EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *hb0284* HOUSE BILL 284 M3 3lr0666 SB 292/22 – FIN CF SB 222 By: Delegates Love, Foley, Forbes, Fraser–Hidalgo, D. Jones, Lehman, R. Lewis, Moon, Palakovich Carr, Patterson, Ruth, and Turner Introduced and read first time: January 25, 2023 Assigned to: Environment and Transportation and Economic Matters 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 before 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 responsibility 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 2 HOUSE BILL 284 Section 9–1702.2; and 9–2501 through 9–2510 to be under the new subtitle “Subtitle 1 25. Producer Responsibility for Packaging Materials” 2 Annotated Code of Maryland 3 (2014 Replacement Volume and 2022 Supplement) 4 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 5 That the Laws of Maryland read as follows: 6 Article – Environment 7 9–1702. 8 (a) There is an Office of Recycling created within the Department. 9 (b) The Secretary shall appoint a Director and sufficient staff to perform the 10 functions of the Office. After July 1, 1989, the number of staff shall be as provided in the 11 budget. 12 (c) The Secretary may adopt regulations to carry out the provisions of this 13 subtitle. 14 (d) The Office shall: 15 (1) Assist the counties in developing an acceptable recycling plan required 16 under § 9–1703 of this subtitle and § 9–505 of this title, including technical assistance to 17 the local governments; 18 (2) Coordinate the efforts of the State to facilitate the implementation of 19 the recycling goals at the county level; 20 (3) Review all recycling plans submitted as part of a county plan as 21 required under § 9–505 of this title and advise the Secretary on the adequacy of the 22 recycling plan; 23 (4) Administer the Statewide Electronics Recycling Program under Part IV 24 of this subtitle; [and] 25 (5) Promote the development of markets for recycled materials and 26 recycled products in the State in accordance with § 9–1702.1 of this subtitle; 27 (6) CONDUCT A STATEWIDE R ECYCLING NEEDS ASSES SMENT IN 28 ACCORDANCE WITH § 9–1702.2 OF THIS SUBTITLE; AND 29 (7) REVIEW AND APPROVE , IN CONSULTATION WITH THE PRODUCER 30 RESPONSIBILITY PLAN ADVISORY COUNCIL EST ABLISHED UNDER § 9–2505 OF THIS 31 TITLE, PRODUCER RESPONSIBIL ITY PLANS AND ANNUAL REPORTS SUBMITTED IN 32 HOUSE BILL 284 3 ACCORDANCE WITH SUBTITLE 25 OF THIS TITLE. 1 (e) Beginning on January 1, 1990, and biannually thereafter, the Office shall, in 2 coordination with the Maryland Environmental Service, study and report to the Governor 3 and, subject to § 2–1257 of the State Government Article, the General Assembly on: 4 (1) The identification and location of recycling centers, including an 5 analysis of existing recycling centers and the need to expand these facilities or construct 6 new recycling centers; 7 (2) Programs necessary to educate the public on the need to participate in 8 recycling efforts; 9 (3) The economics and financing of existing and proposed systems of waste 10 disposal and recycling; 11 (4) State procurement policies for the purchase of recycled materials; 12 (5) Programs necessary to reduce the amount of solid waste generated for 13 disposal by a State agency or unit; 14 (6) The liaison role with local governments, the federal government, and 15 the private sector; 16 (7) The percentage reduction in the amount of solid waste that has been 17 achieved by each county; and 18 (8) Economically feasible methods for the recycling of scrap automobile 19 tires, batteries, and white goods. 20 (f) (1) By December 1, 1988, the Office shall, in coordination with the 21 Maryland Environmental Service and the Governor’s Task Force on Solid Waste, make 22 recommendations to the General Assembly for the financing of a comprehensive system of 23 recycling at the State and local level, including funding for recycling centers, recycling 24 equipment, recycling education, and marketing strategies. 25 (2) After the financing recommendations are made under paragraph (1) of 26 this subsection, each county may submit to the Office and the Governor a detailed request 27 for funds necessary to assist in the development and implementation of a recycling plan 28 under guidelines developed by the Office. 29 (g) In studying feasible methods for the management and recycling of used tires 30 under subsection (e)(9) of this section, the Office of Recycling shall consult with the 31 appropriate industry, including representatives of: 32 (1) Tire manufacturers; 33 4 HOUSE BILL 284 (2) Tire dealers; and 1 (3) Tire recyclers. 2 9–1702.2. 3 (A) IN THIS SECTION , “ADVISORY COUNCIL ” AND “PRODUCER 4 RESPONSIBILITY ORGAN IZATION” HAVE THE MEANINGS ST ATED IN § 9–2501 OF THIS 5 TITLE. 6 (B) IN ACCORDANCE WITH SU BSECTION (D) OF THIS SECTION AND TO CARRY 7 OUT THE REQUIREMENTS OF § 9–1702(D)(6) OF THIS SUBTITLE, THE OFFICE SHALL 8 CONDUCT A STATEWIDE RECYCLING NEEDS ASSE SSMENT AT LEAST ONCE EVERY 10 9 YEARS OR AS RECOMMEN DED BY THE ADVISORY COUNCIL THAT INCLUDES : 10 (1) AN EVALUATION OF THE CURRENT INFRASTRUCTU RE AND 11 CAPACITY RELATED TO , NEED FOR, AND ASSOCIATED COSTS OF: 12 (I) RECYCLING ACCESS AND AVAILABILITY; 13 (II) COLLECTING AND HAULIN G RECYCLABLE OR 14 COMPOSTABLE MATERIAL S IN THE STATE; 15 (III) PROCESSING RECYCLABLE OR COMPOSTABLE MATER IALS 16 IN THE STATE; 17 (IV) TAKING ADVANTAGE OF F AVORABLE MARKET COND ITIONS 18 OR OTHER OPPORTUNITI ES FOR INCREASING RE CYCLING OR ORGANICS RECYCLING 19 IN THE STATE; 20 (V) IN COORDINATION WITH LOCAL GOVERNMENTS , CONSUMER 21 EDUCATION REGARDING RECYCLING, ORGANICS RECYCLING , AND CONTAMINATION 22 REDUCTION; 23 (VI) REUSE INFRASTRUCTURE ; AND 24 (VII) ORGANICS RECYCLING IN FRASTRUCTURE ; 25 (2) AN EVALUATION OF COMM INGLED RECYCLING PRO CESSING 26 FACILITY WORKER COND ITIONS, WAGES, AND BENEFITS; 27 (3) AN EVALUATION OF OPPO RTUNITIES IN THE REC YCLING SYSTEM 28 FOR WOMEN AND MINORI TY INDIVIDUALS; 29 HOUSE BILL 284 5 (4) AN EVALUATION OF LOCA L GOVERNMENT REQUIRE MENTS 1 RELATED TO MULTIFAMI LY RECYCLING SERVICE S AND THEIR IMPLEMEN TATION; 2 (5) THE SUFFICIENCY OF RECYCLIN G EDUCATION PROGRAMS 3 RELATIVE TO DESIRED EQUITY OUTCOMES ; 4 (6) AN EVALUATION OF OPPO RTUNITIES IN THE REC YCLING SYSTEM 5 FOR BUSINESSES IN TH E STATE; AND 6 (7) RECOMMENDATIONS FOR I MPROVING EQUITY AND EQUITABLE 7 OUTCOMES FOR UNDERSE RVED POPULATIONS IN THE STATE’S RECYCLING SYSTEM , 8 INCLUDING RECOMMENDA TIONS FOR NEW RESPON SIBILITIES OF PRODUC ER 9 RESPONSIBILITY ORGAN IZATIONS AND RECOMME NDATIONS 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 REC OMMENDED BY THE ADVI SORY COUNCIL , THE OFFICE 13 SHALL REPORT ON THE RESULTS OF THE MOST RECENT ASSESSMENT CO NDUCTED 14 UNDER THIS SECTION T O 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 ORGANIZATIO NS, 18 THE PRODUCER RESPONS IBILITY PLAN ADVISOR Y COUNCIL ESTABLISHE D 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 RESPONSIBIL ITY ORGANIZATIONS TO COVER THE COSTS ASSO CIATED 23 WITH CONDUCTING THE ASSESSMENTS REQUIRED UNDER THIS SE CTION. 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 HOUSE BILL 284 (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 counties 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 O F THE STATEWIDE RECY CLING 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 O F PRODUCER RESPONSIB ILITY PLAN REVIEW , 27 OVERSIGHT, AND ENFORCEMENT UNDE R SUBTITLE 25 OF THIS TITLE; AND 28 [(iv)] (VI) To carry out the purposes of the land management 29 administration. 30 HOUSE BILL 284 7 (7) (I) THERE SHALL BE A SEPA RATE 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 F OR 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 UNDE R 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 RESPONS IBILITY PLAN 20 ADVISORY COUNCIL EST ABLISHED 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 I S NOT MORE THAN 5 LITERS. 27 (D) “LOCAL GOVERNMENT ” MEANS: 28 (1) A COUNTY; OR 29 8 HOUSE BILL 284 (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 CON SUMER 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 DELIVERY FO OD 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 SUPP LIED IN CONNECTION W ITH: 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 APPLICA BLE FEDERAL LAW , RULE, OR REGULATION ; 21 (II) A FEDERALLY REGULATED DRUG, MEDICAL DEVICE , 22 BIOLOGIC, OR DIAGNOSTIC , INCLUDING ITEMS INTE NDED FOR ANIMALS ; OR 23 (III) A MEDICAL PRODUCT THAT IS REQUIRED TO BE ST ERILE OR 24 ENCLOSED IN PACKAGIN G WITH TAMPER –RESISTANT SEALS TO P ROTECT PUBLIC 25 HEALTH, INCLUDING MEDICAL PR ODUCTS INTENDED FOR ANIMALS. 26 (F) (1) “PRODUCER” MEANS A PERSON THAT IS RESPONSIBLE FOR 27 COMPLYING WI TH THIS SUBTITLE UND ER § 9–2503 OF THIS SUBTITLE. 28 HOUSE BILL 284 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 DEV ICE 4 AUTHORIZED FOR SALE BY THE U.S. FOOD AND DRUG ADMINISTRATION UNDER THE 5 FEDERAL FOOD, DRUG, AND COSMETIC ACT. 6 (G) “PRODUCER RESPONSIBILI TY 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 ORGANIZATI ON 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 ACCORDAN CE WITH § 9–2504(A) OF THIS 15 SUBTITLE. 16 (H) “PRODUCER RESPONSIBILI TY PLAN” MEANS A PACKAGING MA TERIALS 17 PRODUCER RESPONSIBIL ITY PLAN SUBMITTED T O THE DEPARTMENT BY A 18 PRODUCER OR PRODUCER RESPONSIBILITY ORGAN IZATION IN ACCORDANC E WITH 19 § 9–2504 OF THIS SUBTITLE. 20 9–2502. 21 IT IS THE INTENT OF THE GENERAL ASSEMBLY THAT THIS SU BTITLE PROVIDE 22 A FRAMEWORK FOR : 23 (1) MODERNIZING AND IMPRO VING WASTE AND RECYC LING SYSTEMS 24 IN THE STATE, INCLUDING BY FACILIT ATING: 25 (I) THE IMPROVEMENT OF RE USE, ORGANICS RECYCLING , AND 26 RECYCLING; 27 (II) THE IMPROVEMENT OF RE CYCLING MARKETS ; 28 10 HOUSE BILL 284 (III) THE REDUCTION OF WAST E; AND 1 (IV) AN INCREASE IN RECYCL ING RATES; AND 2 (2) REIMBURSING LOCAL GOV ERNMENTS FOR COSTS A SSOCIATED 3 WITH TRANSPORTING , COLLECTING, AND PROCESSING PACKA GING MATERIALS . 4 9–2503. 5 (A) (1) (I) THIS PARAGRAPH APPLIE S TO ITEMS SOLD IN P ACKAGING 6 MATERIALS AT A PHYSI CAL 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 ITE M. 11 (III) IF THE ITEM IS MANUFA CTURED BY A PERSON O THER THAN 12 THE BRAND OWNER , THE PRODUCER OF THE PACKAGING MATERIALS IS THE PERSON 13 THAT IS THE LICENSEE OF A BRAND OR TRADEM ARK UNDER WHICH AN I TEM IS SOLD, 14 OFFERED FOR SALE , OR DISTRIBUTED IN TH E STATE, WHETHER OR NOT THE 15 TRADEMARK IS REGISTE RED 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 I TEM IN THE STATE. 21 (2) (I) THIS PARAGRAPH APPLIE S TO ITEMS SOLD OR 22 DISTRIBUTED IN PACKA GING MATERIALS IN TH E 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 PROD UCER 26 ESTABLISHED UNDER PA RAGRAPH (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 SUBPARAGRAPHS (II) AND (III) OF THIS PARAGRAPH , THE PRODUCER OF THE 32 HOUSE BILL 284 11 PACKAGING MATERIALS IS THE PERSON THAT F IRST DISTRIBUTES THE PACKAGED 1 ITEM IN THE STATE. 2 (B) THIS SUBTITLE DOES NO T APPLY TO A PERSON THAT : 3 (1) (I) GENERATED LESS THAN $5,000,000 IN GROSS REVENUE 4 DURING THE IMMEDIATE LY PRECEDING CALENDAR YEAR; 5 (II) SOLD, OFFERED FOR SALE , OR DISTRIBUTED FOR S ALE IN 6 THE STATE DURING THE IMME DIATELY PRECEDING CA LENDAR YEAR LESS THA N 1 7 METRIC TON OF PACKAG ING MATERIALS ; 8 (III) 1. OWNS OR OPERATES A RE STAURANT, FOOD CART, OR 9 SIMILAR ESTABLISHMENT THAT : 10 A. IS HEADQUARTERED IN T HE STATE; AND 11 B. PRIMARILY SELLS TO ME MBERS OF THE PUBLIC FOOD 12 THAT IS GENERALLY IN TENDED TO BE CONSUME D IMMEDIATELY AND WI THOUT THE 13 NEED FOR FURTHER PRE PARATION, EITHER ON OR OFF THE PREMISES; AND 14 2. IS NOT A PRODUCER OF FOOD SERVICEWARE ; 15 (IV) OWNS OR OPERATES A SI NGLE RETAIL SALES 16 ESTABLISHMENT THAT : 17 1. HAS NO ONLINE SALES ; AND 18 2. IS NOT SUPPLIED OR OP ERATED AS PART OF A 19 FRANCHISE OR A CHAIN ; OR 20 (V) 1. IS LICENSED UNDER TITLE 2 OF THE ALCOHOLIC 21 BEVERAGES ARTICLE; AND 22 2. GENERATED LESS THAN $10,000,000 IN GROSS 23 REVENUE DURING THE I MMEDIATELY PRECEDING CALENDAR YEAR ; AND 24 (2) ON REQUEST BY THE DEPARTMENT , PROVIDES TO THE 25 DEPARTMENT SUFFICIENT INFORMATION TO DEMON STRATE THA T THE PRODUCER 26 MEETS THE CONDITIONS OF THIS SECTION. 27 (C) THIS SUBTITLE DOES NO T AFFECT THE AUTHORI TY OF THE STATE OR A 28 LOCAL JURISDICTION T O REGULATE THE SALE OR USE OF ANY PACKAG ING 29 12 HOUSE BILL 284 MATERIAL. 1 (D) THIS SUBTITLE DOES NO T PROHIBIT A PRODUCE R RESPONSIBILITY 2 ORGANIZATION FROM ES TABLISHING A DEPOSIT –RETURN SYSTEM AS ONE 3 STRATEGY FOR INCREAS ING THE CAPTURE AND RECYCLING OF BEVERAG E 4 CONTAINERS OR OTHER PACKAGING MATERIALS . 5 9–2504. 6 (A) (1) (I) BEGINNING JULY 1, 2024, AND EACH YEAR THEREA FTER, A 7 PRODUCER RESPONSIBILI TY ORGANIZATION SHAL L FILE A REGISTRATIO N FORM 8 WITH THE DEPARTMENT . 9 (II) THE REGISTRATION FORM SHALL INCLUDE : 10 1. A LIST OF THE RESPONSI BLE PARTIES 11 PARTICIPATING IN THE PRODUCER RESPONSIBIL ITY ORGANIZATION ; 12 2. A LIST OF THE BRANDS OF EACH RES PONSIBLE PARTY 13 PARTICIPATING IN THE PRODUCER RESPONSIBIL ITY ORGANIZATION ; 14 3. A LIST OF THE COVERED MATERIALS OF EACH 15 RESPONSIBLE PARTY PA RTICIPATING IN THE P RODUCER RESPONSIBILI TY 16 ORGANIZATION ; AND 17 4. THE NAME, ADDRESS, AND CONTACT INFORMATION 18 OF A PERSON RESPONSI BLE FOR ENSURING THE PRODUCER RESPONSIBIL ITY 19 ORGANIZATION ’S AND THE MEMBER RES PONSIBLE PARTIES ’ COMPLIANCE WITH 20 THIS SUBTITLE. 21 (III) AT THE TIME OF FILING THE REGISTRATION FOR M, A 22 PRODUCER RESPONSIBIL ITY ORGANIZA TION SHALL PAY TO TH E DEPARTMENT AN 23 ANNUAL REGISTRATION FEE TO COVER THE COS TS OF RECORD KEEPING , NOT TO 24 EXCEED $1,000. 25 (IV) AT THE TIME OF THE IN ITIAL SUBMISSION OF THE 26 REGISTRATION FORM BY A PRODUCER RESPONSIB ILITY ORGANIZATION , THE 27 ORGANIZATION SHALL HAVE 60 DAYS TO PAY TO THE DEPARTMENT THE ESTIMA TED 28 COST OF CONDUCTING T HE INITIAL STATEWIDE RECYCLING NEEDS ASSE SSMENT 29 REQUIRED UNDER § 9–1702.2 OF THIS TITLE. 30 (V) IF MORE THAN ONE PROD UCER RESPONSIBILITY 31 ORGANIZATION REGISTE RS WITH THE DEPARTME NT, THE DEPARTMENT SHALL 32 HOUSE BILL 284 13 EQUALLY DIVIDE THE C OST OF THE STATEWIDE RECYCLING NEEDS ASSE SSMENT. 1 (2) (I) ON OR BEFORE APRIL 1, 2026, EACH PRODUCER SHALL , 2 INDIVIDUALLY OR AS P ART OF A PRODUCER RE SPONSIBILITY ORGANIZ ATION, 3 SUBMIT A PRODUCER RE SPONSIBILITY PL AN TO THE DEPARTMENT FOR REVIEW 4 AND APPROVAL . 5 (II) IF MORE THAN ONE PROD UCER RESPONSIBILITY 6 ORGANIZATION SUBMITS A PRODUCER RESPONSIB ILITY PLAN TO THE 7 DEPARTMENT : 8 1. THE PRODUCER RESPONSI BILITY ORGANIZATIONS 9 SHALL COORDINATE WIT H THE DEPARTMENT AN D LOCAL GOVERNMENTS TO 10 ENSURE THAT : 11 A. RECYCLING SERVICES FO R RESIDENTS IN THE STATE 12 ARE PROVIDED IN A SE AMLESS MANNER ; AND 13 B. PUBLIC OUTREACH , EDUCATION, AND 14 COMMUNICATION ARE PR OVIDED IN A CONSISTE NT MANNER; AND 15 2. THE PRODUCER RESPONSI BILITY ORGANIZATIONS 16 MAY CREATE A REPRESE NTATIVE ORGANIZATION TO REPRESENT ALL 17 PARTICIPATING PRODUC ER RESPONSIBILITY OR GANIZATIONS TO IMPLE MENT THE 18 REQUIREMENTS OF THIS SUBTITLE. 19 (III) BEFORE SUBMITTING THE PLAN REQUIRED UNDER THIS 20 SUBSECTION TO THE DEPARTMENT, A PRODUCER OR PRODUC ER RESPONSIBILITY 21 ORGANIZATION SHALL : 22 1. CONSULT WITH THE ADVI SORY COUNCIL 23 ESTABLISHED UNDER § 9–2505 OF THIS SUBTITLE; AND 24 2. CONSIDER THE WRITTEN RECOMMENDATIONS OF 25 THE ADVISORY COUNCIL PROVIDED UNDER § 9–2505(G)(6) OF THIS SUBTITLE AND 26 RESPOND IN WRITING T O THE ADVISORY COUNC IL. 27 (3) ON OR AFTER A DATE ES TABLISHED IN REGULAT IONS ADOPTED 28 BY THE DEPARTMENT UNDER § 9–2509 OF THIS SUBTITLE , A PRODUCER MAY NOT 29 SELL, OFFER FOR SALE , DISTRIBUTE, OR IMPORT FOR SALE O R DISTRIBUTION 30 PACKAGING MATERIALS FOR USE IN THE STATE UNLESS THE PROD UCER, 31 INDIVIDUALLY OR AS P ART OF A PRODUCER RE SPONSIBILITY ORGANIZ ATION, HAS 32 AN APPROVED PRODUCER RESPONSIBILITY PLAN ON FILE WITH THE DEPARTMENT . 33 14 HOUSE BILL 284 (B) A PRODUCER RESPONSIBIL ITY PLAN SHALL: 1 (1) IDENTIFY THE PRODUCER S COVERED BY THE PLA N, INCLUDING 2 THE CONTACT INFORMAT ION FOR EACH PARTICI PATING PRODUCER AND THE 3 PRODUCER RESPONSIBIL ITY ORGANIZATION ; 4 (2) IDENTIFY EACH BRAND O F PACKAGING MATERIAL S COVERED BY 5 THE PLAN; 6 (3) REQUIRE, IN ACCORDANCE WITH SUBS ECTION (C) OF THIS 7 SECTION, ACHIEVEMENT WITHIN 5 YEARS AFTER THE DATE ON WHICH THE FIRST 8 VERSION OF THE PLAN IS APPROVED AND ESTA BLISH THE FOLLOWING 9 PERFORMANCE GOALS , AS RELEVANT, FOR EACH PACKAGING M ATERIAL TYPE: 10 (I) POSTCONSUMER RECYCLED CONTENT GOA LS; 11 (II) RECYCLABILITY AND REC YCLING RATE GOALS ; 12 (III) REUSE GOALS; 13 (IV) PACKAGING REDUCTION G OALS; 14 (V) COMPOST ACCESS OR COM POST RATE GOALS , IF 15 APPLICABLE AND TECHN OLOGICALLY AND ENVIR ONMENTALLY FEASIBLE ; 16 (VI) CONTAMINATION REDUCTIO N RATE GOALS; 17 (VII) GREENHOUSE GAS REDUCT ION GOALS; AND 18 (VIII) ANY OTHER GOAL THAT R EDUCES PACKAGING MAT ERIAL 19 WASTE AND IS JUSTIFI ED IN THE PLAN; 20 (4) REQUIRE EACH PARTICIP ATING PRODUCER TO RE DUCE ALL 21 PACKAGING MATERIAL W ASTE TO THE MAXIMUM EXT ENT PRACTICABLE , AND BY 22 NOT LESS THAN 25% FOR EACH PACKAGING M ATERIAL TYPE, WITHIN 5 YEARS AFTER 23 THE DATE ON WHICH TH E FIRST VERSION OF T HE PLAN IS APPROVED ; 24 (5) DESCRIBE, IN ACCORDANCE WITH S UBSECTION (D) OF THIS 25 SECTION, THE FINANCING METHOD THAT WILL BE USED TO IMPLEMENT THE PLAN; 26 (6) DESCRIBE HOW THE PERFORMANCE GOAL S ESTABLISHED UNDER 27 ITEM (3) OF THIS SUBSECTION W ILL BE MET OR EXCEED ED; 28 HOUSE BILL 284 15 (7) DESCRIBE HOW STAKEHOLDER COMMENTS WERE CONSIDERED IN 1 THE DEVELOPMENT OF T HE PLAN; 2 (8) DESCRIBE HOW STAFFING AND ADMINISTERING TH E 3 IMPLEMENTATION OF TH E PLAN WILL BE HANDL ED; 4 (9) DESCRIBE THE STRATEGY FOR REDUCING PACKAGI NG 5 MATERIALS IN THE STATE, INCLUDING HOW PRODUC ERS PARTICIPATING IN A PLAN 6 WILL WORK TOGETHER T O REDUCE PACKAGING THROUGH PRODUCT DESI GN AND 7 PROGRAM INNOVATIONS ; 8 (10) DESCRIBE THE ACTIONS TAKEN OR THAT WILL B E TAKEN FOR 9 PUBLIC OUTREACH , EDUCATION, AND COMMUNICATION , TAKING INTO ACCOUNT 10 THAT PUBLIC OUTREACH , EDUCATION, AND COMMUNICATION SH ALL: 11 (I) PROMOTE THE RE SPONSIBLE END –OF–LIFE MANAGEMENT 12 OF PACKAGING MATERIALS; 13 (II) PROVIDE INFORMATION O N HOW TO PREVENT LIT TER OF 14 PACKAGING MATERIALS; 15 (III) PROVIDE RECYCLING AND ORGANICS RECYCLING 16 INSTRUCTIONS THAT AR E, TO THE EXTENT PRACTI CABLE: 17 1. CONSISTENT S TATEWIDE, TAKING INTO ACCOUNT 18 DIFFERENCES AMONG LO CAL LAWS AND PROCESS ING CAPABILITIES; 19 2. EASY TO UNDERSTAND ; AND 20 3. EASILY ACCESSIBLE ; AND 21 (IV) PROVIDE FOR OUTREACH AND EDUCATION THAT A RE: 22 1. DESIGNED TO ACHIEVE PACKAGING MATERIALS 23 MANAGEMENT GOALS AND REQUIREMENTS , INCLUDING THE PREVEN TION OF 24 CONTAMINATION OF PACKAGING MATERIALS; 25 2. COORDINATED ACROSS PR OGRAMS TO AVOID 26 CONFUSION FOR CONSUM ERS; AND 27 3. DEVELOPED IN CONSULTA TION WITH LOCAL 28 GOVERNMENTS AND OTHE R STAKEHOLDERS ; 29 16 HOUSE BILL 284 (11) DESCRIBE, IN ACCORDANCE WITH S UBSECTION (E) OF THIS 1 SECTION, THE AMOUNT OF FUNDIN G THAT WILL BE USED FOR IMPROVING REUSE , 2 ORGANICS RECYCLING , AND RECYCLING IN THE STATE; 3 (12) DESCRIBE THE PROCESS BY WHICH A LOCAL GOV ERNMENT MAY 4 REQUEST REIMBURSEMENT FOR CO STS ASSOCIATED WITH TRANSPORTING , 5 COLLECTING, AND PROCESSING PACKA GING MATERIALS THAT ARE IDENTIFIED IN 6 THE PLAN, INCLUDING: 7 (I) THE PROCESS BY WHICH THE REQUEST WILL BE REVIEWED; 8 (II) THE PROCESS FOR APPRO VING OR DENYING A RE QUEST 9 FOR REIMBURSEMENT ; 10 (III) THE SCHEDULE FOR PROV IDING REIMBURSEMENT THAT 11 INCLUDES REIMBURSEME NT ON AT LEAST A QUA RTERLY BASIS; AND 12 (IV) THE PROCESS FOR PROVI DING REIMBURSEMENT F OR 13 MULTIPLE BRANDS OF P ACKAGING MATERIALS ; 14 (13) (I) PROVIDE THE WRITTEN RECOMMENDATI ONS FROM THE 15 ADVISORY COUNCIL PRO VIDED UNDER § 9–2505(G)(6) OF THIS SUBTITLE AND THE 16 PRODUCER RESPONSIBIL ITY ORGANIZATION ’S WRITTEN RESPONSE T O THE 17 ADVISORY COUNCIL ; AND 18 (II) DESCRIBE HOW THE WRIT TEN RECOMMENDATIONS FROM 19 THE ADVISOR Y COUNCIL WERE CONSI DERED AND ADDRESSED IN THE 20 DEVELOPMENT OF THE P LAN; AND 21 (14) INCLUDE ANY OTHER INF ORMATION THAT IS REQ UIRED BY THE 22 DEPARTMENT . 23 (C) BASED ON THE RESULTS OF THE STATEWIDE REC YCLING NEEDS 24 ASSESSMENT CONDUCTED UNDER § 9–1702.2 OF THIS TITLE, THE DEPARTMENT , IN 25 COORDINATION WITH A PRODUCER RESPONSIBIL ITY ORGANIZATION , SHALL 26 ESTABLISH PERFORMANC E GOALS FOR EACH PAC KAGING MATERIAL TYPE USING A 27 BASELINE YEAR THAT I S INFORMED BY THE ST ATEWIDE RECYCLING NE EDS 28 ASSESSMENT , INCLUDING ESTABLISHI NG RECYCLING RATE GOA LS FOR EACH 29 PACKAGING MATERIAL T YPE, AT 5–, 10–, AND 15–YEAR INTERVALS . 30 (D) (1) THE FINANCING METHOD THAT WILL BE USED BY A PRODUCER 31 RESPONSIBILITY ORGAN IZATION TO IMPLEMENT A PRODUCER RESPONSIB ILITY 32 HOUSE BILL 284 17 PLAN SHALL: 1 (I) PROVIDE THE M ETHOD FOR EITHER DIR ECT INVESTMENTS 2 OR REIMBURSEMENTS FO R IMPROVING INFRASTR UCTURE FOR REUSE , ORGANICS 3 RECYCLING, AND RECYCLING IN ACC ORDANCE WITH SUBSECT ION (B)(11) OF THIS 4 SECTION; 5 (II) PROVIDE A REASONABLE ANNUAL RATE PER TON OF 6 RECYCLED OR COMPOST ED PACKAGING MATERIA LS FOR REIMBURSING L OCAL 7 GOVERNMENTS FOR COST S ASSOCIATED WITH : 8 1. UP TO 50% OF THE COST OF COLLE CTING PACKAGING 9 MATERIALS THAT ARE I DENTIFIED IN THE PLA N; 10 2. TRANSPORTING RECYCLAB LE OR COMPOSTABLE 11 PACKAGING MATERIALS TO A RECYCLING OR OR GANICS RECYCLING FAC ILITY; 12 3. PROCESSING PACKAGING MATERIALS, INCLUDING 13 REMOVING CONTAMINATI ON; AND 14 4. RECYCLING PACKAGING M ATERIALS THAT ARE 15 DIVERTED TO BE RECYC LED OR COMPOSTED IN THE STATE; 16 (III) ESTABLISH A FEE STRUC TURE FOR PARTICIPATI NG 17 PRODUCERS THAT IS SE T IN A MANNER TO COV ER COSTS ASSOCIATED WITH: 18 1. IMPLEMENTING THE PLAN , INCLUDING THE 19 ADMINISTRATIVE COSTS OF A PRODUCER RESPON SIBILITY ORGANIZATIO N; 20 2. REIMBURSING LOCAL GOV ERNMENTS FOR COSTS I N 21 ACCORDANCE WITH ITEM (II) OF THIS PARAGRAPH ; 22 3. THE ADMINISTRATION , REVIEW, OVERSIGHT, AND 23 ENFORCEMENT OF THE P LAN BY THE DEPARTMENT ; 24 4. IMPLEMENTING THE STRA TEGY IN THE PLAN FOR 25 REDUCING PACKA GING MATERIALS IN AC CORDANCE WITH SUBSEC TION (B)(9) OF 26 THIS SECTION; AND 27 5. IMPLEMENTING THE STRA TEGY IN THE PLAN FOR 28 IMPROVING REUSE , ORGANICS RECYCLING , AND RECYCLING IN THE STATE IN 29 ACCORDANCE WITH SUBS ECTION (B)(11) OF THIS SECTION; 30 18 HOUSE BILL 284 (IV) 1. DESCRIBE THE INCENTIV ES TO ENCOURAGE 1 PARTICIPATING PRODUC ERS TO ENGAGE IN WAS TE REDUCTION AND REC YCLING 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 INDEP ENDENT FINANCIAL AUD ITOR, 7 AS DESIGNATED BY THE DEPARTMENT , TO ENSURE THAT THE C OSTS OF 8 IMPLEMENTING THE PLA N ARE COVERED ; AND 9 (VI) MEET ANY OTHER REQUIR EMENT ESTABLISHED BY THE 10 DEPARTMENT BY REGULAT ION. 11 (2) THE REIMBURSEMENT RATE ESTABLISHED UND ER PARAGRAPH 12 (1)(II) OF THIS SUBSECTION S HALL BE: 13 (I) BASED ON: 14 1. THE POPULATION SIZE O F A LOCAL JURISDICTI ON; 15 2. THE DISTANCE TO THE N EAREST RECYCLING OR 16 ORGANICS RECYCLING F ACILITY; 17 3. THE COMMODITY VALUE O F RECYCLED PACKAGING 18 MATERIALS; AND 19 4. ANY SOCIOECONOMIC OR GEOGRAPHIC FACTOR , AS 20 DETERMINED BY THE DEPARTMENT ; AND 21 (II) DISCOUNTED EQUIVALENT TO THE ESTIMATED ANN UAL 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 S HALL BE VARIABLE BAS ED ON: 27 (I) COSTS ASSOCIATED WITH TRANSPORTING , COLLECTING, 28 AND PROCESSING PACKA GING MATERIALS; 29 (II) AN ECO–MODULATION OF FEES , INCLUDING ESTABLISHI NG: 30 HOUSE BILL 284 19 1. A HIGHER FEE FOR PACKA GING MATERIALS WITH 1 LOW RECYCLABILITY OR RECYCLED CONTENT ; AND 2 2. A DISCOUNTED FEE FOR P ACKAGING MATERIALS 3 WITH HIGH RECYCLABIL ITY OR RECYCLED CONT ENT; AND 4 (III) ANY OTHER FACTOR , AS DETERMINED BY THE 5 DEPARTMENT . 6 (4) (I) A PRODUCER RESPONSIBIL ITY ORGANIZATION SHA LL 7 RETAIN ANY FEE COLLE CTED UNDER THIS SUBS ECTION IN ITS OWN AC COUNT. 8 (II) THE DEPARTMENT MAY REQUES T AT ANY TIME AN AUD IT OF 9 THE FINANCIAL RECORDS OF A PRODUCER RESPONSIB ILITY ORGANIZATION . 10 (E) THE FUNDING THAT WILL BE USED FOR IMPROVIN G REUSE, ORGANICS 11 RECYCLING, AND RECYCLING SHALL INCLUDE INVESTMENT I N MARKET 12 DEVELOPMENT AND EXIS TING AND FUTURE REUS E, ORGANICS RECYCLING , AND 13 RECYCLING INFRASTRUCTU RE, GIVING PRIORITY TO I NVESTMENT IN EXISTIN G 14 INFRASTRUCTURE , INCLUDING: 15 (1) INSTALLING OR UPGRADI NG EQUIPMENT TO IMPR OVE THE 16 SORTING OF PACKAGING MATERIALS AT EXISTIN G SORTING AND PROCES SING 17 FACILITIES; 18 (2) MITIGATING THE IMPACT S OF PACKAGING MATERIA LS ON OTHER 19 COMMODITIES AT EXIST ING SORTING AND PROC ESSING FACILITIES; AND 20 (3) CAPITAL EXPENDITURES FOR NEW TECHNOLOGY , EQUIPMENT, 21 AND FACILITIES, BASED ON THE RESULTS OF THE STATEWIDE REC YCLING NEEDS 22 ASSESSMENT CONDUCTED UNDER § 9–1702.2 OF THIS TITLE. 23 (F) THE DEPARTMENT SHALL REVI EW: 24 (1) THE PRODUCER RESPONSI BILITY PLAN REQUIRED UNDER 25 SUBSECTION (A) OF THIS SECTION; AND 26 (2) THE WORK PRODUCT OF T HE INDEPENDENT FINAN CIAL AUDITOR 27 DESIGNATED BY THE DEPARTMENT TO EVALUAT E THE FINANCING COMPONENT OF 28 THE PRODUCER RESPONS IBILITY PLAN UNDER S UBSECTION (D)(1)(V) OF THIS 29 SECTION. 30 20 HOUSE BILL 284 (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 CONS IDER 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 TH E COSTS OF IMPLEMENTING THE PLAN; AND 8 (II) THE PRODUCER RESPONSI BILITY 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 U NDER THIS SECTION , A PRODUCER 13 RESPONSIBILITY ORGAN IZATION SHALL PAY TO THE DEPARTMENT : 14 (I) THE DEPARTMENT ’S COST OF REVIEWING THE PLAN; 15 (II) THE DEPARTMENT ’S ESTIMATED COSTS OF 16 ADMINISTERING , OVERSEEING, AND ENFORCING THE PL AN BETWEEN THE INITIAL 17 DATE OF APPROVAL AND THE DATE OF THE INIT IAL ANNUAL REPORT RE QUIRED 18 UNDER § 9–2507 OF THIS SUBTITLE. 19 (H) WITHIN 6 MONTHS AFTER THE DAT E A PRODUCER RESPONS IBILITY 20 PLAN IS APPROVED UND ER THIS SECTION , A PRODUCER RESPONSIB ILITY 21 ORGANIZAT ION SHALL IMPLEMENT THE PLAN. 22 (I) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION 23 AND SUBJECT TO PARAG RAPH (3) OF THIS SUBSECTION , AN APPROVED PRODUCER 24 RESPONSIBILITY PLAN SHALL EXPIRE AFTER 5 YEARS. 25 (2) A PRODUCER RESPONSIBIL ITY PLAN MAY C ONTINUE AFTER 5 26 YEARS IF IT IS RENEG OTIATED, RENEWED, OR AMENDED AND APPRO VED BY THE 27 DEPARTMENT IN ACCORDA NCE WITH THIS SUBTIT LE. 28 (3) THE DEPARTMENT MAY RESCIN D APPROVAL OF A PROD UCER 29 RESPONSIBILITY PLAN AT ANY TIME FOR GOOD CAUSE. 30 (4) IF THE DEPARTMENT RESCINDS AN APP ROVAL OF A PRODUCER 31 RESPONSIBILITY PLAN UNDER PARAGRAPH (3) OF THIS SUBSECTION , THE 32 HOUSE BILL 284 21 PRODUCER, OR IF APPLICABLE , THE PRODUCER RESPONS IBILITY ORGANIZATION 1 MAY AMEND THE PLAN A ND SUBMIT IT TO THE DEPARTMENT FOR APPROV AL IN 2 ACCORDANCE WITH THIS SUBTITLE. 3 (5) IF, BASED ON THE ANNUAL REPORT SUBMITTED UND ER § 9–2507 4 OF THIS SUBTITLE , THE PERFORMANCE GOAL S ESTABLISHED UNDER SUBSECTION 5 (B)(3) OF THIS SECTION HAVE NOT BEEN ACHIEVED , THE DEPARTMENT MAY : 6 (I) REQUIRE THAT A PRODUC ER RESPONSIB ILITY 7 ORGANIZATION AMEND T HE PRODUCER RESPONSI BILITY PLAN; AND 8 (II) IMPOSE AN ADMINISTRAT IVE PENALTY ON A PRO DUCER 9 RESPONSIBILITY ORGAN IZATION IN ACCORDANC E WITH § 9–2510(C) OF THIS 10 SUBTITLE. 11 (6) IF THE DEPARTMENT REQUIRES A PRODUCER RESPONSIBIL ITY 12 ORGANIZATION TO AMEN D THE PRODUCER RESPO NSIBILITY PLAN UNDER 13 PARAGRAPH (5) OF THIS SUBSECTION , THE PRODUCER RESPONS IBILITY 14 ORGANIZATION MUST CO VER THE COST OF THE DEPARTMENT ’S REVIEW AND 15 SUPPLEMENTAL WORK ON THE PLAN. 16 9–2505. 17 (A) THERE IS A PRODUCER R ESPONSIBILITY PLAN AD VISORY COUNCIL . 18 (B) THE PURPOSE OF THE AD VISORY COUNCIL IS TO PROVIDE ADVICE TO 19 THE DEPARTMENT AND PRODUC ER RESPONSIBILITY OR GANIZATIONS FOR 20 DRAFTING, AMENDING, AND IMPLEMENTING PRO DUCER RESPONSIBILITY PLANS. 21 (C) (1) THE ADVISORY COUNCIL SHALL CONSIS T OF A BROAD RANGE O F 22 INTERESTED STAKEHOLD ERS APPOINTED BY THE SECRETARY, INCLUDING: 23 (I) REPRESENTATIVES FROM THE FOLLOWING INDUST RIES OR 24 ENTITIES IN THE STATE: 25 1. LOCAL GOVERNMENT AGEN CIES RESPONSIBLE FOR 26 RECYCLING PROGRAMS ; 27 2. RECYCLABLES AND COMPO STABLE MATERIALS 28 COLLECTORS ; 29 3. RECYCLING PROCESSORS ; 30 22 HOUSE BILL 284 4. ORGANICS RECYCLING PR OCESSORS; 1 5. THE CONSUMER GOODS SE CTOR; 2 6. RETAIL AND SMALL BUSI NESSES; AND 3 7. MATERIAL–ORIENTED TRADE GROUP S; 4 (II) A REPRESENTATIVE FROM EACH PRODUCER 5 RESPONSIBILITY ORGAN IZATION; 6 (III) REPRESENTATIVES OF AT LEAST TWO NONPROFIT 7 ORGANIZATIONS IN THE STATE WITH MISSIONS R ELATED TO REDUCING W ASTE; 8 (IV) AT LEAST ONE REPRESEN TATIVE OF AN ENVIRON MENTAL 9 ADVOCACY ORGANIZATIO N; 10 (V) AT LEAST ONE REPRESEN TATIVE OF AN ENVIRON MENTAL 11 JUSTICE ADVOCACY ORG ANIZATION; AND 12 (VI) AT LEAST TWO MEMBERS OF THE PUBLIC WHO RE SIDE IN 13 THE STATE. 14 (2) IN APPOINTING MEM BERS TO THE ADVISORY COUNCIL, THE 15 SECRETARY SHALL , TO THE EXTENT PRACTI CABLE, ENSURE THAT THE 16 MEMBERSHIP OF THE AD VISORY COUNCIL REPRE SENTS: 17 (I) ALL GEOGRAPHIC REGION S OF THE STATE; 18 (II) LARGE AND SMALL COUNT IES AND MUNICIPALITI ES; AND 19 (III) THE VARIABILITY IN HO W WASTE AND RECYCLAB LE AND 20 COMPOSTABLE MATERIAL S 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 O F THE 23 ADVISORY COUNCIL . 24 (D) FROM AMONG THE ADVISO RY COUNCIL MEMBERS , THE SECRETARY 25 SHALL DESIGNATE TWO REPRESENTATIVES TO S ERVE AS COCHAIRS . 26 (E) A MEMBER OF THE ADVISO RY COUNCIL: 27 HOUSE BILL 284 23 (1) MAY NOT RECEIVE COMPE NSATION AS A MEMBER OF THE 1 ADVISORY COUNCIL ; BUT 2 (2) IS ENTITLED TO REI MBURSEMENT FOR EXPEN SES 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 RESP ONSIBILITY 7 ORGANIZATION , PROVIDE ADVICE REGAR DING THE DRAFTING OR AMENDING OF A 8 PRODUCER RESPONSIBIL ITY PLAN REQUIRED UN DER § 9–2504 OF THIS SUBTITLE; 9 (2) RECEIVE AND REVIEW TH E PRODUCER RESPONSIB ILITY PLANS 10 SUBMITTED IN ACCORDA NCE 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 RESPONSIBIL ITY PLAN APPROVAL ; 15 (5) MAKE RECOMMENDATIONS TO THE DEPARTMENT AND 16 PRODUCER RE SPONSIBILITY ORGANIZ ATIONS REGARDING PRO DUCER 17 RESPONSIBILITY PLAN IMPLEMENTATION ; AND 18 (6) PROVIDE WRITTEN RECOM MENDATIONS REGARDING THE 19 PRODUCER RESPONSIBIL ITY PLAN, INCLUDING ANY UPDATE OR REVISION TO AN 20 APPROVED PLAN , TO A PRODUCER RESPON SIBILITY ORGA NIZATION BEFORE 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 WI TH 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 PROCESSING 30 PACKAGING MATERIALS THAT ARE I DENTIFIED UNDER THE PLAN, INCLUDING COSTS 31 ASSOCIATED WITH RECY CLING SERVICES FOR P UBLIC PLACES AND PUB LIC 32 24 HOUSE BILL 284 HOUSING. 1 (B) (1) IF MULTIPLE PRODUCER RESPONSIBILITY ORGAN IZATIONS 2 REGISTER APPROVED PR ODUCER RESPONSIBILIT Y PLANS WITH THE DEPARTMENT 3 IN ACCORDANCE WITH T HIS SUBTITLE , THE PRODUCER RESPONS IBILITY 4 ORGANIZATIONS SHALL COORDINATE REIMBURSE MENT REQUESTED UNDER THIS 5 SECTION. 6 (2) MULTIPLE PRODUCER RES PONSIBILITY ORGANIZA TIONS MAY 7 ESTABLISH A THIRD –PARTY ENTITY TO COOR DINATE REIMBURS EMENT IN 8 ACCORDANCE WITH THIS SUBSECTION. 9 (C) THIS SECTION DOES NOT AUTHORIZE A LOCAL GO VERNMENT TO 10 REQUEST REIMBURSEMEN T FROM A PRODUCER RE SPONSIBILITY ORGANIZ ATION 11 FOR COSTS ASSOCIATED WITH COMPOSTING MATE RIALS THAT ARE NOT P ACKAGING 12 MATERIALS, INCLUDING FOOD WASTE AND OTHER ORGANIC MA TERIALS. 13 9–2507. 14 (A) BEGINNING MARCH 1, 2027, EACH PRODUCER RESPON SIBILITY 15 ORGANIZATION THAT HA S AN APPROVED PRODUC ER RESPONSIBILITY PL AN ON FILE 16 WITH THE DEPARTMENT SHALL REPO RT ANNUALLY TO THE DEPARTMENT ON THE 17 PROGRESS TOWARD MEET ING PLAN REQUIREMENT S AND GOALS FOR THE 18 IMMEDIATELY PRECEDIN G CALENDAR YEAR . 19 (B) THE REPORT REQUIRED U NDER SUBSECTION (A) OF THIS SECTION 20 SHALL INCLUDE : 21 (1) A DETAILED DESCRIPTION OF THE REIMBURSEMENT METHODS 22 USED FOR COLLECTING , TRANSPORTING , AND PROCESSING PACKAGING 23 MATERIALS; 24 (2) (I) THE STATUS ON ACHIEVI NG THE PERFORMANCE G OALS 25 ESTABLISHED UNDER § 9–2504(B)(3) OF THIS SUBTITLE; AND 26 (II) IF THE GOALS HAVE NOT BEEN ACHIEVED , A DESCRIPTION 27 OF THE ACTIONS PROPO SED TO ACHIEVE THE GOALS; 28 (3) THE AMOUNT OF EACH PACKAGING MATERIAL TYPE COLLEC TED 29 IN THE STATE, INCLUDING THE METHOD OF DISPOSITION OF EA CH PACKAGING 30 MATERIAL TYPE ; 31 HOUSE BILL 284 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 REDEMPTIO N RATE AND EFFECTIVE RATE OF 3 RECYCLING OF BEVERAG E CONTAINERS BY MATE RIAL TYPE, AFTER SUBTRACTING 4 CONTAMINATION RATES , AND BY NUMBER OF UNI TS AND WEIGHT ; AND 5 (III) 1. A DESCRIPTION OF THE L OCATION OF COLLECTIO N 6 FACILITIES OR POINTS AND SORTING AND PROCESSI NG FACILITIES FOR BE VERAGE 7 CONTAINERS; 8 2. A DESCRIPTION OF ANY I MPROVEMENTS MADE IN THE 9 REPORTING YEAR TO IN CREASE THE EASE AND CONVENIENCE FOR CONS UMERS TO 10 RETURN BEVERAGE CONT AINERS; 11 3. A DESCRIPTION OF UNDERSERVED AREAS AND 12 ACTIONS THAT WILL BE TAKEN BY THE PRODUCE R RESPONSIBILITY ORG ANIZATION 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 IMP LEMENTING THE PLAN , AS DETERMINED 18 BY AN INDEPENDENT FI NANCIAL AUDITOR INCL UDING: 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 E NTITIES; 25 (7) A DETAILED DESCRIPTION OF THE ACTIONS TAKEN AND AN 26 EVALUATION OF THE ME THODS USED TO DISSEM INATE EDUCATIONAL MA TERIALS, 27 INCLUDING RECOMMENDA TIONS, IF ANY, FOR HOW THE EDUCATIO NAL COMPONENT 28 OF THE PLAN CAN BE I MPROVED; 29 (8) A DETAILED DESCRIPTION OF INVESTMENTS MADE IN MARKET 30 DEVELOPMENT AND FOR IMPROVING REUSE, ORGANICS RECYCLING , AND 31 RECYCLING INFRASTRUC TURE; 32 26 HOUSE BILL 284 (9) PROOF OF A THIRD –PARTY AUDIT OF : 1 (I) THE REDUCTION IN PACK AGING REPORTED ; 2 (II) THE DATA USED TO DETE RMINE THE STATUS OF ACHIEVING 3 PERFORMANCE GOALS ; 4 (III) THE AMOUNT OF EACH P ACKAGING MATERIAL TY PE 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 REDEMPTIO N 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 FOLLOWIN G 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 MA Y NOT BE SUBJECT TO PUBLIC 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 ORGAN IZATION. 23 9–2508. 24 ANY PERSON PARTICIPAT ING IN A PRODUCER RE SPONSIBILITY PLAN IN 25 COMPLIANCE WITH THIS SUBTITLE IS IMMUNE F ROM LIABILITY UNDER STATE LAW 26 RELATING TO ANTITRUS T AND RESTRAINT OF T RADE FOR ANY COOPERA TED 27 ACTIVITIES ARISING O UT OF THE RECYCLING , REUSE, AND DISPOSA L OF PACKAGING 28 MATERIALS. 29 9–2509. 30 HOUSE BILL 284 27 THE DEPARTMENT SHALL ADOP T REGULATIONS TO CAR RY OUT THIS 1 SUBTITLE. 2 9–2510. 3 (A) EXCEPT AS OTHERWISE P ROVIDED UNDER SUBSEC TIONS (B) AND (C) OF 4 THIS SECTION, THE PROVISIONS OF §§ 9–334 THROUGH 9–344 OF THIS TITLE APPLY 5 TO ENFORCE VIOLATION S OF: 6 (1) THIS SUBTITLE; 7 (2) ANY REGULATION ADOPTE D UNDER THIS SUBTITL E; OR 8 (3) ANY ORDER ISSUED UNDE R THIS SUBTITLE. 9 (B) (1) A PRODUCER OR PRODUCER RESPONSIBILITY ORGAN IZATION 10 THAT VIOLATES THIS S UBTITLE IS SUBJECT T O: 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 PRO DUCER; AND 20 (II) THE VIOLATION IS NOT CORRECTED WITHIN 60 DAYS OF 21 RECEIPT OF THE WRITT EN NOTICE. 22 (C) IF, BASED ON THE ANNUAL REPORT SUBMITTED UND ER § 9–2507 OF 23 THIS SUBTITLE, THE PERFORMANCE GOAL S ESTABLISHED UNDER § 9–2504(B)(3) OF 24 THIS SUBTITLE HAVE N OT BEEN ACHIEVED , THE DEPARTMENT MAY IMPOSE AN 25 ADMINISTRATIVE PENAL TY, NOT TO EXCEED $5,000, ON THE PRODUCER 26 RESPONSIBILITY ORGAN IZATION. 27 (D) ANY PENALTY COLLE CTED BY THE DEPARTMENT UNDER THIS SECTION 28 28 HOUSE BILL 284 SHALL BE PAID INTO T HE STATE RECYCLING TRUST FUND ESTABLISHED UNDE R § 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