EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LAW .
[Brackets] indicate matter deleted from existing law.
*hb0735*
HOUSE BILL 735
M3 4lr1869
HB 1089/23 – ENT & ECM CF SB 642
By: Delegates Terrasa, Edelson, Boafo, Charkoudian, Cullison, Embry, Fair,
Feldmark, Foley, Fraser–Hidalgo, Healey, Holmes, A. Johnson, Kaufman,
Lehman, Love, Pena–Melnyk, Qi, Ruth, Solomon, Stein, Stewart, Taveras,
Taylor, Valderrama, Williams, Wu, and Ziegler
Introduced and read first time: January 29, 2024
Assigned to: Environment and Transportation and Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Maryland Beverage Container Recycling Refund and Litter Reduction Program 2
FOR the purpose of establishing the Maryland Beverage Container Recycling Refund and 3
Litter Reduction Program to increase the reuse and recycling of beverage containers 4
and reduce the litter, pollution, and costs associated with beverage containers; 5
altering the duties of the Office of Recycling; altering the contents and use of the 6
State Recycling Trust Fund; requiring the Comptroller to establish a separate 7
account within the Fund; requiring that each redeemable beverage container sold in 8
the State depict certain information beginning on a certain date; requiring the 9
wholesale price and retail price of a full redeemable beverage container to include 10
the refund value of the container, subject to a certain exception, beginning on a 11
certain date; requiring a retailer to include certain information on a customer’s sales 12
receipt; establishing a framework for the redemption of redeemable beverage 13
containers sold in the State; requiring a producer to provide a certified copy of a 14
certain contractual agreement to the relevant beverage container stewardship 15
organization; prohibiting a producer from selling, offering for sale, or distributing in 16
or importing into the State a redeemable beverage container unless the producer is 17
registered with the Department of the Environment, pays a certain fee, and is part 18
of a certain beverage container stewardship organization; establishing a framework 19
for a beverage container stewardship organization to represent producers in fulfilling 20
the requirements of this Act; requiring each beverage container stewardship 21
organization to submit a certain beverage container stewardship plan to the 22
Department for approval; requiring a beverage container stewardship organization 23
to implement and administer a beverage container stewardship plan within a certain 24
time after the plan is approved; requiring the Department to establish a process for 25
a county or municipal corporation to create a redemption facility; authorizing 26
redeemable beverage containers redeemed at a redemption facility managed by a 27
county or municipal corporation to be credited toward meeting certain recycling 28 2 HOUSE BILL 735
rates; establishing the Beverage Container Recycling Refund Grant Program to 1
increase the reuse and recycling of beverage containers in the State, increase the 2
availability of public water fountains and refill stations in the State, and reduce the 3
volume of litter from beverage containers in the State; establishing the Redeemable 4
Beverage Container Recycling Refund Advisory Council to review certain reports, 5
make certain recommendations, and advise the Department on certain matters; 6
providing immunity from liability to a certain producer or beverage container 7
stewardship organization under certain circumstances; and generally relating to the 8
Maryland Beverage Container Recycling Refund and Litter Reduction Program. 9
BY repealing and reenacting, without amendments, 10
Article – Environment 11
Section 9–1701(a) and (q) and 9–1702(a) 12
Annotated Code of Maryland 13
(2014 Replacement Volume and 2023 Supplement) 14
BY repealing and reenacting, with amendments, 15
Article – Environment 16
Section 9–1702(d) and 9–1707(f) 17
Annotated Code of Maryland 18
(2014 Replacement Volume and 2023 Supplement) 19
BY adding to 20
Article – Environment 21
Section 9–1733 through 9–1751 to be under the new part “Part V. Maryland 22
Beverage Container Recycling Refund and Litter Reduction Program” 23
Annotated Code of Maryland 24
(2014 Replacement Volume and 2023 Supplement) 25
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 26
That the Laws of Maryland read as follows: 27
Article – Environment 28
9–1701. 29
(a) In this subtitle the following words have the meanings indicated. 30
(q) “Recycling” means any process in which recyclable materials are collected, 31
separated, or processed and returned to the marketplace in the form of raw materials or 32
products. 33
9–1702. 34
(a) There is an Office of Recycling created within the Department. 35
(d) The Office shall: 36 HOUSE BILL 735 3
(1) Assist the counties in developing an acceptable recycling plan required 1
under § 9–1703 of this subtitle and § 9–505 of this title, including technical assistance to 2
the local governments; 3
(2) Coordinate the efforts of the State to facilitate the implementation of 4
the recycling goals at the county level; 5
(3) Review all recycling plans submitted as part of a county plan as 6
required under § 9–505 of this title and advise the Secretary on the adequacy of the 7
recycling plan; 8
(4) Administer the Statewide Electronics Recycling Program under Part IV 9
of this subtitle; [and] 10
(5) Promote the development of markets for recycled materials and 11
recycled products in the State in accordance with § 9–1702.1 of this subtitle; AND 12
(6) ADMINISTER THE MARYLAND BEVERAGE CONTAINER 13
RECYCLING REFUND AND LITTER REDUCTION PROGRAM ESTABLISHED U NDER § 14
9–1735 OF THIS SUBTITLE . 15
9–1707. 16
(f) (1) There is a State Recycling Trust Fund. 17
(2) The Fund shall consist of: 18
(i) The newsprint recycling incentive fee; 19
(ii) The telephone directory recycling incentive fee collected under § 20
9–1709 of this subtitle; 21
(iii) The covered electronic device manufacturer registration fee 22
collected under § 9–1728 of this subtitle; 23
(IV) UNCLAIMED DEPOSITS , FEES, AND PENALTIES 24
TRANSFERRED TO THE FUND UNDER §§ 9–1739, 9–1740, AND 9–1750 OF THIS 25
SUBTITLE; 26
[(iv)] (V) All fines and penalties collected under this subtitle; 27
[(v)] (VI) Money appropriated in the State budget to the Fund; and 28
[(vi)] (VII) Any other money from any other source accepted for the 29
benefit of the Fund. 30 4 HOUSE BILL 735
(3) The Secretary shall administer the Fund. 1
(4) The Treasurer shall hold the Fund separately and the Comptroller shall 2
account for the Fund. 3
(5) (I) [At] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 4
PARAGRAPH , AT the end of each fiscal year, any unspent or unencumbered balance in the 5
Fund that exceeds $2,000,000 shall revert to the General Fund of the State in accordance 6
with § 7–302 of the State Finance and Procurement Article. 7
(II) THE FUNDS TRANSFERRED TO THE FUND UNDER 8
PARAGRAPH (2)(IV) OF THIS SUBSECTION A RE NOT SUBJECT TO § 7–302 OF THE 9
STATE FINANCE AND PROCUREMENT ARTICLE AND MAY NOT R EVERT TO THE 10
GENERAL FUND OF THE STATE. 11
(6) In accordance with the State budget, the Fund shall be used only: 12
(i) To provide grants to the counties to be used by the counties to 13
develop and implement local recycling plans; 14
(ii) To provide grants to counties that have addressed methods for 15
the separate collection and recycling of covered electronic devices in accordance with § 16
9–1703(c)(1) of this subtitle; 17
(iii) To provide grants to municipalities to be used by the 18
municipalities to implement local covered electronic device recycling programs; [and] 19
(iv) To carry out the purposes of the land management 20
administration; AND 21
(V) TO COVER THE COSTS OF ADMINISTERING , MONITORING , 22
EVALUATING, AND ENFORCING THE MARYLAND BEVERAGE CONTAINER 23
RECYCLING REFUND AND LITTER REDUCTION PROGRAM ESTABLISHED U NDER § 24
9–1735 OF THIS SUBTITLE . 25
(7) (I) THE COMPTROLLER SHALL EST ABLISH A SEPARATE 26
ACCOUNT WITHIN THE FUND. 27
(II) THE ACCOUNT SHALL CON SIST OF THE FUNDS SP ECIFIED IN 28
PARAGRAPH (2)(IV) OF THIS SUBSECTION . 29
(III) THE ACCOUNT MAY BE US ED ONLY TO: 30
HOUSE BILL 735 5
1. COVER THE COSTS OF AD MINISTERING, MONITORING , 1
EVALUATING, AND ENFORCING THE MARYLAND BEVERAGE CONTAINER 2
RECYCLING REFUND AND LITTER REDUCTION PROGRAM ESTABLISHED U NDER § 3
9–1735 OF THIS SUBTITLE ; 4
2. FUND THE BEVERAGE CONTAINER RECYCLING 5
REFUND GRANT PROGRAM ESTABLISHED U NDER § 9–1746 OF THIS SUBTITLE; 6
3. COMPENSATE LOCAL GOVE RNMENTS IN 7
ACCORDANCE WITH § 9–1744 OF THIS SUBTITLE; AND 8
4. MEET OR EXCEED THE PE RFORMANCE TARGETS 9
ESTABLISHED UNDER § 9–1736 OF THIS SUBTITLE. 10
[(7)] (8) (i) The Treasurer shall invest the money in the Fund in the 11
same manner as other State money may be invested. 12
(ii) Any investment earnings of the Fund shall be credited to the 13
General Fund of the State. 14
9–1731. RESERVED. 15
9–1732. RESERVED. 16
PART V. MARYLAND BEVERAGE CONTAINER RECYCLING REFUND AND LITTER 17
REDUCTION PROGRAM. 18
9–1733. 19
(A) IN THIS PART THE FOLL OWING WORDS HAVE THE MEANINGS 20
INDICATED. 21
(B) (1) “ACCOUNT–BASED BULK PROCESSIN G PROGRAM ” MEANS A 22
PROGRAM THAT : 23
(I) UTILIZES A SYSTEM OF CUSTOMER ACCOUNTS AN D A 24
MECHANISM TO ASSOCIA TE REDEEMED REDEEMAB LE BEVERAGE CONTAINE RS WITH 25
THE APPROPRIATE CUST OMER ACCOUNT ; 26
(II) CONSOLIDATES THE REDE EMED REDEEMABLE BEVE RAGE 27
CONTAINERS FOR BULK SORTING WHILE COLLEC TING DATA ABOUT THE 28
CONTAINERS; 29
6 HOUSE BILL 735
(III) FULLY PREPARES REDEEM ED REDEEMABLE BEVERA GE 1
CONTAINERS FOR SALE TO RECYCLERS ; AND 2
(IV) COLLECTS DATA TO SUPP ORT AN ACCOUNTING OF THE 3
REDEEMABLE BEVERAGE CONTAINERS, INCLUDING THE DEPOSI TS, FEES, AND 4
POUNDS OF MATERIAL P RODUCED THAT ARE ASS OCIATED WITH THE RED EEMABLE 5
BEVERAGE CONTAINERS . 6
(2) “ACCOUNT–BASED BULK PROCESSIN G PROGRAM ” INCLUDES A 7
BAG DROP PROGRAM IF THE BAG DROP PROGRAM I S A COMPONENT OF THE 8
ACCOUNT–BASED BULK PROCESSIN G PROGRAM. 9
(C) “ADVISORY COUNCIL” MEANS THE REDEEMABLE BEVERAGE 10
CONTAINER RECYCLING REFUND ADVISORY COUNCIL ESTABLISHED U NDER § 11
9–1748 OF THIS SUBTITLE . 12
(D) “BAG DROP PROGRAM ” MEANS A PROGRAM THAT ALLOWS A CUSTOMER 13
TO: 14
(1) DROP OFF EMPTY REDEEMABLE BEVERAGE CONTAINERS IN A BAG 15
OR OTHER RECEPTACLE AT ONE OR MORE LOCAT IONS FOR A REFUND ; AND 16
(2) HAVE THE CORRESPONDIN G REFUND PLACED INTO AN ACCOUNT 17
HELD FOR THE BENEFIT OF THE C USTOMER IN A MANNER THAT ALLOWS THE 18
CUSTOMER TO OBTAIN T HE REFUND OR REFUND RECEIPT WITHIN A SPE CIFIED 19
NUMBER OF DAYS AFTER THE DROP –OFF. 20
(E) (1) “BEVERAGE” MEANS ANY DRINKABLE LIQUID INTENDED FOR 21
HUMAN ORAL CONSUMPTI ON. 22
(2) “BEVERAGE” DOES NOT INCLUDE : 23
(I) DRUGS REGULATED UNDER THE FEDERAL FOOD, DRUG, 24
AND COSMETIC ACT; AND 25
(II) INFANT FORMULA . 26
(F) “BEVERAGE CONTAINER ” MEANS A BOTTLE, CAN, OR OTHER 27
CONTAINER THAT : 28
(1) HAS BEEN SEALED BY A MANUFACTURER ; 29
(2) IS MADE OF GLASS , METAL, OR PLASTIC; AND 30 HOUSE BILL 735 7
(3) AT THE TIME OF SALE , CONTAINS 3 LITERS OR LESS OF A 1
BEVERAGE. 2
(G) “BEVERAGE CONTAINER REDEMPTION AND PROCESSING METHOD” 3
MEANS A MANUAL OR TE CHNOLOGICAL METHOD F OR PROPERLY COLLECTING, 4
IDENTIFYING, COUNTING, OR PROCESSING EMPTY RED EEMABLE BEVERAGE 5
CONTAINERS FOR REDEM PTION. 6
(H) “BEVERAGE CONTAINER ST EWARDSHIP ORGANIZATI ON” MEANS A 7
NONPROFIT ORGANIZATI ON THAT IS: 8
(1) EXEMPT FROM TAXATION UNDER § 501(C)(3) OF THE INTERNAL 9
REVENUE CODE; AND 10
(2) CREATED BY PRODUCERS TO IMPLEMENT A BEVER AGE 11
CONTAINER STEWARDSHI P PLAN. 12
(I) “BEVERAGE CONTAINER ST EWARDSHIP PLAN ” MEANS A PLAN 13
SUBMITTED TO THE DEPARTMENT UNDER § 9–1742 OF THIS SUBTITLE. 14
(J) “DEPOSIT INITIATOR ” MEANS THE FIRST DIST RIBUTOR TO COLLECT A 15
DEPOSIT ON A BEVERAG E CONTAINER SOLD IN THE STATE. 16
(K) (1) “DISTRIBUTOR” MEANS A PERSON THAT SELLS BEVERAGES IN 17
REDEEMABLE BEVERAGE CONTAINERS TO A RETA ILER IN THE STATE. 18
(2) “DISTRIBUTOR” INCLUDES A PERSON TH AT MANUFACTURES AND 19
SELLS BEVERAGES IN R EDEEMABLE BEVERAGE CON TAINERS TO A RETAILE R IN THE 20
STATE. 21
(3) “DISTRIBUTOR” DOES NOT INCLUDE AIR LINES OR SHIPPING 22
COMPANIES THAT TRANS PORT REDEEMABLE BEVE RAGE CONTAINERS . 23
(L) “GRANT PROGRAM” MEANS THE BEVERAGE CONTAINER RECYCLING 24
REFUND GRANT PROGRAM ES TABLISHED UNDER § 9–1746 OF THIS SUBTITLE. 25
(M) “LINE BREAKAGE ” MEANS A BEVERAGE CON TAINER THAT: 26
(1) BECOMES DEFECTIVE OR DAMAGED DURING MANUF ACTURING; 27
(2) IS NOT INTENDED TO BE SOLD; AND 28
8 HOUSE BILL 735
(3) IS NOT ELIGIBLE FOR R EDEMPTION. 1
(N) “MARYLAND–SPECIFIC UPC BARCODE” MEANS A UNIVERSAL PR ODUCT 2
CODE THAT IS: 3
(1) UNIQUE TO BEVERAGE CO NTAINERS SOLD IN THE STATE; AND 4
(2) USED TO DETER FRAUD A ND ENSURE THE LEGITI MATE 5
REDEMPTION OF REDEEM ABLE BEVERAGE CONTAI NERS. 6
(O) (1) “ON–PREMISES SE LLER” MEANS A PERSON THAT SELLS FILLED 7
AND UNOPENED REDEEMA BLE BEVERAGE CONTAIN ERS FOR ON –PREMISES 8
CONSUMPTION . 9
(2) “ON–PREMISES SELLER ” INCLUDES: 10
(I) BARS; 11
(II) HOTELS; 12
(III) RESTAURANTS ; 13
(IV) SPORTING VENUES ; 14
(V) ENTERTAINMENT VENUES; AND 15
(VI) GAMING VENUES . 16
(P) “PERFORMANCE TARGETS ” MEANS THE TARGETS ES TABLISHED UNDER 17
§ 9–1736 OF THIS SUBTITLE. 18
(Q) (1) “PRODUCER” MEANS A PERSON RESPO NSIBLE FOR COMPLYING 19
WITH THE REQUIREMENT S UNDER THIS PART . 20
(2) “PRODUCER” INCLUDES A FRANCHISOR OF A FRAN CHISE 21
LOCATED IN THE STATE. 22
(3) “PRODUCER” DOES NOT INCLUDE : 23
(I) THE STATE, A COUNTY, A MUNICIPAL CORPORAT ION, OR 24
ANY OTHER POLITICAL SUBDIVISION OF THE STATE; 25
HOUSE BILL 735 9
(II) A CHARITABLE ORGANIZAT ION THAT IS TAX –EXEMPT 1
UNDER § 501(C)(3) OF THE INTERNAL REVENUE CODE; 2
(III) A SOCIAL WELFARE ORGAN IZATION THAT IS TAX –EXEMPT 3
UNDER § 501(C)(4) OF THE INTERNAL REVENUE CODE; 4
(IV) A FRANCHISEE THAT OPER ATES A FRANCHISE IN THE 5
STATE; 6
(V) A PERSON THAT ANNUALLY SELLS, OFFERS FOR SALE, 7
DISTRIBUTES, OR IMPORTS INTO THE COUNTRY FOR SALE IN THE STATE FEWER 8
THAN 1,000 REDEEMABLE BEVERAGE CONTAINERS; OR 9
(VI) A PERSON THAT ANNUALLY SELLS, OFFERS FOR SALE , OR 10
DISTRIBUTES IN THE STATE REDEEMABLE BEVE RAGE CONTAINERS THAT IN 11
AGGREGATE GE NERATE LESS THAN $5,000,000 EACH YEAR IN GLOBAL REVENUE. 12
(R) “PROGRAM” MEANS THE MARYLAND BEVERAGE CONTAINER 13
RECYCLING REFUND AND LITTER REDUCTION PROGRAM ESTABLISHED U NDER § 14
9–1735 OF THIS SUBTITLE . 15
(S) “RECYCLING RATE ” MEANS THE NUMBER OF NONREFILLAB LE 16
REDEEMABLE BEVERAGE CONTAINERS SOLD IN T HE STATE THAT ARE REDEEM ED 17
AND RECYCLED SHOWN A S A PERCENTAGE OF AL L NONREFILLABLE REDE EMABLE 18
BEVERAGE CONTAINERS SOLD IN THE STATE. 19
(T) “REDEEM” MEANS THE RETURN OF AN EMPTY REDEEMABLE BEVERAGE 20
CONTAINER IN EXCHANGE FOR A REFUN D, A VOUCHER FOR A REFU ND, OR A CREDIT 21
TO AN ACCOUNT FOR NO T LESS THAN THE REFU ND VALUE. 22
(U) “REDEEMABLE BEVERAGE C ONTAINER” MEANS A BEVERAGE 23
CONTAINER THAT , AT THE TIME OF SALE : 24
(1) CONTAINS 3 LITERS OR LESS OF A BEVERAGE; 25
(2) BEARS A UNIVERSAL PRO DUCT CODE; AND 26
(3) MAY BEAR A MARYLAND–SPECIFIC UPC BARCODE FOR THE 27
PURPOSE OF ENSURING LEGITIMATE REDEMPTIO N AND DETERRING FRAU D. 28
(V) “REDEMPTION FACILITY ” MEANS A FACILITY THA T: 29
10 HOUSE BILL 735
(1) ACCEPTS EMPTY BEVERAG E CONTAINERS FROM A CONSUMER, A 1
RETAILER, OR BOTH; 2
(2) COLLECTS, SORTS, AND COUNTS EMPTY BEV ERAGE CONTAINERS ; 3
(3) REFUNDS THE REFUND VA LUE OF EMPTY REDEEMA BLE 4
BEVERAGE CONTAINERS IN CASH, WITH A VOUCHER , OR AS A CREDIT TO AN 5
ACCOUNT FOR NOT LESS THAN THE REFUND VALU E OF THE REDEEMABLE 6
BEVERAGE CONTAINER ; AND 7
(4) IS LICENSED UNDER § 9–1738 OF THIS SUBTITLE. 8
(W) “REDEMPTION RATE ” MEANS THE PERCENTAGE OF REDEEMABLE 9
BEVERAGE CONTAINERS SOLD IN THE STATE THAT ARE REDEEM ED FOR THE 10
DEPOSIT VALUE . 11
(X) “REFILLABLE” MEANS A BEVERAGE CONTAINER T HAT IS DESIGNED AND 12
INTENDED TO BE REUSE D AS A BEVERAGE CONT AINER AFTER BEING US ED BY A 13
CONSUMER WITHOUT THE NEED FOR REMANUFACTU RING. 14
(Y) (1) “RETAILER” MEANS A PERSON THAT ENGAGES IN THE SALE OF 15
REDEEMABLE BEVERAGE CONTAINERS TO A CONSUMER IN THE STATE. 16
(2) “RETAILER” INCLUDES A PERSON TH AT ENGAGES IN THE SA LE OF 17
REDEEMABLE BEVERAGE CONTAINERS: 18
(I) THROUGH A VENDING MAC HINE; OR 19
(II) ONLINE FOR HOME DELIV ERY. 20
(Z) “REVERSE VENDING MACHI NE” MEANS AN AUTOMATED D EVICE THAT: 21
(1) ACCEPTS ONE OR MORE T YPES OF EMPTY REDEEM ABLE 22
BEVERAGE CONTAINERS ; 23
(2) USES A LASER SCANNER , AN OPTICAL SENSOR , A 24
MICROPROCESSOR , OR OTHER TECHNOLOGY TO ACCURATELY RECOGN IZE A 25
BEVERAGE CONTAINER ’S UNIVERSAL PRODUCT CODE TO DETERMINE WH ETHER THE 26
CONTAINER IS A REDEE MABLE BEVERAGE CONTA INER; 27
(3) ISSUES A REDEEMABLE C REDIT SLIP FOR THE R EDEEMABLE 28
BEVERAGE CONTAINER ’S REFUND VALUE ; 29
HOUSE BILL 735 11
(4) SEPARATES REDEEMABLE BEVERAGE CONTAINERS FROM 1
CONTAINERS THAT ARE NOT REDEEMABLE ; 2
(5) USES MECHANICAL COMPACTION TO CANCEL REDEEMABLE 3
BEVERAGE CONTAINERS THAT HAVE BEEN REDEE MED; AND 4
(6) COMPILES INFORMATION REGARDING THE REDEEM ABLE 5
BEVERAGE CONTAINERS THAT HAVE BEEN REDEE MED, INCLUDING THE NUMBER OF 6
REDEEMABLE BEVERAGE CONTAINERS REDEEMED . 7
(AA) (1) “UNIVERSAL PRODUCT COD E” OR “UPC” MEANS A STANDARD 8
BARCODE THAT ENCODES A NUMBER UNIQUELY AS SIGNED TO A PRODUCT FOR 9
IDENTIFICATION OF TH E PRODUCT. 10
(2) “UNIVERSAL PRODUCT COD E” OR “UPC” INCLUDES: 11
(I) ANY INDUSTRY–ACCEPTED BARCODE USE D FOR PRODUCT 12
IDENTIFICATION PURPOSES ; AND 13
(II) A EUROPEAN ARTICLE NUMB ER. 14
9–1734. 15
IT IS THE INTENT OF T HE GENERAL ASSEMBLY TO: 16
(1) ACHIEVE A REDEMPTION RATE OF AT LEAST 90% FOR THE 17
APPROXIMATELY 5,200,000,000 SINGLE–USE BEVERAGE CONTAIN ERS SOLD 18
ANNUALLY IN THE STATE; 19
(2) PROVIDE A SOURCE OF H IGH–QUALITY FOOD –GRADE MATERIALS 20
FOR USE AS RECYCLED CONTENT IN BEVERAGE AND FOOD CONTAINERS ; 21
(3) REDUCE THE VOLUME OF LITTER AND PLASTIC P OLLUTION FROM 22
BEVERAGE CONTAINERS IN THE STATE; 23
(4) REDUCE THE VOLUME OF BEVERAGE CONTAINERS THAT ARE 24
LANDFILLED OR INCINE RATED IN THE STATE; 25
(5) REDUCE THE COSTS OF L ITTER AND BEVERAGE C ONTAINER 26
COLLECTION, RECYCLING, AND DISPOSAL INCURRE D BY TAXPAYERS , COUNTIES, 27
AND MUNICIPAL CORPOR ATIONS BY MAKING PRO DUCERS OF BEVERAGE 28
CONTAINERS RESPONSIBLE FOR THE RECOVERY , RECYCLING, AND REUSE OF 29
BEVERAGE CONTAINERS ; 30 12 HOUSE BILL 735
(6) PROVIDE INCENTIVES FO R INCREASING THE USE OF REUSABLE 1
AND REFILLABLE BEVER AGE CONTAINERS ; AND 2
(7) REDUCE GREENHOUSE GAS EMISSIONS ASSOCIATED WITH THE 3
PRODUCTION , TRANSPORTATION , PROCESSING, AND WASTE DISPOSAL O F 4
SINGLE–USE BEVERAGE CONTAIN ERS SOLD IN THE STATE. 5
9–1735. 6
THERE IS A MARYLAND BEVERAGE CONTAINER RECYCLING REFUND AND 7
LITTER REDUCTION PROGRAM IN THE DEPARTMENT . 8
9–1736. 9
PERFORMANCE TARGETS F OR THE PROGRAM ARE AS FOLLOW S: 10
(1) A 70% REDEMPTION RATE BY DECEMBER 31, 2028; 11
(2) A 90% REDEMPTION RATE BY DECEMBER 31, 2031; 12
(3) A 65% RECYCLING RATE BY DECEMBER 31, 2028; 13
(4) AN 85% RECYCLING RATE BY DECEMBER 31, 2031; 14
(5) BY DECEMBER 31, 2026, ATTAINMENT OF ALL CO NVENIENCE 15
STANDARDS IDENTIFIED BY THE DEPARTMENT UNDER § 9–1747 OF THIS SUBTITLE; 16
AND 17
(6) BY DECEMBER 31, 2034, AT LEAST 10% OF ALL BEVERAGE 18
CONTAINERS SOLD IN THE STATE ARE RETURNED AND R EFILLED. 19
9–1737. 20
(A) (1) SUBJECT TO PARAGRAPHS (2) AND (3) OF THIS SUBSECTION , 21
BEGINNING JANUARY 1, 2027, EACH REDEEMABLE BEVE RAGE CONTAINER SOLD IN 22
THE STATE SHALL INCLUDE A DEPICTION OF THE FOL LOWING INFORMATION : 23
(I) THE WORD “MARYLAND” OR THE LETTERS “MD”; AND 24
(II) 1. FOR REDEEMABLE BEVERA GE CONTAINERS WITH A 25
VOLUME OF 24 FLUID OUNCES OR LESS , A REFUND VALUE OF 10 CENTS; OR 26
HOUSE BILL 735 13
2. FOR REDEEMABLE BEVERA GE CONTAINERS WITH A 1
VOLUME OF MORE THAN 24 FLUID OUNCES , A REFUND VALU E OF 15 CENTS. 2
(2) THE DEPARTMENT MAY ADJUST THE REFUND VALUES SP ECIFIED 3
IN PARAGRAPH (1) OF THIS SUBSECTION : 4
(I) IF THE DEPARTMENT DETERMINES ALTERING THE REFUND 5
VALUES IS NECESSARY TO MEET OR EXCEED PE RFORMANCE TARGETS ; OR 6
(II) AT THE REQUEST OF A BEVERAGE CONTAI NER 7
STEWARDSHIP ORGANIZA TION. 8
(3) BEGINNING JANUARY 1, 2031, THE DEPARTMENT SHALL 9
INCREASE THE REFUND VALUES SPECIFIED IN PARAGRAPH (1) OF THIS SUBSECTION 10
BY 5 CENTS IF THE DEPARTMENT DETERMINES THAT FOR 2 CONSECUTIVE 11
CALENDAR YEARS THE REDEMPTION RATE WAS LESS THAN 90% OF THE TOTAL 12
NUMBER OF BEVERAGE C ONTAINERS SOLD IN TH E STATE. 13
(B) A BEVERAGE CONTAINER D EPICTING THE INFORMA TION SPECIFIED IN 14
SUBSECTION (A) OF THIS SECTION MAY NOT BE SOLD TO A CON SUMER BEFORE 15
JANUARY 1, 2027. 16
(C) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 17
BEGINNING JANUARY 1, 2027: 18
(I) THE WHOLESALE PRICE A ND THE RETAIL PRICE OF A FULL 19
REDEEMABLE BEVERAGE CONTAINER SHALL INCL UDE THE REFUND VALUE OF THE 20
REDEEMABLE BEVERAGE CONTAINER; AND 21
(II) A RETAILER SHALL INCLU DE ON A CUSTOMER ’S SALES 22
RECEIPT THE REFUND V ALUE OF A REDEEMABLE BEVERAGE CONTAINER S OLD BY 23
THE RETAILER TO THE CUSTOMER. 24
(2) THE RETAIL PRICE OF A FULL REDEEMABLE BEVE RAGE 25
CONTAINER SOLD BY AN ON–PREMISES SELLER MAY NOT INCLUD E THE REFUND 26
VALUE OF THE REDEEMA BLE BEVERAGE CONTAIN ER. 27
9–1738. 28
(A) (1) THE PROGRAM SHALL PROVIDE A RANGE OF OPTIONS F OR 29
CUSTOMERS TO CONVENI ENTLY REDEEM EMPTY R EDEEMABLE BEVERAGE 30
CONTAINERS FOR THE F ULL REFUND VALUE , INCLUDING: 31
14 HOUSE BILL 735
(I) AT A RETAILER’S PLACE OF BUSINESS THROUGH DIRECT 1
TAKE–BACK BY THE RETAILER , REVERSE VENDING MACH INES, A BAG DROP 2
PROGRAM, OR OTHER REDEMPTION METHODS; 3
(II) DEDICATED AND CONVENIENT LY LOCATED REDEMPTION 4
FACILITIES OPERATED BY RETAILER S, PUBLIC ENTITIES , OR A BEVERAGE 5
CONTAINER STEWARDSHI P ORGANIZATION ; AND 6
(III) PLACING REDEEMABLE BE VERAGE CONTAINER 7
REDEMPTION AND PROCESSING METHODS, SUCH AS REVERSE VEND ING MACHINES , 8
BAG DROP PROGRAM S, AND ACCOUNT –BASED BULK PRO CESSING PROGRAMS , IN 9
AREAS: 10
1. WITH A HIGH NUMBER OF PEDESTRIANS ; AND 11
2. WHERE INDIVIDUALS PUR CHASE OR USE BEVERAG E 12
CONTAINERS. 13
(2) THE PROGRAM SHALL PROVIDE A RANGE OF OPTIONS F OR 14
ON–PREMISES SELLERS TO CONVENIENTLY REDEEM EMPTY REDEEMABLE 15
BEVERAGE CONTAINERS FOR THE FULL REFUND VALUE, INCLUDING: 16
(I) AN ACCOUNT –BASED REFUND ISSUED BY A BEVERAGE 17
CONTAINER STEWARDSHI P ORGANIZATION OR IT S AGENTS FOLLOWING T HE 18
COLLECTION OF EMPTY REDEEMABLE BEVERAGE CONTAINERS BY THE BEVERAGE 19
CONTAINER STEWA RDSHIP ORGANIZATION OR ITS AGENTS FROM THE ON–PREMISES 20
SELLER; OR 21
(II) AN ACCOUNT–BASED REFUND ISSUED BY THE OPERATOR OF 22
A BAG DROP PROGRAM . 23
(B) (1) A PERSON SHALL APPLY T O THE DEPARTMENT FOR A LICE NSE TO 24
OPERATE A REDEMPTION FACILITY IN THE STATE. 25
(2) THE DEPARTMENT SHALL DEVE LOP STANDARDS AND A 26
LICENSING PROCESS FO R THE ESTABLISHMENT AND OPERATION OF RED EMPTION 27
FACILITIES. 28
(C) SUBJECT TO SUBSECTION (D) OF THIS SECTION , A REDEMPTION 29
FACILITY SHALL ACCEP T ALL TYPES OF EMPTY REDEEMABLE BEVERAGE 30
CONTAINERS FOR REDEMP TION. 31
HOUSE BILL 735 15
(D) A RETAILER OR REDEMPTI ON FACILITY MAY REFU SE TO ACCEPT AN 1
EMPTY REDEEMABLE BEV ERAGE CONTAINER THAT : 2
(1) IS DIRTY; 3
(2) IS BROKEN; 4
(3) CONTAINS MATERIAL FOR EIGN TO THE NORMAL C ONTENTS OF 5
THE BEVERAGE CONTAIN ER; OR 6
(4) THE RETAILER OR REDEM PTION FACILITY BELIE VES WAS NOT 7
SOLD IN THE STATE. 8
(E) (1) THIS SUBSECTION APPLI ES TO A RETAILER WIT H AT LEAST 3,000 9
SQUARE FEET OF SALES FLOOR SPACE AND AT LEAST 150 SQUARE FEET OF SHELF 10
SPACE DEDICATED TO THE DIS PLAY OF REDEEMABLE BEVERAGE CONTAINERS. 11
(2) SUBJECT TO SUBSECTION (D) OF THIS SECTION , A RETAILER 12
SHALL: 13
(I) ESTABLISH AND MAINTAI N A DEDICATED AREA A T THE 14
RETAILER’S PLACE OF BUSINESS TO ACCEPT EMPTY REDEEMABLE BEVERAGE 15
CONTAINERS; 16
(II) ACCEPT AT THE RETAILER’S PLACE OF BUSINESS ANY 17
EMPTY REDEEMABLE BEV ERAGE CONTAINER S RETURNED FOR REDEMPT ION 18
DURING THE RETAILER ’S BUSINESS HOURS ; AND 19
(III) PAY TO THE REDEEMER T HE REFUND VALUE FOR EACH 20
EMPTY REDEEMABLE BEVERAGE CONTAINER REDEEMED . 21
(3) RETAILERS MAY MEET THE REQUIREMENTS IN PARAGRAPH (2) OF 22
THIS SUBSECTION THROUGH VARI OUS METHODS , INCLUDING: 23
(I) SUPPLEMENTING THE MANUAL COLLECTION AN D STORING 24
OF REDEEMED REDEEMABLE BEVERAGE CONTAINERS WITH A REVERSE VENDI NG 25
MACHINE, A BAG DROP PROGRAM, OR OTHER COUNTING AN D SORTING METHODS; 26
AND 27
(II) GROUPING BEVERAGE CONTAINER REDEMPTION AND 28
PROCESSING METHODS WITH THOSE OF OTHER RETAILERS IF: 29
16 HOUSE BILL 735
1. A BEVERAGE CONTAINER S TEWARDSHIP 1
ORGANIZATION APPROVES THE PROPOSA L; AND 2
2. THE RETAILERS PARTICI PATING IN THE GROUPE D 3
METHODS PROVIDE CONSISTENT SERVICE , MARKETING, AND SITE REDEMPTION 4
LOCATIONS THAT COMPL Y WITH DISTANCE PROVISIONS DETERMINED BY THE 5
DEPARTMENT . 6
(4) A RETAILER WITHIN AN AREA THAT MEETS THE CONVE NIENCE 7
STANDARDS ESTABLISHED BY THE DEPARTMENT UNDER § 9–1747 OF THIS 8
SUBTITLE MAY BE EXEMPT FROM T HE REQUIREMENTS OF T HIS SUBSECTION IF TH E 9
RETAILER: 10
(I) IS LOCATED IN CLOSE P ROXIMITY TO A REDEMP TION 11
FACILITY IN THAT AREA; AND 12
(II) SHARES THE COST OF TH E OPERATION OF THE 13
REDEMPTION FACILITY WITH A BEVERAGE CONTAINER S TEWARDSHIP 14
ORGANIZATION . 15
(5) THE DEPARTMENT MAY: 16
(I) SET STANDARDS FOR THE NUMBER OF REVERSE VE NDING 17
MACHINES REQUIRED FO R RETAILERS LOCATED IN UNDERSERVED COMMUN ITIES; 18
AND 19
(II) ESTABLISH A CAP FOR THE NUMBER OF EMPTY 20
REDEEMABLE BEVERAGE CONTAINERS THAT CAN BE REDEEMED PER VISI T AT 21
SMALL RETAILERS . 22
(F) SUBJECT TO SUBSECTION (D) OF THIS SECTION, A RETAILER WITH LESS 23
THAN 3,000 SQUARE FEET OF SALES FLOOR SPACE OR LESS THAN 150 SQUARE FEET 24
OF SHELF SPACE DEDICATED TO THE DIS PLAY OF REDEEMABLE B EVERAGE 25
CONTAINERS SHALL : 26
(1) PROVIDE ON–SITE CASH REFUNDS FOR THE REDEMPTION OF ANY 27
EMPTY REDEEMABLE BEV ERAGE CONTAINER THAT IS OF THE SAME MATERIAL AND 28
SIZE AS THOSE THAT ARE SOLD BY THE RETAILER IF THE EMPTY REDEEMABLE 29
BEVERAGE CONTAINER BEING REDEEMED IS NOT ACCEPTED BY A RE VERSE 30
VENDING MACHINE ; AND 31
(2) POST AT THE RETAILER’S ENTRANCE THE ADDRESS OF THE 32
NEAREST REVERSE VEND ING MACHINE OR OTHER REDEMPTION METHOD THAT 33 HOUSE BILL 735 17
PROVIDES AN IMMEDIAT E CASH REFUND FOR REDEEMING EMPTY REDEEMABLE 1
BEVERAGE CONTAINER S. 2
(G) (1) A PERSON THAT PROVIDES A REVERSE VENDING MA CHINE FOR 3
THE REDEMPTION OF EMPTY REDEEMABLE BEVERAGE CONTAINERS SHALL : 4
(I) PROVIDE AN OPTION FOR REDEEMING EMPTY REDEEMABLE 5
BEVERAGE CONTAINERS WHEN THE REVERSE VEN DING MACHINE IS FULL , BROKEN, 6
OR UNDER REPAIR ; AND 7
(II) PROVIDE AN OPTION FOR REDEEMING ANY EMPTY 8
REDEEMABLE BEVERAGE CONTAINERS NOT ACCEP TED BY THE REVERSE V ENDING 9
MACHINE. 10
(2) (I) THE DEPARTMENT SHALL ESTA BLISH A PROCESS FOR 11
SUBMITTING FOR REVIE W, APPROVING, AND MONITORING AN AC COUNT–BASED 12
BULK PROCESSING PROG RAM THAT: 13
1. ENSURES THAT THE PROG RAM WILL ACCURATELY 14
REFUND DEPOSITS AND MAINTAIN AND REPORT DATA FROM EACH TRANS ACTION; 15
AND 16
2. IDENTIFIES THE INFORM ATION THAT MUST BE 17
SUBMITTED TO THE DEPARTMENT FOR APPROV AL OF THE PROGRAM . 18
(II) A PERSON THAT INTENDS TO PROVIDE AN ACCOUN T–BASED 19
BULK PROCESSING PROG RAM FOR THE REDEMPTI ON OF EMPTY REDEEMABLE 20
BEVERAGE CONTAINERS SHALL SUBMIT INFORMA TION IDENTIFIED UNDE R 21
SUBPARAGRAPH (I) OF THIS PARAGRAPH TO THE DEPARTMENT FOR APPROV AL OF 22
THE PROGRAM . 23
(H) REFUNDS PROVIDED FOR AN EMPTY REDEEMED REDEEMABLE 24
BEVERAGE CONTAINER S HALL BE: 25
(1) IN CASH; 26
(2) IN THE FORM OF A RECE IPT FROM A REVERSE VEN DING MACHINE 27
IF: 28
(I) THE RECEIPT CAN BE EX CHANGED FOR CASH WIT HIN 60 29
DAYS AFTER THE RECEI PT IS ISSUED; AND 30
18 HOUSE BILL 735
(II) THERE IS NO REQUIREME NT THAT OTHER GOODS BE 1
PURCHASED TO RECEIVE THE CASH REFUND ; OR 2
(3) CREDITED TO AN ACCOUNT BY THE RECEIVER OF T HE EMPTY 3
REDEEMABLE BEVERAGE CONTAINER SO THAT THE CONSUMER CAN RECEIVE THE 4
REFUND OR A REFUND R ECEIPT WITHIN A SPEC IFIED NUMBER OF DAYS , AS 5
DETERMINED BY THE DEPARTMENT , AFTER REDEEMING THE EMPTY REDEEMABLE 6
BEVERAGE CONTAINER . 7
(I) (1) A REDEMPTION FACILITY , RETAILER, OR OTHER PERSON THAT 8
ACCEPTS REDEEMABLE B EVERAGE CONTAINERS F OR REDEMPTION SHALL BE 9
REIMBURSED BY A BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION OR ITS 10
AGENT FOR THE HANDLING OF EACH EMPTY REDEEMABLE BEVERAGE CONTAINER 11
REDEEMED . 12
(2) (I) THE DEPARTMENT SHALL SET A HANDLING FEE TO BE PAID 13
BY A BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION OR ITS AGENT TO A 14
REDEMPTION FACILITY , RETAILER, OR OTHER PERSON THAT ACCEPTS EMPTY 15
REDEEMABLE BEVERAGE CONTAINERS FOR REDEM PTION. 16
(II) 1. THE HANDLING FEE SHAL L BE SET AT AN AMOUN T 17
THAT COVERS THE COST S OF COLLECTING , SORTING, PROCESSING, AND 18
TRANSPORTING EMPTY R EDEEMABLE BEVERAGE C ONTAINERS FOR RECYCL ING, 19
REUSE, OR REFILLING. 20
2. THE DEPARTMENT MAY INCREA SE THE HANDLING 21
FEE IF THE DEPARTMENT DETERMINES AN INCREASE IS NECES SARY TO ENCOURAGE 22
THE ESTABLISHMENT OF MORE REDEMPTION FACI LITIES. 23
(J) (1) AN ON–PREMISES SELLER THAT ACCEPTS EMPTY REDEEMABLE 24
BEVERAGE CONTAINERS FOR REDEMPTION SHALL BE REIMBURSED BY A BEVERAGE 25
CONTAINER ST EWARDSHIP ORGANIZATI ON OR ITS AGENT FOR: 26
(I) THE REFUNDS PAID BY THE ON–PREMISES SELLER FOR THE 27
EMPTY REDEEMED REDEEMABLE BEVERAGE CONTAINERS; AND 28
(II) THE HANDLING OF EACH EMPTY REDEEMABLE BEVERAGE 29
CONTAINER REDEEMED . 30
(2) (I) THE DEPARTMENT SHALL SET A MATERIAL HANDLING FE E 31
TO BE PAID BY A BEVE RAGE CONTAINER STEWA RDSHIP ORGANIZATION OR ITS 32
AGENT TO AN ON –PREMISES SELLER THAT ACCEPTS EMPTY REDEEMABLE 33
BEVERAGE CONTAINERS FOR REDEMPTION . 34 HOUSE BILL 735 19
(II) THE HANDLING FEE SHAL L BE SET AT AN AMOUNT THAT 1
COVERS THE COSTS OF TEMPORARY STORAGE , PRELIMINARY SORTING , AND 2
PREPARING EACH REDEEMABLE BEVERAGE CONTAINER REDEEMED FOR 3
COLLECTION. 4
(3) A BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION OR ITS 5
AGENT SHALL PROVIDE TO AN ON–PREMISES SELLER : 6
(I) ANY RECEPTACLES OR BA GS REQUIRED FOR THE 7
PRELIMINARY SORTING OF REDEEMED REDEEMABLE BEVERAGE CONTAINERS BY 8
THE ON–PREMISES SELLER ; AND 9
(II) ANY LABELS NECESSARY FOR ATTRIBUTING THE 10
REDEEMED REDEEMABLE BEVERAGE CONTAINERS TO THE ON–PREMISES SELLER. 11
(K) A DEPOSIT INITIATOR TH AT COLLECTS A DEPOSI T FROM A RETAILER , 12
REDEMPTION FACILITY , OR OTHER PERSON THAT ACCEPTS REDEEMABLE 13
BEVERAGE CONTAINERS FOR REDEMPTION SHALL ACCOUNT FOR ANY DEPO SITS IN 14
ACCORDANCE WITH § 9–1739 OF THIS SUBTITLE. 15
(L) REDEEMED EMPTY REDEEMABLE BEVERAGE CONTAINERS SHALL BE 16
COLLECTED FOR RETURN TO A BEVERAGE CONTAINER S TEWARDSHIP 17
ORGANIZATION FOR SALE AS SCRAP MA TERIAL TO FINANCE THE PROGRAM. 18
9–1739. 19
(A) A DEPOSIT INITIATOR SH ALL DEPOSIT ANY DEPO SITS COLLECTED 20
UNDER § 9–1738 OF THIS SUBTITLE INT O A DEPOSIT COLLECTI ON ACCOUNT THAT IS 21
MAINTAINED SEPARATEL Y FROM ALL OTHER REV ENUES. 22
(B) THE FUNDS IN THE DEPO SIT COLLECTION ACCOU NT MAY BE USED ONLY 23
TO PAY THE REFUND VA LUE OF AN EMPTY REDEEMABLE BEVERAGE CONTAINER 24
BEING REDEEMED. 25
(C) A DEPOSIT INITIATOR SH ALL REPORT TO A BEVERAGE CONTAINER 26
STEWARDSHIP ORGANIZA TION, AT A FREQUENCY DETER MINED BY THE 27
DEPARTMENT , THE FOLLOWING INFORM ATION: 28
(1) THE NUMBER OF REDEEMA BLE BEVERAGE CONTAIN ERS SOLD 29
AND EMPTY REDEEMABLE BEV ERAGE CONTAINERS REDEEMED SINCE THE L AST 30
REPORT WAS SUBMITTED TO THE BEVERAGE CONTAINER S TEWARDSHIP 31
ORGANIZATION UNDER THIS SUBSECTIO N; 32 20 HOUSE BILL 735
(2) THE FUNDS DEPOSITED I NTO THE DEPOSIT COLL ECTION 1
ACCOUNT AND THE REFU NDS ISSUED FROM THE DEPOSIT COLLECTION A CCOUNT 2
SINCE THE LAST REPOR T WAS SUBMITTED TO T HE BEVERAGE CONTAINER 3
STEWARDSHIP ORGANIZA TION UNDER THIS SUBSECTIO N; 4
(3) ANY INCOME EARNED ON THE FUNDS IN THE DEP OSIT 5
COLLECTION ACCOUNT S INCE THE LAST REPORT WAS SUBMITTED TO THE 6
BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION UNDER THIS SUBSECTIO N; 7
(4) THE BALANCE OF THE DE POSIT COLLECTION ACC OUNT; AND 8
(5) ANY OTHER INFORM ATION REQUIRED BY TH E DEPARTMENT . 9
(D) (1) THE DEPARTMENT SHALL DETE RMINE THE POINT AT W HICH A 10
DEPOSIT BECOMES AN U NCLAIMED DEPOSIT . 11
(2) UNCLAIMED DEPOSITS AR E CALCULATED AS THE AMOUNT OF 12
FUNDS TRANSFERRED TO A DEPOSIT COLLECTION ACCOUNT THAT ARE IN EXCESS 13
OF THE SUM OF: 14
(I) ANY INTEREST EARNINGS ON THE DEPOSIT COLLE CTION 15
ACCOUNT DURING THE T IME FOR WHICH UNCLAI MED DEPOSITS ARE BEI NG 16
CALCULATED ; AND 17
(II) THE TOTAL AMOUNT OF T HE REFUND VALUE RECE IVED FOR 18
THE EMPTY REDEEMABLE BEVERAGE CONTAINERS R EDEEMED DURING THE T IME 19
FOR WHICH THE UNCLAI MED DEPOSITS ARE BEI NG CALCULATED . 20
(3) A DEPOSIT INITIATOR SH ALL TRANSFER ALL UNCLAIMED 21
DEPOSITS TO A BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION AT A 22
FREQUENCY DETERMINED BY THE DEPARTMENT . 23
(4) A BEVERAGE CONTAINER STEWARDSHI P ORGANIZATION SHALL: 24
(I) ESTABLISH A RESERVE ACCOUNT TO MANAGE ALL 25
UNCLAIMED DEPOSITS ; AND 26
(II) TRANSFER 10% OF ALL UNCLAIMED DEP OSITS TO THE 27
DEPARTMENT WITH A FREQUENCY DET ERMINED BY THE DEPARTMENT . 28
HOUSE BILL 735 21
(5) A BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION SHALL 1
USE THE FUNDS IN THE RESERVE ACCOUNT ESTABLISHED UNDER PARAGRAPH (4) 2
OF THIS SUBSECTION TO: 3
(I) ACHIEVE THE INTENT OF THE GENERAL ASSEMBLY STATED 4
IN § 9–1734 OF THIS SUBTITLE; AND 5
(II) MEET OR EXCEED THE PERFORMAN CE TARGETS 6
ESTABLISHED IN § 9–1736 OF THIS SUBTITLE . 7
(6) (I) THE DEPARTMENT SHALL TRAN SFER ANY UNCLAIMED 8
DEPOSITS RECEIVED UN DER THIS PARAGRAPH T O THE STATE RECYCLING TRUST 9
FUND UNDER § 9–1707(F) OF THIS SUBTITLE. 10
(II) THE UNCLAIMED DEPOSITS TRANSFE RRED TO THE STATE 11
RECYCLING TRUST FUND MAY BE USED ONLY FOR THE COSTS OF ADM INISTERING 12
AND FINANCING THE GRANT PROGRAM UNDER § 9–1746 OF THIS SUBTITLE. 13
9–1740. 14
(A) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THIS SECTION 15
APPLIES TO A PRODUCER THAT S ELLS, OFFERS FOR SALE , OR DISTRIBUTES 16
REDEEMABLE BEVERAGE CONTAINERS IN THE STATE. 17
(2) (I) IF THE BEVERAGE CONTA INER IS SOLD UNDER T HE 18
PRODUCER’S OWN BRAND OR LACKS IDENTIFICATION OF A BRAND, THE PRODUCER 19
IS THE PERSON THAT M ANUFACTURES THE REDEEMABLE BEVERAGE CONTAINER . 20
(II) IF THE REDEEMABLE BEV ERAGE CONTAINER IS 21
MANUFACTURED BY A PE RSON OTHER THAN THE BRAND OWNER , THE PRODUCER IS 22
THE PERSON THAT IS T HE LICENSEE OF A BRA ND OR TRADEMARK UNDE R WHICH A 23
REDEEMABLE BEVERAGE CONTAINER IS SOLD , OFFERED FOR SALE , OR 24
DISTRIBUTED IN THE STATE, WHETHER OR NOT THE T RADEMARK IS REGISTER ED IN 25
THE STATE, UNLESS ANOTHER RESPO NSIBLE PERSON HAS CO NTRACTUALLY 26
ACCEPTED RESPONSIBIL ITY AS THE PRODUCER AND HAS JOINED A BEVERAGE 27
CONTAINER STEWARDSHI P ORGANIZATION AS TH E PRODUCER RESPONSIB LE FOR 28
THE REDEEMABLE BEVER AGE CONTAINER UNDER THIS SECTION . 29
(III) IF THERE IS NO PERSON DESCRIBED IN THIS PA RAGRAPH 30
OVER WHOM THE STATE CAN CONSTITUTIO NALLY EXERCISE JURIS DICTION, THE 31
PRODUCER IS THE PERS ON THAT IMPORTS OR D ISTRIBUTES THE REDEE MABLE 32
BEVERAGE CONTAINER I N THE STATE. 33
22 HOUSE BILL 735
(3) IF ANOTHER PERSON CONTRACTUALLY ACCEPT S 1
RESPONSIBILITY AS A PRODUCER UNDER PARAGRAPH (2)(II) OF THIS SUBSECTION, 2
THE PRODUCER MUST PR OVIDE A CERTIFIED COPY OF TH E CONTRACTUAL 3
AGREEMENT TO THE RELEVANT BEVERAGE CONTAINER S TEWARDSHIP 4
ORGANIZATION . 5
(B) BEGINNING JANUARY 1, 2027, A PRODUCER MAY NOT S ELL, OFFER FOR 6
SALE, OR DISTRIBUTE IN OR IMPORT INTO THE STATE A REDEEMABLE BE VERAGE 7
CONTAINER UNL ESS THE PRODUCER : 8
(1) IS REGISTERED WITH TH E DEPARTMENT IN ACCORDANCE WITH 9
THIS SECTION; 10
(2) HAS PAID THE REGISTRA TION FEE UNDER SUBSE CTION (F) OF 11
THIS SECTION; AND 12
(3) IS PART OF A BEVERAGE CONTAINER STEWARDSHIP 13
ORGANIZATION THAT: 14
(I) HAS BEEN APPROVED BY THE DEPARTMENT UNDER § 15
9–1741 OF THIS SUBTITLE ; AND 16
(II) HAS A BEVERAGE CONTAINER STEWARDSHIP PLAN 17
APPROVED BY THE DEPARTMENT UNDER § 9–1742 OF THIS SUBTITLE. 18
(C) ON OR BEFORE MARCH 1 EACH YEAR, BEGINNING IN 2026, A BEVERAGE 19
CONTAINER STEWARDSHIP ORGANIZATION REPRESE NTING A PRODUCER SHALL 20
PROVIDE TO THE DEPARTMENT : 21
(1) A LIST OF EACH PRODUCER PARTICIPATING IN THE BEVERAGE 22
CONTAINER STEWARDSHI P ORGANIZATION ; AND 23
(2) FOR EACH PRODUCER , THE REGISTRATION FORM REQUIRED 24
UNDER SUBSECTION (D) OF THIS SECTION. 25
(D) (1) THE DEPARTMENT SHALL CREA TE A REGISTRATION FO RM THAT 26
REQUIRES EACH PRODUC ER PARTICIPATING IN THE BEVERAGE CONTAINER 27
STEWARDSHIP ORGANIZA TION TO PROVIDE THE FOLLO WING INFORMATION : 28
(I) THE NAME, PRIMARY BUSINESS ADDRESS, AND CONTACT 29
INFORMATION OF THE P ERSON RESPONSIBLE FO R ENSURING COMPLIANC E WITH 30
THIS PART; 31
HOUSE BILL 735 23
(II) A LIST OF EACH BRAND O F REDEEMABLE BEVERAG E 1
CONTAINERS THAT THE PRODUCER INTENDS TO SELL, OFFER FOR SALE , OR 2
DISTRIBUTE IN THE STATE, INCLUDING THE SIZE AND MATERIA L OF THE 3
REDEEMABLE BEVERAGE CONTAINERS FOR EACH BRAND; 4
(III) FOR EACH REDEEMABLE B EVERAGE CONTAINER SP ECIFIED 5
IN THE REGISTRATION , WHETHER THE REDEEMAB LE BEVERAGE CONTAINE R: 6
1. IS REFILLABLE; AND 7
2. DEPICTS A UPC OR MARYLAND–SPECIFIC UPC 8
BARCODE; 9
(IV) HOW EACH PRODUCER WIL L PREVENT THE FRAUDU LENT 10
SALE AND REDEMPTION OF REDEEMABLE BEVERA GE CONTAINERS THAT W ERE NOT 11
SOLD IN THE STATE; 12
(V) THE NUMBER OF REDEEMA BLE BEVERAGE CONTAIN ERS 13
EACH PRODUCER SOLD I N THE STATE IN THE IMMEDIATELY PREC EDING CALENDAR 14
YEAR; AND 15
(VI) ANY OTHER INFORMATION REQUIRED BY THE 16
DEPARTMENT . 17
(2) A PRODUCER SHALL SUBMI T A COMPLETED REGIST RATION FORM 18
TO THE BEVERAGE CONT AINER STEWARDSHIP OR GANIZATION THAT REPR ESENTS 19
THE PRODUCER . 20
(E) ON OR BEFORE MARCH 1, 2026, AND WITH A FREQUENCY AS 21
DETERMINED BY THE DEPARTMENT THEREAFTER , EACH PRODUCER SHALL PAY A 22
REGISTRATION FEE EST ABLISHED BY THE DEPARTMENT UNDER SUBS ECTION (F) OF 23
THIS SECTION. 24
(F) (1) THE DEPARTMENT SHALL ESTA BLISH AN ANNUAL REGI STRATION 25
FEE FOR PRODUCERS TH AT SELL REDEEMABLE B EVERAGE CONTAINERS I N THE 26
STATE. 27
(2) THE REGISTRATION FEE SHALL BE SET IN A MA NNER THAT: 28
(I) WHEN TAKEN IN COMBINA TION WITH ANTICIPATE D 29
REVENUES FROM PENALT IES COLLECTED UNDER § 9–1750 OF THIS SUBTITLE, WILL 30
PRODUCE FUNDS SUFFIC IENT TO COVER THE DEPARTMENT ’S ESTIMATED COSTS OF 31 24 HOUSE BILL 735
PLANNING, IMPLEMENTING , ADMINISTERING , MONITORING , ENFORCING, AND 1
EVALUATING THE PROGRAM FOR THE UPCOM ING YEAR; 2
(II) FOR THE FIRST YEAR OF THE PROGRAM DURING WHICH 3
REGISTRATION FEES ARE COLLECTED , SHALL COVER THE START–UP COSTS OF THE 4
PROGRAM THAT WERE INCURRED BY THE DEPARTMENT AND FINANCED FROM THE 5
GENERAL FUND; AND 6
(III) IS PROPORTIONAL TO A PRODUCER’S SHARE OF THE TOTAL 7
NUMBER OF REDEEMABLE BEVERAGE CONTAINERS SOLD IN T HE STATE FOR THE 8
IMMEDIATELY PRECEDIN G CALENDAR YEAR . 9
(3) THE DEPARTMENT SHALL : 10
(I) IF THE REVENUES FROM THE REGISTRATION FEE S IN THE 11
IMMEDIATELY PRECEDIN G YEAR EXCEED THE CO STS SPECIFIED IN PAR AGRAPH 12
(2)(I) OF THIS SUBSECTION , CARRY THE EXCESS REV ENUES FORWARD TO RED UCE 13
REGISTRATION FEES TH E FOLLOWING YEAR ; AND 14
(II) IF THE REVENUES FROM THE REGISTRATION FEE S IN THE 15
IMMEDIATELY PRECEDIN G YEAR DO NOT COVER THE COSTS SPECIFIED IN 16
PARAGRAPH (2)(I) OF THIS SUBSECTION , ADJUST REGI STRATION FEES FOR TH E 17
FOLLOWING YEAR TO AN AMOUNT THAT WILL COV ER THE DEPARTMENT ’S ACTUAL 18
COSTS FROM THE IMMED IATELY PRECEDING YEA R. 19
(4) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 20
PARAGRAPH , REGISTRATION FEES COL LECTED UNDER THIS SU BSECTION SH ALL BE: 21
1. TRANSFERRED TO THE STATE RECYCLING TRUST 22
FUND UNDER § 9–1707(F) OF THIS SUBTITLE; AND 23
2. USED ONLY TO COVER TH E DEPARTMENT ’S COSTS OF 24
PLANNING, IMPLEMENTING , ADMINISTERING , MONITORING , ENFORCING, AND 25
EVALUATING THE PROGRAM. 26
(II) THE PORTION OF THE RE GISTRATION FEES THAT COVERED 27
THE START–UP COSTS OF THE PROGRAM AND WERE FINANCED FR OM THE GENERAL 28
FUND DURING THE FIRST YEAR OF THE PROGRAM FOR WHICH REGISTRATI ON FEES 29
ARE COLLECTED IN ACCORDANCE WITH P ARAGRAPH (2)(II) OF THIS SUBSECT ION 30
SHALL BE DEPOSITED I NTO THE GENERAL FUND. 31
9–1741. 32
HOUSE BILL 735 25
(A) ON OR BEFORE AUGUST 1, 2025, THE DEPARTMENT SHALL ACCE PT 1
APPLICATIONS FROM BE VERAGE CONTAINER STE WARDSHIP ORGANIZATIO NS TO 2
REPRESENT PRODUCERS IN FULFILLING THE RE QUIREMENTS OF THIS PART. 3
(B) ON OR BEFORE OCTOBER 1, 2025, THE DEPARTMENT MAY APPROV E, 4
FOR A PERIOD NOT TO EXCEED 10 YEARS, A SINGLE BEVERAGE CO NTAINER 5
STEWARDSHIP ORGANIZA TION AS A SYSTEM OPE RATOR FOR THE PROGRAM IF THE 6
BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION DEMONSTRATES THA T IT 7
HAS: 8
(1) THE ABILITY, AS DETERMINED BY THE DEPARTMENT , TO 9
ADMINISTER THE REQUI REMENTS OF A BEVERAG E CONTAINER STEWARDS HIP PLAN 10
UNDER § 9–1742 OF THIS SUBTITLE; 11
(2) A GOVERNING BOARD CONS ISTING OF PRODUCERS THAT 12
REPRESENT THE DIVERSITY OF APPLICABLE REDEEM ABLE BEVERAGE CONTAI NERS 13
IN THE MARKET ; 14
(3) SET NO UNREASONABLE B ARRIERS TO JOINING T HE BEVERAGE 15
CONTAINER STEWARDSHIP ORGANIZA TION AND WILL TAKE I NTO CONSIDERATION 16
THE NEEDS OF SMALL PRODUCERS THAT DO NOT GENERATE A HIGH VOLUME OF 17
CONTAINERS; 18
(4) ADEQUATE FINANCIAL RE SPONSIBILITY AND SAFEGUARDS , 19
INCLUDING FRAUD PREV ENTION MEASURES AND AN AUDIT SCHEDULE ; 20
(5) THE ABILITY TO SECURE THE CAPITAL NECESSAR Y FOR THE 21
INITIAL INVESTMENT I N INFRASTRUCTURE , SORTING EQUIPMENT , SOFTWARE, 22
TRANSPORTATION , AND OTHER START–UP EXPENSES; AND 23
(6) MET ANY OTHER REQUIREMENTS SET BY THE DEPARTMENT . 24
(C) THE DEPARTMENT MAY RENEW THE APPROVAL OF A BEVERAGE 25
CONTAINER STEWARDSHI P ORGANIZATION AS A SYSTEM OPERATOR UNDER 26
SUBSECTION (B) OF THIS SECTION IF THE BEVERAGE CONTAIN ER STEWARDSHIP 27
ORGANIZATION CONTINUES TO MEET TH E REQUIREMENTS OF TH IS SECTION AND 28
ANY OTHER REQUIREMEN T SET BY THE DEPARTMENT . 29
(D) (1) THE DEPARTMENT SHALL REVO KE THE APPROVAL OF A 30
BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION AS A SYSTEM OPERATOR IF 31
THE DEPARTMENT DETERMINES THAT THE BEVERAGE CONTAINER S TEWARDSHIP 32
ORGANIZATION : 33
26 HOUSE BILL 735
(I) FAILED TO MEET THE REQUIREM ENTS OF THIS SECTION; OR 1
(II) FAILED TO IMPLEMENT AND ADM INISTER AN APPROVED 2
BEVERAGE CONTAINER S TEWARDSHIP PLAN IN ACCORDANCE WITH § 9–1742 OF 3
THIS SUBTITLE. 4
(2) IF THE DEPARTMENT REVOKES THE APPROVAL OF A BEVERA GE 5
CONTAINER STEWARDSHI P ORGANIZATION AS A SYSTEM OPERATOR UNDER 6
PARAGRAPH (1) OF THIS SUBSECTION : 7
(I) THE DEPARTMENT MAY APPROV E ONE OR MORE 8
ADDITIONAL BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT IONS TO CARRY OUT 9
THE RESPONSIBILITIES OF THE BEVERAGE CONT AINER STEWARDSHIP 10
ORGANIZATION THAT WAS REVOKED AS A SYSTEM OPERATOR , SUBJECT TO ONE OR 11
MORE OF THE ADDITIONAL BEVERAGE CONTAINER STEWARDSHI P ORGANIZATIONS 12
MEETING THE REQUIREMENTS SPECIFI ED IN SUBSECTION (B) OF THIS SECTION; AND 13
(II) THE TRUSTEE OR ESCROW AGENT OF THE TRUST FUND OR 14
ESCROW ACCOUNT ESTABLISHED IN THE B EVERAGE CONTAINER ST EWARDSHIP 15
PLAN UNDER § 9–1742(A)(3)(VI) OF THIS SUBTITLE SHALL: 16
1. RECEIVE ALL PAYMENTS DIRECTLY FR OM 17
PRODUCERS THAT WOULD HAVE BEEN PAID TO THE BEVERAGE CONTAINER 18
STEWARDSHIP ORGANIZA TION; 19
2. DEPOSIT THE PAYMENTS RECEIVED UNDER ITEM 1 OF 20
THIS ITEM INTO THE TRUST FUND OR ESCROW ACCOUNT; AND 21
3. MAKE PAYMENTS FROM THE TRUST FUND OR ESCROW 22
ACCOUNT AS DIRECTED BY THE DEPARTMENT TO IMPLEME NT THE REQUIREMENTS 23
OF THIS PART. 24
9–1742. 25
(A) (1) ON OR BEFORE MARCH 1, 2026, EACH BEVERAGE CONTAINER 26
STEWARDSHIP ORGANIZA TION SHALL SUBMIT A BEVERAGE CONTAINER 27
STEWARDSHIP PLAN TO THE DEPARTMENT . 28
(2) A BEVERAGE CONTAINER S TEWARDSHIP PLAN SHAL L: 29
(I) IDENTIFY AND INCLUDE THE CONTACT INFORMAT ION FOR 30
EACH PRODUCER INTEND ED TO BE COVERED UND ER THE PLAN; 31
HOUSE BILL 735 27
(II) IDENTIFY EACH BRAND O F REDEEMABLE BEVERAG E 1
CONTAINER INTENDED TO BE SOLD UNDER THE PLAN, INCLUDING THE SIZE A ND 2
MATERIAL OF THE REDE EMABLE BEVERAGE CONT AINERS FOR EACH BRAN D AND 3
WHETHER THE REDEEMAB LE BEVERAGE CONTAINE RS ARE REFILLABLE ; 4
(III) DESCRIBE: 5
1. THE FINANCING INFORMA TION SPECIFIED IN 6
PARAGRAPH (3) OF THIS SUBSECTION ; 7
2. HOW THE PERFORMANCE T ARGETS WILL BE MET O R 8
EXCEEDED FOR THE 5–YEAR PERIOD FOLLOWIN G THE YEAR IN WHICH THE PLAN IS 9
APPROVED; 10
3. HOW STAKEHOLDER COMME NTS WERE CONSIDERED 11
AND REFLECTED IN THE DEVELOPMENT OF THE P LAN, INCLUDING THE ROLE O F 12
RETAILERS, DISTRIBUTORS , AND LOCAL GOVERNMENT S IN PLAN IMPLEMENTA TION; 13
4. THE ADMINISTRATION AN D IMPLEMENTATION OF 14
THE PLAN, INCLUDING ANY STAFFI NG THAT WILL BE NECE SSARY FOR THESE 15
PURPOSES; 16
5. THE ACTIONS THAT HAVE BEEN TAKEN AND THAT 17
WILL BE TAKEN FOR PU BLIC OUTREACH , EDUCATION, AND COMMUNICATION , 18
INCLUDING MESSAGING AND IDENTIFICATION O F TARGET AUDIENCES ; AND 19
6. THE ANTICIPATED INVES TMENTS THAT WILL BE 20
MADE TO IMPROVE THE REUSE OF BEVERAGE CO NTAINERS, INCLUDING THE 21
SOURCE OF FUNDING FOR THE INVESTMENTS ; 22
(IV) LIST THE STAKEHOLDERS CONSULTED IN DEVELOP ING THE 23
PLAN; 24
(V) PROVIDE THE ANTICIPAT ED COSTS OF IMPLEMEN TING THE 25
PLAN FOR 5 YEARS, BROKEN DOWN BY YEAR ; 26
(VI) INCLUDE A CLOSURE AND TRANSFER PLAN FOR HANDLING 27
THE AFFAIRS OF THE B EVERAGE CONTAINER ST EWARDSHIP ORGANIZATI ON THAT 28
ENSURES THAT EACH PRODUCER INTEND ED TO BE COVERED UND ER THE BEVERAGE 29
CONTAINER STEWARDSHI P PLAN CAN FULFILL THE PRODUCER’S OBLIGATIONS IN 30
THE EVENT THAT THE BEVERAGE CO NTAINER STE WARDSHIP ORGANIZATIO N 31
DISSOLVES OR HAS ITS APPROVAL AS A SYSTEM OPERATOR REVOKED UNDER § 32
9–1741 OF THIS SUBTITLE ; AND 33 28 HOUSE BILL 735
(VII) INCLUDE ANY OTHER INF ORMATION REQUESTED B Y THE 1
DEPARTMENT . 2
(3) THE FINANCING INFORMA TION INCLUDED IN A B EVERAGE 3
CONTAINER STEWARDSHIP PLAN SHA LL: 4
(I) EXPLAIN THE FINANCING FOR DIRECT INVESTMEN TS OR 5
REIMBURSEMENTS THAT WILL IMPROVE INFRAST RUCTURE IN A MANNER THAT 6
SUPPORTS REDEMPTION SERVICES AND TECHNOL OGIES; 7
(II) ESTABLISH A FEE STRUC TURE IN ACCORDANCE W ITH 8
PARAGRAPH (4) OF THIS SUBSECTION F OR PRODUCERS PARTICI PATING IN A 9
BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION; 10
(III) DESCRIBE THE COSTS OF MEETING THE PERFORMA NCE 11
TARGETS; 12
(IV) DESCRIBE THE INCENTIV ES USED TO ENCOURAGE 13
PRODUCERS TO : 14
1. INVEST IN REUSABLE AND REFILLA BLE BEVERAGE 15
CONTAINER SYSTEMS ; AND 16
2. REDESIGN BEVERAGE CON TAINERS TO BE EASIER 17
AND LESS COSTLY TO R ECYCLE; 18
(V) CREATE INCENTIVES FOR PRODUCERS TO USE A 19
MARYLAND–SPECIFIC UPC BARCODE TO REDUCE FR AUDULENT REDEMPTION ; 20
(VI) ESTABLISH A TRUST FUN D OR AN ESCROW ACCOU NT IN THE 21
STATE INTO WHICH A BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION SHALL 22
DEPOSIT ALL UNEXPEND ED FUNDS FOR USE IN ACCORDANCE WITH THIS SECTION IN 23
THE EVENT THAT THE BEVERAGE CONTAIN ER STEWARDSHIP ORGAN IZATION 24
DISSOLVES OR HAS ITS APPROVAL AS A SYSTEM OPERATOR REVOKED BY THE 25
DEPARTMENT UNDER § 9–1741 OF THIS SUBTITLE; AND 26
(VII) MEET ANY OTHER REQUIR EMENTS ESTABLISHED B Y THE 27
DEPARTMENT . 28
(4) (I) THE FEE STRUCTURE REQUIRED UNDER PARAGRAPH (3) OF 29
THIS SUBSECTION FOR PRODUCERS PARTICIPAT ING IN A BEVERAGE CO NTAINER 30
STEWARDSHIP ORGANIZA TION SHALL BE: 31 HOUSE BILL 735 29
1. SET IN A MANNER THAT COVERS THE COSTS OF 1
ADMINISTERING A BEVE RAGE CONTAINER STEWA RDSHIP ORGANIZATION AND 2
IMPLEMENTING THE BEVER AGE CONTAINER STEWAR DSHIP PLAN; AND 3
2. BASED ON: 4
A. THE COSTS ASSOCIATED WITH TRANSPORTING , 5
COLLECTING, AND PROCESSING EACH TYPE OF REDEEMABLE B EVERAGE 6
CONTAINER MATERIAL ; 7
B. WHETHER A PRODUCER ’S REDEEMABLE BEVERAG E 8
CONTAINERS ARE REFILLABLE ; 9
C. WHETHER A PRODUCER ’S EMPTY REDEEMABLE 10
BEVERAGE CONTAINERS ARE EASY TO RECYCLE ; 11
D. WHETHER A PRODUCER ’S REDEEMABLE BEVERAGE 12
CONTAINERS HAVE A MARYLAND–SPECIFIC UPC BARCODE; 13
E. A PRODUCER’S PORTION, BY MATERIAL TYPE , OF 14
REDEEMABLE BEVERAGE CONTAINERS SOLD IN T HE STATE DURING THE PREV IOUS 15
CALENDAR YEAR ; AND 16
F. ANY OTHER FACTOR THE DEPARTMENT DETERMINES 17
IS NECESSARY TO SUPP ORT THE PROGRAM. 18
(II) 1. EXCEPT AS PROVIDED IN § 9–1741(D)(2) OF THIS 19
SUBTITLE, A PRODUCER PARTICIPATING IN A B EVERAGE CONTAINER ST EWARDSHIP 20
ORGANIZATION SHALL P AY THE FEE ESTABLISH ED UNDER PARAGRAPH (3) OF THIS 21
SUBSECTION TO THE BE VERAGE CONTAINER STE WARDSHIP ORGANIZATIO N. 22
2. A BEVERAGE CONTAINER S TEWARDSHIP 23
ORGANIZATION SHALL D EPOSIT FEES RECEIVED UNDER THI S SUBPARAGRAPH TO AN 24
ACCOUNT HELD BY THE BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION. 25
3. A BEVERAGE CONTAINER S TEWARDSHIP 26
ORGANIZATION MAY USE THE FEES RECEIVED UN DER THIS SUBPARAGRAP H ONLY 27
FOR IMPLEMENTING THE BEVERAGE CONTAINER S TEWARDSHIP PLAN . 28
(5) THE DEPARTMENT SHALL SUBM IT A BEVERAGE CONTAI NER 29
STEWARDSHIP PLAN TO AN INDEPENDENT FINAN CIAL AUDITOR TO ENSU RE THAT 30 30 HOUSE BILL 735
THE FINANCING PROPOS ED IN THE PLAN WILL COVER THE COSTS OF I MPLEMENTING 1
THE PLAN. 2
(B) (1) (I) WITHIN 120 DAYS AFT ER RECEIPT OF A BEVE RAGE 3
CONTAINER STEWARDSHI P PLAN SUBMITTED TO THE DEPARTMENT UNDER THIS 4
SECTION, THE DEPARTMENT SHALL APPR OVE, APPROVE WITH CONDITI ONS, OR 5
DENY THE PLAN . 6
(II) IN DETERMINING WHETHE R TO APPROVE , APPROVE WITH 7
CONDITIONS, OR DENY A BEVE RAGE CONTAINER STEWA RDSHIP PLAN , THE 8
DEPARTMENT SHALL : 9
1. CONSIDER WHETHER : 10
A. THE PLAN COMPLIES WIT H THE REQUIREMENTS O F 11
THIS SECTION; AND 12
B. THERE WAS SUFFICIENT ENGAGEMENT WITH 13
STAKEHOLDERS , INCLUDING LOCAL GOVE RNMENTS, RETAILERS, DISTRIBUTORS, 14
AND ON–PREMISES SELLERS , IN DEVELOPING THE PL AN; AND 15
2. CONSULT WITH THE ADVISORY COUNCIL. 16
(2) (I) THE DEPARTMENT MAY RESCIN D APPROVAL OF A 17
BEVERAGE CONTAINER S TEWARDSHIP PLAN FOR GOOD CAUSE. 18
(II) A BEVERAGE CONTAINER S TEWARDSHIP ORGANIZ ATION 19
MAY AMEND A RESCINDE D BEVERAGE CONTAINER STEWARDSHIP PLAN AND SUBMIT 20
THE AMENDED PLAN TO THE DEPARTMENT FOR APPROV AL. 21
(3) (I) A BEVERAGE CONTAINER S TEWARDSHIP PLAN APPR OVED 22
BY THE DEPARTMENT MAY BE AME NDED WITH APPROVAL O F THE DEPARTMENT . 23
(II) THE DEPARTMENT MAY REQUIR E THAT AN APPROVED 24
BEVERAGE CONTAINER S TEWARDSHIP PLAN BE A MENDED IF THE REPORT 25
SUBMITTED UNDER § 9–1743 OF THIS SUBTITLE REF LECTS THAT THE 26
PERFORMANCE TARGETS HAVE NOT BEEN MET . 27
(C) AN APPROVED BEVERAGE CONTAINER STEWARDSHI P PLAN EXPIRES AT 28
THE END OF 5 YEARS. 29
HOUSE BILL 735 31
(D) (1) A BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION SHALL 1
IMPLEMENT AND ADMINI STER A BEVERAGE CONT AINER STEWARDSHIP PL AN 2
WITHIN 6 MONTHS AFTER THE PLA N IS APPROVED. 3
(2) IN IMPLEMENTING AND A DMINISTERING A BEVER AGE CONTAINER 4
STEWARDSHIP PLAN , A BEVERAGE CONTAINER STEWARDSHIP ORGANIZA TION 5
SHALL: 6
(I) FACILITATE LOGISTICS , THE INITIATION OF DE POSITS, AND 7
THE ISSUANCE OF REFU NDS UNDER THE PLAN ; 8
(II) COORDINATE THE LOGIST ICS FOR COLLECTING 9
REDEEMABLE BEVERAGE CONTAINERS FROM AN ON –PREMISES SELLER ; 10
(III) ESTABLISH PROCEDURES FOR TRACKING REDEEMA BLE 11
BEVERAGE CONTAINERS SOLD IN THE STATE; 12
(IV) DESIGN AND OPERATE SE RVICES FOR THE 13
TRANSPORTATION AND P ROCESSING OF REDEEMA BLE BEVERAGE CONTAIN ERS; 14
(V) DEVELOP AN D IMPLEMENT A PLAN F OR ESTABLISHING , 15
OPERATING, AND MANAGING REDEMPT ION FACILITIES THAT WILL OFFER A WIDE 16
RANGE OF CONVENIENT REDEMPTION LOCATIONS AND TECHNOLOGIES THA T ARE 17
EASY TO USE, ACCESSIBLE, AND MEET OR EXCEED T HE CONVENIENCE STAND ARDS 18
ESTABLISHED B Y THE DEPARTMENT UNDER § 9–1747 OF THIS SUBTITLE; 19
(VI) DEVELOP AND IMPLEMENT A PLAN FOR THE DISTR IBUTION, 20
OPERATION, AND MAINTENANCE OF B EVERAGE CONTAINER RE DEMPTION AND 21
PROCESSING METHODS , INCLUDING REVERSE VE NDING MACHINES , BAG DROP 22
PROGRAM S, AND ACCOUNT–BASED BULK PROCESSIN G PROGRAMS ; 23
(VII) DEVELOP ACCOUNTING AN D CONTROL STANDARDS ; 24
(VIII) IMPLEMENT ACCOUNTING , AUDIT, PAYMENT, AND 25
REPORTING PROCEDURES ; 26
(IX) ESTABLISH A HIGH –VOLUME VALIDATION AN D AUDIT 27
SYSTEM TO PAY A BULK RATE TO AN ON–PREMISES SELLER FOR T HE REDEMPTION 28
OF EMPTY REDEEMABLE BEVERAGE CONTAINERS ; 29
(X) ESTABLISH AN APPLICAT ION PROCESS FOR LARG E 30
ON–PREMISES SELLERS TO APPLY FOR AND RECEIV E A BULK RATE FOR TH E 31
REDEMPTION OF HIGH V OLUMES OF EMPTY REDE EMABLE BEVERAGE CONTAINERS; 32 32 HOUSE BILL 735
(XI) MARKET REDEEMABLE BEV ERAGE CONTAINER MATE RIALS 1
FOR REUSE IN THE MAN UFACTURING OF SIMILA R PRODUCTS; 2
(XII) FUND A MARKETING PROG RAM TO EDUCATE THE P UBLIC 3
ABOUT THE PROGRAM; 4
(XIII) ESTABLISH A SYSTEM FO R REPORTING KEY INFO RMATION 5
GATHERED BY THE PROGRAM TO THE DEPARTMENT ON A QUART ERLY BASIS; AND 6
(XIV) CREATE INCENTIVES FOR THE DEVELOPMENT OF 7
REFILLABLE AND REUSA BLE BEVERAGE CONTAIN ER SYSTEMS. 8
(3) ON REQUEST OF THE DEPARTMENT , A BEVERAGE CONTAINER 9
STEWARDSHIP ORGANIZA TION SHALL SUBMIT A COPY OF ITS FINANCIAL RECORD S 10
TO THE DEPARTMENT FOR A FINA NCIAL AUDIT. 11
9–1743. 12
(A) THIS SECTION APPLIES TO A BEVERAGE CONTAI NER STEWARDSHIP 13
ORGANIZATION THAT HAS A BEVERAGE CONTAINER STEWARDSHIP PLAN APP ROVED 14
BY THE DEPARTMENT UNDER § 9–1742 OF THIS SUBTITLE. 15
(B) (1) ON OR BEFORE APRIL 1 EACH YEAR, BEGINNING IN 2028, A 16
BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION SHALL SUBMIT A R EPORT TO 17
THE DEPARTMENT ON THE PRO GRESS MADE IN THE PR ECEDING CALENDAR YEA R 18
TOWARD MEETING THE P ERFORMANCE TAR GETS AND THE GOALS O F THE PROGRAM 19
AND THE BEVERAGE CON TAINER STEWARDSHIP O RGANIZATION’S BEVERAGE 20
CONTAINER STEWARDSHI P PLAN. 21
(2) THE DEPARTMENT SHALL PROV IDE THE ADVISORY COUNCIL 22
WITH A COPY OF EACH REPORT SUBMITTED UND ER THIS SUBSECTION . 23
(C) THE REPORT SUBMITTED UNDER S UBSECTION (B) OF THIS SECTION 24
SHALL INCLUDE , FOR THE PRECEDING CA LENDAR YEAR : 25
(1) THE PROGRESS MADE TOW ARD ACHIEVING THE PE RFORMANCE 26
TARGETS; 27
(2) IF THE PERFORMANCE TA RGETS WERE NOT ACHIE VED, A 28
DESCRIPTION OF THE A CTIONS PROPOSED TO ACHIEVE THE PERFO RMANCE 29
TARGETS; 30
HOUSE BILL 735 33
(3) THE NUMBER OF REDEEMA BLE BEVERAGE CONTAIN ERS SOLD IN 1
THE STATE; 2
(4) THE NUMBER OF REDEEMA BLE BEVERAGE CONTAIN ERS SOLD IN 3
THE STATE SORTED BY MATER IAL TYPE, REFUND VALUE , AND WHETHER THE 4
CONTAINER CAN BE REFILLED OR REUSED ; 5
(5) THE NUMBER OF EMPTY REDEEMABLE BEVERAGE CONTAINERS 6
REDEEMED ; 7
(6) THE NUMBER OF EMPTY REDEEMABLE BEVERAGE CONTAINERS 8
REDEEMED AT EACH RED EMPTION FACILITY , REVERSE VENDING MACH INE, BAG 9
DROP PROGRAM, ACCOUNT–BASED BULK PROCESSIN G PROGRAM , OR OTHER 10
BEVERAGE CONTAINER REDEMPTION AND PROCESSING METHOD SORTED BY 11
MATERIAL TYPE , REFUND VALUE , AND WHETHER THE EMPTY REDEEMABLE 12
BEVERAGE CONTAINER C AN BE REFILLED OR RE USED; 13
(7) THE REDEMPTION RATE A ND RECYCLI NG RATE FOR 14
NONREFILLABLE REDEEM ABLE BEVERAGE CONTAI NERS SOLD IN THE STATE 15
SORTED BY MATERIAL T YPE, NUMBER OF CONTAINERS SOLD, AND CONTAINER 16
WEIGHT; 17
(8) THE AMOUNT OF EACH TY PE OF: 18
(I) REDEEMABLE BEVERAGE C ONTAINER MATERIAL 19
COLLECTED IN THE STATE; AND 20
(II) SCRAP MATERIAL SOLD B Y A BEVERAGE CONTAINER 21
STEWARDSHIP ORGANIZA TION; 22
(9) THE LOCATION OF EACH REDEMPTION FACILITY IN THE STATE 23
AND THE REDEMPTION METHOD USED AT EACH REDEMPT ION FACILITY; 24
(10) A DESCRIPTION OF ANY I MPROVEMENTS MADE TO MAKE 25
RETURNING EMPTY REDEEMABLE BEVERAGE CONTAINERS EASIER AN D MORE 26
CONVENIENT ; 27
(11) THE IDENTIFICATION AN D DESCRIPTION OF ARE AS THAT DO NOT 28
HAVE READILY AVAILAB LE OPTIONS FOR REDEE MING AN EMPTY REDEEMABLE 29
BEVERAGE CONTAINER A ND ACTIONS THE BEVER AGE CONTAI NER STEWARDSHIP 30
ORGANIZATION WILL TA KE TO IMPROVE OPTION S IN THESE AREAS; 31
34 HOUSE BILL 735
(12) THE NUMBER OF CONSUME R COMPLAINTS PER MON TH, SORTED 1
BY REDEMPTION FACILI TY; 2
(13) THE NUMBER OF INDIVID UALS AND ORGANIZATIO NS WITH 3
ACCOUNTS ESTABLISHED FOR THE RECEIPT OF E LECTRONIC DEPOSITS O R 4
REFUNDS; 5
(14) THE TOTAL COST OF IMP LEMENTING THE BEVERA GE CONTAINER 6
STEWARDSHIP PLAN , AS DETERMINED BY AN INDEPENDENT FINANCIA L AUDITOR 7
UNDER § 9–1742(A)(5) OF THIS SUBTITLE; 8
(15) THE AVERAGE COST OF P ROCESSING A N EMPTY REDEEMED 9
REDEEMABLE BEVERAGE CONTAINER; 10
(16) A COPY OF THE AUDIT CO NDUCTED UNDER § 9–1742(A)(5) OF 11
THIS SUBTITLE; 12
(17) FINANCIAL STATEMENTS DETAILING ALL DEPOSI TS RECEIVED 13
AND REFUNDS ISSUED B Y EACH PRODUCER COVE RED UNDER THE BEVERA GE 14
CONTAINER STEWARDSHIP PLAN ; 15
(18) THE TOTAL AMOUNT OF D EPOSITS INITIATED , REFUNDS ISSUED , 16
AND UNCLAIMED DEPOSI TS COLLECTED UNDER T HE BEVERAGE CONTAINE R 17
STEWARDSHIP PLAN ; 18
(19) AN ACCOUNTING OF ALL ACTIVITIES AND INVES TMENTS 19
FINANCED BY UNCLAIME D DEPOSITS; 20
(20) EXPENDITURES AND REVE NUES SORTED BY SOURC E, INCLUDING 21
FEES PAID UNDER § 9–1742(A)(4) OF THIS SUBTITLE , REVENUE FROM THE SAL E OF 22
SCRAP MATERIALS , AND UNCLAIMED DEPOSI TS; 23
(21) SAMPLES OF ALL EDUCAT IONAL MATERIALS PROV IDED TO 24
CONSUMERS , RETAILERS, AND OTHER ENTITIES; 25
(22) A DETAILED DESCRIPTION OF INVESTMENTS MADE IN NEW 26
REDEMPTION FACILITIE S AND REDEMPTION METHODS; 27
(23) THE LOCATION OF NEW R EDEMPTION FACILITIES AND 28
REDEMPTION METHODS; 29
(24) A DETAILED DESCRIPTION OF CHANGES MADE BY P RODUCERS TO 30
INCREASE THE RECYCLAB ILITY OF REDEEMABLE BEVERAGE CONTAINERS ; 31 HOUSE BILL 735 35
(25) A DETAILED DESCRIPTION OF ANY INCIDENTS OF FRAUD AND 1
EFFORTS TAKEN TO PRE VENT FRAUD; AND 2
(26) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT . 3
(D) THE FINANCIAL , PRODUCTION , AND SALES DATA OF INDIVIDUA L 4
PRODUCERS REPORTED T O THE DEPARTMENT UNDER THIS SECTION SHALL BE 5
KEPT CONFIDENTIAL BY THE DEPARTMENT AND THE ADVISORY COUNCIL. 6
(E) THE DEPARTMENT SHALL POST THE REPORT SUBMITTED UNDER THIS 7
SECTION ON THE DEPARTMENT ’S WEBSITE IN A MANNE R THAT PROTECTS THE 8
CONFIDENTIALITY OF T HE DATA SPECIFIED UN DER SUBSECTION (D) OF THIS 9
SECTION. 10
9–1744. 11
(A) THE DEPARTMENT SHALL ESTA BLISH A PROCESS FOR A COUNTY OR 12
MUNICIPAL CORPORATIO N TO CREATE A REDEMP TION FACILITY. 13
(B) EMPTY REDEEMABLE BEVERAGE CONTAINERS REDEEMED AT A 14
REDEMPTION FACILITY MANAGED BY A COUNTY OR MUNICIPAL CORPORA TION 15
SHALL BE CREDITED TO WARD MEETING THE REC YCLING RATES REQUIRE D UNDER § 16
9–505 OF THIS TITLE. 17
(C) (1) THROUGH DECEMBER 31, 2029, A PORTION OF PROGRAM 18
REVENUES SHALL BE US ED TO COMPENSATE A C OUNTY OR MUNICIPAL 19
CORPORATION FOR ANY NET LOSS OF REVENUE TO THE COUNTY ’S OR MUNICIPAL 20
CORPORATION ’S WASTE MANAGEMENT S YSTEM THAT CAN BE DOCUMENT ED AND 21
ATTRIBUTED TO THE PROGRAM. 22
(2) IN DETERMINING A NET LOSS OF REVENUE , A COUNTY OR 23
MUNICIPAL CORPORATIO N SHALL CONSIDER : 24
(I) THE LOSS OF REVENUE F ROM THE SALE OF SCRA P 25
MATERIALS; 26
(II) FINANCIAL SAVINGS FRO M A REDUCTION I N: 27
1. GLASS BOTTLES IN THE RECYCLING STREAM ; 28
2. TRANSPORTATION COSTS ASSOCIATED WITH 29
CURBSIDE COLLECTION OF TRASH AND RECYCLI NG; 30 36 HOUSE BILL 735
3. PROCESSING COSTS ASSO CIATED WITH RECYCLIN G 1
BEVERAGE CONTAINERS ; 2
4. THE COSTS OF LANDFILL ING AND INCINERA TING 3
BEVERAGE CONTAINERS THAT ARE NOT RECYCLE D; AND 4
5. THE COSTS OF LITTER C OLLECTION; AND 5
(III) FOR A COUNTY OR MUNIC IPAL CORPORATION THA T HAS A 6
TOTAL MAXIMUM DAILY LOAD FOR TRASH IN A WATERWAY UNDER ITS 7
JURISDICTION, THE REDUCED COSTS AN D INCREASED BENEFITS OF COMP LYING 8
WITH THE TOTAL MAXIM UM DAILY LOAD DUE TO A REDUCTION IN BEVER AGE 9
CONTAINER LITTER . 10
9–1745. 11
FUNDING FOR THE PROGRAM SHALL : 12
(1) INCLUDE: 13
(I) REDEEMABLE BEVERAGE C ONTAINER S TEWARDSH IP 14
ORGANIZATION FEES CO LLECTED UNDER § 9–1742 OF THIS SUBTITLE; 15
(II) REVENUE FROM THE SALE OF RAW MATERIALS ; 16
(III) UNCLAIMED DEPOSITS CO LLECTED UNDER § 9–1739 OF 17
THIS SUBTITLE; 18
(IV) REGISTRATION FEES COL LECTED UNDER § 9–1740 OF THIS 19
SUBTITLE; AND 20
(V) PENALTIES COLLECTED U NDER § 9–1750 OF THIS 21
SUBTITLE; AND 22
(2) BE USED IN ACCORDANCE WITH §§ 9–1707(F), 9–1739, 9–1740, 23
AND 9–1750 OF THIS SUBTITLE. 24
9–1746. 25
(A) THERE IS A BEVERAGE CONTAINER RECYCLING REFUND GRANT 26
PROGRAM. 27
HOUSE BILL 735 37
(B) THE PURPOSE OF THE GRANT PROGRAM IS TO PROVIDE FUNDING FOR 1
PROJECTS THAT : 2
(1) INCREASE THE REUSE AN D RECYCLING OF BEVER AGE 3
CONTAINERS IN THE STATE; 4
(2) INCREASE THE AVAILABI LITY OF PUBLIC WATER FOUNTAINS AND 5
REFILL STATIONS IN T HE STATE; AND 6
(3) REDUCE THE VOLUME OF LITTER FROM BEVERAGE CONTAINERS 7
IN THE STATE. 8
(C) THE DEPARTMENT SHALL ADMI NISTER THE GRANT PROGRAM. 9
(D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE GRANT 10
PROGRAM SHALL BE FUND ED FROM A PORTION OF THE UNCLAIMED DEPOSI TS 11
TRANSFERRED TO THE S EPARATE ACCOUNT ESTABLISHED UNDER § 9–1707(F)(7) OF 12
THIS SUBTITLE. 13
(2) THE GRANT PROGRAM MAY AWARD UP TO $5,000,000 IN GRANTS 14
EACH YEAR FROM THE U NCLAIMED DEPOSITS TR ANSFERRED TO THE SEP ARATE 15
ACCOUNT ESTABLISHED UNDER § 9–1707(F)(7) OF THIS SUBTITLE. 16
(E) THE FOLLOWI NG ENTITIES ARE ELIG IBLE FOR A GRANT UND ER THE 17
GRANT PROGRAM: 18
(1) A SCHOOL OR AN INSTITU TION OF HIGHER EDUCA TION; 19
(2) A NONPROFIT ORGANIZATI ON; 20
(3) A COUNTY OR MUNICIPAL CORPORATION ; 21
(4) A FOR–PROFIT ORGANIZATION ; AND 22
(5) A PUBLIC–PRIVATE PARTNERSHIP. 23
(F) THE DEPARTMENT , IN CONSULTATION WITH THE ADVISORY COUNCIL, 24
SHALL ADOPT REGULATI ONS ESTABLISHING : 25
(1) AN APPLICATION PROCES S FOR AN ENTITY TO A PPLY FOR A 26
GRANT; 27
(2) THE CRITERIA FOR EVAL UATING AND AWARDING GRANTS; 28 38 HOUSE BILL 735
(3) REPORTING AND EVALUATION REQUIREME NTS FOR A GRANT 1
AWARDED UNDER THIS S ECTION; AND 2
(4) ANY OTHER REQUIREMENT S THE DEPARTMENT DETERMINES 3
ARE NECESSARY FOR AD MINISTERING AND IMPL EMENTING GRANTS AWAR DED 4
UNDER THE GRANT PROGRAM. 5
(G) THE DEPARTMENT SHALL BEGI N AWARDING GRANTS ON OR BEFORE 6
JANUARY 1, 2028. 7
9–1747. 8
IN ADDITION TO THE DU TIES AND REQUIREMENT S SPECIFIED IN THIS PART, 9
THE DEPARTMENT SHALL : 10
(1) IN CONSULTATION WITH THE ADVISORY COUNCIL: 11
(I) ESTABLISH CONVENIENCE STANDARDS FOR THE CO VERAGE 12
AND AVAILAB ILITY OF REDEMPTION OPTIONS ACROSS THE STATE; AND 13
(II) ENSURE THE CONVENIENC E STANDARDS PROVIDE 14
ACCESSIBLE REDEMPTIO N OPTIONS FOR DIFFER ENTLY ABLED PEOPLE A ND PEOPLE 15
WHO LIVE IN RURAL AR EAS OR LOW–INCOME COMMUNITIES O F COLOR; AND 16
(2) ESTABLISH A SY STEM FOR LARGE ON –PREMISES SELLERS TO 17
VERIFY THE SOURCE OF THE HIGH VOLUMES OF REDEEMABLE BEVERAGE 18
CONTAINERS REDEEMED BY THE ON–PREMISES SELLER . 19
9–1748. 20
(A) THERE IS A REDEEMABLE BEVERAGE CONTAINER RECYCLING 21
REFUND ADVISORY COUNCIL. 22
(B) THE ADVISORY COUNCIL CONSISTS OF T HE FOLLOWING MEMBERS , 23
DESIGNATED BY THE SECRETARY: 24
(1) ONE MEMBER REPRESENTI NG RECYCLING PROCESS ORS; 25
(2) ONE MEMBER REPRESENTI NG LOCAL GOVERNMENT AGENCIES 26
RESPONSIBLE FOR RECY CLING PROGRAMS ; 27
HOUSE BILL 735 39
(3) ONE MEMBER REPRESENTI NG GLASS MANUFACTURERS OR A 1
GLASS MANUFACTURING TRADE ORGANIZATION ; 2
(4) ONE MEMBER REPRESENTI NG ALUMINUM MANUFACT URERS OR 3
AN ALUMINUM MANUFACT URING TRADE ORGANIZA TION; 4
(5) ONE MEMBER REPRESENTI NG PLASTIC MANUFACTU RERS OR A 5
PLASTIC MANUFACTURIN G TRADE ORGANIZA TION; 6
(6) ONE MEMBER REPRESENTI NG BEVERAGE COMPANIE S; 7
(7) ONE MEMBER REPRESENTI NG PURCHASERS OF REC YCLED 8
CONTENT; 9
(8) ONE MEMBER REPRESENTI NG RETAILERS; 10
(9) ONE MEMBER REPRESENTI NG RESTAURANTS OR OTHER 11
ON–PREMISES SELLERS ; 12
(10) ONE MEMBER REPRESENTING REVERSE VENDING MACHINE 13
BUSINESSES; 14
(11) ONE MEMBER REPRESENTI NG ACCOUNT –BASED BULK 15
PROCESSORS ; 16
(12) ONE MEMBER REPRESENTI NG BUSINESSES INVOLV ED IN REUSE 17
AND REFILL SYSTEMS ; 18
(13) AT LEAST ONE MEMBER R EPRESENTING AN ENVIR ONMENTAL 19
ADVOCACY ORGANIZATION ; 20
(14) AT LEAST ONE MEMBER R EPRESENTING AN ENVIR ONMENTAL 21
JUSTICE ADVOCACY ORG ANIZATION; AND 22
(15) AT LEAST TWO MEMBERS WHO ARE MEMBERS OF T HE GENERAL 23
PUBLIC AND RESIDE IN THE STATE. 24
(C) THE SECRETARY SHALL DESIG NATE TWO COCHAIRS FR OM AMONG THE 25
MEMBERSHIP OF THE ADVISORY COUNCIL. 26
(D) THE DEPARTMENT SHALL PROV IDE STAFF FOR THE ADVISORY 27
COUNCIL. 28
40 HOUSE BILL 735
(E) A MEMBER OF THE ADVISORY COUNCIL: 1
(1) MAY NOT RECEIVE COMPE NSATION AS A MEMBER OF THE 2
ADVISORY COUNCIL; BUT 3
(2) IS ENTITLED TO REI MBURSEMENT FOR EXPEN SES UNDER THE 4
STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET . 5
(F) THE ADVISORY COUNCIL SHALL MEET : 6
(1) AT LEAST QUARTERLY EA CH YEAR; AND 7
(2) AS REQUESTED BY THE DEPARTMENT . 8
(G) THE ADVISORY COUNCIL SHALL: 9
(1) ADVISE THE DEPARTMENT ON DETERMI NING WHETHER TO 10
APPROVE A BEVERAGE C ONTAINER STEWARDSHIP PLAN; 11
(2) MAKE RECOMMENDATIONS TO THE DEPARTMENT ON THE 12
IMPLEMENTATION OF AP PROVED BEVERAGE CONT AINER STEWARDSHIP PL ANS; 13
(3) REVIEW AND ADVISE THE DEPARTMENT ON THE ANNUAL 14
REPORTS SUBMITTED UN DER § 9–1743 OF THIS SUBTITLE; AND 15
(4) ADVISE THE DEPARTMENT ON THE IMP LEMENTATION , 16
ADMINISTRATION , AND PERFORMANCE OF T HE PROGRAM. 17
9–1749. 18
THE DEPARTMENT SHALL ADOP T REGULATIONS ON OR BEFORE JUNE 1, 2025, 19
TO CARRY OUT THIS PART . 20
9–1750. 21
(A) EXCEPT AS PROVIDED IN SUBSECTIONS (C) AND (D) OF THIS SECTION , 22
THE PROVISIONS OF §§ 9–334 THROUGH 9–344 OF THIS TITLE APPLY TO ENFORCE 23
VIOLATIONS OF THIS P ART. 24
(B) A PENALTY MAY NOT BE I MPOSED ON A PRODUCER FOR FAILING TO 25
PROPERLY REGISTER WI TH THE DEPARTMENT UNDER § 9–1740 OF THIS SUBTITLE , 26
INCLUDING FAILING TO IDENTIFY EACH BRAND OF REDEEMABLE BEVERA GE 27 HOUSE BILL 735 41
CONTAINER THAT THE P RODUCER INTENDS TO S ELL, OFFER FOR SALE , OR 1
DISTRIBUTE IN THE STATE, UNLESS: 2
(1) THE DEPARTME NT FIRST ISSUES A WR ITTEN NOTICE OF THE 3
VIOLATION TO THE PRO DUCER; AND 4
(2) THE PRODUCER DOES NOT REGISTER WITHIN 90 DAYS AFTER 5
RECEIVING THE WRITTE N NOTICE. 6
(C) (1) A PERSON MAY NOT REDEE M, ATTEMPT TO REDEEM , RECEIVE, 7
STORE, TRANSPORT, DISTRIBUTE, OR OTHERWISE FACILITATE OR AID IN THE 8
REDEMPTION OF THE FO LLOWING MATERIALS WI TH AN INTENT TO DEFR AUD: 9
(I) AN EMPTY REDEEMABLE BEVERAGE CONTAINER THAT WAS 10
SOLD IN ANOTHER STAT E; 11
(II) AN EMPTY REDEEMABLE BEVERAGE CONTAINER THAT WAS 12
REJECTED FOR REDEMPT ION; 13
(III) LINE BREAKAGE ; 14
(IV) A PREVIOUSLY REDEEMED REDEEMABLE BEVERAGE 15
CONTAINER; OR 16
(V) ANOTHER INELIGIBLE MA TERIAL. 17
(2) A PERSON MAY NOT DISPO SE OF A REDEEMED RED EEMABLE 18
BEVERAGE CONTAINER I N A LANDFILL OR AN I NCINERATOR . 19
(3) THE DEPARTMENT SHALL ESTA BLISH ADMINISTRATIVE 20
PENALTIES FOR A VIOL ATION OF THIS SUBSEC TION THAT ARE BASED ON THE 21
NUMBER OF BEVERAGE C ONTAINERS AND REFUND AMOUNTS INVOLVED . 22
(D) (1) BEGINNING JANUARY 1, 2030, A PRODUCER OR BEVERA GE 23
CONTAINER STEWARDSHI P ORGANI ZATION THAT HAS NOT REACHED THE 24
REDEMPTION RATES EST ABLISHED IN § 9–1736 OF THIS SUBTITLE FOR THE 25
IMMEDIATELY PRECEDIN G 2 YEARS IS SUBJECT TO AN ADMINISTRATIVE PE NALTY. 26
(2) EACH YEAR THAT A PROD UCER OR BEVERAGE CON TAINER 27
STEWARDSHIP ORGANIZA TION DOES NO T MEET THE REDEMPTIO N RATES 28
ESTABLISHED IN § 9–1736 OF THIS SUBTITLE IS A SEPARATE VIOLATION UNDER THIS 29
SUBSECTION. 30
42 HOUSE BILL 735
(3) AN ADMINISTRATIVE PEN ALTY ASSESSED UNDER THIS 1
SUBSECTION SHALL EQU AL THE TOTAL NUMBER OF REDEEMABLE BEVERA GE 2
CONTAINERS NEEDED TO BE REDEEMED TO MEET THE REDEMPTION RATES 3
ESTABLISHED IN § 9–1736 OF THIS SUBTITLE, MINUS THE NUMBER OF REDEEMABLE 4
BEVERAGE CONTAINERS ACTUALLY REDEEMED , MULTIPLIED BY 10 CENTS. 5
(E) THE DEPARTMENT MAY ALTER THE ADMINISTRATIVE P ENALTIES 6
ASSESSED UNDER SUBSE CTIONS (C) AND (D) OF THIS SECTION AS N ECESSARY TO 7
ENSURE THAT THE PENA LTY AMOUNTS ASSESSED EXCEED THE COSTS OF 8
COMPLYING WITH THIS PART. 9
(F) PENALTIES COLLECTED U NDER THIS SECTION SH ALL BE: 10
(1) TRANSFERRED TO THE STATE RECYCLING TRUST FUND UNDER § 11
9–1707(F) OF THIS SUBTITLE; AND 12
(2) USED ONLY TO COVER TH E DEPARTMENT ’S COSTS OF PLANNING, 13
IMPLEMENTING , ADMINISTERING , MONITORING , ENFORCING, AND EVALUATING 14
THE PROGRAM. 15
9–1751. 16
A PRODUCER OR BEVERAGE CONTAINER STEWARDSHI P ORGANIZATION 17
PARTICIPATING IN A BEVERAGE CONTAINER STEWARDSHIP PLAN IN ACCORDANCE 18
WITH THIS SUBTITLE I S IMMUNE FROM LIABILITY UNDER STATE LAWS CONCERNING 19
ANTITRUST AND RESTRA INT OF TRADE FOR COO PERATIVE ACTIVITIES ASSOCIATED 20
WITH THE COLLECTION , TRANSPORT, PROCESSING, RECYCLING, REUSE, AND 21
MANAGEMENT OF EMPTY REDEEMABLE BEVERAGE CONTAINERS. 22
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 23
1, 2024. 24