EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. Underlining indicates amendments to bill. Strike out indicates matter stricken from the bill by amendment or deleted from the law by amendment. *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 Committee Report: Favorable with amendments House action: Adopted Read second time: March 22, 2023 CHAPTER ______ AN ACT concerning 1 Environment – Reducing Packaging Materials – Statewide Recycling Needs 2 Assessment and Producer Responsibility for Packaging Materials 3 FOR the purpose of requiring certain producers of packaging materials to individually or 4 as part of a producer responsibility organization submit a certain packaging 5 materials producer responsibility plan to the Department of the Environment for 6 review and approval on or before a certain date and in accordance with certain 7 requirements; prohibiting, on or after a certain date, a producer of certain packaging 8 materials from selling, offering for sale, distributing, or importing certain packaging 9 materials unless the producer, individually or as part of a producer responsibility 10 organization, has an approved producer responsibility plan on file with the 11 Department; requiring a producer responsibility organization to pay certain costs to 12 the Department; requiring a producer responsibility organization to implement a 13 producer responsibility plan within a certain amount of time after the Department 14 approves the producer responsibility plan; establishing a producer responsibility 15 plan advisory council; authorizing a local government to request reimbursement 16 from a certain producer that has an approved producer responsibility plan on file 17 with the Department for certain costs in a certain manner; altering the definition of 18 “organics recycling” to include the processing of certain compostable packaging 19 materials in a certain manner; establishing a producer responsibility advisory 20 council to provide advice and make recommendations regarding establishing and 21 implementing a producer responsibility program in the State for packaging 22 materials and to report to certain committees of the General Assembly on or before 23 a certain date; requiring the Office of Recycling in the Department of the 24 2 HOUSE BILL 284 Environment to hire an independent contractor to conduct certain statewide 1 recycling needs assessments in a certain manner and to submit certain reports on 2 the results of the assessments to the Governor and the General Assembly on or before 3 certain dates a certain statewide recycling needs assessment in a certain manner 4 and to submit a certain report to the Governor and the General Assembly on or before 5 a certain date; and generally relating to a statewide recycling needs assessment and 6 producer responsibility for packaging materials. 7 BY repealing and reenacting, without amendments, 8 Article – Environment 9 Section 9–1701(a) 10 Annotated Code of Maryland 11 (2014 Replacement Volume and 2022 Supplement) 12 BY repealing and reenacting, with amendments, 13 Article – Environment 14 Section 9–1702 and 9–1707(f) 9–1701(n) 15 Annotated Code of Maryland 16 (2014 Replacement Volume and 2022 Supplement) 17 BY adding to 18 Article – Environment 19 Section 9–1702.2; and 9–2501 through 9–2510 and 9–2502 to be under the new 20 subtitle “Subtitle 25. Producer Responsibility for Packaging Materials” 21 Annotated Code of Maryland 22 (2014 Replacement Volume and 2022 Supplement) 23 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 24 That the Laws of Maryland read as follows: 25 Article – Environment 26 9–1701. 27 (a) In this subtitle the following words have the meanings indicated. 28 (n) (1) “Organics recycling” means any process in which organic materials OR 29 COMPOSTABLE PACKAGIN G MATERIALS are collected, separated, or processed and 30 returned to the marketplace in the form of raw materials or products. 31 (2) “Organics recycling” includes anaerobic digestion and composting. 32 9–1702. 33 (a) There is an Office of Recycling created within the Department. 34 HOUSE BILL 284 3 (b) The Secretary shall appoint a Director and sufficient staff to perform the 1 functions of the Office. After July 1, 1989, the number of staff shall be as provided in the 2 budget. 3 (c) The Secretary may adopt regulations to carry out the provisions of this 4 subtitle. 5 (d) The Office shall: 6 (1) Assist the counties in developing an acceptable recycling plan required 7 under § 9–1703 of this subtitle and § 9–505 of this title, including technical assistance to 8 the local governments; 9 (2) Coordinate the efforts of the State to facilitate the implementation of 10 the recycling goals at the county level; 11 (3) Review all recycling plans submitted as part of a county plan as 12 required under § 9–505 of this title and advise the Secretary on the adequacy of the 13 recycling plan; 14 (4) Administer the Statewide Electronics Recycling Program under Part IV 15 of this subtitle; [and] 16 (5) Promote the development of markets for recycled materials and 17 recycled products in the State in accordance with § 9–1702.1 of this subtitle; 18 (6) CONDUCT A STATEWIDE R ECYCLING NEEDS ASSES SMENT IN 19 ACCORDANCE WITH § 9–1702.2 OF THIS SUBTITLE; AND 20 (7) REVIEW AND APPROVE , IN CONSULTATION WITH THE PRODUCER 21 RESPONSIBILITY PLAN ADVISORY COUNCIL EST ABLISHED UNDER § 9–2505 OF THIS 22 TITLE, PRODUCER RESPONSIBIL ITY PLANS AND ANNUAL REPORTS SUBMITTED IN 23 ACCORDANCE WITH SUBTITLE 25 OF THIS TITLE. 24 (e) Beginning on January 1, 1990, and biannually thereafter, the Office shall, in 25 coordination with the Maryland Environmental Service, study and report to the Governor 26 and, subject to § 2–1257 of the State Government Article, the General Assembly on: 27 (1) The identification and location of recycling centers, including an 28 analysis of existing recycling centers and the need to expand these facilities or construct 29 new recycling centers; 30 (2) Programs necessary to educate the public on the need to participate in 31 recycling efforts; 32 4 HOUSE BILL 284 (3) The economics and financing of existing and proposed systems of waste 1 disposal and recycling; 2 (4) State procurement policies for the purchase of recycled materials; 3 (5) Programs necessary to reduce the amount of solid waste generated for 4 disposal by a State agency or unit; 5 (6) The liaison role with local governments, the federal government, and 6 the private sector; 7 (7) The percentage reduction in the amount of solid waste that has been 8 achieved by each county; and 9 (8) Economically feasible methods for the recycling of scrap automobile 10 tires, batteries, and white goods. 11 (f) (1) By December 1, 1988, the Office shall, in coordination with the 12 Maryland Environmental Service and the Governor’s Task Force on Solid Waste, make 13 recommendations to the General Assembly for the financing of a comprehensive system of 14 recycling at the State and local level, including funding for recycling centers, recycling 15 equipment, recycling education, and marketing strategies. 16 (2) After the financing recommendations are made under paragraph (1) of 17 this subsection, each county may submit to the Office and the Governor a detailed request 18 for funds necessary to assist in the development and implementation of a recycling plan 19 under guidelines developed by the Office. 20 (g) In studying feasible methods for the management and recycling of used tires 21 under subsection (e)(9) of this section, the Office of Recycling shall consult with the 22 appropriate industry, including representatives of: 23 (1) Tire manufacturers; 24 (2) Tire dealers; and 25 (3) Tire recyclers. 26 9–1702.2. 27 (A) IN THIS SECTION , “ADVISORY COUNCIL ” AND “PRODUCER 28 RESPONSIBILITY ORGAN IZATION” HAVE THE MEANINGS ST ATED IN § 9–2501 OF THIS 29 TITLE. 30 (B) IN ACCORDANCE WITH SUBSECTION (D) OF THIS SECTION AND TO CARRY 31 OUT THE REQUIREMENTS OF § 9–1702(D)(6) OF THIS SUBTITLE, THE OFFICE SHALL 32 HOUSE BILL 284 5 CONDUCT A STATEWIDE RECYCLING NEEDS ASSE SSMENT AT LEAST ONCE EVERY 10 1 YEARS OR AS RECOMMEN DED BY THE ADVISORY COUNCIL THAT INCLUDE S: 2 (1) AN EVALUATION OF THE CURRENT INFRASTRUCTU RE AND 3 CAPACITY RELATED TO , NEED FOR, AND ASSOCIATED COSTS OF: 4 (I) RECYCLING ACCESS AND AVAILABILITY; 5 (II) COLLECTING AND HAULIN G RECYCLABLE OR 6 COMPOSTABLE MATERIAL S IN THE STATE; 7 (III) PROCESSING RECY CLABLE OR COMPOSTABL E MATERIALS 8 IN THE STATE; 9 (IV) TAKING ADVANTAGE OF F AVORABLE MARKET COND ITIONS 10 OR OTHER OPPORTUNITI ES FOR INCREASING RE CYCLING OR ORGANICS RECYCLING 11 IN THE STATE; 12 (V) IN COORDINATION WITH LOCAL GOVERNMENTS , CONSUMER 13 EDUCATION R EGARDING RECYCLING , ORGANICS RECYCLING , AND CONTAMINATION 14 REDUCTION; 15 (VI) REUSE INFRASTRUCTURE ; AND 16 (VII) ORGANICS RECYCLING IN FRASTRUCTURE ; 17 (2) AN EVALUATION OF COMM INGLED RECYCLING PRO CESSING 18 FACILITY WORKER COND ITIONS, WAGES, AND BENEFITS; 19 (3) AN EVALUATION OF OPPO RTUNITIES IN THE REC YCLING SYSTEM 20 FOR WOMEN AND MINORI TY INDIVIDUALS; 21 (4) AN EVALUATION OF LOCA L GOVERNMENT REQUIRE MENTS 22 RELATED TO MULTIFAMI LY RECYCLING SERVICE S AND THEIR IMPLEMEN TATION; 23 (5) THE SUFFICIENCY OF RE CYCLING EDUCATION PROGRAMS 24 RELATIVE TO DESIRED EQUITY OUTCOMES ; 25 (6) AN EVALUATION OF OPPO RTUNITIES IN THE REC YCLING SYSTEM 26 FOR BUSINESSES IN TH E STATE; AND 27 (7) RECOMMENDATIONS FOR I MPROVING EQUITY AND EQUITABLE 28 OUTCOMES FOR UNDERSE RVED POPULATIONS IN THE STATE’S RECYCLING SYSTEM , 29 INCLUDING RECOMMENDA TIONS FOR NEW RESPON SIBILITIES OF PRODUC ER 30 6 HOUSE BILL 284 RESPONSIBILITY ORGAN IZATIONS AND RECOMME NDATIONS FOR FUNDING THE NEW 1 RESPONSIBILITIES . 2 (C) ON OR BEFORE APRIL 1, 2025, AND EACH APRIL 1 EVERY 10 YEARS 3 THEREAFTER OR AS RECOMMENDED BY TH E ADVISORY COUNCIL , THE OFFICE 4 SHALL REPORT ON THE RESULTS OF THE MOST RECENT ASSESSMENT CO NDUCTED 5 UNDER THIS SECTION T O THE GOVERNOR AND , IN ACCORDANCE WITH § 2–1257 OF 6 THE STATE GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY. 7 (D) IN CONDUCTING THE ASSESSMENT REQUIRED UNDER THIS SECTION, 8 THE OFFICE SHALL CONSULT WITH PRODUCER RESPON SIBILITY ORGANIZATIO NS, 9 THE PRODUCER RESPONS IBILITY PLAN ADVISOR Y COUNCIL ESTABLISHE D UNDER § 10 9–2505 OF THIS TITLE , APPROPRIATE LOCAL GO VERNMENTAL ENTITIES , AND 11 REGIONAL SOLID WASTE ORGANIZATIONS IN THE STATE. 12 (E) THE OFFICE SHALL ESTABLIS H AND COLLECT A FEE TO BE PAID BY 13 PRODUCER RESPONSIBIL ITY ORGANIZATIONS TO COVER THE COSTS ASSO CIATED 14 WITH CONDUCTING THE ASSESSMENTS REQUIRED UNDER THIS SECTION . 15 9–1707. 16 (f) (1) There is a State Recycling Trust Fund. 17 (2) The Fund shall consist of: 18 (i) The newsprint recycling incentive fee; 19 (ii) The telephone directory recycling incentive fee collected under § 20 9–1709 of this subtitle; 21 (iii) The covered electronic device manufacturer registration fee 22 collected under § 9–1728 of this subtitle; 23 (IV) ANY FEES COLLECTED FR OM PRODUCER RESPONSI BILITY 24 ORGANIZATIONS UNDER § 9–1702.2 OF THIS SUBTITLE OR SUBTITLE 25 OF THIS 25 TITLE; 26 [(iv)] (V) All fines and penalties collected under this subtitle AND § 27 9–2510 OF THIS TITLE; 28 [(v)] (VI) Money appropriated in the State budget to the Fund; and 29 [(vi)] (VII) Any other money from any other source accepted for the 30 benefit of the Fund. 31 HOUSE BILL 284 7 (3) The Secretary shall administer the Fund. 1 (4) The Treasurer shall hold the Fund separately and the Comptroller shall 2 account for the Fund. 3 (5) At the end of each fiscal year, any unspent or unencumbered balance in 4 the Fund that exceeds $2,000,000 shall revert to the General Fund of the State in 5 accordance with § 7–302 of the State Finance and Procurement Article. 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) IN ACCORDANCE WITH PA RAGRAPH (7) OF THIS 15 SUBSECTION, TO COVER THE COSTS O F THE STATEWIDE RECY CLING NEEDS 16 ASSESSMENT CONDUCTED UNDER § 9–1702.2 OF THIS SUBTITLE; 17 (V) IN ACCORDANCE WITH PA RAGRAPH (7) OF THIS 18 SUBSECTION, TO COVER THE COSTS O F PRODUCER RESPONSIB ILITY PLAN REVIEW , 19 OVERSIGHT, AND ENFORCEMENT UNDE R SUBTITLE 25 OF THIS TITLE; AND 20 [(iv)] (VI) To carry out the purposes of the land management 21 administration. 22 (7) (I) THERE SHALL BE A SEPA RATE ACCOUNT WITHIN THE FUND. 23 (II) THE SEPARATE ACCOUNT SHALL CONSIST OF : 24 1. ANY FEES COLLECTED FR OM PRODUCER 25 RESPONSIBILITY ORGAN IZATIONS UNDER § 9–1702.2 OF THIS SUBTITLE OR 26 SUBTITLE 25 OF THIS TITLE; AND 27 2. ALL FINES AND PENALTI ES COLLECTED UNDER § 28 9–2510 OF THIS TITLE. 29 (III) THE SEPARATE ACCOUNT SHALL BE USED ONLY F OR THE 30 COSTS OF THE STATEWI DE RECYCLING NEEDS A SSESSMENT CONDUCTED UNDER § 31 8 HOUSE BILL 284 9–1702.2 OF THIS SUBTITLE AND PR ODUCER RESPONSIBILIT Y PLAN REVIEW , 1 OVERSIGHT, AND ENFORCEMENT UNDE R SUBTITLE 25 OF THIS TITLE. 2 [(7)] (8) (i) The Treasurer shall invest the money in the Fund in the 3 same manner as other State money may be invested. 4 (ii) Any investment earnings of the Fund shall be credited to the 5 General Fund of the State. 6 SUBTITLE 25. PRODUCER RESPONSIBILITY FOR PACKAGING MATERIALS. 7 9–2501. 8 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 9 INDICATED. 10 (B) “ADVISORY COUNCIL ” MEANS TH E PRODUCER RESPONSIB ILITY PLAN 11 ADVISORY COUNCIL EST ABLISHED UNDER § 9–2505 9–2502 OF THIS SUBTITLE. 12 (C) “BEVERAGE CONTAINER ” MEANS A PREPACKAGED BEVERAGE 13 CONTAINER: 14 (1) MADE OF ANY MATERIAL , INCLUDING GLASS , PLASTIC, METAL, 15 CARTON, POUCH, OR ASEPTIC PACKAGING, SUCH AS A DRINK BOX , OR OF 16 MULTIMATERIALS ; AND 17 (2) THE VOLUME OF WHICH I S NOT MORE THAN 5 LITERS. 18 (D) (C) “LOCAL GOVERNMENT ” MEANS: 19 (1) A COUNTY; OR 20 (2) A MUNICIPALITY. 21 (D) “ORGANICS RECYCLING ” HAS THE MEANING STAT ED IN § 9–1701 OF 22 THIS TITLE. 23 (E) (1) “PACKAGING MATERIALS ” MEANS, REGARDLESS OF 24 RECYCLABILITY , ANY PART OF A PACKAG E OR CONTAINER , INCLUDING MATERIAL 25 THAT IS USED FOR THE CONTAINMENT , PROTECTION , HANDLING, DELIVERY, AND 26 PRESENTATIO N OF A PRODUCT THAT IS SOLD, OFFERED FOR SALE , IMPORTED, OR 27 DISTRIBUTED IN THE STATE. 28 (2) “PACKAGING MATERIALS ” INCLUDES: 29 HOUSE BILL 284 9 (I) PRIMARY, SECONDARY , AND TERTIARY PACKAGI NG 1 INTENDED FOR THE CON SUMER MARKET ; 2 (II) SERVICE PACKAGING DES IGNED AND INTEN DED TO BE 3 FILLED AT THE POINT OF SALE, INCLUDING: 4 1. CARRY–OUT BAGS; 5 2. BULK GOODS BAGS ; AND 6 3. TAKE–OUT AND HOME DELIVER Y FOOD SERVICE 7 PACKAGING; AND 8 (III) BEVERAGE CONTAINERS . 9 (3) “PACKAGING MATERIALS ” DOES NOT INCLUDE ANY INCLUDE: 10 (I) ANY PART OF A PACKAGE OR CONTAINER THAT IS SO LD OR 11 SUPPLIED IN CONNECTI ON WITH: 12 (I) 1. A PESTICIDE PRODUCT RE GULATED BY THE FEDERAL 13 INSECTICIDE, FUNGICIDE, AND RODENTICIDE ACT UNDER 7 U.S.C. § 136 ET SEQ. 14 OR ANY OTHER APPLICA BLE FEDERAL LAW , RULE, OR REGULATION ; 15 (II) 2. A FEDERALLY REGULATED DRUG, MEDICAL DEVICE , 16 BIOLOGIC, OR DIAGNOSTIC, OR DIETARY SUPPLEMEN T, INCLUDING ITEMS 17 INTENDED FOR ANIMALS ; OR 18 (III) 3. A MEDICAL PRODUCT THAT IS REQUIRED TO BE 19 STERILE OR ENCLOSED IN PACKAGING WITH TAMPER–RESISTANT SEALS TO 20 PROTECT PUBLIC HEALT H, INCLUDING MEDICAL PR ODUCTS INTENDED FOR 21 ANIMALS; OR 22 (II) LIQUEFIED PETROLEUM G AS CONTAINERS THAT A RE 23 DESIGNED TO BE REFIL LED. 24 (F) (1) “PRODUCER” MEANS A PERSON THAT IS RESPONSIBLE FOR 25 COMPLYING WITH THIS SUBTITLE UNDER § 9–2503 OF THIS SUBTITLE: 26 (I) MANUFACTURES PACKAGIN G MATERIALS IF THE 27 PACKAGING MATERIALS ARE SOLD UNDER THE M ANUFACTURER ’S OWN BRAND OR 28 ARE SOLD IN PACKAGIN G MATERIALS THAT LAC K IDENTIFICATION OF A BRAND; 29 10 HOUSE BILL 284 (II) IS THE LICENSEE OF A BRAND OR TRADEM ARK UNDER 1 WHICH PACKAGING MATE RIALS ARE SOLD, OFFERED FOR SALE , OR DISTRIBUTED IN 2 THE STATE, WHETHER OR NOT THE T RADEMARK IS REGISTER ED IN THE STATE IF 3 THE PACKAGING MATERI ALS ARE MANUFACTURED BY A PERSON OTHER TH AN THE 4 BRAND OWNER ; OR 5 (III) IMPORTS THE PACKAGING MATERIALS INTO THE UNITED 6 STATES FOR USE IN A C OMMERCIAL ENTERPRISE THAT SELLS, OFFERS FOR SALE , 7 OR DISTRIBUTES THE P ACKAGING MATERIALS I N THE STATE IF THERE IS NO PERSON 8 DESCRIBED IN ITEM (I) OR (II) OF THIS PARAGRAPH LO CATED WITHIN THE UNITED 9 STATES. 10 (2) “PRODUCER” DOES NOT INCLUDE : 11 (I) A LOCAL GOVERNMENT ; 12 (II) A NONPROFIT CHARITABLE ORGANIZATION ; OR 13 (III) AN ENTITY THAT MANUFA CTURES A DRUG OR DEV ICE 14 AUTHORIZED FOR SALE BY THE U.S. FOOD AND DRUG ADMINISTRATION UNDER THE 15 FEDERAL FOOD, DRUG, AND COSMETIC ACT; 16 (IV) AN ENTITY THAT GENERA TED LESS THAN $5,000,000 IN 17 GROSS REVENUE DURING THE IMMEDIATELY PREC EDING CALENDAR YEAR ; 18 (V) AN ENTITY THAT SOLD , OFFERED FOR SALE , OR 19 DISTRIBUTED FOR SALE IN THE STATE DURING THE IMME DIATELY PRECEDING 20 CALENDAR YEAR LESS T HAN 1 METRIC TON OF PACKAG ING MATERIALS ; 21 (VI) 1. AN ENTITY THAT OWNS O R OPERATES A RESTAUR ANT, 22 FOOD CART, OR SIMILAR ESTABLISHMENT THAT : 23 A. IS HEADQUARTERED IN T HE STATE; AND 24 B. PRIMARILY SELLS TO ME MBERS OF THE PUBLIC FOOD 25 THAT IS GENERALLY IN TENDED TO BE CONSUME D IMMEDIATELY AND WI THOUT THE 26 NEED FOR FURTHER PRE PARATION, EITHER ON OR OFF THE PREMISES; AND 27 2. IS NOT A PRODUCER OF FOOD SERVICEWARE ; 28 (VII) AN ENTITY THAT OWNS O R OPERATES A SINGLE RETAIL 29 SALES ESTABLISHMENT THAT: 30 1. HAS NO ONLINE SALES ; AND 31 HOUSE BILL 284 11 2. IS NOT SUPPLIED OR OP ERATED AS PART OF A 1 FRANCHISE OR A CHAIN ; OR 2 (VIII) 1. AN ENTITY THAT IS LICENSED U NDER TITLE 2 OF THE 3 ALCOHOLIC BEVERAGES ARTICLE; AND 4 2. GENERATED LESS THAN $10,000,000 IN GROSS 5 REVENUE DURING THE I MMEDIATELY PRECEDING CALENDAR YEAR . 6 (G) “PRODUCER RESPONSIBILI TY ORGANIZATION ” MEANS: 7 (1) A PRODUCER THAT INDIVIDUALLY SUBMITS A PRODUCER 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 IMPL EMENT 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 FACILITATING: 25 (I) THE IMPROVEMENT OF RE USE, ORGANICS RECYCLING , AND 26 RECYCLING; 27 (II) THE IMPROVEMENT OF RE CYCLING MARKETS ; 28 (III) THE REDUCTION OF WAST E; AND 29 12 HOUSE BILL 284 (IV) AN INCREASE IN RECYCL ING RATES; AND 1 (2) REIMBURSING LOCAL GOV ERNMENTS F OR COSTS ASSOCIATED 2 WITH TRANSPORTING , COLLECTING, AND PROCESSING PACKA GING MATERIALS . 3 9–2503. 4 (A) (1) (I) THIS PARAGRAPH APPLIE S TO ITEMS SOLD IN P ACKAGING 5 MATERIALS AT A PHYSI CAL RETAIL LOCATION IN THE STATE. 6 (II) IF THE ITEM IS SOLD U NDER THE M ANUFACTURER ’S OWN 7 BRAND OR IS SOLD IN PACKAGING MATERIALS THAT LACK IDENTIFICA TION OF A 8 BRAND, THE PRODUCER OF THE PACKAGING MATERIALS IS THE PERSON THAT 9 MANUFACTURES THE ITE M. 10 (III) IF THE ITEM IS MANUFA CTURED BY A PERSON O THER THAN 11 THE BRAND OWNER , THE PRODUCER OF THE PACKAGING MATERIALS IS THE PERSON 12 THAT IS THE LICENSEE OF A BRAND OR TRADEM ARK UNDER WHICH AN I TEM IS SOLD, 13 OFFERED FOR SALE , OR DISTRIBUTED IN TH E STATE, WHETHER OR NOT THE 14 TRADEMARK IS REGISTE RED IN THE STATE. 15 (IV) IF THERE IS NO PERSON DESCRIBED IN SUBPARAGRAPHS 16 (II) OR (III) OF THIS PARAGRAPH LO CATED WITHIN THE UNITED STATES, THE 17 PRODUCER OF THE PACK AGING MATERIALS IS T HE PERSON THAT IMPOR TS THE 18 ITEM INTO THE UNITED STATES FOR USE IN A C OMMERCIAL ENTERPRISE THAT 19 SELLS, OFFERS FOR SALE, OR DISTRIBUTES THE I TEM IN THE STATE. 20 (2) (I) THIS PARAGRAPH APPLIE S TO ITEMS SOLD OR 21 DISTRIBUTED IN PACKA GING MATERIALS IN TH E STATE THROUGH REMOTE SALE OR 22 DISTRIBUTION. 23 (II) THE PRODUCER OF THE P ACKAGING MATERIALS U SED TO 24 DIRECTLY PROTECT OR CONTAIN THE ITEM IS THE SAME AS THE P RODUCER 25 ESTABLISHED UNDER PA RAGRAPH (1) OF THIS SUBSECTION . 26 (III) THE PRODUCER OF THE P ACKAGING MATERIALS U SED TO 27 SHIP THE ITEM TO A C ONSUMER IS THE PERSO N THAT PACKAGES AND SHIPS THE 28 ITEM TO THE CONSUMER . 29 (IV) FOR ANY PACKAGING MAT ERIALS NOT IDENTIFIE D UNDER 30 SUBPARAGRAPHS (II) AND (III) OF THIS PARAGRAPH , THE PRODUCER OF THE 31 PACKAGING MATERIALS IS THE PERSON THAT F IRST DISTRIBUTES THE PACKAGED 32 ITEM IN THE STATE. 33 HOUSE BILL 284 13 (B) THIS SUBTITLE DOES NO T APPLY TO A PERS ON THAT: 1 (1) (I) GENERATED LESS THAN $5,000,000 IN GROSS REVENUE 2 DURING THE IMMEDIATE LY PRECEDING CALENDA R YEAR; 3 (II) SOLD, OFFERED FOR SALE , OR DISTRIBUTED FOR S ALE IN 4 THE STATE DURING THE IMME DIATELY PRECEDING CA LENDAR YEAR LESS THA N 1 5 METRIC TON OF PACKAGING MATERIA LS; 6 (III) 1. OWNS OR OPERATES A RE STAURANT, FOOD CART, OR 7 SIMILAR ESTABLISHMEN T THAT: 8 A. IS HEADQUARTERED IN T HE STATE; AND 9 B. PRIMARILY SELLS TO ME MBERS OF THE PUBLIC FOOD 10 THAT IS GENERALLY IN TENDED TO BE CONSUME D IMMEDIATELY AND WITH OUT THE 11 NEED FOR FURTHER PRE PARATION, EITHER ON OR OFF THE PREMISES; AND 12 2. IS NOT A PRODUCER OF FOOD SERVICEWARE ; 13 (IV) OWNS OR OPERATES A SI NGLE RETAIL SALES 14 ESTABLISHMENT THAT : 15 1. HAS NO ONLINE SALES ; AND 16 2. IS NOT SUPPLIED OR OPERATED AS PART OF A 17 FRANCHISE OR A CHAIN ; OR 18 (V) 1. IS LICENSED UNDER TITLE 2 OF THE ALCOHOLIC 19 BEVERAGES ARTICLE; AND 20 2. GENERATED LESS THAN $10,000,000 IN GROSS 21 REVENUE DURING THE I MMEDIATELY PRECEDING CALENDAR YEAR ; AND 22 (2) ON REQUEST BY THE DEPARTMENT , PROVIDES TO THE 23 DEPARTMENT SUFFICIENT INFORMATION TO DEMON STRATE THAT THE PROD UCER 24 MEETS THE CONDITIONS OF THIS SECTION. 25 (C) THIS SUBTITLE DOES NO T AFFECT THE AUTHORI TY OF THE STATE OR A 26 LOCAL JURISDICTION T O REGULATE THE SALE OR USE OF ANY PACKAG ING 27 MATERIAL. 28 (D) THIS SUBTITLE DOES NO T PROHIBIT A PRODUCE R RESPONSIBILITY 29 ORGANIZATION FROM ES TABLISHING A DEPOSIT –RETURN SYSTEM AS ONE 30 14 HOUSE BILL 284 STRATEGY FOR INCREAS ING THE CAPTURE AND RECYCLING OF BEVERAG E 1 CONTAINERS OR OTHER PACKAGING MATE RIALS. 2 9–2504. 3 (A) (1) (I) BEGINNING JULY 1, 2024, AND EACH YEAR THEREA FTER, A 4 PRODUCER RESPONSIBIL ITY ORGANIZATION SHA LL FILE A REGISTRATI ON FORM 5 WITH THE DEPARTMENT . 6 (II) THE REGISTRATION FORM SHALL INCLUDE : 7 1. A LIST OF THE RESPONSI BLE PARTI ES 8 PARTICIPATING IN THE PRODUCER RESPONSIBIL ITY ORGANIZATION ; 9 2. A LIST OF THE BRANDS O F EACH RESPONSIBLE P ARTY 10 PARTICIPATING IN THE PRODUCER RESPONSIBIL ITY ORGANIZATION ; 11 3. A LIST OF THE COVERED MATERIALS OF EACH 12 RESPONSIBLE PARTY PARTICIPATING IN THE PRODUCER RESPONSIBIL ITY 13 ORGANIZATION ; AND 14 4. THE NAME, ADDRESS, AND CONTACT INFORMAT ION 15 OF A PERSON RESPONSI BLE FOR ENSURING THE PRODUCER RESPONSIBIL ITY 16 ORGANIZATION ’S AND THE MEMBER RES PONSIBLE PARTIES ’ COMPLIANCE WITH 17 THIS SUBTITLE. 18 (III) AT THE TIME OF FILING THE REGISTRATION FOR M, A 19 PRODUCER RESPONSIBIL ITY ORGANIZATION SHA LL PAY TO THE DEPARTMENT AN 20 ANNUAL REGISTRATION FEE TO COVER THE COS TS OF RECORD KEEPING , NOT TO 21 EXCEED $1,000. 22 (IV) AT THE TIME OF THE IN ITIAL SUBMISSION OF THE 23 REGISTRATION FORM BY A PRODUCER RESPONSIB ILITY ORGANIZATION , THE 24 ORGANIZATION SHALL H AVE 60 DAYS TO PAY TO THE DEPARTMENT THE ESTIMA TED 25 COST OF CONDUCTING T HE INITIAL STATEWIDE RECYCLING NEEDS ASSE SSMENT 26 REQUIRED UNDER § 9–1702.2 OF THIS TITLE. 27 (V) IF MORE THAN ONE PROD UCER RESPONSIBILITY 28 ORGANIZATION REGISTE RS WITH THE DEPARTMENT , THE DEPARTMENT SHALL 29 EQUALLY DIVIDE THE C OST OF THE STATEWIDE RECYCLING NEEDS ASSE SSMENT. 30 (2) (I) ON OR BEFORE APRIL 1, 2026, EACH PRODUCER SHALL , 31 INDIVIDUALLY OR AS P ART OF A PRODUCER RE SPONSIBILITY ORGANIZ ATION, 32 HOUSE BILL 284 15 SUBMIT A PRODUCER RE SPONSIBILITY PLAN TO THE DEPARTMENT FOR REVIEW 1 AND APPROVAL . 2 (II) IF MORE THAN ONE PROD UCER RESPONSIBILITY 3 ORGANIZATION SUBMITS A PRODUCER RESPONSIB ILITY PLAN TO THE 4 DEPARTMENT : 5 1. THE PRODUCER RESPONSI BILITY ORGANIZATIONS 6 SHALL COORDINATE WIT H THE DEPARTMENT AND LOCAL GOVERNMENTS TO 7 ENSURE THAT : 8 A. RECYCLING SERVICES FO R RESIDENTS IN THE STATE 9 ARE PROVIDED IN A SE AMLESS MANNER ; AND 10 B. PUBLIC OUTREACH , EDUCATION, AND 11 COMMUNICATION ARE PR OVIDED IN A CONSISTE NT MANNER; AND 12 2. THE PRODUCER RESPONSI BILITY ORGANIZATIONS 13 MAY CREATE A REPRESE NTATIVE ORGANIZATION TO REPRESENT ALL 14 PARTICIPATING PRODUC ER RESPONSIBILITY OR GANIZATIONS TO IMPLE MENT THE 15 REQUIREME NTS OF THIS SUBTITLE . 16 (III) BEFORE SUBMITTING THE PLAN REQUIRED UNDER THIS 17 SUBSECTION TO THE DEPARTMENT , A PRODUCER OR PRODUC ER RESPONSIBILITY 18 ORGANIZATION SHALL : 19 1. CONSULT WITH THE ADVI SORY COUNCIL 20 ESTABLISHED UNDER § 9–2505 OF THIS SUBTITLE; AND 21 2. CONSIDER THE WRITTEN RECOMMENDATIONS OF 22 THE ADVISORY COUNCIL PROVIDED UNDER § 9–2505(G)(6) OF THIS SUBTITLE AND 23 RESPOND IN WRITING T O THE ADVISORY COUNC IL. 24 (3) ON OR AFTER A DATE ES TABLISHED IN REGULAT IONS ADOPTED 25 BY THE DEPARTMENT UNDER § 9–2509 OF THIS SUBTITLE , A PRODUCER MAY NOT 26 SELL, OFFER FOR SALE , DISTRIBUTE, OR IMPORT FOR SALE O R DISTRIBUTION 27 PACKAGING MATERIALS FOR USE IN THE STATE UNLESS THE PROD UCER, 28 INDIVIDUALLY OR AS P ART OF A PRODUCER RE SPONSIBILITY ORGANIZ ATION, HAS 29 AN APPROVE D PRODUCER RESPONSIB ILITY PLAN ON FILE W ITH THE DEPARTMENT . 30 (B) A PRODUCER RESPONSIBIL ITY PLAN SHALL: 31 16 HOUSE BILL 284 (1) IDENTIFY THE PRODUCER S COVERED BY THE PLA N, INCLUDING 1 THE CONTACT INFORMAT ION FOR EACH PARTICI PATING PRODUCER AND THE 2 PRODUCER RESPONSIBIL ITY ORGANIZATION ; 3 (2) IDENTIFY EACH BRAND O F PACKAGING MATERIAL S COVERED BY 4 THE PLAN; 5 (3) REQUIRE, IN ACCORDANCE WITH S UBSECTION (C) OF THIS 6 SECTION, ACHIEVEMENT WITHIN 5 YEARS AFTER THE DATE ON WHICH THE FIRST 7 VERSION OF THE PLAN IS APPROVED AND ESTABLISH THE FOLLOW ING 8 PERFORMANCE GOALS , AS RELEVANT, FOR EACH PACKAGING M ATERIAL TYPE: 9 (I) POSTCONSUMER RECYCLED CONTENT GOALS ; 10 (II) RECYCLABILITY AND REC YCLING RATE GOALS ; 11 (III) REUSE GOALS; 12 (IV) PACKAGING REDUCTIO N GOALS; 13 (V) COMPOST ACCESS OR COM POST RATE GOALS , IF 14 APPLICABLE AND TECHN OLOGICALLY AND ENVIR ONMENTALLY FEASIBLE ; 15 (VI) CONTAMINATION REDUCTI ON RATE GOALS ; 16 (VII) GREENHOUSE GAS REDUCT ION GOALS; AND 17 (VIII) ANY OTHER GOAL THAT R EDUCES PACKAGING MATERIAL 18 WASTE AND IS JUSTIFI ED IN THE PLAN; 19 (4) REQUIRE EACH PARTICIP ATING PRODUCER TO RE DUCE ALL 20 PACKAGING MATERIAL W ASTE TO THE MAXIMUM EXTENT PRACTICABLE , AND BY 21 NOT LESS THAN 25% FOR EACH PACKAGING M ATERIAL TYPE, WITHIN 5 YEARS AFTER 22 THE DATE ON WHICH THE FI RST VERSION OF THE P LAN IS APPROVED ; 23 (5) DESCRIBE, IN ACCORDANCE WITH S UBSECTION (D) OF THIS 24 SECTION, THE FINANCING METHOD THAT WILL BE USED TO IMPLEMENT THE PLAN ; 25 (6) DESCRIBE HOW THE PERF ORMANCE GOALS ESTABL ISHED UNDER 26 ITEM (3) OF THIS SUBSECTION W ILL BE MET OR EXCEED ED; 27 (7) DESCRIBE HOW STAKEHOL DER COMMENTS WERE CO NSIDERED IN 28 THE DEVELOPMENT OF T HE PLAN; 29 HOUSE BILL 284 17 (8) DESCRIBE HOW STAFFING AND ADMINISTERING TH E 1 IMPLEMENTATION OF TH E PLAN WILL BE HANDL ED; 2 (9) DESCRIBE THE STRATEG Y FOR REDUCING PACKA GING 3 MATERIALS IN THE STATE, INCLUDING HOW PRODUC ERS PARTICIPATING IN A PLAN 4 WILL WORK TOGETHER T O REDUCE PACKAGING T HROUGH PRODUCT DESIG N AND 5 PROGRAM INNOVATIONS ; 6 (10) DESCRIBE THE ACTIONS TAKEN OR THAT WILL B E TAKEN FOR 7 PUBLIC OUTREACH, EDUCATION, AND COMMUNICATION , TAKING INTO ACCOUNT 8 THAT PUBLIC OUTREACH , EDUCATION, AND COMMUNICATION SH ALL: 9 (I) PROMOTE THE RESPONSIB LE END–OF–LIFE MANAGEMENT 10 OF PACKAGING MATERIA LS; 11 (II) PROVIDE INFORMATION O N HOW TO PREVENT LIT TER OF 12 PACKAGING MATERIALS ; 13 (III) PROVIDE RECYCLING AND ORGANICS RECYCLING 14 INSTRUCTIONS THAT AR E, TO THE EXTENT PRACTI CABLE: 15 1. CONSISTENT STATEWIDE , TAKING INTO ACCOUNT 16 DIFFERENCES AMONG LO CAL LAWS AND PROCESS ING CAPABILITIES; 17 2. EASY TO UNDERSTAND ; AND 18 3. EASILY ACCESSIBLE ; AND 19 (IV) PROVIDE FOR OUTREACH AND EDUCATION THAT A RE: 20 1. DESIGNED TO ACHIEVE P ACKAGING MATERIALS 21 MANAGEMENT GOALS AND REQUIREMENTS , INCLUDING THE PREVEN TION OF 22 CONTAMINATION OF PAC KAGING MATERIALS ; 23 2. COORDINATED ACROSS PR OGRAMS TO AVOID 24 CONFUSION FOR CONSUM ERS; AND 25 3. DEVELOPED IN CONSULTA TION WITH LOCAL 26 GOVERNMENTS AND OTHE R STAKEHOLDERS ; 27 (11) DESCRIBE, IN ACCORDANCE WITH S UBSECTION (E) OF THIS 28 SECTION, THE AMOUNT OF FUNDIN G THAT WILL BE USED FOR IMPROVING REUSE , 29 ORGANICS RECYCLING , AND RECYCLING IN THE STATE; 30 18 HOUSE BILL 284 (12) DESCRIBE THE PROCESS BY WHICH A LOCAL GOV ERNMENT MAY 1 REQUEST REIMBURSEMEN T FOR COSTS ASSOCIAT ED WITH TRANSPORTING , 2 COLLECTING, AND PROCESSING PACKA GING MATERIALS THAT ARE IDENTIFIED IN 3 THE PLAN, INCLUDING: 4 (I) THE PROCESS BY WHICH THE REQUEST WILL BE REVIEWED; 5 (II) THE PROCESS FOR APPRO VING OR DENYING A RE QUEST 6 FOR REIMBURSEMENT ; 7 (III) THE SCHEDULE FOR PROV IDING REIMBURSEMENT THAT 8 INCLUDES REIMBURSEME NT ON AT LEAST A QUARTERLY BASIS ; AND 9 (IV) THE PROCESS FOR PROVI DING REIMBURSEMENT F OR 10 MULTIPLE BRANDS OF P ACKAGING MATERIALS ; 11 (13) (I) PROVIDE THE WRITTEN R ECOMMENDATIONS FROM THE 12 ADVISORY COUNCIL PRO VIDED UNDER § 9–2505(G)(6) OF THIS SUBTITLE AND THE 13 PRODUCER RE SPONSIBILITY ORGANIZ ATION’S WRITTEN RESPONSE T O THE 14 ADVISORY COUNCIL ; AND 15 (II) DESCRIBE HOW THE WRIT TEN RECOMMENDATIONS FROM 16 THE ADVISORY COUNCIL WERE CONSIDERED AND ADDRESSED IN THE 17 DEVELOPMENT OF THE P LAN; AND 18 (14) INCLUDE ANY OTHER INF ORMATION TH AT IS REQUIRED BY TH E 19 DEPARTMENT . 20 (C) BASED ON THE RESULTS OF THE STATEWIDE REC YCLING NEEDS 21 ASSESSMENT CONDUCTED UNDER § 9–1702.2 OF THIS TITLE, THE DEPARTMENT , IN 22 COORDINATION WITH A PRODUCER RESPONSIBIL ITY ORGANIZATION , SHALL 23 ESTABLISH PERFORMANC E GOALS FOR EACH PACKAGING MATERIAL TYPE USING A 24 BASELINE YEAR THAT I S INFORMED BY THE ST ATEWIDE RECYCLING NE EDS 25 ASSESSMENT , INCLUDING ESTABLISHI NG RECYCLING RATE GO ALS FOR EACH 26 PACKAGING MATERIAL T YPE, AT 5–, 10–, AND 15–YEAR INTERVALS . 27 (D) (1) THE FINANCING METHOD THAT WILL BE USED BY A PRODUCER 28 RESPONSIBILITY ORGAN IZATION TO IMPLEMENT A PRODUCER RESPONSIB ILITY 29 PLAN SHALL: 30 (I) PROVIDE THE METHOD FO R EITHER DIRECT INVE STMENTS 31 OR REIMBURSEMENTS FO R IMPROVING INFRASTR UCTURE FOR REUSE , ORGANICS 32 RECYCLING, AND RECYCLING IN ACCOR DANCE WITH SUBSECTIO N (B)(11) OF THIS 33 SECTION; 34 HOUSE BILL 284 19 (II) PROVIDE A REASONABLE ANNUAL RATE PER TON OF 1 RECYCLED OR COMPOSTE D PACKAGING MATERIAL S FOR REIMBURSING LO CAL 2 GOVERNMENTS FOR COST S ASSOCIATED WITH : 3 1. UP TO 50% OF THE COST OF COLLECTING PACKAGING 4 MATERIALS THAT ARE I DENTIFIED IN THE PLA N; 5 2. TRANSPORTING RECYCLAB LE OR COMPOSTABLE 6 PACKAGING MATERIALS TO A RECYCLING OR OR GANICS RECYCLING FAC ILITY; 7 3. PROCESSING PACKAGING MATERIALS, INCLUDING 8 REMOVING CONTAMINATI ON; AND 9 4. RECYCLING PACKAGING M ATERIALS THAT ARE 10 DIVERTED TO BE RECYC LED OR COMPOSTED IN THE STATE; 11 (III) ESTABLISH A FEE STRUC TURE FOR PARTICIPATI NG 12 PRODUCERS THAT IS SE T IN A MANNER TO COV ER COSTS ASSOCIATED WITH: 13 1. IMPLEMENTING THE PLAN , INCLUDING THE 14 ADMINISTRATIVE COSTS OF A PRODUCER RESPON SIBILITY ORGANIZATIO N; 15 2. REIMBURSING LOCAL GOV ERNMENTS FOR COSTS I N 16 ACCORDANCE WITH ITEM (II) OF THIS PARAGRAPH ; 17 3. THE ADMINISTRATION , REVIEW, OVERSIGHT, AND 18 ENFORCEMENT OF THE P LAN BY THE DEPARTMENT ; 19 4. IMPLEMENTING THE STRA TEGY IN THE PLAN FOR 20 REDUCING PACKAGING M ATERIALS IN ACCORDAN CE WITH SUBSECTION (B)(9) OF 21 THIS SECTION; AND 22 5. IMPLEMENTING THE STRA TEGY IN THE PLAN FOR 23 IMPROVING REUSE , ORGANICS RECYCLING , AND RECYCLING IN T HE STATE IN 24 ACCORDANCE WITH SUBS ECTION (B)(11) OF THIS SECTION; 25 (IV) 1. DESCRIBE THE INCENTIV ES TO ENCOURAGE 26 PARTICIPATING PRODUC ERS TO ENGAGE IN WAS TE REDUCTION AND REC YCLING 27 ACTIVITIES; AND 28 2. DESCRIBE THE DISINCEN TIVES TO DISCOURAGE 29 DESIGNS OR PRACTICES THAT INCRE ASE THE COST OF MANA GING PACKAGING 30 MATERIALS; 31 20 HOUSE BILL 284 (V) BE EVALUATED BY AN IN DEPENDENT FINANCIAL AUDITOR, 1 AS DESIGNATED BY THE DEPARTMENT , TO ENSURE THAT THE C OSTS OF 2 IMPLEMENTING THE PLA N ARE COVERED ; AND 3 (VI) MEET ANY OTHER REQUIREMENT ESTABLIS HED BY THE 4 DEPARTMENT BY REGULAT ION. 5 (2) THE REIMBURSEMENT RAT E ESTABLISHED UNDER PARAGRAPH 6 (1)(II) OF THIS SUBSECTION S HALL BE: 7 (I) BASED ON: 8 1. THE POPULATION SIZE O F A LOCAL JURISDICTI ON; 9 2. THE DISTANCE TO THE N EAREST RECYCLING OR 10 ORGANICS RECYCLING F ACILITY; 11 3. THE COMMODITY VALUE O F RECYCLED PACKAGING 12 MATERIALS; AND 13 4. ANY SOCIOECONOMIC OR GEOGRAPHIC FACTOR , AS 14 DETERMINED BY THE DEPARTMENT ; AND 15 (II) DISCOUNTED EQUIVALENT TO THE ESTIMATED ANN UAL 16 VOLUME OF PACKAGING MATERIALS SOLD IN TH E STATE TO A PERSON THA T IS 17 EXEMPT FROM THE REQU IREMENTS OF THIS SUB TITLE UNDER § 9–2503(B) OF THIS 18 SUBTITLE. 19 (3) THE FEE STRUCTURE EST ABLISHED UNDER PARAG RAPH (1)(III) 20 OF THIS SUBSECTION S HALL BE VARIABLE BAS ED ON: 21 (I) COSTS ASSOCIATED WITH TRANSPORTING , COLLECTING, 22 AND PROCESSING PACKA GING MATERIALS ; 23 (II) AN ECO–MODULATION OF FEES , INCLUDING ESTABLISHI NG: 24 1. A HIGHER FEE FOR PACKA GING MATERIALS WITH 25 LOW RECYCLABILITY OR RECYCLED CONTENT ; AND 26 2. A DISCOUNTED FEE FOR P ACKAGING MATERIALS 27 WITH HIGH RECYCLABIL ITY OR RECYCLED CONT ENT; AND 28 HOUSE BILL 284 21 (III) ANY OTHER FACTOR , AS DETERMINED BY THE 1 DEPARTMENT . 2 (4) (I) A PRODUCER RESPONSIBIL ITY ORGANIZATION SHA LL 3 RETAIN ANY FEE COLLE CTED UNDER THIS SUBS ECTION IN ITS OWN ACCOUNT . 4 (II) THE DEPARTMENT MAY REQUES T AT ANY TIME AN AUD IT OF 5 THE FINANCIAL RECORD S OF A PRODUCER RESP ONSIBILITY ORGANIZAT ION. 6 (E) THE FUNDING THAT WILL BE USED FOR IMPROVIN G REUSE, ORGANICS 7 RECYCLING, AND RECYCLING SHALL INCLUDE INVEST MENT IN MARKET 8 DEVELOPMENT AND EXIS TING AND FUTURE REUS E, ORGANICS RECYCLING , AND 9 RECYCLING INFRASTRUC TURE, GIVING PRIORITY TO I NVESTMENT IN EXISTIN G 10 INFRASTRUCTURE , INCLUDING: 11 (1) INSTALLING OR UPGRADI NG EQUIPMENT TO IMPR OVE THE 12 SORTING OF PACKAGING MATERIALS AT EXISTING SORTING AND PROCESSI NG 13 FACILITIES; 14 (2) MITIGATING THE IMPACT S OF PACKAGING MATER IALS ON OTHER 15 COMMODITIES AT EXIST ING SORTING AND PROC ESSING FACILITIES; AND 16 (3) CAPITAL EXPENDITURES FOR NEW TECHNOLOGY , EQUIPMENT, 17 AND FACILITIES, BASED ON THE RESULTS OF THE STATEWIDE REC YCLING NEEDS 18 ASSESSMENT CONDUCTED UNDER § 9–1702.2 OF THIS TITLE. 19 (F) THE DEPARTMENT SHALL REVI EW: 20 (1) THE PRODUCER RESPONSI BILITY PLAN REQUIRED UNDER 21 SUBSECTION (A) OF THIS SECTION; AND 22 (2) THE WORK PRODUCT OF THE INDEPENDENT F INANCIAL AUDITOR 23 DESIGNATED BY THE DEPARTMENT TO EVALUAT E THE FINANCING COMP ONENT OF 24 THE PRODUCER RESPONS IBILITY PLAN UNDER S UBSECTION (D)(1)(V) OF THIS 25 SECTION. 26 (G) (1) WITHIN 120 DAYS AFTER RECEIVING A PROPOSED PRODUCER 27 RESPONSIBIL ITY PLAN, THE DEPARTMENT SHALL APPR OVE, APPROVE WITH 28 CONDITIONS, OR REJECT THE PLAN . 29 (2) IN MAKING A DETERMINA TION UNDER PARAGRAPH (1) OF THIS 30 SUBSECTION, THE DEPARTMENT SHALL CONS IDER WHETHER : 31 22 HOUSE BILL 284 (I) THE PRODUCER RESPONSI BILITY PLAN COMPLIES WITH 1 THE REQUIREMENTS OF THIS SECTION, INCLUDING WHETHER TH E FINANCING 2 METHOD WILL COVER TH E COSTS OF IMPLEMENT ING THE PLAN; AND 3 (II) THE PRODUCER RESPONSI BILITY ORGANIZATION ENGAGED 4 SUFFICIENTLY WITH ST AKEHOLDERS , INCLUDING LOCAL GOVE RNMENTS, IN 5 DEVELOPING THE PLAN. 6 (3) NOT LATER THAN 60 DAYS AFTER THE DATE A PRODUCER 7 RESPONSIBILITY PLAN IS INITIALLY APPROVE D UNDER THIS SECTION , A PRODUCER 8 RESPONSIBILITY ORGAN IZATION SHALL PAY TO THE DEPARTMENT : 9 (I) THE DEPARTMENT ’S COST OF REVIEWING THE PLAN; 10 (II) THE DEPARTMENT ’S ESTIMATED COSTS OF 11 ADMINISTERING , OVERSEEING, AND ENFORCING THE PL AN BETWEEN THE INITI AL 12 DATE OF APPROVAL AND THE DATE OF THE INIT IAL ANNUAL REPORT RE QUIRED 13 UNDER § 9–2507 OF THIS SUBTITLE. 14 (H) WITHIN 6 MONTHS AFTER THE DAT E A PRODUCER R ESPONSIBILITY 15 PLAN IS APPROVED UND ER THIS SECTION , A PRODUCER RESPONSIB ILITY 16 ORGANIZATION SHALL I MPLEMENT THE PLAN . 17 (I) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION 18 AND SUBJECT TO PARAG RAPH (3) OF THIS SUBSECTION , AN APPROVED PRODUCER 19 RESPONSIBILITY PLAN SHALL EXPIRE AFTER 5 YEARS. 20 (2) A PRODUCER RESPONSIBIL ITY PLAN MAY CONTINU E AFTER 5 21 YEARS IF IT IS RENEG OTIATED, RENEWED, OR AMENDED AND APPRO VED BY THE 22 DEPARTMENT IN ACCORDA NCE WITH THIS SUBTIT LE. 23 (3) THE DEPARTMENT MAY RESCIN D APPROVAL OF A PRODUC ER 24 RESPONSIBILITY PLAN AT ANY TIME FOR GOOD CAUSE. 25 (4) IF THE DEPARTMENT RESCINDS A N APPROVAL OF A PROD UCER 26 RESPONSIBILITY PLAN UNDER PARAGRAPH (3) OF THIS SUBSECTION , THE 27 PRODUCER, OR IF APPLICABLE , THE PRODUCER RESPONS IBILITY ORGAN IZATION 28 MAY AMEND THE PLAN A ND SUBMIT IT TO THE DEPARTMENT FOR APPROV AL IN 29 ACCORDANCE WITH THIS SUBTITLE. 30 (5) IF, BASED ON THE ANNUAL REPORT SUBMITTED UND ER § 9–2507 31 OF THIS SUBTITLE , THE PERFORMANCE GOAL S ESTABLISHED UNDER SUBSECTION 32 (B)(3) OF THIS SECTION HAVE NOT BEEN ACHIEVED, THE DEPARTMENT MAY : 33 HOUSE BILL 284 23 (I) REQUIRE THAT A PRODUC ER RESPONSIBILITY 1 ORGANIZATION AMEND T HE PRODUCER RESPONSI BILITY PLAN; AND 2 (II) IMPOSE AN ADMINISTRAT IVE PENALTY ON A PRO DUCER 3 RESPONSIBILITY ORGAN IZATION IN ACCORDANC E WITH § 9–2510(C) OF THIS 4 SUBTITLE. 5 (6) IF THE DEPARTMENT REQUIRES A PRODUCER RESPONSIBIL ITY 6 ORGANIZATION TO AMEN D THE PRODUCER RESPO NSIBILITY PLAN UNDER 7 PARAGRAPH (5) OF THIS SUBSECTION , THE PRODUCER RESPONS IBILITY 8 ORGANIZATION MUST CO VER THE COST OF THE DEPARTMENT ’S REVIEW AND 9 SUPPLEMENTAL WORK ON THE PLAN. 10 9–2505. 9–2502. 11 (A) THERE IS A PRODUCER R ESPONSIBILITY PLAN ADVISORY COUNCIL . 12 (B) THE PURPOSE OF THE AD VISORY COUNCIL IS TO PROVIDE ADVICE TO 13 THE DEPARTMENT AND PRODUC ER RESPONSIBILITY ORGANIZATIONS FOR 14 DRAFTING, AMENDING, AND IMPLEMENTING PRO DUCER RESPONSIBILITY PLANS 15 AND MAKE RECOMMENDAT IONS REGARDING ESTAB LISHING AND IMPLEMEN TING A 16 PRODUCER RESPONSIBIL ITY PROGRAM IN THE STATE FOR PACKAGING M ATERIALS. 17 (C) (1) THE ADVISORY COUNCIL SHALL CONSIST OF UP TO 21 MEMBERS, 18 APPOINTED BY THE SECRETARY, REPRESENTING A BROAD RANGE OF INT ERESTED 19 STAKEHOLDERS APPOINT ED BY THE SECRETARY, INCLUDING: 20 (I) REPRESENTATIVES FROM THE FOLLOWING INDUST RIES OR 21 ENTITIES IN THE STATE: 22 1. LOCAL GOVERNMENT AGEN CIES RESPONSIBLE FOR 23 RECYCLING PROGRAMS ; 24 2. RECYCLABLES AND COMPO STABLE MATERIALS 25 COLLECTORS FROM BOTH THE PUBLIC AND PRIVATE SECTORS ; 26 3. RECYCLING PROCESSORS FROM BOTH THE PUBLIC 27 AND PRIVATE SECTORS ; 28 4. ORGANICS RECY CLING PROCESSORS ; 29 5. THE PRODUCERS FROM THE CONSUMER GOODS 30 SECTOR; 31 24 HOUSE BILL 284 6. RETAIL AND SMALL BUSI NESSES; AND 1 7. MATERIAL–ORIENTED TRADE GROUP S; 2 (II) A REPRESENTATIVE FROM EACH PRODUCER 3 RESPONSIBILITY ORGAN IZATION; 4 (III) REPRESENTATIVES OF AT LEAST TWO NONPROFIT 5 ORGANIZATIONS IN THE STATE WITH MISSIONS R ELATED TO REDUCING W ASTE; 6 (IV) (III) AT LEAST ONE REPRESEN TATIVE OF AN 7 ENVIRONMENTAL ADVOCA CY ORGANIZATION ; 8 (V) (IV) AT LEAST ONE REPRESEN TATIVE OF AN 9 ENVIRONMENTAL JUSTICE ADVOCACY ORGANIZATIO N THAT ADVOCATES ON BE HALF 10 OF OVERBURDENED OR U NDERSERVED COMMUNITI ES, AS DEFINED IN § 1–701 OF 11 THIS ARTICLE; AND 12 (VI) (V) AT LEAST TWO MEMBERS OF THE PUBLIC WHO RE SIDE 13 IN THE STATE. 14 (2) IN APPOINTING MEMBER S TO THE ADVISORY CO UNCIL, 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 HOW W ASTE AND RECYCLABLE AND 20 COMPOSTABLE MATERIAL S ARE COLLECTED AND PROCESSED IN THE STATE. 21 (3) A REPRESENTATIVE FROM A PRODUCER RESPONSIBILITY 22 ORGANIZATION MAY NOT SERVE AS A V OTING MEMBER OR AS C OCHAIR OF THE 23 ADVISORY COUNCIL . 24 (D) FROM AMONG THE ADVISOR Y COUNCIL MEMBERS , THE SECRETARY 25 SHALL DESIGNATE TWO REPRESENTATIVES TO S ERVE AS COCHAIRS . 26 (E) THE DEPARTMENT SHALL PROV IDE STAFF FOR THE AD VISORY 27 COUNCIL. 28 (F) A MEMBER OF THE ADVISO RY COUNCIL: 29 HOUSE BILL 284 25 (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) (G) THE ADVISORY COUNCIL SHALL MEET AT LEAST QUARTERLY THE 5 REQUEST OF THE SECRETARY. 6 (G) (H) (1) THE ADVISORY COUNCIL SHALL: EVALUATE AND MAKE 7 RECOMMENDATIONS , INCLUDING LEGISLATIV E RECOMMENDATIONS , ON HOW TO 8 EFFECTIVELY ESTABLIS H AND IMPLEMENT A PR ODUCER RESPONSIBILIT Y 9 PROGRAM IN THE STATE FOR PACKAGING M ATERIALS. 10 (2) IN MAKING RECOMMENDAT IONS UNDER PARAGRAPH (1) OF THIS 11 SUBSECTION, THE ADVISORY COUNCIL SHALL INCLUDE RECOMM ENDATIONS FOR 12 CREATING A SINGLE RE PRESENTATIVE ORGANIZ ATION OF PRODUCERS T O 13 INITIALLY FULFILL TH E REQUIREMENTS UNDER A PRODUCER RESPONSIB ILITY 14 PROGRAM. 15 (I) ON OR BEFORE DECEMBER 1, 2025, THE ADVISORY COUNCIL SHALL 16 REPORT ITS FINDINGS AND RECOMMENDATIONS TO THE GOVERNOR AND , IN 17 ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, THE SENATE 18 COMMITTEE ON EDUCATION, ENERGY, AND THE ENVIRONMENT AND THE HOUSE 19 ENVIRONMENT AND TRANSPORTATION COMMITTEE. 20 (1) ON REQUEST BY A PRODU CER OR PRODUCER RESP ONSIBILITY 21 ORGANIZATION , PROVIDE ADVICE REGAR DING THE DRAFTING OR AMENDING OF A 22 PRODUCER RESPONSIBIL ITY PLAN REQUIRED UN DER § 9–2504 OF THIS SUBTITLE; 23 (2) RECEIVE AND REVIEW TH E PRODUCER RESPONSIB ILITY PLANS 24 SUBMITTED IN ACCORDA NCE WITH § 9–2504 OF THIS SUBTITLE; 25 (3) RECEIVE AND REVIEW AN NUAL REPORTS SUBMITT ED IN 26 ACCORDANCE WITH § 9–2507 OF THIS SUBTITLE; 27 (4) MAKE RECOMMENDATIONS TO THE DEPARTMENT REGARDING 28 PRODUCER RESPONSIBIL ITY PLAN APPROVAL ; 29 (5) MAKE RECOMMENDATIONS TO THE DEPARTMENT AND 30 PRODUCER RESPONSIBIL ITY ORGANIZATIONS RE GARDING PRODUCER 31 RESPONSIBILITY PLAN IMPLEMENTATION ; AND 32 26 HOUSE BILL 284 (6) PROVIDE WRITTEN RECOM MENDATIONS REGARDING THE 1 PRODUCER RESPONSIBIL ITY PLAN, INCLUDING ANY UPDATE OR REVISION TO AN 2 APPROVED PLAN , TO A PRODUCER RESPON SIBILITY ORGANIZATIO N BEFORE THE 3 PRODUCER RESPONSIBIL ITY ORGANIZATION SUB MITS THE PLAN TO THE 4 DEPARTMENT . 5 9–2506. 6 (A) IN ACCORDANCE WITH TH E REQUIREMENTS OF A PRODU CER 7 RESPONSIBILITY ORGAN IZATION, AS ESTABLISHED IN AN APPROVED PRODUCER 8 RESPONSIBILITY PLAN ON FILE WITH THE DEPARTMENT , AND ANY OTHER 9 REQUIREMENT ADOPTED BY THE DEPARTMENT , A LOCAL GOVERNMENT M AY 10 REQUEST REIMBURSEMEN T FROM A PRODUCER R ESPONSIBILITY ORGANI ZATION 11 FOR COSTS ASSOCIATED WITH COLLECTING , TRANSPORTING , AND PROCESSING 12 PACKAGING MATERIALS THAT ARE IDENTIFIED UNDER THE PLAN , INCLUDING COSTS 13 ASSOCIATED WITH RECY CLING SERVICES FOR P UBLIC PLACES AND PUB LIC 14 HOUSING. 15 (B) (1) IF MULTIPLE PRODUCER RE SPONSIBILITY ORGANIZ ATIONS 16 REGISTER APPROVED PR ODUCER RESPONSIBILIT Y PLANS WITH THE DEPARTMENT 17 IN ACCORDANCE WITH T HIS SUBTITLE , THE PRODUCER RESPONS IBILITY 18 ORGANIZATIONS SHALL COORDINATE REIMBURSE MENT REQUESTED UNDER THIS 19 SECTION. 20 (2) MULTIPLE PRODUCER RES PONSIBILITY ORGANIZA TIONS MAY 21 ESTABLISH A THIRD –PARTY ENTITY TO COOR DINATE REIMBURSEMENT IN 22 ACCORDANCE WITH THIS SUBSECTION. 23 (C) THIS SECTION DOES NOT AUTHORIZE A LOCAL GO VERNMENT TO 24 REQUEST REIMBURSEMEN T FROM A PRODUCER RE SPONSIBILITY ORGANIZATION 25 FOR COSTS ASSOCIATED WITH COMPOSTING MATE RIALS THAT ARE NOT P ACKAGING 26 MATERIALS, INCLUDING FOOD WASTE AND OTHER ORGANIC MA TERIALS. 27 9–2507. 28 (A) BEGINNING MARCH 1, 2027, EACH PRODUCER RESPON SIBILITY 29 ORGANIZATION THAT HA S AN APPROVED PRODUCER RESPONSIBIL ITY PLAN ON FILE 30 WITH THE DEPARTMENT SHALL REPO RT ANNUALLY TO THE DEPARTMENT ON THE 31 PROGRESS TOWARD MEET ING PLAN REQUIREMENT S AND GOALS FOR THE 32 IMMEDIATELY PRECEDIN G CALENDAR YEAR . 33 (B) THE REPORT REQUIRED U NDER SUBSECTION (A) OF THIS SECTION 34 SHALL INCLUDE : 35 HOUSE BILL 284 27 (1) A DETAILED DESCRIPTION OF THE REIMBURSEMENT METHODS 1 USED FOR COLLECTING , TRANSPORTING , AND PROCESSING PACKA GING 2 MATERIALS; 3 (2) (I) THE STATUS ON ACHIEVI NG THE PERFORMANCE G OALS 4 ESTABLISHED UNDER § 9–2504(B)(3) OF THIS SUBTITLE; AND 5 (II) IF THE GOALS HAVE NOT BEEN ACHIEVED , A DESCRIPTION 6 OF THE ACTIONS PROPO SED TO ACHIEVE THE G OALS; 7 (3) THE AMOUNT OF EACH PA CKAGING MATERIAL TYP E COLLECTED 8 IN THE STATE, INCLUDING THE METHOD OF DISPOSITION OF EA CH PACKAGING 9 MATERIAL TYPE; 10 (4) (I) THE NUMBER OF BEVERAG E CONTAINERS SOLD IN THE 11 STATE AND THE NUMBER COLLECTED, BY MATERIAL TYPE ; 12 (II) THE OVERALL REDEMPTIO N RATE AND EFFECTIVE RATE OF 13 RECYCLING OF BEVERAG E CONTAINERS BY MATE RIAL TYPE, AFTER SUBTRACTING 14 CONTAMINATION RATES, AND BY NUMBER OF UNI TS AND WEIGHT ; AND 15 (III) 1. A DESCRIPTION OF THE L OCATION OF COLLECTIO N 16 FACILITIES OR POINTS AND SORTING AND PROC ESSING FACILITIES FO R BEVERAGE 17 CONTAINERS; 18 2. A DESCRIPTION OF ANY I MPROVEMENTS MADE IN THE 19 REPORTING YEAR TO INCREASE THE EASE AND CONVENIENCE FOR CONSUMERS TO 20 RETURN BEVERAGE CONT AINERS; 21 3. A DESCRIPTION OF UNDER SERVED AREAS AND 22 ACTIONS THAT WILL BE TAKEN BY THE PRODUCE R RESPONSIBILITY ORG ANIZATION 23 TO IMPROVE THE AVAIL ABILITY OF COLLECTIO N FACILITIES OR POINTS IN 24 UNDERSERVED AREAS ; AND 25 4. ANY OTHER INFORMATION ON BEVERAGE 26 CONTAINERS REQUIRED BY THE DEPARTMENT ; 27 (5) THE TOTAL COST OF IMP LEMENTING THE PLAN , AS DETERMINED 28 BY AN INDEPENDENT FI NANCIAL AUDITOR INCL UDING: 29 (I) A COPY OF THE WORK PRODUCT OF THE INDEP ENDENT 30 FINANCIAL AUDITOR ; AND 31 28 HOUSE BILL 284 (II) FINANCIAL STATEMENTS DETAILING ALL PAYMEN TS 1 RECEIVED AND ISSUED BY THE PRODUCERS COV ERED UNDER THE APPRO VED PLAN; 2 (6) SAMPLES OF ALL EDUCAT IONAL MATERIALS PROV IDED TO 3 CONSUMERS OR OTHER ENTITIES; 4 (7) A DETAILED DESCRIPTION OF THE ACTIONS TAKEN AND AN 5 EVALUATION OF THE ME THODS USED TO DISSEM INATE EDUCATIONAL MA TERIALS, 6 INCLUDING RECOMMENDA TIONS, IF ANY, FOR HOW THE EDUCATIO NAL COMPONENT 7 OF THE PLAN CAN BE I MPROVED; 8 (8) A DETAILED DE SCRIPTION OF INVESTM ENTS MADE IN MARKET 9 DEVELOPMENT AND FOR IMPROVING REUSE , ORGANICS RECYCLING , AND 10 RECYCLING INFRASTRUC TURE; 11 (9) PROOF OF A THIRD –PARTY AUDIT OF : 12 (I) THE REDUCTION IN PACK AGING REPORTED ; 13 (II) THE DATA USED TO DETE RMINE THE ST ATUS OF ACHIEVING 14 PERFORMANCE GOALS ; 15 (III) THE AMOUNT OF EACH PA CKAGING MATERIAL TYP E 16 COLLECTED IN THE STATE; 17 (IV) THE NUMBER OF BEVERAG E CONTAINERS SOLD , 18 COLLECTED, AND REDEEMED IN THE STATE; AND 19 (V) THE OVERALL REDEMPTIO N RATE AND RECYCLING RATE OF 20 BEVERAGE CONTAINERS IN THE STATE; AND 21 (10) ANY OTHER INFORMATION AS REQUIRED BY THE DEPARTMENT . 22 (C) WHEN PROVIDING THE DEPARTMENT WITH THE A NNUAL REPORT 23 REQUIRED UNDER THIS SECTION, A PRODUCER RESPONSIB ILITY ORGANIZATION 24 SHALL PAY TO THE DEPARTMENT THE DEPARTMENT ’S ESTIMATED COSTS OF 25 ADMINISTERING , OVERSEEING, AND ENFORCING THE PL AN FOR THE 1 YEAR 26 IMMEDIATELY FOLLOWIN G THE ANNUAL REPORT . 27 (D) FINANCIAL, PRODUCTION , OR SALES DATA REPORT ED TO THE 28 DEPARTMENT BY A PRODU CER RESPONSIBILITY ORGANIZATION SHALL B E KEPT 29 CONFIDENTIAL BY THE DEPARTMENT AND MAY NO T BE SUBJECT TO PUBL IC 30 INSPECTION. 31 HOUSE BILL 284 29 (E) SUBJECT TO SUBSECTION (D) OF THIS SECTION, THE REPORT SHALL BE 1 POSTED ON THE WEBSIT E OF THE DEPARTMENT AND THE PR ODUCER 2 RESPONSIBILITY ORGAN IZATION. 3 9–2508. 4 ANY PERSON PARTICIPAT ING IN A PRODUCER RE SPONSIBILITY PLAN IN 5 COMPLIANCE WITH THIS SUBTITLE IS IMMUNE F ROM LIABILITY UNDER STATE LAW 6 RELATING TO ANTITRUS T AND RESTRAINT OF T RADE FOR ANY COOPERA TED 7 ACTIVITIES ARISING O UT OF THE RECYCLING , REUSE, AND DISPOSAL OF PACK AGING 8 MATERIALS. 9 9–2509. 10 THE DEPARTMENT SHALL ADOP T REGULATIONS TO CAR RY OUT THIS 11 SUBTITLE. 12 9–2510. 13 (A) EXCEPT AS OTHERWISE P ROVIDED UNDER SUBSEC TIONS (B) AND (C) OF 14 THIS SECTION, THE PROVISIONS OF §§ 9–334 THROUGH 9–344 OF THIS TITLE APPLY 15 TO ENFORCE VIOLATION S OF: 16 (1) THIS SUBTITLE; 17 (2) ANY REGULATION ADOPTE D UNDER THIS SUBTITL E; OR 18 (3) ANY ORDER ISSUED UNDE R THIS SUBTITLE. 19 (B) (1) A PRODUCER OR PRODUCER RESPONSIBILITY ORGAN IZATION 20 THAT VIOLATES THIS S UBTITLE IS SUBJECT TO: 21 (I) FOR A FIRST VIOLATION , A CIVIL PENALTY OF $5,000; 22 (II) FOR A SECOND VIOLATIO N, A CIVIL PENALTY OF $10,000; 23 AND 24 (III) FOR A THIRD AND SUBSE QUENT VIOLATION , A CIVIL 25 PENALTY OF $20,000. 26 (2) A PENALTY MAY NOT BE I MPOSED ON A PRODUCER UNDER THIS 27 SECTION UNLESS : 28 30 HOUSE BILL 284 (I) THE DEPARTMENT FIRST ISSU ES A WRITTEN NOTICE OF 1 VIOLATION TO THE PRO DUCER; AND 2 (II) THE VIOLATION IS NOT CORRECTED WITHIN 60 DAYS OF 3 RECEIPT OF THE WRITT EN NOTICE. 4 (C) IF, BASED ON THE ANNUAL REPORT SUBMITT ED UNDER § 9–2507 OF 5 THIS SUBTITLE, THE PERFORMANCE GOAL S ESTABLISHED UNDER § 9–2504(B)(3) OF 6 THIS SUBTITLE HAVE N OT BEEN ACHIEVED , THE DEPARTMENT MAY IMPOSE AN 7 ADMINISTRATIVE PENAL TY, NOT TO EXCEED $5,000, ON THE PRODUCER 8 RESPONSIBILITY ORGAN IZATION. 9 (D) ANY PENALTY COLLECTED BY THE DEPARTMENT UNDER THIS SECTION 10 SHALL BE PAID INTO T HE STATE RECYCLING TRUST FUND ESTABLISHED UNDE R § 11 9–1707 OF THIS TITLE. 12 SECTION 2. AND BE IT FURTHER ENACTED, That: 13 (a) In this section, “advisory council” and “producer” have the meanings stated in 14 § 9–2501 of the Environment Article, as enacted under Section 1 of this Act. 15 (b) (1) The Office of Recycling in the Department of the Environment shall 16 procure a statewide recycling needs assessment in accordance with this section. 17 (2) The Office shall hire an independent consultant to conduct a statewide 18 recycling needs assessment that includes: 19 (i) an analysis of the State’s current solid waste streams, including: 20 1. solid waste generated in the State by local jurisdiction, 21 type, and material; 22 2. disposal methods by material type and amount; and 23 3. associated costs and revenues for solid waste disposal 24 programs; 25 (ii) an analysis of the State’s current recycling streams, including: 26 1. recyclable materials processed by local jurisdiction, type, 27 and amount; 28 2. processing methods by material type and amount; 29 3. associated costs and revenues for recycling programs, 30 collection, and tipping fees; and 31 HOUSE BILL 284 31 4. an estimate of the amount of recyclable materials that are 1 not currently being recycled; 2 (iii) an evaluation of the current infrastructure and capacity related 3 to, need for, and associated costs of: 4 1. recycling access and availability; 5 2. collecting and hauling recyclable or compostable materials 6 in the State; 7 3. processing recyclable or compostable materials in the 8 State; 9 4. taking advantage of favorable market conditions or other 10 opportunities for increasing recycling or organics recycling in the State; 11 5. in coordination with local governments, consumer 12 education regarding recycling, organics recycling, and contamination reduction; 13 6. reuse infrastructure; and 14 7. organics recycling infrastructure; 15 (iv) an evaluation of commingled recycling processing facility worker 16 conditions, wages, and benefits; 17 (v) an evaluation of opportunities in the recycling system for women 18 and minority individuals; 19 (vi) an evaluation of local government requirements related to 20 multifamily and commercial recycling services and their implementation; 21 (vii) the sufficiency of recycling education programs relative to 22 desired equity outcomes; 23 (viii) an evaluation of the economic opportunities in the State’s 24 recycling system, including: 25 1. State and local revenue that may be considered lost 26 because recyclable materials are not being recycled; 27 2. current jobs associated with the solid waste and recycling 28 industries; 29 32 HOUSE BILL 284 3. opportunities to increase employment in the recycling 1 industry by material type; 2 4. business opportunities associated with recycling; 3 5. barriers to increasing the use of recyclable materials as 4 feedstock for principal processors and manufacturers and means of eliminating those 5 barriers; and 6 6. recommendations for incentives to stimulate job growth 7 and business opportunities in the State’s recycling industry; 8 (ix) recommendations for improving equity and equitable outcomes 9 for underserved populations in the State’s recycling system; 10 (x) an analysis of the costs and benefits of implementing an extended 11 producer responsibility program, including to: 12 1. local governments; 13 2. waste producers; 14 3. residents; and 15 4. waste management companies; 16 (xi) an analysis of the potential environmental impact of an extended 17 producer responsibility program, including through: 18 1. increased recycling; 19 2. resource recovery; 20 3. waste reduction; and 21 4. reduced environmental damage; and 22 (xii) recommendations on the best practices to follow from successful 23 extended producer responsibility programs in other states and countries. 24 (c) On or before April 1, 2025, the Office shall report on the results of the 25 assessment conducted under this section to the Governor and, in accordance with § 2–1257 26 of the State Government Article, the General Assembly. 27 (d) In conducting the assessment required under this section, the independent 28 consultant shall consult with the advisory council, appropriate local governmental entities, 29 and regional solid waste organizations and producers in the State. 30 HOUSE BILL 284 33 SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 1 October 1, 2023. 2 Approved: ________________________________________________________________________________ Governor. ________________________________________________________________________________ Speaker of the House of Delegates. ________________________________________________________________________________ President of the Senate.