California 2013 bill text

AB 521 (May 7 amended version)

The following text was found at http://www.leginfo.ca.gov/pub/13-14/bill/asm/ab_0501-0550/ab_521_bill_20130507_amended_asm_v96.html

   AB 521, as amended, Stone. Recycling: marine plastic pollution.
   The California Integrated Waste Management Act of 1989,
administered by the Department of Resources Recycling and Recovery,
requires every rigid plastic packaging container, as defined, sold or
offered for sale in this state to generally meet one of specified
criteria.
   This bill would require the department, by June 1, 2014, in
coordination with the Ocean Protection Council and the State Water
Resources Control Board, to adopt regulations to implement the bill.
The department would be required, by July 1, 2014, in consultation
with the council and the state water board, to adopt a list that
specifies those items, or categories of items, that the department
finds are the major sources of marine plastic pollution and,
therefore, would be a covered item for purposes of the bill, and to
revise the list, as specified.
   The department would be required to notify the producer of a
covered item, and no later than 6 months after receiving that
notification, the producer of that covered item would be required to
design and submit to the department a plan to reduce the producer's
proportion of the marine plastic pollution caused by that covered
item for review and approval by the department. The bill would
authorize one or more producers of a covered item to designate a
producer responsibility organization to act as its agent to develop
and implement the plan. The bill would require the plan to specify
the measures to meet the marine plastic pollution reduction targets
that the producer of the covered item would be required to achieve,
as specified in the regulations, and would require the measures to
include utilization of innovative product design, the recovery,
collection, or recycling of the covered item, or a combination of
those measures. The department would be required to recover the cost
of reviewing and approving the marine plastic pollution reduction
plan by requiring the producer to pay a fee to the department, which
the department would be required to set in an amount equivalent to
the department's costs of implementing the bill. The bill would
establish the Marine Plastic Pollution Prevention Subaccount in the
Integrated Waste Management Fund, would require the department to
deposit the fees into that subaccount, and would authorize the
department to expend those fees, upon appropriation by the
Legislature, to cover the department's costs to implement the bill.
   The bill would authorize the department to impose a civil penalty
administratively on a producer that is in violation of the bill. The
bill would establish the Marine Plastic Pollution Penalty Subaccount
in the Integrated Waste Management Fund, and would require the
collected civil penalties to be deposited in the Marine Plastic
Pollution Penalty Subaccount for expenditure by the department, upon
appropriation by the Legislature, to cover the department's costs to
enforce the bill.
   The bill would authorize a producer, in lieu of submitting a
marine plastic pollution reduction plan to the department, to
voluntarily elect to pay an  annual  alternative compliance
fee to the department, which the department would be required to set
in a specified amount and revise periodically. The department would
be required to deposit the alternative compliance fees in the Marine
Plastic Pollution Fund, which the bill would establish in the State
Treasury. The department would be authorized to expend the moneys in
the fund, upon appropriation by the Legislature, in a specified
manner, for innovative product design for the covered item and for
recovery, collection, and recycling programs to prevent the marine
plastic pollution caused by the covered item.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Chapter 20.5 (commencing with Section 42985) is added
to Part 3 of Division 30 of the Public Resources Code, to read:
      CHAPTER 20.5.  MARINE PLASTIC POLLUTION



      Article 1.  Definitions


   42985.  For purposes of this chapter, the following terms have the
following meanings:
   (a) "Council" means the Ocean Protection Council.
   (b) "Covered item" or "category of covered items" means a source
of marine plastic pollution listed by the department pursuant to
Section 42985.2.
   (c) "Marine plastic pollution" means plastic that is found in
rivers, streams, riparian habitats, beaches, and the marine
environment.
    (d) "Producer" means one of the following:
   (1) A person that manufactures a covered item and sells, offers
for sale, distributes, or uses that covered item in a commercial
enterprise under the person's own brand.
   (2) If there is no person that meets the conditions of paragraph
(1) with regard to that covered item, the producer is the owner or
licensee of a trademark under which the covered item is sold,
distributed, or used in a commercial enterprise in the state, whether
or not the trademark is registered.
   (3) If there is no person that meets the conditions of paragraphs
(1) or (2) with regard to that covered item, the producer is the
person that imports the covered item into the state for sale,
distribution, or use in a commercial enterprise.
   (e) "Producer responsibility organization" means an organization
designated by a group of producers to act as an agent on behalf of
each producer to develop and operate a marine plastic pollution
reduction plan for covered items.
   (f) (1) "Recovery" means retrieval or diversion from disposal or
from a transformation facility, for the purpose of recycling, reuse,
or composting.
   (2) Recovery does not include transformation.
   (g) (1) "Transformation" means the conversion, combustion, or
other processing of solid waste by incineration, pyrolysis,
destructive distillation, or gasification, or to chemically or
biologically process solid waste, for the purposes of volume
reduction, synthetic fuel production, or energy recovery.
   (2) Transformation does not include anaerobic digestion or
composting.

      Article 2.  Covered Items


   42985.1.  (a) On or before June 1, 2014, the department, in
coordination with the council and the state water board, shall adopt
regulations for the implementation of this chapter.
   (b) The regulations shall include, but are not limited to,
procedures for the identification and listing of covered items and
categories of covered items, requirements for the contents, review,
and approval of marine plastic pollution reduction plans submitted
pursuant to Article 3 (commencing with Section 42985.5), and
procedures for the calculation of the amount and collection of the
alternative compliance fee specified in Article 4 (commencing with
Section 42985.8).
   (c) (1) The regulations shall establish marine plastic pollution
reduction targets for a producer of a covered item to achieve in
implementing a marine plastic pollution reduction plan.
   (2) In establishing those targets, the department shall determine
the proportion of pollution reduction of a covered item in the state
that each producer is required to achieve based, in part, on the
producer's total sales of the covered item in the state.
   (3) In setting the reduction targets, the department shall use as
its goals an overall reduction in the amount of marine plastic
pollution from land-based sources by 75 percent in the year 2020 and
95 percent by 2025, as compared to the baseline amount on June 1,
2014. The departments shall establish the baseline using the best
available information against which the reduction targets can be
measured.
   42985.2.  (a) On or before July 1, 2014, the department shall, in
consultation with the council and the state water board, adopt a list
that specifies those items, or categories of items, that the
department finds are the major sources of marine plastic pollution in
the state. An item that is listed pursuant to this section is a
covered item for purposes of this chapter.
   (b) The department shall adopt the list specified in subdivision
(a) using the best data that is available as of July 1, 2014, and is
not required to conduct any additional studies or research for
purposes of adopting that list.
   (c) The department may exclude an item from the list adopted
pursuant to this section if the department determines the item is
subject to effective marine plastic pollution prevention policies.
   (d) The department shall revise the list adopted pursuant to
subdivision (a) as additional studies or research are made available
to the department.
   42985.3.  The department shall notify the producer of a covered
item listed pursuant to Section 42985.2 in accordance with the
regulations adopted by the department.
   42985.4.  One or more producers may designate a producer
responsibility organization to act as its agent to develop and
implement a marine plastic pollution reduction plan for a covered
item pursuant to Article 3 (commencing with Section 42985.5).

      Article 3.  Marine Plastic Pollution Reduction Plan


   42985.5.  Except as provided in Article 4 (commencing with Section
42985.8), no later than six months after receiving a notification
pursuant to Section 42985.3, the producer, or a producer
responsibility organization appointed by a producer, of that covered
item shall design and submit to the department a plan to reduce the
marine plastic pollution caused by that covered item, which shall
include both of the following:
   (a) Measures to meet the producer's marine plastic pollution
reduction targets, as calculated pursuant to the regulations adopted
pursuant to Section 42985.1, which shall include utilization of
innovative product design, the recovery, collection, or recycling of
the covered item, or any one or combination of these measures.
   (b) Measures for monitoring, measuring, assessing, and reporting
on the progress made towards the marine plastic pollution reduction
targets specified in the regulations.
   42985.6.  (a) The department, in consultation with the council and
the state water board, shall review the marine plastic pollution
reduction plan required to be prepared pursuant to Section 42985.5
and shall determine whether the plan is likely to meet the plan's
goals and plastic pollution reduction targets. If the department
determines the plan is likely to meet the plan's goals and plastic
pollution reduction targets, the plan shall be deemed approved by the
department. If the department determines the plan is not likely to
meet those goals and targets, the department  may 
 shall  require the marine plastic pollution reduction plan
to be revised, pursuant to the regulations adopted by the department.

   (b) The department shall recover the cost of reviewing and
approving the marine plastic pollution reduction plan by requiring a
producer to pay a fee to the department. The department shall set the
fee in an amount equivalent to the department's costs of
implementing this chapter, with regard to that producer.
   (c) The Marine Plastic Pollution Prevention Subaccount is hereby
established in the Integrated Waste Management Fund. The department
shall deposit the fees collected pursuant to this section into the
Marine Plastic Pollution Prevention Subaccount and may expend those
fees, upon appropriation by the Legislature, to cover the department'
s costs to implement this chapter.
    (d) The department shall periodically review the progress of a
producer in implementing, and meeting the targets specified in, the
producer's marine plastic pollution reduction plan.
   42985.7.  (a) A civil penalty of up to the following amounts may
be administratively imposed by the department on a producer who is in
violation of this chapter:
   (1) One thousand dollars ($1,000) per day per violation.
   (2) Ten thousand dollars ($10,000) per day per violation if the
violation is intentional, knowing, or negligent.
    (b) The Marine Plastic Pollution Penalty Subaccount is hereby
established in the Integrated Waste Management Fund.
   (c) All civil penalties collected pursuant to this chapter shall
be deposited in the Marine Plastic Pollution Penalty Subaccount and
may be expended by the department, upon appropriation by the
Legislature, to cover the department's costs to enforce this chapter.


      Article 4.  Alternative Compliance Program


   42985.8.  (a) In lieu of submitting a marine plastic pollution
reduction plan to the department pursuant to Article 3 (commencing
with Section 42985.5), a producer may voluntarily elect to pay an
 annual  alternative compliance fee to the department.
   (b) The department shall set the amount of the  annual 
alternative compliance fee in the regulations adopted pursuant to
Section 42985.2, which shall be no greater than the amount that the
producer would expend in complying with the requirements of Article 3
(commencing with Section 42985.5). The department shall periodically
revise the amount of the alternative compliance fee.
   (c) The department shall deposit the alternative compliance fees
in the Marine Plastic Pollution Fund, which is hereby established in
the State Treasury. The department may expend the moneys in the fund,
upon appropriation by the Legislature, for both of the following
purposes, in the manner specified in subdivision (d):
   (1) Innovative product design for the covered item.
   (2) Recovery, collection, and recycling programs to prevent marine
plastic pollution caused by the covered item.
   (d) The department may expend the funds in the Marine Plastic
Pollution Fund by directly expending those funds, by transferring
those funds to other state agencies, or by providing grants to local
governments or other entities deemed eligible by the department,
including, but not limited to, nongovernmental organizations and
conservation corps.

AB 744

The following text was found at http://www.leginfo.ca.gov/pub/13-14/bill/asm/ab_0701-0750/ab_744_bill_20130221_introduced.html

            AB 744, as introduced, Gordon. Recycling: beverage containers.
   Existing law, the California Beverage Container Recycling and
Litter Reduction Act, requires the Department of Resources Recycling
and Recovery to establish reporting periods of every 6 months for
redemption rates and recycling rates for specified types of beverage
containers, to determine those rates for each reporting period, and
to issue a report on those determinations. The act defines various
terms for purposes of those provisions, including "redemption rate."
   This bill would delete the provisions that require the department
to establish the reporting periods for the redemption rates and to
determine the redemption rates for specified types of beverage
containers. The bill also would delete the definition of the term
"redemption rate."
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 14523.5 of the Public Resources Code is
repealed. 
   14523.5.  "Redemption rate" means the proportion of empty beverage
containers returned to processors measured in the manner prescribed
in Section 14551. 
  SEC. 2.  Section 14551 of the Public Resources Code is amended to
read:
   14551.  (a) The department shall establish reporting periods for
the reporting of  redemption rates and  recycling
rates. Each reporting period shall be six months. The department
shall determine all of the following for each reporting period and
shall issue a report on its determinations, within 130 days of the
end of each reporting period:
   (1) Sales of beverages in aluminum beverage containers, bimetal
beverage containers, glass beverage containers, plastic beverage
containers, and other beverage containers in this state, including
refillable beverage containers.
   (2) Returns for recycling, and returns not for recycling, of empty
aluminum beverage containers, bimetal beverage containers, glass
beverage containers, plastic beverage containers, and other beverage
containers in this state, including refillable beverage containers
returned to distributors pursuant to Section 14572.5. These numbers
shall be calculated using the average current weights of beverage
containers, as determined and reported by the department.  To
these numbers shall be added and separately reported the following,
if greater than, or equal to, zero:  
   (A) All empty postfilled aluminum, glass, and plastic food or
drink packaging materials sold in the state, returned for recycling,
and reported by weight to the department which do not have a refund
value less the number specified in subparagraph (B). 

   (B) The number of beverage containers which comprise the first
five percentage points of the redemption rate without including the
empty postfilled aluminum, glass, and plastic food or drink packaging
materials sold in the state, returned for recycling and reported by
weight to the department which do not have a refund value. 

   (3) An aluminum beverage container redemption rate, the numerator
of which shall be the number of empty aluminum beverage containers
returned, including refillable aluminum beverage containers and empty
postfilled aluminum food or drink packaging material included in
paragraph (2), and the denominator of which shall be the number of
aluminum beverage containers sold in this state.  
   (4) 
    (3)  An aluminum beverage container recycling rate, the
numerator of which shall be the number of empty aluminum beverage
containers returned for recycling, including refillable aluminum
beverage containers, and the denominator of which shall be the number
of aluminum beverage containers sold in this state. 
   (5) A bimetal beverage container redemption rate, the numerator of
which shall be the number of empty bimetal beverage containers
returned, and the denominator of which shall be the number of bimetal
beverage containers sold in this state.  
   (6) 
    (4)  A bimetal beverage container recycling rate, the
numerator of which shall be the number of empty bimetal containers
returned for recycling, including refillable bimetal beverage
containers, and the denominator of which shall be the number of
bimetal beverage containers sold in this state. 
   (7) A glass beverage container redemption rate, the numerator of
which shall be the number of empty glass beverage containers
returned, including refillable glass beverage containers and empty
postfilled food or drink packaging materials included in paragraph
(2), and the denominator of which shall be the number of glass
beverage containers sold in this state.  
   (8) 
    (5)  A glass beverage container recycling rate, the
numerator of which shall be the number of empty glass beverage
containers returned for recycling, including refillable glass
beverage containers, and the denominator of which shall be the number
of glass beverage containers sold in this state. 
   (9) A plastic beverage container redemption rate, the numerator of
which shall be the number of empty plastic beverage containers
returned, including refillable plastic beverage containers and empty
postfilled food or drink packaging materials included in paragraph
(2), and the denominator of which shall be the number of plastic
beverage containers sold in this state.  
   (10) 
    (6)  A plastic beverage container recycling rate, the
numerator of which shall be the number of empty plastic beverage
containers returned for recycling, including refillable plastic
beverage containers, and the denominator of which shall be the number
of plastic beverage containers sold in this state. 
   (11) A redemption rate for other beverage containers, the
numerator of which shall be the number of empty beverage containers
other than those containers specified in paragraphs (1) to (10),
inclusive, returned, and the denominator of which shall be the number
of beverage containers, other than those containers specified in
paragraphs (1) to (10), inclusive, sold in this state. 

   (12) 
    (7)  A recycling rate for other beverage containers, the
numerator of which shall be the number of empty beverage containers
other than those containers specified in paragraphs (1) to 
(10)   (6)  , inclusive, returned for recycling,
and the denominator of which shall be the number of beverage
containers, other than those containers specified in paragraphs (1)
to  (10)   (6)  , inclusive, sold in this
state. 
   (13) 
    (8)  The department may define categories of other
beverage containers, and report  a redemption rate and
 a recycling rate for each  such category 
 of those categories  of other beverage containers. 

   (14)
    (9)  The volumes of materials collected from certified
recycling centers, by city or county, as requested by the city or
county, if the reporting is consistent with the procedures
established pursuant to Section 14554 to protect proprietary
information.
   (b) The department shall determine the manner of collecting the
information for the reports specified in subdivision (a), including
establishing procedures, to protect any proprietary information
concerning the sales and purchases.
        

AB 1001

First Amended Version

	LEGISLATIVE COUNSEL'S DIGEST


   AB 1001, as amended, Gordon.  Beverage containers:
plastic.   Recycling: voluntary beverage containers.
 
   (1) Existing law, the California Beverage Container Recycling and
Litter Reduction Act, requires a distributor to pay a redemption
payment for every beverage container sold or offered for sale in the
state to the Department of Resources Recycling and Recovery. The
department is required to deposit those amounts in the California
Beverage Container Recycling Fund. The act defines the term beverage
as including specified types of beverages that are sold in aluminum
beverage containers, glass beverage containers, plastic beverage
containers, or bimetal containers.  
   This bill would define the term "regulated beverage" as a beverage
that meets the definition of beverage under the act, but is sold in
a beverage container that is not one of those containers. The bill
would also include, as a regulated beverage, 100% fruit juice in a
container that is 46 ounces or more in volume and vegetable juice in
a container that is more than 16 ounces in volume.  
   The bill would require a distributor of regulated beverage
containers to submit a plan, by January 1, 2014, to the department
for the implementation of a takeback and recycling system
incorporating specified elements, to implement the plan, and to
annually demonstrate to the department that not less than 80% of the
regulated beverages sold by the distributor in this state are
recycled and that the regulated beverage containers sold by the
distributor are made from material containing not less than 35%
postconsumer recycled content. The bill would authorize the
department to require a distributor to pay an annual administrative
fee that would be required to be set at an amount that is adequate to
cover the department's full costs of administering and enforcing
this program. The bill would require the department to deposit the
fees into the Regulated Beverage Account, which the bill would
establish in the State Treasury. The bill would authorize the
department to expend the moneys in the Regulated Beverage Account,
upon appropriation by the Legislature, to cover the department's
costs to implement the program.  
   The bill would allow a distributor, in lieu of submitting and
implementing a takeback and recycling system, to elect to pay a
redemption payment to the department pursuant to the act and to
otherwise comply with the act. The bill would require the department
to deposit the redemption payments by distributors for voluntary
beverage containers into the Voluntary Beverage Container Fund, which
the bill would create in the State Treasury. The bill would
continuously appropriate the money in the Voluntary Beverage
Container Fund to the department for the payment of refund values and
administrative fees to processors for voluntary beverage containers,
and as a reserve for contingencies, thereby making an appropriation.
The bill would also provide that the money in the Voluntary Beverage
Container Fund may be expended by the department for the
administration of the act only upon appropriation by the Legislature.
 
   The bill would require the department to establish a separate
processing fee account in the Voluntary Beverage Container Fund for
voluntary beverage containers and would require all amounts paid as
processing fees for those voluntary beverage containers be deposited
in that account. The bill would continuously appropriate those funds
to the department for purposes of making processing payments for
voluntary beverage containers. The bill would require the department,
once every 3 months, to set aside funds estimated to be needed for
the expenditures specified above. The bill would continuously
appropriate the remainder of those funds to the department to pay
handling fees for voluntary beverage containers and to make payments
for the collection of voluntary beverage containers by curbside
programs and neighborhood dropoff programs. The bill would make other
conforming changes to the act with regard to voluntary beverage
containers.  
   (2) The act requires the department to certify recycling centers
and requires, as a condition of certification, that if one or more
certified entities have operated at the same location within the past
5 years, the operations at the location of the recycling center
exhibit, to the satisfaction of the department, a pattern of
operation in compliance with the requirements of the act.  
   This bill would authorize the department to waive this requirement
if it makes a specified determination.  
   (3) Existing law requires the department to annually review and
recalculate commingled rates paid for beverage containers and
postfilled containers paid to curbside recycling programs, collection
programs, and recycling centers.  
    This bill would prohibit the department from recalculating
commingled rates for the 2014, 2015, and 2016 calendar years paid to
recycling centers and would prohibit recycling centers from paying
any refund value at a commingled rate.  
    (4) Existing law specifies requirements for the reports, claims,
and information required to be submitted to the department pursuant
to the act.  
   This bill would require the department to make available a process
for electronically submitting these reports, claims, and other
information and would require those reports, claims, and other
information to be submitted electronically to the department pursuant
to that process. The bill would make conforming changes with regard
to the electronic submission of reports and payments to the
department.  
   (5) Existing law specifies procedures for the reduction of the
processing fee for PET containers, as defined. Existing law also
requires all rigid plastic bottles and rigid plastic containers to be
labeled with a code that indicates the resin used to produce the
rigid plastic bottle or rigid plastic container.  
   This bill would revise the definition of the term "PET container"
for purposes of the act to include a plastic beverage container
labeled with the term PETE.  
   (6) The act defines "convenience zone" for the purposes of the act
and requires that every convenience zone be served by at least one
certified recycling center, with specified operating hours. Existing
law authorizes the department to designate a convenience zone in an
area where there is no supermarket and to grant an exemption from the
convenience zone requirements of the act.  
   This bill would define the term "unserved convenience zone" and
would require the department to provide assistance and incentives to
reduce the number of unserved convenience zones to less than 5% of
total convenience zones by January 1, 2015.  
   This bill would permit the department to authorize an operator of
a certified recycling center to be open for business less than 30
hours per week, but not less than 20 hours per week, if the recycling
center is located in an unserved convenience zone, as defined, that
has been unserved for at least 6 continuous months.  
   This bill would prohibit the director from granting an exemption
if a certified recycling center will not be operating in a
convenience zone in which is located a supermarket and would repeal
the authority to designate a convenience zone in an area where there
is no supermarket.  
    (7) Existing law prohibits a lease entered into by a dealer to
contain a leasehold restriction that prohibits or results in the
prohibition of the establishment of a recycling location. Existing
law prohibits the department from making any payments, grants, or
loans, to a city or county that has adopted or is enforcing a land
use restriction that prevents the siting or operation of a certified
recycling center at a supermarket site  
   This bill would prohibit a person from entering into a lease with
a supermarket on or after January 1, 2014, that prohibits the
operation of a certified recycling center or inhibits the ability of
that supermarket to operate as, or contract with, a certified
recycling center. This bill would also prohibit a city or county that
receives any revenue pursuant to the Bradley-Burns Uniform Local
Sales and Use Tax Law from a transaction conducted by a supermarket
from prohibiting the siting of a certified recycling center in the
parking lot of a supermarket.  
   (8) After setting aside funds for the payment of refund values and
administrative fees, and for a reserve for contingencies, the act
provides that the remaining moneys in the fund are continuously
appropriated to the department for expenditure for designated
programs, grants, and fee payments, including annually expending
$15,000,000 for grants for beverage container programs to certain
community conservation corps and $1,500,000 for grants for beverage
container programs.  
   This bill would increase the amount the department is authorized
to spend for grants for beverage container programs to certain
community conservation corps to $21,000,000 and would delete the
authorization to expend that $1,500,000 for those other grants,
thereby making an appropriation.  
   (9) The act continuously appropriates to the department the amount
necessary to pay handling fees to provide an incentive for the
redemption of empty beverage containers in convenience zones.
Existing law specifies procedures for determining the number of
containers for which a handling fee may be paid and requires the
department to set the amount of the handling fee using a specified
method, but requires the per-container handling fee to be set until
March 1, 2013, at an amount that is not less than the amount of the
per-container handling fee that was in effect on July 1, 2011. 

   This bill would make inoperative the existing provisions regarding
the methods for setting and calculating handling fees on July 1,
2014, and would repeal those provisions on January 1, 2015. The bill
would provide that for beverage containers returned for recycling on
and after July 1, 2014, the handling fee would equal specified
amounts, based on the amount of beverage containers a recycling site
handles each month. The bill would make an appropriation by changing
the terms and conditions under which the department is authorized to
make payments from a continuously appropriated fund.  
   (10) Since a violation of the act is a crime, the bill would
impose a state-mandated local program by creating new crimes with
regard to the submission of information to the department.  

   (11) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that no reimbursement is required by this
act for a specified reason.  
   The California Beverage Container Recycling and Litter Reduction
Act requires the Department of Resources Recycling and Recovery to
calculate a processing fee and a processing payment for each beverage
container with a specified scrap value, to be paid by beverage
manufacturers for each beverage container sold or transferred to a
distributor or dealer. Existing law specifies procedures for the
reduction of the processing fee for PET containers, as defined.
Existing law also requires all rigid plastic bottles and rigid
plastic containers to be labeled with a code which indicates the
resin used to produce the rigid plastic bottle or rigid plastic
container.  
   This bill would revise the definition of the term "PET container"
for purposes of the act to include a plastic beverage container
labeled with the term "PETE." 
   Vote: majority. Appropriation:  no   yes
 . Fiscal committee:  no   yes  .
State-mandated local program:  no   yes  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 14505 of the   Public
Resources Code   is amended to read: 
   14505.   (a)    "Beverage container" means
 the   both of the following: 
    (1)     The  individual, separate
bottle, can, jar, carton, or other receptacle, however denominated,
in which a beverage is sold, and  which   that
 is constructed of metal, glass, or plastic, or other material,
or any combination of these materials.  "Beverage container"
does not include cups or other similar open or loosely sealed
receptacles.  
   (2) Except as specified otherwise in this division, a voluntary
beverage container.  
    (b) "Beverage container" does not include cups or other similar
open or loosely sealed receptacles. 
   SEC. 2.    Section 14515.5 of the   Public
Resources Code   is amended to read: 
   14515.5.  "PET container" means a plastic beverage container
labeled with a "1"  or with "PETE" for polyethylene terephthalate
resin,  pursuant to Section 18015 and subject to this division.

   SEC. 3.    Section 14526.8 is added to the  
Public Resources Code   , to read:  
   14526.8.  "Unserved convenience zone" means a convenience zone in
which there is not in operation a certified recycling center or other
location that meets the requirements of subdivision (a) of Section
14571 and the convenience zone is otherwise not exempt pursuant to
Section 14571.8. 
   SEC. 4.   Section 14528.2 is added to the  
Public Resources Code   , to read: 
   14528.2.  "Voluntary beverage container" is a regulated beverage
container subject to Division 12.5 (commencing with Section 17000)
for which the distributor voluntarily agrees to participate in this
division pursuant to Section 17004. 
   SEC. 5.    Section 14528.3 is added to the  
Public Resources Code   , to read:  
   14528.3.  "Voluntary fund" means the Voluntary Beverage Container
Fund established pursuant to Section 14580.5. 
   SEC. 6.    Section 14538 of the   Public
Resources Code   is amended to read: 
   14538.  (a) The department shall certify the operators of
recycling centers pursuant to this section. The director shall adopt,
by regulation, a procedure for the certification of recycling
centers, including standards and requirements for certification.
These regulations shall require that all information be submitted to
the department under penalty of perjury. A recycling center shall
meet all of the standards and requirements contained in the
regulations for certification. The regulations shall require, but
shall not be limited to requiring, that all of the following
conditions be met for certification:
   (1) The operator of the recycling center demonstrates, to the
satisfaction of the department, that the operator will operate in
accordance with this division.
   (2)  (A)    If one or more certified entities
have operated at the same location within the past five years, the
operations at the location of the recycling center exhibit, to the
satisfaction of the department, a pattern of operation in compliance
with the requirements of this division and regulations adopted
pursuant to this division. 
   (B) The department shall waive the requirements of subparagraph
(A) if the department determines that the new operator applicant has
no relationship or affiliation to a previous certified entity that
operated at the same location. 
   (3) The operator of the recycling center notifies the department
promptly of any material change in the nature of his or her
operations which conflicts with information submitted in the operator'
s application for certification.
   (b) A certified recycling center shall comply with all of the
following requirements for operation:
   (1) The operator of the recycling center shall not pay a refund
value for, or receive a refund value from any processor for, any food
or drink packaging material or any beverage container or other
product that does not have a refund value established pursuant to
Section 14560.
   (2) The operator of a recycling center shall take those actions
that satisfy the department to prevent the payment of a refund value
for any food or drink packaging material or any beverage container or
other product that does not have a refund value established pursuant
to Section 14560.
   (3) Unless exempted pursuant to subdivision (b) of Section 14572,
a certified recycling center shall accept, and pay at least the
refund value for, all empty beverage containers, regardless of type.
   (4) A certified recycling center shall not pay any refund values,
processing payments, or administrative fees to a noncertified
recycler.
   (5) A certified recycling center shall not pay any refund values,
processing payments, or administrative fees on empty beverage
containers or other containers that the certified recycling center
knew, or should have known, were coming into the state from out of
the state.
   (6) A certified recycling center shall not claim refund values,
processing payments, or administrative fees on empty beverage
containers that the certified recycling center knew, or should have
known, were received from noncertified recyclers or on beverage
containers that the certified recycling center knew, or should have
known, come from out of the state.
   (7) A certified recycling center shall prepare and maintain the
following documents involving empty beverage containers, as specified
by the department by regulation:
   (A) Shipping reports that are required to be prepared by the
recycling center, or that are required to be obtained from other
recycling centers.
   (B) Consumer transaction receipts.
   (C) Consumer transaction logs.
   (D) Rejected container receipts on materials subject to this
division.
   (E) Receipts for transactions with beverage manufacturers on
materials subject to this division.
   (F) Receipts for transactions with beverage distributors on
materials subject to this division.
   (G) Documents authorizing the recycling center to cancel empty
beverage containers.
   (H) Weight tickets.
   (8) In addition to the requirements of paragraph (7), a certified
recycling center shall cooperate with the department and make
available its records of scrap transactions when the review of these
records is necessary for an audit or investigation by the department.

   (c) The department may recover, in restitution pursuant to
paragraph (5) of subdivision (c) of Section 14591.2, payments made
from the fund to the certified recycling center pursuant to Section
14573.5 that are based on the documents specified in paragraph
 (7),   (7) of subdivision (b),  that are
not prepared or maintained in compliance with the department's
regulations, and that do not allow the department to verify claims
for program payments.
   (d) The department may certify a recycling center that will
operate less than 30 hours a week, as specified in paragraph (2) of
subdivision (b) of Section 14571.
   SEC. 7.    Section 14549.5 of the   Public
Resources Code   is amended to read: 
   14549.5.  On or before the 90th day after the effective
date of the act amending this section, and annually thereafter,
  (a)     Except as provided in
subdivision (c), before April 1 of each year,  or more
frequently as determined to be necessary by the department, the
department shall review and, if necessary in order to ensure payment
of the most accurate commingled rate feasible, recalculate commingled
rates paid for beverage containers and postfilled containers paid to
curbside recycling programs, dropoff or collection programs, and
recycling centers. Prior to recalculating a commingled rate pursuant
to this section, the department shall do all of the following:

   (a) 
    (1)  Consult with private and public operators of
curbside recycling programs,  dropoff or  collection
programs, and recycling centers concerning the size of the statewide
sample, appropriate sampling methodologies, and alternatives to
exclusive reliance on a statewide commingled rate. 
   (b) 
    (2)  At least 60 days prior to the effective date of any
new commingled rate, hold a public hearing, after giving notice, to
make available to the public and affected parties the department's
review and any proposed recalculations of the commingled rate.

   (c)
    (3)  At least 60 days prior to the effective date of any
new commingled rate, and upon the request of any party, make
available documentation or studies  which   that
 were prepared as part of the department's review of a
commingled rate. 
   (d) 
    (b)  (1) Notwithstanding this division, the department
may calculate a curbside recycling program commingled rate pursuant
to this subdivision for bimetal containers and a combined commingled
rate for all plastic beverage containers displaying the resin
identification code "3," "4," "5," "6," or "7" pursuant to Section
18015.
   (2) The department may enter into a contract for the services
required to implement the amendments to this section made by 
the act   Chapter 753  of the  first half
  Statutes  of  the 2003-04 Regular Session
of the Legislature amending this section.   2003. 
The department may not expend more than two hundred fifty thousand
dollars ($250,000) for each year of the contract. The contract shall
be paid only from revenues derived from redemption payments and
processing fees paid on plastic beverage containers displaying the
resin identification code "3," "4," "5," "6," or "7" pursuant to
Section 18015. If the department determines that insufficient funds
will be available from these revenues, after refund values are paid
to processors and the reduction is made in the processing fee
pursuant to subdivision  (f)   (e)  of
Section 14575 for these containers, the department may determine not
to calculate a commingled rate pursuant to this subdivision. 
   (c) Notwithstanding subdivision (a) or (b), for purposes of the
2014, 2015, and 2016 calendar years, the department shall not
recalculate commingled rates paid to recycling centers for beverage
containers, and recycling centers shall not pay any refund value at a
commingled rate for beverage containers. 
   SEC. 8.    Sect   ion 14550 of the 
 Public Resources Code  is amended to read: 
   14550.  (a) (1) Every processor shall report to the department for
each month the amount of empty beverage containers, by material type
and weight of container or material, excluding refillable beverage
containers, received from recycling centers and curbside programs for
recycling, and the scrap value paid for glass, PET, and bimetal
containers and any beverage container that is assessed a processing
fee. Every processor shall also report to the department for each
month the amount of other postfilled aluminum, glass, and plastic
food and drink packaging materials sold filled to consumers in this
state and returned for recycling. These reports shall be 
electronically  submitted within 10 days after each month, in
the form and manner that the department may prescribe.
   (2) The department shall treat all information reported pursuant
to this section by a processor as commercial or financial information
subject to the procedures established pursuant to Section 14554.
   (b) Every distributor who sells or offers for sale in this state
beverages in aluminum beverage containers, nonaluminum metal beverage
containers, glass beverage containers, plastic beverage containers,
or other beverage containers, including refillable beverage
containers of these types, shall report to the department for each
month the number of beverages sold in these beverage containers in
this state  which   that  are labeled
pursuant to Section 14561, by material type and size and weight of
container or any other method as the department may prescribe. These
reports shall be submitted by the day when payment is due, consistent
with the applicable payment schedule specified in subdivision (a) of
Section 14574, in the form and manner  which  
that  the department may prescribe.
   (c) Every distributor who sells or offers for sale in this state
beverages in refillable beverage containers and who pays a refund
value to distributors, dealers, or consumers who return these
containers for refilling, shall report to the department for each
month the number of these beverage containers returned empty to be
refilled, by material type and size of container or any other method
 which   that  the department may
prescribe. These reports shall be submitted by the day when payment
is due, consistent with the schedule specified in subdivision (a) of
Section 14574, in the form and manner  which  
that  the department may prescribe.
   (d) Notwithstanding subdivision (b), a distributor who elects to
make an annual payment pursuant to subdivision (b) of Section 14574
may, upon the approval of the department, submit the reports required
by this section annually to the department. The reports shall
accompany the annual payment submitted pursuant to Section 14574.
   SEC. 9.    Section 14553 of the   Public
Resources Code   is amended to read: 
   14553.  (a)  (1)    All reports, claims, and
other information required pursuant to this division and submitted to
the department shall be complete, legible, and accurate, as
determined by the department by regulation, and shall be signed, by
an officer, director, managing employee, or owner of the certified
recycling center, processor, distributor, beverage manufacturer,
container manufacturer, or other entity. 
   (2) The department shall make available a process for
electronically submitting all reports, claims, and other information
required pursuant to this division.  
   (3) All reports, claims, and other information required pursuant
to this division shall be electronically submitted to the department
pursuant to the process made available by the department. 
   (b) The department may inspect the operations, processes, and
records of any entity required to submit a report to the department
pursuant to this division to determine the accuracy of the report and
compliance with the requirements of this division.
   (c) A violation of this section is subject to the penalties
specified in Section 14591.1.
   SEC. 10.    Section 14560 of the   Public
Resources Code   is amended to read: 
   14560.  (a) (1) Except as provided in  paragraph (3),
 subdivisions (b) and (c),  a beverage distributor
shall pay the department, for deposit into the fund, a redemption
payment of four cents ($0.04) for a beverage container  with a
capacity of less than 24 fluid ounces  sold or offered for sale
in this state by the distributor.
   (2) A beverage container with a capacity of 24 fluid ounces or
more shall be considered as two beverage containers for purposes of
redemption payments paid pursuant to paragraph (1). 
   (3) Except as provided in subdivision (b), a beverage container
sold or offered for sale in this state has a refund value of four
cents ($0.04) if the beverage container has a capacity of less than
24 fluid ounces and eight cents ($0.08) if the beverage container has
a capacity of 24 fluid ounces or more.  
   (3) The amount of the redemption payment and refund value for a
beverage container with a capacity of less than 24 fluid ounces sold
or offered for sale in this state by a dealer shall equal five cents
($0.05), and the amount of redemption payment and refund value for a
beverage container with a capacity of 24 fluid ounces or more shall
be ten cents ($0.10), 
    (b)     (1)     Except as
provided in subdivision (c),  if the aggregate recycling rate
reported pursuant to Section 14551 for all beverage containers
subject to this division is less than 75 percent for the 12-month
reporting period from January  1, 2006,   1
 to December  31, 2006, or   31  for
any calendar  year thereafter.   year, a
beverage distributor shall pay the department, for deposit into the
fund, a redemption payment of five cents ($0.05) for a beverage
container with a capacity of less than 24 fluid ounces sold or
offered for sale in this state by a dealer and ten cents ($0.10) for
a beverage container with a capacity of 24 fluid ounces or more.
 
    (b) Except as provided in paragraph (3) of subdivision (a),

    (2)     If the aggregate recycling rate
reported pursuant to Section 14551 for all beverage containers
subject to this division is less than 75 percent for the 12-month
reporting period from January 1 to December 31 for any calendar year,
 a beverage container sold or offered for sale in this state
has a refund value of  four  five  cents
 ($0.04)   ($0.05)  if the beverage
container has a capacity of less than 24 fluid ounces and 
eight   ten  cents  ($0.08)  
($0.10)  if the beverage container has a capacity of 24 fluid
ounces or more. 
   (c) (1) A distributor of voluntary beverage containers shall pay
the department, for deposit into the Voluntary Beverage Container
Fund, a redemption payment of five cents ($0.05) for a voluntary
beverage container with a capacity of less than 24 fluid ounces sold
or offered for sale in this state by that distributor.  
   (2) A voluntary beverage container with a capacity of 24 fluid
ounces or more shall be considered as two beverage containers for
purposes of redemption payments paid pursuant to paragraph (1). 

   (3) A voluntary beverage container sold or offered for sale in
this state has a refund value of five cents ($0.05) if the voluntary
beverage container has a capacity of less than 24 fluid ounces and
ten cents ($0.10) if the voluntary beverage container has a capacity
of 24 fluid ounces or more.  
   (c) 
    (d)  This section does not apply to a refillable
beverage container.
   SEC. 11.    Section 14560.5 of the   Public
Resources Code   is amended to read: 
   14560.5.  (a) (1) Except as provided in paragraph (2),  and
subdivision (e),  the invoice or other form of accounting of the
transaction submitted by a beverage distributor of beverages to a
dealer shall separately identify the amount of any redemption payment
imposed on beverage containers pursuant to Section 14560 and the
separate identification of the invoice or other form of accounting of
the transaction shall not combine or include the gross wholesale
price with the redemption payment but shall separately state the
gross amount of the redemption payment for each type of container
included in each delivery.
   (2) The invoice or other form of accounting of the transaction
submitted by any distributor of beer and malt beverages or wine or
distilled spirit coolers to a dealer may separately identify the
portion of the gross wholesale price attributable to any redemption
payment imposed on beverage containers pursuant to Section 14560 and
the separate identification of the invoice or other form of
accounting of the transaction may separately state the gross amount
of the redemption payment for each type of container included in each
delivery. The invoice or other form of accounting of this
transaction may separately identify the portion of the gross
wholesale price attributable to the redemption payment.
   (3) Notwithstanding Section 14541, the department shall randomly
inspect beverage distributor invoices or other forms of accounting to
ensure compliance with this subdivision. However, an unintentional
error in addition or subtraction on an invoice or other form of
accounting by a route driver of a distributor shall not be deemed a
violation of this subdivision.
   (4) For the purposes of this subdivision, the term "type of
container" includes the amount of the redemption payment on
containers under 24 ounces and on containers 24 ounces or more.
   (b) To the extent technically and economically feasible, a dealer
may separately identify the amount of any redemption payment on the
customer cash register receipt provided to the consumer, by the
dealer, that is applied to the purchase of a beverage container.
   (c) (1)  A   Except   as provided in
paragraph (6), a  dealer shall separately identify the amount
of any redemption payment imposed on a beverage container in all
advertising of beverage products and on the shelf labels of the
dealer's establishment. The separate identification shall be
accomplished by stating one of the following:
   (A) The price of the beverage product plus a descriptive term, as
described in paragraph (2).
   (B) The price of the beverage product plus the amount of the
applicable redemption payment and a descriptive term, as described in
paragraph (2).
   (C) The price of the beverage product plus the amount of the
applicable redemption payment, a descriptive term, as described in
paragraph (2), and the total of these two amounts.
   (2) For purposes of paragraph (1), the redemption payment shall be
identified by one of the following descriptive terms: "California
Redemption Value," "CA Redemption Value," "CRV," "California Cash
Refund," "CA Cash Refund," or any other message specified in Section
14561.
   (3) A dealer shall not include the redemption payment in the total
price of a beverage container in any advertising or on the shelf of
the dealer's establishment.
   (4) This subdivision applies only to a dealer at a dealer location
with a sales and storage area totaling more than 4,000 square feet.
   (5) The penalties specified in Sections 14591 and 14591.1 shall
not be applied to a person who violates this subdivision. 
   (6) This subdivision does not apply to a voluntary beverage
container. 
   (d) With regard to the sale of beer and other malt beverages or
wine and distilled spirits cooler beverages, any amount of redemption
payment imposed by this division is subject to Section 25509 of the
Business and Professions Code. 
   (e) (1) The invoice or other form of accounting of the transaction
submitted by a beverage distributor of voluntary beverages to a
dealer may separately identify the amount of any redemption payment
imposed on the voluntary beverage container pursuant to Section 14560
and the separate identification of the invoice or other form of
accounting of the transaction may separately state the gross amount
of the redemption payment for each type of voluntary beverage
container included in each delivery.  
   (2) A dealer may separately identify the amount of any redemption
payment imposed on a voluntary beverage container in all advertising
of beverage products and on the shelf labels of the dealer's
establishment. 
   SEC. 12.    Section 14571.2 of the   Public
Resources Code   is amended to read: 
   14571.2.   (a)    The department shall
continuously assist dealers and recyclers to establish certified
recycling locations within each convenience zone. This assistance
includes, but is not limited to, providing information to companies
and organizations interested in operating recycling in the
convenience zone; providing dealers with names of prospective
recyclers for the convenience zone and providing recyclers with the
names of dealers in need of a recycler for a convenience zone;
providing dealers and recyclers with information on grants,
advertising funds, and other resources available; and providing
recyclers with advice regarding appearance and image of the recycling
center and the efficient handling and transportation of recycled
beverage containers. 
   (b) The department shall, when implementing this section, provide
assistance and incentives that will reduce the number of unserved
convenience zones to less than 5 percent of the total amount of
convenience zones in this state by January 1, 2015. 
   SEC. 13.    Section 14571.5 of the   Public
Resources Code   is amended to read: 
   14571.5.  The department may, in a rural region, as identified
pursuant to subparagraph (A) of paragraph (2) of subdivision (b) of
Section 14571, upon petition by an interested person, do either of
the following:
   (a)  (1)     Increase
  The department may, in a rural region, as identified
pursuant to subparagraph (A) of paragraph (2) of subdivision (b) of
Section 14571, upon petition by an interested person, increase 
a convenience zone to include the area within a three-mile radius of
a supermarket, if the expanded convenience zone would then be served
by a single existing certified recycling center or location. 

   (2) 
    (b)  This subdivision applies only to a convenience zone
that is otherwise not being served by a certified recycling center
or location meeting the requirements of Section  14571 or is
exempted by the department pursuant to Section 14571.8. 
 14571.  
   (b) (1) Designate a convenience zone pursuant to Section 14571.1
in an area where there is no supermarket, but with two or more
dealers located within a one-mile radius of each other, and that
meets all of the following criteria:  
   (A) The dealers in that area have combined gross annual sales of
two million dollars ($2,000,000) or more, as certified by the
petitioner in an affidavit filed with the petition. 

   (B) The convenience zone encompasses a three-mile radius, with the
center of the zone established at the dealer, located closest to the
existing recycling center specified in subparagraph (D). 

   (C) The convenience zone does not overlap any other existing
convenience zone.  
   (D) The convenience zone is served by a single existing certified
recycling center.  
   (2) The department shall identify the dealer locations only for
the purpose of providing a reference point in the establishment of
the convenience zone pursuant to this subdivision.  

   (3) If the existing recycling location in a convenience zone
designated pursuant to this subdivision ceases operations, the
convenience zone shall also cease to exist until a
                           new recycling location is established, and
the department is petitioned by an interested person to designate a
convenience zone. 
   SEC. 14.    Section 14571.6.5 is added to the 
 Public Resources Code   , to read:  
   14571.6.5.  (a) Notwithstanding Section 14571, the department may
allow the operator of a certified recycling center to be open for
business for less than 30 hours per week, but not less than 20 hours
per week, if the certified recycling center is located in a
convenience zone that has been unserved for at least six continuous
months and the convenience zone is identified by the department as an
unserved convenience zone.
   (b) A certified recycling center that is authorized by the
department pursuant to subdivision (a) shall be eligible to apply for
handling fees pursuant to Section 14585, and a processor shall pay
refund values, administrative costs, and processing payments to the
certified recycling center pursuant to subdivision (a) of Section
14573.5 in the same manner as to a certified recycling center
operating in compliance with Section 14571.
   (c) The department may authorize not more than 120 recycling
centers in unserved convenience zones pursuant to this section. 

   SEC. 15.    Section 14571.8 of the   Public
Resources Code   is amended to read: 
   14571.8.  (a)  (1)    No lease entered into by a
dealer after January 1, 1987, may contain a leasehold restriction
that prohibits or results in the prohibition of the establishment of
a recycling location. 
   (2) A person shall not enter into a lease with a supermarket on or
after January 1, 2014, that prohibits the operation of a certified
recycling center or inhibits the ability of that supermarket to
operate as, or contract with, a certified recycling center. 
   (b)  The   Except as provided in subdivision
(h), the  director may grant an exemption from the requirements
of Section 14571 for an individual convenience zone only after the
department solicits public testimony on whether or not to provide an
exemption from Section 14571. The solicitation process shall be
designed by the department to ensure that operators of recycling
centers, dealers, and members of the public in the jurisdiction
affected by the proposed exemption are aware of the proposed
exemption. After evaluation of the testimony and any field review
conducted, the department shall base a decision to exempt a
convenience zone on one, or any combination, of the following
factors:
   (1) The exemption will not significantly decrease the ability of
consumers to conveniently return beverage containers for the refund
value to a certified recycling center redeeming all material types.
   (2) Except as provided in paragraph (5), the nearest certified
recycling center is within a reasonable distance of the convenience
zone being considered from exemption.
   (3) The convenience zone is in the area of a curbside recycling
program that meets the criteria specified in Section 14509.5.
   (4) The requirements of Section 14571 cannot be met in a
particular convenience zone due to local zoning or the dealer's
leasehold restrictions for leases in effect on January 1, 1987, and
the local zoning or leasehold restrictions are not within the
authority of the department and the dealer. However, any lease
executed after January 1, 1987, shall meet the requirements specified
in subdivision (a).
   (5) The convenience zone has redeemed less than 60,000 containers
per month for the prior 12 months and, notwithstanding paragraph (2),
a certified recycling center is located within one mile of the
convenience zone that is the subject of the exemption.
   (c) The department shall review each convenience zone in which a
certified recycling center was not located on January 1, 1996, to
determine the eligibility of the convenience zone under the exemption
criteria specified in subdivision (b).
   (d) The total number of exemptions granted by the director under
this section shall not exceed 35 percent of the total number of
convenience zones identified pursuant to this section.
   (e) The department may, on its own motion, or upon petition by any
interested person, revoke a convenience zone exemption if either of
the following occurs:
   (1) The condition or conditions that caused the convenience zone
to be exempt no longer exists, and the department determines that the
criteria for an exemption specified in this section are not
presently applicable to the convenience zone.
   (2) The department determines that the convenience zone exemption
was granted due to an administrative error.
   (f) If an exemption is revoked and a recycling center is not
certified and operational in the convenience zone, the department
shall, within 10 days of the date of the decision to revoke, serve
all dealers in the convenience zone with the notice specified in
subdivision (a) of Section 14571.7.
   (g) An exemption shall not be revoked when a recycling center
becomes certified and operational within an exempt convenience zone
unless either of the events specified in paragraphs (1) and (2) of
subdivision (e) occurs. 
   (h) The director shall not grant an exemption pursuant to this
section if a certified recycling center will not be operating in a
convenience zone in which there is located a supermarket. 
   SEC. 16.    Section 14573 of the   Public
Resources Code   is amended to read: 
   14573.  (a) The department shall pay to a processor, for every
empty beverage container received by the processor from a certified
recycling center, curbside program, or dropoff or collection program,
upon presentation of a completed processor invoice accompanied by
 a   an electronic  shipping report from
the supplier of the material, in the form adopted by the department,
the sum of all of the following amounts:
   (1) The refund value.
   (2) Two and one-half percent of the refund value for
administrative costs.
   (3) The processing payment established pursuant to Section 14575.
   (b) The department shall make the payment required in subdivision
(a) within two working days of the date that the department is
notified of the delivery or within the time determined by the
department to be necessary and adequate. If the payment is not made
by the Controller to the certified processor within 20 working days
of receipt of the claims schedule, the Controller shall pay the
processor interest at the current prime lending rate for any period
in excess of these 20 working days.
  SEC. 17.    Section 14574 of the   Public
Resources Code   is amended to read: 
   14574.  (a) (1) A distributor of beverage containers shall pay to
the department  electronically  the redemption payment for
every beverage container, other than a refillable beverage container,
sold or transferred to a dealer, less 1.5 percent for the
distributor's administrative costs.
   (2) The payment made by a distributor shall be made not later than
the last day of the month following the sale. The distributor shall
make the payment in the form and manner that the department
prescribes.
   (b) (1) Notwithstanding subdivision (a), if a distributor displays
a pattern of operation in compliance with this division and the
regulations adopted pursuant to this division, to the satisfaction of
the department, the distributor may make a single annual payment of
redemption payments, if the distributor's projected redemption
payment for a calendar year totals less than seventy-five thousand
dollars ($75,000).
   (2) An annual redemption payment made pursuant to this subdivision
is due and payable on or before February 1 for every beverage
container sold or transferred by the distributor to a dealer in the
previous calendar year.
   (3) A distributor shall notify the department of its intent to
make an annual redemption payment pursuant to this subdivision on or
before January 31 of the calendar year for which the payment will be
due. 
   (c) This section shall become effective on July 1, 2012. 

   SEC. 18.    Section 14575 of the   Public
Resources Code   is amended to read: 
   14575.  (a) If any type of empty beverage container with a refund
value established pursuant to Section 14560 has a scrap value less
than the cost of recycling, the department shall, on January 1, 2000,
and on or before January 1 annually thereafter, establish a
processing fee and a processing payment for the container by the type
of the material of the container.
   (b) The processing payment shall be at least equal to the
difference between the scrap value offered to a statistically
significant sample of recyclers by willing purchasers, and except for
the initial calculation made pursuant to subdivision (d), the sum of
both of the following:
   (1) The actual cost for certified recycling centers, excluding
centers receiving a handling fee, of receiving, handling, storing,
transporting, and maintaining equipment for each container sold for
recycling or, only if the container is not recyclable, the actual
cost of disposal, calculated pursuant to subdivision (c). The
department shall determine the statewide weighted average cost to
recycle each beverage container type, which shall serve as the actual
recycling costs for purposes of paragraph (2) of subdivision (c), by
conducting a survey of the costs of a statistically significant
sample of certified recycling centers, excluding those recycling
centers receiving a handling fee, for receiving, handling, storing,
transporting, and maintaining equipment.
   (2) A reasonable financial return for recycling centers.
   (c) The department shall base the processing payment pursuant to
this section upon all of the following:
   (1) Except as provided in paragraph (2), for calculating
processing payments that will be in effect on and after January 1,
2004, the department shall determine the actual costs for certified
recycling centers, every second year, pursuant to paragraph (1) of
subdivision (b). The department shall adjust the recycling costs
annually to reflect changes in the cost of living, as measured by the
Bureau of Labor Statistics of the United States Department of Labor
or a successor agency of the United States government.
   (2) On and after January 1, 2010, the department shall use the
most recently published, measured actual costs of recycling for a
specific beverage material type if the department determines the
number of beverage containers for that material type that is returned
for recycling pursuant to Section 14551, based on the most recently
published calendar year number of beverage containers returned for
recycling, is less than 5 percent of the total number of beverage
containers returned for recycling for all material types. The
department shall determine the actual recycling cost to be used for
calculating processing payments for those beverage containers in the
following manner:
   (A) The department shall adjust the costs of recycling that
material type every second year by the percentage change in the most
recently measured cost of recycling HDPE plastic beverage containers,
as determined by the department. The department shall use the
percentage change in costs of recycling HDPE plastic beverage
containers for this purpose, even if HDPE plastic beverage containers
are less than 5 percent of the total volume of returned beverage
containers.
   (B) The department shall adjust the recycling costs annually for
that material type to reflect changes in the cost of living, as
measured by the Bureau of Labor Statistics of the United States
Department of Labor or a successor agency of the United States
government.
   (d) Except as specified in subdivision (e), the actual processing
fee paid by a beverage manufacturer  or distributor of voluntary
beverage containers  shall equal 65 percent of the processing
payment calculated pursuant to subdivision (b).
   (e)  The   Except as provided in subdivision
(k), the  department, consistent with Section 14581 and subject
to the availability of funds, shall reduce the processing fee paid by
beverage manufacturers by expending funds in each material
processing fee account, in the following manner:
   (1) On January 1, 2005, and annually thereafter, the processing
fee shall equal the following amounts:
   (A) Ten percent of the processing payment for a container type
with a recycling rate equal to or greater than 75 percent.
   (B) Eleven percent of the processing payment for a container type
with a recycling rate equal to or greater than 65 percent, but less
than 75 percent.
   (C) Twelve percent of the processing payment for a container type
with a recycling rate equal to or greater than 60 percent, but less
than 65 percent.
   (D) Thirteen percent of the processing payment for a container
type with a recycling rate equal to or greater than 55 percent, but
less than 60 percent.
   (E) Fourteen percent of the processing payment for a container
type with a recycling rate equal to or greater than 50 percent, but
less than 55 percent.
   (F) Fifteen percent of the processing payment for a container type
with a recycling rate equal to or greater than 45 percent, but less
than 50 percent.
   (G) Eighteen percent of the processing payment for a container
type with a recycling rate equal to or greater than 40 percent, but
less than 45 percent.
   (H) Twenty percent of the processing payment for a container type
with a recycling rate equal to or greater than 30 percent, but less
than 40 percent.
   (I) Sixty-five percent of the processing payment for a container
type with a recycling rate less than 30 percent.
   (2) The department shall calculate the recycling rate for purposes
of paragraph (1) based on the 12-month period ending on June 30 that
directly precedes the date of the January 1 processing fee
determination.
   (f) Not more than once every three months, the department may make
an adjustment in the amount of the processing payment established
pursuant to this section notwithstanding any change in the amount of
the processing fee established pursuant to this section, for any
beverage container, if the department makes the following
determinations:
   (1) The statewide scrap value paid by processors for the material
type for the most recent available 12-month period directly preceding
the quarter in which the processing payment is to be adjusted is 5
percent more or 5 percent less than the average scrap value used as
the basis for the processing payment currently in effect.
   (2) Funds are available in the processing fee account for the
material type.
   (3) Adjusting the processing payment is necessary to further the
objectives of this division.
   (g) (1) Except as provided in paragraphs (2)  (3),  and
 (3),   (4) ,  every beverage manufacturer
shall pay to the department the applicable processing fee for each
container sold or transferred to a distributor or dealer within 40
days of the sale in the form and in the manner which the department
may prescribe.
   (2) (A) Notwithstanding Section 14506, with respect to the payment
of processing fees for beer and other malt beverages manufactured
outside the state, the beverage manufacturer shall be deemed to be
the person or entity named on the certificate of compliance issued
pursuant to Section 23671 of the Business and Professions Code. If
the department is unable to collect the processing fee from the
person or entity named on the certificate of compliance, the
department shall give written notice by certified mail, return
receipt requested, to that person or entity. The notice shall state
that the processing fee shall be remitted in full within 30 days of
issuance of the notice or the person or entity shall not be permitted
to offer that beverage brand for sale within the state. If the
person or entity fails to remit the processing fee within 30 days of
issuance of the notice, the department shall notify the Department of
Alcoholic Beverage Control that the certificate holder has failed to
comply, and the Department of Alcoholic Beverage Control shall
prohibit the offering for sale of that beverage brand within the
state.
   (B) The department shall enter into a contract with the Department
of Alcoholic Beverage Control, pursuant to Section 14536.5,
concerning the implementation of this paragraph, which shall include
a provision reimbursing the Department of Alcoholic Beverage Control
for its costs incurred in implementing this paragraph.
   (3) (A) Notwithstanding paragraph (1), if a beverage manufacturer
displays a pattern of operation in compliance with this division and
the regulations adopted pursuant to this division, to the
satisfaction of the department, the beverage manufacturer may make a
single annual payment of processing fees, if the beverage
manufacturer meets either of the following conditions:
   (i) If the redemption payment and refund value is not increased
pursuant to paragraph (3) of subdivision (a) of Section 14560, the
beverage manufacturer's projected processing fees for a calendar year
total less than ten thousand dollars ($10,000).
   (ii) If the redemption payment and refund value is increased
pursuant to paragraph (3) of subdivision (a) of Section 14560, the
beverage manufacturer's projected processing fees for a calendar year
total less than fifteen thousand dollars ($15,000).
   (B) An annual processing fee payment made pursuant to this
paragraph is due and payable on or before February 1 for every
beverage container sold or transferred by the beverage manufacturer
to a distributor or dealer in the previous calendar year.
   (C) A beverage manufacturer shall notify the department of its
intent to make an annual processing fee payment pursuant to this
paragraph on or before January 31 of the calendar year for which the
payment will be due. 
   (4) A distributor of voluntary beverage containers shall pay to
the department the applicable processing fee for each container sold
or transferred to a dealer within 40 days of the sale in the form and
in the manner that the department may prescribe. 
   (4) 
    (5)  The department shall pay the processing payments on
redeemed containers to processors, in the same manner as it pays
refund values pursuant to Sections 14573 and 14573.5. The processor
shall pay the recycling center the entire processing payment
representing the actual costs and financial return incurred by the
recycling center, as specified in subdivision (b).
   (h) When assessing processing fees pursuant to subdivision (a),
the department shall assess the processing fee on each container
sold, as provided in subdivisions (d) and (e), by the type of
material of the container, assuming that every container sold will be
redeemed for recycling, whether or not the container is actually
recycled.
   (i)  The   (1)     Except
as provided in paragraph (2), a  container manufacturer, or a
designated agent, shall pay to, or credit, the account of the
beverage manufacturer in an amount equal to the processing fee. 
   (2) This subdivision does not apply to a voluntary beverage
container.
   (j)  If,   Except as provided in subdivision
(k), if,  at the end of any calendar year for which glass
recycling rates equal or exceed 45 percent and sufficient surplus
funds remain in the glass processing fee account  established by
the department pursuant  to  subparagraph (A) o   f
paragraph (5) of subdivision (a) of Section 14581 to  make the
reduction pursuant to this subdivision or if, at the end of any
calendar year for which PET recycling rates equal or exceed 45
percent and sufficient surplus funds remain in the PET processing fee
account  established by the department pursuant  to 
subparagraph (A) of paragraph (5) of subdivision (a) of Section 14581
 make the reduction pursuant to this subdivision, the
department shall use these surplus funds in the respective processing
fee accounts in the following calendar year to reduce the amount of
the processing fee that would otherwise be due from glass or PET
beverage manufacturers pursuant to this subdivision.
   (1) The department shall reduce the glass or PET processing fee
amount pursuant to this subdivision in addition to any reduction for
which the glass or PET beverage container qualifies under subdivision
(e).
   (2) The department shall determine the processing fee reduction by
dividing two million dollars ($2,000,000) from each processing fee
account by an estimate of the number of containers sold or
transferred to a distributor during the previous calendar year, based
upon the latest available data. 
   (k) The department shall reduce the processing fee for voluntary
beverage containers for the following calendar year if, at the end of
the calendar year, the department determines that the recycling
rates for voluntary beverage containers equal or exceed 45 percent
and there are surplus funds at the end of the previous calendar year
in the processing fee account established by the department pursuant
to subdivision (c) of Section 14580.5, for those containers. 
   SEC. 19.    Section 14580.5 is added to the 
 Public Resources Code   , to read:  
   14580.5.  (a) Except as provided in subdivision (d), the
department shall deposit all amounts paid as redemption payments by
distributors for voluntary beverage containers pursuant to
subdivision (c) of Section 14560 into the Voluntary Beverage
Container Fund, which is hereby created in the State Treasury.
Notwithstanding Section 13340 of the Government Code, the money in
the Voluntary Beverage Container Fund is hereby continuously
appropriated to the department for expenditure without regard to
fiscal year for the following purposes:
   (1) The payment of refund values and administrative fees to
processors for voluntary beverage containers pursuant to Section
14573.
   (2) For a reserve for contingencies, which shall not be greater
than an amount equal to 5 percent of the total amount paid for
voluntary beverage containers to processors pursuant to Section 14573
during the preceding calendar year, plus the interest earned on that
amount.
   (b) The money in the Voluntary Beverage Container Fund may be
expended by the department for the administration of this division
only upon appropriation by the Legislature.
    (c) The department shall establish a separate processing fee
account in the Voluntary Beverage Container Fund for voluntary
beverage containers and all amounts paid as processing fees for those
voluntary beverage containers shall be deposited in that account.
Notwithstanding Section 13340 of the Government Code, the moneys in
that processing fee account are hereby continuously appropriated to
the department for expenditure without regard to fiscal years, for
purposes of making processing payments for voluntary beverage
containers pursuant to this division.
   (d) The department shall, once every three months, set aside funds
estimated to be needed for expenditures authorized pursuant to
subdivisions (a) and (b). Notwithstanding Section 13340 of the
Government Code, those remaining funds are hereby continuously
appropriated to the department, without regard to fiscal year for the
following purposes:
   (1) The payment of handling fees for voluntary beverage
containers, pursuant to Section 14585.
   (2) Payments for the collection of voluntary beverage containers
by curbside programs and neighborhood dropoff programs pursuant to
Section 14549.6. 
   SEC. 20.    Section 14581 of the   Public
Resources Code  is amended to read: 
   14581.  (a) Subject to the availability of funds and in accordance
with subdivision (c), the department shall expend the moneys set
aside in the fund, pursuant to subdivision (c) of Section 14580, for
the purposes of this section in the following manner:
   (1) For each fiscal year, the department may expend the amount
necessary to make the required handling fee payment pursuant to
Section 14585.
   (2) Fifteen million dollars ($15,000,000) shall be expended
annually for payments for curbside programs and neighborhood dropoff
programs pursuant to Section 14549.6.
   (3) (A)  Fifteen   Twenty-one  
 million dollars  ($15,000,000),  
($21,000,000),  plus the proportional share of the
cost-of-living adjustment, as provided in subdivision (b), shall be
expended annually in the form of grants for beverage container litter
reduction programs and recycling programs issued to either of the
following:
   (i) Certified community conservation corps that were in existence
on September 30, 1999, or that are formed subsequent to that date,
that are designated by a city or a city and county to perform litter
abatement, recycling, and related activities, if the city or the city
and county has a population, as determined by the most recent
census, of more than 250,000 persons.
   (ii) Community conservation corps that are designated by a county
to perform litter abatement, recycling, and related activities, and
are certified by the California Conservation Corps as having operated
for a minimum of two years and as meeting all other criteria of
Section 14507.5.
   (B) The grants provided pursuant to this paragraph shall not
comprise more than 75 percent of the annual budget of a community
conservation corps.
   (C) For the 2009-10 fiscal year only, the eight million two
hundred fifty thousand dollars ($8,250,000) appropriated to the
California Conservation Corps for certified local conservation corps
by Item 3340-101-0133 of Sec. 2.00 of the 2009-10 Budget Act, as
added by Section 166 of Chapter 1 of the Fourth Extraordinary Session
of the Statutes of 2009, shall be in addition to the amounts
expended pursuant to this paragraph.
   (4) (A) Ten million five hundred thousand dollars ($10,500,000)
may be expended annually for payments of five thousand dollars
($5,000) to cities and ten thousand dollars ($10,000) for payments to
counties for beverage container recycling and litter cleanup
activities, or the department may calculate the payments to counties
and cities on a per capita basis, and may pay whichever amount is
greater, for                                           those
activities.
   (B) Eligible activities for the use of these funds may include,
but are not necessarily limited to, support for new or existing
curbside recycling programs, neighborhood dropoff recycling programs,
public education promoting beverage container recycling, litter
prevention, and cleanup, cooperative regional efforts among two or
more cities or counties, or both, or other beverage container
recycling programs.
   (C) These funds shall not be used for activities unrelated to
beverage container recycling or litter reduction.
   (D) To receive these funds, a city, county, or city and county
shall fill out and return a funding request form to the department.
The form shall specify the beverage container recycling or litter
reduction activities for which the funds will be used.
   (E) The department shall annually prepare and distribute a funding
request form to each city, county, or city and county. The form
shall specify the amount of beverage container recycling and litter
cleanup funds for which the jurisdiction is eligible. The form shall
not exceed one double-sided page in length, and may be submitted
electronically. If a city, county, or city and county does not return
the funding request form within 90 days of receipt of the form from
the department, the city, county, or city and county is not eligible
to receive the funds for that funding cycle.
   (F) For the purposes of this paragraph, per capita population
shall be based on the population of the incorporated area of a city
or city and county and the unincorporated area of a county. The
department may withhold payment to any city, county, or city and
county that has prohibited the siting of a supermarket site, caused a
supermarket site to close its business, or adopted a land use policy
that restricts or prohibits the siting of a supermarket site within
its jurisdiction. 
   (5) (A) One million five hundred thousand dollars ($1,500,000) may
be expended annually in the form of grants for beverage container
recycling and litter reduction programs.  
   (B) Notwithstanding subdivision (f), the department shall not
expend funds pursuant to this paragraph for the 2010 and 2011
calendar years.  
   (6) 
    (5)  (A) The department shall expend the amount
necessary to pay the processing payment established pursuant to
Section 14575. The department shall establish separate processing fee
accounts in the fund for each beverage container material type for
which a processing payment and processing fee are calculated pursuant
to Section 14575, or for which a processing payment is calculated
pursuant to Section 14575 and a voluntary artificial scrap value is
calculated pursuant to Section 14575.1, into which account shall be
deposited both of the following:
   (i) All amounts paid as processing fees for each beverage
container material type pursuant to Section 14575.
   (ii) Funds equal to the difference between the amount in clause
(i) and the amount of the processing payments established in
subdivision (b) of Section 14575, and adjusted pursuant to paragraph
(2) of subdivision (c) of, and subdivision (f) of, Section 14575, to
reduce the processing fee to the level provided in subdivision (e) of
Section 14575, or to reflect the agreement by a willing purchaser to
pay a voluntary artificial scrap value pursuant to Section 14575.1.
   (B) Notwithstanding Section 13340 of the Government Code, the
moneys in each processing fee account are hereby continuously
appropriated to the department for expenditure without regard to
fiscal years, for purposes of making processing payments pursuant to
Section 14575.
   (C) Notwithstanding the other provisions of this section and
Section 14575, for the 2010 and 2011 calendar years, the total amount
that the department may expend to reduce the amount of processing
fees for each container type shall not exceed the total amount
expended to reduce processing fees in the 2008 calendar year.

   (7) 
    (6)  (A) Up to five million dollars ($5,000,000) may be
annually expended by the department for the purposes of undertaking a
statewide public education and information campaign aimed at
promoting increased recycling of beverage containers.
   (B) Notwithstanding subdivision (f), the department shall not
expend funds pursuant to this paragraph for the 2010 and 2011
calendar years. 
   (8) 
    (7)  Up to ten million dollars ($10,000,000) may be
expended annually by the department for quality incentive payments
for empty glass beverage containers pursuant to Section 14549.1.

   (9) 
    (8)  (A) Up to ten million dollars ($10,000,000) may be
expended annually by the department for market development payments
for empty plastic beverage containers pursuant to Section 14549.2,
until January 1, 2017.
   (B)  On and after January 1, 2012, in   In
 addition to the amount specified in subparagraph (A), the
department may expend the amount calculated pursuant to subparagraph
(C) for market development payments for empty plastic beverage
containers pursuant to Section 14549.2.
   (C) The department shall calculate the amount authorized for
expenditure pursuant to subparagraph (B) in the following manner:
   (i) The department shall determine, on or before January 1, 2012,
and annually thereafter, whether the amount of funds estimated to be
necessary pursuant to clause (ii) of subparagraph (A) of paragraph
 (6)   (5)  for deposit to a processing fee
account established by the department for plastic beverage
containers to make processing payments for plastic beverage
containers for the current calendar year is less than the total
amount of funds that were estimated to be necessary the previous
calendar year pursuant to clause (ii) of subparagraph (A) of
paragraph  (6)   (5)  for deposit to that
processing fee account.
   (ii) If the amount estimated to be necessary for the current
calendar year, as specified in clause (i), is less than the amount
estimated to be necessary for the previous calendar year, the
department shall calculate the amount of that difference.
   (iii) The department shall expend an amount that is not greater
than 50 percent of the amount calculated pursuant to clause (ii) for
purposes of subparagraph (B).
   (iv) If the department determines that the amount of funds
authorized for expenditure pursuant to this subparagraph is not
needed to make plastic market development payments pursuant to
subparagraph (B) in the calendar year for which that amount is
allocated, the department may expend those funds during the following
year.
   (v) If the department determines that there are insufficient funds
to both make the market development payments pursuant to
subparagraph (B) and to deposit the amount required by clause (ii) of
subparagraph (A) of paragraph  (6),   (5),
 for purposes of making the processing payments and reducing the
processing fees pursuant to Section 14575 for plastic beverage
containers, the department shall suspend the implementation of this
subparagraph and subparagraph (B).
   (D) Subparagraphs (B) and (C) shall remain operative only until
January 1, 2017.
   (b) The fifteen million dollars ($15,000,000) that is set aside
pursuant to paragraph (3) of subdivision (a) is a base amount that
the department shall adjust annually to reflect any increases or
decreases in the cost of living, as measured by the Department of
Labor, or a successor agency, of the federal government.
   (c) (1) If the department determines, pursuant to a review made
pursuant to Section 14556, that there may be inadequate funds to pay
the payments required by this division, the department shall
immediately notify the appropriate policy and fiscal committees of
the Legislature regarding the inadequacy.
   (2) On or before 180 days, but not less than 80 days, after the
notice is sent pursuant to paragraph (1), the department may reduce
or eliminate expenditures, or both, from the funds as necessary,
according to the procedure set forth in subdivision (d).
   (d) If the department determines that there are insufficient funds
to make the payments specified pursuant to this section and Section
14575, the department shall reduce all payments proportionally.
   (e) Prior to making an expenditure pursuant to paragraph 
(7)   (6)  of subdivision (a), the department shall
convene an advisory committee consisting of representatives of the
beverage industry, beverage container manufacturers, environmental
organizations, the recycling industry, nonprofit organizations, and
retailers to advise the department on the most cost-effective and
efficient method of the expenditure of the funds for that education
and information campaign.
   (f)  Subject to the availability of funds, the 
 The  department shall  retroactively pay in full
  not make  any payments  provided in this
section that have been proportionally reduced during the period of
January 1, 2010, through June 30, 2010.   for voluntary
beverage containers pursuant to this section. 
   SEC. 21.    Section 14583 of the   Public
Resources Code   is amended to read: 
   14583.   (a)    Notwithstanding Section 14581,
on and after July 1, 2012, the department shall not make any
payments, grants, or loans, as provided in that section, to a city,
county, or city and county, if the city, county, or city and county
has adopted or is enforcing a land use restriction that prevents the
siting or operation of a certified recycling center at a supermarket
site, as defined in Section 14526.6, as may be required pursuant to
Section 14571. 
   (b) A city or county that receives any revenue pursuant to the
Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5
(commencing with Section 7200) of Division 2 of the Revenue and
Taxation Code) from a transaction conducted by a supermarket shall
not prohibit the siting of a certified recycling center in the
parking lot of a supermarket. 
   SEC. 22.    Section 14585 of the   Public
Resources Code   is amended to read: 
   14585.  (a) The department shall adopt guidelines and methods for
paying handling fees to supermarket sites, nonprofit convenience zone
recyclers, or rural region recyclers to provide an incentive for the
redemption of empty beverage containers in convenience zones. The
guidelines shall include, but not be limited to, all of the
following:
   (1) Handling fees shall be paid  on a monthly basis,
 in the form and manner adopted by the department. The
department shall require that claims for the handling fee be filed
 electronically  with the  department not later than
the first day of the second month following the month for which the
handling fee is claimed as a condition of receiving any handling fee.
  department. 
   (2)  The   Except as provided in paragraph
(3), the  department shall determine the number of eligible
containers per site for which a handling fee will be paid in the
following manner:
   (A) Each eligible site's combined monthly volume of glass and
plastic beverage containers shall be divided by the site's total
monthly volume of all empty beverage container types.
   (B) If the quotient determined pursuant to subparagraph (A) is
equal to, or more than, 10 percent, the total monthly volume of the
site shall be the maximum volume which is eligible for a handling fee
for that month.
   (C) If the quotient determined pursuant to subparagraph (A) is
less than 10 percent, the department shall divide the volume of glass
and plastic beverage containers by 10 percent. That quotient shall
be the maximum volume that is eligible for a handling fee for that
month. 
   (3) The department shall determine the number of eligible
voluntary beverage containers per site for which a handling fee will
be paid in the following manner:  
   (A) Each eligible site's combined monthly volume of voluntary
beverage containers shall be divided by the site's total monthly
volume of all empty voluntary beverage containers. 
   (B) If the quotient determined pursuant to subparagraph (A) is
equal to, or more than, 10 percent, the total monthly volume of the
site shall be the maximum volume that is eligible for a handling fee
for that month.  
   (C) If the quotient determined pursuant to subparagraph (A) is
less than 10 percent, the department shall divide the volume of
voluntary beverage containers by 10 percent. That quotient shall be
the maximum volume that is eligible for a handling fee for that
month.  
   (3) 
    (4)  (A) On and after  the effective date of the
act amending this section during the 2011-12 Regular Session,
  September 25, 2012,  and until March 1, 2013, the
department shall pay a handling fee per eligible container in the
amount determined pursuant to subdivisions (f) and (g).
   (B) On and after July 1, 2014, the department shall pay a handling
fee per eligible container in the amount determined pursuant to
subdivision (f). 
   (4) 
    (5)  If the eligible volume in any given month would
result in handling fee payments that exceed the allocation of funds
for that month, as provided in subdivision (b), sites with higher
eligible monthly volumes shall receive handling fees for their entire
eligible monthly volume before sites with lower eligible monthly
volumes receive any handling fees. 
   (5) 
   (6)  (A) If a dealer where a supermarket site, nonprofit
convenience zone recycler, or rural region recycler is located ceases
operation for remodeling or for a change of ownership, the operator
of that supermarket site nonprofit convenience zone recycler, or
rural region recycler shall be eligible to apply for handling fees
for that site for a period of three months following the date of the
closure of the dealer.
   (B) Every supermarket site operator, nonprofit convenience zone
recycler, or rural region recycler shall promptly notify the
department of the closure of the dealer where the supermarket site,
nonprofit convenience zone recycler, or rural region recycler is
located.
   (C) Notwithstanding subparagraph (A), any operator who fails to
provide notification to the department pursuant to subparagraph (B)
shall not be eligible to apply for handling fees. 
   (b) (1) Except as provided in paragraph (2), the department shall
not carryover unexpended monthly allocations for the payment of
handling fees over to a subsequent fiscal year for the purpose of
paying handling fees but may carry over those allocations for any
other purpose pursuant to Section 14581.  
   (b) 
    (2)  The department  may allocate the amount
authorized for expenditure   shall not carryover
unexpended monthly allocations  for the payment of handling fees
 pursuant to paragraph (1) of subdivision (a) of Section
14581 on   for  a  monthly basis and may
carry   voluntary beverage container  over 
any unexpended monthly allocation  to a subsequent 
month or months. However, unexpended monthly allocations shall not
be carried over to a subsequent  fiscal year for the purpose
of paying handling fees but may  be carried 
 over   carryover those allocations  for
any other purpose pursuant to Section  14581.  
14580.5. 
   (c) (1) The department shall not make handling fee payments to
more than one certified recycling center in a convenience zone. If a
dealer is located in more than one convenience zone, the department
shall offer a single handling fee payment to a supermarket site
located at that dealer. This handling fee payment shall not be split
between the affected zones. The department shall stop making handling
fee payments if another recycling center certifies to operate within
the convenience zone without receiving payments pursuant to this
section, if the department monitors the performance of the other
recycling center for 60 days and determines that the recycling center
is in compliance with this division. Any recycling center that
locates in a convenience zone, thereby causing a preexisting
recycling center to become ineligible to receive handling fee
payments, is ineligible to receive any handling fee payments in that
convenience zone.
   (2) The department shall offer a single handling fee payment to a
rural region recycler located anywhere inside a convenience zone, if
that convenience zone is not served by another certified recycling
center and the rural region recycler does either of the following:
   (A) Operates a minimum of 30 hours per week in one convenience
zone.
   (B) Serves two or more convenience zones, and meets all of the
following criteria:
   (i) Is the only certified recycler within each convenience zone.
   (ii) Is open and operating at least eight hours per week in each
convenience zone and is certified at each location.
   (iii) Operates at least 30 hours per week in total for all
convenience zones served.
   (d) The department may require the operator of a supermarket site
or rural region recycler receiving handling fees to maintain records
for each location where beverage containers are redeemed, and may
require the supermarket site or rural region recycler to take any
other action necessary for the department to determine that the
supermarket site or rural region recycler does not receive an
excessive handling fee.
   (e) The department may determine and utilize a standard container
per pound rate, for each material type, for the purpose of
calculating volumes and making handling fee payments.
   (f) (1) On or before January 1, 2008, and every two years
thereafter, the department shall conduct a survey pursuant to this
subdivision of a statistically significant sample of certified
recycling centers that receive handling fee payments to determine the
actual cost incurred for the redemption of empty beverage containers
by those certified recycling centers. The department shall conduct
these cost surveys in conjunction with the cost surveys performed by
the department pursuant to subdivision (b) of Section 14575 to
determine processing payments and processing fees. The department
shall include, in determining the actual costs, only those allowable
costs contained in the regulations adopted pursuant to this division
that are used by the department to conduct cost surveys pursuant to
subdivision (b) of Section 14575.
   (2) Using the information obtained pursuant to paragraph (1), the
department shall then determine the statewide weighted average cost
incurred for the redemption of empty beverage containers, per empty
beverage container, at recycling centers that receive handling fees.
   (3) Except as provided in subdivision (g), the department shall
determine the amount of the handling fee to be paid for each empty
beverage container by subtracting the amount of the statewide
weighted average cost per container to redeem empty beverage
containers by recycling centers that do not receive handling fees
from the amount of the statewide weighted average cost per container
determined pursuant to paragraph (2).
   (4) The department shall adjust the statewide average cost
determined pursuant to paragraph (2) for each beverage container
annually to reflect changes in the cost of living, as measured by the
Bureau of Labor Statistics of the United States Department of Labor
or a successor agency of the United States government.
   (5) The cost information collected pursuant to this section at
recycling centers that receive handling fees shall not be used in the
calculation of the processing payments determined pursuant to
Section 14575.
   (g) (1) On and after  the effective date of the act
amending this section during the 2011-12 Regular Session, 
 September 12, 2012,  and until March 1, 2013, the
per-container handling fee shall not be less than the amount of the
per-container handling fee that was in effect on July 1, 2011.
   (2) The department may update the methodology and scrap values
used for calculating the handling fee from the most recent cost
survey if it finds that the handling fee resulting from the most
recent cost survey does not accurately represent the actual cost
incurred for the redemption of empty beverage containers by those
certified recycling centers. 
   (h) This section shall become inoperative on July 1, 2014, and, as
of January 1, 2015, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2015, deletes or
extends the dates on which it becomes inoperative and is repealed.

   SEC. 23.    Section 14585 is added to the  
Public Resources Code   , to read:  
   14585.  (a) The department shall adopt guidelines and methods for
paying handling fees to supermarket sites, nonprofit convenience zone
recyclers, and rural region recyclers to provide an incentive for
the redemption of empty beverage containers in convenience zones. The
guidelines shall include, but not be limited to, all of the
following:
   (1) Handling fees shall be paid in the form and manner adopted by
the department. The department shall require that claims for the
handling fee be filed electronically as part of the shipping report
with the department.
   (2) (A) If a dealer where a supermarket site, nonprofit
convenience zone recycler, or rural region recycler is located ceases
operation for remodeling or for a change of ownership, the operator
of that supermarket site, nonprofit convenience zone recycler, or
rural region recycler shall be eligible to apply for handling fees
for that site for a period of three months following the date of the
closure of the dealer.
   (B) Every supermarket site operator, nonprofit convenience zone
recycler, or rural region recycler shall promptly notify the
department of the closure of the dealer where the supermarket site,
nonprofit convenience zone recycler, or rural region recycler is
located.
   (C) Notwithstanding subparagraph (A), an operator who fails to
provide notification to the department pursuant to subparagraph (B)
shall not be eligible to apply for handling fees.
   (b) (1) The department shall not make handling fee payments to
more than one certified recycling center in a convenience zone.
   (A) If a dealer is located in more than one convenience zone, the
department shall offer a single handling fee payment to a supermarket
site located at that dealer. The department shall not split the
handling fee payment between the affected convenience zones.
   (B) The department shall stop making handling fee payments if
another recycling center is certified to operate within a convenience
zone and does not receive handling fees pursuant to this section,
and if the department monitors the performance of the other certified
recycling center for 60 days and determines that the recycling
center is in compliance with this division.
   (C) A recycling center that locates in a convenience zone, thereby
causing a preexisting recycling center to become ineligible to
receive handling fee payments, is ineligible to receive any handling
fee payments in that convenience zone.
   (2) The department shall pay a single handling fee to a rural
region recycler located anywhere inside a convenience zone, if that
convenience zone is not served by another certified recycling center
and the rural region recycler does either of the following:
   (A) Operates a minimum of 30 hours per week in one convenience
zone.
   (B) Serves two or more convenience zones, and meets all of the
following criteria:
   (i) Is the only certified recycler within each convenience zone.
   (ii) Is open and operating at least eight hours per week in each
convenience zone and is certified at each location.
   (iii) Operates at least 30 hours per week in total for all
convenience zones served.
   (c) The department may require the operator of a supermarket site
or rural region recycler receiving handling fees to maintain records
for each location where beverage containers are redeemed, and may
require the supermarket site or rural region recycler to take any
other action necessary for the department to determine that the
supermarket site or rural region recycler does not receive an
excessive handling fee.
   (d) The department may determine and utilize a standard container
per pound rate, for each material type, for the purpose of
calculating volumes and making handling fee payments.
   (e) (1) For beverage containers returned for recycling on and
after July 1, 2014, the handling fee shall equal the following
amounts:
   (A) The amount of one and two hundred nineteen thousandths of one
cent ($0.001219) per beverage container for a recycling site handling
less than ____ beverage containers per month.
   (B) The amount of five hundred eighty-one thousandths of one cent
($0.00581) per container for a recycling site handling more than ____
beverage containers per month but less than ____ containers per
month.
   (C) The amount of five hundred twenty-two thousandths of one cent
($0.00522) per beverage container for a recycling site handling more
than ____ containers per month but less than 335,000 containers per
month.
   (2) For purposes of this subdivision, "recycling site" means a
single location of a supermarket site, nonprofit convenience zone
recycler, or rural region recycler.
   (f) This section shall become operative on July 1, 2014. 
   SEC. 24.    Division 12.5 (commencing with Section
17000) is added to the   Public Resources Code   ,
to read:  

      DIVISION 12.5.  Regulated Beverage Containers



      Article 1.  Definitions


   17000.  For purposes of this division, the following definitions
shall apply:
   (a) "Dealer" means a retail establishment that sells, or offers to
sell, regulated beverages in regulated beverage containers
                                  to consumers. A lodging, eating, or
drinking establishment, or soft drink vending machine operator who
engages in the sale of regulated beverages in regulated beverage
containers to consumers shall not be deemed a dealer for the purposes
of this division.
   (b) "Department" means the Department of Resources Recycling and
Recovery.
   (c) "Distributor" means a person who engages in the sale of
regulated beverages in regulated beverage containers to a dealer in
this state, including any manufacturer who engages in these sales.
"Distributor" includes a person who imports beverages from outside of
this state for sale to dealers or consumers in this state.
   (d) "Recycle" or "recycled" means the reuse or refilling of empty
regulated beverage containers, or the process of sorting, cleansing,
treating, and reconstituting empty postfilled regulated beverage
containers for the purpose of using the altered form. "Recycle" or
"recycled" does not include merely sorting, shredding, stripping,
compressing, storing, landfilling with, or disposing of an empty
regulated beverage container.
   (e) "Regulated beverage" means any of the following products:
   (1) A beverage that otherwise meets the definition of beverage for
purposes of Section 14504 and is sold in a beverage container that
is not an aluminum beverage container, a glass beverage container, a
plastic beverage container, or a bimetal container.
   (2) One hundred percent fruit juice in a container that is 46
ounces or more in volume.
   (3) Vegetable juice in a container that is more than 16 ounces in
volume.
   (f) "Regulated beverage container" means the individual, separate
bottle, can, jar, carton, or other receptacle, however denominated,
in which a regulated beverage is sold, and that is constructed of
metal, glass, or plastic, or other material, or a combination of
these materials. "Beverage container" does not include cups or other
similar open or loosely sealed receptacles.

      Article 2.  Mandatory Takeback and Recycling System


   17001.  (a) Except as provided in Article 3 (commencing with
Section 17004), on and after January 1, 2014, a distributor shall
submit a plan to the department for the implementation of a takeback
and recycling system incorporating all of the following elements:
   (1) A description of how the distributor will obtain a written
agreement with each dealer to whom the regulated beverage is sold
that provides that the dealer will take back empty regulated
containers either inside the store or at a recycling location in the
dealer's parking lot.
   (2) A description of how the distributor will provide the
equipment for a recycling location that would be located in the
dealer's parking lot.
    (3) Provisions to ensure that every empty regulated beverage
container sold or distributed by the distributor that is returned to
a dealer is recycled.
   (4) Provisions to ensure that not less than 80 percent of the
regulated beverage containers sold by the distributor in this state
are recycled.
   (5) Provisions to ensure the regulated beverage containers sold by
the distributor are made from materials that contain no less than 35
percent postconsumer recycled content.
   (b) The distributor shall implement the plan submitted to the
department and, on or before January 1, 2015, and annually
thereafter, demonstrate to the department, in a form and manner
specified by the department, both of the following:
   (1) Not less than 80 percent of the containers of the regulated
beverages sold by the distributor in this state are recycled.
   (2) The regulated beverage containers sold by the distributor are
made from materials containing no less than 35 percent postconsumer
recycled content.
   17002.  (a) The department may require a distributor to pay the
department an annual administrative fee. The department shall set the
fee at an amount that is adequate to cover the department's full
costs of administering and enforcing this article.
   (b) The department shall deposit the fees collected pursuant to
this section into the Regulated Beverage Account, which is hereby
established in the State Treasury. The department may expend the
moneys in Regulated Beverage Account, upon appropriation by the
Legislature, to cover the department's costs to implement this
article.
   17003.  The department may adopt regulations, including emergency
regulations, to implement this article.

      Article 3.  Voluntary Beverage Containers


   17004.  (a) In lieu of submitting and implementing a takeback and
recycling system pursuant to Article 2 (commencing with Section
17001), a distributor may elect to pay a redemption payment to the
department pursuant to subdivision (c) of Section 14560 and otherwise
comply with the requirements of Division 12.1 (commencing with
Section 14500).
   (b) A regulated beverage container for which a distributor elects
to make the election specified in subdivision (a) is a voluntary
beverage container for purposes of Section 14528.2. 
   SEC. 25.    No reimbursement is required by this act
pursuant to Section 6 of Article XIII B of the California
Constitution because the only costs that may be incurred by a local
agency or school district will be incurred because this act creates a
new crime or infraction, eliminates a crime or infraction, or
changes the penalty for a crime or infraction, within the meaning of
Section 17556 of the Government Code, or changes the definition of a
crime within the meaning of Section 6 of Article XIII B of the
California Constitution.  
  SECTION 1.    Section 14515.5 of the Public
Resources Code is amended to read:
   14515.5.  "PET container" means a plastic beverage container
labeled with a "1" or with "PETE" for polyethylene terephthalate
resin, pursuant to Section 18015 and subject to this division.        
Updated September 13, 2013