Maryland Beverage Container Recycling Refund and Litter Reduction Program

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0331*

HOUSE BILL 331
M3 6lr1134
HB 232/25 – ENT & ECM CF 6lr1135
By: Delegates Terrasa, Lehman, Behler, Boafo, Charkoudian, Ebersole, Edelson,
Embry, Fair, Feldmark, Foley, Forbes, Guzzone, Healey, Hill, A. Johnson,
Kaufman, Lewis, Martinez, Moreno, Palakovich Carr, Ruth, Shetty,
Simmons, Solomon, Stewart, Taveras, Watson, White Holland, Williams,
Wims, Wu, and Ziegler
Introduced and read first time: January 19, 2026
Assigned to: Environment and Transportation and Economic Matters

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 Enviro nment, 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 beverag e 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
2 HOUSE BILL 331

facility managed by a county or municipal corporation to be credited toward meeting 1
certain recycling rates; establishing the Beverage Container Recycling Refund Grant 2
Program to evaluate the investments and policies necessary to achieve a certain 3
performance target, increase the reuse and recycling of beverage containers in the 4
State, increase the availability of public water fountains and refill stations in the 5
State, and reduce the volume of litter from beverage containers in the State; 6
requiring the Chesapeake Bay Trust to administer the Grant Program; requiring the 7
beverage container stewardship organization to provide certain payments to certain 8
facilities for a certain period of time for managing unredeemed beverage containers 9
in accordance with certain requirements; establishing the Redeemable Beverage 10
Container Recycling Refund Advisory Council to review certain reports, make 11
certain recommendations, and advise the Department on certain matters; providing 12
immunity from liability to a certain person under certain circumstanc es; and 13
generally relating to the Maryland Beverage Container Recycling Refund and Litter 14
Reduction Program. 15

BY repealing and reenacting, without amendments, 16
Article – Environment 17
Section 9–1701(a) and (q) and 9–1702(a) 18
Annotated Code of Maryland 19
(2014 Replacement Volume and 2025 Supplement) 20

BY repealing and reenacting, with amendments, 21
Article – Environment 22
Section 9–1702(d) and 9–1707(f) 23
Annotated Code of Maryland 24
(2014 Replacement Volume and 2025 Supplement) 25

BY adding to 26
Article – Environment 27
Section 9 –1737 through 9 –1756 to be under the new part “Part VI. Maryland 28
Beverage Container Recycling Refund and Litter Reduction Program” 29
Annotated Code of Maryland 30
(2014 Replacement Volume and 2025 Supplement) 31

SECTION 1. BE IT ENACTED BY THE GEN ERAL ASSEMBLY OF MARYLAND, 32
That the Laws of Maryland read as follows: 33

Article – Environment 34

9–1701. 35

(a) In this subtitle the following words have the meanings indicated. 36

(q) “Recycling” means any process in which recyclable materials are collected, 37
separated, or processed and returned to the marketplace in the form of raw materials or 38
products. 39
HOUSE BILL 331 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; 15

(6) Review and approve plans and annual reports, including the paint 16
stewardship assessme nt, 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 responsibility 19
advisory council established under § 9–2503 of this title, producer responsibility plans and 20
annual reports submitted in accordance with Subtitle 25 of this title; AND 21

(8) ADMINISTER THE MARYLAND BEVERAGE CONTAINER 22
RECYCLING REFUND AND LITTER REDUCTION PROGRAM ESTABLISHED U NDER § 23
9–1739 OF THIS SUBTITLE. 24

9–1707. 25

(f) (1) There is a State Recycling Trust Fund. 26

(2) The Fund shall consist of: 27

(i) The newsprint recycling incentive fee; 28

(ii) The telephone directory recycling incentive fee collected under § 29
9–1709 of this subtitle; 30
4 HOUSE BILL 331

(iii) The covered electronic device manufacturer registration fee 1
collected under § 9–1728 of this subtitle; 2

(iv) The Paint Stewardship Program plan and annual report review 3
fees collected under § 9–1733(b) and (h) of this subtitle; 4

(v) Any fees collected from producer respon sibility organizations 5
under § 9–1702.2 of this subtitle or Subtitle 25 of this title; 6

(VI) FEES AND PENALTIES TRANSFERRED TO THE FUND UNDER 7
§§ 9–1744 AND 9–1755 OF THIS SUBTITLE; 8

[(vi)] (VII) All fines and penalties collected under this subtitle and § 9
9–2512 of this title; 10

[(vii)] (VIII) Money appropriated in the State budget to the Fund; and 11

[(viii)] (IX) Any other money from any other source accepted for the 12
benefit of the Fund. 13

(3) The Secretary shall administer the Fund. 14

(4) The Treasurer shall hold the Fund separately and the Comptroller shall 15
account for the Fund. 16

(5) (I) [At] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 17
PARAGRAPH, AT the end of each fiscal year, any unspent or unencumbered balance in the 18
Fund that exceeds $2,000,000 shall revert to the General Fund of the State in accordance 19
with § 7–302 of the State Finance and Procurement Article. 20

(II) THE FUNDS TRANSFERRED TO T HE FUND UNDER 21
PARAGRAPH (2)(VI) OF THIS SUBSECTION A RE NOT SUBJECT TO § 7–302 OF THE 22
STATE FINANCE AND PROCUREMENT ARTICLE AND MAY NOT R EVERT TO THE 23
GENERAL FUND OF THE STATE. 24

(6) In accordance with the State budget, the Fund shall be used only: 25

(i) To provide grants to the counties to be used by the counties to 26
develop and implement local recycling plans; 27

(ii) To provide grants to counties that have addressed methods for 28
the separate collection and recycling of covered electronic devices in acco rdance with § 29
9–1703(c)(1) of this subtitle; 30

HOUSE BILL 331 5

(iii) To provide grants to municipalities to be used by the 1
municipalities to implement local covered electronic device recycling programs; 2

(iv) To cover the costs of the Paint Stewardship Program plan review 3
under § 9–1733(b) of this subtitle, the annual report review under § 9–1733(h) of this 4
subtitle, and associated costs for Program compliance oversight; 5

(v) In accordance with paragraph (7) of this subsection, to cover the 6
costs of a statewide recycling needs assessment conducted under § 9–1702.2 of this subtitle; 7

(vi) In accordance with paragraph (7) of this subsection, to cover the 8
costs of producer responsibility plan review, oversight, and enforcement under Subtitle 25 9
of this title; [and] 10

(VII) IN ACCORDANCE WITH PA RAGRAPH (8) OF THIS 11
SUBSECTION, TO COVER THE COSTS O F ADMINISTERING , MONITORING, 12
EVALUATING, AND ENFORCING THE MARYLAND BEVERAGE CONTAINER 13
RECYCLING REFUND AND LITTER REDUCTION PROGRAM ESTABLISHED U NDER § 14
9–1739 OF THIS SUBTITLE; AND 15

[(vii)] (VIII) To carry out the purposes of the land management 16
administration. 17

(7) (i) There is a separate account within the Fund[. 18

(ii) The separate account shall consist] CONSISTING of: 19

1. Any fees collected from producer responsibility 20
organizations under § 9–1702.2 of this subtitle or Subtitle 25 of this title; and 21

2. All fines and penalties collected under § 9–2512 of this 22
title. 23

[(iii)] (II) The separate account shall be used only for the costs of 24
statewide rec ycling needs assessments conducted under § 9–1702.2 of this subtitle and 25
producer responsibility plan review, oversight, and enforcement under Subtitle 25 of this 26
title. 27

(8) (I) THERE IS A SEPARATE A CCOUNT WITHIN THE FUND 28
CONSISTING OF THE FUNDS SPECIFIED IN PARAGRAPH (2)(VI) OF THIS SUBSECTION. 29

(II) THE SEPARATE ACCOUNT SHALL BE USED ONLY: 30

1. TO C OVER THE COSTS OF AD MINISTERING, 31
MONITORING, EVALUATING, AND ENFORCING THE MARYLAND BEVERAGE 32
6 HOUSE BILL 331

CONTAINER RECYCLING REFUND AND LITTER REDUCTION PROGRAM 1
ESTABLISHED UNDER § 9–1739 OF THIS SUBTITLE; 2

2. TO C OMPENSATE LOCAL GOVE RNMENTS IN 3
ACCORDANCE WITH § 9–1748 OF THIS SUBTITLE; AND 4

3. TO M EET OR EXCEED THE PE RFORMANCE TARGETS 5
ESTABLISHED UNDER § 9–1740 OF THIS SUBTITLE. 6

[(8)] (9) (i) The Treasurer shall invest the money in the Fund in the 7
same manner as other State money may be invested. 8

(ii) Any investment earnings of the Fund shall be credited to the 9
General Fund of the State. 10

9–1735. RESERVED. 11

9–1736. RESERVED. 12

PART VI. MARYLAND BEVERAGE CONTAINER RECYCLING REFUND AND LITTER 13
REDUCTION PROGRAM. 14

9–1737. 15

(A) IN THIS PART THE FOLL OWING WORDS HAVE THE MEANINGS 16
INDICATED. 17

(B) (1) “ACCOUNT–BASED BULK PROCESSIN G PROGRAM ” MEANS A 18
PROGRAM THAT: 19

(I) UTILIZES A SYSTEM OF CUSTOMER AC COUNTS AND A 20
MECHANISM TO ASSOCIATE REDEEMED REDEEMABLE BEVERAGE CONTAINERS WITH 21
THE APPROPRIATE CUSTOMER ACCOUNT; 22

(II) CONSOLIDATES THE REDE EMED REDEEMABLE BEVE RAGE 23
CONTAINERS FOR BULK SORTING WHILE COLLEC TING DATA ABOUT THE 24
CONTAINERS; 25

(III) FULLY PREPARES REDEEMED REDEEMABLE BEVERAGE 26
CONTAINERS FOR SALE TO RECYCLERS; AND 27

(IV) COLLECTS DATA TO SUPP ORT AN ACCOUNTING OF THE 28
REDEEMABLE BEVERAGE CONTAINERS, INCLUDING THE DEPOSI TS, FEES, AND 29
POUNDS OF MATERIAL PRODUCED THAT ARE ASSOCIATED WITH THE REDEEMABLE 30
HOUSE BILL 331 7

BEVERAGE CONTAINERS. 1

(2) “ACCOUNT–BASED BULK PROCESSIN G PROGRAM ” INCLUDES A 2
BAG DROP PROGRAM IF THE BAG DROP PROGRAM IS A COMPONENT OF TH E 3
ACCOUNT–BASED BULK PROCESSING PROGRAM. 4

(C) “ADVISORY COUNCIL” MEANS THE REDEEMABLE BEVERAGE 5
CONTAINER RECYCLING REFUND ADVISORY COUNCIL ESTABLISHED U NDER § 6
9–1753 OF THIS SUBTITLE. 7

(D) “BAG DROP PROGRAM” MEANS A PROGRAM THAT ALLOWS A CUSTOMER 8
TO: 9

(1) DROP OFF EMPTY REDEEMABLE BEVERAGE CONTAINERS IN A BAG 10
OR OTHER RECEPTACLE AT ONE OR MORE LOCATIONS FOR A REFUND; AND 11

(2) HAVE THE CORRESPONDING REFUND PLACED INTO AN ACCOUNT 12
HELD FOR THE BENEFIT OF THE CUSTOMER IN A MANNER THAT ALLOWS T HE 13
CUSTOMER TO OBTAIN T HE REFUND OR REFUND RECEIPT WITHIN A SPE CIFIED 14
NUMBER OF DAYS AFTER THE DROP–OFF. 15

(E) (1) “BEVERAGE” MEANS ANY DRINKABLE LIQUID INTENDED FOR 16
HUMAN ORAL CONSUMPTION. 17

(2) “BEVERAGE” DOES NOT INCLUDE: 18

(I) DRUGS REGULATED UNDER THE FEDERAL FOOD, DRUG, 19
AND COSMETIC ACT; AND 20

(II) INFANT FORMULA. 21

(F) (1) “BEVERAGE CONTAINER ” MEANS A BOTTL E, CAN, OR OTHER 22
CONTAINER THAT: 23

(I) HAS BEEN SEALED BY A MANUFACTURER; 24

(II) IS MADE OF GLASS, METAL, OR PLASTIC; AND 25

(III) AT THE TIME OF SALE , CONTAINS 3 LITERS OR LESS OF A 26
BEVERAGE. 27

(2) “BEVERAGE CONTAINER” DOES NOT INCLUDE: 28

8 HOUSE BILL 331

(I) A CARTON; 1

(II) A POUCH; OR 2

(III) ASEPTIC PACKAGING. 3

(G) “BEVERAGE CONTAINER RE DEMPTION AND PROCESS ING METHOD ” 4
MEANS A MANUAL OR TE CHNOLOGICAL METHOD F OR PROPERLY COLLECTI NG, 5
IDENTIFYING, COUNTING, OR PROCESSING EMPTY REDEEMABLE BEVERAGE 6
CONTAINERS FOR REDEMPTION. 7

(H) “BEVERAGE CONTAINER ST EWARDSHIP ORGANIZATI ON” MEANS A 8
NONPROFIT ORGANIZATION THAT IS: 9

(1) EXEMPT FROM TAXATION UNDER § 501(C)(3) OF THE INTERNAL 10
REVENUE CODE; 11

(2) CREATED BY PRODUCERS TO IMPLEMENT A BEVER AGE 12
CONTAINER STEWARDSHIP PLAN; AND 13

(3) APPROVED BY THE DEPARTMENT IN ACCORDANCE WITH § 9–1745 14
OF THIS SUBTITLE. 15

(I) “BEVERAGE CONTAINER ST EWARDSHIP PLAN ” MEANS A PLAN 16
SUBMITTED TO THE DEPARTMENT UNDER § 9–1746 OF THIS SUBTITLE. 17

(J) “CHESAPEAKE BAY TRUST” MEANS T HE CHESAPEAKE BAY TRUST 18
ESTABLISHED UNDER § 8–1902 OF THE NATURAL RESOURCES ARTICLE. 19

(K) “DEPOSIT INITIATOR” MEANS THE FIRST DIST RIBUTOR TO COLLECT A 20
DEPOSIT ON A BEVERAGE CONTAINER SOLD IN THE STATE. 21

(L) (1) “DISTRIBUTOR” MEANS A PERSON THAT SELLS BEV ERAGES IN 22
REDEEMABLE BEVERAGE CONTAINERS TO A RETAILER IN THE STATE. 23

(2) “DISTRIBUTOR” INCLUDES A PERSON THAT MANUFACTURES AND 24
SELLS BEVERAGES IN REDEEMABLE BEVERAGE CONTAINERS TO A RETAILER IN THE 25
STATE. 26

(3) “DISTRIBUTOR” DOES NOT INCLUDE AIR LINES O R SHIPPING 27
COMPANIES THAT TRANSPORT REDEEMABLE BEVERAGE CONTAINERS. 28

(M) “GRANT PROGRAM” MEANS THE BEVERAGE CONTAINER RECYCLING 29
HOUSE BILL 331 9

REFUND GRANT PROGRAM ESTABLISHED UNDER § 9–1750 OF THIS SUBTITLE. 1

(N) “LINE BREAKAGE” MEANS A BEVERAGE CONTAINER THAT: 2

(1) BECOMES DEFECTIVE OR DAMAGED DURING MANUFACTURING; 3

(2) IS NOT INTENDED TO BE SOLD; AND 4

(3) IS NOT ELIGIBLE FOR REDEMPTION. 5

(O) “MARYLAND–SPECIFIC UPC BARCODE” MEANS A UNIVERSAL PRODUCT 6
CODE THAT IS: 7

(1) UNIQUE TO BEVERAGE CONTAINERS SOLD IN THE STATE; AND 8

(2) USED TO DETER FRAUD A ND ENSURE THE LEGITI MATE 9
REDEMPTION OF REDEEMABLE BEVERAGE CONTAINERS. 10

(P) “MATERIAL RECOVERY FACILITY” MEANS A FACILITY LOCATED IN THE 11
STATE THAT COLLECTS , COMPACTS, REPACKAGES, SORTS, OR PROCESSES 12
SOURCE–SEPARATED MATERIALS FOR TRANSPORTATION AND RECYCLING. 13

(Q) (1) “ON–PREMISES SELLER” MEANS A PERSON THAT SELLS FILLED 14
AND UNOPENED REDEEMA BLE BEVERAGE CONTAIN ERS FOR ON –PREMISES 15
CONSUMPTION. 16

(2) “ON–PREMISES SELLER” INCLUDES: 17

(I) BARS; 18

(II) HOTELS; 19

(III) RESTAURANTS; 20

(IV) SPORTING VENUES; 21

(V) ENTERTAINMENT VENUES; AND 22

(VI) GAMING VENUES. 23

(R) “PERFORMANCE TARGETS” MEANS THE TARGETS ESTABLISHED UNDER 24
§ 9–1740 OF THIS SUBTITLE. 25

10 HOUSE BILL 331

(S) (1) “PRODUCER” MEANS A PERSON RESPO NSIBLE FOR COMPLYING 1
WITH THE REQUIREMENTS UNDER THIS PART. 2

(2) “PRODUCER” INCLUDES A FRANCHISO R OF A FRANCHISE 3
LOCATED IN THE STATE. 4

(3) “PRODUCER” DOES NOT INCLUDE: 5

(I) THE STATE, A COUNTY , A MUNICIPAL CORPORAT ION, OR 6
ANY OTHER POLITICAL SUBDIVISION OF THE STATE; 7

(II) A CHARITABLE ORGANIZAT ION THAT IS TAX –EXEMPT 8
UNDER § 501(C)(3) OF THE INTERNAL REVENUE CODE; 9

(III) A SOCIAL WELFARE ORGAN IZATION THAT IS TAX –EXEMPT 10
UNDER § 501(C)(4) OF THE INTERNAL REVENUE CODE; 11

(IV) A FRANCHISEE THAT OPER ATES A FRANCHISE IN T HE 12
STATE; 13

(V) A PERSON THAT ANNUALLY SELLS, OFFERS FOR SALE , 14
DISTRIBUTES, OR IMPORTS INTO THE COUNTRY FOR SALE IN THE STATE FEWER 15
THAN 1,000 REDEEMABLE BEVERAGE CONTAINERS; OR 16

(VI) A PERSON THAT ANNUALLY SELLS, OFFERS FOR SALE , OR 17
DISTRIBUTES IN THE STATE REDEEMABLE BEVE RAGE CONTAINERS THAT IN 18
AGGREGATE GENERATE LESS THAN $5,000,000 EACH YEAR IN GLOBAL REVENUE. 19

(T) “PROGRAM” MEANS THE MARYLAND BEVERAGE CONTAINER 20
RECYCLING REFUND AND LITTER REDUCTION PROGRAM ESTABLISHED U NDER § 21
9–1739 OF THIS SUBTITLE. 22

(U) “RECYCLING RATE ” MEANS THE NUMBER OF NONREFILLABLE 23
REDEEMABLE BEVERAGE CONTAINERS SOLD IN T HE STATE THAT ARE RECYCL ED 24
SHOWN AS A PERCENTAG E OF ALL NONREFILLAB LE REDEEMABLE BEVERA GE 25
CONTAINERS SOLD IN THE STATE. 26

(V) “REDEEM” MEANS THE RETURN OF AN EMPTY REDEEMABLE BEVERAGE 27
CONTAINER IN EXCHANGE FOR A REFUND, A VOUCHER FOR A REFUND, OR A CREDIT 28
TO AN ACCOUNT FOR NOT LESS THAN THE REFUND VALUE. 29

(W) “REDEEMABLE BEVERAGE C ONTAINER” MEANS A BEVERAGE 30
CONTAINER THAT, AT THE TIME OF SALE: 31
HOUSE BILL 331 11

(1) CONTAINS 3 LITERS OR LESS OF A BEVERAGE; 1

(2) BEARS A UNIVERSAL PRODUCT CODE; AND 2

(3) MAY BEAR A MARYLAND–SPECIFIC UPC BARCODE FOR THE 3
PURPOSE OF ENSURING LEGITIMATE REDEMPTION AND DETERRING FRAUD. 4

(X) “REDEMPTION FACILITY” MEANS A FACILITY THAT: 5

(1) ACCEPTS EMPTY BEVERAGE CONTAINERS FROM A CONSUMER, A 6
RETAILER, OR BOTH; 7

(2) COLLECTS, SORTS, AND COUNTS EMPTY BEVERAGE CONTAINERS; 8

(3) REFUNDS THE REFUND VA LUE OF EMPTY REDEEMA BLE 9
BEVERAGE CONTAINERS IN CASH , WITH A VOUCHER , OR AS A CREDIT TO AN 10
ACCOUNT FOR NOT LESS THAN THE REFUND VALU E OF THE REDEEMABLE 11
BEVERAGE CONTAINER; AND 12

(4) IS LICENSED UNDER § 9–1742 OF THIS SUBTITLE. 13

(Y) “REDEMPTION RATE ” MEANS THE PERCENTAGE OF REDEEMABLE 14
BEVERAGE CONTAINERS SOLD IN THE STATE THA T ARE REDEEMED FOR T HE 15
DEPOSIT VALUE. 16

(Z) “REFILLABLE” MEANS A BEVERAGE CONTAINER THAT IS DESIGNED AND 17
INTENDED TO BE REUSE D AS A BEVERAGE CONT AINER AFTER BEING US ED BY A 18
CONSUMER WITHOUT THE NEED FOR REMANUFACTURING. 19

(AA) (1) “RETAILER” MEANS A PERSON THAT ENGAGES IN THE SALE OF 20
REDEEMABLE BEVERAGE CONTAINERS TO A CONSUMER IN THE STATE. 21

(2) “RETAILER” INCLUDES A PERSON THAT ENGAGES IN THE SALE OF 22
REDEEMABLE BEVERAGE CONTAINERS: 23

(I) THROUGH A VENDING MACHINE; OR 24

(II) ONLINE FOR HOME OR OFFICE DELIVERY. 25

(BB) “REVERSE VENDING MACHINE” MEANS AN AUTOMATED DEVICE THAT: 26

(1) ACCEPTS ONE OR MORE T YPES OF EMPTY REDEEM ABLE 27
12 HOUSE BILL 331

BEVERAGE CONTAINERS; 1

(2) USES A LASER SCANNER , AN OPTICAL SENSOR , A 2
MICROPROCESSOR, OR OTHER TECHNOLOGY TO ACCURATELY RECOGNIZE A 3
BEVERAGE CONTAINER’S UNIVERSAL PRODUCT CODE TO DETERMINE WHETHER THE 4
CONTAINER IS A REDEEMABLE BEVERAGE CONTAINER; 5

(3) ISSUES A REDEEMABLE C REDIT SLIP FOR THE R EDEEMABLE 6
BEVERAGE CONTAINER’S REFUND VALUE; 7

(4) SEPARATES REDEEMABLE BEVERAGE CONTAINERS FROM 8
CONTAINERS THAT ARE NOT REDEEMABLE; 9

(5) USES MECHANICAL COMPA CTION TO CANCEL REDE EMABLE 10
BEVERAGE CONTAINERS THAT HAVE BEEN REDEEMED; AND 11

(6) COMPILES INFORMATION REGARDING THE REDEEM ABLE 12
BEVERAGE CONTAINERS THAT HAVE BEEN REDEEMED, INCLUDING THE NUMBER OF 13
REDEEMABLE BEVERAGE CONTAINERS REDEEMED. 14

(CC) (1) “UNIVERSAL PRODUCT COD E” OR “UPC” MEANS A STANDARD 15
BARCODE THAT ENCODES A NUMBER UNIQUELY AS SIGNED TO A PRODUCT FOR 16
IDENTIFICATION OF THE PRODUCT. 17

(2) “UNIVERSAL PRODUCT CODE” OR “UPC” INCLUDES: 18

(I) ANY INDUSTRY–ACCEPTED BARCODE USE D FOR PRODUCT 19
IDENTIFICATION PURPOSES; AND 20

(II) A EUROPEAN ARTICLE NUMBER. 21

9–1738. 22

IT IS THE INTENT OF THE GENERAL ASSEMBLY TO: 23

(1) REDUCE THE VOLUME OF LITTER AND PLASTIC POLLUTION FROM 24
BEVERAGE CONTAINERS IN THE STATE BY ACHIEVING A REDEMPTION RATE OF A T 25
LEAST 90% FOR THE APPROXIMATEL Y 5,500,000,000 SINGLE–USE BEVERAGE 26
CONTAINERS SOLD ANNUALLY IN THE STATE; 27

(2) PROVIDE A SOURCE OF HIGH–QUALITY, FOOD–GRADE MATERIALS 28
FOR USE AS RECYCLED CONTENT IN BEVERAGE AND FOOD CONTAINERS; 29

HOUSE BILL 331 13

(3) REDUCE THE VOLUME OF BEVERAGE CONTAINERS THAT ARE 1
LANDFILLED OR INCINERATED IN THE STATE; 2

(4) REDUCE THE COSTS OF L ITTER AND BEVERAGE C ONTAINER 3
COLLECTION, RECYCLING, AND DISPOSAL INCURRE D BY TAXPAYERS , COUNTIES, 4
AND MUNICIPAL CORPOR ATIONS BY MAKING PRO DUCERS OF BEVERAGE 5
CONTAINERS RESPONSIB LE FOR THE RECOVERY , RECYCLING, AND REUSE OF 6
BEVERAGE CONTAINERS; 7

(5) PROVIDE INCENTIVES FO R INCREASING THE USE OF REUSABLE 8
AND REFILLABLE BEVERAGE CONTAINERS; AND 9

(6) REDUCE GREENHOUSE GAS EMISSIONS ASSOCIATED WITH THE 10
PRODUCTION, TRANSPORTATION, PROCESSING, AND WASTE DISPOSAL O F 11
SINGLE–USE BEVERAGE CONTAINERS SOLD IN THE STATE. 12

9–1739. 13

THERE IS A MARYLAND BEVERAGE CONTAINER RECYCLING REFUND AND 14
LITTER REDUCTION PROGRAM IN THE DEPARTMENT. 15

9–1740. 16

PERFORMANCE TARGETS FOR THE PROGRAM ARE AS FOLLOWS: 17

(1) A 70% REDEMPTION RATE BY DECEMBER 31, 2030; 18

(2) A 90% REDEMPTION RATE BY DECEMBER 31, 2033; 19

(3) BY DECEMBER 31, 2028, ATTAINMENT OF ALL CO NVENIENCE 20
STANDARDS IDENTIFIED BY THE DEPARTMENT UNDER § 9–1752 OF THIS SUBTITLE; 21
AND 22

(4) BY DECEMBER 31, 2038, AT LEAST 10% OF ALL BEVERAGE 23
CONTAINERS SOLD IN THE STATE ARE RETURNED AND REFILLED. 24

9–1741. 25

(A) (1) SUBJECT TO PARAGRAPHS (2) AND (3) OF THIS SUBSECTION, 26
BEGINNING JANUARY 1, 2029, EACH REDEEMABLE BEVERAGE CONTAINER SOLD IN 27
THE STATE SHALL INCLUDE A DEPICTION OF THE FOLLOWING INFORMATION: 28

(I) THE WORD “MARYLAND” OR THE LETTERS “MD”; AND 29
14 HOUSE BILL 331

(II) 1. FOR REDEEMABLE BEVERA GE CONTAINERS WITH A 1
VOLUME OF 24 FLUID OUNCES OR LESS, A REFUND VALUE OF 10 CENTS; OR 2

2. FOR REDEEMABLE BEVERA GE CONTAINERS WITH A 3
VOLUME OF MORE THAN 24 FLUID OUNCES, A REFUND VALUE OF 15 CENTS. 4

(2) THE DEPARTMENT MAY ADJUST THE REFUND VALUES SPECIFIED 5
IN PARAGRAPH (1) OF THIS SUBSECTION: 6

(I) IF THE DEPARTMENT DETERMINES ALTERING THE REFUND 7
VALUES IS NECESSARY TO MEET OR EXCEED PERFORMANCE TARGETS; OR 8

(II) AT THE REQUEST OF A B EVERAGE CONTAINER 9
STEWARDSHIP ORGANIZATION. 10

(3) BEGINNING JANUARY 1, 2034, THE DEPARTMENT SHALL 11
INCREASE THE REFUND VALUES SPECIFIED IN PARAGRAPH (1) OF THIS SUBSECTION 12
BY 5 CENTS IF THE DEPARTMENT DETERMINES THAT FOR 2 CONSECUTIVE 13
CALENDAR YEARS THE R EDEMPTION RATE WAS L ESS THAN 90% OF THE TOTAL 14
NUMBER OF BEVERAGE CONTAINERS SOLD IN THE STATE. 15

(B) A BEVERAGE CONTAINER DEPICTING THE INFORMATION SPECIFIED IN 16
SUBSECTION (A) OF THIS SECTION MAY NOT BE SOLD TO A CON SUMER BEFORE 17
JANUARY 1, 2029. 18

(C) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 19
BEGINNING JANUARY 1, 2029: 20

(I) THE WHOLESALE PRICE AND THE RETAIL PRICE OF A FULL 21
REDEEMABLE BEVERAGE CONTAINER SHALL INCLUDE THE REFUND VALUE OF THE 22
REDEEMABLE BEVERAGE CONTAINER; AND 23

(II) A RETAILER SHALL INCLU DE ON A CUSTOMER ’S SALES 24
RECEIPT THE REFUND V ALUE OF A REDEEMABLE BEVERAGE CONTAINER SOLD BY 25
THE RETAILER TO THE CUSTOMER. 26

(2) THE RETAIL PRICE OF A FULL REDEEMABLE BEVE RAGE 27
CONTAINER SOLD BY AN ON–PREMISES SELLER MAY NOT INCLUDE THE REFU ND 28
VALUE OF THE REDEEMABLE BEVERAGE CONTAINER. 29

9–1742. 30

HOUSE BILL 331 15

(A) (1) THE PROGRAM SHALL PROVIDE A RANG E OF OPTIONS FOR 1
CUSTOMERS TO CONVENI ENTLY REDEEM EMPTY R EDEEMABLE BEVERAGE 2
CONTAINERS FOR THE FULL REFUND VALUE, INCLUDING: 3

(I) AT A RETAILER ’S PLACE OF BUSINESS THROUGH DIRECT 4
TAKE–BACK BY THE RETAILER , REVERSE VENDING MACH INES, A BAG DROP 5
PROGRAM, OR OTHER REDEMPTION METHODS; 6

(II) DEDICATED AND CONVENI ENTLY LOCATED REDEMP TION 7
FACILITIES OPERATED BY RETAILERS , PUBLIC ENTITIES , OR THE BEVERAGE 8
CONTAINER STEWARDSHIP ORGANIZATION; AND 9

(III) PLACING REDEEMABLE BE VERAGE CONTAINE R 10
REDEMPTION AND PROCESSING METHODS, SUCH AS REVERSE VENDING MACHINES, 11
BAG DROP PROGRAMS , AND ACCOUNT –BASED BULK PROCESSIN G PROGRAMS , IN 12
AREAS: 13

1. WITH A HIGH NUMBER OF PEDESTRIANS; AND 14

2. WHERE INDIVIDUALS PUR CHASE OR USE BEVERAG E 15
CONTAINERS. 16

(2) THE PROGRAM SHALL PROVIDE A RANGE OF OPTIONS F OR 17
ON–PREMISES SELLERS TO CONVENIENTLY REDEEM EMPTY REDEEMABLE 18
BEVERAGE CONTAINERS FOR THE FULL REFUND VALUE, INCLUDING: 19

(I) AN ACCOUNT –BASED REFUND ISSUED BY THE BEVERAGE 20
CONTAINER STEWARDSHI P ORGANI ZATION OR ITS AGENTS FOLLOWING THE 21
COLLECTION OF EMPTY REDEEMABLE BEVERAGE CONTAINERS BY THE BE VERAGE 22
CONTAINER STEWARDSHIP ORGANIZATION OR ITS AGENTS FROM THE ON–PREMISES 23
SELLER; OR 24

(II) AN ACCOUNT–BASED REFUND ISSUED BY THE OPERATOR OF 25
A BAG DROP PROGRAM. 26

(B) (1) A PERSON SHALL APPLY TO THE DEPARTMENT FOR A LICENSE TO 27
OPERATE A REDEMPTION FACILITY IN THE STATE. 28

(2) THE DEPARTMENT SHALL DEVE LOP STANDARDS AND A 29
LICENSING PROCESS FO R THE ESTABLISHMENT AND OPERATION OF RED EMPTION 30
FACILITIES. 31

(C) SUBJECT TO SUBSECTION (D) OF THIS SECTION , A REDEMPTION 32
16 HOUSE BILL 331

FACILITY SHALL ACCEP T ALL TYPES OF EMPTY REDEEMABLE BEVERAGE 1
CONTAINERS FOR REDEMPTION. 2

(D) A RETAILER OR REDEMPTI ON FACILITY MAY REFU SE TO ACCEPT AN 3
EMPTY REDEEMABLE BEVERAGE CONTAINER THAT: 4

(1) IS DIRTY; 5

(2) IS BROKEN; 6

(3) CONTAINS MATERIAL FOR EIGN TO THE NORMAL C ONTENTS OF 7
THE BEVERAGE CONTAINER; OR 8

(4) THE RETAILER OR REDEM PTION FACILITY BELIE VES WAS NOT 9
SOLD IN THE STATE. 10

(E) (1) THIS SUBSECTION APPLIES TO A RETAILER WITH AT LEAST 3,000 11
SQUARE FEET OF SALES FLOOR SPACE AND AT L EAST 150 SQUARE FEET OF SHELF 12
SPACE DEDICATED TO THE DISPLAY OF REDEEMABLE BEVERAGE CONTAINERS. 13

(2) SUBJECT TO SUBSECTION (D) OF THIS SECTION , A RETAILER 14
SHALL: 15

(I) ESTABLISH AND MAINTAI N A DEDICATED A REA AT THE 16
RETAILER’S PLACE OF BUSINESS TO ACCEPT EMPTY REDE EMABLE BEVERAGE 17
CONTAINERS; 18

(II) ACCEPT AT THE RETAILE R’S PLACE OF BUSINESS ANY 19
EMPTY REDEEMABLE BEV ERAGE CONTAINERS RET URNED FOR REDEMPTION 20
DURING THE RETAILER’S BUSINESS HOURS; AND 21

(III) PAY TO THE REDEEMER T HE REFUND VALUE FOR EACH 22
EMPTY REDEEMABLE BEVERAGE CONTAINER REDEEMED. 23

(3) RETAILERS MAY MEET THE REQUIREMENTS IN PARAGRAPH (2) OF 24
THIS SUBSECTION THROUGH VARIOUS METHODS, INCLUDING: 25

(I) SUPPLEMENTING THE MANUAL COLLECTION AND STORING 26
OF REDEEMED REDEEMAB LE BEVERAGE CONTAINE RS WITH A REVERSE VE NDING 27
MACHINE, A BAG DROP PROGRAM , OR OTHER COUNTING AN D SORTING METHODS ; 28
AND 29

(II) GROUPING BEVERAGE CON TAINER REDEMPTION AN D 30
HOUSE BILL 331 17

PROCESSING METHODS WITH THOSE OF OTHER RETAILERS IF: 1

1. THE BEVERAGE CONTAINE R STEWARDSHIP 2
ORGANIZATION APPROVES THE PROPOSAL; AND 3

2. THE RETAILERS PARTICI PATING IN THE GROUPE D 4
METHODS PROVIDE CONS ISTENT SERVICE , MARKETING, AND SITE REDEMPTION 5
LOCATIONS THAT COMPL Y WITH DISTANCE PROV ISIONS DETERMINED BY THE 6
DEPARTMENT. 7

(4) A RETAILER WITHIN AN A REA THAT MEETS THE C ONVENIENCE 8
STANDARDS ESTABLISHE D BY THE DEPARTMENT UNDER § 9–1752 OF THIS 9
SUBTITLE MAY BE EXEMPT FROM THE REQUIREMENTS OF THIS SUBSECTION IF THE 10
RETAILER: 11

(I) IS LOCATED IN CLOSE P ROXIMITY TO A REDEMPTION 12
FACILITY IN THAT AREA; AND 13

(II) SHARES THE COST OF TH E OPERATION OF THE 14
REDEMPTION FACILITY WITH THE BEVERAGE CO NTAINER STEWARDSHIP 15
ORGANIZATION. 16

(5) THE DEPARTMENT MAY: 17

(I) SET STANDARDS FOR THE NUMBER OF REVERSE VE NDING 18
MACHINES REQUIRED FOR RETAILERS LOCATED IN UNDERSERVED COMMUNITIES; 19
AND 20

(II) ESTABLISH A CAP FOR T HE NUMBER OF EMPTY 21
REDEEMABLE BEVERAGE CONTAINERS THAT MAY BE REDEEMED PER VISI T AT 22
SMALL RETAILERS. 23

(F) SUBJECT TO SUBSECTION (D) OF THIS SECTION, A RETAILER WITH LESS 24
THAN 3,000 SQUARE FEET OF SALES FLOOR SPACE OR LESS THAN 150 SQUARE FEET 25
OF SHELF SPACE DEDIC ATED TO THE DISPLAY OF REDEEMABLE BEVERA GE 26
CONTAINERS SHALL: 27

(1) PROVIDE ON–SITE CASH REFUNDS FOR THE REDEMPTION OF ANY 28
EMPTY REDEEMABLE BEVERAGE CONTAINER THAT IS OF THE SAME MATERIAL AND 29
SIZE AS THOSE THAT A RE SOLD BY THE RETAI LER IF THE EMPTY RED EEMABLE 30
BEVERAGE CONTAINER B EING REDEEMED IS NOT ACCEPTED BY A REVERS E 31
VENDING MACHINE; AND 32

18 HOUSE BILL 331

(2) POST AT THE RETAILER ’S ENTRANCE THE ADDRE SS OF THE 1
NEAREST REVERSE VEND ING MACHINE OR OTHER REDEMPTION METHOD TH AT 2
PROVIDES AN IMMEDIAT E CASH REFUND FOR RE DEEMING EMPTY REDEEM ABLE 3
BEVERAGE CONTAINERS. 4

(G) (1) A PERSON THAT PROVIDES A REVERSE VENDING MA CHINE FOR 5
THE REDEMPTION OF EMPTY REDEEMABLE BEVERAGE CONTAINERS SHALL: 6

(I) PROVIDE AN OPTION FOR REDEEMING EMPTY REDEEMABLE 7
BEVERAGE CONTAINERS WHEN THE REVERSE VENDING MACHINE IS FULL, BROKEN, 8
OR UNDER REPAIR; AND 9

(II) PROVIDE AN OPTION FOR REDEEMING ANY EMPTY 10
REDEEMABLE BEVERAGE CONTAINERS NOT ACCEPTED BY THE REVER SE VENDING 11
MACHINE. 12

(2) (I) THE DEPARTMENT SHALL ESTA BLISH A PROCESS FOR 13
SUBMITTING FOR REVIE W, APPROVING, AND MONITORING AN AC COUNT–BASED 14
BULK PROCESSING PROGRAM THAT: 15

1. ENSURES THAT THE PROG RAM WILL ACCURATELY 16
REFUND DEPOSITS AND MAINTAI N AND REPORT DATA FR OM EACH TRANSACTION ; 17
AND 18

2. IDENTIFIES THE INFORM ATION THAT MUST BE 19
SUBMITTED TO THE DEPARTMENT FOR APPROVAL OF THE PROGRAM. 20

(II) A PERSON THAT INTENDS TO PROVIDE AN ACCOUNT–BASED 21
BULK PROCESSING PROG RAM FOR THE REDEMPTION OF EM PTY REDEEMABLE 22
BEVERAGE CONTAINERS SHALL SUBMIT INFORMA TION IDENTIFIED UNDE R 23
SUBPARAGRAPH (I) OF THIS PARAGRAPH TO THE DEPARTMENT FOR APPROVAL OF 24
THE PROGRAM. 25

(H) (1) REFUNDS PROVIDED FOR AN EMPTY REDEEMED RE DEEMABLE 26
BEVERAGE CONTAINER SHALL BE: 27

(I) IN CASH; 28

(II) IN THE FORM OF A RECE IPT FROM A REVERSE V ENDING 29
MACHINE OR ACCOUNT–BASED REDEMPTION SYSTEM, IF: 30

1. THE RECEIPT CAN BE EXCHANGED FOR CASH WITHIN 31
60 DAYS AFTER THE RECEIPT IS ISSUED; AND 32
HOUSE BILL 331 19

2. THERE IS NO REQUIR EMENT THAT OTHER GOODS BE 1
PURCHASED TO RECEIVE THE CASH REFUND; OR 2

(III) CREDITED TO AN ACCOUN T BY THE RECEIVER OF THE 3
EMPTY REDEEMABLE BEV ERAGE CONTAINER SO T HAT THE CONSUMER CAN 4
RECEIVE THE REFUND O R A REFUND RECEIPT W ITHIN A SPECIFIED NU MBER OF 5
DAYS, AS DETERMINED BY THE DEPARTMENT, AFTER REDEEMING THE EMPTY 6
REDEEMABLE BEVERAGE CONTAINER. 7

(2) THE BEVERAGE CONTAINE R STEWARDSHIP ORGANI ZATION 8
SHALL REIMBURSE A RETAILER FOR THE VALUE OF VALID RECEIPTS REDEEMED BY 9
CONSUMERS. 10

(I) (1) A REDEMPTION FAC ILITY, RETAILER, OR ANY OTHER PERSON 11
THAT ACCEPTS REDEEMABLE BEVERAGE CONTAINERS FOR REDEMPTION SHALL BE 12
REIMBURSED BY THE BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION OR ITS 13
AGENT FOR THE HANDLI NG OF EACH EMPTY RED EEMABLE BEVERAGE CONTAINER 14
REDEEMED. 15

(2) (I) THE DEPARTMENT SHALL SET A HANDLING FEE TO BE PAID 16
BY THE BEVERAGE CONT AINER STEWARDSHIP OR GANIZATION OR ITS AG ENT TO A 17
REDEMPTION FACILITY, RETAILER, OR ANY OTHER PERSON THAT ACCEPTS EMPTY 18
REDEEMABLE BEVERAGE CONTAINERS FOR REDEMPTION. 19

(II) 1. THE HANDLING FEE SHAL L BE SET AT AN AMOUN T 20
THAT COVERS THE COST S OF COLLECTING , SORTING, PROCESSING, AND 21
TRANSPORTING EMPTY R EDEEMABLE BEVERAGE C ONTAINERS FOR RECYCL ING, 22
REUSE, OR REFILLING. 23

2. THE DEPARTMENT MAY INCREA SE THE HANDLING 24
FEE IF THE DEPARTMENT DETERMINES AN INCREASE IS NECESSARY TO ENCOURAGE 25
THE ESTABLISHMENT OF MORE REDEMPTION FACILITIES. 26

(J) (1) AN ON–PREMISES SELLER THAT PROVIDES EMPTY REDEEMABLE 27
BEVERAGE CONTAINERS FOR REDEMPTION SHALL BE REIMBURSED BY THE 28
BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION OR ITS AGENT FOR: 29

(I) THE REFUNDS PAID BY THE ON–PREMISES SELLER FOR THE 30
EMPTY REDEEMED REDEEMABLE BEVERAGE CONTAINERS; AND 31

(II) THE HANDLING OF EACH EMPTY REDEEMABLE BEV ERAGE 32
CONTAINER REDEEMED. 33
20 HOUSE BILL 331

(2) (I) THE DEPARTMENT SHALL SET A MATERIAL HANDLING FEE 1
TO BE PAID BY THE BE VERAGE CONTAINER STE WARDSHIP ORGANIZATION OR ITS 2
AGENT TO AN ON –PREMISES SELLER THAT PROVIDES EMPTY REDEE MABLE 3
BEVERAGE CONTAINERS FOR REDEMPTION. 4

(II) THE HANDLING FEE SHAL L BE SET AT AN AMOUN T THAT 5
COVERS THE COSTS OF TEMP ORARY STORAGE , PRELIMINARY SORTING , AND 6
PREPARING EACH REDEE MABLE BEVERAGE CONTA INER REDEEMED FOR 7
COLLECTION. 8

(3) THE BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION OR ITS 9
AGENT SHALL PROVIDE TO AN ON–PREMISES SELLER: 10

(I) ANY RECEP TACLES OR BAGS REQUI RED FOR THE 11
PRELIMINARY SORTING OF REDEEMED REDEEMAB LE BEVERAGE CONTAINE RS BY 12
THE ON–PREMISES SELLER; AND 13

(II) ANY LABELS NECESSARY FOR ATTRIBUTING THE 14
REDEEMED REDEEMABLE BEVERAGE CONTAINERS TO THE ON–PREMISES SELLER. 15

(K) A DEPOSIT INITIATOR THAT COLLECTS A DEPOSIT F ROM A RETAILER , 16
REDEMPTION FACILITY , OR ANY OTHER PERSON THAT ACCEPTS REDEEMA BLE 17
BEVERAGE CONTAINERS FOR REDEMPTION SHALL ACCOUNT FOR ANY DEPOSITS IN 18
ACCORDANCE WITH § 9–1743 OF THIS SUBTITLE. 19

(L) REDEEMED EMPTY RE DEEMABLE BEVERAGE CO NTAINERS SHALL BE 20
COLLECTED FOR RETURN TO THE BEVERAGE CONT AINER STEWARDSHIP 21
ORGANIZATION FOR SALE AS SCRAP MATERIAL TO FINANCE THE PROGRAM. 22

9–1743. 23

(A) A DEPOSIT INITIATOR SH ALL DEPOSIT ANY DEPO SITS COLLECTED 24
UNDER § 9–1742 OF THIS SUBTITLE INTO A DEPOSIT COLLECTION ACCOUNT THAT IS 25
MAINTAINED SEPARATELY FROM ALL OTHER REVENUES. 26

(B) THE FUNDS IN THE DEPOSIT COLLECTION ACCOUNT MAY BE USED ONLY 27
TO PAY THE REFUND VA LUE OF AN EMPTY REDE EMABLE BEVERAGE CONT AINER 28
BEING REDEEMED. 29

(C) A DEPOSIT INITIATOR SH ALL REPORT TO THE BE VERAGE CONTAINER 30
STEWARDSHIP ORGANIZA TION, AT A FREQUENCY DETER MINED BY THE 31
DEPARTMENT, THE FOLLOWING INFORMATION: 32
HOUSE BILL 331 21

(1) THE NUMBER OF REDEEMA BLE BEVERAGE CONTAIN ERS SOLD 1
AND EMPTY REDEEMABLE BEVERAGE CONTAINERS REDEEMED SINCE THE LAST 2
REPORT WAS SUBMITTED TO THE BEVERAGE CONT AINER STEWARDSHIP 3
ORGANIZATION UNDER THIS SUBSECTION; 4

(2) THE FUNDS DEPOSITED I NTO THE DEPOSIT COLL ECTION 5
ACCOUNT AND THE REFU NDS ISSUED FROM THE DEPOSIT COLLECTION A CCOUNT 6
SINCE THE LAST REP ORT WAS SUBMITTED TO THE BEVERAGE CONTAIN ER 7
STEWARDSHIP ORGANIZATION UNDER THIS SUBSECTION; 8

(3) ANY INCOME EARNED ON THE FUNDS IN THE DEP OSIT 9
COLLECTION ACCOUNT S INCE THE LAST REPORT WAS SUBMITTED TO THE 10
BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION UNDER THIS SUBSECTION; 11

(4) THE BALANCE OF THE DEPOSIT COLLECTION ACCOUNT; AND 12

(5) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT. 13

(D) (1) THE DEPARTMENT SHALL DETE RMINE THE POINT AT W HICH A 14
DEPOSIT BECOMES AN UNCLAIMED DEPOSIT. 15

(2) UNCLAIMED DEPOSI TS ARE CALCULATED AS THE AMOUNT OF 16
FUNDS TRANSFERRED TO A DEPOSIT COLLECTION ACCOUNT THAT ARE IN EXCESS 17
OF THE SUM OF: 18

(I) ANY INTEREST EARNINGS ON THE DEPOSIT COLLE CTION 19
ACCOUNT DURING THE T IME FOR WHICH UNCLAI MED DEPOSITS ARE BEI NG 20
CALCULATED; AND 21

(II) THE TOTAL AMOUNT OF THE REFUND VALUE RECEIVED FOR 22
THE EMPTY REDEEMABLE BEVERAGE CONTAINERS REDEEMED DURING THE TIME 23
FOR WHICH THE UNCLAIMED DEPOSITS ARE BEING CALCULATED. 24

(3) A DEPOSIT INITIATOR SH ALL TRANSFER ALL UNC LAIMED 25
DEPOSITS TO THE BEVE RAGE CONTAINER STEWAR DSHIP ORGANIZATION A T A 26
FREQUENCY DETERMINED BY THE DEPARTMENT. 27

(4) THE BEVERAGE CONTAINE R STEWARDSHIP ORGANI ZATION 28
SHALL: 29

(I) ESTABLISH A RESERVE A CCOUNT TO MANAGE ALL 30
UNCLAIMED DEPOSITS; AND 31
22 HOUSE BILL 331

(II) BEGINNING JANUARY 1, 2030, TRANSFER 10% OF ALL 1
UNCLAIMED DEPOSITS T O THE CHESAPEAKE BAY TRUST WITH A FREQUENCY 2
DETERMINED BY THE DEPARTMENT. 3

(5) THE BEVERAGE CONTAINE R STEWARDSHIP ORGANI ZATION 4
SHALL USE THE FUNDS IN THE RESERVE ACCOU NT ESTABLISHED UNDER 5
PARAGRAPH (4) OF THIS SUBSECTION TO: 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) THE UNCLAIMED DEPOSITS TRANSFERRED TO THE CHESAPEAKE 11
BAY TRUST UNDER PARAGRAPH (4)(II) OF THIS SUBSECTION MAY BE USED ONLY 12
FOR THE COSTS OF ADMINISTERING AND FINANCING THE GRANT PROGRAM UNDER 13
§ 9–1750 OF THIS SUBTITLE. 14

9–1744. 15

(A) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION, THIS SECTION 16
APPLIES TO A PRODUCER THAT SELLS , OFFERS FOR SALE , OR DISTRIBUTES 17
REDEEMABLE BEVERAGE CONTAINERS IN THE STATE. 18

(2) (I) IF THE BEVERAGE CONTA INER IS SOLD UNDER T HE 19
PRODUCER’S OWN BRAND OR LACKS IDENTIFICATION OF A BRAND, THE PRODUCER 20
IS THE PERSON THAT MANUFACTURES THE REDEEMABLE BEVERAGE CONTAINER. 21

(II) IF THE REDEEMABLE BEV ERAGE CONTAINER IS 22
MANUFACTURED BY A PERSON OTHER THAN THE BRAND OWNER, THE PRODUCER IS 23
THE PERSON THAT IS THE LICENSEE OF A BRA ND OR TRADEMARK UNDER WHICH A 24
REDEEMABLE BEVERAGE CONTAINER IS S OLD, OFFERED FOR SALE , OR 25
DISTRIBUTED IN THE STATE, WHETHER OR NOT THE TRADEMARK IS REGISTERED IN 26
THE STATE, UNLESS ANOTHER RESPO NSIBLE PERSON HAS CO NTRACTUALLY 27
ACCEPTED RESPONSIBILITY AS THE PRODUCER AND HAS JOINED THE B EVERAGE 28
CONTAINER STEWARDSHIP ORGAN IZATION AS THE PRODU CER RESPONSIBLE FOR 29
THE REDEEMABLE BEVERAGE CONTAINER UNDER THIS SECTION. 30

(III) IF THERE IS NO PERSON DESCRIBED IN THIS PA RAGRAPH 31
OVER WHOM THE STATE CAN CONSTITUTIO NALLY EXERCISE JURIS DICTION, THE 32
PRODUCER IS THE PERS ON THAT IMPORT S OR DISTRIBUTES THE REDEEMABLE 33
HOUSE BILL 331 23

BEVERAGE CONTAINER IN THE STATE. 1

(3) IF ANOTHER PERSON CON TRACTUALLY ACCEPTS 2
RESPONSIBILITY AS A PRODUCER UNDER PARAGRAPH (2)(II) OF THIS SUBSECTION, 3
THE PRODUCER MUST PR OVIDE A CERTIFIED CO PY OF THE CONTRACTUA L 4
AGREEMENT TO THE BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION. 5

(B) BEGINNING JANUARY 1, 2029, A PRODUCER MAY NOT SELL, OFFER FOR 6
SALE, OR DISTRIBUTE IN OR IMPORT INTO THE STATE A REDEEMABLE BE VERAGE 7
CONTAINER UNLESS THE PRODUCER: 8

(1) IS REGISTERED WITH TH E DEPARTMENT IN ACCORDA NCE WITH 9
THIS SECTION; 10

(2) HAS PAID THE REGISTRA TION FEE UNDER SUBSE CTION (F) OF 11
THIS SECTION; AND 12

(3) IS PART OF THE BEVERA GE CONTAINER STEWARD SHIP 13
ORGANIZATION THAT: 14

(I) HAS BEEN APPROVED BY THE DEPARTMENT UNDER § 15
9–1745 OF THIS SUBTITLE; AND 16

(II) HAS A BEVERAGE CONTAI NER STEWARDSHIP PLAN 17
APPROVED BY THE DEPARTMENT UNDER § 9–1746 OF THIS SUBTITLE. 18

(C) ON OR BEFORE MARCH 1 EACH YEAR , BEGINNING IN 2028, THE 19
BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION SHALL PROVIDE TO THE 20
DEPARTMENT: 21

(1) A LIST OF EACH PRODUCE R PARTICIPATING IN T HE BEVERAGE 22
CONTAINER STEWARDSHIP ORGANIZATION; AND 23

(2) FOR EACH PRODUCER , THE REGISTRATION FOR M REQUIRED 24
UNDER SUBSECTION (D) OF THIS SECTION. 25

(D) (1) THE DEPARTMENT SHALL CREATE A REGISTRATION FORM THAT 26
REQUIRES EACH PRODUC ER PARTICIPATING IN THE BEVERAGE CONTAIN ER 27
STEWARDSHIP ORGANIZATION TO PROVIDE THE FOLLOWING INFORMATION: 28

(I) THE NAME , PRIMARY BUSINESS ADD RESS, AND CONTACT 29
INFORMATION OF THE P ERSON RESPONSIBLE FO R ENSURING COM PLIANCE WITH 30
THIS PART; 31
24 HOUSE BILL 331

(II) A LIST OF EACH BRAND O F REDEEMABLE BEVERAG E 1
CONTAINERS THAT THE PRODUCER INTENDS TO SELL, OFFER FOR SALE , OR 2
DISTRIBUTE IN THE STATE, INCLUDING THE SIZE A ND MATERIAL OF THE 3
REDEEMABLE BEVERAGE CONTAINERS FOR EACH BRAND; 4

(III) FOR EACH REDEEMABLE BEVERAGE CONTAINER SPECIFIED 5
IN THE REGISTRATION, WHETHER THE REDEEMABLE BEVERAGE CONTAINER: 6

1. IS REFILLABLE; AND 7

2. DEPICTS A UPC OR MARYLAND–SPECIFIC UPC 8
BARCODE; 9

(IV) HOW EACH PRODUCER WIL L PREVENT THE FRAUDULENT 10
SALE AND REDEMPTION OF REDEEMABLE BEVERAGE CONTAINERS THAT WERE NOT 11
SOLD IN THE STATE; 12

(V) THE NUMBER OF REDEEMA BLE BEVERAGE CONTAIN ERS 13
EACH PRODUCER SOLD IN THE STATE IN THE IMMEDIATELY PRECEDING CALENDAR 14
YEAR; AND 15

(VI) ANY OTHER INFORM ATION REQUIRED BY TH E 16
DEPARTMENT. 17

(2) A PRODUCER SHALL SUBMIT A COMPLETED REGISTRATION FORM 18
TO THE BEVERAGE CONT AINER STEWARDSHIP OR GANIZATION THAT REPR ESENTS 19
THE PRODUCER. 20

(E) ON A SCHEDULE DETERMINED BY THE DEPARTMENT, EACH PRODUCER 21
SHALL PAY A REGI STRATION FEE ESTABLI SHED BY THE DEPARTMENT UNDER 22
SUBSECTION (F) OF THIS SECTION. 23

(F) (1) THE DEPARTMENT SHALL ESTABLISH AN ANNUAL REGISTRATION 24
FEE FOR PRODUCERS TH AT SELL REDEEMABLE B EVERAGE CONTAINERS I N THE 25
STATE. 26

(2) THE REGISTRATION FEE SHALL BE SET IN A MANNER THAT: 27

(I) WHEN TAKEN IN COMBINA TION WITH ANTICIPATE D 28
REVENUES FROM PENALTIES COLLECTED UNDER § 9–1755 OF THIS SUBTITLE, WILL 29
PRODUCE FUNDS SUFFICIENT TO COVER THE DEPARTMENT’S ESTIMATED COSTS OF 30
PLANNING, IMPLEMENTING, ADMINISTERING, MONITORING, ENFORCING, AND 31
HOUSE BILL 331 25

EVALUATING THE PROGRAM FOR THE UPCOMING YEAR; 1

(II) FOR THE FIRST YEAR OF THE PROGRAM DURING WHICH 2
REGISTRATION FEES ARE COLLECTED, SHALL COVER THE START–UP COSTS OF THE 3
PROGRAM THAT WERE INCURRED BY THE DEPARTMENT AND FINANCED FROM THE 4
GENERAL FUND; AND 5

(III) IS PROPORTIONAL TO A PRODUCER’S SHARE OF THE TOTAL 6
NUMBER OF REDEEMABLE BEVERAGE CONTAINERS SOLD IN THE STATE FOR THE 7
IMMEDIATELY PRECEDING CALENDAR YEAR. 8

(3) THE DEPARTMENT SHALL: 9

(I) IF THE REVENUES FROM THE REGISTRATION FEES IN THE 10
IMMEDIATELY PRECEDIN G YEAR EXCEED THE CO STS SPECIFIED IN PAR AGRAPH 11
(2)(I) OF THIS SUBSECTION, CARRY THE EXCESS REV ENUES FORWARD TO RED UCE 12
REGISTRATION FEES THE FOLLOWING YEAR; AND 13

(II) IF THE REVENUES FROM THE REGISTRATION FEE S IN THE 14
IMMEDIATELY PRECEDIN G YEAR DO NOT COVER THE COSTS SPECIFIED IN 15
PARAGRAPH (2)(I) OF THIS SUBSECTION , ADJUST REGISTRATION FEES FOR THE 16
FOLLOWING YEAR TO AN AMOUNT THAT WILL COV ER THE DEPARTMENT’S ACTUAL 17
COSTS FROM THE IMMEDIATELY PRECEDING YEAR. 18

(4) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 19
PARAGRAPH, REGISTRATION FEES COLLECTED UNDER THIS SUBSECTION SHALL BE: 20

1. TRANSFERRED TO THE STATE RECYCLING TRUST 21
FUND UNDER § 9–1707(F) OF THIS SUBTITLE; AND 22

2. USED ONLY TO COVER THE DEPARTMENT’S COSTS OF 23
PLANNING, IMPLEMENTING, ADMINISTERING, MONITORING, ENFORCING, AND 24
EVALUATING THE PROGRAM. 25

(II) THE PORTION OF THE REGISTRATION FEES THAT COVERED 26
THE START–UP COSTS OF THE PROGRAM AND WERE FINANCED FROM THE GENERAL 27
FUND DURING THE FIRST YEAR OF THE PROGRAM FOR WHICH REGISTRATION FEES 28
ARE COLLECTED IN ACC ORDANCE WITH PARAGRA PH (2)(II) OF THIS SUBSECTION 29
SHALL BE DEPOSITED INTO THE GENERAL FUND. 30

9–1745. 31

(A) ON OR BEFORE OCTOBER 1, 2027, THE DEPARTMENT SHALL APPROVE, 32
26 HOUSE BILL 331

FOR A PERIOD NO T TO EXCEED 10 YEARS, A SINGLE BEVERAGE CO NTAINER 1
STEWARDSHIP ORGANIZATION TO REPRESENT ALL PRODUCERS IN FULFILLING THE 2
REQUIREMENTS OF THIS PART, IF THE BEVERAGE CONT AINER STEWARDSHIP 3
ORGANIZATION DEMONSTRATES THAT IT HAS: 4

(1) THE ABILITY , AS DETERMINE D BY THE DEPARTMENT, TO 5
ADMINISTER THE REQUIREMENTS OF A BEVERAGE CONTAINER STEWARDSHIP PLAN 6
UNDER § 9–1746 OF THIS SUBTITLE; 7

(2) A GOVERNING BOARD CONS ISTING OF PRODUCERS THAT 8
REPRESENT THE DIVERSITY OF APPLICABLE REDEEMABLE BEVERAGE CONTAINERS 9
IN THE MARKET; 10

(3) SET NO UNREASONABLE B ARRIERS TO JOINING T HE BEVERAGE 11
CONTAINER STEWARDSHIP ORGANIZATION AND W ILL TAKE INTO CONSID ERATION 12
THE NEEDS OF SMALL P RODUCERS THAT DO NOT GENERATE A HIGH VOLU ME OF 13
CONTAINERS; 14

(4) ADEQUATE FINANCIAL RE SPONSIBILITY AND SAFEGUARDS , 15
INCLUDING FRAUD PREVENTION MEASURES AND AN AUDIT SCHEDULE; 16

(5) THE ABILITY TO SECURE THE CAPITAL NECESSAR Y FOR THE 17
INITIAL INVESTMENT I N INFRASTRUCTURE , SORTING EQUIPMENT , SOFTWARE, 18
TRANSPORTATION, AND OTHER START–UP EXPENSES; AND 19

(6) MET ANY OTHER REQUIREMENTS SET BY THE DEPARTMENT. 20

(B) IF NO APPLICATION TO OPERA TE A BEVERAGE CONTAI NER 21
STEWARDSHIP ORGANIZATION IS SUBMITTED BY PRODUCERS TO THE DEPARTMENT 22
BY OCTOBER 1, 2027, THE DEPARTMENT SHALL: 23

(1) ESTABLISH OR DESIGNAT E A BEVERAGE CONTAINER 24
STEWARDSHIP ORGANIZATION TO IMPLEMENT THIS PART; AND 25

(2) REQUIRE ALL PRODUCERS , AS A CONDITION OF SE LLING OR 26
DISTRIBUTING BEVERAGES IN THE STATE, TO JOIN AND FUND THE DESIGNATED 27
ORGANIZATION. 28

(C) THE DEPARTMENT MAY RENEW THE APPROVAL OF THE BEVERAGE 29
CONTAINER STEWARDSHI P ORGANIZATION UNDER SUBSECTION (A) OF THIS 30
SECTION IF THE BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION CONTINUES 31
TO MEET THE REQUIREMENTS OF THIS SECTION AND ANY OTHER REQUIREMENT SET 32
BY THE DEPARTMENT. 33
HOUSE BILL 331 27

(D) (1) THE DEPARTMENT SHALL REVOK E THE APPROVAL OF TH E 1
BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION IF THE DEPARTMENT 2
DETERMINES THAT THE BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION: 3

(I) FAILED TO MEET THE REQUIREMENTS OF THIS SECTION; OR 4

(II) FAILED TO IMPLEMENT AND ADMINI STER AN APPROVED 5
BEVERAGE CONTAINER S TEWARDSHIP PLAN IN A CCORDANCE WITH § 9–1746 OF 6
THIS SUBTITLE. 7

(2) IF THE DEPARTMENT REVOKES TH E APPROVAL OF THE 8
BEVERAGE CONTAINER S TEWARDSHIP ORGANIZATION UNDER PARAGRAPH (1) OF 9
THIS SUBSECTION: 10

(I) THE DEPARTMENT MAY APPROV E ONE OR MORE 11
ADDITIONAL BEVERAGE CONTAINER STEWARDSHIP ORGANIZATIONS TO CARRY OUT 12
THE RESPONSIBILITIES OF THE BEVERAGE CONT AINER STEWARDSHIP 13
ORGANIZATION THAT WA S REVOKED , SUBJECT TO ONE OR MO RE OF THE 14
ADDITIONAL BEVERAGE CONTAINER STEWARDSHIP ORGANIZATIONS MEETING THE 15
REQUIREMENTS SPECIFIED IN SUBSECTION (A) OF THIS SECTION; AND 16

(II) THE TRUSTEE OR ESCROW AGENT OF THE TRUST F UND OR 17
ESCROW ACCOUNT ESTAB LISHED IN THE BEVERA GE CONTAINER STEWARD SHIP 18
PLAN UNDER § 9–1746(A)(3)(VI) OF THIS SUBTITLE SHALL: 19

1. RECEIVE ALL PAYMENTS DIRECTLY FROM 20
PRODUCERS THAT WOULD HAVE BEEN PAID TO TH E BEVERAGE CONTAINER 21
STEWARDSHIP ORGANIZATION; 22

2. DEPOSIT THE PAYMENTS RECEIVED UNDER ITEM 1 OF 23
THIS ITEM INTO THE TRUST FUND OR ESCROW ACCOUNT; AND 24

3. MAKE PAYMENTS FROM THE TRUST FUND OR ESCROW 25
ACCOUNT AS DIRECTED BY THE DEPARTMENT TO IMPLEMENT THE REQUIREMENTS 26
OF THIS PART. 27

9–1746. 28

(A) (1) ON OR BEFORE MARCH 1, 2028, THE BEVERAGE CONTAIN ER 29
STEWARDSHIP ORGANIZA TION SHALL SUBMIT A BEVERAGE CO NTAINER 30
STEWARDSHIP PLAN TO THE DEPARTMENT. 31

28 HOUSE BILL 331

(2) A BEVERAGE CONTAINER STEWARDSHIP PLAN SHALL: 1

(I) IDENTIFY AND INCLUDE THE CONTACT INFORMATION FOR 2
EACH PRODUCER INTENDED TO BE COVERED UNDER THE PLAN; 3

(II) IDENTIFY EACH BRAND O F REDEEMABLE BEVERAG E 4
CONTAINER INTENDED T O BE SOLD UNDER THE PLAN, INCLUDING THE SIZE A ND 5
MATERIAL OF THE REDE EMABLE BEVERAGE CONT AINERS FOR EACH BRAN D AND 6
WHETHER THE REDEEMABLE BEVERAGE CONTAINERS ARE REFILLABLE; 7

(III) DESCRIBE: 8

1. THE FINANCIN G INFORMATION SPECIF IED IN 9
PARAGRAPH (3) OF THIS SUBSECTION; 10

2. THE LOCATION AND DIST RIBUTION OF 11
ACCOUNT–BASED BULK PROCESSIN G PROGRAMS , BAG DROP PROGRAMS , AND 12
REDEMPTION FACILITIES THE ORGANIZATION WILL DEVELOP, AS NECESSARY TO: 13

A. COMPLY WITH THE CONVENIENCE STAN DARDS 14
ESTABLISHED BY THE DEPARTMENT UNDER § 9–1752 OF THIS SUBTITLE; AND 15

B. ACHIEVE THE PERFORMAN CE TARGETS UNDER § 16
9–1740 OF THIS SUBTITLE; 17

3. HOW THE PERFORMANCE T ARGETS WILL BE MET O R 18
EXCEEDED FOR THE 5–YEAR PERIOD FOLLOWING THE YEAR IN WHICH THE PLAN IS 19
APPROVED; 20

4. HOW STAKEHOLDER COMME NTS WERE CONSIDERED 21
AND REFLECTED IN THE DEVELOPMENT OF THE P LAN, INCLUDING THE ROLE O F 22
RETAILERS, DISTRIBUTORS, AND LOCAL GOVERNMENTS IN PLAN IMPLEMENTATION; 23

5. THE ADMINI STRATION AND IMPLEME NTATION OF 24
THE PLAN , INCLUDING ANY STAFFI NG THAT WILL BE NECE SSARY FOR THESE 25
PURPOSES; 26

6. THE ACTIONS THAT HAVE BEEN TAKEN AND THAT 27
WILL BE TAKEN FOR PU BLIC OUTREACH , EDUCATION, AND COMMUNICATION , 28
INCLUDING MESSAGING AND IDENTIFICATION OF TARGET AUDIENCES; 29

7. THE ANTICIPATED INVES TMENTS THAT WILL BE 30
MADE TO IMPROVE THE REUSE OF BEVERAGE CO NTAINERS, INCLUDING THE 31
HOUSE BILL 331 29

SOURCE OF FUNDING FOR THE INVESTMENTS; AND 1

8. THE ACTIONS THE ORGAN IZATION WILL TAKE TO 2
ENSURE THE PLA N IS IMPLEMENTED IN A MANNER THAT COMPLI ES WITH THE 3
REQUIREMENTS OF SUBSECTION (D)(2) OF THIS SECTION; 4

(IV) LIST THE STAKEHOLDERS CONSULTED IN DEVELOPING THE 5
PLAN; 6

(V) PROVIDE THE ANTICIPATED COSTS OF IMPLEMENTING THE 7
PLAN FOR 5 YEARS, BROKEN DOWN BY YEAR; 8

(VI) INCLUDE A CLOSURE AND TRANSFER PLAN FOR HANDLING 9
THE AFFAIRS OF THE B EVERAGE CONTAINER ST EWARDSHIP ORGANIZATION THAT 10
ENSURES THAT EACH PRODUCER INTENDED TO BE COVERED UNDER THE BEVERAGE 11
CONTAINER STEWARDSHIP PLAN CAN FULFILL T HE PRODUCER’S OBLIGATIONS IN 12
THE EVENT THAT THE B EVERAGE CONTAINER ST EWARDSHIP ORGANIZATI ON 13
DISSOLVES OR HAS ITS APPROVAL REVOKED UND ER § 9–1745 OF THIS SUBTITLE ; 14
AND 15

(VII) INCLUDE AN Y OTHER INFORMATION REQUESTED BY THE 16
DEPARTMENT. 17

(3) THE FINANCING INFORMA TION INCLUDED IN A B EVERAGE 18
CONTAINER STEWARDSHIP PLAN SHALL: 19

(I) EXPLAIN THE FINANCING FOR DIRECT INVESTMEN TS OR 20
REIMBURSEMENTS THAT WILL IMPROVE INFRAST RUCTURE IN A MANNER THAT 21
SUPPORTS REDEMPTION SERVICES AND TECHNOLOGIES; 22

(II) ESTABLISH A FEE STRUC TURE IN ACCORDANCE W ITH 23
PARAGRAPH (4) OF THIS SUBSECTION F OR PRODUCERS PARTICI PATING IN THE 24
BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION; 25

(III) DESCRIBE THE COSTS OF MEETING THE PERFORMANCE 26
TARGETS; 27

(IV) DESCRIBE THE INCENTIV ES USED TO ENCOURAGE 28
PRODUCERS TO: 29

1. INVEST IN REUSABLE AN D REFILLABLE BEVERAG E 30
CONTAINER SYSTEMS; AND 31

30 HOUSE BILL 331

2. REDESIGN BEVERAGE CON TAINERS TO BE EASIER 1
AND LESS COSTLY TO RECYCLE; 2

(V) CREATE INCENTIVES FOR PRODUCERS TO USE A 3
MARYLAND–SPECIFIC UPC BARCODE TO REDUCE FRAUDULENT REDEMPTION; 4

(VI) ESTABLISH A TRUST FUND OR AN ESCROW ACCOUNT IN THE 5
STATE INTO WHICH THE BEVERAGE CONTAINER S TEWARDSHIP ORGANIZAT ION 6
SHALL DEPOSIT ALL UN EXPENDED FUNDS FOR USE IN ACCORDANCE WITH THIS 7
SECTION IN THE EVENT THAT THE BEVERAGE CO NTAINER STEWARDSHIP 8
ORGANIZATION DISSOLVES OR HAS ITS APPROVAL REVOKED BY THE DEPARTMENT 9
UNDER § 9–1745 OF THIS SUBTITLE; AND 10

(VII) MEET ANY OTHER REQUIR EMENTS ESTABLISH ED BY THE 11
DEPARTMENT. 12

(4) (I) THE FEE STRUCTURE REQUIRED UNDER PARAGRAPH (3) OF 13
THIS SUBSECTION FOR PRODUCERS PARTICIPATING IN THE BEVERAGE CONTAINER 14
STEWARDSHIP ORGANIZATION SHALL BE: 15

1. SET IN A MANNER THAT COVERS THE COSTS OF 16
ADMINISTERING THE B EVERAGE CONTAINER ST EWARDSHIP ORGANIZATI ON AND 17
IMPLEMENTING THE BEVERAGE CONTAINER STEWARDSHIP PLAN; AND 18

2. BASED ON: 19

A. THE COSTS ASSOCIATED WITH TRANSPORTING , 20
COLLECTING, AND PROCESSING EACH TYPE OF REDEEMABLE B EVERAGE 21
CONTAINER MATERIAL; 22

B. WHETHER A PRODUCER ’S REDEEMABLE BEVERAG E 23
CONTAINERS ARE REFILLABLE; 24

C. WHETHER A PRODUCER ’S EMPTY REDEEMABLE 25
BEVERAGE CONTAINERS ARE EASY TO RECYCLE; 26

D. WHETHER A PRODUCER ’S REDEEMABLE BEVERAG E 27
CONTAINERS HAVE A MARYLAND–SPECIFIC UPC BARCODE; 28

E. A PRODUCER’S PORTION , BY MATERIAL TYPE , OF 29
REDEEMABLE BEVERAGE CONTAINERS SOLD IN THE STATE DURING THE PREVIOUS 30
CALENDAR YEAR; AND 31

HOUSE BILL 331 31

F. ANY OTHER FACTOR THE DEPARTMENT DETERMINES 1
IS NECESSARY TO SUPPORT THE PROGRAM. 2

(II) 1. EXCEPT AS PROVIDE D IN § 9–1745(D)(2) OF THIS 3
SUBTITLE, A PRODUCER PARTICIPA TING IN THE BEVERAGE CONTAINER 4
STEWARDSHIP ORGANIZA TION SHALL PAY THE F EE ESTABLISHED UNDER 5
PARAGRAPH (3) OF THIS SUBSECTION TO THE BEVERAGE CONTAINER STEWARDSHIP 6
ORGANIZATION. 7

2. THE BEVERAGE CONTAINER STEWARDSHI P 8
ORGANIZATION SHALL DEPOSIT FEES RECEIVED UNDER THIS SUBPARAGRAPH TO AN 9
ACCOUNT HELD BY THE BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION. 10

3. THE BEVERAGE CONTAINE R STEWARDSHIP 11
ORGANIZATION MAY USE THE FEES RECEIVED UN DER THIS SUBPA RAGRAPH ONLY 12
FOR IMPLEMENTING THE BEVERAGE CONTAINER STEWARDSHIP PLAN. 13

(5) THE DEPARTMENT SHALL SUBM IT A BEVERAGE CONTAI NER 14
STEWARDSHIP PLAN TO AN INDEPENDENT FINAN CIAL AUDITOR TO ENSU RE THAT 15
THE FINANCING PROPOSED IN THE PLAN WILL COVER THE COSTS OF IMPLEMENTING 16
THE PLAN. 17

(B) (1) (I) WITHIN 120 DAYS AFTER RECEIPT O F A BEVERAGE 18
CONTAINER STEWARDSHIP PLAN SUBMITTED TO THE DEPARTMENT UNDER THIS 19
SECTION, THE DEPARTMENT SHALL APPR OVE, APPROVE WITH CONDITI ONS, OR 20
DENY THE PLAN. 21

(II) IN DETERMINING WHETH ER TO APPROVE , APPROVE WITH 22
CONDITIONS, OR DENY A BEVERAGE C ONTAINER STEWARDSHIP PLAN, THE 23
DEPARTMENT SHALL: 24

1. CONSIDER WHETHER: 25

A. THE PLAN COMPLIES WIT H THE REQUIREMENTS O F 26
THIS SECTION; AND 27

B. THERE WAS SUFFICIENT ENGAGEMENT WITH 28
STAKEHOLDERS, INCLUDING LOCAL GOVE RNMENTS, RETAILERS, DISTRIBUTORS, 29
AND ON–PREMISES SELLERS, IN DEVELOPING THE PLAN; AND 30

2. CONSULT WITH THE ADVISORY COUNCIL. 31

(2) (I) THE DEPARTMENT MAY RESCIN D APPROVAL OF A 32
32 HOUSE BILL 331

BEVERAGE CONTAINER STEWARDSHIP PLAN FOR GOOD CAUSE. 1

(II) THE BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION 2
MAY AMEND A RESCINDED BEVERAGE CONTAINER STEWARDSHIP PLAN AND SUBMIT 3
THE AMENDED PLAN TO THE DEPARTMENT FOR APPROVAL. 4

(3) (I) A BEVERAGE CONTAINER S TEWARDSHIP PLAN APPR OVED 5
BY THE DEPARTMENT MAY BE AMENDED WITH APPROVAL OF THE DEPARTMENT. 6

(II) THE DEPARTMENT MAY REQUIR E THAT AN APPROVED 7
BEVERAGE CONTAINER S TEWARDSHIP PLAN BE A MENDED IF THE REPORT 8
SUBMITTED UNDER § 9–1747 OF THIS SUBTITLE REF LECTS THAT THE 9
PERFORMANCE TARGETS HAVE NOT BEEN MET. 10

(C) AN APPROVED BEVERAGE CONTAINER STEWARDSHIP PLAN EXPIRES AT 11
THE END OF 5 YEARS. 12

(D) (1) THE BEVERAGE CONTAINE R STEWARDSHIP ORGANI ZATION 13
SHALL IMPLEMENT AND ADMINISTER A BEVERAGE CONTAINER STEWARDSHIP PLAN 14
WITHIN 6 MONTHS AFTER THE PLAN IS APPROVED. 15

(2) IN IMPLEMENTING AND ADMINISTERING A BEVERAGE CONTAINER 16
STEWARDSHIP PLAN , THE BEVERAGE CONTAIN ER STEWARDSHIP ORGAN IZATION 17
SHALL: 18

(I) FACILITATE LOGISTICS, THE INITIATION OF DEPOSITS, AND 19
THE ISSUANCE OF REFUNDS UNDER THE PLAN; 20

(II) COORDINATE THE LOGISTICS FOR TIMELY COLLECTION OF 21
REDEEMABLE BEVERAGE CONTAINERS FROM AN ON–PREMISES SELLER; 22

(III) ESTABLISH PROCEDURES FOR TRACKING REDEEMA BLE 23
BEVERAGE CONTAINERS SOLD IN THE STATE; 24

(IV) DESIGN AND OPERATE SE RVICES FOR THE 25
TRANSPORTATION AND PROCESSING OF REDEEMABLE BEVERAGE CONTAINERS; 26

(V) DEVELOP AND IMPLEMENT A PLAN FOR ESTABLISH ING, 27
OPERATING, AND MANAGING REDEMPT ION FACILITIES THAT WILL OFFER A WIDE 28
RANGE OF CONVENIENT REDEMPTION LOCATIONS AND TECHNOLOGIES THA T ARE 29
EASY TO USE, ACCESSIBLE, AND MEET OR EXCEED T HE CONVENIENCE STANDARDS 30
ESTABLISHED BY THE DEPARTMENT UNDER § 9–1752 OF THIS SUBTITLE; 31

HOUSE BILL 331 33

(VI) DEVELOP AND IMPLEMENT A PLAN FOR THE DISTRIBUTION, 1
OPERATION, AND MAINTENANCE OF B EVERAGE CONTAINER RE DEMPTION AND 2
PROCESSING METHODS , INCLUDING REVERSE VE NDING MACHINES , BAG DROP 3
PROGRAMS, AND ACCOUNT–BASED BULK PROCESSING PROGRAMS; 4

(VII) DEVELOP ACCOUNTING AND CONTROL STANDARDS; 5

(VIII) IMPLEMENT ACCOUNTING , AUDIT, PAYMENT, AND 6
REPORTING PROCEDURES; 7

(IX) ESTABLISH A HIGH –VOLUME VALIDATION AN D AUDIT 8
SYSTEM TO PAY A BULK RATE TO AN ON–PREMISES SELLER FOR THE REDEMPTION 9
OF EMPTY REDEEMABLE BEVERAGE CONTAINERS; 10

(X) ESTABLISH AN APPLICAT ION PROCESS FOR LARG E 11
ON–PREMISES SELLERS TO APPLY FOR AND RECEIV E A BULK RAT E FOR THE 12
REDEMPTION OF HIGH VOLUMES OF EMPTY REDEEMABLE BEVERAGE CONTAINERS; 13

(XI) MARKET REDEEMABLE BEVERAGE CONTAINER MATERIALS 14
FOR REUSE IN THE MANUFACTURING OF SIMILAR PRODUCTS; 15

(XII) FUND A MARKETING PROG RAM TO EDUCATE THE P UBLIC 16
ABOUT THE PROGRAM; 17

(XIII) ESTABLISH A SYSTEM FO R REPORTING KEY INFO RMATION 18
GATHERED BY THE PROGRAM TO THE DEPARTMENT ON A QUARTERLY BASIS; AND 19

(XIV) CREATE INCENTIVES FOR THE DEVELOPMENT OF 20
REFILLABLE AND REUSABLE BEVERAGE CONTAINER SYSTEMS. 21

(3) ON REQUEST OF THE DEPARTMENT, THE BEVERAGE CONTAINER 22
STEWARDSHIP ORGANIZATION SHALL SUBMIT A COPY OF ITS FINANCIA L RECORDS 23
TO THE DEPARTMENT FOR A FINANCIAL AUDIT. 24

9–1747. 25

(A) THIS SECTION APPLIES TO THE BEVERAGE CONT AINER STEWARDSHIP 26
ORGANIZATION THAT HAS A BEVERAGE CONTAINER STEWARDSHIP PLAN APPROVED 27
BY THE DEPARTMENT UNDER § 9–1746 OF THIS SUBTITLE. 28

(B) (1) ON OR BEFORE APRIL 1 EACH YEAR , BEGINNING IN 2030, THE 29
BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION SHALL SUBMIT A REPORT TO 30
THE DEPARTMENT ON THE PRO GRESS MADE IN THE PRE CEDING CALENDAR YEAR 31
34 HOUSE BILL 331

TOWARD MEETING THE PERFORMANCE TARGETS AND THE GOALS OF THE PROGRAM 1
AND THE BEVERAGE CON TAINER STEWARDSHIP O RGANIZATION’S BEVERAGE 2
CONTAINER STEWARDSHIP PLAN. 3

(2) THE DEPARTMENT SHALL PROV IDE THE ADVISORY COUNCIL 4
WITH A COPY OF EACH REPORT SUBMITTED UNDER THIS SUBSECTION. 5

(C) THE REPORT SUBMITTED UNDER SUBSECTION (B) OF THIS SECTION 6
SHALL INCLUDE, FOR THE PRECEDING CALENDAR YEAR: 7

(1) THE PROGRESS MADE TOW ARD ACHIEVING THE PE RFORMANCE 8
TARGETS; 9

(2) IF THE PE RFORMANCE TARGETS WE RE NOT ACHIEVED , A 10
DESCRIPTION OF THE A CTIONS PROPOSED TO A CHIEVE THE PERFORMAN CE 11
TARGETS; 12

(3) THE NUMBER OF REDEEMABLE BEVERAGE CONTAINERS SOLD IN 13
THE STATE; 14

(4) THE NUMBER OF REDEEMABLE BEVERAGE CONTAINERS SOLD IN 15
THE STATE SORT ED BY MATERIAL TYPE , REFUND VALUE , AND WHETHER THE 16
CONTAINER CAN BE REFILLED OR REUSED; 17

(5) THE NUMBER OF EMPTY R EDEEMABLE BEVERAGE C ONTAINERS 18
REDEEMED; 19

(6) THE NUMBER OF EMPTY R EDEEMABLE BEVERAGE C ONTAINERS 20
REDEEMED AT EACH RED EMPTION FACILITY , REVERSE VENDING MACH INE, BAG 21
DROP PROGRAM , ACCOUNT–BASED BULK PROCESSIN G PROGRAM , OR OTHER 22
BEVERAGE CONTAINER R EDEMPTION AND PROCES SING METHOD SORTED B Y 23
MATERIAL TYPE , REFUND VALUE , AND WHETHER THE EMPT Y REDEEMABLE 24
BEVERAGE CONTAINER CAN BE REFILLED OR REUSED; 25

(7) THE REDEMPTION RATE A ND RECYCLING RATE FO R 26
NONREFILLABLE REDEEM ABLE BEVERAGE CONTAI NERS SOLD IN THE STATE 27
SORTED BY MATERIAL T YPE, NUMBER OF CONTAINERS SOLD, AND CONTAINER 28
WEIGHT; 29

(8) THE AMOUNT OF EACH TYPE OF: 30

(I) REDEEMABLE BEVERAGE C ONTAINER MATERIAL 31
COLLECTED IN THE STATE; AND 32
HOUSE BILL 331 35

(II) SCRAP MATERIAL SOLD B Y THE BEVERAGE CONTA INER 1
STEWARDSHIP ORGANIZATION; 2

(9) THE LOCATION OF EACH REDEMPTION FACILITY IN THE STATE 3
AND THE REDEMPTION METHOD USED AT EACH REDEMPTION FACILITY; 4

(10) A DESCRIPTION OF ANY I MPROVEMENTS MADE TO MAKE 5
RETURNING EMPTY REDE EMABLE BEVERAGE CONT AINERS EASIER AND MO RE 6
CONVENIENT; 7

(11) THE IDENTIFICATION AND DESCRIPTION OF AREAS THAT DO NOT 8
HAVE READILY AVAILAB LE OPTIONS FOR REDEE MING AN EMPTY REDEEM ABLE 9
BEVERAGE CONTAINER A ND ACTIONS THE BEVER AGE CONTAINER STEWAR DSHIP 10
ORGANIZATION WILL TAKE TO IMPROVE OPTIONS IN THESE AREAS; 11

(12) THE NUMBER OF CONSUME R COMPLAINTS PER MON TH, SORTED 12
BY REDEMPTION FACILITY; 13

(13) THE NUMBER AND TYPE O F COMPLAINTS FROM O N–PREMISES 14
SELLERS PER MONTH, SORTED BY TYPE OF BUSINESS; 15

(14) THE NUMBER OF INDIVID UALS AND ORGANIZATIO NS WITH 16
ACCOUNTS ESTABLISHED FOR THE RECEIPT OF E LECTRONIC DEPOSITS O R 17
REFUNDS; 18

(15) THE TOTAL COST OF IMPLEMENTING THE BEVERAGE CONTAINER 19
STEWARDSHIP PLAN , AS DETERMINED BY AN INDEPENDENT FINANCIAL AUDITOR 20
UNDER § 9–1746(A)(5) OF THIS SUBTITLE; 21

(16) THE AVERAGE COST OF P ROCESSING AN EMPTY R EDEEMED 22
REDEEMABLE BEVERAGE CONTAINER; 23

(17) A COPY OF THE AUDIT CO NDUCTED UNDER § 9–1746(A)(5) OF 24
THIS SUBTITLE; 25

(18) FINANCIAL STATEMENTS DETAILING ALL DEPOSI TS RECEIVED 26
AND REFUNDS ISSUED B Y EACH PRODUCER COVE RED UNDER THE BEVERA GE 27
CONTAINER STEWARDSHIP PLAN; 28

(19) THE TOTAL AMOUNT OF D EPOSITS INITIATED, REFUNDS ISSUED, 29
AND UNCLAIMED DEPOSI TS COLLECT ED UNDER THE BEVERAG E CONTAINER 30
STEWARDSHIP PLAN; 31
36 HOUSE BILL 331

(20) AN ACCOUNTING OF ALL ACTIVITIES AND INVES TMENTS 1
FINANCED BY UNCLAIMED DEPOSITS; 2

(21) EXPENDITURES AND REVENUES SORTED BY SOURCE, INCLUDING 3
FEES PAID UNDER § 9–1746(A)(4) OF THIS SUBTITLE, REVENUE FROM THE SALE OF 4
SCRAP MATERIALS, AND UNCLAIMED DEPOSITS; 5

(22) SAMPLES OF ALL EDUCAT IONAL MATERIALS PROV IDED TO 6
CONSUMERS, RETAILERS, AND OTHER ENTITIES; 7

(23) A DETAILED DESCRIPTION OF INVESTMENTS MADE IN NEW 8
REDEMPTION FACILITIES AND REDEMPTION METHODS; 9

(24) THE LOCATION OF NEW R EDEMPTION FACILITIES AND 10
REDEMPTION METHODS; 11

(25) A DETAILED DESCRIPTION OF CHANGES MADE BY PRODUCERS TO 12
INCREASE THE RECYCLABILITY OF REDEEMABLE BEVERAGE CONTAINERS; 13

(26) A DETAILED DESCRIPTION OF ANY INCIDENTS OF FRAUD AND 14
EFFORTS TAKEN TO PREVENT FRAUD; AND 15

(27) ANY OTHER INFORMATION REQUIRED BY THE DEPARTMENT. 16

(D) THE FINANCIAL , PRODUCTION, AND SALES DATA OF IN DIVIDUAL 17
PRODUCERS REPORTED T O THE DEPARTMENT UNDER THIS SECTION SHALL BE 18
KEPT CONFIDENTIAL BY THE DEPARTMENT AND THE ADVISORY COUNCIL. 19

(E) THE DEPARTMENT SHALL POST THE REPORT SUBMITTED UNDER THIS 20
SECTION ON THE DEPARTMENT’S WEBSITE IN A MANNE R THAT PROTECTS THE 21
CONFIDENTIALITY OF T HE DATA SPECIFIED UN DER SUBSECTION (D) OF THIS 22
SECTION. 23

9–1748. 24

(A) (1) THE DEPARTMENT SHALL ESTABLISH A PROCESS FOR A COUNTY 25
OR MUNICIPAL CORPORATION TO CREATE A REDEMPTION FACILITY. 26

(2) A COUNTY OR MUNICIPAL CORPORATION MAY NOT BE REQUIRED 27
TO HOST, OPERATE, OR PROVIDE LAND, FACILITIES, OR ANY OTHER RESOURCES FOR 28
THE ESTABLISHMENT OR OPERATION OF ANY REDEMPTION FACILITY. 29

HOUSE BILL 331 37

(B) EMPTY REDEEMABLE BEVE RAGE CONTAINERS REDE EMED AT A 1
REDEMPTION FACILITY MANAGED BY A COUNTY OR MUNICIPAL CORPORA TION 2
SHALL BE CREDITED TOWARD MEETING THE RECYCLING RATES REQUIRED UNDER § 3
9–505 OF THIS TITLE. 4

(C) (1) THROUGH DECEMBER 31, 2031, A PORTION OF PROGRAM 5
REVENUES SHALL BE US ED TO COMPENSATE A C OUNTY OR MUNICIPAL 6
CORPORATION FOR ANY NET LOSS OF REVENUE TO THE COUNTY ’S OR MUNICIPAL 7
CORPORATION’S WASTE MANAGEMENT S YSTEM THAT CAN BE DO CUMENTED AND 8
ATTRIBUTED TO THE PROGRAM. 9

(2) IN DETERMINING A NET LOSS OF REVENUE , A COUNTY OR 10
MUNICIPAL CORPORATION SHALL CONSIDER: 11

(I) THE LOSS OF REVENUE F ROM THE SALE OF SCRA P 12
MATERIALS; 13

(II) FINANCIAL SAVINGS FROM A REDUCTION IN: 14

1. GLASS BOTTLES IN THE RECYCLING STREAM; 15

2. TRANSPORTATION COSTS ASSOCIATED WITH 16
CURBSIDE COLLECTION OF TRASH AND RECYCLING; 17

3. PROCESSING COSTS ASSO CIATED WITH RECYCLIN G 18
BEVERAGE CONTAINERS; 19

4. THE COSTS OF LANDFILL ING AND INCINERATING 20
BEVERAGE CONTAINERS THAT ARE NOT RECYCLED; AND 21

5. THE COSTS OF LITTER COLLECTION; AND 22

(III) FOR A COUNTY OR MUNIC IPAL CORPORATION THAT HAS A 23
TOTAL MAXIMUM DAILY LOAD FOR TRASH IN A WATERWAY UNDER ITS 24
JURISDICTION, THE REDUCED COSTS AN D INCREASED BENEFITS OF C OMPLYING 25
WITH THE TOTAL MAXIM UM DAILY LOAD DUE TO A REDUCTION IN BEVER AGE 26
CONTAINER LITTER. 27

9–1749. 28

FUNDING FOR THE PROGRAM SHALL: 29

(1) INCLUDE: 30
38 HOUSE BILL 331

(I) REDEEMABLE BEVERAGE C ONTAINER STEWARDSHIP 1
ORGANIZATION FEES COLLECTED UNDER § 9–1746 OF THIS SUBTITLE; 2

(II) REVENUE FROM THE SALE OF RAW MATERIALS; 3

(III) UNCLAIMED DEPOSITS CO LLECTED UNDER § 9–1743 OF 4
THIS SUBTITLE; 5

(IV) REGISTRATION FEES COLLECTED UNDER § 9–1744 OF THIS 6
SUBTITLE; AND 7

(V) PENALTIES COLLECTED U NDER § 9–1755 OF THIS 8
SUBTITLE; AND 9

(2) BE USED IN ACCORDANCE WITH §§ 9–1707(F), 9–1743, 9–1744, 10
AND 9–1755 OF THIS SUBTITLE. 11

9–1750. 12

(A) THERE IS A BEVERAGE CONTAINER RECYCLING REFUND GRANT 13
PROGRAM. 14

(B) THE PURPOSE OF THE GRANT PROGRAM IS TO PROVIDE FUNDING FOR: 15

(1) AN ASSESSMENT OF THE INVESTMENTS A ND POLICIES 16
NECESSARY TO ENSURE THAT, BY DECEMBER 31, 2038, AT LEAST 10% OF ALL 17
BEVERAGE CONTAINERS SOLD IN THE STATE ARE RETURNED AND REFILLED; AND 18

(2) PROJECTS THAT: 19

(I) INCREASE THE REUSE AN D RECYCLING OF BEVER AGE 20
CONTAINERS IN THE STATE; 21

(II) INCREASE THE AVAILABI LITY OF PUBLIC WATER 22
FOUNTAINS AND REFILL STATIONS IN THE STATE; AND 23

(III) REDUCE THE VOLUME OF LITTER FROM BEVERAGE 24
CONTAINERS IN THE STATE. 25

(C) THE CHESAPEAKE BAY TRUST SHALL ADMINISTER THE GRANT 26
PROGRAM. 27

HOUSE BILL 331 39

(D) THE GRANT PROGRAM SHALL BE FUND ED FROM A PORTION OF THE 1
UNCLAIMED DEPOSITS T RANSFERRED TO THE CHESAPEAKE BAY TRUST UNDER § 2
9–1743(D)(4)(II) OF THIS SUBTITLE. 3

(E) THE FOLLOWING ENTITIE S ARE ELIGIBLE FOR A GRANT UNDER THE 4
GRANT PROGRAM: 5

(1) A SCHOOL OR AN INSTITUTION OF HIGHER EDUCATION; 6

(2) A NONPROFIT ORGANIZATION; 7

(3) A COUNTY OR MUNICIPAL CORPORATION; 8

(4) A FOR–PROFIT ORGANIZATION; AND 9

(5) A PUBLIC–PRIVATE PARTNERSHIP. 10

(F) THE DEPARTMENT, IN CONSULTATION WITH THE ADVISORY COUNCIL, 11
SHALL ADOPT REGULATIONS ESTABLISHING: 12

(1) AN APPLICATION PROCES S FOR AN ENTITY TO A PPLY FOR A 13
GRANT; 14

(2) THE CRITERIA FOR EVALUATING AND AWARDING GRANTS; 15

(3) REPORTING AND EVALUAT ION REQUIREMENTS FOR A GRANT 16
AWARDED UNDER THIS SECTION; AND 17

(4) ANY OTHER REQUIREMENT S THE DEPARTMENT DETERMINES 18
ARE NECESSARY FOR AD MINISTERING AND IMPL EMENTING GRANTS AWAR DED 19
UNDER THE GRANT PROGRAM. 20

(G) BEGINNING JANUARY 1, 2030, THE CHESAPEAKE BAY TRUST SHALL 21
BEGIN AWARDING GRANTS UNDER THE GRANT PROGRAM. 22

9–1751. 23

(A) BEGINNING JANUARY 1, 2029, AND CONTINUING UNTIL 24
REIMBURSEMENT PAYMENTS UNDER § 9–2506 OF THIS TITLE BEGIN, THE BEVERAGE 25
CONTAINER STEWARDSHI P ORGANIZATION SHALL PROVIDE PAYMENTS TO A 26
MATERIAL RECOVERY FA CILITY TO COVER THE COSTS OF COLLECTING , SORTING, 27
PROCESSING, AND TRANSPORTING EMPTY UNREDEEMED REDEEMABLE BEVERAGE 28
CONTAINERS FOR RECYCLING, REUSE, OR REFILLING. 29
40 HOUSE BILL 331

(B) A MATERIAL RECOVERY FA CILITY SHALL BE ELIG IBLE TO RECEIVE A 1
PAYMENT UNDER THIS SECTION ONLY IF: 2

(1) THE UNREDEEMED REDEEM ABLE BEVERAGE CONTAI NERS 3
RECEIVED MEET THE AP PLICABLE SPECIFICATI ONS IN THE MOST RECE NTLY 4
PUBLISHED GUIDELINES OF THE INSTITUTE OF SCRAP RECYCLING INDUSTRIES; 5

(2) THE MATERIAL RECOVERY FACILITY REPORTS TO THE BEVERAGE 6
CONTAINER STEWARDSHIP ORGANIZATION THE NUMBER OF TONS OF UNREDEEMED 7
REDEEMABLE BEVERAGE CONTAINERS RECEIVED FOR PROCESSING IN TH E 8
PREVIOUS MONTH, CATEGORIZED BY MATERIAL TYPE; AND 9

(3) THE MATERIAL RECOVERY FACILITY REPORTS TO THE BEVERAGE 10
CONTAINER STEWARDSHI P ORGANIZATION THE N UMBER OF UNREDEEMED 11
REDEEMABLE BEVERAGE CONTAINERS TRANSFERRED TO ADDITIONAL MAT ERIALS 12
PROCESSING FACILITIES OR END MARKETS IN THE PREVIOUS MONTH, CATEGORIZED 13
BY MATERIAL TYPE. 14

(C) THE OPERATOR OF A MAT ERIAL RECOVERY FACIL ITY SHALL USE AN 15
INDUSTRY–STANDARD SCALE TO ME ASURE THE WEIGHT OF ALL COVERED 16
BEVERAGE CONTAINER MATERIALS RECEIVED BY THE FACILITY. 17

(D) THE BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION MAY, AT ITS 18
OWN EXPENSE, CONDUCT AUDITS OF TH E QUALITY AND QUANTI TY OF MATERIALS 19
HANDLED BY A MATERIA L RECOVERY FACILITY , ON REQUEST BY THE 20
ORGANIZATION. 21

(E) (1) THE DEPARTMENT SHALL ESTA BLISH THE PAYMENT AM OUNT 22
UNDER THIS SECTION. 23

(2) THE DEPARTMENT MAY ADJUST THE PAYMENT A MOUNT AS 24
NECESSARY TO ACCOUNT FOR CHANGES IN THE C OSTS OF COLLECTING, SORTING, 25
PROCESSING, AND TRANSPORTING EMPTY UNREDEEMED REDEEMABLE BEVERAGE 26
CONTAINERS. 27

9–1752. 28

IN ADDITION TO THE DU TIES AND REQUIREMENTS SPECIFIED IN THIS PART, 29
THE DEPARTMENT SHALL: 30

(1) IN CONSULTATION WITH THE ADVISORY COUNCIL: 31

HOUSE BILL 331 41

(I) ESTABLISH CONVENIENCE STANDARDS FOR THE COVERAGE 1
AND AVAILABILITY OF REDEMPTION OPTIONS ACROSS THE STATE; AND 2

(II) ENSURE THE CONVENIENC E STANDARDS PROVIDE 3
ACCESSIBLE REDEMPTION OPTIONS FOR DIFFERENTLY ABLED PEOPLE AND PEOPLE 4
WHO LIVE IN RURAL AREAS OR LOW–INCOME COMMUNITIES OF COLOR; 5

(2) ESTABLISH A SYSTEM FO R LARGE ON –PREMISES SELLERS TO 6
VERIFY THE SOURCE OF THE HIGH VOLUMES OF REDEEMABLE BEVERAGE 7
CONTAINERS REDEEMED BY THE ON–PREMISES SELLER; AND 8

(3) PERIODICALLY REVIEW A VAILABLE BEVERAGE CO NTAINER 9
REDEMPTION AND PROCESSING METHODS TO DETERMINE WHETHER THE TYPES OF 10
BEVERAGE CONTAINERS COVERED UNDER THE PROGRAM SHOULD BE EXPANDED. 11

9–1753. 12

(A) THERE IS A REDEEMABLE BEVERAGE CONTAINER RECYCLING 13
REFUND ADVISORY COUNCIL. 14

(B) THE ADVISORY COUNCIL CONSISTS OF T HE FOLLOWING MEMBERS , 15
DESIGNATED BY THE SECRETARY: 16

(1) ONE MEMBER REPRESENTING RECYCLING PROCESSORS; 17

(2) ONE MEMBER REPRESENTI NG LOCAL GOVERNMENT AGENCIES 18
RESPONSIBLE FOR RECYCLING PROGRAMS; 19

(3) ONE MEMBER REPRESENTI NG GLASS MANUFACTURE RS OR A 20
GLASS MANUFACTURING TRADE ORGANIZATION; 21

(4) ONE MEMBER REPRESENTI NG ALUMINUM MANUFACT URERS OR 22
AN ALUMINUM MANUFACTURING TRADE ORGANIZATION; 23

(5) ONE MEMBER REPRESENTING PLASTIC MANUFACTURER S OR A 24
PLASTIC MANUFACTURING TRADE ORGANIZATION; 25

(6) ONE MEMBER REPRESENTING BEVERAGE COMPANIES; 26

(7) ONE MEMBER REPRESENTI NG PURCHASERS OF REC YCLED 27
CONTENT; 28

(8) ONE MEMBER REPRESENTING RETAILERS; 29
42 HOUSE BILL 331

(9) ONE MEMBER REPRESENTING RESTAURANTS OR OTHER 1
ON–PREMISES SELLERS; 2

(10) ONE MEMBER REPRESENTI NG REVERSE VENDING M ACHINE 3
BUSINESSES; 4

(11) ONE MEMBER REPRESENTI NG ACCOUNT –BASED BULK 5
PROCESSORS; 6

(12) ONE MEMBER REPRESENTI NG BUSINESSES INVOLV ED IN REUSE 7
AND REFILL SYSTEMS; 8

(13) AT LEAST ONE MEMBER R EPRESENTING AN ENVIR ONMENTAL 9
ADVOCACY ORGANIZATION; 10

(14) AT LEAST ONE MEMBER R EPRESENTING AN ENVIR ONMENTAL 11
JUSTICE ADVOCACY ORGANIZATION; AND 12

(15) AT LEAST TWO MEMBERS WHO ARE MEMBERS OF T HE GENERAL 13
PUBLIC AND RESIDE IN THE STATE. 14

(C) THE SECRETARY SHALL DESIGNATE TWO COCHAIRS FROM AMONG THE 15
MEMBERSHIP OF THE ADVISORY COUNCIL. 16

(D) THE DEPARTMENT SHALL PROV IDE STAFF FOR THE ADVISORY 17
COUNCIL. 18

(E) A MEMBER OF THE ADVISORY COUNCIL: 19

(1) MAY NOT RE CEIVE COMPENSATION A S A MEMBER OF THE 20
ADVISORY COUNCIL; BUT 21

(2) IS ENTITLED TO REIMBU RSEMENT FOR EXPENSES UNDER THE 22
STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET. 23

(F) THE ADVISORY COUNCIL SHALL MEET: 24

(1) AT LEAST QUARTERLY EACH YEAR; AND 25

(2) AS REQUESTED BY THE DEPARTMENT. 26

(G) THE ADVISORY COUNCIL SHALL: 27
HOUSE BILL 331 43

(1) ADVISE THE DEPARTMENT ON DETERMI NING WHETHER TO 1
APPROVE A BEVERAGE CONTAINER STEWARDSHIP PLAN; 2

(2) MAKE RECOMMENDATIONS TO THE DEPARTMENT ON THE 3
IMPLEMENTATION OF APPROVED BEVERAGE CONTAINER STEWARDSHIP PLANS; 4

(3) REVIEW AND ADVISE THE DEPARTMENT ON THE ANN UAL 5
REPORTS SUBMITTED UNDER § 9–1747 OF THIS SUBTITLE; AND 6

(4) ADVISE THE DEPARTMENT ON THE IMP LEMENTATION, 7
ADMINISTRATION, AND PERFORMANCE OF THE PROGRAM. 8

9–1754. 9

(A) ON OR BEFORE JUNE 1, 2027, THE DEPARTMENT SHALL ADOP T 10
REGULATIONS TO CARRY OUT THIS PART. 11

(B) THE DEPARTMENT MAY EXPAND THE TYPES OF BEVERAGE CONTAINERS 12
COVERED UNDER THE PROGRAM BY REGULATION IF, BASED ON ITS REVIEW UNDER 13
§ 9–1752(3) OF THIS SUBTITLE , THE DEPARTMENT DETERMINES THERE ARE 14
CONVENIENT REDEMPTION OPTIONS FOR THOSE BEVERAGE CONTAINERS. 15

9–1755. 16

(A) EXCEPT AS PROVIDED IN SUBSECTIONS (C) AND (D) OF THIS SECTION , 17
THE PROVISIONS OF §§ 9–334 THROUGH 9–344 OF THIS TITLE APPLY TO ENFORCE 18
VIOLATIONS OF THIS PART. 19

(B) A PENALTY MAY NOT BE I MPOSED ON A PRODUCER FOR FAILING TO 20
PROPERLY REGISTER WITH THE DEPARTMENT UNDER § 9–1744 OF THIS SUBTITLE, 21
INCLUDING FAILING TO IDENTIFY EACH BRAND OF REDEEMABLE BEVERA GE 22
CONTAINER THAT THE PRODUCER INTENDS TO SELL , OFFER FOR SALE , OR 23
DISTRIBUTE IN THE STATE, UNLESS: 24

(1) THE DEPARTMENT FIRST ISSU ES A WRITTEN NOTICE OF THE 25
VIOLATION TO THE PRODUCER; AND 26

(2) THE PRODUCER DOES NOT REGISTER WITHIN 90 DAYS AFTER 27
RECEIVING THE WRITTEN NOTICE. 28

(C) (1) A PERSON MAY NOT REDEE M, ATTEMPT TO REDEEM , RECEIVE, 29
STORE, TRANSPORT, DISTRIBUTE, OR OTHERWISE FACILIT ATE OR AID IN THE 30
44 HOUSE BILL 331

REDEMPTION OF THE FOLLOWING MATERIALS WITH AN INTENT TO DEFRAUD: 1

(I) AN EMPTY REDEEMABLE BEVERAGE CONTAINER THAT WAS 2
SOLD IN ANOTHER STATE; 3

(II) AN EMPTY REDEEMABLE BEVERAGE CONTAINER THAT WAS 4
REJECTED FOR REDEMPTION; 5

(III) LINE BREAKAGE; 6

(IV) A PREVIOUSLY REDEEMED REDEEMABLE BEVERAGE 7
CONTAINER; OR 8

(V) ANOTHER INELIGIBLE MATERIAL. 9

(2) A PERSON MAY NOT DISPO SE OF A REDEEMED RED EEMABLE 10
BEVERAGE CONTAINER IN A LANDFILL OR AN INCINERATOR. 11

(3) THE DEPARTMENT SHALL ESTA BLISH ADMINISTRATIVE 12
PENALTIES FOR A VIOL ATION OF THIS SUBSEC TION THAT ARE BASED ON THE 13
NUMBER OF BEVERAGE CONTAINERS AND REFUND AMOUNTS INVOLVED. 14

(D) (1) BEGINNING JANUARY 1, 2032, IF THE BEVERAGE CONT AINER 15
STEWARDSHIP ORGANIZA TION HAS NOT MET THE REDEMPTION RATES 16
ESTABLISHED IN § 9–1740 OF THIS SUBTITLE FOR THE IMMEDIATELY PRECEDING 2 17
YEARS, THE DEPARTMENT SHALL ASSE SS A N ADMINISTRATIVE PEN ALTY ON THE 18
BEVERAGE CONTAINER STEWARDSHIP ORGANIZATION. 19

(2) EACH YEAR THAT THE BE VERAGE CONTAINER STE WARDSHIP 20
ORGANIZATION DOES NOT MEET THE REDEMPTION RATES ESTABLISHED IN § 9–1740 21
OF THIS SUBTITLE IS A SEPARATE VIOLATION UNDER THIS SUBSECTION. 22

(3) AN ADMINISTRATIVE PEN ALTY ASSESSED UNDER THIS 23
SUBSECTION SHALL EQU AL THE TOTAL NUMBER OF REDEEMABLE BEVERA GE 24
CONTAINERS NEEDED TO BE REDEEMED TO MEET THE REDEMPTION RATES 25
ESTABLISHED IN § 9–1740 OF THIS SUBTITLE, MINUS THE NUMBER OF REDEEMABLE 26
BEVERAGE CONTAINERS ACTUALLY REDEEMED , MULTIPLIED BY THE RE FUND 27
VALUE IN EFFECT AT THE TIME THE VIOLATION OCCURRED. 28

(E) THE DEPARTMENT MAY ALTER THE ADMINISTRATIVE P ENALTIES 29
ASSESSED UNDER SUBSE CTIONS (C) AND (D) OF THIS SECTION AS N ECESSARY TO 30
ENSURE THAT THE PENA LTY AMOUNTS ASSESSED EXCEED THE COSTS OF 31
COMPLYING WITH THIS PART. 32
HOUSE BILL 331 45

(F) PENALTIES COLLECTED UNDER THIS SECTION SHALL BE: 1

(1) TRANSFERRED TO THE STATE RECYCLING TRUST FUND UNDER § 2
9–1707(F) OF THIS SUBTITLE; AND 3

(2) USED ONLY TO COVER THE DEPARTMENT’S COSTS OF PLANNING, 4
IMPLEMENTING, ADMINISTERING, MONITORING, ENFORCING, AND EVALUATING 5
THE PROGRAM. 6

9–1756. 7

ANY PERSON PARTICIPAT ING IN A BEVERAGE CO NTAINER STEWARDSHIP 8
PLAN IN ACCORDANCE W ITH THIS SUBTITLE IS IMMUNE FROM LIABILIT Y UNDER 9
STATE LAWS CONCERNING ANTITRUST AND RESTRA INT OF TRADE FOR 10
COOPERATIVE ACTIVITI ES ASSOCIATED WITH T HE COLLECTION , TRANSPORT, 11
PROCESSING, RECYCLING, REUSE, AND MANAGEMENT OF EM PTY REDEEMABLE 12
BEVERAGE CONTAINERS. 13

SECTION 2. AND BE IT FURTHER ENACTED, That: 14

(a) The Department of the Environment shall consult with counties and 15
municipalities to assess the impacts of the Maryland Beverage Container Recycling Refund 16
and Litter Reduction Program (Program), as enacted by Section 1 of this Act, on local 17
beverage container litter and recycling operations and county and municipal budgets. 18

(b) On or before June 1, 2027, the Department of the Environment shall report to 19
the General Assembly, in accordance with § 2 –1257 of the State Government Article, its 20
recommendations on ways to offset adverse impacts and enhance positive impacts of the 21
Program on beverage container litter, recycling rates, and county and municipal budgets. 22

SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect June 23
1, 2026. 24