Maryland Senate Bill 901 - (Introduced)

Packaging materials means, regardless of recyclability, any part of a package or container, including material that is used for the containment, protection, handling, delivery, and presentation of a product that is sold, offered for sale, imported, or distributed in the State.

Packaging materials includes:
Primary, secondary, and tertiary packaging intended for the consumer market

Service packaging designed and intended to be filled at the point of sale, including:
Carry–out bags
Bulk goods bags
Take–out and home delivery food service packaging
Beverage containers

Packaging materials does not include:

Any part of a package or container that is sold or supplied in connection with:

1. A pesticide product regulated by the Federal Insecticide, Fungicide, and Rodenticide Act or any other applicable federal law, rule, or regulation.
2. A federally regulated drug, medical device, biologic, diagnostic, or dietary supplement including items intended for animals.
3. A medical product that is required to be sterile or enclosed in packaging with tamper–resistant seals to protect public health, including medical products intended for animals.
4. Liquefied petroleum gas containers that are designed to be refilled.

A local government may request reimbursement from a producer responsibility organization for costs associated with collecting, transporting, and processing packaging materials that are identified under the plan, including costs associated with recycling services for public places and public housing.

Producer means a person that:
With respect to packaging materials used to directly protect or contain a product sold, offered for sale, or distributed in the State:

Has legal ownership of the brand of the product under which the product is sold or is the manufacturer of the product, if the product is sold in packaging materials that lack identification of the brand.

Producer means a person that:
With respect to packaging materials used to directly protect or contain a product sold, offered for sale, or distributed in the State:

The producer is the licensee of the brand or trademark under which the product is sold, whether or not the trademark is registered in the State, if the product is manufactured by a person other than the brand owners.

Producer means a person that:
With respect to packaging materials used to directly protect or contain a product sold, offered for sale, or distributed in the State:
The person that imports the product into the United States for use in a commercial enterprise that sells, offers for sale, or distributes the item in the State, if there is no brand or licensee.

With respect to packaging materials used to ship a product to a consumer in the State, is the person that packages and ships the product.

Producer does not include:

1. An entity that manufactures a drug or device authorized for sale by the U.S. Food and Drug Administration.

2. An entity that generated less than $1,000,000 in gross revenue during the immediately preceding calendar year or an entity that sold, offered for sale, or distributed for sale in the State during the immediately preceding calendar year less than 1 metric ton of packaging materials.

3. An entity that owns or operates a restaurant, food cart, or similar establishment that: is headquartered in the state and primarily sells to members of the public food that is generally intended to be consumed immediately and without the need for further preparation, either on or off the premises and is not a producer of food serviceware.

4. An entity that owns or operates a single retail sales establishment that has no online sales and is not supplied or operated as part of a franchise or a chain.

5. An entity that is licensed under Title 2 of the Alcoholic Beverages and Cannabis Article and generated less than $10,000,000 in gross revenue during the immediately preceding calendar year.

6. An entity that has executed an agreement with another entity, under which the other entity has agreed to assume responsibility under a producer responsibility program for any packaging materials attributable to the first entity.

Producer does not include local governments.

Producer does not include a nonprofit charitable organization.

Producers must join a producer responsibility organization.

On or before June 30, 2025, the department shall approve a single producer responsibility organization.

On or after July 1, 2031, a nonprofit organization may request that the department designate the nonprofit organization as an additional producer responsibility organization. The department may designate a nonprofit organization as an additional producer responsibility organization if the department determines, in coordination with the advisory council, that the designation of the additional producer responsibility organization is necessary to increase recycling rates or improve recycling services for a specific type of packaging material.

If there is more than one PRO they must coordinate and a coordinating body can be hired.

Producer responsibility organization means a nonprofit organization.

The PRO must reimburse local government for costs associated with transporting, collecting, and processing packaging materials.

The cost coverage must include reimbursement for costs associated with transporting, collecting, and processing packaging materials that are identified in the plan.

The cost coverage must include public outreach and education.

The cost coverage must include administrative costs of the PRO and the administration to review implement, and enforce the plan by the department.

The cost coverage must include funding that will be used for improving reuse, organics recycling, and recycling investments in market development and existing and future reuse, organics recycling, and recycling infrastructure, giving priority to investment in existing infrastructure.

The cost coverage must include direct investments or reimbursements for improving infrastructure for reuse, organics recycling, and recycling.

Fees are based on costs associated with transporting, collecting, and processing packaging materials.

Fees will be eco-modulated.

The fees will be higher for low recycled content in covered materials and lower for high recycled content.

The fees will be higher for low recyclability and discounted for high recyclability.

Based on the results of the most recent statewide recycling needs assessment conducted the department, in coordination with a producer responsibility organization, shall establish performance goals for each packaging material type using a baseline year that is informed by the statewide recycling needs assessment, including establishing recycling rate goals for each packaging material type, at 5–, 10–, and 15–year intervals.

The plan requires each participating producer to reduce packaging material waste to the maximum extent practicable, and by not less than 25%, within 5 years after the date on which the first version of the plan is approved.

In the plan the PRO must require achievement within 5 years after the date on which the first version of the plan is approved and establish the following performance goals, as relevant, for each packaging material type:
Post-consumer recycled content goals
Recyclability and recycling rate goals
Reuse goals
Packaging reduction goals
Compost access or compost rate goals, if applicable and technologically and environmentally feasible
Contamination reduction rate goals
Greenhouse gas reduction goals and
Any other goal that reduces packaging material waste and is justified in the plan

If, based on the annual report, the performance goals have not been achieved, the department may impose an administrative penalty, not to exceed $250,000, on the producer responsibility organization.

Priority should be given to the improvement of existing infrastructure.

The PRO plan will provide the method for either direct investments or reimbursements for improving infrastructure for reuse, organics recycling, and recycling.

Beginning July 1, 2025, and each year thereafter, the producer responsibility organization shall file a registration form with the department. At the time of filing the registration form, the producer responsibility organization shall pay to the department an annual registration fee to cover the costs of record keeping, not to exceed $1,000.

On or before April 1, 2027, and every 5 years thereafter, each producer shall, individually or as part of a producer responsibility organization, submit a producer responsibility plan to the department for review and approval.

Implementation of an approved producer responsibility plan shall begin not later than 6 months after the date the producer responsibility plan is approved by the department.

On or after a date established in regulations adopted by the department, a producer may not sell, offer for sale, distribute, or import for sale or distribution packaging materials for use in the state unless the producer, individually or as part of a producer responsibility organization, has an approved producer responsibility plan on file with the department.

Within 120 days after receiving a proposed producer responsibility plan, the department shall approve, approve with conditions, or reject the plan.

No later than 60 days after the date a producer responsibility plan is initially approved, the entity that submitted the plan shall pay to the department, the department’s cost of reviewing the plan and the department’s estimated costs of administering, overseeing, and enforcing the plan between the initial date of approval and the date of the initial annual report.

When providing the department with the annual report, a producer or producer responsibility organization shall pay to the department the department’s estimated costs of administering, overseeing, and enforcing the plan for the 1 year immediately following the annual report.

An approved producer plan shall expire after 5 years.

There is a State Recycling Trust Fund. There is a separate account within the fund. The separate account shall consist of any fees collected from producer responsibility organizations and all fines and penalties collected. The separate account shall be used only for the costs of statewide recycling needs assessments and producer responsibility plan review, oversight, and enforcement.

Beginning March 1, 2028, each producer or producer responsibility organization that has an approved producer responsibility plan on file with the department shall report annually to the department on the progress toward meeting plan requirements and goals for the immediately preceding calendar year.

A producer or producer responsibility organization that violates this subtitle is subject to:
First violation, an administrative penalty of $5,000
Second violation, an administrative penalty of $10,000
Third or subsequent violation, a civil penalty of $20,000

A penalty may not be imposed on a producer under this section unless the department first issues a written notice of violation to the producer and the violation is not corrected within 60 days after receipt of the written notice.

Education and outreach must provide recycling and organics recycling instructions that are, to the extent practicable consistent statewide, taking into account differences among local laws and processing capabilities.

Education and outreach must promote the responsible end–of–life management of packaging materials.

Education and outreach must provide information on how to prevent litter of packaging materials.

Education and outreach must be coordinated across programs to avoid confusion and be developed in consultation with local governments and other stakeholders.

The producer responsibility organization must describe in the plan how stakeholder and advisory board comments were considered in the plan.

The advisory council includes up to 21 representatives from the following industries or entities in the State:

1. Local government agencies responsible for recycling programs
2. Recyclables and compostable materials collectors from both the public and private sectors
3. Recycling processors from both the public and private sectors
4. Organics recycling processors
5. Producers from the consumer goods sector
6. Retail and small businesses
7. Material–oriented trade groups;
8. A representative from the producer responsibility organization
9. Representatives of at least two nonprofit organizations in the State with missions related to reducing waste
10. At least one representative of an environmental advocacy organization
11. At least one representative of an advocacy organization that advocates on behalf of overburdened or underserved communities
12. At least two members of the public who reside in the State.

A member of a producer responsibility organization may not serve as a voting member or as a cochair of the advisory council.

Any person participating in a producer responsibility plan in compliance is immune from liability under state law relating to antitrust and restraint of trade for any cooperated activities arising out of the recycling, reuse, and disposal of packaging materials.

On or before July 30, 2034, and at least once every 10 years thereafter, the office shall hire an independent consultant to conduct a statewide recycling needs assessment to inform the provision of recycling services in the state.

The office shall establish and collect a fee to be paid by producer responsibility organizations to cover the costs associated with conducting an assessment.

This subtitle does not affect the authority of the state or a local jurisdiction to regulate the sale or use of any packaging material.

This subtitle may not be construed to:
Prohibit a local government or any other entity from selling recycled materials or compost to end markets and retaining the revenues from those sales

Affect the authority of a publicly or privately owned materials recycling facility or organics recycling facility to determine which entities may use the facility

Limit the ability of local governments, materials recycling facilities, or organics recycling facilities to make decisions on recycling infrastructure purchases, including processing equipment"