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 ofredemption rates andrecycling 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 reporta redemption rate anda recycling rate for eachsuch categoryof 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