California
The following text was found at
http://www.consrv.ca.gov/dor/crcp/recyclers/Documents/Act.pdf (pdf)
http://www.leginfo.ca.gov/cgi-bin/calawquery?codesection=prc (html--scroll down to Division 12.1)
California Public Resources Code
Division 12.1
California Beverage Container Recycling and Litter Reduction Act
14500. This division shall be known and may be cited as the
California Beverage Container Recycling and Litter Reduction Act.
14501. The Legislature finds and declares as follows:
(a) Experience in this state and others demonstrates that
financial incentives and convenient return systems ensure the
efficient and large-scale recycling of beverage containers.
Accordingly, it is the intent of the Legislature to encourage
increased, and more convenient, beverage container redemption
opportunities for all consumers. These redemption opportunities
shall consist of dealer and other shopping center locations,
independent and industry operated recycling centers, curbside
programs, nonprofit dropoff programs, and other recycling systems
that assure all consumers, in every region of the state, the
opportunity to return beverage containers conveniently, efficiently,
and economically.
(b) California grocery, beer, soft drink, container manufacturing,
labor, agricultural, consumer, environmental, government, citizen,
recreational, taxpayer, and recycling groups have joined together in
calling for an innovative program to generate large-scale redemption
and recycling of beverage containers.
(c) This division establishes a beverage container recycling goal
of 80 percent, and when the redemption rate for any one type of
beverage container falls below 65 percent, this division provides for
an increased refund value.
(d) It is the intent of the Legislature to ensure that every
container type proves its own recyclability.
(e) It is the intent of the Legislature to make redemption and
recycling convenient to consumers, and the Legislature hereby urges
cities and counties, when exercising their zoning authority, to act
favorably on the siting of multimaterial recycling centers, reverse
vending machines, mobile recycling units, or other types of recycling
opportunities, as necessary for consumer convenience, and the
overall success of litter abatement and beverage container recycling
in the state.
(f) The purpose of this division is to create and maintain a
marketplace where it is profitable to establish sufficient recycling
centers and locations to provide consumers with convenient recycling
opportunities through the establishment of minimum refund values and
processing fees and, through the proper application of these
elements, to enhance the profitability of recycling centers,
recycling locations, and other beverage container recycling programs.
(g) The responsibility to provide convenient, efficient, and
economical redemption opportunities rests jointly with manufacturers,
distributors, dealers, recyclers, processors, and the Department of
Conservation.
(h) It is the intent of the Legislature, in enacting this
division, that all empty beverage containers redeemed shall be
recycled, and that the responsibilities and regulations of the
department shall be determined and implemented in a manner which
favors the recycling of redeemed containers, as opposed to their
disposal.
(i) Nothing in this division shall be interpreted as affecting the
current business practices of scrap dealers or recycling centers,
except that, to the extent they function as a recycling center or
processor, they shall do so in accordance with this division.
(j) The program established by this division will contribute
significantly to the reduction of the beverage container component of
litter in this state.
14501.5. This division does not apply to any beverage container
which is sold and delivered to a railroad, sleeping car, or steamship
company, or common carrier operating vessels, as defined in Section
238 of the Public Utilities Code, operating under a certificate of
public convenience and necessity, or an air common carrier, for use
and consumption on trains, vessels, or airplanes.
14502. Unless the context otherwise requires, the definitions in this chapter govern the construction of this division. 14503. "Aluminum beverage container" means a beverage container which consists primarily of aluminum. 14503.5. "Average monthly volume" means the average number of empty beverage containers per month received by a certified recycling center. 14503.6. "Beneficiating processor" means any person certified by the department as a processor who also beneficiates purchased cullet so that it is furnace ready for glass container manufacturers, consistent with prevailing standards in the manufacturing industry. Cullet shall be deemed furnace ready when it has been cleansed, is free of nonglass contaminants, and has been crushed or otherwise processed in such a manner as to be acceptable without further processing by the purchasing glass container manufacturer. 14504. (a) Except as provided in subdivision (b), "beverage" means any of the following products if those products are in liquid, ready-to-drink form, and are intended for human consumption: (1) Beer and other malt beverages. (2) Wine and distilled spirit coolers. (3) Carbonated water, including soda and carbonated mineral water. (4) Noncarbonated water, including noncarbonated mineral water. (5) Carbonated soft drinks. (6) Noncarbonated soft drinks and "sport" drinks. (7) Except as provided in paragraph (4) of subdivision (b), noncarbonated fruit drinks that contain any percentage of fruit juice. (8) Coffee and tea drinks. (9) Carbonated fruit drinks. (10) Vegetable juice in beverage containers of 16 ounces or less. (b) "Beverage" does not include any of the following: (1) Any product sold in a container that is not an aluminum beverage container, a glass container, a plastic beverage container, or a bimetal container. (2) Wine, or wine from which alcohol has been removed, in whole or in part, whether or not sparkling or carbonated. (3) Milk, medical food, or infant formula. (4) One hundred percent fruit juice in containers that are 46 ounces or more in volume. (c) For purposes of this section, the following definitions shall apply: (1) "Infant formula" means any liquid food described or sold as an alternative for human milk for the feeding of infants. (2) (A) "Medical food" means a food or beverage that is formulated to be consumed, or administered enterally under the supervision of a physician, and that is intended for specific dietary management of diseases or health conditions for which distinctive nutritional requirements, based on recognized scientific principles, are established by medical evaluation. (B) A "medical food" is a specially formulated and processed product, for the partial or exclusive feeding of a patient by means of oral intake or enteral feeding by tube, and is not a naturally occurring foodstuff used in its natural state. (C) "Medical food" includes any product that meets the definition of "medical food" in the federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 360ee (b)(3). (3) "Noncarbonated soft drink" means a nonalcoholic, noncarbonated naturally or artificially flavored water containing sugar or sweetener or trace amounts of various elements from both natural and synthetic sources. 14505. "Beverage container" means the individual, separate bottle, can, jar, carton, or other receptacle, however denominated, in which a beverage is sold, and which 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. 14506. "Beverage manufacturer" means any person who bottles, cans, or otherwise fills beverage containers, or imports filled beverage containers, for sale to distributors, dealers, or consumers. 14506.3. "Bimetal container" means a beverage container which consists of one or more metals and which is composed primarily of steel. 14506.5. "Commingled" means a mix of empty beverage containers, as defined in Section 14512, and all other containers of the same material type. 14506.7. "Commingled rate" means the ratio of empty beverage containers, as defined in Section 14512, to all other containers of the same material type, as determined by the department. 14507.5. (a) "Community Conservation Corps" means a nonprofit public benefit corporation formed or operating pursuant to Part 2 (commencing with Section 5110) of Division 2 of Title 1 of the Corporations Code, or an agency operated by a city, county, or city and county, that is certified by the California Conservation Corps as meeting all of the following criteria: (1) The corps is organized in the form of supervised work crews and selects young men and women for participation on the basis of motivation for hard work, personal development, and public service, without regard to their prior employment or educational background, and consistent with Section 14402. Participation shall be for a period of one year, and may be extended. (2) The corps' program is based upon a highly disciplined work experience, includes an educational component, and is designed to develop corpsmembers' character and civic consciousness through rigorous work on public projects. The educational component of the corps' program includes enrollment in a vocational education program, public or charter high school, or postsecondary community college. (3) The corps compensates corpsmembers at not less than the federal minimum wage, and provides corpsmembers assistance in obtaining permanent employment following their participation in the corps program. (4) The corps engages in recycling and litter abatement projects as well as projects that accomplish the conservationist and other purposes described in subdivisions (a) to (h), inclusive, of Section 14300, and that assist agencies of local government and other nonprofit community organizations in developing, rehabilitating, and restoring parklands, recreational facilities, and other community resources. (5) The corps consists of an average annual enrollment of not less than 50 corpsmembers between 18 and 25 years of age. In determining the average annual enrollment of a community conservation corps for the purposes of subdivision (a) of Section 14581, the California Conservation Corps shall not include special corpsmembers, as described in Section 14303, who are employed by a community conservation corps. (b) The California Conservation Corps shall evaluate a community conservation corps for the purpose of determining its eligibility for certification, pursuant to this section, after it has completed 12 months of continuous operation, and annually thereafter. 14508. "Consumer" means every person who, for his or her use or consumption, purchases a beverage in a beverage container from a dealer. "Consumer" includes, but is not limited to, a lodging, eating, or drinking establishment, and soft drink vending machines. 14509. "Container manufacturer" means any person who produces beverage containers for filling by beverage manufacturers, including any person who imports these beverage containers from outside of this state for filling by beverage manufacturers. 14509.3. "Cullet" means scrap glass that is derived from postfilled food, drink, or beverage container glass produced or imported for sale in the state. 14509.4. "Convenience zone" means either of the following: (a) The area within a one-half mile radius of a supermarket. (b) The area designated by the department pursuant to Section 14571.5. 14509.5. "Curbside program" means a recycling program which meets all of the following criteria: (a) The program picks up empty beverage containers from individual or multiple family residences, or both, and the empty beverage containers are separated from waste materials prior to being picked up. (b) The program is operated by, or pursuant to a contract with, a city, county, or other public agency, or is acknowledged, in writing, by a city, county, or other public agency. (c) The program accepts empty beverage containers from consumers with the intent to recycle them, but does not pay the refund value. 14510. "Dealer" means a retail establishment which offers the sale of beverages in beverage containers to consumers. However, any lodging, eating, or drinking establishment, or soft drink vending machine operator who engages in the sale of beverages in beverage containers to consumers shall not be deemed a dealer for the purposes of this division, except that these sales are subject to Section 14560. To determine which retail establishments are dealers, the department shall use annual or more frequent updates provided by American Business Information, Inc., as long as the information provided by American Business Information, Inc., is updated at least annually. 14510.5. "Department" means the Department of Conservation. 14510.6. "Director" means the Director of Conservation. 14511. "Distributor" means every person who engages in the sale of beverages in beverage containers to a dealer in this state, including any manufacturer who engages in these sales. "Distributor" includes any person who imports beverages from outside of this state for sale to dealers or consumers in this state. 14511.5. "Drink" means fruit juice or any other noncarbonated drink. 14511.7. "Dropoff or collection program" means any person, association, nonprofit corporation, church, club, or other organization certified by the department, and which accepts or collects empty beverage containers from consumers with the intention to recycle them, or any waste reduction facility that separates beverage containers from the waste stream with the intent to recycle them. "Dropoff or collection program" does not include a certified recycling center, nonprofit dropoff program, or curbside program. 14512. "Empty beverage container" means a beverage container which meets all of the following requirements: (a) Has the seal or closure installed by the manufacturer broken or removed. (b) Does not contain foreign materials other than the residue of the beverage originally packaged in the beverage container by the manufacturer. (c) Bears the message required by Section 14561, or is a refillable beverage container. (d) Has a refund value established pursuant to Section 14560. 14512.5. "Food or drink packaging material" means any material which is not a beverage container in which a food or drink is sold in a retail establishment and the food or drink is not intended for consumption on the seller's premises. 14512.6. "For recycling" means that an empty beverage container has been received by a processor who has an arrangement whereby that container will actually be recycled. 14512.7. "Fund" means the California Beverage Container Recycling Fund established pursuant to subdivision (a) of Section 14580. 14513. "Glass beverage container" means a beverage container which has a body consisting primarily of glass. 14513.2. (a) Except as provided under Section 14549, "glass container manufacturer" means a person who manufactures commercial containers, whose principal component part or parts consist of virgin glass, postfilled glass, or any combination of both, for sale in California or for export to other states or countries. (b) "Glass container manufacturer" includes, but is not limited to, all commercial manufacturing operations which produce beverage containers, food or drink packaging material made primarily of glass, or any combination of both of those items. For beer and other malt beverages manufactured outside the state, the container 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. 14513.3. "Glass food or drink container" means any nonbeverage container, whose principal component part or parts consist of virgin glass, postfilled glass, or any combination of both, in which any food or drink is sold or offered for sale in California. 14513.4. "Handling fee" means an amount paid to an operator of a supermarket site, a rural region recycler, as defined in Section 14525.5.1, or a nonprofit convenience zone recycler, as defined in Section 14514.7, that is located in a convenience zone, for every beverage container redeemed by the operator at the supermarket or within the zone in which the supermarket site is located, by the rural region recycler, or by the nonprofit convenience zone recycler. 14513.5. "HDPE" means a plastic beverage container labeled with a "2" for high-density-polyethylene resin pursuant to Section 18015 and subject to this division. 14514. "Managing employee" includes, but is not limited to, any person who manages the operation of a facility or is authorized by the certified operator to sign shipping reports. 14514.4.1. "Neighborhood dropoff program" means a recycling program which meets all of the following criteria: (a) The program is certified by the department as a dropoff or collection program, as defined by Section 14511.7. (b) The program has been designated by a city, county, or city and county to provide a recycling opportunity in residential neighborhoods specified by the city, county, or city and county. (c) The program is located in a rural region, as identified pursuant to subparagraph (A) of paragraph (2) of subdivision (b) of Section 14571. 14514.5. "Nonprofit dropoff program" means a recycling program which meets all of the following criteria: (a) The program is organized under Section 501(c) or Section 501 (d) of the Internal Revenue Code (26 U.S.C. Secs. 501(c) and 501(d)), or operated by, or caused to be operated by, a city, county, or other public agency. (b) The program is certified by the department pursuant to Section 14541.5. (c) The program accepts empty beverage containers from consumers with the intent to recycle them, but may pay the refund value. Except as provided in subdivision (c) of Section 14572, if the program pays the refund value the program shall pay the refund value, for all types of empty beverage containers, regardless of the beverage container's material. 14514.6. "Not for recycling" means that an empty beverage container has been received by a processor who does not have an arrangement whereby that container will actually be recycled. 14514.7. "Nonprofit convenience zone recycler" means a recycling center that meets all of the following criteria: (a) The recycling center is operated by an organization established under Section 501(c) or 501(d) of Title 26 of the United States Code. (b) The recycling center is certified by the department pursuant to Section 14538. (c) The recycling center is located within a convenience zone, but is not necessarily a supermarket site. 14515. "Other beverage container" means a beverage container which has a body consisting of metal, glass, plastic, other materials, or a combination of these, but which is not an aluminum, bimetal, glass, or plastic beverage container. 14515.1. "Out-of-state container" means a used beverage container or used beverage container component that is not subject to Section 14560, and that is brought into this state. 14515.5. "PET container" means a plastic beverage container labeled with a "1" pursuant to Section 18015 and subject to this division. 14515.6. "Physical recycling location" means the area in a convenience zone served by one or more reverse vending machines which accept all empty aluminum, glass, and plastic beverage containers and issue a cash refund or a redeemable credit slip and are located within 10 feet of each other. The physical recycling location shall redeem odd sized empty beverage containers or empty beverage containers made from other material types in a manner approved by the department. "Physical recycling location" does not include a combination of reverse vending machines which accept less than all empty aluminum, glass, and plastic beverage containers and one or more dropoff bins. 14516. "Place of business of the dealer" means the location at which a dealer sells, or offers for sale, beverages in beverage containers to consumers. 14517. "Plastic beverage container" means a beverage container which has a body consisting primarily of plastic. 14517.5. "Postfilled container" means any container which had been previously filled with a beverage or food. 14518. "Processor" means any person, including a scrap dealer, certified by the department who purchases empty aluminum beverage containers, bimetal beverage containers, glass beverage containers, plastic beverage containers, or any other beverage containers, including any one or more of those beverage containers, which have a refund value established pursuant to this division, from recycling centers in this state for recycling, or, if the container is not recyclable, not for recycling, and who cancels, or who certifies to the department in a form prescribed by the department the cancellation of, the refund value of these empty beverage containers by processing empty beverage containers, in any manner which the department may prescribe. However, the department shall not take any action regulating scrap dealers or recycling centers who are processors or recycling centers unless authorized by and pursuant to the goals of this division. 14518.4. "Processing fee" means the amount paid by beverage manufacturers to the department pursuant to Section 14575. 14518.5. "Processing payment" means an amount paid to processors, dropoff or collection programs, curbside programs, and recycling centers by the department pursuant to subdivision (a) of Section 14573 and subdivision (a) of Section 14573.5 when the department determines that the scrap value being offered by container manufacturers, beverage manufacturers, or willing purchasers for a particular container material is insufficient to insure the economic recovery of the container type at the minimum number of recycling centers or locations required pursuant to Section 14571. The processing payment shall be determined by the department pursuant to Section 14575. 14519. "Recycle," "recycled," "recycling," or "recyclable" means the reuse or refilling of empty beverage containers, or the process of sorting, cleansing, treating, and reconstituting empty postfilled beverage containers for the purpose of using the altered form. "Recycle," "recycled," "recycling," or "recyclable" does not include merely sorting, shredding, stripping, compressing, storing, landfilling with, or disposing of an empty beverage container. 14519.5. "Recycler" means a recycling center, dropoff or collection program, or curbside program. 14520. "Recycling center" means an operation which is certified by the department and which accepts from consumers, and pays or provides the refund value pursuant to Section 14572 for, empty beverage containers intended to be recycled. 14520.5. "Recycling location" means a place, mobile unit, reverse vending machine, or other device where a certified recycling center accepts one or more types of empty beverage containers from consumers, and pays or provides the refund value for one or more types of empty beverage containers. For purposes of subdivision (c) of Section 14572, "recycling location" means the aluminum reverse vending machine and does not mean the machine's physical location. 14520.6. "Noncertified recycler" means a person, entity, or operation which is not certified by the department and which purchases empty beverage containers from consumers, or from dropoff or collection programs. 14521. "Recycling rate" means the proportion of empty beverage containers by type returned to processors for recycling, measured in the manner prescribed in Section 14551. 14522.5. "Redemption" and "redeem" means the return to a recycling center or location of an empty beverage container for a refund of at least the refund value. 14523. "Redemption payment" means the minimum amount paid by a distributor to the department for every beverage container sold or transferred to a dealer. 14523.5. "Redemption rate" means the proportion of empty beverage containers returned to processors measured in the manner prescribed in Section 14551. 14524. "Refund value" means the amount established for each type of beverage container pursuant to Section 14560 that is paid by the following: (a) A certified recycling center to the consumer or dropoff or collection center for each beverage container redeemed by the consumer or dropoff or collection center. With respect to consumers returning containers to recycling centers, the refund value shall not be subject to tax under the Personal Income Tax Law (Part 10 (commencing with Section 17001) of Division 2 of the Revenue and Taxation Code) or the Bank and Corporation Tax Law (Part 11 (commencing with Section 23001) of Division 2 of the Revenue and Taxation Code). (b) A processor to a certified recycling center, dropoff or collection program, curbside program, or nonprofit dropoff program for each beverage container received from the certified recycling center, dropoff or collection program, curbside program, or nonprofit dropoff program. (c) The department to a processor, for every beverage container received by the processor from a certified recycling center, curbside program, dropoff or collection program, or nonprofit dropoff program. 14525. "Refillable beverage container" means any aluminum beverage container, bimetal beverage container, glass beverage container, plastic beverage container, or other beverage container, holding 150 fluid ounces or less of beverage, which has a minimum deposit of three cents ($0.03), and which ordinarily would be returned to the manufacturer to be refilled and resold. 14525.5. "Reverse vending machine" means a mechanical device which accepts one or more types of empty beverage containers and issues a cash refund or a redeemable credit slip with a value not less than the container's refund value. The refund value payments shall be aggregated and then paid, if more than one container is redeemed in a single transaction. 14525.5.1. "Rural region recycler" means an operator that is certified pursuant to subparagraph (A) of paragraph (2) of subdivision (b) of Section 14571, and who accepts or collects empty beverage containers from consumers pursuant to Section 14572 with the intention to recycle them. 14526. "Scrap value" means the price paid for container material types subject to this division, after shipping and handling costs are deducted. 14526.5. "Supermarket" means a full-line, self-service retail store with gross annual sales of two million dollars ($2,000,000), or more, and which sells a line of dry grocery, canned goods, or nonfood items and some perishable items. For purposes of determining which dealers are supermarkets, the department shall use the annual updates of the Progressive Grocer Marketing Guidebook and any computer printouts developed in conjunction with the guidebook. 14526.6. "Supermarket site" means any certified recycling center which redeems all types of empty beverage containers in accordance with Section 14572, and which is located within, or outside and immediately adjacent to the entrance of, or at, or within a parking lot or loading area surrounding, a supermarket which is the focal point of a convenience zone, or a dealer that is located within that zone, and which is accessible to motor traffic. 14527. "Use or consumption" includes the exercise of any right or power over a beverage incidental to the beverage's ownership, including, but not limited to, drinking the beverage. "Use or consumption" does not include the sale, or the keeping or retention, of a beverage for the purposes of sale. 14528. "Universal product code" is an 11-digit, all-numeric code that represents a beverage container or other consumer package of a particular brand, size, type, and manufacturer by using a series of alternating bars and spaces for electronic scanning. 14528.1. "Voluntary artificial scrap value" means a price paid by a willing purchaser of empty PET containers, that reflects the payment of the scrap value for all PET containers sold, and that, when combined with payments made from the PET processing fee account pursuant to clause (ii) of subparagraph (A) of paragraph (6) of subdivision (a) of Section 14581, is equal to, or more than, the recycling cost for empty PET containers, as determined in subdivision (d) of Section 14575. 14528.5. "Wine and distilled spirit cooler" means a beverage containing wine or distilled spirits to which is added concentrated or unconcentrated juice or flavoring material and containing not more than 7 percent alcohol by volume. This section shall become operative on January 1, 1990. 14529. This division is a matter of statewide interest and concern and is applicable uniformly throughout the state. Accordingly, this division occupies the whole field of regulation of recycling-related refund values, redemption payments, deposits, and similar fees relating to beverage containers, as provided in this division, and to containers of wine and distilled spirits products. No city, county, or other public agency may enforce or implement any existing or new ordinance, resolution, regulation, or rule establishing recycling-related refund values, redemption payments, deposits, or similar fees relating to these containers in the state unless expressly authorized by this division. If a federal law is enacted which establishes recycling-related refund values, redemption payments, deposits, and similar fees, relating to beverage containers, other than a federal law only affecting federal lands, or if a state law is enacted by initiative, which establishes recycling-related refund values, redemption payments, deposits, and similar fees relating to beverage containers, this division shall become inoperative. This section does not prohibit the implementation or enforcement of any ordinance or regulation governing curbside or dropoff recycling programs operated by, or pursuant to a contract with, a city, county, or other public agency, including actions relating to fees, or establishing fees, for these programs 14529.5. Any action to increase recycling taken by the department, or by any person or entity, affecting scrap values, the quantities of materials being recycled, or the method of invoicing the sale of beverages pursuant to this division is not a violation of the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code) and the Unfair Practices Act (Chapter 4 (commencing with Section 17000) of Part 2 of Division 7 of the Business and Professions Code). This section does not apply to any action taken by a recycling center to increase the recycling of beverage containers. 14529.7. (a) Except as provided in subdivision (b), this division does not apply to any program involving the collection and payment of deposits for beverage containers sold, used, or consumed at national parks and monuments, military installations, or any other property owned by and under the jurisdiction of the United States. (b) To the extent permitted by federal law, this division, including, but not limited to, Section 14560.5, shall apply to a national park or monument, military installation, or any other property owned by, and under the jurisdiction of, the United States, with regard to a beverage container not otherwise subject to a program involving the collection and payment of deposits for beverage containers. (c) For purposes of this section, "a program involving the collection and payment of deposits" means a program, other than one imposed pursuant to this division, at a national park or monument, military installation, or any other property owned by, and under the jurisdiction of, the United States, that imposes a deposit on a beverage container at the time of sale and provides an opportunity for the beverage container purchaser to redeem the deposit at the national park or monument, military installation, or other property owned by, and under the jurisdiction of, the United States.
14530. This division shall be administered by the department.
Notwithstanding Section 607, the department may, for organizational
purposes, create a new division, bureau, or office to administer this
division. If a new division, bureau, or office is created, any
reference to "department" or "director" in this division shall be
deemed to be a reference to that entity and the officer in charge of
that entity.
14530.1. There is hereby created within the department a recycling
financial analysis and policy development unit, to develop, analyze,
consolidate, and evaluate economic and policy proposals to carry out
the objectives of this division, including, but not limited to, all
of the following:
(a) Evaluate the solvency of the fund on an ongoing basis in order
to make recommendations and report to the Legislature.
(b) Identify the fiscal impacts of proposed recycling programs, or
changes to existing recycling programs.
(c) Assess the economic impacts of recycling proposals and
programs on the state's citizens and businesses, including the impact
of adding new container types into existing law.
(d) Develop recommendations to better integrate the various
recycling alternatives available from state government, local
government, and private industry with the objective of reducing
recycling costs to citizens and businesses and meeting the 80-percent
recycling goal established by this division.
14530.2. The Division of Recycling shall be administered by an
assistant director who is appointed by the Governor. The appointment
shall be exempt from civil service.
14530.5. (a) For purposes of entering into contracts for
consulting, promotional, or advisory services necessary to implement
this division, the requirements of Sections 11042 and 14615 of the
Government Code and Sections 10295 and 10318 of the Public Contract
Code do not apply to the activities of the department pursuant to
this division, except that any sole source contract awarded by the
department shall be reviewed and approved by the Department of
General Services.
(b) In addition to any regulations which the department is
required by statute to adopt, the department may adopt any other
rules and regulations pursuant to Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code which the department determines may be necessary or useful to
carry out this division or any of the department's duties or
responsibilities imposed pursuant to this division.
(c) The department may prepare, publish, and issue printed
pamphlets, promotional materials, and bulletins which the director
determines to be necessary for the dissemination of information to
the public concerning the activities of the department pursuant to
this division.
14530.6. Upon the request of the department, the Attorney General
shall represent the department and the state in litigation concerning
affairs of the department.
14536. (a) Except as provided in subdivision (b), the director
shall adopt, amend, or repeal all rules and regulations in accordance
with Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code.
(b) (1) The director shall adopt regulations, and may adopt
emergency regulations for the purposes of implementing Sections
14538, 14539, 14541, 14549.1, 14549.2, 14549.7, 14550, 14561, 14574,
14575, 14585, 14588.1, 14588.2, and 14591.
(2) Any emergency regulations, if adopted, shall be adopted in
accordance with Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code, and for the
purposes of that chapter, including Section 11349.6 of the Government
Code, the adoption of these regulations is an emergency and shall be
considered by the Office of Administrative Law as necessary for the
immediate preservation of the public peace, health and safety, and
general welfare. Notwithstanding Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code,
including subdivision (e) of Section 11346.1 of the Government Code,
any emergency regulations adopted pursuant to this section shall be
filed with, but not be repealed by, the Office of Administrative Law
and shall remain in effect until revised by the director.
14536.1. Notwithstanding Section 14536, if the department
determines that it is necessary to adopt or amend regulations to
implement Section 14575, the department may adopt or amend those
regulations as emergency regulations. The Office of Administrative
Law shall consider those regulations to be necessary for the
immediate preservation of the public peace, health and safety, and
general welfare for purposes of Section 11349.6 of the Government
Code. Notwithstanding subdivision (e) of Section 11346.1 of the
Government Code, the emergency regulations adopted or amended
pursuant to this section shall be repealed 180 days after the
effective date of the regulations, unless the department complies
with Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code.
14536.5. (a) In carrying out the division, the department may
solicit and use all expertise available in other state agencies and
where an existing state agency performs functions of a similar nature
to the department's functions, the department may contract with, or
cooperate with, the agency in carrying out this division.
(b) Notwithstanding subdivision (a), the Department of Food and
Agriculture may, as requested by the department, collect, compile,
and report information regarding the importation of filled or
postfilled beverage containers. Border agricultural inspection
stations and any other appropriate information gathering focal points
may be used and the plant quarantine officers and supervisors of the
Department of Food and Agriculture shall collect, compile, and
report information requested by the department pursuant to this
subdivision. Recovery of costs incurred by the Department of Food
and Agriculture shall be accomplished through an interagency
agreement with the department.
14537. The department shall keep accurate books, records, and
accounts of all of its dealings, and these books, records, and
accounts are subject to an annual audit by an auditing firm selected
by the department. The auditing firm or the department shall also
conduct a selective audit of entities making payments to, or
receiving payments from, the department to determine whether
redemption payments and applicable processing fees are being paid to
the department on all beverage containers sold in California, and
that refund values and processing payments are being paid out
properly by the department.
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) 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.
(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),
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.
14539. (a) The department shall certify processors pursuant to this
section. The director shall adopt, by regulation, requirements and
standards 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 processor demonstrates to the satisfaction of the
department that the processor will operate in accordance with this
division.
(2) If one or more certified entities have operated at the same
location within the past five years, the operations at the location
of the processor 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.
(3) The processor notifies the department promptly of any material
change in the nature of the processor's operations that conflicts
with the information submitted in the operator's application for
certification.
(b) A certified processor shall comply with all of the following
requirements for operation:
(1) The processor shall not pay a refund value for, or receive a
refund value from the department 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 processor 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,
the processor shall accept, and pay at least the refund value for,
all empty beverage containers, regardless of type, for which the
processor is certified.
(4) A processor shall not pay any refund values, processing
payments, or administrative fees to a noncertified recycler. A
processor may pay refund values, processing payments, or
administrative fees to any entity that is identified by the
department on its list of certified recycling centers.
(5) A processor shall not pay any refund values, processing
payments, or administrative fees on empty beverage containers or
other containers that the processor knew, or should have known, were
coming into the state from out of the state.
(6) A processor shall not claim refund values, processing
payments, or administrative fees on empty beverage containers that
the processor knew, or should have known, were received from
noncertified recyclers or on beverage containers that the processor
knew, or should have known, come from out of the state. A processor
may claim refund values, processing payments, or administrative fees
on any empty beverage container that does not come from out of the
state and that is received from any entity that is identified by the
department on its list of certified recycling centers.
(7) A processor shall take the actions necessary and approved by
the department to cancel containers to render them unfit for
redemption.
(8) A processor shall prepare or 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
processor or that are required to be obtained from recycling centers.
(B) Processor invoice reports.
(C) Cancellation verification documents.
(D) Documents authorizing recycling centers to cancel empty
beverage containers.
(E) Processor-to-processor transaction receipts.
(F) Rejected container receipts on materials subject to this
division.
(G) Receipts for transactions with beverage manufacturers on
materials subject to this division.
(H) Receipts for transactions with distributors on materials
subject to this division.
(I) Weight tickets.
(9) In addition to the requirements of paragraph (7), a processor
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, any payments
made by the department to the processor pursuant to Section 14573
that are based on the documents specified in paragraph (8), 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.
14539.5. (a) The department shall certify dropoff and collection
programs pursuant to this section. The director shall adopt, by
regulation, requirements and standards for certification and a
dropoff or collection program shall meet all the standards and
requirements contained in the regulations for certification. The
regulations shall require that all information be submitted to the
department under penalty of perjury. The regulations shall require,
in addition to any other conditions that may be imposed by the
department, that both of the following conditions be met for
certification:
(1) The dropoff or collection program demonstrates, to the
satisfaction of the department, that the dropoff or collection
program will operate in accordance with this division.
(2) The dropoff or collection program notifies the department
promptly of any material change in the nature of its operations that
conflicts with the information submitted in the application for
certification.
(b) A certified dropoff or collection program shall not receive
any refund value or processing payment on an empty beverage container
that the certified dropoff or collection program knew, or should
have known, was received from a noncertified recycler, on any
beverage container that the certified dropoff or collection program
knew or should have known came from out of this state, or any other
beverage container or other product that does not have a refund value
established pursuant to Section 14560.
(c) The department may recover, in restitution pursuant to
paragraph (5) of subdivision (c) of Section 14591.2, any payment made
from the fund to a dropoff or collection program pursuant to Section
14573.5 that is based on a document that is not prepared or
maintained in compliance with any applicable recordkeeping
requirements required pursuant to this division or the department's
regulations and that does not allow the department to verify the
claims for those payments.
14540. The department may review and verify all applications for
certification of recycling centers and processors, and may conduct a
comprehensive field investigation of any applicant in any manner
which the department deems necessary to promote the purposes of this
division. This division does not prohibit the department from
certifying the same location or entity as both a processor and a
recycling center.
14541. (a) The department may issue a certificate pursuant to an
initial or renewal application for certification as probationary, and
the department may issue any other certificate as probationary
pursuant to an enforcement action.
(b) A probationary certificate issued pursuant to this section
shall be issued for a limited period of not more than two years.
Before the end of the probationary period, the department shall issue
a nonprobationary certificate, extend the probationary period for
not more than one year, or, after notice to the probationary
certificate holder, revoke the probationary certificate. Subsequent
to the revocation, the former probationary certificate holder may
request a hearing, which, notwithstanding, Section 11445.20 of the
Government Code, shall be conducted in the same form as a hearing for
an applicant whose original application for certification is denied.
(c) If a hearing is requested pursuant to subdivision (b) and the
party requesting the hearing fails to appear on the date scheduled,
and does not notify the department at least five days prior to the
hearing date that the party will not appear, the department may
recover from the party all costs and fees incurred by the department,
including attorneys' and experts' fees, and any other cost
associated with preparing for, or conducting, the hearing.
(d) If conditions are imposed on the certificate holder as part of
a disciplinary proceeding conducted pursuant to Section 14591.2, the
certificate shall be considered probationary. If, at any time, the
certificate holder violates any term or condition of the probationary
certificate, the certificate may be revoked or suspended, after
three days' notice, without any further hearing by the department.
14541.5. Any certification or registration granted by the
department is a privilege and not a vested right or interest.
14549. (a) Every glass container manufacturer shall report to the
department each month, by a method as determined by the department,
the amount of total tons of new glass food, drink, and beverage
containers made in California by that glass container manufacturer
and the tons of California postfilled glass used in the manufacturing
of those new containers.
(b) Each glass container manufacturer in the state shall use a
minimum percentage of 35 percent of postfilled glass in the
manufacturing of their glass food, drink, or beverage containers
measured in the aggregate, on an annual basis, except that if a glass
container manufacturer demonstrates to the satisfaction of the
department that its use of postfilled glass during the annual period
is made up of at least 50 percent mixed-color cullet, then that
manufacturer shall use a minimum percentage of 25 percent postfilled
glass in the manufacturing of its glass food, drink, or beverage
containers, measured in the aggregate, on an annual basis.
(c) A glass container manufacturer may seek a reduction or waiver
of the minimum postfilled glass percentage required to be used in the
manufacture of glass food, drink, or beverage containers pursuant to
subdivision (b). The department may grant a reduction or waiver of
the percentage requirement if it finds and determines that it is
technologically infeasible for the glass container manufacturer to
achieve the percentage requirement or if the department determines
that a glass container manufacturer cannot achieve the minimum
percentage because of a lack of available glass cullet.
(d) For the purposes of this section, "mixed-color cullet" means
cullet that does not meet the American Society for Testing and
Materials (ASTM) standard specifications for color mix of color
sorted postfilled glass as raw material for the manufacture of glass
containers.
14549.1. (a) In order to improve the quality and marketability of
empty beverage containers collected for recycling in the state by
curbside recycling programs or dropoff or collection programs, the
department may, consistent with Section 14581 and subject to the
availability of funds, pay a quality incentive payment for each
material type, as specified in subdivision (c).
(b) The department may make a quality incentive payment pursuant
to this section to either an operator of a curbside recycling program
registered pursuant to Section 14551.5, or to any other entity
certified pursuant to this division.
(c) Subject to subdivision (a), the department shall pay a quality
incentive payment for each type of beverage container material in
accordance with the following conditions:
(1) For quality incentive payments for empty glass beverage
containers, all of the following shall apply:
(A) The department may make a quality incentive payment only for
color-sorted glass beverage containers that are substantially free of
contamination.
(B) The department may make a quality incentive payment for empty
glass beverage containers that are either collected color sorted by
curbside recycling programs or dropoff or collection programs, or
that are collected mixed color by curbside recycling programs or
dropoff or collection programs and are subsequently color sorted by
the collector or any other entity certified pursuant to this
division.
(C) The amount of the quality incentive payment for empty glass
beverage containers shall be up to sixty dollars ($60) per ton, as
determined by the department.
(2) For quality incentive payments for empty plastic beverage
containers, both of the following shall apply:
(A) The department may make a quality incentive payment only for
plastic beverage containers collected by curbside recycling programs
or dropoff or collection programs, that are sorted by resin type,
consistent with any quality specifications that the department may
adopt.
(B) The amount of the quality plastic incentive payment shall be
up to one hundred eighty dollars ($180) per ton, as determined by the
department.
(3) For quality payments for empty aluminum beverage containers,
all of the following shall apply:
(A) The department may make a quality incentive payment only for
aluminum beverage containers that are free of any and all metallic
and nonmetallic items, other than used aluminum containers.
(B) The department may make a quality incentive payment for empty
aluminum beverage containers that are collected commingled by
curbside recycling programs or dropoff or collection programs, and
subsequently cleaned by the collector or any other entity certified
pursuant to this division, of any and all metallic and nonmetallic
items, other than used aluminum containers, consistent with any
quality specifications that the department may adopt.
(C) The amount of the quality incentive payment for empty aluminum
beverage containers shall be up to one hundred twenty-five dollars
($125) per ton, as determined by the department.
(d) An operator of a curbside recycling program or any other
certified entity receiving a quality incentive payment shall make
available for inspection and review any relevant record that the
department determines is necessary to verify the accuracy of data
upon which the quality incentive payment is based and the operator's
or certified entity's compliance with any applicable regulation.
(e) The department may make only one quality incentive payment for
each empty beverage container collected pursuant to this section.
(f) This section shall become operative on January 1, 2007.
14549.2. (a) For purposes of this section, the following
definitions shall apply:
(1) "Certified entity" means a recycling center, processor, or
dropoff or collection program certified pursuant to this division.
(2) "Product manufacturer" means any person who manufactures a
plastic product in this state.
(b) In order to develop California markets for empty plastic
beverage containers collected for recycling in the state, the
department may, consistent with Section 14581 and subject to the
availability of funds, pay a market development payment to a
certified entity or product manufacturer for empty plastic beverage
containers collected and managed pursuant to this section.
(c) The department shall make a market development payment to a
certified entity or product manufacturer in accordance with this
section, only if the plastic beverage container is collected and
either recycled or used in manufacturing, in the state, as follows:
(1) The department shall make a market development payment to a
certified entity for empty plastic beverage containers that are
collected for recycling in the state, that are subsequently washed
and processed by a certified entity into a flake, pellet, or other
form in the state, and made usable for the manufacture of a plastic
product by a product manufacturer.
(2) The department shall make a market development payment to a
product manufacturer for empty plastic beverage containers that are
collected for recycling in the state, that are subsequently washed
and processed into a flake, pellet or other form in the state, and
used by that product manufacturer to manufacture a product in this
state.
(3) The department shall determine the amount of the market
development payment, which may be set at a different level for a
certified entity and a product manufacturer, but shall not exceed one
hundred fifty dollars ($150) per ton.
(4) The department may make a market development payment to both a
certified entity and a product manufacturer for the same empty
plastic beverage container.
(d) This section shall remain in effect only until January 1,
2012, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2012, deletes or extends
that date.
14549.5. On or before the 90th day after the effective date of the
act amending this section, and annually thereafter, 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, collection programs, and recycling
centers. Prior to recalculating a commingled rate pursuant to this
section, the department shall do all of the following:
(a) Consult with private and public operators of curbside
recycling programs, 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) 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) 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 were prepared as part of the
department's review of a commingled rate.
(d) (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
of the first half of the 2003-04 Regular Session of the Legislature
amending this section. 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) of Section 14575 for
these containers, the department may determine not to calculate a
commingled rate pursuant to this subdivision.
14549.6. (a) The department, consistent with Section 14581 and
subject to the availability of funds, shall annually pay a total of
fifteen million dollars ($15,000,000) per fiscal year to operators of
curbside programs and neighborhood dropoff programs that accept all
types of empty beverage containers for recycling. The payments shall
be for each container collected by the curbside or neighborhood
dropoff programs and properly reported to the department by
processors, based upon all of the following:
(1) The payment amount shall be calculated based upon the volume
of beverage containers collected by curbside and neighborhood dropoff
programs during the 12-month calendar year ending on December 31 of
the fiscal year for which payments are to be made.
(2) The per-container rate shall be calculated by dividing the
total volume of beverage containers collected, as determined pursuant
to paragraph (1), into the sum of fifteen million dollars
($15,000,000).
(3) The amount to be paid to each operator of a curbside and
neighborhood dropoff program shall be based upon the per-container
rate, calculated pursuant to paragraph (2), multiplied by the
curbside program's total reported beverage container volume
calculated pursuant to paragraph (1).
(b) The amounts paid pursuant to this section shall be expended by
operators of curbside and neighborhood dropoff programs only for
activities related to beverage container recycling.
(c) The department shall disburse payments pursuant to this
section not later than the end of the fiscal year following the
calendar year for which the payments are calculated pursuant to
paragraph (1) of subdivision (a), subject to the availability of
funds.
(d) The operator of a curbside program or neighborhood dropoff
program shall make available for inspection and review any relevant
record that the department determines is necessary to verify
compliance with this section.
14549.7. (a) Commencing on January 1, 2007, and consistent with
Section 14581, and to the extent that existing funds are available
for this purpose, the department shall establish a recycling
incentive payment for eligible recycling centers and dropoff or
collection programs for empty beverage containers accepted or
collected directly from consumers.
(b) To be eligible for recycling incentive payments, a recycling
center, or dropoff or collection program shall meet both of the
following requirements:
(1) (A) The recycling center or dropoff or collection program is
certified, and "open for business," as specified in Section 14571,
during the entire two-year period prior to the six-month period for
which payments are made, during the entire six-month period for which
payments are made, and at the time the payment is made. A six-month
period shall commence either on January 1 or July 1.
(B) Notwithstanding subparagraph (A), a recycling center or
dropoff or collection program that was operational prior to July 1,
2005, may receive a recycling incentive payment for eligible beverage
containers collected on or after January 1, 2007.
(2) The number of beverage containers accepted or collected
directly from consumers for recycling by the recycling center or
dropoff or collection program during the six-month period for which
payments are made exceeds by 6.5 percent, or more, for calendar year
2007, and by 5 percent, or more, for calendar years 2008 and 2009,
the number of beverage containers accepted or collected directly from
consumers for recycling by that entity during the same six-month
period of the prior year.
(c) (1) Eligible beverage containers are those beverage containers
that are accepted or collected directly from consumers for recycling
by an eligible recycling center or dropoff or collection program
during the six-month period for which payments are made that exceed
the number of beverage containers accepted or collected directly from
consumers by that entity in the same six-month period of the prior
year. Eligible beverage containers determined pursuant to this
paragraph shall be the "eligible volume" used to make payments
pursuant to paragraph (4) of subdivision (d).
(2) Empty beverage containers purchased or collected by a
recycling center or a dropoff or collection program from another
certified or registered entity are not eligible for recycling
incentive payments.
(d) The department shall make recycling incentive payments for
each eligible beverage container accepted or collected directly from
consumers by an eligible recycling center and dropoff or collection
program and properly reported to the department by a processor, based
upon all of the following:
(1) The payment amount shall be calculated based upon the number
of eligible beverage containers, as specified in subdivision (c),
collected by the eligible recycling centers and dropoff or collection
program, as specified in subdivision (b), during the six-month
period for which the payments are to be made.
(2) The per-container rate shall be up to one cent ($0.01) for
each eligible beverage container, pursuant to subdivision (c).
(3) The amount to be paid to each recycling center and dropoff or
collection program shall be based upon the per-container rate,
multiplied by each eligible program's total number of eligible
beverage containers calculated pursuant to paragraph (1).
(e) The department shall disburse payments pursuant to this
section within 6 months of the end of the six-month period for which
the payments are calculated pursuant to paragraph (1) of subdivision
(d), subject to the availability of funds.
(f) Only one payment shall be made for each eligible empty
beverage container collected by an eligible recycling center or
dropoff or collection program.
(g) The operator of an eligible recycling center and dropoff or
collection program shall make available for inspection and review any
relevant record that the department determines is necessary to
verify compliance with this section.
(h) This section shall remain in effect only until January 1,
2010, and as of that date is repealed, unless a later enacted
statute, which is enacted before January 1, 2010, deletes or extends
that date.
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 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 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 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 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 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.
14551. (a) The department shall establish reporting periods for the
reporting of redemption rates and recycling rates. Each reporting
period shall be six months. The department shall determine all of the
following for each reporting period and shall issue a report on its
determinations, within 130 days of the end of each reporting period:
(1) Sales of beverages in aluminum beverage containers, bimetal
beverage containers, glass beverage containers, plastic beverage
containers, and other beverage containers in this state, including
refillable beverage containers.
(2) Returns for recycling, and returns not for recycling, of empty
aluminum beverage containers, bimetal beverage containers, glass
beverage containers, plastic beverage containers, and other beverage
containers in this state, including refillable beverage containers
returned to distributors pursuant to Section 14572.5. These numbers
shall be calculated using the average current weights of beverage
containers, as determined and reported by the department. To these
numbers shall be added and separately reported the following, if
greater than, or equal to, zero:
(A) All empty postfilled aluminum, glass, and plastic food or
drink packaging materials sold in the state, returned for recycling,
and reported by weight to the department which do not have a refund
value less the number specified in subparagraph (B).
(B) The number of beverage containers which comprise the first
five percentage points of the redemption rate without including the
empty postfilled aluminum, glass, and plastic food or drink packaging
materials sold in the state, returned for recycling and reported by
weight to the department which do not have a refund value.
(3) An aluminum beverage container redemption rate, the numerator
of which shall be the number of empty aluminum beverage containers
returned, including refillable aluminum beverage containers and empty
postfilled aluminum food or drink packaging material included in
paragraph (2), and the denominator of which shall be the number of
aluminum beverage containers sold in this state.
(4) 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) 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) 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) 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) 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), 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), inclusive, sold in this state.
(13) The department may define categories of other beverage
containers, and report a redemption rate and a recycling rate for
each such category of other beverage containers.
(14) 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.
14551.4. The department shall make available the information
collected pursuant to subdivision (a) of Section 14551, concerning
the volumes of materials collected from certified recycling centers,
only to a governmental agency which requests the information,
including a city or county, or an entity specifically designated by
the city or county to receive the information if the entity requests
the information, if all of the following conditions are met:
(a) The request is made in writing.
(b) All information provided by the department is provided using
the aggregate amounts collected in the city or county unless the city
or county, or an entity specifically designated by the city or
county to receive the information, requests the information provided
by each individual certified recycling center.
(c) All information provided to the governmental agency, including
a city or county, or an entity specifically designated by the city
or county to receive the information, is considered proprietary and
confidential in nature and protected in accordance with the
requirements of subdivision (b) of Section 14551 of the Public
Resources Code, Section 14554 of the Public Resources Code, and
subdivision (e) of Section 6254.5 of the Government Code.
14551.5. (a) The department shall register the operators of
curbside programs pursuant to this section.
(b) Each curbside program that receives refund values and
administrative fees from certified processors, or that receives
refund values from certified recycling centers, shall register with
the department for an identification number. No curbside program may
receive refund values or administrative fees without a valid
identification number.
(c) The director shall adopt, by regulation, a procedure for the
registration of curbside programs. This procedure shall include
standards and requirements for registration. These regulations shall
require that all information be submitted to the department under
penalty of perjury. A curbside program shall meet all of the
standards and requirements contained in the regulations for
registration.
(d) The department shall require that the identification numbers
received pursuant to this section be used on shipping reports for
material collected by curbside programs pursuant to Sections 14538
and 14539 and on all other reports or documentation required by the
department to administer this division.
(e) An operator of a curbside program registered pursuant to this
section shall be deemed a certificate holder for purposes of this
division.
14552. (a) The department shall establish and implement an auditing
system to ensure that the information collected, and refund values
and redemption payments paid pursuant to this division, comply with
the purposes of this division. Notwithstanding Sections 14573 and
14573.5, the auditing system adopted by the department may include
prepayment or postpayment controls.
(b) (1) The department may audit or investigate any action taken
during the following periods and may determine if there was
compliance with this division and the regulations adopted pursuant to
this division, during any, or all, of that period:
(A) On and before December 31, 2001, the department may audit or
investigate any action taken up to two years before the onset of the
audit or investigations.
(B) On and after January 1, 2002, the department may audit or
investigate any action taken up to three years before the onset of
the audit or investigation.
(2) Notwithstanding any other provision of law establishing a
shorter statute of limitation, the department may take an enforcement
action, including, but not limited to, an action for restitution or
to impose penalties, at any time within two years after the
department discovers, or with reasonable diligence, should have
discovered, a violation of this division or the regulations adopted
pursuant to this division.
(c) During the conduct of any inspection, including, but not
limited to, an inspection conducted as part of an audit or
investigation, the entity that is the subject of the inspection
shall, during its normal business hours, provide the department with
immediate access to its facilities, operations, and any relevant
record, that, in the department's judgment, the department determines
are necessary to carry out this section to verify compliance with
this division and the regulations adopted pursuant to this division.
(1) The department may take disciplinary action pursuant to
Section 14591.2 against any person who fails to provide the
department with access pursuant to this subdivision including, but
not limited to, imposing penalties and the immediate suspension or
termination of any certificate or registration held by the operator.
(2) The department shall protect any information obtained pursuant
to this section in accordance with Section 14554, except that this
section does not prohibit the department from releasing any
information that the department determines to be necessary in the
course of an enforcement action.
(d) The auditing system adopted by the department shall allow for
reasonable shrinkage in material due to moisture, dirt, and foreign
material. The department, after an audit by a qualified auditing
firm and a hearing, shall adopt a standard to be used to account for
shrinkage and shall incorporate this standard in the audit process.
(e) If the department prevails against any entity in any civil or
administrative action brought pursuant to this division, and money is
owed to the department as a result of the action, the department may
offset the amount against amounts claimed by the entity to be due to
it from the department. The department may take this offset by
withholding payments from the entity or by authorizing all processors
to withhold payment to a certified recycling center.
(f) If the department determines, pursuant to an audit or
investigation, that a distributor or beverage manufacturer has
overpaid the redemption payment or processing fee, the department may
do either of the following:
(1) Offset the overpayment against future payments.
(2) Refund the payment pursuant to Article 3 (commencing with
Section 13140) of Chapter 2 of Part 3 of Division 3 of Title 2 of the
Government Code.
14552.5. (a) The department shall supply all certified processors
with a standardized rejection form that shall include, but not be
limited to, the names of the parties rejecting the postfilled
beverage container material, the date of the rejections, the reasons
for the rejections, the amount of rejected material, and a detailed
accounting of the steps taken by the processor and container
manufacturer to avert landfilling or disposal of the material, as
required by subdivision (c) of Section 14552.51.
(b) Every container manufacturer shall fill out the standardized
rejection form specified in subdivision (a) whenever that container
manufacturer rejects a load of redeemed beverage container materials
physically delivered to the manufacturer's place of business and
offered for sale by a certified processor. The rejection form shall
be filled out by the container manufacturer at the time of the
rejection and immediately given to the certified processor for
submittal to the department. Any container manufacturer who refuses
to fill out the standardized rejection form required by this
subdivision is in violation of this division and is subject to the
fines and penalties in Sections 14591 and 14591.1.
(c) If a processor has made a good faith effort, as determined by
the department, to locate a willing purchaser and is unsuccessful,
the processor may fill out the standardized rejection form specified
in subdivision (a) and submit it to the department. The processor
rejection form shall include, but is not limited to, the name of the
processor, the container manufacturers and other potential purchasers
contacted, a detailed accounting of the methods used to contact the
potential buyers, the date of the rejections, the reasons given for
the rejections, the amount of postfilled beverage container material
rejected, and any other steps taken to avert landfilling or disposal
of the material.
(d) If a container manufacturer rejects a load of postfilled
containers by telephone, written correspondence of any kind, or other
similar method, the container manufacturer shall, in a manner
prescribed by the department, keep accurate logbooks of the offer of
loads by the certified processor, and make that logbook available for
inspection by the department upon demand. The logbook shall
contain, but is not limited to, the same information required in the
rejection form pursuant to subdivision (a).
(e) The standardized rejection form specified in subdivision (a)
shall be submitted to the department by the certified processor with
the written request to dispose of the redeemed material submitted
pursuant to Section 14552.51. This material shall not be disposed of
without a written authorization to do so by the department pursuant
to Section 14552.51.
(f) Nothing in this section shall be interpreted to lessen
certified processors' and container manufacturers' responsibilities
relating to beverage container recycling, or diminish in any way the
department's authority to carry out the intent and goals of this
division.
14552.51. (a) A certified processor seeking to dispose of rejected
postfilled containers may not dispose of rejected postfilled
containers unless the certified processor first submits to the
department, in writing, a request to dispose of the rejected
material. No certified processor shall dispose of the rejected
material prior to obtaining written permission from the department.
If the department fails to respond to a written request to dispose of
rejected postfilled beverage container materials within 10 days of
receipt of the request, the processor's request for disposal is
deemed approved by the department.
(b) All rejected loads of postfilled containers shall be available
and subject to inspection by the department.
(c) All possible steps to avert the disposal of the loads of
postfilled containers, as determined by the department, shall be
taken by all container manufacturers and processors. All
transactions or attempted transactions involving rejecting postfilled
containers shall be thoroughly documented on the standardized
rejection form pursuant to Section 14552.5. The container
manufacturer and the certified processor are jointly and severally
responsible for this effort.
14553. (a) 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.
(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.
14554. The department shall establish procedures to protect any
privileged, confidential, commercial, or financial information
obtained while collecting information for carrying out the
requirements of this division. Any privileged, confidential,
commercial, or financial information obtained in confidence by the
department is not a public record for purposes of Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1 of the
Government Code.
14555. (a) On or before January 1, 2004, the department shall
submit to the Legislature a report regarding beverage container
recycling in California's public elementary, middle, and high
schools.
(b) The report shall include, but not be limited to, all of the
following:
(1) A description of department public outreach efforts in
schools.
(2) A description of local conservation corps recycling activities
in the schools.
(3) A description of school-based recycling programs sponsored by
certified recycling operations.
(4) A description of any additional school-based beverage
container recycling efforts.
(c) The report may include recommendations of additional policies
or programs that may increase beverage container recycling in
schools.
(d) The department shall complete the report using existing
resources.
14560. (a) (1) Except as provided in paragraph (3), a beverage distributor shall pay the department, for deposit into the fund, a redemption payment of four cents ($0.04) for a beverage container 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) On and after July 1, 2007, 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), 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, to December 31, 2006, or for any calendar year thereafter. (b) Except as provided in subdivision (c), 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. (c) Notwithstanding subdivision (b), the department may, on and after January 1, 2007, but not after July 1, 2007, increase the amount of the refund value specified in subdivision (b), by no more than one cent ($0.01), if the container has a capacity of less than 24 fluid ounces, and by two cents ($0.02) if the container has a capacity of 24 fluid ounces or more, if the department determines, as specified in subdivision (f) of Section 14581, there are sufficient moneys remaining in the fund to make these increased payments. (d) (1) The department shall periodically review the fund to ensure that there are adequate funds in the fund to pay refund values and other disbursements required by this division. (2) If the department determines, pursuant to a review made pursuant to paragraph (1), that there may be inadequate funds to pay the refund values and necessary disbursements required by this division, the department shall immediately notify the Legislature of the need for urgent legislative action. (3) On or before 180 days after the notice is sent pursuant to paragraph (2), the department may reduce or eliminate expenditures, or both, from the fund as necessary, according to the procedure set forth in Section 14581, to ensure that there are adequate funds in the fund to pay the refund values and other disbursements required by this division. (e) This section does not apply to a refillable beverage container. (f) The repeal and reenactment of this section by Chapter 815 of the Statutes of 1999 do not affect any obligations or penalties imposed by this section, as it read on January 1, 1999. 14560.5. (a) (1) The invoice or other form of accounting of the transaction submitted by a beverage distributor of soft drinks or mineral water 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 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. (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. 14561. (a) A beverage manufacturer shall clearly indicate on all beverage containers sold or offered for sale by that beverage manufacturer in this state the message "CA Redemption Value," "California Redemption Value," "CA Cash Refund," "California Cash Refund," or "CA CRV," by either printing or embossing the beverage container or by securely affixing a clear and prominent stamp, label, or other device to the beverage container. (b) Any refillable beverage container sold or offered for sale is exempt from this section. However, any beverage manufacturer or container manufacturer may place upon, or affix to, a refillable beverage container, any message that the manufacturer determines to be appropriate relating to the refund value of the beverage container. (c) No person shall offer to sell, or sell to a consumer a beverage container subject to subdivision (a) that has not been labeled pursuant to this section, except for a refillable beverage container that is exempt from labeling pursuant to subdivision (b). (d) The department may require that a beverage container intended for sale in this state be printed, embossed, stamped, labeled, or otherwise marked with a universal product code or similar machine-readable indicia. (e) A beverage container labeled with the message specified in subdivision (a) shall have the minimum redemption payment established pursuant to Section 14560, which shall be paid by the distributor to the department pursuant to Section 14574. (f) Until July 1, 2004, a beverage manufacturer may continue to sell or offer for sale beverage containers bearing any redemption value message permitted by this division as of January 1, 2003. 14562. The Legislature hereby finds and declares that the minimum redemption payment established by this article is a regulatory fee collected for the purpose of assuring the return for recycling of a greater percentage of the beverage containers sold in this state, and is beneficial to the beverage industry by assuring the more reliable availability of raw materials. Accordingly, the payments of redemption payments to the department for deposit in the California Beverage Container Recycling Fund are not the "proceeds of taxes," as that term is used in subdivision (c) of Section 8 of Article XIII B of the California Constitution, and the disbursement or encumbrance of money in the fund is not subject to the limitations imposed by that article.
14570. Every dealer shall post a clear and conspicuous sign of at
least 10 inches by 15 inches at each public entrance to the dealer's
place of business, which specifies one of the following:
(a) The name and address, as provided by the department, of at
least the certified recycling center, location, or locations, nearest
to the dealer, which redeems all types of empty beverage containers
at one location during at least 30 hours per week with a minimum of
five hours of operation occurring during periods other than from
Monday to Friday, from 9 a.m. to 5 p.m., and the toll-free telephone
number established by the department for the purpose of disseminating
information regarding beverage container recycling opportunities.
(b) One of the following procedures for redeeming beverage
containers is available, pursuant to Section 14571.6:
(1) Beverage containers may be redeemed at all open cash registers
within this place of business.
(2) Beverage containers may be redeemed at one specific location
on the dealer's premises which is identified on the sign.
14571. (a) Except as otherwise provided in this chapter, there
shall be at least one certified recycling center or location within
every convenience zone which accepts and pays the refund value, if
any, at one location for all types of empty beverage containers and
is open for business during at least 30 hours per week with a minimum
of five hours of operation occurring during periods other than from
Monday to Friday, from 9 a.m. to 5 p.m.
(b) (1) Notwithstanding subdivision (a), the department may
require a certified recycling center to operate 15 of its 30 hours of
operation other than during 9 a.m. to 5 p.m.
(2) Notwithstanding subdivision (a) and paragraph (1), the
department may certify a recycling center that will operate less than
30 hours per week, if all of the following conditions are met:
(A) The recycling center is in a rural region. For purposes of
this subparagraph, "rural region" means a nonurban area identified by
the department on an annual basis using Farmers Home Loan
Administration criteria. Those criteria include, but are not limited
to, places, open country, cities, towns, or census designated places
with populations that are less than 10,000 persons. The department
may designate an area with a population of between 10,000 and 50,000
persons as a rural region, unless the area is identified as part of,
or associated with, an urban area, as determined by the department on
an individual basis.
(B) The recycling center agrees to post a sign indicating the
location of the nearest recycling center which is open at least 30
hours per week and which will accept all material types.
(C) The needs of the community and the goals of this division will
be best served by certification of the operation as a recycling
center.
(c) Before establishing operating hours for a certified recycling
center pursuant to subdivision (b), the department shall make a
determination that this action is necessary to further the goals of
this division and that the proposed operating hours 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.
(d) For purposes of this section, if the recycling center is
staffed and is not a reverse vending machine, a center is "open for
business" if all of the following requirements are met:
(1) An employee of the certified recycling center or location is
present during the hours of operation and available to the public to
accept containers and to pay the refund values.
(2) In addition to the sign specified in subdivision (h), a sign
having a minimum size of two feet by two feet is posted at the
certified recycling center or location indicating that the center or
location is open. Where allowed by local zoning requirements or
where zoning restrictions apply, the sign shall be of the maximum
allowable size.
(3) The prices paid, by weight or per container, are posted at the
location.
(e) Except as provided in subdivision (f), for the purpose of this
section, if the recycling center consists of reverse vending
machines or other unmanned automated equipment, the center is "open
for business" if the equipment is properly functioning, accepting all
types of empty beverage containers at the recycling location, and
paying posted refund values no less than the minimums required by
this division.
(f) If a recycling center consists of reverse vending machines or
other automated equipment, the recycling center is "open for business"
if the equipment is properly functioning, and accepting all types of
empty beverage containers at one physical recycling location within
the recycling location.
(g) Whenever a recycling center which is a reverse vending machine
is not "open for business" during the 30 hours of operation required
and posted pursuant to this section and Section 14570, the dealer
which is hosting the reverse vending machine at its place of business
shall redeem all empty beverage container types at all open cash
registers or one designated location in the store, as specified on
the sign required pursuant to subdivision (h).
(h) In addition to the sign specified in paragraph (2) of
subdivision (d), each reverse vending machine shall be posted with a
clear and conspicuous sign on or near the reverse vending machine
which states that beverage containers may be redeemed by the host
dealer if the machine is nonoperational at any time during the
required 30 hours of operation, pursuant to subdivision (g). The
department shall determine the size and location of the sign and the
message required to be printed on the sign.
14571.1. On or before February 1, 1990, and on or before January 1,
annually thereafter, the department shall, on a statewide basis,
designate all convenience zones as of that date, including
convenience zones in underserved areas, and shall prepare a map or
maps showing these convenience zones.
14571.2. 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.
14571.3. (a) The department shall continuously assist any certified
recycler to achieve greater service to the public in an economical
and cost-effective manner. This assistance shall include, but not be
limited to, advice on all of the following:
(1) Methods to enhance public participation in recycling.
(2) The most beneficial location, siting, and image of a recycling
location.
(3) Methods to reduce costs and optimize efficiencies of existing
resources.
(b) The department shall conduct regular, unannounced inspections
of certified recycling centers for the purpose of determining that
the requirements of this division are satisfied. The department
shall assess civil penalties pursuant to Section 14591.1 for
violations at certified recycling centers.
14571.4. (a) (1) The department shall certify one operator to
establish the Pacific Beach Mobile Recycling Program that
incorporates all convenience zones in the Pacific Beach area of San
Diego County.
(2) For the purposes of this section, "the Pacific Beach area of
San Diego County" means the area designated in the Pacific Beach
Community Plan.
(b) Notwithstanding Sections 14570 and 14571, all convenience
zones within the Pacific Beach area of San Diego County shall be
considered served if both of the following conditions are met:
(1) The recycling center operator meets all of the following
conditions:
(A) The center is open for business at least once each week at a
number of locations equal to the number of convenience zones in the
Pacific Beach area of San Diego County as determined by the
department annually, three of which are within existing convenience
zones in the Pacific Beach area of San Diego County.
(B) The center is open for business at least eight hours per day
at each location.
(C) The center agrees to accept, and pay the refund value for, all
eligible beverage container types.
(D) The center is certified by the department for operation in the
number of locations equal to the number of convenience zones in the
Pacific Beach area of San Diego County, as determined by the
department.
(2) All dealers within the Pacific Beach area of San Diego County
post a clear and conspicuous sign of at least 10 inches by 15 inches
at each public entrance to the dealer's place of business, indicating
the location, hours, and day of operation for each recycling
location within the Pacific Beach area.
(c) A recycling center operator approved by the department, that
meets the conditions prescribed in paragraphs (1) and (2) of
subdivision (b), shall be designated a certified recycling center and
shall be eligible to apply for handling fees pursuant to Section
14585 and to receive from processors the amounts specified in
subdivision (a) of Section 14573.5 for refund values, administrative
costs, and processing payments.
(d) If the department determines that it is necessary to adopt or
revise regulations to implement this section, the regulations shall
be adopted or revised as emergency regulations. The Office of
Administrative Law shall consider these emergency regulations to be
necessary for the immediate preservation of the public peace, health,
and safety, and the general welfare for the purposes of Section
11349.6 of the Government Code. Notwithstanding the 120-day period
provided for in subdivision (e) of Section 11346.1 of the Government
Code, the emergency regulations shall be repealed 180 days from the
effective date of the regulations.
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 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) 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.
(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.
14571.6. In any convenience zone where no recycling location has
been established which satisfies the requirements of Section 14571,
and in any convenience zone which has exceeded the 60-day period for
the establishment of a recycling center pursuant to Section 14571.7,
all dealers within that zone shall, until a recycling location has
been established in that zone, do one of the following:
(a) Submit to the department an affidavit form provided by the
department stating that all of the following standards are being met
by the dealer:
(1) The dealer redeems all empty beverage container types at all
open cash registers or one designated location on the dealer's
premises, during all hours that the dealer is open for business.
(2) The dealer has posted signs which meet the size and location
requirements specified in subdivision (b) of Section 14570, and which
conform to paragraph (2) of that subdivision.
(3) The dealer is delivering, or having delivered, all empty
beverage containers received from the public to a certified recycling
center or processor for recycling.
(b) Pay to the department for deposit in the fund the sum of one
hundred dollars ($100) per day until a recycling location is
established or until the standards for redemption specified in
subdivision (a) are met.
14571.7. (a) Except as provided in subdivision (b), in any
convenience zone where a recycling location or locations were
initially established, but where the location or locations cease to
operate in accordance with Section 14571, on or before August 1,
1990, and in any convenience zone designated after January 1, 1990,
the department shall notify all dealers within that convenience zone
that a recycling location is required to be established within 60
days. If, within 30 days of the notification, no recycling location
has been established which satisfies the requirements of Section
14571, the department shall notify all dealers within that zone, and
one or more dealers within that zone shall establish, or cause to be
established, a recycling location.
(b) In any convenience zone where a recycling location or
locations were initially established, but where the location or
locations cease to operate in accordance with Section 14571, on or
after August 1, 1990, or the convenience zone is to be established
after October 1, 1990, the department shall determine, pursuant to
Section 14571.8, if the convenience zone is eligible for an
exemption. If the convenience zone meets all of the requirements for
an exemption pursuant to Section 14571.8, the department shall grant
one exemption. If the department determines that a convenience zone
is not eligible for an exemption pursuant to subdivision (a) and
Section 14571.8, the department shall notify all dealers within that
convenience zone that a recycling location is required to be
established within 60 days. If, within 30 days of the notification,
no recycling location has been established which satisfies the
requirements of Section 14571, the department shall notify all
dealers within that zone, and one or more dealers within that zone
shall establish, or cause to be established, a recycling location.
14571.8. (a) 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.
(b) 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.
14572. (a) Except as provided in subdivision (b), a certified
recycling center shall accept from any consumer or dropoff or
collection program any empty beverage container, and shall pay to the
consumer or dropoff or collection program the refund value of the
beverage container. The center may pay the refund value based on the
weight of returned containers.
(b) Any recycling center or processor which was in existence on
January 1, 1986, and which refused, as of January 1, 1986, to accept
at a particular location a certain type of empty beverage container
may continue to refuse to accept at the location the type or types of
empty beverage containers that the recycling center or processor
refused to accept as of January 1, 1986. Any certified recycling
center which refuses, pursuant to this subdivision, to accept a
certain type or types of empty beverage containers is not eligible to
receive handling fees unless the center agrees to accept all types
of empty beverage containers and is a supermarket site. This
subdivision does not preclude the certified recycling center from
receiving a handling fee for beverage containers redeemed at
supermarket sites which do accept all types of containers.
(c) The department shall develop procedures by which recycling
centers and processors which meet the criteria of subdivision (b) may
recertify to change the material types accepted.
(d) (1) Only a certified recycling center may pay the refund value
to consumers or dropoff or collection programs. No person shall pay
a noncertified recycler for empty beverage containers an amount
which exceeds the current scrap value for each container type, which
shall be determined in the following manner:
(A) For a plastic or glass beverage container, the current scrap
value shall be determined by the department.
(B) For an aluminum beverage container, the current scrap value
shall be not greater than the amount paid to the processor for that
aluminum beverage container, on the date the container was purchased,
by the location of end use, as defined in the regulations of the
department.
(2) No person may receive or retain, for empty beverage containers
which come from out of state, any refund values, processing
payments, or administrative fees for which a claim is made to the
department against the fund.
(3) Paragraph (1) does not affect curbside programs under contract
with cities or counties.
14572.5. A certified recycling center, other than a reverse vending
machine, shall accept from any consumer or any dropoff or collection
program and pay the applicable deposit for any refillable empty beer
and other malt beverage container. The certified recycling center
shall return, or cause to be returned, the refillable beer and other
malt beverage container to the beer and other malt beverage
distributor or any willing purchaser, who shall then pay the deposit
to the center. The beer and other malt beverage distributor or other
purchaser shall also negotiate a handling fee with the recycling
center for the return of these containers.
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
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.
14573.5. (a) Except as provided in Section 14573.6, a processor
shall pay to a certified recycling center, dropoff or collection
program, or curbside program, for all types of empty beverage
containers, by type of beverage container, received by the processor
from a recycling center, curbside program, or dropoff or collection
program, upon receipt by the certified processor of a shipping report
from the supplier of the material, in the form adopted by the
regulations adopted by the department, the sum of all of the
following amounts:
(1) The refund value.
(2) Three-fourths of 1 percent of the refund value for
administrative costs.
(3) The processing payment established pursuant to Section 14575.
(b) The processor shall make the payment required in subdivision
(a) within two working days of the date that the processor receives
these empty beverage containers, or within the time which the
department determines to be necessary and adequate. Under the
procedures authorized by the department, the department may authorize
a certified recycling center to cancel containers, and a certified
processor may authorize a certified recycling center to cancel
containers on behalf of the certified processor.
(c) If the department has set up an accounts receivable procedure
or other procedure for seeking the payment of money improperly
obtained by a certified recycling center from the fund, the
department may reimburse the processor for its payments to that
certified recycling center.
14573.51. (a) Notwithstanding any other provision of this division,
recycling centers and processors shall not pay curbside programs
more than the applicable statewide average curbside commingled rate
unless the curbside program has received an individual commingled
rate from the department pursuant to subdivision (b).
(b) The department may establish a procedure whereby the operators
of curbside programs may apply for an individual commingled rate for
any material or types with or without a statewide commingled rate,
including, but not limited to, glass, aluminum, bimetal, or any of
the individual plastic resin types or combination of resin types
identified by resin identification codes under Section 18015. These
procedures shall require, at a minimum, all of the following:
(1) The individual rate shall be valid for no more than one year
from the date the individual rate is authorized.
(2) The methodology used by the operator of the curbside program
to determine the commingled rate shall be approved by the department,
in advance.
(c) Curbside programs that have acquired an individual commingled
rate, pursuant to this section, shall not be surveyed by the
department to determine the statewide average curbside commingled
rate during the period the individual commingled rate is effective.
(d) The department may enter into a contract for the services
required to implement the amendments to this section made by the act
of the first half of the 2003-04 Regular Session of the Legislature
amending this section. 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) of Section 14575 for
these containers, the department may determine not to calculate a
commingled rate pursuant to subdivision (b).
14573.6. No dropoff or collection program shall pay any refund
value to the consumer, and a dropoff or collection program is not
eligible to receive any sum paid pursuant to Section 14573 or 14573.5
for administrative costs.
14573.7. Notwithstanding Sections 14573 and 14573.5, the department
may require a recycling center, pursuant to a prepayment review
taken pursuant to subdivision (a) of Section 14552, to submit
consumer transaction logs and consumer transaction receipts as
support documentation for shipping reports submitted to processors.
The department may, pursuant to this section, authorize a processor
to withhold refund value payments to a recycling center. The
department may suspend the certification of a recycling center
without a hearing if the recycling center fails to comply with the
documental submittal requirements of this section, upon providing
notice of these requirements. The recycling center which is the
subject of the suspension may then request a hearing on the
suspension, but the request for a hearing shall not stay the
suspension. A hearing requested pursuant to this section shall be
conducted in accordance with Chapter 5 (commencing with Section
11500) of Part 1 of Division 3 of Title 2 of the Government Code.
14574. (a) (1) A distributor of beverage containers shall pay to
the department 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 third 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 meets either of the following
requirements:
(A) If the redemption payment and refund value is not increased
pursuant to paragraph (3) of subdivision (a) of Section 14560, the
distributor's projected redemption payment for a calendar year totals
less than fifty thousand dollars ($50,000).
(B) If the redemption payment and refund value is increased
pursuant to paragraph (3) of subdivision (a) of Section 14560, 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.
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 paragraphs (2) and (3) 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) The department shall use the average scrap values paid to
recyclers between October 1, 2001, and September 30, 2002, for the
2003 calculation and the same 12-month period directly preceding the
year in which the processing fee is calculated for any subsequent
calculation.
(2) To calculate the 2003 processing payments, the department
shall use the recycling costs for certified recycling centers used to
calculate the January 1, 2002, processing payments.
(3) 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.
(d) Notwithstanding paragraph (1) of subdivision (b) and
subdivision (c), for the purpose of setting the cost for recycling
non polyethylene terephthalate (non-PET) plastic containers by
certified recycling centers to determine the processing payment for
those containers, the department shall use a recycling cost of six
hundred forty-two dollars and sixty-nine cents ($642.69) per ton for
the January 1, 2002, calculation of the processing payment.
(e) Except as specified in subdivision (f), the actual processing
fee paid by a beverage manufacturer shall equal 65 percent of the
processing payment calculated pursuant to subdivision (b).
(f) 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) The processing fee in effect on January 1, 2004, shall be
equal to the following amounts:
(A) For a container type that was subject to this division on
January 1, 1999, 12 percent of the processing payment if the
recycling rate of that container type was equal to, or greater than,
60 percent for the 1999 calendar year.
(B) For a container type that was not subject to this division on
January 1, 1999, 12 percent of the processing payment, if the
recycling rate of that container type was equal to, or greater than,
60 percent for the 2001 calendar year.
(C) For a container type that was not subject to this division on
January 1, 1999, 15 percent of the processing payment if the
recycling rate for that container type was equal to, or greater than,
45 percent, but less than 60 percent for the 2001 calendar year.
(D) For a container type that was not subject to this division on
January 1, 1999, 20 percent of the processing payment if the
recycling rate for that container type was equal to, or greater than,
30 percent, but less than 45 percent, for the 2001 calendar year.
(2) 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.
(3) Notwithstanding this section, for calendar year 2007 only, the
department shall reduce to zero the processing fee paid for any
container type with a recycling rate equal to, or greater than 40
percent.
(4) The department shall calculate the recycling rate for purposes
of paragraphs (2) and (3) based on the 12-month period ending on
June 30 that directly precedes the date of the January 1 processing
fee determination.
(g) 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.
(h) (1) Except as provided in paragraphs (2) and (3), 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) 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).
(i) When assessing processing fees pursuant to subdivision (a),
the department shall assess the processing fee on each container
sold, as provided in subdivisions (e) and (f), 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.
(j) The 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.
(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 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 to 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
(f).
(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.
14575.1. (a) Notwithstanding subdivision (b) of Section 14575, if a
willing purchaser offers to purchase empty PET containers at a
voluntary artificial scrap value that is equal to the processing fee
reduced pursuant to subdivision (f) of Section 14575 when applied to
all containers sold, no processing fee shall be imposed on PET
containers pursuant to Section 14575.
(b) If a willing purchaser offers to pay a voluntary artificial
scrap value, the department shall, on a monthly basis, determine
whether the sum of the voluntary artificial scrap value and payments
made from the PET Processing Fee Account pursuant to subdivision (f)
of Section 14575, are equal to, or more than, the recycling cost for
empty PET containers determined pursuant to subdivision (d) of
Section 14575.
(c) If the department determines that, for any monthly period, the
sum of the voluntary artificial scrap value and payments made from
the PET Processing Fee Account pursuant to subdivision (f) of Section
14575, is less than the recycling cost for empty PET containers,
determined pursuant to Section 14575, the following requirements
shall apply:
(1) The department shall immediately provide written notification
of the deficiency for that monthly period and the amount of that
deficiency to any willing purchaser.
(2) A willing purchaser shall correct the deficiency in the next
monthly period by adjusting the voluntary artificial scrap value by
an amount sufficient to equal the recycling cost for empty PET
containers plus the previous monthly period's deficiency.
(3) If the deficiency and amount in arrears is not corrected
within 30 days of providing written notice to willing purchasers of
empty PET containers, the department shall impose a processing fee
pursuant to Section 14575 which includes any amount necessary,
including any amount in arrears, to cover the cost of recycling empty
PET containers.
(d) If the department determines that, for any monthly period,
the sum of the voluntary artificial scrap value and payments made
from the PET Processing Fee Account pursuant to subdivision (f) of
Section 14575, is greater than the recycling cost for empty PET
containers, the department shall do both of the following:
(1) Immediately provide written notification of the deviation for
that monthly period and the amount of that deviation to any willing
purchaser.
(2) Provide a credit equal to the amount of the deviation for any
future monthly period wherein the voluntary artificial scrap value,
and payments made from the PET Processing Fee Account, are less than
the recycling cost of empty PET containers determined pursuant to
subdivision (d) of Section 14575.
(e) Nothing in this section is intended to affect any litigation
that was pending on January 1, 1996, in which the department is a
party of record.
14575.2. (a) In order to ensure that only those funds necessary to
cover the net cost of recycling each beverage container sold are paid
by beverage manufacturers, the department shall establish a
processing fee rebate for all beverage containers for which a
processing fee was paid on containers sold between January 1, 2002,
and December 31, 2003. The amount of the rebate for each container
shall be equal to the difference between the processing fee
established and paid pursuant to Section 14575 as it read on January
1, 2003, and the processing fee established pursuant to paragraph (1)
of subdivision (f) of Section 14575 as it reads on the effective
date of the act adding this section.
(b) Consistent with Section 14581, and subject to the availability
of funds, the department shall pay a processing fee rebate to
beverage manufacturers on all beverage containers sold between
January 1, 2002, and December 31, 2003, for which the beverage
manufacturer paid a processing fee as determined by the department.
(c) The department shall pay the processing fee rebate in a form
and manner as it determines.
(d) The department may not pay the processing fee rebate before
July 1, 2004, or after June 30, 2006.
(e) The department may deduct from the processing fee rebate any
amount owed to the department by the beverage manufacturer.
(f) It is the intent of the Legislature that the department
undertake those actions that are in compliance with this chapter and
that reduce processing fees paid by beverage manufacturers consistent
with this section prior to the effective date of the act adding this
subdivision.
14575.5. (a) The department shall establish a supplemental
processing payment to be paid to a processor. The processor shall
pay the entire supplemental processing payment to a recycler that
receives processing payments pursuant to Section 14575. The
department shall determine the supplemental processing payment based
on the volume of redeemed containers that the recycler reports for
each whole month pursuant to subdivision (b), commencing on July 1,
2004, and continuing for a period of 12 consecutive months.
(1) Consistent with Section 14581 and subject to the availability
of funds, the department shall establish a supplemental processing
payment for glass, PET plastic containers, and HDPE plastic
containers as follows:
(A) Forty dollars and eighty-six cents ($40.86) for each ton of
glass beverage containers.
(B) One hundred eighty-two dollars and fifty-four cents ($182.54)
for each ton of PET plastic beverage containers.
(C) Two hundred twenty-eight dollars and seventy-five cents
($228.75) for each ton of HDPE plastic beverage containers.
(2) The department may not make a supplemental processing payment
to a recycler for any volume reported for a whole month that is not
within the 12-month consecutive time period established in
subdivision (a).
(b) A recycler shall report to a processor the volume of redeemed
containers subject to the supplemental processing payments
established pursuant to paragraph (1) of subdivision (a) no later
than the 10th day following the end of the 12-month period
established in subdivision (a).
(c) The department shall pay the supplemental processing payments
on eligible redeemed containers to processors, in the same manner as
it pays refund values pursuant to Sections 14573 and 14573.5, except
that paragraph (2) of subdivision (a) of Section 14573.5 is not
applicable. The processor shall pay a recycler the entire
supplemental processing payment as specified in subdivision (a).
14580. (a) Except as provided in subdivision (d), the department shall deposit all amounts paid as redemption payments by distributors pursuant to Section 14574 and all other revenues received into the California Beverage Container Recycling Fund, which is hereby created in the State Treasury. Notwithstanding Section 13340 of the Government Code, the money in the 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 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 to processors pursuant to Section 14573 during the preceding calendar year, plus any interest earned on that amount. (b) Except as provided in Section 14580.5, the money in the fund may be expended by the department for the administration of this division only upon appropriation by the Legislature in the annual Budget Act. (c) After setting aside funds estimated to be needed for expenditures authorized pursuant to this section, the department shall set aside funds on a quarterly basis for the purposes specified in Section 14581. Notwithstanding Section 13340 of the Government Code, that money is hereby continuously appropriated to the department, without regard to fiscal year, for the purposes specified in Section 14581. (d) The department shall deposit all civil penalties or fines collected pursuant to this division into the Penalty Account, which is hereby created in the fund. The money in the Penalty Account may be expended by the department only upon appropriation by the Legislature, for purposes of this division. 14580.5. (a) Notwithstanding any appropriation made in the annual Budget Act, the department may only expend an amount for the administration of this division which is five percent less than the amount appropriated for the administration of this division for the 1995-96 fiscal year. (b) It is the intent of the Legislature that for each fiscal year, through the 1998-99 fiscal year, the amount appropriated in the annual Budget Act for the administration of this division shall be reduced by six and two-thirds percent of the amount appropriated in the prior fiscal year. (c) It is the further intent of the Legislature that revenues that otherwise would have been spent by the department for administration of this division shall be expended for the purposes set forth in Section 14581. 14581. (a) Subject to the availability of funds, and pursuant to 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: (1) (A) On and after July 1, 2005, to June 30, 2006, inclusive, up to thirty-one million dollars ($31,000,000) may be expended for that fiscal year for the payment of handling fees pursuant to Section 14585. (B) On and after July 1, 2006, to June 30, 2007, inclusive, up to thirty-three million dollars ($33,000,000) may be expended for that fiscal year for the payment of handling fees pursuant to Section 14585. (C) On and after July 1, 2007, to June 30, 2008, inclusive, up to thirty-five million dollars ($35,000,000) may be expended for that fiscal year for the payment of handling fees pursuant to Section 14585. (D) For each fiscal year commencing July 1, 2008, 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 million dollars ($15,000,000), 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) Any grants provided pursuant to this paragraph shall not comprise more than 75 percent of the annual budget of a community conservation corps. (C) The community conservation corps issued grants pursuant to clause (ii) of subparagraph (A) shall also meet the criteria of Section 14507.6, if Assembly Bill 3038 of the Regular Session of the Legislature is enacted and adds Section 14507.6 to the Public Resources Code. (4) (A) On or after July 1, 2007, until June 30, 2008, for only that fiscal year, up to twenty million dollars ($20,000,000) may be expended in the form of competitive grants issued to community conservation corps that are designated by a city, or county and that meet all of the following criteria: (i) Are certified by the California Conservation Corps as having operated for a minimum of two years. (ii) Meet all other requirements under Section 14507.5. (B) The department shall prepare and adopt criteria and procedures for evaluating grant applications on a competitive basis. Eligible activities for the use of these funds shall include developing new projects, or enhancing or assisting existing projects, to increase beverage container recycling and increasing the quality of recycled material at the following locations: (1) Multi-family dwellings. (2) Schools. (3) Commercial, state, and local government buildings. (4) Bars, restaurants, hotels, and lodging establishments, and entertainment venues. (5) Parks and beaches. (C) Any grants provided pursuant to this paragraph shall not comprise more than 75 percent of the annual budget of a community conservation corps. (D) Any grants provided pursuant to this paragraph shall support one-time capital improvement projects and shall not be used to support ongoing staff activities. (E) Any grant funds appropriated pursuant to this paragraph that have not been awarded to a grantee prior to the end of the 2007-08 fiscal year shall revert to the fund. (5) 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 may 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 of Conservation. The form shall specify the beverage container recycling or litter reduction activities for which the funds will be used. (E) The Department of Conservation 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. (6) 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. (7) (A) The department shall expend the amount necessary to pay the processing payment and supplemental processing payment established pursuant to Sections 14575 and 14575.5 and pay processing fee rebates pursuant to Section 14575.2. 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 all 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 paragraphs (2) and (3) of subdivision (c) of, and subdivision (f) of, Section 14575, to reduce the processing fee to the level provided in subdivision (f) of Section 14575, or to reflect the agreement by a willing purchaser to pay a voluntary artificial scrap value pursuant to Section 14575.1. (iii) Funds equal to an amount sufficient to pay the total amount of the supplemental processing payments established pursuant to Section 14575.5. (B) Notwithstanding Section 13340 of the Government Code, the money in each processing fee account is hereby continuously appropriated to the department for expenditure without regard to fiscal years, for purposes of making processing payments and supplemental processing payments, and reducing processing fees, pursuant to Sections 14575 and 14575.5 and paying processing fee rebates pursuant to Section 14575.2. (8) 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. (9) Until January 1, 2008, the department may expend up to five million dollars ($5,000,000) for the purposes of undertaking a statewide public education and information campaign aimed at promoting increased recycling of beverage containers that meets both of the following requirements: (A) The public education and information campaign is multimedia and includes print, radio, and television. (B) The public education and information campaign is multilingual. (10) (A) Until January 1, 2007, up to three million dollars ($3,000,000) shall be expended annually for the payment of quality glass incentive payments pursuant to Section 14549.1. (B) On and after January 1, 2007, up to fifteen million dollars ($15,000,000) may be expended annually by the department for quality incentive payments for empty beverage containers pursuant to Section 14549.1. (11) Up to twenty million dollars ($20,000,000) may be expended annually by the department, until January 1, 2012, to issue grants for recycling market development and expansion-related activities aimed at increasing the recycling of beverage containers, including, but not limited to, the following: (A) Research and development of collecting, sorting, processing, cleaning, or otherwise upgrading the market value of recycled beverage containers. (B) Identification, development, and expansion of markets for recycled beverage containers. (C) Research and development for products manufactured using recycled beverage containers. (D) Research and development to provide high-quality materials that are substantially free of contamination. (E) Payments to California manufacturers who recycle beverage containers that are marked by resin type identification code "3," "4," "5," "6," or "7," pursuant to Section 18015. (12) Up to ten million dollars ($10,000,000) may be transferred on a one-time basis by the department to the Recycling Infrastructure Loan Guarantee Account, for expenditure pursuant to Section 14582. (13) Up to ten million dollars ($10,000,000) may be expended annually by the department for the payment of recycling incentive payments pursuant to Section 14549.7 until payments for eligible beverage containers redeemed or collected for recycling on or before December 31, 2009, have been paid. (14) Up to five million dollars ($5,000,000) may be expended annually by the department for market development payments for empty plastic beverage containers pursuant to Section 14549.2, until January 1, 2012. (15) Up to five million dollars ($5,000,000) may be expended, by the department, on a one-time basis beginning on January 1, 2007, in coordination with the Department of Parks and Recreation for the purposes of installing source separated beverage container recycling receptacles at each of the state parks, starting with those parks that have the highest day use. (16) Up to five million dollars ($5,000,000) may be expended, from January 1, 2007, to January 1, 2008, to provide grants to local governments or nonprofit agencies to place multifamily housing source separated beverage container recycling receptacles in low-income communities. (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) The department shall review all funds on a quarterly basis to ensure that there are adequate funds to make the payments specified in this section and the processing fee reductions required pursuant to Section 14575. (2) If the department determines, pursuant to a review made pursuant to paragraph (1), that there may be inadequate funds to pay the payments required by this section and the processing fee reductions required pursuant to Section 14575, the department shall immediately notify the appropriate policy and fiscal committees of the Legislature regarding the inadequacy. (3) On or before 180 days after the notice is sent pursuant to paragraph (2), 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) 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) After setting aside money for the expenditures required pursuant to subdivisions (a) and (b) and Section 14580, the department may, on and after January 1, 2007, but not after July 1, 2007, expend remaining moneys in the fund to pay a refund value in an amount greater than the refund value established pursuant to subdivision (b) of Section 14560. 14582. The Recycling Infrastructure Loan Guarantee Account is hereby created as a revolving account in the California Beverage Container Recycling Fund, and the funds in that account are continuously appropriated to the department to issue loan guarantees for capital expenditures for new recycling infrastructure located in the state. The department may issue a loan guarantee from the account only if the department determines that the new recycling infrastructure adds recycling capacity, results in remanufacturing and reuse of beverage containers into new products, and complies with all applicable laws and regulations. 14584. (a) Operators of reverse vending machines or processors may apply to the California Pollution Control Financing Authority for financing pursuant to Section 44526 of the Health and Safety Code, as a means of obtaining capital for establishment of a convenience network. For purposes of Section 44508 of the Health and Safety Code, "project" includes the establishing of a recycling location pursuant to the division. (b) Corporations, companies, or individuals may apply for loan and grant funds from the Energy Technologies Research, Development, and Demonstration Account specified in Section 25683 by applying to the State Energy Resources Conservation and Development Commission for the purpose of demonstrating equipment for enhancing recycling opportunities. 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 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. (2) (A) To be eligible for any handling fee, a supermarket site recycling center, nonprofit convenience zone recycler, or rural region recycler shall redeem not less than 60,000 beverage containers, during the calendar month in which the handling fee is claimed or have redeemed not less than an average of 60,000 beverage containers per month during the previous 12 months. (B) Subparagraph (A) shall not apply on and after July 1, 2008. (3) (A) A beverage container with a capacity of 24 fluid ounces or more shall be considered as two beverage containers for purposes of determining the eligibility percentage, any handling fee calculations, and payments. (B) Subparagraph (A) shall not apply on and after July 1, 2008. (4) 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. (5) (A) From the effective date of the statute enacted by Assembly Bill 3056 of the 2005-06 Regular Session to June 30, 2008, inclusive, the department shall pay a handling fee of 1.8 cents ($0.018) per eligible beverage container, as determined pursuant to paragraph (4). (B) On and after July 1, 2008, the department shall pay a handling fee per eligible container in the amount determined pursuant to subdivision (f). (6) (A) Notwithstanding paragraph (5), the total handling fee payment to a supermarket site, nonprofit convenience zone recycler, or rural region recycler shall not exceed two thousand three hundred dollars ($2,300) per month. (B) Subparagraph (A) shall not apply on and after July 1, 2008. (7) 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. (8) (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) The department may allocate the amount authorized for expenditure for the payment of handling fees pursuant to paragraph (1) of subdivision (a) of Section 14581 on a monthly basis and may carry 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 for any other purpose pursuant to Section 14581. (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) On and after July 1, 2008, 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. 14585.5. (a) The department shall not make handling fee payments to a supermarket site if the department determines that all empty beverage container types are not redeemed at the same physical location within the recycling location. (b) A supermarket site that redeems all empty beverage container types at the same physical location within the recycling location, and issues script to consumers which is required to be redeemed at a nearby host business, is eligible to receive handling fee payments. 14586. This division does not create any guarantee of a continuing level of support, or other obligation on the part of the State of California, the department, or any agency thereof, to pay any specified amount to any local conservation organization, community conservation corps, or statewide nonprofit private agency. 14587. This division does not require or create any obligation that payments made pursuant to this division to any local conservation organization, community conservation corps, or statewide nonprofit private agency in any given fiscal year be made in any subsequent fiscal year at the same or greater level.
14588. It is the intent of the Legislature that handling fees paid to supermarket site recycling centers pursuant to Section 14585 shall only be used to offset the unique costs of providing convenient recycling opportunities to consumers at supermarket sites, and that those fees may not be expended for the purpose of engaging in unfair and predatory competition in order to reduce recycling rates of other recycling centers certified pursuant to this division. 14588.1. (a) As used in this chapter, "unfair and predatory pricing" means the payment to consumers by a supermarket site, that receives handling fees for the redemption of beverage containers, in an amount that exceeds the sum of both of the following: (1) The California refund value for that container. (2) (A) If the supermarket site is not located in a rural region, the average scrap value paid per pound for that container type by specified certified recycling centers located within a five-mile radius of the supermarket site on the date of the alleged occurrence, the day before the alleged occurrence, and the day after the alleged occurrence. (B) If the supermarket site is located in a rural region, the average scrap value paid per pound for that container type by specified certified recycling centers located within a 10-mile radius of the supermarket site on the date of the alleged occurrence, the day before the alleged occurrence, and the day after the alleged occurrence. (b) In calculating the three-day average price paid by recyclers within the specified distance of a recycler alleged to have engaged in predatory pricing, as required by subdivision (a), the department shall only survey those recyclers who did not receive handling fees in three or more of the 12 whole months immediately preceding the date of the allegation of predatory pricing. (c) For purposes of this chapter, "rural region" means a nonurban area identified by the department on an annual basis using Farmers Home Loan Administration criteria. Those criteria include, but are not limited to, places, open country, cities, towns, or census designated places with populations that are less than 10,000 persons. The department may designate an area with population of between 10,000 and 50,000 persons as a rural region, unless the area is identified as part of, or associated with, an urban area, as determined by the department on an individual basis. 14588.2. (a) To ensure that handling fees paid to a supermarket site are not used for the purpose of engaging in unfair and predatory pricing, and to otherwise further the intent of this chapter, the department shall follow all of the requirements of this section upon the complaint of either of the following: (1) Any certified recycler located within five miles of the supermarket site alleged to have engaged in unfair and predatory pricing if not located in a rural region. (2) Any certified recycler located within 10 miles of the supermarket site alleged to have engaged in unfair and predatory pricing if located in a rural region. (b) (1) Within 50 days of receiving the complaint, the department shall complete an audit of the payments for the redemption of beverage containers being paid by the supermarket site, and by all other certified recycling centers as specified in Section 14588.1, for the purpose of determining whether the supermarket site is engaged in unfair and predatory pricing. (2) The department shall withhold from public disclosure any proprietary information collected by the department in the course of the audit mandated by this paragraph. The department shall exercise its discretion in determining what information is proprietary. (c) (1) If the director determines there is probable cause that a supermarket site, against which a complaint has been made, has engaged in unfair and predatory pricing, the director shall, within 60 days of receiving the complaint, convene an informal hearing before the director, or the director's designee. (2) At least 10 days before the hearing, the director shall forward the results of the audit to the complainant and respondent. (3) At the hearing, the director, or the director's designee, shall review the audit conducted pursuant to subdivision (b) and any evidence presented by the complainant that a supermarket site has engaged in unfair and predatory pricing. The director, or the director's designee, shall also review any evidence presented by the respondent that the respondent has not engaged in unfair and predatory pricing. (4) The respondent shall be given the opportunity to rebut the presumption of unfair and predatory pricing imposed by Section 14588.1 by demonstrating to the satisfaction of the director, or the director's designee, that the respondent did both of the following: (A) The respondent made a good faith effort to determine the average scrap value paid per pound for that container type by certified recycling centers located within a five-mile or 10-mile radius of the supermarket site, pursuant to subdivision (a) of Section 14588.1, within 30 days before the date of the alleged violation. (B) The three-day average scrap value the respondent paid per pound for that container type was within 2.5 percent of the three-day average scrap value paid per pound determined by the department pursuant to subdivision (a). (5) The director, or the director's designee, may dismiss a complaint made pursuant to subdivision (a) upon determining either of the following: (A) The complaint is without basis. (B) The complaint is repetitious of prior similar complaints against the same supermarket site for which the director or the director's designee has determined that no unfair and predatory pricing occurred. (d) Within 20 days of the completion of the hearing, the director, or the director's designee, shall determine whether the supermarket site has engaged in unfair and predatory pricing. This determination shall be based upon the audit conducted pursuant to subdivision (b), and upon any clear and convincing evidence of unfair and predatory pricing presented at the hearing. (e) During the time period from the date of the receipt of a complaint pursuant to subdivision (a), until the date the director makes a determination pursuant to subdivision (d), the supermarket site against which the allegation of unfair and predatory pricing is made shall not receive handling fees that were earned during the period commencing with the date of the alleged unfair and predatory pricing. However, nothing in this subdivision shall affect the payment of handling fees to a supermarket site that is found not to have engaged in unfair and predatory pricing pursuant to this section, or to the activities of a supermarket site prior to the date of the alleged unfair and predatory pricing. (f) (1) If, after complying with the procedure established pursuant to this section, the director, or the director's designee, determines that a supermarket site has engaged in unfair and predatory pricing, the site is ineligible to receive handling fees as specified by this section. (A) If the determination of unfair and predatory pricing is the first for the site, the site is ineligible to receive handling fees for six months from the date that the respondent is found to have engaged in unfair and predatory pricing. (B) If the determination of unfair and predatory pricing is the second for the site, the site is ineligible to receive handling fees for one year from the date that the respondent is found to have engaged in unfair and predatory pricing. (C) If the determination of unfair and predatory pricing is the third or more for the site, the site is ineligible to receive handling fees for five years after the date that the respondent is found to have engaged in unfair and predatory pricing. (2) The penalties specified by this section shall be applied retroactively to all determinations of unfair and predatory pricing made by the director, or the director's designee, during the period from January 1, 2000, to January 1, 2002, inclusive. (g) The complainant or respondent may obtain a review of the determination made pursuant to this section by filing in the superior court a petition for a writ of mandate within 30 days following the issuance of the determination. Section 1094.5 of the Code of Civil Procedure shall govern judicial proceedings pursuant to this subdivision, except that the court shall exercise its independent judgment. If a petition for a writ of mandate is not filed within the time limits set forth in this subdivision, the determination made pursuant to this subdivision is not subject to review by any court or agency. (h) If either party appeals the determination of the director, or the director's designee, pursuant to subdivision (g), and the department prevails, the department may recover any costs associated with its defense of the complaint.
14590. If any provision of this division or the application thereof to any person or circumstances is held invalid, that invalidity shall not affect other provisions or applications of the division which can be given effect without the invalid provision or application, and to this end the provisions of this division are severable. 14591. (a) Except as provided in subdivision (b), in addition to any other applicable civil or criminal penalties, any person convicted of a violation of this division is guilty of an infraction, which is punishable by a fine of one hundred dollars ($100) for each initial separate violation and not more than one thousand dollars ($1,000) for each subsequent separate violation per day. (b) (1) Every person who, with intent to defraud, takes any of the following actions is guilty of fraud: (A) Submits a false or fraudulent claim for payment pursuant to Section 14573 or 14573.5. (B) Fails to accurately report the number of beverage containers sold, as required by subdivision (b) of Section 14550. (C) Fails to make payments as required by Section 14574. (D) Redeems out-of-state containers, rejected containers, line breakage, or containers that have already been redeemed. (E) Returns redeemed containers to the marketplace for redemption . (F) Brings out-of-state containers, rejected containers, or line breakage to the marketplace for redemption. (G) Submits a false or fraudulent claim for handling fee payments pursuant to Section 14585. (2) If the money obtained or withheld pursuant to paragraph (1) exceeds four hundred dollars ($400), the fraud is punishable by imprisonment in the county jail for not more than one year or by a fine not exceeding ten thousand dollars ($10,000), or by both, or by imprisonment in the state prison for 16 months, two years, or three years, or by a fine not exceeding twenty-five thousand dollars ($25,000) or twice the late or unmade payments plus interest, whichever is greater, or by both fine and imprisonment. If the money obtained or withheld pursuant to paragraph (1) equals, or is less than, four hundred dollars ($400), the fraud is punishable by imprisonment in the county jail for not more than six months or by a fine not exceeding one thousand dollars ($1,000), or by both. (c) For purposes of this section and Chapter 8.5 (commencing with Section 14595), "line breakage" and "rejected container" have the same meanings as defined in the regulations adopted or amended by the department pursuant to this division. 14591.1. (a) (1) The department may assess a civil penalty upon a person who violates this division in an amount greater than one thousand dollars ($1,000) pursuant to this division and any regulations adopted pursuant to this division only after notice and hearing in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code. (2) The department may assess a civil penalty upon a person who violates this division in an amount equal to, or less than, one thousand dollars ($1,000), using a notice of violation process established by regulation and may use an informal hearing process pursuant to Article 10 (commencing with Section 11445.10) of Chapter 4.5 of Part 1 of Division 3 of Title 2 of the Government Code. (3) Each violation of this division is a separate violation and each day of the violation is a separate violation. The department shall deposit all revenues from civil penalties in the Penalty Account specified in subdivision (d) of Section 14580. (b) Any person who intentionally or negligently violates this division may be assessed a civil penalty by the department pursuant to subdivision (a) of up to five thousand dollars ($5,000) for each separate violation, or for continuing violations, for each day that violation occurs. (c) Any person who violates this division by an action not subject to subdivision (b) may be assessed a civil penalty by the department pursuant to subdivision (a) of up to one thousand dollars ($1,000) for each separate violation, or for continuing violations, for each day that violation occurs. (d) No person may be liable for a civil penalty imposed under subdivision (b) and for a civil penalty imposed under subdivision (c) for the same act or failure to act. (e) In determining the amount of penalties to be imposed pursuant to this division, the department shall take into consideration the nature, circumstances, extent and gravity of the violation, the costs associated with bringing the action and, with respect to the violator, the ability to pay, the degree of culpability, compliance history, and any other matters that justice may require. 14591.2. (a) The department may take disciplinary action against any party responsible for directing, contributing to, participating in, or otherwise influencing the operations of, a certified or registered facility or program. A responsible party includes, but is not limited to, the certificate holder, registrant, officer, director, or managing employee. Except as otherwise provided in this division, the department shall provide a notice and hearing in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code before taking any disciplinary action against a certificate holder. (b) All of the following are grounds for disciplinary action, in the form determined by the department in accordance with subdivision (c): (1) The responsible party engaged in fraud or deceit to obtain a certificate or registration. (2) The responsible party engaged in dishonesty, incompetence, negligence, or fraud in performing the functions and duties of a certificate holder or registrant. (3) The responsible party violated this division or any regulation adopted pursuant to this division, including, but not limited to, any requirements concerning auditing, reporting, standards of operation, or being open for business. (4) The responsible party is convicted of any crime of moral turpitude or fraud, any crime involving dishonesty, or any crime substantially related to the qualifications, functions, or duties of a certificate holder. (c) The department may take disciplinary action pursuant to this section, by taking any one of, or any combination of, the following: (1) Immediate revocation of the certificate or registration, or revocation of a certificate or registration as of a specific date in the future. (2) Immediate suspension of the certificate or registration for a specified period of time, or suspension of the certificate or registration as of a specific date in the future. Notwithstanding subdivision (a), the department may impose a suspension of five days or less through an informal notice, if the action is subject to a stay on appeal, pending an informal hearing convened in accordance with Article 10 (commencing with Section 11445.10) of Chapter 4.5 of Part 1 of Division 3 of Title 2 of the Government Code. (3) Imposition on the certificate or registration of any condition that the department determines would further the goals of this division. (4) Issuance of a probationary certificate or registration with conditions determined by the department. (5) Collection of amounts in restitution of any money improperly paid to the certificate holder or registrant from the fund. (6) Imposition of civil penalties pursuant to Section 14591.1. (d) The department may do any of the following in taking disciplinary action pursuant to this section: (1) If a certificate holder or registrant holds certificates or is registered to operate at more than one site or to operate in more than one capacity at one location, such as an entity certified as both a processor and a recycling center, the department may simultaneously revoke, suspend, or impose conditions upon some, or all of, the certificates held by the responsible party. (2) If the responsible party is an officer, director, partner, manager, employee, or the owner of a controlling ownership interest of another certificate holder or registrant, that other operator's certificate or registration may also be revoked, suspended, or conditioned by the department in the same proceeding, if the other certificate holder or registrant is given notice of that proceeding, or in a subsequent proceeding. (3) (A) If, pursuant to notice and a hearing conducted by the director or the director's designee in accordance with Article 10 (commencing with Section 11445.10) of Chapter 4.5 of Part 1 of Division 3 of Title 2 of the Government Code, the department determines that the continued operation of a certified or registered entity poses an immediate and significant threat to the fund, the department may order the immediate suspension of the certificate holder or registrant, pending revocation of the certificate or registration, or the issuance of a probationary certificate imposing reasonable terms and conditions. The department shall record the testimony at the hearing and, upon request, prepare a transcript. For purposes of this section, an immediate and significant threat to the fund means any of the following: (i) A loss to the fund of at least ten thousand dollars ($10,000) during the six-month period immediately preceding the order of suspension. (ii) Missing or fraudulent records associated with a claim or claims totaling at least ten thousand dollars ($10,000) during the six-month period immediately preceding the order of suspension. (iii) A pattern of deceit, fraud, or intentional misconduct in carrying out the duties and responsibilities of a certificate holder during the six-month period immediately preceding the order of suspension. For purposes of this section, a pattern of deceit, fraud, or intentional misconduct in carrying out the duties of a certificate holder includes, but is not limited to, the destruction or concealment of any records six months immediately preceding the order of suspension. (iv) At least three claims submitted for ineligible material in violation of this division, including, but not limited to, a violation of Section 14595.5, during the six-month period immediately preceding the order of suspension. (B) An order of suspension or probation may be issued to any or all certified or registered facilities or programs operated by a person or entity that the department determines to be culpable or responsible for the loss or conduct identified pursuant to subparagraph (A). (C) The order of suspension or issuance of a probationary certificate imposing terms or conditions shall become effective upon written notice of the order to the certificate holder or registrant. Within 20 days after notice of the order of suspension, the department shall file an accusation seeking revocation of any or all certificates or registrations held by the certificate holder or registrant. The certificate holder or registrant may, upon receiving the notice of the order of suspension or probation, appeal the order by requesting a hearing in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code. A request for a hearing or appeal from an order of the department does not stay the action of the department for which the notice of the order is given. The department may combine hearings to appeal an order of suspension and a hearing for the proposed revocation of a certificate or registration into one proceeding. (D) Nothing in this section shall prohibit the department from immediately revoking a probationary certificate pursuant to subdivision (b) of Section 14541 or from taking other disciplinary action pursuant to Section 14591.2. 14591.3. In any civil or administrative action brought pursuant to this division in which the department prevails, the department may assess against the defendant or respondent any costs and fees, including attorneys' and experts' fees, and the cost of the investigation and hearing, which are incurred by the fund, whether paid or payable from the fund, and are a result of bringing the civil or administrative action against the defendant or respondent. In the same action, the defendant or respondent may claim from the department any costs and fees incurred in defending or responding to any action brought by the department in which the defendant or respondent prevails, upon a finding that the department's action was clearly frivolous or lacking in significant merit. 14591.4. (a) In addition to any other remedies, penalties, and disciplinary actions provided by this division or otherwise, the department may seek restitution of any money illegally paid to any person from the fund, plus interest at the rate earned on the Pooled Money Investment Account of the total amount. (b) A certificate holder is liable to the department for restitution pursuant to paragraph (5) of subdivision (c) of Section 14591.2 for payments made by the department to the certificate holder that are based on improperly prepared or maintained documents, as specified in paragraph (7) of subdivision (b) of Section 14538 and paragraph (8) of subdivision (b) of Section 14539. (c) If the department has a civil cause of action for restitution pursuant to subdivision (a) or (b), or if the department has a civil cause of action against a certificate holder or other responsible party for restitution under any other circumstance, the department may seek restitution in accordance with the following: (1) For restitution of an amount of more than one thousand dollars ($1,000), the department shall proceed in a hearing in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code. The hearing may take place at the same time as a hearing to impose disciplinary action on a certificate holder. (2) For restitution of an amount of one thousand dollars ($1,000) or less, the department may use an informal hearing in accordance with Article 10 (commencing with Section 11445.10) of Chapter 4.5 of Part 1 of Division 3 of Title 2 of the Government Code. (d) Notwithstanding subdivisions (b) and (c) of Section 14591.1, if the department collects amounts in full restitution for money paid, the department may impose a penalty of not more than one hundred dollars ($100) for each separate violation, or for continuing violations, for each day that violation occurs. 14591.5. After the time for judicial review under Section 11523 of the Government Code has expired, the department may apply to the small claims court or superior court, depending on the jurisdictional amount and any other remedy sought, in the county where the penalties, restitution, or other remedy was imposed by the department, for a judgment to collect any unpaid civil penalties or restitution or to enforce any other remedy provided by this division. The application, which shall include a certified copy of the final agency order or decision, shall constitute a sufficient showing to warrant the issuance of the judgment. The court clerk shall enter the judgment immediately in conformity with the application. The judgment so entered shall have the same force and effect as, and shall be subject to all the provisions of law relating to, a judgment in a civil action, and may be enforced in the same manner as any other judgment of the court. The court shall make enforcement of the judgment a priority. 14591.6. (a) When a person is engaged in recycling activity that violates this division, any regulation adopted pursuant to this division, or an order issued under this division, the department may issue an order to that person to cease and desist from that activity. (b) If a request for a hearing is filed in writing within 10 days of the date of service of the order described in subdivision (a), a hearing shall be held in accordance with Article 10 (commencing with Section 11445.10) of Chapter 4.5 of Part 1 of Division 3 of Title 2 of the Government Code. The director or the director's designee shall determine whether to sustain or reverse the cease and desist order. If sustained, the order shall become effective and final upon the issuance and service of the order. (c) If no written request for a hearing is filed within 10 days of the date of service of the order described in subdivision (a), or if a party requesting the hearing does not appear at the hearing, the order shall be deemed the final order of the department and is not subject to review by any court or agency. This order shall become effective and final after the expiration of the 10-day period within which a hearing may be requested. (d) If a hearing is requested pursuant to subdivision (b) and the party requesting the hearing does not appear on the date scheduled, and fails to notify the department at least five days prior to the hearing date that the party will not appear, the department may recover from the party all costs and fees incurred by the department, including attorneys' and experts' fees, and any other costs associated with preparing for, or conducting, the hearing. (e) Upon the failure of any person or persons to comply with any cease and desist order issued by the department, the Attorney General, upon request of the department, shall petition the superior court for the issuance of a preliminary or permanent injunction, or both, as may be appropriate, restraining the person from continuing the activity in violation of the cease and desist order. (f) The court shall issue an order directing defendants to appear before the court at a certain time and place and show cause why the injunction should not be issued. The court may grant the prohibitory or mandatory relief that may be warranted. 14593. Notwithstanding subdivisions (b) and (c) of Section 14591, the department may assess a civil penalty of up to 15 percent of the amount due for payment, and interest at the rate earned by the Pooled Money Investment Account, on distributors and beverage manufacturers for underpayment or late payment of the redemption payments for containers to the fund. The department may examine the accounts and records of distributors and beverage manufacturers which pay or should pay a redemption payment. No penalty shall be assessed until 30 days after the department has notified the distributor or manufacturer of the penalty assessment, and the amount due for payment and interest has not been paid. 14594. (a) Notwithstanding subdivisions (b) and (c) of Section 14591, the department may assess a civil penalty of up to 15 percent of the amount due for payment, and interest at the rate earned by the Pooled Money Investment Account, on any beverage manufacturer which fails to pay a processing fee required pursuant to Section 14575. The department may examine the accounts and records of any beverage manufacturer which pays or should pay a processing fee. No penalty shall be assessed until 30 days after the department has notified the manufacturer of the penalty assessment, and the amount due for payment and interest has not been paid. (b) If the department determines that an audit of a beverage manufacturer shows that there has been an underpayment of a processing fee, the department may examine the records concerning beverage container sales of any container manufacturer who supplied the beverage containers to the beverage manufacturer. 14594.5. The department may assess upon any person, entity, or operation which redeems, attempts to redeem, or aids in the redemption of, empty beverage containers that have already been redeemed, a civil penalty of up to ten thousand dollars ($10,000) per transaction, or an amount equal to three times the damage or potential damage, whichever is greater, plus costs as provided in Section 14591.3, pursuant to notice and hearing in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code.
14595. The Legislature finds and declares that the redemption of beverage container material imported from out of state, previously redeemed containers, rejected containers, and line breakage presents a significant threat to the integrity of the beverage container recycling program and fund. It is therefore the intent of the Legislature that no refund value or other recycling program payments be paid to any person for this material. It is further the intent of the Legislature that any person participating in conduct intended to defraud the state's beverage container recycling program shall be held accountable for that conduct. 14595.4. For purposes of this chapter, the following definitions shall apply: (a) "Person" means any individual, corporation, operation, or entity, whether or not certified or registered pursuant to this division. (b) "Refund value" means, in addition to the definition in Section 14524, any payment by a certified recycler for beverage container material that is at least 15 percent more than the statewide average scrap value for that material type, as determined by the department for the month in which the payment was made, unless the department determines that a reasonable basis exists for that payment. 14595.5. (a) (1) No person shall pay, claim, or receive any refund value, processing payment, handling fee, or administrative fee for any of the following: (A) Beverage container material that the person knew, or should have known, was imported from out of state. (B) A previously redeemed container, rejected container, line breakage, or other ineligible material. (2) No person shall, with intent to defraud, do any of the following: (A) Redeem or attempt to redeem an out-of-state container, rejected container, line breakage, previously redeemed container, or other ineligible material. (B) Return a previously redeemed container to the marketplace for redemption. (C) Bring an out-of-state container, rejected container, line breakage, or other ineligible material to the marketplace for redemption. (D) Receive, store, transport, distribute, or otherwise facilitate or aid in the redemption of a previously redeemed container, out-of-state container, rejected container, line breakage, or other ineligible material. (b) For purposes of implementing subdivision (a), the department shall take all reasonable steps to exclude beverage container material imported from out of state, previously redeemed containers, rejected containers, and line breakage, when conducting surveys to determine a commingled rate pursuant to Section 14549.5. 14596. (a) Any person importing more than 100 pounds of aluminum, bimetal, or plastic beverage container material, or more than 1,000 pounds of glass beverage container material, into the state, shall report the material to the department and provide the department with an opportunity for inspection, in accordance with the regulations adopted by the department. (b) The department may impose civil penalties pursuant to Section 14591.1 or take disciplinary action pursuant to Section 14591.2 for a violation of this section. 14597. (a) No person shall falsify documents required pursuant to this division or pursuant to regulations adopted by the department. The falsification of these documents is evidence of intent to defraud and, for purposes of subdivision (b) of Section 14591.1, constitutes intentional misconduct. The department may also take disciplinary action pursuant to Section 14591.2 against a person who engages in falsification including, but not limited to, revocation of any certificate or registration. (b) No person shall submit, or cause to be submitted, a fraudulent claim pursuant to this division. For purposes of this subdivision, a fraudulent claim is a claim based in whole or in part on false information or falsified documents. Any person who submits a fraudulent claim is subject to the assessment of penalties pursuant to subdivision (b) of Section 14591.1. The department may take action for full restitution for a fraudulent claim, pursuant to Section 14591.4, and may also take disciplinary action pursuant to Section 14591.2 including, but not limited to, revocation of any certificate or registration. 14599. The department may adopt emergency regulations to implement this chapter. Any emergency regulations, if adopted, shall be adopted in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, and for the purposes of that chapter, including Section 11349.6 of the Government Code, the adoption of these regulations is an emergency and shall be considered by the Office of Administrative Law as necessary for the immediate preservation of the public peace, health and safety, and general welfare. Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, any emergency regulations adopted pursuant to this section shall be filed with, but not repealed by, the Office of Administrative Law, and shall remain in effect until revised by the director.
Updated
May 12, 2010
