12) ONE MEMBER REPRESENTI NG BUSINESSES INVOLV ED IN REUSE 5 AND REFILL SYSTEMS; 6 (13) AT LEAST ONE MEMBER R EPRESENTING AN ENVIR ONMENTAL 7 ADVOCACY ORGANIZATION; 8 (14) AT LEAST ONE MEMBER R EPRESENTING AN ENVIR ONMENTAL 9 JUSTICE ADVOCACY ORGANIZATION; AND 10 (15) AT LEAST TWO MEMBERS WHO ARE MEMBERS OF T HE GENERAL 11 PUBLIC AND RESIDE IN THE STATE. 12 (C) THE SECRETARY SHALL DESIGNATE TWO COCHAIRS FROM AMONG THE 13 MEMBERSHIP OF THE ADVISORY COUNCIL. 14 (D) THE DEPARTMENT SHALL PROV IDE STAFF FOR THE ADVISORY 15 COUNCIL. 16 (E) A MEMBER OF THE ADVISORY COUNCIL: 17 (1) MAY NOT RECEIVE COMPE NSATION AS A MEMBER OF THE 18 ADVISORY COUNCIL; BUT 19 (2) IS ENTITLED TO REIMBU RSEMENT FOR EXPENSES UNDER THE 20 STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET. 21 (F) THE ADVISORY COUNCIL SHALL MEET: 22 (1) AT LEAST QUARTERLY EACH YEAR; AND 23 (2) AS REQUESTED BY THE DEPARTMENT. 24 (G) THE ADVISORY COUNCIL SHALL: 25 (1) ADVISE THE DEPARTMENT ON DETERMINING W HETHER TO 26 APPROVE A BEVERAGE CONTAINER STEWARDSHIP PLAN; 27 SENATE BILL 342 43 (2) MAKE RECOMMENDATIONS TO THE DEPARTMENT ON THE 1 IMPLEMENTATION OF APPROVED BEVERAGE CONTAINER STEWARDSHIP PLANS; 2 (3) REVIEW AND ADVISE THE DEPARTMENT ON THE ANN UAL 3 REPORTS SUBMITTED UNDER § 9–1747 OF THIS SUBTITLE; AND 4 (4) ADVISE THE DEPARTMENT ON THE IMP LEMENTATION, 5 ADMINISTRATION, AND PERFORMANCE OF THE PROGRAM. 6 9–1754. 7 (A) ON OR BEFORE JUNE 1, 2027, THE DEPARTMENT SHALL ADOP T 8 REGULATIONS TO CARRY OUT THIS PART. 9 (B) THE DEPARTMENT MAY EXPAND THE TYPES OF BEVERAGE CONTAINERS 10 COVERED UNDER THE PROGRAM BY REGULATION IF, BASED ON ITS REVIEW UNDER 11 § 9–1752(3) OF THIS SUBTITLE , THE DEPARTMENT DETERMINES THERE ARE 12 CONVENIENT REDEMPTION OPTIONS FOR THOSE BEVERAGE CONTAINERS. 13 9–1755. 14 (A) EXCEPT AS PROVIDED IN SUBSECTIONS (C) AND (D) OF THIS SECTION, 15 THE PROVISIONS OF §§ 9–334 THROUGH 9–344 OF THIS TITLE APPLY TO ENFORCE 16 VIOLATIONS OF THIS PART. 17 (B) A PENALTY MAY NOT BE I MPOSED ON A PRODUCER FOR FAILING TO 18 PROPERLY REGISTER WITH THE DEPARTMENT UNDER § 9–1744 OF THIS SUBTITLE, 19 INCLUDING FAILING TO IDENTIFY EACH BRAND OF REDEEMABLE BEVERA GE 20 CONTAINER THAT THE P RODUCER INTENDS TO S ELL, OFFER FOR SALE , OR 21 DISTRIBUTE IN THE STATE, UNLESS: 22 (1) THE DEPARTMENT FIRST ISSU ES A WRITTEN NOTICE OF TH E 23 VIOLATION TO THE PRODUCER; AND 24 (2) THE PRODUCER DOES NOT REGISTER WITHIN 90 DAYS AFTER 25 RECEIVING THE WRITTEN NOTICE. 26 (C) (1) A PERSON MAY NOT REDEE M, ATTEMPT TO REDEEM , RECEIVE, 27 STORE, TRANSPORT, DISTRIBUTE, OR OTHERWISE FACILIT ATE OR AID IN THE 28 REDEMPTION OF THE FOLLOWING MATERIALS WITH AN INTENT TO DEFRAUD: 29 (I) AN EMPTY REDEEMABLE BEVERAGE CONTAINER THAT WAS 30 SOLD IN ANOTHER STATE; 31 44 SENATE BILL 342 (II) AN EMPTY REDEEMABLE BEVERAGE CONTAINER THAT WAS 1 REJECTED FOR REDEMPTION; 2 (III) LINE BREAKAGE; 3 (IV) A PREVIOUSLY REDEEMED REDEEMABLE BEVERAGE 4 CONTAINER; OR 5 (V) ANOTHER INELIGIBLE MATERIAL. 6 (2) A PERSON MAY NOT DISPO SE OF A REDEEMED RED EEMABLE 7 BEVERAGE CONTAINER IN A LANDFILL OR AN INCINERATOR. 8 (3) THE DEPARTMENT SHALL ESTABLISH ADMINISTRA TIVE 9 PENALTIES FOR A VIOL ATION OF THIS SUBSEC TION THAT ARE BASED ON THE 10 NUMBER OF BEVERAGE CONTAINERS AND REFUND AMOUNTS INVOLVED. 11 (D) (1) BEGINNING JANUARY 1, 2032, IF THE BEVERAGE CONT AINER 12 STEWARDSHIP ORGANIZA TION HAS NOT MET THE REDEMPTION RATES 13 ESTABLISHED IN § 9–1740 OF THIS SUBTITLE FOR THE IMMEDIATELY PRECEDING 2 14 YEARS, THE DEPARTMENT SHALL ASSE SS AN ADMINISTRATIVE PENALTY ON THE 15 BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION. 16 (2) EACH YEAR THAT THE BE VERAGE CONTAINER STE WARDSHIP 17 ORGANIZATION DOES NOT MEET THE REDEMPTION RATES ESTABLISHED IN § 9–1740 18 OF THIS SUBTITLE IS A SEPARATE VIOLATION UNDER THIS SUBSECTION. 19 (3) AN ADMINISTRATIVE PEN ALTY ASSESSED UNDER THIS 20 SUBSECTION SHALL EQU AL THE TOTAL NUMBER OF REDEEMABLE BEVERA GE 21 CONTAINERS NEEDED TO BE REDEEMED TO MEET THE REDEMPTION RATES 22 ESTABLISHED IN § 9–1740 OF THIS SUBTITLE, MINUS THE NUMBER OF REDEEMABLE 23 BEVERAGE CONTAINERS ACTUALLY REDEEMED , MULTIPLIED BY THE RE FUND 24 VALUE IN EFFECT AT THE TIME THE VIOLATION OCCURRED. 25 (E) THE DEPARTMENT MAY ALTER THE ADMINISTRATIVE P ENALTIES 26 ASSESSED UNDER SUBSE CTIONS (C) AND (D) OF THIS SECTION AS N ECESSARY TO 27 ENSURE THAT THE PENA LTY AMOUNTS ASSESSED EXCEED THE COSTS OF 28 COMPLYING WITH THIS PART. 29 (F) PENALTIES COLLECTED UNDER THIS SECTION SHALL BE: 30 (1) TRANSFERRED TO THE STATE RECYCLING TRUST FUND UNDER § 31 SENATE BILL 342 45 9–1707(F) OF THIS SUBTITLE; AND 1 (2) USED ONLY TO COVER THE DEPARTMENT’S COSTS OF PLANNING, 2 IMPLEMENTING, ADMINISTERING, MONITORING, ENFORCING, AND EVALUATING 3 THE PROGRAM. 4 9–1756. 5 ANY PERSON PARTICIPAT ING IN A BEVERAGE CO NTAINER STEWARDSHIP 6 PLAN IN ACCORDANCE W ITH THIS SUBTITLE IS IMMUNE FROM LIABILIT Y UNDER 7 STATE LAWS CONCERNING ANTITRUST AND RESTRA INT OF TRADE FOR 8 COOPERATIVE ACTIVITI ES ASSOCIATED WITH T HE COLLECTION , TRANSPORT, 9 PROCESSING, RECYCLING, REUSE, AND MANAGEMENT OF EM PTY REDEEMABLE 10 BEVERAGE CONTAINERS. 11 SECTION 2. AND BE IT FURTHER ENACTED, That: 12 (a) The Department of the Environment shall consult with counties and 13 municipalities to assess the impacts of the Maryland Beverage Container Recycling Refund 14 and Litter Reduction Program (Program), as enacted by Section 1 of this Act, on local 15 beverage container litter and recycling operations and county and municipal budgets. 16 (b) On or before June 1, 2027, the Department of the Environment shall report to 17 the General Assembly, in accordance with § 2 –1257 of the State Government Article, its 18 recommendations on ways to offset adverse impacts and enhance positive impacts of the 19 Program on beverage container litter, recycling rates, and county and municipal budgets. 20 SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect June 21 1, 2026. 22