EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. Underlining indicates amendments to bill. Strike out indicates matter stricken from the bill by amendment or deleted from the law by amendment. *hb0042* HOUSE BILL 42 M3, M4 5lr1619 (PRE–FILED) CF SB 134 By: Delegate Boyce Delegates Boyce, Healey, Lehman, R. Lewis, Ruth, and Stein Requested: November 1, 2024 Introduced and read first time: January 8, 2025 Assigned to: Environment and Transportation Committee Report: Favorable with amendments House action: Adopted Read second time: March 6, 2025 CHAPTER ______ AN ACT concerning 1 Solid Waste Disposal Surcharge On–Farm Organics and Wasted Food Reduction 2 and Diversion Fund and Grant Programs – Established 3 FOR the purpose of establishing the On–Farm Organics Diversion and Recycling Grant 4 Program in the Department of Agriculture to award grants to eligible entities to 5 develop and implement on–farm organics recycling and compost use, wasted food 6 prevention, and food rescue; establishing a solid waste disposal surcharge on the 7 final disposal of solid waste in the State; requiring, beginning on a certain date and 8 each quarter thereafter, the owner or operator of a refuse disposal system to submit 9 a certain solid waste disposal surcharge to the Comptroller in a certain manner; 10 requiring the Comptroller to deposit certain surcharges into a certain fund; 11 establishing the Wasted Food Reduction and Diversion Fund as a special, nonlapsing 12 fund and requiring interest earnings of the Fund to be credited to the Fund; 13 establishing the Wasted Food Reduction and Diversion Grant Program and the 14 County Wasted Food Reduction Block Grant Program in the Department of the 15 Environment to award grants and fund certain projects for infrastructure, programs, 16 and education that reduce, rescue, and divert wasted food in the State and certain 17 counties; authorizing the Governor to transfer a certain amount from the Maryland 18 Strategic Energy Investment Fund to certain programs in certain fiscal years; and 19 generally relating to wasted food reduction and diversion in the State. 20 BY adding to 21 Article – Agriculture 22 Section 2–109 23 2 HOUSE BILL 42 Annotated Code of Maryland 1 (2016 Replacement Volume and 2024 Supplement) 2 BY repealing and reenacting, without amendments, 3 Article – Agriculture 4 Section 2–401(a)(1) and (3) and 2–2001(a), (f), and (g) 5 Annotated Code of Maryland 6 (2016 Replacement Volume and 2024 Supplement) 7 BY repealing and reenacting, without amendments, 8 Article – Environment 9 Section 1–701(a)(1), (7), and (8) 10 Annotated Code of Maryland 11 (2013 Replacement Volume and 2024 Supplement) 12 BY repealing and reenacting, without amendments, 13 Article – Environment 14 Section 9–201(a) and (e) 15 Annotated Code of Maryland 16 (2014 Replacement Volume and 2024 Supplement) 17 BY adding to 18 Article – Environment 19 Section 9–1725.1, and 9–1725.2, 9–1725.3, and 9–1725.4 20 Annotated Code of Maryland 21 (2014 Replacement Volume and 2024 Supplement) 22 BY repealing and reenacting, without amendments, 23 Article – State Finance and Procurement 24 Section 6–226(a)(2)(i) 25 Annotated Code of Maryland 26 (2021 Replacement Volume and 2024 Supplement) 27 BY repealing and reenacting, with amendments, 28 Article – State Finance and Procurement 29 Section 6–226(a)(2)(ii)204. and 205. 30 Annotated Code of Maryland 31 (2021 Replacement Volume and 2024 Supplement) 32 BY adding to 33 Article – State Finance and Procurement 34 Section 6–226(a)(2)(ii)206. 35 Annotated Code of Maryland 36 (2021 Replacement Volume and 2024 Supplement) 37 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 38 That the Laws of Maryland read as follows: 39 HOUSE BILL 42 3 Article – Agriculture 1 2–109. 2 (A) (1) IN THIS SECTION THE F OLLOWING WORD S HAVE THE MEANINGS 3 INDICATED. 4 (2) “GRANT PROGRAM” MEANS THE ON–FARM ORGANICS 5 DIVERSION AND RECYCLING GRANT PROGRAM. 6 (3) “URBAN AGRICULTURAL PR ODUCER” HAS THE MEANING STAT ED 7 IN § 2–2001 OF THIS TITLE. 8 (4) “URBAN FARMER ” HAS THE MEANING STAT ED IN § 2–401 OF THIS 9 TITLE. 10 (B) THERE BEGINNING JULY 1, 2027, THERE IS AN ON–FARM ORGANICS 11 DIVERSION AND RECYCLING GRANT PROGRAM IN THE DEPARTMENT . 12 (C) THE PURPOSE OF THE GRANT PROGRAM IS TO AWARD G RANTS 13 ANNUALLY FOR DEVELOPING AND I MPLEMENTING ON –FARM ORGANICS RECYCL ING 14 AND COMPOST USE , WASTED FOOD PREVENTI ON, AND FOOD RESCUE . 15 (D) THE DEPARTMENT , IN CONSULTATION WITH THE DEPARTMENT OF THE 16 ENVIRONMENT , SHALL ADMINISTER THE GRANT PROGRAM. 17 (E) THE FOLLOWING PERSO NS ARE ELIGIBLE FOR A GRANT UNDER THE 18 GRANT PROGRAM: 19 (1) A FARMER, AN URBAN FARMER , OR AN URBAN AGRICULT URAL 20 PRODUCER; 21 (2) A SOIL CONSERVATION DI STRICT; 22 (3) AN INSTITUTION OF HIG HER EDUCATION AS DEF INED IN § 10–101 23 OF THE EDUCATION ARTICLE; 24 (4) A NONPROFIT ORGANIZATI ON; 25 (5) A BUSINESS IN THE STATE THAT IS IN: 26 (I) GOOD STANDING WITH TH E STATE DEPARTMENT OF 27 ASSESSMENTS AND TAXATION; AND 28 4 HOUSE BILL 42 (II) PARTNERSHIP WITH A FA RMER, AN URBAN FARMER , OR AN 1 URBAN AGRICULTURAL P RODUCER; AND 2 (6) A CONSORTIUM OF ANY EN TITIES UNDER THIS SU BSECTION. 3 (F) A PROJECT IS ELIGIBLE FOR A GRANT UNDER TH E GRANT PROGRAM IF 4 THE PROJECT DEVELOPS , MAINTAINS, OR EXPANDS INFRASTRU CTURE, COLLECTION 5 PROGRAMS, EDUCATION, OR TECHNICAL ASSISTA NCE IN THE STATE THAT: 6 (1) REDUCES THE AMOUNT OF WASTED FOOD GENERATE D; 7 (2) RESCUES EDIBLE FOOD F OR PURPOSES OF REDIS TRIBUTION; 8 (3) RECOVERS WASTED FOOD AS ANIMAL FEED IF TH E FEED IS 9 REGISTERED AND TREAT ED IN ACCORDANCE WIT H REGULATIONS IMPLEM ENTED BY 10 THE DEPARTMENT ; 11 (4) COMPOSTS OR RECYCLES FOOD RESIDUALS THAT ARE 12 SEPARATED FROM PACKA GING PRIOR TO COLLEC TION, INCLUDING AT –HOME, 13 COMMUNITY , AND ON–FARM COMPOSTING ; 14 (5) PROVIDES LABOR AND WA GES IN SUPPORT OF WA STED FOOD 15 PREVENTION , FOOD RESCUE , AND ON–FARM ORGANICS REC YCLING AND COMPOST 16 USE; 17 (6) PROVIDES BEST MANAGEM ENT PRACTICE TRAININ G IN 18 RELEVANT FIELDS BY A REPUTABLE TRAINING P ROGRAM; 19 (7) STUDIES THE IMPACTS O F COMPOST APPLICATIO N ON ON–FARM 20 NUTRIENT AND WATER Q UALITY MANAGEMENT ; OR 21 (8) ASSISTS IN THE PAYME NT OF APPLICABLE PER MIT APPLICATION 22 COSTS. 23 (G) IN AWARDING GRANTS UN DER THE GRANT PROGRAM, THE 24 DEPARTMENT , IN CONSULTATION WITH THE DEPARTMENT OF THE ENVIRONMENT , 25 SHALL PRIORITIZE PRO JECTS: 26 (1) FOR WHICH THE APPLICA NT CLEARLY DESCRIBES HOW THE 27 PROJECT WILL: 28 (I) PROVIDE DIRECT , MEANINGFUL , AND ASSURED BENEFITS 29 TO THE COMMUNITY ; AND 30 HOUSE BILL 42 5 (II) ADDRESS IMPORTANT COM MUNITY NEEDS ; 1 (2) THAT PREVENT , RESCUE, AND DIVERT WASTED FO OD WITHIN A 2 LOCAL COMMUNITY ; 3 (3) THAT PLAN TO PRODUCE COMPOST THAT MEETS THE 4 CLASSIFICATION OF “GENERAL USE” UNDER COMAR 15.18.04.05; 5 (4) THAT PLAN TO PRODUCE MINIMALLY CONTAMINAT ED COMPOST 6 THROUGH: 7 (I) PROCESSING ORGANIC MA TERIALS THAT ARE SEP ARATED 8 FROM PACKAGING PRIOR TO COLLECTION ; 9 (II) NOT USING DEPACKAGERS ; AND 10 (III) MEETING THE U.S. COMPOSTING COUNCIL’S SEAL OF 11 TESTING ASSURANCE; 12 (5) THAT SERVE AN OVERBUR DENED OR UNDERSERVED COMMUNITY 13 AS DEFINED IN § 1–701 OF THE ENVIRONMENT ARTICLE; 14 (6) THAT MINIMIZE NEGATIV E IMPACTS TO THE LOC AL COMMUNITY ; 15 AND 16 (7) THAT MAXIMIZE BENEFIT S TO THE LOCAL COMMU NITY, 17 INCLUDING: 18 (I) THE CREATION OF JOBS ; 19 (II) INCREASING JOB TRAINI NG; AND 20 (III) INCREASING HIRING AND LEADERSHIP DEVELOPME NT 21 PRACTICES THAT ARE I NCLUSIVE AND PROVIDE A LIVING WAGE. 22 (H) AN ELIGIBLE PERSON TH AT RECEIVES A GRANT UNDER THE GRANT 23 PROGRAM MAY NOT RECEI VE A GRANT UNDER THE WASTED FOOD REDUCTION AND 24 DIVERSION GRANT PROGRAM UNDER § 9–1725.3 9–1725.1 OF THE ENVIRONMENT 25 ARTICLE IN THE SAME C ALENDAR YEAR . 26 (I) ON OR BEFORE DECEMBER 31, 2027, AND EACH DECEMBER 31 27 THEREAFTER , THE DEPARTMENT SHALL REPO RT TO THE GENERAL ASSEMBLY, IN 28 ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON: 29 6 HOUSE BILL 42 (1) THE NUMBER AND TYPES OF GRANTS AWARDED ; 1 (2) THE IMPACT OF THE GRA NTS ON THE CREATION OF JOBS AND 2 OTHER BENEFITS TO TH E STATE; 3 (3) THE IMPACT ON FOOD WA STE PREVENTED , RESCUED, AND 4 DIVERTED FROM DISPOS AL; AND 5 (4) THE IMPACT ON FARMERS , URBAN FARMERS , AND URBAN 6 AGRICULTURAL PRODUCE RS IN THE STATE. 7 2–401. 8 (a) (1) In this section the following words have the meanings indicated. 9 (3) “Urban farmer” means an individual who farms in an urban area. 10 2–2001. 11 (a) In this subtitle the following words have the meanings indicated. 12 (f) “Urban agricultural producer” means any person that annually sells, or 13 normally would have sold, $1,000 or more of farm products in an urban area. 14 (g) “Urban area” means an area of the State that is: 15 (1) Delineated as an urban area by the U.S. Census Bureau; or 16 (2) Within the boundaries of a municipal corporation. 17 Article – Environment 18 1–701. 19 (a) (1) In this section the following words have the meanings indicated. 20 (7) “Overburdened community” means any census tract for which three or 21 more of the following environmental health indicators are above the 75th percentile 22 statewide: 23 (i) Particulate matter (PM) 2.5; 24 (ii) Ozone; 25 (iii) National Air Toxics Assessment (NATA) diesel PM; 26 HOUSE BILL 42 7 (iv) NATA cancer risk; 1 (v) NATA respiratory hazard index; 2 (vi) Traffic proximity; 3 (vii) Lead paint indicator; 4 (viii) National Priorities List Superfund site proximity; 5 (ix) Risk Management Plan facility proximity; 6 (x) Hazardous waste proximity; 7 (xi) Wastewater discharge indicator; 8 (xii) Proximity to a Concentrated Animal Feeding Operation (CAFO); 9 (xiii) Percent of the population lacking broadband coverage; 10 (xiv) Asthma emergency room discharges; 11 (xv) Myocardial infarction discharges; 12 (xvi) Low–birth–weight infants; 13 (xvii) Proximity to emitting power plants; 14 (xviii) Proximity to a Toxic Release Inventory (TRI) facility; 15 (xix) Proximity to a brownfields site; 16 (xx) Proximity to mining operations; and 17 (xxi) Proximity to a hazardous waste landfill. 18 (8) “Underserved community” means any census tract in which, according 19 to the most recent U.S. Census Bureau Survey: 20 (i) At least 25% of the residents qualify as low–income; 21 (ii) At least 50% of the residents identify as nonwhite; or 22 (iii) At least 15% of the residents have limited English proficiency. 23 9–201. 24 8 HOUSE BILL 42 (a) In this subtitle the following words have the meanings indicated. 1 (e) “Refuse disposal system” includes: 2 (1) An incinerator; 3 (2) A transfer station; 4 (3) A landfill system; 5 (4) A landfill; 6 (5) A solid waste processing facility; and 7 (6) Any other solid waste acceptance facility. 8 9–1725.1. 9 (A) IN THIS SECTION , “REFUSE DISPOSAL SYST EM” HAS THE MEANING 10 STATED IN § 9–201 OF THIS TITLE. 11 (B) (1) BEGINNING JULY 1, 2026, THERE IS A SOLID WAS TE DISPOSAL 12 SURCHARGE ON THE FIN AL DISPOSAL OF SOLID WA STE IN REFUSE DISPOS AL 13 SYSTEMS IN THE STATE. 14 (2) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , THE SOLID 15 WASTE DISPOSAL SURCH ARGE IS $2 PER TON OF SOLID WAS TE PROCESSED B Y A 16 REFUSE DISPOSAL SYST EM FOR FINAL DISPOSA L. 17 (3) ON OR BEFORE JULY 1, 2028, AND EVERY 2 YEARS THEREAFTER , 18 THE DEPARTMENT SHALL : 19 (I) ADJUST THE SOLID WAST E DISPOSAL SURCHARGE IN 20 ACCORDANCE WITH THE CONSUMER PRICE INDEX FOR THE MID–ATLANTIC 21 DIVISION; AND 22 (II) EVALUATE THE SOLID WA STE DISPOSAL SURCHAR GE TO 23 DETERMINE IF ADDITIO NAL ADJUSTMENTS TO T HE SURCHARGE ARE REQ UIRED. 24 (4) IF THE SURCHARGE HAS BEEN ASSESSED ON AN ELIGIBLE OWNER 25 OR OPERATOR OF A TRA NSFER STATION , THE SOLID WASTE DISP OSAL SURCHARGE 26 MAY NOT BE ASSESSED ON AN OWNER OR OPERA TOR OF A REFUSE DISP OSAL SYSTEM 27 THAT RECEIVES THE SO LID WASTE FOR FINAL DISPOSAL. 28 HOUSE BILL 42 9 (5) AN OWNER OR OPERATOR OF A REFUSE DISPOSAL SYSTEM SHALL 1 COLLECT THE SURCHARG E REQUIRED UNDER THI S SECTION BY INCLUDING THE 2 SURCHARGE AMOUNT DUE AS A SEPARATE LINE I TEM ON EVERY CUSTOME R BILL 3 PRESENTED TO A SOLID WASTE COLLECTOR OR G ENERATOR. 4 (6) A SOLID WASTE HAULER O R COLLECTOR MAY COLL ECT RATES, 5 FEES, OR SURCHARGES FROM S OLID WASTE GENERATOR S SERVICED BY THE SOLID 6 WASTE HAULER OR COLL ECTOR IN AN AMOUNT S UFFICIENT TO RECOVER THE 7 SURCHARGE COLLECTED BY THE OWNER OR OPER ATOR OF A REFUSE DIS POSAL 8 SYSTEM. 9 (C) (1) THE COMPTROLLER SHALL COL LECT THE SURCHARGE A SSESSED 10 UNDER THIS SECTION A ND DEPOSIT THE SURCH ARGE INTO THE WASTED FOOD 11 REDUCTION AND DIVERSION FUND UNDER § 9–1725.2 OF THIS SUBTITLE. 12 (2) (I) ON OR BEFORE JANUARY 1, 2027, AND EVERY QUARTER 13 THEREAFTER , THE OWNER OR OPERATO R OF A REFUSE DISPOSAL SYST EM IN THE 14 STATE SHALL SUBMIT , UNDER OATH , THE SUM OF SURCHARGES COLLECTED IN THE 15 IMMEDIATELY PRECEDIN G QUARTER TO THE COMPTROLLER . 16 (II) IN ADDITION TO THE SU RCHARGES SUBMITTED T O THE 17 COMPTROLLER UNDER SUB PARAGRAPH (I) OF THIS PARAGRAPH , THE OWNER OR 18 OPERATOR OF A REFUSE DISPOSAL SYSTEM SHAL L SUBMIT, AS APPLICABLE, AN 19 ACCOUNTING OF THE NU MBER OF TONS OF SOLI D WASTE ACCEPTED FOR DISPOSAL, 20 TRANSFER, OR COLLECTION DURING THE REPORTING PERIOD . 21 9–1725.2. 22 (A) IN THIS SECTION, “FUND” MEANS THE WASTED FOOD REDUCTION AND 23 DIVERSION FUND. 24 (B) THERE IS A WASTED FOOD REDUCTION AND DIVERSION FUND. 25 (C) THE PURPOSE OF THE FUND IS TO FUND ELIGI BLE PROJECTS UNDER 26 THE ON–FARM ORGANICS DIVERSION AND RECYCLING GRANT PROGRAM 27 ESTABLISHED UNDER § 2–109 OF THE AGRICULTURE ARTICLE, THE WASTED FOOD 28 REDUCTION AND DIVERSION GRANT PROGRAM ESTABLISHED U NDER § 29 9–1725.3 OF THIS SUBTITLE , AND THE COUNTY WASTED FOOD REDUCTION BLOCK 30 GRANT PROGRAM ESTABLISHED U NDER § 9–1725.4 OF THIS SUBTITLE. 31 (D) THE SECRETARY SHALL ADMIN ISTER THE FUND. 32 (E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 33 SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 34 10 HOUSE BILL 42 (2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 1 AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 2 (F) THE FUND CONSISTS OF : 3 (1) REVENUE DISTRIBUTED T O THE FUND UNDER § 9–1725.1 OF THIS 4 SUBTITLE; 5 (2) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; 6 (3) INTEREST EARNINGS ; AND 7 (4) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 8 THE BENEFIT OF THE FUND. 9 (G) (1) (I) NOT MORE THAN 25% OF THE FUND MAY B E USED FOR 10 ADMINISTRATIVE EXPEN SES JOINTLY BY THE DEPARTMENT AND THE DEPARTMENT 11 OF AGRICULTURE EACH FISC AL YEAR. 12 (II) NOT MORE THAN 0.5% OF THE FUND MAY BE USED FOR 13 ADMINISTRATIVE EXPEN SES BY THE COMPTROLLER EACH FISC AL YEAR. 14 (2) BEGINNING JULY 1, 2027, AND EACH JULY 1 THEREAFTER , THE 15 COMPTROLLER SHALL TRA NSFER THE REMAINING MONEY FROM THE FUND AFTER 16 ADMINISTRATIVE EXPEN SES UNDER PARAGRAPH (1) OF THIS SUBSECTION A S 17 FOLLOWS: 18 (I) 25% TO THE WASTED FOOD REDUCTION AND DIVERSION 19 GRANT PROGRAM UNDER § 9–1725.3 OF THIS SUBTITLE; 20 (II) 25% TO THE ON–FARM ORGANICS DIVERSION AND 21 RECYCLING GRANT PROGRAM UNDER § 2–109 OF THE AGRICULTURE ARTICLE; 22 AND 23 (III) 50% TO THE COUNTY WASTED FOOD REDUCTION BLOCK 24 GRANT PROGRAM UNDER § 9–1725.4 OF THIS SUBTITLE. 25 (H) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 26 IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 27 (2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 28 THE FUND. 29 HOUSE BILL 42 11 (I) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 1 WITH THE STATE BUDGET . 2 (J) MONEY EXPENDED FROM T HE FUND FOR THE WASTED FOOD 3 REDUCTION AND DIVERSION GRANT PROGRAM, THE ON–FARM ORGANICS 4 DIVERSION AND RECYCLING GRANT PROGRAM, AND THE COUNTY WASTED FOOD 5 REDUCTION BLOCK GRANT PROGRAM IS SUPPLEMENT AL TO AND IS NOT INTENDED 6 TO TAKE THE PLACE OF FUNDING THAT OTHERWI SE WOULD BE APPROPRI ATED FOR 7 THOSE PROGRAMS . 8 9–1725.3. 9 (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 10 INDICATED. 11 (2) “GRANT PROGRAM” MEANS THE WASTED FOOD REDUCTION AND 12 DIVERSION GRANT PROGRAM. 13 (3) “OVERBURDENED COMMUNIT Y” HAS THE MEANING STAT ED IN § 14 1–701 OF THIS ARTICLE. 15 (4) “UNDERSERVED COMMUNITY ” HAS THE MEANING STAT ED IN § 16 1–701 OF THIS ARTICLE. 17 (5) “URBAN AGRICULTURAL PR ODUCER” HAS THE MEANING STAT ED 18 IN § 2–2001 OF THE AGRICULTURE ARTICLE. 19 (6) “URBAN FARMER ” HAS THE MEANING STAT ED IN § 2–401 OF THE 20 AGRICULTURE ARTICLE. 21 (B) BEGINNING JULY 1, 2027, THERE IS A WASTED FOOD REDUCTION AND 22 DIVERSION GRANT PROGRAM IN THE DEPARTMENT . 23 (C) THE PURPOSE OF THE GRANT PROGRAM IS TO AWARD G RANTS 24 ANNUALLY FOR INFRAST RUCTURE, PROGRAMS, AND EDUCATION THAT R EDUCE, 25 RESCUE, AND DIVERT WASTED FO OD IN THE STATE. 26 (D) THE DEPARTMENT , IN CONSULTATION WITH THE DEPARTMENT OF 27 AGRICULTURE , SHALL ADMINISTER THE GRANT PROGRAM. 28 (E) THE FOLLOWING PERSONS ARE ELIGIBLE FOR A G RANT UNDER THE 29 GRANT PROGRAM: 30 (1) A UNIT OF STATE OR LOCAL GOVERN MENT; 31 12 HOUSE BILL 42 (2) A LOCAL EDUCATION AGEN CY; 1 (3) AN INSTITUTION OF HIG HER EDUCATION AS DEF INED IN § 10–101 2 OF THE EDUCATION ARTICLE; 3 (4) A NONPROFIT ORGANIZATION ; 4 (5) A FARMER, AN URBAN FARMER , OR AN URBAN AGRICULT URAL 5 PRODUCER; 6 (6) A BUSINESS IN THE STATE THAT IS IN GOOD STANDING WITH THE 7 STATE DEPARTMENT OF ASSESSMENTS AND TAXATION; AND 8 (7) A CONSORTIUM OF ANY EN TITIES UNDER THIS SU BSECTION. 9 (F) A PROJECT IS ELIGIBLE FOR A GRANT UNDER TH E GRANT PROGRAM IF 10 THE PROJECT DEVELOPS , MAINTAINS, OR EXPANDS INFRASTRU CTURE, COLLECTION 11 PROGRAMS, EDUCATION, OR TECHNICAL ASSISTA NCE IN THE STATE THAT: 12 (1) REDUCES THE AMOUNT OF WASTED FOOD GENERAT ED; 13 (2) RESCUES EDIBLE FOOD F OR PURPOSES OF REDIS TRIBUTION; 14 (3) RECOVERS WASTED FOOD AS ANIMAL FEED IF TH E FEED IS 15 REGISTERED AND TREAT ED IN ACCORDANCE WIT H REGULATIONS IMPLEM ENTED BY 16 THE DEPARTMENT OF AGRICULTURE ; 17 (4) COMPOSTS OR RECYCLES FOOD RE SIDUALS THAT ARE 18 SEPARATED FROM PACKA GING PRIOR TO COLLEC TION, INCLUDING 19 AT–HOME, COMMUNITY , AND ON–FARM COMPOSTING ; OR 20 (5) TRANSITIONS FROM SING LE–USE FOOD SERVICEWARE TO 21 DURABLE AND REUSABLE FOOD SERVICEWARE . 22 (G) IN AWARDING GRANTS UN DER THE GRANT PROGRAM, THE 23 DEPARTMENT , IN CONSULTATION WITH THE DEPARTMENT OF AGRICULTURE , 24 SHALL PRIORITIZE PRO JECTS: 25 (1) FOR WHICH THE APPLICA NT CLEARLY DESCRIBES HOW THE 26 PROJECT WILL: 27 (I) PROVIDE DIRECT , MEANINGFUL , AND ASSURED BENEFITS 28 TO THE COMMUNITY ; AND 29 HOUSE BILL 42 13 (II) ADDRESS IMPORTANT COM MUNITY NEEDS ; 1 (2) THAT PREVENT , RESCUE, AND DIVERT WASTED FO OD WITHIN A 2 LOCAL COMMUNITY ; 3 (3) THAT PLAN TO PRODUCE COMPOST THAT MEETS T HE 4 CLASSIFICATION OF “GENERAL USE ” UNDER COMAR 15.18.04.05; 5 (4) THAT PLAN TO PRODUCE MINIMALLY CO NTAMINATED COMPOST 6 THROUGH: 7 (I) PROCESSING ORGANIC MA TERIALS THAT ARE SEP ARATED 8 FROM PACKAGING PRIOR TO COLLECTION ; 9 (II) NOT USING DEPACKAGERS ; AND 10 (III) MEETING THE U.S. COMPOSTING COUNCIL’S SEAL OF 11 TESTING ASSURANCE; 12 (5) THAT SERVE AN OVERBUR DENED OR UNDERSERVED COMMUNITY ; 13 (6) THAT MINIMIZE NEGATIV E IMPACTS TO THE LOC AL COMMUNITY ; 14 AND 15 (7) THAT MAXIMIZE BENEFIT S TO THE LOCAL COMMU NITY, 16 INCLUDING: 17 (I) THE CREATION OF JOBS ; 18 (II) INCREASING JOB TRAINI NG; AND 19 (III) INCREASING HIRING AND LEADERSHIP DEVELOPME NT 20 PRACTICES THAT ARE I NCLUSIVE AND PROVIDE A LIVING WAGE. 21 (H) AN ELIGIBLE PERSON TH AT RECEIVES A GRANT UNDER THE GRANT 22 PROGRAM MAY NOT RECEI VE A GRANT UNDER THE ON–FARM ORGANICS 23 DIVERSION AND RECYCLING GRANT PROGRAM UNDER § 2–109 OF THE 24 AGRICULTURE ARTICLE IN THE SAME C ALENDAR YEAR . 25 (I) (1) THE DEPARTMENT , IN CONSULTATION WITH THE DEPARTMENT 26 OF AGRICULTURE , SHALL ADOPT REGULATI ONS TO IMPLEMENT THI S SECTION. 27 (2) REGULATIONS ADOPTED U NDER THIS SUBSECTION SHALL 28 INCLUDE: 29 14 HOUSE BILL 42 (I) A SIMPLE COMMON APPLIC ATION PROCEDURE ; AND 1 (II) FOR ELIGIBLE ENTITIES , A PROCESS TO FACILIT ATE THE 2 PARTICIPATION OF ELI GIBLE ENTITIES THAT HAVE LIMITED RESOURC ES OR 3 LANGUAGE BARRIERS . 4 (J) ON OR BEFORE DECEMBER 31, 2027, AND EACH DECEMBER 31 5 THEREAFTER , THE DEPARTMENT SHALL REPO RT TO THE GENERAL ASSEMBLY, IN 6 ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON: 7 (1) THE NUMBER AND TYPES OF GRANTS AWARDED ; 8 (2) THE IMPACT OF THE GRA NTS ON THE CREATION OF JOBS AND 9 OTHER BENEFITS TO TH E STATE; 10 (3) THE IMPACT ON WASTE P REVENTED, RESCUED, AND DIVERTED 11 FROM DISPOSAL ; AND 12 (4) THE IMPACT ON FARMERS , URBAN FARMERS , AND URBAN 13 AGRICULTURAL PRODUCE RS IN THE STATE. 14 9–1725.4. 9–1725.2. 15 (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 16 INDICATED. 17 (2) “GRANT PROGRAM” MEANS THE COUNTY WASTED FOOD 18 REDUCTION BLOCK GRANT PROGRAM. 19 (3) “OVERBURDENED COMMUNIT Y” HAS THE MEANING STAT ED IN § 20 1–701 OF THIS ARTICLE. 21 (4) “UNDERSERVED COMM UNITY” HAS THE MEANING STAT ED IN § 22 1–701 OF THIS ARTICLE. 23 (5) “URBAN AGRICULTURAL PR ODUCER” HAS THE MEANING STAT ED 24 IN § 2–2001 OF THE AGRICULTURE ARTICLE. 25 (6) “URBAN FARMER ” HAS THE MEANING STAT ED IN § 2–401 OF THE 26 AGRICULTURE ARTICLE. 27 (B) BEGINNING JULY 1, 2027, THERE IS A COUNTY WASTED FOOD 28 REDUCTION BLOCK GRANT PROGRAM IN THE DEPARTMENT . 29 HOUSE BILL 42 15 (C) (1) THE PURPOSE OF THE GRANT PROGRAM IS TO AWARD G RANTS TO 1 COUNTIES ANNUALLY IN AMOUNTS PROPORTIONAL TO EACH COUNTY ’S 2 POPULATION . 3 (2) FUNDS RECEIVED BY A COUNTY UN DER THIS SUBSECTION SHALL 4 FUND PROJECTS TO DEV ELOP, MAINTAIN, OR EXPAND INFRASTRUC TURE, 5 PROGRAMS, AND EDUCATION THAT R EDUCE, RESCUE, AND DIVERT WASTED FO OD IN 6 THE COUNTY. 7 (D) THE DEPARTMENT , IN CONSULTATION WITH THE DEPARTMENT OF 8 AGRICULTURE, SHALL ADMINISTER THE GRANT PROGRAM. 9 (E) IN FUNDING PROJECTS U NDER THE GRANT PROGRAM, A COUNTY SHALL 10 PRIORITIZE PROJECTS THAT: 11 (1) PROVIDE DIRECT , MEANINGFUL , AND ASSURED BENEFITS TO THE 12 COMMUNITY ; 13 (2) ADDRESS IMPORTANT COM MUNITY NEEDS ; 14 (3) PREVENT, RESCUE, AND DIVERT WASTED FO OD WITHIN A LOCAL 15 COMMUNITY ; 16 (4) PLAN TO PRODUCE COMPO ST THAT MEETS THE CL ASSIFICATION 17 OF “GENERAL USE ” UNDER COMAR 15.18.04.05; 18 (5) PLAN TO PRODUCE MINIM ALLY CONTAMINATED CO MPOST 19 THROUGH: 20 (I) PROCESSING O RGANIC MATERIALS THA T ARE SEPARATED 21 FROM PACKAGING PRIOR TO COLLECTION ; 22 (II) NOT USING DEPACKAGERS ; AND 23 (III) MEETING THE U.S. COMPOSTING COUNCIL’S SEAL OF 24 TESTING ASSURANCE; 25 (6) SERVE AN OVERBURDENED OR UNDERSERVED COMMU NITY; 26 (7) MINIMIZE NEGATIVE IMPACTS TO THE LOCAL COMMUNITY ; AND 27 (8) MAXIMIZE BENEFITS TO THE LOCAL COMMUNITY , INCLUDING: 28 (I) THE CREATION OF JOBS ; 29 16 HOUSE BILL 42 (II) INCREASING JOB TRAINI NG; AND 1 (III) INCREASING HIRING AND LEADERSHIP DEVELOPME NT 2 PRACTICES THAT ARE INCLUSIVE AND PROVID E A LIVING WAGE. 3 Article – State Finance and Procurement 4 6–226. 5 (a) (2) (i) 1. This subparagraph does not apply in fiscal years 2024 6 through 2028. 7 2. Notwithstanding any other provision of law, and unless 8 inconsistent with a federal law, grant agreement, or other federal requirement or with the 9 terms of a gift or settlement agreement, net interest on all State money allocated by the 10 State Treasurer under this section to special funds or accounts, and otherwise entitled to 11 receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 12 Fund of the State. 13 (ii) The provisions of subparagraph (i) of this paragraph do not apply 14 to the following funds: 15 204. the Victims of Domestic Violence Program Grant Fund; 16 [and] 17 205. the Proposed Programs Collaborative Grant Fund; AND 18 206. THE WASTED FOOD REDUCTION AND DIVERSION 19 FUND. 20 SECTION 2. AND BE IT FURTHER ENACTED, That, notwithstanding any other 21 provision of law, the Governor may transfer $3,000,000 in fiscal years 2027 through 2031 22 from the Maryland Strategic Energy Investment Fund established under § 9–20B–05 of the 23 State Government Article to each of the following programs, as enacted by Section 1 of this 24 Act: 25 (1) the On–Farm Organics Diversion and Recycling Grant Program under 26 § 2–109 of the Agriculture Article; 27 (2) the Wasted Food Reduction and Diversion Grant Program under § 28 9–1725.1 of the Environment Article; and 29 (3) the County Wasted Food Reduction Block Grant Program und er § 30 9–1725.2 of the Environment Article. 31 HOUSE BILL 42 17 SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 1 October 1, 2025. 2 Approved: ________________________________________________________________________________ Governor. ________________________________________________________________________________ Speaker of the House of Delegates. ________________________________________________________________________________ President of the Senate.