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. *sb0222* SENATE BILL 222 M3 3lr0665 HB 307/22 – ENT & ECM CF HB 284 By: Senators Augustine, Hester, Elfreth, and Hettleman Hettleman, Brooks, Kagan, Lewis Young, and Watson Introduced and read first time: January 23, 2023 Assigned to: Education, Energy, and the Environment Committee Report: Favorable with amendments Senate action: Adopted with floor amendments Read second time: March 8, 2023 CHAPTER ______ 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 hire an independent contractor to conduct certain 18 statewide recycling needs assessments in a certain manner and to submit certain 19 reports on the results of the assessments to the Governor and the General Assembly 20 on or before certain dates; and generally relating to producer responsibility for 21 packaging materials. 22 BY repealing and reenacting, without amendments, 23 2 SENATE BILL 222 Article – Environment 1 Section 9–1701(a) and (o) 2 Annotated Code of Maryland 3 (2014 Replacement Volume and 2022 Supplement) 4 BY repealing and reenacting, with amendments, 5 Article – Environment 6 Section 9–1702 9–1701(n), 9–1702, and 9–1707(f) 7 Annotated Code of Maryland 8 (2014 Replacement Volume and 2022 Supplement) 9 BY adding to 10 Article – Environment 11 Section 9–1702.2; and 9–2501 through 9–2510 to be under the new subtitle “Subtitle 12 25. Producer Responsibility for Packaging Materials” 13 Annotated Code of Maryland 14 (2014 Replacement Volume and 2022 Supplement) 15 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 16 That the Laws of Maryland read as follows: 17 Article – Environment 18 9–1701. 19 (a) In this subtitle the following words have the meanings indicated. 20 (n) (1) “Organics recycling” means any process in which organic materials OR 21 COMPOSTABLE PACKAGIN G MATERIALS are collected, separated, or processed and 22 returned to the marketplace in the form of raw materials or products. 23 (2) “Organics recycling” includes anaerobic digestion and composting. 24 (o) “Organics recycling facility” means a facility where organics recycling takes 25 place. 26 9–1702. 27 (a) There is an Office of Recycling created within the Department. 28 (b) The Secretary shall appoint a Director and sufficient staff to perform the 29 functions of the Office. After July 1, 1989, the number of staff shall be as provided in the 30 budget. 31 (c) The Secretary may adopt regulations to carry out the provisions of this 32 subtitle. 33 SENATE BILL 222 3 (d) The Office shall: 1 (1) Assist the counties in developing an acceptable recycling plan required 2 under § 9–1703 of this subtitle and § 9–505 of this title, including technical assistance to 3 the local governments; 4 (2) Coordinate the efforts of the State to facilitate the implementation of 5 the recycling goals at the county level; 6 (3) Review all recycling plans submitted as part of a county plan as 7 required under § 9–505 of this title and advise the Secretary on the adequacy of the 8 recycling plan; 9 (4) Administer the Statewide Electronics Recycling Program under Part IV 10 of this subtitle; [and] 11 (5) Promote the development of markets for recycled materials and 12 recycled products in the State in accordance with § 9–1702.1 of this subtitle; 13 (6) CONDUCT PROCURE A STATEWIDE RECYCLIN G NEEDS 14 ASSESSMENT IN ACCORD ANCE WITH § 9–1702.2 OF THIS SUBTITLE; AND 15 (7) REVIEW AND APPROVE , IN CONSULTATION WITH TH E PRODUCER 16 RESPONSIBILITY PLAN ADVISORY COUNCIL EST ABLISHED UNDER § 9–2505 OF THIS 17 TITLE, PRODUCER RESPONSIBIL ITY PLANS AND ANNUAL REPORTS SUBMITTED IN 18 ACCORDANCE WITH SUBTITLE 25 OF THIS TITLE. 19 (e) Beginning on January 1, 1990, and biannually thereafter, the Office shall, in 20 coordination with the Maryland Environmental Service, study and report to the Governor 21 and, subject to § 2–1257 of the State Government Article, the General Assembly on: 22 (1) The identification and location of recycling centers, including an 23 analysis of existing recycling centers and the need to expand these facilities or construct 24 new recycling centers; 25 (2) Programs necessary to educate the public on the need to participate in 26 recycling efforts; 27 (3) The economics and financing of existing and proposed systems of waste 28 disposal and recycling; 29 (4) State procurement policies for the purchase of recycled materials; 30 (5) Programs necessary to reduce the amount of solid waste generated for 31 disposal by a State agency or unit; 32 4 SENATE BILL 222 (6) The liaison role with local governments, the federal government, and 1 the private sector; 2 (7) The percentage reduction in the amount of solid waste that has been 3 achieved by each county; and 4 (8) Economically feasible methods for the recycling of scrap automobile 5 tires, batteries, and white goods. 6 (f) (1) By December 1, 1988, the Office shall, in coordination with the 7 Maryland Environmental Service and the Governor’s Task Force on Solid Waste, make 8 recommendations to the General Assembly for the financing of a comprehensive system of 9 recycling at the State and local level, including funding for recycling centers, recycling 10 equipment, recycling education, and marketing strategies. 11 (2) After the financing recommendations are made under paragraph (1) of 12 this subsection, each county may submit to the Office and the Governor a detailed request 13 for funds necessary to assist in the development and implementation of a recycling plan 14 under guidelines developed by the Office. 15 (g) In studying feasible methods for the management and recycling of used tires 16 under subsection (e)(9) of this section, the Office of Recycling shall consult with the 17 appropriate industry, including representatives of: 18 (1) Tire manufacturers; 19 (2) Tire dealers; and 20 (3) Tire recyclers. 21 9–1702.2. 22 (A) IN THIS SECTION , “ADVISORY COUNCIL ” AND “PRODUCER 23 RESPONSIBILITY ORGAN IZATION” HAVE THE MEANINGS ST ATED IN § 9–2501 OF THIS 24 TITLE. 25 (B) IN ACCORDANCE WITH SU BSECTION (D) OF THIS SECTION AND TO CARRY 26 OUT THE REQUIREMENTS OF § 9–1702(D)(6) OF THIS SUBTITLE, THE OFFICE SHALL 27 HIRE AN INDEPENDENT CONSULTANT TO CONDUCT A STATEWIDE RECYCLING NEEDS 28 ASSESSMENT AT LEAST ONCE EVERY 10 YEARS OR AS REC OMMENDED BY THE 29 ADVISORY COUNCIL THA T INCLUDES: 30 (1) AN ANALYSIS OF THE STATE’S CURRENT SOLID WAST E STREAMS, 31 INCLUDING: 32 SENATE BILL 222 5 (I) SOLID WASTE GENERATED IN THE STATE BY LOCAL 1 JURISDICTION, TYPE, AND MATERIAL ; 2 (II) DISPOSAL METHODS BY M ATERIAL TYPE AND AMOUNT; AND 3 (III) ASSOCIATED COSTS AND REVENUES FOR SOLID W ASTE 4 DISPOSAL PROGRAMS ; 5 (2) AN ANALYSIS OF THE STATE’S CURRENT RECYCLING STREAMS, 6 INCLUDING: 7 (I) RECYCLABLE MATERIALS PROCESSED BY LOCAL 8 JURISDICTION, TYPE, AND AMOUNT ; 9 (II) PROCESSING METHODS BY MATER IAL TYPE AND AMOUNT ; 10 (III) ASSOCIATED COSTS AND REVENUES FOR RECYCLI NG 11 PROGRAMS, COLLECTION, AND TIPPING FEES ; AND 12 (IV) AN ESTIMATE OF THE AM OUNT OF RECYCLABLE M ATERIALS 13 THAT ARE NOT CURRENT LY BEING RECYCLED ; 14 (1) (3) AN EVALUATION OF THE CURRE NT INFRASTRUCTURE AN D 15 CAPACITY RELATED TO , NEED FOR, AND ASSOCIATED COSTS OF: 16 (I) RECYCLING ACCESS AND AVAILABILITY; 17 (II) COLLECTING AND HAULIN G RECYCLABLE OR 18 COMPOSTABLE MATERIAL S IN THE STATE; 19 (III) PROCESSING RECYCLABLE OR COMPOSTABLE MATER IALS 20 IN THE STATE; 21 (IV) TAKING ADVANTAGE OF F AVORABLE MARKET COND ITIONS 22 OR OTHER OPPORTUNITI ES FOR INCREASING RE CYCLING OR ORGANICS RECYCLING 23 IN THE STATE; 24 (V) IN COORDINATION WITH LOCAL GOVERNMENTS , CONSUMER 25 EDUCATION REGARDIN G RECYCLING, ORGANICS RECYCLING , AND CONTAMINATION 26 REDUCTION; 27 (VI) REUSE INFRASTRUCTURE ; AND 28 (VII) ORGANICS RECYCLING IN FRASTRUCTURE ; 29 6 SENATE BILL 222 (2) (4) AN EVALUATION OF COMM INGLED RECYCLING PRO CESSING 1 FACILITY WORKER COND ITIONS, WAGES, AND BENEFITS; 2 (3) (5) AN EVALUATION OF OPPO RTUNITIES IN THE REC YCLING 3 SYSTEM FOR WOMEN AND MINORITY INDIVIDUALS ; 4 (4) (6) AN EVALUATION OF LOCA L GOVERNMENT REQUIRE MENTS 5 RELATED TO MULTIFAMI LY AND COMMERCIAL RECYCLING SERVICES A ND THEIR 6 IMPLEMENTATION ; 7 (5) (7) THE SUFFICIENCY OF RE CYCLING EDUCATION PR OGRAMS 8 RELATIVE TO DESIRED EQUITY OUTCOMES ; 9 (6) AN EVALUATION OF OPPO RTUNITIES IN THE REC YCLING SYSTEM 10 FOR BUSINESSES IN TH E STATE; AND 11 (8) AN EVALUATION OF THE ECONOMIC OPPORTUNITI ES IN THE 12 STATE’S RECYCLING SYSTEM, INCLUDING: 13 (I) STATE AND LOCAL REVEN UE THAT MAY BE CONSI DERED 14 LOST BECAUSE RECYCLA BLE MATERIALS ARE NO T BEING RECYCLED ; 15 (II) CURRENT JOBS ASSOCIAT ED WITH THE SOLID WA STE AND 16 RECYCLING INDUSTRIES ; 17 (III) OPPORTUNITIES TO INCR EASE EMPLOYMENT IN THE 18 RECYCLING INDUSTRY B Y MATERIAL TYPE ; 19 (IV) BUSINESS OPPORTUNITIE S ASSOCIATED WITH RE CYCLING; 20 (V) BARRIERS TO INCREASIN G THE USE OF RECYCLA BLE 21 MATERIALS AS FEEDSTO CK FOR PRINCIPAL PRO CESSORS AND MANUFACT URERS 22 AND MEANS OF ELIMINA TING THOSE BARRIERS ; AND 23 (VI) RECOMMENDATIONS FOR I NCENTIVES TO STIMULA TE JOB 24 GROWTH AND BUSINESS OPPORTUNITIES IN THE STATE’S RECYCLING INDUSTRY ; 25 (7) (9) RECOMMENDATIONS FOR I MPROVING EQUITY AND 26 EQUITABLE OUTCOMES F OR UNDERSERVED POPUL ATIONS IN THE STATE’S 27 RECYCLING SYSTEM , INCLUDING RECOMMENDA TIONS FOR NEW RESPON SIBILITIES 28 OF PRODUCER RESPONSI BILITY ORGANIZATIONS AND RECOMMENDATIONS FOR 29 FUNDING THE NEW RESPONSIBILITIES . RESPONSIBILITIES ; 30 SENATE BILL 222 7 (10) AN ANALYSIS OF THE CO STS AND BENEFITS OF IMPLEMENTING A N 1 EXTENDED PRODUCER RE SPONSIBILITY PROGRAM , INCLUDING TO: 2 (I) LOCAL GOVERNMENTS ; 3 (II) WASTE PRODUCERS ; 4 (III) RESIDENTS; AND 5 (IV) WASTE MANAGEMENT COMP ANIES; 6 (11) AN ANALYSIS OF THE PO TENTIAL ENVIRONMENTA L IMPACT OF AN 7 EXTENDED PRODUCER RESPONSIBILITY PROGR AM, INCLUDING THROUGH : 8 (I) INCREASED RECYCLING ; 9 (II) RESOURCE RECOVERY ; 10 (III) WASTE REDUCTION ; AND 11 (IV) REDUCED ENVIRONMENTAL DAMAGE; 12 (12) RECOMMENDATIONS ON TH E BEST PRACTICES TO FOLLOW FROM 13 SUCCESSFUL EXTENDED PRODUCER RESPONSIBIL ITY PROGRAMS IN OTHE R STATES 14 AND COUNTRIES ; AND 15 (13) BASED ON THE DATA COL LECTED UNDER ITEM (3) OF THIS 16 SUBSECTION, A RECOMMENDATION ON A REASONABLE ANNUAL RATE PER TON OF 17 RECYCLED OR COMPOSTE D PACKAGING MATERIAL S, TO BE INCLUDED IN THE 18 PRODUCER RESPONSIBIL ITY PLANS REQUIRED U NDER § 9–2504 OF THIS TITLE, FOR 19 REIMBURSING LOCAL GO VERNMENTS FOR COSTS ASSOCIATED WITH : 20 (I) COLLECTING PACKAGING MATERIALS THAT ARE 21 IDENTIFIED IN PLANS ; 22 (II) TRANSPORTING RECYCLAB LE OR COMPOSTABLE 23 PACKAGING MATERIALS IDENTIFIED IN THE PL ANS; AND 24 (III) PROCESSING RECYCLABLE OR COMPOSTABLE PACKA GING 25 MATERIALS IDENTIFIED IN THE PLANS, INCLUDING REMOVING C ONTAMINATION . 26 (C) ON OR BEFORE APRIL 1, 2025, AND EACH APRIL 1 EVERY 10 YEARS 27 THEREAFTER OR AS RECOMMENDED BY TH E ADVISORY COUNCIL , THE OFFICE 28 SHALL REPORT ON THE RESULTS OF THE MOST RECENT ASSESSMENT CO NDUCTED 29 8 SENATE BILL 222 UNDER THIS SECTION T O THE GOVERNOR AND , IN ACCORDANCE WITH § 2–1257 OF 1 THE STATE GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY. 2 (D) IN CONDUCTING THE ASSESSMENT REQUIRED UNDER THIS SECTION, 3 THE OFFICE INDEPENDENT CONSULTA NT SHALL CONSULT WITH P RODUCER 4 RESPONSIBILITY ORGAN IZATIONS, THE PRODUCER RESPONS IBILITY PLAN 5 ADVISORY COUNCIL EST ABLISHED UNDER § 9–2505 OF THIS TITLE, APPROPRIATE 6 LOCAL GOVE RNMENTAL ENTITIES , AND REGIONAL SOLID W ASTE ORGANIZATIONS I N 7 THE STATE. 8 (E) (1) THE SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 9 OFFICE SHALL ESTABLIS H AND COLLECT A FEE TO BE PAID BY PRODUC ER 10 RESPONSIBILITY ORGAN IZATIONS TO COVER TH E COSTS ASSOCIATED WITH 11 CONDUCTING THE ASSES SMENTS REQUIRED UNDE R THIS SECTION. 12 (2) BEFORE ESTABLISHING A ND COLLECTING A FEE UNDER 13 PARAGRAPH (1) OF THIS SUBSECTION , THE OFFICE SHALL: 14 (I) PUBLISH A PROPOSED FE E ON ITS WEBSITE; AND 15 (II) ALLOW 90 CALENDAR DAYS FOR PUBLIC COMM ENT. 16 9–1707. 17 (f) (1) There is a State Recycling Trust Fund. 18 (2) The Fund shall consist of: 19 (i) The newsprint recycling incentive fee; 20 (ii) The telephone directory recycling incentive fee collected under § 21 9–1709 of this subtitle; 22 (iii) The covered electronic device manufacturer registration fee 23 collected under § 9–1728 of this subtitle; 24 (IV) ANY FEES COLLECTED FR OM PRODUCER RESPONSI BILITY 25 ORGANIZATIONS UNDER § 9–1702.2 OF THIS SUBTITLE OR SUBTITLE 25 OF THIS 26 TITLE; 27 [(iv)] (V) All fines and penalties collected under this subtitle AND § 28 9–2510 OF THIS TITLE; 29 [(v)] (VI) Money appropriated in the State budget to the Fund; and 30 SENATE BILL 222 9 [(vi)] (VII) Any other money from any other source accepted for the 1 benefit of the Fund. 2 (3) The Secretary shall administer the Fund. 3 (4) The Treasurer shall hold the Fund separately and the Comptroller shall 4 account for the Fund. 5 (5) At the end of each fiscal year, any unspent or unencumbered balance in 6 the Fund that exceeds $2,000,000 shall revert to the General Fund of the State in 7 accordance with § 7–302 of the State Finance and Procurement Article. 8 (6) In accordance with the State budget, the Fund shall be used only: 9 (i) To provide grants to the counties to be used by the counties to 10 develop and implement local recycling plans; 11 (ii) To provide grants to counties that have addressed methods for 12 the separate collection and recycling of covered electronic devices in accordance with § 13 9–1703(c)(1) of this subtitle; 14 (iii) To provide grants to municipalities to be used by the 15 municipalities to implement local covered electronic device recycling programs; [and] 16 (IV) IN ACCORDANCE WITH PA RAGRAPH (7) OF THIS 17 SUBSECTION, TO COVER THE COSTS O F THE STATEWIDE REC YCLING NEEDS 18 ASSESSMENT CONDUCTED UNDER § 9–1702.2 OF THIS SUBTITLE; 19 (V) IN ACCORDANCE WITH PA RAGRAPH (7) OF THIS 20 SUBSECTION, TO COVER THE COSTS O F PRODUCER RESPONSIB ILITY PLAN REVIEW , 21 OVERSIGHT, AND ENFORCEMENT UNDE R SUBTITLE 25 OF THIS TITLE; AND 22 [(iv)] (VI) To carry out the purposes of the land management 23 administration. 24 (7) (I) THERE SHALL BE A SEPA RATE ACCOUNT WITHIN THE FUND. 25 (II) THE SEPARATE ACCOUNT SHALL CONSIST OF : 26 1. ANY FEES COLLECTED FR OM PRODUCER 27 RESPONSIBILITY ORGAN IZATIONS UNDER § 9–1702.2 OF THIS SUBTITLE OR 28 SUBTITLE 25 OF THIS TITLE; AND 29 2. ALL FINES AND PENALTI ES COLLECTED UNDER § 30 9–2510 OF THIS TITLE. 31 10 SENATE BILL 222 (III) THE SEPARATE ACCOUNT SHALL BE USED ONLY F OR THE 1 COSTS OF THE STATEWI DE RECYCLING NEEDS A SSESSMENT COND UCTED UNDER § 2 9–1702.2 OF THIS SUBTITLE AND PRODUCER RESPONSIBIL ITY PLAN REVIEW , 3 OVERSIGHT, AND ENFORCEMENT UNDE R SUBTITLE 25 OF THIS TITLE. 4 [(7)] (8) (i) The Treasurer shall invest the money in the Fund in the 5 same manner as other State money may be invested. 6 (ii) Any investment earnings of the Fund shall be credited to the 7 General Fund of the State. 8 SUBTITLE 25. PRODUCER RESPONSIBILITY FOR PACKAGING MATERIALS. 9 9–2501. 10 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 11 INDICATED. 12 (B) “ADVISORY COUNCIL ” MEANS THE PRODUCER R ESPONSIBILITY PLAN 13 ADVISORY COUNCIL EST ABLISHED UNDER § 9–2505 OF THIS SUBTITLE. 14 (C) “BEVERAGE CONTAINER ” MEANS A PREPACKAGED BEVERAGE 15 CONTAINER: 16 (1) MADE OF ANY MATERIAL , INCLUDING GLASS , PLASTIC, METAL, 17 CARTON, POUCH, OR ASEPTIC PACKAGING , SUCH AS A DRINK BOX , OR OF 18 MULTIMATERIALS ; AND 19 (2) THE VOLUME OF WHICH I S NOT MORE THAN 5 LITERS. 20 (D) (C) “LOCAL GOVERNMENT ” MEANS: 21 (1) A COUNTY; OR 22 (2) A MUNICIPALITY. 23 (D) “MATERIALS RECYCLING F ACILITY” MEANS A FACILITY THA T RECEIVES 24 RECYCLABLE MATERIALS FOR MECHANICAL OR MA NUAL SORTING INTO 25 SPECIFICATION–GRADE COMMODITIES FO R SALE TO A BROKER O R END MARKET . 26 (E) “ORGANICS RECYCLING ” AND “ORGANICS RECYCLING F ACILITY” HAVE 27 THE MEANINGS STATED IN § 9–1701 OF THIS TITLE. 28 SENATE BILL 222 11 (F) “PACKAGING MATERIAL WA STE” MEANS THE PERCENTAGE OF THE 1 TOTAL WEIGHT OF PACK AGING MATERIALS SOLD OR DISTRIBUTED IN TH E STATE 2 THAT ARE NOT RECYCLE D, REUSED, OR COMPOSTED . 3 (E) (G) (1) “PACKAGING MATERIALS ” MEANS, REGARDLESS OF 4 RECYCLABILITY , ANY PART OF A PACKAG E OR CONTAINER , INCLUDING MATERIAL 5 THAT IS USED FOR THE CONTAINMENT , PROTECTION , HANDLING, DELIVERY, AND 6 PRESENTATION OF A PR ODUCT THAT IS SOLD , OFFERED FOR SALE , IMPORTED, OR 7 DISTRIBUTED IN THE STATE. 8 (2) “PACKAGING M ATERIALS” INCLUDES: 9 (I) PRIMARY, SECONDARY , AND TERTIARY PACKAGI NG 10 INTENDED FOR THE CON SUMER MARKET ; 11 (II) SERVICE PACKAGING DES IGNED AND INTENDED T O BE 12 FILLED AT THE POINT OF SALE, INCLUDING: 13 1. CARRY–OUT BAGS; 14 2. BULK GOODS BAGS ; AND 15 3. TAKE–OUT AND HOME DELIVER Y FOOD SERVICE 16 PACKAGING; AND 17 (III) BEVERAGE CONTAINERS . 18 (3) “PACKAGING MATERIALS ” DOES NOT INCLUDE ANY INCLUDE: 19 (I) ANY PART OF A PACKAGE OR CONTAINER THAT IS SO LD OR 20 SUPPLIED IN CONNECTI ON WITH: 21 (I) 1. A PESTICIDE PRODUCT RE GULATED BY THE FEDERAL 22 INSECTICIDE, FUNGICIDE, AND RODENTICIDE ACT UNDER 7 U.S.C. § 136 ET SEQ. 23 OR ANY OTHER APPLICA BLE FEDERAL LAW , RULE, OR REGULATION ; 24 (II) 2. A FEDERALLY REGULATED DRUG, MEDICAL DEVICE , 25 BIOLOGIC, OR DIAGNOSTIC, OR DIETARY SUPPLEMEN T INCLUDING ITEMS INTE NDED 26 FOR ANIMALS; OR 27 (III) 3. A MEDICAL PRODUCT THAT IS REQUIRED TO BE 28 STERILE OR ENCLOSED IN PACKAGING WITH TA MPER–RESISTANT SEALS TO 29 PROTECT PUBLIC HEALT H, INCLUDING MEDICAL PR ODUCTS INTENDED FOR 30 ANIMALS; OR 31 12 SENATE BILL 222 (II) LIQUEFIED PETROLEUM G AS CONTAINERS THAT A RE 1 DESIGNED TO BE REFIL LED. 2 (F) (H) (1) “PRODUCER” MEANS A PERSON THAT IS RESPONSIBLE FOR 3 COMPLYING WITH THIS SUBTITLE UNDER § 9–2503 OF THIS SUBTITLE. 4 (2) “PRODUCER” DOES NOT INCLUDE : 5 (I) A LOCAL GOVERNMENT ; 6 (II) A NONPROFIT CHARITABLE ORGANIZATION ; OR 7 (III) AN ENTITY THAT MANUFA CTURES A DRUG OR DEV ICE 8 AUTHORIZED FOR SALE BY THE U.S. FOOD AND DRUG ADMINISTRATION UNDER THE 9 FEDERAL FOOD, DRUG, AND COSMETIC ACT. 10 (G) (I) “PRODUCER RE SPONSIBILITY ORGANIZ ATION” MEANS: 11 (1) A PRODUCER THAT INDIVI DUALLY SUBMITS A PRO DUCER 12 RESPONSIBILITY PLAN TO THE DEPARTMENT UNDER § 9–2504 OF THIS SUBTITLE ; 13 OR 14 (2) A NONPROFIT ORGANIZATI ON THAT IS: 15 (I) EXEMPT FROM TAXATION UNDER § 501(C)(3) OF THE 16 INTERNAL REVENUE CODE; AND 17 (II) CREATED BY A GROUP OF PRODUCERS TO IMPLEME NT A 18 PRODUCER RESPONSIBIL ITY PLAN IN ACCORDAN CE WITH § 9–2504(A) OF THIS 19 SUBTITLE. 20 (H) (J) “PRODUCER RESPONSIBILI TY PLAN” MEANS A PACKAGING 21 MATERIALS PRODUCER R ESPONSIBILIT Y PLAN SUBMITTED TO THE DEPARTMENT 22 BY A PRODUCER OR PRO DUCER RESPONSIBILITY ORGANIZATION IN ACCO RDANCE 23 WITH § 9–2504 OF THIS SUBTITLE. 24 9–2502. 25 IT IS THE INTENT OF THE GENERAL ASSEMBLY THAT THIS SU BTITLE PROVIDE 26 A FRAMEWORK FOR : 27 (1) MODERNIZING AND IMPROVING WASTE AND RECYCLING SYSTEMS 28 IN THE STATE, INCLUDING BY FACILIT ATING: 29 SENATE BILL 222 13 (I) THE IMPROVEMENT OF RE USE, ORGANICS RECYCLING , AND 1 RECYCLING; 2 (II) THE IMPROVEMENT OF RE CYCLING MARKETS ; 3 (III) THE REDUCTION OF WAST E; AND 4 (IV) AN INCREASE IN RECYCLING RATES ; AND 5 (2) REIMBURSING LOCAL GOV ERNMENTS FOR COSTS A SSOCIATED 6 WITH TRANSPORTING , COLLECTING, AND PROCESSING PACKA GING MATERIALS . 7 9–2503. 8 (A) (1) (I) THIS PARAGRAPH APPLIE S TO ITEMS SOLD IN P ACKAGING 9 MATERIALS AT A PHYSI CAL RETAIL LOCATION IN THE STATE. 10 (II) IF THE ITEM IS SOLD U NDER THE MANUFACTURE R’S OWN 11 BRAND OR IS SOLD IN PACKAGING MATERIALS THAT LACK IDENTIFICA TION OF A 12 BRAND, THE PRODUCER OF THE PACKAGING MATERI ALS IS THE PERSON TH AT 13 MANUFACTURES THE ITE M. 14 (III) IF THE ITEM IS MANUFA CTURED BY A PERSON O THER THAN 15 THE BRAND OWNER , THE PRODUCER OF THE PACKAGING MATERIALS IS THE PERSON 16 THAT IS THE LICENSEE OF A BRAND OR TRADEM ARK UNDER WHICH AN ITEM IS SOLD, 17 OFFERED FOR SALE , OR DISTRIBUTED IN TH E STATE, WHETHER OR NOT THE 18 TRADEMARK IS REGISTE RED IN THE STATE. 19 (IV) IF THERE IS NO PERSON DESCRIBED IN SUBPARA GRAPHS 20 (II) OR (III) OF THIS PARAGRAPH LO CATED WITHIN THE UNITED STATES, THE 21 PRODUCER OF THE PACKAGING MATERIALS IS THE PER SON THAT IMPORTS THE 22 ITEM INTO THE UNITED STATES FOR USE IN A C OMMERCIAL ENTERPRISE THAT 23 SELLS, OFFERS FOR SALE , OR DISTRIBUTES THE I TEM IN THE STATE. 24 (2) (I) THIS PARAGRAPH APPLIE S TO ITEMS SOLD OR 25 DISTRIBUTED I N PACKAGING MATERIAL S IN THE STATE THROUGH REMOTE SALE OR 26 DISTRIBUTION. 27 (II) THE PRODUCER OF THE P ACKAGING MATERIALS U SED TO 28 DIRECTLY PROTECT OR CONTAIN THE ITEM IS THE SAME AS THE PROD UCER 29 ESTABLISHED UNDER PA RAGRAPH (1) OF THIS SUBSECTION . 30 14 SENATE BILL 222 (III) THE PRODUCER OF THE P ACKAGING MATERIALS U SED TO 1 SHIP THE ITEM TO A C ONSUMER IS THE PERSO N THAT PACKAGES AND SHIPS THE 2 ITEM TO THE CONSUMER . 3 (IV) FOR ANY PACKAGING MAT ERIALS NOT IDENTIFIE D UNDER 4 SUBPARAGRAPHS (II) AND (III) OF THIS PARAGRAPH , THE PRODUCER OF THE 5 PACKAGING MATERIALS IS THE PERSON THAT F IRST DISTRIBUTES THE PACKAGED 6 ITEM IN THE STATE. 7 (B) THIS SUBTITLE DOES NO T APPLY TO A PERSON THAT: 8 (1) (I) GENERATED LESS THAN $5,000,000 IN GROSS REVENUE 9 DURING THE IMMEDIATE LY PRECEDING CALEND AR YEAR; 10 (II) SOLD, OFFERED FOR SALE , OR DISTRIBUTED FOR S ALE IN 11 THE STATE DURING THE IMME DIATELY PRECEDING CA LENDAR YEAR LESS THA N 1 12 METRIC TON OF PACKAG ING MATERIALS ; 13 (III) 1. OWNS OR OPERATES A RE STAURANT, FOOD CART, OR 14 SIMILAR ESTABLISHMEN T THAT: 15 A. IS HEADQUARTERED IN T HE STATE; AND 16 B. PRIMARILY SELLS TO ME MBERS OF THE PUBLIC FOOD 17 THAT IS GENERALLY IN TENDED TO BE CONSUME D IMMEDIATELY AND WI THOUT THE 18 NEED FOR FURTHER PRE PARATION, EITHER ON OR OFF THE PREMISES; AND 19 2. IS NOT A PRODUCER OF FOOD SERVIC EWARE; 20 (IV) OWNS OR OPERATES A SI NGLE RETAIL SALES 21 ESTABLISHMENT THAT : 22 1. HAS NO ONLINE SALES ; AND 23 2. IS NOT SUPPLIED OR OP ERATED AS PART OF A 24 FRANCHISE OR A CHAIN ; OR 25 (V) 1. IS LICENSED UNDER TITLE 2 OF THE ALCOHOLIC 26 BEVERAGES ARTICLE; AND 27 2. GENERATED LESS THAN $10,000,000 IN GROSS 28 REVENUE DURING THE I MMEDIATELY PRECEDING CALENDAR YEAR ; AND 29 SENATE BILL 222 15 (2) ON REQUEST BY THE DEPARTMENT , PROVIDES TO THE 1 DEPARTMENT SUFFICIENT INFORMATION TO DEMON STRATE THAT THE PROD UCER 2 MEETS THE CONDITIONS OF THIS SECTION. 3 (C) THIS SUBTITLE DOES NO T AFFECT THE AUTHORI TY OF THE STATE OR A 4 LOCAL JURISDICTION T O REGULATE THE SALE OR USE OF ANY PACKAG ING 5 MATERIAL. 6 (D) THIS SUBTITLE DOES NO T PROHIBIT A PRODUCE R RESPONSIBILITY 7 ORGANIZATION FROM ESTABLISHING A DEPOSIT–RETURN SYSTEM AS ONE 8 STRATEGY FOR INCREAS ING THE CAPTURE AND RECYCLING OF BEVERAG E 9 CONTAINERS OR OTHER PACKAGING MATERIALS . 10 (D) THIS SUBTITLE MAY NOT BE CONSTRUED TO : 11 (1) PROHIBIT A LOCAL GOVE RNMENT OR ANY OTHER ENTITY FROM 12 SELLING RECYCLED MAT ERIALS OR COMPOST TO END MARKETS AND RETA INING 13 THE REVENUES FROM TH OSE SALES; 14 (2) AFFECT THE AUTHORITY OF A PUBLICLY OR PRI VATELY OWNED 15 MATERIALS RECYCLING FACILITY OR ORGANICS RECYCLING FACILITY T O 16 DETERMINE WHICH ENTI TIES MAY USE THE FACILITY; OR 17 (3) LIMIT THE ABILITY OF LOCAL GOVERNMENTS , MATERIALS 18 RECYCLING FACILITIES , OR ORGANICS RECYCLIN G FACILITIES TO MAKE DECISIONS 19 ON RECYCLING INFRAST RUCTURE PURCHASES , INCLUDING PROCESSING 20 EQUIPMENT. 21 9–2504. 22 (A) (1) ON OR BEFORE JUNE 30, 2024, THE DEPARTMENT SHALL 23 APPROVE A SINGLE PRO DUCER RESPONSIBILITY ORGANIZATION TO FULF ILL THE 24 REQUIREMENTS OF THIS SUBSECTION. 25 (2) (I) BEGINNING JULY 1, 2024, AND EACH YEAR THEREA FTER, A 26 THE PRODUCER RESPONSIBIL ITY ORGANIZATION SHA LL FILE A REGISTRATION 27 FORM WITH THE DEPARTMENT . 28 (II) THE REGISTRATION FORM SHALL INCLUDE : 29 1. A LIST OF THE RESPONSIBLE PARTIES PRODUCERS 30 PARTICIPATING IN THE PRODUCER RESPONSIBIL ITY ORGANIZATION ; 31 16 SENATE BILL 222 2. A LIST OF THE BRANDS O F EACH RESPONSIBLE PARTY 1 PRODUCER PARTICIPATING IN THE PRODUCER RESPONSIBIL ITY ORGANIZATION ; 2 3. A LIST OF THE COVERED MATERIALS OF EACH 3 RESPONSIBLE PARTY PRODUCER PARTICIPATING IN THE PRODUCER 4 RESPONSIBILITY ORGAN IZATION; AND 5 4. THE NAME, ADDRESS, AND CONTACT INFORMAT ION 6 OF A PERSON RESPONSI BLE FOR ENSURING THE PRODUCER RESPONSIBIL ITY 7 ORGANIZATION ’S AND THE MEMBER RESPONSIBLE PARTIES ’ PRODUCERS ’ 8 COMPLIANCE WITH THIS SUBTITLE. 9 (III) AT SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTI ON, AT 10 THE TIME OF FILING T HE REGISTRATION FORM , A THE PRODUCER RESPONSIBIL ITY 11 ORGANIZATION SHALL P AY TO THE DEPARTMENT AN ANNUAL REGISTRATION FEE 12 TO COVER THE COSTS O F RECORD KEEPING , NOT TO EXCEED $1,000. 13 (IV) AT THE TIME OF THE IN ITIAL SUBMISSION OF THE 14 REGISTRATION FORM BY A THE PRODUCER RESPONSIBIL ITY ORGANIZATION , THE 15 ORGANIZATION SHALL H AVE 60 DAYS TO PAY TO THE DEPARTMENT THE ESTIMA TED 16 COST OF CONDUCTING T HE INITIAL STATEWIDE RECYCLING NEEDS ASSE SSMENT 17 REQUIRED UNDER § 9–1702.2 OF THIS TITLE. 18 (V) IF MORE THAN ONE PROD UCER RESPONSIBILITY 19 ORGANIZATION REGISTE RS WITH THE DEPARTMENT , THE DEPARTMENT SHALL 20 EQUALLY DIVIDE THE C OST OF THE STATEWIDE RECYCLING NEEDS ASSE SSMENT. 21 (3) BEFORE ESTABLISHING A ND COLLECTING AN ANN UAL 22 REGISTRATION FEE UND ER PARAGRAPH (2)(III) OF THIS SUBSECTION , THE 23 DEPARTMENT SHALL : 24 (I) PUBLISH A PROPOSED FE E ON ITS WEBSITE; AND 25 (II) ALLOW 90 CALENDAR DAYS FOR PU BLIC COMMENT . 26 (4) (I) ON OR AFTER JULY 1, 2030, A NONPROFIT ORGANIZA TION 27 MAY REQUEST THAT THE DEPARTMEN T DESIGNATE THE NONP ROFIT 28 ORGANIZATION AS AN A DDITIONAL PRODUCER R ESPONSIBILITY ORGANI ZATION. 29 (II) THE DEPARTMENT MAY DESIGN ATE A NONPROFIT 30 ORGANIZATION AS AN A DDITIONAL PRODUCER R ESPONSIBILITY ORGANI ZATION IF 31 THE DEPARTMENT DETERMINES , IN COORDINATION WITH THE ADVISORY CO UNCIL 32 ESTABLISHED UNDER § 9–2505 OF THIS SUBTITLE , THAT THE DESIGNATION OF THE 33 ADDITIONAL PRODUCER RESPONSIBILITY ORGAN IZATION IS NECESSARY TO: 34 SENATE BILL 222 17 1. INCREASE RECYCLING RA TES; OR 1 2. IMPROVE RECYCLING SER VICES FOR A SPECIFIC 2 TYPE OF PACKAGING MATERIA L. 3 (III) IF THE DEPARTMENT APPROVES T HE DESIGNATION OF AN 4 ADDITIONAL PRODUCER RESPONSIBILITY ORGAN IZATION UNDER THIS 5 SUBSECTION, THE PRODUCER RESPONS IBILITY ORGANIZATION SHALL: 6 1. NOT LATER THAN 30 DAYS AFTER BEING APP ROVED 7 BY THE DEPARTMENT AND ON OR BEFORE JULY 1 EACH YEAR THEREAFTER , FILE A 8 REGISTRATION FORM WI TH THE DEPARTMENT CONTAINING THE INFORMATION 9 REQUIRED UNDER PARAG RAPH (2)(II) OF THIS SUBSECTION A ND PAY THE ANNUAL 10 REGISTRATION FEE DES CRIBED IN PARAGRAPH (2)(III) OF THIS SUBSECTION ; AND 11 2. COORDINATE WITH THE P RODUCER RESPONSIBILI TY 12 ORGANIZATION ESTABLI SHED UNDER PARAGRAPH (1) OF THIS SUBSECTION , THE 13 DEPARTMENT , AND LOCAL GOVERNMENT S TO ENSURE THAT : 14 A. RECYCLING SERVICES FO R RESIDENTS OF THE STATE 15 ARE PROVIDED IN A SEAMLE SS MANNER; AND 16 B. PUBLIC OUTREACH , EDUCATION, AND 17 COMMUNICATION ARE PR OVIDED IN A CONSISTE NT MANNER. 18 (IV) THE PRODUCER RESPONSI BILITY ORGANIZATION 19 ESTABLISHED UNDER PA RAGRAPH (1) OF THIS SUBSECTION A ND ANY ADDITIONAL 20 PRODUCER R ESPONSIBILITY ORGANI ZATIONS DESIGNATED U NDER THIS 21 PARAGRAPH MAY CREATE A REPRESENTATIVE ORG ANIZATION TO REPRESE NT THE 22 PARTICIPATING PRODUC ER RESPONSIBILITY OR GANIZATIONS TO IMPLE MENT THE 23 REQUIREMENTS OF THIS SUBTITLE. 24 (2) (B) (I) (1) ON OR BEFORE APRIL 1, 2026, AND EVERY 5 25 YEARS THEREAFTER , EACH PRODUCER SHALL , INDIVIDUALLY OR AS P ART OF A 26 PRODUCER RESPONSIBIL ITY ORGANIZATION , SUBMIT A PRODUCER 27 RESPONSIBILITY PLAN TO THE DEPARTMENT FOR REVIEW AND APPROVAL . 28 (II) IF MORE THAN ONE PROD UCER RESPONSIBILITY 29 ORGANIZATION SUBMITS A PRODUCER RESPONSIB ILITY PLAN TO THE 30 DEPARTMENT : 31 18 SENATE BILL 222 1. THE PRODUCER RESPONSI BILITY ORGANIZATIONS 1 SHALL COORDINATE WIT H THE DEPARTMENT AND LOCAL GOVERNMENTS TO 2 ENSURE THAT : 3 A. RECYCLING SERVICES FO R RESIDENTS IN T HE STATE 4 ARE PROVIDED IN A SE AMLESS MANNER ; AND 5 B. PUBLIC OUTREACH , EDUCATION, AND 6 COMMUNICATION ARE PR OVIDED IN A CONSISTE NT MANNER; AND 7 2. THE PRODUCER RESPONSI BILITY ORGANIZATIONS 8 MAY CREATE A REPRESE NTATIVE ORGANIZATION TO REPRESENT ALL 9 PARTICIPATING PRODUC ER RESPONSIBILITY OR GANIZATIONS TO IMPLE MENT THE 10 REQUIREMENTS OF THIS SUBTITLE. 11 (III) (2) BEFORE SUBMITTING THE PLAN REQUIRED UNDER 12 THIS SUBSECTION TO T HE DEPARTMENT , A PRODUCER OR PRODUC ER 13 RESPONSIBILITY ORGAN IZATION SHALL: 14 1. (I) CONSULT WITH THE ADVI SORY COUNCIL 15 ESTABLISHED UNDER § 9–2505 OF THIS SUBTITLE; AND 16 2. (II) CONSIDER THE WRITTEN RECOMMENDATIONS OF 17 THE ADVISORY COUNCIL PROVIDED UNDER § 9–2505(G)(6) OF THIS SUBTITLE AND 18 RESPOND IN WRITING T O THE ADVISORY COUNC IL. 19 (3) (I) ON EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 20 PARAGRAPH , ON OR AFTER A DATE ESTA BLISHED IN REGULATIO NS ADOPTED BY THE 21 DEPARTMENT UNDER § 9–2509 OF THIS SUBTITLE , A PRODUCER MAY NOT S ELL, 22 OFFER FOR SALE , DISTRIBUTE, OR IMPORT FOR SALE O R DISTRIBUTION PACKAGI NG 23 MATERIALS FOR USE IN THE STATE UNLESS THE PROD UCER, INDIVIDUALLY OR AS 24 PART OF A PRODUCER R ESPONSIBILITY ORGANI ZATION, HAS AN APPROVED 25 PRODUCER RESPONSIBIL ITY PLAN ON FILE WIT H THE DEPARTMENT . 26 (II) A PRODUCER IS NOT REQU IRED TO SUBMIT A PRODUCER 27 RESPONSIBILITY PLAN TO THE DEPARTMENT , INDIVIDUALLY OR AS P ART OF A 28 PRODUCER RESPONSIBIL ITY ORGANIZATION , IF ANOTHER PERSON HA S AGREED TO 29 ASSUME RESPONSIBILIT Y UNDER THIS SUBTITL E FOR ANY PACKAGING MATERIAL 30 SOLD, OFFERED FOR SALE , OR DISTRIBUTED IN OR INTO T HE STATE BY THAT 31 PRODUCER. 32 (B) (C) A PRODUCER RESPONSIBIL ITY PLAN SHALL: 33 SENATE BILL 222 19 (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 ORGANIZATIO N; 3 (2) IDENTIFY EACH BRAND O F PACKAGING MATERIAL S COVERED BY 4 THE PLAN; 5 (3) REQUIRE, IN ACCORDANCE WITH S UBSECTION (C) (D) OF THIS 6 SECTION, ACHIEVEMENT WITHIN 5 YEARS AFTER THE DATE ON WHICH THE FIRST 7 VERSION OF THE PLAN IS APPROVED AND ESTA BLISH THE FOLLOWING 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 REDUCTION G OALS; 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 MAT ERIAL 18 WASTE AND IS JUSTIFIED IN THE PLAN; 19 (4) REQUIRE EACH PARTICIPATING PRODUCER PRODUCERS TO 20 REDUCE ALL PACKAGING MATERIAL WASTE TO TH E MAXIMUM EXTENT 21 PRACTICABLE , AND BY NOT LESS THAN 25% FOR EACH PACKAGING M ATERIAL TYPE, 22 WITHIN 5 YEARS AFTER THE DATE ON WHICH THE FIRST VERS ION OF THE PLAN IS 23 APPROVED; 24 (5) DESCRIBE, IN ACCORDANCE WITH S UBSECTION (D) (E) OF THIS 25 SECTION, THE FINANCING METHOD THAT WILL BE USED TO IMPLEMENT THE PLAN ; 26 (6) DESCRIBE HOW THE PERF ORMANCE GOALS ESTABL ISHED UNDER 27 ITEM (3) OF THIS SUBSECTION WILL BE MET OR EXCEEDED ; 28 (7) DESCRIBE HOW STAKEHOL DER COMMENTS WERE CO NSIDERED IN 29 THE DEVELOPMENT OF T HE PLAN; 30 20 SENATE BILL 222 (8) DESCRIBE HOW STAFFING AND ADMINISTERING TH E 1 IMPLEMENTATION OF TH E PLAN WILL BE HANDL ED; 2 (9) DESCRIBE THE STRATEGY FOR REDUCING PACKAGING 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 M ATERIALS; 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 PROGRAMS TO A VOID 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) (F) 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 SENATE BILL 222 21 (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 QUA RTERLY 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 RESPONSIBIL ITY ORGANIZATION ’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 O F THE PLAN; AND 18 (14) INCLUDE ANY OTHER INF ORMATION THAT IS REQ UIRED BY THE 19 DEPARTMENT . 20 (C) (D) 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 R ESPONSIBILITY ORGANI ZATION, SHALL 23 ESTABLISH PERFORMANC E GOALS FOR EACH PAC KAGING 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) (E) (1) THE FINANCING METHOD THAT WILL BE USED BY A 28 PRODUCER RESPONSIBILITY ORGAN IZATION TO IMPLEMENT A PRODUCER 29 RESPONSIBILITY 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 22 SENATE BILL 222 RECYCLING, AND RECYCLING IN ACC ORDANCE WITH SUBSECT ION (B)(11) (C)(11) OF 1 THIS SECTION; 2 (II) PROVIDE SUBJECT TO PARAGRAPH (2) OF THIS 3 SUBSECTION, PROVIDE A REASONABLE ANNUAL RATE PER TON OF RECY CLED OR 4 COMPOSTED PACKAGING MATERIALS FOR REIMBU RSING LOCAL GOVERNME NTS 5 FOR COSTS ASSOCIATED WITH: 6 1. UP TO 50% OF THE COST OF COLLE CTING PACKAGING 7 MATERIALS THAT ARE I DENTIFIED IN THE PLA N; 8 2. TRANSPORTING RECYCLAB LE OR COMPOSTABLE 9 PACKAGING MATERIALS TO A RECYCLING OR MATERIALS RECYCLING FACILITY OR 10 AN ORGANICS RECYCLING F ACILITY; 11 3. PROCESSING PACKAGING MATERIALS, INCLUDING 12 REMOVING CONTAMINATI ON; AND 13 4. RECYCLING PACKAGING MATERIALS THAT ARE 14 DIVERTED TO BE RECYC LED OR COMPOSTED IN THE STATE CONVERTING 15 PACKAGING MATERIALS THAT ARE DIVERTED TO BE RECYCLED OR COMPO STED 16 INTO COMMODITY MATER IALS; 17 (III) ESTABLISH SUBJECT TO PARAGRAPH (3) OF THIS 18 SUBSECTION, ESTABLISH A FEE STRUCTURE FOR PARTICIPA TING PRODUCERS THAT 19 IS SET IN A MANNER T O COVER COSTS ASSOCI ATED WITH: 20 1. IMPLEMENTING THE PLAN , INCLUDING THE 21 ADMINISTRATIVE COSTS OF A PRODUCER RESPON SIBILITY ORGANIZATIO N; 22 2. REIMBURSING LOCAL GOV ERNMENTS FOR COSTS I N 23 ACCORDANCE WITH ITEM (II) OF THIS PARAGRAPH ; 24 3. THE ADMINISTRATION , REVIEW, OVERSIGHT, AND 25 ENFORCEMENT OF THE P LAN BY THE DEPARTMENT ; 26 4. IMPLEMENTING THE STRA TEGY IN THE PLAN FOR 27 REDUCING PACKAGING M ATERIALS IN ACCORDAN CE WITH SUBSECTION (B)(9) (C)(9) 28 OF THIS SECTION; AND 29 5. IMPLEMENTING THE STRA TEGY IN THE PLAN FOR 30 IMPROVING REUSE , ORGANICS RECYCLING , AND RECYCLING IN THE STATE IN 31 ACCORDANCE WITH SUBS ECTION (B)(11) (C)(11) OF THIS SECTION; 32 SENATE BILL 222 23 (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 PACKA GING 5 MATERIALS; 6 (V) BE EVALUATED BY AN IN DEPENDENT FINANCIAL AUDITOR , 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 RAT E ESTABLISHED UNDER PARAGRAP H 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 NEAREST RECYCLING OR 16 ORGANICS RELEVANT MATERIALS RECYCLING FACILITY OR ORGANICS RECYCLIN G 17 FACILITY; 18 3. THE COMMODITY VALUE O F RECYCLED PACKAGING 19 MATERIALS; AND 20 4. ANY SOCIOECONOMIC OR GEOGRAPHIC FACTOR , AS 21 DETERMINED BY THE DEPARTMENT ; AND 22 (II) DISCOUNTED EQUIVALENT TO THE ESTIMATED ANN UAL 23 VOLUME OF PACKAGING MATERIALS SOLD IN TH E STATE TO BY A PERSON THAT IS 24 EXEMPT FROM THE REQU IREMENTS OF THIS SUB TITLE UNDER § 9–2503(B) OF THIS 25 SUBTITLE. 26 (3) (I) BEFORE ESTABLISHING T HE FEE STRUCTURE FOR 27 PARTICIPATING PRODUC ERS UNDER PARAGRAPH (1)(III) OF THIS SUBSECTION , THE 28 PRODUCER RESPONSIBIL ITY ORGANIZATIO N SHALL: 29 1. PUBLISH A PROPOSED FE E ON ITS WEBSITE; AND 30 2. ALLOW 90 CALENDAR DAYS FOR PU BLIC COMMENT . 31 24 SENATE BILL 222 (II) THE FEE STRUCTURE EST ABLISHED UNDER PARAG RAPH 1 (1)(III) OF THIS SUBSECTION S HALL BE VARIABLE BAS ED ON: 2 (I) 1. COSTS ASSOCIATED WITH TRANSPORTING , 3 COLLECTING, AND PROCESSING PACKA GING MATERIALS ; 4 (II) 2. AN ECO–MODULATION OF FEES , INCLUDING 5 ESTABLISHING : 6 1. A. A HIGHER FEE FOR PACKA GING MATERIALS WITH 7 LOW RECYCLABILITY OR RECYCLED CONTENT ; AND 8 2. B. A DISCOUNTED FEE FOR P ACKAGING MATERIALS 9 WITH HIGH RECYCLABIL ITY OR RECYCLED CONT ENT; AND 10 (III) 3. ANY OTHER FACTOR , AS DETERMINED BY THE 11 DEPARTMENT . 12 (4) (I) A PRODUCER RESPONSIBIL ITY ORGANIZATION SHA LL 13 RETAIN ANY FEE COLLE CTED UNDER THIS SUBS ECTION IN ITS OWN ACCOUNT . 14 (II) THE DEPARTMENT MAY REQUES T AT ANY TIME AN AUD IT OF 15 THE FINANCIAL RECORD S OF A PRODUCER RESP ONSIBILITY ORGANIZAT ION. 16 (E) (F) THE FUNDING THAT WILL BE USED FOR IMPROVIN G REUSE, 17 ORGANICS RECYCLING , AND RECYCLING SHALL INCLUDE INVESTMENT IN MARKET 18 DEVELOPMENT AND EXIS TING AND FUTURE REUS E, ORGANICS RECYCLING , AND 19 RECYCLING INFRASTRUC TURE, GIVING PRIORITY TO I NVESTMENT IN EXISTIN G 20 INFRASTRUCTURE , INCLUDING: 21 (1) INSTALLING OR UPGRADI NG EQUIPMENT TO IMPR OVE THE 22 SORTING OF PACKAG ING MATERIALS AT EXI STING SORTING AND PR OCESSING 23 FACILITIES; 24 (2) MITIGATING THE IMPACT S OF PACKAGING MATER IALS ON OTHER 25 COMMODITIES AT EXIST ING SORTING AND PROC ESSING FACILITIES; AND 26 (3) CAPITAL EXPENDITURES FOR NEW TECHNOLOGY , EQUIPMENT, 27 AND FACILITIES, BASED ON THE RESULTS OF THE STATEWIDE REC YCLING NEEDS 28 ASSESSMENT CONDUCTED UNDER § 9–1702.2 OF THIS TITLE. 29 (F) (G) THE DEPARTMENT SHALL REVI EW: 30 SENATE BILL 222 25 (1) THE PRODUCER RESPONSI BILITY PLAN REQUIRED UNDER 1 SUBSECTION (A) OF THIS SECTION; AND 2 (2) THE WORK PRODUCT OF T HE INDEPENDENT FINAN CIAL AUDITOR 3 DESIGNATED BY THE DEPARTMENT TO EVALUAT E THE FINANCING COMP ONENT OF 4 THE PRODUCER RESPONS IBILITY PLAN UNDER S UBSECTION (D)(1)(V) (E)(1)(V) OF 5 THIS SECTION. 6 (G) (H) (1) WITHIN 120 DAYS AFTER RECEIVING A PROPOSED 7 PRODUCER RESPONSIBIL ITY PLAN, THE DEPARTMENT SHALL APPR OVE, APPROVE 8 WITH CONDITIONS , OR REJECT THE PLAN . 9 (2) IN MAKING A DETERMINA TION UNDER PARAGRAPH (1) OF THIS 10 SUBSECTION, THE DEPARTMENT SHALL CONS IDER WHETHER : 11 (I) THE PRODUCER RESPONSI BILITY PLAN COMPLIES WITH 12 THE REQUIREMENTS OF THIS SECTION, INCLUDING WHETHER TH E FINANCING 13 METHOD WILL COVER TH E COSTS OF IMPLEMENT ING THE PLAN; AND 14 (II) THE PRODUCER RESPONSI BILITY ORGANIZATION ENGAGED 15 SUFFICIENTLY WITH ST AKEHOLDERS , INCLUDING LOCAL GOVERNMENTS , IN 16 DEVELOPING THE PLAN . 17 (3) NOT LATER THAN 60 DAYS AFTER THE DATE A PRODUCER 18 RESPONSIBILITY PLAN IS INITIALLY APPROVE D UNDER THIS SECTION , A PRODUCER 19 RESPONSIBILITY ORGAN IZATION SHALL PAY TO THE DEPARTMENT : 20 (I) THE DEPARTMENT ’S COST OF REVIEWING THE PLAN ; AND 21 (II) THE DEPARTMENT ’S ESTIMATED COSTS OF 22 ADMINISTERING , OVERSEEING, AND ENFORCING THE PL AN BETWEEN THE INITI AL 23 DATE OF APPROVAL AND THE DATE OF THE INIT IAL ANNUAL REPORT RE QUIRED 24 UNDER § 9–2507 OF THIS SUBTITLE. 25 (H) (I) WITHIN 6 MONTHS AFTER THE DAT E A PRODUCER 26 RESPONSIBILITY PLAN IS APPROVED UNDER TH IS SECTION, A PRODUCER 27 RESPONSIBILITY ORGAN IZATION SHALL IMPLEM ENT THE PLAN. 28 (I) (J) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION 29 AND SUBJECT TO PARAG RAPH (3) OF THIS SUBSECTION , AN APPROVED PRODUCER 30 RESPONSIBILITY PLAN SHALL EXPIRE AFTER 5 YEARS. 31 26 SENATE BILL 222 (2) A PRODUCER RESPONSIBIL ITY PLAN MAY CONTINU E AFTER 5 1 YEARS IF IT IS RENEG OTIATED, RENEWED, OR AMENDED AND APPRO VED BY THE 2 DEPARTMENT IN ACCORDA NCE WITH THIS SUBTIT LE. 3 (3) THE DEPARTMENT MAY RESCIN D APPROVAL OF A PROD UCER 4 RESPONSIBILITY PLAN AT ANY TIME FOR GOOD CAUSE. 5 (4) IF THE DEPARTMENT RESCINDS A N APPROVAL OF A PROD UCER 6 RESPONSIBILITY PLAN UNDER PARAGRAPH (3) OF THIS SUBSECTION , THE 7 PRODUCER, OR IF APPLICABLE , THE PRODUCER RESPONS IBILITY ORGANIZATION 8 MAY AMEND THE PLAN A ND SUBMIT IT TO THE DEPARTMENT FOR APPROV AL IN 9 ACCORDANCE WITH THIS SUBTITLE. 10 (5) IF, BASED ON THE ANNUAL REPORT SUBMITTED UND ER § 9–2507 11 OF THIS SUBTITLE , THE PERFORMANCE GOAL S ESTABLISHED UNDER SUBSECTION 12 (B)(3) (C)(3) OF THIS SECTION HAVE NOT BEEN ACHIEVED , THE DEPARTMENT MAY : 13 (I) REQUIRE THAT A PRODUC ER RESPONSIBILITY 14 ORGANIZATI ON AMEND THE PRODUCE R RESPONSIBILITY PLA N; AND 15 (II) IMPOSE AN ADMINISTRAT IVE PENALTY ON A PRO DUCER 16 RESPONSIBILITY ORGAN IZATION IN ACCORDANC E WITH § 9–2510(C) OF THIS 17 SUBTITLE. 18 (6) IF THE DEPARTMENT REQUIRES A PRODUCER RESPONSIBIL ITY 19 ORGANIZATION TO AMEND THE PRODUCER R ESPONSIBILITY PLAN U NDER 20 PARAGRAPH (5) OF THIS SUBSECTION , THE PRODUCER RESPONS IBILITY 21 ORGANIZATION MUST CO VER THE COST OF THE DEPARTMENT ’S REVIEW AND 22 SUPPLEMENTAL WORK ON THE PLAN. 23 9–2505. 24 (A) THERE IS A PRODUCER R ESPONSIBILITY PLA N ADVISORY COUNCIL . 25 (B) THE PURPOSE OF THE AD VISORY COUNCIL IS TO PROVIDE ADVICE TO 26 THE DEPARTMENT AND PRODUC ER RESPONSIBILITY OR GANIZATIONS FOR 27 DRAFTING, AMENDING, AND IMPLEMENTING PRO DUCER RESPONSIBILITY PLANS. 28 (C) (1) THE ADVISORY COUNCIL SHALL CONSIST OF UP TO 21 MEMBERS, 29 APPOINTED BY THE SEC RETARY, REPRESENTING A BROAD RANGE OF INT ERESTED 30 STAKEHOLDERS APPOINTED BY THE SECRETARY, INCLUDING: 31 (I) REPRESENTATIVES FROM THE FOLLOWING INDUST RIES OR 32 ENTITIES IN THE STATE: 33 SENATE BILL 222 27 1. LOCAL GOVERNMENT AGEN CIES RESPONSIBLE FOR 1 RECYCLING PROGRAMS ; 2 2. RECYCLABLES AND COMPO STABLE MATERIALS 3 COLLECTORS FROM BOTH THE PUBLIC AND PRIVATE SECTORS ; 4 3. RECYCLING PROCESSORS FROM BOTH THE PUBLIC 5 AND PRIVATE SECTORS ; 6 4. ORGANICS RECY CLING PROCESSORS ; 7 5. THE CONSUMER GOODS SE CTOR; 8 6. RETAIL AND SMALL BUSI NESSES; AND 9 7. MATERIAL–ORIENTED TRADE GROUP S; 10 (II) A REPRESENTATIVE FROM EACH PRODUCER 11 RESPONSIBILITY ORGAN IZATION; 12 (III) REPRESENTATIVES OF AT LEAST TWO NONPROFIT 13 ORGANIZATIONS IN THE STATE WITH MISSIONS R ELATED TO REDUCING W ASTE; 14 (IV) AT LEAST ONE REPRESEN TATIVE OF AN ENVIRON MENTAL 15 ADVOCACY ORGANIZATIO N; 16 (V) AT LEAST ONE REPRESEN TATIVE OF AN ENVIRON MENTAL 17 JUSTICE ADVOCACY ORGANIZATIO N; AND 18 (VI) AT LEAST TWO MEMBERS OF THE PUBLIC WHO RE SIDE IN 19 THE STATE. 20 (2) IN APPOINTING MEMBERS TO THE ADVISORY COUN CIL, THE 21 SECRETARY SHALL , TO THE EXTENT PRACTI CABLE, ENSURE THAT THE 22 MEMBERSHIP OF THE AD VISORY COUNCIL REPRE SENTS: 23 (I) ALL GEOGRAPHIC REGION S OF THE STATE; 24 (II) LARGE AND SMALL COUNT IES AND MUNICIPALITI ES; AND 25 (III) THE VARIABILITY IN HO W WASTE AND RECYCLAB LE AND 26 COMPOSTABLE MATERIAL S ARE COLLECTED AND PROCESSED IN THE STATE. 27 28 SENATE BILL 222 (3) A REPRESENTATIVE F ROM A PRODUCER OR A PRODUCER 1 RESPONSIBILITY ORGAN IZATION MAY NOT SERV E AS A VOTING MEMBER OR AS 2 COCHAIR OF THE ADVIS ORY COUNCIL. 3 (4) (I) THE TERM OF A MEMBER IS 4 YEARS AND A MEMBER M AY BE 4 REAPPOINTED . 5 (II) THE TERMS OF MEMBERS ARE STAGGERED AS REQUIRED BY 6 THE TERMS PROVIDED F OR MEMBERS OF THE AD VISORY COUNCIL ON OCTOBER 1, 7 2023. 8 (III) AT THE END OF A TERM , A MEMBER CONTINUES T O SERVE 9 UNTIL A SUCCESSOR IS APPOINTED AND QUALIF IES. 10 (IV) A MEMBER WHO IS APPOIN TED AFTER A TERM HAS BEGUN 11 SERVES ONLY FOR THE REST OF THE TERM AND UNTI L A SUCCESSOR IS APP OINTED 12 AND QUALIFIES. 13 (D) FROM AMONG THE ADVISO RY COUNCIL MEMBERS , THE SECRETARY 14 SHALL DESIGNATE TWO REPRESENTATIVES TO S ERVE AS COCHAIRS . 15 (E) A MEMBER OF THE ADVISO RY COUNCIL: 16 (1) MAY NOT RECEIVE COMPENSATION AS A MEMBER OF THE 17 ADVISORY COUNCIL ; BUT 18 (2) IS ENTITLED TO REIMBU RSEMENT FOR EXPENSES UNDER THE 19 STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET . 20 (F) THE ADVISORY COUNCIL SHALL MEET AT LEAST QUARTERLY. 21 (G) THE ADVISORY COUNCIL SHA LL: 22 (1) ON REQUEST BY A PRODU CER OR PRODUCER RESP ONSIBILITY 23 ORGANIZATION , PROVIDE ADVICE REGAR DING THE DRAFTING OR AMENDING OF A 24 PRODUCER RESPONSIBIL ITY PLAN REQUIRED UN DER § 9–2504 OF THIS SUBTITLE; 25 (2) RECEIVE AND REVIEW TH E PRODUCER RESPONSIBILIT Y PLANS 26 SUBMITTED IN ACCORDA NCE WITH § 9–2504 OF THIS SUBTITLE; 27 (3) RECEIVE AND REVIEW AN NUAL REPORTS SUBMITT ED IN 28 ACCORDANCE WITH § 9–2507 OF THIS SUBTITLE; 29 SENATE BILL 222 29 (4) MAKE RECOMMENDATIONS TO THE DEPARTMENT REGARDING 1 PRODUCER RESPONSI BILITY PLAN APPROVAL ; 2 (5) MAKE RECOMMENDATIONS TO THE DEPARTMENT AND 3 PRODUCER RESPONSIBIL ITY ORGANIZATIONS RE GARDING PRODUCER 4 RESPONSIBILITY PLAN IMPLEMENTATION ; AND 5 (6) PROVIDE WRITTEN RECOM MENDATIONS REGARDING THE 6 PRODUCER RESPONSIBIL ITY PLAN, INCLUDING ANY UPDATE OR REVISION TO AN 7 APPROVED PLAN , TO A PRODUCER RESPON SIBILITY ORGANIZATIO N BEFORE THE 8 PRODUCER RESPONSIBIL ITY ORGANIZATION SUB MITS THE PLAN TO THE 9 DEPARTMENT . 10 9–2506. 11 (A) IN ACCORDANCE WITH TH E REQUIREMENTS OF A PRODUCER 12 RESPONSIBIL ITY ORGANIZATION , AS ESTABLISHED IN AN APPROVED PRODUCER 13 RESPONSIBILITY PLAN ON FILE WITH THE DEPARTMENT , AND ANY OTHER 14 REQUIREMENT ADOPTED BY THE DEPARTMENT , A LOCAL GOVERNMENT M AY 15 REQUEST REIMBURSEMEN T FROM A PRODUCER RE SPONSIBILITY ORGANIZ ATION 16 FOR COSTS ASSOCIATED WITH CO LLECTING, TRANSPORTING , AND PROCESSING 17 PACKAGING MATERIALS THAT ARE IDENTIFIED UNDER THE PLAN , INCLUDING COSTS 18 ASSOCIATED WITH RECY CLING SERVICES FOR P UBLIC PLACES AND PUB LIC 19 HOUSING. 20 (B) (1) IF MULTIPLE PRODUCER RESPONSIBILITY ORGAN IZATIONS 21 REGISTER APPROVED PR ODUCER RESPONSIBILIT Y PLANS WITH THE DEPARTMENT 22 IN ACCORDANCE WITH T HIS SUBTITLE , THE PRODUCER RESPONS IBILITY 23 ORGANIZATIONS SHALL COORDINATE REIMBURSE MENT REQUESTED UNDER THIS 24 SECTION. 25 (2) MULTIPLE PRODUCER RES PONSIBILITY ORG ANIZATIONS MAY 26 ESTABLISH A THIRD –PARTY ENTITY TO COOR DINATE REIMBURSEMENT IN 27 ACCORDANCE WITH THIS SUBSECTION. 28 (C) THIS SECTION DOES NOT AUTHORIZE A LOCAL GO VERNMENT TO 29 REQUEST REIMBURSEMEN T FROM A PRODUCER RE SPONSIBILITY ORGANIZ ATION 30 FOR COSTS ASSOCIATED WITH COMPOSTING MATE RIALS THAT ARE NOT P ACKAGING 31 MATERIALS, INCLUDING FOOD WASTE AND OTHER ORGANIC MA TERIALS. 32 9–2507. 33 (A) BEGINNING MARCH 1, 2027, EACH PRODUCER RESPON SIBILITY 34 ORGANIZATION THAT HA S AN APPROVED PRODUC ER RESPONSIBILITY PL AN ON FILE 35 30 SENATE BILL 222 WITH THE DEPARTMENT SHALL REPO RT ANNUALLY TO THE DEPARTMENT ON THE 1 PROGRESS TOWARD MEET ING PLAN REQUIREMENT S AND GOALS FOR THE 2 IMMEDIATELY PRECEDIN G CALENDAR YEAR . 3 (B) THE REPORT REQUIRED U NDER SUBSECTION (A) OF THIS SECTION 4 SHALL INCLUDE : 5 (1) A DETAILED DESCRIPTION OF THE R EIMBURSEMENT METHODS 6 USED FOR COLLECTING , TRANSPORTING , AND PROCESSING PACKA GING 7 MATERIALS; 8 (2) (I) THE STATUS ON ACHIEVI NG THE PERFORMANCE G OALS 9 ESTABLISHED UNDER § 9–2504(B)(3) § 9–2504(C)(3) OF THIS SUBTITLE; AND 10 (II) IF THE GOALS HAVE NOT BEEN A CHIEVED, A DESCRIPTION 11 OF THE ACTIONS PROPO SED TO ACHIEVE THE G OALS; 12 (3) THE AMOUNT OF EACH PA CKAGING MATERIAL TYP E COLLECTED 13 IN THE STATE, INCLUDING THE METHOD OF DISPOSITION OF EA CH PACKAGING 14 MATERIAL TYPE ; 15 (4) (I) THE NUMBER OF BEVERAGE CONTAINERS SOLD IN THE 16 STATE AND THE NUMBER COLLECTED, BY MATERIAL TYPE ; 17 (II) THE OVERALL REDEMPTIO N RATE AND EFFECTIVE RATE OF 18 RECYCLING OF BEVERAG E CONTAINERS BY MATE RIAL TYPE, AFTER SUBTRACTING 19 CONTAMINATION RATES , AND BY NUMBER OF UNI TS AND WEIGHT; AND 20 (III) 1. A DESCRIPTION OF THE L OCATION OF COLLECTIO N 21 FACILITIES OR POINTS AND SORTING AND PROC ESSING FACILITIES FO R BEVERAGE 22 CONTAINERS; 23 2. A DESCRIPTION OF ANY I MPROVEMENTS MADE IN THE 24 REPORTING YEAR TO IN CREASE THE EASE AND CONVENIENCE FOR CONSUMER S TO 25 RETURN BEVERAGE CONT AINERS; 26 3. A DESCRIPTION OF UNDER SERVED AREAS AND 27 ACTIONS THAT WILL BE TAKEN BY THE PRODUCE R RESPONSIBILITY ORG ANIZATION 28 TO IMPROVE THE AVAIL ABILITY OF COLLECTIO N FACILITIES OR POIN TS IN 29 UNDERSERVED AREAS ; AND 30 4. ANY OTHER INFORMATION ON BEVERAGE 31 CONTAINERS REQUIRED BY THE DEPARTMENT ; 32 SENATE BILL 222 31 (5) (4) THE TOTAL COST OF IMP LEMENTING THE PLAN , AS 1 DETERMINED BY AN IND EPENDENT FINANCIAL A UDITOR INCLUDING : 2 (I) A COPY OF THE WORK PRO DUCT OF THE INDEPEND ENT 3 FINANCIAL AUDITOR ; AND 4 (II) FINANCIAL STATEMENTS DETAILING ALL PAYMEN TS 5 RECEIVED AND ISSUED BY THE PRODUCERS COV ERED UNDER THE APPRO VED PLAN; 6 (6) (5) SAMPLES OF ALL EDUCAT IONAL MATERIALS PROV IDED TO 7 CONSUMERS OR OTHER E NTITIES; 8 (7) (6) A DETAILED DESCRIPTION OF THE A CTIONS TAKEN AND AN 9 EVALUATION OF THE ME THODS USED TO DISSEM INATE EDUCATIONAL MA TERIALS, 10 INCLUDING RECOMMENDA TIONS, IF ANY, FOR HOW THE EDUCATIO NAL COMPONENT 11 OF THE PLAN CAN BE I MPROVED; 12 (8) (7) A DETAILED DESCRIPTION OF INVESTMENT S MADE IN 13 MARKET DEVELOPMENT A ND FOR IMPROVING REU SE, ORGANICS RECYCLING , AND 14 RECYCLING INFRASTRUC TURE; 15 (9) (8) PROOF OF A THIRD –PARTY AUDIT OF : 16 (I) THE REDUCTION IN PACK AGING REPORTED ; 17 (II) THE DATA USED TO DETE RMINE THE STATUS OF ACHIEVING 18 PERFORMANCE GOALS ; 19 (III) THE AMOUNT OF EACH PA CKAGING MATERIAL TYP E 20 COLLECTED IN THE STATE; AND 21 (IV) THE NUMBER OF BEVERAG E CONTAINERS SOLD , 22 COLLECTED, AND REDEEMED IN THE STATE; AND 23 (V) THE OVERALL REDEMPTION R ATE AND RECYCLING RA TE OF 24 BEVERAGE CONTAINERS IN THE STATE; AND 25 (10) (9) ANY OTHER INFORMATION AS REQUIRED BY THE 26 DEPARTMENT . 27 (C) WHEN PROVIDING THE DEPARTMENT WITH THE A NNUAL REPORT 28 REQUIRED UNDER THIS SECTION, A PRODUCER RESPONSI BILITY ORGANIZATION 29 SHALL PAY TO THE DEPARTMENT THE DEPARTMENT ’S ESTIMATED COSTS OF 30 32 SENATE BILL 222 ADMINISTERING , OVERSEEING, AND ENFORCING THE PL AN FOR THE 1 YEAR 1 IMMEDIATELY FOLLOWIN G THE ANNUAL REPORT . 2 (D) FINANCIAL, PRODUCTION , OR SALES DATA REPORT ED TO THE 3 DEPARTMENT BY A PRODUCER RE SPONSIBILITY ORGANIZ ATION SHALL BE KEPT 4 CONFIDENTIAL BY THE DEPARTMENT AND MAY NO T BE SUBJECT TO PUBL IC 5 INSPECTION. 6 (E) SUBJECT TO SUBSECTION (D) OF THIS SECTION, THE REPORT SHALL BE 7 POSTED ON THE WEBSIT E OF THE DEPARTMENT AND THE PR ODUCER 8 RESPONSIBILITY ORGAN IZATION. 9 9–2508. 10 ANY PERSON PARTICIPAT ING IN A PRODUCER RE SPONSIBILITY PLAN IN 11 COMPLIANCE WITH THIS SUBTITLE IS IMMUNE F ROM LIABILITY UNDER STATE LAW 12 RELATING TO ANTITRUS T AND RESTRAINT OF T RADE FOR ANY COOPERA TED 13 ACTIVITIES ARISING OUT OF THE R ECYCLING, REUSE, AND DISPOSAL OF PACK AGING 14 MATERIALS. 15 9–2509. 16 THE DEPARTMENT SHALL ADOP T REGULATIONS TO CAR RY OUT THIS 17 SUBTITLE. 18 9–2510. 19 (A) EXCEPT AS OTHERWISE P ROVIDED UNDER SUBSEC TIONS (B) AND (C) OF 20 THIS SECTION, THE PROVISIONS OF §§ 9–334 THROUGH 9–344 OF THIS TITLE APPLY 21 TO ENFORCE VIOLATION S OF: 22 (1) THIS SUBTITLE; 23 (2) ANY REGULATION ADOPTE D UNDER THIS SUBTITL E; OR 24 (3) ANY ORDER ISSUED UNDE R THIS SUBTITLE. 25 (B) (1) A PRODUCER OR PRODUCER RESPONSIBILITY ORG ANIZATION 26 THAT VIOLATES THIS S UBTITLE IS SUBJECT T O: 27 (I) FOR A FIRST VIOLATION , A CIVIL AN ADMINISTRATIVE 28 PENALTY OF $5,000; 29 SENATE BILL 222 33 (II) FOR A SECOND VIOLATIO N, A CIVIL AN ADMINISTRATIVE 1 PENALTY OF $10,000; AND 2 (III) FOR A THIRD AND SUBSE QUENT VIOLATION, A CIVIL 3 PENALTY OF $20,000. 4 (2) A PENALTY MAY NOT BE I MPOSED ON A PRODUCER UNDER THIS 5 SECTION UNLESS : 6 (I) THE DEPARTMENT FIRST ISSU ES A WRITTEN NOTICE OF 7 VIOLATION TO THE PRO DUCER; AND 8 (II) THE VIOLATION IS NOT CORRECTED WITHIN 60 DAYS OF 9 RECEIPT OF THE WRITT EN NOTICE. 10 (3) AFTER THE 60–DAY PERIOD SPECIFIED UNDER PARAGRAPH (2) 11 OF THIS SUBSECTION , EACH DAY THAT A VIOL ATION CONTINUES IS A SEPARATE 12 VIOLATION. 13 (C) IF, BASED ON THE ANNUAL REPORT SUBMITTED UND ER § 9–2507 OF 14 THIS SUBTITLE, THE PERFORMANCE GOAL S ESTABLISHED UNDER § 9–2504(B)(3) § 15 9–2504(C)(3) OF THIS SUBTITLE HAV E NOT BEEN ACHIEVED , THE DEPARTMENT MAY 16 IMPOSE AN ADMINISTRA TIVE PENALTY, NOT TO EXCEED $5,000 $250,000, ON THE 17 PRODUCER RESPONSIBIL ITY ORGANIZATION . 18 (D) ANY PENALTY COLLECTED BY T HE DEPARTMENT UNDER THIS SECTION 19 SHALL BE PAID INTO T HE STATE RECYCLING TRUST FUND ESTABLISHED UNDE R § 20 9–1707 OF THIS TITLE. 21 SECTION 2. AND BE IT FURTHER ENACTED, That, on or before December 1, 22 2024, each local government in the State shall file a feasibility plan with the Department 23 of the Environment that prioritizes the sale of recycled packaging materials back to 24 manufacturers that have a manufacturing facility in the State. 25 SECTION 3. AND BE IT FURTHER ENACTED, That the ter ms of the initial 26 members of the producer responsibility plan advisory council shall expire as follows: 27 (1) five members in 2024; 28 (2) five members in 2025; 29 (3) five members in 2026; and 30 (4) the remaining members in 2027. 31 34 SENATE BILL 222 SECTION 2. 4. AND BE IT FURTHER ENACTED, That this Act shall take effect 1 October 1, 2023. 2 Approved: ________________________________________________________________________________ Governor. ________________________________________________________________________________ President of the Senate. ________________________________________________________________________________ Speaker of the House of Delegates.