EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *sb0346* SENATE BILL 346 M3 5lr1374 SB 642/24 – EEE CF HB 232 By: Senators Brooks, Gile, M. Washington, Kagan, Ellis, Muse, Rosapepe, Smith, Lewis Young, Hettleman, and Benson Introduced and read first time: January 16, 2025 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 a certain 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 the beverage container stewardship organization; establishing a framework for 19 the beverage container stewardship organization to represent producers in fulfilling 20 the requirements of this Act; requiring the beverage container stewardship 21 organization to submit a certain beverage container stewardship plan to the 22 Department for approval; requiring the beverage container stewardship 23 organization to implement and administer the beverage container stewardship plan 24 within a certain time after the plan is approved; requiring the Department to 25 establish a process for a county or municipal corporation to create a redemption 26 facility; authorizing redeemable beverage containers redeemed at a redemption 27 facility managed by a county or municipal corporation to be credited toward meeting 28 certain recycling rates; establishing the Beverage Container Recycling Refund Grant 29 Program to evaluate the investments and policies necessary to achieve a certain 30 2 SENATE BILL 346 performance target, increase the reuse and recycling of beverage containers in the 1 State, increase the availability of public water fountains and refill stations in the 2 State, and reduce the volume of litter from beverage containers in the State; 3 establishing the Redeemable Beverage Container Recycling Refund Advisory 4 Council to review certain reports, make certain recommendations, and advise the 5 Department on certain matters; providing immunity from liability to a certain 6 person under certain circumstances; and generally relating to the Maryland 7 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 2024 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 2024 Supplement) 18 BY adding to 19 Article – Environment 20 Section 9–1737 through 9–1755 to be under the new part “Part VI. Maryland 21 Beverage Container Recycling Refund and Litter Reduction Program” 22 Annotated Code of Maryland 23 (2014 Replacement Volume and 2024 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 346 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; 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) Review and approve plans and annual reports, including the paint 13 stewardship assessment, submitted in accordance with a Paint Stewardship Program 14 established under Part V of this subtitle; AND 15 (7) ADMINISTER THE MARYLAND BEVERAGE CONTAINER 16 RECYCLING REFUND AND LITTER REDUCTION PROGRAM ESTABLISHED U NDER § 17 9–1739 OF THIS SUBTITLE . 18 9–1707. 19 (f) (1) There is a State Recycling Trust Fund. 20 (2) The Fund shall consist of: 21 (i) The newsprint recycling incentive fee; 22 (ii) The telephone directory recycling incentive fee collected under § 23 9–1709 of this subtitle; 24 (iii) The covered electronic device manufacturer registration fee 25 collected under § 9–1728 of this subtitle; 26 (iv) The Paint Stewardship Program plan and annual report review 27 fees collected under § 9–1733(b) and (h) of this subtitle; 28 (V) UNCLAIMED DEPOSITS , FEES, AND PENALTIES 29 TRANSFERRED TO THE FUND UNDER §§ 9–1743, 9–1744, AND 9–1754 OF THIS 30 SUBTITLE; 31 4 SENATE BILL 346 [(v)] (VI) All fines and penalties collected under this subtitle; 1 [(vi)] (VII) Money appropriated in the State budget to the Fund; and 2 [(vii)] (VIII) Any other money from any other source accepted for the 3 benefit of the Fund. 4 (3) The Secretary shall administer the Fund. 5 (4) The Treasurer shall hold the Fund separately and the Comptroller shall 6 account for the Fund. 7 (5) (I) [At] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 8 PARAGRAPH , AT the end of each fiscal year, any unspent or unencumbered balance in the 9 Fund that exceeds $2,000,000 shall revert to the General Fund of the State in accordance 10 with § 7–302 of the State Finance and Procurement Article. 11 (II) THE FUNDS TRANSFERRED TO THE FUND UNDER 12 PARAGRAPH (2)(V) OF THIS SUBSECTION A RE NOT SUBJECT TO § 7–302 OF THE 13 STATE FINANCE AND PROCUREMENT ARTICLE AND MAY NOT R EVERT TO THE 14 GENERAL FUND OF THE STATE. 15 (6) In accordance with the State budget, the Fund shall be used only: 16 (i) To provide grants to the counties to be used by the counties to 17 develop and implement local recycling plans; 18 (ii) To provide grants to counties that have addressed methods for 19 the separate collection and recycling of covered electronic devices in accordance with § 20 9–1703(c)(1) of this subtitle; 21 (iii) To provide grants to municipalities to be used by the 22 municipalities to implement local covered electronic device recycling programs; 23 (iv) To cover the costs of the Paint Stewardship Program plan review 24 under § 9–1733(b) of this subtitle, the annual report review under § 9–1733(h) of this 25 subtitle, and associated costs for Program compliance oversight; [and] 26 (V) TO COVER THE COSTS OF ADMINISTERING , MONITORING , 27 EVALUATING, AND ENFORCING THE MARYLAND BEVERAGE CONTAINER 28 RECYCLING REFUND AND LITTER REDUCTION PROGRAM ESTABLISHED U NDER § 29 9–1739 OF THIS SUBTITLE ; AND 30 [(v)] (VI) To carry out the purposes of the land management 31 administration. 32 SENATE BILL 346 5 (7) (I) THE COMPTROLLER SHALL EST ABLISH A SEPARATE 1 ACCOUNT WITHIN THE FUND. 2 (II) THE ACCOUNT SHALL CON SIST OF THE FUNDS SP ECIFIED IN 3 PARAGRAPH (2)(V) OF THIS SUBSECTION . 4 (III) THE ACCOUNT MAY BE US ED ONLY TO: 5 1. COVER THE COSTS OF AD MINISTERING, MONITORING , 6 EVALUATING, AND ENFORCING THE MARYLAND BEVERAGE CONTAINER 7 RECYCLING REFUND AND LITTER REDUCTION PROGRAM ESTABLISHED U NDER § 8 9–1739 OF THIS SUBTITLE ; 9 2. FUND THE BEVERAGE CONTAINER RECYCLING 10 REFUND GRANT PROGRAM ESTABLISHED U NDER § 9–1750 OF THIS SUBTITLE; 11 3. COMPENSATE LOCAL GOVE RNMENTS IN 12 ACCORDANCE WITH § 9–1748 OF THIS SUBTITLE; AND 13 4. MEET OR EXCEED THE PE RFORMANCE TARGETS 14 ESTABLISHED UNDER § 9–1740 OF THIS SUBTITLE. 15 [(7)] (8) (i) The Treasurer shall invest the money in the Fund in the 16 same manner as other State money may be invested. 17 (ii) Any investment earnings of the Fund shall be credited to the 18 General Fund of the State. 19 9–1735. RESERVED. 20 9–1736. RESERVED. 21 PART VI. MARYLAND BEVERAGE CONTAINER RECYCLING REFUND AND LITTER 22 REDUCTION PROGRAM. 23 9–1737. 24 (A) IN THIS PART THE FOLL OWING WORDS HAVE THE MEANINGS 25 INDICATED. 26 (B) (1) “ACCOUNT–BASED BULK PROCESSIN G PROGRAM ” MEANS A 27 PROGRAM THAT: 28 (I) UTILIZES A SYSTEM OF CUSTOMER ACCOUNTS AN D A 29 6 SENATE BILL 346 MECHANISM TO ASSOCIA TE REDEEMED REDEEMAB LE BEVERAGE CONTAINE RS WITH 1 THE APPROPRIATE CUST OMER ACCOUNT ; 2 (II) CONSOLIDATES THE REDE EMED REDEEMABLE BEVE RAGE 3 CONTAINERS FOR BULK SORTING WHILE COLLE CTING DATA ABOUT THE 4 CONTAINERS; 5 (III) FULLY PREPARES REDEEM ED REDEEMABLE BEVERA GE 6 CONTAINERS FOR SALE TO RECYCLERS ; AND 7 (IV) COLLECTS DATA TO SUPP ORT AN ACCOUNTING OF THE 8 REDEEMABLE BEVERAGE CONTAINERS, INCLUDING THE DEPOSI TS, FEES, AND 9 POUNDS OF MATERIAL PRODUCED TH AT ARE ASSOCIATED WI TH THE REDEEMABLE 10 BEVERAGE CONTAINERS . 11 (2) “ACCOUNT–BASED BULK PROCESSIN G PROGRAM ” INCLUDES A 12 BAG DROP PROGRAM IF THE BAG DROP PROGRAM IS A COMPONENT OF TH E 13 ACCOUNT–BASED BULK PROCESSIN G PROGRAM. 14 (C) “ADVISORY COUNCIL” MEANS THE REDEEMABLE BEVERAGE 15 CONTAINER RECYCLING REFUND ADVISORY COUNCIL ESTABLISHED U NDER § 16 9–1752 OF THIS SUBTITLE . 17 (D) “BAG DROP PROGRAM ” MEANS A PROGRAM THAT ALLOWS A CUSTOMER 18 TO: 19 (1) DROP OFF EMPTY REDEEM ABLE BEVERAGE CONTAI NERS IN A BAG 20 OR OTHER RECEPTACLE AT ONE OR MORE LOCAT IONS FOR A REFUND ; AND 21 (2) HAVE THE CORRESPONDIN G REFUND PLACED INTO AN ACCOUNT 22 HELD FOR THE BENEFIT OF THE CUSTOMER IN A MANNER THAT ALLOWS T HE 23 CUSTOMER TO OBTAIN T HE REFUND OR REFUND RECEIPT WITHIN A SPECIFIED 24 NUMBER OF DAYS AFTER THE DROP–OFF. 25 (E) (1) “BEVERAGE” MEANS ANY DRINKABLE LIQUID INTENDED FOR 26 HUMAN ORAL CONSUMPTI ON. 27 (2) “BEVERAGE” DOES NOT INCLUDE : 28 (I) DRUGS REGULATED UNDER THE FEDERAL FOOD, DRUG, 29 AND COSMETIC ACT; AND 30 (II) INFANT FORMULA . 31 SENATE BILL 346 7 (F) (1) “BEVERAGE CONTAINER ” MEANS A BOTTLE , CAN, OR OTHER 1 CONTAINER THAT : 2 (I) HAS BEEN SEALED BY A MANUFACTURER ; 3 (II) IS MADE OF GLASS , METAL, OR PLASTIC; AND 4 (III) AT THE TIME OF SALE , CONTAINS 3 LITERS OR LESS OF A 5 BEVERAGE. 6 (2) “BEVERAGE CONTAINER ” DOES NOT INCLUDE : 7 (I) A CARTON; 8 (II) A POUCH; OR 9 (III) ASEPTIC PACKAGING . 10 (G) “BEVERAGE CONTAINER RE DEMPTION AND PROCESS ING METHOD ” 11 MEANS A MANUAL OR TE CHNOLOGICAL METHOD F OR PROPERLY COLLECTI NG, 12 IDENTIFYING, COUNTING, OR PROCESSING EMPTY REDEEMABLE BEVERAGE 13 CONTAINERS FOR REDEM PTION. 14 (H) “BEVERAGE CONTAINER ST EWARDSHIP ORGANIZATI ON” MEANS A 15 NONPROFIT ORGANIZATI ON THAT IS: 16 (1) EXEMPT FROM TAXATION UNDER § 501(C)(3) OF THE INTERNAL 17 REVENUE CODE; 18 (2) CREATED BY PRODUCERS TO IMPLEMENT A BEVER AGE 19 CONTAINER STEWARDSHI P PLAN; AND 20 (3) APPROVED BY THE DEPARTMENT IN ACCORDA NCE WITH § 9–1745 21 OF THIS SUBTITLE. 22 (I) “BEVERAGE CONTAINER ST EWARDSHIP PLAN ” MEANS A PLAN 23 SUBMITTED TO THE DEPARTMENT UNDER § 9–1746 OF THIS SUBTITLE. 24 (J) “DEPOSIT INITIATOR ” MEANS THE FIRST DIST RIBUTOR TO COLLECT A 25 DEPOSIT ON A BEVERAG E CONTAINER SOLD IN THE STATE. 26 (K) (1) “DISTRIBUTOR” MEANS A PERSON THAT SELLS BEVERAGES IN 27 REDEEMABLE BEVERAGE CONTAINERS TO A RETA ILER IN THE STATE. 28 8 SENATE BILL 346 (2) “DISTRIBUTOR” INCLUDES A PERSON TH AT MANUFACTURES AND 1 SELLS BEVERAGES IN R EDEEMABLE BEVERAGE C ONTAINERS TO A RETAI LER IN THE 2 STATE. 3 (3) “DISTRIBUTOR” DOES NOT INCLUDE AIR LINES OR SHIPPING 4 COMPANIES THAT TRANS PORT REDEEMABLE BEVE RAGE CONTAINERS . 5 (L) “GRANT PROGRAM” MEANS THE BEVERAGE CONTAINER RECYCLING 6 REFUND GRANT PROGRAM ESTABLISHED U NDER § 9–1750 OF THIS SUBTITLE. 7 (M) “LINE BREAKAGE ” MEANS A BEVERAGE CON TAINER THAT: 8 (1) BECOMES DEFECTIVE OR DAMAGED DURING MANUF ACTURING; 9 (2) IS NOT INTENDED TO BE SOLD ; AND 10 (3) IS NOT ELIGIBLE FOR R EDEMPTION. 11 (N) “MARYLAND–SPECIFIC UPC BARCODE” MEANS A UNIVERSAL PR ODUCT 12 CODE THAT IS: 13 (1) UNIQUE TO BEVERAGE CO NTAINERS SOLD IN THE STATE; AND 14 (2) USED TO DETER FRAUD A ND ENSURE THE LEGITI MATE 15 REDEMPTION OF REDEEMA BLE BEVERAGE CONTAIN ERS. 16 (O) (1) “ON–PREMISES SELLER ” MEANS A PERSON THAT SELLS FILLED 17 AND UNOPENED REDEEMA BLE BEVERAGE CONTAIN ERS FOR ON –PREMISES 18 CONSUMPTION . 19 (2) “ON–PREMISES SELLER ” INCLUDES: 20 (I) BARS; 21 (II) HOTELS; 22 (III) RESTAURANTS ; 23 (IV) SPORTING VENUES ; 24 (V) ENTERTAINMENT VENUES ; AND 25 SENATE BILL 346 9 (VI) GAMING VENUES . 1 (P) “PERFORMANCE TARGETS ” MEANS THE TARGETS ES TABLISHED UNDER 2 § 9–1740 OF THIS SUBTITLE. 3 (Q) (1) “PRODUCER” MEANS A PERSON RESPO NSIBLE FOR COMPLYING 4 WITH THE REQUIREMENT S UNDER THIS PART . 5 (2) “PRODUCER” INCLUDES A FRANCHISO R OF A FRANCHISE 6 LOCATED IN THE STATE. 7 (3) “PRODUCER” DOES NOT INCLUDE : 8 (I) THE STATE, A COUNTY, A MUNICIPAL CORPORAT ION, OR 9 ANY OTHER POLITICAL SUBDIVISION OF THE STATE; 10 (II) A CHARITABLE ORGANIZAT ION THAT IS TAX –EXEMPT 11 UNDER § 501(C)(3) OF THE INTERNAL REVENUE CODE; 12 (III) A SOCIAL WELFARE ORGAN IZATION THAT IS TAX –EXEMPT 13 UNDER § 501(C)(4) OF THE INTERNAL REVENUE CODE; 14 (IV) A FRANCHISEE THAT OPER ATES A FRANCHISE IN THE 15 STATE; 16 (V) A PERSON THAT ANNUALLY SELLS, OFFERS FOR SALE , 17 DISTRIBUTES, OR IMPORTS INTO THE COUNTRY FOR SALE IN THE STATE FEWER 18 THAN 1,000 REDEEMABLE BEVERAGE CONTAINERS; OR 19 (VI) A PERSON THAT ANNUALLY SELLS, OFFERS FOR SALE , OR 20 DISTRIBUTES I N THE STATE REDEEMABLE BEVE RAGE CONTAINERS THAT IN 21 AGGREGATE GENERATE L ESS THAN $5,000,000 EACH YEAR IN GLOBAL REVENUE. 22 (R) “PROGRAM” MEANS THE MARYLAND BEVERAGE CONTAINER 23 RECYCLING REFUND AND LITTER REDUCTION PROGRAM ESTABLISHED U NDER § 24 9–1739 OF THIS SUBTITLE. 25 (S) “RECYCLING RATE ” MEANS THE NUMBER OF NONREFILLABLE 26 REDEEMABLE BEVERAGE CONTAINERS SOLD IN T HE STATE THAT ARE RECYCL ED 27 SHOWN AS A PERCENTAG E OF ALL NONREFILLAB LE REDEEMABLE BEVERA GE 28 CONTAINERS SOLD IN T HE STATE. 29 (T) “REDEEM” MEANS THE RETURN OF AN EMPTY REDEEMABLE BEVERAGE 30 10 SENATE BILL 346 CONTAINER IN EXCHANG E FOR A REFUND , A VOUCHER FOR A REFU ND, OR A CREDIT 1 TO AN ACCOUNT FOR NO T LESS THAN THE REFU ND VALUE. 2 (U) “REDEEMABLE BEVERAGE C ONTAINER” MEANS A BEVERAGE 3 CONTAINER THAT , AT THE TIME OF SALE: 4 (1) CONTAINS 3 LITERS OR LESS OF A BEVERAGE; 5 (2) BEARS A UNIVERSAL PRO DUCT CODE; AND 6 (3) MAY BEAR A MARYLAND–SPECIFIC UPC BARCODE FOR THE 7 PURPOSE OF ENSURING LEGITIMATE REDEMPTIO N AND DETERRING FRAU D. 8 (V) “REDEMPTION FACILITY ” MEANS A FACILITY THAT : 9 (1) ACCEPTS EMPTY BEVERAG E CONTAINERS FROM A CONSUMER , A 10 RETAILER, OR BOTH; 11 (2) COLLECTS, SORTS, AND COUNTS EMPTY BEV ERAGE CONTAINERS ; 12 (3) REFUNDS THE REFUND VA LUE OF EMPTY REDEEMA BLE 13 BEVERAGE CONTAINERS IN CASH, WITH A VOUCHER, OR AS A CREDIT TO AN 14 ACCOUNT FOR NOT LESS THAN THE REFUND VALU E OF THE REDEEMABLE 15 BEVERAGE CONTAINER ; AND 16 (4) IS LICENSED UNDER § 9–1742 OF THIS SUBTITLE. 17 (W) “REDEMPTION RATE ” MEANS THE PERCENTAGE OF REDEEMABLE 18 BEVERAGE CONTAINERS SOLD IN TH E STATE THAT ARE REDEEM ED FOR THE 19 DEPOSIT VALUE . 20 (X) “REFILLABLE” MEANS A BEVERAGE CON TAINER THAT IS DESIG NED AND 21 INTENDED TO BE REUSE D AS A BEVERAGE CONT AINER AFTER BEING US ED BY A 22 CONSUMER WITHOUT THE NEED FOR REMANUFACTU RING. 23 (Y) (1) “RETAILER” MEANS A PERSON THAT ENGA GES IN THE SALE OF 24 REDEEMABLE BEVERAGE CONTAINERS TO A CONS UMER IN THE STATE. 25 (2) “RETAILER” INCLUDES A PERSON TH AT ENGAGES IN THE SA LE OF 26 REDEEMABLE BEVERAGE CONTAINERS: 27 (I) THROUGH A VENDING MAC HINE; OR 28 SENATE BILL 346 11 (II) ONLINE FOR HOME OR OFFICE DELIVERY . 1 (Z) “REVERSE VENDING MACHI NE” MEANS AN AUTOMATED D EVICE THAT: 2 (1) ACCEPTS ONE OR MORE T YPES OF EMPTY REDEEM ABLE 3 BEVERAGE CONTAINERS ; 4 (2) USES A LASER SCANNER , AN OPTICAL SENSOR , A 5 MICROPROCESSOR , OR OTHER TECHNOLOGY TO ACCURATE LY RECOGNIZE A 6 BEVERAGE CONTAINER ’S UNIVERSAL PRODUCT CODE TO DETERMINE WH ETHER THE 7 CONTAINER IS A REDEE MABLE BEVERAGE CONTA INER; 8 (3) ISSUES A REDEEMABLE C REDIT SLIP FOR THE R EDEEMABLE 9 BEVERAGE CONTAINER ’S REFUND VALUE ; 10 (4) SEPARATES REDEEMABLE BEVERAGE CONTAINERS FROM 11 CONTAINERS THAT ARE NOT REDEEMABLE ; 12 (5) USES MECHANICAL COMPA CTION TO CANCEL REDE EMABLE 13 BEVERAGE CONTAINERS THAT HAVE BEEN REDEE MED; AND 14 (6) COMPILES INFORMATION REGARDING THE REDEEM ABLE 15 BEVERAGE CONTAINERS THAT HAVE BEEN REDEE MED, INCLUDING THE NUMBER OF 16 REDEEMABLE BEVERAGE CONTAINERS REDEEMED . 17 (AA) (1) “UNIVERSAL PRODUCT COD E” OR “UPC” MEANS A STANDARD 18 BARCODE THAT ENCODES A NUMBER UNIQUELY AS SIGNED TO A PRODUCT FOR 19 IDENTIFICATION OF TH E PRODUCT. 20 (2) “UNIVERSAL PRODUCT COD E” OR “UPC” INCLUDES: 21 (I) ANY INDUSTRY–ACCEPTED BARCODE USE D FOR PRODUCT 22 IDENTIFICATION PURPO SES; AND 23 (II) A EUROPEAN ARTICLE NUMB ER. 24 9–1738. 25 IT IS THE INTENT OF T HE GENERAL ASSEMBLY TO: 26 (1) REDUCE THE VOLUME OF LITTER AND PLASTIC P OLLUTION FROM 27 BEVERAGE CONTAINERS IN THE STATE BY ACHIEVING A REDEMPTION RATE OF A T 28 LEAST 90% FOR THE APPROXIMATEL Y 5,500,000,000 SINGLE–USE BEVERAGE 29 12 SENATE BILL 346 CONTAINERS SOLD ANNU ALLY IN THE STATE; 1 (2) PROVIDE A SOURCE OF HIGH–QUALITY, FOOD–GRADE MATERIALS 2 FOR USE AS RECYCLED CONTENT IN BEVERAGE AND FOOD CONTAINERS ; 3 (3) REDUCE THE VOLUME OF BEVERAGE CONTAINERS THAT ARE 4 LANDFILLED OR INCINE RATED IN THE STATE; 5 (4) REDUCE THE COSTS OF L ITTER AND BEVERAGE C ONTAINER 6 COLLECTION, RECYCLING, AND DISPOSAL INCURRE D BY TAXPAYERS , COUNTIES, 7 AND MUNICIPAL CORPOR ATIONS BY MAKING PRO DUCERS OF BEVERAGE 8 CONTAINERS RESPONSIB LE FOR THE RECOVERY , RECYCLING, AND REUSE OF 9 BEVERAGE CONTAINERS ; 10 (5) PROVIDE INCENTIVES FO R INCREASING THE US E OF REUSABLE 11 AND REFILLABLE BEVER AGE CONTAINERS ; AND 12 (6) REDUCE GREENHOUSE GAS EMISSIONS ASSOCIATED WITH THE 13 PRODUCTION , TRANSPORTATION , PROCESSING, AND WASTE DISPOSAL O F 14 SINGLE–USE BEVERAGE CONTAIN ERS SOLD IN THE STATE. 15 9–1739. 16 THERE IS A MARYLAND BEVERAGE CONTAINER RECYCLING REFUND AND 17 LITTER REDUCTION PROGRAM IN THE DEPARTMENT . 18 9–1740. 19 PERFORMANCE TARGETS F OR THE PROGRAM ARE AS FOLLOW S: 20 (1) A 70% REDEMPTION RATE BY DECEMBER 31, 2029; 21 (2) A 90% REDEMPTION RATE BY DECEMBER 31, 2032; 22 (3) BY DECEMBER 31, 2027, ATTAINMENT OF ALL CO NVENIENCE 23 STANDARDS IDENTIFIED BY THE DEPARTMENT UNDER § 9–1751 OF THIS SUBTITLE; 24 AND 25 (4) BY DECEMBER 31, 2035, AT LEAST 10% OF ALL BEVERAGE 26 CONTAINERS SOLD IN T HE STATE ARE RETURNED AN D REFILLED. 27 9–1741. 28 SENATE BILL 346 13 (A) (1) SUBJECT TO PARAGRAPHS (2) AND (3) OF THIS SUBSECTION , 1 BEGINNING JANUARY 1, 2028, EACH REDEEMABLE BEVE RAGE CONTAINER SOLD IN 2 THE STATE SHALL INCLUDE A DEPICTION OF THE FOL LOWING INFORMATION : 3 (I) THE WORD “MARYLAND” OR THE LETTERS “MD”; AND 4 (II) 1. FOR REDEEMABLE BEVERA GE CONTAINERS WITH A 5 VOLUME OF 24 FLUID OUNCES OR LESS , A REFUND VALUE OF 10 CENTS; OR 6 2. FOR REDEEMABLE BEVERA GE CONTAINERS WITH A 7 VOLUME OF MORE THAN 24 FLUID OUNCES , A REFUND VALUE OF 15 CENTS. 8 (2) THE DEPARTMENT MAY ADJUST THE REFUND VA LUES SPECIFIED 9 IN PARAGRAPH (1) OF THIS SUBSECTION : 10 (I) IF THE DEPARTMENT DETERMINES ALTERING THE REFUND 11 VALUES IS NECESSARY TO MEET OR EXCEED PE RFORMANCE TARGETS ; OR 12 (II) AT THE REQUEST OF A B EVERAGE CONTAINER 13 STEWARDSHIP ORGAN IZATION. 14 (3) BEGINNING JANUARY 1, 2032, THE DEPARTMENT SHALL 15 INCREASE THE REFUND VALUES SPECIFIED IN PARAGRAPH (1) OF THIS SUBSECTION 16 BY 5 CENTS IF THE DEPARTMENT DETERMINES THAT FOR 2 CONSECUTIVE 17 CALENDAR YEARS THE R EDEMPTION RATE WAS L ESS THAN 90% OF THE TOTAL 18 NUMBER OF BEVERAGE C ONTAINERS SOLD IN TH E STATE. 19 (B) A BEVERAGE CONTAINER D EPICTING THE INFORMA TION SPECIFIED IN 20 SUBSECTION (A) OF THIS SECTION MAY NOT BE SOLD TO A CON SUMER BEFORE 21 JANUARY 1, 2028. 22 (C) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 23 BEGINNING JANUARY 1, 2028: 24 (I) THE WHOLESALE PRICE A ND THE RETAIL PRICE OF A FULL 25 REDEEMABLE BEVERAGE CONTAINER SHALL INCL UDE THE REFUND VALUE OF THE 26 REDEEMABLE BEVERAGE CONTAINER; AND 27 (II) A RETAILER SHALL INCLU DE ON A CUSTOMER’S SALES 28 RECEIPT THE REFUND V ALUE OF A REDEEMABLE BEVERAGE CONTAINER S OLD BY 29 THE RETAILER TO THE CUSTOMER. 30 (2) THE RETAIL PRICE OF A FULL REDEEMABLE BEVE RAGE 31 14 SENATE BILL 346 CONTAINER SOLD BY AN ON–PREMISES SELLER MAY NOT INCLUDE THE REFU ND 1 VALUE OF THE REDEEMA BLE BEVERAGE CONTAIN ER. 2 9–1742. 3 (A) (1) THE PROGRAM SHALL PROVIDE A RANGE OF OPTIONS F OR 4 CUSTOMERS TO CONVENI ENTLY REDEEM EMPTY R EDEEMABLE BEVERAGE 5 CONTAINERS FOR THE F ULL REFUND VALUE , INCLUDING: 6 (I) AT A RETAILER’S PLACE OF BUSINESS THROUGH DIRECT 7 TAKE–BACK BY THE RETAILER , REVERSE VENDING MACH INES, A BAG DROP 8 PROGRAM, OR OTHER REDEMPTION METHODS; 9 (II) DEDICATED AND CONVENI ENTLY LOCATED REDEMP TION 10 FACILITIES OPERATED BY RETAILERS , PUBLIC ENTITIES , OR THE BEVERAGE 11 CONTAINER STEWARDSHI P ORGANIZAT ION; AND 12 (III) PLACING REDEEMABLE BE VERAGE CONTAINER 13 REDEMPTION AND PROCE SSING METHODS , SUCH AS REVERSE VEND ING MACHINES , 14 BAG DROP PROGRAMS , AND ACCOUNT –BASED BULK PROCESSIN G PROGRAMS , IN 15 AREAS: 16 1. WITH A HIGH NUMBER OF PEDESTRIANS ; AND 17 2. WHERE INDIVIDUALS PURC HASE OR USE BEVERAGE 18 CONTAINERS. 19 (2) THE PROGRAM SHALL PROVIDE A RANGE OF OPTIONS F OR 20 ON–PREMISES SELLERS TO CONVENIENTLY REDEEM EMPTY REDEEMABLE 21 BEVERAGE CONTAINERS FOR THE FULL REFUND VALUE, INCLUDING: 22 (I) AN ACCOUNT–BASED REF UND ISSUED BY THE BE VERAGE 23 CONTAINER STEWARDSHI P ORGANIZATION OR IT S AGENTS FOLLOWING T HE 24 COLLECTION OF EMPTY REDEEMABLE BEVERAGE CONTAINERS BY THE BE VERAGE 25 CONTAINER STEWARDSHI P ORGANIZATION OR IT S AGENTS FROM THE ON –PREMISES 26 SELLER; OR 27 (II) AN ACCOUNT–BASED REFUND ISSUED BY THE OPERATOR OF 28 A BAG DROP PROGRAM . 29 (B) (1) A PERSON SHALL APPLY T O THE DEPARTMENT FOR A LICE NSE TO 30 OPERATE A REDEMPTION FACILITY IN THE STATE. 31 SENATE BILL 346 15 (2) THE DEPARTMENT SHALL DEVE LOP STANDARDS AND A 1 LICENSING PROCESS FO R THE ESTABLISHMENT AND OP ERATION OF REDEMPTIO N 2 FACILITIES. 3 (C) SUBJECT TO SUBSECTION (D) OF THIS SECTION , A REDEMPTION 4 FACILITY SHALL ACCEP T ALL TYPES OF EMPTY REDEEMABLE BEVERAGE 5 CONTAINERS FOR REDEM PTION. 6 (D) A RETAILER OR REDEMPTI ON FACILITY MAY REFU SE TO ACCEPT AN 7 EMPTY REDEEMABLE BEV ERAGE CONTAINER THAT : 8 (1) IS DIRTY; 9 (2) IS BROKEN; 10 (3) CONTAINS MATERIAL FOR EIGN TO THE NORMAL C ONTENTS OF 11 THE BEVERAGE CONTAIN ER; OR 12 (4) THE RETAILER OR REDEM PTION FACILITY BELIE VES WAS NOT 13 SOLD IN THE STATE. 14 (E) (1) THIS SUBSECTION APPLI ES TO A RETAILER WIT H AT LEAST 3,000 15 SQUARE FEET OF SALES FLOOR SPACE AND AT L EAST 150 SQUARE FEET OF SHELF 16 SPACE DEDICATED TO T HE DISPLAY OF REDEEM ABLE BEVERAGE CONTAI NERS. 17 (2) SUBJECT TO SUBSECTION (D) OF THIS SECTION , A RETAILER 18 SHALL: 19 (I) ESTABLISH AND MAINTAI N A DEDICATED AREA A T THE 20 RETAILER’S PLACE OF BUSINESS TO ACCEPT EMPTY REDE EMABLE BEVERAGE 21 CONTAINERS; 22 (II) ACCEPT AT THE RETAILE R’S PLACE OF BUSINESS ANY 23 EMPTY REDEEMABLE BEV ERAGE CONTAINERS RET URNED FOR RED EMPTION 24 DURING THE RETAILER ’S BUSINESS HOURS ; AND 25 (III) PAY TO THE REDEEMER T HE REFUND VALUE FOR EACH 26 EMPTY REDEEMABLE BEV ERAGE CONTAINER REDE EMED. 27 (3) RETAILERS MAY MEET TH E REQUIREMENTS IN PA RAGRAPH (2) OF 28 THIS SUBSECTION THRO UGH VARIOUS METHODS , INCLUDING: 29 (I) SUPPLEMENTING THE MAN UAL COLLECTION AND S TORING 30 16 SENATE BILL 346 OF REDEEMED REDEEMAB LE BEVERAGE CONTAINE RS WITH A REVERSE VE NDING 1 MACHINE, A BAG DROP PROGRAM , OR OTHER COUNTING AN D SORTING METHODS ; 2 AND 3 (II) GROUPING BEVERAGE CON TAINER REDEMPTION AN D 4 PROCESSING METHODS W ITH THOSE OF OTHER R ETAILERS IF: 5 1. THE BEVERAGE CONTAINE R STEWARDSHIP 6 ORGANIZATION APPROVE S THE PROPOSAL ; AND 7 2. THE RETAILERS PARTICI PATING IN THE GROUPE D 8 METHODS PROVIDE CONS ISTENT SERVICE , MARKETING, AND SITE REDEMPTION 9 LOCATIONS THAT COMPLY WITH DISTANCE PROVIS IONS DETERMINED BY T HE 10 DEPARTMENT . 11 (4) A RETAILER WITHIN AN A REA THAT MEETS THE C ONVENIENCE 12 STANDARDS ESTABLISHE D BY THE DEPARTMENT UNDER § 9–1751 OF THIS 13 SUBTITLE MAY BE EXEM PT FROM THE REQUIREM ENTS OF THIS SUBS ECTION IF THE 14 RETAILER: 15 (I) IS LOCATED IN CLOSE P ROXIMITY TO A REDEMP TION 16 FACILITY IN THAT ARE A; AND 17 (II) SHARES THE COST OF TH E OPERATION OF THE 18 REDEMPTION FACILITY WITH THE BEVERAGE CO NTAINER STEWARDSHIP 19 ORGANIZATION . 20 (5) THE DEPARTMENT MAY : 21 (I) SET STANDARDS FOR THE NUMBER OF REVERSE VE NDING 22 MACHINES REQUIRED FO R RETAILERS LOCATED IN UNDERSERVED COMMU NITIES; 23 AND 24 (II) ESTABLISH A CAP FOR T HE NUMBER OF EMPTY 25 REDEEMABLE BEVERAGE CONTAINERS THAT MAY BE REDEEMED PER VISI T AT 26 SMALL RETAILERS . 27 (F) SUBJECT TO SUBSECTION (D) OF THIS SECTION, A RETAILER WITH LESS 28 THAN 3,000 SQUARE FEET OF SALES FLOOR SPACE OR LESS THAN 150 SQUARE FEET 29 OF SHELF SPACE DEDIC ATED TO THE DISPLAY OF REDEEMABLE BEVERA GE 30 CONTAINERS SHALL : 31 (1) PROVIDE ON–SITE CASH REFUNDS FOR THE REDEMP TION OF ANY 32 SENATE BILL 346 17 EMPTY REDEEMABLE BEV ERAGE CONTAINER THAT IS OF THE SAME MATER IAL AND 1 SIZE AS THOSE THAT A RE SOLD BY THE RETAI LER IF THE EMPTY RED EEMABLE 2 BEVERAGE CONTAINER B EING REDEEMED IS NOT ACCEPTED BY A REVERS E 3 VENDING MACHINE ; AND 4 (2) POST AT THE RETAILER ’S ENTRANCE THE ADDRE SS OF THE 5 NEAREST REVERSE VEND ING MACHINE OR OTHER REDEMPTION METHOD TH AT 6 PROVIDES AN IMMEDIAT E CASH REFUND FOR RE DEEMING EMPTY REDEEM ABLE 7 BEVERAGE CONTAINERS . 8 (G) (1) A PERSON THAT PROVIDES A REVERSE VENDING MACHINE FOR 9 THE REDEMPTION OF EM PTY REDEEMABLE BEVER AGE CONTAINERS SHALL : 10 (I) PROVIDE AN OPTION FOR REDEEMING EMPTY REDE EMABLE 11 BEVERAGE CONTAINERS WHEN THE REVERSE VEN DING MACHINE IS FULL , BROKEN, 12 OR UNDER REPAIR ; AND 13 (II) PROVIDE AN OPTION FOR REDEEMING ANY EMPTY 14 REDEEMABLE BEVERAGE CONTAINERS NOT ACCEP TED BY THE REVERSE V ENDING 15 MACHINE. 16 (2) (I) THE DEPARTMENT SHALL ESTA BLISH A PROCESS FOR 17 SUBMITTING FOR REVIE W, APPROVING, AND MONITORING AN AC COUNT–BASED 18 BULK PROCESSING PROG RAM THAT: 19 1. ENSURES THAT THE PROG RAM WILL ACCURATELY 20 REFUND DEPOSITS AND MAINTAIN AND REPORT DATA FROM EACH TRANS ACTION; 21 AND 22 2. IDENTIFIES THE INFORM ATION THAT MUST BE 23 SUBMITTED TO THE DEPARTMENT FOR APPROV AL OF THE PROGRAM . 24 (II) A PERSON THAT INTENDS TO PROVIDE AN ACCOUNT –BASED 25 BULK PROCESSING PROG RAM FOR THE REDEMPTI ON OF EMPTY REDEEMAB LE 26 BEVERAGE CONTAINERS SHALL SUBMIT INFORMA TION IDENTIFIED UNDE R 27 SUBPARAGRAPH (I) OF THIS PARAGRAPH TO THE DEPARTMENT FOR APPROV AL OF 28 THE PROGRAM . 29 (H) REFUNDS PROVIDED FOR AN EMPTY REDEEMED RED EEMABLE 30 BEVERAGE CONTAINER S HALL BE: 31 (1) IN CASH; 32 18 SENATE BILL 346 (2) IN THE FORM OF A RECE IPT FROM A REVERSE V ENDING MACHINE 1 IF: 2 (I) THE RECEIPT CAN BE EX CHANGED FOR CASH WIT HIN 60 3 DAYS AFTER THE RECEI PT IS ISSUED; AND 4 (II) THERE IS NO R EQUIREMENT THAT OTHE R GOODS BE 5 PURCHASED TO RECEIVE THE CASH REFUND ; OR 6 (3) CREDITED TO AN ACCOUN T BY THE RECEIVER OF THE EMPTY 7 REDEEMABLE BEVERAGE CONTAINER SO THAT TH E CONSUMER CAN RECEI VE THE 8 REFUND OR A REFUND R ECEIPT WITHIN A SPEC IFIED NUMBER OF DA YS, AS 9 DETERMINED BY THE DEPARTMENT , AFTER REDEEMING THE EMPTY REDEEMABLE 10 BEVERAGE CONTAINER . 11 (I) (1) A REDEMPTION FACILITY , RETAILER, OR ANY OTHER PERSON 12 THAT ACCEPTS REDEEMA BLE BEVERAGE CONTAIN ERS FOR REDEMPTION S HALL BE 13 REIMBURSED BY THE BE VERAGE CONT AINER STEWARDSHIP OR GANIZATION OR ITS 14 AGENT FOR THE HANDLI NG OF EACH EMPTY RED EEMABLE BEVERAGE CON TAINER 15 REDEEMED . 16 (2) (I) THE DEPARTMENT SHALL SET A HANDLING FEE TO BE PAID 17 BY THE BEVERAGE CONT AINER STEWARDSHIP OR GANIZATION OR ITS AG ENT TO A 18 REDEMPTION FACILITY, RETAILER, OR ANY OTHER PERSON THAT ACCEPTS EMPTY 19 REDEEMABLE BEVERAGE CONTAINERS FOR REDEM PTION. 20 (II) 1. THE HANDLING FEE SHAL L BE SET AT AN AMOUN T 21 THAT COVERS THE COST S OF COLLECTING , SORTING, PROCESSING, AND 22 TRANSPORTING EMPTY R EDEEMABLE BE VERAGE CONTAINERS FO R RECYCLING , 23 REUSE, OR REFILLING. 24 2. THE DEPARTMENT MAY INCREA SE THE HANDLING 25 FEE IF THE DEPARTMENT DETERMINES AN INCREASE IS NECES SARY TO ENCOURAGE 26 THE ESTABLISHMENT OF MORE REDEMPTION FACI LITIES. 27 (J) (1) AN ON–PREMISES SELLER T HAT PROVIDES EMPTY R EDEEMABLE 28 BEVERAGE CONTAINERS FOR REDEMPTION SHALL BE REIMBURSED BY THE 29 BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION OR ITS AGENT FOR : 30 (I) THE REFUNDS PAID BY T HE ON–PREMISES SELLER FOR THE 31 EMPTY REDEEMED REDEE MABLE BEVERAGE CONTA INERS; AND 32 (II) THE HANDLING OF EACH EMPTY REDEEMABLE BEV ERAGE 33 SENATE BILL 346 19 CONTAINER REDEEMED . 1 (2) (I) THE DEPARTMENT SHALL SET A MATERIAL HANDLING FEE 2 TO BE PAID BY THE BE VERAGE CONTAINER STE WARDSHIP ORGANIZATIO N OR ITS 3 AGENT TO AN ON –PREMISES SELLER THAT PROVIDES EMPTY REDEEMABLE 4 BEVERAGE CONTAINERS FOR REDEMPTION . 5 (II) THE HANDLING FEE SHAL L BE SET AT AN AMOUN T THAT 6 COVERS THE COSTS OF TEMPORARY STORAGE , PRELIMINARY SORTING , AND 7 PREPARING EACH REDEE MABLE BEVERAGE CONTA INER REDEEMED FOR 8 COLLECTION. 9 (3) THE BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION OR ITS 10 AGENT SHALL PROVIDE TO AN ON–PREMISES SELLER : 11 (I) ANY RECEPTACLES OR BA GS REQUIRED FOR THE 12 PRELIMINARY SORTING OF REDEEMED REDEEMAB LE BEVERAGE CONTAINE RS BY 13 THE ON–PREMISES SELLER ; AND 14 (II) ANY LA BELS NECESSARY FOR A TTRIBUTING THE 15 REDEEMED REDEEMABLE BEVERAGE CONTAINERS TO THE ON–PREMISES SELLER . 16 (K) A DEPOSIT INITIATOR TH AT COLLECTS A DEPOSI T FROM A RETAILER , 17 REDEMPTION FACILITY , OR ANY OTHER PERSON THAT ACCEPTS REDEEMA BLE 18 BEVERAGE CONTAINERS FOR REDEMPTION SHALL A CCOUNT FOR ANY DEPOS ITS IN 19 ACCORDANCE WITH § 9–1743 OF THIS SUBTITLE. 20 (L) REDEEMED EMPTY REDEEM ABLE BEVERAGE CONTAI NERS SHALL BE 21 COLLECTED FOR RETURN TO THE BEVERAGE CONT AINER STEWARDSHIP 22 ORGANIZATION FOR SAL E AS SCRAP MATERIAL TO FINANCE THE PROGRAM. 23 9–1743. 24 (A) A DEPOSIT INITIATOR SH ALL DEPOSIT ANY DEPO SITS COLLECTED 25 UNDER § 9–1742 OF THIS SUBTITLE INT O A DEPOSIT COLLECTI ON ACCOUNT THAT IS 26 MAINTAINED SEPARATEL Y FROM ALL OTHER REV ENUES. 27 (B) THE FUNDS IN THE DEPO SIT COLLECTION ACCOUNT MAY BE USED ONLY 28 TO PAY THE REFUND VA LUE OF AN EMPTY REDE EMABLE BEVERAGE CONT AINER 29 BEING REDEEMED . 30 (C) A DEPOSIT INITIATOR SH ALL REPORT TO THE BE VERAGE CONTAINER 31 STEWARDSHIP ORGANIZA TION, AT A FREQUENCY DETER MINED BY THE 32 20 SENATE BILL 346 DEPARTMENT , THE FOLLOWING INFORMATION : 1 (1) THE NUMBER OF REDEEMA BLE BEVERAGE CONTAIN ERS SOLD 2 AND EMPTY REDEEMABLE BEVERAGE CONTAINERS REDEEMED SINCE THE L AST 3 REPORT WAS SUBMITTED TO THE BEVERAGE CONT AINER STEWARDSHIP 4 ORGANIZATION UNDER T HIS SUBSECTION ; 5 (2) THE FUNDS DEPOSITE D INTO THE DEPOSIT C OLLECTION 6 ACCOUNT AND THE REFU NDS ISSUED FROM THE DEPOSIT COLLECTION A CCOUNT 7 SINCE THE LAST REPOR T WAS SUBMITTED TO T HE BEVERAGE CONTAINE R 8 STEWARDSHIP ORGANIZA TION UNDER THIS SUBS ECTION; 9 (3) ANY INCOME EARNED ON THE FUNDS IN THE DEP OSIT 10 COLLECTION ACCOUNT S INCE THE LAST REPORT WAS SUBMITTED TO THE 11 BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION UNDER THIS SUBSE CTION; 12 (4) THE BALANCE OF THE DE POSIT COLLECTION ACC OUNT; AND 13 (5) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT . 14 (D) (1) THE DEPARTMENT SHALL DETE RMINE THE POINT AT W HICH A 15 DEPOSIT BECOMES AN U NCLAIMED DEPOSIT . 16 (2) UNCLAIMED DEPOSITS AR E CALCULATED AS THE AMOUNT OF 17 FUNDS TRANSFERRED TO A DEPOSIT COLLECTION ACCOUNT THAT ARE IN EXCESS 18 OF THE SUM OF: 19 (I) ANY INTEREST EARNINGS ON THE DEPO SIT COLLECTION 20 ACCOUNT DURING THE T IME FOR WHICH UNCLAI MED DEPOSITS ARE BEI NG 21 CALCULATED ; AND 22 (II) THE TOTAL AMOUNT OF T HE REFUND VALUE RECE IVED FOR 23 THE EMPTY REDEEMABLE BEVERAGE CONTAINERS REDEEMED DURING THE TIME 24 FOR WHICH THE UNC LAIMED DEPOSITS ARE BEING CALCULATED . 25 (3) A DEPOSIT INITIATOR SH ALL TRANSFER ALL UNC LAIMED 26 DEPOSITS TO THE BEVE RAGE CONTAINER STEWA RDSHIP ORGANIZATION AT A 27 FREQUENCY DETERMINED BY THE DEPARTMENT . 28 (4) THE BEVERAGE CONTAINE R STEWARDSHIP ORGANI ZATION 29 SHALL: 30 (I) ESTABLISH A RESERVE A CCOUNT TO MANAGE ALL 31 SENATE BILL 346 21 UNCLAIMED DEPOSITS ; AND 1 (II) TRANSFER 10% OF ALL UNCLAIMED DEP OSITS TO THE 2 DEPARTMENT WITH A FRE QUENCY DETERMINED BY THE DEPARTMENT . 3 (5) THE BEVERAGE CONTAINE R STEWARDSHIP ORGANI ZATION 4 SHALL U SE THE FUNDS IN THE RESERVE ACCOUNT ESTA BLISHED UNDER 5 PARAGRAPH (4) OF THIS SUBSECTION T O: 6 (I) ACHIEVE THE INTENT OF THE GENERAL ASSEMBLY STATED 7 IN § 9–1738 OF THIS SUBTITLE; AND 8 (II) MEET OR EXCEED THE PE RFORMANCE TARGETS 9 ESTABLISHED IN § 9–1740 OF THIS SUBTITLE. 10 (6) (I) THE DEPARTMENT SHALL TRAN SFER ANY UNCLAIMED 11 DEPOSITS RECEIVED UN DER THIS PARAGRAPH T O THE STATE RECYCLING TRUST 12 FUND UNDER § 9–1707(F) OF THIS SUBTITLE. 13 (II) THE UNCLAIMED DEPOSIT S TRANSFERRED TO THE STATE 14 RECYCLING TRUST FUND MAY BE USED ONLY FOR THE COSTS OF ADM INISTERING 15 AND FINANCING THE GRANT PROGRAM UNDER § 9–1750 OF THIS SUBTITLE. 16 9–1744. 17 (A) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THIS SECTION 18 APPLIES TO A PRODUCE R THAT SELLS , OFFERS FOR SALE , OR DISTRIBUT ES 19 REDEEMABLE BEVERAGE CONTAINERS IN THE STATE. 20 (2) (I) IF THE BEVERAGE CONTA INER IS SOLD UNDER T HE 21 PRODUCER’S OWN BRAND OR LACKS IDENTIFICATION OF A BRAND, THE PRODUCER 22 IS THE PERSON THAT M ANUFACTURES THE REDE EMABLE BEVERAGE CONT AINER. 23 (II) IF THE REDEEMABLE BEVERAGE CONTAINER IS 24 MANUFACTURED BY A PE RSON OTHER THAN THE BRAND OWNER , THE PRODUCER IS 25 THE PERSON THAT IS T HE LICENSEE OF A BRA ND OR TRADEMARK UNDE R WHICH A 26 REDEEMABLE BEVERAGE CONTAINER IS SOLD , OFFERED FOR SALE , OR 27 DISTRIBUTED IN THE STATE, WHETHER OR NOT THE T RADEMARK IS REGISTER ED IN 28 THE STATE, UNLESS ANOTHER RESPO NSIBLE PERSON HAS CO NTRACTUALLY 29 ACCEPTED RESPONSIBIL ITY AS THE PRODUCER AND HAS JOINED THE B EVERAGE 30 CONTAINER STEWARDSHI P ORGANIZATION AS TH E PRODUCER RESPONSIB LE FOR 31 THE REDEEM ABLE BEVERAGE CONTAI NER UNDER THIS SECTI ON. 32 22 SENATE BILL 346 (III) IF THERE IS NO PERSON DESCRIBED IN THIS PA RAGRAPH 1 OVER WHOM THE STATE CAN CONSTITUTIO NALLY EXERCISE JURIS DICTION, THE 2 PRODUCER IS THE PERS ON THAT IMPORTS OR D ISTRIBUTES THE REDEE MABLE 3 BEVERAGE CONTAINER IN THE STATE. 4 (3) IF ANOTHER PERSON CON TRACTUALLY ACCEPTS 5 RESPONSIBILITY AS A PRODUCER UNDER PARAG RAPH (2)(II) OF THIS SUBSECTION , 6 THE PRODUCER MUST PR OVIDE A CERTIFIED CO PY OF THE CONTRACTUA L 7 AGREEMENT TO THE BEV ERAGE CONTAINER STEW ARDSHIP ORGANIZATION . 8 (B) BEGINNING JANUARY 1, 2028, A PRODUCER MAY NOT S ELL, OFFER FOR 9 SALE, OR DISTRIBUTE IN OR IMPORT INTO THE STATE A REDEEMABLE BE VERAGE 10 CONTAINER UNLESS THE PRODUCER: 11 (1) IS REGISTERED WITH TH E DEPARTMENT IN ACCORDA NCE WITH 12 THIS SECTION; 13 (2) HAS PAID THE REGISTRA TION FEE UNDER SUBSE CTION (F) OF 14 THIS SECTION; AND 15 (3) IS PART OF THE BEVERA GE CONTAINER STEWARD SHIP 16 ORGANIZATION THAT : 17 (I) HAS BEEN APPROVED BY THE DEPARTMENT UNDER § 18 9–1745 OF THIS SUBTITLE ; AND 19 (II) HAS A BEVERAG E CONTAINER STEWARDS HIP PLAN 20 APPROVED BY THE DEPARTMENT UNDER § 9–1746 OF THIS SUBTITLE. 21 (C) ON OR BEFORE MARCH 1 EACH YEAR, BEGINNING IN 2027, THE 22 BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION SHALL PROVIDE TO THE 23 DEPARTMENT : 24 (1) A LIST OF EACH PRODUCE R PARTICIPATING IN T HE BEVERAGE 25 CONTAINER STEWARDSHI P ORGANIZATION ; AND 26 (2) FOR EACH PRODUCER , THE REGISTRATION FOR M REQUIRED 27 UNDER SUBSECTION (D) OF THIS SECTION. 28 (D) (1) THE DEPARTMENT SHALL CREA TE A REGISTRATION FO RM THAT 29 REQUIRES EACH PRODUC ER PARTICIPATING IN THE BE VERAGE CONTAINER 30 STEWARDSHIP ORGANIZA TION TO PROVIDE THE FOLLOWING INFORMATIO N: 31 SENATE BILL 346 23 (I) THE NAME, PRIMARY BUSINESS ADD RESS, AND CONTACT 1 INFORMATION OF THE P ERSON RESPONSIBLE FO R ENSURING COMPLIANC E WITH 2 THIS PART; 3 (II) A LIST OF EAC H BRAND OF REDEEMABL E BEVERAGE 4 CONTAINERS THAT THE PRODUCER INTENDS TO SELL, OFFER FOR SALE , OR 5 DISTRIBUTE IN THE STATE, INCLUDING THE SIZE A ND MATERIAL OF THE 6 REDEEMABLE BEVERAGE CONTAINERS FOR EACH BRAND; 7 (III) FOR EACH REDEEMABLE B EVERAGE CONTAINER SPECIFIED 8 IN THE REGISTRATION , WHETHER THE REDEEMAB LE BEVERAGE CONTAINE R: 9 1. IS REFILLABLE; AND 10 2. DEPICTS A UPC OR MARYLAND–SPECIFIC UPC 11 BARCODE; 12 (IV) HOW EACH PRODUCER WIL L PREVENT THE FRAUDU LENT 13 SALE AND REDEMPTION OF REDEEMABLE BEVERA GE CONTAINERS THAT WERE NOT 14 SOLD IN THE STATE; 15 (V) THE NUMBER OF REDEEMA BLE BEVERAGE CONTAIN ERS 16 EACH PRODUCER SOLD I N THE STATE IN THE IMMEDIAT ELY PRECEDING CALEND AR 17 YEAR; AND 18 (VI) ANY OTHER INFORMATION REQUIRED BY THE 19 DEPARTMENT . 20 (2) A PRODUCER SHA LL SUBMIT A COMPLETE D REGISTRATION FORM 21 TO THE BEVERAGE CONT AINER STEWARDSHIP OR GANIZATION THAT REPR ESENTS 22 THE PRODUCER . 23 (E) ON A SCHEDULE DETERMI NED BY THE DEPARTMENT , EACH PRODUCER 24 SHALL PAY A REGISTRA TION FEE ESTABLISHED BY THE DEPARTMENT UNDER 25 SUBSECTION (F) OF THIS SECTION. 26 (F) (1) THE DEPARTMENT SHALL ESTA BLISH AN ANNUAL REGI STRATION 27 FEE FOR PRODUCERS TH AT SELL REDEEMABLE B EVERAGE CONTAINERS I N THE 28 STATE. 29 (2) THE REGISTRATION FEE SHALL BE SET IN A MA NNER THAT: 30 (I) WHEN TAKEN IN COMBINA TION WITH ANTICIPATED 31 24 SENATE BILL 346 REVENUES FROM PENALT IES COLLECTED UNDER § 9–1754 OF THIS SUBTITLE, WILL 1 PRODUCE FUNDS SUFFIC IENT TO COVER THE DEPARTMENT ’S ESTIMATED COSTS OF 2 PLANNING, IMPLEMENTING , ADMINISTERING , MONITORING , ENFORCING, AND 3 EVALUATING THE PROGRAM FOR THE UPCOMING YEAR ; 4 (II) FOR THE FIRST YEAR OF THE PROGRAM DURING WHICH 5 REGISTRATION FEES AR E COLLECTED, SHALL COVER THE STAR T–UP COSTS OF THE 6 PROGRAM THAT WERE INC URRED BY THE DEPARTMENT AND FINANC ED FROM THE 7 GENERAL FUND; AND 8 (III) IS PROPORTIONAL TO A PRODUCER’S SHARE OF THE TOTAL 9 NUMBER OF REDEEMABLE BEVERAGE CONTAINERS SOLD IN THE STATE FOR THE 10 IMMEDIATELY PRECEDIN G CALENDAR YEAR . 11 (3) THE DEPARTMENT SHALL : 12 (I) IF THE REVENUES FROM THE REGISTRATION FEE S IN THE 13 IMMEDIATELY PRECEDIN G YEAR EXCEED THE COSTS SPECIFIED IN PARAGRAPH 14 (2)(I) OF THIS SUBSECTION , CARRY THE EXCESS REV ENUES FORWARD TO RED UCE 15 REGISTRATION FEES TH E FOLLOWING YEAR ; AND 16 (II) IF THE REVENUES FROM THE REGISTRATION FEE S IN THE 17 IMMEDIATELY PRECEDIN G YEAR DO NOT COVER THE COSTS SPECIFIED IN 18 PARAGRAPH (2)(I) OF THIS SUBSECTION , ADJUST REGISTRATION FEES FOR THE 19 FOLLOWING YEAR TO AN AMOUNT THAT WILL COV ER THE DEPARTMENT ’S ACTUAL 20 COSTS FROM THE IMMED IATELY PRECEDING YEA R. 21 (4) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 22 PARAGRAPH, REGISTRATION FEES CO LLECTED UNDER THIS S UBSECTION SHALL BE : 23 1. TRANSFERRED TO THE STATE RECYCLING TRUST 24 FUND UNDER § 9–1707(F) OF THIS SUBTITLE; AND 25 2. USED ONLY TO COVER TH E DEPARTMENT ’S COSTS OF 26 PLANNING, IMPLEMENTING , ADMINISTERING , MONITORING, ENFORCING, AND 27 EVALUATING THE PROGRAM. 28 (II) THE PORTION OF THE RE GISTRATION FEES THAT COVERED 29 THE START–UP COSTS OF THE PROGRAM AND WERE FINA NCED FROM THE GENERAL 30 FUND DURING THE FIRST YEAR OF THE PROGRAM FOR WHICH REG ISTRATION FEES 31 ARE COLLE CTED IN ACCORDANCE W ITH PARAGRAPH (2)(II) OF THIS SUBSECTION 32 SHALL BE DEPOSITED I NTO THE GENERAL FUND. 33 SENATE BILL 346 25 9–1745. 1 (A) ON OR BEFORE OCTOBER 1, 2026, THE DEPARTMENT MAY APPROV E, 2 FOR A PERIOD NOT TO EXCEED 10 YEARS, A SINGLE BEVERAGE CO NTAINER 3 STEWARDSHIP ORG ANIZATION TO REPRESE NT ALL PRODUCERS IN FULFILLING THE 4 REQUIREMENTS OF THIS PART, IF THE BEVERAGE CONT AINER STEWARDSHIP 5 ORGANIZATION DEMONST RATES THAT IT HAS : 6 (1) THE ABILITY, AS DETERMINED BY THE DEPARTMENT , TO 7 ADMINISTER THE REQUI REMENTS OF A BEVERAG E CONTAINER STEWARDSHI P PLAN 8 UNDER § 9–1746 OF THIS SUBTITLE; 9 (2) A GOVERNING BOARD CONS ISTING OF PRODUCERS THAT 10 REPRESENT THE DIVERS ITY OF APPLICABLE RE DEEMABLE BEVERAGE CO NTAINERS 11 IN THE MARKET ; 12 (3) SET NO UNREASONABLE B ARRIERS TO JOINING T HE BEVERA GE 13 CONTAINER STEWARDSHI P ORGANIZATION AND W ILL TAKE INTO CONSID ERATION 14 THE NEEDS OF SMALL P RODUCERS THAT DO NOT GENERATE A HIGH VOLU ME OF 15 CONTAINERS; 16 (4) ADEQUATE FINANCIAL RE SPONSIBILITY AND SAF EGUARDS, 17 INCLUDING FRAUD PREV ENTION MEASURES AND AN AUDIT SCHEDULE; 18 (5) THE ABILITY TO SECURE THE CAPITAL NECESSAR Y FOR THE 19 INITIAL INVESTMENT I N INFRASTRUCTURE , SORTING EQUIPMENT , SOFTWARE, 20 TRANSPORTATION , AND OTHER START –UP EXPENSES; AND 21 (6) MET ANY OTHER REQUIRE MENTS SET BY THE DEPARTMENT . 22 (B) THE DEPARTMENT MAY RENEW THE APPROVAL OF THE BEVERAGE 23 CONTAINER STEWARDSHI P ORGANIZATION UNDER SUBSECTION (A) OF THIS 24 SECTION IF THE BEVER AGE CONTAINER STEWAR DSHIP ORGANIZATION C ONTINUES 25 TO MEET THE REQUIREM ENTS OF THIS SECTION AND ANY OTHER REQUIR EMENT SET 26 BY THE DEPARTMENT . 27 (C) (1) THE DEPARTMENT SHALL REVO KE THE APPROVAL OF T HE 28 BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION IF THE DEPARTMENT 29 DETERMINES THAT THE BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION: 30 (I) FAILED TO MEET THE RE QUIREMENTS OF THIS S ECTION; OR 31 (II) FAILED TO IMPLEMENT A ND ADMINISTER AN APP ROVED 32 26 SENATE BILL 346 BEVERAGE CONTAINER S TEWARDSHIP PLAN IN A CCORDANCE WITH § 9–1746 OF 1 THIS SUBTITLE. 2 (2) IF THE DEPARTMENT REVOKES TH E APPROVAL OF THE 3 BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION UNDER PARAGRAPH (1) OF 4 THIS SUBSECTION : 5 (I) THE DEPARTMENT MAY APPROV E ONE OR MORE 6 ADDITIONAL BEVERAGE CONTAINER STEWARDSHI P ORGANIZATIONS TO C ARRY OUT 7 THE RESPONSIBILITIES OF THE BEVERAGE CONT AINER STEWARDSHIP 8 ORGANIZATION THAT WA S REVOKED , SUBJECT TO ONE OR MO RE OF THE 9 ADDITIONAL BEVERAGE CONTAINER STEWARDSHI P ORGANIZATIONS MEET ING THE 10 REQUIREMENTS SPECIFI ED IN SUBSECTION (A) OF THIS SECTION; AND 11 (II) THE TRUSTEE OR ESCROW AGENT OF THE TRUST F UND OR 12 ESCROW ACCOUNT ESTAB LISHED IN THE BEVERA GE CONTAINER STEWARD SHIP 13 PLAN UNDER § 9–1746(A)(3)(VI) OF THIS SUBTITLE SHA LL: 14 1. RECEIVE ALL PAYMENTS DIRECTLY FROM 15 PRODUCERS THAT WOULD HAVE BEEN PAID TO TH E BEVERAGE CONTAINER 16 STEWARDSHIP ORGANIZA TION; 17 2. DEPOSIT THE PAYMENTS RECEIVED UNDER ITEM 1 OF 18 THIS ITEM INTO THE TRUST FUND OR ES CROW ACCOUNT ; AND 19 3. MAKE PAYMENTS FROM TH E TRUST FUND OR ESCR OW 20 ACCOUNT AS DIRECTED BY THE DEPARTMENT TO IMPLEME NT THE REQUIREMENTS 21 OF THIS PART. 22 9–1746. 23 (A) (1) ON OR BEFORE MARCH 1, 2027, THE BEVERAGE CONTAIN ER 24 STEWARDSHIP OR GANIZATION SHALL SUB MIT A BEVERAGE CONTA INER 25 STEWARDSHIP PLAN TO THE DEPARTMENT . 26 (2) A BEVERAGE CONTAINER S TEWARDSHIP PLAN SHAL L: 27 (I) IDENTIFY AND INCLUDE THE CONTACT INFORMAT ION FOR 28 EACH PRODUCER INTEND ED TO BE COVERED UND ER THE PLAN; 29 (II) IDENTIFY EACH BRAND O F REDEEMABLE BEVERAG E 30 CONTAINER INTENDED T O BE SOLD UNDER THE PLAN, INCLUDING THE SIZE A ND 31 MATERIAL OF THE REDE EMABLE BEVERAGE CONT AINERS FOR EACH BRAN D AND 32 SENATE BILL 346 27 WHETHER THE REDEEMAB LE BEVERAGE CONTAINE RS ARE REFILLABLE ; 1 (III) DESCRIBE: 2 1. THE FINANCING INFORMA TION SPECIFIED IN 3 PARAGRAPH (3) OF THIS SUBSECTION ; 4 2. HOW THE PERFORMANCE T ARGETS WILL BE MET O R 5 EXCEEDED FOR THE 5–YEAR PERIOD FOLLOWIN G THE YEAR IN WHICH THE PLAN IS 6 APPROVED; 7 3. HOW STAKEHOLDER COMME NTS WERE CONS IDERED 8 AND REFLECTED IN THE DEVELOPMENT OF THE P LAN, INCLUDING THE ROLE O F 9 RETAILERS, DISTRIBUTORS , AND LOCAL GOVERNMENT S IN PLAN IMPLEMENTA TION; 10 4. THE ADMINISTRATION AN D IMPLEMENTATION OF 11 THE PLAN, INCLUDING ANY STAFFI NG THAT WILL BE NECE SSARY FOR T HESE 12 PURPOSES; 13 5. THE ACTIONS THAT HAVE BEEN TAKEN AND THAT 14 WILL BE TAKEN FOR PU BLIC OUTREACH , EDUCATION, AND COMMUNICATION , 15 INCLUDING MESSAGING AND IDENTIFICATION O F TARGET AUDIENCES ; AND 16 6. THE ANTICIPATED INVES TMENTS THAT WILL BE 17 MADE TO IMPRO VE THE REUSE OF BEVE RAGE CONTAINERS , INCLUDING THE 18 SOURCE OF FUNDING FO R THE INVESTMENTS ; 19 (IV) LIST THE STAKEHOLDERS CONSULTED IN DEVELOP ING THE 20 PLAN; 21 (V) PROVIDE THE ANTICIPAT ED COSTS OF IMPLEMEN TING THE 22 PLAN FOR 5 YEARS, BROKEN DOWN BY YEAR ; 23 (VI) INCLUDE A CLOSURE AND TRANSFER PLAN FOR HA NDLING 24 THE AFFAIRS OF THE B EVERAGE CONTAINER ST EWARDSHIP ORGANIZATI ON THAT 25 ENSURES THAT EACH PR ODUCER INTENDED TO B E COVERED UNDER THE BEVERAGE 26 CONTAINER STEWARDSHI P PLAN CAN FULFILL T HE PRODUCER ’S OBLIGATIONS IN 27 THE EVENT THAT THE B EVERAGE CONTAINER ST EWARDSHIP ORGANIZATI ON 28 DISSOLVES OR HAS ITS APPROVAL REVOKED UND ER § 9–1745 OF THIS SUBTITLE ; 29 AND 30 (VII) INCLUDE ANY OTHER INF ORMATION REQUESTED B Y THE 31 DEPARTMENT . 32 28 SENATE BILL 346 (3) THE FINANCING INFORMA TION INCLUDED IN A BEVERAGE 1 CONTAINER STEWARDSHI P PLAN SHALL: 2 (I) EXPLAIN THE FINANCING FOR DIRECT INVESTMEN TS OR 3 REIMBURSEMENTS THAT WILL IMPROVE INFRAST RUCTURE IN A MANNER THAT 4 SUPPORTS REDEMPTION SERVICES AND TECHNOL OGIES; 5 (II) ESTABLISH A FEE STRUC TURE IN ACCOR DANCE WITH 6 PARAGRAPH (4) OF THIS SUBSECTION F OR PRODUCERS PARTICI PATING IN THE 7 BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION; 8 (III) DESCRIBE THE COSTS OF MEETING THE PERFORMA NCE 9 TARGETS; 10 (IV) DESCRIBE THE INCENTIV ES USED TO ENCOURAGE 11 PRODUCERS TO : 12 1. INVEST IN REUSABLE AN D REFILLABLE BEVERAG E 13 CONTAINER SYSTEMS ; AND 14 2. REDESIGN BEVERAGE CON TAINERS TO BE EASIER 15 AND LESS COSTLY TO R ECYCLE; 16 (V) CREATE INCENTIVES FOR PRODUCERS TO USE A 17 MARYLAND–SPECIFIC UPC BARCODE TO REDUCE FR AUDULENT REDEMP TION; 18 (VI) ESTABLISH A TRUST FUN D OR AN ESCROW ACCOU NT IN THE 19 STATE INTO WHICH THE BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION 20 SHALL DEPOSIT ALL UN EXPENDED FUNDS FOR U SE IN ACCORDANCE WIT H THIS 21 SECTION IN THE EVENT THAT THE BEVERAGE CO NTAINER STEWARDSH IP 22 ORGANIZATION DISSOLV ES OR HAS ITS APPROV AL REVOKED BY THE DEPARTMENT 23 UNDER § 9–1745 OF THIS SUBTITLE; AND 24 (VII) MEET ANY OTHER REQUIR EMENTS ESTABLISHED B Y THE 25 DEPARTMENT . 26 (4) (I) THE FEE STRUCTURE REQ UIRED UNDER PARAGRAP H (3) OF 27 THIS SUBSECTION F OR PRODUCERS PARTICI PATING IN THE BEVERA GE CONTAINER 28 STEWARDSHIP ORGANIZA TION SHALL BE: 29 1. SET IN A MANNER THAT COVERS THE COSTS OF 30 ADMINISTERING THE BE VERAGE CONTAINER STE WARDSHIP ORGANIZATIO N AND 31 SENATE BILL 346 29 IMPLEMENTING THE BEV ERAGE CONTAINER STEW ARDSHIP PLAN ; AND 1 2. BASED ON: 2 A. THE COSTS ASSOCIATED WITH TRANSPORTING , 3 COLLECTING, AND PROCESSING EACH TYPE OF REDEEMABLE B EVERAGE 4 CONTAINER MATERIAL ; 5 B. WHETHER A PRODUCER ’S REDEEMABLE BEVERAG E 6 CONTAINERS ARE REFIL LABLE; 7 C. WHETHER A PRODUCER ’S EMPTY REDEEMABLE 8 BEVERAGE CONTAINERS ARE EASY TO RECYCLE ; 9 D. WHETHER A PRODUCER ’S REDEEMABLE BEVERAG E 10 CONTAINERS HAVE A MARYLAND–SPECIFIC UPC BARCODE; 11 E. A PRODUCER’S PORTION, BY MATERIAL TYPE , OF 12 REDEEMABLE BEVERAGE CONTAINERS SOLD IN T HE STATE DURING THE PREVIOUS 13 CALENDAR YEAR ; AND 14 F. ANY OTHER FACTOR THE DEPARTMENT DETERMINES 15 IS NECESSARY TO SUPP ORT THE PROGRAM. 16 (II) 1. EXCEPT AS PROVIDED IN § 9–1745(C)(2) OF THIS 17 SUBTITLE, A PRODUCER PARTICIPA TING IN THE BEVERAGE CONTAINER 18 STEWARDSHIP ORGANIZATION SHALL P AY THE FEE ESTABLISH ED UNDER 19 PARAGRAPH (3) OF THIS SUBSECTION T O THE BEVERAGE CONTA INER STEWARDSHIP 20 ORGANIZATION . 21 2. THE BEVERAGE CONTAINE R STEWARDSHIP 22 ORGANIZATION SHALL D EPOSIT FEES RECEIVED UNDER THIS SUBPARAGR APH TO AN 23 ACCOUNT HELD BY THE BEVERAGE CONTAINER STEWARDSHI P ORGANIZATION . 24 3. THE BEVERAGE CONTAINE R STEWARDSHIP 25 ORGANIZATION MAY USE THE FEES RECEIVED UN DER THIS SUBPARAGRAP H ONLY 26 FOR IMPLEMENTING THE BEVERAGE CONTAINER S TEWARDSHIP PLAN . 27 (5) THE DEPARTMENT SHALL S UBMIT A BEVERAGE CON TAINER 28 STEWARDSHIP PLAN TO AN INDEPENDENT FINAN CIAL AUDITOR TO ENSU RE THAT 29 THE FINANCING PROPOS ED IN THE PLAN WILL COVER THE COSTS OF I MPLEMENTING 30 THE PLAN. 31 30 SENATE BILL 346 (B) (1) (I) WITHIN 120 DAYS AFTER RECEIPT O F A BEVERAGE 1 CONTAINER STEWARDSHI P PLAN SUBMITTED TO TH E DEPARTMENT UNDER 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 DEPARTMEN T 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 PLAN; AND 13 2. CONSULT WITH THE ADVISORY COUNCIL. 14 (2) (I) THE DEPARTMENT MAY RESCIN D APPROVAL OF A 15 BEVERAGE CONTAINER S TEWARDSHIP PLAN FOR GOOD CAUSE. 16 (II) THE BEVERAGE CONTAINE R STEWARDSHIP ORGANI ZATION 17 MAY AMEND A RESCINDE D BEVERAGE CONTAIN ER 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 A MENDED IF THE REPORT 23 SUBMITTED UNDER § 9–1747 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) THE BEVERAGE CONTAINE R STEWARDSHIP ORGANI ZATION 28 SHALL IMPLEMENT AND ADMINISTER A BEVERAG E CONTAINER STEWARDS HIP PLAN 29 WITHIN 6 MONTHS AFTER THE PLA N IS APPROVED. 30 (2) IN IMPLEMENTING AND A DMINISTERING A BEVER AGE CONTAINER 31 SENATE BILL 346 31 STEWARDSHIP PLAN , THE BEVERAGE CO NTAINER STEWARDSHIP ORGANIZATION 1 SHALL: 2 (I) FACILITATE LOGISTICS , THE INITIATION OF DE POSITS, AND 3 THE ISSUANCE OF REFU NDS UNDER THE PLAN ; 4 (II) COORDINATE THE LOGIST ICS FOR TIMELY COLLE CTION OF 5 REDEEMABLE BEVERAGE CONTAINERS FROM AN O N–PREMISES SELL ER; 6 (III) ESTABLISH PROCEDURES FOR TRACKING REDEEMA BLE 7 BEVERAGE CONTAINERS SOLD IN THE STATE; 8 (IV) DESIGN AND OPERATE SE RVICES FOR THE 9 TRANSPORTATION AND P ROCESSING OF REDEEMA BLE BEVERAGE CONTAIN ERS; 10 (V) DEVELOP AND IMPLEMENT A PLAN FOR ESTABLI SHING, 11 OPERATING, AND MANAGING REDEMPT ION FACILITIES THAT WILL OFFER A WIDE 12 RANGE OF CONVENIENT REDEMPTION LOCATIONS AND TECHNOLOGIES THA T ARE 13 EASY TO USE, ACCESSIBLE, AND MEET OR EXCEED T HE CONVENIENCE STAND ARDS 14 ESTABLISHED BY THE DEPARTMENT UNDER § 9–1751 OF THIS SUBTITLE; 15 (VI) DEVELOP AND IMPLEMENT A PLAN FOR THE DISTR IBUTION, 16 OPERATION, AND MAINTENANCE OF B EVERAGE CONTAINER RE DEMPTION AND 17 PROCESSING METHODS , INCLUDING REVERSE VE NDING MACHINES , BAG DROP 18 PROGRAMS, AND ACCOUNT –BASED BULK PROCESSIN G PROGRAMS; 19 (VII) DEVELOP ACCOUNTING AN D CONTROL STANDARDS ; 20 (VIII) IMPLEMENT ACCOUNTING , AUDIT, PAYMENT, AND 21 REPORTING PROCEDURES ; 22 (IX) ESTABLISH A HIGH –VOLUME VALIDATION AN D AUDIT 23 SYSTEM TO PAY A BULK RATE TO AN ON–PREMISES SELLER FOR THE REDEMP TION 24 OF EMPTY REDEEMABLE BEVERAGE CONTAINERS ; 25 (X) ESTABLISH AN APPLICAT ION PROCESS FOR LARG E 26 ON–PREMISES SELLERS TO APPLY FOR AND RECEIV E A BULK RATE FOR TH E 27 REDEMPTION OF HIGH V OLUMES OF EMPTY REDE EMABLE BEVERAGE CONT AINERS; 28 (XI) MARKET REDEEMABL E BEVERAGE CONTAINER MATERIALS 29 FOR REUSE IN THE MAN UFACTURING OF SIMILA R PRODUCTS; 30 (XII) FUND A MARKETING PROG RAM TO EDUCATE THE P UBLIC 31 32 SENATE BILL 346 ABOUT THE PROGRAM; 1 (XIII) ESTABLISH A SYSTEM FO R REPORTING KEY INFO RMATION 2 GATHERED BY THE PROGRAM TO THE DEPARTMENT ON A QUARTERLY BASIS; AND 3 (XIV) CREATE INCENTIVES FOR THE DEVELOPMENT OF 4 REFILLABLE AND REUSA BLE BEVERAGE CONTAIN ER SYSTEMS. 5 (3) ON REQUEST OF THE DEPARTMENT , THE BEVERAGE CONTAIN ER 6 STEWARDSHIP ORGANIZA TION SHALL SUBMIT A COPY OF ITS FINANCIA L RECORDS 7 TO THE DEPARTMENT FOR A FINA NCIAL AUDIT. 8 9–1747. 9 (A) THIS SECTION APPLIES TO THE BEVERAGE CONT AINER STEWARDSHIP 10 ORGANIZATION THAT HA S A BEVERAGE CONTAIN ER STEWARDSHIP PLAN APPROVED 11 BY THE DEPARTMENT UNDER § 9–1746 OF THIS SUBTITLE. 12 (B) (1) ON OR BEFORE APRIL 1 EACH YEAR, BEGINNING IN 2029, THE 13 BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION SHALL SUBMIT A R EPORT TO 14 THE DEPARTMENT ON THE PRO GRESS MADE IN THE PR ECEDING CALENDAR YEA R 15 TOWARD MEETING THE P ERFORMANCE TARGETS A ND THE GOALS OF THE PROGRAM 16 AND THE BEVERAGE CON TAINER STEWARDSHIP O RGANIZATION’S BEVERAGE 17 CONTAINER STEWARDSHI P PLAN. 18 (2) THE DEPARTMENT SHALL PROV IDE THE ADVISORY COUNCIL 19 WITH A COPY OF EACH REPORT SUBMITTED UND ER THIS SUBSECTION . 20 (C) THE REPORT SUBMITTED UNDER SUBSECTION (B) OF THIS SECTION 21 SHALL INCLUDE , FOR THE PRECEDING CA LENDAR YEAR : 22 (1) THE PROGRESS MADE TOW ARD ACHIEVING THE PE RFORMANCE 23 TARGETS; 24 (2) IF THE PERFORMANCE TA RGETS WERE NOT ACHIE VED, A 25 DESCRIPTION OF THE A CTIONS PROPOSED TO A CHIEVE THE PERFORMAN CE 26 TARGETS; 27 (3) THE NUMBER OF REDEEMA BLE BEVERAGE CONTAIN ERS SOLD IN 28 THE STATE; 29 (4) THE NUMBER OF REDEEMA BLE BEVERAGE CONTAIN ERS SOLD IN 30 THE STATE SORTED BY MATER IAL TYPE, REFUND VALUE , AND WHETHER THE 31 SENATE BILL 346 33 CONTAINER CAN BE REF ILLED OR REUSED ; 1 (5) THE NUMBER OF EMPTY REDEEMABLE BEV ERAGE CONTAINERS 2 REDEEMED ; 3 (6) THE NUMBER OF EMPTY R EDEEMABLE BEVERAGE C ONTAINERS 4 REDEEMED AT EACH RED EMPTION FACILITY , REVERSE VENDING MACH INE, BAG 5 DROP PROGRAM , ACCOUNT–BASED BULK PROCESSIN G PROGRAM , OR OTHER 6 BEVERAGE CONTAINER R EDEMPTION AND PROCESSI NG METHOD SORTED BY 7 MATERIAL TYPE , REFUND VALUE , AND WHETHER THE EMPT Y REDEEMABLE 8 BEVERAGE CONTAINER C AN BE REFILLED OR RE USED; 9 (7) THE REDEMPTION RATE A ND RECYCLING RATE FO R 10 NONREFILLABLE REDEEM ABLE BEVERAGE CONTAI NERS SOLD IN THE STATE 11 SORTED BY MATERIAL T YPE, NUMBER OF CONTAINERS SOLD, AND CONTAINER 12 WEIGHT; 13 (8) THE AMOUNT OF EACH TY PE OF: 14 (I) REDEEMABLE BEVERAGE C ONTAINER MATERIAL 15 COLLECTED IN THE STATE; AND 16 (II) SCRAP MATERIAL SOLD B Y THE BEVERAGE CONTA INER 17 STEWARDSHIP ORGANIZATION ; 18 (9) THE LOCATION OF EACH REDEMPTION FACILITY IN THE STATE 19 AND THE REDEMPTION M ETHOD USED AT EACH R EDEMPTION FACILITY ; 20 (10) A DESCRIPTION OF ANY I MPROVEMENTS MADE TO MAKE 21 RETURNING EMPTY REDE EMABLE BEVERAGE CONT AINERS EASIER AND MO RE 22 CONVENIENT; 23 (11) THE IDENTIFICATION AN D DESCRIPTION OF ARE AS THAT DO NOT 24 HAVE READILY AVAILAB LE OPTIONS FOR REDEE MING AN EMPTY REDEEM ABLE 25 BEVERAGE CONTAINER A ND ACTIONS THE BEVER AGE CONTAINER STEWAR DSHIP 26 ORGANIZATION WILL TA KE TO IMPROVE OPTION S IN THESE AREAS; 27 (12) THE NUMBER OF CONSUME R COMPLAINTS PER MON TH, SORTED 28 BY REDEMPTION FACILI TY; 29 (13) THE NUMBER AND TYPE O F COMPLAINTS FROM ON –PREMISES 30 SELLERS PER MONTH , SORTED BY TYPE OF BU SINESS; 31 34 SENATE BILL 346 (14) THE NUMBER OF INDIVID UALS AND ORGANIZATIO NS WITH 1 ACCOUNTS ESTABLISHED F OR THE RECEIPT OF EL ECTRONIC DEPOSITS OR 2 REFUNDS; 3 (15) THE TOTAL COST OF IMP LEMENTING THE BEVERA GE CONTAINER 4 STEWARDSHIP PLAN , AS DETERMINED BY AN INDEPENDENT FINANCIA L AUDITOR 5 UNDER § 9–1746(A)(5) OF THIS SUBTITLE; 6 (16) THE AVERA GE COST OF PROCESSIN G AN EMPTY REDEEMED 7 REDEEMABLE BEVERAGE CONTAINER; 8 (17) A COPY OF THE AUDIT CO NDUCTED UNDER § 9–1746(A)(5) OF 9 THIS SUBTITLE; 10 (18) FINANCIAL STATEMENTS DETAILING ALL DEPOSI TS RECEIVED 11 AND REFUNDS ISSUED B Y EACH PRODUCER COVE RED UND ER THE BEVERAGE 12 CONTAINER STEWARDSHI P PLAN; 13 (19) THE TOTAL AMOUNT OF D EPOSITS INITIATED , REFUNDS ISSUED , 14 AND UNCLAIMED DEPOSI TS COLLECTED UNDER T HE BEVERAGE CONTAINE R 15 STEWARDSHIP PLAN ; 16 (20) AN ACCOUNTING OF ALL ACTIVITIES AND INVES TMENTS 17 FINANCED BY UNCLAIMED DEPOSITS ; 18 (21) EXPENDITURES AND REVE NUES SORTED BY SOURC E, INCLUDING 19 FEES PAID UNDER § 9–1746(A)(4) OF THIS SUBTITLE , REVENUE FROM THE SAL E OF 20 SCRAP MATERIALS , AND UNCLAIMED DEPOSI TS; 21 (22) SAMPLES OF ALL EDUCAT IONAL MATERIALS PROV IDED TO 22 CONSUMERS, RETAILERS, AND OTHER ENTITIES ; 23 (23) A DETAILED DESCRIPTION OF INVESTMENTS MADE IN NEW 24 REDEMPTION FACILITIE S AND REDEMPTION MET HODS; 25 (24) THE LOCATION OF NEW R EDEMPTION FACILITIES AND 26 REDEMPTION METHODS ; 27 (25) A DETAILED DESCRIPTION OF CHANGES MADE BY PROD UCERS TO 28 INCREASE THE RECYCLA BILITY OF REDEEMABLE BEVERAGE CONTAINERS ; 29 (26) A DETAILED DESCRIPTION OF ANY INCIDENTS OF FRAUD AND 30 EFFORTS TAKEN TO PRE VENT FRAUD; AND 31 SENATE BILL 346 35 (27) 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 AND THE ADVISORY COUNCIL. 4 (E) THE DEPARTMENT SHALL POST THE REPORT SUBMITTED UNDER THIS 5 SECTION ON TH E 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 9–1748. 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 REC YCLING RATES REQUIRE D UNDER § 14 9–505 OF THIS TITLE. 15 (C) (1) THROUGH DECEMBER 31, 2030, 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 DETERMI NING A NET LOSS OF R EVENUE, 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 FRO M 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 346 4. THE COSTS OF LANDFILL ING 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 LOA D DUE TO A REDUCTION IN BEVERAGE 7 CONTAINER LITTER . 8 9–1749. 9 FUNDING FOR THE PROGRAM SHALL : 10 (1) INCLUDE: 11 (I) REDEEMABLE BEVERAGE C ONTAINER STEWARDSHIP 12 ORGANIZATION FEES CO LLECTED UNDER § 9–1746 OF THIS SUBTITLE; 13 (II) REVENUE FROM THE SALE OF RAW MATERIALS; 14 (III) UNCLAIMED DEPOSITS CO LLECTED UNDER § 9–1743 OF 15 THIS SUBTITLE; 16 (IV) REGISTRATION FEES COL LECTED UNDER § 9–1744 OF THIS 17 SUBTITLE; AND 18 (V) PENALTIES COLLECTED U NDER § 9–1754 OF THIS 19 SUBTITLE; AND 20 (2) BE USED IN ACCORDANCE WITH §§ 9–1707(F), 9–1743, 9–1744, 21 AND 9–1754 OF THIS SUBTITLE. 22 9–1750. 23 (A) THERE IS A BEVERAGE CONTAINER RECYCLING REFUND GRANT 24 PROGRAM. 25 (B) THE PURPOSE OF THE GRANT PROGRAM IS TO PROVIDE FUNDING: 26 (1) FOR AN EVALUATION OF THE INVESTMENTS AND POLICIES 27 SENATE BILL 346 37 NECESSARY TO ENSURE THAT, BY DECEMBER 31, 2035, AT LEAST 10% OF ALL 1 BEVERAGE CONTAINERS SOLD IN THE STATE ARE RETURNED AN D REFILLED; AND 2 (2) FOR PROJECTS THAT : 3 (I) INCREASE THE REUSE AN D RECYCLING OF BEVER AGE 4 CONTAINERS IN THE STATE; 5 (II) INCREASE THE AVAILABIL ITY OF PUBLIC WATER 6 FOUNTAINS AND REFILL STATIONS IN THE STATE; AND 7 (III) REDUCE THE VOLUME OF LITTER FROM BEVERAGE 8 CONTAINERS IN THE STATE. 9 (C) THE DEPARTMENT SHALL ADMI NISTER THE GRANT PROGRAM. 10 (D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE GRANT 11 PROGRAM SHALL BE FUND ED FROM A PORTION OF THE UNCLAIMED DEPOSI TS 12 TRANSFERRED TO THE S EPARATE ACCOUNT ESTA BLISHED UNDER § 9–1707(F)(7) OF 13 THIS SUBTITLE. 14 (2) THE GRANT PROGRAM MAY AWARD UP TO $5,000,000 IN GRANTS 15 EACH YEAR F ROM THE UNCLAIMED DE POSITS TRANSFERRED T O THE SEPARATE 16 ACCOUNT ESTABLISHED UNDER § 9–1707(F)(7) OF THIS SUBTITLE. 17 (E) THE FOLLOWING ENTITIE S ARE ELIGIBLE FOR A GRANT UNDER THE 18 GRANT PROGRAM: 19 (1) A SCHOOL OR AN INSTITU TION OF HIGHER EDUCA TION; 20 (2) A NONPROFIT ORGANIZATI ON; 21 (3) A COUNTY OR MUNICIPAL CORPORATION ; 22 (4) A FOR–PROFIT ORGANIZATION ; AND 23 (5) A PUBLIC–PRIVATE PARTNERSHIP . 24 (F) THE DEPARTMENT , IN CONSULTATION WITH THE ADVISORY COUNCIL, 25 SHALL ADOPT REGULATI ONS ESTABLISHING : 26 (1) AN APPLICATION PROCESS FOR AN ENTITY TO APP LY FOR A 27 GRANT; 28 38 SENATE BILL 346 (2) THE CRITERIA FOR EVAL UATING AND AWARDING GRANTS; 1 (3) REPORTING AND EVALUAT ION REQUIREMENTS FOR A GRANT 2 AWARDED UNDER THIS S ECTION; AND 3 (4) ANY OTHER REQUIREMENT S THE DEPARTMENT DETERMINES 4 ARE NECESSARY FOR AD MINISTERING AND IMPL EMENTING GRANTS AWAR DED 5 UNDER THE GRANT PROGRAM. 6 (G) THE DEPARTMENT SHALL BEGI N AWARDING GRANTS ON OR BEFORE 7 JANUARY 1, 2029. 8 9–1751. 9 IN ADDITION TO THE DU TIES AND REQUIREMENT S SPECIFIED IN THIS PART, 10 THE DEPARTMENT SHALL : 11 (1) IN CONSULTATION WITH THE ADVISORY COUNCIL: 12 (I) ESTABLISH CONVENIENCE STANDARDS FOR THE CO VERAGE 13 AND AVAILABILITY OF REDEMPTION OPTIONS A CROSS THE STATE; AND 14 (II) ENSURE THE CONVENIENC E STANDARDS PROVIDE 15 ACCESSIBLE REDEMPTIO N OPTIONS FOR DIFFEREN TLY ABLED PEOPLE AND PEOPLE 16 WHO LIVE IN RURAL AR EAS OR LOW–INCOME COMMUNITIES O F COLOR; 17 (2) ESTABLISH A SYSTEM FO R LARGE ON –PREMISES SELLERS TO 18 VERIFY THE SOURCE OF THE HIGH VOLUMES OF REDEEMABLE BEVERAGE 19 CONTAINERS REDEEMED BY THE ON–PREMISES SELLER ; AND 20 (3) PERIODICALLY REVIEW A VAILABLE BEVERAGE CO NTAINER 21 REDEMPTION AND PROCE SSING METHODS TO DET ERMINE WHETHER THE T YPES OF 22 BEVERAGE CONTAINERS COVERED UNDER THE PROGRAM SHOULD BE EXP ANDED. 23 9–1752. 24 (A) THERE IS A REDEEMABLE BEVERAGE CONTAINER RECYCLING 25 REFUND ADVISORY COUNCIL. 26 (B) THE ADVISORY COUNCIL CONSISTS OF T HE FOLLOWING MEMBERS , 27 DESIGNATED BY THE SECRETARY: 28 SENATE BILL 346 39 (1) ONE MEMBER REPRESENTI NG RECYCLING PROCESS ORS; 1 (2) ONE MEMBER REPRESENTI NG LOCAL GOVERNMENT AGENCIES 2 RESPONSIBLE FOR RECYCLING P ROGRAMS; 3 (3) ONE MEMBER REPRESENTI NG GLASS MANUFACTURE RS OR A 4 GLASS MANUFACTURING TRADE ORGANIZATION ; 5 (4) ONE MEMBER REPRESENTI NG ALUMINUM MANUFACT URERS OR 6 AN ALUMINUM MANUFACT URING TRADE ORGANIZA TION; 7 (5) ONE MEMBER REPRESENTI NG PLASTIC MANUFACTU RERS OR A 8 PLASTIC MANUFACTURIN G TRADE ORGANIZATION ; 9 (6) ONE MEMBER REPRESENTI NG BEVERAGE COMPANIE S; 10 (7) ONE MEMBER REPRESENTI NG PURCHASERS OF REC YCLED 11 CONTENT; 12 (8) ONE MEMBER REPRESENTI NG RETAILERS; 13 (9) ONE MEMBER REPRESENTI NG RESTAURANTS OR OT HER 14 ON–PREMISES SELLERS ; 15 (10) ONE MEMBER REPRESENTI NG REVERSE VENDING M ACHINE 16 BUSINESSES; 17 (11) ONE MEMBER REPRESENTI NG ACCOUNT –BASED BULK 18 PROCESSORS ; 19 (12) ONE MEMBER REPRESENTI NG BUSINESSES INVOLV ED IN REUSE 20 AND REFILL SYSTEMS ; 21 (13) AT LEAST ONE MEMBER R EPRESENTING AN ENVIR ONMENTAL 22 ADVOCACY ORGANIZATIO N; 23 (14) AT LEAST ONE MEMBER R EPRESENTING AN ENVIR ONMENTAL 24 JUSTICE ADVOCACY ORG ANIZATION; AND 25 (15) AT LEAST TWO MEMBERS WHO ARE MEMBERS OF T HE GENERAL 26 PUBLIC AND RESIDE IN THE STATE. 27 (C) THE SECRETARY SHALL DESIG NATE TWO COCHAIRS FR OM AMONG THE 28 40 SENATE BILL 346 MEMBERSHIP OF THE ADVISORY COUNCIL. 1 (D) THE DEPARTMENT SHALL PROV IDE STAFF FOR THE ADVISORY 2 COUNCIL. 3 (E) A MEMBER OF THE ADVISORY COUNCIL: 4 (1) MAY NOT R ECEIVE COMPENSATION AS A MEMBER OF THE 5 ADVISORY COUNCIL; BUT 6 (2) IS ENTITLED TO REIMBU RSEMENT FOR EXPENSES UNDER THE 7 STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET . 8 (F) THE ADVISORY COUNCIL SHALL MEET : 9 (1) AT LEAST QUARTERLY EACH YEAR; AND 10 (2) AS REQUESTED BY THE DEPARTMENT . 11 (G) THE ADVISORY COUNCIL SHALL: 12 (1) ADVISE THE DEPARTMENT ON DETERMI NING WHETHER TO 13 APPROVE A BEVERAGE C ONTAINER STEWARDSHIP PLAN; 14 (2) MAKE RECOMMENDATIONS TO THE DEPARTMENT ON THE 15 IMPLEMENTATION OF AP PROVED BEVERAGE CONT AINER STEWARDSHIP PL ANS; 16 (3) REVIEW AND ADVISE THE DEPARTMENT ON THE ANN UAL 17 REPORTS SUBMITTED UN DER § 9–1747 OF THIS SUBTITLE; AND 18 (4) ADVISE THE DEPARTMENT ON THE IMP LEMENTATION , 19 ADMINISTRATION , AND PERFORMANC E OF THE PROGRAM. 20 9–1753. 21 (A) ON OR BEFORE JUNE 1, 2026, THE DEPARTMENT SHALL ADOP T 22 REGULATIONS TO CARRY OUT THIS PART. 23 (B) THE DEPARTMENT MAY EXPAND THE TYPES OF BEVERAG E CONTAINERS 24 COVERED UNDER THE PROGRAM BY REGULATION IF, BASED ON ITS REVIEW UNDER 25 § 9–1751(3) OF THIS SUBTITLE , THE DEPARTMENT DETERMINES THERE ARE 26 CONVENIENT REDEMPTIO N OPTIONS FOR THOSE BEVERAGE CONTAINERS . 27 SENATE BILL 346 41 9–1754. 1 (A) EXCEPT AS PROVIDED IN SUBSECTIONS (C) AND (D) OF THIS SECTION , 2 THE PROVISIONS OF §§ 9–334 THROUGH 9–344 OF THIS TITLE APPLY TO ENFOR CE 3 VIOLATIONS OF THIS P ART. 4 (B) A PENALTY MAY NOT BE I MPOSED ON A PRODUCER FOR FAILING TO 5 PROPERLY REGISTER WI TH THE DEPARTMENT UNDER § 9–1744 OF THIS SUBTITLE , 6 INCLUDING FAILING TO IDENTIFY EACH BRAND OF REDEEMABLE BEVERA GE 7 CONTAINER THAT THE PRODUCER IN TENDS TO SELL , OFFER FOR SALE , OR 8 DISTRIBUTE IN THE STATE, UNLESS: 9 (1) THE DEPARTMENT FIRST ISSU ES A WRITTEN NOTICE OF THE 10 VIOLATION TO THE PRO DUCER; AND 11 (2) THE PRODUCER DOES NOT REGISTER WITHIN 90 DAYS AFTER 12 RECEIVING THE WRITTEN NOTICE . 13 (C) (1) A PERSON MAY NOT REDEE M, ATTEMPT TO REDEEM , RECEIVE, 14 STORE, TRANSPORT, DISTRIBUTE, OR OTHERWISE FACILIT ATE OR AID IN THE 15 REDEMPTION OF THE FO LLOWING MATERIALS WI TH AN INTENT TO DEFR AUD: 16 (I) AN EMPTY REDEEMABLE B EVERAGE CONTAIN ER THAT WAS 17 SOLD IN ANOTHER STAT E; 18 (II) AN EMPTY REDEEMABLE B EVERAGE CONTAINER TH AT WAS 19 REJECTED FOR REDEMPT ION; 20 (III) LINE BREAKAGE ; 21 (IV) A PREVIOUSLY REDEEMED REDEEMABLE BEVERAGE 22 CONTAINER; OR 23 (V) ANOTHER INELIGIBLE MA TERIAL. 24 (2) A PERSON MAY NOT DISPOSE OF A REDEEMED REDEEM ABLE 25 BEVERAGE CONTAINER I N A LANDFILL OR AN I NCINERATOR . 26 (3) THE DEPARTMENT SHALL ESTA BLISH ADMINISTRATIVE 27 PENALTIES FOR A VIOL ATION OF THIS SUBSEC TION THAT ARE BASED ON THE 28 NUMBER OF BEVERAGE C ONTAINERS AND REFUN D AMOUNTS INVOLVED . 29 (D) (1) BEGINNING JANUARY 1, 2031, IF THE BEVERAGE CONT AINER 30 42 SENATE BILL 346 STEWARDSHIP ORGANIZA TION HAS NOT MET THE REDEMPTION RATES 1 ESTABLISHED IN § 9–1740 OF THIS SUBTITLE FOR THE IMMEDIATELY PREC EDING 2 2 YEARS, THE DEPARTMENT SHALL ASSE SS AN ADMINISTRATIVE PENALTY O N THE 3 BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION. 4 (2) EACH YEAR THAT THE BE VERAGE CONTAINER STE WARDSHIP 5 ORGANIZATION DOES NO T MEET THE REDEMPTIO N RATES ESTABLISHED IN § 9–1740 6 OF THIS SUBTITLE IS A SEPARATE VIOLATION UNDER THIS SUBS ECTION. 7 (3) AN ADMINISTRATIVE PEN ALTY ASSESSED UNDER THIS 8 SUBSECTION SHALL EQU AL THE TOTAL NUMBER OF REDEEMABLE BEVERA GE 9 CONTAINERS NEEDED TO BE REDEEMED TO MEET THE REDEMPTION RATES 10 ESTABLISHED IN § 9–1740 OF THIS SUBTITLE, MINUS THE NUMBER OF REDEEMAB LE 11 BEVERAGE CONTAINERS ACTUALLY REDEEMED , MULTIPLIED BY THE RE FUND 12 VALUE IN EFFECT AT T HE TIME THE VIOLATIO N OCCURRED . 13 (E) THE DEPARTMENT MAY ALTER THE ADMINISTRATIVE P ENALTIES 14 ASSESSED UNDER SUBSE CTIONS (C) AND (D) OF THIS SECTION AS N ECESSARY TO 15 ENSURE THAT THE PENALTY AMO UNTS ASSESSED EXCEED THE COSTS OF 16 COMPLYING WITH THIS PART. 17 (F) PENALTIES COLLECTED U NDER THIS SECTION SH ALL BE: 18 (1) TRANSFERRED TO THE STATE RECYCLING TRUST FUND UNDER § 19 9–1707(F) OF THIS SUBTITLE; AND 20 (2) USED ONLY TO COVER T HE DEPARTMENT ’S COSTS OF PLANNING, 21 IMPLEMENTING , ADMINISTERING , MONITORING , ENFORCING, AND EVALUATING 22 THE PROGRAM. 23 9–1755. 24 ANY PERSON PARTICIPAT ING IN A BEVERAGE CO NTAINER STEWARDSHIP 25 PLAN IN ACCORDANCE W ITH THIS SUBTITLE IS IMMUNE FROM LIABILIT Y UNDER 26 STATE LAWS CONCERNING ANTITRUST AND RESTRA INT OF TRADE FOR 27 COOPERATIVE ACTIVITI ES ASSOCIATED WITH T HE COLLECTION , TRANSPORT, 28 PROCESSING, RECYCLING, REUSE, AND MANAGEMENT OF EM PTY REDEEMABLE 29 BEVERAGE CONTAINERS . 30 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 31 1, 2025. 32