EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0642*
SENATE BILL 642
M3 4lr2528
CF HB 735
By: Senators Brooks, Rosapepe, Muse, Waldstreicher, Gile, Carter, Kagan,
Jackson, Augustine, Kelly, Lewis Young, M. Washington, Hettleman, Lam,
Benson, and Elfreth
Introduced and read first time: January 29, 2024
Assigned to: Education, Energy, and the Environment
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
rates; establishing the Beverage Container Recycling Refund Grant Program to 29 2 SENATE BILL 642
increase the reuse and recycling of beverage containers in the State, increase the 1
availability of public water fountains and refill stations in the State, and reduce the 2
volume of litter from beverage containers in the State; establishing the Redeemable 3
Beverage Container Recycling Refund Advisory Council to review certain reports, 4
make certain recommendations, and advise the Department on certain matters; 5
providing immunity from liability to a certain producer or beverage container 6
stewardship organization under certain circumstances; and generally relating to the 7
Maryland Beverage Container Recycling Refund and Litter Reduction Program. 8
BY repealing and reenacting, without amendments, 9
Article – Environment 10
Section 9–1701(a) and (q) and 9–1702(a) 11
Annotated Code of Maryland 12
(2014 Replacement Volume and 2023 Supplement) 13
BY repealing and reenacting, with amendments, 14
Article – Environment 15
Section 9–1702(d) and 9–1707(f) 16
Annotated Code of Maryland 17
(2014 Replacement Volume and 2023 Supplement) 18
BY adding to 19
Article – Environment 20
Section 9–1733 through 9–1751 to be under the new part “Part V. Maryland 21
Beverage Container Recycling Refund and Litter Reduction Program” 22
Annotated Code of Maryland 23
(2014 Replacement Volume and 2023 Supplement) 24
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 25
That the Laws of Maryland read as follows: 26
Article – Environment 27
9–1701. 28
(a) In this subtitle the following words have the meanings indicated. 29
(q) “Recycling” means any process in which recyclable materials are collected, 30
separated, or processed and returned to the marketplace in the form of raw materials or 31
products. 32
9–1702. 33
(a) There is an Office of Recycling created within the Department. 34
(d) The Office shall: 35
SENATE BILL 642 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 SENATE BILL 642
(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
1. COVER THE COSTS OF AD MINISTERING, MONITORING , 31
EVALUATING, AND ENFORCING THE MARYLAND BEVERAGE CONTAINER 32 SENATE BILL 642 5
RECYCLING REFUND AND LITTER REDUCTION PROGRAM ESTABLISHED U NDER § 1
9–1735 OF THIS SUBTITLE ; 2
2. FUND THE BEVERAGE CONTAINER RECYCLING 3
REFUND GRANT PROGRAM ESTABLISHED U NDER § 9–1746 OF THIS SUBTITLE; 4
3. COMPENSATE LOCAL GOVE RNMENTS IN 5
ACCORDANCE WITH § 9–1744 OF THIS SUBTITLE; AND 6
4. MEET OR EXCEED THE PE RFORMANCE TARGETS 7
ESTABLISHED UNDER § 9–1736 OF THIS SUBTITLE. 8
[(7)] (8) (i) The Treasurer shall invest the money in the Fund in the 9
same manner as other State money may be invested. 10
(ii) Any investment earnings of the Fund shall be credited to the 11
General Fund of the State. 12
9–1731. RESERVED. 13
9–1732. RESERVED. 14
PART V. MARYLAND BEVERAGE CONTAINER RECYCLING REFUND AND LITTER 15
REDUCTION PROGRAM. 16
9–1733. 17
(A) IN THIS PART THE FOLL OWING WORDS HAVE THE MEANINGS 18
INDICATED. 19
(B) (1) “ACCOUNT–BASED BULK PROCESSIN G PROGRAM ” MEANS A 20
PROGRAM THAT : 21
(I) UTILIZES A SYSTEM OF CUSTOMER ACCOUNTS AN D A 22
MECHANISM TO ASSOCIA TE REDEEMED REDEEMAB LE BEVERAGE CONTAINE RS WITH 23
THE APPROPRIATE CUST OMER ACCOUNT ; 24
(II) CONSOLIDATES THE REDE EMED REDEEMABLE BEVE RAGE 25
CONTAINERS FOR BULK SORTING WHILE COLLEC TING DATA ABOUT THE 26
CONTAINERS; 27
(III) FULLY PREPARES REDEEM ED REDEEMABLE BEVERA GE 28
CONTAINERS FOR SALE TO RECYCLERS ; AND 29
6 SENATE BILL 642
(IV) COLLECTS DATA TO SUPP ORT AN ACCO UNTING OF THE 1
REDEEMABLE BEVERAGE CONTAINERS, INCLUDING THE DEPOSI TS, FEES, AND 2
POUNDS OF MATERIAL P RODUCED THAT ARE ASS OCIATED WITH THE RED EEMABLE 3
BEVERAGE CONTAINERS . 4
(2) “ACCOUNT–BASED BULK PROCESSIN G PROGRAM ” INCLUDES A 5
BAG DROP PROGRAM IF THE BAG D ROP PROGRAM IS A COM PONENT OF THE 6
ACCOUNT–BASED BULK PROCESSIN G PROGRAM. 7
(C) “ADVISORY COUNCIL” MEANS THE REDEEMABLE BEVERAGE 8
CONTAINER RECYCLING REFUND ADVISORY COUNCIL ESTABLISHED U NDER § 9
9–1748 OF THIS SUBTITLE . 10
(D) “BAG DROP PROGRAM ” MEANS A PROGR AM THAT ALLOWS A CUS TOMER 11
TO: 12
(1) DROP OFF EMPTY REDEEM ABLE BEVERAGE CONTAI NERS IN A BAG 13
OR OTHER RECEPTACLE AT ONE OR MORE LOCAT IONS FOR A REFUND ; AND 14
(2) HAVE THE CORRESPONDIN G REFUND PLACED INTO AN ACCOUNT 15
HELD FOR THE BENEFIT OF THE CUSTOMER IN A MANNER THAT ALLOWS T HE 16
CUSTOMER TO OBTAIN T HE REFUND OR REFUND RECEIPT WITHIN A SPE CIFIED 17
NUMBER OF DAYS AFTER THE DROP–OFF. 18
(E) (1) “BEVERAGE” MEANS ANY DRINKABLE LIQUID INTENDED FOR 19
HUMAN ORAL CONSUMPTI ON. 20
(2) “BEVERAGE” DOES NOT INCLUDE : 21
(I) DRUGS REGULATED UNDER THE FEDERAL FOOD, DRUG, 22
AND COSMETIC ACT; AND 23
(II) INFANT FORMULA . 24
(F) “BEVERAGE CONTAINER ” MEANS A BOTTLE , CAN, OR OTHER 25
CONTAINER THAT : 26
(1) HAS BEEN SEALED BY A MANUFACTURER ; 27
(2) IS MADE OF GLASS , METAL, OR PLASTIC; AND 28
(3) AT THE TIME OF SALE , CONTAINS 3 LITERS OR LESS OF A 29
BEVERAGE. 30 SENATE BILL 642 7
(G) “BEVERAGE CONTAINER RE DEMPTION AND PROCESS ING METHOD ” 1
MEANS A MANUAL OR TE CHNOLOGICAL METHOD F OR PROPERLY COLLECTI NG, 2
IDENTIFYING, COUNTING, OR PROCESSING EMPTY REDEEMABLE BEVERAGE 3
CONTAINERS FOR REDEM PTION. 4
(H) “BEVERAGE CONTAINER ST EWARDSHIP ORGANIZATI ON” MEANS A 5
NONPROFIT ORGANIZATI ON THAT IS: 6
(1) EXEMPT FROM TAXATION UNDER § 501(C)(3) OF THE INTERNAL 7
REVENUE CODE; AND 8
(2) CREATED BY PRODUCERS TO IMPLEMENT A BEVER AGE 9
CONTAINER STEWARDSHIP PL AN. 10
(I) “BEVERAGE CONTAINER ST EWARDSHIP PLAN ” MEANS A PLAN 11
SUBMITTED TO THE DEPARTMENT UNDER § 9–1742 OF THIS SUBTITLE. 12
(J) “DEPOSIT INITIATOR ” MEANS THE FIRST DIST RIBUTOR TO COLLECT A 13
DEPOSIT ON A BEVERAG E CONTAINER SOLD IN THE STATE. 14
(K) (1) “DISTRIBUTOR” MEANS A PERSON THAT SELLS BEVERAGES IN 15
REDEEMABLE BEVERAGE CONTAINERS TO A RETA ILER IN THE STATE. 16
(2) “DISTRIBUTOR” INCLUDES A PERSON TH AT MANUFACTURES AND 17
SELLS BEVERAGES IN R EDEEMABLE BEVERAGE C ONTAINERS TO A RETAI LER IN THE 18
STATE. 19
(3) “DISTRIBUTOR” DOES NOT INCLUDE AIR LINES OR SHIPPING 20
COMPANIES THAT TRANS PORT REDEEMABLE BEVE RAGE CONTAINERS . 21
(L) “GRANT PROGRAM” MEANS THE BEVERAGE CONTAINER RECYCLING 22
REFUND GRANT PROGRAM ESTABLISHED U NDER § 9–1746 OF THIS SUBTITLE. 23
(M) “LINE BREAKAGE ” MEANS A BEVERAGE CON TAINER THAT: 24
(1) BECOMES DEFECTIVE OR DAMAGED DURING MANUF ACTURING; 25
(2) IS NOT INTENDED TO BE SOLD; AND 26
(3) IS NOT ELIGIBLE FOR R EDEMPTION. 27
8 SENATE BILL 642
(N) “MARYLAND–SPECIFIC UPC BARCODE” MEANS A UNIVERSAL PR ODUCT 1
CODE THAT IS: 2
(1) UNIQUE TO BEVERAGE CO NTAINERS SOLD IN THE STATE; AND 3
(2) USED TO DETER FRAUD A ND ENSURE THE LEGITI MATE 4
REDEMPTION OF REDEEM ABLE BEVERAGE CONTAI NERS. 5
(O) (1) “ON–PREMISES SELLER ” MEANS A PERSON THAT SELLS FILLED 6
AND UNOPENED REDEEMA BLE BEVERAGE CONTAINE RS FOR ON –PREMISES 7
CONSUMPTION . 8
(2) “ON–PREMISES SELLER ” INCLUDES: 9
(I) BARS; 10
(II) HOTELS; 11
(III) RESTAURANTS ; 12
(IV) SPORTING VENUES ; 13
(V) ENTERTAINMENT VENUES ; AND 14
(VI) GAMING VENUES . 15
(P) “PERFORMANCE TARGETS ” MEANS THE TARGETS ES TABLISHED UNDER 16
§ 9–1736 OF THIS SUBTITLE. 17
(Q) (1) “PRODUCER” MEANS A PERSON RESPO NSIBLE FOR COMPLYING 18
WITH THE REQUIREMENT S UNDER THIS PART . 19
(2) “PRODUCER” INCLUDES A FRANCHISO R OF A FRANCHISE 20
LOCATED IN THE STATE. 21
(3) “PRODUCER” DOES NOT INCLUDE : 22
(I) THE STATE, A COUNTY, A MUNICIPAL CORPORAT ION, OR 23
ANY OTHER POLITICAL SUBDIVISION OF THE STATE; 24
(II) A CHARITABLE ORGANIZAT ION THAT IS TAX –EXEMPT 25
UNDER § 501(C)(3) OF THE INTERNAL REVENUE CODE; 26
SENATE BILL 642 9
(III) A SOCIAL WELFARE ORGAN IZATION THAT IS TAX –EXEMPT 1
UNDER § 501(C)(4) OF THE INTERNAL REVENUE CODE; 2
(IV) A FRANCHISEE THAT OPER ATES A FRANCHISE IN THE 3
STATE; 4
(V) A PERSON THAT ANNUALLY SELLS, OFFERS FOR SALE , 5
DISTRIBUTES, OR IMPORTS INTO THE COUNTRY FOR SALE IN THE STATE FEWER 6
THAN 1,000 REDEEMABLE BEVERAGE CONTAINERS; OR 7
(VI) A PERSON THAT ANNUALLY SELLS, OFFERS FOR SALE , OR 8
DISTRIBUTES IN THE STATE REDEEMABLE BEVE RAGE CONTAINERS THAT IN 9
AGGREGATE GENERATE L ESS THAN $5,000,000 EACH YEAR IN GLOBAL REVENUE. 10
(R) “PROGRAM” MEANS THE MARYLAND BEVERAGE CONTAINER 11
RECYCLING REFUND AND LITTER REDUCTION PROGRAM ESTABLISHED U NDER § 12
9–1735 OF THIS SUBTITLE . 13
(S) “RECYCLING RATE ” MEANS THE NUMBER OF NONREFILLABLE 14
REDEEMABLE BEVERAGE CONTAINERS SOLD IN T HE STATE THAT ARE REDEEM ED 15
AND RECYCLED SHOWN A S A PERCENTAGE OF AL L NONREFILLABLE REDE EMABLE 16
BEVERAGE CONTAINERS SOLD IN THE STATE. 17
(T) “REDEEM” MEANS THE RETURN OF AN EMPTY REDEEMABLE BEVERAGE 18
CONTAINER IN EXCHANG E FOR A REFUND , A VOUCHER FOR A REFU ND, OR A CREDIT 19
TO AN ACCOUNT FOR NO T LESS THAN THE REFU ND VALUE. 20
(U) “REDEEMABLE BEVERAGE C ONTAINER” MEANS A BEVERAGE 21
CONTAINER THAT , AT THE TIME OF SALE : 22
(1) CONTAINS 3 LITERS OR LESS OF A BEVERAGE; 23
(2) BEARS A UNIVERSAL PRO DUCT CODE; AND 24
(3) MAY BEAR A MARYLAND–SPECIFIC UPC BARCODE FOR THE 25
PURPOSE OF ENSURING LEGITIMATE REDEMPTIO N AND DETERRING FRAU D. 26
(V) “REDEMPTION FACILITY ” MEANS A FACILITY THA T: 27
(1) ACCEPTS EMPTY BEVERAG E CONTAINERS FROM A CONSUMER , A 28
RETAILER, OR BOTH; 29
(2) COLLECTS, SORTS, AND COUNTS EMPTY BEV ERAGE CONTAINERS ; 30 10 SENATE BILL 642
(3) REFUNDS THE REFUND VA LUE OF EMPTY REDEEMA BLE 1
BEVERAGE CONTAINERS IN CASH, WITH A VOUCHER , OR AS A CREDIT TO AN 2
ACCOUNT FOR NOT LESS THAN THE REFUND VALU E OF THE REDEEMABLE 3
BEVERAGE CONTAINER ; AND 4
(4) IS LICENSED UNDER § 9–1738 OF THIS SUBTITLE. 5
(W) “REDEMPTION RATE ” MEANS THE PERCENTAGE OF REDEEMABLE 6
BEVERAGE CONTAINERS SOLD IN THE STATE THAT ARE REDEEM ED FOR THE 7
DEPOSIT VALUE . 8
(X) “REFILLABLE” MEANS A BEVERAGE CON TAINER THAT IS DESIG NED AND 9
INTENDED TO BE REUSED AS A BE VERAGE CONTAINER AFT ER BEING USED BY A 10
CONSUMER WITHOUT THE NEED FOR REMANUFACTU RING. 11
(Y) (1) “RETAILER” MEANS A PERSON THAT ENGAGES IN THE SALE OF 12
REDEEMABLE BEVERAGE CONTAINERS TO A CONS UMER IN THE STATE. 13
(2) “RETAILER” INCLUDES A PERSON THAT ENGAGE S IN THE SALE OF 14
REDEEMABLE BEVERAGE CONTAINERS: 15
(I) THROUGH A VENDING MAC HINE; OR 16
(II) ONLINE FOR HOME DELIV ERY. 17
(Z) “REVERSE VENDING MACHI NE” MEANS AN AUTOMATED D EVICE THAT: 18
(1) ACCEPTS ONE OR MORE T YPES OF EMPTY REDEEM ABLE 19
BEVERAGE CONTAINERS ; 20
(2) USES A LASER SCANNER , AN OPTICAL SENSOR , A 21
MICROPROCESSOR , OR OTHER TECHNOLOGY TO ACCURATELY RECOGN IZE A 22
BEVERAGE CONTAINER ’S UNIVERSAL PRODUCT CODE TO DETERMINE WH ETHER THE 23
CONTAINER IS A REDEE MABLE BEVERAGE CONTA INER; 24
(3) ISSUES A REDEEMABLE C REDIT SLIP FOR THE R EDEEMABLE 25
BEVERAGE CONTAINER ’S REFUND VALUE ; 26
(4) SEPARATES REDEEMABLE BEVERAGE CONTAINERS FROM 27
CONTAINERS THAT ARE NOT REDEEMABLE ; 28
SENATE BILL 642 11
(5) USES MECHANICAL COMPA CTION TO CANCEL REDE EMABLE 1
BEVERAGE CONTAINERS THAT HAVE BEEN REDEE MED; AND 2
(6) COMPILES INFORMATION REGARDING THE REDEEM ABLE 3
BEVERAGE CONTAINERS THAT HAVE BEEN REDEE MED, INCLUDING THE NUMBER OF 4
REDEEMABLE BEVERAGE CONTAINERS REDEEMED . 5
(AA) (1) “UNIVERSAL PRODUCT COD E” OR “UPC” MEANS A STANDARD 6
BARCODE THAT ENCODES A NUMBER UNIQUELY ASSI GNED TO A PRODUCT FO R 7
IDENTIFICATION OF TH E PRODUCT. 8
(2) “UNIVERSAL PRODUCT COD E” OR “UPC” INCLUDES: 9
(I) ANY INDUSTRY–ACCEPTED BARCODE USE D FOR PRODUCT 10
IDENTIFICATION PURPO SES; AND 11
(II) A EUROPEAN ARTICL E NUMBER. 12
9–1734. 13
IT IS THE INTENT OF T HE GENERAL ASSEMBLY TO: 14
(1) ACHIEVE A REDEMPTION RATE OF AT LEAST 90% FOR THE 15
APPROXIMATELY 5,200,000,000 SINGLE–USE BEVERAGE CONTAIN ERS SOLD 16
ANNUALLY IN THE STATE; 17
(2) PROVIDE A SOURCE OF H IGH–QUALITY FOOD–GRADE MATERIALS 18
FOR USE AS RECYCLED CONTENT IN BEVERAGE AND FOOD CONTAINERS ; 19
(3) REDUCE THE VOLUME OF LITTER AND PLASTIC P OLLUTION FROM 20
BEVERAGE CONTAINERS IN THE STATE; 21
(4) REDUCE THE VOLUME OF BEVERAGE CONTAINERS THAT ARE 22
LANDFILLED OR INCINE RATED IN THE STATE; 23
(5) REDUCE THE COSTS OF L ITTER AND BEVERAGE C ONTAINER 24
COLLECTION, RECYCLING, AND DISPOSAL INCURRE D BY TAXPAYERS , COUNTIES, 25
AND MUNICIPAL CORPOR ATIONS BY MAKING PRO DUCERS OF BEVERAGE 26
CONTAINERS RESPONSIB LE FOR THE RECOVERY , RECYCLING, AND REUSE OF 27
BEVERAGE CONTAINERS ; 28
(6) PROVIDE INCENTIVES FO R INCREASING THE USE OF REUSABLE 29
AND REFILLABLE BEVER AGE CONTAINERS ; AND 30 12 SENATE BILL 642
(7) REDUCE GREENHOUSE GAS EMISSIONS ASSOCIATED WITH THE 1
PRODUCTION , TRANSPORTATION , PROCESSING, AND WASTE DISPOSAL O F 2
SINGLE–USE BEVERAGE CONTAIN ERS SOLD IN THE STATE. 3
9–1735. 4
THERE IS A MARYLAND BEVERAGE CONTAINER RECYCLING REFUND AND 5
LITTER REDUCTION PROGRAM IN THE DEPARTMENT . 6
9–1736. 7
PERFORMANCE TARGETS F OR THE PROGRAM ARE AS FOLLOW S: 8
(1) A 70% REDEMPTION RATE BY DECEMBER 31, 2028; 9
(2) A 90% REDEMPTION RATE BY DECEMBER 31, 2031; 10
(3) A 65% RECYCLING RATE BY DECEMBER 31, 2028; 11
(4) AN 85% RECYCLING RATE BY DECEMBER 31, 2031; 12
(5) BY DECEMBER 31, 2026, ATTAINMENT OF ALL CO NVENIENCE 13
STANDARDS IDENTIFIED BY THE DEPARTMENT UNDER § 9–1747 OF THIS SUBTITLE; 14
AND 15
(6) BY DECEMBER 31, 2034, AT LEAST 10% OF ALL BEVERAGE 16
CONTAINERS SOLD IN T HE STATE ARE RETURNED AND R EFILLED. 17
9–1737. 18
(A) (1) SUBJECT TO PARAGRAPHS (2) AND (3) OF THIS SUBSECTION , 19
BEGINNING JANUARY 1, 2027, EACH REDEEMABLE BEVE RAGE CONTAINER SOLD IN 20
THE STATE SHALL INCLUDE A DEPICTION OF THE FOL LOWING INFORMATION : 21
(I) THE WORD “MARYLAND” OR THE LETTERS “MD”; AND 22
(II) 1. FOR REDEEMABLE BEVERA GE CONTAINERS WITH A 23
VOLUME OF 24 FLUID OUNCES OR LESS , A REFUND VALUE OF 10 CENTS; OR 24
2. FOR REDEEMABLE BEVERA GE CONTAINERS WITH A 25
VOLUME OF MORE THAN 24 FLUID OUNCES , A REFUND VALU E OF 15 CENTS. 26
SENATE BILL 642 13
(2) THE DEPARTMENT MAY ADJUST THE REFUND VALUES SP ECIFIED 1
IN PARAGRAPH (1) OF THIS SUBSECTION : 2
(I) IF THE DEPARTMENT DETERMINES ALTERING THE REFUND 3
VALUES IS NECESSARY TO MEET OR EXCEED PE RFORMANCE TARGETS ; OR 4
(II) AT THE REQUEST OF A BEVERAGE CONTAI NER 5
STEWARDSHIP ORGANIZA TION. 6
(3) BEGINNING JANUARY 1, 2031, THE DEPARTMENT SHALL 7
INCREASE THE REFUND VALUES SPECIFIED IN PARAGRAPH (1) OF THIS SUBSECTION 8
BY 5 CENTS IF THE DEPARTMENT DETERMINES THAT FOR 2 CONSECUTIVE 9
CALENDAR YEARS THE REDEMPTION RATE WAS LESS THAN 90% OF THE TOTAL 10
NUMBER OF BEVERAGE C ONTAINERS SOLD IN TH E STATE. 11
(B) A BEVERAGE CONTAINER D EPICTING THE INFORMA TION SPECIFIED IN 12
SUBSECTION (A) OF THIS SECTION MAY NOT BE SOLD TO A CON SUMER BEFORE 13
JANUARY 1, 2027. 14
(C) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 15
BEGINNING JANUARY 1, 2027: 16
(I) THE WHOLESALE PRICE A ND THE RETAIL PRICE OF A FULL 17
REDEEMABLE BEVERAGE CONTAINER SHALL INCL UDE THE REFUND VALUE OF THE 18
REDEEMABLE BEVERAGE CONTAINER; AND 19
(II) A RETAILER SHALL INCLU DE ON A CUSTOMER ’S SALES 20
RECEIPT THE REFUND V ALUE OF A REDEEMABLE BEVERAGE CONTAINER S OLD BY 21
THE RETAILER TO THE CUSTOMER. 22
(2) THE RETAIL PRICE OF A FULL REDEEMABLE BEVE RAGE 23
CONTAINER SOLD BY AN ON–PREMISES SELLER MAY NOT INCLUD E THE REFUND 24
VALUE OF THE REDEEMA BLE BEVERAGE CONTAIN ER. 25
9–1738. 26
(A) (1) THE PROGRAM SHALL PROVIDE A RANGE OF OPTIONS F OR 27
CUSTOMERS TO CONVENI ENTLY REDEEM EMPTY R EDEEMABLE BEVERAGE 28
CONTAINERS FOR THE F ULL REFUND VALUE , INCLUDING: 29
(I) AT A RETAILER’S PLACE OF BUSINESS THROUGH DIRECT 30
TAKE–BACK BY THE RETAILER , REVERSE VENDING MACH INES, A BAG DROP 31
PROGRAM, OR OTHER REDEMPTION METHODS; 32 14 SENATE BILL 642
(II) DEDICATED AND CONVENI ENTLY LOCATED REDEMP TION 1
FACILITIES OPERATED BY RETAILERS , PUBLIC ENTITIES , OR A BEVERAGE 2
CONTAINER STEWARDSHI P ORGANIZATION ; AND 3
(III) PLACING REDEEMABLE BE VERAGE CONTAINER 4
REDEMPTION AND PROCE SSING METHODS , SUCH AS REVERSE VEND ING MACHINES , 5
BAG DROP PROGRAMS , AND ACCOUNT –BASED BULK PROCESSIN G PROGRAMS , IN 6
AREAS: 7
1. WITH A HIGH NUMBER OF PEDEST RIANS; AND 8
2. WHERE INDIVIDUALS PUR CHASE OR USE BEVERAG E 9
CONTAINERS. 10
(2) THE PROGRAM SHALL PROVIDE A RANGE OF OPTIONS F OR 11
ON–PREMISES SELLERS TO CONVENIENTLY REDEEM EMPTY REDEEMABLE 12
BEVERAGE CONTAINERS FOR THE FULL REFUND VALUE, INCLUDING: 13
(I) AN ACCOUNT –BASED REFUND ISSUED BY A BEVERAGE 14
CONTAINER STEWARDSHI P ORGANIZATION OR IT S AGENTS FOLLOWING T HE 15
COLLECTION OF EMPTY REDEEMABLE BEVERAGE CONTAINERS BY THE BE VERAGE 16
CONTAINER STEWARDSHI P ORGANIZATION OR IT S AGENTS FROM THE ON –PREMISES 17
SELLER; OR 18
(II) AN ACCOUNT–BASED REFUND ISSUED BY THE OPERATOR OF 19
A BAG DROP PROGRAM . 20
(B) (1) A PERSON SHALL APPLY T O THE DEPARTMENT FOR A LICE NSE TO 21
OPERATE A REDEMPTION FACILITY IN THE STATE. 22
(2) THE DEPARTMENT SHALL DEVE LOP STANDARDS AND A 23
LICENSING PROCESS FO R THE ESTABLISHMENT AND OPERATION OF RED EMPTION 24
FACILITIES. 25
(C) SUBJECT TO SUBSECTION (D) OF THIS SECTION , A REDEMPTION 26
FACILITY SHALL ACCEP T ALL TYPES OF EMPTY REDEEMABLE BEVERAGE 27
CONTAINERS FOR REDEM PTION. 28
(D) A RETAILER OR REDEMPTION FACILI TY MAY REFUSE TO ACC EPT AN 29
EMPTY REDEEMABLE BEV ERAGE CONTAINER THAT : 30
(1) IS DIRTY; 31 SENATE BILL 642 15
(2) IS BROKEN; 1
(3) CONTAINS MATERIAL FOR EIGN TO THE NORMAL C ONTENTS OF 2
THE BEVERAGE CONTAIN ER; OR 3
(4) THE RETAILER OR REDEM PTION FACILITY BELIE VES WAS NOT 4
SOLD IN THE STATE. 5
(E) (1) THIS SUBSECTION APPLI ES TO A RETAILER WIT H AT LEAST 3,000 6
SQUARE FEET OF SALES FLOOR SPACE AND AT L EAST 150 SQUARE FEET OF SHELF 7
SPACE DEDICATED TO T HE DISPLAY OF REDEEM ABLE BEVERAGE CONTAINERS . 8
(2) SUBJECT TO SUBSECTION (D) OF THIS SECTION , A RETAILER 9
SHALL: 10
(I) ESTABLISH AND MAINTAI N A DEDICATED AREA A T THE 11
RETAILER’S PLACE OF BUSINESS TO ACCEPT EMPTY REDE EMABLE BEVERAGE 12
CONTAINERS; 13
(II) ACCEPT AT THE RETAILE R’S PLACE OF BUSINESS ANY 14
EMPTY REDEEMABLE BEV ERAGE CONTAINERS RET URNED FOR REDEMPTION 15
DURING THE RETAILER ’S BUSINESS HOURS ; AND 16
(III) PAY TO THE REDEEMER T HE REFUND VALUE FOR EACH 17
EMPTY REDEEMABLE BEV ERAGE CONTAINER REDE EMED. 18
(3) RETAILERS MAY MEET THE REQUIREMENTS IN PARAGRAPH (2) OF 19
THIS SUBSECTION THRO UGH VARIOUS METHODS , INCLUDING: 20
(I) SUPPLEMENTING THE MAN UAL COLLECTION AND S TORING 21
OF REDEEMED REDEEMAB LE BEVERAGE CONTAINE RS WITH A REVERSE VE NDING 22
MACHINE, A BAG DROP PROGRAM , OR OTHER COUNTIN G AND SORTING METHOD S; 23
AND 24
(II) GROUPING BEVERAGE CON TAINER REDEMPTION AN D 25
PROCESSING METHODS W ITH THOSE OF OTHER R ETAILERS IF: 26
1. A BEVERAGE CONTAINER S TEWARDSHIP 27
ORGANIZATION APPROVE S THE PROPOSAL ; AND 28
2. THE RETAILERS PARTICI PATING IN THE GROUPED 29
METHODS PROVIDE CONS ISTENT SERVICE , MARKETING, AND SITE REDEMPTION 30 16 SENATE BILL 642
LOCATIONS THAT COMPL Y WITH DISTANCE PROV ISIONS DETERMINED BY THE 1
DEPARTMENT . 2
(4) A RETAILER WITHIN AN A REA THAT MEETS THE C ONVENIENCE 3
STANDARDS ESTABLISHE D BY THE DEPARTMENT UNDE R § 9–1747 OF THIS 4
SUBTITLE MAY BE EXEM PT FROM THE REQUIREM ENTS OF THIS SUBSECT ION IF THE 5
RETAILER: 6
(I) IS LOCATED IN CLOSE P ROXIMITY TO A REDEMP TION 7
FACILITY IN THAT ARE A; AND 8
(II) SHARES THE COST OF TH E OPERATION OF THE 9
REDEMPTION FACILITY WITH A BEVERAGE CONTAINER S TEWARDSHIP 10
ORGANIZATION . 11
(5) THE DEPARTMENT MAY : 12
(I) SET STANDARDS FOR THE NUMBER OF REVERSE VE NDING 13
MACHINES REQUIRED FO R RETAILERS LOCATED IN UNDERSERVED COMMU NITIES; 14
AND 15
(II) ESTABLISH A CAP FOR T HE NUMBER OF EMPTY 16
REDEEMABLE BEVERAGE CONTAI NERS THAT CAN BE RED EEMED PER VISIT AT 17
SMALL RETAILERS . 18
(F) SUBJECT TO SUBSECTION (D) OF THIS SECTION, A RETAILER WITH LESS 19
THAN 3,000 SQUARE FEET OF SALES FLOOR SPACE OR LESS THAN 150 SQUARE FEET 20
OF SHELF SPACE DEDIC ATED TO THE DISPL AY OF REDEEMABLE BEV ERAGE 21
CONTAINERS SHALL : 22
(1) PROVIDE ON–SITE CASH REFUNDS FO R THE REDEMPTION OF ANY 23
EMPTY REDEEMABLE BEV ERAGE CONTAINER THAT IS OF THE SAME MATER IAL AND 24
SIZE AS THOSE THAT A RE SOLD BY THE RETAI LER IF THE EMPTY RED EEMABLE 25
BEVERAGE CONT AINER BEING REDEEMED IS NOT ACCEPTED BY A REVERSE 26
VENDING MACHINE ; AND 27
(2) POST AT THE RETAILER ’S ENTRANCE THE ADDRE SS OF THE 28
NEAREST REVERSE VEND ING MACHINE OR OTHER REDEMPTION METHOD TH AT 29
PROVIDES AN IMMEDIAT E CASH REFUND FOR RE DEEMING EMPTY REDEEM ABLE 30
BEVERAGE CONTAINERS . 31
(G) (1) A PERSON THAT PROVIDES A REVERSE VENDING MA CHINE FOR 32
THE REDEMPTION OF EM PTY REDEEMABLE BEVER AGE CONTAINERS SHALL : 33 SENATE BILL 642 17
(I) PROVIDE AN OPTION FOR REDEEMING EMPTY REDE EMABLE 1
BEVERAGE CONTAINERS WHEN THE REVERSE VEN DING MACH INE IS FULL, BROKEN, 2
OR UNDER REPAIR ; AND 3
(II) PROVIDE AN OPTION FOR REDEEMING ANY EMPTY 4
REDEEMABLE BEVERAGE CONTAINERS NOT ACCEP TED BY THE REVERSE V ENDING 5
MACHINE. 6
(2) (I) THE DEPARTMENT SHALL ESTA BLISH A PROCESS FOR 7
SUBMITTING FOR REVIE W, APPROVING, AND MONITORING AN AC COUNT–BASED 8
BULK PROCESSING PROG RAM THAT: 9
1. ENSURES THAT THE PROG RAM WILL ACCURATELY 10
REFUND DEPOSITS AND MAINTAIN AND REPORT DATA FROM EACH TRANS ACTION; 11
AND 12
2. IDENTIFIES THE INFORM ATION THAT MUST BE 13
SUBMITTED TO THE DEPARTMENT FOR APPROV AL OF THE PROGRAM . 14
(II) A PERSON THAT INTENDS TO PROVIDE AN ACCOUN T–BASED 15
BULK PROCESSING PROG RAM FOR THE REDEMPTI ON OF EMPTY REDEEMAB LE 16
BEVERAGE CONTAINERS SHALL SUBMIT INFORMA TION IDENTIFIED UNDE R 17
SUBPARAGRAPH (I) OF THIS PARAGRA PH TO THE DEPARTMENT FOR APPROV AL OF 18
THE PROGRAM . 19
(H) REFUNDS PROVIDED FOR AN EMPTY REDEEMED RE DEEMABLE 20
BEVERAGE CONTAINER S HALL BE: 21
(1) IN CASH; 22
(2) IN THE FORM OF A RECE IPT FROM A REVERSE V ENDING MACHINE 23
IF: 24
(I) THE RECEIPT CAN BE EX CHANGED FOR CASH WITHIN 60 25
DAYS AFTER THE RECEI PT IS ISSUED; AND 26
(II) THERE IS NO REQUIREME NT THAT OTHER GOODS BE 27
PURCHASED TO RECEIVE THE CASH REFUND ; OR 28
(3) CREDITED TO AN ACCOUN T BY THE RECEIVER OF THE EMPTY 29
REDEEMABLE BEVERAGE CONTAINER SO THAT TH E CONSUMER CAN RECEIVE THE 30
REFUND OR A REFUND R ECEIPT WITHIN A SPEC IFIED NUMBER OF DAYS , AS 31 18 SENATE BILL 642
DETERMINED BY THE DEPARTMENT , AFTER REDEEMING THE EMPTY REDEEMABLE 1
BEVERAGE CONTAINER . 2
(I) (1) A REDEMPTION FACILITY , RETAILER, OR OTHER PERSON THAT 3
ACCEPTS REDEEMABLE BEVERAGE CONTAINERS FOR REDEMPTION SHALL BE 4
REIMBURSED BY A BEVE RAGE CONTAINER STEWA RDSHIP ORGANIZATION OR ITS 5
AGENT FOR THE HANDLI NG OF EACH EMPTY RED EEMABLE BEVERAGE CON TAINER 6
REDEEMED . 7
(2) (I) THE DEPARTMENT SHALL SET A HANDLING FEE TO BE PAID 8
BY A BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION OR ITS AGENT TO A 9
REDEMPTION FACILITY , RETAILER, OR OTHER PERSON THAT ACCEPTS EMPTY 10
REDEEMABLE BEVERAGE CONTAINERS FOR REDEM PTION. 11
(II) 1. THE HANDLING FEE SHAL L BE SET AT AN AMOUN T 12
THAT COVERS THE COST S OF COLLECTING, SORTING, PROCESSING, AND 13
TRANSPORTING EMPTY R EDEEMABLE BEVERAGE C ONTAINERS FOR RECYCL ING, 14
REUSE, OR REFILLING. 15
2. THE DEPARTMENT MAY INCREA SE THE HANDLING 16
FEE IF THE DEPARTMENT DETERMINES AN INCREASE IS NECES SARY TO ENCOURAGE 17
THE ESTABLISH MENT OF MORE REDEMPT ION FACILITIES. 18
(J) (1) AN ON–PREMISES SELLER THAT ACCEPTS EMPTY REDEEM ABLE 19
BEVERAGE CONTAINERS FOR REDEMPTION SHALL BE REIMBURSED BY A B EVERAGE 20
CONTAINER STEWARDSHI P ORGANIZATION OR IT S AGENT FOR: 21
(I) THE REFUNDS PAID BY T HE ON–PREMISES SELLER FOR THE 22
EMPTY REDEEMED REDEE MABLE BEVERAGE CONTA INERS; AND 23
(II) THE HANDLING OF EACH EMPTY REDEEMABLE BEV ERAGE 24
CONTAINER REDEEMED . 25
(2) (I) THE DEPARTMENT SHALL SET A MATERIAL HANDLING FEE 26
TO BE PAID BY A BEVE RAGE CONTAINER STEWARDSHIP ORGANIZA TION OR ITS 27
AGENT TO AN ON –PREMISES SELLER THAT ACCEPTS EMPTY REDEEM ABLE 28
BEVERAGE CONTAINERS FOR REDEMPTION . 29
(II) THE HANDLING FEE SHAL L BE SET AT AN AMOUN T THAT 30
COVERS THE COSTS OF TEMPORARY STORAGE , PRELIMINARY SORTING , AND 31
PREPARING EACH REDEEMABLE BEVERAGE CONTAINER R EDEEMED FOR 32
COLLECTION. 33
SENATE BILL 642 19
(3) A BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION OR ITS 1
AGENT SHALL PROVIDE TO AN ON–PREMISES SELLER : 2
(I) ANY RECEPTACLES OR BA GS REQUIRED FOR THE 3
PRELIMINARY SORTING OF REDEEMED RED EEMABLE BEVERAGE CON TAINERS BY 4
THE ON–PREMISES SELLER ; AND 5
(II) ANY LABELS NECESSARY FOR ATTRIBUTING THE 6
REDEEMED REDEEMABLE BEVERAGE CONTAINERS TO THE ON–PREMISES SELLER . 7
(K) A DEPOSIT INITIATOR TH AT COLLECTS A DEPOSI T FROM A RETAILER , 8
REDEMPTION FACILITY, OR OTHER PERSON THAT ACCEPTS REDEEMABLE 9
BEVERAGE CONTAINERS FOR REDEMPTION SHALL ACCOUNT FOR ANY DEPO SITS IN 10
ACCORDANCE WITH § 9–1739 OF THIS SUBTITLE. 11
(L) REDEEMED EMPTY REDEEM ABLE BEVERAGE CONTAI NERS SHALL BE 12
COLLECTED FOR RETURN TO A BEVERAG E CONTAINER STEWARDS HIP 13
ORGANIZATION FOR SAL E AS SCRAP MATERIAL TO FINANCE THE PROGRAM. 14
9–1739. 15
(A) A DEPOSIT INITIATOR SH ALL DEPOSIT ANY DEPO SITS COLLECTED 16
UNDER § 9–1738 OF THIS SUBTITLE INT O A DEPOSIT COLLECTI ON ACCOUNT THAT IS 17
MAINTAINED SEPARATEL Y FROM ALL OTHER REVEN UES. 18
(B) THE FUNDS IN THE DEPO SIT COLLECTION ACCOU NT MAY BE USED ONLY 19
TO PAY THE REFUND VA LUE OF AN EMPTY REDE EMABLE BEVERAGE CONT AINER 20
BEING REDEEMED . 21
(C) A DEPOSIT INITIATOR SH ALL REPORT TO A BEVE RAGE CONTAINER 22
STEWARDSHIP ORGANI ZATION, AT A FREQUENCY DETER MINED BY THE 23
DEPARTMENT , THE FOLLOWING INFORM ATION: 24
(1) THE NUMBER OF REDEEMA BLE BEVERAGE CONTAIN ERS SOLD 25
AND EMPTY REDEEMABLE BEVERAGE CONTAINERS REDEEMED SINCE THE L AST 26
REPORT WAS SUBMITTED TO THE BEVERAGE CONT AINER STEWARD SHIP 27
ORGANIZATION UNDER T HIS SUBSECTION ; 28
(2) THE FUNDS DEPOSITED I NTO THE DEPOSIT COLL ECTION 29
ACCOUNT AND THE REFU NDS ISSUED FROM THE DEPOSIT COLLECTION A CCOUNT 30
SINCE THE LAST REPOR T WAS SUBMITTED TO T HE BEVERAGE CONTAINE R 31
STEWARDSHIP ORGANIZA TION UNDER THIS SUBSECTION ; 32
20 SENATE BILL 642
(3) ANY INCOME EARNED ON THE FUNDS IN THE DEP OSIT 1
COLLECTION ACCOUNT S INCE THE LAST REPORT WAS SUBMITTED TO THE 2
BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION UNDER THIS SUBSE CTION; 3
(4) THE BALANCE OF THE DE POSIT COLLECTION ACC OUNT; AND 4
(5) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT . 5
(D) (1) THE DEPARTMENT SHALL DETE RMINE THE POINT AT W HICH A 6
DEPOSIT BECOMES AN U NCLAIMED DEPOSIT . 7
(2) UNCLAIMED DEPOSITS AR E CALCULATED AS THE AMOUNT OF 8
FUNDS TRANSFERRED TO A DEPOSIT COLLECTIO N ACCOUNT THAT ARE I N EXCESS 9
OF THE SUM OF: 10
(I) ANY INTEREST EARNINGS ON THE DEPOSIT COLLE CTION 11
ACCOUNT DURING THE T IME FOR WHICH UNCLAI MED DEPOSITS ARE BEI NG 12
CALCULATED ; AND 13
(II) THE TOTAL AMOUNT OF T HE REFUND VALUE RECE IVED FOR 14
THE EMPTY REDEEMAB LE BEVERAGE CONTAINE RS REDEEMED DURING T HE TIME 15
FOR WHICH THE UNCLAI MED DEPOSITS ARE BEI NG CALCULATED . 16
(3) A DEPOSIT INITIATOR SH ALL TRANSFER ALL UNC LAIMED 17
DEPOSITS TO A BEVERA GE CONTAINER STEWARD SHIP ORGANIZATION AT A 18
FREQUENCY DETERMINED BY THE DEPARTMENT. 19
(4) A BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION SHALL: 20
(I) ESTABLISH A RESERVE A CCOUNT TO MANAGE ALL 21
UNCLAIMED DEPOSITS ; AND 22
(II) TRANSFER 10% OF ALL UNCLAIMED DEP OSITS TO THE 23
DEPARTMENT WITH A FRE QUENCY DETERMINED BY THE DEPARTMENT . 24
(5) A BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION SHALL 25
USE THE FUNDS IN THE RESERVE ACCOUNT ESTA BLISHED UNDER PARAGR APH (4) 26
OF THIS SUBSECTION T O: 27
(I) ACHIEVE THE INTENT OF THE GENERAL ASSEMBLY STATED 28
IN § 9–1734 OF THIS SUBTITLE; AND 29
SENATE BILL 642 21
(II) MEET OR EXCEED THE PERFOR MANCE TARGETS 1
ESTABLISHED IN § 9–1736 OF THIS SUBTITLE . 2
(6) (I) THE DEPARTMENT SHALL TRAN SFER ANY UNCLAIMED 3
DEPOSITS RECEIVED UN DER THIS PARAGRAPH T O THE STATE RECYCLING TRUST 4
FUND UNDER § 9–1707(F) OF THIS SUBTITLE. 5
(II) THE UNCLAIMED DEPOSITS TRAN SFERRED TO THE STATE 6
RECYCLING TRUST FUND MAY BE USED ONLY FOR THE COSTS OF ADM INISTERING 7
AND FINANCING THE GRANT PROGRAM UNDER § 9–1746 OF THIS SUBTITLE. 8
9–1740. 9
(A) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THIS SECTION 10
APPLIES TO A PRODUCER TH AT SELLS, OFFERS FOR SALE , OR DISTRIBUTES 11
REDEEMABLE BEVERAGE CONTAINERS IN THE STATE. 12
(2) (I) IF THE BEVERAGE CONTA INER IS SOLD UNDER T HE 13
PRODUCER’S OWN BRAND OR LACKS IDENTIFICATION OF A BRAND, THE PRODUCER 14
IS THE PERSON THAT M ANUFACTURES THE REDEEMAB LE BEVERAGE CONTAINE R. 15
(II) IF THE REDEEMABLE BEV ERAGE CONTAINER IS 16
MANUFACTURED BY A PE RSON OTHER THAN THE BRAND OWNER , THE PRODUCER IS 17
THE PERSON THAT IS T HE LICENSEE OF A BRA ND OR TRADEMARK UNDE R WHICH A 18
REDEEMABLE BEVERAGE CONTAINER IS SOLD , OFFERED FOR SALE , OR 19
DISTRIBUTED IN THE STATE, WHETHER OR NOT THE T RADEMARK IS REGISTER ED IN 20
THE STATE, UNLESS ANOTHER RESPO NSIBLE PERSON HAS CO NTRACTUALLY 21
ACCEPTED RESPONSIBIL ITY AS THE PRODUCER AND HAS JOINED A BEV ERAGE 22
CONTAINER STEWARDSHI P ORGANIZATION AS TH E PRODUCER RESPONSIB LE FOR 23
THE REDEEMABLE BEVER AGE CONTAINER UNDER THIS SECTION. 24
(III) IF THERE IS NO PERSON DESCRIBED IN THIS PA RAGRAPH 25
OVER WHOM THE STATE CAN CONSTITUTIO NALLY EXERCISE JURIS DICTION, THE 26
PRODUCER IS THE PERS ON THAT IMPORTS OR DISTRIBUT ES THE REDEEMABLE 27
BEVERAGE CONTAINER I N THE STATE. 28
(3) IF ANOTHER PERSON CON TRACTUALLY ACCEPTS 29
RESPONSIBILITY AS A PRODUCER UNDER PARAG RAPH (2)(II) OF THIS SUBSECTION , 30
THE PRODUCER MUST PR OVIDE A CERTIFIED CO PY OF THE CONTRACTUA L 31
AGREEMENT TO THE RELE VANT BEVERAGE CONTAI NER STEWARDSHIP 32
ORGANIZATION . 33
22 SENATE BILL 642
(B) BEGINNING JANUARY 1, 2027, A PRODUCER MAY NOT S ELL, OFFER FOR 1
SALE, OR DISTRIBUTE IN OR IMPORT INTO THE STATE A REDEEMABLE BE VERAGE 2
CONTAINER UNLESS THE PRODUCER: 3
(1) IS REGISTERED WITH THE DEPARTMENT IN ACCORDA NCE WITH 4
THIS SECTION; 5
(2) HAS PAID THE REGISTRA TION FEE UNDER SUBSE CTION (F) OF 6
THIS SECTION; AND 7
(3) IS PART OF A BEVERAGE CONTAINER STEWARDSHI P 8
ORGANIZATION THAT : 9
(I) HAS BEEN APPROVED BY THE DEPARTMENT UNDER § 10
9–1741 OF THIS SUBTITLE ; AND 11
(II) HAS A BEVERAGE CONTAI NER STEWARDSHIP PLAN 12
APPROVED BY THE DEPARTMENT UNDER § 9–1742 OF THIS SUBTITLE. 13
(C) ON OR BEFORE MARCH 1 EACH YEAR, BEGINNING IN 2026, A BEVERAGE 14
CONTAINER STEWARDSHIP ORGANIZATION REPRESE NTING A PRODUCER SHA LL 15
PROVIDE TO THE DEPARTMENT : 16
(1) A LIST OF EACH PRODUCE R PARTICIPATING IN T HE BEVERAGE 17
CONTAINER STEWARDSHI P ORGANIZATION ; AND 18
(2) FOR EACH PRODUCER , THE REGISTRATION FOR M REQUIRED 19
UNDER SUBSECTION (D) OF THIS SECTION. 20
(D) (1) THE DEPARTMENT SHALL CREA TE A REGISTRATION FO RM THAT 21
REQUIRES EACH PRODUC ER PARTICIPATING IN THE BEVERAGE CONTAIN ER 22
STEWARDSHIP ORGANIZA TION TO PROVIDE THE FOLLOWING INFORMATION : 23
(I) THE NAME, PRIMARY BUSINESS ADD RESS, AND CONTACT 24
INFORMATION OF THE P ERSON RESPONSIBLE FO R ENSURING COMPLIANC E WITH 25
THIS PART; 26
(II) A LIST OF EACH BRAND O F REDEEMABLE BEVERAG E 27
CONTAINERS THAT THE PRODUCER INTENDS TO SELL, OFFER FOR SALE , OR 28
DISTRIBUTE IN THE STATE, INCLUDING THE SIZE A ND MATERIAL OF THE 29
REDEEMABLE BEVERAGE CONTAINERS FOR EACH BRAND; 30
SENATE BILL 642 23
(III) FOR EACH REDEEMABLE B EVERAGE CONTAINER SP ECIFIED 1
IN THE REGISTRATION , WHETHER THE REDEEMAB LE BEVERAGE CONTAINE R: 2
1. IS REFILLABLE; AND 3
2. DEPICTS A UPC OR MARYLAND–SPECIFIC UPC 4
BARCODE; 5
(IV) HOW EACH PRODUCER WIL L PREVENT THE FRAUDU LENT 6
SALE AND REDEMPTION OF REDEEMABLE BEVERA GE CONTAINERS THAT W ERE NOT 7
SOLD IN THE STATE; 8
(V) THE NUMBER OF REDEEMA BLE BEVERAGE CONTAINERS 9
EACH PRODUCER SOLD I N THE STATE IN THE IMMEDIAT ELY PRECEDING CALEND AR 10
YEAR; AND 11
(VI) ANY OTHER INFORMATION REQUIRED BY THE 12
DEPARTMENT . 13
(2) A PRODUCER SHALL SUBMI T A COMPLETED REGIST RATION FORM 14
TO THE BEVERAGE CONT AINER STEWARDSHIP ORGANIZA TION THAT REPRESENTS 15
THE PRODUCER . 16
(E) ON OR BEFORE MARCH 1, 2026, AND WITH A FREQUENCY AS 17
DETERMINED BY THE DEPARTMENT THEREAFTER , EACH PRODUCER SHALL PAY A 18
REGISTRATION FEE EST ABLISHED BY THE DEPARTMENT UNDER SUBS ECTION (F) OF 19
THIS SECTION. 20
(F) (1) THE DEPARTMENT SHALL ESTA BLISH AN ANNUAL REGI STRATION 21
FEE FOR PRODUCERS TH AT SELL REDEEMABLE B EVERAGE CONTAINERS I N THE 22
STATE. 23
(2) THE REGISTRATION FEE SHALL BE SET IN A MA NNER THAT: 24
(I) WHEN TAKEN IN COMBINA TION WITH ANTICIPATE D 25
REVENUES FROM PENALT IES COLLECTED UNDER § 9–1750 OF THIS SUBTITLE, WILL 26
PRODUCE FUNDS SUFFIC IENT TO COVER THE DEPARTMENT ’S ESTIMATED COSTS OF 27
PLANNING, IMPLEMENTING , ADMINISTERING , MONITORING , ENFORCING, AND 28
EVALUATING THE PROGRAM FOR THE UPCOM ING YEAR; 29
(II) FOR THE FIRST YEAR OF THE PROGRAM DURING WHICH 30
REGISTRATION FEES AR E COLLECTED, SHALL COVER THE STAR T–UP COSTS OF THE 31 24 SENATE BILL 642
PROGRAM THAT WERE INC URRED BY THE DEPARTMENT AND FINANC ED FROM THE 1
GENERAL FUND; AND 2
(III) IS PROPORTIONAL TO A PRODUCER’S SHARE OF THE TOTAL 3
NUMBER OF REDEEMABLE BEVERAGE CONTAINERS SOLD IN THE STATE FOR THE 4
IMMEDIATELY PRECEDIN G CALENDAR YEAR . 5
(3) THE DEPARTMENT SHALL : 6
(I) IF THE REVENUES FROM THE REGISTRATION FEE S IN THE 7
IMMEDIATELY PRECEDIN G YEAR EXCEED THE CO STS SPECIFIED IN PARAGRAPH 8
(2)(I) OF THIS SUBSECTION , CARRY THE EXCESS REV ENUES FORWARD TO RED UCE 9
REGISTRATION FEES TH E FOLLOWING YEAR ; AND 10
(II) IF THE REVENUES FROM THE REGISTRATION FEE S IN THE 11
IMMEDIATELY PRECEDIN G YEAR DO NOT COVER THE COSTS SPECIFIED IN 12
PARAGRAPH (2)(I) OF THIS SUBSECTION , ADJUST REGISTRATION FEES FOR THE 13
FOLLOWING YEAR TO AN AMOUNT THAT WILL COV ER THE DEPARTMENT ’S ACTUAL 14
COSTS FROM THE IMMED IATELY PRECEDING YEA R. 15
(4) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 16
PARAGRAPH , REGISTRATION FEES COLLECTE D UNDER THIS SUBSECT ION SHALL BE: 17
1. TRANSFERRED TO THE STATE RECYCLING TRUST 18
FUND UNDER § 9–1707(F) OF THIS SUBTITLE; AND 19
2. USED ONLY TO COVER TH E DEPARTMENT ’S COSTS OF 20
PLANNING, IMPLEMENTING , ADMINISTERING , MONITORING , ENFORCING, AND 21
EVALUATING THE PROGRAM. 22
(II) THE PORTION OF THE RE GISTRATION FEES THAT COVERED 23
THE START–UP COSTS OF THE PROGRAM AND WERE FINA NCED FROM THE GENERAL 24
FUND DURING THE FIRST YEAR OF THE PROGRAM FOR WHICH REG ISTRATION FEES 25
ARE COLLECTED IN ACC ORDANCE WITH PARAGRA PH (2)(II) OF THIS SUBSECT ION 26
SHALL BE DEPOSITED I NTO THE GENERAL FUND. 27
9–1741. 28
(A) ON OR BEFORE AUGUST 1, 2025, THE DEPARTMENT SHALL ACCE PT 29
APPLICATIONS FROM BE VERAGE CONTAINER STE WARDSHIP ORGANIZATIO NS TO 30
REPRESENT PRODUCERS IN FULFILLING THE RE QUIREMENTS OF THIS P ART. 31
SENATE BILL 642 25
(B) ON OR BEFORE OCTOBER 1, 2025, THE DEPARTMENT MAY APPROV E, 1
FOR A PERIOD NOT TO EXCEED 10 YEARS, A SINGLE BEVERAGE CO NTAINER 2
STEWARDSHIP ORGANIZA TION AS A SYSTEM OPE RATOR FOR THE PROGRAM IF THE 3
BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION DEMONSTRATES THA T IT 4
HAS: 5
(1) THE ABILITY, AS DETERMINED BY THE DEPARTMENT , TO 6
ADMINISTER THE REQUI REMENTS OF A BEVERAG E CONTAINER STEWARDS HIP PLAN 7
UNDER § 9–1742 OF THIS SUBTITLE; 8
(2) A GOVERNING BOARD CONS ISTING OF PRODUCERS THAT 9
REPRESENT THE DIVERS ITY OF APPLICABLE R EDEEMABLE BEVERAGE C ONTAINERS 10
IN THE MARKET ; 11
(3) SET NO UNREASONABLE B ARRIERS TO JOINING T HE BEVERAGE 12
CONTAINER STEWARDSHI P ORGANIZATION AND W ILL TAKE INTO CONSID ERATION 13
THE NEEDS OF SMALL P RODUCERS THAT DO NOT GENERATE A HIGH VOLU ME OF 14
CONTAINERS; 15
(4) ADEQUATE FINANCIAL RE SPONSIBILITY AND SAF EGUARDS, 16
INCLUDING FRAUD PREV ENTION MEASURES AND AN AUDIT SCHEDULE ; 17
(5) THE ABILITY TO SECURE THE CAPITAL NECESSAR Y FOR THE 18
INITIAL INVESTMENT I N INFRASTRUCTURE , SORTING EQUIPMENT , SOFTWARE, 19
TRANSPORTATION , AND OTHER START –UP EXPENSES; AND 20
(6) MET ANY OTHER REQUIRE MENTS SET BY THE DEPARTMENT . 21
(C) THE DEPARTMENT MAY RENEW THE APPROVAL OF A BE VERAGE 22
CONTAINER STEWARDSHI P ORGANIZATION AS A SYSTEM OPERATOR UNDE R 23
SUBSECTION (B) OF THIS SECTION IF T HE BEVERAGE C ONTAINER STEWARDSHIP 24
ORGANIZATION CONTINU ES TO MEET THE REQUI REMENTS OF THIS SECT ION AND 25
ANY OTHER REQUIREMEN T SET BY THE DEPARTMENT . 26
(D) (1) THE DEPARTMENT SHALL REVO KE THE APPROVAL OF A 27
BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION AS A SYSTEM OPER ATOR IF 28
THE DEPARTMENT DETERMINES THAT THE BEVERAGE CO NTAINER STEWARDSHIP 29
ORGANIZATION : 30
(I) FAILED TO MEET THE RE QUIREMENTS OF THIS S ECTION; OR 31
26 SENATE BILL 642
(II) FAILED TO IMPLEMENT A ND ADMINISTER AN APP ROVED 1
BEVERAGE CONTAINER S TEWARDSHIP PLAN IN A CCORDANCE WITH § 9–1742 OF 2
THIS SUBTITLE. 3
(2) IF THE DEPARTMENT REVOKES TH E APPROVAL OF A BEVE RAGE 4
CONTAINER STEWARDSHI P ORGANIZATION AS A SYSTEM OPERATOR UNDE R 5
PARAGRAPH (1) OF THIS SUBSECTION : 6
(I) THE DEPARTMENT MAY APPROV E ONE OR MORE 7
ADDITIONAL BEVERAGE CONTAINER STEWARDSHIP ORGANI ZATIONS TO CARRY OUT 8
THE RESPONSIBILITIES OF THE BEVERAGE CONT AINER STEWARDSHIP 9
ORGANIZATION THAT WA S REVOKED AS A SYSTE M OPERATOR , SUBJECT TO ONE OR 10
MORE OF THE ADDITION AL BEVERAGE CONTAINE R STEWARDSHIP ORGANI ZATIONS 11
MEETING THE REQUIR EMENTS SPECIFIED IN SUBSECTION (B) OF THIS SECTION; AND 12
(II) THE TRUSTEE OR ESCROW AGENT OF THE TRUST F UND OR 13
ESCROW ACCOUNT ESTAB LISHED IN THE BEVERA GE CONTAINER STEWARD SHIP 14
PLAN UNDER § 9–1742(A)(3)(VI) OF THIS SUBTITLE SHA LL: 15
1. RECEIVE ALL PAY MENTS DIRECTLY FROM 16
PRODUCERS THAT WOULD HAVE BEEN PAID TO TH E BEVERAGE CONTAINER 17
STEWARDSHIP ORGANIZA TION; 18
2. DEPOSIT THE PAYMENTS RECEIVED UNDER ITEM 1 OF 19
THIS ITEM INTO THE T RUST FUND OR ESCROW ACCOUNT; AND 20
3. MAKE PAYMENTS FROM TH E TRUST FUND OR ESCROW 21
ACCOUNT AS DIRECTED BY THE DEPARTMENT TO IMPLEME NT THE REQUIREMENTS 22
OF THIS PART. 23
9–1742. 24
(A) (1) ON OR BEFORE MARCH 1, 2026, EACH BEVERAGE CONTAI NER 25
STEWARDSHIP ORGANIZA TION SHALL SUBMIT A BEVERAGE CONTAINER 26
STEWARDSHIP PLAN TO THE DEPARTMENT . 27
(2) A BEVERAGE CONTAINER S TEWARDSHIP PLAN SHAL L: 28
(I) IDENTIFY AND INCLUDE THE CONTACT INFORMAT ION FOR 29
EACH PRODUCER INTEND ED TO BE COVERED UND ER THE PLAN; 30
(II) IDENTIFY EACH BRAND O F REDEEMABLE BEVERAG E 31
CONTAINER INTENDED T O BE SOLD UNDER THE PLAN , INCLUDING THE SIZE A ND 32 SENATE BILL 642 27
MATERIAL OF THE REDE EMABLE BEVERAGE CONT AINERS FOR EACH BRAN D AND 1
WHETHER THE REDEEMAB LE BEVERAGE CONTAINE RS ARE REFILLABLE ; 2
(III) DESCRIBE: 3
1. THE FINANCING INFORMA TION SPECIFIED IN 4
PARAGRAPH (3) OF THIS SUBSECTION; 5
2. HOW THE PERFORMANCE T ARGETS WILL BE MET O R 6
EXCEEDED FOR THE 5–YEAR PERIOD FOLLOWIN G THE YEAR IN WHICH THE PLAN IS 7
APPROVED; 8
3. HOW STAKEHOLDER COMME NTS WERE CONSIDERED 9
AND REFLECTED IN THE DEVELOPMENT OF THE P LAN, INCLUDING THE ROLE OF 10
RETAILERS, DISTRIBUTORS , AND LOCAL GOVERNMENT S IN PLAN IMPLEMENTA TION; 11
4. THE ADMINISTRATION AN D IMPLEMENTATION OF 12
THE PLAN, INCLUDING ANY STAFFI NG THAT WILL BE NECE SSARY FOR THESE 13
PURPOSES; 14
5. THE ACTIONS THAT HAVE BEEN TAKEN AND THAT 15
WILL BE TAKEN FOR PUBLIC OUT REACH, EDUCATION, AND COMMUNICATION , 16
INCLUDING MESSAGING AND IDENTIFICATION O F TARGET AUDIENCES ; AND 17
6. THE ANTICIPATED INVES TMENTS THAT WILL BE 18
MADE TO IMPROVE THE REUSE OF BEVERAGE CO NTAINERS, INCLUDING THE 19
SOURCE OF FUNDING FO R THE INVESTMENTS ; 20
(IV) LIST THE STAKEHOLDERS CONSULTED IN DEVELOP ING THE 21
PLAN; 22
(V) PROVIDE THE ANTICIPAT ED COSTS OF IMPLEMEN TING THE 23
PLAN FOR 5 YEARS, BROKEN DOWN BY YEAR ; 24
(VI) INCLUDE A CLOSURE AND TRANSFER PLAN FOR HA NDLING 25
THE AFFAIRS OF TH E BEVERAGE CONTAINER STEWARDSHIP ORGANIZA TION THAT 26
ENSURES THAT EACH PR ODUCER INTENDED TO B E COVERED UNDER THE BEVERAGE 27
CONTAINER STEWARDSHI P PLAN CAN FULFILL T HE PRODUCER ’S OBLIGATIONS IN 28
THE EVENT THAT THE B EVERAGE CONTAINER ST EWARDSHIP ORGANIZATI ON 29
DISSOLVES OR HAS ITS APP ROVAL AS A SYSTEM OP ERATOR REVOKED UNDER § 30
9–1741 OF THIS SUBTITLE ; AND 31
28 SENATE BILL 642
(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 STEWARDSHI P PLAN SHALL: 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 PARTICIPATI NG 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 AN D REFILLABLE BEVERAG E 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 ACCOUNT IN THE 21
STATE INTO WHICH A BE VERAGE CONTAINER STE WARDSHIP ORGANIZATIO N SHALL 22
DEPOSIT ALL UNEXPEND ED FUNDS FOR USE IN ACCORDANCE WITH THIS SECTION IN 23
THE EVENT THAT THE B EVERAGE CONTAINER ST EWARDSHIP ORGANIZATI ON 24
DISSOLVES OR HAS ITS APPROVAL AS A SYSTEM OPERATOR REVO KED 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 REQ UIRED UNDER PARAGRAP H (3) OF 29
THIS SUBSECTION FOR PRODUCERS PARTICIPAT ING IN A BEVERAGE CONTAIN ER 30
STEWARDSHIP ORGANIZA TION SHALL BE: 31
SENATE BILL 642 29
1. SET IN A MANNER THAT COVERS THE COSTS OF 1
ADMINISTERING A BEVE RAGE CONTAINER STEWA RDSHIP ORGANIZATION AND 2
IMPLEMENTING THE BEV ERAGE CONTAINER STEW ARDSHIP 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 REFIL LABLE; 9
C. WHETHER A PRODUCER ’S EMPTY REDEEMABLE 10
BEVERAGE CONTAI NERS ARE EASY TO REC YCLE; 11
D. WHETHER A PRODUCER ’S REDEEMABLE BEVERAG E 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 YEA R; 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 PARTICIPA TING IN A BEVERAGE C ONTAINER STEWARDSHIP 20
ORGANIZATION SHALL P AY THE FEE ESTABLISHED UNDER PA RAGRAPH (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 THIS SUBPARAGR APH TO AN 24
ACCOUNT HELD BY THE BEVERAGE CONTAINER S TEWARDSHIP ORGANIZATI ON. 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
STEWARDSH IP PLAN TO AN INDEPE NDENT FINANCIAL AUDI TOR TO ENSURE THAT 30
THE FINANCING PROPOS ED IN THE PLAN WILL COVER THE COSTS OF I MPLEMENTING 31
THE PLAN. 32 30 SENATE BILL 642
(B) (1) (I) WITHIN 120 DAYS AFTER RECEIPT O F A BEVERAGE 1
CONTAINER STEWARDSHI P PLAN SUBMITTED TO THE DEPARTMENT UN DER THIS 2
SECTION, THE DEPARTMENT SHALL APPR OVE, APPROVE WITH CONDITI ONS, OR 3
DENY THE PLAN . 4
(II) IN DETERMINING WHETHE R TO APPROVE , APPROVE WITH 5
CONDITIONS, OR DENY A BEVERAGE C ONTAINER STEWARDSHIP PLAN, THE 6
DEPARTMENT SHALL : 7
1. CONSIDER WHETHER : 8
A. THE PLAN COMPLIES WIT H THE REQUIREMENTS O F 9
THIS SECTION; AND 10
B. THERE WAS SUFFICIENT ENGAGEMENT WITH 11
STAKEHOLDERS , INCLUDING LOCAL GOVE RNMENTS, RETAILERS, DISTRIBUTORS , 12
AND ON–PREMISES SELLERS , IN DEVELOPING THE PL AN; AND 13
2. CONSULT WITH T HE ADVISORY COUNCIL. 14
(2) (I) THE DEPARTMENT MAY RESCIN D APPROVAL OF A 15
BEVERAGE CONTAINER S TEWARDSHIP PLAN FOR GOOD CAUSE. 16
(II) A BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION 17
MAY AMEND A RESCINDE D BEVERAGE CONTAINER STEWARDSHIP PLAN AND SUBMIT 18
THE AMENDED PLAN TO THE DEPARTMENT FOR APPROV AL. 19
(3) (I) A BEVERAGE CONTAINER S TEWARDSHIP PLAN APPR OVED 20
BY THE DEPARTMENT MAY BE AME NDED WITH APPROVAL O F THE DEPARTMENT . 21
(II) THE DEPARTMENT MAY REQUIR E THAT AN APPROVED 22
BEVERAGE CONTAINER S TEWARDSHIP PLAN BE AMENDED IF T HE REPORT 23
SUBMITTED UNDER § 9–1743 OF THIS SUBTITLE REF LECTS THAT THE 24
PERFORMANCE TARGETS HAVE NOT BEEN MET . 25
(C) AN APPROVED BEVERAGE CONTAINER STEWARDSHI P PLAN EXPIRES AT 26
THE END OF 5 YEARS. 27
(D) (1) A BEVERAGE CONTAINER S TEWARDSHIP ORGANIZATION SHALL 28
IMPLEMENT AND ADMINI STER A BEVERAGE CONT AINER STEWARDSHIP PL AN 29
WITHIN 6 MONTHS AFTER THE PLA N IS APPROVED. 30
SENATE BILL 642 31
(2) IN IMPLEMENTING AND A DMINISTERING A BEVER AGE CONTAINER 1
STEWARDSHIP PLAN , A BEVERAGE CONTAINER STEWARDSHIP ORGANIZA TION 2
SHALL: 3
(I) FACILITATE LOGISTICS , THE INITIATION OF DE POSITS, AND 4
THE ISSUANCE OF REFU NDS UNDER THE PLAN ; 5
(II) COORDINATE THE LOGIST ICS FOR COLLECTING 6
REDEEMABLE BEVERAGE CONTAINERS FROM AN O N–PREMISES SELLER ; 7
(III) ESTABLISH PROCEDURES FOR TRACKIN G REDEEMABLE 8
BEVERAGE CONTAINERS SOLD IN THE STATE; 9
(IV) DESIGN AND OPERATE SE RVICES FOR THE 10
TRANSPORTATION AND P ROCESSING OF REDEEMA BLE BEVERAGE CONTAIN ERS; 11
(V) DEVELOP AND IMPLEMENT A PLAN FOR ESTABLISH ING, 12
OPERATING, AND MANAGING REDEMPT ION FACILITIES THAT WILL OFF ER A WIDE 13
RANGE OF CONVENIENT REDEMPTION LOCATIONS AND TECHNOLOGIES THA T ARE 14
EASY TO USE, ACCESSIBLE, AND MEET OR EXCEED T HE CONVENIENCE STAND ARDS 15
ESTABLISHED BY THE DEPARTMENT UNDER § 9–1747 OF THIS SUBTITLE; 16
(VI) DEVELOP AND IMPL EMENT A PLAN FOR THE DISTRIBUTION, 17
OPERATION, AND MAINTENANCE OF B EVERAGE CONTAINER RE DEMPTION AND 18
PROCESSING METHODS , INCLUDING REVERSE VE NDING MACHINES , BAG DROP 19
PROGRAMS, AND ACCOUNT –BASED BULK PROCESSIN G PROGRAMS ; 20
(VII) DEVELOP ACCOUNTING AN D CONTROL STANDARDS ; 21
(VIII) IMPLEMENT ACCOUNTING , AUDIT, PAYMENT, AND 22
REPORTING PROCEDURES ; 23
(IX) ESTABLISH A HIGH –VOLUME VALIDATION AN D AUDIT 24
SYSTEM TO PAY A BULK RATE TO AN ON–PREMISES SELLER FOR THE REDEMPTION 25
OF EMPTY REDEEMABLE BEVERAGE CONTAINERS ; 26
(X) ESTABLISH AN APPLICAT ION PROCESS FOR LARG E 27
ON–PREMISES SELLERS TO APPLY FOR AND RECEIV E A BULK RATE FOR TH E 28
REDEMPTION OF HIGH V OLUMES OF EMPTY REDE EMABLE BEVERAGE CONT AINERS; 29
(XI) MARKET REDEEMABLE BEV ERAGE CONTAINER MATE RIALS 30
FOR REUSE IN THE MANUFACTURING OF SIM ILAR PRODUCTS ; 31
32 SENATE BILL 642
(XII) FUND A MARKETING PROG RAM TO EDUCATE THE P UBLIC 1
ABOUT THE PROGRAM; 2
(XIII) ESTABLISH A SYSTEM FO R REPORTING KEY INFO RMATION 3
GATHERED BY THE PROGRAM TO THE DEPARTMENT ON A QUART ERLY BASIS; AND 4
(XIV) CREATE INCENTIVES FOR THE D EVELOPMENT OF 5
REFILLABLE AND REUSA BLE BEVERAGE CONTAIN ER SYSTEMS. 6
(3) ON REQUEST OF THE DEPARTMENT , A BEVERAGE CONTAINER 7
STEWARDSHIP ORGANIZA TION SHALL SUBMIT A COPY OF ITS FINANCIA L RECORDS 8
TO THE DEPARTMENT FOR A FINA NCIAL AUDIT. 9
9–1743. 10
(A) THIS SECTION APPLIES TO A BEVERAGE CONTAI NER STEWARDSHIP 11
ORGANIZATION THAT HA S A BEVERAGE CONTAIN ER STEWARDSHIP PLAN APPROVED 12
BY THE DEPARTMENT UNDER § 9–1742 OF THIS SUBTITLE. 13
(B) (1) ON OR BEFORE APRIL 1 EACH YEAR, BEGINNING IN 2028, A 14
BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION SHALL SUBMIT A R EPORT TO 15
THE DEPARTMENT ON THE PRO GRESS MADE IN THE PR ECEDING CALENDAR YEA R 16
TOWARD MEETING THE P ERFORMANCE TARGETS A ND THE GOALS OF THE PROGRAM 17
AND THE BEVERAGE CON TAINER STEWARDSHIP O RGANIZATIO N’S BEVERAGE 18
CONTAINER STEWARDSHI P PLAN. 19
(2) THE DEPARTMENT SHALL PROV IDE THE ADVISORY COUNCIL 20
WITH A COPY OF EACH REPORT SUBMITTED UND ER THIS SUBSECTION . 21
(C) THE REPORT SUBMITTED UNDER SUBSECTION (B) OF THIS SECTION 22
SHALL INCLUDE , FOR THE PRECEDING C ALENDAR YEAR : 23
(1) THE PROGRESS MADE TOW ARD ACHIEVING THE PE RFORMANCE 24
TARGETS; 25
(2) IF THE PERFORMANCE TA RGETS WERE NOT ACHIE VED, A 26
DESCRIPTION OF THE A CTIONS PROPOSED TO A CHIEVE THE PERFORMAN CE 27
TARGETS; 28
(3) THE NUMBER OF REDEEMA BLE BEVERAGE CONTAINERS SOLD IN 29
THE STATE; 30
SENATE BILL 642 33
(4) THE NUMBER OF REDEEMA BLE BEVERAGE CONTAIN ERS SOLD IN 1
THE STATE SORTED BY MATER IAL TYPE, REFUND VALUE , AND WHETHER THE 2
CONTAINER CAN BE REF ILLED OR REUSED ; 3
(5) THE NUMBER OF EMPTY R EDEEMABLE BEVERAGE C ONTAINERS 4
REDEEMED; 5
(6) THE NUMBER OF EMPTY R EDEEMABLE BEVERAGE C ONTAINERS 6
REDEEMED AT EACH RED EMPTION FACILITY , REVERSE VENDING MACH INE, BAG 7
DROP PROGRAM , ACCOUNT–BASED BULK PROCESSIN G PROGRAM , OR OTHER 8
BEVERAGE CONTAINER R EDEMPTION AND PROCES SING METHOD SORTED B Y 9
MATERIAL TYPE, REFUND VALUE , AND WHETHER THE EMPT Y REDEEMABLE 10
BEVERAGE CONTAINER C AN BE REFILLED OR RE USED; 11
(7) THE REDEMPTION RATE A ND RECYCLING RATE FO R 12
NONREFILLABLE REDEEM ABLE BEVERAGE CONTAI NERS SOLD IN THE STATE 13
SORTED BY MATERIAL T YPE, NUMBER OF CON TAINERS SOLD , AND CONTAINER 14
WEIGHT; 15
(8) THE AMOUNT OF EACH TY PE OF: 16
(I) REDEEMABLE BEVERAGE C ONTAINER MATERIAL 17
COLLECTED IN THE STATE; AND 18
(II) SCRAP MATERIAL SOLD B Y A BEVERAGE CONTAIN ER 19
STEWARDSHIP ORGANIZA TION; 20
(9) THE LOCATION OF EACH REDEMPTION FACILITY IN THE STATE 21
AND THE REDEMPTION M ETHOD USED AT EACH R EDEMPTION FACILITY ; 22
(10) A DESCRIPTION OF ANY I MPROVEMENTS MADE TO MAKE 23
RETURNING EMPTY REDE EMABLE BEVERAGE CONT AINERS EASIER AND MO RE 24
CONVENIENT ; 25
(11) THE IDENTIFICATION AN D DESCRIPTION OF AREAS THAT DO NOT 26
HAVE READILY AVAILAB LE OPTIONS FOR REDEE MING AN EMPTY REDEEM ABLE 27
BEVERAGE CONTAINER A ND ACTIONS THE BEVER AGE CONTAINER STEWAR DSHIP 28
ORGANIZATION WILL TA KE TO IMPROVE OPTION S IN THESE AREAS; 29
(12) THE NUMBER OF CONSUME R COMPLAIN TS PER MONTH , SORTED 30
BY REDEMPTION FACILI TY; 31
34 SENATE BILL 642
(13) THE NUMBER OF INDIVID UALS AND ORGANIZATIO NS WITH 1
ACCOUNTS ESTABLISHED FOR THE RECEIPT OF E LECTRONIC DEPOSITS O R 2
REFUNDS; 3
(14) THE TOTAL COST OF IMP LEMENTING THE BEVERA GE CONTAINER 4
STEWARDSHIP PLAN , AS DETERMINED BY AN IND EPENDENT FINANCIAL A UDITOR 5
UNDER § 9–1742(A)(5) OF THIS SUBTITLE; 6
(15) THE AVERAGE COST OF P ROCESSING AN EMPTY R EDEEMED 7
REDEEMABLE BEVERAGE CONTAINER; 8
(16) A COPY OF THE AUDIT CO NDUCTED UNDER § 9–1742(A)(5) OF 9
THIS SUBTITLE; 10
(17) FINANCIAL STATEMENTS DETAILING ALL DEPOSI TS RECEIVED 11
AND REFUNDS ISSUED B Y EACH PRODUCER COVE RED UNDER THE BEVERA GE 12
CONTAINER STEWARDSHI P PLAN; 13
(18) THE TOTAL AMOUNT OF D EPOSITS INITIATED , REFUNDS ISSUED , 14
AND UNCLAIMED DEPOSI TS COLLECTED UNDER T HE BEVERAGE CONTAINER 15
STEWARDSHIP PLAN ; 16
(19) AN ACCOUNTING OF ALL ACTIVITIES AND INVES TMENTS 17
FINANCED BY UNCLAIME D DEPOSITS; 18
(20) EXPENDITURES AND REVE NUES SORTED BY SOURC E, INCLUDING 19
FEES PAID UNDER § 9–1742(A)(4) OF THIS SUBTITLE , REVENUE FROM THE SAL E OF 20
SCRAP MATERIALS , AND UNCLAIMED DEPOSI TS; 21
(21) SAMPLES OF ALL EDUCAT IONAL MATERIALS PROV IDED TO 22
CONSUMERS , RETAILERS, AND OTHER ENTITIES ; 23
(22) A DETAILED DESCRIPTION OF INVESTMENTS MADE IN NEW 24
REDEMPTION FACILITIE S AND REDEMPTION MET HODS; 25
(23) THE LOCATION OF NEW R EDEMPTION FACILITIES AND 26
REDEMPTION METHODS ; 27
(24) A DETAILED DESCRIPTION OF CHANGES MADE BY P RODUCERS TO 28
INCREASE THE RECYCLA BILITY OF REDEEMABLE BEVERAGE CONTAINERS ; 29
(25) A DETAILED DESCRIPTION OF ANY INCIDENTS OF FRAUD AND 30
EFFORTS TAKEN TO PREVEN T FRAUD; AND 31 SENATE BILL 642 35
(26) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT . 1
(D) THE FINANCIAL , PRODUCTION , AND SALES DATA OF IN DIVIDUAL 2
PRODUCERS REPORTED T O THE DEPARTMENT UNDER THIS SECTION SHALL BE 3
KEPT CONFIDENTIAL BY THE DEPARTMENT AN D THE ADVISORY COUNCIL. 4
(E) THE DEPARTMENT SHALL POST THE REPORT SUBMITTED UNDER THIS 5
SECTION ON THE DEPARTMENT ’S WEBSITE IN A MANNE R THAT PROTECTS THE 6
CONFIDENTIALITY OF T HE DATA SPECIFIED UN DER SUBSECTION (D) OF THIS 7
SECTION. 8
9–1744. 9
(A) THE DEPARTMENT SHALL ESTA BLISH A PROCESS FOR A COUNTY OR 10
MUNICIPAL CORPORATIO N TO CREATE A REDEMP TION FACILITY. 11
(B) EMPTY REDEEMABLE BEVE RAGE CONTAINERS REDE EMED AT A 12
REDEMPTION FACILITY MANAGED BY A COUNTY OR MUNICIPAL CORPORA TION 13
SHALL BE CREDITED TO WARD MEETING THE RECYCLING RATES REQUIRED UNDER § 14
9–505 OF THIS TITLE. 15
(C) (1) THROUGH DECEMBER 31, 2029, A PORTION OF PROGRAM 16
REVENUES SHALL BE US ED TO COMPENSATE A C OUNTY OR MUNICIPAL 17
CORPORATION FOR ANY NET LOSS OF REVENUE TO THE COUNTY ’S OR MUNICIPAL 18
CORPORATION’S WASTE MANAGEMENT S YSTEM THAT CAN BE DO CUMENTED AND 19
ATTRIBUTED TO THE PROGRAM. 20
(2) IN DETERMINING A NET LOSS OF REVENUE , A COUNTY OR 21
MUNICIPAL CORPORATIO N SHALL CONSIDER : 22
(I) THE LOSS OF REVENUE F ROM THE SALE OF SCRA P 23
MATERIALS; 24
(II) FINANCIAL SAVINGS FROM A REDUCTION IN: 25
1. GLASS BOTTLES IN THE RECYCLING STREAM ; 26
2. TRANSPORTATION COSTS ASSOCIATED WITH 27
CURBSIDE COLLECTION OF TRASH AND RECYCLI NG; 28
3. PROCESSING COSTS ASSO CIATED WITH RECYCLIN G 29
BEVERAGE CONTAINERS ; 30 36 SENATE BILL 642
4. THE COSTS OF LANDFILLING AND INCINERATING 1
BEVERAGE CONTAINERS THAT ARE NOT RECYCLE D; AND 2
5. THE COSTS OF LITTER C OLLECTION; AND 3
(III) FOR A COUNTY OR MUNIC IPAL CORPORATION THA T HAS A 4
TOTAL MAXIMUM DAILY LOAD FOR TRASH IN A WATERWAY UNDER ITS 5
JURISDICTION, THE REDUCED COSTS AN D INCREASED BENEFITS OF COMPLYING 6
WITH THE TOTAL MAXIM UM DAILY LOAD DUE TO A REDUCTION IN BEVER AGE 7
CONTAINER LITTER . 8
9–1745. 9
FUNDING FOR THE PROGRAM SHALL : 10
(1) INCLUDE: 11
(I) REDEEMABLE BEVERAGE C ONTAINER STEWARDSHIP 12
ORGANIZATION FEES CO LLECTED UNDER § 9–1742 OF THIS SUBTITLE; 13
(II) REVENUE FROM THE SALE OF RAW MATERIALS ; 14
(III) UNCLAIMED DEPOSITS CO LLECTED UNDER § 9–1739 OF 15
THIS SUBTITLE; 16
(IV) REGISTRATION FEES COL LECTED UNDER § 9–1740 OF THIS 17
SUBTITLE; AND 18
(V) PENALTIES COLLECTED U NDER § 9–1750 OF THIS 19
SUBTITLE; AND 20
(2) BE USED IN ACCORDANCE WITH §§ 9–1707(F), 9–1739, 9–1740, 21
AND 9–1750 OF THIS SUBTITLE. 22
9–1746. 23
(A) THERE IS A BEVERAGE CONTAINER RECYCLING REFUND GRANT 24
PROGRAM. 25
(B) THE PURPOSE OF THE GRANT PROGRAM IS TO PROVIDE FUNDING FOR 26
PROJECTS THAT : 27
SENATE BILL 642 37
(1) INCREASE THE REUSE AN D RECYCLING OF BEVER AGE 1
CONTAINERS IN THE STATE; 2
(2) INCREASE THE AVAILABI LITY OF PUBLIC WATER FOUNTAINS AND 3
REFILL STATIONS IN T HE STATE; AND 4
(3) REDUCE THE VOLUME OF LITTER FROM BEVERAGE CONTAINERS 5
IN THE STATE. 6
(C) THE DEPARTMENT SHALL ADMI NISTER THE GRANT PROGRAM. 7
(D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE GRANT 8
PROGRAM SHALL BE FUND ED FROM A PORTION OF THE UNCLAIMED DEPOSITS 9
TRANSFERRED TO THE S EPARATE ACCOUNT ESTA BLISHED UNDER § 9–1707(F)(7) OF 10
THIS SUBTITLE. 11
(2) THE GRANT PROGRAM MAY AWARD UP TO $5,000,000 IN GRANTS 12
EACH YEAR FROM THE U NCLAIMED DEPOSITS TR ANSFERRED TO THE SEP ARATE 13
ACCOUNT ESTABLISHED UN DER § 9–1707(F)(7) OF THIS SUBTITLE. 14
(E) THE FOLLOWING ENTITIE S ARE ELIGIBLE FOR A GRANT UNDER THE 15
GRANT PROGRAM: 16
(1) A SCHOOL OR AN INSTITU TION OF HIGHER EDUCA TION; 17
(2) A NONPROFIT ORGANIZATI ON; 18
(3) A COUNTY OR MUNICIPAL CORPORATION; 19
(4) A FOR–PROFIT ORGANIZATION ; AND 20
(5) A PUBLIC–PRIVATE PARTNERSHIP . 21
(F) THE DEPARTMENT , IN CONSULTATION WITH THE ADVISORY COUNCIL, 22
SHALL ADOPT REGULATI ONS ESTABLISHING : 23
(1) AN APPLICATION PROCES S FOR AN ENTITY TO A PPLY FOR A 24
GRANT; 25
(2) THE CRITERIA FOR EVAL UATING AND AWARDING GRANTS; 26
(3) REPORTING AND EVALUAT ION REQUIREMENTS FOR A GRANT 27
AWARDED UNDER THIS S ECTION; AND 28 38 SENATE BILL 642
(4) ANY OTHER REQUIREMENT S THE DEPARTMENT DETERMINES 1
ARE NECESSARY FOR AD MINISTERING AND IMPL EMENTING GRANTS AWARDED 2
UNDER THE GRANT PROGRAM. 3
(G) THE DEPARTMENT SHALL BEGI N AWARDING GRANTS ON OR BEFORE 4
JANUARY 1, 2028. 5
9–1747. 6
IN ADDITION TO THE DU TIES AND REQUIREMENT S SPECIFIED IN THIS PART, 7
THE DEPARTMENT SHALL : 8
(1) IN CONSULTATION WITH THE ADVISORY COUNCIL: 9
(I) ESTABLISH CONVENIENCE STANDARDS FOR THE CO VERAGE 10
AND AVAILABILITY OF REDEMPTION OPTIONS A CROSS THE STATE; AND 11
(II) ENSURE THE CONVENIENC E STANDARDS PROVIDE 12
ACCESSIBLE REDEMPTIO N OPTIONS FOR DIFFER ENTLY ABLED PEOPLE A ND PEOPLE 13
WHO LIVE IN RURAL AREAS OR LOW –INCOME COMMUNITIES O F COLOR; AND 14
(2) ESTABLISH A SYSTEM FO R LARGE ON –PREMISES SELLERS TO 15
VERIFY THE SOURCE OF THE HIGH VOLUMES OF REDEEMABLE BEVERAGE 16
CONTAINERS REDEEMED BY THE ON–PREMISES SELLER . 17
9–1748. 18
(A) THERE IS A REDEEMAB LE BEVERAGE CONTAINER RECYCLING 19
REFUND ADVISORY COUNCIL. 20
(B) THE ADVISORY COUNCIL CONSISTS OF T HE FOLLOWING MEMBERS , 21
DESIGNATED BY THE SECRETARY: 22
(1) ONE MEMBER REPRESENTI NG RECYCLING PROCESS ORS; 23
(2) ONE MEMBER REPRESENTI NG LOCAL GOVERNMENT AGENCIES 24
RESPONSIBLE FOR RECY CLING PROGRAMS ; 25
(3) ONE MEMBER REPRESENTI NG GLASS MANUFACTURE RS OR A 26
GLASS MANUFACTURING TRADE ORGANIZATION ; 27
SENATE BILL 642 39
(4) ONE MEMBER REPRESENTI NG ALUMINUM MANUFACT URERS OR 1
AN ALUMINUM MANUFACT URING TRADE ORGANIZA TION; 2
(5) ONE MEMBER REPRESENTING P LASTIC MANUFACTURERS OR A 3
PLASTIC MANUFACTURIN G TRADE ORGANIZATION ; 4
(6) ONE MEMBER REPRESENTI NG BEVERAGE COMPANIE S; 5
(7) ONE MEMBER REPRESENTI NG PURCHASERS OF REC YCLED 6
CONTENT; 7
(8) ONE MEMBER REPRESENTI NG RETAILERS; 8
(9) ONE MEMBER REPRESENTI NG RESTAURANTS OR OT HER 9
ON–PREMISES SELLERS ; 10
(10) ONE MEMBER REPRESENTI NG REVERSE VENDING M ACHINE 11
BUSINESSES; 12
(11) ONE MEMBER REPRESENTI NG ACCOUNT –BASED BULK 13
PROCESSORS ; 14
(12) ONE MEMBER REPRESENTI NG BUSINESSES INVOLV ED IN REUSE 15
AND REFILL SYSTEMS ; 16
(13) AT LEAST ONE MEMBER R EPRESENTING AN ENVIR ONMENTAL 17
ADVOCACY ORGANIZATIO N; 18
(14) AT LEAST ONE MEMBER R EPRESENTING AN ENVIR ONMENTAL 19
JUSTICE ADVOCACY ORG ANIZATION; AND 20
(15) AT LEAST TWO MEMBERS WHO ARE MEMBERS OF T HE GENERA L 21
PUBLIC AND RESIDE IN THE STATE. 22
(C) THE SECRETARY SHALL DESIG NATE TWO COCHAIRS FR OM AMONG THE 23
MEMBERSHIP OF THE ADVISORY COUNCIL. 24
(D) THE DEPARTMENT SHALL PROV IDE STAFF FOR THE ADVISORY 25
COUNCIL. 26
(E) A MEMBER OF THE ADVISORY COUNCIL: 27
40 SENATE BILL 642
(1) MAY NOT RECEIVE COMPENSATION AS A MEMBER OF THE 1
ADVISORY COUNCIL; BUT 2
(2) IS ENTITLED TO REIMBU RSEMENT FOR EXPENSES UNDER THE 3
STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET . 4
(F) THE ADVISORY COUNCIL SHALL MEET : 5
(1) AT LEAST QUARTERLY E ACH YEAR; AND 6
(2) AS REQUESTED BY THE DEPARTMENT . 7
(G) THE ADVISORY COUNCIL SHALL: 8
(1) ADVISE THE DEPARTMENT ON DETERMI NING WHETHER TO 9
APPROVE A BEVERAGE C ONTAINER STEWARDSHIP PLAN; 10
(2) MAKE RECOMMENDATIONS TO THE DEPARTMENT ON THE 11
IMPLEMENTATION OF APPROVED BEVERAGE CONTAINER STEWARDSHI P PLANS; 12
(3) REVIEW AND ADVISE THE DEPARTMENT ON THE ANN UAL 13
REPORTS SUBMITTED UN DER § 9–1743 OF THIS SUBTITLE; AND 14
(4) ADVISE THE DEPARTMENT ON THE IMP LEMENTATION , 15
ADMINISTRATION , AND PERFORMANCE OF T HE PROGRAM. 16
9–1749. 17
THE DEPARTMENT SHALL ADOP T REGULATIONS ON OR BEFORE JUNE 1, 2025, 18
TO CARRY OUT THIS PA RT. 19
9–1750. 20
(A) EXCEPT AS PROVIDED IN SUBSECTIONS (C) AND (D) OF THIS SECTION , 21
THE PROVISIONS OF §§ 9–334 THROUGH 9–344 OF THIS TITLE APPLY TO ENFORCE 22
VIOLATIONS OF THIS P ART. 23
(B) A PENALTY MAY NOT BE I MPOSED ON A PRODUCER FOR FAILING TO 24
PROPERLY REGISTER WI TH THE DEPARTMENT UNDER § 9–1740 OF THIS SUBTITLE , 25
INCLUDING FAILING TO IDENTIFY EACH BRAND OF REDEEMABLE BEVERA GE 26
CONTAINER THAT THE P RODUCER INT ENDS TO SELL , OFFER FOR SALE , OR 27
DISTRIBUTE IN THE STATE, UNLESS: 28
SENATE BILL 642 41
(1) THE DEPARTMENT FIRST ISSU ES A WRITTEN NOTICE OF THE 1
VIOLATION TO THE PRO DUCER; AND 2
(2) THE PRODUCER DOES NOT REGISTER WITHIN 90 DAYS AFTER 3
RECEIVING THE WRITTE N NOTICE. 4
(C) (1) A PERSON MAY NOT REDEE M, ATTEMPT TO REDEEM , RECEIVE, 5
STORE, TRANSPORT, DISTRIBUTE, OR OTHERWISE FACILIT ATE OR AID IN THE 6
REDEMPTION OF THE FO LLOWING MATERIALS WI TH AN INTENT TO DEFR AUD: 7
(I) AN EMPTY REDEEMABLE B EVERAGE CONTAINER TH AT WAS 8
SOLD IN ANOTHER STATE; 9
(II) AN EMPTY REDEEMABLE B EVERAGE CONTAINER TH AT WAS 10
REJECTED FOR REDEMPT ION; 11
(III) LINE BREAKAGE ; 12
(IV) A PREVIOUSLY REDEEMED REDEEMABLE BEVERAGE 13
CONTAINER; OR 14
(V) ANOTHER INELIGIBLE MA TERIAL. 15
(2) A PERSON MAY NOT DISPO SE OF A RE DEEMED REDEEMABLE 16
BEVERAGE CONTAINER I N A LANDFILL OR AN I NCINERATOR . 17
(3) THE DEPARTMENT SHALL ESTA BLISH ADMINISTRATIVE 18
PENALTIES FOR A VIOL ATION OF THIS SUBSEC TION THAT ARE BASED ON THE 19
NUMBER OF BEVERAGE C ONTAINERS AND REFUND AMOUNTS INVOLVED . 20
(D) (1) BEGINNING JANUARY 1, 2030, A PRODUCER OR BEVERA GE 21
CONTAINER STEWARDSHI P ORGANIZATION THAT HAS NOT REACHED THE 22
REDEMPTION RATES EST ABLISHED IN § 9–1736 OF THIS SUBTITLE FOR THE 23
IMMEDIATELY PRECEDIN G 2 YEARS IS SUBJECT TO AN ADMINISTRATIVE PE NALTY. 24
(2) EACH YEAR THAT A PROD UCER OR BEVERAGE CON TAINER 25
STEWARDSHIP ORGANIZA TION DOES NOT MEET T HE REDEMPTION RATES 26
ESTABLISHED IN § 9–1736 OF THIS SUBTITLE IS A SEPARATE VIOLATION UNDER THIS 27
SUBSECTION. 28
(3) AN ADMINISTRATIVE PEN ALTY ASSESSED UNDER THIS 29
SUBSECTION SHALL EQUAL TH E TOTAL NUMBER OF RE DEEMABLE BEVERAGE 30
CONTAINERS NEEDED TO BE REDEEMED TO MEET THE REDEMPTION RATES 31 42 SENATE BILL 642
ESTABLISHED IN § 9–1736 OF THIS SUBTITLE, MINUS THE NUMBER OF REDEEMABLE 1
BEVERAGE CONTAINERS ACTUALLY REDEEMED , MULTIPLIED BY 10 CENTS. 2
(E) THE DEPARTMENT MAY ALTER THE ADMINISTRATIVE P ENALTIES 3
ASSESSED UNDER SUBSE CTIONS (C) AND (D) OF THIS SECTION AS N ECESSARY TO 4
ENSURE THAT THE PENA LTY AMOUNTS ASSESSED EXCEED THE COSTS OF 5
COMPLYING WITH THIS PART. 6
(F) PENALTIES COLLECTED U NDER THIS SECTION SHALL BE : 7
(1) TRANSFERRED TO THE STATE RECYCLING TRUST FUND UNDER § 8
9–1707(F) OF THIS SUBTITLE; AND 9
(2) USED ONLY TO COVER TH E DEPARTMENT ’S COSTS OF PLANNING, 10
IMPLEMENTING , ADMINISTERING , MONITORING , ENFORCING, AND EVALUATING 11
THE PROGRAM. 12
9–1751. 13
A PRODUCER OR BEVERAGE CONTAINER STEWARDSHI P ORGANIZATION 14
PARTICIPATING IN A B EVERAGE CONTAINER ST EWARDSHIP PLAN IN AC CORDANCE 15
WITH THIS SUBTITLE I S IMMUNE FROM LIABIL ITY UNDER STATE LAWS CONCERNING 16
ANTITRUST AND RESTRA INT OF TRADE FOR COO PERATIVE ACTIVITIES ASSOCIA TED 17
WITH THE COLLECTION , TRANSPORT, PROCESSING, RECYCLING, REUSE, AND 18
MANAGEMENT OF EMPTY REDEEMABLE BEVERAGE CONTAINERS. 19
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 20
1, 2024. 21