Maryland Senate Bill 222 (2023) - (Introduced)

Packaging materials means any part of a package or container, including material used for containment, protection, handling, delivery, and presentation. This includes primary, secondary, and tertiary packaging intended for the consumer market, and service packaging designed and intended to be filled at the point of sale (i.e. carry out bags, take-out food service packaging).

Beverage containers are included as covered products.

Packaging materials does not include any part of a package or container that is sold in connection with:

1. Pesticide products regulated by the Federal Insecticide, Fungicide, and Rodenticide Act
2. Federally regulated drug, medical device, biologic or diagnostic, including items intended for animals
3. Medical products required to be sterile or in tamper-resistant packaging, including medical products for animals

Producer is defined as person that uses packaging materials under their own brand and sells, offers, or distributes covered materials or products in the state. If the item is sold under the manufacturer's own brand or is sold in packaging that lacks a brand, the producer is the person that manufactures the item. For items sold through remote sale, the producer is the producer of the packaging materials used to directly protect or contain the item.

Producer also includes a person that is a licensee under which a packaging material is sold, offered for sale, or distributed in the state, if the item is manufactured by a person other than the brand owner. For items sold through remote sale, the producer is the person that packages and ships the item to the consumer.

If there is no brand owner or licensee, the producer is the person that imports the item into the United States for use in a commercial enterprise that sells, offers for sale, or distributes the item. For items sold through remote sale, if there is no brand or licensee, the person that first distributes the packaged item into the state is the producer.

The definition of Producer does not include those that generated less than $5,000 in gross revenue; sold, offered for sale, or distributed for sale less than 1 ton of packaging materials. The definition of Producer also does not include someone who owns or operates a restaurant, food car or similar establishment that is headquartered in the state, and primarily sells to members of the public food that is intended to be consumed immediately, without further preparation, and is not a producer or foodserviceware.

The definition of Producer does not include local governments.

The definition of Producer does not include non-profit charitable organizations.

The definition of Producer does not include those that own or operate a single retail sales location that has no online sales and is not supplied or operated as part of a franchise or chain, or licensed under title 2 or the alcoholic beverage article, and generated less than $10,000,000 in gross revenue during the immediately preceding calendar year. Additional exclusions include an entity that manufactures a drug or device authorized by sale by the US Food and Drug Administration under the Food, Drug, and Cosmetic Act.

Producers must comply either as an individual or as part of a PRO.

Producers must comply either as an individual or as part of a PRO.

The producers or PRO are responsible for all financial costs of the program. The producers or PRO must reimburse local governments for operational costs including collecting, transporting, and processing covered materials.

The program must provide reimbursements to local governments for operational costs including collecting, transporting, and processing covered materials.

The program must address education and outreach.

The program must cover costs associated with the administration, review, oversight, and enforcement of the plan.

The program must address how to prevent litter of packaging materials.

The program must address investments in market development and existing and future reuse, organics recycling, and recycling infrastructure; giving priority to investment in existing infrastructure.

The fee structure must be established in the plan. The fees may be variable based or eco-modulated.

Higher fees for packaging materials with low recycled content and a discounted fee for packaging materials with high recycled content determined by the department.

Higher fees for packaging materials with low recyclability and a discounted fee for packaging materials with high recyclability determined by the department.

Based on the needs assessment the department and the PRO will establish performance goals for each packaging material type using a baseline year. This includes establishing recycling rate goals for each packaging material type at 5, 10, and 15 year intervals.

Within 5 years of the first plan approval, established performance goals relevant to each packaging material must be met. This includes post consumer recycled content, recyclability and recycling rate, reuse, packaging reduction, compost and compost access, contamination rate reduction, and any other goal that demonstrates positive environmental improvement.

Funding used for improving reuse, organics recycling, and recycling shall include investments in existing and future infrastructure and market development.

Beginning July 1, 2024 and each year thereafter, a producer responsibility organization shall file a registration form with the department.

Producers must submit a stewardship plan, either individually or as part of a stewardship organization, on or before April 1, 2026.

A producer responsibility organization will have six months to implement a plan after it has been approved.

No sales of covered materials or products in the state will be permitted without an approved plan on file on or after a date established in regulations adopted by the department.

The department shall review the PRO plan and within 120 days of receipt will approve, approve with conditions, or reject the plan.

Beginning March 1, 2027 each PRO that has an approved plan shall report annually to the department on the progress towards meeting the plan requirements and goals.

A producer or PRO that with any violations will be subject to civil penalties starting at $5,000 for the first violation, $10,000 for the second and $20,000 for a third violation. Penalty may not imposed unless the department first issues a written notice of violation and the violation is not corrected within 60 days of receipt. If based on the annual reports submitted, the performance goals have not been achieved, the department may impose an administrative penalty not to exceed $5,000 on the PRO.

The PRO must describe how stakeholder comments were considered in the development of the plan and the advisory committee shall provide advice on the PRO plan.

An advisory council will be established to provide advice to the department and the PRO for drafting, amending, and implementing the PRO plan. There should be the a representative from each PRO, representatives of at least two nonprofit organizations in the state with waste reduction missions, at least one representative of an environmental advocacy organization, at least one representative of an environmental justice advocacy organization, and at least two members of the public who reside in the state. There should also be representatives from the following industries:

1. Local government agencies for recycling programs
2. Recyclable and compostable material collectors
3. Recycling processors
4. Organics recycling processors
5. Consumer goods sector
6. Retail and small businesses
7. Material- oriented trade groups

Producers participating in a PRO are immune from antitrust regulation liability for activities concerning recycling, reuse, and disposal of covered products and materials.

The PRO will have 60 days to pay the department the estimated costs of conducting the initial statewide recycling needs assessment. If there is more than one PRO, the department will equally divide the costs.