WES MOORE, Governor Ch. 465 – 1 – Chapter 465 (Senate Bill 222) AN ACT concerning Environment – Reducing Packaging Materials – Statewide Recycling Needs Assessment and Producer Responsibility for Packaging Materials FOR the purpose of requiring certain producers of packaging materials to individually or as part of a producer responsibility organization submit a certain packaging materials producer responsibility plan to the Department of the Environment for review and approval on or before a certain date and in accordance with certain requirements; prohibiting, on or after a certain date, a producer of certain packaging materials from selling, offering for sale, distributing, or importing certain packaging materials unless the producer, individually or as part of a producer responsibility organization, has an approved producer responsibility plan on file with the Department; requiring a producer responsibility organization to pay certain costs to the Department; requiring a producer responsibility organization to implement a producer responsibility plan within a certain amount of time after the Department approves the producer responsibility plan; establishing a producer responsibility plan advisory council; authorizing a local government to request reimbursement from a certain producer that has an approved producer responsibility plan on file with the Department for certain costs in a certain manner; altering the definition of “organics recycling” to include the processing of certain compostable packaging materials in a certain manner; requiring the Department of the Environment to approve a certain producer responsibility organization for certain purposes on or before a certain date; establishing a producer responsibility advisory council to provide advice and make recommendations regarding establishing and implementing a producer responsibility program in the State for packaging materials and to report to certain committees of the General Assembly on or before a certain date; requiring the Office of Recycling in the Department to hire an independent contractor to conduct certain statewide recycling needs assessments in a certain manner and to submit certain reports on the results of the assessments to the Governor and the General Assembly on or before certain dates a certain statewide recycling needs assessment in a certain manner and to submit a certain report to the Governor and the General Assembly on or before a certain date; and generally relating to a statewide recycling needs assessment and producer responsibility for packaging materials. BY repealing and reenacting, without amendments, Article – Environment Section 9–1701(a) and (o) Annotated Code of Maryland (2014 Replacement Volume and 2022 Supplement) BY repealing and reenacting, with amendments, Article – Environment Ch. 465 2023 LAWS OF MARYLAND – 2 – Section 9–1702 9–1701(n), 9–1702, and 9–1707(f) Annotated Code of Maryland (2014 Replacement Volume and 2022 Supplement) BY adding to Article – Environment Section 9–1702.2; and 9–2501 through 9–2510 9–2503 to be under the new subtitle “Subtitle 25. Producer Responsibility for Packaging Materials” Annotated Code of Maryland (2014 Replacement Volume and 2022 Supplement) SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as follows: Article – Environment 9–1701. (a) In this subtitle the following words have the meanings indicated. (n) (1) “Organics recycling” means any process in which organic materials OR COMPOSTABLE PACKAGIN G MATERIALS are collected, separated, or processed and returned to the marketplace in the form of raw materials or products. (2) “Organics recycling” includes anaerobic digestion and composting. (o) “Organics recycling facility” means a facility where organics recycling takes place. 9–1702. (a) There is an Office of Recycling created within the Department. (b) The Secretary shall appoint a Director and sufficient staff to perform the functions of the Office. After July 1, 1989, the number of staff shall be as provided in the budget. (c) The Secretary may adopt regulations to carry out the provisions of this subtitle. (d) The Office shall: (1) Assist the counties in developing an acceptable recycling plan required under § 9–1703 of this subtitle and § 9–505 of this title, including technical assistance to the local governments; WES MOORE, Governor Ch. 465 – 3 – (2) Coordinate the efforts of the State to facilitate the implementation of the recycling goals at the county level; (3) Review all recycling plans submitted as part of a county plan as required under § 9–505 of this title and advise the Secretary on the adequacy of the recycling plan; (4) Administer the Statewide Electronics Recycling Program under Part IV of this subtitle; [and] (5) Promote the development of markets for recycled materials and recycled products in the State in accordance with § 9–1702.1 of this subtitle; (6) CONDUCT PROCURE A STATEWIDE RECYCLIN G NEEDS ASSESSMENT IN ACCORD ANCE WITH § 9–1702.2 OF THIS SUBTITLE; AND (7) REVIEW AND APPROVE , IN CONSULTATION WITH TH E PRODUCER RESPONSIBILITY PLAN ADVISORY COUNCIL EST ABLISHED UNDER § 9–2505 OF THIS TITLE, PRODUCER RESPONSIBIL ITY PLANS AND ANNUAL REPORTS SUBMITTED IN ACCORDANCE WITH SUBTITLE 25 OF THIS TITLE. (e) Beginning on January 1, 1990, and biannually thereafter, the Office shall, in coordination with the Maryland Environmental Service, study and report to the Governor and, subject to § 2–1257 of the State Government Article, the General Assembly on: (1) The identification and location of recycling centers, including an analysis of existing recycling centers and the need to expand these facilities or construct new recycling centers; (2) Programs necessary to educate the public on the need to participate in recycling efforts; (3) The economics and financing of existing and proposed systems of waste disposal and recycling; (4) State procurement policies for the purchase of recycled materials; (5) Programs necessary to reduce the amount of solid waste generated for disposal by a State agency or unit; (6) The liaison role with local governments, the federal government, and the private sector; (7) The percentage reduction in the amount of solid waste that has been achieved by each county; and Ch. 465 2023 LAWS OF MARYLAND – 4 – (8) Economically feasible methods for the recycling of scrap automobile tires, batteries, and white goods. (f) (1) By December 1, 1988, the Office shall, in coordination with the Maryland Environmental Service and the Governor’s Task Force on Solid Waste, make recommendations to the General Assembly for the financing of a comprehensive system of recycling at the State and local level, including funding for recycling centers, recycling equipment, recycling education, and marketing strategies. (2) After the financing recommendations are made under paragraph (1) of this subsection, each county may submit to the Office and the Governor a detailed request for funds necessary to assist in the development and implementation of a recycling plan under guidelines developed by the Office. (g) In studying feasible methods for the management and recycling of used tires under subsection (e)(9) of this section, the Office of Recycling shall consult with the appropriate industry, including representatives of: (1) Tire manufacturers; (2) Tire dealers; and (3) Tire recyclers. 9–1702.2. (A) IN THIS SECTION , “ADVISORY COUNCIL ” AND “PRODUCER RESPONSIBILITY ORGAN IZATION” HAVE THE MEANINGS ST ATED IN § 9–2501 OF THIS TITLE. (B) IN ACCORDANCE WITH SU BSECTION (D) OF THIS SECTION AND TO CARRY OUT THE REQUIREMENTS O F § 9–1702(D)(6) OF THIS SUBTITLE, THE OFFICE SHALL HIRE AN INDEPENDENT CONSULTANT TO CONDUCT A STATEWIDE RECYCLING NEEDS ASSESSMENT AT LEAST ONCE EVERY 10 YEARS OR AS RECOMMEN DED BY THE ADVISORY COUNCIL THA T INCLUDES: (1) AN ANALYSIS OF THE STATE’S CURRENT SOLID WAST E STREAMS, INCLUDING: (I) SOLID WASTE GENERATED IN THE STATE BY LOCAL JURISDICTION, TYPE, AND MATERIAL ; (II) DISPOSAL METHODS BY M ATERIAL TYPE AND AMO UNT; AND WES MOORE, Governor Ch. 465 – 5 – (III) ASSOCIATED COSTS AND REVENUES FOR SO LID WASTE DISPOSAL PROGRAMS ; (2) AN ANALYSIS OF THE STATE’S CURRENT RECYCLING STREAMS, INCLUDING: (I) RECYCLABLE MATERIALS PROCESSED BY LOCAL JURISDICTION, TYPE, AND AMOUNT ; (II) PROCESSING METHODS BY MATERIAL TYPE AND AM OUNT; (III) ASSOCIATED COSTS AND REVENUES FOR RECYCLI NG PROGRAMS, COLLECTION, AND TIPPING FEES ; AND (IV) AN ESTIMATE OF THE AM OUNT OF RECYCLABLE M ATERIALS THAT ARE NOT CURRENT LY BEING RECYCLED ; (1) (3) AN EVALUATION OF THE CURRENT INFRASTRUCTU RE AND CAPACITY RELATED TO, NEED FOR, AND ASSOCIATED COSTS OF: (I) RECYCLING ACCESS AND AVAILABILITY; (II) COLLECTING AND HAULIN G RECYCLABLE OR COMPOSTABLE MATERIAL S IN THE STATE; (III) PROCESSING RECYCLABLE OR COMPOSTABLE MATER IALS IN THE STATE; (IV) TAKING ADVANTAGE OF F AVORABLE MARKET COND ITIONS OR OTHER OPPORTUNITI ES FOR INCREASING RE CYCLING OR ORGANICS RECYCLING IN THE STATE; (V) IN COORDINATION WITH LOCAL GOVERNMENTS , CONSUMER EDUCATION REGARDING RECYCLING, ORGANICS RECYCLING , AND CONTAMINATI ON REDUCTION; (VI) REUSE INFRASTRUCTURE ; AND (VII) ORGANICS RECYCLING IN FRASTRUCTURE ; (2) (4) AN EVALUATION OF COMM INGLED RECYCLING PRO CESSING FACILITY WORKER COND ITIONS, WAGES, AND BENEFITS; Ch. 465 2023 LAWS OF MARYLAND – 6 – (3) (5) AN EVALUATION OF OPPO RTUNITIES IN THE RECYCLING SYSTEM FOR WOMEN AND MINORITY INDIVIDUALS ; (4) (6) AN EVALUATION OF LOCA L GOVERNMENT REQUIRE MENTS RELATED TO MULTIFAMI LY AND COMMERCIAL RECYCLING SERVICES A ND THEIR IMPLEMENTATION ; (5) (7) THE SUFFICIENCY OF RE CYCLING EDUCATION PR OGRAMS RELATIVE TO DESIRED EQUITY OUTCOMES ; (6) AN EVALUATION OF OPPO RTUNITIES IN THE REC YCLING SYSTEM FOR BUSINESSES IN TH E STATE; AND (8) AN EVALUATION OF THE ECONOMIC OPPORTUNITI ES IN THE STATE’S RECYCLING SYSTEM , INCLUDING: (I) STATE AND LOCAL REVENUE THAT MAY BE CONSIDERED LOST BECAUSE RECYCLA BLE MATERIALS ARE NO T BEING RECYCLED ; (II) CURRENT JOBS ASSOCIAT ED WITH THE SOLID WA STE AND RECYCLING INDUSTRIES ; (III) OPPORTUNITIES TO INCR EASE EMPLOYMENT IN T HE RECYCLING INDUSTRY B Y MATERIAL TY PE; (IV) BUSINESS OPPORTUNITIE S ASSOCIATED WITH RE CYCLING; (V) BARRIERS TO INCREASIN G THE USE OF RECYCLA BLE MATERIALS AS FEEDSTO CK FOR PRINCIPAL PRO CESSORS AND MANUFACT URERS AND MEANS OF ELIMINA TING THOSE BARRIERS ; AND (VI) RECOMMENDATIONS FOR INCENTIVES TO STIMUL ATE JOB GROWTH AND BUSINESS OPPORTUNITIES IN THE STATE’S RECYCLING INDUSTRY ; (7) (9) RECOMMENDATIONS FOR I MPROVING EQUITY AND EQUITABLE OUTCOMES F OR UNDERSERVED POPUL ATIONS IN THE STATE’S RECYCLING SYSTEM , INCLUDING RECOMMENDA TIONS FOR NEW RESPONSIBILI TIES OF PRODUCER RESPONSI BILITY ORGANIZATIONS AND RECOMMENDATIONS FOR FUNDING THE NEW RESP ONSIBILITIES. RESPONSIBILITIES ; (10) AN ANALYSIS OF THE CO STS AND BENEFITS OF IMPLEMENTING AN EXTENDED PRODUCER RE SPONSIBILITY PROGRAM , INCLUDING TO: WES MOORE, Governor Ch. 465 – 7 – (I) LOCAL GOVERNMENTS ; (II) WASTE PRODUCERS ; (III) RESIDENTS; AND (IV) WASTE MANAGEMENT COMP ANIES; (11) AN ANALYSIS OF THE PO TENTIAL ENVIRONMENTA L IMPACT OF AN EXTENDED PRODUCER RE SPONSIBILITY PROGRAM , INCLUDING THROUGH : (I) INCREASED RECYCLING ; (II) RESOURCE RECOVERY ; (III) WASTE REDUCTION ; AND (IV) REDUCED ENVIRONMENTAL DAMAGE; (12) RECOMMENDATIONS ON TH E BEST PRACTICES TO FOLLOW FROM SUCCESSFUL EXTENDED PRODUCER RESPONSIBIL ITY PROGRAMS IN OTHE R STATES AND COUNTRIES; AND (13) BASED ON THE DATA COL LECTED UNDER ITEM (3) OF THIS SUBSECTION, A RECOMMENDATION ON A REASONABLE ANNUAL RATE PER TON OF RECYCLED OR COMPOSTE D PACKAGING MATERIAL S, TO BE INCLUDED IN TH E PRODUCER RESPONSIBIL ITY PLANS REQUIRED U NDER § 9–2504 OF THIS TITLE, FOR REIMBURSING LOCAL GO VERNMENTS FOR COSTS ASSOCIATED WITH : (I) COLLECTING PACKAGING MATERIALS THAT ARE IDENTIFIED IN PLANS ; (II) TRANSPORTING RECYCLAB LE OR COMPOSTABLE PACKAGING MATERIALS IDENTIFIED IN THE PL ANS; AND (III) PROCESSING RECYCLABLE OR COMPOSTABLE PACKA GING MATERIALS IDENTIFIED IN THE PLANS, INCLUDING REMOVING C ONTAMINATION . (C) ON OR BEFORE APRIL 1, 2025, AND EACH APRIL 1 EVERY 10 YEARS THEREAFTER OR AS REC OMMENDED BY THE ADVI SORY COUNCIL , THE OFFICE SHALL REPORT ON THE RESULT S OF THE MOST RECENT ASSESSMENT CONDUCTED UNDER THIS SECTION T O THE GOVERNOR AND , IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY. Ch. 465 2023 LAWS OF MARYLAND – 8 – (D) IN CONDUCTING THE ASS ESSMENT REQUIRED UND ER THIS SECTION , THE OFFICE INDEPENDENT CONSULTA NT SHALL CONSULT WITH P RODUCER RESPONSIBILITY ORGAN IZATIONS, THE PRODUCER RESPONS IBILITY PLAN ADVISORY COUNCIL EST ABLISHED UNDER § 9–2505 OF THIS TITLE, APPROPRIATE LOCAL GOVERNMENTAL E NTITIES, AND REGIONAL SOLID W ASTE ORGANIZATIONS IN THE STATE. (E) (1) THE SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE OFFICE SHALL ESTABLIS H AND COLLECT A FEE TO BE PAID BY PRODUC ER RESPONSIBILITY ORGAN IZATIONS TO COVER TH E COSTS ASSOCIATED W ITH CONDUCTING THE ASSES SMENTS REQUIRED UNDE R THIS SECTION. (2) BEFORE ESTABLISHING A ND COLLECTING A FEE UNDER PARAGRAPH (1) OF THIS SUBSECTION , THE OFFICE SHALL: (I) PUBLISH A PROPOSED FE E ON ITS WEBSITE; AND (II) ALLOW 90 CALENDAR DAYS FOR PU BLIC COMMENT . 9–1707. (f) (1) There is a State Recycling Trust Fund. (2) The Fund shall consist of: (i) The newsprint recycling incentive fee; (ii) The telephone directory recycling incentive fee collected under § 9–1709 of this subtitle; (iii) The covered electronic device manufacturer registration fee collected under § 9–1728 of this subtitle; (IV) ANY FEES COLLECTED FR OM PRODUCER RESPONSI BILITY ORGANIZATIONS UNDER § 9–1702.2 OF THIS SUBTITLE OR SUBTITLE 25 OF THIS TITLE; [(iv)] (V) All fines and penalties collected under this subtitle AND § 9–2510 OF THIS TITLE; [(v)] (VI) Money appropriated in the State budget to the Fund; and [(vi)] (VII) Any other money from any other source accepted for the benefit of the Fund. WES MOORE, Governor Ch. 465 – 9 – (3) The Secretary shall administer the Fund. (4) The Treasurer shall hold the Fund separately and the Comptroller shall account for the Fund. (5) At the end of each fiscal year, any unspent or unencumbered balance in the Fund that exceeds $2,000,000 shall revert to the General Fund of the State in accordance with § 7–302 of the State Finance and Procurement Article. (6) In accordance with the State budget, the Fund shall be used only: (i) To provide grants to the counties to be used by the counties to develop and implement local recycling plans; (ii) To provide grants to counties that have addressed methods for the separate collection and recycling of covered electronic devices in accordance with § 9–1703(c)(1) of this subtitle; (iii) To provide grants to municipalities to be used by the municipalities to implement local covered electronic device recycling programs; [and] (IV) IN ACCORDANCE WITH PA RAGRAPH (7) OF THIS SUBSECTION, TO COVER THE COSTS O F THE STATEWIDE RECY CLING NEEDS ASSESSMENT CONDUCTED UNDER § 9–1702.2 OF THIS SUBTITLE; (V) IN ACCORDANCE WITH PA RAGRAPH (7) OF THIS SUBSECTION, TO COVER THE COSTS O F PRODUCER RESPONSIB ILITY PLAN REVIEW , OVERSIGHT, AND ENFORCEMENT UNDE R SUBTITLE 25 OF THIS TITLE; AND [(iv)] (VI) To carry out the purposes of the land management administration. (7) (I) THERE SHALL BE A SEPA RATE ACCOUNT WITHIN THE FUND. (II) THE SEPARATE ACCOUNT SHALL CONSIST OF : 1. ANY FEES COLLECTED FR OM PRODUCER RESPONSIBILITY ORGAN IZATIONS UNDER § 9–1702.2 OF THIS SUBTITLE OR SUBTITLE 25 OF THIS TITLE; AND 2. ALL FINES AND PENALTI ES COLLECTED UNDER § 9–2510 OF THIS TITLE. Ch. 465 2023 LAWS OF MARYLAND – 10 – (III) THE SEPARATE ACCOUNT SHALL BE USED ONLY F OR THE COSTS OF THE STATEWI DE RECYCLING NEEDS A SSESSMENT CONDUCTED UNDER § 9–1702.2 OF THIS SUBTITLE AND PRODUCER RESPONSIBIL ITY PLAN REVIEW , OVERSIGHT, AND ENFORCEMENT UNDE R SUBTITLE 25 OF THIS TITLE. [(7)] (8) (i) The Treasurer shall invest the money in the Fund in the same manner as other State money may be invested. (ii) Any investment earnings of the Fund shall be credited to the General Fund of the State. SUBTITLE 25. PRODUCER RESPONSIBILITY FOR PACKAGING MATERIALS. 9–2501. (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS INDICATED. (B) “ADVISORY COUNCIL ” MEANS THE PRODUCER R ESPONSIBILITY PLAN ADVISORY COUNCIL EST ABLISHED UNDER § 9–2505 9–2503 OF THIS SUBTITLE. (C) “BEVERAGE CONTAINER ” MEANS A PREPACKAGED BEVERAGE CONTAINER: (1) MADE OF ANY MATERIAL , INCLUDING GLASS , PLASTIC, METAL, CARTON, POUCH, OR ASEPTIC PACKAGING , SUCH AS A DRINK BOX , OR OF MULTIMATERIALS ; AND (2) THE VOLUME OF WHICH I S NOT MORE THAN 5 LITERS. (D) (C) “LOCAL GOVERNMENT ” MEANS: (1) A COUNTY; OR (2) A MUNICIPALITY. (D) “MATERIALS RECYCLING F ACILITY” MEANS A FACILITY THA T RECEIVES RECYCLABLE MATERIALS FOR MECHANICAL OR MA NUAL SORTING INTO SPECIFICATION–GRADE COMMODITIES FO R SALE TO A BROKER O R END MARKET . (E) (D) “ORGANICS RECYCLING ” AND “ORGANICS RECYCLING F ACILITY” HAVE THE MEANINGS HAS THE MEANING STATED IN § 9–1701 OF THIS TITLE. WES MOORE, Governor Ch. 465 – 11 – (F) “PACKAGING MATERIAL WA STE” MEANS THE PERCENTAGE OF THE TOTAL WEIGHT OF PACK AGING MATERIALS SOLD OR DISTRIBUTED IN TH E STATE THAT ARE NOT RECYCLE D, REUSED, OR COMPOSTED . (E) (G) (E) (1) “PACKAGING MATERIALS ” MEANS, REGARDLESS OF RECYCLABILITY , ANY PART OF A PACKAG E OR CONTAINER , INCLUDING MATERIAL THAT IS USED FOR THE CONTAINMENT , PROTECTION , HANDLING, DELIVERY, AND PRESENTATION OF A PR ODUCT THAT IS SOLD , OFFERED FOR SALE , IMPORTED, OR DISTRIBUTED IN THE STATE. (2) “PACKAGING MATERIALS ” INCLUDES: (I) PRIMARY, SECONDARY , AND TERTIARY PACKAGI NG INTENDED FOR THE CON SUMER MARKET ; (II) SERVICE PACKAGING DES IGNED AND INTENDED T O BE FILLED AT THE POINT OF SALE, INCLUDING: 1. CARRY–OUT BAGS; 2. BULK GOODS BAGS ; AND 3. TAKE–OUT AND HOME DELIVER Y FOOD SERVICE PACKAGING; AND (III) BEVERAGE CONTAINERS . (3) “PACKAGING MATERIALS ” DOES NOT INCLUDE ANY INCLUDE: (I) ANY PART OF A PACKAGE OR CONTAINER THAT IS SO LD OR SUPPLIED IN CONNECTI ON WITH: (I) 1. A PESTICIDE PRODUCT RE GULATED BY THE FEDERAL INSECTICIDE, FUNGICIDE, AND RODENTICIDE ACT UNDER 7 U.S.C. § 136 ET SEQ. OR ANY OTHER APPLICA BLE FEDERAL LAW , RULE, OR REGULATION ; (II) 2. A FEDERALLY REGULATED DRUG, MEDICAL DEVICE , BIOLOGIC, OR DIAGNOSTIC, OR DIETARY SUPPLEMEN T INCLUDING ITEMS INTE NDED FOR ANIMALS; OR (III) 3. A MEDICAL PRODUCT THAT IS REQUIRED TO BE STERILE OR ENCLOSED IN PACKAGING WITH TA MPER–RESISTANT SEALS TO PROTECT PUBLIC HEALTH , INCLUDING MEDICAL PR ODUCTS INTENDED FOR ANIMALS; OR Ch. 465 2023 LAWS OF MARYLAND – 12 – (II) LIQUEFIED PETROLEUM G AS CONTAINERS THAT A RE DESIGNED TO BE REFIL LED. (F) (H) (F) (1) “PRODUCER” MEANS A PERSON THAT IS RESPONSIBLE FOR COMPLYING WITH THIS SUBTITLE UNDER § 9–2503 OF THIS SUBTITLE: (I) WITH RESPECT TO PACKA GING MATERIALS USED TO DIRECTLY PROTECT OR CONTAIN A PRODUCT SO LD, OFFERED FOR SALE , OR DISTRIBUTED IN THE STATE: 1. A. HAS LEGAL OWNERSHIP O F THE BRAND OF THE PRODUCT UNDER WHICH THE PRODUCT IS SOLD; OR B. IS THE MANUFACTURER O F THE PRODUCT , IF THE PRODUCT IS SOLD IN P ACKAGING MATERIALS T HAT LACK IDENTIFICAT ION OF THE BRAND; 2. IS THE LICENSEE OF TH E BRAND OR TRADEMARK UNDER WHICH THE PROD UCT IS SOLD, WHETHER OR NOT THE T RADEMARK IS REGISTERED IN THE STATE, IF THE PRODUCT IS MA NUFACTURED BY A PERS ON OTHER THAN THE BRAND OWNERS; OR 3. IS THE PERSON THAT IM PORTS THE PRODUCT IN TO THE UNITED STATES FOR USE IN A C OMMERCIAL ENTERPRISE THAT SELLS, OFFERS FOR SALE, OR DISTRIBUTES THE I TEM IN THE STATE, IF THERE IS NO PERSO N DESCRIBED IN SUBSUBP ARAGRAPHS 1 AND 2 OF THIS SUBPARAGRAPH ; AND (II) WITH RESPECT TO PACKA GING MATERIALS USED TO SHIP A PRODUCT TO A CONSUME R IN THE STATE, IS THE PERSON THAT P ACKAGES AND SHIPS THE PRODUCT . (2) “PRODUCER” DOES NOT INCLUDE : (I) A LOCAL GOVERNMENT ; (II) A NONPROFIT CHARITABLE ORGANIZATION ; OR (III) AN ENTITY THAT MANUFA CTURES A DRUG OR DEV ICE AUTHORIZED FOR SALE BY THE U.S. FOOD AND DRUG ADMINISTRATION UNDER THE FEDERAL FOOD, DRUG, AND COSMETIC ACT; WES MOORE, Governor Ch. 465 – 13 – (IV) AN ENTITY THAT GENERA TED LESS THAN $5,000,000 IN GROSS REVENUE DURING THE IMMEDIATELY PREC EDING CALENDAR YEAR ; (V) AN ENTITY THAT SOLD , OFFERED FOR SALE , OR DISTRIBUTED FOR SALE IN THE STATE DURING THE IMME DIATELY PRECEDING CALENDAR YEAR LESS T HAN 1 METRIC TON OF PACKAG ING MATERIALS; (VI) 1. AN ENTITY THAT OWNS O R OPERATES A RESTAUR ANT, FOOD CART, OR SIMILAR ESTAB LISHMENT THAT : A. IS HEADQUARTERED IN T HE STATE; AND B. PRIMARILY SELLS TO ME MBERS OF THE PUBLIC FOOD THAT IS GENERALLY IN TENDED TO BE CONSUME D IMMEDIATELY AND WI THOUT THE NEED FOR FURTHER PRE PARATION, EITHER ON OR OFF THE PREMISES; AND 2. IS NOT A PRODUCER OF FOOD SERVICEWARE ; (VII) AN ENTITY THAT OWNS O R OPERATES A SINGLE RETAIL SALES ESTABLISHMENT THAT: 1. HAS NO ONLINE SALES ; AND 2. IS NOT SUPPLIED OR OP ERATED AS PART OF A FRANCHISE OR A CHAIN ; OR (VIII) 1. AN ENTITY THAT IS LICENSED UNDER TITLE 2 OF THE ALCOHOLIC BEVERAGES ARTICLE; AND 2. GENERATED LESS THAN $10,000,000 IN GROSS REVENUE DURING THE I MMEDIATELY PRECEDING CALENDAR YEAR ; OR (IX) AN ENTITY THAT HAS EX ECUTED AN AGREEMENT WITH ANOTHER ENTITY , UNDER WHICH THE OTHER ENTI TY HAS AGREED TO ASS UME RESPONSIBILITY UNDER A PRODUCER RESPONSIB ILITY PROGRAM FOR AN Y PACKAGING MATERIALS ATTRIBUTABLE TO THE FIRST ENTITY. (G) (I) “PRODUCER RESPONSIBILI TY ORGANIZATION ” MEANS: (1) A PRODUCER THAT INDIVI DUALLY SUBMITS A PRODUCER RESPONSIBILITY PLAN TO THE DEPARTMENT UNDER § 9–2504 OF THIS SUBTITLE ; OR Ch. 465 2023 LAWS OF MARYLAND – 14 – (2) (G) A “PRODUCER RESPONSIBILI TY ORGANIZATION ” MEANS A NONPROFIT ORGANIZATI ON THAT IS: (I) (1) EXEMPT FROM TAXATION UNDER § 501(C)(3) OF THE INTERNAL REVENUE CODE; AND (II) (2) CREATED BY A GROUP OF PRODUCERS TO IMPLEMENT A PRODUCER RESPONSIBIL ITY PLAN IN ACCORDAN CE WITH § 9–2504(A) OF THIS SUBTITLE REPRESENT THE INTERE STS OF PRODUCERS UND ER THIS SUBTITLE. (H) (J) “PRODUCER RESPONSIBILI TY PLAN” MEANS A PACKAGING MATERIALS PRODUCER R ESPONSIBILITY PLAN S UBMITTED TO THE DEPARTMENT BY A PRODUCER OR PRO DUCER RESPONSIBILITY ORGANIZATION IN ACCO RDANCE WITH § 9–2504 OF THIS SUBTITLE. 9–2502. IT IS THE INTENT OF THE GENERAL ASSEMBLY THAT THIS SU BTITLE PROVIDE A FRAMEWORK FOR : (1) MODERNIZING AND IMPRO VING WASTE AND RECYC LING SYSTEMS IN THE STATE, INCLUDING BY FACILIT ATING: (I) THE IMPROVEMENT OF RE USE, ORGANICS RECYCLING , AND RECYCLING; (II) THE IMPROVEMENT OF RE CYCLING MARKETS ; (III) THE REDUCTION OF WAST E; AND (IV) AN INCREASE IN RECYCL ING RATES; AND (2) REIMBURSING LOCAL GOV ERNMENTS FOR COSTS A SSOCIATED WITH TRANSPORTING , COLLECTING, AND PROCESSING PACKA GING MATERIALS . 9–2503. (A) (1) (I) THIS PARAGRAPH APPLIE S TO ITEMS SOLD IN PACKAGING MATERIALS AT A PHYSI CAL RETAIL LOCATION IN THE STATE. (II) IF THE ITEM IS SOLD U NDER THE MANUFACTURE R’S OWN BRAND OR IS SOLD IN PACKAGING MATERIALS THAT LACK IDENTIFICA TION OF A WES MOORE, Governor Ch. 465 – 15 – BRAND, THE PRODUCER OF THE PACKAGING MATERIALS IS THE PERSON THAT MANUFACTURES THE ITE M. (III) IF THE ITEM IS MANUFA CTURED BY A PERSON O THER THAN THE BRAND OWNER , THE PRODUCER OF THE PACKAGING MATERIALS IS THE PERSON THAT IS THE LICENSEE OF A BRAND OR TRADEM ARK UNDER WHICH AN I TEM IS SOLD, OFFERED FOR SA LE, OR DISTRIBUTED IN TH E STATE, WHETHER OR NOT THE TRADEMARK IS REGISTE RED IN THE STATE. (IV) IF THERE IS NO PERSON DESCRIBED IN SUBPARA GRAPHS (II) OR (III) OF THIS PARAGRAPH LO CATED WITHIN THE UNITED STATES, THE PRODUCER OF THE PACK AGING MATERIALS I S THE PERSON THAT IM PORTS THE ITEM INTO THE UNITED STATES FOR USE IN A C OMMERCIAL ENTERPRISE THAT SELLS, OFFERS FOR SALE , OR DISTRIBUTES THE I TEM IN THE STATE. (2) (I) THIS PARAGRAPH APPLIE S TO ITEMS SOLD OR DISTRIBUTED IN PACKA GING MATERIALS IN TH E STATE THROUGH REMOTE S ALE OR DISTRIBUTION. (II) THE PRODUCER OF THE P ACKAGING MATERIALS U SED TO DIRECTLY PROTECT OR CONTAIN THE ITEM IS THE SAME AS THE PROD UCER ESTABLISHED UNDER PA RAGRAPH (1) OF THIS SUBSECTION . (III) THE PRODUCER OF THE P ACKAGING MATERIALS USED TO SHIP THE ITEM TO A C ONSUMER IS THE PERSO N THAT PACKAGES AND SHIPS THE ITEM TO THE CONSUMER . (IV) FOR ANY PACKAGING MAT ERIALS NOT IDENTIFIE D UNDER SUBPARAGRAPHS (II) AND (III) OF THIS PARAGRAPH , THE PRODUCER OF THE PACKAGING MATERIALS IS THE PERSON THAT F IRST DISTRIBUTES THE PACKAGED ITEM IN THE STATE. (B) THIS SUBTITLE DOES NO T APPLY TO A PERSON THAT: (1) (I) GENERATED LESS THAN $5,000,000 IN GROSS REVENUE DURING THE IMMEDIATE LY PRECEDING CALENDA R YEAR; (II) SOLD, OFFERED FOR SALE, OR DISTRIBUTED FOR S ALE IN THE STATE DURING THE IMME DIATELY PRECEDING CA LENDAR YEAR LESS THA N 1 METRIC TON OF PACKAG ING MATERIALS ; (III) 1. OWNS OR OPERATES A RE STAURANT, FOOD CART, OR SIMILAR ESTABLISHMEN T THAT: Ch. 465 2023 LAWS OF MARYLAND – 16 – A. IS HEADQUARTERED IN T HE STATE; AND B. PRIMARILY SELLS TO ME MBERS OF THE PUBLIC FOOD THAT IS GENERALLY IN TENDED TO BE CONSUME D IMMEDIATELY AND WI THOUT THE NEED FOR FURTHER PRE PARATION, EITHER ON OR OFF THE PREMISES; AND 2. IS NOT A PRODUCER OF FOOD SERVICEWARE ; (IV) OWNS OR OPERATES A SI NGLE RETAIL SALES ESTABLISHMENT THAT : 1. HAS NO ONLINE SALES ; AND 2. IS NOT SUPPLIED OR OP ERATED AS PART OF A FRANCHISE OR A CHAIN ; OR (V) 1. IS LICENSED UNDER TITLE 2 OF THE ALCOHOLIC BEVERAGES ARTICLE; AND 2. GENERATED LESS THAN $10,000,000 IN GROSS REVENUE DURING THE I MMEDIATELY PRECEDING CALENDAR YEAR ; AND (2) ON REQUEST BY THE DEPARTMENT , PROVIDES TO THE DEPARTMENT SUFFICIENT INFORMATION TO DEMON STRATE THAT THE PROD UCER MEETS THE CONDITIONS OF THIS SECTION. (C) THIS SUBTITLE DOES NO T AFFECT THE AUTHORI TY OF THE STATE OR A LOCAL JURISDICTION T O REGULATE THE SALE OR USE OF ANY PACKAG ING MATERIAL. (D) THIS SUBTITLE DOES NO T PROHIBIT A PRODUCE R RESPONSIBILITY ORGANIZATION FROM ES TABLISHING A DEPOSIT –RETURN SYSTEM AS ONE STRATEGY FOR INCREAS ING THE CAPTURE AND RECYCLING OF BEVERAG E CONTAINERS OR OTHER PACKAGING MATERIALS . (D) THIS SUBTITLE MAY NOT BE CONSTRUED TO : (1) PROHIBIT A LOCAL GOVE RNMENT OR ANY OTHER ENTITY FROM SELLING RECYCLED MAT ERIALS OR COMPOST TO END MARKE TS AND RETAINING THE REVENUES FROM TH OSE SALES; WES MOORE, Governor Ch. 465 – 17 – (2) AFFECT THE AUTHORITY OF A PUBLICLY OR PRI VATELY OWNED MATERIALS RECYCLING FACILITY OR ORGANICS RECYCLING FACILITY T O DETERMINE WHICH ENTI TIES MAY USE THE FAC ILITY; OR (3) LIMIT THE ABILITY OF LOCAL GOVERNMENTS , MATERIALS RECYCLING FACILITIES , OR ORGANICS RECYCLIN G FACILITIES TO MAKE DECISIONS ON RECYCLING INFRAST RUCTURE PURCHASES , INCLUDING PROCESSING EQUIPMENT. 9–2504. (A) (1) ON OR BEFORE JUNE 30, 2024, THE DEPARTMENT SHALL APPROVE A SINGLE PRO DUCER RESPONSIBILITY ORGANIZATION TO FULF ILL THE REQUIREMENTS OF THIS SUBSECTION. (2) (I) BEGINNING JULY 1, 2024, AND EACH YEAR THEREA FTER, A THE PRODUCER RESPONSIBIL ITY ORGANIZATION SHA LL FILE A REGISTRATI ON FORM WITH THE DEPARTMEN T. (II) THE REGISTRATION FORM SHALL INCLUDE : 1. A LIST OF THE RESPONSI BLE PARTIES PRODUCERS PARTICIPATING IN THE PRODUCER RESPONSIBIL ITY ORGANIZATION ; 2. A LIST OF THE BRANDS O F EACH RESPONSIBLE P ARTY PRODUCER PARTICIPATING IN THE PRODUCER RESPONSIBIL ITY ORGANIZATION ; 3. A LIST OF THE COVERED MATERIALS OF EACH RESPONSIBLE PARTY PRODUCER PARTICIPATING IN THE PRODUCER RESPONSIBILITY ORGAN IZATION; AND 4. THE NAME, ADDRESS, AND CONTACT INFORMAT ION OF A PERSON RESPONSIBLE FOR ENSURING THE PRODUCE R RESPONSIBILITY ORGANIZATION ’S AND THE MEMBER RES PONSIBLE PARTIES ’ PRODUCERS ’ COMPLIANCE WITH THIS SUBTITLE. (III) AT SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , AT THE TIME OF FILING T HE REGISTRATION FORM , A THE PRODUCER RESPONSIBIL ITY ORGANIZATION SHALL P AY TO THE DEPARTMENT AN ANNUAL REGISTRATION FEE TO COVER THE COSTS O F RECORD KEEPING , NOT TO EXCEED $1,000. (IV) AT THE TIME OF THE IN ITIAL SUBMISSION OF THE REGISTRATION FORM BY A THE PRODUCER RESPONSIB ILITY ORGANIZATION , THE ORGANIZATION SHALL H AVE 60 DAYS TO PAY TO THE DEPARTMENT THE ESTIMA TED Ch. 465 2023 LAWS OF MARYLAND – 18 – COST OF CONDUCTING T HE INITIAL STATEWIDE RECYCLING NEEDS ASSE SSMENT REQUIRED UNDER § 9–1702.2 OF THIS TITLE. (V) IF MORE THAN ONE PROD UCER RESPONSIBILITY ORGANIZATION REGISTE RS WITH THE DEPARTMENT , THE DEPARTMENT SHALL EQUALLY DIVIDE THE C OST OF THE STATEWIDE RECYCLING NEEDS ASSE SSMENT. (3) BEFORE ESTABLISHING A ND COLLECTING AN ANN UAL REGISTRATION FEE UND ER PARAGRAPH (2)(III) OF THIS SUBSECTION , THE DEPARTMENT SHALL : (I) PUBLISH A PROPOSED FE E ON ITS WEBSITE; AND (II) ALLOW 90 CALENDAR DAYS FOR PU BLIC COMMENT . (4) (I) ON OR AFTER JULY 1, 2030, A NONPROFIT ORGANIZA TION MAY REQUEST THAT THE DEPARTMENT DESIGNATE THE NONPROFIT ORGANIZATION AS AN ADDITIONAL PRODUCER RESPONSIBILITY ORGAN IZATION. (II) THE DEPARTMENT MAY DESIGN ATE A NONPROFIT ORGANIZATION AS AN A DDITIONAL PRODUCER R ESPONSIBILITY ORGANI ZATION IF THE DEPARTMENT DETERMINES , IN COORDINATION WITH THE ADVISORY COUNCIL ESTABLISHED UNDER § 9–2505 OF THIS SUBTITLE , THAT THE DESIGNATION OF THE ADDITIONAL PRODUCER RESPONSIBILITY ORGAN IZATION IS NECESSARY TO: 1. INCREASE RECYCLING RA TES; OR 2. IMPROVE RECYCLING SER VICES FOR A SPECIFIC TYPE OF PACKAGING MA TERIAL. (III) IF THE DEPARTMENT APPROVES THE DESIGNATION OF AN ADDITIONAL PRODUCER RESPONSIBILITY ORGAN IZATION UNDER THIS SUBSECTION, THE PRODUCER RESPONS IBILITY ORGANIZATION SHALL: 1. NOT LATER THAN 30 DAYS AFTER BEING APP ROVED BY THE DEPARTMENT AND ON OR BEFORE JULY 1 EACH YEAR THEREAFTER , FILE A REGISTRATION FORM WI TH THE DEPARTMENT CONTAINING THE INFORMATION REQUIRED UNDER PARAG RAPH (2)(II) OF THIS SUBSECTION A ND PAY THE ANNUAL REGISTRATION FEE DES CRIBED IN PARAGRAPH (2)(III) OF THIS SUBSECTION ; AND 2. COORDINATE WITH THE PRODUCER RESPONS IBILITY ORGANIZATION ESTABLI SHED UNDER PARAGRAPH (1) OF THIS SUBSECTION , THE DEPARTMENT , AND LOCAL GOVERNMENT S TO ENSURE THAT : WES MOORE, Governor Ch. 465 – 19 – A. RECYCLING SERVICES FO R RESIDENTS OF THE STATE ARE PROVIDED IN A SE AMLESS MANNER ; AND B. PUBLIC OUTREACH, EDUCATION, AND COMMUNICATION ARE PR OVIDED IN A CONSISTE NT MANNER. (IV) THE PRODUCER RESPONSI BILITY ORGANIZATION ESTABLISHED UNDER PA RAGRAPH (1) OF THIS SUBSECTION A ND ANY ADDITIONAL PRODUCER RESPONSIBIL ITY ORGANIZATIONS DE SIGNATED UNDER THIS PARAGRAPH MAY CREATE A REPRESENTATIVE ORG ANIZATION TO REPRESE NT THE PARTICIPATING PRODUC ER RESPONSIBILITY OR GANIZATIONS TO IMPLE MENT THE REQUIREMENTS OF THIS SUBTITLE. (2) (B) (I) (1) ON OR BEFORE APRIL 1, 2026, AND EVERY 5 YEARS THEREAFTER , EACH PRODUCER SHALL , INDIVIDUALLY OR AS P ART OF A PRODUCER RESPONSIBIL ITY ORGANIZATION , SUBMIT A PRODUCER RESPONSIBILITY PLAN TO THE DEPARTMENT FOR REVIEW AND APPROVAL . (II) IF MORE THAN ONE PROD UCER RESPONSIBILITY ORGANIZATION SUBMITS A PRODUCER RESPONSIB ILITY PLAN TO THE DEPARTMENT : 1. THE PRODUCER RESPONSI BILITY ORGANIZATIONS SHALL COORDINATE WIT H THE DEPARTMENT AND LOCAL GOVERNMENTS TO ENSURE THAT : A. RECYCLING SERVICES FO R RESIDENTS IN THE STATE ARE PROVIDED IN A SE AMLESS MANNER ; AND B. PUBLIC OUTREACH , EDUCATION, AND COMMUNICATION ARE PR OVIDED IN A CONSISTE NT MANNER; AND 2. THE PRODUCER RESPONSI BILITY ORGANIZATIONS MAY CREATE A REPRESE NTATIVE ORGANIZATION TO REPRESENT ALL PARTICIPATING PRODUC ER RESPONSIBILITY OR GANIZATIONS TO IMPLE MENT THE REQUIREMENTS OF THIS SUBTITLE. (III) (2) BEFORE SUBMITTING THE PLAN REQUIRED UNDER THIS SUBSECTION TO T HE DEPARTMENT , A PRODUCER OR PRODUC ER RESPONSIBILITY ORGAN IZATION SHALL: 1. (I) CONSULT WITH THE ADVI SORY COUNCIL ESTABLISHED UNDER § 9–2505 OF THIS SUBTITLE; AND Ch. 465 2023 LAWS OF MARYLAND – 20 – 2. (II) CONSIDER THE WRITTEN RECOMMENDATIONS OF THE ADVISORY COUNCIL PROVIDED UNDER § 9–2505(G)(6) OF THIS SUBTITLE AND RESPOND IN WRITING T O THE ADVISORY COUNC IL. (3) (I) ON EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS PARAGRAPH , ON OR AFTER A DATE ESTA BLISHED IN REGULATIO NS ADOPTED BY THE DEPARTMENT UNDER § 9–2509 OF THIS SUBTITLE , A PRODUCER MAY NOT S ELL, OFFER FOR SALE , DISTRIBUTE, OR IMPORT FOR SALE O R DISTRIBUTION PACKA GING MATERIALS FOR USE IN THE STATE UNLESS THE PRODUCER , INDIVIDUALLY OR AS PART OF A PRODUCER R ESPONSIBILITY ORGANI ZATION, HAS AN APPROVED PRODUCER RESPONSIBIL ITY PLAN ON FILE WIT H THE DEPARTMENT . (II) A PRODUCER IS NOT REQU IRED TO SUBMIT A PRO DUCER RESPONSIBILITY PLAN TO THE DEPARTMENT , INDIVIDUALLY OR AS PART OF A PRODUCER RESPONSIBIL ITY ORGANIZATION , IF ANOTHER PERSON HA S AGREED TO ASSUME RESPONSIBILIT Y UNDER THIS SUBTITL E FOR ANY PACKAGING MATERIAL SOLD, OFFERED FOR SALE , OR DISTRIBUTED IN OR INTO THE STATE BY THAT PRODUCER. (B) (C) A PRODUCER RESPONSIBIL ITY PLAN SHALL: (1) IDENTIFY THE PRODUCER S COVERED BY THE PLA N, INCLUDING THE CONTACT INFORMAT ION FOR EACH PARTICI PATING PRODUCER AND THE PRODUCER RESPONSIBIL ITY ORGANIZATION ; (2) IDENTIFY EACH BRAND O F PACKAGING MATERIAL S COVERED BY THE PLAN; (3) REQUIRE, IN ACCORDANCE WITH S UBSECTION (C) (D) OF THIS SECTION, ACHIEVEMENT WITHIN 5 YEARS AFTER THE DATE ON WHICH THE FIRST VERSION OF THE PLAN IS APPROVED AND ESTA BLISH THE FOLLOWING PERFORMANCE GOALS , AS RELEVANT, FOR EACH PACKAGING MATERIAL T YPE: (I) POSTCONSUMER RECYCLED CONTENT GOALS ; (II) RECYCLABILITY AND REC YCLING RATE GOALS ; (III) REUSE GOALS; (IV) PACKAGING REDUCTION G OALS; WES MOORE, Governor Ch. 465 – 21 – (V) COMPOST ACCESS OR COM POST RATE GOALS , IF APPLICABLE AND TECHN OLOGICALLY AND ENVIR ONMENTALLY FEASIBLE ; (VI) CONTAMINATION REDUCTI ON RATE GOALS ; (VII) GREENHOUSE GAS REDUCT ION GOALS; AND (VIII) ANY OTHER GOAL THAT R EDUCES PACKAGING MAT ERIAL WASTE AND IS JUSTIFI ED IN THE PLAN; (4) REQUIRE EACH PARTICIP ATING PRODUCER PRODUCERS TO REDUCE ALL PACKAGING MATERIAL WASTE TO TH E MAXIMUM EXTENT PRACTICABLE , AND BY NOT LESS THAN 25% FOR EACH PACKAGING M ATERIAL TYPE, WITHIN 5 YEARS AFTER THE DATE ON WHICH THE FIRST V ERSION OF THE PLAN I S APPROVED; (5) DESCRIBE, IN ACCORDANCE WITH S UBSECTION (D) (E) OF THIS SECTION, THE FINANCING METHOD THAT WILL BE USED TO IMPLEMENT THE PLAN ; (6) DESCRIBE HOW THE PERF ORMANCE GOALS ESTABL ISHED UNDER ITEM (3) OF THIS SUBSECTION W ILL BE MET OR EXCEED ED; (7) DESCRIBE HOW STAKEHOL DER COMMENTS WERE CO NSIDERED IN THE DEVELOPMENT OF T HE PLAN; (8) DESCRIBE HOW STAFFING AND ADMINISTERING TH E IMPLEMENTATION OF TH E PLAN WILL BE HANDL ED; (9) DESCRIBE THE STRATEGY FOR REDUCING PACKAGI NG MATERIALS IN THE STATE, INCLUDING HOW PRODUC ERS PARTICIPATING IN A PLAN WILL WORK TOGETHER T O REDUCE PACKAGING T HROUGH PRODUCT DESIG N AND PROGRAM INNOVATIONS ; (10) DESCRIBE THE ACTIONS TAKEN OR THAT WILL B E TAKEN FOR PUBLIC OUTREACH , EDUCATION, AND COMMUNICATION , TAKING INTO ACCOUNT THAT PUBLIC OUTREACH , EDUCATION, AND COMMUNICATION SH ALL: (I) PROMOTE THE RESPONSIB LE END–OF–LIFE MANAGEMENT OF PACKAGING MATERIA LS; (II) PROVIDE INFORMATION O N HOW TO PREVENT LIT TER OF PACKAGING MATERIALS ; Ch. 465 2023 LAWS OF MARYLAND – 22 – (III) PROVIDE RECYCLING AND ORGANICS RECYCLI NG INSTRUCTIONS THAT AR E, TO THE EXTENT PRACTI CABLE: 1. CONSISTENT STATEWIDE , TAKING INTO ACCOUNT DIFFERENCES AMONG LO CAL LAWS AND PROCESS ING CAPABILITIES; 2. EASY TO UNDERSTAND ; AND 3. EASILY ACCESSIBLE ; AND (IV) PROVIDE FOR OUTREACH AND EDUCATION THAT A RE: 1. DESIGNED TO ACHIEVE P ACKAGING MATERIALS MANAGEMENT GOALS AND REQUIREMENTS , INCLUDING THE PREVEN TION OF CONTAMINATION OF PAC KAGING MATERIALS ; 2. COORDINATED ACROSS PR OGRAMS TO AVOID CONFUSION FOR CO NSUMERS; AND 3. DEVELOPED IN CONSULTA TION WITH LOCAL GOVERNMENTS AND OTHE R STAKEHOLDERS ; (11) DESCRIBE, IN ACCORDANCE WITH S UBSECTION (E) (F) OF THIS SECTION, THE AMOUNT OF FUNDIN G THAT WILL BE USED FOR IMPROVING REUSE , ORGANICS RECYCLING , AND RECYCLING IN THE STATE; (12) DESCRIBE THE PROCESS BY WHICH A LOCAL GOV ERNMENT MAY REQUEST REIMBURSEMEN T FOR COSTS ASSOCIAT ED WITH TRANSPORTING , COLLECTING, AND PROCESSING PACKA GING MATERIALS THAT ARE IDENTIFIED IN THE PLAN, INCLUDING: (I) THE PROCESS BY WHICH THE REQUEST WILL BE REVIEWED; (II) THE PROCESS FOR APPRO VING OR DENYING A RE QUEST FOR REIMBURSEMENT ; (III) THE SCHEDULE FOR PROV IDING REIMBURSEMENT THAT INCLUDES REIMBURSEME NT ON AT LEAST A QUA RTERLY BASIS; AND (IV) THE PROCESS FOR PROVI DING REIMBURSEMENT F OR MULTIPLE BRANDS OF P ACKAGING MATERIALS ; (13) (I) PROVIDE THE WRITTEN R ECOMMENDATIONS FROM THE ADVISORY COUNCIL PRO VIDED UNDER § 9–2505(G)(6) OF THIS SUBTITLE AND THE WES MOORE, Governor Ch. 465 – 23 – PRODUCER RESPONSIBIL ITY ORGAN IZATION’S WRITTEN RESPONSE T O THE ADVISORY COUNCIL ; AND (II) DESCRIBE HOW THE WRIT TEN RECOMMENDATIONS FROM THE ADVISORY COUNCIL WERE CONSIDERED AND ADDRESSED IN THE DEVELOPMENT OF THE P LAN; AND (14) INCLUDE ANY OTHER INF ORMATION THAT IS REQ UIRED BY THE DEPARTMENT . (C) (D) BASED ON THE RESULTS OF THE STATEWIDE REC YCLING NEEDS ASSESSMENT CONDUCTED UNDER § 9–1702.2 OF THIS TITLE, THE DEPARTMENT , IN COORDINATION WITH A PRODUCER RESPONSIBIL ITY ORGANIZATION , SHALL ESTABLISH PERFORMANC E GOALS FOR EACH PAC KAGING MATERIAL TYPE USING A BASELINE YEAR THAT I S INFORMED BY THE ST ATEWIDE RECYCLING NE EDS ASSESSMENT , INCLUDING ESTABLISHI NG RECYCLING RATE GO ALS FOR EACH PACKAGING MATERIAL T YPE, AT 5–, 10–, AND 15–YEAR INTERVALS . (D) (E) (1) THE FINANCING METHOD THAT WILL BE USED BY A PRODUCER RESPONSIBILITY ORGAN IZATION TO IMPLEMENT A PRODUCER RESPONSIBILITY PLAN SHALL: (I) PROVIDE THE METHOD FO R EITHER DIRECT INVE STMENTS OR REIMBURSEMENTS FO R IMPROVING INFRASTR UCTURE FOR REUSE , ORGANICS RECYCLING, AND RECYCL ING IN ACCORDANCE WI TH SUBSECTION (B)(11) (C)(11) OF THIS SECTION; (II) PROVIDE SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, PROVIDE A REASONABLE ANNUAL RATE PER TON OF RECY CLED OR COMPOSTED PACKAGING MATERIALS FOR REIMBU RSING LOCAL GOVERNME NTS FOR COSTS ASSOCIATED WIT H: 1. UP TO 50% OF THE COST OF COLLE CTING PACKAGING MATERIALS THAT ARE I DENTIFIED IN THE PLA N; 2. TRANSPORTING RECYCLAB LE OR COMPOSTABLE PACKAGING MATERIALS TO A RECYCLING OR MATERIALS RECYCLING FACILITY OR AN ORGANICS RECYCLING F ACILITY; 3. PROCESSING PACKAGING MATERIALS, INCLUDING REMOVING CONTAMINATI ON; AND 4. RECYCLING PACKAGING M ATERIALS THAT ARE DIVERTED TO BE RECYC LED OR COMPOSTED IN THE STATE CONVERTING Ch. 465 2023 LAWS OF MARYLAND – 24 – PACKAGING MATERIALS THAT ARE DIVERTED TO BE RECYCLED OR COMPO STED INTO COMMODITY MATER IALS; (III) ESTABLISH SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION, ESTABLISH A FEE STRUCTURE FOR PARTICIPATING PRODUC ERS THAT IS SET IN A MANNER T O COVER COSTS ASSOCI ATED WITH: 1. IMPLEMENTING THE PLAN, INCLUDING THE ADMINISTRATIVE COSTS OF A PRODUCER RESPON SIBILITY ORGANIZATIO N; 2. REIMBURSING LOCAL GOV ERNMENTS FOR COSTS I N ACCORDANCE WITH ITEM (II) OF THIS PARAGRAPH ; 3. THE ADMINISTRATION , REVIEW, OVERSIGHT, AND ENFORCEMENT OF THE P LAN BY THE DEPARTMENT ; 4. IMPLEMENTING THE STRA TEGY IN THE PLAN FOR REDUCING PACKAGING M ATERIALS IN ACCORDAN CE WITH SUBSECTION (B)(9) (C)(9) OF THIS SECTION; AND 5. IMPLEMENTING THE STRA TEGY IN THE PLAN FOR IMPROVING REUSE , ORGANICS RECYCLING , AND RECYCLING IN THE STATE IN ACCORDANCE WITH SUBS ECTION (B)(11) (C)(11) OF THIS SECTION; (IV) 1. DESCRIBE THE INCENTIV ES TO ENCOURAGE PARTICIPATING PRODUC ERS TO ENGAGE IN WAS TE REDUCTION AND REC YCLING ACTIVITIES; AND 2. DESCRIBE THE DISINCEN TIVES TO DISCOURAGE DESIGNS OR PRACTICES THAT INCREASE THE CO ST OF MANAGING PACKA GING MATERIALS; (V) BE EVALUATED BY AN IN DEPENDENT FINANCIAL AUDITOR, AS DESIGNATED BY THE DEPARTMENT , TO ENSURE THAT THE C OSTS OF IMPLEMENTING THE PLA N ARE COVERED ; AND (VI) MEET ANY OTHER REQUIR EMENT ESTABLISHED BY THE DEPARTMENT BY REGULAT ION. (2) THE REIMBURSEMENT RAT E ESTABLISHED UNDER PARAGRAPH (1)(II) OF THIS SUBSECTION S HALL BE: (I) BASED ON: WES MOORE, Governor Ch. 465 – 25 – 1. THE POPULATION SIZE O F A LOCAL JURISDICTI ON; 2. THE DISTANCE TO THE NEAR EST RECYCLING OR ORGANICS RELEVANT MATERIALS RECYCLING FACILITY OR ORGANICS RECYCLIN G FACILITY; 3. THE COMMODITY VALUE O F RECYCLED PACKAGING MATERIALS; AND 4. ANY SOCIOECONOMIC OR GEOGRAPHIC FACTOR , AS DETERMINED BY THE DEPARTMENT ; AND (II) DISCOUNTED EQUIVALENT TO THE ESTIMATED ANN UAL VOLUME OF PACKAGING MATERIALS SOLD IN TH E STATE TO BY A PERSON THAT IS EXEMPT FROM THE REQU IREMENTS OF THIS SUB TITLE UNDER § 9–2503(B) OF THIS SUBTITLE. (3) (I) BEFORE ESTABLISHING THE FEE STRUCTURE FO R PARTICIPATING PRODUC ERS UNDER PARAGRAPH (1)(III) OF THIS SUBSECTION , THE PRODUCER RESPONSIBIL ITY ORGANIZATION SHA LL: 1. PUBLISH A PROPOSED FE E ON ITS WEBSITE; AND 2. ALLOW 90 CALENDAR DAYS FOR PU BLIC COMMENT . (II) THE FEE STRUCTURE ESTABLIS HED UNDER PARAGRAPH (1)(III) OF THIS SUBSECTION S HALL BE VARIABLE BAS ED ON: (I) 1. COSTS ASSOCIATED WITH TRANSPORTING , COLLECTING, AND PROCESSING PACKA GING MATERIALS ; (II) 2. AN ECO–MODULATION OF FEES , INCLUDING ESTABLISHING : 1. A. A HIGHER FEE FOR PACKA GING MATERIALS WITH LOW RECYCLABILITY OR RECYCLED CONTENT ; AND 2. B. A DISCOUNTED FEE FOR P ACKAGING MATERIALS WITH HIGH RECYCLABIL ITY OR RECYCLED CONT ENT; AND (III) 3. ANY OTHER FACTOR , AS DETERMINED BY THE DEPARTMENT . Ch. 465 2023 LAWS OF MARYLAND – 26 – (4) (I) A PRODUCER RESPONSIBIL ITY ORGANIZATION SHA LL RETAIN ANY FEE COLLE CTED UNDER THIS SUBS ECTION IN ITS OWN AC COUNT. (II) THE DEPARTMENT MAY REQUES T AT ANY TIME AN AUD IT OF THE FINANCIAL RECORD S OF A PRODUCER RESP ONSIBILITY ORGANIZATION . (E) (F) THE FUNDING THAT WILL BE USED FOR IMPROVIN G REUSE, ORGANICS RECYCLING , AND RECYCLING SHALL INCLUDE INVESTMENT I N MARKET DEVELOPMENT AND EXIS TING AND FUTURE REUS E, ORGANICS RECYCLING , AND RECYCLING INFRASTRUC TURE, GIVING PRIORITY TO INVESTMENT IN EXISTI NG INFRASTRUCTURE , INCLUDING: (1) INSTALLING OR UPGRADI NG EQUIPMENT TO IMPR OVE THE SORTING OF PACKAGING MATERIALS AT EXISTIN G SORTING AND PROCES SING FACILITIES; (2) MITIGATING THE IMPACT S OF PACKAGING MATER IALS ON OTHER COMMODITI ES AT EXISTING SORTI NG AND PROCESSING FA CILITIES; AND (3) CAPITAL EXPENDITURES FOR NEW TECHNOLOGY , EQUIPMENT, AND FACILITIES, BASED ON THE RESULTS OF THE STATEWIDE REC YCLING NEEDS ASSESSMENT CONDUCTED UNDER § 9–1702.2 OF THIS TITLE. (F) (G) THE DEPARTMENT SHALL REVI EW: (1) THE PRODUCER RESPONSI BILITY PLAN REQUIRED UNDER SUBSECTION (A) OF THIS SECTION; AND (2) THE WORK PRODUCT OF T HE INDEPENDENT FINAN CIAL AUDITOR DESIGNATED BY THE DEPARTMENT TO EVALUAT E THE FINANCING COMP ONENT OF THE PRODUCE R RESPONSIBILITY PLA N UNDER SUBSECTION (D)(1)(V) (E)(1)(V) OF THIS SECTION. (G) (H) (1) WITHIN 120 DAYS AFTER RECEIVING A PROPOSED PRODUCER RESPONSIBIL ITY PLAN, THE DEPARTMENT SHALL APPR OVE, APPROVE WITH CONDITIONS , OR REJECT THE PLAN . (2) IN MAKING A DETERMINATION UNDER PARAGRAPH (1) OF THIS SUBSECTION, THE DEPARTMENT SHALL CONS IDER WHETHER : (I) THE PRODUCER RESPONSI BILITY PLAN COMPLIES WITH THE REQUIREMENTS OF THIS SECTION, INCLUDING WHETHER TH E FINANCING METHOD WILL COVER TH E COSTS OF IMPLEMENT ING THE PLAN; AND WES MOORE, Governor Ch. 465 – 27 – (II) THE PRODUCER RESPONSI BILITY ORGANIZATION ENGAGED SUFFICIENTLY WITH ST AKEHOLDERS , INCLUDING LOCAL GOVE RNMENTS, IN DEVELOPING THE PLAN . (3) NOT LATER THAN 60 DAYS AFTER THE DATE A PRODUCER RESPONSIBILITY PLAN IS INITIALLY APPROVED UNDER THIS SECTION, A PRODUCER RESPONSIBILITY ORGAN IZATION SHALL PAY TO THE DEPARTMENT : (I) THE DEPARTMENT ’S COST OF REVIEWING THE PLAN; AND (II) THE DEPARTMENT ’S ESTIMATED COSTS OF ADMINISTERING , OVERSEEING, AND ENFORCING THE PL AN BETWEEN THE INITIAL DATE OF APPROVAL AND THE DATE OF THE INIT IAL ANNUAL REPORT RE QUIRED UNDER § 9–2507 OF THIS SUBTITLE. (H) (I) WITHIN 6 MONTHS AFTER THE DAT E A PRODUCER RESPONSIBILITY PLAN IS APPROVED UNDER TH IS SECTION, A PRODUCER RESPONSIBILITY ORGANIZATION SHALL I MPLEMENT THE PLAN . (I) (J) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION AND SUBJECT TO PARAG RAPH (3) OF THIS SUBSECTION , AN APPROVED PRODUCER RESPONSIBILITY PLAN SHALL EXPIRE AFTER 5 YEARS. (2) A PRODUCER RESPONSIBIL ITY PLAN MAY CONTINUE AFTER 5 YEARS IF IT IS RENEG OTIATED, RENEWED, OR AMENDED AND APPRO VED BY THE DEPARTMENT IN ACCORDA NCE WITH THIS SUBTIT LE. (3) THE DEPARTMENT MAY RESCIN D APPROVAL OF A PROD UCER RESPONSIBILITY PLAN AT ANY TIME FOR GOOD CAUSE. (4) IF THE DEPARTMENT RESCINDS A N APPROVAL OF A PROD UCER RESPONSIBILITY PLAN UNDER PARAGRAPH (3) OF THIS SUBSECTION , THE PRODUCER, OR IF APPLICABLE , THE PRODUCER RESPONS IBILITY ORGANIZATION MAY AMEND THE PLAN A ND SUBMIT IT TO THE DEPARTMENT FOR APPROV AL IN ACCORDANCE WITH THIS SU BTITLE. (5) IF, BASED ON THE ANNUAL REPORT SUBMITTED UND ER § 9–2507 OF THIS SUBTITLE , THE PERFORMANCE GOAL S ESTABLISHED UNDER SUBSECTION (B)(3) (C)(3) OF THIS SECTION HAVE NOT BEEN ACHIEVED , THE DEPARTMENT MAY : (I) REQUIRE THAT A PRODUCER RESPONSIB ILITY ORGANIZATION AMEND T HE PRODUCER RESPONSI BILITY PLAN; AND Ch. 465 2023 LAWS OF MARYLAND – 28 – (II) IMPOSE AN ADMINISTRAT IVE PENALTY ON A PRO DUCER RESPONSIBILITY ORGAN IZATION IN ACCORDANC E WITH § 9–2510(C) OF THIS SUBTITLE. (6) IF THE DEPARTMENT REQUIRES A PRODUCER RESPONSIBILITY ORGANIZATION TO AMEN D THE PRODUCER RESPO NSIBILITY PLAN UNDER PARAGRAPH (5) OF THIS SUBSECTION , THE PRODUCER RESPONS IBILITY ORGANIZATION MUST CO VER THE COST OF THE DEPARTMENT ’S REVIEW AND SUPPLEMENTAL WORK ON THE PLAN. 9–2505. 9–2502. ON OR BEFORE OCTOBER 1, 2023, THE DEPARTMENT SHALL APPR OVE A SINGLE PRODUCER RESP ONSIBILITY ORGANIZAT ION TO REPRESENT THE INTERESTS OF PRODUCERS UNDER T HIS SUBTITLE. 9–2503. (A) THERE IS A PRODUCER R ESPONSIBILITY PLAN ADVISORY COUNCIL . (B) THE PURPOSE OF THE AD VISORY COUNCIL IS TO PROVIDE ADVICE TO THE DEPARTMENT AND PRODUC ER RESPONSIBILITY OR GANIZATIONS FOR DRAFTING, AMENDING, AND IMPLEMENTING PRO DUCER RESPONSIBILITY PLANS AND MAKE RECOMMENDAT IONS REGARDING ESTAB LISHING AND IMPLEMEN TING A PRODUCER RESPONSIBILI TY PROGRAM IN THE STATE FOR PACKAGING M ATERIALS. (C) (1) THE ADVISORY COUNCIL SHALL CONSIST OF UP TO 21 MEMBERS, APPOINTED BY THE SECRETARY SECRETARY, REPRESENTING A BROAD RANGE OF INTERESTED STAKEHOLD ERS APPOINTED BY THE SECRETARY, INCLUDING: (I) REPRESENTATIVES FROM THE FOLLOWING INDUST RIES OR ENTITIES IN THE STATE: 1. LOCAL GOVERNMENT AGEN CIES RESPONSIBLE FOR RECYCLING PROGRAMS ; 2. RECYCLABLES AND COMPO STABLE MATERIALS COLLECTORS FROM BOTH THE PUBLIC AND PRIVATE SECT ORS; 3. RECYCLING PROCESSORS FROM BOTH THE PUBLIC AND PRIVATE SECTORS ; WES MOORE, Governor Ch. 465 – 29 – 4. ORGANICS RECYCLING PR OCESSORS; 5. THE PRODUCERS FROM THE CONSUMER GOODS SECTOR; 6. RETAIL AND SMALL BUSI NESSES; AND 7. MATERIAL–ORIENTED TRADE GROUP S; (II) A REPRESENTATIVE FROM EACH THE PRODUCER RESPONSIBILITY ORGAN IZATION APPROVED BY THE DEPARTMENT UNDER § 9–2502 OF THIS SUBTITLE; (III) REPRESENTATIVES OF AT LEAST TWO NONPROFIT ORGANIZATIONS IN THE STATE WITH MISSIONS R ELATED TO REDUCING W ASTE; (IV) AT LEAST ONE REPRESEN TATIVE OF AN ENVIRON MENTAL ADVOCACY ORGANIZATIO N; (V) AT LEAST ONE REPRESEN TATIVE OF AN ENVIRONMENTAL JUSTICE ADVOCACY ORGANIZATIO N THAT ADVOCATES ON BE HALF OF OVERBURDENED OR UNDE RSERVED COMMUNITIES , AS DEFINED IN § 1–701 OF THIS ARTICLE; AND (VI) AT LEAST TWO MEMBERS OF THE PUBLIC WHO RE SIDE IN THE STATE. (2) IN APPOINTING MEMBERS TO THE ADVISORY COUN CIL, THE SECRETARY SHALL , TO THE EXTENT PRACTI CABLE, ENSURE THAT THE MEMBERSHIP OF THE AD VISORY COUNCIL REPRE SENTS: (I) ALL GEOGRAPHIC REGION S OF THE STATE; (II) LARGE AND SMALL COUNT IES AND MUNICIPALITI ES; AND (III) THE VARIABILITY IN HO W WASTE AND RECYCLAB LE AND COMPOSTABLE MATERIAL S ARE COLLECTED AND PROCESSED IN THE STATE. (3) A REPRESENTATIVE F ROM A PRODUCER OR A PRODUCER RESPONSIBILITY ORGAN IZATION MAY NOT SERV E AS A VOTING MEMBER OR AS COCHAIR OF THE ADVIS ORY COUNCIL. Ch. 465 2023 LAWS OF MARYLAND – 30 – (4) (I) THE TERM OF A MEMBER IS 4 YEARS AND A MEMBER M AY BE REAPPOINTED . (II) THE TERMS OF MEMBERS ARE STAGGERED AS REQUIRED BY THE TERMS PROVIDED F OR MEMBERS OF THE AD VISORY COUNCIL ON OCTOBER 1, 2023. (III) AT THE END OF A TERM , A MEMBER CONTINUES T O SERVE UNTIL A SUCCESSOR IS APPOINTED AND QUALIF IES. (IV) A MEMBER WHO IS APPOIN TED AFTER A TERM HAS BEGUN SERVES ONLY FOR THE REST OF THE TERM AND UNTIL A SUCCESSOR IS APPOINTED AND QUALIFIES. (D) FROM AMONG THE ADVISO RY COUNCIL MEMBERS , THE SECRETARY SHALL DESIGNATE TWO REPRESENTATIVES TO S ERVE AS COCHAIRS . (E) THE DEPARTMENT SHALL PROV IDE STAFF FOR THE ADVISORY COUNCIL . (F) A MEMBER OF THE ADVISO RY COUNCIL: (1) MAY NOT RECEIVE COMPE NSATION AS A MEMBER OF THE ADVISORY COUNCIL ; BUT (2) IS ENTITLED TO REIMBU RSEMENT FOR EXPENSES UNDER THE STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET. (F) (G) THE ADVISORY COUNCIL SHALL MEET AT LEAST QUARTERLY THE REQUEST OF THE SECRETARY. (G) (H) (1) THE ADVISORY COUNCIL SHALL: EVALUATE AND MAKE RECOMMENDATIONS , INCLUDING LEGISLATIV E RECOMMENDATIONS , ON HOW TO EFFECTIVELY ESTABLIS H AND IMPLEMENT A PRODUCER RESPONSIBILITY PROGR AM IN THE STATE FOR PACKAGING M ATERIALS. (2) IN MAKING RECOMMENDAT IONS UNDER PARAGRAPH (1) OF THIS SUBSECTION, THE ADVISORY COUNCIL SHALL INCLUDE RECOMM ENDATIONS REGARDING THE RESPON SIBILITIES OF PRODUC ERS UNDER A PRODUCER RESPONSIBILITY PROGR AM. (I) ON OR BEFORE DECEMBER 1, 2024, THE ADVISORY COUNCIL SHALL REPORT ITS FINDINGS AND RECOMMENDATIONS TO THE GOVERNOR AND , IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, THE SENATE WES MOORE, Governor Ch. 465 – 31 – COMMITTEE ON EDUCATION, ENERGY, AND THE ENVIRONMENT AND THE HOUSE ENVIRONMENT AND TRANSPORTATION COMMITTEE. (1) ON REQUEST BY A PRODU CER OR PRODUCER RESP ONSIBILITY ORGANIZATION , PROVIDE ADVICE REGAR DING THE DRAFTING OR AMENDING OF A PRODUCER RESPONSIBIL ITY PLAN REQUIRED UN DER § 9–2504 OF THIS SUBTITLE; (2) RECEIVE AND REVIEW TH E PRODUCER RESPONSIB ILITY PLANS SUBMITTED IN ACCORDA NCE WITH § 9–2504 OF THIS SUBTITLE; (3) RECEIVE AND REVIEW AN NUAL REPORTS SUBMITT ED IN ACCORDANCE WITH § 9–2507 OF THIS SUBTITLE; (4) MAKE RECOMMENDATIONS TO T HE DEPARTMENT REGARDING PRODUCER RESPONSIBIL ITY PLAN APPROVAL ; (5) MAKE RECOMMENDATIONS TO THE DEPARTMENT AND PRODUCER RESPONSIBIL ITY ORGANIZATIONS RE GARDING PRODUCER RESPONSIBILITY PLAN IMPLEMENTATION ; AND (6) PROVIDE WRITTEN RECOMMENDATIONS REGA RDING THE PRODUCER RESPONSIBIL ITY PLAN, INCLUDING ANY UPDATE OR REVISION TO AN APPROVED PLAN , TO A PRODUCER RESPON SIBILITY ORGANIZATIO N BEFORE THE PRODUCER RESPONSIBIL ITY ORGANIZATION SUB MITS THE PLAN TO THE DEPARTMENT . 9–2506. (A) IN ACCORDANCE WITH TH E REQUIREMENTS OF A PRODUCER RESPONSIBILITY ORGAN IZATION, AS ESTABLISHED IN AN APPROVED PRODUCER RESPONSIBILITY PLAN ON FILE WITH THE DEPARTMENT , AND ANY OTHER REQUIREMENT ADOPTED BY THE DEPARTMENT , A LOCAL GOVERNMENT M AY REQUEST REIMBU RSEMENT FROM A PRODU CER RESPONSIBILITY O RGANIZATION FOR COSTS ASSOCIATED WITH COLLECTING , TRANSPORTING , AND PROCESSING PACKAGING MATERIALS THAT ARE IDENTIFIED UNDER THE PLAN , INCLUDING COSTS ASSOCIATED WITH RECY CLING SERVICES FOR P UBLIC PLACES AND PUB LIC HOUSING. (B) (1) IF MULTIPLE PRODUCER RESPONSIBILITY ORGAN IZATIONS REGISTER APPROVED PR ODUCER RESPONSIBILIT Y PLANS WITH THE DEPARTMENT IN ACCORDANCE WITH T HIS SUBTITLE , THE PRODUCER RESPONS IBILITY ORGANIZATIONS SHALL COORDINATE REIMBURSE MENT REQUESTED UN DER THIS SECTION. Ch. 465 2023 LAWS OF MARYLAND – 32 – (2) MULTIPLE PRODUCER RES PONSIBILITY ORGANIZA TIONS MAY ESTABLISH A THIRD –PARTY ENTITY TO COOR DINATE REIMBURSEMENT IN ACCORDANCE WITH THIS SUBSECTION. (C) THIS SECTION DOES NOT AUTHORIZE A LOCAL GO VERNMENT TO REQUEST REIMBURSEMEN T FROM A PRODUCER RESPONS IBILITY ORGANIZATION FOR COSTS ASSOCIATED WITH COMPOSTING MATE RIALS THAT ARE NOT P ACKAGING MATERIALS, INCLUDING FOOD WASTE AND OTHER ORGANIC MA TERIALS. 9–2507. (A) BEGINNING MARCH 1, 2027, EACH PRODUCER RESPON SIBILITY ORGANIZATION TH AT HAS AN APPROVED P RODUCER RESPONSIBILI TY PLAN ON FILE WITH THE DEPARTMENT SHALL REPO RT ANNUALLY TO THE DEPARTMENT ON THE PROGRESS TOWARD MEET ING PLAN REQUIREMENT S AND GOALS FOR THE IMMEDIATELY PRECEDIN G CALENDAR YEAR . (B) THE REPORT REQUIRED U NDER SUBSECTION (A) OF THIS SECTION SHALL INCLUDE : (1) A DETAILED DESCRIPTION OF THE REIMBURSEMENT METHODS USED FOR COLLECTING , TRANSPORTING , AND PROCESSING PACKA GING MATERIALS; (2) (I) THE STATUS ON ACHIEVI NG THE PERFORMANCE G OALS ESTABLISHED UNDER § 9–2504(B)(3) § 9–2504(C)(3) OF THIS SUBTITLE; AND (II) IF THE GOALS HAVE NOT BEEN ACHIEVED , A DESCRIPTION OF THE ACTIONS PROPO SED TO ACHIEVE THE G OALS; (3) THE AMOUNT OF EACH PA CKAGING MATERIAL TYP E COLLECTED IN THE STATE, INCLUDING THE METHOD OF DISPOSITION OF EACH PACKAGING MATERIAL TYPE ; (4) (I) THE NUMBER OF BEVERAG E CONTAINERS SOLD IN THE STATE AND THE NUMBER COLLECTED, BY MATERIAL TYPE ; (II) THE OVERALL REDEMPTIO N RATE AND EFFECTIVE RATE OF RECYCLING OF BEVERAG E CONTAINERS BY MATE RIAL TYPE, AFTER SUBTRACTING CONTAMINATION RATES , AND BY NUMBER OF UNI TS AND WEIGHT ; AND WES MOORE, Governor Ch. 465 – 33 – (III) 1. A DESCRIPTION OF THE L OCATION OF COLLECTIO N FACILITIES OR POINTS AND SORTING AND PROC ESSING FACILITIES FO R BEVERAGE CONTAINERS; 2. A DESCRIPTION OF ANY IMPROVEMENTS MADE IN THE REPORTING YEAR TO IN CREASE THE EASE AND CONVENIENCE FOR CONS UMERS TO RETURN BEVERAGE CONT AINERS; 3. A DESCRIPTION OF UNDER SERVED AREAS AND ACTIONS THAT WILL BE TAKEN BY THE PRODUCE R RESPONSIBILITY ORG ANIZATION TO IMPROVE THE AVAILABILITY OF COLL ECTION FACILITIES OR POINTS IN UNDERSERVED AREAS ; AND 4. ANY OTHER INFORMATION ON BEVERAGE CONTAINERS REQUIRED BY THE DEPARTMENT ; (5) (4) THE TOTAL COST OF IMP LEMENTING THE PLAN , AS DETERMINED BY AN IND EPENDENT FINANCIAL A UDITOR INCLUDING : (I) A COPY OF THE WORK PRO DUCT OF THE INDEPEND ENT FINANCIAL AUDITOR ; AND (II) FINANCIAL STATEMENTS DETAILING ALL PAYMEN TS RECEIVED AND ISSUED BY THE PRODUCERS COV ERED UNDER THE APPRO VED PLAN; (6) (5) SAMPLES OF ALL EDUCAT IONAL MATERIALS PROV IDED TO CONSUMERS OR OTHER E NTITIES; (7) (6) A DETAILED DESCRIPTION OF THE ACTIONS TAKEN AND AN EVALUATION OF THE ME THODS USED TO DISSEM INATE EDUCATIONAL MA TERIALS, INCLUDING RECOMMENDA TIONS, IF ANY, FOR HOW THE EDUCATIO NAL COMPONENT OF THE PLAN CAN BE I MPROVED; (8) (7) A DETAILED DESCRIPTION OF INVESTMENTS MADE IN MARKET DEVELOPMENT A ND FOR IMPROVING REU SE, ORGANICS RECYCLING , AND RECYCLING INFRASTRUC TURE; (9) (8) PROOF OF A THIRD –PARTY AUDIT OF: (I) THE REDUCTION IN PACK AGING REPORTED ; (II) THE DATA USED TO DETE RMINE THE STATUS OF ACHIEVING PERFORMANCE GOALS ; Ch. 465 2023 LAWS OF MARYLAND – 34 – (III) THE AMOUNT OF EACH PA CKAGING MATERIAL TYP E COLLECTED IN THE STATE; AND (IV) THE NUMBER OF BEVERAG E CONTAINERS SOLD , COLLECTED, AND REDEEMED IN THE STATE; AND (V) THE OVERALL REDEMPTIO N RATE AND RECYCLING RATE OF BEVERAGE CONTAINERS IN THE STATE; AND (10) (9) ANY OTHER INFORMATION AS REQUIRED BY THE DEPARTMENT . (C) WHEN PROVIDING THE DEPARTMENT WITH THE ANNUAL REPO RT REQUIRED UNDER THIS SECTION, A PRODUCER RESPONSIB ILITY ORGANIZATION SHALL PAY TO THE DEPARTMENT THE DEPARTMENT ’S ESTIMATED COSTS OF ADMINISTERING , OVERSEEING, AND ENFORCING THE PL AN FOR THE 1 YEAR IMMEDIATELY FOLLOWIN G THE ANNUAL REP ORT. (D) FINANCIAL, PRODUCTION , OR SALES DATA REPORT ED TO THE DEPARTMENT BY A PRODU CER RESPONSIBILITY O RGANIZATION SHALL BE KEPT CONFIDENTIAL BY THE DEPARTMENT AND MAY NO T BE SUBJECT TO PUBL IC INSPECTION. (E) SUBJECT TO SUBSECTION (D) OF THIS SECTION, THE REPORT SHALL BE POSTED ON THE WEBSIT E OF THE DEPARTMENT AND THE PR ODUCER RESPONSIBILITY ORGAN IZATION. 9–2508. ANY PERSON PARTICIPAT ING IN A PRODUCER RE SPONSIBILITY PLAN IN COMPLIANCE WITH THIS SUBTITLE IS IMMUNE F ROM LIABILITY UNDER STATE LAW RELATING TO ANTITRUST AND RESTRAINT OF TRADE F OR ANY COOPERATED ACTIVITIES ARISING O UT OF THE RECYCLING , REUSE, AND DISPOSAL OF PACK AGING MATERIALS. 9–2509. THE DEPARTMENT SHALL ADOP T REGULATIONS TO CAR RY OUT THIS SUBTITLE. 9–2510. WES MOORE, Governor Ch. 465 – 35 – (A) EXCEPT AS OTHERWISE PROVIDED UNDER SUBSE CTIONS (B) AND (C) OF THIS SECTION, THE PROVISIONS OF §§ 9–334 THROUGH 9–344 OF THIS TITLE APPLY TO ENFORCE VIOLATION S OF: (1) THIS SUBTITLE; (2) ANY REGULATION ADOPTE D UNDER THIS SUBTITL E; OR (3) ANY ORDER ISSUED UNDE R THIS SUBTITLE. (B) (1) A PRODUCER OR PRODUCER RESPONSIBILITY ORGAN IZATION THAT VIOLATES THIS S UBTITLE IS SUBJECT T O: (I) FOR A FIRST VIOLATION , A CIVIL AN ADMINISTRATIVE PENALTY OF $5,000; (II) FOR A SECOND VIOLATIO N, A CIVIL AN ADMINISTRATIVE PENALTY OF $10,000; AND (III) FOR A THIRD AND SUBSE QUENT VIOLATION , A CIVIL PENALTY OF $20,000. (2) A PENALTY MAY NOT BE I MPOSED ON A PRODUCER UNDER THIS SECTION UNLESS : (I) THE DEPARTMENT FIRST ISSU ES A WRITTEN NOTICE OF VIOLATION TO THE PRO DUCER; AND (II) THE VIOLATION IS NOT CORRECTED WITHIN 60 DAYS OF RECEIPT OF THE WRITT EN NOTICE. (3) AFTER THE 60–DAY PERIOD SPECIFIED UNDER PARAGRAPH (2) OF THIS SUBSECTION , EACH DAY THAT A VIOL ATION CONTINUES IS A SEPARATE VIOLATION. (C) IF, BASED ON THE A NNUAL REPORT SUBMITT ED UNDER § 9–2507 OF THIS SUBTITLE, THE PERFORMANCE GOAL S ESTABLISHED UNDER § 9–2504(B)(3) § 9–2504(C)(3) OF THIS SUBTITLE HAV E NOT BEEN ACHIEVED , THE DEPARTMENT MAY IMPOSE AN ADMINISTRA TIVE PENALTY, NOT TO EXCEED $5,000 $250,000, ON THE PRODUCER RESPONSIBIL ITY ORGANIZATION . (D) ANY PENALTY COLLECTED BY THE DEPARTMENT UNDER THIS SECTION SHALL BE PAID INTO T HE STATE RECYCLING TRUST FUND ESTABLISHED UNDE R § 9–1707 OF THIS TITLE. Ch. 465 2023 LAWS OF MARYLAND – 36 – SECTION 2. AND BE IT FURTHER ENACTED, That, on or before December 1, 2024, each local government in the State shall file a feasibility plan with the Department of the Environment that prioritizes the sale of recycled packaging materials back to manufacturers that have a manufacturing facility in the State. SECTION 3. AND BE IT FURTHER ENACTED, That the terms of the initial members of the producer responsibility plan advisory council shall expire as follows: (1) five members in 2024; (2) five members in 2025; (3) five members in 2026; and (4) the remaining members in 2027. SECTION 2. AND BE IT FURTHER ENACTED, That: (a) In this section, “advisory council” and “producer” have the meanings stated in § 9–2501 of the Environment Article, as enacted under Section 1 of this Act. (b) (1) The Office of Recycling in the Department of the Environment shall procure a statewide recycling needs assessment in accordance with this section. (2) The Office shall hire an independent consultant to conduct a statewide recycling needs assessment that includes: (i) an analysis of the State’s current solid waste streams, including: 1. solid waste generated in the State by local jurisdiction, type, and material; 2. disposal methods by material type and amount; and 3. associated costs and revenues for solid waste disposal programs; (ii) an analysis of the State’s current recycling streams, including: 1. recyclable materials processed by local jurisdiction, type, and amount; 2. processing methods by material type and amount; WES MOORE, Governor Ch. 465 – 37 – 3. associated costs and revenues for recycling programs, collection, and tipping fees; and 4. an estimate of the amount of recyclable materials that are not currently being recycled; (iii) an evaluation of the current infrastructure and capacity related to, need for, and associated costs of: 1. recycling access and availability; 2. collecting and hauling recyclable or compostable materials in the State; 3. processing recyclable or compostable materials in the State; 4. taking advantage of favorable market conditions or other opportunities for increasing recycling or organics recycling in the State; 5. in coordination with local governments, consumer education regarding recycling, organics recycling, and contamination reduction; 6. reuse infrastructure; and 7. organics recycling infrastructure; (iv) an evaluation of commingled recycling processing facility worker conditions, wages, and benefits; (v) an evaluation of opportunities in the recycling system for women and minority individuals; (vi) an evaluation of local government requirements related to multifamily and commercial recycling services and their implementation; (vii) the sufficiency of recycling education programs relative to desired equity outcomes; (viii) an evaluation of the economic opportunities in the State’s recycling system, including: 1. State and local revenue that may be considered lost because recyclable materials are not being recycled; Ch. 465 2023 LAWS OF MARYLAND – 38 – 2. current jobs associated with the solid waste and recycling industries; 3. opportunities to increase employment in the recycling industry by material type; 4. business opportunities associated with recycling; 5. barriers to increasing the use of recyclable materials as feedstock for principal processors and manufacturers and means of eliminating those barriers; and 6. recommendations for incentives to stimulate job growth and business opportunities in the State’s recycling industry; (ix) recommendations for improving equity and equitable outcomes for underserved populations in the State’s recycling system; (x) an analysis of the costs and benefits of implementing an extended producer responsibility program, including to: 1. local governments; 2. waste producers; 3. residents; and 4. waste management companies; (xi) an analysis of the potential environmental impact of an extended producer responsibility program, including through: 1. increased recycling; 2. resource recovery; 3. waste reduction; and 4. reduced environmental damage; and (xii) recommendations on the best practices to follow from successful extended producer responsibility programs in other states and countries. (c) On or before July 30, 2024, the Office shall report on the results of the assessment conducted under this section to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly. WES MOORE, Governor Ch. 465 – 39 – (d) In conducting the assessment required under this section, the independent consultant shall consult with the advisory council, appropriate local governmental entities, and regional solid waste organizations and producers in the State. SECTION 2. 4. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect October July 1, 2023. Approved by the Governor, May 8, 2023.