Maryland Senate Bill 901 Amended (2025) - (Amended)

Covered materials does not include exempt materials.

Covered material type means a singular and specific type of covered material, such as paper, plastic, metal, or glass, that:
(1) can be categorized based on distinguishing chemical or physical properties, including properties that allow the material type to be aggregated into a discrete commodity category for purposes of reuse, recycling, or composting; and
(2) is based on similar uses in the form of a product or package.

Packaging materials means a material, a substance, or an object that is used to protect, contain, transport, serve, or facilitate the delivery of a product that is sold or supplied with the product to the consumer for personal, noncommercial use and that is sold, offered for sale, imported, or distributed in the state.

Packaging 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:

1. Carry–out bags
2. Bulk goods bags
3. Take–out and home delivery food service packaging
4. Beverage containers"

Paper Products are products made primarily from wood pulp or other cellulosic fibers.

Exempt Material refers to any material or portion of a material that meets the following criteria:

Infant Formula Packaging – Packaging used for infant formula.

Medical Food Packaging – Packaging used for medical food.

Nutritional Supplement Packaging – Packaging for fortified oral nutritional supplements used by individuals requiring supplemental or sole-source nutrition due to the following conditions: Cancer
Chronic kidney disease
Diabetes
Malnutrition
Failure to thrive

FDA-Regulated Drug or Medical Device Packaging – Packaging for products regulated as drugs or medical devices by the U.S. Food and Drug Administration (FDA), including associated components and consumable medical equipment.

FDA-Regulated Medical Equipment Packaging – Packaging for medical equipment or products used in medical settings and regulated by the FDA, including associated components and consumable medical equipment.

Animal Treatment Products – Packaging for drugs, biological products, parasiticides, medical devices, or in vitro diagnostics used to treat or administer to animals and regulated by: The FDA under the Federal Food, Drug, and Cosmetic Act; The U.S. Department of Agriculture under the Federal Virus-Serum-Toxin Act.

EPA-Regulated Packaging – Packaging for products regulated by the U.S. Environmental Protection Agency (EPA) under the Federal Insecticide, Fungicide, and Rodenticide Act.

Refillable LPG Packaging – Packaging used to contain liquefied petroleum gas (LPG) that is designed to be refilled.

Newsprint – Newsprint subject to § 9–1707 of this title.

Small-Circulation Magazine Paper – Paper products used for magazines with a circulation of less than 95,000 that primarily include content derived from primary sources related to news and current events.

Hazardous or Flammable Product Packaging – Packaging for hazardous or flammable products regulated under the 2012 Federal Occupational Safety and Health Administration (OSHA) Hazard Communication Standard, where waste reduction, reuse, recycling, or composting is deemed unfeasible by the Department.

Paint Stewardship Program Packaging – Packaging collected and properly managed through the paint stewardship program under Subtitle 17, Part V of this title.

Inter-Producer Material – Material distributed from one producer to another that: Is subsequently used to contain a product distributed to a commercial business or entity; and is not introduced to any individual other than the initial commercial business or entity.

Bound books; or

Products that are not accepted by materials recycling facilities or composting facilities due to their unsafe or unsanitary nature.

A single-family or multi-family residence is a covered entity.

A public building owned or operated by the state of a local government is a covered entity.

A childcare center, a public or nonpublic kindergarten, elementary, or secondary school is a covered entity.

For items sold in or with packaging at a physical retail location: If the item is sold in or with packaging under the brand of the item manufacturer or is sold in packaging that lacks identification of a brand, the producer is the person that manufactures the item.

For items sold or distributed via e-commerce, remote sale, or distribution: For packaging used to directly protect or contain the item the producer is the the same. For packaging used to ship the item to a consumer the producer is the person that packages the item to be shipped to the consumer.

For paper products that are magazines, catalogs, telephone directories, or similar publications, the producer is the publisher.

For other paper products:
If the paper product is sold under the manufacturer's own brand, the producer is the person that manufactures the paper product.

For items sold in or with packaging at a physical retail location: If there is no brand or brand item manufacturer, the producer is the person that is licensed to manufacture and sell an item with packaging under the brand or trademark of another manufacturer or person. If there is no licensed person then the producer is the brand owner.

For items sold or distributed via e-commerce, remote sale, or distribution The person who first distributes the item is the producer.

For other paper products:
If there is no manufacturers own brand, then the producer is the person that is the owner or licensee of brand or trademark under which the paper product is used in a commercial enterprise, sold, offered for sale, or distributed in or into this state, whether or not the trademark is registered. If there is no licensee, the manufacturer of the paper product is the producer.

For items sold in or with packaging at a physical retail location: If there is no brand or licensee, then the producer is the person who is the importer of record for the item. If there is no brand, licensee, or importer then the producer is the person that first distributes the item.

For other paper products:
If there is no brand or licensee, then the producer is the person who imports the paper product into the United States. If there is no brand, licensee, or importer then the producer is the person that first distributes the paper product in or into the state.

Producer does not include:

1. De minimis producers - de minimis producer means a person that in their most recent fiscal year: introduced less than 1 ton of covered material into the state; or earned global gross revenues of less than $2,000,000.

2. A mill that uses any virgin wood fiber in the products it produces and a paper mill that produces container board derived from 100% post consumer recycled content and non post consumer recycled content.

3. A producer that has executed an agreement with another entity, under which the other entity has agreed to assume responsibility by written certification under a producer responsibility program for any packaging materials attributable to the first entity.

4. 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.

5. 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.

6. 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.

7. 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 state, federal or state agency, a political subdivision, or other governmental unit.

Producer does not include registered 501(c)(3) charitable organizations or 501(c)(4) social welfare organizations.

Producers must join a producer responsibility organization.

On or after July 1, 2033, 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 covered 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 is responsible for the costs and operations by providing service or contracting with public and private service providers.
Reimbursement rates must be established equivalent to net costs as established by a methodology in an approved plan as follows:

(1) No less than 50 percent of the net costs by July 1, 2028
(2) No less than 75 percent of the net costs by July 1, 2029
(3) No less than 90 percent of the net costs by July 1, 2030 and each year thereafter

The cost coverage must include reimbursement for costs associated with transporting, collecting, and processing covered 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, composting, 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, composting, and recycling.

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

Fees will be eco-modulated.

The fees will be higher for low recycled content in 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 and via the approval, shall establish performance goals for each covered material type using a baseline year that is informed by the statewide recycling needs assessment, including establishing recycling rate goals for each covered material type, at 5–, 10–, and 15–year intervals.

The performance goals established do not apply to:

1. Products packaged at establishments under mandatory inspection by the U.S. Department of Agriculture’s food safety and inspection service in accordance with the federal meat inspection act, the federal poultry products inspection act, the federal egg products inspection act, or U.S. department of agriculture or U.S. food and drug administration regulations related to cheese packaging.

2. Products packaged at facilities regulated under state meat and dairy inspection laws; or

3. For a period of five years after the date on which the first version of the plan is approved and established, with an optional five-year extension contingent on the development of recycling, including organics recycling, infrastructure capable of handling pathogen-contaminated packaging safely and effectively, cheese, meat, and poultry prepared and packaged at retail locations such as grocery stores, butcher shops, or online retailers.

In the plan the PRO must require achievement within five years of the initial plan's approval and establish the following performance goals, as relevant and appropriate, for each type of covered packaging material:

Recycling rates
Composting rates
Reuse rates
Return rates
Percentage of covered materials reduced as waste
Required percentage of postconsumer recycled content in covered materials, including:
The overall percentage for all applicable covered materials.
Exemptions for compostable materials that cannot contain postconsumer recycled content due to unique chemical or physical properties or health and safety requirements.
Greenhouse gas reduction goals

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.

Covered materials in the list developed shall be collected at an optimal level of service and convenience for covered entities and at a minimum, wherever collection services for mixed municipal solid waste are available.

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, 2026, and each year thereafter, the approved producer responsibility organization shall file a registration form with the department. The PRO shall pay an annual registration fee set by the department.

On or before July 1, 2028, 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 July 1, 2029, 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.

The PRO must include in the plan labor standards and safety practices, including safety programs, health benefits, and living wages.

Education and outreach must provide recycling and composting 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 covered materials.

Education and outreach must provide information on how to prevent litter of covered 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 council comments were considered in the plan.

The advisory council includes 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. Representatives of at least two nonprofit organizations in the State with missions related to reducing waste
9. At least one representative of an environmental advocacy organization
10. At least one representative of an advocacy organization that advocates on behalf of overburdened or underserved communities
11. At least two members of the public who reside in the State

The following nonvoting members, who may not serve as cochairs of the advisory council:

1. A representative of the producer responsibility organization approved by the department
2. The director of the department’s land and materials administration, or the director’s designee

Recycling means the process of collecting, sorting, cleansing, treating, and constituting materials that would otherwise be disposed of and returning them to or maintaining them with the economic mainstream in the form of recovered material for new, reused, or reconstituted products that meet the quality standards necessary to be used in the marketplace.

Recycling does not include: landfilling, combustion, incineration, energy generation, fuel production or alternative daily cover or other forms of use or disposal within the footprint of a landfill.

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 covered materials.

The Producer Responsibility Organization will fund the program through producer fees, without imposing new or additional consumer-facing fees on the public, businesses, service providers, the state, political subdivisions, or any non-producer—unless the fee is:

A refundable deposit for a product’s refill, reuse, or recycling, redeemable by the consumer; or

A service charge by a service provider, regardless of registration status.

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.

On or before July 1, 2027, the department shall develop a statewide list of covered materials determined to be recyclable or compostable through curbside recycling programs. The list will be developed with the advisory council, PRO, service providers, local governments, and interested parties.

Reusable means being capable of reuse.

Reuse means the return of a covered material to the marketplace and the continued use of the covered material by a producer or service provider when the covered material is:
(1) Intentionally designed and marketed to be used multiple times for its original intended purpose without a change in form
(2) Designed for durability and maintenance to extend its useful life and reduce demand for new production of the covered material
(3) Supported by adequate logistics and infrastructure at a retail location, by a service provider, or on behalf of or by a producer, that provides convenient access for consumers
(4) Compliant with applicable federal, state, and local statutes, rules, ordinances, and other laws governing health and safety

Return rate means the amount of reusable covered material, in aggregate or by individual covered materials type, collected for reuse by a producer or service provider in a calendar year, divided by the total amount of reusable covered materials sold or distributed into the state by the relevant unit of measurement.

Starting July 1, 2026, and in accordance with this subsection and any regulations adopted by the Department, a producer or group of producers may develop and operate an alternative collection program to collect and manage specific types of covered materials sold, offered for sale, or distributed for sale in the state.

This subtitle may not be construed to:

Prohibit a local government, service provider, or any other entity from selling recycled materials or compost to end markets and retaining the revenue from those sales.

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

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