EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *hb1089* HOUSE BILL 1089 M3 3lr2110 By: Delegates Terrasa, Edelson, Love, Feldmark, Ruth, and Solomon Introduced and read first time: February 10, 2023 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; establishing a framework for the redemption of 7 redeemable beverage containers sold in the State; requiring that each redeemable 8 beverage container sold in the State depict certain information beginning on a 9 certain date; requiring a retailer to include certain information on a customer’s sales 10 receipt; prohibiting a producer from selling, offering for sale, or distributing in or 11 importing into the State a redeemable beverage container unless the producer 12 registers with the Department of the Environment, pays a certain fee, and has or is 13 part of a certain beverage container stewardship plan; requiring each producer or 14 beverage container stewardship organization representing the producer to submit a 15 beverage container stewardship plan to the Department for approval; requiring a 16 beverage container stewardship organization or producer to implement and 17 administer a beverage container stewardship plan within a certain time after the 18 plan is approved; requiring the Department to establish a process for a county or 19 municipal corporation to create a redemption facility; authorizing redeemable 20 beverage containers redeemed at a redemption facility managed by a county or 21 municipal corporation to be credited toward meeting certain recycling rates; 22 establishing the Beverage Container Recycling Refund Grant Program to increase 23 the reuse and recycling of beverage containers in the State, reduce the volume of 24 single–use beverage containers sold in the State, and reduce the volume of litter from 25 beverage containers in the State; establishing the Redeemable Beverage Container 26 Recycling Refund Advisory Council to review certain reports, make certain 27 recommendations, and advise the Department on certain matters; and generally 28 relating to the Maryland Beverage Container Recycling Refund and Litter Reduction 29 Program. 30 2 HOUSE BILL 1089 BY repealing and reenacting, without amendments, 1 Article – Environment 2 Section 9–1701(a) and (q) and 9–1702(a) 3 Annotated Code of Maryland 4 (2014 Replacement Volume and 2022 Supplement) 5 BY repealing and reenacting, with amendments, 6 Article – Environment 7 Section 9–1702(d) and 9–1707(f) 8 Annotated Code of Maryland 9 (2014 Replacement Volume and 2022 Supplement) 10 BY adding to 11 Article – Environment 12 Section 9–1733 through 9–1749 to be under the new part “Part V. Maryland 13 Beverage Container Recycling Refund and Litter Reduction Program” 14 Annotated Code of Maryland 15 (2014 Replacement Volume and 2022 Supplement) 16 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17 That the Laws of Maryland read as follows: 18 Article – Environment 19 9–1701. 20 (a) In this subtitle the following words have the meanings indicated. 21 (q) “Recycling” means any process in which recyclable materials are collected, 22 separated, or processed and returned to the marketplace in the form of raw materials or 23 products. 24 9–1702. 25 (a) There is an Office of Recycling created within the Department. 26 (d) The Office shall: 27 (1) Assist the counties in developing an acceptable recycling plan required 28 under § 9–1703 of this subtitle and § 9–505 of this title, including technical assistance to 29 the local governments; 30 (2) Coordinate the efforts of the State to facilitate the implementation of 31 the recycling goals at the county level; 32 HOUSE BILL 1089 3 (3) Review all recycling plans submitted as part of a county plan as 1 required under § 9–505 of this title and advise the Secretary on the adequacy of the 2 recycling plan; 3 (4) Administer the Statewide Electronics Recycling Program under Part IV 4 of this subtitle; [and] 5 (5) Promote the development of markets for recycled materials and 6 recycled products in the State in accordance with § 9–1702.1 of this subtitle; AND 7 (6) ADMINISTER THE MARYLAND BEVERAGE CONTAINER 8 RECYCLING REFUND AND LITTER REDUCTION PROGRAM ESTABLISHED UNDER § 9 9–1735 OF THIS SUBTITLE . 10 9–1707. 11 (f) (1) There is a State Recycling Trust Fund. 12 (2) The Fund shall consist of: 13 (i) The newsprint recycling incentive fee; 14 (ii) The telephone directory recycling incentive fee collected under § 15 9–1709 of this subtitle; 16 (iii) The covered electronic device manufacturer registration fee 17 collected under § 9–1728 of this subtitle; 18 (IV) UNCLAIMED DEPOSITS , FEES, AND PENALTIES 19 TRANSFERRED TO THE FUND UNDER §§ 9–1739, 9–1740, AND 9–1749 OF THIS 20 SUBTITLE; 21 [(iv)] (V) All fines and penalties collected under this subtitle; 22 [(v)] (VI) Money appropriated in the State budget to the Fund; and 23 [(vi)] (VII) Any other money from any other source accepted for the 24 benefit of the Fund. 25 (3) The Secretary shall administer the Fund. 26 (4) The Treasurer shall hold the Fund separately and the Comptroller shall 27 account for the Fund. 28 (5) (I) [At] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 29 PARAGRAPH , AT the end of each fiscal year, any unspent or unencumbered balance in the 30 4 HOUSE BILL 1089 Fund that exceeds $2,000,000 shall revert to the General Fund of the State in accordance 1 with § 7–302 of the State Finance and Procurement Article. 2 (II) THE FUNDS TRANSFERRED TO T HE FUND UNDER 3 PARAGRAPH (2)(IV) OF THIS SUBSECTION ARE NOT SUBJECT TO § 7–302 OF THE 4 STATE FINANCE AND PROCUREMENT ARTICLE AND MAY NOT R EVERT TO THE 5 GENERAL FUND OF THE STATE. 6 (6) In accordance with the State budget, the Fund shall be used only: 7 (i) To provide grants to the counties to be used by the counties to 8 develop and implement local recycling plans; 9 (ii) To provide grants to counties that have addressed methods for 10 the separate collection and recycling of covered electronic devices in accordance with § 11 9–1703(c)(1) of this subtitle; 12 (iii) To provide grants to municipalities to be used by the 13 municipalities to implement local covered electronic device recycling programs; [and] 14 (iv) To carry out the purposes of the land management 15 administration; AND 16 (V) TO COVER THE COSTS OF ADMINISTERING , MONITORING , 17 EVALUATING, AND ENFORCING THE MARYLAND BEVERAGE CONTAINER 18 RECYCLING REFUND AND LITTER REDUCTION PROGRAM ESTABLISHED U NDER § 19 9–1735 OF THIS SUBTITLE . 20 (7) (I) THE COMPTROLLER SHALL ESTABLISH A SE PARATE 21 ACCOUNT WITHIN THE FUND. 22 (II) THE ACCOUNT SHALL CON SIST OF THE FUNDS SPECIFIED IN 23 PARAGRAPH (2)(IV) OF THIS SUBSECTION . 24 (III) THE ACCOUNT MAY BE US ED ONLY TO: 25 1. COVER THE COSTS OF AD MINISTERING, MONITORING , 26 EVALUATING, AND ENFORCING THE MARYLAND BEVERAGE CONTAINER 27 RECYCLING REFUND AND LITTER REDUCTION PROGRAM ESTABLISHED UNDER § 28 9–1735 OF THIS SUBTITLE ; 29 2. FUND THE BEVERAGE CONTAINER RECYCLING 30 REFUND GRANT PROGRAM ESTABLISHED UNDER § 9–1745 OF THIS SUBTITLE; 31 HOUSE BILL 1089 5 3. COMPENSATE LOCAL GOVE RNMENTS IN 1 ACCORDANCE WITH § 9–1743 OF THIS SUBTITLE; AND 2 4. MEET OR EXCEED THE PE RFORMANCE TARGETS 3 ESTABLISHED UNDER § 9–1736 OF THIS SUBTITLE. 4 [(7)] (8) (i) The Treasurer shall invest the money in the Fund in the 5 same manner as other State money may be invested. 6 (ii) Any investment earnings of the Fund shall be credited to the 7 General Fund of the State. 8 9–1731. RESERVED. 9 9–1732. RESERVED. 10 PART V. MARYLAND BEVERAGE CONTAINER RECYCLING REFUND AND LITTER 11 REDUCTION PROGRAM. 12 9–1733. 13 (A) IN THIS PART THE FOLL OWING WORDS HAVE THE MEANINGS 14 INDICATED. 15 (B) “ACCOUNT–BASED BULK PROCESSIN G PROGRAM ” MEANS A PROGRAM 16 THAT: 17 (1) ALLOWS A PERSON TO REDEEM MULTIPLE EMPTY REDEE MABLE 18 BEVERAGE CONTAINERS IN A BAG OR OTHER RE CEPTACLE IN EXCHANGE FOR A 19 DEPOSIT IN AN ACCOUN T OR SCRIP FOR REFUN DS ASYNCHRONOUSLY ; 20 (2) UTILIZES A SYSTEM OF CUSTOMER ACCOUNTS AND A MECHANISM 21 TO ASSOCIATE REDEEMED REDEEMABLE BEVERAG E CONTAINERS WITH THE 22 APPROPRIATE CUSTOMER ACCOUNT ; 23 (3) CONSOLIDATES THE REDEEMED REDEEMABLE BEVERAGE 24 CONTAINERS FOR BULK SORTIN G WHILE C OLLECTING DATA ABOUT THE 25 CONTAINERS; 26 (4) FULLY PREPARES REDEEMED REDEEMABLE BEVERAGE 27 CONTAINERS FOR SALE TO RECYCLER S; AND 28 (5) COLLECTS DATA TO SUPPORT AN ACCOUNTING OF THE 29 REDEEMABLE BEVERAGE CONTAINERS, INCLUDING THE DEPOSITS, FEES, AND 30 6 HOUSE BILL 1089 POUNDS OF MATERIAL P RODUCED THAT ARE ASSOCIATED WITH THE REDEEMABLE 1 BEVERAGE CONTAINERS . 2 (C) “ADVISORY COUNCIL” MEANS THE REDEEMABLE BEVERAGE 3 CONTAINER RECYCLING REFUND ADVISORY COUNCIL ESTABLISHED U NDER § 4 9–1747 OF THIS SUBTITLE . 5 (D) (1) “BEVERAGE” MEANS ANY DRINKABLE LIQUID INTENDED FOR 6 HUMAN ORAL CONSUMPTI ON. 7 (2) “BEVERAGE” DOES NOT INCLUDE: 8 (I) DRUGS REGULATED UNDER THE FEDERAL FOOD, DRUG, 9 AND COSMETIC ACT; AND 10 (II) INFANT FORMULA . 11 (E) “BEVERAGE CONTAINER ” MEANS A PREPACKAGED SEALABLE 12 CONTAINER THAT : 13 (1) IS MADE OF GLASS , ALUMINUM, OR PLASTIC; 14 (2) IS DESIGNED TO CONTAIN A BEVERAGE ; AND 15 (3) CAN CONTAIN A VOLUME OF 3 LITERS OR LESS. 16 (F) “BEVERAGE CONTAINER PR OCESSING MECHANISM ” MEANS A MANUAL 17 OR TECHNOLOGICAL METHOD FOR PROPERLY IDENTIFYING, COUNTING, AND 18 PROCESSING EMPTY REDEEMABLE BEVERAGE CONTAINERS FOR REDEMPTION . 19 (G) (1) “BEVERAGE CONTAINER ST EWARDSHIP ORGANIZATI ON” MEANS A 20 NONPROFIT ORGANIZATI ON THAT IS: 21 (I) EXEMPT FROM TAXATION UNDER § 501(C)(3) OF THE 22 INTERNAL REVENUE CODE; AND 23 (II) CREATED BY A GROUP OF PRODUCERS TO IMPLEME NT A 24 BEVERAGE CO NTAINER STEWARDSHIP PLAN. 25 (2) “BEVERAGE CONTAINER ST EWARDSHIP ORGANIZATI ON” 26 INCLUDES AN ORGANIZA TION CREATED BY A GR OUP OF BEVERAGE CONT AINER 27 STEWARDSHIP ORGANIZA TIONS TO REPRESENT T HE ORGANIZATIONS . 28 HOUSE BILL 1089 7 (H) “BEVERAGE CONTAINER ST EWARDSHIP PLAN ” MEANS A PLAN 1 SUBMITTED TO THE DEPARTMENT UNDER § 9–1741 OF THIS SUBTITLE. 2 (I) “DEPOSIT INITIATOR ” MEANS THE FIRST DIST RIBUTOR TO COLLECT A 3 DEPOSIT ON A BEVERAG E CONTAINER SOLD IN THE STATE. 4 (J) (1) “DISTRIBUTOR” MEANS A PERSON THAT SELLS BEVERAGES IN 5 REDEEMABLE BEVERAGE CONTAINER S TO A RETAILER IN THE STATE. 6 (2) “DISTRIBUTOR” INCLUDES A PERSON THAT MANUFACTURES AND 7 SELLS BEVERAGES IN REDEEMABLE BEVERAGE CONTAINERS TO A RETA ILER IN THE 8 STATE. 9 (3) “DISTRIBUTOR” DOES NOT INCLUDE AIR LINES OR SHIPPING 10 COMPANIES THAT TRANS PORT REDEEMABLE BEVERAGE CONTAINERS . 11 (K) “GRANT PROGRAM” MEANS THE BEVERAGE CONTAINER RECYCLING 12 REFUND GRANT PROGRAM ESTABLISHED UNDER § 9–1745 OF THIS SUBTITLE. 13 (L) “LINE BREAKAGE” MEANS A BEVERAGE CON TAINER THAT: 14 (1) BECOMES DEFECTIVE OR DAMAGED DURING MANUF ACTURING; 15 (2) IS NOT INTENDED TO BE SOLD; AND 16 (3) IS NOT ELIGIBLE FOR R EDEMPTION. 17 (M) “MARYLAND–SPECIFIC UPC BARCODE” MEANS A UNIVERSAL PRODUCT 18 CODE THAT IS: 19 (1) UNIQUE TO BEVERAGE CO NTAINERS SOLD IN THE STATE; AND 20 (2) USED TO DETER FRAUD A ND ENSURE THE LEGITI MATE 21 REDEMPTION OF REDEEM ABLE BEVERAGE CONTAI NERS. 22 (N) (1) “ON–PREMISES SELLER” MEANS A PERSON THAT SELLS FILLED 23 AND UNOPENED REDEEMA BLE BEVERAGE CONTAINERS FOR ON–PREMISES 24 CONSUMPTION . 25 (2) “ON–PREMISES SELLER” INCLUDES: 26 (I) BARS; 27 8 HOUSE BILL 1089 (II) HOTELS; 1 (III) RESTAURANTS ; 2 (IV) SPORTING VENUES ; 3 (V) ENTERTAINMENT VENUES ; AND 4 (VI) GAMING VENUES . 5 (O) “PERFORMANCE TARGETS ” MEANS THE TARGETS ESTABLISHED UNDER 6 § 9–1736 OF THIS SUBTITLE. 7 (P) (1) “PRODUCER” MEANS A PERSON RESPONSIBLE FOR COMP LYING 8 WITH THE REQUIREMENT S UNDER THIS PART . 9 (2) “PRODUCER” INCLUDES A FRANCHISOR OF A FRAN CHISE 10 LOCATED IN THE STATE. 11 (3) “PRODUCER” DOES NOT INCLUDE: 12 (I) THE STATE, A COUNTY, A MUNICIPAL CORPORATIO N, OR 13 ANY OTHER POLITICAL SUBDIVISION OF THE STATE; 14 (II) A CHARITABLE ORGANIZAT ION THAT IS TAX EXEM PT UNDER 15 § 501(C)(3) OF THE INTERNAL REVENUE CODE; 16 (III) A SOCIAL WELFARE ORGAN IZATION THAT IS TAX EXEMPT 17 UNDER § 501(C)(4) OF THE INTERNAL REVENUE CODE; 18 (IV) A FRANCHISEE THAT OPERATES A FRAN CHISE IN THE 19 STATE; 20 (V) A PERSON THAT ANNUALLY SELLS, OFFERS FOR SALE , 21 DISTRIBUTES, OR IMPORTS INTO THE COUNTRY FOR SALE IN THE STATE FEWER 22 THAN 1,000 REDEEMABLE BEVERAGE CONTAINERS; OR 23 (VI) A PERSON THAT ANNUALLY SELLS, OFFERS FOR SALE , OR 24 DISTRIBUTES IN THE STATE REDEEMABLE BEVERAGE CONTAINERS THAT IN 25 AGGREGATE GENERATE L ESS THAN $5,000,000 EACH YEAR IN GLOBAL REVENUE . 26 HOUSE BILL 1089 9 (Q) “PROGRAM” MEANS THE MARYLAND BEVERAGE CONTAINER 1 RECYCLING REFUND AND LITTER REDUCTION PROGRAM ESTABLISHED U NDER § 2 9–1735 OF THIS SUBTITLE . 3 (R) “RECYCLING RATE ” MEANS THE NUMBER OF NONREFILLABLE 4 REDEEMABLE BEVERAGE CONTAINERS SOLD IN T HE STATE THAT ARE REDEEM ED 5 AND RECYCLED SHOWN AS A PERCENTAG E OF ALL NONREFILLABLE REDEEM ABLE 6 BEVERAGE CONTAINERS SOLD IN THE STATE. 7 (S) “REDEEM” MEANS THE RETURN OF A REDE EMABLE BEVERAGE 8 CONTAINER IN EXCHANG E FOR A REFUND , A VOUCHER FOR A REFU ND, OR A CREDIT 9 TO AN ACCOUNT FOR NO T LESS THAN THE REFUND VALUE. 10 (T) “REDEEMABLE BEVERAGE C ONTAINER” MEANS A BEVERAGE 11 CONTAINER THAT , AT THE TIME OF SALE : 12 (1) CONTAINS 3 LITERS OR LESS OF A BEVERAGE; 13 (2) BEARS A UNIVERSAL PRODUCT CO DE; AND 14 (3) MAY BEAR A MARYLAND–SPECIFIC UPC BARCODE FOR THE 15 PURPOSE OF ENSURING LEGITIMATE REDEMPTIO N AND DETERRING FRAU D. 16 (U) “REDEMPTION FACILITY ” MEANS A FACILITY THA T: 17 (1) ACCEPTS EMPTY BEVERAG E CONTAINER S FROM A CONSUMER , A 18 RETAILER, OR BOTH; 19 (2) COLLECTS, SORTS, AND COUNTS EMPTY BEV ERAGE CONTAINERS ; 20 (3) REFUNDS THE REFUND VALUE OF EMPTY REDEEMABLE 21 BEVERAGE CONTAINERS IN CASH , WITH A VOUCHER , OR AS A CREDIT TO AN 22 ACCOUNT FOR NOT LESS THAN THE REFUND VALU E OF THE REDEEMABLE 23 BEVERAGE CONTAINER ; AND 24 (4) IS LICENSED UNDER § 9–1738 OF THIS SUBTITLE. 25 (V) “REDEMPTION RATE ” MEANS THE PERCENTAGE OF EMPTY 26 REDEEMABLE BEVERAGE CONTAINERS SOLD IN THE STATE THAT ARE REDEEMED 27 FOR THE DEPOSIT VALU E AND RETURNED TO A DISTRIBUTOR. 28 10 HOUSE BILL 1089 (W) “REFILLABLE” MEANS A BEVERAGE CON TAINER THAT IS DESIG NED AND 1 INTENDED TO BE REUSE D AS A BEVERAGE CONT AINER AFTER BEING US ED BY A 2 CONSUMER WITHOUT THE NEED FOR REMANUFACTURING . 3 (X) (1) “RETAILER” MEANS A PERSON THAT ENGAGES IN THE SALE OF 4 REDEEMABLE BEVERAGE CONTAINERS TO A CONS UMER IN THE STATE. 5 (2) “RETAILER” INCLUDES A PERSON THAT ENGAGE S IN THE SALE OF 6 REDEEMABLE BEVERAGE CONTAINERS: 7 (I) THROUGH A VENDING MAC HINE; OR 8 (II) ONLINE FOR HOME DELIV ERY. 9 (Y) “REVERSE VENDING MACHI NE” MEANS AN AUTOMATED DEVICE THA T: 10 (1) ACCEPTS ONE OR MORE TYPES OF EMPTY REDEE MABLE 11 BEVERAGE CONTAINERS ; 12 (2) USES A LASER SCANNER , AN OPTICAL SENSOR , A 13 MICROPROCESSOR , OR OTHER TECHNOLOGY TO ACCURATELY RECOGN IZE A 14 BEVERAGE CONTAINER ’S UNIVERSAL PRODUCT CODE TO DETERMINE WH ETHER THE 15 CONTAINER IS A REDEE MABLE BEVERAGE CONTAINER ; 16 (3) ISSUES A REDEEMABLE C REDIT SLIP FOR THE REDEEMABLE 17 BEVERAGE CONTAINER ’S REFUND VALUE ; 18 (4) SEPARATES REDEEMABLE BEVERAGE CONTAINERS FROM 19 CONTAINERS THAT ARE NOT REDEEMABLE ; 20 (5) USES MECHANICAL COMPA CTION TO CANCEL REDE EMABLE 21 BEVERAGE CONTAINERS T HAT HAVE BEEN REDEEM ED; AND 22 (6) COMPILES INFORMATION REGARDING THE REDEEM ABLE 23 BEVERAGE CONTAINERS THAT HAVE BEEN REDEE MED, INCLUDING THE NUMBER OF 24 REDEEMABLE BEVERAGE CONTAINERS REDEEMED . 25 (Z) (1) “UNIVERSAL PRODUCT COD E” OR “UPC” MEANS A STANDARD 26 BARCODE THAT ENCODES A NUMBER UNIQUELY AS SIGNED TO A PRODUCT FOR 27 IDENTIFICATION OF TH E PRODUCT. 28 (2) “UNIVERSAL PRODUCT COD E” OR “UPC” INCLUDES: 29 HOUSE BILL 1089 11 (I) ANY INDUSTRY–ACCEPTED BARCODE USE D FOR PRODUCT 1 IDENTIFICATION PURPO SES; AND 2 (II) A EUROPEAN ARTICLE NUMB ER. 3 9–1734. 4 IT IS THE INTENT OF T HE GENERAL ASSEMBLY TO: 5 (1) ACHIEVE A REDEMPTION RATE OF AT LEAST 90% FOR THE 6 APPROXIMATELY 5,200,000,000 SINGLE–USE BEVERAGE CONTAIN ERS SOLD 7 ANNUALLY IN THE STATE; 8 (2) PROVIDE A SOURCE OF H IGH–QUALITY FOOD –GRADE MATERIALS 9 FOR USE AS RECYCLED CONTENT IN BEVERAGE AND FOOD CONTAINERS ; 10 (3) REDUCE THE VOLUME OF LITTER AND PLASTIC P OLLUTION FROM 11 BEVERAGE CON TAINERS IN THE STATE; 12 (4) REDUCE THE VOLUME OF BEVERAGE CONTAINERS THAT ARE 13 LANDFILLED OR INCINE RATED IN THE STATE; 14 (5) REDUCE THE COST S OF LITTER AND BEVERAGE CONTAINER 15 COLLECTION, RECYCLING, AND DISPOSAL INCURRE D BY TAXPAYERS , COUNTIES, 16 AND MUNICIPAL CORPOR ATIONS BY MAKING PRO DUCERS OF BEVERAGE 17 CONTAINERS RESPONSIBLE FOR THE RECOVERY , RECYCLING, AND REUSE OF 18 BEVERAGE CONTAINERS; 19 (6) PROVIDE INCENTIVES FO R INCREASING THE USE OF REUSABLE 20 AND REFILLABLE BEVER AGE CONTAINERS ; AND 21 (7) REDUCE GREENHOUSE GAS EMISSIONS ASSOCIATED WITH THE 22 PRODUCTION , TRANSPORTATION , PROCESSING, AND WAST E DISPOSAL OF 23 SINGLE–USE BEVERAGE CONTAIN ERS SOLD IN THE STATE. 24 9–1735. 25 THERE IS A MARYLAND BEVERAGE CONTAINER RECYCLING REFUND AND 26 LITTER REDUCTION PROGRAM IN THE DEPARTMENT . 27 9–1736. 28 PERFORMANCE TARGETS F OR THE PROGRAM ARE AS FOLLOW S: 29 12 HOUSE BILL 1089 (1) A 70% REDEMPTION RATE BY DECEMBER 31, 2026; 1 (2) A 90% REDEMPTION RATE BY DECEMBER 31, 2029; 2 (3) A 65% RECYCLING RATE BY DECEMBER 31, 2026; 3 (4) AN 85% RECYCLING RATE BY DECEMBER 31, 2029; 4 (5) BY DECEMBER 31, 2025, ATTAINMENT OF ALL CONVENIENCE 5 STANDARDS IDENTIFIED BY THE DEPARTMENT UNDER § 9–1746 OF THIS SUBTITLE; 6 AND 7 (6) BY DECEMBER 31, 2032, THE RETURN AND REFIL LING OF AT 8 LEAST 10% OF ALL BEVERAGE CONT AINERS SOLD BY A PRO DUCER. 9 9–1737. 10 (A) (1) SUBJECT TO PARAGRAPH S (2) AND (3) OF THIS SUBSECTION , 11 BEGINNING JANUARY 1, 2025, EACH REDEEMABLE BEVE RAGE CONTAINER SOLD IN 12 THE STATE SHALL INCLUDE A DEPICTION OF THE FOLLOWING INF ORMATION: 13 (I) THE WORD “MARYLAND” OR THE LETTERS “MD”; AND 14 (II) 1. FOR REDEEMABLE BEVERA GE CONTAINERS WITH A 15 VOLUME OF 24 FLUID OUNCES OR LESS , A REFUND VALUE OF 10 CENTS; OR 16 2. FOR REDEEMABLE BEVERA GE CONTAINERS WITH A 17 VOLUME OF MORE THAN 24 FLUID OUNCES , A REFUND VALUE OF 15 CENTS. 18 (2) THE DEPARTMENT MAY ADJUST THE REFUND VALUES SP ECIFIED 19 IN PARAGRAPH (1) OF THIS SUBSECTION : 20 (I) IF THE DEPARTMENT DETERMINES ALTERING THE R EFUND 21 VALUES IS NECESSARY TO MEET OR EXCEED PE RFORMANCE TARGETS ; OR 22 (II) AT THE REQUEST OF A B EVERAGE CONTAINER 23 STEWARDSHIP ORGANIZA TION. 24 (3) BEGINNING JANUARY 1, 2029, THE DEPARTMENT SHALL 25 INCREASE THE REFUND VALUES SP ECIFIED IN PARAGRAPH (1) OF THIS SUBSECTION 26 BY 5 CENTS IF THE DEPARTMENT DETERMINES THAT FOR 2 CONSECUTIVE 27 HOUSE BILL 1089 13 CALENDAR YEARS THE R EDEMPTION RATE WAS LESS THAN 90% OF THE TOTAL 1 NUMBER OF BEVERAGE C ONTAINERS SOLD IN TH E STATE. 2 (B) A BEVERAGE CONTAINER DEPICTING THE INFORM ATION SPECIFIED IN 3 SUBSECTION (A) OF THIS SECTION MAY NOT BE SOLD TO A CONSUMER BEFORE 4 JANUARY 1, 2025. 5 (C) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 6 BEGINNING JANUARY 1, 2025: 7 (I) THE WHOLESALE PRICE A ND THE RETAIL PRICE OF A FULL 8 REDEEMABLE BEVERAGE CONTAINER S HALL INCLUDE THE REF UND VALUE OF THE 9 REDEEMABLE BEVERAGE CONTAINER; AND 10 (II) A RETAILER SHALL INCLU DE ON A CUSTOMER ’S SALES 11 RECEIPT THE REFUND VALUE OF A REDEEMABLE BEVERAG E CONTAINER SOLD BY 12 THE RETAILER TO THE CUSTOMER . 13 (2) THE RETAIL PRICE OF A FU LL REDEEMABLE BEVERA GE 14 CONTAINER SOLD BY AN ON–PREMISES SELLER MAY NOT INCLU DE THE REFUND 15 VALUE OF THE REDEEMABLE BE VERAGE CONTAINER . 16 9–1738. 17 (A) THE PROGRAM SHALL PROVIDE A RANGE OF OPTIONS F OR CUSTOMERS 18 AND ON–PREMISES SELLERS TO CONVENIEN TLY REDEEM EMPTY REDEEMABLE 19 BEVERAGE CONTAINERS FOR THE FULL REFUND VALU E, INCLUDING: 20 (1) REDEEMING AN EMPTY REDEEMABLE BEVERAGE CONTAINER AT 21 A RETAILER’S PLACE OF BUSINESS ; 22 (2) ESTABLISHING DEDICATED REDEMPTION FACILITIES IN PAR KING 23 LOTS AND AT OFFICES IN SHOPPING CENTERS ; AND 24 (3) PLACING REDEEMABLE BE VERAGE CONTAINER PRO CESSING 25 MECHANISMS , SUCH AS REVERSE VEND ING MACHINES AND ACC OUNT–BASED BULK 26 PROCESSING PROGRAMS, IN AREAS: 27 (I) WITH A HIGH NUMBER OF PED ESTRIANS; AND 28 (II) WHERE INDIVIDUALS PURCHASE OR USE BEVERAGE 29 CONTAINERS. 30 14 HOUSE BILL 1089 (B) (1) A PERSON SHALL APPLY T O THE DEPARTMENT FOR A LICE NSE TO 1 OPERATE A REDEMPTION FACILITY IN THE STATE. 2 (2) THE DEPARTMENT SHALL DEVE LOP STANDARDS AND A 3 LICENSING PROCESS FO R THE ESTABLIS HMENT AND OPERATION OF REDEMPTION 4 FACILITIES. 5 (C) (1) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , A RETAILER 6 SHALL: 7 (I) ESTABLISH AND MAINTAI N A DEDICATED AREA A T THE 8 RETAILER’S PLACE OF BUSINESS TO ACCEPT REDEEMABLE BEVERAGE CONTAINERS ; 9 (II) ACCEPT AT THE RETAILER ’S PLACE OF BUSINESS ANY 10 EMPTY REDEEMABLE BEVERAGE CONTAINER RETURNED FOR REDEMPT ION DURING 11 THE RETAILER’S BUSINESS HOURS; AND 12 (III) PAY TO THE REDEEMER THE REFUND VALUE FOR EACH 13 REDEEMABLE BEVERAGE CONTAINER REDEEMED . 14 (2) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , A 15 REDEMPTION FACILITY SHALL ACCEPT ALL TYPES OF EMPTY REDEEMABLE 16 BEVERAGE CONTAINERS FOR REDEMPTION . 17 (3) A RETAILER OR REDEMPTI ON FACILITY MAY REFU SE TO ACCEPT 18 AN EMPTY REDEEMABLE BEVERAGE CONTAINER T HAT: 19 (I) IS DIRTY; 20 (II) IS BROKEN; 21 (III) CONTAINS MATERIAL FOR EIGN TO THE NORMAL C ONTENTS 22 OF THE BEVERAGE CONT AINER; OR 23 (IV) THE RETAILER OR REDEM PTION FACILITY BELIE VES WAS 24 NOT SOLD IN THE STATE. 25 (D) (1) A PERSON THAT PROVIDES A REVERSE VENDING MA CHINE FOR 26 THE REDEMPTION OF RE DEEMABLE BEVERAGE CO NTAINERS SHALL : 27 (I) PROVIDE AN OPTION FOR REDEEMING REDEEMABLE 28 BEVERAGE CONTAINERS WHEN THE REVERSE VEND ING MACHINE IS FULL , BROKEN, 29 OR UNDER REPAIR ; AND 30 HOUSE BILL 1089 15 (II) PROVIDE AN OPTION FOR REDEEMING ANY REDEEM ABLE 1 BEVERAGE CONTAINERS NOT ACCEPTED BY THE REVERSE VENDING MACHINE. 2 (2) (I) THE DEPARTMENT SHALL ESTA BLISH A PROCESS FOR 3 SUBMITTING FOR REVIE W, APPROVING, AND MONITORING AN AC COUNT–BASED 4 BULK PROCESSING PROG RAM THAT: 5 1. ENSURES THAT THE PROG RAM WILL ACCURATELY 6 REFUND DEPOSITS AND MAINTAIN AND REPORT DATA FROM EACH TRANS ACTION; 7 AND 8 2. IDENTIFIES THE INFORMATION THAT MUST BE 9 SUBMITTED TO THE DEPARTMENT FOR APPROV AL OF THE PROGRAM . 10 (II) A PERSON THAT INTENDS TO PROVIDE AN ACCOUNT–BASED 11 BULK PROCESSING PROG RAM FOR THE REDEMPTI ON OF REDEEMABLE BEV ERAGE 12 CONTAINERS SHALL SUBMIT INFORMATION IDENTIFIED UNDER SUBPARAGRAPH (I) 13 OF THIS PARAGRAPH TO THE DEPARTMENT FOR APPROV AL OF THE PROGRAM . 14 (E) REFUNDS PROVIDED FOR A REDEEMED REDEEMABL E BEVERAGE 15 CONTAINER SHALL BE : 16 (1) IN CASH; OR 17 (2) IN THE FORM OF A RECE IPT FROM A REVERSE V ENDING MACHINE 18 IF: 19 (I) THE RECEIPT CAN BE EX CHANGED FOR CASH WIT HIN 60 20 DAYS AFTER THE RECEI PT IS ISSUED; AND 21 (II) THERE IS NO REQUIREME NT THAT OTHER GOODS BE 22 PURCHASED TO RECEIVE THE CASH REFUND . 23 (F) (1) A REDEMPTION FACILITY , RETAILER, OR OTHER PERSON THAT 24 ACCEPTS REDEEMABLE B EVERAGE CONTAINERS F OR REDEMPTION SHALL BE 25 REIMBURSED BY A DISTRIBUTOR FOR THE HANDLING OF EACH REDEEMABLE 26 BEVERAGE CONTAINER R EDEEMED. 27 (2) (I) THE DEPARTMENT SHALL SET A HANDLING FEE TO BE PAID 28 BY A DISTRIBUTOR TO A REDEMPTION FACI LITY, RETAILER, OR OTHER PERSON 29 THAT ACCEPTS REDEEMA BLE BEVERAGE CONTAIN ERS FOR REDEMPTION . 30 16 HOUSE BILL 1089 (II) 1. THE HANDLING FEE SHAL L BE SET AT AN AMOUNT 1 THAT COVERS THE COST S OF COLLECTING , SORTING, PROCESSING, AND 2 TRANSPORTING EMPTY R EDEEMABLE BEVERAGE C ONTAINERS FOR RECYCL ING, 3 REUSE, OR REFILLING. 4 2. THE DEPARTMENT MAY INCREA SE THE HANDLING 5 FEE IF THE DEPARTMENT DETERMINES AN INCREASE IS NECES SARY TO ENCOURAGE 6 THE ESTABLISHMENT OF MORE REDEMPTION FACI LITIES. 7 (G) A DEPOSIT INITIATOR THAT COLLECTS A DEPO SIT FROM A RETAILER , 8 REDEMPTION FACILITY , OR OTHER PERSON THAT ACCEPTS REDEEMABLE 9 BEVERAGE CONTAI NERS FOR REDEMPTION SHALL ACCOUNT FOR ANY DEPOS ITS IN 10 ACCORDANCE WITH § 9–1739 OF THIS SUBTITLE. 11 (H) REDEEMED REDEEMABLE B EVERAGE CONTAINERS S HALL BE 12 COLLECTED FOR RETURN TO PRODUCERS FOR USE OR SALE AS SCRAP MAT ERIAL. 13 9–1739. 14 (A) A DEPOSIT INITIATOR SH ALL DEPOSIT ANY DEPO SITS COLLECTED 15 UNDER § 9–1738 OF THIS SUBTITLE INTO A DEPOSIT COLLE CTION ACCOUNT THAT I S 16 MAINTAINED SEPARATEL Y FROM ALL OTHER REV ENUES. 17 (B) THE FUNDS IN THE DEPO SIT COLLECTION ACCOU NT MAY BE USED ONLY 18 TO PAY THE REFUND VALUE OF A RE DEEMABLE BEVERAGE CO NTAINER BEING 19 REDEEMED . 20 (C) A DEPOSIT INITIATOR SH ALL REPORT TO THE DEPARTMENT , AT A 21 FREQUENCY DETERMINED BY THE DEPARTMENT , THE FOLLOWING INFORM ATION: 22 (1) THE NUMBER OF REDEEMA BLE BEVERAGE CONTAIN ERS SOLD 23 AND REDEEMED SINCE THE L AST REPORT WAS SUBMI TTED TO THE DEPARTMENT 24 UNDER THIS SUBSECTIO N; 25 (2) THE FUNDS DEPOSITED INTO THE DEPOSIT COLLE CTION 26 ACCOUNT AND THE REFUNDS ISSUED FROM THE DEPOSIT COLLECTI ON ACCOUNT 27 SINCE THE LAST REPOR T WAS SUBMITTED TO T HE DEPARTMENT UNDER THIS 28 SUBSECTION; 29 (3) ANY INCOME EARNED ON THE FUNDS IN THE DEP OSIT 30 COLLECTION ACCOUNT S INCE THE LAST REPORT WAS SUBMITTED TO THE 31 DEPARTMENT UNDER THIS SUBSECTION; 32 HOUSE BILL 1089 17 (4) THE BALANCE OF THE DE POSIT COLLECTION ACC OUNT; AND 1 (5) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT . 2 (D) (1) THE DEPARTMENT SHALL DETE RMINE THE POINT AT W HICH A 3 DEPOSIT BECOMES AN U NCLAIMED DEPOSIT . 4 (2) UNCLAIMED DEPOSITS AR E CALCULATED AS THE AMOUNT OF 5 FUNDS TRANSFERRED TO A DEPOSIT COLLECTION ACCOUNT THAT ARE IN EXCESS 6 OF THE SUM OF: 7 (I) ANY INTEREST EARNINGS ON THE DEPOSIT COLLE CTION 8 ACCOUNT DURING THE TIME FOR WHICH UNCLAIMED DEPO SITS ARE BEING 9 CALCULATED ; AND 10 (II) THE TOTAL AMOUNT OF T HE REFUND VALUE RECE IVED FOR 11 THE REDEEMABLE BEVER AGE CONTAINERS R EDEEMED DURING THE T IME FOR 12 WHICH THE UNCLAIMED DEPOSITS ARE BEING C ALCULATED. 13 (3) A DEPOSIT INITIATOR SH ALL TRANSFER : 14 (I) 10% OF ANY UNCLAIMED DEP OSITS TO THE DEPARTMENT 15 AT A FREQUENCY DETER MINED BY THE DEPARTMENT ; AND 16 (II) 90% OF ANY UNCLAIM ED DEPOSITS TO A RES ERVE 17 ACCOUNT. 18 (4) A DEPOSIT INITIATOR SH ALL USE THE FUNDS IN THE RESERVE 19 ACCOUNT SPECIFIED UN DER PARAGRAPH (3) OF THIS SUBSECTION TO: 20 (I) ACHIEVE THE INTENT OF THE GENERAL ASSEMBLY STATED 21 IN § 9–1734 OF THIS SUBTITLE; AND 22 (II) MEET OR EXCEED THE PE RFORMANCE TARGETS 23 ESTABLISHED IN § 9–1736 OF THIS SUBTITLE . 24 (5) (I) THE DEPARTMENT SHALL TRAN SFER ANY UNCLAIMED 25 DEPOSITS RECEIVED UN DER THIS PARAGRAPH T O THE STATE RECYCLING TRUST 26 FUND UNDER § 9–1707(F) OF THIS SUBTITLE. 27 (II) THE UNCLAIMED DEPOSIT S TRANSFERRED TO THE STATE 28 RECYCLING TRUST FUND MAY BE USED ONLY FOR THE COSTS OF ADM INISTERING 29 THE GRANT PROGRAM. 30 18 HOUSE BILL 1089 9–1740. 1 (A) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THIS SECTION 2 APPLIES TO A PRODUCE R THAT SELLS , OFFERS FOR SALE, OR DISTRIBUTES 3 REDEEMABLE BEVERAGE CONTAINERS IN THE STATE. 4 (2) (I) IF THE BEVERAGE CONTA INER IS SOLD UNDER T HE 5 PRODUCER’S OWN BRAND OR LACKS IDENTIFICATION OF A BRAND, THE PRODUCER 6 IS THE PERSON THAT M ANUFACTURES THE REDEEMABLE BEVERAGE CONTAINER. 7 (II) IF THE REDEEMABLE BEVERAGE CONTAINER I S 8 MANUFACTURED BY A PE RSON OTHER THAN THE BRAND OWNER , THE PRODUCER IS 9 THE PERSON THAT IS T HE LICENSEE OF A BRA ND OR TRADEMARK UNDE R WHICH A 10 REDEEMABLE BEVERAGE CONTAINER I S SOLD, OFFERED FOR SALE , OR 11 DISTRIBUTED IN THE STATE, WHETHER OR NOT THE T RADEMARK IS REGISTER ED IN 12 THE STATE. 13 (III) IF THERE IS NO PERSON DESCRIBED IN THIS PA RAGRAPH 14 OVER WHOM THE STATE CAN CONSTITUTIO NALLY EXERCISE JURIS DICTION, THE 15 PRODUCER IS THE PERS ON THAT IMPORTS OR D ISTRIBUTES THE REDEEMABLE 16 BEVERAGE CONTAINER I N THE STATE. 17 (B) BEGINNING JANUARY 1, 2025, A PRODUCER MAY NOT S ELL, OFFER FOR 18 SALE, OR DISTRIBUTE IN OR IMPORT INTO THE STATE A REDEEMABLE BE VERAGE 19 CONTAINER UNLESS THE PRODUCER : 20 (1) IS REGISTERED WITH THE DEPARTMENT UNDER SUBSECTION (C) 21 OF THIS SECTION; 22 (2) HAS PAID THE REGISTRATION FEE UNDER SUBSECTION (E) OF 23 THIS SECTION; AND 24 (3) HAS, EITHER INDIVIDUALLY OR AS PART OF A BEVERAGE 25 CONTAINER STEWARDSHI P ORGANIZATION , A BEVERAGE CONTAINER STEWARDSHIP 26 PLAN APPROVED BY THE DEPARTMENT UNDER § 9–1741 OF THIS SUBTITLE. 27 (C) ON OR BEFORE MARCH 1, 2024, AND EACH MARCH 1 THEREAFTER , A 28 PRODUCER OR A BEVERAGE CONTAINER STEWARDSHIP ORGANIZA TION 29 REPRESENTING THE PRODUCER SHALL : 30 (1) REGISTER WITH THE DEPARTMENT ; AND 31 HOUSE BILL 1089 19 (2) PAY A REGISTRATION FE E ESTABLISHED BY THE DEPARTMENT 1 UNDER SUBSECTION (E) OF THIS SECTION. 2 (D) THE DEPARTMENT SHALL CREA TE A REGISTRATION FO RM THAT 3 REQUIRES EACH PRODUC ER OR BEVERAGE CONTA INER STEWARDSHIP 4 ORGANIZATION REGISTE RING WITH THE DEPARTMENT TO PROVIDE THE 5 FOLLOWING INFORMATIO N: 6 (1) A LIST OF EACH PRODUCE R INTENDED TO BE COV ERED UNDER 7 THE REGISTRATION ; 8 (2) THE NAME , PRIMARY BUSINESS ADD RESS, AND CONTACT 9 INFORMATION OF THE P ERSON RESPONSIBLE FO R ENSURING COMPLIANC E WITH 10 THIS PART; 11 (3) A LIST OF EACH BRAND OF REDEEMABLE BEVERAGE CONTAINER S 12 THAT THE PRODUCER IN TENDS TO SELL, OFFER FOR SALE , OR DISTRIBUTE IN THE 13 STATE, INCLUDING THE SIZE A ND MATERIAL OF THE R EDEEMABLE BEVERAGE 14 CONTAINERS FOR EACH BRAND; 15 (4) FOR EACH REDEEMABLE B EVERAGE CONTAINER SP ECIFIED IN 16 THE REGISTRATION , WHETHER THE REDEEMAB LE BEVERAGE CONTAINE R: 17 (I) IS REFILLABLE; AND 18 (II) DEPICTS A UPC OR MARYLAND–SPECIFIC UPC BARCODE; 19 (5) HOW EACH PRODUCER WILL PREVENT THE FRAUDULE NT SALE 20 AND REDEMPTION OF RE DEEMABLE BEVERAGE CO NTAINERS THAT WERE N OT SOLD 21 IN THE STATE; 22 (6) THE NUMBER OF REDEEMA BLE BEVERAGE CONTAIN ERS EACH 23 PRODUCER SO LD IN THE STATE IN THE IMMEDIAT ELY PRECEDING CALENDAR YEAR; 24 AND 25 (7) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT . 26 (E) (1) THE DEPARTMENT SHALL ESTA BLISH AN ANNUAL REGI STRATION 27 FEE FOR PRODUCERS THAT SELL REDEEMABLE BEVERAGE CONTAINERS IN THE 28 STATE. 29 (2) THE REGISTRATION FEE SHALL BE SET IN A MA NNER THAT: 30 20 HOUSE BILL 1089 (I) WHEN TAKEN IN COMBINA TION WITH ANTICIPATE D 1 REVENUES FROM PENALT IES COLLECTED UNDER § 9–1749 OF THIS SUBTITLE, WILL 2 PRODUCE FUNDS SUFFIC IENT TO COVER THE DEPARTMENT ’S ESTIMATED COSTS OF 3 PLANNING, IMPLEMENTING , ADMINISTERING , MONITORING , ENFORCING, AND 4 EVALUATING THE PROGRAM FOR THE UPCOMING YEAR ; AND 5 (II) 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 Y EAR. 8 (3) THE DEPARTMENT SHALL : 9 (I) IF THE REVENUES FROM THE REGISTRATION FEES IN THE 10 IMMEDIATELY PRECEDIN G YEAR EXCEED THE COSTS SPECIFIED IN PARAGRAPH 11 (2)(I) OF THIS SUBSECTION , CARRY THE EXCESS REV ENUES FORWARD TO RED UCE 12 REGISTRATION FEES TH E FOLLOWING YEAR ; AND 13 (II) IF THE REVENUES FROM THE RE GISTRATION FEES IN T HE 14 IMMEDIATELY PRECEDIN G YEAR DO NOT COVER THE COS TS SPECIFIED IN 15 PARAGRAPH (2)(I) OF THIS SUBSECTION , ADJUST REGISTRATION FEES FOR THE 16 FOLLOWING YEAR TO AN AMOUNT THAT WILL COVE R THE DEPARTMENT ’S ACTUAL 17 COSTS FROM THE IMMED IATELY PRECEDING YEA R. 18 (4) REGISTRATION FEES COL LECTED UNDER THIS SU BSECTION 19 SHALL BE: 20 (I) TRANSFERRED TO THE STATE RECYCLING TRUST FUND 21 UNDER § 9–1707(F) OF THIS SUBTITLE; AND 22 (II) USED ONLY TO COVER THE DEPARTMENT ’S COSTS OF 23 PLANNING, IMPLEMENTING , ADMINISTERING , MONITORING , ENFORCING, AND 24 EVALUATING THE PROGRAM. 25 9–1741. 26 (A) (1) ON OR BEFORE APRIL 1, 2024, EACH PRODUCER OR BEVERAGE 27 CONTAINER STEWARDSHI P ORGANIZATION REPRE SENTING THE PRODUCER SHALL 28 SUBMIT A BEVERAGE CO NTAINER STEWARDSHIP PLAN TO THE DEPARTMENT . 29 (2) A BEVERAGE CONTAINER S TEWARDSHIP PLAN SHAL L: 30 HOUSE BILL 1089 21 (I) IDENTIFY AND INCLUDE THE CONTACT INFORMAT ION FOR 1 EACH PRODUCER AND BE VERAGE CONTAINER STE WARDSHIP ORGANIZATIO N 2 INTENDED TO BE COVER ED 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 CONTAINERS F OR EACH BRAND AND 6 WHETHER THE REDEEMAB LE BEVERAGE CONTAINE RS ARE REFILLABLE ; 7 (III) DESCRIBE: 8 1. THE FINANCING INFORMA TION SPECIFIED IN 9 PARAGRAPH (3) OF THIS SUBSECTION; 10 2. HOW THE PERFORMANCE T ARGETS WILL BE MET O R 11 EXCEEDED FOR THE 5–YEAR PERIOD FOLLOWIN G THE YEAR IN WHICH THE PLAN IS 12 APPROVED; 13 3. HOW STAKEHOLDER COMME NTS WERE CONSIDERED 14 AND REFLECTED IN THE DEVELOPMENT OF THE P LAN, INCLUDING THE ROLE O F 15 RETAILERS, DISTRIBUTORS , AND LOCAL GOVERNMENT S IN PLAN IMPLEMENTATI ON; 16 4. THE ADMINISTRATION AN D IMPLEMENTATION OF 17 THE PLAN, INCLUDING ANY STAFFI NG THAT WILL BE NECE SSARY FOR THESE 18 PURPOSES; 19 5. THE ACTIONS THAT HAVE BEEN TAKEN AND THAT 20 WILL BE TAKEN FOR PU BLIC OUTREACH , EDUCATION, AND COMMUNICATION , 21 INCLUDING MESSAGING AND IDENTIFICATION OF TA RGET AUDIENCES ; AND 22 6. THE ANTICIPATED INVES TMENTS THAT WILL BE 23 MADE TO IMPROVE THE REUSE OF BEVERAGE CO NTAINERS, INCLUDING THE 24 SOURCE OF FUNDING FO R THE INVESTMENTS ; 25 (IV) LIST THE STAKEHOLDERS CONSULTED IN DEVELOP ING THE 26 PLAN; 27 (V) PROVIDE THE ANTICIPAT ED COSTS OF IMPLEMENTING THE 28 PLAN FOR 5 YEARS, BROKEN DOWN BY YEAR ; AND 29 (VI) INCLUDE ANY OTHER INF ORMATION REQUESTED B Y THE 30 DEPARTMENT . 31 22 HOUSE BILL 1089 (3) THE FINANCING INFORMA TION INCLUDED IN A B EVERAGE 1 CONTAINER STEWARDSHI P PLAN SHALL: 2 (I) EXPLAIN THE FINANCING FOR DIRECT INVESTMEN TS OR 3 REIMBURSEMENTS THAT WILL IMPROVE INFRAST RUCTURE IN A MANNER THAT 4 SUPPORTS REDEMPTION SERVICE S AND TECHNOLOGIES ; 5 (II) ESTABLISH A FEE STRUC TURE IN ACCORDANCE WITH 6 PARAGRAPH (4) OF THIS SUBSECTION FOR PRODUCERS PARTIC IPATING IN A 7 BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION; 8 (III) DESCRIBE THE COSTS OF MEETING THE PERFORMA NCE 9 TARGETS; 10 (IV) DESCRIBE THE INCENTIV ES USED TO ENCOURAGE 11 PRODUCERS TO : 12 1. INVEST IN REUSABLE AN D REFILLABLE BEVERAG E 13 CONTAINER SYSTEMS ; AND 14 2. REDESIGN BEVERAGE CON TAINERS TO BE EASIER 15 AND LESS COSTLY TO R ECYCLE; 16 (V) CREATE INCENTIVES FOR PRODUCERS TO USE A 17 MARYLAND–SPECIFIC UPC BARCODE TO REDUCE FRAUDULENT REDEMPTION ; AND 18 (VI) MEET ANY OTHER REQUIR EMENTS ESTABLISHED B Y THE 19 DEPARTMENT . 20 (4) (I) THE FEE STRUCTURE REQ UIRED UNDER PARAGRAP H (3) OF 21 THIS SUBSECTION FOR PRODUCERS PARTIC IPATING IN A BEVER AGE CONTAINER 22 STEWARDSHIP ORGANIZA TION SHALL BE: 23 1. SET IN A MANNER THAT COVERS THE COSTS OF 24 ADMINISTERING A BEVE RAGE CONTAINER STEWA RDSHIP ORGANIZATION AND 25 IMPLEMENTING THE BEV ERAGE CONTAINER STEW ARDSHIP PLAN ; AND 26 2. BASED ON: 27 A. THE COSTS ASSOCIATED WITH TRAN SPORTING, 28 COLLECTING, AND PROCESSING EACH TYPE OF REDEEMABLE B EVERAGE 29 CONTAINER MATERIAL; 30 HOUSE BILL 1089 23 B. WHETHER A PRODUCER ’S REDEEMABLE BEVERAG E 1 CONTAINERS ARE REFIL LABLE AND EASY TO RECYCLE ; 2 C. A PRODUCER’S PORTION, BY MATERIAL TYPE , OF 3 REDEEMABLE BEVERAGE CONTAINERS SOLD IN THE STATE DURING THE PREVIOUS 4 CALENDAR YEAR ; AND 5 D. ANY OTHER FACTOR THE DEPARTMENT DETERMINES 6 IS NECESSARY TO SUPP ORT THE PROGRAM. 7 (II) 1. A PRODUCER PARTICIPATING IN A BEVERAGE 8 CONTAINER STEWARDSHI P ORGANIZATION SHALL PAY THE FEE ESTABLISHED 9 UNDER PARAGRAPH (3) OF THIS SUBSECTION T O THE BEVERAGE CONTAIN ER 10 STEWARDSHIP ORGANIZA TION. 11 2. A BEVERAGE CONTAINER S TEWARDSHIP 12 ORGANIZATION SHALL DEPOSIT FEES RECEIVE D UNDER THIS SUBPARA GRAPH TO AN 13 ACCOUNT HELD BY THE BEVERAGE CONT AINER STEWARDSHIP OR GANIZATION. 14 3. A BEVERAGE CONTAINER S TEWARDSHIP 15 ORGANIZATION MAY USE THE FEES RECEIVED UN DER THIS SUBPARAGRAP H ONLY 16 FOR IMPLEMENTING THE BEVERAGE CONTAINER S TEWARDSHIP PLAN. 17 (5) THE DEPARTMENT SHALL SUBMIT A BEVERAGE CONTAINER 18 STEWARDSHIP PLAN TO AN INDEPENDENT FINAN CIAL AUDITOR TO ENSU RE THAT 19 THE FINANCING PROPOS ED IN THE PLAN WILL COVER THE COSTS OF I MPLEMENTING 20 THE PLAN. 21 (B) (1) (I) WITHIN 120 DAYS AFTER RECEIPT OF A B EVERAGE 22 CONTAINER STEWARDSHI P PLAN SUBMITTED TO THE DEPARTMENT UNDER THIS 23 SECTION, THE DEPARTMENT SHALL APPR OVE, APPROVE WITH CONDITI ONS, OR 24 DENY THE PLAN. 25 (II) IN DETERMINING WHETHE R TO APPROVE , APPROVE WITH 26 CONDITIONS, OR DENY A BEVERAGE C ONTAINER STEWARDSHIP PLAN, THE 27 DEPARTMENT SHAL L: 28 1. CONSIDER WHETHER : 29 A. THE PLAN COMPLIES WIT H THE REQUIREMENTS O F 30 THIS SECTION; AND 31 24 HOUSE BILL 1089 B. THERE WAS SUFFICIENT ENGAGEMEN T WITH 1 STAKEHOLDERS , INCLUDING LOCAL GOVE RNMENTS, RETAILERS, AND 2 DISTRIBUTORS , IN DEVELOPING THE PLAN; AND 3 2. CONSULT WITH THE ADVISORY COUNCIL. 4 (2) (I) THE DEPARTMENT MAY RESCIN D APPROVAL OF A 5 BEVERAGE CONTAINER S TEWARDSHIP PLAN FOR GOOD CAUSE. 6 (II) A PRODUCER OR A BEVERA GE CONTAINER STEWARD SHIP 7 ORGANIZATION MAY AMEND A RESCINDED BE VERAGE CONTAINER STE WARDSHIP 8 PLAN AND SUBMIT THE AMENDED PLAN TO THE DEPARTMENT FOR APPROV AL. 9 (3) (I) A BEVERAGE CONTAINER S TEWARDSHIP PLAN APPROVED 10 BY THE DEPARTMENT MAY BE AME NDED WITH APPROVAL O F THE DEPARTMENT . 11 (II) THE DEPARTMENT MAY REQUIR E THAT AN APPROVED 12 BEVERAGE CONTAINER STEWARDSHI P PLAN BE AMENDED IF THE REPORT 13 SUBMITTED UNDER § 9–1742 OF THIS SUBTITLE REF LECTS THAT THE 14 PERFORMANCE TARGETS HAVE NOT BEEN MET . 15 (C) AN APPROVED BEVERAGE CONTAINER S TEWARDSHIP PLAN EXPI RES AT 16 THE END OF 5 YEARS. 17 (D) (1) A BEVERAGE CONTAINER STEWARDSHI P ORGANIZATION OR A 18 PRODUCER THAT IS NOT A MEMBER OF A BEVERAGE CONTAI NER STEWARDSHIP 19 ORGANIZATION SHALL IMPLEMENT AND ADMINIS TER A BEVERAGE CONTAINER 20 STEWARDSHIP PLAN WITHIN 6 MONTHS AFTER THE PLA N IS APPROVED. 21 (2) IN IMPLEMENTING AND ADMINISTERING A BEVERAGE CONTAINER 22 STEWARDSHIP PLAN , A BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION OR A 23 PRODUCER THAT IS NOT A MEMBER OF A BEVERAGE CONTAINER STEWARDSHIP 24 ORGANIZATION SHALL : 25 (I) FACILITATE LOGISTICS, THE INITIATION OF DEPOSITS, AND 26 THE ISSUANCE OF REFUNDS UNDER THE PLAN ; 27 (II) COORDINAT E THE LOGISTICS FOR CO LLECTING 28 REDEEMABLE BEVERAGE CONTAINERS FROM AN O N–PREMISES SELLER; 29 (III) ESTABLISH PROCEDURES FOR TRACKING REDEEMA BLE 30 BEVERAGE CONTAINERS SOLD IN THE STATE; 31 HOUSE BILL 1089 25 (IV) DESIGN AND OPERATE SERVIC ES FOR THE 1 TRANSPORTATION AND P ROCESSING OF REDEEMA BLE BEVERAGE CONTAIN ERS; 2 (V) DEVELOP AND IMPLEMENT A PLAN FOR ESTABLISH ING, 3 OPERATING, AND MANAGING REDEMPT ION FACILITIES THAT WILL OFFER A WIDE 4 RANGE OF CONVENIENT REDEMPTION LOCATIONS AND TECHNO LOGIES THAT ARE 5 EASY TO USE, ACCESSIBLE, AND MEET OR EXCEED T HE CONVENIENCE STAND ARDS 6 ESTABLISHED BY THE DEPARTMENT UNDER § 9–1746 OF THIS SUBTITLE; 7 (VI) ESTABLISH INCENTIVES TO ENCOURAGE RETAILE RS TO 8 PARTICIPATE IN THE PROGRAM; 9 (VII) DEVELOP AND IMPLEMENT A PLAN FOR THE DISTR IBUTION, 10 OPERATION, AND MAINTENANCE OF B EVERAGE CONTAINER RE DEMPTION 11 TECHNOLOGIES , INCLUDING REVERSE VE NDING MACHINES AND ACCOUNT–BASED 12 BULK PROCESSING PROG RAMS; 13 (VIII) DEVELOP ACCOUNTING AN D CONTROL STANDARDS; 14 (IX) IMPLEMENT ACCOUNTING , AUDIT, PAYMENT, AND 15 REPORTING PROCEDURES ; 16 (X) ESTABLISH A HIGH –VOLUME VALIDATION AN D AUDIT 17 SYSTEM TO PAY A BULK RATE TO AN ON–PREMISES SELLER FOR THE REDEM PTION 18 OF EMPTY REDEEMABLE BEV ERAGE CONTAINERS ; 19 (XI) ESTABLISH AN APPLICATION PROCESS FOR LARGE 20 ON–PREMISES SELLERS TO APPLY FOR AND REC EIVE A BULK RATE FOR THE 21 REDEMPTION OF HIGH V OLUMES OF EMPTY REDE EMABLE BEVERAGE CONT AINERS; 22 (XII) MARKET REDEEMABLE BEV ERAGE CONTAINER MATE RIALS 23 FOR REUSE IN THE MAN UFACTURING OF SIMILAR PRODUCTS; 24 (XIII) FUND A MARKETING PROG RAM TO EDUCATE THE P UBLIC 25 ABOUT THE PROGRAM; 26 (XIV) ESTABLISH A SYSTEM FO R REPORTING KEY INFO RMATION 27 GATHERED BY THE PROGRAM TO THE DEPARTMENT ON A QUART ERLY BASIS; AND 28 (XV) CREATE INCENTIVES FOR THE D EVELOPMENT OF 29 REFILLABLE AND REUSA BLE BEVERAGE CONTAIN ER SYSTEMS. 30 26 HOUSE BILL 1089 (3) ON REQUEST OF THE DEPARTMENT , A BEVERAGE CONTAINER 1 STEWARDSHIP ORGANIZA TION OR A PRODUCER THAT IS N OT A MEMBER OF A 2 BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION SHALL SUBMIT A COPY OF ITS 3 FINANCIAL RECORDS TO THE DEPARTMENT FOR A FINA NCIAL AUDIT. 4 (E) IF MORE THAN ONE BEVE RAGE CONTAINER STEWA RDSHIP 5 ORGANIZATION SUBMITS A BEVERAGE CONTAINER STEWARDSHIP PLAN TO THE 6 DEPARTMENT , THE BEVERAGE CONTAIN ER STEWARDSHIP ORG ANIZATIONS: 7 (1) SHALL COORDINATE WITH THE DEPARTMENT AND LOCAL 8 GOVERNMENTS TO ENSUR E THAT: 9 (I) REDEEMABLE BEVERAGE C ONTAINER RECOVERY , 10 PROCESSING, AND REDEMPTION SERVI CES ARE PROVIDED IN A SEAMLESS MANNER 11 ACROSS THE STATE; AND 12 (II) PUBLIC OUTREA CH, EDUCATION, AND COMMUNICATION 13 ABOUT REDEEMABLE BEV ERAGE CONTAINER PROG RAMS ARE PROVIDED IN A 14 CONSISTENT MANNER ; AND 15 (2) MAY CREATE AN ORGANIZ ATION TO REPRESENT ALL BEVERAG E 16 CONTAINER STEWARDSHI P ORGANIZATIONS THAT SUBMIT A BEVERAGE CO NTAINER 17 STEWARDS HIP PLAN TO THE DEPARTMENT . 18 9–1742. 19 (A) THIS SECTION APPLIES TO A PRODUCER AND A BEVERAGE CONTAINER 20 STEWARDSHIP ORGANIZA TION THAT HA VE A BEVERAGE CONTAINER STEWARDSHIP 21 PLAN APPROVED BY THE DEPARTMENT UNDER § 9–1741 OF THIS SUBTITLE. 22 (B) (1) ON OR BEFORE APRIL 1, 2026, AND EACH APRIL 1 THEREAFTER , 23 EACH BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION AND PRODUCER THAT 24 IS NOT PART OF A BEV ERAGE CONTAINER STEW ARDSHIP ORGANIZATION SHALL 25 SUBMIT A REPORT TO T HE DEPARTMENT ON THE PRO GRESS MADE IN THE 26 PRECEDING CALENDAR YEAR TOWARD MEETING THE PERFORMANCE TARGETS AND 27 THE GOALS OF THE PROGRAM AND THE PRODU CER’S OR BEVERAGE CONTAINE R 28 STEWARDSHIP ORGANIZA TION’S BEVERAGE CONTAINER STEWARDSHIP PLAN . 29 (2) THE DEPARTMENT SHALL PROV IDE THE ADVISORY COUNCIL 30 WITH A COPY OF EACH REPORT SUBMITTED UNDER THIS SUBSECTION. 31 (C) THE REPORT SUBMITTED UNDER SUBSECTION (B) OF THIS SECTION 32 SHALL INCLUDE , FOR THE PRECEDING CALENDAR YEAR: 33 HOUSE BILL 1089 27 (1) THE PROGRESS MADE TOWARD ACHIEVING THE PERFORMA NCE 1 TARGETS; 2 (2) IF THE PERFORMANCE TA RGETS WERE NOT ACHIE VED, A 3 DESCRIPTION OF THE A CTIONS PROPOSED TO A CHIEVE THE PERFORMAN CE 4 TARGETS; 5 (3) THE NUMBER OF REDEEMA BLE BEVERAGE CONTAIN ERS SOLD IN 6 THE STATE; 7 (4) THE NUMBER OF REDEEMABLE BEVERAGE CONTAINERS SOLD IN 8 THE STATE SORTED BY MATER IAL TYPE, REFUND VALUE , AND WHETHER THE 9 CONTAINER CAN BE REF ILLED OR REUSED ; 10 (5) THE NUMBER OF REDEEMA BLE BEVERAGE CONTAIN ERS 11 REDEEMED ; 12 (6) THE NUMBER OF REDEEMA BLE BEVERAGE CONTAIN ERS 13 REDEEMED AT EACH REDE MPTION FACILITY , REVERSE VENDING MACH INE, 14 ACCOUNT–BASED BULK PROCESSIN G PROGRAM, OR OTHER BEVERAGE CONTAINER 15 PROCESSING MECHANISM SORTED BY MATERIAL T YPE, REFUND VALUE , AND 16 WHETHER THE REDEEMAB LE BEVERAGE CONTAINE R CAN BE REFILLED OR REUSED; 17 (7) THE REDEMPTION RATE A ND RECYCLING RATE FO R 18 NONREFILLABLE REDEEM ABLE BEVERAGE CONTAI NERS SOLD IN THE STATE 19 SORTED BY MATERIAL T YPE, NUMBER OF CONTAINERS SOLD, AND CONTAINER 20 WEIGHT; 21 (8) THE AMOUNT OF EACH TY PE OF: 22 (I) REDEEMABLE BEVERAGE CONTAINER MATERIAL 23 COLLECTED IN THE STATE; AND 24 (II) SCRAP MATERIAL SOLD BY A PRODUCER ; 25 (9) THE LOCATION OF EACH REDEMPTION FACILITY IN THE STATE 26 AND THE REDEMPTION T ECHNOLOGY USED AT EA CH REDEMPTION FACILI TY; 27 (10) A DESCRIPTION OF ANY I MPROVEMENT S MADE TO MAKE 28 RETURNING REDEEMABLE BEVERAGE CONTAINERS EASIER AND MORE 29 CONVENIENT ; 30 28 HOUSE BILL 1089 (11) THE IDENTIFICATION AN D DESCRIPTION OF ARE AS THAT DO NOT 1 HAVE READILY AVAILAB LE OPTIONS FOR REDEE MING A REDEEMABLE BE VERAGE 2 CONTAINER AND ACTION S THE BEVERAGE CONTA INER STEWARDSHIP 3 ORGANIZATION WILL TA KE TO IMPROVE OPTION S IN THESE AREAS; 4 (12) THE NUMBER OF CONSUME R COMPLAINTS PER MON TH, SORTED 5 BY REDEMPTION FACILI TY; 6 (13) THE NUMBER OF INDIVID UALS AND ORGANIZATIO NS WITH 7 ACCOUNTS ESTABLISHED FOR THE RECEIPT OF E LECTRONIC DEPOSITS O R 8 REFUNDS; 9 (14) THE TOTAL COST OF IMP LEMENTING THE BEVERA GE CONTAINER 10 STEWARDSHIP PLAN , AS DETERMINED BY AN INDEPENDENT FINANCIA L AUDITOR 11 UNDER § 9–1741(A)(5) OF THIS SUBTITLE; 12 (15) THE AVERAGE COST OF PROCESSING A REDEEMED REDEEMABLE 13 BEVERAGE CONTAINER; 14 (16) A COPY OF THE AUDIT CO NDUCTED UNDER § 9–1741(A)(5) OF 15 THIS SUBTITLE; 16 (17) FINANCIAL STATEMENTS DETAILING ALL DEPOSI TS RECEIVED 17 AND REFUNDS ISSUED B Y EACH PRODUCER COVE RED UNDER THE BEVERA GE 18 CONTAINER STEWARDSHI P PLAN; 19 (18) THE TOTAL AMOUNT OF D EPOSITS INITIATED, REFUNDS ISSUED , 20 AND UNCLAIMED DEPOSI TS COLLECTED UNDER THE BEVERAGE C ONTAINER 21 STEWARDSHIP PLAN ; 22 (19) AN ACCOUNTING OF ALL ACTIVITIES AND INVES TMENTS 23 FINANCED BY UNCLAIME D DEPOSITS; 24 (20) EXPENDITURES AND REVENUES SORTED BY SOURCE , INCLUDING 25 FEES PAID UNDER § 9–1741(A)(4) OF THIS SUBTITLE , REVENUE FROM THE SAL E OF 26 SCRAP MATERIALS , AND UNCLAIMED DEPOSI TS; 27 (21) SAMPLES OF ALL EDUCAT IONAL MATERIALS PROV IDED TO 28 CONSUMERS , RETAILERS, AND OTHER ENTITIES ; 29 (22) A DETAILED DESCRIPTION OF INVESTMENTS MADE IN NEW 30 REDEMPTION FACILITIE S AND REDEMPTION TEC HNOLOGY; 31 HOUSE BILL 1089 29 (23) THE LOCATION OF NEW R EDEMPTION FACILITIES AND 1 REDEMPTION TECHNOLOG Y; 2 (24) A DETAILED DESCRIPTION OF CHANGES MADE BY P RODUCERS TO 3 INCREASE THE RECYCLABILITY OF REDEEMABLE BEVERAGE CONTAINERS; 4 (25) A DETAILED DESCRIPTION OF ANY INCIDENTS OF FRAUD AND 5 EFFORTS TAKEN TO PRE VENT FRAUD; AND 6 (26) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT . 7 (D) THE FINANCIAL, PRODUCTION , AND SALES DATA OF INDIVIDUAL 8 PRODUCERS REPORTED TO THE DEPARTMENT UNDER THIS SECTION SHALL BE 9 KEPT CONFIDENTIAL BY THE DEPARTMENT AND THE ADVISORY COUNCIL. 10 (E) THE DEPARTMENT SHALL POST THE REPORT SUBMITTED UNDER THIS 11 SECTION ON THE DEPARTMENT ’S WEBSITE IN A MANNE R THAT PROTECTS 12 CONFIDENTIALITY OF T HE DATA SPECIFIED UN DER SUBSECTION (D) OF THIS 13 SECTION. 14 9–1743. 15 (A) THE DEPARTMENT SHALL ESTA BLISH A PROCESS FOR A COUNTY OR 16 MUNICIPAL CORPORATIO N TO CREATE A REDEMP TION FACILITY. 17 (B) REDEEMABLE BEVERAGE C ONTAINERS RED EEMED AT A REDEMPTIO N 18 FACILITY MANAGED BY A COUNTY OR MUNICIPA L CORPORATION SHALL BE 19 CREDITED TOWARD MEET ING THE RECYCLING RA TES REQUIRED UNDER § 9–505 OF 20 THIS TITLE. 21 (C) (1) THROUGH DECEMBER 31, 2027, A PORTION OF PROGRAM 22 REVENUES SHALL BE US ED TO COMPENSATE A COUNTY OR MUNICIPAL 23 CORPORATION FOR ANY NET LOSS OF REVENUE TO THE COUNTY ’S OR MUNICIPAL 24 CORPORATION ’S WASTE MANAGEMENT S YSTEM THAT CAN BE DO CUMENTED AND 25 ATTRIBUTED TO THE PROGRAM. 26 (2) IN DETERMINING A NET LOSS OF REVENUE , A COUNTY OR 27 MUNICIPAL CORPORATION SHA LL CONSIDER: 28 (I) THE LOSS OF REVENUE F ROM THE SALE OF SCRA P 29 MATERIALS; 30 (II) FINANCIAL SAVINGS FRO M A REDUCTION IN : 31 30 HOUSE BILL 1089 1. GLASS BOTTLES IN THE RECYCLING STREAM ; 1 2. TRANSPORTATION COSTS ASSOCIATED WITH 2 CURBSIDE COLLECTION OF TRASH AND RECYCLIN G; 3 3. PROCESSING COSTS ASSO CIATED WITH RECYCLIN G 4 BEVERAGE CONTAINERS ; 5 4. THE COSTS OF LANDFILL ING AND INCINERATING 6 BEVERAGE CONTAINERS THAT ARE NOT RECYCLED; AND 7 5. THE COSTS OF LITTER C OLLECTION; AND 8 (III) FOR A COUNTY OR MUNICIPAL CORPORATION THAT HAS A 9 TOTAL MAXIMUM DAILY LOAD FOR TRASH IN A WATERWAY UNDER ITS 10 JURISDICTION, THE REDUCED COSTS AN D INCREASED BENEFITS OF COMPLYING 11 WITH THE TOTAL MAXIM UM DAILY LOAD DUE TO A REDUCTION IN BEVER AGE 12 CONTAINER LITTER . 13 9–1744. 14 FUNDING FOR THE PROGRAM SHALL : 15 (1) INCLUDE: 16 (I) UNCLAIMED DEPOSITS CO LLECTED UNDER § 9–1739 OF 17 THIS SUBTITLE; 18 (II) REGISTRATION FEES COLLECTED UNDER § 9–1740 OF THIS 19 SUBTITLE; AND 20 (III) PENALTIES COLLECTED U NDER § 9–1749 OF THIS 21 SUBTITLE; AND 22 (2) BE USED IN ACCORDANCE WITH §§ 9–1707(F), 9–1739, 9–1740, 23 AND 9–1749 OF THIS SUBTITLE. 24 9–1745. 25 (A) THERE IS A BEVERAGE CONTAINER RECYCLING REFUND GRANT 26 PROGRAM. 27 HOUSE BILL 1089 31 (B) THE PURPOSE OF THE GRANT PROGRAM IS TO PROVIDE FUNDIN G FOR 1 PROJECTS THAT : 2 (1) INCREASE THE REUSE AN D RECYCLING OF BEVER AGE 3 CONTAINERS IN THE STATE; AND 4 (2) REDUCE THE VOLUME OF : 5 (I) SINGLE–USE BEVERAGE CONTAIN ERS SOLD IN THE STATE; 6 AND 7 (II) LITTER FROM BEVERAGE CONTAINERS IN THE STATE. 8 (C) THE DEPARTMENT SHALL ADMI NISTER THE GRANT PROGRAM. 9 (D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE GRANT 10 PROGRAM SHALL BE FUNDED FROM A PORTION OF THE UNCLAIMED DEPOSITS 11 TRANSFERRED TO THE SEPARATE ACCOUNT ESTABLISHED UNDER § 9–1707(F)(7) OF 12 THIS SUBTITLE. 13 (2) THE GRANT PROGRAM MAY AWARD UP TO $5,000,000 IN GRANTS 14 EACH YEAR FROM THE U NCLAIMED DEPOSITS TR ANSFERRED TO THE SEP ARATE 15 ACCOUNT ESTABLISHED UNDER § 9–1707(F)(7) OF THIS SUBTITLE. 16 (E) THE FOLLOWING ENTITIE S ARE ELIGIBLE FOR A GRANT UNDER THE 17 GRANT PROGRAM: 18 (1) A SCHOOL OR AN INSTITUTION OF HIGHE R EDUCATION; 19 (2) A NONPROFIT ORGANIZATI ON; 20 (3) A COUNTY OR MUNICIPAL CORPORATIO N; 21 (4) A FOR–PROFIT ORGANIZATION ; AND 22 (5) A PUBLIC–PRIVATE PARTNERSHIP . 23 (F) THE DEPARTMENT , IN CONSULTATION WITH THE ADVISORY COUNCIL, 24 SHALL ADOPT REGULATI ONS ESTABLISHING : 25 (1) AN APPLICATION PROCES S FOR AN ENTITY TO A PPLY FOR A 26 GRANT; 27 32 HOUSE BILL 1089 (2) THE CRITERIA FOR EVAL UATING AND AWARDING GRANTS; 1 (3) REPORTING AND EVALUAT ION REQUIREMENTS FOR A GRANT 2 AWARDED UNDER THIS S ECTION; AND 3 (4) ANY OTHER REQUIREMENT S THE DEPARTMENT DETERMINES 4 ARE NECESSARY FOR AD MINISTERING AND IMPL EMENTING GRANTS AWARDED 5 UNDER THE GRANT PROGRAM. 6 (G) THE DEPARTMENT SHALL BEGIN AWARDING GRANTS ON OR BEFORE 7 JANUARY 1, 2026. 8 9–1746. 9 IN ADDITION TO THE DUTIES AND REQUIREME NTS SPECIFIED IN THI S PART, 10 THE DEPARTMENT SHALL : 11 (1) IN CONSULTATION WITH THE ADVISORY COUNCIL: 12 (I) ESTABLISH CONVENIENCE STANDARDS FOR THE CO VERAGE 13 AND AVAILABILITY OF REDEMPTION OPTIONS ACROSS THE STATE; AND 14 (II) ENSURE THE CONVENIENC E STANDARDS PROVIDE 15 ACCESSIBLE REDEMPTIO N OPTIONS FOR DIFFERENTLY ABLED PEOPLE AND PEOPLE 16 WHO LIVE IN RURAL AREAS OR LOW–INCOME COMMUNITIES O F COLOR; AND 17 (2) ESTABLISH A SYSTEM FO R LARGE ON –PREMISES SELLERS TO 18 VERIFY THE SOURCE OF THE HIGH V OLUMES OF REDEEMABLE BEVERAGE 19 CONTAINERS REDEEMED BY THE ON–PREMISES SELLER. 20 9–1747. 21 (A) THERE IS A REDEEMABLE BEVERAGE CONTAINER RECYCLING 22 REFUND ADVISORY COUNCIL. 23 (B) THE ADVISORY COUNCIL CONSISTS OF T HE FOLLOWING MEMBERS , 24 DESIGNATED BY THE SECRETARY: 25 (1) ONE MEMBER REPRESENTI NG RECYCLING PROCESS ORS; 26 (2) ONE MEMBER REPRESENTI NG LOCAL GOVERNMENT AGE NCIES 27 RESPONSIBLE FOR RECY CLING PROGRAMS ; 28 HOUSE BILL 1089 33 (3) ONE MEMBER REPRESENTI NG GLASS MANUFACTURE RS OR A 1 GLASS MANUFACTURING TRADE ORGANIZATION ; 2 (4) ONE MEMBER REPRESENTI NG ALUMINUM MANUFACT URERS OR 3 AN ALUMINUM MANUFACT URING TRADE ORGANIZA TION; 4 (5) ONE MEMBER REPRESENTING PLASTIC MANUFACTURERS OR A 5 PLASTIC MANUFACTURIN G TRADE ORGANIZATION ; 6 (6) ONE MEMBER REPRESENTI NG BEVERAGE COMPANIE S; 7 (7) ONE MEMBER REPRESENTI NG PURCHASERS OF REC YCLED 8 CONTENT; 9 (8) ONE MEMBER REPRESENTI NG RETAILERS; 10 (9) ONE MEMBER REPRESENTING RESTAUR ANTS; 11 (10) ONE MEMBER REPRESENTI NG REVERSE VENDING MACHINE 12 BUSINESSES; 13 (11) ONE MEMBER REPRESENTI NG ACCOUNT –BASED BULK 14 PROCESSORS ; 15 (12) ONE MEMBER REPRESENTI NG BUSINESSES INVOLV ED IN REUSE 16 AND REFILL SYSTEMS ; 17 (13) AT LEAST ONE MEMBER REPRESENTI NG AN ENVIRONMENTAL 18 ADVOCACY ORGANIZATIO N; 19 (14) AT LEAST ONE MEMBER R EPRESENTING AN ENVIR ONMENTAL 20 JUSTICE ADVOCACY ORG ANIZATION; AND 21 (15) AT LEAST TWO MEMBERS WHO ARE MEMBERS OF THE G ENERAL 22 PUBLIC AND RESIDE IN THE STATE. 23 (C) THE SECRETARY SHALL DESIG NATE TWO COCHAIRS FR OM AMONG THE 24 MEMBERSHIP OF THE ADVISORY COUNCIL. 25 (D) THE DEPARTMENT SHALL PROV IDE STAFF FOR THE ADVISORY 26 COUNCIL. 27 (E) A MEMBER OF THE ADVISORY COUNCIL: 28 34 HOUSE BILL 1089 (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 : 5 (1) AT LEAST QUARTERLY EACH YEAR ; AND 6 (2) AS REQUESTED BY THE DEPARTMENT . 7 (G) THE ADVISORY COUNCIL SHALL: 8 (1) ADVISE THE DEPARTMENT ON DETERMI NING WHETHER TO 9 APPROVE A BEVERAGE C ONTAINER STEWARDSHIP PLAN; 10 (2) MAKE RECOMMENDATIONS TO THE DEPARTMENT ON THE 11 IMPLEMENTATION OF APPROVED BEVERAGE CONTAINER STEWARDSHIP PLANS ; 12 (3) REVIEW AND ADVISE THE DEPARTMENT ON THE ANNUAL 13 REPORTS SUBMITTED UN DER § 9–1742 OF THIS SUBTITLE; AND 14 (4) ADVISE THE DEPARTMENT ON THE IMP LEMENTATION , 15 ADMINISTRATION , AND PERFORMANCE OF T HE PROGRAM. 16 9–1748. 17 THE DEPARTMENT SHALL ADOP T REGULATIONS ON OR BEFORE JUNE 1, 2024, 18 TO CARRY OUT THIS PA RT. 19 9–1749. 20 (A) EXCEPT AS PROVIDED IN SUBSECTIONS (C) AND (D) OF THIS SECTION , 21 THE PROVISIONS OF §§ 9–334 THROUGH 9–344 OF THIS TITLE APPLY TO ENFORCE 22 VIOLATIONS OF THIS PART. 23 (B) A PENALTY MAY NOT BE I MPOSED ON A PRODUCER FOR FAILING TO 24 PROPERLY REGISTER WITH THE DEPARTMENT UNDER § 9–1740 OF THIS SUBTITLE , 25 INCLUDING FAILING TO IDENTIFY EACH BRA ND OF REDEEMABLE BEV ERAGE 26 CONTAINER THAT THE P RODUCER INTENDS TO S ELL, OFFER FOR SALE , OR 27 DISTRIBUTE IN THE STATE, UNLESS: 28 HOUSE BILL 1089 35 (1) THE DEPARTMENT FIRST ISSUES A WRITTEN NOT ICE OF THE 1 VIOLATION TO THE PRO DUCER; AND 2 (2) THE PRODUCER DOES NOT REGISTER WITHIN 90 DAYS AFTER 3 RECEIVING THE WRITTE N NOTICE. 4 (C) (1) A PERSON MAY NOT REDEEM, ATTEMPT TO REDEEM , RECEIVE, 5 STORE, TRANSPORT, DISTRIBUTE, OR OTHERWISE FACILITATE OR AID IN THE 6 REDEMPTION OF THE FO LLOWING MATERIALS WI TH AN INTENT TO DEFR AUD: 7 (I) A REDEEMABLE BEVERAGE CONTAINER THAT WAS SOLD IN 8 ANOTHER STATE ; 9 (II) A REDEEMABLE BEVERAGE CONTAINER THAT WAS 10 REJECTED FOR REDEMPT ION; 11 (III) LINE BREAKAGE; 12 (IV) A PREVIOUSLY REDEEMED REDEEMABLE BEVERAGE 13 CONTAINER; OR 14 (V) ANOTHER INELIGIBLE MA TERIAL. 15 (2) A PERSON MAY NOT DISPO SE OF A REDEEMED RED EEMABLE 16 BEVERAGE CONTAINER I N A LANDFILL OR AN I NCINERATOR . 17 (3) THE DEPARTMENT SHALL ESTA BLISH ADMINISTRATIVE 18 PENALTIES FOR A VIOL ATION OF THIS SUBSEC TION THAT ARE BASED ON THE 19 NUMBER OF BEVERAGE C ONTAINERS AND REFUND AMOUNTS INVOLVED . 20 (D) (1) BEGINNING JANUARY 1, 2028, A PRODUCER OR BEVERA GE 21 CONTAINER STEWARDSHI P ORGANIZATION THAT HAS NOT REACHE D THE 22 REDEMPTION RATES EST ABLISHED IN § 9–1736 OF THIS SUBTITLE FOR THE 23 IMMEDIATELY PRECEDIN G 2 YEARS IS SUBJECT TO AN ADMINISTRATIVE PE NALTY. 24 (2) EACH YEAR THAT A PROD UCER OR BEVERAGE CON TAINER 25 STEWARDSHIP ORGANIZA TION DOES NOT MEET T HE REDEMPTION RATE S 26 ESTABLISHED IN § 9–1736 OF THIS SUBTITLE IS A SEPARATE VIOLAT ION UNDER THIS 27 SUBSECTION. 28 (3) AN ADMINISTRATIVE PEN ALTY ASSESSED UNDER THIS 29 SUBSECTION SHALL EQU AL THE TOTAL NUMBER OF R EDEEMABLE BEVERAGE 30 36 HOUSE BILL 1089 CONTAINERS NEEDED TO BE REDEEMED TO MEET THE REDEMPTION RATES 1 ESTABLISHED IN § 9–1736 OF THIS SUBTITLE, MINUS THE NUMBER OF REDEEMABLE 2 BEVERAGE CONTAINERS ACTUALLY REDEEMED , MULTIPLIED BY 10 CENTS. 3 (E) THE DEPARTMENT MAY ALTER THE ADMINISTRATIVE P ENALTIES 4 ASSESSED UNDER SUBSE CTIONS (C) AND (D) OF THIS SECTION AS NECES SARY TO 5 ENSURE THAT THE PENA LTY AMOUNTS ASSESSED EXCEED THE COSTS OF 6 COMPLYING WITH THIS PART. 7 (F) PENALTIES COLLECTED UNDER THIS SECTION SHALL BE: 8 (1) TRANSFERRED TO THE STATE RECYCLING TRUST FUND UNDER § 9 9–1707(F) OF THIS SUBTITLE; AND 10 (2) USED ONLY TO COVER TH E DEPARTMENT ’S COSTS OF PLANNING, 11 IMPLEMENTING , ADMINISTERING , MONITORING , ENFORCING, AND EVALUATING 12 THE PROGRAM. 13 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 14 1, 2023. 15