EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. Underlining indicates amendments to bill. Strike out indicates matter stricken from the bill by amendment or deleted from the law by amendment. *sb0876* SENATE BILL 876 M3, M2 2lr2943 CF HB 1201 By: Senator Bailey Senators Bailey and Carozza Introduced and read first time: February 7, 2022 Assigned to: Education, Health, and Environmental Affairs Committee Report: Favorable with amendments Senate action: Adopted Read second time: March 3, 2022 CHAPTER ______ AN ACT concerning 1 Water Pollution – Civil and Administrative Penalty Surcharge – Oyster 2 Repletion Fund 3 FOR the purpose of establishing a surcharge on civil and administrative penalties imposed 4 for certain violations that result in the discharge of pollutants into the Chesapeake 5 Bay or its tributaries; establishing the Oyster Repletion Fund as a special, 6 nonlapsing fund in the Department of Natural Resources; requiring the surcharges 7 to be deposited to the Fund and used to finance the repletion of natural oyster bars 8 in waters impacted by water pollution violations; and generally relating to water 9 pollution and oyster repletion. 10 BY repealing and reenacting, with amendments, 11 Article – Environment 12 Section 9–342 13 Annotated Code of Maryland 14 (2014 Replacement Volume and 2021 Supplement) 15 BY adding to 16 Article – Natural Resources 17 Section 4–209.1 18 Annotated Code of Maryland 19 (2018 Replacement Volume and 2021 Supplement) 20 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21 That the Laws of Maryland read as follows: 22 2 SENATE BILL 876 Article – Environment 1 9–342. 2 (a) (1) In addition to being subject to an injunctive action under this subtitle, 3 a person who violates any provision of this subtitle or of any rule, regulation, order, or 4 permit adopted or issued under this subtitle is liable to a civil penalty not exceeding 5 $10,000, to be collected in a civil action brought by the Department. 6 (2) Each day a violation occurs is a separate violation under this 7 subsection. 8 (b) (1) In addition to any other remedies available at law or in equity and after 9 an opportunity for a hearing which may be waived in writing by the person accused of a 10 violation, the Department may impose a penalty for violation of any provision of this 11 subtitle or any rule, regulation, order, or permit adopted or issued under this subtitle. 12 (2) The penalty imposed on a person under this subsection shall be: 13 (i) Up to $10,000 for each violation, but not exceeding $100,000 14 total; and 15 (ii) Assessed with consideration given to: 16 1. The willfulness of the violation, the extent to which the 17 existence of the violation was known to but uncorrected by the violator, and the extent to 18 which the violator exercised reasonable care; 19 2. Any actual harm to the environment or to human health, 20 including injury to or impairment of the use of the waters of this State or the natural 21 resources of this State; 22 3. The cost of cleanup and the cost of restoration of natural 23 resources; 24 4. The nature and degree of injury to or interference with 25 general welfare, health, and property; 26 5. The extent to which the location of the violation, including 27 location near waters of this State or areas of human population, creates the potential for 28 harm to the environment or to human health or safety; 29 6. The available technology and economic reasonableness of 30 controlling, reducing, or eliminating the violation; 31 SENATE BILL 876 3 7. The degree of hazard posed by the particular pollutant or 1 pollutants involved; and 2 8. The extent to which the current violation is part of a 3 recurrent pattern of the same or similar type of violation committed by the violator. 4 (3) Each day a violation occurs is a separate violation under this 5 subsection. 6 (4) Any penalty imposed under this subsection is payable to this State and 7 collectible in any manner provided at law for the collection of debts. 8 (5) If any person who is liable to pay a penalty imposed under this 9 subsection fails to pay it after demand, the amount, together with interest and any costs 10 that may accrue, shall be: 11 (i) A lien in favor of this State on any property, real or personal, of 12 the person; and 13 (ii) Recorded in the office of the clerk of court for the county in which 14 the property is located. 15 (6) Any penalty collected under this subsection shall be placed in a special 16 fund to be used for monitoring and surveillance by the Department to assure and maintain 17 an adequate record of any violations, including discharge of waste material and other 18 pollutants into the waters of this State or into the environment. 19 (C) (1) IN ADDITION TO A CIVI L OR ADMINISTRATIVE PENALTY IMPOSED 20 UNDER SUBSECTION (A) OR (B) OF THIS SECTION, IF A VIOLATION OF AN Y PROVISION 21 OF THIS SUBTITLE OR ANY RULE, REGULATION , ORDER, OR PERMIT ADOPTED OR 22 ISSUED UNDER THIS SU BTITLE, RESULTS IN THE DISCH ARGE OF POLLUTANTS T O 23 THE CHESAPEAKE BAY OR ITS TRIBUTARIE S, THE DEPARTMENT SHALL IMPO SE A 24 SURCHARGE ON THE PER SON RESPONSIBLE FOR THE VIOLATION. 25 (2) THE SURCHARGE SHALL BE EQUAL TO 25% OF THE TOTAL CIVIL 26 OR ADMINISTRATIVE PENALTY IMPOSED UNDE R SUBSECTION (A) OR (B) OF THIS 27 SECTION. 28 (3) ANY SURCHARGE COLLECT ED UNDER THIS SUBSEC TION SHALL 29 BE DEPOSITED INTO TH E OYSTER REPLETION FUND ESTABLISHED UNDE R § 4–209.1 30 OF THE NATURAL RESOURCES ARTICLE. 31 Article – Natural Resources 32 4–209.1. 33 4 SENATE BILL 876 (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 1 INDICATED. 2 (2) “COUNTY OYSTER COMMITT EE” MEANS A COMMITTEE 3 ESTABLISHED UNDER § 4–1106(B) OF THIS TITLE. 4 (3) “FUND” MEANS THE OYSTER REPLETION FUND. 5 (B) THERE IS AN OYSTER REPLETION FUND IN THE DEPARTMENT . 6 (C) THE PURPOSE OF THE FUND IS TO FINANCE TH E REPLETION OF 7 NATURAL OYSTER BARS IN WATERS IMPACTED B Y WATER POLLUTION VI OLATIONS. 8 (D) THE DEPARTMENT SHALL ADMINISTER THE FUND. 9 (E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 10 SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 11 (2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY 12 AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 13 (F) THE FUND CONSISTS OF : 14 (1) SURCHARGES ON CIVIL AND ADMINISTRATIVE PENALTIES 15 COLLECTED UNDER § 9–342(C) OF THE ENVIRONMENT ARTICLE; 16 (2) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; 17 AND 18 (3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 19 THE BENEFIT OF THE FUND. 20 (G) (1) THE FUND MAY BE USED ONLY FOR OYSTER REPLETION 21 PROJECTS CONDUCTED I N ACCORDANCE WITH TH IS SUBSECTION. 22 (2) TO THE EXTENT PRACTIC ABLE, A SURCHARGE COLLECTE D 23 UNDER § 9–342(C) OF THE ENVIRONMENT ARTICLE SHALL BE USED TO FUND 24 OYSTER REPLETION PRO JECTS IN THE COUNTY WHERE THE UNDERLYING WATER 25 POLLUTION VIOLATION OCCURRED. 26 (3) THE DEPARTMENT SHALL WORK WITH THE COUNTY OYST ER 27 COMMITTEE FOR THE CO UNTY WHERE THE UNDER LYING WATER POLLUTIO N 28 VIOLATION OCCURRED T O IDENTIFY: 29 SENATE BILL 876 5 (I) NATURAL OYSTER BARS W ITHIN THE COUNTY FOR 1 REPLETION; OR 2 (II) IF NO NATURAL OYSTER BAR WITHIN THE COUNT Y IS 3 SUITABLE FOR REPLETI ON, NATURAL OYSTER BARS WITHIN AN ADJACENT C OUNTY 4 FOR REPLETION . 5 (4) REPLETION PROJECTS CO NDUCTED UNDER THIS S UBSECTION 6 SHALL BE IN THE FORM OF SPAT–ON–SHELL. 7 (5) (I) THE DEPARTMENT MAY CONTRA CT WITH A NONPROFIT 8 ORGANIZATION THAT SP ECIALIZES IN OYSTER RECOVERY TO CARRY OU T OYSTER 9 REPLETION PROJECTS U NDER THIS SUBSECTION . 10 (II) THE FUND MAY BE USED TO C OVER RE ASONABLE 11 ADMINISTRATIVE EXPEN SES INCURRED BY A NO NPROFIT ORGANIZATION IN 12 CARRYING OUT OYSTER REPLETION PROJECTS U NDER THIS SUBSECTION . 13 (H) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 14 IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 15 (2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 16 THE GENERAL FUND OF THE STATE. 17 (I) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 18 WITH THE STATE BUDGET . 19 (J) MONEY EXPENDED FROM T HE FUND FOR OYSTER REPLE TION 20 PROJECTS IS SUPPLEME NTAL TO AND IS NOT I NTENDED TO TAKE THE PLACE OF 21 FUNDING THAT OTHERWI SE WOULD BE APPROPRI ATED FOR OYSTER REPL ETION 22 PROJECTS. 23 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 24 October 1, 2022. 25