EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. Underlining indicates amendments to bill. Strike out indicates matter stricken from the bill by amendment or deleted from the law by amendment. Italics indicate opposite chamber/conference committee amendments. *sb0901* SENATE BILL 901 M3 (5lr2545) ENROLLED BILL — Education, Energy, and the Environment/Environment and Transportation and Economic Matters — Introduced by Senators Augustine and Love, Love, Brooks, Hester, Kagan, and M. Washington Read and Examined by Proofreaders: _______________________________________________ Proofreader. _______________________________________________ Proofreader. Sealed with the Great Seal and presented to the Governor, for his approval this _______ day of _______________ at ________________________ o’clock, ________M. ______________________________________________ President. CHAPTER ______ AN ACT concerning 1 Environment – Packaging Materials and Paper Products – Producer 2 Responsibility Plans 3 FOR the purpose of requiring certain producers of packaging covered materials, 4 individually or as part of a producer responsibility organization, to submit a certain 5 packaging covered materials producer responsibility plan to the Department of the 6 Environment for review and approval on or before a certain date and in accordance 7 with certain requirements or develop an alternative collection program; prohibiting, 8 on or after a certain date, a producer of certain packaging covered materials from 9 selling, offering for sale, distributing, or importing certain packaging covered 10 materials unless the producer, individually or as part of a producer responsibility 11 organization, has an approved producer responsibility plan on file with the 12 Department; requiring a producer responsibility organization to pay certain costs to 13 2 SENATE BILL 901 the Department; requiring a producer responsibility plan to be implemented within 1 a certain amount of time after the Department approves the producer responsibility 2 plan; altering the responsibilities of the producer responsibility advisory council; 3 authorizing a local government service provider to request reimbursement from a 4 certain producer that has an approved producer responsibility plan on file with the 5 Department for certain costs in a certain manner; requiring a certain service 6 provider to register with the Department for a certain purpose and in a certain 7 manner; requiring the Department to develop a list of certain packaging materials 8 on or before a certain date, in a certain manner, and subject to certain requirements; 9 authorizing a certain producer to request that the Department exempt certain 10 materials from a certain list; requiring the Office of Recycling in the Department to 11 hire an independent contractor to conduct certain statewide recycling needs 12 assessments; requiring the Department to coordinate the implementation of certain 13 programs under certain circumstances and in a certain manner; and generally 14 relating to producer responsibility for packaging materials and paper products. 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), 9–1707(f), 9–2501, and 9–2503 Section 9–1702(d) and 9–1707(f); 23 and 9–2501 through 9–2503 to be under the amended subtitle “Subtitle 25. 24 Producer Responsibility for Packaging and Paper Products” 25 Annotated Code of Maryland 26 (2014 Replacement Volume and 2024 Supplement) 27 BY adding to 28 Article – Environment 29 Section 9–1702.2, 9–2502, and 9–2504 through 9–2510 9–2512 30 Annotated Code of Maryland 31 (2014 Replacement Volume and 2024 Supplement) 32 BY repealing 33 Article – Environment 34 Section 9–2502 35 Annotated Code of Maryland 36 (2014 Replacement Volume and 2024 Supplement) 37 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 38 That the Laws of Maryland read as follows: 39 Article – Environment 40 SENATE BILL 901 3 9–1702. 1 (a) There is an Office of Recycling created within the Department. 2 (d) The Office shall: 3 (1) Assist the counties in developing an acceptable recycling plan required 4 under § 9–1703 of this subtitle and § 9–505 of this title, including technical assistance to 5 the local governments; 6 (2) Coordinate the efforts of the State to facilitate the implementation of 7 the recycling goals at the county level; 8 (3) Review all recycling plans submitted as part of a county plan as 9 required under § 9–505 of this title and advise the Secretary on the adequacy of the 10 recycling plan; 11 (4) Administer the Statewide Electronics Recycling Program under Part IV 12 of this subtitle; 13 (5) Promote the development of markets for recycled materials and 14 recycled products in the State in accordance with § 9–1702.1 of this subtitle; [and] 15 (6) Review and approve plans and annual reports, including the paint 16 stewardship assessment, submitted in accordance with a Paint Stewardship Program 17 established under Part V of this subtitle; AND 18 (7) REVIEW AND APPROVE , IN CONSULTATION WITH THE PRODUCER 19 RESPONSIBILITY ADVIS ORY COUNCIL ESTABLIS HED UNDER § 9–2503 OF THIS TITLE, 20 PRODUCER RESPONSIBIL ITY PLANS AND ANNUAL REPORTS SUBMITTED IN 21 ACCORDANCE WITH SUBTITLE 25 OF THIS TITLE. 22 9–1702.2. 23 (A) IN THIS SECTION, “ADVISORY COUNCIL ” AND “PRODUCER” HAVE THE 24 MEANINGS SECTION, “ADVISORY COUNCIL ” HAS THE MEANING STATED IN § 9–2501 25 OF THIS TITLE. 26 (B) (1) ON OR BEFORE JULY 30, 2034, AND AT LEAST ONCE EV ERY 10 27 YEARS THEREAFTER , THE OFFICE SHALL HIRE AN INDEPENDENT CONSULTA NT TO 28 CONDUCT A STATEWIDE RECYCLING NEEDS ASSE SSMENT TO INFORM THE 29 PROVISION OF RECYCLI NG SERVICES IN THE STATE INCLUDING IMPLE MENTATION 30 OF SUBTITLE 25 OF THIS TITLE. 31 (2) THE NEEDS ASSESSMENT SHALL INCLUDE : 32 4 SENATE BILL 901 (I) AN ANALYSIS OF THE STATE’S CURRENT SOLID WAST E 1 STREAMS, INCLUDING: 2 1. SOLID WASTE GENERATED IN THE STATE BY LOCAL 3 JURISDICTION, TYPE, AND MATERIAL ; 4 2. DISPOSAL METHO DS BY MATERIAL TYPE AND 5 AMOUNT; AND 6 3. ASSOCIATED COSTS AND REVENUES FOR SOLID 7 WASTE DISPOSAL PROGR AMS; 8 (II) AN ANALYSIS OF THE STATE’S CURRENT RECYCLING 9 STREAMS, INCLUDING: 10 1. RECYCLABLE MATERIALS PROCESSED BY LOCAL 11 JURISDICTION, TYPE, AND AMOUNT ; 12 2. PROCESSING METHODS BY MATERIAL TYPE AND 13 AMOUNT; 14 3. ASSOCIATED COSTS AND REVENUES FOR RECYCLI NG 15 PROGRAMS, COLLECTION, AND TIPPING FEES ; AND 16 4. AN ESTIMATE OF THE AM OUNT OF RECYCLABLE 17 MATERIALS THAT ARE N OT CURRENTLY BEING R ECYCLED; AND 18 5. AN ESTIMATE OF THE AM OUNT OF REUSABLE 19 PACKAGING THAT IS NO T CURRENTLY BEING RE USED; 20 (III) AN EVALUATION OF THE CURRENT INFRASTRUCTU RE AND 21 CAPACITY REL ATED TO, NEED FOR, AND ASSOCIATED COSTS OF: 22 1. RECYCLING ACCESS AND AVAILABILITY; 23 2. COLLECTING AND HAULIN G RECYCLABLE , 24 REUSABLE, OR COMPOSTABLE MATER IALS IN THE STATE; 25 3. PROCESSING RECYCLABLE OR COMPOSTABLE 26 MATERIALS IN THE STATE; 27 SENATE BILL 901 5 4. TAKING ADVANTAGE OF F AVORABLE MARKET 1 CONDITIONS OR OTHER OPPORTUNITIES FOR IN CREASING RECYCLING , REUSE, OR 2 ORGANICS RECYCLING I N THE STATE; 3 5. IN COORDINATION WITH LOCAL GOVERNMENTS , 4 CONSUMER EDUCATION R EGARDING RECYCLING , ORGANICS RECYCLING , REUSABLE 5 PACKAGING, AND CONTAMINATION RE DUCTION; 6 6. REUSE INFRASTRUCTURE ; AND 7 7. ORGANICS RECYCLING IN FRASTRUCTURE ; 8 (IV) AN EVALUATION OF COMM INGLED RECYCLING PRO CESSING 9 FACILITY WORKER COND ITIONS, WAGES, AND BENEFITS; 10 (V) AN EVALUATION OF OPPORTUNITIES IN THE RECYCLING 11 AND REUSE SYSTEM FOR WOMEN AND MINORITY INDIVIDUALS ; 12 (VI) AN EVALUATION OF LOCA L GOVERNMENT REQUIRE MENTS 13 RELATED TO MULTIFAMI LY AND COMMERCIAL RE CYCLING SERVICES AND THEIR 14 IMPLEMENTATION ; 15 (VII) THE SUFFICIENCY OF RE CYCLING AND REUSE EDUCATION 16 PROGRAMS RELATIVE TO DESIRED EQUITY OUTCO MES; 17 (VIII) AN EVALUATION OF THE ECONOMIC OPPORTUNITI ES IN THE 18 STATE’S RECYCLING AND REUSE SYSTEM, INCLUDING: 19 1. STATE AND LOCAL REVEN UE THAT MAY BE 20 CONSIDERED LOST BECA USE RECYCLABLE MATERIALS ARE NOT BEING RECYCLED ; 21 2. CURRENT JOBS ASSOCIAT ED WITH THE SOLID WA STE, 22 REUSE, AND RECYCLING INDUST RIES; 23 3. OPPORTUNITIES TO INCR EASE EMPLOYMENT IN T HE 24 RECYCLING INDUSTRY B Y MATERIAL TYPE ; 25 4. BUSINESS OPPORTUNITIE S ASSOCIATED WITH 26 RECYCLING OR REUSABLE PACKAGIN G; 27 5. BARRIERS TO INCREASIN G THE USE OF RECYCLA BLE 28 MATERIALS AS FEEDSTO CK FOR PRINCIPAL PRO CESSORS AND MANUFACT URERS 29 AND MEANS OF ELIMINA TING THOSE BARRIERS ; AND 30 6 SENATE BILL 901 6. RECOMMENDATI ONS FOR INCENTIVES T O STIMULATE 1 JOB GROWTH AND BUSIN ESS OPPORTUNITIES IN THE STATE’S RECYCLING 2 INDUSTRY AND REUSABLE PACKAGI NG INDUSTRIES; 3 (IX) RECOMMENDATIONS FOR I MPROVING EQUITY AND 4 EQUITABLE OUTCOMES F OR UNDERSERVED POPUL ATIONS IN THE STATE’S 5 RECYCLING SYSTEM; 6 (X) AN ANALYSIS OF THE CO STS AND BENEFITS OF 7 IMPLEMENTING AN EXTE NDED PRODUCER RESPON SIBILITY PROGRAM , INCLUDING 8 TO: 9 1. LOCAL GOVERNMENTS ; 10 2. WASTE PRODUCERS ; 11 3. RESIDENTS; AND 12 4. WASTE MANAGEMENT COMP ANIES; 13 (XI) AN ANALYSIS OF THE PO TENTIAL ENVIRONMENTA L IMPACT 14 OF AN EXTENDED PRODU CER RESPONSIBILITY P ROGRAM, INCLUDING THROUGH : 15 1. INCREASED RECYCLING ; 16 2. RESOURCE RECOVERY ; 17 3. WASTE REDUCTION ; AND 18 4. REDUCED ENVIRONMENTAL DAMAGE; AND 19 (XII) RECOMMENDATIONS ON TH E BEST PRACTICES TO FOLLOW 20 FROM SUCCESSFUL EXTE NDED PRODUCER RESPON SIBILITY PROGRAMS IN OTHER 21 STATES AND COUNTRIES . 22 (C) THE OFFICE SHALL REPORT O N THE RESULTS OF EAC H ASSESSMENT 23 CONDUCTED UNDER THIS SECTION TO THE GOVERNOR AND , IN ACCORDANCE WITH 24 § 2–1257 OF THE STATE GOVERNMENT ARTICLE, THE GENERAL ASSEMBLY. 25 (D) IN CONDUCTING AN ASSE SSMENT REQUIRED UNDE R THIS SECTION, THE 26 INDEPENDENT CONSULTA NT SHALL CONSULT WITH P RODUCER RESPONSIBILI TY 27 ORGANIZATIONS , THE PRODUCER RESPONS IBILITY ADV ISORY COUNCIL 28 ESTABLISHED UNDER § 9–2503 OF THIS TITLE , APPROPRIATE LOCAL 29 SENATE BILL 901 7 GOVERNMENTAL ENTITIE S, AND REGIONAL SOLID W ASTE ORGANIZATIONS I N THE 1 STATE. 2 (E) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE THE 3 OFFICE SHALL ESTABLIS H AND COLLECT A FEE TO BE PAID BY PRODUC ER 4 RESPONSIBILITY ORGAN IZATIONS TO COVER TH E COSTS ASSOCIATED W ITH 5 CONDUCTING AN: 6 (1) THE ASSESSMENT REQUIR ED UNDER CHAPTER 465 OF THE ACTS 7 OF THE GENERAL ASSEMBLY OF 2023; AND 8 (2) EACH SUBSEQUENT ASSESSMENT REQUIRED UNDER THIS 9 SECTION. 10 (2) BEFORE ESTABLISHING A ND COLLECTING A FEE UNDER 11 PARAGRAPH (1) OF THIS SUBSECTION , THE OFFICE SHALL: 12 (I) PUBLISH A PROPOSED FE E ON ITS WEBSITE; AND 13 (II) ALLOW 90 CALENDAR DAYS FOR PU BLIC COMME NT. 14 9–1707. 15 (f) (1) There is a State Recycling Trust Fund. 16 (2) The Fund shall consist of: 17 (i) The newsprint recycling incentive fee; 18 (ii) The telephone directory recycling incentive fee collected under § 19 9–1709 of this subtitle; 20 (iii) The covered electronic device manufacturer registration fee 21 collected under § 9–1728 of this subtitle; 22 (iv) The Paint Stewardship Program plan and annual report review 23 fees collected under § 9–1733(b) and (h) of this subtitle; 24 (V) ANY FEES COLLECTED FR OM PRODUCER RESPONSI BILITY 25 ORGANIZATIONS UNDER § 9–1702.2 OF THIS SUBTITLE OR SUBTITLE 25 OF THIS 26 TITLE; 27 [(v)] (VI) All fines and penalties collected under this subtitle AND § 28 9–2510 § 9–2512 OF THIS TITLE; 29 8 SENATE BILL 901 [(vi)] (VII) Money appropriated in the State budget to the Fund; and 1 [(vii)] (VIII) Any other money from any other source accepted for the 2 benefit of the Fund. 3 (3) The Secretary shall administer the Fund. 4 (4) The Treasurer shall hold the Fund separately and the Comptroller shall 5 account for the Fund. 6 (5) At the end of each fiscal year, any unspent or unencumbered balance in 7 the Fund that exceeds $2,000,000 shall revert to the General Fund of the State in 8 accordance with § 7–302 of the State Finance and Procurement Article. 9 (6) In accordance with the State budget, the Fund shall be used only: 10 (i) To provide grants to the counties to be used by the counties to 11 develop and implement local recycling plans; 12 (ii) To provide grants to counties that have addressed methods for 13 the separate collection and recycling of covered electronic devices in accordance with § 14 9–1703(c)(1) of this subtitle; 15 (iii) To provide grants to municipalities to be used by the 16 municipalities to implement local covered electronic device recycling programs; 17 (iv) To cover the costs of the Paint Stewardship Program plan review 18 under § 9–1733(b) of this subtitle, the annual report review under § 9–1733(h) of this 19 subtitle, and associated costs for Program compliance oversight; [and] 20 (V) IN ACCORDANCE WITH PA RAGRAPH (7) OF THIS 21 SUBSECTION, TO COVER THE COSTS O F A STATEWIDE RECYCL ING NEEDS 22 ASSESSMENT CONDUCTED UNDER § 9–1702.2 OF THIS SUBTITLE; 23 (VI) IN ACCORDANCE WITH PA RAGRAPH (7) OF THIS 24 SUBSECTION, TO COVER THE COSTS O F PRODUCER RESPONSIBILITY PLAN REVIEW, 25 OVERSIGHT, AND ENFORCEMENT UNDE R SUBTITLE 25 OF THIS TITLE; AND 26 [(v)] (VII) To carry out the purposes of the land management 27 administration. 28 (7) (I) THERE IS A SEPARATE A CCOUNT WITHIN THE FUND. 29 (II) THE SEPARATE ACCOUNT SHALL CONSIS T OF: 30 SENATE BILL 901 9 1. ANY FEES COLLECTED FR OM PRODUCER 1 RESPONSIBILITY ORGAN IZATIONS UNDER § 9–1702.2 OF THIS SUBTITLE OR 2 SUBTITLE 25 OF THIS TITLE; AND 3 2. ALL FINES AND PENALTI ES COLLECTED UNDER § 4 9–2510 § 9–2512 OF THIS TITLE. 5 (III) THE SEPARATE ACCOUNT SHALL BE USED ONLY F OR THE 6 COSTS OF STATEWIDE R ECYCLING NEEDS ASSES SMENTS CONDUCTED UND ER § 7 9–1702.2 OF THIS SUBTITLE AND PRODUCER RESPONSIBIL ITY PLAN REVIEW , 8 OVERSIGHT, AND ENFORCEMENT UNDE R SUBTITLE 25 OF THIS TITLE. 9 [(7)] (8) (i) The Treasurer shall invest the money in the Fund in the 10 same manner as other State money may be invested. 11 (ii) Any investment earnings of the Fund shall be credited to the 12 General Fund of the State. 13 Subtitle 25. Producer Responsibility for Packaging [Materials] AND PAPER PRODUCTS. 14 9–2501. 15 (a) In this subtitle the following words have the meanings indicated. 16 (b) “Advisory council” means the producer responsibility advisory council 17 established under § 9–2503 of this subtitle. 18 (c) (1) “BEVERAGE CONTAINER” MEANS A PREPACKAGED BEVERAGE 19 CONTAINER: 20 (1) (I) MADE OF ANY MATERIAL , INCLUDING GLASS , PLASTIC, 21 METAL, OR MULTIMATERIALS ; 22 (2) (II) IN ANY FORM , INCLUDING A BOTTLE , CAN, CARTON, OR 23 POUCH; AND 24 (3) (III) THE VOLUME OF WHICH I S NOT MORE THAN 5 LITERS. 25 (2) “BEVERAGE CONTAINER ” DOES NOT INCLUDE A P REPACKAGED 26 BEVERAGE CONTAINER T HAT IS COVERED UNDER A BEVERAGE CONTAINER DEPOSIT 27 RETURN PROGRAM IN TH E STATE. 28 (D) “BRAND OWNER ” MEANS A PERSON THAT OWNS OR LICENSES A B RAND 29 OR THAT OTHERWISE HAS RIGHTS TO MARKET A PRODUCT UNDER THE BRAND, 30 WHETHER OR NOT THE B RAND’S TRADEMARK IS REGIS TERED. 31 10 SENATE BILL 901 (E) “COMPOSTING” AND “COMPOSTING FACILITY ” HAVE THE MEANINGS 1 STATED IN § 9–1701 OF THIS TITLE. 2 (F) “COVERED ENTITY ” MEANS A PERSON OR LO CATION THAT REC EIVES 3 COVERED SERVICES FOR COVERED MATERIALS IN ACCORDANCE WITH THE 4 REQUIREMENTS OF THIS SUBTITLE, INCLUDING: 5 (1) A SINGLE–FAMILY RESIDENCE ; 6 (2) A MULTIFAMILY RESIDENC E; 7 (3) A PUBLIC OR NONPUBLIC KINDERGARTEN , ELEMENTARY , OR 8 SECONDARY SCHOOL ; 9 (4) A CHILD CARE CENTER , AS DEFINED IN § 9.5–401 OF THE 10 EDUCATION ARTICLE; AND 11 (5) A PUBLIC BUILDING OWNE D OR OPERATED BY THE STATE OR A 12 LOCAL GOVERNMENT . 13 (G) (1) “COVERED MATERIALS ” MEANS PACKAGING AND PAPER 14 PRODUCTS SOLD , OFFERED FOR SALE , IMPORTED, OR DISTRIBUTED IN TH E STATE. 15 (2) “COVERED MATERIALS ” DOES NOT INCLUDE EXE MPT MATERIALS . 16 (H) “COVERED MATERIAL TYPE ” MEANS A SINGULAR AND SPECIFIC TYPE OF 17 COVERED MATERIAL , SUCH AS PAPER , PLASTIC, METAL, OR GLASS, THAT: 18 (1) CAN BE CATEGORIZED BA SED ON DISTINGUISHING CH EMICAL OR 19 PHYSICAL PROPERTIES , INCLUDING PROPERTIES THAT ALLOW THE MATER IAL TYPE 20 TO BE AGGREGATED INT O A DISCRETE COMMODI TY CATEGORY FOR PURP OSES OF 21 REUSE, RECYCLING, OR COMPOSTING ; AND 22 (2) IS BASED ON SIMILAR U SES IN THE FORM OF A PRODUCT OR 23 PACKAGE. 24 (I) (1) “COVERED SERVICES ” MEANS: 25 (I) COLLECTING, TRANSFERRING , TRANSPORTING , SORTING, 26 PROCESSING, RECOVERING , PREPARING, OR OTHERWISE MANAGIN G COVERED 27 MATERIALS FOR PURPOS ES OF WASTE REDUCTIO N, REUSE, RECYCLING, OR 28 COMPOSTING ; AND 29 SENATE BILL 901 11 (II) PUBLIC EDUCATION AND OUTREACH ACTIVITIES RELATED 1 TO THE ACTIVITIES DE SCRIBED IN SUBPARAGR APH (I) OF THIS PARAGRAPH . 2 (2) “COVERED SERVICES ” DOES NOT INCLUDE DIS POSAL OF 3 COVERED MATERIALS . 4 (J) “DE MINIMIS PRODUCER ” MEANS A PERSON THAT IN THEIR MOST 5 RECENT FISCAL YEAR : 6 (1) INTRODUCED LESS THAN 1 TON OF COVERED MATER IAL INTO THE 7 STATE; OR 8 (2) EARNED GLOBAL GROSS R EVENUES OF LESS THAN $2,000,000. 9 (K) “ENVIRONMENTAL IMPACT ” MEANS THE IMPACT OF A COVERED 10 MATERIAL ON HUMAN HE ALTH AND THE ENVIRONMENT , BEGINNING WITH THE 11 EXTRACTION AND PROCE SSING OF THE RAW MAT ERIALS THAT COMPOSE THE 12 COVERED MATERIAL THR OUGH THE MANUFACTURI NG, DISTRIBUTION, USE, 13 RECOVERY FOR REUSE , RECYCLING OR COMPOST ING, AND FINAL DISPOSAL O F THE 14 COVERED MATERIAL . 15 (L) “EXEMPT MATERIAL ” MEANS A MATERIAL , OR ANY PORTION OF A 16 MATERIAL, THAT IS: 17 (1) PACKAGING FOR INFANT FORMULA, AS DEFINED IN 21 U.S.C. § 18 321(Z); 19 (2) PACKAGING FOR MEDICAL FOOD, AS DEFINED IN 21 U.S.C. § 20 360EE(B)(3); 21 (3) PACKAGING FOR A FORTI FIED ORAL NUTRITIONAL SUPPLEME NT, 22 OR FOOD WHICH IS FOR MULATED TO BE CONSUM ED OR ADMINISTERED E NTERALLY 23 FOR INDIVIDUALS WHO ARE UNABLE TO CONSUM E NUTRITION ORALLY , USED BY 24 INDIVIDUALS WHO REQU IRE SUPPLEMENTAL OR SOLE SOURCE NUTRITIO N TO MEET 25 NUTRITIONAL OR SPECI AL DIETARY NEEDS DIRECTLY RELATED TO THE FOLLO WING 26 CONDITIONS AS DEFINE D BY THE INTERNATIONAL CLASSIFICATION OF DISEASES, 27 TENTH REVISION: 28 (I) CANCER; 29 (II) CHRONIC KIDNEY DISEAS E; 30 (III) DIABETES; 31 12 SENATE BILL 901 (IV) MALNUTRITION; OR 1 (V) FAILURE TO THRIV E; 2 (4) PACKAGING FOR A PRODU CT REGULATED AS A DR UG OR MEDICAL 3 DEVICE BY THE U.S. FOOD AND DRUG ADMINISTRATION , INCLUDING ASSOCIATED 4 COMPONENTS AND CONSU MABLE MEDICAL EQUIPM ENT; 5 (5) PACKAGING FOR MEDICAL EQUIPMENT OR A PRODU CT USED IN 6 MEDICAL SETTINGS THAT IS REGULATED BY THE U.S. FOOD AND DRUG 7 ADMINISTRATION , INCLUDING ASSOCIATED COMPONENTS AND CONSU MABLE 8 MEDICAL EQUIPMENT ; 9 (6) DRUGS, BIOLOGICAL PRODUCTS , PARASITICIDES, MEDICAL 10 DEVICES, OR IN VITRO DIAGNOST ICS THAT ARE USED TO TREAT, OR THAT ARE 11 ADMINISTERED TO , ANIMALS AND ARE REGU LATED BY: 12 (I) THE U.S. FOOD AND DRUG ADMINISTRATION UNDER THE 13 FEDERAL FOOD, DRUG, AND COSMETIC ACT; OR 14 (II) THE U.S. DEPARTMENT OF AGRICULTURE UNDER THE 15 FEDERAL VIRUS–SERUM–TOXIN ACT; 16 (7) PACKAGING FOR PRODUCT S REGULATED BY THE U.S. 17 ENVIRONMENTAL PROTECTION AGENCY UNDER THE FEDE RAL INSECTICIDE, 18 FUNGICIDE, AND RODENTICIDE ACT; 19 (8) PACKAGING USED TO CON TAIN LIQUEFIED PETRO LEUM GAS AND 20 DESIGNED TO BE REFIL LED; 21 (9) NEWSPRINT SUBJECT TO § 9–1707 OF THIS TITLE; 22 (10) A PAPER PRODUCT USED F OR A MAGAZINE ’S PRINT PUBLICATION 23 THAT HAS A CIRCULATI ON OF LESS THAN 95,000 AND THAT PRIMARILY I NCLUDES 24 CONTENT DERIVED FROM PRIMARY SOURCES RELA TED TO NEWS AND CURR ENT 25 EVENTS; 26 (11) PACKAGING USED TO CON TAIN HAZARDOUS OR FLAMMABLE 27 PRODUCTS REGULATED U NDER THE 2012 FEDERAL OCCUPATIONAL SAFETY AND 28 HEALTH ADMINISTRATION HAZARD COMMUNICATION STANDARD THAT PREVENT 29 THE PACKAGING FROM B EING WASTE REDUCED O R MADE REUSABLE , RECYCLABLE , 30 OR COMPOSTABLE , AS DETERMINED BY THE DEPARTMEN T; 31 SENATE BILL 901 13 (12) PACKAGING COLLECTED AND PROPER LY MANAGED THROUGH 1 FOR PRODUCTS SUBJECT TO THE PAINT STEWARDSHIP PROGRAM UNDER SUBTITLE 2 17, PART V OF THIS TITLE; OR 3 (13) MATERIAL THAT A PRODU CER DISTRIBUTES TO A NOTHER 4 PRODUCER THAT IS : 5 (I) SUBSEQUENTLY USED TO CONTAIN A PR ODUCT, AND THE 6 PRODUCT IS DISTRIBUT ED TO A COMMERCIAL B USINESS OR ENTITY ; AND 7 (II) NOT INTRODUCED TO A P ERSON OTHER THAN THE 8 COMMERCIAL OR BUSINE SS ENTITY THAT FIRST RECEIVED THE PRODUCT ; OR 9 (14) PACKAGING USED FOR TH E LONG–TERM PROTECTION OR 10 STORAGE OF A PRODUCT THAT HAS A LIFESPAN OF NOT LESS THAN 5 YEARS, AS 11 DETERMINED BY THE DEPARTMENT . 12 (D) (M) “Local government” means: 13 (1) A county; or 14 (2) A municipality. 15 [(d)] (E) “Organics recycling” has the meaning stated in § 9–1701 of this title. 16 (F) “ORGANICS RECYCLING FA CILITY” HAS THE MEANING STAT ED IN § 17 9–1701 OF THIS TITLE. 18 (G) “PACKAGING MATERIAL WA STE” MEANS THE PERCENTAGE OF THE 19 TOTAL WEIGHT OF PACK AGING MATERIALS SOLD OR DISTRIBUTED IN TH E STATE 20 THAT ARE NOT RECYCLED, REUSED, OR COMPOSTED . 21 [(e)] (H) (N) (1) “Packaging materials” means, regardless of recyclability, 22 any part of a package or container, including material that is used for the containment, 23 protection, handling, delivery, and presentation of a product MEANS A MATERIAL , A 24 SUBSTANCE, OR AN OBJECT THAT IS USED TO PROTECT , CONTAIN, TRANSPORT, 25 SERVE, OR FACILITATE THE DE LIVERY OF A PRODUCT THAT IS SOLD OR SUPP LIED 26 WITH THE PRODUCT TO THE CONSUMER FOR PER SONAL, NONCOMMERCIAL USE AN D 27 that is sold, offered for sale, imported, or distributed in the State. 28 (2) “Packaging materials” includes: 29 (i) Primary, secondary, and tertiary packaging intended for the 30 consumer market; 31 14 SENATE BILL 901 (ii) Service packaging designed and intended to be filled at the point 1 of sale, including: 2 1. Carry–out bags; 3 2. Bulk goods bags; and 4 3. Take–out and home delivery food service packaging; and 5 (iii) Beverage containers. 6 (3) “Packaging materials” does not include: 7 (i) Any part of a package or container that is sold or supplied in 8 connection with: 9 1. A pesticide product regulated by the Federal Insecticide, 10 Fungicide, and Rodenticide Act under 7 U.S.C. § 136 et seq. or any other applicable federal 11 law, rule, or regulation; 12 2. A federally regulated drug, medical device, biologic, 13 diagnostic, or dietary supplement including items intended for animals; or 14 3. A medical product that is required to be sterile or enclosed 15 in packaging with tamper–resistant seals to protect public health, including medical 16 products intended for animals; or 17 (ii) Liquefied petroleum gas containers that are designed to be 18 refilled. 19 (O) (1) “PAPER PRODUCTS ” MEANS PRODUCTS MADE PRIMARILY FROM 20 WOOD PULP OR OTHER C ELLULOSIC FIBERS . 21 (2) “PAPER PRODUCTS ” DOES NOT INCLUDE : 22 (I) BOUND BOOKS ; OR 23 (II) PRODUCTS THAT ARE NOT ACCEPTED BY MATERIAL S 24 RECYCLING FACILITIES OR COMPOSTING FACILI TIES BECAUSE OF THE UNSAFE OR 25 UNSANITARY NATURE OF THE PRODUCTS . 26 [(f)] (I) (P) (1) “Producer” means a person that THE FOLLOWING PERSON , AS 27 APPLICABLE, THAT IS RESPONSIBLE FOR COMPLIANCE WITH A PRODUCER 28 RESPONSIBILITY PLAN UNDER THIS SUBTITLE : 29 SENATE BILL 901 15 (i) With respect to packaging materials used to directly protect or 1 contain a product sold, offered for sale, or distributed in the State: 2 1. A. Has legal ownership of the brand of the product 3 under which the product is sold; or 4 B. Is the manufacturer of the product, if the product is sold 5 in packaging materials that lack identification of the brand; 6 2. Is the licensee of the brand or trademark under which the 7 product is sold, whether or not the trademark is registered in the State, if the product is 8 manufactured by a person other than the brand owners; or 9 3. Is the person that imports the product into the United 10 States for use in a commercial enterprise that sells, offers for sale, or distributes the item 11 in the State, if there is no person described in items 1 and 2 of this item FOR ITEMS SOLD 12 IN OR WITH PACKAGING AT A PHYSICAL RETAIL LOCATION IN THE STATE: 13 1. IF THE ITEM IS SOLD I N OR WITH PACKAGING UNDER 14 THE BRAND OF THE ITE M MANUFACTURER OR IS SOLD IN PACKAGING WI THOUT 15 BRAND IDENTIFICATION , THE PRODUCER IS THE ITEM MANUFACTURER ; 16 2. IF THERE IS NO PERSON DESCRIBED IN ITEM 1 OF 17 THIS ITEM, THE PRODUCER IS THE PERSON THAT IS LICEN SED TO MANUFACTURE 18 AND SELL OR OFFER FO R SALE TO CONSUMERS IN THE STATE AN ITEM WITH 19 PACKAGING UNDER THE BRAND OR TRADEMARK O F ANOTHER MANUFACTUR ER OR 20 PERSON; 21 3. IF THERE IS NO PERSON DESCRIBED IN ITEMS 1 AND 22 2 OF THIS ITEM, THE PRODUCER IS THE BRAND OWNER OF THE I TEM; 23 4. IF THERE IS NO PERSON DESCRIBED IN ITEMS 1 24 THROUGH 3 OF THIS ITEM WITHIN THE UNITED STATES, THE PRODUCER IS THE 25 PERSON THAT IMPORTS THE PRODUCT INTO THE UNITED STATES FOR USE IN A 26 COMMERCIAL ENTERPRIS E THAT SELLS, OFFERS FOR SALE , OR DISTRIBUTES THE 27 ITEM IN THE STATE; OR 28 5. IF THERE IS NO PERSON DESCRIBED IN ITEMS 1 29 THROUGH 4 OF THIS ITEM, THE PRODUCER IS THE PERSON THAT FIRST DI STRIBUTES 30 THE ITEM IN OR INTO THE STATE; and 31 (ii) With respect to packaging materials used to ship a product to a 32 consumer in the State, is the person that packages and ships the product FOR ITEMS SOLD 33 OR DISTRIBUTED IN PA CKAGING IN OR INTO T HE STATE VIA E–COMMERCE , REMOTE 34 SALE, OR ONLINE DISTRIBUTIO N: 35 16 SENATE BILL 901 1. FOR PACKAGING USED DI RECTLY TO PROTECT OR 1 CONTAIN THE ITEM , THE PRODUCER OF THE PACKAGING IS A PRODU CER UNDER 2 ITEM (I) OF THIS PARAGRAPH ; AND 3 2. FOR PACKAGING USED TO SHIP THE ITEM TO A 4 CONSUMER , THE PRODUCER OF THE PACKAGING IS THE PERSON THAT PACKAGES 5 THE ITEM TO BE SHIPP ED TO THE CONSUMER ; 6 (III) FOR PACKAGING THAT IS NOT DESCRIBED IN ITE MS (I) AND 7 (II) OF THIS PARAGRAPH , THE PRODUCER OF THE PACKAGING IS THE PER SON THAT 8 FIRST DISTRIBUTES TH E ITEM IN OR INTO TH E STATE; 9 (IV) FOR PAPER PRODUCTS TH AT ARE MAGAZINES , CATALOGS, 10 TELEPHONE DIRECTORIE S, OR SIMILAR PUBLICATI ONS, THE PRODUCER IS THE 11 PUBLISHER; 12 (V) FOR A PAPER PRODUCT N OT DESCRIBED IN ITEM (IV) OF 13 THIS PARAGRAPH : 14 1. IF THE PAPER PRODUCT IS SOLD UND ER THE 15 MANUFACTURER ’S OWN BRAND , THE PRODUCER IS THE PERSON THAT 16 MANUFACTURES THE PAP ER PRODUCT; 17 2. IF THERE IS NO PERSON DESCRIBED IN ITEM 1 OF 18 THIS ITEM, THE PRODUCER IS THE PERSON THAT IS THE O WNER OR LICENSEE OF A 19 BRAND OR TRADEMARK U NDER WHICH T HE PAPER PRODUCT IS USED IN A 20 COMMERCIAL ENTERPRIS E, SOLD, OFFERED FOR SALE , OR DISTRIBUTED IN TH E 21 STATE, WHETHER OR NOT THE T RADEMARK IS REGISTER ED IN THE STATE; 22 3. IF THERE IS NO PERSON DESCRIBED IN ITEMS 1 AND 23 2 OF THIS ITEM, THE PRODUCER IS THE BRAND OWNER OF THE P APER PRODUCT ; OR 24 4. IF THERE IS NO PERSON DESCRIBED IN ITEMS 1 25 THROUGH 3 OF THIS ITEM WITHIN THE UNITED STATES, THE PRODUCER IS THE 26 PERSON THAT IMPORTS THE PAPER PRODUCT IN TO THE UNITED STATES FOR USE 27 IN A COMMERCIAL ENTE RPRISE THAT SELLS, OFFERS FOR SALE , OR DISTRIBUTES 28 THE PAPER PRODUCT IN THE STATE; AND 29 (IV) FOR A PRODUCER IDENTI FIED IN ITEMS (I) THROUGH (III) 30 OF THIS PARAGRAPH TH AT IS A BUSINESS OPE RATED WHOLLY OR IN P ART AS A 31 FRANCHISE, THE PRODUCER OF THE PACKAGING IS THE FRANCHISOR IF THE 32 FRANCHISOR HAS FRANC HISEES THAT HAVE A C OMMERCIAL PRESENCE I N THE 33 STATE. 34 SENATE BILL 901 17 (2) “Producer” does not include: 1 (i) A local government STATE, FEDERAL OR STATE AGE NCY, A 2 POLITICAL SUBDIVISIO N, OR OTHER GOVERNMENTA L UNIT; 3 (ii) A nonprofit REGISTERED 501(C)(3) charitable organization OR 4 501(C)(4) SOCIAL WELFARE ORGAN IZATION; 5 (iii) An entity that manufactures a drug or device authorized for sale 6 by the U.S. Food and Drug Administration under the Federal Food, Drug, and Cosmetic 7 Act A DE MINIMIS PRODUCER ; 8 (iv) An entity that generated less than [$5,000,000] $1,000,000 in 9 gross revenue during the immediately preceding calendar year A MILL THAT USES ANY 10 VIRGIN WOOD FIBER IN THE PRODUCTS IT PROD UCES; 11 (v) An entity that sold, offered for sale, or distributed for sale in the 12 State during the immediately preceding calendar year less than 1 metric ton of packaging 13 materials A PAPER MILL THAT PROD UCES CONTAINER BOARD DERIVED FROM 100% 14 POSTCONSUMER RECYCLE D CONTENT AND NONPOS TCONSUM ER RECYCLED 15 CONTENT; 16 (vi) 1. An entity that owns or operates a restaurant, food cart, or 17 similar establishment that: 18 A. 1. Is headquartered in the State; and 19 B. 2. Primarily sells to members of the public food that is 20 generally intended to be consumed immediately and without the need for further 21 preparation, either on or off the premises; and 22 2. 3. Is not a producer of food serviceware; 23 (vii) An entity that owns or operates a single retail sales 24 establishment that: 25 1. Has no online sales; and 26 2. Is not supplied or operated as part of a franchise or a 27 chain; or 28 (viii) 1. An entity that is licensed under Title 2 of the Alcoholic 29 Beverages and Cannabis Article; and 30 18 SENATE BILL 901 2. Generated less than $10,000,000 in gross revenue during 1 the immediately preceding calendar year; or 2 (ix) An entity A PRODUCER UNDER PARAG RAPH (1) OF THIS 3 SUBSECTION that has executed an agreement with another entity, under which the other 4 entity has agreed to assume responsibility BY WRITTEN CERTIFIC ATION under a producer 5 responsibility program for any packaging materials attributable to the first entity. 6 [(g)] (J) (Q) “Producer responsibility organization” means a nonprofit organization 7 that is: 8 (1) Exempt from taxation under § 501(c)(3) of the Internal Revenue Code; 9 and 10 (2) Created by a group of producers to [represent the interests of producers 11 under] IMPLEMENT A PRODUCER RESPONSIBILITY PLAN IN ACCORDANCE WITH this 12 subtitle. 13 (K) (R) “PRODUCER RESPONSIBILI TY PLAN” MEANS A PACKAGING 14 COVERED MATERIALS PRODUCER R ESPONSIBILITY PLAN S UBMITTED TO THE 15 DEPARTMENT BY A PRODUCER OR PRODUCER RESPONSIBILITY ORGAN IZATION IN 16 ACCORDANCE WITH § 9–2505 OF THIS SUBTITLE. 17 (S) (1) “RECYCLING” MEANS THE PROCESS OF COLLECTING, SORTING, 18 CLEANSING, TREATING, AND CONSTITUTING MATERIA LS THAT WOULD OTHERW ISE 19 BE DISPOSED OF AND R ETURNING THEM TO OR MAINTAINING THEM WIT H THE 20 ECONOMIC MAINSTREAM IN THE FORM OF RECOV ERED MATERIAL FOR NE W, 21 REUSED, OR RECONSTITUTED PRO DUCTS THAT MEET THE QUALITY STANDARDS 22 NECESSARY TO BE U SED IN THE MARKETPLA CE. 23 (2) “RECYCLING” DOES NOT INCLUDE : 24 (I) LANDFILLING; 25 (II) COMBUSTION; 26 (III) INCINERATION ; 27 (IV) ENERGY GENERATION ; 28 (V) FUEL PRODUCTION ; OR 29 (VI) ALTERNATIVE DAILY COV ER OR OTHER FORMS OF USE OR 30 DISPOSAL WITHIN THE FOOTPRINT OF A LANDF ILL. 31 SENATE BILL 901 19 (T) “RECYCLED COVERED MATE RIAL” MEANS COVERED MATERI AL THAT IS 1 SENT TO A RESPONSIBL E END MARKET . 2 (U) “RECYCLING RATE ” MEANS THE AMOUNT OF RECYCLABLE COVERED 3 MATERIAL, IN AGGREGATE OR BY I NDIVIDUAL COVERED MA TERIAL TYPE, RECYCLED 4 IN A CALENDAR YEAR D IVIDED BY THE TOTAL AMOUNT OF RECYCLABLE COVERED 5 MATERIALS SOLD OR DI STRIBUTED INTO THE STATE BY THE RELEVANT UNIT OF 6 MEASUREMENT . 7 (V) “REFILL” MEANS THE CONTINUE D USE OF A COVERED M ATERIAL BY A 8 CONSUMER THROUGH A S YSTEM THAT IS: 9 (1) INTENTIONALLY DESIGNE D AND MARKETED FOR R EPEATED 10 FILLING OF A COVERED MATERIAL TO REDUCE D EMAND FOR NEW PRODUC TION OF 11 THE COVERED MATERIAL ; 12 (2) SUPPORTED BY ADEQUATE LOGISTICS AND INFRASTRUCTURE TO 13 PROVIDE CONVENIENT A CCESS FOR CONSUMERS ; AND 14 (3) COMPLIANT WITH APPLIC ABLE FEDERAL , STATE, AND LOCAL 15 STATUTES, RULES, ORDINANCES , AND OTHER LAWS GOVER NING HEALTH AND 16 SAFETY. 17 (W) “RESPONSIBLE END MARKE T” MEANS A MATERIAL MAR KET IN WHICH 18 THE RECYCLING AND RE COVERY OF MATERIALS OR THE DISPOSAL OF 19 CONTAMINANTS IS COND UCTED IN A WAY THAT : 20 (1) BENEFITS THE ENVIRONM ENT; AND 21 (2) MINIMIZES RISKS TO PU BLIC HEALTH AND WORK ER HEALTH AND 22 SAFETY. 23 (X) “RETURN RATE ” MEANS THE AMOUNT OF REUSABLE COVERED 24 MATERIAL, IN AGGREGATE OR BY I NDIVIDUAL COVERED MA TERIALS TYPE , 25 COLLECTED FOR REUSE BY A PRODUCER OR SER VICE PROVIDER IN A C ALENDAR 26 YEAR, DIVIDED BY THE TOTAL AMOUNT OF REUSABLE C OVERED MATERIALS SOL D 27 OR DISTRIBUTED INTO THE STATE BY THE RELEVANT UNIT OF MEAS UREMENT. 28 (Y) “REUSABLE” MEANS BEING CAPABLE OF REUSE. 29 (Z) “REUSE” MEANS THE RETURN OF A COVERED MATERIAL T O THE 30 MARKETPLACE AND THE CONTINUED USE OF THE COVERED MATERIAL BY A 31 PRODUCER OR SERVICE PROVIDER WHEN THE CO VERED MATERIAL IS : 32 20 SENATE BILL 901 (1) INTENTIONALLY DESIGNE D AND MARKETED TO BE USED 1 MULTIPLE TIMES FOR I TS ORIGINAL INTENDED PURPOSE WITHOUT A CH ANGE IN 2 FORM; 3 (2) DESIGNED FOR DURABILI TY AND MAINTENANCE T O EXTEND ITS 4 USEFUL LIFE AND REDU CE DEMAND FOR NEW PR ODUCTION OF THE COVE RED 5 MATERIAL; 6 (3) SUPPORTED BY ADEQUATE LOGISTICS AND INFRAS TRUCTURE AT 7 A RETAIL LOCATION , BY A SERVICE PROVIDE R, OR ON BEHALF OF OR B Y A 8 PRODUCER, THAT PROVIDES CONVEN IENT ACCESS FOR CONS UMERS; AND 9 (4) COMPLIANT WITH APPLIC ABLE FEDERAL , STATE, AND LOCAL 10 STATUTES, RULES, ORDINANCES , AND OTHER LAWS GOVER NING HEALTH AND 11 SAFETY. 12 (AA) “REUSE RATE” MEANS THE SHARE OF U NITS OF A REUSABLE C OVERED 13 MATERIAL SOLD OR DIS TRIBUTED INTO THE STATE IN A CALENDAR Y EAR THAT ARE 14 DEMONSTRATED AND DEE MED REUSABLE IN ACCO RDANCE WITH AN APPROVED 15 PRODUCER RESPONSIBIL ITY PLAN. 16 (BB) (1) “SERVICE PROVIDER ” MEANS AN ENTITY THAT PROVIDES 17 COVERED SERVICES FOR COVERED MATERIALS . 18 (2) “SERVICE PROVIDER ” INCLUDES A LOCAL GOV ERNMENT THAT 19 PROVIDES, CONTRACTS FOR , OR OTHERWISE ARRANGE S WITH ANOTHER PARTY TO 20 PROVIDE COVERED SERV ICES FOR COVERED MAT ERIALS WITHIN ITS JU RISDICTION 21 REGARDLESS OF WHETHE R THE LOCAL GOVERNME NT PROVIDED , CONTRACTED 22 FOR, OR OTHERWISE ARRANGE D FOR SIMILAR SERVIC ES BEFORE THE APPROV AL OF 23 THE APPLICABLE PRODU CER RESPONSIBILITY PLAN . 24 [9–2502. 25 (A) On or before October 1, 2023, the Department shall approve a single producer 26 responsibility organization to represent the interests of producers under this subtitle.] 27 9–2502. 28 (B) IT IS THE INTENT OF T HE GENERAL ASSEMBLY THAT THIS SU BTITLE 29 PROVIDE A FRAMEWORK FOR: 30 (1) MINIMIZING THE ENVIRO NMENTAL AND HUMAN HE ALTH IMPACTS 31 OF PACKAGING , INCLUDING BY: 32 SENATE BILL 901 21 (I) REDUCING THE AMOUNT O F PACKAGING , ESPECIALLY 1 PLASTIC PACKAGING , SOLD IN THE STATE; 2 (II) REDUCING PACKA GING WASTE; 3 (III) REDESIGNING PACKAGING TO BE RECYCLABLE , 4 COMPOSTABLE , AND REUSABLE ; AND 5 (IV) REDUCING THE TOXICITY OF PACKAGING ; 6 (2) CONSERVING RESOURCES BY INCREASING THE RE CYCLING 7 RATES AND RECYCLED C ONTENT OF COVERED PR ODUCTS; 8 (3) MODERNIZING AND IMPRO VING WASTE AND RECYC LING SYSTEMS 9 IN THE STATE, INCLUDING BY: 10 (I) FACILITATING: 11 (I) THE FACILITATING THE IMPROVEMENT OF REUSE , 12 ORGANICS RECYCLING COMPOSTING , AND RECYCLING ; 13 (II) THE IMPROVEMENT OF RE CYCLING MARKETS ; 14 (III) THE REDUCTION OF WAST E STIMULATING RESPONSIB LE 15 END MARKETS FOR COVE RED MATERIALS ; AND 16 (IV) (III) AN INCREASE IN RECYCL ING RATES IMPROVING 17 ACCESS TO AND THE EF FICIENCY OF RECYCLIN G, COMPOSTING , AND REUSE 18 INFRASTRUCTURE , WITH SPECIAL EMPHASI S ON UNDERSERVED COMMUNITIE S; AND 19 (2) (4) REIMBURSING LOCAL GOV ERNMENTS MAKING PRODUCERS 20 FINANCIALLY RESPONSI BLE FOR INVESTING IN THE NEEDED INFRASTRU CTURE AND 21 REIMBURSING LOCAL GO VERNMENTS AND OTHER SERVICE PROVIDERS FOR COSTS 22 ASSOCIATED WITH TRAN SPORTING, COLLECTING, AND PROCESSING PACKAGING 23 COVERED MATERIALS. 24 9–2503. 25 (a) There is a producer responsibility advisory council. 26 (b) The purpose of the advisory council is to provide advice and make 27 recommendations regarding establishing and implementing a producer responsibility 28 program in the State for packaging COVERED materials, INCLUDING ADVICE ON 29 DRAFTING, AMENDING, AND IMPLEMENTI NG PRODUCER RESPONSI BILITY PLANS. 30 22 SENATE BILL 901 (c) (1) The advisory council shall consist of [up to 21 members,] MEMBERS 1 appointed by the Secretary, representing a broad range of interested stakeholders, 2 including: 3 (i) Representatives from the following industries or entities in the 4 State: 5 1. Local government agencies responsible for recycling 6 programs; 7 2. Recyclables and compostable materials collectors from 8 both the public and private sectors; 9 3. Recycling processors from both the public and private 10 sectors; 11 4. Organics recycling processors; 12 5. Producers from the consumer goods sector; 13 6. Retail and small businesses; and 14 7. Material–oriented trade groups; 15 (ii) A representative from the producer responsibility organization 16 approved by the Department under [§ 9–2502] § 9–2505(A) of this subtitle; 17 (iii) Representatives of at least two nonprofit organizations in the 18 State with missions related to reducing waste; 19 (iv) (III) At least one representative of an environmental advocacy 20 organization; 21 (v) (IV) At least one representative of an advocacy organization 22 that advocates on behalf of overburdened or underserved communities, as defined in § 23 1–701 of this article; and 24 (vi) (V) At least two members of the public who reside in the State; 25 AND 26 (VI) THE FOLLOWING NONVOTI NG MEMBERS , WHO MAY NOT 27 SERVE AS COCHAIRS OF THE ADVISORY COUNCIL : 28 1. A REPRESENTATIVE OF TH E PRODUCER 29 RESPONSIBILITY ORGAN IZATION APPROVED BY THE DEPARTMENT UNDER § 30 9–2502(A) OF THIS SUBTITLE; AND 31 SENATE BILL 901 23 2. THE DIRECTOR OF THE DEPARTMENT ’S LAND AND 1 MATERIALS ADMINISTRATION , OR THE DIRECTOR’S DESIGNEE. 2 (2) In appointing members to the advisory council, the Secretary shall, to 3 the extent practicable, ensure that the membership of the advisory council represents: 4 (i) All geographic regions of the State; 5 (ii) Large and small counties and municipalities; and 6 (iii) The variability in how waste and recyclable and compostable 7 materials are collected and processed in the State. 8 (3) A MEMBER OF A PRODUCER RESPONSIBILITY ORGAN IZATION MAY 9 NOT SERVE AS A VOTIN G MEMBER OR AS A COC HAIR OF THE ADVISORY COUNCIL. 10 (d) From among the advisory council members, the Secretary shall designate two 11 representatives to serve as cochairs. 12 (e) The Department shall provide staff for the advisory council. 13 (f) A member of the advisory council: 14 (1) May not receive compensation as a member of the advisory council; but 15 (2) Is entitled to reimbursement for expenses under the Standard State 16 Travel Regulations, as provided in the State budget. 17 (g) The advisory council shall meet at the request of the Secretary. 18 (h) [(1)] The advisory council shall [evaluate and make recommendations, 19 including legislative recommendations, on how to effectively establish and implement a 20 producer responsibility program in the State for packaging materials. 21 (2) In making recommendations under paragraph (1) of this subsection, the 22 advisory council shall include recommendations regarding the responsibilities of producers 23 under a producer responsibility program]: 24 (1) ON REQUEST BY A PRODU CER OR PRODUCER RESP ONSIBILITY 25 ORGANIZATION , PROVIDE ADVICE REGAR DING THE DRAFTING OR AMENDING OF A 26 PRODUCER RESPONSIBIL ITY PLAN REQUIRED UN DER § 9–2505 OF THIS SUBTITLE; 27 (2) RECEIVE AND REVIEW TH E PRODUCER RESPONSIB ILITY PLANS 28 SUBMITTED IN ACCORDA NCE WITH § 9–2505 OF THIS SUBTITLE; 29 24 SENATE BILL 901 (3) RECEIVE AND REVIEW AN NUAL REPORTS SUBMITT ED IN 1 ACCORDANCE WITH § 9–2507 § 9–2509 OF THIS SUBTITLE; 2 (4) MAKE RECOMMENDATIONS TO THE DEPARTMENT REGARDING 3 PRODUCER RESPONSIBIL ITY PLAN APPROVAL ; 4 (5) MAKE RECOMMENDATIONS TO THE DEPARTMENT AND 5 PRODUCER RESPONSIBIL ITY ORGANIZATIONS RE GARDING PRODUCER 6 RESPONSIBILITY PLAN IMPLEMENTATION ; AND 7 (6) PROVIDE WRITT EN RECOMMENDATIONS R EGARDING THE 8 PRODUCER RESPONSIBIL ITY PLAN, INCLUDING ANY UPDATE OR REVISION TO AN 9 APPROVED PLAN , TO A PRODUCER RESPON SIBILITY ORGANIZATIO N BEFORE THE 10 PRODUCER RESPONSIBIL ITY ORGANIZATION SUB MITS THE PLAN TO THE 11 DEPARTMENT . 12 [(i) On or before December 1, 2024, the advisory council shall report its findings 13 and recommendations to the Governor and, in accordance with § 2–1257 of the State 14 Government Article, the Senate Committee on Education, Energy, and the Environment 15 and the House Environment and Transportation Committee.] 16 9–2504. 17 (A) THIS SUBTITLE DOES NO T AFFECT THE AUTHORI TY OF THE STATE OR A 18 LOCAL JURISDICTION T O REGULATE THE SALE OR USE OF ANY PACKAG ING 19 MATERIAL. 20 (B) THIS SUBTITLE MAY NOT BE CONSTRUED TO : 21 (1) PROHIBIT A LOC AL GOVERNMENT , A SERVICE PROVIDER , OR ANY 22 OTHER ENTITY FROM SE LLING RECYCLED MATER IALS OR COMPOST TO E ND 23 MARKETS AND RETAININ G THE REVENUES FROM THOSE SALES; 24 (2) AFFECT THE AUTHORITY OF A PUBLICLY OR PRI VATELY OWNED 25 MATERIALS RECYCLING FACILITY OR ORGANICS RECYCLING COMPOSTING FACILITY 26 TO DETERMINE WHICH E NTITIES MAY USE THE FACILITY; OR 27 (3) LIMIT THE ABILITY OF LOCAL GOVERNMENTS , MATERIALS 28 RECYCLING FACILITIES , OR ORGANICS RECYCLING COMPOSTING FACILITIES TO 29 MAKE DECISIONS ON RE CYCLING INFRASTRUC TURE PURCHASES , INCLUDING 30 PROCESSING EQUIPMENT ; OR 31 SENATE BILL 901 25 (4) PRECLUDE THE SEPARATE ADOPTION OF A BEVERA GE CONTAINER 1 DEPOSIT RETURN PROGR AM IN THE STATE TO REDUCE BEVER AGE CONTAINER 2 POLLUTION AND PLASTI C WASTE. 3 9–2505. 4 (A) (1) ON OR BEFORE JUNE 30, 2025, THE DEPARTMENT SHALL 5 APPROVE A SINGLE PRO DUCER RESPONSIBILITY ORGANIZATION TO FULF ILL THE 6 REQUIREMENTS OF THIS SUBSECTION. 7 (2) (I) BEGINNING JULY 1, 2025 2026, AND EACH YEAR 8 THEREAFTER , THE PRODUCER RESPONSIBIL ITY ORGANIZATION APPROVED UNDER 9 § 9–2502(A) OF THIS SUBTITLE SHALL FILE A REGISTR ATION FORM WITH THE 10 DEPARTMENT . 11 (II) THE REGISTRATION FORM SHALL INCLUDE : 12 1. A LIST OF THE PRODUCER S PARTICIPATING IN THE 13 PRODUCER RESPONSIBIL ITY ORGANIZATION ; 14 2. A LIST OF THE BRANDS O F EACH PRODUCER 15 PARTICIPATING IN THE P RODUCER RESPONSIBILI TY ORGANIZATION ; 16 3. A LIST OF THE COVERED MATERIALS OF EACH 17 PRODUCER PARTICIPATING IN THE PRODUCER RESPONSIBIL ITY ORGANIZATION ; 18 AND 19 4. THE NAME, ADDRESS, AND CONTACT INFORMAT ION 20 OF A PERSON RESPONSI BLE FOR ENSURING THE PRODUCE R RESPONSIBILITY 21 ORGANIZATION ’S AND THE MEMBER PRO DUCERS’ COMPLIANCE WITH THIS 22 SUBTITLE. 23 (III) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , AT AT 24 THE TIME OF FILING T HE REGISTRATION FORM , THE PRODUCER RESPONSIBIL ITY 25 ORGANIZATION S HALL PAY TO THE DEPARTMENT AN ANNUAL REGISTRATION FEE , 26 AS SET BY THE DEPARTMENT , IN AN AMOUNT SUFFICI ENT TO COVER THE COSTS OF 27 RECORD KEEPING , NOT TO EXCEED $1,000: 28 1. IN EACH YEAR: 29 A. THE COSTS OF RECORD K EEPING UNDER THIS 30 SUBTITLE, NOT TO EXCEE D $1,000; AND 31 26 SENATE BILL 901 B. THE COSTS OF DEVELOPI NG AND UPDATING THE LIST 1 REQUIRED UNDER § 9–2508 OF THIS SUBTITLE ; 2 2. IN 2026 ONLY AS NECESSARY , THE COSTS OF 3 DEVELOPING AND IMPLE MENTING REGULATIONS IN ACCORDANCE WITH § 9–2511 4 OF THIS SUBTITLE; AND 5 3. IN 2028 AND EACH YEAR THEREA FTER, THE COSTS OF 6 REGISTERING SERVICE PROVIDERS UNDER § 9–2507 OF THIS SUBTITLE. 7 (3) BEFORE ESTABLISHING A ND COLLECTING AN ANN UAL 8 REGISTRATION FEE UND ER PARAGRAPH (2)(III) OF THIS SUBSECTION , THE 9 DEPARTMENT SHALL : 10 (I) PUBLISH A PROPOSED FE E ON ITS WEBSITE; AND 11 (II) ALLOW 90 CALENDAR DAYS FOR PU BLIC COMMENT . 12 (4) (2) (I) ON OR AFTER JULY 1, 2031 2033, A NONPROFIT 13 ORGANIZATION MAY REQ UEST THAT THE DEPARTMENT DESIGNATE THE 14 NONPROFIT ORGANIZATI ON AS AN ADDITIONAL PRODUCER RESPONSIBILITY 15 ORGANIZATION . 16 (II) THE DEPARTMENT MAY DESIGN ATE A NONPROFIT 17 ORGANIZATION AS AN A DDITIONAL PRODUCER R ESPONSIBILITY ORGANI ZATION IF 18 THE DEPARTMENT DETERMINES , IN COORDINATION WITH THE ADVISORY COUNCIL 19 ESTABLISHED UNDER § 9–2503 OF THIS SUBTITLE, THAT THE DESIGNATION OF THE 20 ADDITIONAL PRODUCER RESPONSIBILITY ORGAN IZATION IS NECESSARY TO: 21 1. INCREASE RECYCLING RA TES; OR 22 2. IMPROVE RECYCLING SER VICES FOR A SPECIFIC 23 TYPE OF PACKAGING COVERED MATERIAL. 24 (III) IF THE DEPARTMENT APPROVES THE DESIGNA TION OF AN 25 ADDITIONAL PRODUCER RESPONSIBILITY ORGAN IZATION UNDER THIS 26 SUBSECTION, THE PRODUCER RESPONS IBILITY ORGANIZATION SHALL: 27 1. NOT LATER THAN 30 DAYS AFTER BEING APP ROVED 28 BY THE DEPARTMENT AND ON OR BEFORE JULY 1 EACH YEAR TH EREAFTER, FILE A 29 REGISTRATION FORM WI TH THE DEPARTMENT CONTAINING THE INFORMATION 30 REQUIRED UNDER PARAG RAPH (2)(II) OF THIS SUBSECTION A ND PAY THE ANNUAL 31 REGISTRATION FEE DES CRIBED IN PARAGRAPH (2)(III) OF THIS SUBSECTION ; AND 32 SENATE BILL 901 27 2. COORDINATE WITH THE P RODUCER RESPONSIBILIT Y 1 ORGANIZATION ESTABLI SHED UNDER PARAGRAPH (1) OF THIS SUBSECTION , THE 2 DEPARTMENT , AND LOCAL GOVERNMENT S TO ENSURE THAT : 3 A. RECYCLING SERVICES FO R RESIDENTS OF THE STATE 4 ARE PROVIDED IN A SE AMLESS MANNER ; AND 5 B. PUBLIC OUTREACH, EDUCATION, AND 6 COMMUNICATION ARE PR OVIDED IN A CONSISTE NT MANNER. 7 (IV) THE PRODUCER RESPONSI BILITY ORGANIZATION 8 ESTABLISHED UNDER PA RAGRAPH (1) OF THIS SUBSECTION A ND ANY ADDITIONAL 9 PRODUCER RESPONSIBIL ITY ORGANIZATIONS DE SIGNATED UNDER THIS 10 PARAGRAPH MAY CREATE A REPRESENTATIVE ORG ANIZATION TO REPRESE NT THE 11 PARTICIPATING PRODUC ER RESPONSIBILITY OR GANIZATIONS TO IMPLE MENT THE 12 REQUIREMENTS OF THIS SUBTITLE. 13 (3) (I) ON OR AFTER JULY 1, 2026, AND IN ACCORDANCE WI TH THE 14 REQUIREMENTS OF THIS SUBSECTION AND ANY REG ULATIONS ADOPTED BY THE 15 DEPARTMENT , A PRODUCER OR GROUP OF PRODUCERS MAY DEV ELOP AND 16 OPERATE AN ALTERNATI VE COLLECTION PROGRA M TO COLLECT AND MAN AGE A 17 TYPE OR TYPES OF COV ERED MATERIAL SOLD , OFFERED FOR SALE , OR DISTRIBUTED 18 FOR SALE IN OR INTO THE STATE BY THE PRODUCER OR PRODUCERS . 19 (II) A PRODUCER THAT MANAGE S A TYPE OF COVERED 20 MATERIAL UNDER AN AP PROVED ALTERNATIVE C OLLECTION PROGRAM TH ROUGH 21 REUSE, RECYCLING, OR COMPOSTING MAY WH OLLY OR IN PART OFFS ET THE 22 PRODUCER’S PAYMENT OBLIGA TIONS UNDER THIS SUB TITLE. 23 (III) AN ALTERNATIVE COLLEC TION PROGRAM SHALL I MPROVE 24 AND PROVIDE A DEDICA TED COLLECTION PROGR AM FOR THE APPLICABL E 25 COVERED MATERIAL . 26 (B) (1) ON OR BEFORE APRIL 1, 2027 JULY 1, 2028, AND EVERY 5 YEARS 27 THEREAFTER , EACH PRODUCER SHALL , INDIVIDUALLY OR AS P ART OF A PRODUCER 28 RESPONSIBILITY ORGAN IZATION, SUBMIT A PRODUCER RE SPONSIBILITY PLAN TO 29 THE DEPARTMENT FOR REVIEW AND APPROVAL . 30 (2) BEFORE SUBMITTING THE PLAN REQUIRED UNDER THIS 31 SUBSECTION TO THE DEPARTMENT , A PRODUCER OR PRODUCER RESPO NSIBILITY 32 ORGANIZATION SHALL : 33 (I) CONSULT WITH THE ADVI SORY COUNCIL ESTABLI SHED 34 UNDER § 9–2503 OF THIS SUBTITLE; AND 35 28 SENATE BILL 901 (II) CONSIDER THE WRITTEN RECOMMENDATIONS OF T HE 1 ADVISORY COUNCIL AND RESPOND IN WRITING T O THE ADVISORY COUNC IL. 2 (3) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 3 PARAGRAPH , ON OR AFTER A DATE ESTA BLISHED IN REGULATIO NS ADOPTED BY THE 4 DEPARTMENT UNDER § 9–2509 § 9–2511 OF THIS SUBTITLE, A PRODUCER MAY NOT 5 SELL, OFFER FOR SALE , DISTRIBUTE, OR IMPORT FOR S ALE OR DISTRIBUTION 6 PACKAGING COVERED MATERIALS FOR USE IN THE STATE UNLESS THE PROD UCER, 7 INDIVIDUALLY OR AS P ART OF A PRODUCER RE SPONSIBILITY ORGANIZ ATION, HAS 8 AN APPROVED PRODUCER RESPONSIBILITY PLAN ON FILE WITH THE DEPARTMENT . 9 (II) A PRODUCER IS NO T REQUIRED TO SUBMIT A PRODUCER 10 RESPONSIBILITY PLAN TO THE DEPARTMENT , INDIVIDUALLY OR AS P ART OF A 11 PRODUCER RESPONSIBIL ITY ORGANIZATION , IF ANOTHER PERSON HA S AGREED TO 12 ASSUME RESPONSIBILIT Y UNDER THIS SUBTITL E FOR ANY PACKAGING COVERED 13 MATERIAL SOLD , OFFERED FOR SALE , OR DISTRIBUTED IN OR INTO THE STATE BY 14 THAT PRODUCER . 15 (C) (1) A PRODUCER RESPONSIBIL ITY PLAN SHALL: 16 (1) (I) IDENTIFY THE PRODUCER S COVERED BY THE PLA N, 17 INCLUDING THE CONTAC T INFORMATION FOR EA CH PARTICIPATING PRO DUCER 18 AND THE PRODUCER RES PONSIBILITY ORGANIZA TION; 19 (2) (II) IDENTIFY EACH BRAND O F PACKAGING COVERED 20 MATERIALS COVERED BY THE PLAN; 21 (3) (III) REQUIRE, IN ACCORDANCE WITH S UBSECTION (D) OF THIS 22 SECTION, ACHIEVEMENT WITHIN 5 YEARS AFTER THE DATE ON WHICH THE FIRST 23 VERSION OF THE PLAN IS APPROVED AND ESTA BLISH THE FOLLOWING 24 PERFORMANCE GOALS , AS RELEVANT AND AS APPROPRIATE , FOR EACH PACKAGING 25 COVERED MATERIAL TYPE : 26 (I) 1. POSTCONSUMER RECYCLED CONTENT GOALS ; 27 (II) RECYCLABILITY AND REC YCLING RATE GOALS ; 28 (III) REUSE GOALS; 29 (IV) PACKAGING REDUCTION G OALS; 30 (V) COMPOST ACCESS OR COM POST RATE GOALS , IF 31 APPLICABLE AND TECHN OLOGICALLY AND ENVIR ONMENTALLY FEASIBLE ; 32 SENATE BILL 901 29 (VI) CONTAMINATION REDUCTI ON RATE GOALS ; RECYCLING 1 RATES; 2 2. COMPOSTING RATES ; 3 3. REUSE RATES; 4 4. RETURN RATES; 5 5. THE PERCENTAGE OF COV ERED MATERIALS TO BE 6 WASTE REDUCED; 7 6. THE PERCENTAGE OF POS TCONSUMER RECYCLED 8 CONTENT THAT COVERED MATERIALS ARE REQUIR ED TO CONTAIN, INCLUDING THE 9 OVERALL PERCENTAGE F OR ALL COVERED MATER IALS AS APPLICABLE , AND NOT 10 INCLUDING COMPOSTABL E MATERIALS THAT CAN NOT CONTAIN POSTCONS UMER 11 RECYCLED CONTENT DUE TO UNIQUE CHEMICAL O R PHYSICAL PROPERTIE S OR 12 HEALTH AND SAFETY RE QUIREMENTS THAT PROH IBIT THE INTRODUCTIO N OF 13 POSTCONSUMER RECYCLE D CONTENT; AND 14 (VII) 7. GREENHOUSE GAS REDUCT ION GOALS; AND 15 (VIII) ANY OTHER GOAL THAT REDUCES PACKAGING MA TERIAL 16 WASTE AND IS JUSTIFI ED IN THE PLAN; 17 (4) REQUIRE EACH PARTICIP ATING PRODUCER TO RE DUCE 18 PACKAGING MATERIAL W ASTE TO THE MAXIMUM EXTENT PRACTICABLE , AND BY 19 NOT LESS THAN 25%, WITHIN 5 YEARS AFTER THE DATE ON WHICH THE FIRST 20 VERSION OF THE PLAN IS APPROVED; 21 (5) (IV) DESCRIBE, IN ACCORDANCE WITH S UBSECTION (E) OF THIS 22 SECTION, THE FINANCING METHOD THAT WILL BE USED TO IMPLEMENT THE PLAN ; 23 (V) DESCRIBE HOW , FOR EACH COVERED MAT ERIAL TYPE, THE 24 PRODUCER RESPONSIBIL ITY ORGANIZATION WILL MEASURE RECYCLING, WASTE 25 REDUCTION, REUSE, COMPOSTING , AND THE INCLUSION OF POSTCONSUMER 26 RECYCLED CONTENT ; 27 (6) (VI) DESCRIBE HOW THE PERF ORMANCE GOALS ESTABL ISHED 28 UNDER ITEM (3) (III) OF THIS SUBSECTION PARAGRAPH WILL BE MET OR EXCEE DED; 29 (VII) INCLUDE PROPOSALS FOR EXEMPTIONS FROM 30 PERFORMANCE TARGETS AND STATEWIDE REQUIR EMENTS FOR COVERED 31 30 SENATE BILL 901 MATERIALS THAT CANNO T BE WASTE REDUCED O R MADE REUSABLE , RECYCLABLE , 1 OR COMPOSTABLE DUE T O FEDERAL OR STATE HEALTH AND SAFE TY 2 REQUIREMENTS , IDENTIFYING THE SPECIFIC FEDERAL OR STATE REQUIREMENT 3 AND THEIR IMPACT ON THE COVERED MATERIAL S; 4 (VIII) DESCRIBE INFRASTRUCTU RE INVESTMENTS , INCLUDING 5 GOALS AND OUTCOMES A ND A DESCRIPTION OF HOW THE PROCESS TO O FFER AND 6 SELECT OPPORTUNITIES WILL BE CONDUCTED IN AN OPEN, COMPETITIVE, AND FAIR 7 MANNER, HOW IT WILL ADDRESS GAPS IN THE SYSTEM N OT MET BY SERVICE 8 PROVIDERS, AND THE POTENTIAL FI NANCIAL AND LEGAL IN STRUMENTS TO BE 9 USED; 10 (IX) EXPLAIN HOW THE PROGR AM WILL BE PAID FOR BY THE 11 PRODUCER RESPONSIBIL ITY ORGANIZATION THROUGH FEES FROM PRODUCERS , 12 WITHOUT ANY NEW OR A DDITIONAL CONSUMER –FACING FEE TO MEMBER S OF THE 13 PUBLIC, BUSINESSES, SERVICE PROVIDERS , THE STATE OR ANY POLITICA L 14 SUBDIVISIONS, OR ANY OTHER PERSON WHO IS NOT A PRODUCE R, UNLESS THE FEE 15 IS: 16 1. A DEPOSIT MADE IN CONN ECTION WITH A PRODUC T’S 17 REFILL, REUSE, OR RECYCLING THAT CA N BE REDEEMED BY A C ONSUMER; OR 18 2. A CHARGE FOR SERVICE B Y A SERVICE PROVIDER , 19 REGARDLESS OF WHETHE R THE SERVICE PROVID ER IS REGISTERED ; 20 (X) DESCRIBE ACTIVITIES T O BE UNDERTAKEN BY THE 21 PRODUCER RESPONSIBIL ITY ORGANIZATION DUR ING EACH YEAR TO : 22 1. MINIMIZE THE ENVIRONM ENTAL IMPACTS AND 23 HUMAN HEALTH IMPACTS OF COVERED MATERIALS , INCLUDING ASSESSING EACH 24 COVERED MATERIAL ’S GENERATION OF HAZA RDOUS WASTE , GENERATION OF 25 GREENHOUSE GASES , ENVIRONMENTAL JUSTIC E IMPACTS, PUBLIC HEALTH 26 IMPACTS, AND OTHER IMPACTS ; 27 2. FOSTER THE IMPROVED D ESIGN OF COVERED 28 MATERIALS; 29 3. PROVIDE FUNDING TO EX PAND AND INCREASE TH E 30 CONVENIENCE OF WASTE REDUCTION, REUSE, COLLECTION, RECYCLING, AND 31 COMPOSTING SERVICES TO COVERED ENTITIES ; 32 4. PROVIDE FOR REIMBURSE MENT RATES UNDER 33 SUBSECTION (E)(1)(II) OF THIS SECTION TO S ERVICE PROVIDERS FOR STATEWIDE 34 COVERAGE OF COVERED SERVICES AT AN OPTIM AL LEVEL OF CONVENIE NCE AND 35 SENATE BILL 901 31 SERVICE FOR A PPLICABLE COVERED MA TERIALS ON THE LIST ESTABLISHED UNDER 1 § 9–2508 OF THIS SUBTITLE; AND 2 5. MONITOR TO ENSURE THA T POSTCONSUMER 3 MATERIALS ARE DELIVE RED TO RESPONSIBLE E ND MARKETS; 4 (XI) INCLUDE PERFORMANCE S TANDARDS FOR SERVICE 5 PROVIDERS AS APPLICA BLE TO THE SERVICE P ROVIDED, INCLUDING: 6 1. REQUIREMENTS THAT SER VICE PROVIDERS MUST 7 ACCEPT ALL REQUIRED COVERED MATERIALS ON THE LIST ESTABLISHED UNDER § 8 9–2508 OF THIS SUBTITLE ; AND 9 2. LABOR STANDARDS AND S AFETY PRACTICES , 10 INCLUDING SAFETY PRO GRAMS, HEALTH BENEFITS , AND LIVING WAGES ; 11 (XII) DESCRIBE HOW THE PROD UCER RESPONSIBILITY 12 ORGANIZATION WILL TR EAT AND PROTECT NONP UBLIC DATA SUBMITTED BY 13 SERVICE PROVIDERS ; 14 (XIII) INCLUDE A DESCRIPTION OF HOW THE PRODUCER 15 RESPONSIBILITY ORGAN IZATION WILL PROVIDE TECHNIC AL ASSISTANCE TO 16 SERVICE PROVIDERS IN ORDER TO ASSIST THEM IN DELIVERING COVERE D 17 MATERIALS TO RESPONS IBLE END MARKETS ; 18 (7) (XIV) DESCRIBE HOW STAKEHOL DER COMMENTS WERE 19 CONSIDERED IN THE DE VELOPMENT OF THE PLA N; 20 (8) (XV) DESCRIBE HOW STAFFING AND ADM INISTERING THE 21 IMPLEMENTATION OF TH E PLAN WILL BE HANDL ED; 22 (9) DESCRIBE THE STRATEGY FOR REDUCING PACKAGI NG 23 MATERIALS IN THE STATE, INCLUDING HOW PRODUC ERS PARTICIPATING IN A PLAN 24 WILL WORK TOGETHER T O REDUCE PACKAGING T HROUGH PRODUC T DESIGN AND 25 PROGRAM INNOVATIONS ; 26 (10) (XVI) DESCRIBE THE ACTIONS TAKEN OR THAT WILL B E TAKEN 27 FOR PUBLIC OUTREACH , EDUCATION, AND COMMUNICATION , TAKING INTO 28 ACCOUNT THAT PUBLIC OUTREACH, EDUCATION, AND COMMUNICATION SH ALL: 29 (I) 1. PROMOTE THE RESPONS IBLE END –OF–LIFE 30 MANAGEMENT OF PACKAGING COVERED MATERIALS; 31 32 SENATE BILL 901 (II) 2. PROVIDE INFORMATION O N HOW TO PREVENT LIT TER 1 OF PACKAGING COVERED MATERIALS; 2 (III) 3. PROVIDE RECYCLING AND ORGANICS RECYCLING 3 COMPOSTING INSTRUCTIONS THAT AR E, TO THE EXTENT PRACTICABLE : 4 1. A. CONSISTENT STATEWIDE , TAKING INTO ACCOUNT 5 DIFFERENCES AMONG LO CAL LAWS AND PROCESS ING CAPABILITIES; 6 2. B. EASY TO UNDERSTAND ; AND 7 3. C. EASILY ACCESSIBLE ; AND 8 (IV) 4. PROVIDE FOR OUTREACH AND EDUCATION THAT A RE: 9 1. A. DESIGNED TO ACHIEVE P ACKAGING MATERIALS 10 MANAGEMENT GOALS AND REQUIREMENTS , INCLUDING THE PREVEN TION OF 11 CONTAMINATION OF PACKAGING COVERED MATERIALS; 12 2. B. COORDINATED ACROSS PR OGRAMS TO AVOID 13 CONFUSION FOR CONSUM ERS; AND 14 3. C. DEVELOPED I N CONSULTATION WITH LOCAL 15 GOVERNMENTS AND OTHE R STAKEHOLDERS ; 16 (11) (XVII) DESCRIBE, IN ACCORDANCE WITH S UBSECTION (F) OF 17 THIS SECTION, THE AMOUNT OF FUNDIN G THAT WILL BE USED FOR IMPROVING 18 REUSE, ORGANICS RECYCLING COMPOSTING , AND RECYCLING IN THE STATE; 19 (12) (XVIII) DESCRIBE THE PROCESS BY WHICH A LOCAL 20 GOVERNMENT SERVICE PROVIDER MAY REQUEST REIMBURS EMENT FOR COSTS 21 ASSOCIATED WITH TRAN SPORTING, COLLECTING, AND PROCESSING PACKAGING 22 COVERED MATERIALS THAT ARE I DENTIFIED IN THE PLAN, INCLUDING: 23 (I) 1. THE PROCESS BY WHICH THE REQUEST WILL BE 24 REVIEWED; 25 (II) 2. THE PROCESS FOR APPRO VING OR DENYING A 26 REQUEST FOR REIMBURS EMENT; 27 (III) 3. THE SCHEDULE FOR PROV IDING REIMBURSEMENT 28 THAT INCLUDES REIMBU RSEMENT ON AT LEAS T A QUARTERLY BASIS ; AND 29 SENATE BILL 901 33 (IV) 4. THE PROCESS FOR PROVI DING REIMBURSEMENT F OR 1 MULTIPLE BRANDS OF PACKAGING COVERED MATERIALS; AND 2 5. THE PROCESS FOR RESOL VING, THROUGH 3 ARBITRATION, DISPUTES THAT ARISE BETWEEN THE PRODUCER RESPONSIBILITY 4 ORGANIZATION AND A S ERVICE PROVIDER REGA RDING THE DETERMINAT ION OF 5 REIMBURSEMENT RATES AND PAYMENT OF REIMB URSEMENTS ; 6 (13) (XIX) (I) 1. PROVIDE THE WRITTEN R ECOMMENDATIONS 7 FROM THE ADVISORY CO UNCIL PROVIDED UNDER § 9–2503 OF THIS SUBTITLE AND 8 THE PRODUC ER RESPONSIBILITY OR GANIZATION’S WRITTEN RESPONSE T O THE 9 ADVISORY COUNCIL ; AND 10 (II) 2. DESCRIBE HOW THE WRIT TEN RECOMMENDATIONS 11 FROM THE ADVISORY CO UNCIL WERE CONSIDERE D AND ADDRESSED IN T HE 12 DEVELOPMENT OF THE P LAN; AND 13 (14) (XX) INCLUDE ANY OTHER I NFORMATION THAT IS R EQUIRED BY 14 THE DEPARTMENT . 15 (2) THE PERFORMANCE GOALS ESTABLISHED UNDER PA RAGRAPH 16 (1)(III) OF THIS SUBSECTION D O NOT APPLY TO: 17 (I) PRODUCTS PACKAGED AT ESTABLISHMENTS UNDER 18 MANDATORY INSPECTION BY THE U.S. DEPARTMENT OF AGRICULTURE’S FOOD 19 SAFETY AND INSPECTION SERVICE IN ACCORDANCE WITH THE FEDERAL MEAT 20 INSPECTION ACT, THE FEDERAL POULTRY PRODUCTS INSPECTION ACT, THE 21 FEDERAL EGG PRODUCTS INSPECTION ACT, OR U.S. DEPARTMENT OF 22 AGRICULTURAL OR U.S. FOOD AND DRUG ADMINISTRATION REGULA TIONS 23 RELATED TO CHEESE PA CKAGING; 24 (II) PRODUCTS PACKAGED AT FACILITIES REGULATED UNDER 25 STATE MEAT AND DAIRY INSPECTION LAWS ; OR 26 (III) FOR A PERIOD OF 5 YEARS AFTER THE DATE ON WHICH THE 27 FIRST VERSION OF THE PLAN IS APPROVED AND ESTABLISHED, WITH AN OPTIONAL 28 EXTENSION OF 5 YEARS CONTINGENT ON THE DEVELOPMENT OF R ECYCLING, 29 INCLUDING ORGANICS R ECYCLING, INFRASTRUCTURE CAPAB LE OF HANDLING 30 PATHOGEN–CONTAMINATED PACKAGI NG IN A SAFE AND EFF ECTIVE MANNER , 31 CHEESE, MEAT, AND POULTRY PREPARED AND PACKAGED AT RETAIL LOCATIONS 32 SUCH AS GROCERY STOR ES, BUTCHER SHOPS , OR ONLINE RETAILERS . 33 (D) BASED ON THE RESULTS OF THE MOST RECENT S TATEWIDE RECYCLING 34 NEEDS ASSESSMENT CON DUCTED UNDER CHAPTER 465 OF THE ACTS OF THE 35 34 SENATE BILL 901 GENERAL ASSEMBLY OF 2023 OR § 9–1702.2 OF THIS TITLE, THE DEPARTMENT , IN 1 COORDINATION WITH A PRODUCER RESPONSIBIL ITY ORGANIZATION AND VIA THE 2 APPROVAL OF PRODUCER RESPONSIBILITY PLANS , SHALL ESTABLISH 3 PERFORMANCE GOALS FO R EACH PACKAGING COVERED MATERIAL TYPE USING A 4 BASELINE YEAR THAT I S INFORMED BY T HE STATEWIDE RECYCLI NG NEEDS 5 ASSESSMENT , INCLUDING ESTABLISHI NG RECYCLING RATE GO ALS FOR EACH 6 PACKAGING COVERED MATERIAL TYPE , AT 5–, 10–, AND 15–YEAR INTERVALS . 7 (E) (1) THE FINANCING METHOD THAT WILL BE USED BY A PRODUCER 8 RESPONSIBILITY ORGAN IZATION TO IMPLEMENT A PRODUCER RESPONSIBILITY 9 PLAN SHALL: 10 (I) PROVIDE THE METHOD FO R EITHER DIRECT INVE STMENTS 11 OR REIMBURSEMENTS FO R IMPROVING INFRASTR UCTURE FOR REUSE , ORGANICS 12 RECYCLING COMPOSTING , AND RECYCLING IN ACC ORDANCE WITH SUBSECT ION 13 (C)(11) (C)(1)(XVII) OF THIS SECTION, WITH PRIORITY GIVEN TO THE IMPROVEMENT 14 OF EXISTING INFRASTR UCTURE; 15 (II) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , 16 PROVIDE: 17 1. PROVIDE A METHODOLOGY FOR REIMBURSEMENT 18 RATES FOR COVERED SE RVICES FOR COVERED M ATERIALS, EXCLUSIVE OF EXEMPT 19 MATERIALS AND PRODUCERS ; 20 2. INCORPORATE RELEVANT COST INFORMATION 21 IDENTIFIED BY THE MO ST RECENT NEEDS ASSE SSMENT PERFORMED UND ER 22 CHAPTER 465 OF THE ACTS OF THE GENERAL ASSEMBLY OR § 9–1702.2 OF THIS 23 TITLE; 24 3. BE UPDATED ANNUALLY; AND 25 4. ESTABLISH REIMBURSEME NT RATES EQUIVALENT 26 TO: 27 A. AT LEAST 50% OF THE COST PER TON ON OR BEFORE 28 JULY 1, 2028; 29 B. AT LEAST 75% OF THE COST PER TON ON OR BEFORE 30 JULY 1, 2029; AND 31 C. AT LEAST 90% OF THE COST PER TON ON OR BEFORE 32 JULY 1, 2030, AND EACH YEAR THEREA FTER A REASONABLE ANNUAL RATE PER TON 33 SENATE BILL 901 35 OF RECYCLED OR COMPO STED PACKAGING MATERIALS FOR REIMBURSING LOCA L 1 GOVERNMENTS FOR COST S ASSOCIATED WITH : 2 1. UP TO 50% OF THE COST OF COLLE CTING PACKAGING 3 MATERIALS THAT ARE I DENTIFIED IN THE PLA N; 4 2. TRANSPORTING RECYCLAB LE OR COMPOSTABLE 5 PACKAGING MATERIALS TO A MATERIALS RECYC LING FACILITY OR AN ORGANICS 6 RECYCLING FACILITY ; 7 3. PROCESSING PACKAGING MATERIALS, INCLUDING 8 REMOVING CONTAMINATI ON; AND 9 4. CONVERTING PACKAGING MATERIALS THAT ARE 10 DIVERTED TO BE RECYC LED OR COMPOSTED INT O COMMODITY MATERIAL S; 11 (III) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , 12 ESTABLISH A FEE STRUCTURE FOR PARTICIPATING PRODUC ERS THAT IS SET IN A 13 MANNER TO COVER COSTS ASSOCIATED WIT H: 14 1. IMPLEMENTING THE PLAN , INCLUDING THE 15 ADMINISTRATIVE COSTS OF A PRODUCER RESPON SIBILITY ORGANIZATIO N; 16 2. REIMBURSING LOCAL GOV ERNMENTS OR SERVICE 17 PROVIDERS FOR COSTS IN ACCORDA NCE WITH ITEM (II) OF THIS PARAGRAPH ; 18 3. THE ADMINISTRATION , REVIEW, OVERSIGHT, AND 19 ENFORCEMENT OF THE P LAN BY THE DEPARTMENT ; AND 20 4. IMPLEMENTING THE STRA TEGY IN THE PLAN FOR 21 REDUCING PACKAGING M ATERIALS IN ACCORDAN CE WITH SUBSECTION (C)(9) OF 22 THIS SECTION; AND 23 5. IMPLEMENTING THE STRATEGY IN THE PLAN FOR 24 IMPROVING REUSE , ORGANICS RECYCLING COMPOSTING , AND RECYCLING IN THE 25 STATE IN ACCORDANCE W ITH SUBSECTION (C)(11) (C)(1)(XVII) OF THIS SECTION; 26 (IV) 1. DESCRIBE THE INCENTIV ES TO ENCOURAGE 27 PARTICIPATING PRODUC ERS TO ENGAGE IN W ASTE REDUCTION AND R ECYCLING 28 ACTIVITIES; AND 29 2. DESCRIBE THE DISINCEN TIVES TO DISCOURAGE 30 DESIGNS OR PRACTICES THAT INCREASE THE CO ST OF MANAGING PACKA GING 31 MATERIALS; 32 36 SENATE BILL 901 (V) BE EVALUATED BY AN IN DEPENDENT FINANCIAL AUDITOR, 1 AS DESIGNATED BY THE DEPARTMENT , TO ENSURE THAT THE C OSTS OF 2 IMPLEMENTING THE PLA N ARE COVERED ; AND 3 (VI) MEET ANY OTHER REQUIR EMENT ESTABLISHED BY THE 4 DEPARTMENT BY REGULAT ION. 5 (2) THE REIMBURSEMENT RAT E ESTABLISHED UNDER PARAGRAPH 6 (1)(II) OF THIS SUBSECTION S HALL BE: 7 (I) BASED ON THE FOLLOWING , AS APPLICABLE BY SER VICE 8 PROVIDED: 9 1. THE POPULATION SIZE O F A LOCAL JURISDICTI ON; 10 2. THE DISTANCE TO THE R ELEVANT MATERIALS 11 RECYCLING FACILITY O R ORGANICS RECYCLING FACILITY; 12 3. THE COMMODITY VALUE O F RECYCLED PACKAGING 13 MATERIALS; AND 14 4. ANY SOCIOECONOMIC OR GEOGRAPHIC FACTOR , AS 15 DETERMINED BY THE DEPARTMENT ; AND 16 (II) DISCOUNTED EQUIVALENT TO THE ESTIMATED ANN UAL 17 VOLUME OF PACKAGING MATERIALS SOLD IN TH E STATE BY PERSONS THAT ARE 18 EXEMPT FROM THE REQUIREMENTS OF THIS SUBTITLE BE BASED ON THE 19 FOLLOWING, AS APPLICABLE BY SER VICE PROVIDED : 20 (I) A FIXED AMOUNT FOR EAC H TON OF COVERED MAT ERIAL 21 COLLECTED BY A SERVI CE PROVIDER THAT REF LECTS CONDITIONS AFF ECTING 22 COLLECTION, RECYCLING, AND COMPOSTIN G COSTS IN THE REGIO N OR 23 JURISDICTION WHERE T HE SERVICES WERE PRO VIDED, INCLUDING: 24 1. THE NUMBER AND SIZE O F COVERED ENTITIES ; 25 2. POPULATION DENSITY ; 26 3. COLLECTION METHODS EM PLOYED; 27 4. THE DISTANCE TRAVELED TO CONSOLIDATION OR 28 TRANSFER FACILITIES, MATERIALS RECYCLING FACILITIES, REUSE FACILITIES , 29 COMPOSTING FACILITIE S, OR RESPONSIBLE END M ARKETS; 30 SENATE BILL 901 37 5. OTHER FACTORS THAT MA Y CONTRIBUTE TO 1 REGIONAL OR JURISDIC TIONAL COST DIFFEREN CES; 2 6. THE PROPORTION OF COV ERED COMPOSTABLE 3 MATERIALS WITHIN ALL SOURC E–SEPARATED COMPOSTABL E MATERIALS 4 COLLECTED OR MANAGED THROUGH COMPOSTING ; AND 5 7. THE GENERAL QUALITY O F COVERED MATERIALS 6 RECYCLED OR COMPSTED BY A SERVICE PROVIDE R; 7 (II) A FIXED AMOUNT FOR EAC H TON OF COVERED MAT ERIAL 8 RECYCLED OR COMPOSTED BY A SERVICE PROVIDER IN THE PREVIOUS CALENDA R 9 YEAR BASED ON : 10 1. THE AVERAGE COSTS ASS OCIATED WITH THE 11 TRANSPORTATION AND P ROCESSING, FROM A CENTRAL LOCAT ION WITHIN A 12 POLITICAL SUBDIVISIO N, OF COLLECTED COVERED MATERIAL FROM THE PO LITICAL 13 SUBDIVISION TO A MAT ERIALS RECYCLING FAC ILITY OR COMPOSTING FACILITY; 14 2. THE PROCESSING OF , AND REMOVAL OF 15 CONTAMINATION FROM , COVERED MATERIALS BY A MATERIALS RECYCLIN G 16 FACILITY OR COMPOSTI NG FACILITY; 17 3. THE RECYCLING OR COMP OSTING OF COVE RED 18 MATERIALS LESS THE A VERAGE FAIR MARKET V ALUE FOR THAT COVERE D 19 MATERIAL BASED ON TH E MARKET INDICES FOR THE REGION, UPDATED MONTHLY ; 20 4. COSTS ASSOCIATED WITH THE MANAGEMENT OF 21 CONTAMINATED MATERIA LS REMOVED FROM THE COLLECTED COVERED 22 MATERIALS; AND 23 5. THE PROPORTION OF COV ERED COMPOSTABLE 24 MATERIALS WITHIN ALL SOURCE–SEPARATED COMPOSTABL E MATERIALS 25 COLLECTED OR MANAGED THROUGH COMPOSTING ; 26 (III) AN ADDITIONAL FIXED A MOUNT PER TON , IN EXCESS OF THE 27 RATE PROVIDED UNDER SUBPARAGRAPH (II) OF THIS PARAGRAPH , FOR EACH 28 COVERED MATERIAL TYP E NOT LISTED UNDER § 9–2508 OF THIS SUBTITLE THA T 29 WAS RECYCLED OR COMP OSTED BY A SERVICE P ROVIDER IN THE PREVI OUS 30 CALENDAR YEAR , LESS THE AVERAGE FAI R MARKET VALUE FOR T HE COVERED 31 MATERIAL BASED ON TH E MARKET INDICE S FOR THE REGION , UPDATED MONTHLY ; 32 38 SENATE BILL 901 (IV) A FIXED AMOUNT FOR EAC H TON OF MIXED RECYC LING 1 THAT IS MANAGED THRO UGH A PROCESS THAT I NCLUDES PERCENTAGES OF 2 COVERED MATERIALS LI STED UNDER § 9–2508 OF THIS SUBTITLE AND ADDITIONAL 3 COVERED MATERIALS , PRORATED FO R THE VALUES IN ITEM S 1 AND 2 OF 4 SUBPARAGRAPH (II) OF THIS PARAGRAPH , BASED ON THE MOST RE CENT WASTE 5 CHARACTERIZATION FOR MIXED RECYCLING TON AVERAGES; 6 (V) A FIXED AMOUNT , BASED ON POPULATION SERVED, FOR 7 ADMINISTRATIVE COSTS OF SERVICE PROVIDERS , INCLUDING EDUCATION , PUBLIC 8 AWARENESS CAMPAIGNS , AND OUTREACH PROGRAM COSTS AS APPLICABLE ; AND 9 (VI) A FIXED AMOUNT FOR THE COST OF MANAGING COV ERED 10 MATERIALS CAPABLE OF REFILL OR REUSABLE C OVERED MATERIALS AND FOR THE 11 COSTS ASSOCIATED WIT H COLLECTION , CLEANING, SANITATION, DISTRIBUTION, 12 AND MANAGEMENT OF CO NTAMINATION . 13 (3) (I) BEFORE ESTABLISHING T HE FEE STRUCTURE FOR 14 PARTICIPATING PRODUC ERS UNDER PARAGRAPH (1)(III) OF THIS SUBSECTION , THE 15 PRODUCER RESPONSIBIL ITY ORGANIZATION SHA LL: 16 1. PUBLISH A PRO POSED FEE ON ITS WEB SITE; AND 17 2. ALLOW 90 CALENDAR DAYS FOR PU BLIC COMMENT . 18 (II) THE FEE STRUCTURE EST ABLISHED UNDER PARAG RAPH 19 (1)(III) OF THIS SUBSECTION S HALL BE VARIABLE BAS ED ON: 20 1. COSTS ASSOCIATED WITH TRANSPORTING , 21 COLLECTING, AND PROCESSING PACKAGING COVERED MATERIALS; 22 2. AN ECO–MODULATION OF FEES , INCLUDING 23 ESTABLISHING : 24 A. A HIGHER FEE FOR PACKAGING COVERED MATERIALS 25 WITH LOW RECYCLABILITY OR NOT LISTED UNDER § 9–2508 OF THIS SUBTITLE OR 26 WITH LOW RECYCLED CONTENT ; AND 27 B. A DISCOUNTED FEE FOR PACKAGING COVERED 28 MATERIALS WITH HIGH RECYCLABIL ITY OR LISTED UNDER § 9–2508 OF THIS 29 SUBTITLE OR WITH HIG H RECYCLED CONTENT ; AND 30 3. ANY OTHER FACTOR , AS DETERMINED BY THE 31 DEPARTMENT . 32 SENATE BILL 901 39 (4) (I) A PRODUCER RESPONSIBIL ITY ORGANIZATION SHALL 1 RETAIN ANY FEE COLLE CTED UNDER THIS SUBS ECTION IN ITS OWN AC COUNT. 2 (II) THE DEPARTMENT MAY REQUES T AT ANY TIME AN AUD IT OF 3 THE FINANCIAL RECORD S OF A PRODUCER RESP ONSIBILITY ORGANIZAT ION. 4 (5) (I) A SERVICE PROVIDER SHA LL RETAIN AL L REVENUE FROM 5 THE SALE OF COVERED MATERIALS. 6 (II) NOTHING IN THIS SUBTI TLE MAY BE CONSTRUED TO 7 RESTRICT A SERVICE P ROVIDER FROM CHARGIN G A FEE FOR COVERED SERVICES OF 8 COVERED MATERIALS TO THE EXTENT THAT REIM BURSEMENT FROM A PRO DUCER 9 RESPONSIBILITY OR GANIZATION DOES NOT COVER ALL COSTS OF S ERVICES, 10 INCLUDING: 11 1. CONTINUED INVESTMENT AND INNOVATION IN 12 OPERATIONS; 13 2. OPERATING PROFITS ; AND 14 3. RETURNS ON INVESTMENT S REQUIRED BY A SERV ICE 15 PROVIDER TO PROVIDE SUSTAINABILITY OF TH E SERVICES. 16 (F) THE FUNDING THAT WILL BE USED FOR IMPROVIN G REUSE, ORGANICS 17 RECYCLING COMPOSTING , AND RECYCLING SHALL INCLUDE INVESTMENT I N 18 MARKET DEVELOPMENT A ND EXISTING AND FUTU RE REUSE, ORGANICS RECYCLING 19 COMPOSTING , AND RECYCLING INFRAS TRUCTURE, GIVING PRIORITY TO 20 INVESTMENT IN EXISTI NG INFRASTRUCTURE , INCLUDING: 21 (1) INSTALLING OR UPGRADI NG EQUIPMENT TO IMPR OVE THE 22 SORTING OF PACKAGING MATERIALS AT EXISTIN G SORTING AND PROCES SING 23 FACILITIES; 24 (2) MITIGATING THE IMPACT S OF PACKAGING MATER IALS ON OTHER 25 COMMODITIES AT EXISTING S ORTING AND PROCESSIN G FACILITIES; AND 26 (3) CAPITAL EXPENDITURES FOR NEW TECHNOLOGY , EQUIPMENT, 27 AND FACILITIES , BASED ON THE RESULTS OF THE MOST RECENT S TATEWIDE 28 RECYCLING NEEDS ASSE SSMENT CONDUCTED UND ER CHAPTER 465 OF THE ACTS 29 OF THE GENERAL ASSEMBLY OF 2023 OR § 9–1702.2 OF THIS TITLE. 30 (G) THE DEPARTMENT SHALL REVI EW: 31 40 SENATE BILL 901 (1) THE PRODUCER RESPONSI BILITY PLAN REQUIRED UNDER 1 SUBSECTION (B) OF THIS SECTION; AND 2 (2) THE WORK PRODUCT OF T HE INDEPENDENT FINAN CIAL AUDITOR 3 DESIGNATED BY THE DEPARTMENT TO EVALUAT E THE FINANCING COMP ONENT OF 4 THE PRODUCER RESPONS IBILITY PLAN UNDER S UBSECTION (E)(1)(V) OF THIS 5 SECTION. 6 (H) (1) WITHIN 120 DAYS AFTER RECEIVING A PROPOSED PRODUCER 7 RESPONSIBILITY PLAN , THE DEPARTMENT SHALL APPR OVE, APPROVE WITH 8 CONDITIONS, OR REJECT THE PLAN . 9 (2) IN MAKING A DETERMINA TION UNDER PARAGRAPH (1) OF THIS 10 SUBSECTION, THE DEPARTMENT SHALL CONS IDER WHETHER : 11 (I) THE PRODUCER RESPONSI BILITY PLAN COMPLIES WITH 12 THE REQUIREMENTS OF THIS SECTION, INCLUDING WHETHER TH E FINANCING 13 METHOD WILL COVER TH E COSTS OF IMPLEMENT ING THE PLAN; AND 14 (II) THE PRODUCER RESPONSI BILITY ORGANIZATION ENGAGED 15 SUFFICIENTLY WITH ST AKEHOLDERS , INCLUDING LOCAL GOVE RNMENTS, IN 16 DEVELOPING THE PLAN . 17 (3) NOT LATER THAN 60 DAYS AFTER THE DATE A PRODUCER 18 RESPONSIBILITY PLAN IS INITIALLY APPROVE D UNDER THIS SECTION , THE ENTITY 19 THAT SUBMITTED THE P LAN SHALL PAY TO THE DEPARTMENT : 20 (I) THE DEPARTMENT ’S COST OF REVIEWING THE PLAN; AND 21 (II) THE DEPARTMENT ’S ESTIMATED COSTS OF 22 ADMINISTERING , OVERSEEING, AND ENFORCING THE PL AN BETWEEN THE INITI AL 23 DATE OF APPROVAL AND THE DATE OF THE INIT IAL ANNUAL REPORT RE QUIRED 24 UNDER § 9–2507 § 9–2509 OF THIS SUBTITLE. 25 (I) IMPLEMENTATION OF AN APPROVED PRODUCER RE SPONSIBILITY PLAN 26 SHALL BEGIN NOT LATE R THAN 6 MONTHS AFTER THE DAT E THE PRODUCER 27 RESPONSIBILITY PLAN IS APPROVED BY THE DEPARTMENT . 28 (J) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION 29 AND SUBJECT TO PARAG RAPH (3) OF THIS SUBSECTION , AN APPROVED PRODUCER 30 RESPONSIBILITY PLAN SHALL EXPIRE AFTER 5 YEARS. 31 SENATE BILL 901 41 (2) A PRODUCER RESPONSIBIL ITY PLAN MAY CONTINU E AFTER 5 1 YEARS IF IT IS RENEG OTIATED, RENEWED, OR AMENDED AND APPRO VED BY THE 2 DEPARTMENT IN ACCORDA NCE WITH THIS SUBTIT LE. 3 (3) THE DEPARTMENT MAY RESCIN D APPROVAL OF A PROD UCER 4 RESPONSIBILITY PLAN AT ANY TIM E FOR GOOD CAUSE . 5 (4) IF THE DEPARTMENT RESCINDS A N APPROVAL OF A PROD UCER 6 RESPONSIBILITY PLAN UNDER PARAGRAPH (3) OF THIS SUBSECTION , THE 7 PRODUCER OR , IF APPLICABLE, THE PRODUCER RESPONS IBILITY ORGANIZATION 8 MAY AMEND THE PLAN A ND SUBMIT IT TO THE DEPARTMENT FOR APPROV AL IN 9 ACCORDANCE WITH THIS SUBTITLE. 10 (5) IF, BASED ON THE ANNUAL REPORT SUBMITTED UND ER § 9–2507 11 § 9–2509 OF THIS SUBTITLE , THE PERFORMANCE GOAL S ESTABLISHED UNDER 12 SUBSECTION (C)(3) (C)(1)(III) OF THIS SECTION HAVE NOT BEEN ACHIEVED , THE 13 DEPARTMENT MAY : 14 (I) REQUIRE THAT A PRODUC ER OR PRODUCER 15 RESPONSIBILITY ORGAN IZATION AMEND THE PR ODUCER RESPONSIBILIT Y PLAN; 16 AND 17 (II) IMPOSE AN ADMINISTRAT IVE PENALTY ON A PRO DUCER OR 18 PRODUCER RESPONSIBIL ITY ORGANIZATION IN ACCORDANCE WITH § 9–2510 § 19 9–2512 OF THIS SUBTITLE. 20 (6) IF THE DEPARTMENT REQUIRES A PRODUCER OR PRODUCER 21 RESPONSIBILITY ORGAN IZATION TO AMEND A P RODUCER RESPONSIBILI TY PLAN 22 UNDER PARAGRAPH (5) OF THIS SUBSECTION , THE PRODUCER OR PROD UCER 23 RESPONSIBILITY ORGANIZATION SHALL C OVER THE COST OF THE DEPARTMENT ’S 24 REVIEW AND SUPPLEMEN TAL WORK ON THE PLAN . 25 9–2506. 26 (A) IN ACCORDANCE WITH TH E REQUIREMENTS OF A PRODUCER 27 RESPONSIBILITY ORGAN IZATION, AS ESTABLISHED IN AN APPROVED PRODUCER 28 RESPONSIBILITY PLAN ON FILE WITH THE DEPARTMENT , AND ANY OTHER 29 REQUIREMENT ADOPTED BY THE DEPARTMENT , A LOCAL GOVERNMENT SERVICE 30 PROVIDER MAY REQUEST REIMBURS EMENT FROM A PRODUCE R RESPONSIBILITY 31 ORGANIZATION FOR COS TS ASSOCIATED WITH C OLLECTING, TRANSPORTING , AND 32 PROCESSING PACKAGING COVERED MATERIALS THAT ARE I DENTIFIED UNDER THE 33 PLAN, INCLUDING COSTS ASSO CIATED WITH RECYCLIN G SERVICES FOR PUBLIC 34 PLACES AND PUBLIC HOUSING COVERED ENTITIES . 35 42 SENATE BILL 901 (B) (1) IF MULTIPLE PRODUCER RESPONSIBILITY ORGAN IZATIONS 1 REGISTER APPROVED PR ODUCER RESPON SIBILITY PLANS WITH THE DEPARTMENT 2 IN ACCORDANCE WITH T HIS SUBTITLE , THE PRODUCER RESPONS IBILITY 3 ORGANIZATIONS SHALL COORDINATE REIMBURSE MENT REQUESTED UNDER THIS 4 SECTION. 5 (2) MULTIPLE PRODUCER RES PONSIBILITY ORGANIZA TIONS MAY 6 ESTABLISH A THIRD –PARTY EN TITY TO COORDINATE R EIMBURSEMENT IN 7 ACCORDANCE WITH THIS SUBSECTION. 8 (C) THIS SECTION DOES NOT AUTHORIZE A LOCAL GOVERNMENT SERVICE 9 PROVIDER TO REQUEST REIMBURSE MENT FROM A PRODUCER RESPONSIBILITY 10 ORGANIZATION FOR COS TS ASSOCIATED WITH C OMPOSTING MATERIALS THAT ARE 11 NOT PACKAGING COVERED MATERIALS, INCLUDING FOOD WASTE AND OTHER 12 ORGANIC MATERIALS . 13 9–2507. 14 (A) ON OR BEFORE JANUARY 1, 2029, AND EACH JANUARY 1 THEREAFTER , 15 A SERVICE PROVIDER S EEKING REIMBURSEMENT FOR SERVICES PROVIDE D UNDER 16 AN APPROVED PRODUCER RESPONSIBILITY PLAN UNDER § 9–2505 OF THIS 17 SUBTITLE SHALL REGIS TER WITH THE DEPARTMENT BY SUBMITT ING THE 18 FOLLOWING INFORMATIO N: 19 (1) THE CONTACT INFORMATION FOR AN INDIVIDUAL RE PRESENTING 20 THE SERVICE PROVIDER ; 21 (2) THE ADDRESS OF THE SE RVICE PROVIDER ; AND 22 (3) (I) IF APPLICABLE TO THE SERVICES PROVIDED , A REPORT OF 23 THE TOTAL AMOUNT BIL LED FOR COLLECTION F OR COVERED ENTITIES , 24 PROCESSING SERVICES, AND TRANSFER STATION OPERATIONS PROVIDED DURING 25 THE IMMEDIATELY PREC EDING CALENDAR YEAR . 26 (II) IF POSSIBLE, VALUES UNDER SUBPARA GRAPH (I) OF THIS 27 PARAGRAPH SHALL BE D ISAGGREGATED BY WHET HER THE VALUE IS FOR 28 COLLECTION, PROCESSING, OR TRANSFER. 29 (B) A SERVICE PROVIDER REC EIVING REIMBURSEMENT OR FUNDING 30 UNDER AN APPROVED PR ODUCER RESPONSIBILIT Y PLAN SHALL: 31 (1) AS APPLICABLE TO THE SERVICES OFFERED BY AND SERVICE 32 AREA OF THE SERVICE PROVIDER, PROVIDE COVERED SERV ICES FOR: 33 SENATE BILL 901 43 (I) COVERED MATERIALS INC LUDED ON THE LISTS 1 ESTABLISHED UNDER § 9–2508 OF THIS SUBTITLE; 2 (II) A REFILL SYSTEM ; OR 3 (III) REUSABLE COVERED MATE RIALS; 4 (2) REGISTER WITH THE DEPARTMENT UNDER SUBS ECTION (A) OF 5 THIS SECTION; 6 (3) SUBMIT INVOICES TO TH E PRODUCER RESPONSIBIL ITY 7 ORGANIZATION FOR REI MBURSEMENT FOR SERVI CES RENDERED , AS PROVIDED 8 UNDER AN APPROVED PR ODUCER RESPONSIBILIT Y PLAN; 9 (4) MEET PERFORMANCE STAN DARDS ESTABLISHED IN AN 10 APPROVED PRODUCER RE SPONSIBILITY PLAN UN DER § 9–2505 OF THIS SUBTITLE; 11 (5) ENSURE THAT COVERED M ATERIALS ARE SENT TO RESPONSIBLE 12 END MARKETS ; 13 (6) PROVIDE DOCUMENTATION TO THE PRODUCER RESP ONSIBILITY 14 ORGANIZATION ON THE AMOUNTS, COVERED MATERIAL TYP ES, AND WEIGHTS OF 15 COVERED MATERIALS BY COVERED SERVICE METH OD; 16 (7) DISPLAY THE SERVICE P ROVIDER’S PRICE, LESS THE 17 REIMBURSEMENT FROM T HE PRODUCER RESPONSI BILITY ORGANIZATION AS 18 DETERMINED UNDER § 9–2505 OF THIS SUBTITLE WHE N INVOICING CUSTOMER S; 19 AND 20 (8) OTHERWISE COMPLY WITH ALL OTHER APPLICABLE 21 REQUIREMENTS OF THI S SUBTITLE. 22 (C) (1) A SERVICE PROVIDER MAY DESIGNATE AS CONFIDE NTIAL ANY 23 PROPRIETARY INFORMAT ION PROVIDED TO : 24 (I) THE DEPARTMENT UNDER THIS SECTION; OR 25 (II) A PERSON DETERMINING R EIMBURSEMENT RATES U NDER § 26 9–2505 OF THIS SUBTITLE . 27 (2) INFORMATION DESIGNATE D AS CONFIDENTIAL UN DER THIS 28 SUBSECTION IS NOT SU BJECT TO DISCLOSURE UNDER TITLE 4 OF THE GENERAL 29 PROVISIONS ARTICLE (THE MARYLAND PUBLIC INFORMATION ACT), EXCEPT THAT 30 THE INFORMATION MAY BE DISCLOSED AS SUMM ARIZED OR AGGREGATED DATA IF 31 44 SENATE BILL 901 DOING SO DOES NOT DI RECTLY OR INDIRECTLY DISCLOSE THE PROPRIE TARY 1 INFORMATION OF ANY S PECIFIC FACILITY. 2 9–2508. 3 (A) (1) ON OR BEFORE JULY 1, 2027, THE DEPARTMENT SHALL DEVE LOP 4 A STATEWIDE LIST OF COVERED MATERIALS DE TERMINED TO BE RECYC LABLE OR 5 COMPOSTABLE THROUGH CURBSI DE RECYCLING PROGRAM S. 6 (2) COVERED MATERIALS IN THE LIST DEVELOPED U NDER 7 PARAGRAPH (1) OF THIS SUBSECTION S HALL BE COLLECTED : 8 (I) AT AN OPTIMAL LEVEL O F SERVICE AND CONVEN IENCE FOR 9 COVERED ENTITIES ; AND 10 (II) AT A MINIMUM , WHEREVER COLLECTION S ERVICES FOR 11 MIXED MUNICIPAL SOLI D WASTE ARE AVAILABL E. 12 (B) THE DEPARTMENT SHALL DEVE LOP THE LIST UNDER S UBSECTION (A) 13 OF THIS SECTION IN C ONSULTATION WITH : 14 (1) THE ADVISORY COUNCIL ; 15 (2) PRODUCER RESPONSIBILI TY ORGANIZATIONS ; 16 (3) SERVICE PROVIDERS ; 17 (4) LOCAL GOVERNMENTS ; AND 18 (5) OTHER INTERESTED PART IES. 19 (C) IN DEVELOPING THE LIS T UNDER SUBSECTION (A) OF THIS SECTION , 20 THE DEPARTMENT MAY CONSID ER THE FOLLOWING CRI TERIA: 21 (1) CURRENT AVAILABILITY OF RECYCLING AND COMPOSTING 22 COLLECTION SERVICES ; 23 (2) RECYCLING AND COMPOST ING PROCESSING INFRA STRUCTURE; 24 (3) CAPACITY AND TECHNOLO GY FOR SORTING COVER ED 25 MATERIALS; 26 (4) WHETHER A COVERED MAT ERIAL IS: 27 SENATE BILL 901 45 (I) OF A TYPE AND FORM TH AT IS REGULARLY SORT ED AND 1 AGGREGAT ED INTO DEFINED STRE AMS FOR RECYCLING PR OCESSES; OR 2 (II) INCLUDED IN A SPECIFI CATION OF THE INSTITUTE OF 3 SCRAP RECYCLING INDUSTRIES, OR A SUCCESSOR ORGAN IZATION; 4 (5) AVAILABILITY OF RESPO NSIBLE END MARKETS ; 5 (6) PRESENCE AND AMOUNT O F PROCESSING RESIDUALS, 6 CONTAMINATION , AND TOXIC SUBSTANCES ; 7 (7) QUANTITY OF COVERED M ATERIAL ESTIMATED TO BE AVAILABLE 8 AND RECOVERABLE ; 9 (8) PROJECTED FUTURE COND ITIONS FOR THE CRITE RIA UNDER 10 ITEMS (1) THROUGH (7) OF THIS SUBSECTION ; AND 11 (9) ANY OTHER CRITERIA OR FACTOR , AS DETERMINED BY THE 12 DEPARTMENT . 13 (D) (1) THE DEPARTMENT MAY AMEND A LIST COMPLETED UND ER THIS 14 SECTION AT ANY TIME . 15 (2) (I) THE DEPARTMENT SHALL PROV IDE AN AMENDED LIST 16 UNDER THIS SUBSECTIO N TO PRODUCER RESPON SIBILITY ORGANIZATIO NS WITHIN 17 A REASONABLE AMOUNT OF TIME, DETERMINED BY THE DEPARTMENT , AFTER 18 AMENDING THE LIST . 19 (II) ON RECEIPT OF AN AMEN DED LIST, A PRODUCER 20 RESPONSIBILITY ORGAN IZATION SHALL: 21 1. PROVIDE THE LIST TO S ERVICE PROVIDERS AS SOON 22 AS PRACTICABLE AFTER RECEIVING THE AMENDED LIST ; AND 23 2. WORK TO INCORPORATE C HANGES IN RELEVANT 24 SERVICE PROVIDER REI MBURSEMENT RATES WIT HIN 1 CALENDAR YEAR . 25 (E) (1) (I) A PRODUCER MAY REQUEST , ON A FORM PRESCRIBED BY 26 THE DEPARTMENT , THAT THE DEPARTMENT CLASSIFY O NE OR MORE TYPES OF 27 PACKAGING AS AN EXEM PT MATERIAL. 28 (II) THE DEPARTMENT SHALL SUBM IT A REQUEST RECEIVE D 29 UNDER THIS SUBSECTIO N TO THE ADVISORY CO UNCIL FOR RE VIEW AND COMMENT 30 BEFORE APPROVING OR DENYING THE REQUEST . 31 46 SENATE BILL 901 (2) SUBJECT TO PARAGRAPH (1)(II) OF THIS SUBSECTION , THE 1 DEPARTMENT MAY APPROV E THE REQUEST ONLY I F THE DEPARTMENT 2 DETERMINES THAT A SP ECIFIC FEDERAL OR STATE HEALTH AND SAFE TY 3 REQUIREMENT PREVEN TS THE PACKAGING FRO M BEING WASTE REDUCE D OR MADE 4 REUSABLE, RECYCLABLE , OR COMPOSTABLE . 5 (3) WITHIN 120 DAYS AFTER THE DATE ON WHICH THE DEPARTMENT 6 RECEIVES A REQUEST U NDER PARAGRAPH (1) OF THIS SUBSECTION , THE 7 DEPARTMENT SHALL : 8 (I) REVIEW AND APPRO VE OR DENY THE REQUE ST; OR 9 (II) REQUEST ADDITIONAL IN FORMATION FROM THE 10 PRODUCER. 11 (4) THE DEPARTMENT SHALL PUBL ISH AND UPDATE AS NE CESSARY 12 ON THE DEPARTMENT ’S WEBSITE A LIST OF MATERIALS EXEMPTED B Y REQUEST 13 UNDER THIS SUBSECTIO N. 14 (5) (I) AN EXEMPTION APPROVED PER A REQUEST UNDER THIS 15 SUBSECTION SHALL EXP IRE 2 YEARS AFTER THE DATE ON WHICH THE DEPARTMENT 16 APPROVES THE REQUEST . 17 (II) A PRODUCER MAY FILE A SUBSEQUENT REQUEST T HAT THE 18 DEPARTMENT CLASSIFY O NE OR MORE TYPES OF PACKAGING AS AN EXEM PT 19 MATERIAL AFTER THE EX PIRATION OF THE CLAS SIFICATION UNDER 20 SUBPARAGRAPH (I) OF THIS PARAGRAPH . 21 9–2507. 9–2509. 22 (A) BEGINNING MARCH 1, 2028 JULY 1, 2029, EACH PRODUCER OR 23 PRODUCER RESPONSIBIL ITY ORGANIZATION THA T HAS AN APPROVED PR ODUCER 24 RESPONSIBILITY PLAN ON FILE WITH TH E DEPARTMENT SHALL REPO RT ANNUALLY 25 TO THE DEPARTMENT ON THE PRO GRESS TOWARD MEETING PLAN REQUIREMENTS 26 AND GOALS FOR THE IM MEDIATELY PRECEDING CALENDAR YEAR . 27 (B) THE REPORT REQUIRED U NDER SUBSECTION (A) OF THIS SECTION 28 SHALL INCLUDE : 29 (1) A DETAILED DESCRIPTION OF THE REIMBURSEMENT METHODS 30 USED FOR COLLECTING , TRANSPORTING , AND PROCESSING PACKAGING COVERED 31 MATERIALS; 32 SENATE BILL 901 47 (2) (I) THE STATUS ON ACHIEVI NG THE PERFORMANCE G OALS 1 ESTABLISHED UNDER § 9–2505(C)(3) § 9–2505(C)(1)(III) OF THIS SUBTITLE; AND 2 (II) IF THE GOALS HAVE NOT BEEN ACHIEVED , A DESCRIPTION 3 OF THE ACTIONS PROPO SED TO ACHIEVE THE G OALS; 4 (3) THE AMOUNT OF EACH PACKAGING COVERED MATERIAL TYPE 5 COLLECTED IN THE STATE, INCLUDING THE METHOD OF DISPOSITION OF EA CH 6 PACKAGING M ATERIAL TYPE; 7 (4) THE TOTAL COST OF IMP LEMENTING THE PLAN , AS DETERMINED 8 BY AN INDEPENDENT FI NANCIAL AUDITOR , INCLUDING: 9 (I) A COPY OF THE WORK PRO DUCT OF THE INDEPEND ENT 10 FINANCIAL AUDITOR ; AND 11 (II) FINANCIAL STATEMENTS DETAILING ALL PAYMEN TS 12 RECEIVED AND ISSUED BY THE PRODUCERS COV ERED UNDER THE APPRO VED PLAN; 13 (5) SAMPLES OF ALL EDUCAT IONAL MATERIALS PROV IDED TO 14 CONSUMERS OR OTHER E NTITIES; 15 (6) A DETAILED DESCRIPTION OF THE ACTIONS TAKEN AND AN 16 EVALUATION OF THE ME THODS USED TO DISSEM INATE EDUCATIONAL MATER IALS, 17 INCLUDING RECOMMENDA TIONS, IF ANY, FOR HOW THE EDUCATIO NAL COMPONENT 18 OF THE PLAN CAN BE I MPROVED; 19 (7) A DETAILED DESCRIPTION OF INVESTMENTS MADE IN MARKET 20 DEVELOPMENT AND FOR IMPROVING REUSE , ORGANICS RECYCLING COMPOSTING , 21 AND RECYCLING INFRASTRUC TURE; 22 (8) PROOF OF A THIRD –PARTY AUDIT OF : 23 (I) THE REDUCTION IN PACKAGING COVERED MATERIALS 24 REPORTED; 25 (II) THE DATA USED TO DETE RMINE THE STATUS OF ACHIEVING 26 PERFORMANCE GOALS ; 27 (III) THE AMOUNT OF EACH PACKAGING COVERED MATERIAL 28 TYPE COLLECTED IN TH E STATE; AND 29 (IV) THE OVERALL REDEMPTIO N RATE AND RECYCLING RATE OF 30 BEVERAGE CONTAINERS IN THE STATE; AND 31 48 SENATE BILL 901 (9) ANY OTHER INFORMATION AS REQUIRED BY THE DEPARTMENT . 1 (C) WHEN PROVIDING THE DEPARTMENT WITH THE A NNUAL REPORT 2 REQUIRED UNDER THIS SECTION, A PRODUCER OR PRODUC ER RESPONSIBILITY 3 ORGANIZATION SHALL P AY TO THE DEPARTMENT THE DEPARTMENT ’S ESTIMATED 4 COSTS OF ADMINISTERI NG, OVERSEEING, AND ENFORCING THE PL AN FOR THE 1 5 YEAR IMMEDIATELY FOL LOWING THE ANNUAL RE PORT. 6 (D) FINANCIAL, PRODUCTION , OR SALES DATA REPORT ED TO THE 7 DEPARTMENT BY A PRODU CER OR PRODUCER RESP ONSIBILITY ORGANIZAT ION 8 SHALL BE KEPT CONFID ENTIAL BY THE DEPARTMENT AND MAY NO T BE SUBJECT TO 9 PUBLIC INSPECTION . 10 (E) SUBJECT TO SUBSECTION (D) OF THIS SECTION, THE REPORT SHALL BE 11 POSTED ON THE WEBSIT E OF THE DEPARTMENT AND THE PR ODUCER OR PRODUCER 12 RESPONSIBILITY ORGAN IZATION. 13 9–2508. 9–2510. 14 ANY PERSON PARTICIPAT ING IN A PRODUCER RE SPONSIBILITY PLAN IN 15 COMPLIANCE WITH THIS SUBTITLE IS IMMUNE F ROM LIABILITY UNDER STATE LAW 16 RELATING TO ANTITRUS T AND RESTRAINT OF T RADE FOR ANY COOPERA TED 17 ACTIVITIES ARISING O UT OF THE RECYCLING , REUSE, AND DISPOSA L OF PACKAGING 18 COVERED MATERIALS. 19 9–2509. 9–2511. 20 (A) THE DEPARTMENT SHALL ADOP T REGULATIONS TO CAR RY OUT THIS 21 SUBTITLE. 22 (B) REGULATIONS ADOPTED U NDER THIS SECTION : 23 (1) MAY ESTABLISH CRITERI A REGARDING PROVIDIN G BENEFITS TO 24 THE ENVIRONMENT AND MINIMIZING RISKS TO PUBLIC HEALTH AND WO RKER 25 HEALTH AND SAFETY ; AND 26 (2) SHALL ESTABLISH , OR REQUIRE A PRODUCE R RESPONSIBILITY 27 PLAN TO ESTABLISH , A PROCESS FOR VALIDA TING RESPONS IBLE END MARKETS . 28 9–2510. 9–2512. 29 SENATE BILL 901 49 (A) EXCEPT AS OTHERWISE P ROVIDED UNDER SUBSEC TIONS (B) AND (C) OF 1 THIS SECTION, THE PROVISIONS OF §§ 9–334 THROUGH 9–344 OF THIS TITLE APPLY 2 TO ENFORCE VIOLATION S OF: 3 (1) THIS SUBTITLE; 4 (2) ANY REGULATION ADOPTED UNDER THIS S UBTITLE; OR 5 (3) ANY ORDER ISSUED UNDE R THIS SUBTITLE. 6 (B) (1) A PRODUCER OR PRODUCER RESPONSIBILITY ORGAN IZATION 7 THAT VIOLATES THIS S UBTITLE IS SUBJECT T O: 8 (I) FOR A FIRST VIOLATION , AN ADMINISTRATIVE PENALTY OF 9 $5,000; 10 (II) FOR A SECOND VIOLATIO N, AN ADMINISTRATIVE PENALTY 11 OF $10,000; AND 12 (III) FOR A THIRD OR SUBSEQ UENT VIOLATION , A CIVIL PENALTY 13 OF $20,000. 14 (2) A PENALTY MAY NOT BE I MPOSED ON A PRODUCER UNDER THIS 15 SECTION UNLESS : 16 (I) THE DEPARTMENT FIRST ISSU ES A WRITTEN NOTICE OF 17 VIOLATION TO THE PRO DUCER; AND 18 (II) THE VIOLATION IS NOT CORRECTED WITHIN 60 DAYS AFTER 19 RECEIPT OF THE WRITT EN NOTICE. 20 (3) AFTER THE 60–DAY PERIOD SPECIFIED UNDER PARAGRAPH (2) 21 OF THIS SUBSECTION , EACH DAY THAT A VIOL ATION CONTINUES IS A SEPAR ATE 22 VIOLATION. 23 (C) IF, BASED ON THE ANNUAL REPORT SUBMITTED UND ER § 9–2507 § 24 9–2509 OF THIS SUBTITLE , THE PERFORMANCE GOAL S ESTABLISHED UNDER § 25 9–2505(C)(3) § 9–2505(C)(1)(III) OF THIS SUBTITLE HAV E NOT BEEN ACHIEVED , THE 26 DEPARTMENT MAY IMPOSE AN ADMINISTRATIVE PE NALTY, NOT TO EXCEED 27 $250,000, ON THE PRODUCER RESP ONSIBILITY ORGANIZAT ION. 28 (D) ANY PENALTY COLLECTED BY THE DEPARTMENT UNDER THIS SECTION 29 SHALL BE PAID INTO T HE STATE RECYCLING TRUST FUND ESTABLISHED UNDE R § 30 9–1707 OF THIS TITLE. 31 50 SENATE BILL 901 SECTION 2. AND BE IT FURTHER ENACTED, That, on or before December 1, 1 2025, each local government in the State shall file a feasibility plan with the Department 2 of the Environment that prioritizes the sale of recycled packaging materials back to 3 manufacturers that have a manufacturing facility in the State if a beverage container 4 deposit return program is enacted in the State, the Department of the Environment shall: 5 (1) coordinate the implementation of the beverage container deposit return 6 program in a manner that ensures compatibility with producer responsibility plans and 7 related provisions of law as enacted by Section 1 of this Act; and 8 (2) ensure that: 9 (i) materials covered in the beverage container deposit program are 10 exempt from producer responsibility plans; or 11 (ii) related financial obligations are reduced. 12 SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect June 13 1, 2025. 14 Approved: ________________________________________________________________________________ Governor. ________________________________________________________________________________ President of the Senate. ________________________________________________________________________________ Speaker of the House of Delegates.