(1) Includes:

(i) An individual facility owned or operated by a local school system;

(ii) An individual public primary or secondary school;

(iii) An individual nonpublic school;

(iv) A supermarket, convenience store, mini-mart, or similar establishment;

(v) A business, school, or institutional cafeteria; and

(vi) A cafeteria operated by or on behalf of the State or a local government; and

(2) Does not include:

(i) The aggregate of all school buildings and facilities in a local school system; or

(ii) A restaurant establishment that:

1. Accommodates the public; and

2. Is equipped with a dining room with facilities for preparing and serving regular meals.

(b) This section applies only to a person that:

(1) (i) On or after January 1, 2023, generates at least 2 tons of food residuals each week; and

(ii) On or after January 1, 2024, generates at least 1 ton of food residuals each week; and

(2) Generates the food residuals at a location that is within a 30-mile radius of an organics recycling facility that:

(i) Has the capacity to accept and process all of the person’s food residuals;

(ii) Is willing to accept all of the person’s food residuals for recycling; and

(iii) Is willing to enter into a contract to accept and process the person’s food residuals.

(c) Except as provided in subsection (d) of this section, a person that generates food residuals shall:

(1) Separate the food residuals from other solid waste; and

(2) Ensure that the food residuals are diverted from final disposal in a refuse disposal system by:

(i) Reducing the amount of food residuals generated by the person;

(ii) Donating servable food;

(iii) Managing the food residuals in an organics recycling system installed on-site;

(iv) Providing for the collection and transportation of the food residuals for agricultural use, including for use as animal feed;

(v) Providing for the collection and transportation of the food residuals for processing in an organics recycling facility; or

(vi) Engaging in any combination of the waste diversion activities listed under items (i) through (v) of this item.

(d) (1) A person that generates food residuals may apply to the Department for a waiver from the requirements of subsection (c) of this section.

(2) The Department may grant a waiver under paragraph (1) of this subsection if the person demonstrates, to the satisfaction of the Department, undue hardship because of the following:

(i) The cost of diverting food residuals from a refuse disposal system is more than 10% more expensive than the cost of disposing the food residuals at a refuse disposal system; or

(ii) Other reasonable circumstances.

(3) The Department shall establish waiver application procedures to carry out this subsection.

(e) On or before December 1, 2023, and each December 1 thereafter, the Department shall report to the General Assembly, in accordance with § 2-1257 of the State Government Article, on the implementation of this section, including the impacts on waste diversion in the State.

(f) (1) The Department shall issue a warning to a person who violates this section or any rule or regulation adopted under this section.

(2) After receiving a warning issued under paragraph (1) of this subsection, a person who subsequently violates this section, or any rule or regulation adopted under this section, shall be subject to a civil penalty, to be collected in a civil action brought by the Department, of:

(i) $250 for the second violation;

(ii) $500 for the third violation; and

(iii) $1,000 for the fourth and each subsequent violation.

(3) Each day a violation occurs is a separate violation under this section.

(4) Penalties collected under this subsection shall be distributed to a special fund, to be used only to finance incentives that encourage food waste reduction and composting in the State.