EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *hb0069* HOUSE BILL 69 M3 5lr1539 HB 168/24 – ENT & ECM (PRE–FILED) By: Delegates Terrasa, Charkoudian, Feldmark, Foley, Kaufman, Lehman, Mireku–North, Palakovich Carr, Ruth, Solomon, Vogel, and Wu Requested: October 31, 2024 Introduced and read first time: January 8, 2025 Assigned to: Environment and Transportation and Economic Matters A BILL ENTITLED AN ACT concerning 1 Environment – Plastic Products – Postconsumer Recycled Content Program 2 FOR the purpose of prohibiting certain producers of certain plastic products from selling, 3 offering for sale, or distributing the products to any person in the State unless certain 4 conditions are met; requiring certain producers of certain plastic products to, 5 individually or as part of a representative organization, register and pay a certain 6 fee annually to the Department of the Environment; establishing certain minimum 7 postconsumer recycled content percentage requirements for certain plastic beverage 8 containers and rigid plastic containers; authorizing the Department to grant a 9 certain waiver under certain circumstances; authorizing the Department to conduct 10 certain audits and investigations and to participate in a certain multistate 11 clearinghouse; requiring the Department to publish on its website certain 12 information; authorizing the Department to grant a reduction in certain 13 administrative penalties under certain circumstances; and generally relating to 14 plastic products and postconsumer recycled content. 15 BY repealing and reenacting, without amendments, 16 Article – Environment 17 Section 9–1702(a) 18 Annotated Code of Maryland 19 (2014 Replacement Volume and 2024 Supplement) 20 BY repealing and reenacting, with amendments, 21 Article – Environment 22 Section 9–1702(d) and 9–1707(f) 23 Annotated Code of Maryland 24 (2014 Replacement Volume and 2024 Supplement) 25 BY adding to 26 2 HOUSE BILL 69 Article – Environment 1 Section 9–2701 through 9–2710 to be under the new subtitle “Subtitle 27. 2 Postconsumer Recycled Content Program” 3 Annotated Code of Maryland 4 (2014 Replacement Volume and 2024 Supplement) 5 Preamble 6 WHEREAS, Minimum recycled content requirements in plastic containers protect 7 the environment and conserve resources by reducing greenhouse gas emissions and energy 8 consumption associated with the extraction of fossil fuels and production of new plastic, 9 and by diverting waste from landfills and incinerators; and 10 WHEREAS, Minimum recycled content requirements in plastic containers increase 11 and create a stable demand for recycled plastics, strengthen recycled commodity values, 12 increase economic growth, create jobs in the plastics recycling industry, and create 13 incentives for producers to redesign their products to be more recyclable; and 14 WHEREAS, The Department of the Environment’s Office of Recycling is required to 15 promote the development of markets for recycled materials and recycled products in the 16 State in accordance with § 9–1702(d) of the Environment Article; now, therefore, 17 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18 That the Laws of Maryland read as follows: 19 Article – Environment 20 9–1702. 21 (a) There is an Office of Recycling created within the Department. 22 (d) The Office shall: 23 (1) Assist the counties in developing an acceptable recycling plan required 24 under § 9–1703 of this subtitle and § 9–505 of this title, including technical assistance to 25 the local governments; 26 (2) Coordinate the efforts of the State to facilitate the implementation of 27 the recycling goals at the county level; 28 (3) Review all recycling plans submitted as part of a county plan as 29 required under § 9–505 of this title and advise the Secretary on the adequacy of the 30 recycling plan; 31 (4) Administer the Statewide Electronics Recycling Program under Part IV 32 of this subtitle; 33 HOUSE BILL 69 3 (5) ADMINISTER THE POSTCONSUMER RECYCLED CONTENT 1 PROGRAM UNDER SUBTITLE 27 OF THIS TITLE; 2 [(5)] (6) Promote the development of markets for recycled materials and 3 recycled products in the State in accordance with § 9–1702.1 of this subtitle; and 4 [(6)] (7) Review and approve plans and annual reports, including the 5 paint stewardship assessment, submitted in accordance with a Paint Stewardship Program 6 established under Part V of this subtitle. 7 9–1707. 8 (f) (1) There is a State Recycling Trust Fund. 9 (2) The Fund shall consist of: 10 (i) The newsprint recycling incentive fee; 11 (ii) The telephone directory recycling incentive fee collected under § 12 9–1709 of this subtitle; 13 (iii) The covered electronic device manufacturer registration fee 14 collected under § 9–1728 of this subtitle; 15 (iv) The Paint Stewardship Program plan and annual report review 16 fees collected under § 9–1733(b) and (h) of this subtitle; 17 (V) THE POSTCONSUMER RECY CLED CONTENT REGISTRATION 18 FEES COLLECTED UNDER § 9–2703 OF THIS TITLE; 19 [(v)] (VI) All fines and penalties collected under this subtitle AND § 20 9–2710 OF THIS TITLE; 21 [(vi)] (VII) Money appropriated in the State budget to the Fund; and 22 [(vii)] (VIII) Any other money from any other source accepted for the 23 benefit of the Fund. 24 (3) The Secretary shall administer the Fund. 25 (4) The Treasurer shall hold the Fund separately and the Comptroller shall 26 account for the Fund. 27 (5) [At] EXCEPT AS PROVIDED IN PARAGRAPH (7) OF THIS 28 SUBSECTION, AT the end of each fiscal year, any unspent or unencumbered balance in the 29 4 HOUSE BILL 69 Fund that exceeds $2,000,000 shall revert to the General Fund of the State in accordance 1 with § 7–302 of the State Finance and Procurement Article. 2 (6) In accordance with the State budget, the Fund shall be used only: 3 (i) To provide grants to the counties to be used by the counties to 4 develop and implement local recycling plans; 5 (ii) To provide grants to counties that have addressed methods for 6 the separate collection and recycling of covered electronic devices in accordance with § 7 9–1703(c)(1) of this subtitle; 8 (iii) To provide grants to municipalities to be used by the 9 municipalities to implement local covered electronic device recycling programs; 10 (IV) TO COVER THE COSTS OF PLANNING, IMPLEMENTING , 11 ADMINISTERING , MONITORING , ENFORCING, AND EVALUATING THE 12 POSTCONSUMER RECYCLED CONTENT PROGRAM ESTABLISHED U NDER SUBTITLE 13 27 OF THIS TITLE; 14 [(iv)] (V) To cover the costs of the Paint Stewardship Program plan 15 review under § 9–1733(b) of this subtitle, the annual report review under § 9–1733(h) of 16 this subtitle, and associated costs for Program compliance oversight; and 17 [(v)] (VI) To carry out the purposes of the land management 18 administration. 19 (7) (I) THERE SHALL BE A SEPA RATE ACCOUNT WITHIN THE FUND. 20 (II) THE SEPARATE ACCOUNT SHALL CONSIST OF : 21 1. ANY FEES COLLECTED FR OM PRODUCERS OF 22 COVERED PRODUCTS UND ER § 9–2703 OF THIS TITLE; AND 23 2. ALL FINES AND PENALTI ES COLLECTED UNDER § 24 9–2710 OF THIS TITLE. 25 (III) THE SEPARATE ACCOUNT SHALL BE USED ONLY T O: 26 1. REIMBURSE THE GENERAL FUND OF THE STATE IN 27 ACCORDANCE WITH § 9–2703(A)(4)(II)1 OF THIS TITLE; AND 28 2. COVER THE COSTS OF PL ANNING, IMPLEMENTING , 29 ADMINISTERING , MONITORING , ENFORCING, AND EVALUATING THE 30 HOUSE BILL 69 5 POSTCONSUMER RECYCLED CONTENT PROGRAM ESTABLISHED U NDER SUBTITLE 1 27 OF THIS TITLE. 2 (IV) MONEY DEPOSITED INTO THE SEPARATE ACCOUNT IS NOT 3 SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE AND 4 MAY NOT REVERT TO TH E GENERAL FUND OF THE STATE. 5 [(7)] (8) (i) The Treasurer shall invest the money in the Fund in the 6 same manner as other State money may be invested. 7 (ii) Any investment earnings of the Fund shall be credited to 8 the General Fund of the State. 9 SUBTITLE 27. POSTCONSUMER RECYCLED CONTENT PROGRAM. 10 9–2701. 11 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 12 INDICATED. 13 (B) “COVERED PRODUCT ” MEANS A PRODUCT THAT IS SUBJECT TO THE 14 POSTCONSUMER RECYCLE D CONTENT PERCENTAGE REQUIREMENTS ESTABLI SHED 15 UNDER THIS SUBTITLE . 16 (C) (1) “HOUSEHOLD CLEANING PR ODUCT” MEANS A PRODUCT THAT IS 17 LABELED OR MARKETED TO CLEAN, FRESHEN, OR REMOVE UNWANTED S UBSTANCES 18 SUCH AS DIRT , STAINS, OR OTHER IMPURITIES F ROM OBJECTS , INTERIOR OR 19 EXTERIOR STRUCTURES , VEHICLES, POSSESSIONS, AND OTHER ENVIRONMEN TS 20 ASSOCIATED WITH A HO USEHOLD. 21 (2) “HOUSEHOLD CLEANING PR ODUCT” INCLUDES: 22 (I) LIQUID SOAPS, LAUNDRY SOAPS , DETERGENTS , FABRIC 23 SOFTENERS, SURFACE POLISHES , AND STAIN REMOVERS ; AND 24 (II) TEXTILE CLEANERS , CARPET CLEANERS , AND PET 25 CLEANERS AND TREATME NTS. 26 (D) (1) “PERSONAL CARE PRODUCT ” MEANS A PRODUCT THAT IS 27 LABELED OR MARKETED FOR THE APPLICATION TO AN INDIVIDUAL IN ORDER TO 28 CLEAN, ALTER, OR MAINTAIN THE APPE ARANCE OF THE INDIVI DUAL. 29 (2) “PERSONAL CARE PRODUCT ” INCLUDES: 30 6 HOUSE BILL 69 (I) SHAMPOO, CONDITIONER , STYLING SPRAYS AND G ELS, AND 1 OTHER HAIR CARE PROD UCTS; 2 (II) LOTION, MOISTURIZER, FACIAL TONER , AND OTHER SKIN 3 CARE PRODUCTS ; AND 4 (III) LIQUID SOAP AND OTHER BODY CARE PRODUCTS . 5 (E) (1) “POSTCONSUMER RECYCLED CONTENT” MEANS THE PORTION OF 6 A COVERED PRODUCT ’S TOTAL WEIGHT THAT IS COMPOSED OF POSTC ONSUMER 7 RECYCLED MATERIAL , AS DETERMINED BY A M ATERIAL BALANCE APPR OACH THAT 8 CALCULATES TOTAL POSTCONS UMER RECYCLED MATERI AL AS A PERCENTAGE O F 9 THE TOTAL WEIGHT OF THE COVERED PRODUCT . 10 (2) “POSTCONSUMER RECYCLED CONTENT” DOES NOT INCLUDE 11 PRECONSUMER OR POSTI NDUSTRIAL SECONDARY WASTE MATERIAL OR MA TERIALS 12 AND BY–PRODUCTS GENERATED F ROM, AND COMMONLY USED WI THIN, AN ORIGINAL 13 MANUFACTURING AND FA BRICATION PROCESS . 14 (F) “POSTCONSUMER RECYCLED MATERIAL” MEANS A MATERIAL OR 15 PRODUCT GENERATED BY HOUSEHOLDS OR BY COM MERCIAL, INDUSTRIAL, AND 16 INSTITUTIONAL FACILI TIES IN THEIR ROLE A S END USERS OF THE MATERIAL OR 17 PRODUCT THAT HAS : 18 (1) BEEN USED FOR ITS INT ENDED USE OR CAN NO LONGER BE USED 19 FOR ITS INTENDED USE , INCLUDING MATERIAL O R PRODUCT THAT HAS B EEN 20 RETURNED FROM THE DI STRIBUTION CHAIN ; AND 21 (2) BEEN SEPARATED FROM T HE SOLID WASTE STREAM FOR THE 22 PURPOSES OF COLLECTI ON AND RECYCLING . 23 (G) (1) “PRODUCER” MEANS A PERSON RESPO NSIBLE FOR COMPLYING 24 WITH THE REQUIREMENT S UNDER THIS SUBTITL E. 25 (2) “PRODUCER” INCLUDES A FRANCHISO R OF A FRANCHISE 26 LOCATED IN THE STATE. 27 (3) “PRODUCER” DOES NOT INCLUDE : 28 (I) THE STATE, A COUNTY, A MUNICIPALITY , OR ANY OTHER 29 POLITICAL SUBDIVISIO N OF THE STATE; 30 HOUSE BILL 69 7 (II) A CHARITABLE ORGANIZAT ION THAT IS TAX EXEM PT UNDER 1 § 501(C)(3) OF THE INTERNAL REVENUE CODE; 2 (III) A SOCIAL WELFARE ORGAN IZATION THAT IS TAX EXEMPT 3 UNDER § 501(C)(4) OF THE INTERNAL REVENUE CODE; 4 (IV) A FRANCHISEE THAT OPER ATES A FRANCHISE IN THE 5 STATE; 6 (V) A PERSON THAT ANNUALLY SELLS, OFFERS FOR SALE , 7 DISTRIBUTES, OR IMPORTS INTO THE COUNTRY FOR SALE IN THE STATE LESS THAN 8 1 TON OF A SINGLE CATE GORY OF COVERED PROD UCTS; OR 9 (VI) A PERSON THAT ANNUALLY SELLS, OFFERS FOR SALE , OR 10 DISTRIBUTES ANY CATE GORY OF A COVERED PR ODUCT IN THE STATE IF THE 11 PERSON’S AGGREGATE GLOBAL A NNUAL REVENUE IS LES S THAN $5,000,000. 12 (H) “PROGRAM” MEANS THE POSTCONSUMER RECYCLING CONTENT 13 PROGRAM. 14 9–2702. 15 (A) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THIS SECTION 16 APPLIES TO A PRODUCE R THAT SELLS , OFFERS FOR SALE , OR DISTRIBUTES A 17 COVERED PRODUCT IN T HE STATE. 18 (2) (I) IF THE COVERED PROD UCT IS SOLD UNDER TH E 19 PRODUCER’S OWN BRAND OR LACKS IDENTIFICATION OF A BRAND, THE PRODUCER 20 IS THE PERSON WHO MA NUFACTURES THE COVER ED PRODUCT. 21 (II) IF THE COVERED PRODUC T IS MANUFACTURED BY A 22 PERSON OTHER THAN TH E BRAND OWNER , THE PRODUCER IS THE PERSON WHO IS 23 THE LICENSEE OF A BR AND OR TRADEMARK UND ER WHICH A COVERED P RODUCT IS 24 SOLD, OFFERED FOR SALE , OR DISTRIBUTED IN TH E STATE, WHETHER OR NOT THE 25 TRADEMARK IS REGISTE RED IN THE STATE, UNLESS ANOTHER RESPO NSIBLE 26 PERSON HAS CONTRACTU ALLY ASSUMED RESPON SIBILITY AS THE PROD UCER. 27 (III) IF THERE IS NO PERSON DESCRIBED IN SUBPARA GRAPH (I) 28 OR (II) OF THIS PARAGRAPH OV ER WHOM THE STATE CAN CONSTITUTIO NALLY 29 EXERCISE JURISDICTIO N, THE PRODUCER IS THE PERSON WHO IMPORTS O R 30 DISTRIBUTES THE COVE RED PRODUCT IN THE STATE. 31 8 HOUSE BILL 69 (3) IF ANOTHER PERSON CON TRACTUALLY ASSUMES 1 RESPONSIBILITY AS A PRODUCER UNDER PARAG RAPH (2)(II) OF THIS SUBSECTION , 2 THE PRODUCER MUST PR OVIDE A CERTIFIED CO PY OF THE CONTRACT A GREEMENT 3 TO THE DEPARTMENT . 4 (B) A PRODUCER MAY NOT SEL L, OFFER FOR SALE, OR DISTRIBUTE A 5 COVERED PRODUCT TO A NY PERSON IN THE STATE UNLESS: 6 (1) THE PRODUCT MEETS THE MINIMUM POSTCONSUMER RECYCLED 7 CONTENT PERCENTAGE R EQUIREMENTS ESTABLIS HED UNDER THIS SUBTI TLE; AND 8 (2) IN ACCORDANCE WITH § 9–2703 OF THIS SUBTITLE, THE 9 PRODUCER HAS , INDIVIDUALLY OR AS P ART OF A REPRESENTAT IVE ORGANIZATION : 10 (I) REGISTERED WITH THE DEPARTMENT ; AND 11 (II) SUBMITTED A REGISTRAT ION FEE TO THE DEPARTMENT . 12 9–2703. 13 (A) (1) ON OR BEFORE MARCH 1 EACH YEAR, BEGINNING IN 2026, A 14 PRODUCER SHALL , INDIVIDUALLY OR AS P ART OF A REPRESENTAT IVE 15 ORGANIZATION , REGISTER WITH THE DEPARTMENT . 16 (2) ON OR BEFORE MAY 15 EACH YEAR, BEGINNING IN 2026, A 17 PRODUCER SHALL , INDIVIDUALLY OR AS P ART OF A REPRESENTAT IVE 18 ORGANIZATION , PAY THE REGISTRA TION FEE ESTABLISHED BY THE DEPARTMENT 19 UNDER PARAGRAPH (3) OF THIS SUBSECTION . 20 (3) (I) THE DEPARTMENT SHALL ESTA BLISH AN ANNUAL 21 REGISTRATION FEE FOR EACH CATEGORY OF A C OVERED PRODUCT . 22 (II) EXCEPT AS PROVIDED IN SUBPARAGRAPH (III) OF THIS 23 PARAGRAPH , REGISTRATION FEES SH ALL BE SET IN A MANN ER THAT: 24 1. WILL PRODUCE FUNDS SU FFICIENT TO COVER TH E 25 DEPARTMENT ’S ESTIMATED COSTS OF PLANNING, IMPLEMENTING , 26 ADMINISTERING , MONITORING , ENFORCING, AND EVALUATING THE PROGRAM FOR 27 THE UPCOMING 1–YEAR PERIOD; AND 28 2. IS PROPORTIONAL TO TH E PRODUCER ’S SHARE OF 29 THE TOTAL POUNDS OF PLASTIC SOLD IN THE STATE IN EACH PRODUCT CATEGORY 30 FOR THE IMMEDIATELY PRECEDING YEAR . 31 HOUSE BILL 69 9 (III) FOR THE FIRST YEAR OF THE PROGRAM’S OPERATION , 1 REGISTRATION FEES SH ALL BE SET IN A MANNER THAT: 2 1. WILL PRODUCE FUNDS SU FFICIENT TO COVER TH E 3 DEPARTMENT ’S ESTIMATED COSTS OF PLANNING, IMPLEMENTING , 4 ADMINISTERING , MONITORING , ENFORCING, AND EVALUATING THE PROGRAM FOR 5 THE UPCOMING 1–YEAR PERIOD; 6 2. WILL PRODUCE FUNDS SU FFICIENT TO REIMBURSE 7 THE GENERAL FUND OF THE STATE FOR THE ACTUAL COSTS THAT RESULT FR OM 8 THE PROGRAM IN THAT YEAR ; AND 9 3. IS PROPORTIONAL TO TH E PRODUCER ’S SHARE OF 10 THE TOTAL POUNDS OF PLASTIC SOLD IN THE STATE IN EACH PRODUCT CATEGORY 11 FOR THE IMMEDIATELY PRECEDING YEAR. 12 (4) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 13 PARAGRAPH , IF, IN ANY YEAR, THE AMOUNT OF REGIST RATION FEE REVENUE 14 COLLECTED BY THE DEPARTMENT EXCEEDS TH E DEPARTMENT ’S ACTUAL COSTS OF 15 PLANNING, IMPLEMENTING , ADMINISTERING , MONITORING , ENFORCING, AND 16 EVALUATING THE PROGRAM, THE DEPARTMENT SHALL CARR Y THE EXCESS 17 AMOUNT FORWARD FOR T HE PURPOSE OF REDUCI NG REGISTRATION FEES FOR THE 18 FOLLOWING YEAR . 19 (II) FOR THE FIRST YEAR OF THE PROGRAM’S OPERATION , 20 REGISTRATION FEE REV ENUE SHALL BE USE D: 21 1. NOTWITHSTANDING § 9–1707(F)(7)(IV) OF THIS 22 TITLE, TO REIMBURSE THE GENERAL FUND OF THE STATE FOR ACTUAL COST S THAT 23 RESULT FROM THE PROGRAM FOR THAT YEAR ; AND 24 2. TO COVER THE DEPARTMENT ’S ACTUAL COSTS OF 25 PLANNING, IMPLEMENTING , ADMINISTERING , MONITORING , ENFORCING, AND 26 EVALUATING THE PROGRAM. 27 (5) IF, IN ANY GIVEN YEAR , THE AMOUNT OF REGIST RATION FEE 28 REVENUE COLLECTED BY THE DEPARTMENT IS INSUFFI CIENT TO COVER THE 29 DEPARTMENT ’S ACTUAL COSTS OF PL ANNING, IMPLEMENTING , ADMINISTERING , 30 MONITORIN G, ENFORCING, AND EVALUATING THE PROGRAM, THE DEPARTMENT 31 SHALL ADJUST REGISTR ATION FEES FOR THE F OLLOWING YEAR TO COV ER THE 32 DEPARTMENT ’S ACTUAL COSTS. 33 10 HOUSE BILL 69 (B) THE REGISTRATION SHAL L INCLUDE INFORMATIO N REGARDING : 1 (1) EACH PRODUCER INCLUDE D UNDER THE REGIS TRATION; 2 (2) EACH BRAND OF A COVER ED PRODUCT INCLUDED UNDER THE 3 REGISTRATION ; 4 (3) THE TOTAL NUMBER OF C OVERED PRODUCTS SOLD IN THE STATE 5 IN THE IMMEDIATELY P RECEDING CALENDAR YE AR, INCLUDING THE TOTAL 6 NUMBER BY EACH CATEG ORY OF A COVERED PRO DUCT; 7 (4) THE TOTAL WEIGHT OF C OVERED PRODUCTS SOLD IN THE STATE 8 IN THE IMMEDIATELY P RECEDING CALENDAR YE AR, INCLUDING THE TOTAL WEIGHT 9 BY EACH CATEGORY OF A COVERED PRODUCT ; 10 (5) THE AVERAGE PERCENTAG E OF POSTCONSUMER RE CYCLED 11 CONTENT FOR EACH CAT EGORY OF A COVERED PRODUCT SOLD IN THE STATE IN THE 12 IMMEDIATELY PRECEDIN G CALENDAR YEAR ; 13 (6) PROOF OF THIRD –PARTY CERTIFICATION IN ACCORDANCE WITH 14 SUBSECTION (C) OF THIS SECTION; AND 15 (7) ANY ADDITIONAL INFORM ATION REQUIRED BY TH E DEPARTMENT 16 IN REGULATION . 17 (C) (1) ON OR BEFORE MARCH 1 EACH YEAR, BEGINNING IN 2028, A 18 PRODUCER SHALL INCLU DE PROOF OF THIRD –PARTY CERTIFICATION OF THE 19 POSTCONSUMER RECYCLE D CONTENT OF EACH CO VERED PRODUCT INCLUD ED IN 20 THE REGISTRATION IN A MANNER REQUIRED BY THE DEPARTMENT . 21 (2) THE CERTIFICATION REQUIR ED UNDER PARAGRAPH (1) OF THIS 22 SUBSECTION SHALL BE COMPLETED BY AN INDE PENDENT, ACCREDITED 23 CERTIFYING BODY AS R EQUIRED BY THE INTERNATIONAL ORGANIZATION FOR 24 STANDARDIZATION . 25 (D) ANY SALES DATA SUBMIT TED TO THE DEPARTMENT TO COMPLY WITH 26 THE REQUIREMENTS OF THIS SECTION SHALL B E TREATED AS CONFIDE NTIAL AND 27 PROPRIETARY , AND MAY NOT BE DISCL OSED EXCEPT AS OTHER WISE REQUIRED BY 28 LAW. 29 9–2704. 30 HOUSE BILL 69 11 (A) (1) THIS SECTION APPLIES TO BEVERAGE CONTAINE RS THAT ARE 1 PRIMARILY COMPOSED O F ONE OR MORE PLA STIC RESINS AND INTE NDED TO 2 CONTAIN BEVERAGES UP TO 2 GALLONS IN CAPACITY , INCLUDING AN IN DIVIDUAL, 3 SEALABLE, SEPARATE BOTTLE , CAN, JAR, CARTON, OR OTHER BEVERAGE 4 CONTAINER THAT IS CA PABLE OF MAINTAINING ITS SHAPE WHEN EMPTY . 5 (2) THIS SECTION DOES NOT APPLY TO: 6 (I) REFILLABLE BEVERAGE C ONTAINERS, INCLUDING 7 CONTAINERS THAT ARE SUFFICIENTLY DURABLE FOR MULTIPLE ROTATIO NS OF 8 THEIR ORIGINAL PURPO SE OR A SIMILAR PURP OSE AND ARE INTENDED TO 9 FUNCTION IN A SYSTEM OF REUSE; 10 (II) LINERS, BLADDERS, CAPS, CORKS, CLOSURES, LABELS, AND 11 OTHER ITEMS ADDED TO THE BOTTLE OR CONTAI NER BUT THAT ARE SEP ARATE 12 FROM THE STRUCTURE O F THE BOTTLE OR CONT AINER; 13 (III) CONTAINERS CERTIFIED BY THE BIODEGRADABLE 14 PRODUCTS INSTITUTE AS COMPOSTA BLE; OR 15 (IV) CONTAINERS USE D FOR INFANT FORMULA , MEDICAL 16 BEVERAGES, OR FORTIFIED ORAL NU TRITIONAL SUPPLEMENT S. 17 (B) THE MINIMUM POSTCONSU MER RECYCLED CONTENT PERCENTAGE 18 REQUIREMENT FOR PLAS TIC BEVERAGE CONTAIN ERS IS: 19 (1) FROM JANUARY 1, 2027, TO DECEMBER 31, 2028, BOTH 20 INCLUSIVE, 15%; 21 (2) FROM JANUARY 1, 2029, TO DECEMBER 31, 2032, BOTH 22 INCLUSIVE, 25%; AND 23 (3) ON AND AFTER JANUARY 1, 2033, 50%. 24 9–2705. 25 (A) (1) THIS SECTION APPLIES TO RIGID PLASTIC CONTAIN ERS OR OTHER 26 NONDURABLE CONTAINER S THAT ARE PRIMARILY COMPOSED O F ONE OR MORE 27 PLASTIC RESINS, ARE CAPABLE OF MAINT AINING THEIR SHAPE W HEN EMPTY, AND 28 ARE USED TO PACKAGE OR STORE FOOD . 29 (2) THIS SECTION DOES NOT APPLY TO: 30 12 HOUSE BILL 69 (I) REFILLABLE RIGID PLAS TIC FOOD CONTAINERS , 1 INCLUDING CONTAINERS THAT ARE SUFFICIENTLY DURA BLE FOR MULTIPLE 2 ROTATIONS OF THEIR O RIGINAL PURPOSE OR A SIMILAR PURPOSE AND ARE 3 INTENDED TO FUNCTION IN A SYSTEM OF REUSE ; 4 (II) RIGID PLASTIC CONTAIN ERS THAT CONTAIN DIE TARY 5 SUPPLEMENTS ; OR 6 (III) A PLASTIC BEVERAGE CON TAINER UNDER § 9–2704 OF THIS 7 SUBTITLE. 8 (B) THE MINIMUM POSTCONSU MER RECYCLED CONTENT PERCENTAGE 9 REQUIREMENT FOR RIGI D PLASTIC CONTAINERS USED TO PACKAGE OR S TORE FOOD 10 IS: 11 (1) FROM JANUARY 1, 2027, TO DECEMBER 31, 2030, BOTH 12 INCLUSIVE, 15%; 13 (2) FROM JANUARY 1, 2031, TO DECEMBER 31, 2033, BOTH 14 INCLUSIVE, 30%; AND 15 (3) ON AND AFTER JANUARY 1, 2034, 40%. 16 9–2706. 17 (A) (1) THIS SECTION APPLIES TO RIGID PLASTIC CON TAINERS OR OTHER 18 NONDURABLE CONTAINER S THAT ARE PRIMARILY COMPOSED OF ONE OR M ORE 19 PLASTIC RESIN S, ARE CAPABLE OF MAINT AINING THEIR SHAPE W HEN EMPTY, AND 20 ARE USED FOR HOUSEHO LD CLEANING PRODUCTS OR PERSONAL CARE PRO DUCTS. 21 (2) THIS SECTION DOES NOT APPLY TO: 22 (I) REFILLABLE HOUSEHOLD CLEANING AND PERSONA L CARE 23 PRODUCT CONTAINERS , INCLUDING CONTAINERS THAT ARE SUFFICIENTL Y 24 DURABLE FOR MULTIPLE ROTATIONS OF THEIR O RIGINAL PURPOSE OR A SIMILAR 25 PURPOSE AND ARE INTE NDED TO FUNCTION IN A SYSTEM OF REUSE ; OR 26 (II) RIGID PLASTIC CONTAINERS T HAT ARE MEDICAL DEVI CES 27 OR THAT ARE USED FOR : 28 1. MEDICAL PRODUCTS THAT ARE REQUIRED TO BE 29 STERILE; OR 30 HOUSE BILL 69 13 2. NONPRESCRIPTION OR PR ESCRIPTION DRUGS . 1 (B) THE MINIMUM POSTCONSU MER RECYCLED CONTENT PERCENTAGE 2 REQUIREMENT FOR RIGI D PLASTIC CONTAINER S USED FOR HOUSEHOLD C LEANING 3 OR PERSONAL CARE PRO DUCTS IS: 4 (1) FROM JANUARY 1, 2027, TO DECEMBER 31, 2030, BOTH 5 INCLUSIVE, 25%; 6 (2) FROM JANUARY 1, 2031, TO DECEMBER 31, 2034, BOTH 7 INCLUSIVE, 30%; AND 8 (3) ON AND AFTER JANUARY 1, 2035, 35%. 9 9–2707. 10 THE DEPARTMENT MAY GRANT A TEMPORARY WAIVER F ROM THE 11 REQUIREMENTS UNDER T HIS SUBTITLE TO A PR ODUCER IF THE DEPARTMENT 12 DETERMINES THAT ACHI EVING COMPLIANCE UND ER THIS SUBTITLE WOU LD 13 PRESENT AN UNDUE HAR DSHIP OR A PRACTICAL DIFFICULTY N OT GENERALLY 14 APPLICABLE TO OTHER PRODUCERS IN SIMILAR CIRCUMSTANCES . 15 9–2708. 16 (A) THE DEPARTMENT MAY : 17 (1) CONDUCT AUDITS AND IN VESTIGATIONS FOR THE PURPOSE OF 18 ENSURING COMPLIANCE WITH THE REQUIREMENT S OF THIS SUBTITLE; AND 19 (2) PARTICIPATE IN THE ES TABLISHMENT AND IMPL EMENTATION OF 20 A MULTISTATE CLEARIN GHOUSE TO ASSIST IN CARRYING OUT THE REQ UIREMENTS 21 OF THIS SUBTITLE, INCLUDING TO: 22 (I) HELP COORDINATE THE R EVIEW OF REGISTRATIO NS, 23 WAIVER REQUESTS , AND CERTIFICATIONS ; AND 24 (II) IMPLEMENT EDUCATI ON AND OUTREACH ACTI VITIES. 25 (B) ON AN ANNUAL BASIS , THE DEPARTMENT SHALL PUBL ISH ON ITS 26 WEBSITE: 27 (1) A LIST OF EACH REGISTE RED PRODUCER OF A CO VERED 28 PRODUCT AND ASSOCIAT ED BRAND NAMES ; 29 14 HOUSE BILL 69 (2) THE COMPLIANCE STATUS FOR EACH REGISTERED PRODUCER; 1 AND 2 (3) ANY OTHER INFORMATION DEEMED APPROPRIATE B Y THE 3 DEPARTMENT . 4 9–2709. 5 THE DEPARTMENT SHALL ADOP T REGULATIONS TO CAR RY OUT THIS 6 SUBTITLE. 7 9–2710. 8 (A) (1) EXCEPT AS PROVIDED IN SUBSECTION (B) OF THIS SECTION, THE 9 PROVISIONS OF §§ 9–334 THROUGH 9–342 OF THIS TITLE APPLY TO ENFORCE 10 VIOLATIONS OF THIS S UBTITLE. 11 (2) A PENALTY MAY NOT BE I MPOSED ON A PRODUCER UNDER THIS 12 SECTION FOR FAILING TO REGISTER WITH THE DEPARTMENT UNDER § 9–2703 OF 13 THIS SUBTITLE UNLESS : 14 (I) THE DEPARTMENT FIRST ISSU ES A WRITTEN NOTICE OF 15 VIOLATION TO THE PRO DUCER; AND 16 (II) THE PRODUCER HAS NOT REGISTERED WITH THE 17 DEPARTMENT WITHIN 90 DAYS OF RECEIPT OF T HE WRITTEN NOTICE . 18 (B) (1) BEGINNING JANUARY 1, 2027, A PRODUCER THAT DOES NOT 19 MEET THE MINIMUM POS TCONSUMER RECYC LED CONTENT PERCENTA GE 20 REQUIREMENTS ESTABLI SHED UNDER THIS SUBT ITLE IS SUBJECT TO A N 21 ADMINISTRATIVE PENAL TY EACH YEAR THE VIO LATION OCCURS . 22 (2) AN ADMINISTRATIVE PEN ALTY IMPOSED UNDER T HIS 23 SUBSECTION SHALL EQU AL THE PRODUCT OF MU LTIPLYING: 24 (I) THE TOTAL POUNDS OF PLAST IC USED IN THE PRODU CT 25 CATEGORY MULTIPLIED BY THE RELEVANT MINI MUM POSTCONSUMER REC YCLED 26 CONTENT PERCENTAGE , LESS THE TOTAL POUND S OF POSTCONSUMER RE CYCLING 27 PLASTIC USED; AND 28 (II) 20 CENTS. 29 HOUSE BILL 69 15 (3) THE DEPARTMENT MAY ADJUST THE ADMINISTRATIVE PENAL TY 1 AMOUNT IMPOSED UNDER THIS SUBSECTION AS N ECESSARY TO ENSURE T HAT THE 2 ADMINISTRATIVE PENAL TY EXCEEDS THE COST OF COMPLIANCE . 3 (4) (I) THE DEPARTMENT MAY GRANT A REDUCTION IN THE 4 ADMINISTRATIVE PENAL TIES IMPOSED UNDER T HIS SUBSECTION IF A PRODUCER 5 SUBMITS TO THE DEPARTMENT A CORRECTI VE ACTION PLAN AND T HE 6 DEPARTMENT APPROVES T HE CORRECTIVE ACTION PLAN. 7 (II) A CORRECTIVE ACTION PL AN SUBMITTED UNDER T HIS 8 PARAGRAPH SHALL INCL UDE: 9 1. THE REASONS THE PRODU CER WILL FAIL TO MEE T OR 10 FAILED TO MEET THE M INIMUM POSTCONSUMER RECYCLED CONTENT PER CENTAGE 11 REQUIREMENTS ; AND 12 2. THE STEPS THAT THE PR ODUCER WILL TAKE TO 13 COMPLY WITH THE REQU IREMENTS DURING THE SUBSEQUENT REPORTING YEAR. 14 (III) IN DETERMINING WHETHE R TO GRANT A REDUCTI ON IN THE 15 ADMINISTRATIVE PENAL TIES, THE DEPARTMENT SHALL CONS IDER: 16 1. ANOMALOUS MARKET COND ITIONS; 17 2. DISRUPTION IN SUPPLY OR LACK OF SUPPLY OF 18 RECYCLED PLASTICS ; 19 3. EFFORTS UNDERTAKEN BY THE PRODUCER TO 20 INCREASE THE RECYCLA BILITY OF THE PRODUC ER’S PRODUCT AND THE SU PPLY OF 21 POSTCONSUMER RECYCLE D PLASTIC; AND 22 4. OTHER FACTORS THAT PR EVENT A PRODUCER FRO M 23 MEETING THE MINIMUM POSTCONSUMER RECYCLE D CONTENT PERCENTAGE 24 REQUIREMENTS . 25 SECTION 2. AND BE IT FURTHER ENACTED, That: 26 (a) The Department of the Environment shall contract with a research university 27 or an independent third–party consultant to: 28 (1) evaluate the implementation of this Act and its effectiveness in 29 stimulating the recycling markets in the State and displacing virgin plastic with 30 postconsumer recycled content; and 31 16 HOUSE BILL 69 (2) make recommendations for legislative or administrative actions, if any, 1 necessary to further the purpose of this Act. 2 (b) On or before October 1, 2030, the Department shall: 3 (1) report the findings and recommendations of the research university or 4 independent third–party consultant to the Governor and, in accordance with § 2–1257 of 5 the State Government Article, the Senate Education, Energy, and the Environment 6 Committee and the House Environment and Transportation Committee; and 7 (2) post the findings and recommendations on the Department’s website. 8 SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 9 October 1, 2025. 10