Amended in Assembly May 8, 2013

Amended in Assembly April 3, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 1001

Introduced by Assembly Member Gordon

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(Coauthor: Assembly Member Stone)

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February 22, 2013

An act to amend Sections 14505, 14515.5, 14538, 14549.5, 14550, 14553, begin delete 14560, end delete 14560.5, 14571.2, begin delete 14571.5, end delete 14571.8, 14573, 14574, 14575, 14581, and 14583 begin delete , end delete of, to amend, repeal, and add Section 14585 of, to add Sections 14526.8, 14528.2, 14528.3, begin insert 14560.2, end insert 14571.6.5, and 14580.5 to, and to add Division 12.5 (commencing with Section 17000) to, the Public Resources Code, relating to recycling, and making an appropriation therefor.

LEGISLATIVE COUNSEL’S DIGEST

AB 1001, as amended, Gordon. Recycling: voluntary beverage containers.

(1) Existing law, the California Beverage Container Recycling and Litter Reduction Act, requires a distributor to pay a redemption payment for every beverage container sold or offered for sale in the state to the Department of Resources Recycling and Recovery. The department is required to deposit those amounts in the California Beverage Container Recycling Fund. The act defines the term beverage as including specified types of beverages that are sold in aluminum beverage containers, glass beverage containers, plastic beverage containers, or bimetal containers. begin insert A violation of the act is a crime. end insert

This bill would define the term “regulated beverage” as a beverage that meets the definition of beverage under the act, but is sold in a beverage container that is not one of those containers. The bill would also include, as a regulated beverage, 100% fruit juice in a container that is 46 ounces or more in volume and vegetable juice in a container that is more than 16 ounces in volume.

The bill would require a distributor of regulated beverage containers to submit a plan, by January 1, 2014, to the department for the implementation of a takeback and recycling system incorporating specified elements begin delete , end delete to implement the plan, and to annually demonstrate to the department that not less than 80% of the regulated beverages sold by the distributor in this state are recycled and that the regulated beverage containers sold by the distributor are made from material containing not less than 35% postconsumer recycled content. The bill would authorize the department to require a distributor to pay an annual administrative fee that would be required to be set at an amount that is adequate to cover the department’s full costs of administering and enforcing this program. The bill would require the department to deposit the fees into the Regulated Beverage Account, which the bill would establish in the State Treasury. The bill would authorize the department to expend the moneys in the Regulated Beverage Account, upon appropriation by the Legislature, to cover the department’s costs to implement the program.

The bill would allow a distributor, in lieu of submitting and implementing a takeback and recycling system, to elect to pay a redemption payment to the department pursuant to the act and to otherwise comply with the act. The bill would require the department to deposit the redemption payments by distributors for voluntary beverage containers into the Voluntary Beverage Container Fund, which the bill would create in the State Treasury. The bill would continuously appropriate the money in the Voluntary Beverage Container Fund to the department for the payment of refund values and administrative fees to processors for voluntary beverage containers, and as a reserve for contingencies, thereby making an appropriation. The bill would also provide that the money in the Voluntary Beverage Container Fund may be expended by the department for the administration of the act only upon appropriation by the Legislature.

The bill would require the department to establish a separate processing fee account in the Voluntary Beverage Container Fund for voluntary beverage containers and would require all amounts paid as processing fees for those voluntary beverage containers be deposited in that account. The bill would continuously appropriate those funds to the department for purposes of making processing payments for voluntary beverage containers. The bill would require the department, once every 3 months, to set aside funds estimated to be needed for the expenditures specified above. The bill would continuously appropriate the remainder of those funds to the department to pay handling fees for voluntary beverage containers and to make payments for the collection of voluntary beverage containers by curbside programs and neighborhood dropoff programs. The bill would make other conforming changes to the act with regard to voluntary beverage containers.

(2) The act requires the department to certify recycling centers and requires, as a condition of certification, that if one or more certified entities have operated at the same location within the past 5 years, the operations at the location of the recycling center exhibit, to the satisfaction of the department, a pattern of operation in compliance with the requirements of the act.

This bill would authorize the department to waive this requirement if it makes a specified determination.

(3) Existing law requires the department to annually review and recalculate commingled rates paid for beverage containers and postfilled containers paid to curbside recycling programs, collection programs, and recycling centers.

This bill would prohibit the department from recalculating commingled rates for the 2014, 2015, and 2016 calendar years paid to recycling centers and would prohibit recycling centers from paying any refund value at a commingled rate.

(4) Existing law specifies requirements for the reports, claims, and information required to be submitted to the department pursuant to the act.

This bill would require the department to make available a process for electronically submitting these reports, claims, and other information and would require those reports, claims, and other information to be submitted electronically to the department pursuant to that process. The bill would make conforming changes with regard to the electronic submission of reports and payments to the department.

(5) Existing law specifies procedures for the reduction of the processing fee for PET containers, as defined. Existing law also requires all rigid plastic bottles and rigid plastic containers to be labeled with a code that indicates the resin used to produce the rigid plastic bottle or rigid plastic container.

This bill would revise the definition of the term “PET container” for purposes of the act to include a plastic beverage container labeled with the term PETE.

(6) The act defines “convenience zone” for the purposes of the act and requires that every convenience zone be served by at least one certified recycling center, with specified operating hours. Existing law authorizes the department to designate a convenience zone in an area where there is no supermarket and to grant an exemption from the convenience zone requirements of the act.

This bill would define the term “unserved convenience zone” and would require the department to provide assistance and incentives to reduce the number of unserved convenience zones to less than 5% of total convenience zones by January 1, 2015.

This bill would permit the department to authorize an operator of a certified recycling center to be open for business less than 30 hours per week, but not less than 20 hours per week, if the recycling center is located in an unserved convenience zone, as defined, that has been unserved for at least 6 continuous months.

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This bill would prohibit the director from granting an exemption if a certified recycling center will not be operating in a convenience zone in which is located a supermarket and would repeal the authority to designate a convenience zone in an area where there is no supermarket.

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(7) Existing law prohibits a lease entered into by a dealer to contain a leasehold restriction that prohibits or results in the prohibition of the establishment of a recycling location. Existing law prohibits the department from making any payments, grants, or loans, to a city or county that has adopted or is enforcing a land use restriction that prevents the siting or operation of a certified recycling center at a supermarket begin delete site end delete begin insert site. end insert

This bill would prohibit a person from entering into a lease with a supermarket on or after January 1, 2014, that prohibits the operation of a certified recycling center or inhibits the ability of that supermarket to operate as, or contract with, a certified recycling center. This bill would also prohibit a city or county that receives any revenue pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law from a transaction conducted by a supermarket from prohibiting the siting of a certified recycling center in the parking lot of a supermarket.

(8) After setting aside funds for the payment of refund values and administrative fees, and for a reserve for contingencies, the act provides that the remaining moneys in the fund are continuously appropriated to the department for expenditure for designated programs, grants, and fee payments, including annually expending $15,000,000 for grants for beverage container programs to certain community conservation corps and $1,500,000 for grants for beverage container programs.

This bill would increase the amount the department is authorized to spend for grants for beverage container programs to certain community conservation corps to $21,000,000 and would delete the authorization to expend that $1,500,000 for those other grants, thereby making an appropriation.

(9) The act continuously appropriates to the department the amount necessary to pay handling fees to provide an incentive for the redemption of empty beverage containers in convenience zones. Existing law specifies procedures for determining the number of containers for which a handling fee may be paid and requires the department to set the amount of the handling fee using a specified method, but requires the per-container handling fee to be set until March 1, 2013, at an amount that is not less than the amount of the per-container handling fee that was in effect on July 1, 2011.

This bill would make inoperative the existing provisions regarding the methods for setting and calculating handling fees on July 1, 2014, and would repeal those provisions on January 1, 2015. The bill would provide that for beverage containers returned for recycling on and after July 1, 2014, the handling fee would equal specified amounts, based on the amount of beverage containers a recycling site handles each month. The bill would make an appropriation by changing the terms and conditions under which the department is authorized to make payments from a continuously appropriated fund.

(10) Since a violation of the act is a crime, the bill would impose a state-mandated local program by creating new crimes with regard to the submission of information to the department.

(11) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: yes. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

SECTION 1.  

Section 14505 of the Public Resources Code is
amended to read:

14505.  

(a) “Beverage container” means both of the following:

(1) The individual, separate bottle, can, jar, carton, or other
receptacle, however denominated, in which a beverage is sold, and
that is constructed of metal, glass, or plastic, or other material, or
any combination of these materials.

(2) Except as specified otherwise in this division, a voluntary
beverage container.

(b) “Beverage container” does not include cups or other similar
open or loosely sealed receptacles.

SEC. 2.  

Section 14515.5 of the Public Resources Code is
amended to read:

14515.5.  

“PET container” means a plastic beverage container
labeled with a “1” or with “PETE” for polyethylene terephthalate
resin, pursuant to Section 18015 and subject to this division.

SEC. 3.  

Section 14526.8 is added to the Public Resources Code,
to read:

14526.8.  

“Unserved convenience zone” means a convenience
zone in which there is not in operation a certified recycling center
or other location that meets the requirements of subdivision (a) of
Section 14571 and the convenience zone is otherwise not exempt
pursuant to Section 14571.8.

SEC. 4.  

Section 14528.2 is added to the Public Resources Code,
to read:

14528.2.  

“Voluntary beverage container” is a regulated
beverage container subject to Division 12.5 (commencing with
Section 17000) for which the distributor voluntarily agrees to
participate in this division pursuant to Section 17004.

SEC. 5.  

Section 14528.3 is added to the Public Resources Code,
to read:

14528.3.  

“Voluntary fund” means the Voluntary Beverage
Container Fund established pursuant to Section 14580.5.

SEC. 6.  

Section 14538 of the Public Resources Code is
amended to read:

14538.  

(a) The department shall certify the operators of
recycling centers pursuant to this section. The director shall adopt,
by regulation, a procedure for the certification of recycling centers,
including standards and requirements for certification. These
regulations shall require that all information be submitted to the
department under penalty of perjury. A recycling center shall meet
all of the standards and requirements contained in the regulations
for certification. The regulations shall require, but shall not be
limited to requiring, that all of the following conditions be met for
certification:

(1) The operator of the recycling center demonstrates, to the
satisfaction of the department, that the operator will operate in
accordance with this division.

(2) (A) If one or more certified entities have operated at the
same location within the past five years, the operations at the
location of the recycling center exhibit, to the satisfaction of the
department, a pattern of operation in compliance with the
requirements of this division and regulations adopted pursuant to
this division.

(B) The department shall waive the requirements of
subparagraph (A) if the department determines that the new
operator applicant has no relationship or affiliation to a previous
certified entity that operated at the same location.

(3) The operator of the recycling center notifies the department
promptly of any material change in the nature of his or her
operations which conflicts with information submitted in the
operator’s application for certification.

(b) A certified recycling center shall comply with all of the
following requirements for operation:

(1) The operator of the recycling center shall not pay a refund
value for, or receive a refund value from any processor for, any
food or drink packaging material or any beverage container or
other product that does not have a refund value established pursuant
to Section 14560.

(2) The operator of a recycling center shall take those actions
that satisfy the department to prevent the payment of a refund value
for any food or drink packaging material or any beverage container
or other product that does not have a refund value established
pursuant to Section 14560.

(3) Unless exempted pursuant to subdivision (b) of Section
14572, a certified recycling center shall accept, and pay at least
the refund value for, all empty beverage containers, regardless of
type.

(4) A certified recycling center shall not pay any refund values,
processing payments, or administrative fees to a noncertified
recycler.

(5) A certified recycling center shall not pay any refund values,
processing payments, or administrative fees on empty beverage
containers or other containers that the certified recycling center
knew, or should have known, were coming into the state from out
of the state.

(6) A certified recycling center shall not claim refund values,
processing payments, or administrative fees on empty beverage
containers that the certified recycling center knew, or should have
known, were received from noncertified recyclers or on beverage
containers that the certified recycling center knew, or should have
known, come from out of the state.

(7) A certified recycling center shall prepare and maintain the
following documents involving empty beverage containers, as
specified by the department by regulation:

(A) Shipping reports that are required to be prepared by the
recycling center, or that are required to be obtained from other
recycling centers.

(B) Consumer transaction receipts.

(C) Consumer transaction logs.

(D) Rejected container receipts on materials subject to this
division.

(E) Receipts for transactions with beverage manufacturers on
materials subject to this division.

(F) Receipts for transactions with beverage distributors on
materials subject to this division.

(G) Documents authorizing the recycling center to cancel empty
beverage containers.

(H) Weight tickets.

(8) In addition to the requirements of paragraph (7), a certified
recycling center shall cooperate with the department and make
available its records of scrap transactions when the review of these
records is necessary for an audit or investigation by the department.

(c) The department may recover, in restitution pursuant to
paragraph (5) of subdivision (c) of Section 14591.2, payments
made from the fund to the certified recycling center pursuant to
Section 14573.5 that are based on the documents specified in
paragraph (7) of subdivision (b), that are not prepared or maintained
in compliance with the department’s regulations, and that do not
allow the department to verify claims for program payments.

(d) The department may certify a recycling center that will
operate less than 30 hours a week, as specified in paragraph (2) of
subdivision (b) of Section 14571.

SEC. 7.  

Section 14549.5 of the Public Resources Code is
amended to read:

14549.5.  

(a) Except as provided in subdivision (c), before
April 1 of each year, or more frequently as determined to be
necessary by the department, the department shall review and, if
necessary in order to ensure payment of the most accurate
commingled rate feasible, recalculate commingled rates paid for
beverage containers and postfilled containers paid to curbside
recycling programs, dropoff or collection programs, and recycling
centers. Prior to recalculating a commingled rate pursuant to this
section, the department shall do all of the following:

(1) Consult with private and public operators of curbside
recycling programs, dropoff or collection programs, and recycling
centers concerning the size of the statewide sample, appropriate
sampling methodologies, and alternatives to exclusive reliance on
a statewide commingled rate.

(2) At least 60 days prior to the effective date of any new
commingled rate, hold a public hearing, after giving notice, to
make available to the public and affected parties the department’s
review and any proposed recalculations of the commingled rate.

(3) At least 60 days prior to the effective date of any new
commingled rate, and upon the request of any party, make available
documentation or studies that were prepared as part of the
department’s review of a commingled rate.

(b) (1) Notwithstanding this division, the department may
calculate a curbside recycling program commingled rate pursuant
to this subdivision for bimetal containers and a combined
commingled rate for all plastic beverage containers displaying the
resin identification code “3,” “4,” “5,” “6,” or “7” pursuant to
Section 18015.

(2) The department may enter into a contract for the services
required to implement the amendments to this section made by
Chapter 753 of the Statutes of 2003. The department may not
expend more than two hundred fifty thousand dollars ($250,000)
for each year of the contract. The contract shall be paid only from
revenues derived from redemption payments and processing fees
paid on plastic beverage containers displaying the resin
identification code “3,” “4,” “5,” “6,” or “7” pursuant to Section
18015. If the department determines that insufficient funds will
be available from these revenues, after refund values are paid to
processors and the reduction is made in the processing fee pursuant
to subdivision (e) of Section 14575 for these containers, the
department may determine not to calculate a commingled rate
pursuant to this subdivision.

(c) Notwithstanding subdivision (a) or (b), for purposes of the
2014, 2015, and 2016 calendar years, the department shall not
recalculate commingled rates paid to recycling centers for beverage
containers, and recycling centers shall not pay any refund value
at a commingled rate for beverage containers.

SEC. 8.  

Section 14550 of the Public Resources Code is
amended to read:

14550.  

(a) (1) Every processor shall report to the department
for each month the amount of empty beverage containers, by
material type and weight of container or material, excluding
refillable beverage containers, received from recycling centers and
curbside programs for recycling, and the scrap value paid for glass,
PET, and bimetal containers and any beverage container that is
assessed a processing fee. Every processor shall also report to the
department for each month the amount of other postfilled
aluminum, glass, and plastic food and drink packaging materials
sold filled to consumers in this state and returned for recycling.
These reports shall be electronically submitted within 10 days after
each month, in the form and manner that the department may
prescribe.

(2) The department shall treat all information reported pursuant
to this section by a processor as commercial or financial
information subject to the procedures established pursuant to
Section 14554.

(b) Every distributor who sells or offers for sale in this state
beverages in aluminum beverage containers, nonaluminum metal
beverage containers, glass beverage containers, plastic beverage
containers, or other beverage containers, including refillable
beverage containers of these types, shall report to the department
for each month the number of beverages sold in these beverage
containers in this state that are labeled pursuant to Section 14561,
by material type and size and weight of container or any other
method as the department may prescribe. These reports shall be
submitted by the day when payment is due, consistent with the
applicable payment schedule specified in subdivision (a) of Section
14574, in the form and manner that the department may prescribe.

(c) Every distributor who sells or offers for sale in this state
beverages in refillable beverage containers and who pays a refund
value to distributors, dealers, or consumers who return these
containers for refilling, shall report to the department for each
month the number of these beverage containers returned empty to
be refilled, by material type and size of container or any other
method that the department may prescribe. These reports shall be
submitted by the day when payment is due, consistent with the
schedule specified in subdivision (a) of Section 14574, in the form
and manner that the department may prescribe.

(d) Notwithstanding subdivision (b), a distributor who elects to
make an annual payment pursuant to subdivision (b) of Section
14574 may, upon the approval of the department, submit the reports
required by this section annually to the department. The reports
shall accompany the annual payment submitted pursuant to Section
14574.

SEC. 9.  

Section 14553 of the Public Resources Code is
amended to read:

14553.  

(a) (1) All reports, claims, and other information
required pursuant to this division and submitted to the department
shall be complete, legible, and accurate, as determined by the
department by regulation, and shall be signed, by an officer,
director, managing employee, or owner of the certified recycling
center, processor, distributor, beverage manufacturer, container
manufacturer, or other entity.

(2) The department shall make available a process for
electronically submitting all reports, claims, and other information
required pursuant to this division.

(3) All reports, claims, and other information required pursuant
to this division shall be electronically submitted to the department
pursuant to the process made available by the department.

(b) The department may inspect the operations, processes, and
records of any entity required to submit a report to the department
pursuant to this division to determine the accuracy of the report
and compliance with the requirements of this division.

(c) A violation of this section is subject to the penalties specified
in Section 14591.1.

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SEC. 10.  

Section 14560 of the Public Resources Code is
amended to read:

14560.  

(a) (1) Except as provided in subdivisions (b) and (c),
a beverage distributor shall pay the department, for deposit into
the fund, a redemption payment of four cents ($0.04) for a beverage
container with a capacity of less than 24 fluid ounces sold or
offered for sale in this state by the distributor.

(2) A beverage container with a capacity of 24 fluid ounces or
more shall be considered as two beverage containers for purposes
of redemption payments paid pursuant to paragraph (1).

(3) Except as provided in subdivision (b), a beverage container
sold or offered for sale in this state has a refund value of four cents
($0.04) if the beverage container has a capacity of less than 24
fluid ounces and eight cents ($0.08) if the beverage container has
a capacity of 24 fluid ounces or more.

(b) (1) Except as provided in subdivision (c), if the aggregate
recycling rate reported pursuant to Section 14551 for all beverage
containers subject to this division is less than 75 percent for the
12-month reporting period from January 1 to December 31 for any
calendar year, a beverage distributor shall pay the department, for
deposit into the fund, a redemption payment of five cents ($0.05)
for a beverage container with a capacity of less than 24 fluid ounces
sold or offered for sale in this state by a dealer and ten cents ($0.10)
for a beverage container with a capacity of 24 fluid ounces or more.

(2) If the aggregate recycling rate reported pursuant to Section
14551 for all beverage containers subject to this division is less
than 75 percent for the 12-month reporting period from January 1
to December 31 for any calendar year, a beverage container sold
or offered for sale in this state has a refund value of five cents
($0.05) if the beverage container has a capacity of less than 24
fluid ounces and ten cents ($0.10) if the beverage container has a
capacity of 24 fluid ounces or more.

(c) (1) A distributor of voluntary beverage containers shall pay
the department, for deposit into the Voluntary Beverage Container
Fund, a redemption payment of five cents ($0.05) for a voluntary
beverage container with a capacity of less than 24 fluid ounces
sold or offered for sale in this state by that distributor.

(2) A voluntary beverage container with a capacity of 24 fluid
ounces or more shall be considered as two beverage containers for
purposes of redemption payments paid pursuant to paragraph (1).

(3) A voluntary beverage container sold or offered for sale in
this state has a refund value of five cents ($0.05) if the voluntary
beverage container has a capacity of less than 24 fluid ounces and
ten cents ($0.10) if the voluntary beverage container has a capacity
of 24 fluid ounces or more.

(d) This section does not apply to a refillable beverage container.

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begin insert

begin insert SEC. 10. end insert   

end insert

begin insert Section 14560.2 is added to the end insert begin insert Public Resources
Code end insert begin insert , to read: end insert

begin insert

begin insert 14560.2. end insert   

(a) A distributor of voluntary beverage containers
shall pay the department, for deposit into the Voluntary Beverage
Container Fund, a redemption payment of five cents ($0.05) for a
voluntary beverage container with a capacity of less than 24 fluid
ounces sold or offered for sale in this state by that distributor.

(b) A voluntary beverage container with a capacity of 24 fluid
ounces or more shall be considered as two beverage containers
for purposes of redemption payments paid pursuant to subdivision
(a).

(c) A voluntary beverage container sold or offered for sale in
this state has a refund value of five cents ($0.05) if the voluntary
beverage container has a capacity of less than 24 fluid ounces and
ten cents ($0.10) if the voluntary beverage container has a capacity
of 24 fluid ounces or more.

end insert

SEC. 11.  

Section 14560.5 of the Public Resources Code is
amended to read:

14560.5.  

(a) (1) Except as provided in paragraph (2), and
subdivision (e), the invoice or other form of accounting of the
transaction submitted by a beverage distributor of beverages to a
dealer shall separately identify the amount of any redemption
payment imposed on beverage containers pursuant to Section
14560 and the separate identification of the invoice or other form
of accounting of the transaction shall not combine or include the
gross wholesale price with the redemption payment but shall
separately state the gross amount of the redemption payment for
each type of container included in each delivery.

(2) The invoice or other form of accounting of the transaction
submitted by any distributor of beer and malt beverages or wine
or distilled spirit coolers to a dealer may separately identify the
portion of the gross wholesale price attributable to any redemption
payment imposed on beverage containers pursuant to Section
14560 and the separate identification of the invoice or other form
of accounting of the transaction may separately state the gross
amount of the redemption payment for each type of container
included in each delivery. The invoice or other form of accounting
of this transaction may separately identify the portion of the gross
wholesale price attributable to the redemption payment.

(3) Notwithstanding Section 14541, the department shall
randomly inspect beverage distributor invoices or other forms of
accounting to ensure compliance with this subdivision. However,
an unintentional error in addition or subtraction on an invoice or
other form of accounting by a route driver of a distributor shall
not be deemed a violation of this subdivision.

(4) For the purposes of this subdivision, the term “type of
container” includes the amount of the redemption payment on
containers under 24 ounces and on containers 24 ounces or more.

(b) To the extent technically and economically feasible, a dealer
may separately identify the amount of any redemption payment
on the customer cash register receipt provided to the consumer begin delete , end delete
by the dealer begin delete , end delete that is applied to the purchase of a beverage
container.

(c) (1) Except as provided in paragraph (6), a dealer shall
separately identify the amount of any redemption payment imposed
on a beverage container in all advertising of beverage products
and on the shelf labels of the dealer’s establishment. The separate
identification shall be accomplished by stating one of the following:

(A) The price of the beverage product plus a descriptive term,
as described in paragraph (2).

(B) The price of the beverage product plus the amount of the
applicable redemption payment and a descriptive term, as described
in paragraph (2).

(C) The price of the beverage product plus the amount of the
applicable redemption payment, a descriptive term, as described
in paragraph (2), and the total of these two amounts.

(2) For purposes of paragraph (1), the redemption payment shall
be identified by one of the following descriptive terms: “California
Redemption Value,” “CA Redemption Value,” “CRV,” “California
Cash Refund,” “CA Cash Refund,” or any other message specified
in Section 14561.

(3) A dealer shall not include the redemption payment in the
total price of a beverage container in any advertising or on the
shelf of the dealer’s establishment.

(4) This subdivision applies only to a dealer at a dealer location
with a sales and storage area totaling more than 4,000 square feet.

(5) The penalties specified in Sections 14591 and 14591.1 shall
not be applied to a person who violates this subdivision.

(6) This subdivision does not apply to a voluntary beverage
container.

(d) With regard to the sale of beer and other malt beverages or
wine and distilled spirits cooler beverages, any amount of
redemption payment imposed by this division is subject to Section
25509 of the Business and Professions Code.

(e) (1) The invoice or other form of accounting of the
transaction submitted by a beverage distributor of voluntary
beverages to a dealer may separately identify the amount of any
redemption payment imposed on the voluntary beverage container
pursuant to Section 14560 and the separate identification of the
invoice or other form of accounting of the transaction may
separately state the gross amount of the redemption payment for
each type of voluntary beverage container included in each
delivery.

(2) A dealer may separately identify the amount of any
redemption payment imposed on a voluntary beverage container
in all advertising of beverage products and on the shelf labels of
the dealer’s establishment.

SEC. 12.  

Section 14571.2 of the Public Resources Code is
amended to read:

14571.2.  

(a) The department shall continuously assist dealers
and recyclers to establish certified recycling locations within each
convenience zone. This assistance includes, but is not limited to,
providing information to companies and organizations interested
in operating recycling in the convenience zone; providing dealers
with names of prospective recyclers for the convenience zone and
providing recyclers with the names of dealers in need of a recycler
for a convenience zone; providing dealers and recyclers with
information on grants, advertising funds, and other resources
available; and providing recyclers with advice regarding appearance
and image of the recycling center and the efficient handling and
transportation of recycled beverage containers.

(b) The department shall, when implementing this section,
provide assistance and incentives that will reduce the number of
unserved convenience zones to less than 5 percent of the total
amount of convenience zones in this state by January 1, 2015.

begin delete

SEC. 13.  

Section 14571.5 of the Public Resources Code is
amended to read:

14571.5.  

The department may, in a rural region, as identified
pursuant to subparagraph (A) of paragraph (2) of subdivision (b)
of Section 14571, upon petition by an interested person, do either
of the following:

(a) The department may, in a rural region, as identified pursuant
to subparagraph (A) of paragraph (2) of subdivision (b) of Section
14571, upon petition by an interested person, increase a
convenience zone to include the area within a three-mile radius of
a supermarket, if the expanded convenience zone would then be
served by a single existing certified recycling center or location.

(b) This subdivision applies only to a convenience zone that is
otherwise not being served by a certified recycling center or
location meeting the requirements of Section 14571.

end delete

begin delete SEC. 14. end delete
begin insert SEC. 13. end insert   

Section 14571.6.5 is added to the Public Resources
Code, to read:

14571.6.5.  

(a) Notwithstanding Section 14571, the department
may allow the operator of a certified recycling center to be open
for business for less than 30 hours per week, but not less than 20
hours per week, if the certified recycling center is located in a
convenience zone that has been unserved for at least six continuous
months and the convenience zone is identified by the department
as an unserved convenience zone.

(b) A certified recycling center that is authorized by the
department pursuant to subdivision (a) shall be eligible to apply
for handling fees pursuant to Section 14585, and a processor shall
pay refund values, administrative costs, and processing payments
to the certified recycling center pursuant to subdivision (a) of
Section 14573.5 in the same manner as to a certified recycling
center operating in compliance with Section 14571.

(c) The department may authorize not more than 120 recycling
centers in unserved convenience zones pursuant to this section.

begin delete SEC. 15. end delete
begin insert SEC. 14. end insert   

Section 14571.8 of the Public Resources Code is
amended to read:

14571.8.  

(a) (1) No lease entered into by a dealer after January
1, 1987, may contain a leasehold restriction that prohibits or results
in the prohibition of the establishment of a recycling location.

(2) A person shall not enter into a lease with a supermarket on
or after January 1, 2014, that prohibits the operation of a certified
recycling center or inhibits the ability of that supermarket to operate
as, or contract with, a certified recycling center.

(b)  begin delete Except as provided in subdivision (h), the end delete begin insert The end insert director may
grant an exemption from the requirements of Section 14571 for
an individual convenience zone only after the department solicits
public testimony on whether or not to provide an exemption from
Section 14571. The solicitation process shall be designed by the
department to ensure that operators of recycling centers, dealers,
and members of the public in the jurisdiction affected by the
proposed exemption are aware of the proposed exemption. After
evaluation of the testimony and any field review conducted, the
department shall base a decision to exempt a convenience zone on
one, or any combination, of the following factors:

(1) The exemption will not significantly decrease the ability of
consumers to conveniently return beverage containers for the
refund value to a certified recycling center redeeming all material
types.

(2) Except as provided in paragraph (5), the nearest certified
recycling center is within a reasonable distance of the convenience
zone being considered from exemption.

(3) The convenience zone is in the area of a curbside recycling
program that meets the criteria specified in Section 14509.5.

(4) The requirements of Section 14571 cannot be met in a
particular convenience zone due to local zoning or the dealer’s
leasehold restrictions for leases in effect on January 1, 1987, and
the local zoning or leasehold restrictions are not within the
authority of the department and the dealer. However, any lease
executed after January 1, 1987, shall meet the requirements
specified in subdivision (a).

(5) The convenience zone has redeemed less than 60,000
containers per month for the prior 12 months and, notwithstanding
paragraph (2), a certified recycling center is located within one
mile of the convenience zone that is the subject of the exemption.

(c) The department shall review each convenience zone in which
a certified recycling center was not located on January 1, 1996, to
determine the eligibility of the convenience zone under the
exemption criteria specified in subdivision (b).

(d) The total number of exemptions granted by the director
under this section shall not exceed 35 percent of the total number
of convenience zones identified pursuant to this section.

(e) The department may, on its own motion, or upon petition
by any interested person, revoke a convenience zone exemption
if either of the following occurs:

(1) The condition or conditions that caused the convenience
zone to be exempt no longer exists, and the department determines
that the criteria for an exemption specified in this section are not
presently applicable to the convenience zone.

(2) The department determines that the convenience zone
exemption was granted due to an administrative error.

(f) If an exemption is revoked and a recycling center is not
certified and operational in the convenience zone, the department
shall, within 10 days of the date of the decision to revoke, serve
all dealers in the convenience zone with the notice specified in
subdivision (a) of Section 14571.7.

(g) An exemption shall not be revoked when a recycling center
becomes certified and operational within an exempt convenience
zone unless either of the events specified in paragraphs (1) and (2)
of subdivision (e) occurs.

begin delete

(h) The director shall not grant an exemption pursuant to this
section if a certified recycling center will not be operating in a
convenience zone in which there is located a supermarket.

end delete

begin delete SEC. 16. end delete
begin insert SEC. 15. end insert   

Section 14573 of the Public Resources Code is
amended to read:

14573.  

(a) The department shall pay to a processor, for every
empty beverage container received by the processor from a certified
recycling center, curbside program, or dropoff or collection
program, upon presentation of a completed processor invoice
accompanied by an electronic shipping report from the supplier
of the material, in the form adopted by the department, the sum of
all of the following amounts:

(1) The refund value.

(2) Two and one-half percent of the refund value for
administrative costs.

(3) The processing payment established pursuant to Section
14575.

(b) The department shall make the payment required in
subdivision (a) within two working days of the date that the
department is notified of the delivery or within the time determined
by the department to be necessary and adequate. If the payment is
not made by the Controller to the certified processor within 20
working days of receipt of the claims schedule, the Controller shall
pay the processor interest at the current prime lending rate for any
period in excess of these 20 working days.

begin delete SEC. 17. end delete
begin insert SEC. 16. end insert   

Section 14574 of the Public Resources Code is
amended to read:

14574.  

(a) (1) A distributor of beverage containers shall pay
to the department electronically the redemption payment for every
beverage container, other than a refillable beverage container, sold
or transferred to a dealer, less 1.5 percent for the distributor’s
administrative costs.

(2) The payment made by a distributor shall be made not later
than the last day of the month following the sale. The distributor
shall make the payment in the form and manner that the department
prescribes.

(b) (1) Notwithstanding subdivision (a), if a distributor displays
a pattern of operation in compliance with this division and the
regulations adopted pursuant to this division, to the satisfaction of
the department, the distributor may make a single annual payment
of redemption payments, if the distributor’s projected redemption
payment for a calendar year totals less than seventy-five thousand
dollars ($75,000).

(2) An annual redemption payment made pursuant to this
subdivision is due and payable on or before February 1 for every
beverage container sold or transferred by the distributor to a dealer
in the previous calendar year.

(3) A distributor shall notify the department of its intent to make
an annual redemption payment pursuant to this subdivision on or
before January 31 of the calendar year for which the payment will
be due.

begin delete SEC. 18. end delete
begin insert SEC. 17. end insert   

Section 14575 of the Public Resources Code is
amended to read:

14575.  

(a) If any type of empty beverage container with a
refund value established pursuant to Section 14560 has a scrap
value less than the cost of recycling, the department shall, on
January 1, 2000, and on or before January 1 annually thereafter,
establish a processing fee and a processing payment for the
container by the type of the material of the container.

(b) The processing payment shall be at least equal to the
difference between the scrap value offered to a statistically
significant sample of recyclers by willing purchasers, and except
for the initial calculation made pursuant to subdivision (d), the
sum of both of the following:

(1) The actual cost for certified recycling centers, excluding
centers receiving a handling fee, of receiving, handling, storing,
transporting, and maintaining equipment for each container sold
for recycling or, only if the container is not recyclable, the actual
cost of disposal, calculated pursuant to subdivision (c). The
department shall determine the statewide weighted average cost
to recycle each beverage container type, which shall serve as the
actual recycling costs for purposes of paragraph (2) of subdivision
(c), by conducting a survey of the costs of a statistically significant
sample of certified recycling centers, excluding those recycling
centers receiving a handling fee, for receiving, handling, storing,
transporting, and maintaining equipment.

(2) A reasonable financial return for recycling centers.

(c) The department shall base the processing payment pursuant
to this section upon all of the following:

(1) Except as provided in paragraph (2), for calculating
processing payments that will be in effect on and after January 1,
2004, the department shall determine the actual costs for certified
recycling centers, every second year, pursuant to paragraph (1) of
subdivision (b). The department shall adjust the recycling costs
annually to reflect changes in the cost of living, as measured by
the Bureau of Labor Statistics of the United States Department of
Labor or a successor agency of the United States government.

(2) On and after January 1, 2010, the department shall use the
most recently published, measured actual costs of recycling for a
specific beverage material type if the department determines the
number of beverage containers for that material type that is returned
for recycling pursuant to Section 14551, based on the most recently
published calendar year number of beverage containers returned
for recycling, is less than 5 percent of the total number of beverage
containers returned for recycling for all material types. The
department shall determine the actual recycling cost to be used for
calculating processing payments for those beverage containers in
the following manner:

(A) The department shall adjust the costs of recycling that
material type every second year by the percentage change in the
most recently measured cost of recycling HDPE plastic beverage
containers, as determined by the department. The department shall
use the percentage change in costs of recycling HDPE plastic
beverage containers for this purpose, even if HDPE plastic
beverage containers are less than 5 percent of the total volume of
returned beverage containers.

(B) The department shall adjust the recycling costs annually for
that material type to reflect changes in the cost of living, as
measured by the Bureau of Labor Statistics of the United States
Department of Labor or a successor agency of the United States
government.

(d) Except as specified in subdivision (e), the actual processing
fee paid by a beverage manufacturer or distributor of voluntary
beverage containers shall equal 65 percent of the processing
payment calculated pursuant to subdivision (b).

(e) Except as provided in subdivision (k), the department,
consistent with Section 14581 and subject to the availability of
funds, shall reduce the processing fee paid by beverage
manufacturers by expending funds in each material processing fee
account, in the following manner:

(1) On January 1, 2005, and annually thereafter, the processing
fee shall equal the following amounts:

(A) Ten percent of the processing payment for a container type
with a recycling rate equal to or greater than 75 percent.

(B) Eleven percent of the processing payment for a container
type with a recycling rate equal to or greater than 65 percent, but
less than 75 percent.

(C) Twelve percent of the processing payment for a container
type with a recycling rate equal to or greater than 60 percent, but
less than 65 percent.

(D) Thirteen percent of the processing payment for a container
type with a recycling rate equal to or greater than 55 percent, but
less than 60 percent.

(E) Fourteen percent of the processing payment for a container
type with a recycling rate equal to or greater than 50 percent, but
less than 55 percent.

(F) Fifteen percent of the processing payment for a container
type with a recycling rate equal to or greater than 45 percent, but
less than 50 percent.

(G) Eighteen percent of the processing payment for a container
type with a recycling rate equal to or greater than 40 percent, but
less than 45 percent.

(H) Twenty percent of the processing payment for a container
type with a recycling rate equal to or greater than 30 percent, but
less than 40 percent.

(I) Sixty-five percent of the processing payment for a container
type with a recycling rate less than 30 percent.

(2) The department shall calculate the recycling rate for purposes
of paragraph (1) based on the 12-month period ending on June 30
that directly precedes the date of the January 1 processing fee
determination.

(f) Not more than once every three months, the department may
make an adjustment in the amount of the processing payment
established pursuant to this section notwithstanding any change
in the amount of the processing fee established pursuant to this
section, for any beverage container, if the department makes the
following determinations:

(1) The statewide scrap value paid by processors for the material
type for the most recent available 12-month period directly
preceding the quarter in which the processing payment is to be
adjusted is 5 percent more or 5 percent less than the average scrap
value used as the basis for the processing payment currently in
effect.

(2) Funds are available in the processing fee account for the
material type.

(3) Adjusting the processing payment is necessary to further
the objectives of this division.

(g) (1) Except as provided in paragraphs (2) (3), and begin delete (4) , end delete begin insert (4), end insert
every beverage manufacturer shall pay to the department the
applicable processing fee for each container sold or transferred to
a distributor or dealer within 40 days of the sale in the form and
in the manner which the department may prescribe.

(2) (A) Notwithstanding Section 14506, with respect to the
payment of processing fees for beer and other malt beverages
manufactured outside the state, the beverage manufacturer shall
be deemed to be the person or entity named on the certificate of
compliance issued pursuant to Section 23671 of the Business and
Professions Code. If the department is unable to collect the
processing fee from the person or entity named on the certificate
of compliance, the department shall give written notice by certified
mail, return receipt requested, to that person or entity. The notice
shall state that the processing fee shall be remitted in full within
30 days of issuance of the notice or the person or entity shall not
be permitted to offer that beverage brand for sale within the state.
If the person or entity fails to remit the processing fee within 30
days of issuance of the notice, the department shall notify the
Department of Alcoholic Beverage Control that the certificate
holder has failed to comply, and the Department of Alcoholic
Beverage Control shall prohibit the offering for sale of that
beverage brand within the state.

(B) The department shall enter into a contract with the
Department of Alcoholic Beverage Control, pursuant to Section
14536.5, concerning the implementation of this paragraph, which
shall include a provision reimbursing the Department of Alcoholic
Beverage Control for its costs incurred in implementing this
paragraph.

(3) (A) Notwithstanding paragraph (1), if a beverage
manufacturer displays a pattern of operation in compliance with
this division and the regulations adopted pursuant to this division,
to the satisfaction of the department, the beverage manufacturer
may make a single annual payment of processing fees, if the
beverage manufacturer meets either of the following conditions:

(i) If the redemption payment and refund value is not increased
pursuant to paragraph (3) of subdivision (a) of Section 14560, the
beverage manufacturer’s projected processing fees for a calendar
year total less than ten thousand dollars ($10,000).

(ii) If the redemption payment and refund value is increased
pursuant to paragraph (3) of subdivision (a) of Section 14560, the
beverage manufacturer’s projected processing fees for a calendar
year total less than fifteen thousand dollars ($15,000).

(B) An annual processing fee payment made pursuant to this
paragraph is due and payable on or before February 1 for every
beverage container sold or transferred by the beverage
manufacturer to a distributor or dealer in the previous calendar
year.

(C) A beverage manufacturer shall notify the department of its
intent to make an annual processing fee payment pursuant to this
paragraph on or before January 31 of the calendar year for which
the payment will be due.

(4) A distributor of voluntary beverage containers shall pay to
the department the applicable processing fee for each container
sold or transferred to a dealer within 40 days of the sale in the form
and in the manner that the department may prescribe.

(5) The department shall pay the processing payments on
redeemed containers to processors, in the same manner as it pays
refund values pursuant to Sections 14573 and 14573.5. The
processor shall pay the recycling center the entire processing
payment representing the actual costs and financial return incurred
by the recycling center, as specified in subdivision (b).

(h) When assessing processing fees pursuant to subdivision (a),
the department shall assess the processing fee on each container
sold, as provided in subdivisions (d) and (e), by the type of material
of the container, assuming that every container sold will be
redeemed for recycling, whether or not the container is actually
recycled.

(i)  begin delete (1) end delete begin delete   end delete begin delete Except as provided in paragraph (2), a end delete begin insert A end insert 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.

begin delete

(2) This subdivision does not apply to a voluntary beverage
container.

end delete

(j) Except as provided in subdivision (k), if, at the end of any
calendar year for which glass recycling rates equal or exceed 45
percent and sufficient surplus funds remain in the glass processing
fee account established by the department pursuant to subparagraph
(A) of paragraph (5) of subdivision (a) of Section 14581 to make
the reduction pursuant to this subdivision or if, at the end of any
calendar year for which PET recycling rates equal or exceed 45
percent and sufficient surplus funds remain in the PET processing
fee account established by the department pursuant to subparagraph
(A) of paragraph (5) of subdivision (a) of Section 14581 begin insert to end insert make
the reduction pursuant to this subdivision, the department shall
use these surplus funds in the respective processing fee accounts
in the following calendar year to reduce the amount of the
processing fee that would otherwise be due from glass or PET
beverage manufacturers pursuant to this subdivision.

(1) The department shall reduce the glass or PET processing
fee amount pursuant to this subdivision in addition to any reduction
for which the glass or PET beverage container qualifies under
subdivision (e).

(2) The department shall determine the processing fee reduction
by dividing two million dollars ($2,000,000) from each processing
fee account by an estimate of the number of containers sold or
transferred to a distributor during the previous calendar year, based
upon the latest available data.

(k) The department shall reduce the processing fee for voluntary
beverage containers for the following calendar year if, at the end
of the calendar year, the department determines that the recycling
rates for voluntary beverage containers equal or exceed 45 percent
and there are surplus funds at the end of the previous calendar year
in the processing fee account established by the department
pursuant to subdivision (c) of Section 14580.5, for those containers.

begin delete SEC. 19. end delete
begin insert SEC. 18. end insert   

Section 14580.5 is added to the Public Resources
Code, to read:

14580.5.  

(a) Except as provided in subdivision (d), the
department shall deposit all amounts paid as redemption payments
by distributors for voluntary beverage containers pursuant to
subdivision (c) of Section 14560 into the Voluntary Beverage
Container Fund, which is hereby created in the State Treasury.
Notwithstanding Section 13340 of the Government Code, the
money in the Voluntary Beverage Container Fund is hereby
continuously appropriated to the department for expenditure
without regard to fiscal year for the following purposes:

(1) The payment of refund values and administrative fees to
processors for voluntary beverage containers pursuant to Section
14573.

(2) For a reserve for contingencies, which shall not be greater
than an amount equal to 5 percent of the total amount paid for
voluntary beverage containers to processors pursuant to Section
14573 during the preceding calendar year, plus the interest earned
on that amount.

(b) The money in the Voluntary Beverage Container Fund may
be expended by the department for the administration of this
division only upon appropriation by the Legislature.

(c) The department shall establish a separate processing fee
account in the Voluntary Beverage Container Fund for voluntary
beverage containers and all amounts paid as processing fees for
those voluntary beverage containers shall be deposited in that
account. Notwithstanding Section 13340 of the Government Code,
the moneys in that processing fee account are hereby continuously
appropriated to the department for expenditure without regard to
fiscal years, for purposes of making processing payments for
voluntary beverage containers pursuant to this division.

(d) The department shall, once every three months, set aside
funds estimated to be needed for expenditures authorized pursuant
to subdivisions (a) and (b). Notwithstanding Section 13340 of the
Government Code, those remaining funds are hereby continuously
appropriated to the department, without regard to fiscal year for
the following purposes:

(1) The payment of handling fees for voluntary beverage
containers, pursuant to Section 14585.

(2) Payments for the collection of voluntary beverage containers
by curbside programs and neighborhood dropoff programs pursuant
to Section 14549.6.

begin delete SEC. 20. end delete
begin insert SEC. 19. end insert   

Section 14581 of the Public Resources Code is
amended to read:

14581.  

(a) Subject to the availability of funds and in
accordance with subdivision (c), the department shall expend the
moneys set aside in the fund, pursuant to subdivision (c) of Section
14580, for the purposes of this section in the following manner:

(1) For each fiscal year, the department may expend the amount
necessary to make the required handling fee payment pursuant to
Section 14585.

(2) Fifteen million dollars ($15,000,000) shall be expended
annually for payments for curbside programs and neighborhood
dropoff programs pursuant to Section 14549.6.

(3) (A) Twenty-one million dollars ($21,000,000), plus the
proportional share of the cost-of-living adjustment, as provided in
subdivision (b), shall be expended annually in the form of grants
for beverage container litter reduction programs and recycling
programs issued to either of the following:

(i) Certified community conservation corps that were in
existence on September 30, 1999, or that are formed subsequent
to that date, that are designated by a city or a city and county to
perform litter abatement, recycling, and related activities, if the
city or the city and county has a population, as determined by the
most recent census, of more than 250,000 persons.

(ii) Community conservation corps that are designated by a
county to perform litter abatement, recycling, and related activities,
and are certified by the California Conservation Corps as having
operated for a minimum of two years and as meeting all other
criteria of Section 14507.5.

(B) The grants provided pursuant to this paragraph shall not
comprise more than 75 percent of the annual budget of a
community conservation corps.

begin delete

(C) For the 2009-10 fiscal year only, the eight million two
hundred fifty thousand dollars ($8,250,000) appropriated to the
California Conservation Corps for certified local conservation
corps by Item 3340-101-0133 of Sec. 2.00 of the 2009-10 Budget
Act, as added by Section 166 of Chapter 1 of the Fourth
Extraordinary Session of the Statutes of 2009, shall be in addition
to the amounts expended pursuant to this paragraph.

end delete

(4) (A) Ten million five hundred thousand dollars ($10,500,000)
may be expended annually for payments of five thousand dollars
($5,000) to cities and ten thousand dollars ($10,000) for payments
to counties for beverage container recycling and litter cleanup
activities, or the department may calculate the payments to counties
and cities on a per capita basis, and may pay whichever amount
is greater, for those activities.

(B) Eligible activities for the use of these funds may include,
but are not necessarily limited to, support for new or existing
curbside recycling programs, neighborhood dropoff recycling
programs, public education promoting beverage container
recycling, litter prevention, and cleanup, cooperative regional
efforts among two or more cities or counties, or both, or other
beverage container recycling programs.

(C) These funds shall not be used for activities unrelated to
beverage container recycling or litter reduction.

(D) To receive these funds, a city, county, or city and county
shall fill out and return a funding request form to the department.
The form shall specify the beverage container recycling or litter
reduction activities for which the funds will be used.

(E) The department shall annually prepare and distribute a
funding request form to each city, county, or city and county. The
form shall specify the amount of beverage container recycling and
litter cleanup funds for which the jurisdiction is eligible. The form
shall not exceed one double-sided page in length, and may be
submitted electronically. If a city, county, or city and county does
not return the funding request form within 90 days of receipt of
the form from the department, the city, county, or city and county
is not eligible to receive the funds for that funding cycle.

(F) For the purposes of this paragraph, per capita population
shall be based on the population of the incorporated area of a city
or city and county and the unincorporated area of a county. The
department may withhold payment to any city, county, or city and
county that has prohibited the siting of a supermarket site, caused
a supermarket site to close its business, or adopted a land use policy
that restricts or prohibits the siting of a supermarket site within its
jurisdiction.

(5) (A) The department shall expend the amount necessary to
pay the processing payment established pursuant to Section 14575.
The department shall establish separate processing fee accounts
in the fund for each beverage container material type for which a
processing payment and processing fee are calculated pursuant to
Section 14575, or for which a processing payment is calculated
pursuant to Section 14575 and a voluntary artificial scrap value is
calculated pursuant to Section 14575.1, into which account shall
be deposited both of the following:

(i) All amounts paid as processing fees for each beverage
container material type pursuant to Section 14575.

(ii) Funds equal to the difference between the amount in clause
(i) and the amount of the processing payments established in
subdivision (b) of Section 14575, and adjusted pursuant to
paragraph (2) of subdivision (c) of, and subdivision (f) of, Section
14575, to reduce the processing fee to the level provided in
subdivision (e) of Section 14575, or to reflect the agreement by a
willing purchaser to pay a voluntary artificial scrap value pursuant
to Section 14575.1.

(B) Notwithstanding Section 13340 of the Government Code,
the moneys in each processing fee account are hereby continuously
appropriated to the department for expenditure without regard to
fiscal years, for purposes of making processing payments pursuant
to Section 14575.

(C) Notwithstanding the other provisions of this section and
Section 14575, for the 2010 and 2011 calendar years, the total
amount that the department may expend to reduce the amount of
processing fees for each container type shall not exceed the total
amount expended to reduce processing fees in the 2008 calendar
year.

(6)  begin delete (A) end delete begin delete   end delete 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.

begin delete

(B) Notwithstanding subdivision (f), the department shall not
expend funds pursuant to this paragraph for the 2010 and 2011
calendar years.

end delete

(7) Up to ten million dollars ($10,000,000) may be expended
annually by the department for quality incentive payments for
empty glass beverage containers pursuant to Section 14549.1.

(8) (A) Up to ten million dollars ($10,000,000) may be
expended annually by the department for market development
payments for empty plastic beverage containers pursuant to Section
14549.2, until January 1, 2017.

(B) In addition to the amount specified in subparagraph (A),
the department may expend the amount calculated pursuant to
subparagraph (C) for market development payments for empty
plastic beverage containers pursuant to Section 14549.2.

(C) The department shall calculate the amount authorized for
expenditure pursuant to subparagraph (B) in the following manner:

(i) The department shall determine, on or before January 1,
2012, and annually thereafter, whether the amount of funds
estimated to be necessary pursuant to clause (ii) of subparagraph
(A) of paragraph (5) for deposit to a processing fee account
established by the department for plastic beverage containers to
make processing payments for plastic beverage containers for the
current calendar year is less than the total amount of funds that
were estimated to be necessary the previous calendar year pursuant
to clause (ii) of subparagraph (A) of paragraph (5) for deposit to
that processing fee account.

(ii) If the amount estimated to be necessary for the current
calendar year, as specified in clause (i), is less than the amount
estimated to be necessary for the previous calendar year, the
department shall calculate the amount of that difference.

(iii) The department shall expend an amount that is not greater
than 50 percent of the amount calculated pursuant to clause (ii)
for purposes of subparagraph (B).

(iv) If the department determines that the amount of funds
authorized for expenditure pursuant to this subparagraph is not
needed to make plastic market development payments pursuant to
subparagraph (B) in the calendar year for which that amount is
allocated, the department may expend those funds during the
following year.

(v) If the department determines that there are insufficient funds
to both make the market development payments pursuant to
subparagraph (B) and to deposit the amount required by clause (ii)
of subparagraph (A) of paragraph (5), for purposes of making the
processing payments and reducing the processing fees pursuant to
Section 14575 for plastic beverage containers, the department shall
suspend the implementation of this subparagraph and subparagraph
(B).

(D) Subparagraphs (B) and (C) shall remain operative only until
January 1, 2017.

(b) The fifteen million dollars ($15,000,000) that is set aside
pursuant to paragraph (3) of subdivision (a) is a base amount that
the department shall adjust annually to reflect any increases or
decreases in the cost of living, as measured by the Department of
Labor, or a successor agency, of the federal government.

(c) (1) If the department determines, pursuant to a review made
pursuant to Section 14556, that there may be inadequate funds to
pay the payments required by this division, the department shall
immediately notify the appropriate policy and fiscal committees
of the Legislature regarding the inadequacy.

(2) On or before 180 days, but not less than 80 days, after the
notice is sent pursuant to paragraph (1), the department may reduce
or eliminate expenditures, or both, from the funds as necessary,
according to the procedure set forth in subdivision (d).

(d) If the department determines that there are insufficient funds
to make the payments specified pursuant to this section and Section
14575, the department shall reduce all payments proportionally.

(e) Prior to making an expenditure pursuant to paragraph (6) of
subdivision (a), the department shall convene an advisory
committee consisting of representatives of the beverage industry,
beverage container manufacturers, environmental organizations,
the recycling industry, nonprofit organizations, and retailers to
advise the department on the most cost-effective and efficient
method of the expenditure of the funds for that education and
information campaign.

begin delete

(f) The department shall not make any payments for voluntary
beverage containers pursuant to this section.

end delete

begin delete SEC. 21. end delete
begin insert SEC. 20. end insert   

Section 14583 of the Public Resources Code is
amended to read:

14583.  

(a)  Notwithstanding Section 14581, begin delete on and after July
1, 2012, end delete the department shall not make any payments, grants, or
loans, as provided in that section, to a city, county, or city and
county, if the city, county, or city and county has adopted or is
enforcing a land use restriction that prevents the siting or operation
of a certified recycling center at a supermarket site, as defined in
Section 14526.6, as may be required pursuant to Section 14571.

(b) A city or county that receives any revenue pursuant to the
Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5
(commencing with Section 7200) of Division 2 of the Revenue
and Taxation Code) from a transaction conducted by a supermarket
shall not prohibit the siting of a certified recycling center in the
parking lot of a supermarket.

begin delete SEC. 22. end delete
begin insert SEC. 21. end insert   

Section 14585 of the Public Resources Code is
amended to read:

14585.  

(a) The department shall adopt guidelines and methods
for paying handling fees to supermarket sites, nonprofit
convenience zone recyclers, or rural region recyclers to provide
an incentive for the redemption of empty beverage containers in
convenience zones. The guidelines shall include, but not be limited
to, all of the following:

(1) Handling fees shall be paid in the form and manner adopted
by the department. The department shall require that claims for
the handling fee be filed electronically with the department.

(2) Except as provided in paragraph (3), the department shall
determine the number of eligible containers per site for which a
handling fee will be paid in the following manner:

(A) Each eligible site’s combined monthly volume of glass and
plastic beverage containers shall be divided by the site’s total
monthly volume of all empty beverage container types.

(B) If the quotient determined pursuant to subparagraph (A) is
equal to, or more than, 10 percent, the total monthly volume of
the site shall be the maximum volume which is eligible for a
handling fee for that month.

(C) If the quotient determined pursuant to subparagraph (A) is
less than 10 percent, the department shall divide the volume of
glass and plastic beverage containers by 10 percent. That quotient
shall be the maximum volume that is eligible for a handling fee
for that month.

(3) The department shall determine the number of eligible
voluntary beverage containers per site for which a handling fee
will be paid in the following manner:

(A) Each eligible site’s combined monthly volume of voluntary
beverage containers shall be divided by the site’s total monthly
volume of all empty voluntary beverage containers.

(B) If the quotient determined pursuant to subparagraph (A) is
equal to, or more than, 10 percent, the total monthly volume of
the site shall be the maximum volume that is eligible for a handling
fee for that month.

(C) If the quotient determined pursuant to subparagraph (A) is
less than 10 percent, the department shall divide the volume of
voluntary beverage containers by 10 percent. That quotient shall
be the maximum volume that is eligible for a handling fee for that
month.

(4) (A) On and after September 25, 2012, and until March 1,
2013, the department shall pay a handling fee per eligible container
in the amount determined pursuant to subdivisions (f) and (g).

(B) On and after July 1, 2014, the department shall pay a
handling fee per eligible container in the amount determined
pursuant to subdivision (f).

(5) If the eligible volume in any given month would result in
handling fee payments that exceed the allocation of funds for that
month, as provided in subdivision (b), sites with higher eligible
monthly volumes shall receive handling fees for their entire eligible
monthly volume before sites with lower eligible monthly volumes
receive any handling fees.

(6) (A) If a dealer where a supermarket site, nonprofit
convenience zone recycler, or rural region recycler is located ceases
operation for remodeling or for a change of ownership, the operator
of that supermarket site begin insert , end insert nonprofit convenience zone recycler, or
rural region recycler shall be eligible to apply for handling fees
for that site for a period of three months following the date of the
closure of the dealer.

(B) Every supermarket site operator, nonprofit convenience
zone recycler, or rural region recycler shall promptly notify the
department of the closure of the dealer where the supermarket site,
nonprofit convenience zone recycler, or rural region recycler is
located.

(C) Notwithstanding subparagraph (A), any operator who fails
to provide notification to the department pursuant to subparagraph
(B) shall not be eligible to apply for handling fees.

(b) (1) Except as provided in paragraph (2), the department
shall not carryover unexpended monthly allocations for the
payment of handling fees over to a subsequent fiscal year for the
purpose of paying handling fees but may carry over those
allocations for any other purpose pursuant to Section 14581.

(2) The department shall not carryover unexpended monthly
allocations for the payment of handling fees for a voluntary
beverage container over to a subsequent fiscal year for the purpose
of paying handling fees but may carryover those allocations for
any other purpose pursuant to Section 14580.5.

(c) (1) The department shall not make handling fee payments
to more than one certified recycling center in a convenience zone.
If a dealer is located in more than one convenience zone, the
department shall offer a single handling fee payment to a
supermarket site located at that dealer. This handling fee payment
shall not be split between the affected zones. The department shall
stop making handling fee payments if another recycling center
certifies to operate within the convenience zone without receiving
payments pursuant to this section, if the department monitors the
performance of the other recycling center for 60 days and
determines that the recycling center is in compliance with this
division. Any recycling center that locates in a convenience zone,
thereby causing a preexisting recycling center to become ineligible
to receive handling fee payments, is ineligible to receive any
handling fee payments in that convenience zone.

(2) The department shall offer a single handling fee payment
to a rural region recycler located anywhere inside a convenience
zone, if that convenience zone is not served by another certified
recycling center and the rural region recycler does either of the
following:

(A) Operates a minimum of 30 hours per week in one
convenience zone.

(B) Serves two or more convenience zones, and meets all of the
following criteria:

(i) Is the only certified recycler within each convenience zone.

(ii) Is open and operating at least eight hours per week in each
convenience zone and is certified at each location.

(iii) Operates at least 30 hours per week in total for all
convenience zones served.

(d) The department may require the operator of a supermarket
site or rural region recycler receiving handling fees to maintain
records for each location where beverage containers are redeemed,
and may require the supermarket site or rural region recycler to
take any other action necessary for the department to determine
that the supermarket site or rural region recycler does not receive
an excessive handling fee.

(e) The department may determine and utilize a standard
container per pound rate, for each material type, for the purpose
of calculating volumes and making handling fee payments.

(f) (1) On or before January 1, 2008, and every two years
thereafter, the department shall conduct a survey pursuant to this
subdivision of a statistically significant sample of certified
recycling centers that receive handling fee payments to determine
the actual cost incurred for the redemption of empty beverage
containers by those certified recycling centers. The department
shall conduct these cost surveys in conjunction with the cost
surveys performed by the department pursuant to subdivision (b)
of Section 14575 to determine processing payments and processing
fees. The department shall include, in determining the actual costs,
only those allowable costs contained in the regulations adopted
pursuant to this division that are used by the department to conduct
cost surveys pursuant to subdivision (b) of Section 14575.

(2) Using the information obtained pursuant to paragraph (1),
the department shall then determine the statewide weighted average
cost incurred for the redemption of empty beverage containers,
per empty beverage container, at recycling centers that receive
handling fees.

(3) Except as provided in subdivision (g), the department shall
determine the amount of the handling fee to be paid for each empty
beverage container by subtracting the amount of the statewide
weighted average cost per container to redeem empty beverage
containers by recycling centers that do not receive handling fees
from the amount of the statewide weighted average cost per
container determined pursuant to paragraph (2).

(4) The department shall adjust the statewide average cost
determined pursuant to paragraph (2) for each beverage container
annually to reflect changes in the cost of living, as measured by
the Bureau of Labor Statistics of the United States Department of
Labor or a successor agency of the United States government.

(5) The cost information collected pursuant to this section at
recycling centers that receive handling fees shall not be used in
the calculation of the processing payments determined pursuant
to Section 14575.

(g) (1) On and after September 12, 2012, and until March 1,
2013, the per-container handling fee shall not be less than the
amount of the per-container handling fee that was in effect on July
1, 2011.

(2) The department may update the methodology and scrap
values used for calculating the handling fee from the most recent
cost survey if it finds that the handling fee resulting from the most
recent cost survey does not accurately represent the actual cost
incurred for the redemption of empty beverage containers by those
certified recycling centers.

(h) This section shall become inoperative on July 1, 2014, and,
as of January 1, 2015, is repealed, unless a later enacted statute,
that becomes operative on or before January 1, 2015, deletes or
extends the dates on which it becomes inoperative and is repealed.

begin delete SEC. 23. end delete
begin insert SEC. 22. end insert   

Section 14585 is added to the Public Resources Code,
to read:

14585.  

(a) The department shall adopt guidelines and methods
for paying handling fees to supermarket sites, nonprofit
convenience zone recyclers, and rural region recyclers to provide
an incentive for the redemption of empty beverage containers in
convenience zones. The guidelines shall include, but not be limited
to, all of the following:

(1) Handling fees shall be paid in the form and manner adopted
by the department. The department shall require that claims for
the handling fee be filed electronically as part of the shipping report
with the department.

(2) (A) If a dealer where a supermarket site, nonprofit
convenience zone recycler, or rural region recycler is located ceases
operation for remodeling or for a change of ownership, the operator
of that supermarket site, nonprofit convenience zone recycler, or
rural region recycler shall be eligible to apply for handling fees
for that site for a period of three months following the date of the
closure of the dealer.

(B) Every supermarket site operator, nonprofit convenience
zone recycler, or rural region recycler shall promptly notify the
department of the closure of the dealer where the supermarket site,
nonprofit convenience zone recycler, or rural region recycler is
located.

(C) Notwithstanding subparagraph (A), an operator who fails
to provide notification to the department pursuant to subparagraph
(B) shall not be eligible to apply for handling fees.

(b) (1) The department shall not make handling fee payments
to more than one certified recycling center in a convenience zone.

(A) If a dealer is located in more than one convenience zone,
the department shall offer a single handling fee payment to a
supermarket site located at that dealer. The department shall not
split the handling fee payment between the affected convenience
zones.

(B) The department shall stop making handling fee payments
if another recycling center is certified to operate within a
convenience zone and does not receive handling fees pursuant to
this section, and if the department monitors the performance of
the other certified recycling center for 60 days and determines that
the recycling center is in compliance with this division.

(C) A recycling center that locates in a convenience zone,
thereby causing a preexisting recycling center to become ineligible
to receive handling fee payments, is ineligible to receive any
handling fee payments in that convenience zone.

(2) The department shall pay a single handling fee to a rural
region recycler located anywhere inside a convenience zone, if
that convenience zone is not served by another certified recycling
center and the rural region recycler does either of the following:

(A) Operates a minimum of 30 hours per week in one
convenience zone.

(B) Serves two or more convenience zones, and meets all of the
following criteria:

(i) Is the only certified recycler within each convenience zone.

(ii) Is open and operating at least eight hours per week in each
convenience zone and is certified at each location.

(iii) Operates at least 30 hours per week in total for all
convenience zones served.

(c) The department may require the operator of a supermarket
site or rural region recycler receiving handling fees to maintain
records for each location where beverage containers are redeemed,
and may require the supermarket site or rural region recycler to
take any other action necessary for the department to determine
that the supermarket site or rural region recycler does not receive
an excessive handling fee.

(d) The department may determine and utilize a standard
container per pound rate, for each material type, for the purpose
of calculating volumes and making handling fee payments.

(e) (1) For beverage containers returned for recycling on and
after July 1, 2014, the handling fee shall equal the following
amounts:

(A) The amount of one and two hundred nineteen begin delete thousandths end delete
begin insert hundredths end insert of one cent begin delete ($0.001219) end delete begin insert ($0.01219) end insert per beverage
container for a recycling site handling begin delete less than ____ end delete begin insert fewer than
325,000 end insert beverage containers per month.

(B) The amount of five hundred eighty-one thousandths of one
cent ($0.00581) per container for a recycling site handling begin delete more
than ____ end delete begin insert 325,000 or more end insert beverage containers per month but begin delete less
than ____ end delete begin insert fewer than 572,000 end insert containers per month.

(C) The amount of five hundred twenty-two thousandths of one
cent ($0.00522) per beverage container for a recycling site handling
begin delete more than ____ end delete begin insert 572,000 or more end insert containers per month begin delete but less
than 335,000 containers per month end delete .

(2) For purposes of this subdivision, “recycling site” means a
single location of a supermarket site, nonprofit convenience zone
recycler, or rural region recycler.

(f) This section shall become operative on July 1, 2014.

begin delete SEC. 24. end delete
begin insert SEC. 23. end insert   

Division 12.5 (commencing with Section 17000) is
added to the Public Resources Code, to read:

 

Division 12.5.  Regulated Beverage Containers

 

Article 1.  Definitions

 

17000.  

For purposes of this division, the following definitions
shall apply:

(a) “Dealer” means a retail establishment that sells, or offers to
sell, regulated beverages in regulated beverage containers to
consumers. A lodging, eating, or drinking establishment, or soft
drink vending machine operator who engages in the sale of
regulated beverages in regulated beverage containers to consumers
shall not be deemed a dealer for the purposes of this division.

(b) “Department” means the Department of Resources Recycling
and Recovery.

(c) “Distributor” means a person who engages in the sale of
regulated beverages in regulated beverage containers to a dealer
in this state, including any manufacturer who engages in these
sales. “Distributor” includes a person who imports beverages from
outside of this state for sale to dealers or consumers in this state.

(d) “Recycle” or “recycled” means the reuse or refilling of empty
regulated beverage containers, or the process of sorting, cleansing,
treating, and reconstituting empty postfilled regulated beverage
containers for the purpose of using the altered form. “Recycle” or
“recycled” does not include merely sorting, shredding, stripping,
compressing, storing, landfilling with, or disposing of an empty
regulated beverage container.

(e) “Regulated beverage” means any of the following products:

(1) A beverage that otherwise meets the definition of beverage
for purposes of Section 14504 and is sold in a beverage container
that is not an aluminum beverage container, a glass beverage
container, a plastic beverage container, or a bimetal container.

(2) One hundred percent fruit juice in a container that is 46
ounces or more in volume.

(3) Vegetable juice in a container that is more than 16 ounces
in volume.

(f) “Regulated beverage container” means the individual,
separate bottle, can, jar, carton, or other receptacle, however
denominated, in which a regulated beverage is sold, and that is
constructed of metal, glass, or plastic, or other material, or a
combination of these materials. “Beverage container” does not
include cups or other similar open or loosely sealed receptacles.

 

Article 2.  Mandatory Takeback and Recycling System

 

17001.  

(a) Except as provided in Article 3 (commencing with
Section 17004), on and after January 1, 2014, a distributor shall
submit a plan to the department for the implementation of a
takeback and recycling system incorporating all of the following
elements:

(1) A description of how the distributor will obtain a written
agreement with each dealer to whom the regulated beverage is
sold that provides that the dealer will take back empty regulated
containers either inside the store or at a recycling location in the
dealer’s parking lot.

(2) A description of how the distributor will provide the
equipment for a recycling location that would be located in the
dealer’s parking lot.

(3) Provisions to ensure that every empty regulated beverage
container sold or distributed by the distributor that is returned to
a dealer is recycled.

(4) Provisions to ensure that not less than 80 percent of the
regulated beverage containers sold by the distributor in this state
are recycled.

(5) Provisions to ensure the regulated beverage containers sold
by the distributor are made from materials that contain no less than
35 percent postconsumer recycled content.

(b) The distributor shall implement the plan submitted to the
department and, on or before January 1, 2015, and annually
thereafter, demonstrate to the department, in a form and manner
specified by the department, both of the following:

(1) Not less than 80 percent of the containers of the regulated
beverages sold by the distributor in this state are recycled.

(2) The regulated beverage containers sold by the distributor
are made from materials containing no less than 35 percent
postconsumer recycled content.

17002.  

(a) The department may require a distributor to pay
the department an annual administrative fee. The department shall
set the fee at an amount that is adequate to cover the department’s
full costs of administering and enforcing this article.

(b) The department shall deposit the fees collected pursuant to
this section into the Regulated Beverage Account, which is hereby
established in the State Treasury. The department may expend the
moneys in begin insert the end insert Regulated Beverage Account, upon appropriation
by the Legislature, to cover the department’s costs to implement
this article.

17003.  

The department may adopt regulations, including
emergency regulations, to implement this article.

 

Article 3.  Voluntary Beverage Containers

 

17004.  

(a) In lieu of submitting and implementing a takeback
and recycling system pursuant to Article 2 (commencing with
Section 17001), a distributor may elect to pay a redemption
payment to the department pursuant to begin delete subdivision (c) of Section
14560 end delete begin insert Section 14560.2 end insert and otherwise comply with the requirements
of Division 12.1 (commencing with Section 14500).

(b) A regulated beverage container for which a distributor elects
to make the election specified in subdivision (a) is a voluntary
beverage container for purposes of Section 14528.2.

begin delete SEC. 25. end delete
begin insert SEC. 24. end insert   

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.