BILL NUMBER: SB 1781	CHAPTERED
	BILL TEXT

	CHAPTER  696
	FILED WITH SECRETARY OF STATE  SEPTEMBER 30, 2008
	APPROVED BY GOVERNOR  SEPTEMBER 30, 2008
	PASSED THE SENATE  MAY 22, 2008
	PASSED THE ASSEMBLY  AUGUST 18, 2008

INTRODUCED BY   Committee on Environmental Quality (Senators Simitian
(Chair), Aanestad, Florez, Kuehl, Lowenthal, Runner, and Steinberg)

                        MARCH 24, 2008

   An act to amend Sections 14501, 14511.7, 14520.5, 14524, 14539,
14549.6, 14549.7, 14552, 14560.5, 14561, 14571, 14571.1, 14571.7,
14575, 14580, 14581, 14588.1, 14588.2, 14593, 14594, 42889, 42963,
45014, and 71205.3 of, and to repeal Sections 14514.5, 14555,
14575.2, 14575.5, and 14580.5 of, the Public Resources Code, and to
amend Section 31560 of the Vehicle Code, relating to environmental
quality, and declaring the urgency thereof, to take effect
immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1781, Committee on Environmental Quality. Environmental
quality: solid waste management: used and waste tires: ballast water
management.
   (1) The California Beverage Container Recycling and Litter
Reduction Act requires a beverage distributor to pay a redemption
payment for every beverage container sold or offered for sale in the
state to the Department of Conservation. The act requires the
department to deposit those amounts in the California Beverage
Container Recycling Fund and requires every beverage container sold
or offered for sale in the state to have a minimum refund value. The
money in the fund is continuously appropriated to the department for
the payment of the refund values and processing fees.
   The act requires a refund to be paid by a certified recycling
center to a consumer or dropoff or collection center, by a processor
to a certified recycling center, dropoff or collection program,
curbside program, or nonprofit dropoff program, and by the department
to a processor, for each beverage container received. The act
defines "nonprofit dropoff program" for purposes of those provisions.

   This bill would remove a nonprofit dropoff program from the list
of entities to which a refund is required to be paid and would delete
the definition of, and all references to, nonprofit dropoff
programs.
   (2) The act requires the Department of Conservation to establish
and implement an auditing system to ensure that information
collected, and refund values and redemption payments, comply with the
purposes of the act. The act authorizes the department to audit and
investigate specified actions on and before December 31, 2001, and on
and after January 1, 2002, and to take specified enforcement and
disciplinary actions.
   This bill would authorize the department to conduct the audits and
investigations on or after January 1 of each year.
   (3) The act requires specified recycling centers or locations to
be open for business at least 30 hours per week and authorizes the
department to certify a recycling center that will operate fewer than
30 hours per week if specified conditions are met, including being
in a rural region according to the criteria of the federal Farmers
Home Loan Administration.
    This bill would change that condition to authorize the department
to certify a recycling center in a rural region according to the
loan eligibility criteria of the Rural Housing Service of the United
States Department of Agriculture Rural Development Administration, or
its successor agency. The bill would delete obsolete references and
provisions and make other technical corrections in the act.
   (4) Existing law relating to tire hauling requires a person who
engages in the transportation of waste or used tires, as defined, to
register with the California Integrated Waste Management Board.
Existing law exempts from the registration requirement a person
meeting one of various conditions, including that the person
transports fewer than 10 waste or used tires at a time.
   Existing law provides that it is unlawful and constitutes an
infraction for a person engaged in the transportation of waste tires
to violate specified provisions relating to registration.
   This bill would expand the scope of that infraction to include a
person operating a vehicle, or combination of vehicles, in the
transportation of 10 or more used tires or waste tires, or a
combination of used tires and waste tires totaling 10 or more. By
expanding the application of an existing crime, this bill would
impose a state-mandated local program.
   (5) Existing law relating to tire recycling imposes a fee on the
purchase of new tires and requires the fee to be deposited in the
California Tire Recycling Management Fund in the State Treasury.
Existing law requires moneys in the fund to be used to pay, among
other things, the costs associated with the development and
enforcement of regulations relating to the storage of waste and used
tires. Existing law requires the board to consider designating a
city, county, or city and county as the enforcement authority for
regulations relating to the storage of waste and used tires, and if
the board makes those designations, to provide funding to the local
entity based on available resources. Existing law also imposes
specified civil penalties on a person who violates provisions
relating to tire hauler registration and authorizes liability to be
imposed in a civil action or administratively.
   This bill would authorize the board, upon request of a city,
county, or city and county, to designate the city, county, or city
and county to exercise the board's enforcement authority under the
laws relating to tire hauler registration. This bill would authorize,
in addition to existing means of imposing liability on a person who
violates provisions relating to tire hauler registration, an attorney
authorized to act on behalf of a local enforcement agency or the
board to apply to the clerk of the court in the county in which a
civil penalty was imposed for a judgment to collect the penalty.
   (6) The Marine Invasive Species Act generally applies to a vessel
carrying or capable of carrying ballast water into the coastal waters
of the state after operating outside of the coastal waters of the
state, and to all ballast water and associated sediments taken on the
vessel. The act requires the State Lands Commission to adopt
specified regulations, including regulations requiring an owner or
operator of a vessel carrying, or capable of carrying, ballast water
that operates in the waters of the state to comply with an
implementation schedule for interim performance standards for the
discharge of ballast water in accordance with a specified report. The
act requires the commission, in consultation with the State Water
Resources Control Board, the United States Coast Guard, and a
specified advisory panel, to prepare or update and submit to the
Legislature a specified review, relating to available technologies
for ballast water treatment systems, on or before January 1, 2008.
   This bill would require the commission to adopt regulations
requiring compliance with an implementation schedule set forth in the
bill and would require the commission to submit the review to the
Legislature on or before January 1, 2009.
   (7) This bill would also make various technical, nonsubstantive
changes in existing law relating to solid waste management, tire
hauling, tire recycling, and ballast water management.
   (8) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   (9) This bill would declare that it is to take effect immediately
as an urgency statute.


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

  SECTION 1.  Section 14501 of the Public Resources Code is amended
to read:
   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, 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.
   (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 that
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.
  SEC. 2.  Section 14511.7 of the Public Resources Code is amended to
read:
   14511.7.  "Dropoff or collection program" means any person,
association, nonprofit corporation, church, club, or other
organization certified by the department, and that 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 or curbside program.
  SEC. 3.  Section 14514.5 of the Public Resources Code is repealed.
  SEC. 4.  Section 14520.5 of the Public Resources Code is amended to
read:
   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.
  SEC. 5.  Section 14524 of the Public Resources Code is amended to
read:
   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 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, or curbside program, for each beverage container
received from the certified recycling center, dropoff or collection
program, or curbside program.
   (c) The department to a processor, for each beverage container
received by the processor from a certified recycling center, curbside
program, or dropoff or collection program.
  SEC. 6.  Section 14539 of the Public Resources Code is amended to
read:
   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) of
subdivision (b) of this section, 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.
  SEC. 7.  Section 14549.6 of the Public Resources Code is amended to
read:
   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 program
or neighborhood dropoff program shall be based upon the per-container
rate, calculated pursuant to paragraph (2), multiplied by the
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.
  SEC. 8.  Section 14549.7 of the Public Resources Code is amended to
read:
   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 (3) 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
that is enacted before January 1, 2010, deletes or extends that
date.
  SEC. 9.  Section 14552 of the Public Resources Code is amended to
read:
   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)  On or after January 1 of each year, the department may
audit or investigate any action taken up to three years before the
onset of the audit or investigation and may determine if there was
compliance with this division and the regulations adopted pursuant to
this division, during that period.
   (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.
  SEC. 10.  Section 14555 of the Public Resources Code is repealed.
  SEC. 11.  Section 14560.5 of the Public Resources Code is amended
to read:
   14560.5.  (a) (1) Except as provided in paragraph (2), the invoice
or other form of accounting of the transaction submitted by a
beverage distributor of beverages to a dealer shall separately
identify the amount of any redemption payment imposed on beverage
containers pursuant to Section 14560 and the separate identification
of the invoice or other form of accounting of the transaction shall
not combine or include the gross wholesale price with the redemption
payment but shall separately state the gross amount of the redemption
payment for each type of container included in each delivery.
   (2) The invoice or other form of accounting of the transaction
submitted by any distributor of beer and malt beverages or wine or
distilled spirit coolers to a dealer may separately identify the
portion of the gross wholesale price attributable to any redemption
payment imposed on beverage containers pursuant to Section 14560 and
the separate identification of the invoice or other form of
accounting of the transaction may separately state the gross amount
of the redemption payment for each type of container included in each
delivery. The invoice or other form of accounting of this
transaction may separately identify the portion of the gross
wholesale price attributable to the redemption payment.
   (3) Notwithstanding Section 14541, the department shall randomly
inspect beverage distributor invoices or other forms of accounting to
ensure compliance with this subdivision. However, an unintentional
error in addition or subtraction on an invoice or other form of
accounting by a route driver of a distributor shall not be deemed a
violation of this subdivision.
   (4) For the purposes of this subdivision, the term "type of
container" includes the amount of the redemption payment on
containers under 24 ounces and on containers 24 ounces or more.
   (b) To the extent technically and economically feasible, a dealer
may separately identify the amount of any redemption payment on the
customer cash register receipt provided to the consumer, by the
dealer, that is applied to the purchase of a beverage container.
   (c) (1) A 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.
  SEC. 12.  Section 14561 of the Public Resources Code is amended to
read:
   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) A person shall not 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.
  SEC. 13.  Section 14571 of the Public Resources Code is amended to
read:
   14571.  (a) Except as otherwise provided in this chapter, there
shall be at least one certified recycling center or location within
every convenience zone that 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 the loan eligibility
criteria of the Rural Housing Service of the United States Department
of Agriculture, Rural Development Administration, or its successor
agency. 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 that is open at least 30
hours per week and that 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 that 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
that 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.
  SEC. 14.  Section 14571.1 of the Public Resources Code is amended
to read:
   14571.1.  On or before January 1 of each year, 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.
  SEC. 15.  Section 14571.7 of the Public Resources Code is amended
to read:
   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, 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, a recycling location that satisfies the
requirements of Section 14571 has not been established, 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, 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, a recycling location that
satisfies the requirements of Section 14571 has not been established,
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.
  SEC. 16.  Section 14575 of the Public Resources Code is amended to
read:
   14575.  (a) If any type of empty beverage container with a refund
value established pursuant to Section 14560 has a scrap value less
than the cost of recycling, the department shall, on January 1, 2000,
and on or before January 1 annually thereafter, establish a
processing fee and a processing payment for the container by the type
of the material of the container.
   (b) The processing payment shall be at least equal to the
difference between the scrap value offered to a statistically
significant sample of recyclers by willing purchasers, and except for
the initial calculation made pursuant to subdivision (d), the sum of
both of the following:
   (1) The actual cost for certified recycling centers, excluding
centers receiving a handling fee, of receiving, handling, storing,
transporting, and maintaining equipment for each container sold for
recycling or, only if the container is not recyclable, the actual
cost of disposal, calculated pursuant to subdivision (c). The
department shall determine the statewide weighted average cost to
recycle each beverage container type, which shall serve as the actual
recycling costs for purposes of 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) On January 1, 2005, and annually thereafter, the processing
fee shall equal the following amounts:
   (A) Ten percent of the processing payment for a container type
with a recycling rate equal to or greater than 75 percent.
   (B) Eleven percent of the processing payment for a container type
with a recycling rate equal to or greater than 65 percent, but less
than 75 percent.
   (C) Twelve percent of the processing payment for a container type
with a recycling rate equal to or greater than 60 percent, but less
than 65 percent.
   (D) Thirteen percent of the processing payment for a container
type with a recycling rate equal to or greater than 55 percent, but
less than 60 percent.
   (E) Fourteen percent of the processing payment for a container
type with a recycling rate equal to or greater than 50 percent, but
less than 55 percent.
   (F) Fifteen percent of the processing payment for a container type
with a recycling rate equal to or greater than 45 percent, but less
than 50 percent.
   (G) Eighteen percent of the processing payment for a container
type with a recycling rate equal to or greater than 40 percent, but
less than 45 percent.
   (H) Twenty percent of the processing payment for a container type
with a recycling rate equal to or greater than 30 percent, but less
than 40 percent.
   (I) Sixty-five percent of the processing payment for a container
type with a recycling rate less than 30 percent.
   (2) 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.
   (3) The department shall calculate the recycling rate for purposes
of paragraphs (1) and (2) 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), a 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 that 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.
  SEC. 17.  Section 14575.2 of the Public Resources Code is repealed.

  SEC. 18.  Section 14575.5 of the Public Resources Code is repealed.

  SEC. 19.  Section 14580 of the Public Resources Code is amended to
read:
   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 the interest earned on that amount.
   (b) 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.
  SEC. 20.  Section 14580.5 of the Public Resources Code is repealed.

  SEC. 21.  Section 14581 of the Public Resources Code is amended to
read:
   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) Grants provided pursuant to this paragraph shall not comprise
more than 75 percent of the annual budget of a community conservation
corps.
   (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:
   (i) Multifamily dwellings.
   (ii) Schools.
   (iii) Commercial, state, and local government buildings.
   (iv) Bars, restaurants, hotels, and lodging establishments, and
entertainment venues.
   (v) Parks and beaches.
   (C) Grants provided pursuant to this paragraph shall not comprise
more than 75 percent of the annual budget of a community conservation
corps.
   (D) Grants provided pursuant to this paragraph shall support
one-time capital improvement projects and shall not be used to
support ongoing staff activities.
   (E) 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) (A) Ten million five hundred thousand dollars ($10,500,000)
may be expended annually for payments of five thousand dollars
($5,000) to cities and ten thousand dollars ($10,000) for payments to
counties for beverage container recycling and litter cleanup
activities, or the department may calculate the payments to counties
and cities on a per capita basis, and may pay whichever amount is
greater, for those activities.
   (B) Eligible activities for the use of these funds may include,
but are not necessarily limited to, support for new or existing
curbside recycling programs, neighborhood dropoff recycling programs,
public education-promoting beverage container recycling, litter
prevention, and cleanup, cooperative regional efforts among two or
more cities or counties, or both, or other beverage container
recycling programs.
   (C) These funds 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 established pursuant to Section 14575. The
department shall establish separate processing fee accounts in the
fund for each beverage container material type for which a processing
payment and processing fee are calculated pursuant to Section 14575,
or for which a processing payment is calculated pursuant to Section
14575 and a voluntary artificial scrap value is calculated pursuant
to Section 14575.1. All of the following shall be deposited into each
account:
   (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.
   (B) Notwithstanding Section 13340 of the Government Code, the
moneys in each processing fee account are hereby continuously
appropriated to the department for expenditure without regard to
fiscal years, for purposes of making processing payments,
                              and reducing processing fees, pursuant
to Section 14575.
   (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) 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.
   (17) (A) Up to fifteen million dollars ($15,000,000) may be
expended from January 1, 2008, to January 1, 2009, to provide grants
to place source separated beverage container recycling receptacles in
multifamily housing.
   (B) Notwithstanding subdivision (b) of Section 14580, the amount
of one hundred ninety-eight thousand dollars ($198,000) may be
expended by the department from the fund, on a one-time basis, for
the administrative costs of implementing the grant program
established by subparagraph (A).
   (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.
  SEC. 22.  Section 14588.1 of the Public Resources Code is amended
to read:
   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 the loan
eligibility criteria of the Rural Housing Service of the United
States Department of Agriculture, Rural Development Administration,
or its successor agency. 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.
  SEC. 23.  Section 14588.2 of the Public Resources Code is amended
to read:
   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 paragraph (1). 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) 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.
   (1) 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.
   (2) 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.
   (3) 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.
   (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.
  SEC. 24.  Section 14593 of the Public Resources Code is amended to
read:
   14593.  Notwithstanding subdivisions (b) and (c) of Section
14591.1, 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 that 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.
  SEC. 25.  Section 14594 of the Public Resources Code is amended to
read:
   14594.  (a) Notwithstanding subdivisions (b) and (c) of Section
14591.1, 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 a beverage
manufacturer that fails to pay a processing fee required pursuant to
Section 14575. The department may examine the accounts and records of
a beverage manufacturer that 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 a container manufacturer that supplied
the beverage containers to the beverage manufacturer.
  SEC. 26.  Section 42889 of the Public Resources Code, as amended by
Section 56 of Chapter 77 of the Statutes of 2006, is amended to
read:
   42889.  (a) Commencing January 1, 2005, of the moneys collected
pursuant to Section 42885, an amount equal to seventy-five cents
($0.75) per tire on which the fee is imposed shall be transferred by
the State Board of Equalization to the Air Pollution Control Fund.
The state board shall expend those moneys, or allocate those moneys
to the districts for expenditure, to fund programs and projects that
mitigate or remediate air pollution caused by tires in the state, to
the extent that the state board or the applicable district determines
that the program or project remediates air pollution harms created
by tires upon which the fee described in Section 42885 is imposed.
   (b) The remaining moneys collected pursuant to Section 42885 shall
be used to fund the waste tire program, and shall be appropriated to
the board in the annual Budget Act in a manner consistent with the
five-year plan adopted and updated by the board. These moneys shall
be expended for the payment of refunds under this chapter and for the
following purposes:
   (1) To pay the administrative overhead cost of this chapter, not
to exceed 6 percent of the total revenue deposited in the fund
annually, or an amount otherwise specified in the annual Budget Act.
   (2) To pay the costs of administration associated with collection,
making refunds, and auditing revenues in the fund, not to exceed 3
percent of the total revenue deposited in the fund, as provided in
subdivision (c) of Section 42885.
   (3) To pay the costs associated with operating the tire recycling
program specified in Article 3 (commencing with Section 42870).
   (4) To pay the costs associated with the development and
enforcement of regulations relating to the storage of waste tires and
used tires. The board shall consider designating a city, county, or
city and county as the enforcement authority of regulations relating
to the storage of waste tires and used tires, as provided in
subdivision (c) of Section 42850, and regulations relating to the
hauling of waste and used tires, as provided in subdivision (b) of
Section 42963. If the board designates a local entity for that
purpose, the board shall provide sufficient, stable, and
noncompetitive funding to that entity for that purpose, based on
available resources, as provided in the five-year plan adopted and
updated as provided in subdivision (a) of Section 42885.5. The board
may consider and create, as appropriate, financial incentives for
citizens who report the illegal hauling or disposal of waste tires as
a means of enhancing local and statewide waste tire and used tire
enforcement programs.
   (5) To pay the costs of cleanup, abatement, removal, or other
remedial action related to waste tire stockpiles throughout the
state, including all approved costs incurred by other public agencies
involved in these activities by contract with the board. Not less
than six million five hundred thousand dollars ($6,500,000) shall be
expended by the board during each of the following fiscal years for
this purpose: 2001-02 to 2006-07, inclusive.
   (6) To make studies and conduct research directed at promoting and
developing alternatives to the landfill disposal of waste tires.
   (7) To assist in developing markets and new technologies for used
tires and waste tires. The board's expenditure of funds for purposes
of this subdivision shall reflect the priorities for waste management
practices specified in subdivision (a) of Section 40051.
   (8) To pay the costs associated with implementing and operating a
waste tire and used tire hauler program and manifest system pursuant
to Chapter 19 (commencing with Section 42950).
   (9) To pay the costs to create and maintain an emergency reserve,
which shall not exceed one million dollars ($1,000,000).
   (10) To pay the costs of cleanup, abatement, or other remedial
action related to the disposal of waste tires in implementing and
operating the Farm and Ranch Solid Waste Cleanup and Abatement Grant
Program established pursuant to Chapter 2.5 (commencing with Section
48100) of Part 7.
   (c) This section shall remain in effect only until January 1,
2015, and as of that date is repealed, unless a later enacted statute
that is enacted before January 1, 2015, deletes or extends that
date.
  SEC. 27.  Section 42889 of the Public Resources Code, as added by
Section 14.5 of Chapter 707 of the Statutes of 2004, is amended to
read:
   42889.  Funding for the waste tire program shall be appropriated
to the board in the annual Budget Act. The moneys in the fund shall
be expended for the payment of refunds under this chapter and for the
following purposes:
   (a) To pay the administrative overhead cost of this chapter, not
to exceed 5 percent of the total revenue deposited in the fund
annually, or an amount otherwise specified in the annual Budget Act.
   (b) To pay the costs of administration associated with collection,
making refunds, and auditing revenues in the fund, not to exceed 3
percent of the total revenue deposited in the fund, as provided in
subdivision (b) of Section 42885.
   (c) To pay the costs associated with operating the tire recycling
program specified in Article 3 (commencing with Section 42870).
   (d) To pay the costs associated with the development and
enforcement of regulations relating to the storage of waste tires and
used tires. The board shall consider designating a city, county, or
city and county as the enforcement authority of regulations relating
to the storage of waste tires and used tires, as provided in
subdivision (c) of Section 42850, and regulations relating to the
hauling of waste and used tires, as provided in subdivision (b) of
Section 42963. If the board designates a local entity for that
purpose, the board shall provide sufficient, stable, and
noncompetitive funding to that entity for that purpose, based on
available resources, as provided in the five-year plan adopted and
updated as provided in subdivision (a) of Section 42855.5. The board
may consider and create, as appropriate, financial incentives for
citizens who report the illegal hauling or disposal of waste tires as
a means of enhancing local and statewide waste tire and used tire
enforcement programs.
   (e) To pay the costs of cleanup, abatement, removal, or other
remedial action related to waste tire stockpiles throughout the
state, including all approved costs incurred by other public agencies
involved in these activities by contract with the board. Not less
than six million five hundred thousand dollars ($6,500,000) shall be
expended by the board during each of the following fiscal years for
this purpose: 2001-02 to 2006-07, inclusive.
   (f) This section shall become operative on January 1, 2015.
  SEC. 28.  Section 42963 of the Public Resources Code is amended to
read:
   42963.  (a) This chapter, or any regulations adopted pursuant to
Section 42966, is not a limitation on the power of a city, county, or
district to impose and enforce reasonable land use conditions or
restrictions on facilities that handle waste or used tires in order
to protect the public health and safety or the environment, including
preventing or mitigating potential nuisances, if the conditions or
restrictions do not conflict with, or impose less stringent
requirements than, this chapter or those regulations. However, this
chapter, including any regulations that are adopted pursuant to
Section 42966, is intended to establish a uniform statewide program
for the regulation of waste and used tire haulers that will prevent
the illegal disposal of tires, but which will not subject waste and
used tire haulers to multiple registration or manifest requirements.
Therefore, any local laws regulating the transportation of waste or
used tires are preempted by this chapter.
   (b) Upon request of a city, county, or city and county, the board
may designate, in writing, that city, county, or city and county to
exercise the enforcement authority granted to the board under this
chapter. A city, county, or city and county designated by the board
pursuant to this subdivision shall follow the same procedures set
forth for the board under this article. This designation shall not
limit the authority of the board to take action it deems necessary or
proper to ensure the enforcement of this chapter.
  SEC. 29.  Section 45014 of the Public Resources Code is amended to
read:
   45014.  (a) Upon the failure of a person to comply with a final
order issued by a local enforcement agency or the board, the Attorney
General, upon request of the board, shall petition the superior
court for the issuance of a preliminary or permanent injunction, or
both, as may be appropriate, restraining the person or persons from
continuing to violate the order or complaint.
   (b) An attorney authorized to act on behalf of the local
enforcement agency or the board may petition the superior court for
injunctive relief to enforce this part, a term or condition in a
solid waste facilities permit, or a standard adopted by the board or
the local enforcement agency.
   (c) In addition to the administrative imposition of civil
penalties pursuant to this part, Article 6 (commencing with Section
42850) of Chapter 16 of Part 3, and Article 4 (commencing with
Section 42962) of Chapter 19 of Part 3, an attorney authorized to act
on behalf of the local enforcement agency or the board may apply, to
the clerk of the appropriate court in the county in which the civil
penalty was imposed, for a judgment to collect the penalty. The
application, which shall include a certified copy of the decision or
order in the civil penalty action, constitutes a sufficient showing
to warrant issuance of the judgment. The court clerk shall enter the
judgment immediately in conformity with the application. The judgment
so entered shall include the amount of the court filing fee that
would have been due from an applicant who is not a public agency, and
has the same force and effect as, and is 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 in
which it is entered. The amount of the unpaid court filing fee shall
be paid to the court prior to satisfying any of the civil penalty
amount. Thereafter, any civil penalty or judgment recovered shall be
paid, to the maximum extent allowed by law, to the board or to the
local enforcement agency, whichever is represented by the
                                attorney who brought the action.
  SEC. 30.  Section 71205.3 of the Public Resources Code is amended
to read:
   71205.3.  (a) On or before January 1, 2008, the commission shall
adopt regulations that do all of the following:
   (1) Except as provided otherwise in Section 71204.7, require an
owner or operator of a vessel carrying, or capable of carrying,
ballast water that operates in the waters of the state to implement
the interim performance standards for the discharge of ballast water
recommended in accordance with Table x-1 of the California State
Lands Commission Report on Performance Standards for Ballast Water
Discharges in California Waters, as approved by the commission on
January 26, 2006.
   (2) Except as provided otherwise in Section 71204.7, require an
owner or operator of a vessel carrying, or capable of carrying,
ballast water that operates in the waters of the state to comply with
the following implementation schedule:
                  Standards apply   Standards apply
  Ballast water   to new vessels     to all other
   capacity of     in this size     vessels in this
      vessel           class          size class
                  constructed on     beginning in:
                     or after:
<1500 metric     January 1, 2010   January 1, 2016
tons
1500-5000        January 1, 2010   January 1, 2014
metric tons
>5000 metric     January 1, 2012   January 1, 2016
tons


   (3) Notwithstanding Section 71204.7, require an owner or operator
of a vessel carrying, or capable of carrying, ballast water that
operates in the waters of the state to meet the final performance
standard for the discharge of ballast water of zero detectable for
all organism size classes by 2020, as approved by the commission on
January 26, 2006.
   (b) On or before January 1, 2009, for the interim performance
standards specified in paragraph (1) of subdivision (a) that have to
be complied with in 2010, as specified in paragraph (2) of
subdivision (a), and not less than 18 months prior to the scheduled
compliance date specified in paragraph (2) of subdivision (a) for
each subsequent class and the date for implementation of the final
performance standard, as specified in paragraph (3) of subdivision
(a), the commission, in consultation with the State Water Resources
Control Board, the United States Coast Guard, and the advisory panel
described in subdivision (b) of Section 71204.9, shall prepare, or
update, and submit to the Legislature a review of the efficacy,
availability, and environmental impacts, including the effect on
water quality, of currently available technologies for ballast water
treatment systems. If technologies to meet the performance standards
are determined in a review to be unavailable, the commission shall
include in that review an assessment of why the technologies are
unavailable.
  SEC. 31.  Section 31560 of the Vehicle Code is amended to read:
   31560.  (a) A person operating a vehicle, or combination of
vehicles, in the transportation of 10 or more used tires or waste
tires, or a combination of used tires and waste tires totaling 10 or
more, as defined in Section 42950 of the Public Resources Code, shall
be registered with the California Integrated Waste Management Board,
unless specifically exempted, as provided in Chapter 19 (commencing
with Section 42950) of Part 3 of Division 30 of the Public Resources
Code and in regulations adopted by the board to implement that
chapter.
   (b) It is unlawful and constitutes an infraction for a person
engaged in the transportation of 10 or more used tires or waste
tires, or a combination of used tires and waste tires totaling 10 or
more, to violate a provision of this article or Section 42951 of the
Public Resources Code.
  SEC. 32.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.
  SEC. 33.  This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:
   To ensure the protection of the environment at the earliest
possible time, it is necessary that this act take effect immediately.