Maryland Beverage Container Recycling Refund and Litter Reduction Program

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW. [Brackets] indicate matter deleted from existing law. *hb0331* HOUSE BILL 331 M3 6lr1134 HB 232/25 – ENT & ECM CF 6lr1135 By: Delegates Terrasa, Lehman, Behler, Boafo, Charkoudian, Ebersole, Edelson, Embry, Fair, Feldmark, Foley, Forbes, Guzzone, Healey, Hill, A. Johnson, Kaufman, Lewis, Martinez, Moreno, Palakovich Carr, Ruth, Shetty, Simmons, Solomon, Stewart, Taveras, Watson, White Holland, Williams, Wims, Wu, and Ziegler Introduced and read first time: January 19, 2026 Assigned to: Environment and Transportation and Economic Matters A BILL ENTITLED AN ACT concerning 1 Maryland Beverage Container Recycling Refund and Litter Reduction Program 2 FOR the purpose of establishing the Maryland Beverage Container Recycling Refund and 3 Litter Reduction Program to increase the reuse and recycling of beverage containers 4 and reduce the litter, pollution, and costs associated with 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 2 HOUSE BILL 331 facility managed by a county or municipal corporation to be credited toward meeting 1 certain recycling rates; establishing the Beverage Container Recycling Refund Grant 2 Program to evaluate the investments and policies necessary to achieve a certain 3 performance target, increase the reuse and recycling of beverage containers in the 4 State, increase the availability of public water fountains and refill stations in the 5 State, and reduce the volume of litter from beverage containers in the State; 6 requiring the Chesapeake Bay Trust to administer the Grant Program; requiring the 7 beverage container stewardship organization to provide certain payments to certain 8 facilities for a certain period of time for managing unredeemed beverage containers 9 in accordance with certain requirements; establishing the Redeemable Beverage 10 Container Recycling Refund Advisory Council to review certain reports, make 11 certain recommendations, and advise the Department on certain matters; providing 12 immunity from liability to a certain person under certain circumstanc es; and 13 generally relating to the Maryland Beverage Container Recycling Refund and Litter 14 Reduction Program. 15 BY repealing and reenacting, without amendments, 16 Article – Environment 17 Section 9–1701(a) and (q) and 9–1702(a) 18 Annotated Code of Maryland 19 (2014 Replacement Volume and 2025 Supplement) 20 BY repealing and reenacting, with amendments, 21 Article – Environment 22 Section 9–1702(d) and 9–1707(f) 23 Annotated Code of Maryland 24 (2014 Replacement Volume and 2025 Supplement) 25 BY adding to 26 Article – Environment 27 Section 9 –1737 through 9 –1756 to be under the new part “Part VI. Maryland 28 Beverage Container Recycling Refund and Litter Reduction Program” 29 Annotated Code of Maryland 30 (2014 Replacement Volume and 2025 Supplement) 31 SECTION 1. BE IT ENACTED BY THE GEN ERAL ASSEMBLY OF MARYLAND, 32 That the Laws of Maryland read as follows: 33 Article – Environment 34 9–1701. 35 (a) In this subtitle the following words have the meanings indicated. 36 (q) “Recycling” means any process in which recyclable materials are collected, 37 separated, or processed and returned to the marketplace in the form of raw materials or 38 products. 39 HOUSE BILL 331 3 9–1702. 1 (a) There is an Office of Recycling created within the Department. 2 (d) The Office shall: 3 (1) Assist the counties in developing an acceptable recycling plan required 4 under § 9–1703 of this subtitle and § 9 –505 of this title, including technical assistance to 5 the local governments; 6 (2) Coordinate the efforts of the State to facilitate the implementation of 7 the recycling goals at the county level; 8 (3) Review all recycling plans submitted as part of a county plan as 9 required under § 9 –505 of this title and advise the Secretary on the adequacy of the 10 recycling plan; 11 (4) Administer the Statewide Electronics Recycling Program under Part IV 12 of this subtitle; 13 (5) Promote the development of markets for recycled materials and 14 recycled products in the State in accordance with § 9–1702.1 of this subtitle; 15 (6) Review and approve plans and annual reports, including the paint 16 stewardship assessme nt, submitted in accordance with a Paint Stewardship Program 17 established under Part V of this subtitle; [and] 18 (7) Review and approve, in consultation with the producer responsibility 19 advisory council established under § 9–2503 of this title, producer responsibility plans and 20 annual reports submitted in accordance with Subtitle 25 of this title; AND 21 (8) ADMINISTER THE MARYLAND BEVERAGE CONTAINER 22 RECYCLING REFUND AND LITTER REDUCTION PROGRAM ESTABLISHED U NDER § 23 9–1739 OF THIS SUBTITLE. 24 9–1707. 25 (f) (1) There is a State Recycling Trust Fund. 26 (2) The Fund shall consist of: 27 (i) The newsprint recycling incentive fee; 28 (ii) The telephone directory recycling incentive fee collected under § 29 9–1709 of this subtitle; 30 4 HOUSE BILL 331 (iii) The covered electronic device manufacturer registration fee 1 collected under § 9–1728 of this subtitle; 2 (iv) The Paint Stewardship Program plan and annual report review 3 fees collected under § 9–1733(b) and (h) of this subtitle; 4 (v) Any fees collected from producer respon sibility organizations 5 under § 9–1702.2 of this subtitle or Subtitle 25 of this title; 6 (VI) FEES AND PENALTIES TRANSFERRED TO THE FUND UNDER 7 §§ 9–1744 AND 9–1755 OF THIS SUBTITLE; 8 [(vi)] (VII) All fines and penalties collected under this subtitle and § 9 9–2512 of this title; 10 [(vii)] (VIII) Money appropriated in the State budget to the Fund; and 11 [(viii)] (IX) Any other money from any other source accepted for the 12 benefit of the Fund. 13 (3) The Secretary shall administer the Fund. 14 (4) The Treasurer shall hold the Fund separately and the Comptroller shall 15 account for the Fund. 16 (5) (I) [At] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 17 PARAGRAPH, AT the end of each fiscal year, any unspent or unencumbered balance in the 18 Fund that exceeds $2,000,000 shall revert to the General Fund of the State in accordance 19 with § 7–302 of the State Finance and Procurement Article. 20 (II) THE FUNDS TRANSFERRED TO T HE FUND UNDER 21 PARAGRAPH (2)(VI) OF THIS SUBSECTION A RE NOT SUBJECT TO § 7–302 OF THE 22 STATE FINANCE AND PROCUREMENT ARTICLE AND MAY NOT R EVERT TO THE 23 GENERAL FUND OF THE STATE. 24 (6) In accordance with the State budget, the Fund shall be used only: 25 (i) To provide grants to the counties to be used by the counties to 26 develop and implement local recycling plans; 27 (ii) To provide grants to counties that have addressed methods for 28 the separate collection and recycling of covered electronic devices in acco rdance with § 29 9–1703(c)(1) of this subtitle; 30 HOUSE BILL 331 5 (iii) To provide grants to municipalities to be used by the 1 municipalities to implement local covered electronic device recycling programs; 2 (iv) To cover the costs of the Paint Stewardship Program plan review 3 under § 9–1733(b) of this subtitle, the annual report review under § 9–1733(h) of this 4 subtitle, and associated costs for Program compliance oversight; 5 (v) In accordance with paragraph (7) of this subsection, to cover the 6 costs of a statewide recycling needs assessment conducted under § 9–1702.2 of this subtitle; 7 (vi) In accordance with paragraph (7) of this subsection, to cover the 8 costs of producer responsibility plan review, oversight, and enforcement under Subtitle 25 9 of this title; [and] 10 (VII) IN ACCORDANCE WITH PA RAGRAPH (8) OF THIS 11 SUBSECTION, TO COVER THE COSTS O F ADMINISTERING , MONITORING, 12 EVALUATING, AND ENFORCING THE MARYLAND BEVERAGE CONTAINER 13 RECYCLING REFUND AND LITTER REDUCTION PROGRAM ESTABLISHED U NDER § 14 9–1739 OF THIS SUBTITLE; AND 15 [(vii)] (VIII) To carry out the purposes of the land management 16 administration. 17 (7) (i) There is a separate account within the Fund[. 18 (ii) The separate account shall consist] CONSISTING of: 19 1. Any fees collected from producer responsibility 20 organizations under § 9–1702.2 of this subtitle or Subtitle 25 of this title; and 21 2. All fines and penalties collected under § 9–2512 of this 22 title. 23 [(iii)] (II) The separate account shall be used only for the costs of 24 statewide rec ycling needs assessments conducted under § 9–1702.2 of this subtitle and 25 producer responsibility plan review, oversight, and enforcement under Subtitle 25 of this 26 title. 27 (8) (I) THERE IS A SEPARATE A CCOUNT WITHIN THE FUND 28 CONSISTING OF THE FUNDS SPECIFIED IN PARAGRAPH (2)(VI) OF THIS SUBSECTION. 29 (II) THE SEPARATE ACCOUNT SHALL BE USED ONLY: 30 1. TO C OVER THE COSTS OF AD MINISTERING, 31 MONITORING, EVALUATING, AND ENFORCING THE MARYLAND BEVERAGE 32 6 HOUSE BILL 331 CONTAINER RECYCLING REFUND AND LITTER REDUCTION PROGRAM 1 ESTABLISHED UNDER § 9–1739 OF THIS SUBTITLE; 2 2. TO C OMPENSATE LOCAL GOVE RNMENTS IN 3 ACCORDANCE WITH § 9–1748 OF THIS SUBTITLE; AND 4 3. TO M EET OR EXCEED THE PE RFORMANCE TARGETS 5 ESTABLISHED UNDER § 9–1740 OF THIS SUBTITLE. 6 [(8)] (9) (i) The Treasurer shall invest the money in the Fund in the 7 same manner as other State money may be invested. 8 (ii) Any investment earnings of the Fund shall be credited to the 9 General Fund of the State. 10 9–1735. RESERVED. 11 9–1736. RESERVED. 12 PART VI. MARYLAND BEVERAGE CONTAINER RECYCLING REFUND AND LITTER 13 REDUCTION PROGRAM. 14 9–1737. 15 (A) IN THIS PART THE FOLL OWING WORDS HAVE THE MEANINGS 16 INDICATED. 17 (B) (1) “ACCOUNT–BASED BULK PROCESSIN G PROGRAM ” MEANS A 18 PROGRAM THAT: 19 (I) UTILIZES A SYSTEM OF CUSTOMER AC COUNTS AND A 20 MECHANISM TO ASSOCIATE REDEEMED REDEEMABLE BEVERAGE CONTAINERS WITH 21 THE APPROPRIATE CUSTOMER ACCOUNT; 22 (II) CONSOLIDATES THE REDE EMED REDEEMABLE BEVE RAGE 23 CONTAINERS FOR BULK SORTING WHILE COLLEC TING DATA ABOUT THE 24 CONTAINERS; 25 (III) FULLY PREPARES REDEEMED REDEEMABLE BEVERAGE 26 CONTAINERS FOR SALE TO RECYCLERS; AND 27 (IV) COLLECTS DATA TO SUPP ORT AN ACCOUNTING OF THE 28 REDEEMABLE BEVERAGE CONTAINERS, INCLUDING THE DEPOSI TS, FEES, AND 29 POUNDS OF MATERIAL PRODUCED THAT ARE ASSOCIATED WITH THE REDEEMABLE 30 HOUSE BILL 331 7 BEVERAGE CONTAINERS. 1 (2) “ACCOUNT–BASED BULK PROCESSIN G PROGRAM ” INCLUDES A 2 BAG DROP PROGRAM IF THE BAG DROP PROGRAM IS A COMPONENT OF TH E 3 ACCOUNT–BASED BULK PROCESSING PROGRAM. 4 (C) “ADVISORY COUNCIL” MEANS THE REDEEMABLE BEVERAGE 5 CONTAINER RECYCLING REFUND ADVISORY COUNCIL ESTABLISHED U NDER § 6 9–1753 OF THIS SUBTITLE. 7 (D) “BAG DROP PROGRAM” MEANS A PROGRAM THAT ALLOWS A CUSTOMER 8 TO: 9 (1) DROP OFF EMPTY REDEEMABLE BEVERAGE CONTAINERS IN A BAG 10 OR OTHER RECEPTACLE AT ONE OR MORE LOCATIONS FOR A REFUND; AND 11 (2) HAVE THE CORRESPONDING REFUND PLACED INTO AN ACCOUNT 12 HELD FOR THE BENEFIT OF THE CUSTOMER IN A MANNER THAT ALLOWS T HE 13 CUSTOMER TO OBTAIN T HE REFUND OR REFUND RECEIPT WITHIN A SPE CIFIED 14 NUMBER OF DAYS AFTER THE DROP–OFF. 15 (E) (1) “BEVERAGE” MEANS ANY DRINKABLE LIQUID INTENDED FOR 16 HUMAN ORAL CONSUMPTION. 17 (2) “BEVERAGE” DOES NOT INCLUDE: 18 (I) DRUGS REGULATED UNDER THE FEDERAL FOOD, DRUG, 19 AND COSMETIC ACT; AND 20 (II) INFANT FORMULA. 21 (F) (1) “BEVERAGE CONTAINER ” MEANS A BOTTL E, CAN, OR OTHER 22 CONTAINER THAT: 23 (I) HAS BEEN SEALED BY A MANUFACTURER; 24 (II) IS MADE OF GLASS, METAL, OR PLASTIC; AND 25 (III) AT THE TIME OF SALE , CONTAINS 3 LITERS OR LESS OF A 26 BEVERAGE. 27 (2) “BEVERAGE CONTAINER” DOES NOT INCLUDE: 28 8 HOUSE BILL 331 (I) A CARTON; 1 (II) A POUCH; OR 2 (III) ASEPTIC PACKAGING. 3 (G) “BEVERAGE CONTAINER RE DEMPTION AND PROCESS ING METHOD ” 4 MEANS A MANUAL OR TE CHNOLOGICAL METHOD F OR PROPERLY COLLECTI NG, 5 IDENTIFYING, COUNTING, OR PROCESSING EMPTY REDEEMABLE BEVERAGE 6 CONTAINERS FOR REDEMPTION. 7 (H) “BEVERAGE CONTAINER ST EWARDSHIP ORGANIZATI ON” MEANS A 8 NONPROFIT ORGANIZATION THAT IS: 9 (1) EXEMPT FROM TAXATION UNDER § 501(C)(3) OF THE INTERNAL 10 REVENUE CODE; 11 (2) CREATED BY PRODUCERS TO IMPLEMENT A BEVER AGE 12 CONTAINER STEWARDSHIP PLAN; AND 13 (3) APPROVED BY THE DEPARTMENT IN ACCORDANCE WITH § 9–1745 14 OF THIS SUBTITLE. 15 (I) “BEVERAGE CONTAINER ST EWARDSHIP PLAN ” MEANS A PLAN 16 SUBMITTED TO THE DEPARTMENT UNDER § 9–1746 OF THIS SUBTITLE. 17 (J) “CHESAPEAKE BAY TRUST” MEANS T HE CHESAPEAKE BAY TRUST 18 ESTABLISHED UNDER § 8–1902 OF THE NATURAL RESOURCES ARTICLE. 19 (K) “DEPOSIT INITIATOR” MEANS THE FIRST DIST RIBUTOR TO COLLECT A 20 DEPOSIT ON A BEVERAGE CONTAINER SOLD IN THE STATE. 21 (L) (1) “DISTRIBUTOR” MEANS A PERSON THAT SELLS BEV ERAGES IN 22 REDEEMABLE BEVERAGE CONTAINERS TO A RETAILER IN THE STATE. 23 (2) “DISTRIBUTOR” INCLUDES A PERSON THAT MANUFACTURES AND 24 SELLS BEVERAGES IN REDEEMABLE BEVERAGE CONTAINERS TO A RETAILER IN THE 25 STATE. 26 (3) “DISTRIBUTOR” DOES NOT INCLUDE AIR LINES O R SHIPPING 27 COMPANIES THAT TRANSPORT REDEEMABLE BEVERAGE CONTAINERS. 28 (M) “GRANT PROGRAM” MEANS THE BEVERAGE CONTAINER RECYCLING 29 HOUSE BILL 331 9 REFUND GRANT PROGRAM ESTABLISHED UNDER § 9–1750 OF THIS SUBTITLE. 1 (N) “LINE BREAKAGE” MEANS A BEVERAGE CONTAINER THAT: 2 (1) BECOMES DEFECTIVE OR DAMAGED DURING MANUFACTURING; 3 (2) IS NOT INTENDED TO BE SOLD; AND 4 (3) IS NOT ELIGIBLE FOR REDEMPTION. 5 (O) “MARYLAND–SPECIFIC UPC BARCODE” MEANS A UNIVERSAL PRODUCT 6 CODE THAT IS: 7 (1) UNIQUE TO BEVERAGE CONTAINERS SOLD IN THE STATE; AND 8 (2) USED TO DETER FRAUD A ND ENSURE THE LEGITI MATE 9 REDEMPTION OF REDEEMABLE BEVERAGE CONTAINERS. 10 (P) “MATERIAL RECOVERY FACILITY” MEANS A FACILITY LOCATED IN THE 11 STATE THAT COLLECTS , COMPACTS, REPACKAGES, SORTS, OR PROCESSES 12 SOURCE–SEPARATED MATERIALS FOR TRANSPORTATION AND RECYCLING. 13 (Q) (1) “ON–PREMISES SELLER ” MEANS A PERSON THAT SELLS FILLED 14 AND UNOPENED REDEEMA BLE BEVERAGE CONTAIN ERS FOR ON –PREMISES 15 CONSUMPTION. 16 (2) “ON–PREMISES SELLER” INCLUDES: 17 (I) BARS; 18 (II) HOTELS; 19 (III) RESTAURANTS; 20 (IV) SPORTING VENUES; 21 (V) ENTERTAINMENT VENUES; AND 22 (VI) GAMING VENUES. 23 (R) “PERFORMANCE TARGETS” MEANS THE TARGETS ESTABLISHED UNDER 24 § 9–1740 OF THIS SUBTITLE. 25 10 HOUSE BILL 331 (S) (1) “PRODUCER” MEANS A PERSON RESPO NSIBLE FOR COMPLYING 1 WITH THE REQUIREMENTS UNDER THIS PART. 2 (2) “PRODUCER” INCLUDES A FRANCHISO R OF A FRANCHISE 3 LOCATED IN THE STATE. 4 (3) “PRODUCER” DOES NOT INCLUDE: 5 (I) THE STATE, A COUNTY , A MUNICIPAL CORPORAT ION, OR 6 ANY OTHER POLITICAL SUBDIVISION OF THE STATE; 7 (II) A CHARITABLE ORGANIZAT ION THAT IS TAX –EXEMPT 8 UNDER § 501(C)(3) OF THE INTERNAL REVENUE CODE; 9 (III) A SOCIAL WELFARE ORGAN IZATION THAT IS TAX –EXEMPT 10 UNDER § 501(C)(4) OF THE INTERNAL REVENUE CODE; 11 (IV) A FRANCHISEE THAT OPER ATES A FRANCHISE IN T HE 12 STATE; 13 (V) A PERSON THAT ANNUALLY SELLS, OFFERS FOR SALE , 14 DISTRIBUTES, OR IMPORTS INTO THE COUNTRY FOR SALE IN THE STATE FEWER 15 THAN 1,000 REDEEMABLE BEVERAGE CONTAINERS; OR 16 (VI) A PERSON THAT ANNUALLY SELLS, OFFERS FOR SALE , OR 17 DISTRIBUTES IN THE STATE REDEEMABLE BEVE RAGE CONTAINERS THAT IN 18 AGGREGATE GENERATE LESS THAN $5,000,000 EACH YEAR IN GLOBAL REVENUE. 19 (T) “PROGRAM” MEANS THE MARYLAND BEVERAGE CONTAINER 20 RECYCLING REFUND AND LITTER REDUCTION PROGRAM ESTABLISHED U NDER § 21 9–1739 OF THIS SUBTITLE. 22 (U) “RECYCLING RATE ” MEANS THE NUMBER OF NONREFILLABLE 23 REDEEMABLE BEVERAGE CONTAINERS SOLD IN T HE STATE THAT ARE RECYCL ED 24 SHOWN AS A PERCENTAG E OF ALL NONREFILLAB LE REDEEMABLE BEVERA GE 25 CONTAINERS SOLD IN THE STATE. 26 (V) “REDEEM” MEANS THE RETURN OF AN EMPTY REDEEMABLE BEVERAGE 27 CONTAINER IN EXCHANGE FOR A REFUND, A VOUCHER FOR A REFUND, OR A CREDIT 28 TO AN ACCOUNT FOR NOT LESS THAN THE REFUND VALUE. 29 (W) “REDEEMABLE BEVERAGE C ONTAINER” MEANS A BEVERAGE 30 CONTAINER THAT, AT THE TIME OF SALE: 31 HOUSE BILL 331 11 (1) CONTAINS 3 LITERS OR LESS OF A BEVERAGE; 1 (2) BEARS A UNIVERSAL PRODUCT CODE; AND 2 (3) MAY BEAR A MARYLAND–SPECIFIC UPC BARCODE FOR THE 3 PURPOSE OF ENSURING LEGITIMATE REDEMPTION AND DETERRING FRAUD. 4 (X) “REDEMPTION FACILITY” MEANS A FACILITY THAT: 5 (1) ACCEPTS EMPTY BEVERAGE CONTAINERS FROM A CONSUMER, A 6 RETAILER, OR BOTH; 7 (2) COLLECTS, SORTS, AND COUNTS EMPTY BEVERAGE CONTAINERS; 8 (3) REFUNDS THE REFUND VA LUE OF EMPTY REDEEMA BLE 9 BEVERAGE CONTAINERS IN CASH , WITH A VOUCHER , OR AS A CREDIT TO AN 10 ACCOUNT FOR NOT LESS THAN THE REFUND VALU E OF THE REDEEMABLE 11 BEVERAGE CONTAINER; AND 12 (4) IS LICENSED UNDER § 9–1742 OF THIS SUBTITLE. 13 (Y) “REDEMPTION RATE ” MEANS THE PERCENTAGE OF REDEEMABLE 14 BEVERAGE CONTAINERS SOLD IN THE STATE THA T ARE REDEEMED FOR T HE 15 DEPOSIT VALUE. 16 (Z) “REFILLABLE” MEANS A BEVERAGE CONTAINER THAT IS DESIGNED AND 17 INTENDED TO BE REUSE D AS A BEVERAGE CONT AINER AFTER BEING US ED BY A 18 CONSUMER WITHOUT THE NEED FOR REMANUFACTURING. 19 (AA) (1) “RETAILER” MEANS A PERSON THAT ENGAGES IN THE SALE OF 20 REDEEMABLE BEVERAGE CONTAINERS TO A CONSUMER IN THE STATE. 21 (2) “RETAILER” INCLUDES A PERSON THAT ENGAGES IN THE SALE OF 22 REDEEMABLE BEVERAGE CONTAINERS: 23 (I) THROUGH A VENDING MACHINE; OR 24 (II) ONLINE FOR HOME OR OFFICE DELIVERY. 25 (BB) “REVERSE VENDING MACHINE” MEANS AN AUTOMATED DEVICE THAT: 26 (1) ACCEPTS ONE OR MORE T YPES OF EMPTY REDEEM ABLE 27 12 HOUSE BILL 331 BEVERAGE CONTAINERS; 1 (2) USES A LASER SCANNER , AN OPTICAL SENSOR , A 2 MICROPROCESSOR, OR OTHER TECHNOLOGY TO ACCURATELY RECOGNIZE A 3 BEVERAGE CONTAINER’S UNIVERSAL PRODUCT CODE TO DETERMINE WHETHER THE 4 CONTAINER IS A REDEEMABLE BEVERAGE CONTAINER; 5 (3) ISSUES A REDEEMABLE C REDIT SLIP FOR THE R EDEEMABLE 6 BEVERAGE CONTAINER’S REFUND VALUE; 7 (4) SEPARATES REDEEMABLE BEVERAGE CONTAINERS FROM 8 CONTAINERS THAT ARE NOT REDEEMABLE; 9 (5) USES MECHANICAL COMPA CTION TO CANCEL REDE EMABLE 10 BEVERAGE CONTAINERS THAT HAVE BEEN REDEEMED; AND 11 (6) COMPILES INFORMATION REGARDING THE REDEEM ABLE 12 BEVERAGE CONTAINERS THAT HAVE BEEN REDEEMED, INCLUDING THE NUMBER OF 13 REDEEMABLE BEVERAGE CONTAINERS REDEEMED. 14 (CC) (1) “UNIVERSAL PRODUCT COD E” OR “UPC” MEANS A STANDARD 15 BARCODE THAT ENCODES A NUMBER UNIQUELY AS SIGNED TO A PRODUCT FOR 16 IDENTIFICATION OF THE PRODUCT. 17 (2) “UNIVERSAL PRODUCT CODE” OR “UPC” INCLUDES: 18 (I) ANY INDUSTRY –ACCEPTED BARCODE USE D FOR PRODUCT 19 IDENTIFICATION PURPOSES; AND 20 (II) A EUROPEAN ARTICLE NUMBER. 21 9–1738. 22 IT IS THE INTENT OF THE GENERAL ASSEMBLY TO: 23 (1) REDUCE THE VOLUME OF LITTER AND PLASTIC POLLUTION FROM 24 BEVERAGE CONTAINERS IN THE STATE BY ACHIEVING A REDEMPTION RATE OF A T 25 LEAST 90% FOR THE APPROXIMATEL Y 5,500,000,000 SINGLE–USE BEVERAGE 26 CONTAINERS SOLD ANNUALLY IN THE STATE; 27 (2) PROVIDE A SOURCE OF HIGH–QUALITY, FOOD–GRADE MATERIALS 28 FOR USE AS RECYCLED CONTENT IN BEVERAGE AND FOOD CONTAINERS; 29 HOUSE BILL 331 13 (3) REDUCE THE VOLUME OF BEVERAGE CONTAINERS THAT ARE 1 LANDFILLED OR INCINERATED IN THE STATE; 2 (4) REDUCE THE COSTS OF L ITTER AND BEVERAGE C ONTAINER 3 COLLECTION, RECYCLING, AND DISPOSAL INCURRE D BY TAXPAYERS , COUNTIES, 4 AND MUNICIPAL CORPOR ATIONS BY MAKING PRO DUCERS OF BEVERAGE 5 CONTAINERS RESPONSIB LE FOR THE RECOVERY , RECYCLING, AND REUSE OF 6 BEVERAGE CONTAINERS; 7 (5) PROVIDE INCENTIVES FO R INCREASING THE USE OF REUSABLE 8 AND REFILLABLE BEVERAGE CONTAINERS; AND 9 (6) REDUCE GREENHOUSE GAS EMISSIONS ASSOCIATED WITH THE 10 PRODUCTION, TRANSPORTATION, PROCESSING, AND WASTE DISPOSAL O F 11 SINGLE–USE BEVERAGE CONTAINERS SOLD IN THE STATE. 12 9–1739. 13 THERE IS A MARYLAND BEVERAGE CONTAINER RECYCLING REFUND AND 14 LITTER REDUCTION PROGRAM IN THE DEPARTMENT. 15 9–1740. 16 PERFORMANCE TARGETS FOR THE PROGRAM ARE AS FOLLOWS: 17 (1) A 70% REDEMPTION RATE BY DECEMBER 31, 2030; 18 (2) A 90% REDEMPTION RATE BY DECEMBER 31, 2033; 19 (3) BY DECEMBER 31, 2028, ATTAINMENT OF ALL CO NVENIENCE 20 STANDARDS IDENTIFIED BY THE DEPARTMENT UNDER § 9–1752 OF THIS SUBTITLE; 21 AND 22 (4) BY DECEMBER 31, 2038, AT LEAST 10% OF ALL BEVERAGE 23 CONTAINERS SOLD IN THE STATE ARE RETURNED AND REFILLED. 24 9–1741. 25 (A) (1) SUBJECT TO PARAGRAPHS (2) AND (3) OF THIS SUBSECTION, 26 BEGINNING JANUARY 1, 2029, EACH REDEEMABLE BEVERAGE CONTAINER SOLD IN 27 THE STATE SHALL INCLUDE A DEPICTION OF THE FOLLOWING INFORMATION: 28 (I) THE WORD “MARYLAND” OR THE LETTERS “MD”; AND 29 14 HOUSE BILL 331 (II) 1. FOR REDEEMABLE BEVERA GE CONTAINERS WITH A 1 VOLUME OF 24 FLUID OUNCES OR LESS, A REFUND VALUE OF 10 CENTS; OR 2 2. FOR REDEEMABLE BEVERA GE CONTAINERS WITH A 3 VOLUME OF MORE THAN 24 FLUID OUNCES, A REFUND VALUE OF 15 CENTS. 4 (2) THE DEPARTMENT MAY ADJUST THE REFUND VALUES SPECIFIED 5 IN PARAGRAPH (1) OF THIS SUBSECTION: 6 (I) IF THE DEPARTMENT DETERMINES ALTERING THE REFUND 7 VALUES IS NECESSARY TO MEET OR EXCEED PERFORMANCE TARGETS; OR 8 (II) AT THE REQUEST OF A B EVERAGE CONTAINER 9 STEWARDSHIP ORGANIZATION. 10 (3) BEGINNING JANUARY 1, 2034, THE DEPARTMENT SHALL 11 INCREASE THE REFUND VALUES SPECIFIED IN PARAGRAPH (1) OF THIS SUBSECTION 12 BY 5 CENTS IF THE DEPARTMENT DETERMINES THAT FOR 2 CONSECUTIVE 13 CALENDAR YEARS THE R EDEMPTION RATE WAS L ESS THAN 90% OF THE TOTAL 14 NUMBER OF BEVERAGE CONTAINERS SOLD IN THE STATE. 15 (B) A BEVERAGE CONTAINER DEPICTING THE INFORMATION SPECIFIED IN 16 SUBSECTION (A) OF THIS SECTION MAY NOT BE SOLD TO A CON SUMER BEFORE 17 JANUARY 1, 2029. 18 (C) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 19 BEGINNING JANUARY 1, 2029: 20 (I) THE WHOLESALE PRICE AND THE RETAIL PRICE OF A FULL 21 REDEEMABLE BEVERAGE CONTAINER SHALL INCLUDE THE REFUND VALUE OF THE 22 REDEEMABLE BEVERAGE CONTAINER; AND 23 (II) A RETAILER SHALL INCLU DE ON A CUSTOMER ’S SALES 24 RECEIPT THE REFUND V ALUE OF A REDEEMABLE BEVERAGE CONTAINER SOLD BY 25 THE RETAILER TO THE CUSTOMER. 26 (2) THE RETAIL PRICE OF A FULL REDEEMABLE BEVE RAGE 27 CONTAINER SOLD BY AN ON–PREMISES SELLER MAY NOT INCLUDE THE REFU ND 28 VALUE OF THE REDEEMABLE BEVERAGE CONTAINER. 29 9–1742. 30 HOUSE BILL 331 15 (A) (1) THE PROGRAM SHALL PROVIDE A RANG E OF OPTIONS FOR 1 CUSTOMERS TO CONVENI ENTLY REDEEM EMPTY R EDEEMABLE BEVERAGE 2 CONTAINERS FOR THE FULL REFUND VALUE, INCLUDING: 3 (I) AT A RETAILER ’S PLACE OF BUSINESS THROUGH DIRECT 4 TAKE–BACK BY THE RETAILER , REVERSE VENDING MACH INES, A BAG DROP 5 PROGRAM, OR OTHER REDEMPTION METHODS; 6 (II) DEDICATED AND CONVENI ENTLY LOCATED REDEMP TION 7 FACILITIES OPERATED BY RETAILERS , PUBLIC ENTITIES , OR THE BEVERAGE 8 CONTAINER STEWARDSHIP ORGANIZATION; AND 9 (III) PLACING REDEEMABLE BE VERAGE CONTAINE R 10 REDEMPTION AND PROCESSING METHODS, SUCH AS REVERSE VENDING MACHINES, 11 BAG DROP PROGRAMS , AND ACCOUNT –BASED BULK PROCESSIN G PROGRAMS , IN 12 AREAS: 13 1. WITH A HIGH NUMBER OF PEDESTRIANS; AND 14 2. WHERE INDIVIDUALS PUR CHASE OR USE BEVERAG E 15 CONTAINERS. 16 (2) THE PROGRAM SHALL PROVIDE A RANGE OF OPTIONS F OR 17 ON–PREMISES SELLERS TO CONVENIENTLY REDEEM EMPTY REDEEMABLE 18 BEVERAGE CONTAINERS FOR THE FULL REFUND VALUE, INCLUDING: 19 (I) AN ACCOUNT –BASED REFUND ISSUED BY THE BEVERAGE 20 CONTAINER STEWARDSHI P ORGANI ZATION OR ITS AGENTS FOLLOWING THE 21 COLLECTION OF EMPTY REDEEMABLE BEVERAGE CONTAINERS BY THE BE VERAGE 22 CONTAINER STEWARDSHIP ORGANIZATION OR ITS AGENTS FROM THE ON–PREMISES 23 SELLER; OR 24 (II) AN ACCOUNT–BASED REFUND ISSUED BY THE OPERATOR OF 25 A BAG DROP PROGRAM. 26 (B) (1) A PERSON SHALL APPLY TO THE DEPARTMENT FOR A LICENSE TO 27 OPERATE A REDEMPTION FACILITY IN THE STATE. 28 (2) THE DEPARTMENT SHALL DEVE LOP STANDARDS AND A 29 LICENSING PROCESS FO R THE ESTABLISHMENT AND OPERATION OF RED EMPTION 30 FACILITIES. 31 (C) SUBJECT TO SUBSECTION (D) OF THIS SECTION , A REDEMPTION 32 16 HOUSE BILL 331 FACILITY SHALL ACCEP T ALL TYPES OF EMPTY REDEEMABLE BEVERAGE 1 CONTAINERS FOR REDEMPTION. 2 (D) A RETAILER OR REDEMPTI ON FACILITY MAY REFU SE TO ACCEPT AN 3 EMPTY REDEEMABLE BEVERAGE CONTAINER THAT: 4 (1) IS DIRTY; 5 (2) IS BROKEN; 6 (3) CONTAINS MATERIAL FOR EIGN TO THE NORMAL C ONTENTS OF 7 THE BEVERAGE CONTAINER; OR 8 (4) THE RETAILER OR REDEM PTION FACILITY BELIE VES WAS NOT 9 SOLD IN THE STATE. 10 (E) (1) THIS SUBSECTION APPLIES TO A RETAILER WITH AT LEAST 3,000 11 SQUARE FEET OF SALES FLOOR SPACE AND AT L EAST 150 SQUARE FEET OF SHELF 12 SPACE DEDICATED TO THE DISPLAY OF REDEEMABLE BEVERAGE CONTAINERS. 13 (2) SUBJECT TO SUBSECTION (D) OF THIS SECTION , A RETAILER 14 SHALL: 15 (I) ESTABLISH AND MAINTAI N A DEDICATED A REA AT THE 16 RETAILER’S PLACE OF BUSINESS TO ACCEPT EMPTY REDE EMABLE BEVERAGE 17 CONTAINERS; 18 (II) ACCEPT AT THE RETAILE R’S PLACE OF BUSINESS ANY 19 EMPTY REDEEMABLE BEV ERAGE CONTAINERS RET URNED FOR REDEMPTION 20 DURING THE RETAILER’S BUSINESS HOURS; AND 21 (III) PAY TO THE REDEEMER T HE REFUND VALUE FOR EACH 22 EMPTY REDEEMABLE BEVERAGE CONTAINER REDEEMED. 23 (3) RETAILERS MAY MEET THE REQUIREMENTS IN PARAGRAPH (2) OF 24 THIS SUBSECTION THROUGH VARIOUS METHODS, INCLUDING: 25 (I) SUPPLEMENTING THE MANUAL COLLECTION AND STORING 26 OF REDEEMED REDEEMAB LE BEVERAGE CONTAINE RS WITH A REVERSE VE NDING 27 MACHINE, A BAG DROP PROGRAM , OR OTHER COUNTING AN D SORTING METHODS; 28 AND 29 (II) GROUPING BEVERAGE CON TAINER REDEMPTION AN D 30 HOUSE BILL 331 17 PROCESSING METHODS WITH THOSE OF OTHER RETAILERS IF: 1 1. THE BEVERAGE CONTAINE R STEWARDSHIP 2 ORGANIZATION APPROVES THE PROPOSAL; AND 3 2. THE RETAILERS PARTICI PATING IN THE GROUPE D 4 METHODS PROVIDE CONS ISTENT SERVICE , MARKETING, AND SITE REDEMPTION 5 LOCATIONS THAT COMPL Y WITH DISTANCE PROV ISIONS DETERMINED BY THE 6 DEPARTMENT. 7 (4) A RETAILER WITHIN AN A REA THAT MEETS THE C ONVENIENCE 8 STANDARDS ESTABLISHE D BY THE DEPARTMENT UNDER § 9–1752 OF THIS 9 SUBTITLE MAY BE EXEMPT FROM THE REQUIREMENTS OF THIS SUBSECTION IF THE 10 RETAILER: 11 (I) IS LOCATED IN CLOSE P ROXIMITY TO A REDEMPTION 12 FACILITY IN THAT AREA; AND 13 (II) SHARES THE COST OF TH E OPERATION OF THE 14 REDEMPTION FACILITY WITH THE BEVERAGE CO NTAINER STEWARDSHIP 15 ORGANIZATION. 16 (5) THE DEPARTMENT MAY: 17 (I) SET STANDARDS FOR THE NUMBER OF REVERSE VE NDING 18 MACHINES REQUIRED FOR RETAILERS LOCATED IN UNDERSERVED COMMUNITIES; 19 AND 20 (II) ESTABLISH A CAP FOR T HE NUMBER OF EMPTY 21 REDEEMABLE BEVERAGE CONTAINERS THAT MAY BE REDEEMED PER VISI T AT 22 SMALL RETAILERS. 23 (F) SUBJECT TO SUBSECTION (D) OF THIS SECTION, A RETAILER WITH LESS 24 THAN 3,000 SQUARE FEET OF SALES FLOOR SPACE OR LESS THAN 150 SQUARE FEET 25 OF SHELF SPACE DEDIC ATED TO THE DISPLAY OF REDEEMABLE BEVERA GE 26 CONTAINERS SHALL: 27 (1) PROVIDE ON–SITE CASH REFUNDS FOR THE REDEMPTION OF ANY 28 EMPTY REDEEMABLE BEVERAGE CONTAINER THAT IS OF THE SAME MATERIAL AND 29 SIZE AS THOSE THAT A RE SOLD BY THE RETAI LER IF THE EMPTY RED EEMABLE 30 BEVERAGE CONTAINER B EING REDEEMED IS NOT ACCEPTED BY A REVERS E 31 VENDING MACHINE; AND 32 18 HOUSE BILL 331 (2) POST AT THE RETAILER ’S ENTRANCE THE ADDRE SS OF THE 1 NEAREST REVERSE VEND ING MACHINE OR OTHER REDEMPTION METHOD TH AT 2 PROVIDES AN IMMEDIAT E CASH REFUND FOR RE DEEMING EMPTY REDEEM ABLE 3 BEVERAGE CONTAINERS. 4 (G) (1) A PERSON THAT PROVIDES A REVERSE VENDING MA CHINE FOR 5 THE REDEMPTION OF EMPTY REDEEMABLE BEVERAGE CONTAINERS SHALL: 6 (I) PROVIDE AN OPTION FOR REDEEMING EMPTY REDEEMABLE 7 BEVERAGE CONTAINERS WHEN THE REVERSE VENDING MACHINE IS FULL, BROKEN, 8 OR UNDER REPAIR; AND 9 (II) PROVIDE AN OPTION FOR REDEEMING ANY EMPTY 10 REDEEMABLE BEVERAGE CONTAINERS NOT ACCEPTED BY THE REVER SE VENDING 11 MACHINE. 12 (2) (I) THE DEPARTMENT SHALL ESTA BLISH A PROCESS FOR 13 SUBMITTING FOR REVIE W, APPROVING, AND MONITORING AN AC COUNT–BASED 14 BULK PROCESSING PROGRAM THAT: 15 1. ENSURES THAT THE PROG RAM WILL ACCURATELY 16 REFUND DEPOSITS AND MAINTAI N AND REPORT DATA FR OM EACH TRANSACTION ; 17 AND 18 2. IDENTIFIES THE INFORM ATION THAT MUST BE 19 SUBMITTED TO THE DEPARTMENT FOR APPROVAL OF THE PROGRAM. 20 (II) A PERSON THAT INTENDS TO PROVIDE AN ACCOUNT–BASED 21 BULK PROCESSING PROG RAM FOR THE REDEMPTION OF EM PTY REDEEMABLE 22 BEVERAGE CONTAINERS SHALL SUBMIT INFORMA TION IDENTIFIED UNDE R 23 SUBPARAGRAPH (I) OF THIS PARAGRAPH TO THE DEPARTMENT FOR APPROVAL OF 24 THE PROGRAM. 25 (H) (1) REFUNDS PROVIDED FOR AN EMPTY REDEEMED RE DEEMABLE 26 BEVERAGE CONTAINER SHALL BE: 27 (I) IN CASH; 28 (II) IN THE FORM OF A RECE IPT FROM A REVERSE V ENDING 29 MACHINE OR ACCOUNT–BASED REDEMPTION SYSTEM, IF: 30 1. THE RECEIPT CAN BE EXCHANGED FOR CASH WITHIN 31 60 DAYS AFTER THE RECEIPT IS ISSUED; AND 32 HOUSE BILL 331 19 2. THERE IS NO REQUIR EMENT THAT OTHER GOODS BE 1 PURCHASED TO RECEIVE THE CASH REFUND; OR 2 (III) CREDITED TO AN ACCOUN T BY THE RECEIVER OF THE 3 EMPTY REDEEMABLE BEV ERAGE CONTAINER SO T HAT THE CONSUMER CAN 4 RECEIVE THE REFUND O R A REFUND RECEIPT W ITHIN A SPECIFIED NU MBER OF 5 DAYS, AS DETERMINED BY THE DEPARTMENT, AFTER REDEEMING THE EMPTY 6 REDEEMABLE BEVERAGE CONTAINER. 7 (2) THE BEVERAGE CONTAINE R STEWARDSHIP ORGANI ZATION 8 SHALL REIMBURSE A RETAILER FOR THE VALUE OF VALID RECEIPTS REDEEMED BY 9 CONSUMERS. 10 (I) (1) A REDEMPTION FAC ILITY, RETAILER, OR ANY OTHER PERSON 11 THAT ACCEPTS REDEEMABLE BEVERAGE CONTAINERS FOR REDEMPTION SHALL BE 12 REIMBURSED BY THE BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION OR ITS 13 AGENT FOR THE HANDLI NG OF EACH EMPTY RED EEMABLE BEVERAGE CONTAINER 14 REDEEMED. 15 (2) (I) THE DEPARTMENT SHALL SET A HANDLING FEE TO BE PAID 16 BY THE BEVERAGE CONT AINER STEWARDSHIP OR GANIZATION OR ITS AG ENT TO A 17 REDEMPTION FACILITY, RETAILER, OR ANY OTHER PERSON THAT ACCEPTS EMPTY 18 REDEEMABLE BEVERAGE CONTAINERS FOR REDEMPTION. 19 (II) 1. THE HANDLING FEE SHAL L BE SET AT AN AMOUN T 20 THAT COVERS THE COST S OF COLLECTING , SORTING, PROCESSING, AND 21 TRANSPORTING EMPTY R EDEEMABLE BEVERAGE C ONTAINERS FOR RECYCL ING, 22 REUSE, OR REFILLING. 23 2. THE DEPARTMENT MAY INCREA SE THE HANDLING 24 FEE IF THE DEPARTMENT DETERMINES AN INCREASE IS NECESSARY TO ENCOURAGE 25 THE ESTABLISHMENT OF MORE REDEMPTION FACILITIES. 26 (J) (1) AN ON–PREMISES SELLER THAT PROVIDES EMPTY REDEEMABLE 27 BEVERAGE CONTAINERS FOR REDEMPTION SHALL BE REIMBURSED BY THE 28 BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION OR ITS AGENT FOR: 29 (I) THE REFUNDS PAID BY THE ON–PREMISES SELLER FOR THE 30 EMPTY REDEEMED REDEEMABLE BEVERAGE CONTAINERS; AND 31 (II) THE HANDLING OF EACH EMPTY REDEEMABLE BEV ERAGE 32 CONTAINER REDEEMED. 33 20 HOUSE BILL 331 (2) (I) THE DEPARTMENT SHALL SET A MATERIAL HANDLING FEE 1 TO BE PAID BY THE BE VERAGE CONTAINER STE WARDSHIP ORGANIZATION OR ITS 2 AGENT TO AN ON –PREMISES SELLER THAT PROVIDES EMPTY REDEE MABLE 3 BEVERAGE CONTAINERS FOR REDEMPTION. 4 (II) THE HANDLING FEE SHAL L BE SET AT AN AMOUN T THAT 5 COVERS THE COSTS OF TEMP ORARY STORAGE , PRELIMINARY SORTING , AND 6 PREPARING EACH REDEE MABLE BEVERAGE CONTA INER REDEEMED FOR 7 COLLECTION. 8 (3) THE BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION OR ITS 9 AGENT SHALL PROVIDE TO AN ON–PREMISES SELLER: 10 (I) ANY RECEP TACLES OR BAGS REQUI RED FOR THE 11 PRELIMINARY SORTING OF REDEEMED REDEEMAB LE BEVERAGE CONTAINE RS BY 12 THE ON–PREMISES SELLER; AND 13 (II) ANY LABELS NECESSARY FOR ATTRIBUTING THE 14 REDEEMED REDEEMABLE BEVERAGE CONTAINERS TO THE ON–PREMISES SELLER. 15 (K) A DEPOSIT INITIATOR THAT COLLECTS A DEPOSIT F ROM A RETAILER , 16 REDEMPTION FACILITY , OR ANY OTHER PERSON THAT ACCEPTS REDEEMA BLE 17 BEVERAGE CONTAINERS FOR REDEMPTION SHALL ACCOUNT FOR ANY DEPOSITS IN 18 ACCORDANCE WITH § 9–1743 OF THIS SUBTITLE. 19 (L) REDEEMED EMPTY RE DEEMABLE BEVERAGE CO NTAINERS SHALL BE 20 COLLECTED FOR RETURN TO THE BEVERAGE CONT AINER STEWARDSHIP 21 ORGANIZATION FOR SALE AS SCRAP MATERIAL TO FINANCE THE PROGRAM. 22 9–1743. 23 (A) A DEPOSIT INITIATOR SH ALL DEPOSIT ANY DEPO SITS COLLECTED 24 UNDER § 9–1742 OF THIS SUBTITLE INTO A DEPOSIT COLLECTION ACCOUNT THAT IS 25 MAINTAINED SEPARATELY FROM ALL OTHER REVENUES. 26 (B) THE FUNDS IN THE DEPOSIT COLLECTION ACCOUNT MAY BE USED ONLY 27 TO PAY THE REFUND VA LUE OF AN EMPTY REDE EMABLE BEVERAGE CONT AINER 28 BEING REDEEMED. 29 (C) A DEPOSIT INITIATOR SH ALL REPORT TO THE BE VERAGE CONTAINER 30 STEWARDSHIP ORGANIZA TION, AT A FREQUENCY DETER MINED BY THE 31 DEPARTMENT, THE FOLLOWING INFORMATION: 32 HOUSE BILL 331 21 (1) THE NUMBER OF REDEEMA BLE BEVERAGE CONTAIN ERS SOLD 1 AND EMPTY REDEEMABLE BEVERAGE CONTAINERS REDEEMED SINCE THE LAST 2 REPORT WAS SUBMITTED TO THE BEVERAGE CONT AINER STEWARDSHIP 3 ORGANIZATION UNDER THIS SUBSECTION; 4 (2) THE FUNDS DEPOSITED I NTO THE DEPOSIT COLL ECTION 5 ACCOUNT AND THE REFU NDS ISSUED FROM THE DEPOSIT COLLECTION A CCOUNT 6 SINCE THE LAST REP ORT WAS SUBMITTED TO THE BEVERAGE CONTAIN ER 7 STEWARDSHIP ORGANIZATION UNDER THIS SUBSECTION; 8 (3) ANY INCOME EARNED ON THE FUNDS IN THE DEP OSIT 9 COLLECTION ACCOUNT S INCE THE LAST REPORT WAS SUBMITTED TO THE 10 BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION UNDER THIS SUBSECTION; 11 (4) THE BALANCE OF THE DEPOSIT COLLECTION ACCOUNT; AND 12 (5) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT. 13 (D) (1) THE DEPARTMENT SHALL DETE RMINE THE POINT AT W HICH A 14 DEPOSIT BECOMES AN UNCLAIMED DEPOSIT. 15 (2) UNCLAIMED DEPOSI TS ARE CALCULATED AS THE AMOUNT OF 16 FUNDS TRANSFERRED TO A DEPOSIT COLLECTION ACCOUNT THAT ARE IN EXCESS 17 OF THE SUM OF: 18 (I) ANY INTEREST EARNINGS ON THE DEPOSIT COLLE CTION 19 ACCOUNT DURING THE T IME FOR WHICH UNCLAI MED DEPOSITS ARE BEI NG 20 CALCULATED; AND 21 (II) THE TOTAL AMOUNT OF THE REFUND VALUE RECEIVED FOR 22 THE EMPTY REDEEMABLE BEVERAGE CONTAINERS REDEEMED DURING THE TIME 23 FOR WHICH THE UNCLAIMED DEPOSITS ARE BEING CALCULATED. 24 (3) A DEPOSIT INITIATOR SH ALL TRANSFER ALL UNC LAIMED 25 DEPOSITS TO THE BEVE RAGE CONTAINER STEWAR DSHIP ORGANIZATION A T A 26 FREQUENCY DETERMINED BY THE DEPARTMENT. 27 (4) THE BEVERAGE CONTAINE R STEWARDSHIP ORGANI ZATION 28 SHALL: 29 (I) ESTABLISH A RESERVE A CCOUNT TO MANAGE ALL 30 UNCLAIMED DEPOSITS; AND 31 22 HOUSE BILL 331 (II) BEGINNING JANUARY 1, 2030, TRANSFER 10% OF ALL 1 UNCLAIMED DEPOSITS T O THE CHESAPEAKE BAY TRUST WITH A FREQUENCY 2 DETERMINED BY THE DEPARTMENT. 3 (5) THE BEVERAGE CONTAINE R STEWARDSHIP ORGANI ZATION 4 SHALL USE THE FUNDS IN THE RESERVE ACCOU NT ESTABLISHED 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) THE UNCLAIMED DEPOSITS TRANSFERRED TO THE CHESAPEAKE 11 BAY TRUST UNDER PARAGRAPH (4)(II) OF THIS SUBSECTION MAY BE USED ONLY 12 FOR THE COSTS OF ADMINISTERING AND FINANCING THE GRANT PROGRAM UNDER 13 § 9–1750 OF THIS SUBTITLE. 14 9–1744. 15 (A) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, THIS SECTION 16 APPLIES TO A PRODUCER THAT SELLS , OFFERS FOR SALE , OR DISTRIBUTES 17 REDEEMABLE BEVERAGE CONTAINERS IN THE STATE. 18 (2) (I) IF THE BEVERAGE CONTA INER IS SOLD UNDER T HE 19 PRODUCER’S OWN BRAND OR LACKS IDENTIFICATION OF A BRAND, THE PRODUCER 20 IS THE PERSON THAT MANUFACTURES THE REDEEMABLE BEVERAGE CONTAINER. 21 (II) IF THE REDEEMABLE BEV ERAGE CONTAINER IS 22 MANUFACTURED BY A PERSON OTHER THAN THE BRAND OWNER, THE PRODUCER IS 23 THE PERSON THAT IS THE LICENSEE OF A BRA ND OR TRADEMARK UNDER WHICH A 24 REDEEMABLE BEVERAGE CONTAINER IS S OLD, OFFERED FOR SALE , OR 25 DISTRIBUTED IN THE STATE, WHETHER OR NOT THE TRADEMARK IS REGISTERED IN 26 THE STATE, UNLESS ANOTHER RESPO NSIBLE PERSON HAS CO NTRACTUALLY 27 ACCEPTED RESPONSIBILITY AS THE PRODUCER AND HAS JOINED THE B EVERAGE 28 CONTAINER STEWARDSHIP ORGAN IZATION AS THE PRODU CER RESPONSIBLE FOR 29 THE REDEEMABLE BEVERAGE CONTAINER UNDER THIS SECTION. 30 (III) IF THERE IS NO PERSON DESCRIBED IN THIS PA RAGRAPH 31 OVER WHOM THE STATE CAN CONSTITUTIO NALLY EXERCISE JURIS DICTION, THE 32 PRODUCER IS THE PERS ON THAT IMPORT S OR DISTRIBUTES THE REDEEMABLE 33 HOUSE BILL 331 23 BEVERAGE CONTAINER IN THE STATE. 1 (3) IF ANOTHER PERSON CON TRACTUALLY ACCEPTS 2 RESPONSIBILITY AS A PRODUCER UNDER PARAGRAPH (2)(II) OF THIS SUBSECTION, 3 THE PRODUCER MUST PR OVIDE A CERTIFIED CO PY OF THE CONTRACTUA L 4 AGREEMENT TO THE BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION. 5 (B) BEGINNING JANUARY 1, 2029, A PRODUCER MAY NOT SELL, OFFER FOR 6 SALE, OR DISTRIBUTE IN OR IMPORT INTO THE STATE A REDEEMABLE BE VERAGE 7 CONTAINER UNLESS THE PRODUCER: 8 (1) IS REGISTERED WITH TH E DEPARTMENT IN ACCORDA NCE WITH 9 THIS SECTION; 10 (2) HAS PAID THE REGISTRA TION FEE UNDER SUBSE CTION (F) OF 11 THIS SECTION; AND 12 (3) IS PART OF THE BEVERA GE CONTAINER STEWARD SHIP 13 ORGANIZATION THAT: 14 (I) HAS BEEN APPROVED BY THE DEPARTMENT UNDER § 15 9–1745 OF THIS SUBTITLE; AND 16 (II) HAS A BEVERAGE CONTAI NER STEWARDSHIP PLAN 17 APPROVED BY THE DEPARTMENT UNDER § 9–1746 OF THIS SUBTITLE. 18 (C) ON OR BEFORE MARCH 1 EACH YEAR , BEGINNING IN 2028, THE 19 BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION SHALL PROVIDE TO THE 20 DEPARTMENT: 21 (1) A LIST OF EACH PRODUCE R PARTICIPATING IN T HE BEVERAGE 22 CONTAINER STEWARDSHIP ORGANIZATION; AND 23 (2) FOR EACH PRODUCER , THE REGISTRATION FOR M REQUIRED 24 UNDER SUBSECTION (D) OF THIS SECTION. 25 (D) (1) THE DEPARTMENT SHALL CREATE A REGISTRATION FORM THAT 26 REQUIRES EACH PRODUC ER PARTICIPATING IN THE BEVERAGE CONTAIN ER 27 STEWARDSHIP ORGANIZATION TO PROVIDE THE FOLLOWING INFORMATION: 28 (I) THE NAME , PRIMARY BUSINESS ADD RESS, AND CONTACT 29 INFORMATION OF THE P ERSON RESPONSIBLE FO R ENSURING COM PLIANCE WITH 30 THIS PART; 31 24 HOUSE BILL 331 (II) A LIST OF EACH BRAND O F REDEEMABLE BEVERAG E 1 CONTAINERS THAT THE PRODUCER INTENDS TO SELL, OFFER FOR SALE , OR 2 DISTRIBUTE IN THE STATE, INCLUDING THE SIZE A ND MATERIAL OF THE 3 REDEEMABLE BEVERAGE CONTAINERS FOR EACH BRAND; 4 (III) FOR EACH REDEEMABLE BEVERAGE CONTAINER SPECIFIED 5 IN THE REGISTRATION, WHETHER THE REDEEMABLE BEVERAGE CONTAINER: 6 1. IS REFILLABLE; AND 7 2. DEPICTS A UPC OR MARYLAND–SPECIFIC UPC 8 BARCODE; 9 (IV) HOW EACH PRODUCER WIL L PREVENT THE FRAUDULENT 10 SALE AND REDEMPTION OF REDEEMABLE BEVERAGE CONTAINERS THAT WERE NOT 11 SOLD IN THE STATE; 12 (V) THE NUMBER OF REDEEMA BLE BEVERAGE CONTAIN ERS 13 EACH PRODUCER SOLD IN THE STATE IN THE IMMEDIATELY PRECEDING CALENDAR 14 YEAR; AND 15 (VI) ANY OTHER INFORM ATION REQUIRED BY TH E 16 DEPARTMENT. 17 (2) A PRODUCER SHALL SUBMIT A COMPLETED REGISTRATION FORM 18 TO THE BEVERAGE CONT AINER STEWARDSHIP OR GANIZATION THAT REPR ESENTS 19 THE PRODUCER. 20 (E) ON A SCHEDULE DETERMINED BY THE DEPARTMENT, EACH PRODUCER 21 SHALL PAY A REGI STRATION FEE ESTABLI SHED BY THE DEPARTMENT UNDER 22 SUBSECTION (F) OF THIS SECTION. 23 (F) (1) THE DEPARTMENT SHALL ESTABLISH AN ANNUAL REGISTRATION 24 FEE FOR PRODUCERS TH AT SELL REDEEMABLE B EVERAGE CONTAINERS I N THE 25 STATE. 26 (2) THE REGISTRATION FEE SHALL BE SET IN A MANNER THAT: 27 (I) WHEN TAKEN IN COMBINA TION WITH ANTICIPATE D 28 REVENUES FROM PENALTIES COLLECTED UNDER § 9–1755 OF THIS SUBTITLE, WILL 29 PRODUCE FUNDS SUFFICIENT TO COVER THE DEPARTMENT’S ESTIMATED COSTS OF 30 PLANNING, IMPLEMENTING, ADMINISTERING, MONITORING, ENFORCING, AND 31 HOUSE BILL 331 25 EVALUATING THE PROGRAM FOR THE UPCOMING YEAR; 1 (II) FOR THE FIRST YEAR OF THE PROGRAM DURING WHICH 2 REGISTRATION FEES ARE COLLECTED, SHALL COVER THE START–UP COSTS OF THE 3 PROGRAM THAT WERE INCURRED BY THE DEPARTMENT AND FINANCED FROM THE 4 GENERAL FUND; AND 5 (III) IS PROPORTIONAL TO A PRODUCER’S SHARE OF THE TOTAL 6 NUMBER OF REDEEMABLE BEVERAGE CONTAINERS SOLD IN THE STATE FOR THE 7 IMMEDIATELY PRECEDING CALENDAR YEAR. 8 (3) THE DEPARTMENT SHALL: 9 (I) IF THE REVENUES FROM THE REGISTRATION FEES IN THE 10 IMMEDIATELY PRECEDIN G YEAR EXCEED THE CO STS SPECIFIED IN PAR AGRAPH 11 (2)(I) OF THIS SUBSECTION, CARRY THE EXCESS REV ENUES FORWARD TO RED UCE 12 REGISTRATION FEES THE FOLLOWING YEAR; AND 13 (II) IF THE REVENUES FROM THE REGISTRATION FEE S IN THE 14 IMMEDIATELY PRECEDIN G YEAR DO NOT COVER THE COSTS SPECIFIED IN 15 PARAGRAPH (2)(I) OF THIS SUBSECTION , ADJUST REGISTRATION FEES FOR THE 16 FOLLOWING YEAR TO AN AMOUNT THAT WILL COV ER THE DEPARTMENT’S ACTUAL 17 COSTS FROM THE IMMEDIATELY PRECEDING YEAR. 18 (4) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 19 PARAGRAPH, REGISTRATION FEES COLLECTED UNDER THIS SUBSECTION SHALL BE: 20 1. TRANSFERRED TO THE STATE RECYCLING TRUST 21 FUND UNDER § 9–1707(F) OF THIS SUBTITLE; AND 22 2. USED ONLY TO COVER THE DEPARTMENT’S COSTS OF 23 PLANNING, IMPLEMENTING, ADMINISTERING, MONITORING, ENFORCING, AND 24 EVALUATING THE PROGRAM. 25 (II) THE PORTION OF THE REGISTRATION FEES THAT COVERED 26 THE START–UP COSTS OF THE PROGRAM AND WERE FINANCED FROM THE GENERAL 27 FUND DURING THE FIRST YEAR OF THE PROGRAM FOR WHICH REGISTRATION FEES 28 ARE COLLECTED IN ACC ORDANCE WITH PARAGRA PH (2)(II) OF THIS SUBSECTION 29 SHALL BE DEPOSITED INTO THE GENERAL FUND. 30 9–1745. 31 (A) ON OR BEFORE OCTOBER 1, 2027, THE DEPARTMENT SHALL APPROVE, 32 26 HOUSE BILL 331 FOR A PERIOD NO T TO EXCEED 10 YEARS, A SINGLE BEVERAGE CO NTAINER 1 STEWARDSHIP ORGANIZATION TO REPRESENT ALL PRODUCERS IN FULFILLING THE 2 REQUIREMENTS OF THIS PART, IF THE BEVERAGE CONT AINER STEWARDSHIP 3 ORGANIZATION DEMONSTRATES THAT IT HAS: 4 (1) THE ABILITY , AS DETERMINE D BY THE DEPARTMENT, TO 5 ADMINISTER THE REQUIREMENTS OF A BEVERAGE CONTAINER STEWARDSHIP PLAN 6 UNDER § 9–1746 OF THIS SUBTITLE; 7 (2) A GOVERNING BOARD CONS ISTING OF PRODUCERS THAT 8 REPRESENT THE DIVERSITY OF APPLICABLE REDEEMABLE BEVERAGE CONTAINERS 9 IN THE MARKET; 10 (3) SET NO UNREASONABLE B ARRIERS TO JOINING T HE BEVERAGE 11 CONTAINER STEWARDSHIP ORGANIZATION AND W ILL TAKE INTO CONSID ERATION 12 THE NEEDS OF SMALL P RODUCERS THAT DO NOT GENERATE A HIGH VOLU ME OF 13 CONTAINERS; 14 (4) ADEQUATE FINANCIAL RE SPONSIBILITY AND SAFEGUARDS , 15 INCLUDING FRAUD PREVENTION MEASURES AND AN AUDIT SCHEDULE; 16 (5) THE ABILITY TO SECURE THE CAPITAL NECESSAR Y FOR THE 17 INITIAL INVESTMENT I N INFRASTRUCTURE , SORTING EQUIPMENT , SOFTWARE, 18 TRANSPORTATION, AND OTHER START–UP EXPENSES; AND 19 (6) MET ANY OTHER REQUIREMENTS SET BY THE DEPARTMENT. 20 (B) IF NO APPLICATION TO OPERA TE A BEVERAGE CONTAI NER 21 STEWARDSHIP ORGANIZATION IS SUBMITTED BY PRODUCERS TO THE DEPARTMENT 22 BY OCTOBER 1, 2027, THE DEPARTMENT SHALL: 23 (1) ESTABLISH OR DESIGNAT E A BEVERAGE CONTAINER 24 STEWARDSHIP ORGANIZATION TO IMPLEMENT THIS PART; AND 25 (2) REQUIRE ALL PRODUCERS , AS A CONDITION OF SE LLING OR 26 DISTRIBUTING BEVERAGES IN THE STATE, TO JOIN AND FUND THE DESIGNATED 27 ORGANIZATION. 28 (C) THE DEPARTMENT MAY RENEW THE APPROVAL OF THE BEVERAGE 29 CONTAINER STEWARDSHI P ORGANIZATION UNDER SUBSECTION (A) OF THIS 30 SECTION IF THE BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION CONTINUES 31 TO MEET THE REQUIREMENTS OF THIS SECTION AND ANY OTHER REQUIREMENT SET 32 BY THE DEPARTMENT. 33 HOUSE BILL 331 27 (D) (1) THE DEPARTMENT SHALL REVOK E THE APPROVAL OF TH E 1 BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION IF THE DEPARTMENT 2 DETERMINES THAT THE BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION: 3 (I) FAILED TO MEET THE REQUIREMENTS OF THIS SECTION; OR 4 (II) FAILED TO IMPLEMENT AND ADMINI STER AN APPROVED 5 BEVERAGE CONTAINER S TEWARDSHIP PLAN IN A CCORDANCE WITH § 9–1746 OF 6 THIS SUBTITLE. 7 (2) IF THE DEPARTMENT REVOKES TH E APPROVAL OF THE 8 BEVERAGE CONTAINER S TEWARDSHIP ORGANIZATION UNDER PARAGRAPH (1) OF 9 THIS SUBSECTION: 10 (I) THE DEPARTMENT MAY APPROV E ONE OR MORE 11 ADDITIONAL BEVERAGE CONTAINER STEWARDSHIP ORGANIZATIONS TO CARRY OUT 12 THE RESPONSIBILITIES OF THE BEVERAGE CONT AINER STEWARDSHIP 13 ORGANIZATION THAT WA S REVOKED , SUBJECT TO ONE OR MO RE OF THE 14 ADDITIONAL BEVERAGE CONTAINER STEWARDSHIP ORGANIZATIONS MEETING THE 15 REQUIREMENTS SPECIFIED IN SUBSECTION (A) OF THIS SECTION; AND 16 (II) THE TRUSTEE OR ESCROW AGENT OF THE TRUST F UND OR 17 ESCROW ACCOUNT ESTAB LISHED IN THE BEVERA GE CONTAINER STEWARD SHIP 18 PLAN UNDER § 9–1746(A)(3)(VI) OF THIS SUBTITLE SHALL: 19 1. RECEIVE ALL PAYMENTS DIRECTLY FROM 20 PRODUCERS THAT WOULD HAVE BEEN PAID TO TH E BEVERAGE CONTAINER 21 STEWARDSHIP ORGANIZATION; 22 2. DEPOSIT THE PAYMENTS RECEIVED UNDER ITEM 1 OF 23 THIS ITEM INTO THE TRUST FUND OR ESCROW ACCOUNT; AND 24 3. MAKE PAYMENTS FROM THE TRUST FUND OR ESCROW 25 ACCOUNT AS DIRECTED BY THE DEPARTMENT TO IMPLEMENT THE REQUIREMENTS 26 OF THIS PART. 27 9–1746. 28 (A) (1) ON OR BEFORE MARCH 1, 2028, THE BEVERAGE CONTAIN ER 29 STEWARDSHIP ORGANIZA TION SHALL SUBMIT A BEVERAGE CO NTAINER 30 STEWARDSHIP PLAN TO THE DEPARTMENT. 31 28 HOUSE BILL 331 (2) A BEVERAGE CONTAINER STEWARDSHIP PLAN SHALL: 1 (I) IDENTIFY AND INCLUDE THE CONTACT INFORMATION FOR 2 EACH PRODUCER INTENDED TO BE COVERED UNDER THE PLAN; 3 (II) IDENTIFY EACH BRAND O F REDEEMABLE BEVERAG E 4 CONTAINER INTENDED T O BE SOLD UNDER THE PLAN, INCLUDING THE SIZE A ND 5 MATERIAL OF THE REDE EMABLE BEVERAGE CONT AINERS FOR EACH BRAN D AND 6 WHETHER THE REDEEMABLE BEVERAGE CONTAINERS ARE REFILLABLE; 7 (III) DESCRIBE: 8 1. THE FINANCIN G INFORMATION SPECIF IED IN 9 PARAGRAPH (3) OF THIS SUBSECTION; 10 2. THE LOCATION AND DIST RIBUTION OF 11 ACCOUNT–BASED BULK PROCESSIN G PROGRAMS , BAG DROP PROGRAMS , AND 12 REDEMPTION FACILITIES THE ORGANIZATION WILL DEVELOP, AS NECESSARY TO: 13 A. COMPLY WITH THE CONVENIENCE STAN DARDS 14 ESTABLISHED BY THE DEPARTMENT UNDER § 9–1752 OF THIS SUBTITLE; AND 15 B. ACHIEVE THE PERFORMAN CE TARGETS UNDER § 16 9–1740 OF THIS SUBTITLE; 17 3. HOW THE PERFORMANCE T ARGETS WILL BE MET O R 18 EXCEEDED FOR THE 5–YEAR PERIOD FOLLOWING THE YEAR IN WHICH THE PLAN IS 19 APPROVED; 20 4. HOW STAKEHOLDER COMME NTS WERE CONSIDERED 21 AND REFLECTED IN THE DEVELOPMENT OF THE P LAN, INCLUDING THE ROLE O F 22 RETAILERS, DISTRIBUTORS, AND LOCAL GOVERNMENTS IN PLAN IMPLEMENTATION; 23 5. THE ADMINI STRATION AND IMPLEME NTATION OF 24 THE PLAN , INCLUDING ANY STAFFI NG THAT WILL BE NECE SSARY FOR THESE 25 PURPOSES; 26 6. THE ACTIONS THAT HAVE BEEN TAKEN AND THAT 27 WILL BE TAKEN FOR PU BLIC OUTREACH , EDUCATION, AND COMMUNICATION , 28 INCLUDING MESSAGING AND IDENTIFICATION OF TARGET AUDIENCES; 29 7. THE ANTICIPATED INVES TMENTS THAT WILL BE 30 MADE TO IMPROVE THE REUSE OF BEVERAGE CO NTAINERS, INCLUDING THE 31 HOUSE BILL 331 29 SOURCE OF FUNDING FOR THE INVESTMENTS; AND 1 8. THE ACTIONS THE ORGAN IZATION WILL TAKE TO 2 ENSURE THE PLA N IS IMPLEMENTED IN A MANNER THAT COMPLI ES WITH THE 3 REQUIREMENTS OF SUBSECTION (D)(2) OF THIS SECTION; 4 (IV) LIST THE STAKEHOLDERS CONSULTED IN DEVELOPING THE 5 PLAN; 6 (V) PROVIDE THE ANTICIPATED COSTS OF IMPLEMENTING THE 7 PLAN FOR 5 YEARS, BROKEN DOWN BY YEAR; 8 (VI) INCLUDE A CLOSURE AND TRANSFER PLAN FOR HANDLING 9 THE AFFAIRS OF THE B EVERAGE CONTAINER ST EWARDSHIP ORGANIZATION THAT 10 ENSURES THAT EACH PRODUCER INTENDED TO BE COVERED UNDER THE BEVERAGE 11 CONTAINER STEWARDSHIP PLAN CAN FULFILL T HE PRODUCER’S OBLIGATIONS IN 12 THE EVENT THAT THE B EVERAGE CONTAINER ST EWARDSHIP ORGANIZATI ON 13 DISSOLVES OR HAS ITS APPROVAL REVOKED UND ER § 9–1745 OF THIS SUBTITLE ; 14 AND 15 (VII) INCLUDE AN Y OTHER INFORMATION REQUESTED BY THE 16 DEPARTMENT. 17 (3) THE FINANCING INFORMA TION INCLUDED IN A B EVERAGE 18 CONTAINER STEWARDSHIP PLAN SHALL: 19 (I) EXPLAIN THE FINANCING FOR DIRECT INVESTMEN TS OR 20 REIMBURSEMENTS THAT WILL IMPROVE INFRAST RUCTURE IN A MANNER THAT 21 SUPPORTS REDEMPTION SERVICES AND TECHNOLOGIES; 22 (II) ESTABLISH A FEE STRUC TURE IN ACCORDANCE W ITH 23 PARAGRAPH (4) OF THIS SUBSECTION F OR PRODUCERS PARTICI PATING IN THE 24 BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION; 25 (III) DESCRIBE THE COSTS OF MEETING THE PERFORMANCE 26 TARGETS; 27 (IV) DESCRIBE THE INCENTIV ES USED TO ENCOURAGE 28 PRODUCERS TO: 29 1. INVEST IN REUSABLE AN D REFILLABLE BEVERAG E 30 CONTAINER SYSTEMS; AND 31 30 HOUSE BILL 331 2. REDESIGN BEVERAGE CON TAINERS TO BE EASIER 1 AND LESS COSTLY TO RECYCLE; 2 (V) CREATE INCENTIVES FOR PRODUCERS TO USE A 3 MARYLAND–SPECIFIC UPC BARCODE TO REDUCE FRAUDULENT REDEMPTION; 4 (VI) ESTABLISH A TRUST FUND OR AN ESCROW ACCOUNT IN THE 5 STATE INTO WHICH THE BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION 6 SHALL DEPOSIT ALL UN EXPENDED FUNDS FOR USE IN ACCORDANCE WITH THIS 7 SECTION IN THE EVENT THAT THE BEVERAGE CO NTAINER STEWARDSHIP 8 ORGANIZATION DISSOLVES OR HAS ITS APPROVAL REVOKED BY THE DEPARTMENT 9 UNDER § 9–1745 OF THIS SUBTITLE; AND 10 (VII) MEET ANY OTHER REQUIR EMENTS ESTABLISH ED BY THE 11 DEPARTMENT. 12 (4) (I) THE FEE STRUCTURE REQUIRED UNDER PARAGRAPH (3) OF 13 THIS SUBSECTION FOR PRODUCERS PARTICIPATING IN THE BEVERAGE CONTAINER 14 STEWARDSHIP ORGANIZATION SHALL BE: 15 1. SET IN A MANNER THAT COVERS THE COSTS OF 16 ADMINISTERING THE B EVERAGE CONTAINER ST EWARDSHIP ORGANIZATI ON AND 17 IMPLEMENTING THE BEVERAGE CONTAINER STEWARDSHIP PLAN; AND 18 2. BASED ON: 19 A. THE COSTS ASSOCIATED WITH TRANSPORTING , 20 COLLECTING, AND PROCESSING EACH TYPE OF REDEEMABLE B EVERAGE 21 CONTAINER MATERIAL; 22 B. WHETHER A PRODUCER ’S REDEEMABLE BEVERAG E 23 CONTAINERS ARE REFILLABLE; 24 C. WHETHER A PRODUCER ’S EMPTY REDEEMABLE 25 BEVERAGE CONTAINERS ARE EASY TO RECYCLE; 26 D. WHETHER A PRODUCER ’S REDEEMABLE BEVERAG E 27 CONTAINERS HAVE A MARYLAND–SPECIFIC UPC BARCODE; 28 E. A PRODUCER’S PORTION , BY MATERIAL TYPE , OF 29 REDEEMABLE BEVERAGE CONTAINERS SOLD IN THE STATE DURING THE PREVIOUS 30 CALENDAR YEAR; AND 31 HOUSE BILL 331 31 F. ANY OTHER FACTOR THE DEPARTMENT DETERMINES 1 IS NECESSARY TO SUPPORT THE PROGRAM. 2 (II) 1. EXCEPT AS PROVIDE D IN § 9–1745(D)(2) OF THIS 3 SUBTITLE, A PRODUCER PARTICIPA TING IN THE BEVERAGE CONTAINER 4 STEWARDSHIP ORGANIZA TION SHALL PAY THE F EE ESTABLISHED UNDER 5 PARAGRAPH (3) OF THIS SUBSECTION TO THE BEVERAGE CONTAINER STEWARDSHIP 6 ORGANIZATION. 7 2. THE BEVERAGE CONTAINER STEWARDSHI P 8 ORGANIZATION SHALL DEPOSIT FEES RECEIVED UNDER THIS SUBPARAGRAPH TO AN 9 ACCOUNT HELD BY THE BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION. 10 3. THE BEVERAGE CONTAINE R STEWARDSHIP 11 ORGANIZATION MAY USE THE FEES RECEIVED UN DER THIS SUBPA RAGRAPH ONLY 12 FOR IMPLEMENTING THE BEVERAGE CONTAINER STEWARDSHIP PLAN. 13 (5) THE DEPARTMENT SHALL SUBM IT A BEVERAGE CONTAI NER 14 STEWARDSHIP PLAN TO AN INDEPENDENT FINAN CIAL AUDITOR TO ENSU RE THAT 15 THE FINANCING PROPOSED IN THE PLAN WILL COVER THE COSTS OF IMPLEMENTING 16 THE PLAN. 17 (B) (1) (I) WITHIN 120 DAYS AFTER RECEIPT O F A BEVERAGE 18 CONTAINER STEWARDSHIP PLAN SUBMITTED TO THE DEPARTMENT UNDER THIS 19 SECTION, THE DEPARTMENT SHALL APPR OVE, APPROVE WITH CONDITI ONS, OR 20 DENY THE PLAN. 21 (II) IN DETERMINING WHETH ER TO APPROVE , APPROVE WITH 22 CONDITIONS, OR DENY A BEVERAGE C ONTAINER STEWARDSHIP PLAN, THE 23 DEPARTMENT SHALL: 24 1. CONSIDER WHETHER: 25 A. THE PLAN COMPLIES WIT H THE REQUIREMENTS O F 26 THIS SECTION; AND 27 B. THERE WAS SUFFICIENT ENGAGEMENT WITH 28 STAKEHOLDERS, INCLUDING LOCAL GOVE RNMENTS, RETAILERS, DISTRIBUTORS, 29 AND ON–PREMISES SELLERS, IN DEVELOPING THE PLAN; AND 30 2. CONSULT WITH THE ADVISORY COUNCIL. 31 (2) (I) THE DEPARTMENT MAY RESCIN D APPROVAL OF A 32 32 HOUSE BILL 331 BEVERAGE CONTAINER STEWARDSHIP PLAN FOR GOOD CAUSE. 1 (II) THE BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION 2 MAY AMEND A RESCINDED BEVERAGE CONTAINER STEWARDSHIP PLAN AND SUBMIT 3 THE AMENDED PLAN TO THE DEPARTMENT FOR APPROVAL. 4 (3) (I) A BEVERAGE CONTAINER S TEWARDSHIP PLAN APPR OVED 5 BY THE DEPARTMENT MAY BE AMENDED WITH APPROVAL OF THE DEPARTMENT. 6 (II) THE DEPARTMENT MAY REQUIR E THAT AN APPROVED 7 BEVERAGE CONTAINER S TEWARDSHIP PLAN BE A MENDED IF THE REPORT 8 SUBMITTED UNDER § 9–1747 OF THIS SUBTITLE REF LECTS THAT THE 9 PERFORMANCE TARGETS HAVE NOT BEEN MET. 10 (C) AN APPROVED BEVERAGE CONTAINER STEWARDSHIP PLAN EXPIRES AT 11 THE END OF 5 YEARS. 12 (D) (1) THE BEVERAGE CONTAINE R STEWARDSHIP ORGANI ZATION 13 SHALL IMPLEMENT AND ADMINISTER A BEVERAGE CONTAINER STEWARDSHIP PLAN 14 WITHIN 6 MONTHS AFTER THE PLAN IS APPROVED. 15 (2) IN IMPLEMENTING AND ADMINISTERING A BEVERAGE CONTAINER 16 STEWARDSHIP PLAN , THE BEVERAGE CONTAIN ER STEWARDSHIP ORGAN IZATION 17 SHALL: 18 (I) FACILITATE LOGISTICS, THE INITIATION OF DEPOSITS, AND 19 THE ISSUANCE OF REFUNDS UNDER THE PLAN; 20 (II) COORDINATE THE LOGISTICS FOR TIMELY COLLECTION OF 21 REDEEMABLE BEVERAGE CONTAINERS FROM AN ON–PREMISES SELLER; 22 (III) ESTABLISH PROCEDURES FOR TRACKING REDEEMA BLE 23 BEVERAGE CONTAINERS SOLD IN THE STATE; 24 (IV) DESIGN AND OPERATE SE RVICES FOR THE 25 TRANSPORTATION AND PROCESSING OF REDEEMABLE BEVERAGE CONTAINERS; 26 (V) DEVELOP AND IMPLEMENT A PLAN FOR ESTABLISH ING, 27 OPERATING, AND MANAGING REDEMPT ION FACILITIES THAT WILL OFFER A WIDE 28 RANGE OF CONVENIENT REDEMPTION LOCATIONS AND TECHNOLOGIES THA T ARE 29 EASY TO USE, ACCESSIBLE, AND MEET OR EXCEED T HE CONVENIENCE STANDARDS 30 ESTABLISHED BY THE DEPARTMENT UNDER § 9–1752 OF THIS SUBTITLE; 31 HOUSE BILL 331 33 (VI) DEVELOP AND IMPLEMENT A PLAN FOR THE DISTRIBUTION, 1 OPERATION, AND MAINTENANCE OF B EVERAGE CONTAINER RE DEMPTION AND 2 PROCESSING METHODS , INCLUDING REVERSE VE NDING MACHINES , BAG DROP 3 PROGRAMS, AND ACCOUNT–BASED BULK PROCESSING PROGRAMS; 4 (VII) DEVELOP ACCOUNTING AND CONTROL STANDARDS; 5 (VIII) IMPLEMENT ACCOUNTING , AUDIT, PAYMENT, AND 6 REPORTING PROCEDURES; 7 (IX) ESTABLISH A HIGH –VOLUME VALIDATION AN D AUDIT 8 SYSTEM TO PAY A BULK RATE TO AN ON –PREMISES SELLER FOR THE REDEMPTION 9 OF EMPTY REDEEMABLE BEVERAGE CONTAINERS; 10 (X) ESTABLISH AN APPLICAT ION PROCESS FOR LARG E 11 ON–PREMISES SELLERS TO APPLY FOR AND RECEIV E A BULK RAT E FOR THE 12 REDEMPTION OF HIGH VOLUMES OF EMPTY REDEEMABLE BEVERAGE CONTAINERS; 13 (XI) MARKET REDEEMABLE BEVERAGE CONTAINER MATERIALS 14 FOR REUSE IN THE MANUFACTURING OF SIMILAR PRODUCTS; 15 (XII) FUND A MARKETING PROG RAM TO EDUCATE THE P UBLIC 16 ABOUT THE PROGRAM; 17 (XIII) ESTABLISH A SYSTEM FO R REPORTING KEY INFO RMATION 18 GATHERED BY THE PROGRAM TO THE DEPARTMENT ON A QUARTERLY BASIS; AND 19 (XIV) CREATE INCENTIVES FOR THE DEVELOPMENT OF 20 REFILLABLE AND REUSABLE BEVERAGE CONTAINER SYSTEMS. 21 (3) ON REQUEST OF THE DEPARTMENT, THE BEVERAGE CONTAINER 22 STEWARDSHIP ORGANIZATION SHALL SUBMIT A COPY OF ITS FINANCIA L RECORDS 23 TO THE DEPARTMENT FOR A FINANCIAL AUDIT. 24 9–1747. 25 (A) THIS SECTION APPLIES TO THE BEVERAGE CONT AINER STEWARDSHIP 26 ORGANIZATION THAT HAS A BEVERAGE CONTAINER STEWARDSHIP PLAN APPROVED 27 BY THE DEPARTMENT UNDER § 9–1746 OF THIS SUBTITLE. 28 (B) (1) ON OR BEFORE APRIL 1 EACH YEAR, BEGINNING IN 2030, THE 29 BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION SHALL SUBMIT A REPORT TO 30 THE DEPARTMENT ON THE PRO GRESS MADE IN THE PRE CEDING CALENDAR YEAR 31 34 HOUSE BILL 331 TOWARD MEETING THE PERFORMANCE TARGETS AND THE GOALS OF THE PROGRAM 1 AND THE BEVERAGE CON TAINER STEWARDSHIP O RGANIZATION’S BEVERAGE 2 CONTAINER STEWARDSHIP PLAN. 3 (2) THE DEPARTMENT SHALL PROV IDE THE ADVISORY COUNCIL 4 WITH A COPY OF EACH REPORT SUBMITTED UNDER THIS SUBSECTION. 5 (C) THE REPORT SUBMITTED UNDER SUBSECTION (B) OF THIS SECTION 6 SHALL INCLUDE, FOR THE PRECEDING CALENDAR YEAR: 7 (1) THE PROGRESS MADE TOW ARD ACHIEVING THE PE RFORMANCE 8 TARGETS; 9 (2) IF THE PE RFORMANCE TARGETS WE RE NOT ACHIEVED , A 10 DESCRIPTION OF THE A CTIONS PROPOSED TO A CHIEVE THE PERFORMAN CE 11 TARGETS; 12 (3) THE NUMBER OF REDEEMABLE BEVERAGE CONTAINERS SOLD IN 13 THE STATE; 14 (4) THE NUMBER OF REDEEMABLE BEVERAGE CONTAINERS SOLD IN 15 THE STATE SORT ED BY MATERIAL TYPE , REFUND VALUE , AND WHETHER THE 16 CONTAINER CAN BE REFILLED OR REUSED; 17 (5) THE NUMBER OF EMPTY R EDEEMABLE BEVERAGE C ONTAINERS 18 REDEEMED; 19 (6) THE NUMBER OF EMPTY R EDEEMABLE BEVERAGE C ONTAINERS 20 REDEEMED AT EACH RED EMPTION FACILITY , REVERSE VENDING MACH INE, BAG 21 DROP PROGRAM , ACCOUNT–BASED BULK PROCESSIN G PROGRAM , OR OTHER 22 BEVERAGE CONTAINER R EDEMPTION AND PROCES SING METHOD SORTED B Y 23 MATERIAL TYPE , REFUND VALUE , AND WHETHER THE EMPT Y REDEEMABLE 24 BEVERAGE CONTAINER CAN BE REFILLED OR REUSED; 25 (7) THE REDEMPTION RATE A ND RECYCLING RATE FO R 26 NONREFILLABLE REDEEM ABLE BEVERAGE CONTAI NERS SOLD IN THE STATE 27 SORTED BY MATERIAL T YPE, NUMBER OF CONTAINERS SOLD, AND CONTAINER 28 WEIGHT; 29 (8) THE AMOUNT OF EACH TYPE OF: 30 (I) REDEEMABLE BEVERAGE C ONTAINER MATERIAL 31 COLLECTED IN THE STATE; AND 32 HOUSE BILL 331 35 (II) SCRAP MATERIAL SOLD B Y THE BEVERAGE CONTA INER 1 STEWARDSHIP ORGANIZATION; 2 (9) THE LOCATION OF EACH REDEMPTION FACILITY IN THE STATE 3 AND THE REDEMPTION METHOD USED AT EACH REDEMPTION FACILITY; 4 (10) A DESCRIPTION OF ANY I MPROVEMENTS MADE TO MAKE 5 RETURNING EMPTY REDE EMABLE BEVERAGE CONT AINERS EASIER AND MO RE 6 CONVENIENT; 7 (11) THE IDENTIFICATION AND DESCRIPTION OF AREAS THAT DO NOT 8 HAVE READILY AVAILAB LE OPTIONS FOR REDEE MING AN EMPTY REDEEM ABLE 9 BEVERAGE CONTAINER A ND ACTIONS THE BEVER AGE CONTAINER STEWAR DSHIP 10 ORGANIZATION WILL TAKE TO IMPROVE OPTIONS IN THESE AREAS; 11 (12) THE NUMBER OF CONSUME R COMPLAINTS PER MON TH, SORTED 12 BY REDEMPTION FACILITY; 13 (13) THE NUMBER AND TYPE O F COMPLAINTS FROM O N–PREMISES 14 SELLERS PER MONTH, SORTED BY TYPE OF BUSINESS; 15 (14) THE NUMBER OF INDIVID UALS AND ORGANIZATIO NS WITH 16 ACCOUNTS ESTABLISHED FOR THE RECEIPT OF E LECTRONIC DEPOSITS O R 17 REFUNDS; 18 (15) THE TOTAL COST OF IMPLEMENTING THE BEVERAGE CONTAINER 19 STEWARDSHIP PLAN, AS DETERMINED BY AN INDEPENDENT FINANCIAL AUDITOR 20 UNDER § 9–1746(A)(5) OF THIS SUBTITLE; 21 (16) THE AVERAGE COST OF P ROCESSING AN EMPTY R EDEEMED 22 REDEEMABLE BEVERAGE CONTAINER; 23 (17) A COPY OF THE AUDIT CO NDUCTED UNDER § 9–1746(A)(5) OF 24 THIS SUBTITLE; 25 (18) FINANCIAL STATEMENTS DETAILING ALL DEPOSI TS RECEIVED 26 AND REFUNDS ISSUED B Y EACH PRODUCER COVE RED UNDER THE BEVERA GE 27 CONTAINER STEWARDSHIP PLAN; 28 (19) THE TOTAL AMOUNT OF D EPOSITS INITIATED, REFUNDS ISSUED, 29 AND UNCLAIMED DEPOSI TS COLLECT ED UNDER THE BEVERAG E CONTAINER 30 STEWARDSHIP PLAN; 31 36 HOUSE BILL 331 (20) AN ACCOUNTING OF ALL ACTIVITIES AND INVES TMENTS 1 FINANCED BY UNCLAIMED DEPOSITS; 2 (21) EXPENDITURES AND REVENUES SORTED BY SOURCE, INCLUDING 3 FEES PAID UNDER § 9–1746(A)(4) OF THIS SUBTITLE, REVENUE FROM THE SALE OF 4 SCRAP MATERIALS, AND UNCLAIMED DEPOSITS; 5 (22) SAMPLES OF ALL EDUCAT IONAL MATERIALS PROV IDED TO 6 CONSUMERS, RETAILERS, AND OTHER ENTITIES; 7 (23) A DETAILED DESCRIPTION OF INVESTMENTS MADE IN NEW 8 REDEMPTION FACILITIES AND REDEMPTION METHODS; 9 (24) THE LOCATION OF NEW R EDEMPTION FACILITIES AND 10 REDEMPTION METHODS; 11 (25) A DETAILED DESCRIPTION OF CHANGES MADE BY PRODUCERS TO 12 INCREASE THE RECYCLABILITY OF REDEEMABLE BEVERAGE CONTAINERS; 13 (26) A DETAILED DESCRIPTION OF ANY INCIDENTS OF FRAUD AND 14 EFFORTS TAKEN TO PREVENT FRAUD; AND 15 (27) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT. 16 (D) THE FINANCIAL , PRODUCTION, AND SALES DATA OF IN DIVIDUAL 17 PRODUCERS REPORTED T O THE DEPARTMENT UNDER THIS SECTION SHALL BE 18 KEPT CONFIDENTIAL BY THE DEPARTMENT AND THE ADVISORY COUNCIL. 19 (E) THE DEPARTMENT SHALL POST THE REPORT SUBMITTED UNDER THIS 20 SECTION ON THE DEPARTMENT’S WEBSITE IN A MANNE R THAT PROTECTS THE 21 CONFIDENTIALITY OF T HE DATA SPECIFIED UN DER SUBSECTION (D) OF THIS 22 SECTION. 23 9–1748. 24 (A) (1) THE DEPARTMENT SHALL ESTABLISH A PROCESS FOR A COUNTY 25 OR MUNICIPAL CORPORATION TO CREATE A REDEMPTION FACILITY. 26 (2) A COUNTY OR MUNICIPAL CORPORATION MAY NOT BE REQUIRED 27 TO HOST, OPERATE, OR PROVIDE LAND, FACILITIES, OR ANY OTHER RESOURCES FOR 28 THE ESTABLISHMENT OR OPERATION OF ANY REDEMPTION FACILITY. 29 HOUSE BILL 331 37 (B) EMPTY REDEEMABLE BEVE RAGE CONTAINERS REDE EMED AT A 1 REDEMPTION FACILITY MANAGED BY A COUNTY OR MUNICIPAL CORPORA TION 2 SHALL BE CREDITED TOWARD MEETING THE RECYCLING RATES REQUIRED UNDER § 3 9–505 OF THIS TITLE. 4 (C) (1) THROUGH DECEMBER 31, 2031, A PORTION OF PROGRAM 5 REVENUES SHALL BE US ED TO COMPENSATE A C OUNTY OR MUNICIPAL 6 CORPORATION FOR ANY NET LOSS OF REVENUE TO THE COUNTY ’S OR MUNICIPAL 7 CORPORATION’S WASTE MANAGEMENT S YSTEM THAT CAN BE DO CUMENTED AND 8 ATTRIBUTED TO THE PROGRAM. 9 (2) IN DETERMINING A NET LOSS OF REVENUE , A COUNTY OR 10 MUNICIPAL CORPORATION SHALL CONSIDER: 11 (I) THE LOSS OF REVENUE F ROM THE SALE OF SCRA P 12 MATERIALS; 13 (II) FINANCIAL SAVINGS FROM A REDUCTION IN: 14 1. GLASS BOTTLES IN THE RECYCLING STREAM; 15 2. TRANSPORTATION COSTS ASSOCIATED WITH 16 CURBSIDE COLLECTION OF TRASH AND RECYCLING; 17 3. PROCESSING COSTS ASSO CIATED WITH RECYCLIN G 18 BEVERAGE CONTAINERS; 19 4. THE COSTS OF LANDFILL ING AND INCINERATING 20 BEVERAGE CONTAINERS THAT ARE NOT RECYCLED; AND 21 5. THE COSTS OF LITTER COLLECTION; AND 22 (III) FOR A COUNTY OR MUNIC IPAL CORPORATION THAT HAS A 23 TOTAL MAXIMUM DAILY LOAD FOR TRASH IN A WATERWAY UNDER ITS 24 JURISDICTION, THE REDUCED COSTS AN D INCREASED BENEFITS OF C OMPLYING 25 WITH THE TOTAL MAXIM UM DAILY LOAD DUE TO A REDUCTION IN BEVER AGE 26 CONTAINER LITTER. 27 9–1749. 28 FUNDING FOR THE PROGRAM SHALL: 29 (1) INCLUDE: 30 38 HOUSE BILL 331 (I) REDEEMABLE BEVERAGE C ONTAINER STEWARDSHIP 1 ORGANIZATION FEES COLLECTED UNDER § 9–1746 OF THIS SUBTITLE; 2 (II) REVENUE FROM THE SALE OF RAW MATERIALS; 3 (III) UNCLAIMED DEPOSITS CO LLECTED UNDER § 9–1743 OF 4 THIS SUBTITLE; 5 (IV) REGISTRATION FEES COLLECTED UNDER § 9–1744 OF THIS 6 SUBTITLE; AND 7 (V) PENALTIES COLLECTED U NDER § 9–1755 OF THIS 8 SUBTITLE; AND 9 (2) BE USED IN ACCORDANCE WITH §§ 9–1707(F), 9–1743, 9–1744, 10 AND 9–1755 OF THIS SUBTITLE. 11 9–1750. 12 (A) THERE IS A BEVERAGE CONTAINER RECYCLING REFUND GRANT 13 PROGRAM. 14 (B) THE PURPOSE OF THE GRANT PROGRAM IS TO PROVIDE FUNDING FOR: 15 (1) AN ASSESSMENT OF THE INVESTMENTS A ND POLICIES 16 NECESSARY TO ENSURE THAT, BY DECEMBER 31, 2038, AT LEAST 10% OF ALL 17 BEVERAGE CONTAINERS SOLD IN THE STATE ARE RETURNED AND REFILLED; AND 18 (2) PROJECTS THAT: 19 (I) INCREASE THE REUSE AN D RECYCLING OF BEVER AGE 20 CONTAINERS IN THE STATE; 21 (II) INCREASE THE AVAILABI LITY OF PUBLIC WATER 22 FOUNTAINS AND REFILL STATIONS IN THE STATE; AND 23 (III) REDUCE THE VOLUME OF LITTER FROM BEVERAGE 24 CONTAINERS IN THE STATE. 25 (C) THE CHESAPEAKE BAY TRUST SHALL ADMINISTER THE GRANT 26 PROGRAM. 27 HOUSE BILL 331 39 (D) THE GRANT PROGRAM SHALL BE FUND ED FROM A PORTION OF THE 1 UNCLAIMED DEPOSITS T RANSFERRED TO THE CHESAPEAKE BAY TRUST UNDER § 2 9–1743(D)(4)(II) OF THIS SUBTITLE. 3 (E) THE FOLLOWING ENTITIE S ARE ELIGIBLE FOR A GRANT UNDER THE 4 GRANT PROGRAM: 5 (1) A SCHOOL OR AN INSTITUTION OF HIGHER EDUCATION; 6 (2) A NONPROFIT ORGANIZATION; 7 (3) A COUNTY OR MUNICIPAL CORPORATION; 8 (4) A FOR–PROFIT ORGANIZATION; AND 9 (5) A PUBLIC–PRIVATE PARTNERSHIP. 10 (F) THE DEPARTMENT, IN CONSULTATION WITH THE ADVISORY COUNCIL, 11 SHALL ADOPT REGULATIONS ESTABLISHING: 12 (1) AN APPLICATION PROCES S FOR AN ENTITY TO A PPLY FOR A 13 GRANT; 14 (2) THE CRITERIA FOR EVALUATING AND AWARDING GRANTS; 15 (3) REPORTING AND EVALUAT ION REQUIREMENTS FOR A GRANT 16 AWARDED UNDER THIS SECTION; AND 17 (4) ANY OTHER REQUIREMENT S THE DEPARTMENT DETERMINES 18 ARE NECESSARY FOR AD MINISTERING AND IMPL EMENTING GRANTS AWAR DED 19 UNDER THE GRANT PROGRAM. 20 (G) BEGINNING JANUARY 1, 2030, THE CHESAPEAKE BAY TRUST SHALL 21 BEGIN AWARDING GRANTS UNDER THE GRANT PROGRAM. 22 9–1751. 23 (A) BEGINNING JANUARY 1, 2029, AND CONTINUING UNTIL 24 REIMBURSEMENT PAYMENTS UNDER § 9–2506 OF THIS TITLE BEGIN, THE BEVERAGE 25 CONTAINER STEWARDSHI P ORGANIZATION SHALL PROVIDE PAYMENTS TO A 26 MATERIAL RECOVERY FA CILITY TO COVER THE COSTS OF COLLECTING , SORTING, 27 PROCESSING, AND TRANSPORTING EMPTY UNREDEEMED REDEEMABLE BEVERAGE 28 CONTAINERS FOR RECYCLING, REUSE, OR REFILLING. 29 40 HOUSE BILL 331 (B) A MATERIAL RECOVERY FA CILITY SHALL BE ELIG IBLE TO RECEIVE A 1 PAYMENT UNDER THIS SECTION ONLY IF: 2 (1) THE UNREDEEMED REDEEM ABLE BEVERAGE CONTAI NERS 3 RECEIVED MEET THE AP PLICABLE SPECIFICATI ONS IN THE MOST RECE NTLY 4 PUBLISHED GUIDELINES OF THE INSTITUTE OF SCRAP RECYCLING INDUSTRIES; 5 (2) THE MATERIAL RECOVERY FACILITY REPORTS TO THE BEVERAGE 6 CONTAINER STEWARDSHIP ORGANIZATION THE NUMBER OF TONS OF UNREDEEMED 7 REDEEMABLE BEVERAGE CONTAINERS RECEIVED FOR PROCESSING IN TH E 8 PREVIOUS MONTH, CATEGORIZED BY MATERIAL TYPE; AND 9 (3) THE MATERIAL RECOVERY FACILITY REPORTS TO THE BEVERAGE 10 CONTAINER STEWARDSHI P ORGANIZATION THE N UMBER OF UNREDEEMED 11 REDEEMABLE BEVERAGE CONTAINERS TRANSFERRED TO ADDITIONAL MAT ERIALS 12 PROCESSING FACILITIES OR END MARKETS IN THE PREVIOUS MONTH, CATEGORIZED 13 BY MATERIAL TYPE. 14 (C) THE OPERATOR OF A MAT ERIAL RECOVERY FACIL ITY SHALL USE AN 15 INDUSTRY–STANDARD SCALE TO ME ASURE THE WEIGHT OF ALL COVERED 16 BEVERAGE CONTAINER MATERIALS RECEIVED BY THE FACILITY. 17 (D) THE BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION MAY, AT ITS 18 OWN EXPENSE, CONDUCT AUDITS OF TH E QUALITY AND QUANTI TY OF MATERIALS 19 HANDLED BY A MATERIA L RECOVERY FACILITY , ON REQUEST BY THE 20 ORGANIZATION. 21 (E) (1) THE DEPARTMENT SHALL ESTA BLISH THE PAYMENT AM OUNT 22 UNDER THIS SECTION. 23 (2) THE DEPARTMENT MAY ADJUST THE PAYMENT A MOUNT AS 24 NECESSARY TO ACCOUNT FOR CHANGES IN THE C OSTS OF COLLECTING, SORTING, 25 PROCESSING, AND TRANSPORTING EMPTY UNREDEEMED REDEEMABLE BEVERAGE 26 CONTAINERS. 27 9–1752. 28 IN ADDITION TO THE DU TIES AND REQUIREMENTS SPECIFIED IN THIS PART, 29 THE DEPARTMENT SHALL: 30 (1) IN CONSULTATION WITH THE ADVISORY COUNCIL: 31 HOUSE BILL 331 41 (I) ESTABLISH CONVENIENCE STANDARDS FOR THE COVERAGE 1 AND AVAILABILITY OF REDEMPTION OPTIONS ACROSS THE STATE; AND 2 (II) ENSURE THE CONVENIENC E STANDARDS PROVIDE 3 ACCESSIBLE REDEMPTION OPTIONS FOR DIFFERENTLY ABLED PEOPLE AND PEOPLE 4 WHO LIVE IN RURAL AREAS OR LOW–INCOME COMMUNITIES OF COLOR; 5 (2) ESTABLISH A SYSTEM FO R LARGE ON –PREMISES SELLERS TO 6 VERIFY THE SOURCE OF THE HIGH VOLUMES OF REDEEMABLE BEVERAGE 7 CONTAINERS REDEEMED BY THE ON–PREMISES SELLER; AND 8 (3) PERIODICALLY REVIEW A VAILABLE BEVERAGE CO NTAINER 9 REDEMPTION AND PROCESSING METHODS TO DETERMINE WHETHER THE TYPES OF 10 BEVERAGE CONTAINERS COVERED UNDER THE PROGRAM SHOULD BE EXPANDED. 11 9–1753. 12 (A) THERE IS A REDEEMABLE BEVERAGE CONTAINER RECYCLING 13 REFUND ADVISORY COUNCIL. 14 (B) THE ADVISORY COUNCIL CONSISTS OF T HE FOLLOWING MEMBERS , 15 DESIGNATED BY THE SECRETARY: 16 (1) ONE MEMBER REPRESENTING RECYCLING PROCESSORS; 17 (2) ONE MEMBER REPRESENTI NG LOCAL GOVERNMENT AGENCIES 18 RESPONSIBLE FOR RECYCLING PROGRAMS; 19 (3) ONE MEMBER REPRESENTI NG GLASS MANUFACTURE RS OR A 20 GLASS MANUFACTURING TRADE ORGANIZATION; 21 (4) ONE MEMBER REPRESENTI NG ALUMINUM MANUFACT URERS OR 22 AN ALUMINUM MANUFACTURING TRADE ORGANIZATION; 23 (5) ONE MEMBER REPRESENTING PLASTIC MANUFACTURER S OR A 24 PLASTIC MANUFACTURING TRADE ORGANIZATION; 25 (6) ONE MEMBER REPRESENTING BEVERAGE COMPANIES; 26 (7) ONE MEMBER REPRESENTI NG PURCHASERS OF REC YCLED 27 CONTENT; 28 (8) ONE MEMBER REPRESENTING RETAILERS; 29 42 HOUSE BILL 331 (9) ONE MEMBER REPRESENTING RESTAURANTS OR OTHER 1 ON–PREMISES SELLERS; 2 (10) ONE MEMBER REPRESENTI NG REVERSE VENDING M ACHINE 3 BUSINESSES; 4 (11) ONE MEMBER REPRESENTI NG ACCOUNT –BASED BULK 5 PROCESSORS; 6 (12) ONE MEMBER REPRESENTI NG BUSINESSES INVOLV ED IN REUSE 7 AND REFILL SYSTEMS; 8 (13) AT LEAST ONE MEMBER R EPRESENTING AN ENVIR ONMENTAL 9 ADVOCACY ORGANIZATION; 10 (14) AT LEAST ONE MEMBER R EPRESENTING AN ENVIR ONMENTAL 11 JUSTICE ADVOCACY ORGANIZATION; AND 12 (15) AT LEAST TWO MEMBERS WHO ARE MEMBERS OF T HE GENERAL 13 PUBLIC AND RESIDE IN THE STATE. 14 (C) THE SECRETARY SHALL DESIGNATE TWO COCHAIRS FROM AMONG THE 15 MEMBERSHIP OF THE ADVISORY COUNCIL. 16 (D) THE DEPARTMENT SHALL PROV IDE STAFF FOR THE ADVISORY 17 COUNCIL. 18 (E) A MEMBER OF THE ADVISORY COUNCIL: 19 (1) MAY NOT RE CEIVE COMPENSATION A S A MEMBER OF THE 20 ADVISORY COUNCIL; BUT 21 (2) IS ENTITLED TO REIMBU RSEMENT FOR EXPENSES UNDER THE 22 STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET. 23 (F) THE ADVISORY COUNCIL SHALL MEET: 24 (1) AT LEAST QUARTERLY EACH YEAR; AND 25 (2) AS REQUESTED BY THE DEPARTMENT. 26 (G) THE ADVISORY COUNCIL SHALL: 27 HOUSE BILL 331 43 (1) ADVISE THE DEPARTMENT ON DETERMI NING WHETHER TO 1 APPROVE A BEVERAGE CONTAINER STEWARDSHIP PLAN; 2 (2) MAKE RECOMMENDATIONS TO THE DEPARTMENT ON THE 3 IMPLEMENTATION OF APPROVED BEVERAGE CONTAINER STEWARDSHIP PLANS; 4 (3) REVIEW AND ADVISE THE DEPARTMENT ON THE ANN UAL 5 REPORTS SUBMITTED UNDER § 9–1747 OF THIS SUBTITLE; AND 6 (4) ADVISE THE DEPARTMENT ON THE IMP LEMENTATION, 7 ADMINISTRATION, AND PERFORMANCE OF THE PROGRAM. 8 9–1754. 9 (A) ON OR BEFORE JUNE 1, 2027, THE DEPARTMENT SHALL ADOP T 10 REGULATIONS TO CARRY OUT THIS PART. 11 (B) THE DEPARTMENT MAY EXPAND THE TYPES OF BEVERAGE CONTAINERS 12 COVERED UNDER THE PROGRAM BY REGULATION IF, BASED ON ITS REVIEW UNDER 13 § 9–1752(3) OF THIS SUBTITLE , THE DEPARTMENT DETERMINES THERE ARE 14 CONVENIENT REDEMPTION OPTIONS FOR THOSE BEVERAGE CONTAINERS. 15 9–1755. 16 (A) EXCEPT AS PROVIDED IN SUBSECTIONS (C) AND (D) OF THIS SECTION, 17 THE PROVISIONS OF §§ 9–334 THROUGH 9–344 OF THIS TITLE APPLY TO ENFORCE 18 VIOLATIONS OF THIS PART. 19 (B) A PENALTY MAY NOT BE I MPOSED ON A PRODUCER FOR FAILING TO 20 PROPERLY REGISTER WITH THE DEPARTMENT UNDER § 9–1744 OF THIS SUBTITLE, 21 INCLUDING FAILING TO IDENTIFY EACH BRAND OF REDEEMABLE BEVERA GE 22 CONTAINER THAT THE PRODUCER INTENDS TO SELL , OFFER FOR SALE , OR 23 DISTRIBUTE IN THE STATE, UNLESS: 24 (1) THE DEPARTMENT FIRST ISSU ES A WRITTEN NOTICE OF THE 25 VIOLATION TO THE PRODUCER; AND 26 (2) THE PRODUCER DOES NOT REGISTER WITHIN 90 DAYS AFTER 27 RECEIVING THE WRITTEN NOTICE. 28 (C) (1) A PERSON MAY NOT REDEE M, ATTEMPT TO REDEEM , RECEIVE, 29 STORE, TRANSPORT, DISTRIBUTE, OR OTHERWISE FACILIT ATE OR AID IN THE 30 44 HOUSE BILL 331 REDEMPTION OF THE FOLLOWING MATERIALS WITH AN INTENT TO DEFRAUD: 1 (I) AN EMPTY REDEEMABLE BEVERAGE CONTAINER THAT WAS 2 SOLD IN ANOTHER STATE; 3 (II) AN EMPTY REDEEMABLE BEVERAGE CONTAINER THAT WAS 4 REJECTED FOR REDEMPTION; 5 (III) LINE BREAKAGE; 6 (IV) A PREVIOUSLY REDEEMED REDEEMABLE BEVERAGE 7 CONTAINER; OR 8 (V) ANOTHER INELIGIBLE MATERIAL. 9 (2) A PERSON MAY NOT DISPO SE OF A REDEEMED RED EEMABLE 10 BEVERAGE CONTAINER IN A LANDFILL OR AN INCINERATOR. 11 (3) THE DEPARTMENT SHALL ESTA BLISH ADMINISTRATIVE 12 PENALTIES FOR A VIOL ATION OF THIS SUBSEC TION THAT ARE BASED ON THE 13 NUMBER OF BEVERAGE CONTAINERS AND REFUND AMOUNTS INVOLVED. 14 (D) (1) BEGINNING JANUARY 1, 2032, IF THE BEVERAGE CONT AINER 15 STEWARDSHIP ORGANIZA TION HAS NOT MET THE REDEMPTION RATES 16 ESTABLISHED IN § 9–1740 OF THIS SUBTITLE FOR THE IMMEDIATELY PRECEDING 2 17 YEARS, THE DEPARTMENT SHALL ASSE SS A N ADMINISTRATIVE PEN ALTY ON THE 18 BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION. 19 (2) EACH YEAR THAT THE BE VERAGE CONTAINER STE WARDSHIP 20 ORGANIZATION DOES NOT MEET THE REDEMPTION RATES ESTABLISHED IN § 9–1740 21 OF THIS SUBTITLE IS A SEPARATE VIOLATION UNDER THIS SUBSECTION. 22 (3) AN ADMINISTRATIVE PEN ALTY ASSESSED UNDER THIS 23 SUBSECTION SHALL EQU AL THE TOTAL NUMBER OF REDEEMABLE BEVERA GE 24 CONTAINERS NEEDED TO BE REDEEMED TO MEET THE REDEMPTION RATES 25 ESTABLISHED IN § 9–1740 OF THIS SUBTITLE, MINUS THE NUMBER OF REDEEMABLE 26 BEVERAGE CONTAINERS ACTUALLY REDEEMED , MULTIPLIED BY THE RE FUND 27 VALUE IN EFFECT AT THE TIME THE VIOLATION OCCURRED. 28 (E) THE DEPARTMENT MAY ALTER THE ADMINISTRATIVE P ENALTIES 29 ASSESSED UNDER SUBSE CTIONS (C) AND (D) OF THIS SECTION AS N ECESSARY TO 30 ENSURE THAT THE PENA LTY AMOUNTS ASSESSED EXCEED THE COSTS OF 31 COMPLYING WITH THIS PART. 32 HOUSE BILL 331 45 (F) PENALTIES COLLECTED UNDER THIS SECTION SHALL BE: 1 (1) TRANSFERRED TO THE STATE RECYCLING TRUST FUND UNDER § 2 9–1707(F) OF THIS SUBTITLE; AND 3 (2) USED ONLY TO COVER THE DEPARTMENT’S COSTS OF PLANNING, 4 IMPLEMENTING, ADMINISTERING, MONITORING, ENFORCING, AND EVALUATING 5 THE PROGRAM. 6 9–1756. 7 ANY PERSON PARTICIPAT ING IN A BEVERAGE CO NTAINER STEWARDSHIP 8 PLAN IN ACCORDANCE W ITH THIS SUBTITLE IS IMMUNE FROM LIABILIT Y UNDER 9 STATE LAWS CONCERNING ANTITRUST AND RESTRA INT OF TRADE FOR 10 COOPERATIVE ACTIVITI ES ASSOCIATED WITH T HE COLLECTION , TRANSPORT, 11 PROCESSING, RECYCLING, REUSE, AND MANAGEMENT OF EM PTY REDEEMABLE 12 BEVERAGE CONTAINERS. 13 SECTION 2. AND BE IT FURTHER ENACTED, That: 14 (a) The Department of the Environment shall consult with counties and 15 municipalities to assess the impacts of the Maryland Beverage Container Recycling Refund 16 and Litter Reduction Program (Program), as enacted by Section 1 of this Act, on local 17 beverage container litter and recycling operations and county and municipal budgets. 18 (b) On or before June 1, 2027, the Department of the Environment shall report to 19 the General Assembly, in accordance with § 2 –1257 of the State Government Article, its 20 recommendations on ways to offset adverse impacts and enhance positive impacts of the 21 Program on beverage container litter, recycling rates, and county and municipal budgets. 22 SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect June 23 1, 2026. 24