Environment - Statewide Recycling Needs Assessment and Producer Responsibility for Packaging Materials

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW. [Brackets] indicate matter deleted from existing law. *sb0222* SENATE BILL 222 M3 3lr0665 HB 307/22 – ENT & ECM CF 3lr0666 By: Senators Augustine, Elfreth, and Hettleman Introduced and read first time: January 23, 2023 Assigned to: Education, Energy, and the Environment A BILL ENTITLED AN ACT concerning 1 Environment – Reducing Packaging Materials – Producer Responsibility 2 FOR the purpose of requiring certain producers of packaging materials to individually or 3 as part of a producer responsibility organization submit a certain packaging 4 materials producer responsibility plan to the Department of the Environment for 5 review and approval on or bef ore a certain date and in accordance with certain 6 requirements; prohibiting, on or after a certain date, a producer of certain packaging 7 materials from selling, offering for sale, distributing, or importing certain packaging 8 materials unless the producer, individually or as part of a producer responsibility 9 organization, has an approved producer responsibility plan on file with the 10 Department; requiring a producer responsibility organization to pay certain costs to 11 the Department; requiring a producer respo nsibility organization to implement a 12 producer responsibility plan within a certain amount of time after the Department 13 approves the producer responsibility plan; establishing a producer responsibility 14 plan advisory council; authorizing a local government to request reimbursement 15 from a certain producer that has an approved producer responsibility plan on file 16 with the Department for certain costs in a certain manner; requiring the Office of 17 Recycling in the Department to conduct certain statewide recycling needs 18 assessments in a certain manner and to submit certain reports on the results of the 19 assessments to the Governor and the General Assembly on or before certain dates; 20 and generally relating to producer responsibility for packaging materials. 21 BY repealing and reenacting, with amendments, 22 Article – Environment 23 Section 9–1702 and 9–1707(f) 24 Annotated Code of Maryland 25 (2014 Replacement Volume and 2022 Supplement) 26 BY adding to 27 Article – Environment 28 Section 9–1702.2; and 9–2501 through 9–2510 to be under the new subtitle “Subtitle 29 2 SENATE BILL 222 25. Producer Responsibility for Packaging Materials” 1 Annotated Code of Maryland 2 (2014 Replacement Volume and 2022 Supplement) 3 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 4 That the Laws of Maryland read as follows: 5 Article – Environment 6 9–1702. 7 (a) There is an Office of Recycling created within the Department. 8 (b) The Secretary shall appoint a Director and sufficient staff to perform the 9 functions of the Office. After July 1, 1989, the number of staff shall be as provided in the 10 budget. 11 (c) The Secretary may adopt regulations to carry out the provisions of this 12 subtitle. 13 (d) The Office shall: 14 (1) Assist the counties in developing an acceptable recycling plan required 15 under § 9–1703 of this subtitle and § 9 –505 of this title, including technical assistance to 16 the local governments; 17 (2) Coordinate the efforts of the State to facilitate the implementation of 18 the recycling goals at the county level; 19 (3) Review all recycling plans submitted as part of a county plan as 20 required under § 9 –505 of this title and advise the Secretary on the adequacy of the 21 recycling plan; 22 (4) Administer the Statewide Electronics Recycling Program under Part IV 23 of this subtitle; [and] 24 (5) Promote the develop ment of markets for recycled materials and 25 recycled products in the State in accordance with § 9–1702.1 of this subtitle; 26 (6) CONDUCT A STATEWIDE R ECYCLING NEEDS ASSES SMENT IN 27 ACCORDANCE WITH § 9–1702.2 OF THIS SUBTITLE; AND 28 (7) REVIEW AND APPROVE, IN CONSULTATION WITH THE PRODUCER 29 RESPONSIBILITY PLAN ADVISORY COUNCIL ESTABLISHED UNDER § 9–2505 OF THIS 30 TITLE, PRODUCER RESPONSIBILITY PLANS AND ANNUAL REPORTS SUBMITTED IN 31 ACCORDANCE WITH SUBTITLE 25 OF THIS TITLE. 32 SENATE BILL 222 3 (e) Beginning on January 1, 1990, and biannually thereafter, the Office shall, in 1 coordination with the Maryland Environmental Service, study and report to the Governor 2 and, subject to § 2–1257 of the State Government Article, the General Assembly on: 3 (1) The identification and location o f recycling centers, including an 4 analysis of existing recycling centers and the need to expand these facilities or construct 5 new recycling centers; 6 (2) Programs necessary to educate the public on the need to participate in 7 recycling efforts; 8 (3) The economics and financing of existing and proposed systems of waste 9 disposal and recycling; 10 (4) State procurement policies for the purchase of recycled materials; 11 (5) Programs necessary to reduce the amount of solid waste generated for 12 disposal by a State agency or unit; 13 (6) The liaison role with local governments, the federal government, and 14 the private sector; 15 (7) The percentage reduction in the amount of solid waste that has been 16 achieved by each county; and 17 (8) Economically feasible metho ds for the recycling of scrap automobile 18 tires, batteries, and white goods. 19 (f) (1) By December 1, 1988, the Office shall, in coordination with the 20 Maryland Environmental Service and the Governor’s Task Force on Solid Waste, make 21 recommendations to the General Assembly for the financing of a comprehensive system of 22 recycling at the State and local level, including funding for recycling centers, recycling 23 equipment, recycling education, and marketing strategies. 24 (2) After the financing recommendations are made under paragraph (1) of 25 this subsection, each county may submit to the Office and the Governor a detailed request 26 for funds necessary to assist in the development and implementation of a recycling plan 27 under guidelines developed by the Office. 28 (g) In studying feasible methods for the management and recycling of used tires 29 under subsection (e)(9) of this section, the Office of Recycling shall consult with the 30 appropriate industry, including representatives of: 31 (1) Tire manufacturers; 32 (2) Tire dealers; and 33 4 SENATE BILL 222 (3) Tire recyclers. 1 9–1702.2. 2 (A) IN THIS SECTION , “ADVISORY COUNCIL ” AND “PRODUCER 3 RESPONSIBILITY ORGANIZATION” HAVE THE MEANINGS STATED IN § 9–2501 OF THIS 4 TITLE. 5 (B) IN ACCORDANCE WITH SUBSECTION (D) OF THIS SECTION AND TO CARRY 6 OUT THE REQUIREMENTS OF § 9–1702(D)(6) OF THIS SUBTITLE, THE OFFICE SHALL 7 CONDUCT A STATEWIDE RECYCLING NEEDS ASSESSMENT AT LEAST ONCE EVERY 10 8 YEARS OR AS RECOMMENDED BY THE ADVISORY COUNCIL THAT INCLUDES: 9 (1) AN EVALUATION OF THE CURRENT INFRASTRUCTURE AND 10 CAPACITY RELATED TO, NEED FOR, AND ASSOCIATED COSTS OF: 11 (I) RECYCLING ACCESS AND AVAILABILITY; 12 (II) COLLECTING AND HAULIN G RECYCLABLE OR 13 COMPOSTABLE MATERIALS IN THE STATE; 14 (III) PROCESSING RECYCLABLE OR COMPOSTABLE MATER IALS 15 IN THE STATE; 16 (IV) TAKING ADVANTAGE OF F AVORABLE MARKET CONDITIONS 17 OR OTHER OPPORTUNITIES FOR INCREASING RECYCLING OR ORGANICS RECYCLING 18 IN THE STATE; 19 (V) IN COORDINATION WITH LOCAL GOVERNMENTS, CONSUMER 20 EDUCATION REGARDING RECYCLING, ORGANICS RECYCLING, AND CONTAMINATION 21 REDUCTION; 22 (VI) REUSE INFRASTRUCTURE; AND 23 (VII) ORGANICS RECYCLING INFRASTRUCTURE; 24 (2) AN EVALUATION OF COMM INGLED RECYCLING PRO CESSING 25 FACILITY WORKER CONDITIONS, WAGES, AND BENEFITS; 26 (3) AN EVALUATION OF OPPORTUNITIES IN THE RECYCLING SYSTEM 27 FOR WOMEN AND MINORITY INDIVIDUALS; 28 SENATE BILL 222 5 (4) AN EVALUATION OF LOCAL GOVERNMENT REQUIREMENTS 1 RELATED TO MULTIFAMILY RECYCLING SERVICES AND THEIR IMPLEMENTATION; 2 (5) THE SUFFI CIENCY OF RECYCLING EDUCATION PROGRAMS 3 RELATIVE TO DESIRED EQUITY OUTCOMES; 4 (6) AN EVALUATION OF OPPORTUNITIES IN THE RECYCLING SYSTEM 5 FOR BUSINESSES IN THE STATE; AND 6 (7) RECOMMENDATIONS FOR I MPROVING EQUITY AND EQUITABLE 7 OUTCOMES FOR UNDERSERVED POPULATIONS IN THE STATE’S RECYCLING SYSTEM, 8 INCLUDING RECOMMENDA TIONS FOR NEW RESPON SIBILITIES OF PRODUC ER 9 RESPONSIBILITY ORGANIZATIONS AND RECOMMENDATIONS FOR FUNDING THE NEW 10 RESPONSIBILITIES. 11 (C) ON OR BEFORE APRIL 1, 2025, AND EACH APRIL 1 EVERY 10 YEARS 12 THEREAFTER OR AS RECOMMENDED BY THE ADVISORY COUNCIL , THE OFFICE 13 SHALL REPORT ON THE RESULTS OF THE MOST RECENT ASSESSMENT CONDUCTED 14 UNDER THIS SECTION TO THE GOVERNOR AND, IN ACCORDANCE WITH § 2–1257 OF 15 THE STATE GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY. 16 (D) IN CONDUCTING THE ASS ESSMENT REQUIRED UND ER THIS SECTION , 17 THE OFFICE SHALL CONSULT WITH PRODUCER RESPON SIBILITY ORGANIZATIONS, 18 THE PRODUCER RESPONSIBILITY PLAN ADVISORY COUNCIL ESTABLISHED UNDER § 19 9–2505 OF THIS TITLE , APPROPRIATE LOCAL GO VERNMENTAL ENTITIES , AND 20 REGIONAL SOLID WASTE ORGANIZATIONS IN THE STATE. 21 (E) THE OFFICE SHALL ESTABLIS H AND COLLECT A FEE TO BE PAID BY 22 PRODUCER RESPONSIBILITY ORGANIZATIONS TO COVER THE COSTS ASSO CIATED 23 WITH CONDUCTING THE ASSESSMENTS REQUIRED UNDER THIS SECTION. 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 (iii) The covered electronic device manufacturer registration fee 31 collected under § 9–1728 of this subtitle; 32 6 SENATE BILL 222 (IV) ANY FEES COLLECTED FR OM PRODUCER RESPONSI BILITY 1 ORGANIZATIONS UNDER § 9–1702.2 OF THIS SUBTITLE OR SUBTITLE 25 OF THIS 2 TITLE; 3 [(iv)] (V) All fines and penalties collected under this subtitle AND § 4 9–2510 OF THIS TITLE; 5 [(v)] (VI) Money appropriated in the State budget to the Fund; and 6 [(vi)] (VII) Any other money from any other source accepted for the 7 benefit of the Fund. 8 (3) The Secretary shall administer the Fund. 9 (4) The Treasurer shall hold the Fund separately and the Comptroller shall 10 account for the Fund. 11 (5) At the end of each fiscal year, any unspent or unencumbered balance in 12 the Fund that exceeds $2,000,000 shall revert to the General Fund of the State in 13 accordance with § 7–302 of the State Finance and Procurement Article. 14 (6) In accordance with the State budget, the Fund shall be used only: 15 (i) To provide grants to the counties to be used by the coun ties to 16 develop and implement local recycling plans; 17 (ii) To provide grants to counties that have addressed methods for 18 the separate collection and recycling of covered electronic devices in accordance with § 19 9–1703(c)(1) of this subtitle; 20 (iii) To provide grants to municipalities to be used by the 21 municipalities to implement local covered electronic device recycling programs; [and] 22 (IV) IN ACCORDANCE WITH PA RAGRAPH (7) OF THIS 23 SUBSECTION, TO COVER THE COSTS OF T HE STATEWIDE RECYCLI NG NEEDS 24 ASSESSMENT CONDUCTED UNDER § 9–1702.2 OF THIS SUBTITLE; 25 (V) IN ACCORDANCE WITH PA RAGRAPH (7) OF THIS 26 SUBSECTION, TO COVER THE COSTS OF PRODUCER RESPONSIBILITY PLAN REVIEW, 27 OVERSIGHT, AND ENFORCEMENT UNDER SUBTITLE 25 OF THIS TITLE; AND 28 [(iv)] (VI) To carry out the purposes of the land management 29 administration. 30 SENATE BILL 222 7 (7) (I) THERE SHALL BE A SEPARATE ACCOUNT WITHIN THE FUND. 1 (II) THE SEPARATE ACCOUNT SHALL CONSIST OF: 2 1. ANY FEES COLLECTED FR OM PRODUCER 3 RESPONSIBILITY ORGAN IZATIONS UNDER § 9–1702.2 OF THIS SUBTITLE OR 4 SUBTITLE 25 OF THIS TITLE; AND 5 2. ALL FINES AND PENALTI ES COLLECTED UNDER § 6 9–2510 OF THIS TITLE. 7 (III) THE SEPARATE ACCOUNT SHALL BE USED ONLY FOR THE 8 COSTS OF THE STATEWI DE RECYCLING NEEDS A SSESSMENT CONDUCTED UNDER § 9 9–1702.2 OF THIS SUBTITLE AND PRODUCER RESPONSIBIL ITY PLAN REVIEW , 10 OVERSIGHT, AND ENFORCEMENT UNDER SUBTITLE 25 OF THIS TITLE. 11 [(7)] (8) (i) The Treasurer shall invest the money in the Fund in the 12 same manner as other State money may be invested. 13 (ii) Any investment earnings of the Fund shall be credited to the 14 General Fund of the State. 15 SUBTITLE 25. PRODUCER RESPONSIBILITY FOR PACKAGING MATERIALS. 16 9–2501. 17 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 18 INDICATED. 19 (B) “ADVISORY COUNCIL ” MEANS THE PRODUCER R ESPONSIBILITY PLAN 20 ADVISORY COUNCIL ESTABLISHED UNDER § 9–2505 OF THIS SUBTITLE. 21 (C) “BEVERAGE CONTAINER ” MEANS A PREPACKAGED BEVERAGE 22 CONTAINER: 23 (1) MADE OF ANY MATERIAL , INCLUDING GLASS, PLASTIC, METAL, 24 CARTON, POUCH, OR ASEPTIC PACKAGING , SUCH AS A DRINK BOX , OR OF 25 MULTIMATERIALS; AND 26 (2) THE VOLUME OF WHICH IS NOT MORE THAN 5 LITERS. 27 (D) “LOCAL GOVERNMENT” MEANS: 28 (1) A COUNTY; OR 29 8 SENATE BILL 222 (2) A MUNICIPALITY. 1 (E) (1) “PACKAGING MATERIALS ” MEANS, REGARDLESS OF 2 RECYCLABILITY, ANY PART OF A PACKAG E OR CONTAINER , INCLUDING MATERIAL 3 THAT IS USED FOR THE CONTAINMENT, PROTECTION, HANDLING, DELIVERY, AND 4 PRESENTATION OF A PR ODUCT THAT IS SOLD , OFFERED FOR SALE, IMPORTED, OR 5 DISTRIBUTED IN THE STATE. 6 (2) “PACKAGING MATERIALS” INCLUDES: 7 (I) PRIMARY, SECONDARY, AND TERTIARY PACKAGI NG 8 INTENDED FOR THE CONSUMER MARKET; 9 (II) SERVICE PACKAGING DES IGNED AND INTENDED T O BE 10 FILLED AT THE POINT OF SALE, INCLUDING: 11 1. CARRY–OUT BAGS; 12 2. BULK GOODS BAGS; AND 13 3. TAKE–OUT AND HOME DELIVER Y FOOD SERVICE 14 PACKAGING; AND 15 (III) BEVERAGE CONTAINERS. 16 (3) “PACKAGING MATERIALS ” DOES NOT INCLUDE ANY PART OF A 17 PACKAGE OR CONTAINER THAT IS SOLD OR SUPPLIED IN CONNECTION WITH: 18 (I) A PESTICIDE PRODUCT RE GULATED BY THE FEDERAL 19 INSECTICIDE, FUNGICIDE, AND RODENTICIDE ACT UNDER 7 U.S.C. § 136 ET SEQ. 20 OR ANY OTHER APPLICABLE FEDERAL LAW, RULE, OR REGULATION; 21 (II) A FEDERALLY REGULATED DRUG, MEDICAL DEVICE , 22 BIOLOGIC, OR DIAGNOSTIC, INCLUDING ITEMS INTENDED FOR ANIMALS; OR 23 (III) A MEDICAL PRODUCT THAT IS REQUIRED TO BE STERILE OR 24 ENCLOSED IN PACKAGIN G WITH TAMPER –RESISTANT SEALS TO P ROTECT PUBLIC 25 HEALTH, INCLUDING MEDICAL PRODUCTS INTENDED FOR ANIMALS. 26 (F) (1) “PRODUCER” MEANS A PERSON THAT IS RESPONSIBLE FOR 27 COMPLYING WITH THIS SUBTITLE UNDER § 9–2503 OF THIS SUBTITLE. 28 SENATE BILL 222 9 (2) “PRODUCER” DOES NOT INCLUDE: 1 (I) A LOCAL GOVERNMENT; 2 (II) A NONPROFIT CHARITABLE ORGANIZATION; OR 3 (III) AN ENTITY THAT MANUFA CTURES A DRUG OR DEVICE 4 AUTHORIZED FOR SALE BY THE U.S. FOOD AND DRUG ADMINISTRATION UNDER THE 5 FEDERAL FOOD, DRUG, AND COSMETIC ACT. 6 (G) “PRODUCER RESPONSIBILITY ORGANIZATION” MEANS: 7 (1) A PRODUCER THAT INDIVI DUALLY SUBMITS A PRO DUCER 8 RESPONSIBILITY PLAN TO THE DEPARTMENT UNDER § 9–2504 OF THIS SUBTITLE; 9 OR 10 (2) A NONPROFIT ORGANIZATION THAT IS: 11 (I) EXEMPT FROM TAXATION UNDER § 501(C)(3) OF THE 12 INTERNAL REVENUE CODE; AND 13 (II) CREATED BY A GROUP OF PRODUCERS TO IMPLEME NT A 14 PRODUCER RESPONSIBIL ITY PLAN IN ACCORDANCE WITH § 9–2504(A) OF THIS 15 SUBTITLE. 16 (H) “PRODUCER RESPONSIBILITY PLAN” MEANS A PACKAGING MATERIALS 17 PRODUCER RESPONSIBIL ITY PLAN SUBMITTED T O THE DEPARTMENT BY A 18 PRODUCER OR PRODUCER RESPONSIBILITY ORGANIZATION IN ACCORDANCE WITH 19 § 9–2504 OF THIS SUBTITLE. 20 9–2502. 21 IT IS THE INTENT OF THE GENERAL ASSEMBLY THAT THIS SUBTITLE PROVIDE 22 A FRAMEWORK FOR: 23 (1) MODERNIZING AND IMPROVING WASTE AND RECYCLING SYSTEMS 24 IN THE STATE, INCLUDING BY FACILITATING: 25 (I) THE IMPROVEMENT OF REUSE, ORGANICS RECYCLING, AND 26 RECYCLING; 27 (II) THE IMPROVEMENT OF RECYCLING MARKETS; 28 10 SENATE BILL 222 (III) THE REDUCTION OF WASTE; AND 1 (IV) AN INCREASE IN RECYCLING RATES; AND 2 (2) REIMBURSING LOCAL GOV ERNMENTS FOR COSTS A SSOCIATED 3 WITH TRANSPORTING, COLLECTING, AND PROCESSING PACKAGING MATERIALS. 4 9–2503. 5 (A) (1) (I) THIS PARAGRAPH APPLIE S TO ITEMS SOLD IN P ACKAGING 6 MATERIALS AT A PHYSICAL RETAIL LOCATION IN THE STATE. 7 (II) IF THE ITEM IS SOLD U NDER THE MANUFACTURE R’S OWN 8 BRAND OR IS SOLD IN PACKAGING MATERIALS THAT LACK IDENTIFICA TION OF A 9 BRAND, THE PRODUCER OF THE PACKAGING MATERIALS IS THE PERSON THAT 10 MANUFACTURES THE ITEM. 11 (III) IF THE ITEM IS MANUFACTURED BY A PERSON OTHER THAN 12 THE BRAND OWNER, THE PRODUCER OF THE PACKAGING MATERIALS IS THE PERSON 13 THAT IS THE LICENSEE OF A BRAND OR TRADEMARK UNDER WHICH AN ITEM IS SOLD, 14 OFFERED FOR SALE , OR DISTRIBUTED IN TH E STATE, WHETHER OR NOT THE 15 TRADEMARK IS REGISTERED IN THE STATE. 16 (IV) IF THERE IS NO PERSON DESCRIBED IN SUBPARA GRAPHS 17 (II) OR (III) OF THIS PARAGRAPH LO CATED WITHIN THE UNITED STATES, THE 18 PRODUCER OF THE PACK AGING MATERIALS IS T HE PERSON THAT IMPOR TS THE 19 ITEM INTO THE UNITED STATES FOR USE IN A C OMMERCIAL ENTERPRISE THAT 20 SELLS, OFFERS FOR SALE, OR DISTRIBUTES THE ITEM IN THE STATE. 21 (2) (I) THIS PARAGRAPH APPLIE S TO ITEMS SOLD OR 22 DISTRIBUTED IN PACKAGING MATERIALS IN THE STATE THROUGH REMOTE SALE OR 23 DISTRIBUTION. 24 (II) THE PRODUCER OF THE P ACKAGING MATERIALS U SED TO 25 DIRECTLY PROTECT OR CONTAIN THE ITEM IS THE SAME AS THE PRODUCER 26 ESTABLISHED UNDER PARAGRAPH (1) OF THIS SUBSECTION. 27 (III) THE PRODUCER OF THE P ACKAGING MATERIALS U SED TO 28 SHIP THE ITEM TO A C ONSUMER IS THE PERSO N THAT PACKAGES AND SHIPS THE 29 ITEM TO THE CONSUMER. 30 (IV) FOR ANY PACKAGING MAT ERIALS NOT IDENTIFIE D UNDER 31 SENATE BILL 222 11 SUBPARAGRAPHS (II) AND (III) OF THIS PARAGRAPH , THE PRODUCER OF THE 1 PACKAGING MATERIALS IS THE PERSON THAT F IRST DISTRIBUTES THE PACKAGED 2 ITEM IN THE STATE. 3 (B) THIS SUBTITLE DOES NOT APPLY TO A PERSON THAT: 4 (1) (I) GENERATED LESS THAN $5,000,000 IN GROSS REVENUE 5 DURING THE IMMEDIATELY PRECEDING CALENDAR YEAR; 6 (II) SOLD, OFFERED FOR SALE, OR DISTRIBUTED FOR S ALE IN 7 THE STATE DURING THE IMME DIATELY PRECEDING CALENDAR YEAR LESS THA N 1 8 METRIC TON OF PACKAGING MATERIALS; 9 (III) 1. OWNS OR OPERATES A RESTAURANT, FOOD CART, OR 10 SIMILAR ESTABLISHMENT THAT: 11 A. IS HEADQUARTERED IN THE STATE; AND 12 B. PRIMARILY SELLS TO MEMBERS OF THE PUBLIC FOOD 13 THAT IS GENERALLY INTENDED TO BE CONSUMED IMMEDIATELY AND WITHOUT THE 14 NEED FOR FURTHER PREPARATION, EITHER ON OR OFF THE PREMISES; AND 15 2. IS NOT A PRODUCER OF FOOD SERVICEWARE; 16 (IV) OWNS OR OPERATES A SI NGLE RETAIL SALES 17 ESTABLISHMENT THAT: 18 1. HAS NO ONLINE SALES; AND 19 2. IS NOT SUPPLIED OR OPERATED AS PART OF A 20 FRANCHISE OR A CHAIN; OR 21 (V) 1. IS LICENSED UNDER TITLE 2 OF THE ALCOHOLIC 22 BEVERAGES ARTICLE; AND 23 2. GENERATED LESS THAN $10,000,000 IN GROSS 24 REVENUE DURING THE IMMEDIATELY PRECEDING CALENDAR YEAR; AND 25 (2) ON R EQUEST BY THE DEPARTMENT, PROVIDES TO THE 26 DEPARTMENT SUFFICIENT INFORMATION TO DEMONSTRATE THAT THE PRODUCER 27 MEETS THE CONDITIONS OF THIS SECTION. 28 (C) THIS SUBTITLE DOES NOT AFFECT THE AUTHORITY OF THE STATE OR A 29 12 SENATE BILL 222 LOCAL JURISDICTION T O REGULATE THE SALE OR USE OF ANY PACKAGI NG 1 MATERIAL. 2 (D) THIS SUBTITLE DOES NO T PROHIBIT A PRODUCE R RESPONSIBILITY 3 ORGANIZATION FROM ES TABLISHING A DEPOSIT –RETURN SYSTEM AS ONE 4 STRATEGY FOR INCREAS ING THE CAPTURE AND RECYCLING OF BEVERAG E 5 CONTAINERS OR OTHER PACKAGING MATERIALS. 6 9–2504. 7 (A) (1) (I) BEGINNING JULY 1, 2024, AND EACH YEAR THEREAFTER, A 8 PRODUCER RESPONSIBIL ITY ORGANIZATION SHA LL FILE A REGISTRATI ON FORM 9 WITH THE DEPARTMENT. 10 (II) THE REGISTRATION FORM SHALL INCLUDE: 11 1. A LIST OF THE RESPONSI BLE PARTIES 12 PARTICIPATING IN THE PRODUCER RESPONSIBILITY ORGANIZATION; 13 2. A LIST OF THE BRANDS OF EACH RESPONSIBLE PARTY 14 PARTICIPATING IN THE PRODUCER RESPONSIBILITY ORGANIZATION; 15 3. A LIST OF THE COVERED MATERIALS OF EACH 16 RESPONSIBLE PARTY PA RTICIPATING IN THE PRODUC ER RESPONSIBILITY 17 ORGANIZATION; AND 18 4. THE NAME , ADDRESS, AND CONTACT INFORMAT ION 19 OF A PERSON RESPONSIBLE FOR ENSU RING THE PRODUCER RE SPONSIBILITY 20 ORGANIZATION’S AND THE MEMBER RESPONSIBLE P ARTIES’ COMPLIANCE WITH 21 THIS SUBTITLE. 22 (III) AT THE TIME OF FILING THE REGISTRATION FOR M, A 23 PRODUCER RESPONSIBILITY ORGANIZATION SHA LL PAY TO THE DEPARTMENT AN 24 ANNUAL REGISTRATION FEE TO COVER THE COS TS OF RECORD KEEPING, NOT TO 25 EXCEED $1,000. 26 (IV) AT THE TIME OF THE IN ITIAL SUBMISSION OF THE 27 REGISTRATION FORM BY A PRODUCER RESPONSIB ILITY ORGANIZATION , THE 28 ORGANIZATION SHALL HAVE 60 DAYS TO PAY TO THE DEPARTMENT THE ESTIMATED 29 COST OF CONDUCTING T HE INITIAL STATEWIDE RECYCLING NE EDS ASSESSMENT 30 REQUIRED UNDER § 9–1702.2 OF THIS TITLE. 31 (V) IF MORE THAN ONE PROD UCER RESPONSIBILITY 32 SENATE BILL 222 13 ORGANIZATION REGISTE RS WITH THE DEPARTMENT, THE DEPARTMENT SHALL 1 EQUALLY DIVIDE THE COST OF THE STATEWIDE RECYCLING NEEDS ASSESSMENT. 2 (2) (I) ON OR BEFORE APRIL 1, 2026, EACH PRODUCER SHALL , 3 INDIVIDUALLY OR AS P ART OF A PRODUCER RE SPONSIBILITY ORGANIZ ATION, 4 SUBMIT A PRODUCER RE SPONSIBILITY PLAN TO THE DEPARTMENT FOR REVIEW 5 AND APPROVAL. 6 (II) IF MORE THAN ONE PROD UCER RESPONSIBILITY 7 ORGANIZATION SUBMITS A PRODUCER R ESPONSIBILITY PLAN T O THE 8 DEPARTMENT: 9 1. THE PRODUCER RESPONSI BILITY ORGANIZATIONS 10 SHALL COORDINATE WIT H THE DEPARTMENT AND LOCAL GOVERNMENTS TO 11 ENSURE THAT: 12 A. RECYCLING SERVICES FOR RESIDENTS IN THE STATE 13 ARE PROVIDED IN A SEAMLESS MANNER; AND 14 B. PUBLIC OUTREACH , EDUCATION, AND 15 COMMUNICATION ARE PROVIDED IN A CONSISTENT MANNER; AND 16 2. THE PRODUCER RESPONSI BILITY ORGANIZATIONS 17 MAY CREATE A REPRESE NTATIVE ORGANIZATION TO REPRESENT ALL 18 PARTICIPATING PRODUCER RESPONSIBILITY ORGANIZATIONS TO IMPLEMENT THE 19 REQUIREMENTS OF THIS SUBTITLE. 20 (III) BEFORE SUBMITTING THE PLAN REQUIRED UNDER THIS 21 SUBSECTION TO THE DEPARTMENT, A PRODUCER OR PRODUC ER RESPONSIBILITY 22 ORGANIZATION SHALL: 23 1. CONSULT WITH THE ADVI SORY COUNCIL 24 ESTABLISHED UNDER § 9–2505 OF THIS SUBTITLE; AND 25 2. CONSIDER THE WRITTEN RECOMMENDATIONS OF 26 THE ADVISORY COUNCIL PROVIDED UNDER § 9–2505(G)(6) OF THIS SUBTITLE AND 27 RESPOND IN WRITING TO THE ADVISORY COUNCIL. 28 (3) ON OR AFTER A DATE ESTABLISHED I N REGULATIONS ADOPTED 29 BY THE DEPARTMENT UNDER § 9–2509 OF THIS SUBTITLE, A PRODUCER MAY NOT 30 SELL, OFFER FOR SALE , DISTRIBUTE, OR IMPORT FOR SALE O R DISTRIBUTION 31 PACKAGING MATERIALS FOR USE IN THE STATE UNLESS THE PROD UCER, 32 INDIVIDUALLY OR AS P ART OF A PRODUC ER RESPONSIBILITY ORGANIZATION, HAS 33 14 SENATE BILL 222 AN APPROVED PRODUCER RESPONSIBILITY PLAN ON FILE WITH THE DEPARTMENT. 1 (B) A PRODUCER RESPONSIBILITY PLAN SHALL: 2 (1) IDENTIFY THE PRODUCER S COVERED BY THE PLA N, INCLUDING 3 THE CONTACT INFORMAT ION FOR EACH PARTICI PATING PRODUCER AND THE 4 PRODUCER RESPONSIBILITY ORGANIZATION; 5 (2) IDENTIFY EACH BRAND O F PACKAGING MATERIALS COVERED BY 6 THE PLAN; 7 (3) REQUIRE, IN ACCORDANC E WITH SUBSECTION (C) OF THIS 8 SECTION, ACHIEVEMENT WITHIN 5 YEARS AFTER THE DATE ON WHICH THE FIRST 9 VERSION OF THE PLAN IS APPROVED AND ESTA BLISH THE FOLLOWING 10 PERFORMANCE GOALS, AS RELEVANT, FOR EACH PACKAGING MATERIAL TYPE: 11 (I) POSTCONSUMER RECYCLED CONTENT GOALS; 12 (II) RECYCLABILITY AND RECYCLING RATE GOALS; 13 (III) REUSE GOALS; 14 (IV) PACKAGING REDUCTION GOALS; 15 (V) COMPOST ACCESS OR COM POST RATE GOALS , IF 16 APPLICABLE AND TECHNOLOGICALLY AND ENVIRONMENTALLY FEASIBLE; 17 (VI) CONTAMINATION REDUCTION RATE GOALS; 18 (VII) GREENHOUSE GAS REDUCTION GOALS; AND 19 (VIII) ANY OTHER GOAL THAT REDUCES PACKAGING MA TERIAL 20 WASTE AND IS JUSTIFIED IN THE PLAN; 21 (4) REQUIRE EACH PARTICIP ATING PRODUCER TO RE DUCE ALL 22 PACKAGING MATERIAL W ASTE TO THE MAXIMUM EXTENT PRACT ICABLE, AND BY 23 NOT LESS THAN 25% FOR EACH PACKAGING MATERIAL TYPE, WITHIN 5 YEARS AFTER 24 THE DATE ON WHICH THE FIRST VERSION OF THE PLAN IS APPROVED; 25 (5) DESCRIBE, IN ACCORDANCE WITH S UBSECTION (D) OF THIS 26 SECTION, THE FINANCING METHOD THAT WILL BE USED TO IMPLEMENT THE PLAN; 27 (6) DESCRIBE HOW THE PERFORMANCE GOALS ESTABLISHED UNDER 28 SENATE BILL 222 15 ITEM (3) OF THIS SUBSECTION WILL BE MET OR EXCEEDED; 1 (7) DESCRIBE HOW STAKEHOLDER COMMENTS WERE CONSIDERED IN 2 THE DEVELOPMENT OF THE PLAN; 3 (8) DESCRIBE HOW STAFFING AND ADMINISTERING TH E 4 IMPLEMENTATION OF THE PLAN WILL BE HANDLED; 5 (9) DESCRIBE THE STRATEGY FOR REDUCING PACKAGI NG 6 MATERIALS IN THE STATE, INCLUDING HOW PRODUCERS PARTICIPATING IN A PLAN 7 WILL WORK TOGETHER T O REDUCE PACKAGING T HROUGH PRODUCT DESIGN A ND 8 PROGRAM INNOVATIONS; 9 (10) DESCRIBE THE ACTIONS TAKEN OR THAT WILL B E TAKEN FOR 10 PUBLIC OUTREACH , EDUCATION, AND COMMUNICATION , TAKING INTO ACCOUNT 11 THAT PUBLIC OUTREACH, EDUCATION, AND COMMUNICATION SHALL: 12 (I) PROMOTE THE RESPON SIBLE END–OF–LIFE MANAGEMENT 13 OF PACKAGING MATERIALS; 14 (II) PROVIDE INFORMATION O N HOW TO PREVENT LIT TER OF 15 PACKAGING MATERIALS; 16 (III) PROVIDE RECYCLING AND ORGANICS RECYCLING 17 INSTRUCTIONS THAT ARE, TO THE EXTENT PRACTICABLE: 18 1. CONSISTENT STATE WIDE, TAKING INTO ACCOUNT 19 DIFFERENCES AMONG LOCAL LAWS AND PROCESSING CAPABILITIES; 20 2. EASY TO UNDERSTAND; AND 21 3. EASILY ACCESSIBLE; AND 22 (IV) PROVIDE FOR OUTREACH AND EDUCATION THAT ARE: 23 1. DESIGNED TO ACHIEVE PACKAGING MATERIALS 24 MANAGEMENT GOALS AND REQU IREMENTS, INCLUDING THE PREVEN TION OF 25 CONTAMINATION OF PACKAGING MATERIALS; 26 2. COORDINATED ACROSS PR OGRAMS TO AVOID 27 CONFUSION FOR CONSUMERS; AND 28 3. DEVELOPED IN CONSULTA TION WITH LOCAL 29 16 SENATE BILL 222 GOVERNMENTS AND OTHER STAKEHOLDERS; 1 (11) DESCRIBE, IN ACCORDANCE WITH S UBSECTION (E) OF THIS 2 SECTION, THE AMOUNT OF FUNDIN G THAT WILL BE USED FOR IMPROVING REUSE, 3 ORGANICS RECYCLING, AND RECYCLING IN THE STATE; 4 (12) DESCRIBE THE PROCESS BY WHICH A LOCAL GOV ERNMENT MAY 5 REQUEST REIMBURSEMENT FOR CO STS ASSOCIATED WITH TRANSPORTING, 6 COLLECTING, AND PROCESSING PACKAGING MATERIALS THAT ARE IDENTIFIED IN 7 THE PLAN, INCLUDING: 8 (I) THE PROCESS BY WHICH THE REQUEST WILL BE REVIEWED; 9 (II) THE PROCESS FOR APPRO VING OR DENYING A RE QUEST 10 FOR REIMBURSEMENT; 11 (III) THE SCHEDULE FOR PROV IDING REIMBURSEMENT THAT 12 INCLUDES REIMBURSEMENT ON AT LEAST A QUARTERLY BASIS; AND 13 (IV) THE PROCESS FOR PROVI DING REIMBURSEMENT F OR 14 MULTIPLE BRANDS OF PACKAGING MATERIALS; 15 (13) (I) PROVIDE THE WRITTEN RECOMMENDATI ONS FROM THE 16 ADVISORY COUNCIL PROVIDED UNDER § 9–2505(G)(6) OF THIS SUBTITLE AND THE 17 PRODUCER RESPONSIBIL ITY ORGANIZATION ’S WRITTEN RESPONSE T O THE 18 ADVISORY COUNCIL; AND 19 (II) DESCRIBE HOW THE WRIT TEN RECOMMENDATIONS FROM 20 THE ADVISORY COUNCIL WER E CONSIDERED AND ADD RESSED IN THE 21 DEVELOPMENT OF THE PLAN; AND 22 (14) INCLUDE ANY OTHER INF ORMATION THAT IS REQ UIRED BY THE 23 DEPARTMENT. 24 (C) BASED ON THE RESULTS OF THE STATEWIDE REC YCLING NEEDS 25 ASSESSMENT CONDUCTED UNDER § 9–1702.2 OF THIS TITLE, THE DEPARTMENT, IN 26 COORDINATION WITH A PRODUCER RESPONSIBIL ITY ORGANIZATION , SHALL 27 ESTABLISH PERFORMANCE GOALS FOR EACH PACKAGING MATERIAL TYPE USING A 28 BASELINE YEAR THAT I S INFORMED BY THE ST ATEWIDE RECYCLING NE EDS 29 ASSESSMENT, INCLUDING ESTA BLISHING RECYCLING R ATE GOALS FOR EACH 30 PACKAGING MATERIAL TYPE, AT 5–, 10–, AND 15–YEAR INTERVALS. 31 (D) (1) THE FINANCING METHOD THAT WILL BE USED BY A PRODUCER 32 SENATE BILL 222 17 RESPONSIBILITY ORGAN IZATION TO IMPLEMENT A PRODUCER RESPONSIB ILITY 1 PLAN SHALL: 2 (I) PROVIDE THE METHOD FOR EITHER DIRECT INVESTMENTS 3 OR REIMBURSEMENTS FO R IMPROVING INFRASTR UCTURE FOR REUSE , ORGANICS 4 RECYCLING, AND RECYCLING IN ACC ORDANCE WITH SUBSECTION (B)(11) OF THIS 5 SECTION; 6 (II) PROVIDE A REASONABLE ANNUAL RATE PER TON OF 7 RECYCLED OR COMPOSTED PACK AGING MATERIALS FOR REIMBURSING LOCAL 8 GOVERNMENTS FOR COSTS ASSOCIATED WITH: 9 1. UP TO 50% OF THE COST OF COLLECTING PACKAGING 10 MATERIALS THAT ARE IDENTIFIED IN THE PLAN; 11 2. TRANSPORTING RECYCLAB LE OR COMPOSTABLE 12 PACKAGING MATERIALS TO A RECYCLING OR ORGANICS RECYCLING FACILITY; 13 3. PROCESSING PACKAGING MATERIALS, INCLUDING 14 REMOVING CONTAMINATION; AND 15 4. RECYCLING PACKAGING M ATERIALS THAT ARE 16 DIVERTED TO BE RECYCLED OR COMPOSTED IN THE STATE; 17 (III) ESTABLISH A FEE STRUCTURE FOR PARTIC IPATING 18 PRODUCERS THAT IS SET IN A MANNER TO COVER COSTS ASSOCIATED WITH: 19 1. IMPLEMENTING THE PLAN , INCLUDING THE 20 ADMINISTRATIVE COSTS OF A PRODUCER RESPONSIBILITY ORGANIZATION; 21 2. REIMBURSING LOCAL GOV ERNMENTS FOR COSTS I N 22 ACCORDANCE WITH ITEM (II) OF THIS PARAGRAPH; 23 3. THE ADMINISTRATION , REVIEW, OVERSIGHT, AND 24 ENFORCEMENT OF THE PLAN BY THE DEPARTMENT; 25 4. IMPLEMENTING THE STRA TEGY IN THE PLAN FOR 26 REDUCING PACKAGING M ATERIALS IN ACCORDAN CE WITH SUBSECTION (B)(9) OF 27 THIS SECTION; AND 28 5. IMPLEMENTING THE STRA TEGY IN THE PLAN FOR 29 IMPROVING REUSE , ORGANICS RECYCLING , AND RECYCLING IN THE STATE IN 30 ACCORDANCE WITH SUBSECTION (B)(11) OF THIS SECTION; 31 18 SENATE BILL 222 (IV) 1. DESCRIBE THE INCENTIV ES TO ENCOURAGE 1 PARTICIPATING PRO DUCERS TO ENGAGE IN WASTE REDUCTION AND RECYCLING 2 ACTIVITIES; AND 3 2. DESCRIBE THE DISINCEN TIVES TO DISCOURAGE 4 DESIGNS OR PRACTICES THAT INCREASE THE CO ST OF MANAGING PACKAGING 5 MATERIALS; 6 (V) BE EVALUATED BY AN INDEPENDENT FINANCIAL AUDITOR, 7 AS DESIGNATED BY THE DEPARTMENT, TO ENSURE THAT THE COSTS OF 8 IMPLEMENTING THE PLAN ARE COVERED; AND 9 (VI) MEET ANY OTHER REQUIR EMENT ESTABLISHED BY THE 10 DEPARTMENT BY REGULATION. 11 (2) THE REIMBURSEMENT RAT E ESTABLISHED UNDER PARAGRAPH 12 (1)(II) OF THIS SUBSECTION SHALL BE: 13 (I) BASED ON: 14 1. THE POPULATION SIZE OF A LOCAL JURISDICTION; 15 2. THE DISTANCE TO THE N EAREST RECYCLING OR 16 ORGANICS RECYCLING FACILITY; 17 3. THE COMMODITY VALUE O F RECYCLED PACKAGING 18 MATERIALS; AND 19 4. ANY SOCIOECONOMIC OR GEO GRAPHIC FACTOR, AS 20 DETERMINED BY THE DEPARTMENT; AND 21 (II) DISCOUNTED EQUIVALENT TO THE ESTIMATE D ANNUAL 22 VOLUME OF PACKAGING MATERIALS SOLD IN TH E STATE TO A PERSON THA T IS 23 EXEMPT FROM THE REQUIREMENTS OF THIS SUBTITLE UNDER § 9–2503(B) OF THIS 24 SUBTITLE. 25 (3) THE FEE STRUCTURE EST ABLISHED UNDER PARAG RAPH (1)(III) 26 OF THIS SUBSECTION SHALL BE VARIABLE BASED ON: 27 (I) COSTS ASSOCIATED WITH TRANSPORTING, COLLECTING, 28 AND PROCESSING PACKAGING MATERIALS; 29 SENATE BILL 222 19 (II) AN ECO–MODULATION OF FEES, INCLUDING ESTABLISHING: 1 1. A HIGHER FEE FOR PACKA GING MATERIALS WITH 2 LOW RECYCLABILITY OR RECYCLED CONTENT; AND 3 2. A DISCOUNTED FEE FOR P ACKAGING MATERIALS 4 WITH HIGH RECYCLABILITY OR RECYCLED CONTENT; AND 5 (III) ANY OTHER FACTOR , AS DETERMINED BY THE 6 DEPARTMENT. 7 (4) (I) A PRODUCER RESPONSIBIL ITY ORGANIZATION SHA LL 8 RETAIN ANY FEE COLLECTED UNDER THIS SUBSECTION IN ITS OWN ACCOUNT. 9 (II) THE DEPARTMENT MAY REQUEST AT ANY TIME AN AUDIT OF 10 THE FINANCIAL RECORDS OF A PRODUCER RESPONSIBILITY ORGANIZATION. 11 (E) THE FUNDING THAT WILL BE USED FOR IMPROVING REUSE, ORGANICS 12 RECYCLING, AND RECYCLING SHALL INCLUDE INVESTMENT I N MARKET 13 DEVELOPMENT AND EXIS TING AND FUTURE REUS E, ORGANICS RECYCLING , AND 14 RECYCLING INFRASTRUC TURE, GIVING PRIORITY TO INVESTMENT IN EXI STING 15 INFRASTRUCTURE, INCLUDING: 16 (1) INSTALLING OR UPGRADI NG EQUIPMENT TO IMPR OVE THE 17 SORTING OF PACKAGING MATERIALS AT EXISTIN G SORTING AND PROCES SING 18 FACILITIES; 19 (2) MITIGATING THE IMPACTS OF PACKAGING MATERIALS ON OTHER 20 COMMODITIES AT EXISTING SORTING AND PROCESSING FACILITIES; AND 21 (3) CAPITAL EXPENDITURES FOR NEW TECHNOLOGY , EQUIPMENT, 22 AND FACILITIES, BASED ON THE RESULTS OF THE STATEWIDE REC YCLING NEEDS 23 ASSESSMENT CONDUCTED UNDER § 9–1702.2 OF THIS TITLE. 24 (F) THE DEPARTMENT SHALL REVIEW: 25 (1) THE PRODUCER RESPONSI BILITY PLAN REQUIRED UNDER 26 SUBSECTION (A) OF THIS SECTION; AND 27 (2) THE WORK PRODUCT OF THE INDEPENDENT FINANCIAL AUDITOR 28 DESIGNATED BY THE DEPARTMENT TO EVALUATE THE FINANCING COMPONENT OF 29 THE PRODUCER RESP ONSIBILITY PLAN UNDE R SUBSECTION (D)(1)(V) OF THIS 30 SECTION. 31 20 SENATE BILL 222 (G) (1) WITHIN 120 DAYS AFTER RECEIVING A PROPOSED PRODUCER 1 RESPONSIBILITY PLAN , THE DEPARTMENT SHALL APPR OVE, APPROVE WITH 2 CONDITIONS, OR REJECT THE PLAN. 3 (2) IN MAKING A DETERMINA TION UNDER PARAGRAPH (1) OF THIS 4 SUBSECTION, THE DEPARTMENT SHALL CONSIDER WHETHER: 5 (I) THE PRODUCER RESPONSI BILITY PLAN COMPLIES WITH 6 THE REQUIREMENTS OF THIS SECTION , INCLUDING WHETHER TH E FINANCING 7 METHOD WILL COVER THE COSTS OF IMPLEMENTING THE PLAN; AND 8 (II) THE PRODUCER RESPONSIBILITY ORGANIZATION ENGAGED 9 SUFFICIENTLY WITH ST AKEHOLDERS, INCLUDING LOCAL GOVE RNMENTS, IN 10 DEVELOPING THE PLAN. 11 (3) NOT LATER THAN 60 DAYS AFTER THE DATE A PRODUCER 12 RESPONSIBILITY PLAN IS INITIALLY APPROVED UNDER THIS SECTION, A PRODUCER 13 RESPONSIBILITY ORGANIZATION SHALL PAY TO THE DEPARTMENT: 14 (I) THE DEPARTMENT’S COST OF REVIEWING THE PLAN; AND 15 (II) THE DEPARTMENT’S ESTIMATED COSTS OF 16 ADMINISTERING, OVERSEEING, AND ENFORCING THE PL AN BETWEEN THE INITI AL 17 DATE OF APPROVAL AND THE DATE OF THE INITIAL ANNUAL REPORT REQUIR ED 18 UNDER § 9–2507 OF THIS SUBTITLE. 19 (H) WITHIN 6 MONTHS AFTER THE DAT E A PRODUCER R ESPONSIBILITY 20 PLAN IS APPROVED UND ER THIS SECTION , A PRODUCER RESPONSIB ILITY 21 ORGANIZATION SHALL IMPLEMENT THE PLAN. 22 (I) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION 23 AND SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION, AN APPROVED PRODUCER 24 RESPONSIBILITY PLAN SHALL EXPIRE AFTER 5 YEARS. 25 (2) A PRODUCER RESPONSIBIL ITY PLAN MAY CONTINU E AFTER 5 26 YEARS IF IT IS RENEG OTIATED, RENEWED, OR AMENDED AND APPRO VED BY THE 27 DEPARTMENT IN ACCORDANCE WITH THIS SUBTITLE. 28 (3) THE DEPARTMENT MAY RESCIN D APPRO VAL OF A PRODUCER 29 RESPONSIBILITY PLAN AT ANY TIME FOR GOOD CAUSE. 30 (4) IF THE DEPARTMENT RESCINDS A N APPROVAL OF A PROD UCER 31 SENATE BILL 222 21 RESPONSIBILITY PLAN UNDER PARAGRAPH (3) OF THIS SUBSECTION , THE 1 PRODUCER, OR IF APPLICABLE , THE PRODUCER RESPONS IBILITY ORGANIZATION 2 MAY AMEND THE PLAN A ND SUBMIT IT TO THE DEPARTMENT FOR APPROV AL IN 3 ACCORDANCE WITH THIS SUBTITLE. 4 (5) IF, BASED ON THE ANNUAL REPORT SUBMITTED UNDER § 9–2507 5 OF THIS SUBTITLE, THE PERFORMANCE GOALS ESTABLISHED UNDER SUBSECTION 6 (B)(3) OF THIS SECTION HAVE NOT BEEN ACHIEVED, THE DEPARTMENT MAY: 7 (I) REQUIRE THAT A PRODUC ER RESPONSIBILITY 8 ORGANIZATION AMEND THE PRODUCER RESPONSIBILITY PLAN; AND 9 (II) IMPOSE AN ADMINISTRAT IVE PENALTY ON A PRODUCER 10 RESPONSIBILITY ORGAN IZATION IN ACCORDANCE WITH § 9–2510(C) OF THIS 11 SUBTITLE. 12 (6) IF THE DEPARTMENT REQUIRES A PRODUCER RESPONSIBILITY 13 ORGANIZATION TO AMEND THE PRODUCER RESPONS IBILITY PLAN UNDER 14 PARAGRAPH (5) OF THIS SUBSECTION , THE PRODUCER RESPONSI BILITY 15 ORGANIZATION MUST COVER THE COST OF THE DEPARTMENT’S REVIEW AND 16 SUPPLEMENTAL WORK ON THE PLAN. 17 9–2505. 18 (A) THERE IS A PRODUCER RESPONSIBILITY PLAN ADVISORY COUNCIL. 19 (B) THE PURPOSE OF THE AD VISORY COUNCIL IS TO PROVIDE ADVICE TO 20 THE DEPARTMENT AND PRODUC ER RESPONSIBILITY OR GANIZATIONS FOR 21 DRAFTING, AMENDING, AND IMPLEMENTING PRODUCER RESPONSIBILITY PLANS. 22 (C) (1) THE ADVISORY COUNCIL SHALL CONSIST OF A B ROAD RANGE OF 23 INTERESTED STAKEHOLDERS APPOINTED BY THE SECRETARY, INCLUDING: 24 (I) REPRESENTATIVES FROM THE FOLLOWING INDUSTRIES OR 25 ENTITIES IN THE STATE: 26 1. LOCAL GOVERNMENT AGEN CIES RESPONSIBLE FOR 27 RECYCLING PROGRAMS; 28 2. RECYCLABLES AND COMPO STABLE MATERIALS 29 COLLECTORS; 30 3. RECYCLING PROCESSORS; 31 22 SENATE BILL 222 4. ORGANICS RECYCLING PROCESSORS; 1 5. THE CONSUMER GOODS SECTOR; 2 6. RETAIL AND SMALL BUSINESSES; AND 3 7. MATERIAL–ORIENTED TRADE GROUPS; 4 (II) A REPRESENTATIVE FROM EACH PRODUCER 5 RESPONSIBILITY ORGANIZATION; 6 (III) REPRESENTATIVES OF AT LEAST TWO NONPROFIT 7 ORGANIZATIONS IN THE STATE WITH MISSIONS RELATED TO REDUCING WASTE; 8 (IV) AT LEAST ONE REPRESEN TATIVE OF AN ENVIRON MENTAL 9 ADVOCACY ORGANIZATION; 10 (V) AT LEAST ONE REPRESEN TATIVE OF AN ENVIRON MENTAL 11 JUSTICE ADVOCACY ORGANIZATION; AND 12 (VI) AT LEAST TWO MEMBERS OF THE PUBLIC WHO RE SIDE IN 13 THE STATE. 14 (2) IN APPOINTING MEMBERS TO THE ADVISORY COUN CIL, THE 15 SECRETARY SHALL , TO THE EXTENT PRACTI CABLE, ENSURE THAT THE 16 MEMBERSHIP OF THE ADVISORY COUNCIL REPRESENTS: 17 (I) ALL GEOGRAPHIC REGIONS OF THE STATE; 18 (II) LARGE AND SMALL COUNTIES AND MUNICIPALITIES; AND 19 (III) THE VARIABILITY IN HO W WASTE AND RECYCLAB LE AND 20 COMPOSTABLE MATERIALS ARE COLLECTED AND PROCESSED IN THE STATE. 21 (3) A REPRESENTATIVE FROM A PRODUCER RESPONSIB ILITY 22 ORGANIZATION MAY NOT SERVE AS A VOTING ME MBER OR AS COCHAIR OF THE 23 ADVISORY COUNCIL. 24 (D) FROM AMONG THE ADVISO RY COUNCIL MEMBERS , THE SECRETARY 25 SHALL DESIGNATE TWO REPRESENTATIVES TO SERVE AS COCHAIRS. 26 (E) A MEMBER OF THE ADVISORY COUNCIL: 27 SENATE BILL 222 23 (1) MAY NOT RECEIVE COMPE NSATION AS A MEMBER OF THE 1 ADVISORY COUNCIL; BUT 2 (2) IS ENTITLED TO REIMBU RSEMENT FOR EXPENSES UNDER THE 3 STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET. 4 (F) THE ADVISORY COUNCIL SHALL MEET AT LEAST QUARTERLY. 5 (G) THE ADVISORY COUNCIL SHALL: 6 (1) ON REQUEST BY A PRODU CER OR PRODUCER RESPONSI BILITY 7 ORGANIZATION, PROVIDE ADVICE REGARDING THE DRAFTING OR AMENDING OF A 8 PRODUCER RESPONSIBILITY PLAN REQUIRED UNDER § 9–2504 OF THIS SUBTITLE; 9 (2) RECEIVE AND REVIEW TH E PRODUCER RESPONSIB ILITY PLANS 10 SUBMITTED IN ACCORDANCE WITH § 9–2504 OF THIS SUBTITLE; 11 (3) RECEIVE AND REVIEW AN NUAL REPORTS SUBMITT ED IN 12 ACCORDANCE WITH § 9–2507 OF THIS SUBTITLE; 13 (4) MAKE RECOMMENDATIONS TO THE DEPARTMENT REGARDING 14 PRODUCER RESPONSIBILITY PLAN APPROVAL; 15 (5) MAKE RECOMMENDATIONS TO THE DEPARTMENT AND 16 PRODUCER RESPONSIBIL ITY ORGANIZATIONS RE GARDING PRODUCER 17 RESPONSIBILITY PLAN IMPLEMENTATION; AND 18 (6) PROVIDE WRITTEN RECOM MENDATIONS REGARDING THE 19 PRODUCER RESPONSIBILITY PLAN, INCLUDING ANY UPDATE OR REVISION TO AN 20 APPROVED PLAN, TO A PRODUCER RESPONSIB ILITY ORGANIZATION B EFORE THE 21 PRODUCER RESPONSIBIL ITY ORGANIZATION SUB MITS THE PLAN TO THE 22 DEPARTMENT. 23 9–2506. 24 (A) IN ACCORDANCE WITH TH E REQUIREMENTS OF A PRODUCER 25 RESPONSIBILITY ORGAN IZATION, AS ESTABLISHED IN AN APPROVED PRODUCER 26 RESPONSIBILITY PLAN ON FILE WITH THE DEPARTMENT, AND ANY OTHER 27 REQUIREMENT ADOPTED BY THE DEPARTMENT, A LOCAL GOVERNMENT M AY 28 REQUEST REIMBURSEMEN T FROM A PRODUCER RE SPONSIBILITY ORGANIZ ATION 29 FOR COSTS ASSOCIATED WITH COLLECTING , TRANSPORTING, AND PROCESSIN G 30 PACKAGING MATERIALS THAT ARE IDENTIFIED UNDER THE PLAN, INCLUDING COSTS 31 24 SENATE BILL 222 ASSOCIATED WITH RECY CLING SERVICES FOR PUBLIC PLACES AND PU BLIC 1 HOUSING. 2 (B) (1) IF MULTIPLE PRODUCER RESPONSIBILITY ORGAN IZATIONS 3 REGISTER APPROVED PRODUCER RESPONSIBILITY PLANS WITH THE DEPARTMENT 4 IN ACCORDANCE WITH T HIS SUBTITLE , THE PRODUCER RESPONS IBILITY 5 ORGANIZATIONS SHALL COORDINATE REIMBURSEMENT REQUESTED UNDER THIS 6 SECTION. 7 (2) MULTIPLE PRODUCER RES PONSIBILITY ORGANIZA TIONS MAY 8 ESTABLISH A THIRD –PARTY ENTITY TO COOR DINATE REIMBURSEMENT IN 9 ACCORDANCE WITH THIS SUBSECTION. 10 (C) THIS SECTION DOES NOT AUTHORIZE A LOCAL GO VERNMENT TO 11 REQUEST REIMBURSEMEN T FROM A PRODUCER RE SPONSIBILITY ORGANIZ ATION 12 FOR COSTS ASSOCIATED WITH COMPOSTING MATERIALS THAT ARE NOT PACKAGING 13 MATERIALS, INCLUDING FOOD WASTE AND OTHER ORGANIC MATERIALS. 14 9–2507. 15 (A) BEGINNING MARCH 1, 2027, EACH PRODUCER RESPON SIBILITY 16 ORGANIZATION THAT HAS AN APPROVED PRODUCER RESPONSIBILITY PLAN ON FILE 17 WITH THE DEPARTMENT SHALL REPORT ANNUALLY TO THE DEPARTMENT ON THE 18 PROGRESS TOWARD MEET ING PLAN REQUIREMENT S AND GOALS FOR THE 19 IMMEDIATELY PRECEDING CALENDAR YEAR. 20 (B) THE REPORT REQUIRED U NDER SUBSECTION (A) OF THIS SECTION 21 SHALL INCLUDE: 22 (1) A DETAILED DESCRIPTION OF THE REIMBURSEMENT METHODS 23 USED FOR COLLECTING , TRANSPORTING, AND PROCESSING PACKAGING 24 MATERIALS; 25 (2) (I) THE STATUS ON ACHIEVI NG THE PERFORMANCE GOALS 26 ESTABLISHED UNDER § 9–2504(B)(3) OF THIS SUBTITLE; AND 27 (II) IF THE GOALS HAVE NOT BEEN ACHIEVED, A DESCRIPTION 28 OF THE ACTIONS PROPOSED TO ACHIEVE THE GOALS; 29 (3) THE AMOUNT OF EACH PACKAGING MATERIAL TYPE COLLECTED 30 IN THE STATE, INCLUDING THE METHOD OF DISPOSITION OF EA CH PACKAGING 31 MATERIAL TYPE; 32 SENATE BILL 222 25 (4) (I) THE NUMBER OF BEVERAG E CONTAINERS SOLD IN THE 1 STATE AND THE NUMBER COLLECTED, BY MATERIAL TYPE; 2 (II) THE OVERALL REDEMPTION RATE AND EFFECTIVE RATE OF 3 RECYCLING OF BEVERAGE CONTAINERS BY MATE RIAL TYPE, AFTER SUBTRACTING 4 CONTAMINATION RATES, AND BY NUMBER OF UNITS AND WEIGHT; AND 5 (III) 1. A DESCRIPTION OF THE L OCATION OF COLLECTIO N 6 FACILITIES OR POINTS AND SORTING AND PROCESSING FACILITIES FOR BEVERAGE 7 CONTAINERS; 8 2. A DESCRIPTION OF ANY IMPROVEMENTS MADE IN THE 9 REPORTING YEAR TO INCREASE THE EASE AND CONVENIENCE FOR CONSUMERS TO 10 RETURN BEVERAGE CONTAINERS; 11 3. A DESCRIPTION OF UNDER SERVED AREAS AND 12 ACTIONS THAT WILL BE TAKEN BY THE PRODUCER RESPONSIBILITY ORGANIZATION 13 TO IMPROVE THE AVAIL ABILITY OF COLLECTIO N FACILITIES OR POIN TS IN 14 UNDERSERVED AREAS; AND 15 4. ANY OTHER INFORMATION ON BEVERAGE 16 CONTAINERS REQUIRED BY THE DEPARTMENT; 17 (5) THE TOTAL COST OF IMPLEMENTING THE PLAN, AS DETERMINED 18 BY AN INDEPENDENT FINANCIAL AUDITOR INCLUDING: 19 (I) A COPY OF THE WORK PRO DUCT OF THE INDEPEND ENT 20 FINANCIAL AUDITOR; AND 21 (II) FINANCIAL STATEMENTS DETAILING ALL PAYMEN TS 22 RECEIVED AND ISSUED BY THE PRODUCERS COVERED UNDER THE APPROVED PLAN; 23 (6) SAMPLES OF ALL EDUCAT IONAL MATERIALS PROV IDED TO 24 CONSUMERS OR OTHER ENTITIES; 25 (7) A DETAILED DESCRIPTION OF THE ACTIONS TAKEN AND AN 26 EVALUATION OF THE ME THODS USED TO DISSEM INATE EDUCATIONAL MATERIALS, 27 INCLUDING RECOMMENDATIONS, IF ANY, FOR HOW THE EDUCATIONAL COMPONENT 28 OF THE PLAN CAN BE IMPROVED; 29 (8) A DETAILED DESCRIPTION OF INVESTMENTS MADE IN MARKET 30 DEVELOPMENT AND FOR IMPROVING REUSE , ORGANICS RECYCLING , AND 31 RECYCLING INFRASTRUCTURE; 32 26 SENATE BILL 222 (9) PROOF OF A THIRD–PARTY AUDIT OF: 1 (I) THE REDUCTION IN PACKAGING REPORTED; 2 (II) THE DATA USED TO DETERMINE THE STATUS OF ACHIEVING 3 PERFORMANCE GOALS; 4 (III) THE AMOUNT OF EACH PA CKAGING MATERIAL TYP E 5 COLLECTED IN THE STATE; 6 (IV) THE NUMBER OF BEVERAG E CONTAINERS SOLD, 7 COLLECTED, AND REDEEMED IN THE STATE; AND 8 (V) THE OVERALL REDEMPTION RATE AND RECYCLING RATE OF 9 BEVERAGE CONTAINERS IN THE STATE; AND 10 (10) ANY OTHER INFORMATION AS REQUIRED BY THE DEPARTMENT. 11 (C) WHEN PROVIDING THE DEPARTMENT WITH THE A NNUAL REPORT 12 REQUIRED UNDER THIS SECTION, A PRODUCER RESPONSIB ILITY ORGANIZATION 13 SHALL PAY TO THE DEPARTMENT THE DEPARTMENT’S ESTIMATED COSTS OF 14 ADMINISTERING, OVERSEEING, AND ENFORCING THE PL AN FOR THE 1 YEAR 15 IMMEDIATELY FOLLOWING THE ANNUAL REPORT. 16 (D) FINANCIAL, PRODUCTION, OR SALES DATA REPORT ED TO THE 17 DEPARTMENT BY A PRODU CER RESPONSIBILITY O RGANIZATION SHALL BE KEPT 18 CONFIDENTIAL BY THE DEPARTMENT AND MAY NO T BE SUBJECT TO PUBL IC 19 INSPECTION. 20 (E) SUBJECT TO SUBSECTION (D) OF THIS SECTION, THE REPORT SHALL BE 21 POSTED ON THE WEBSIT E OF THE DEPARTMENT AND THE PR ODUCER 22 RESPONSIBILITY ORGANIZATION. 23 9–2508. 24 ANY PERSON PARTICIPAT ING IN A PRODUCER RE SPONSIBILITY PLAN IN 25 COMPLIANCE WITH THIS SUBTITLE IS IMMUNE FROM LIABILITY UNDER STATE LAW 26 RELATING TO ANTIT RUST AND RESTRAINT O F TRADE FOR ANY COOP ERATED 27 ACTIVITIES ARISING OUT OF THE RECYCLING, REUSE, AND DISPOSAL OF PACKAGING 28 MATERIALS. 29 9–2509. 30 SENATE BILL 222 27 THE DEPARTMENT SHALL ADOP T REGULATIONS TO CAR RY OUT THIS 1 SUBTITLE. 2 9–2510. 3 (A) EXCEPT AS OTHERWISE PROVIDED UNDER SUBSECTIONS (B) AND (C) OF 4 THIS SECTION, THE PROVISIONS OF §§ 9–334 THROUGH 9–344 OF THIS TITLE APPLY 5 TO ENFORCE VIOLATIONS OF: 6 (1) THIS SUBTITLE; 7 (2) ANY REGULATION ADOPTED UNDER THIS SUBTITLE; OR 8 (3) ANY ORDER ISSUED UNDER THIS SUBTITLE. 9 (B) (1) A PRODUCER OR PRODUCER RESPONSIBILITY ORGAN IZATION 10 THAT VIOLATES THIS SUBTITLE IS SUBJECT TO: 11 (I) FOR A FIRST VIOLATION, A CIVIL PENALTY OF $5,000; 12 (II) FOR A SECOND VIOLATIO N, A CIVIL PENALTY OF $10,000; 13 AND 14 (III) FOR A THIRD AND SUBSE QUENT VIOLATION , A CIVIL 15 PENALTY OF $20,000. 16 (2) A PENALTY MAY NOT BE I MPOSED ON A PRODUCER UNDER THIS 17 SECTION UNLESS: 18 (I) THE DEPARTMENT FIRST ISSU ES A WRITTEN NOTICE OF 19 VIOLATION TO THE PRODUCER; AND 20 (II) THE VIOLATION IS NOT CORRECTED WITHIN 60 DAYS OF 21 RECEIPT OF THE WRITTEN NOTICE. 22 (C) IF, BASED ON THE ANNUAL REPORT SUBMITTED UND ER § 9–2507 OF 23 THIS SUBTITLE, THE PERFORMANCE GOALS ESTABLISHED UNDER § 9–2504(B)(3) OF 24 THIS SUBTITLE HAVE N OT BEEN ACHIEVED , THE DEPARTMENT MAY IMPOSE AN 25 ADMINISTRATIVE PENALTY , NOT TO EXCEED $5,000, ON THE PRODUCER 26 RESPONSIBILITY ORGANIZATION. 27 (D) ANY PENALTY COLLECTED BY THE DEPARTMENT UNDER THIS SECTION 28 28 SENATE BILL 222 SHALL BE PAID INTO T HE STATE RECYCLING TRUST FUND ESTABLISHED UNDER § 1 9–1707 OF THIS TITLE. 2 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 3 October 1, 2023. 4