BILL NUMBER: AB 1001 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 8, 2013
AMENDED IN ASSEMBLY APRIL 3, 2013
INTRODUCED BY Assembly Member Gordon
( Coauthor: Assembly Member
Stone )
FEBRUARY 22, 2013
An act to amend Sections 14505, 14515.5, 14538, 14549.5, 14550,
14553, 14560, 14560.5, 14571.2, 14571.5,
14571.8, 14573, 14574, 14575, 14581, and 14583 ,
of, to amend, repeal, and add Section 14585 of, to add
Sections 14526.8, 14528.2, 14528.3, 14560.2, 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. A violation of the act is a
crime.
This bill would define the term "regulated beverage" as a beverage
that meets the definition of beverage under the act, but is sold in
a beverage container that is not one of those containers. The bill
would also include, as a regulated beverage, 100% fruit juice in a
container that is 46 ounces or more in volume and vegetable juice in
a container that is more than 16 ounces in volume.
The bill would require a distributor of regulated beverage
containers to submit a plan, by January 1, 2014, to the department
for the implementation of a takeback and recycling system
incorporating specified elements , to implement
the plan, and to annually demonstrate to the department that not less
than 80% of the regulated beverages sold by the distributor in this
state are recycled and that the regulated beverage containers sold by
the distributor are made from material containing not less than 35%
postconsumer recycled content. The bill would authorize the
department to require a distributor to pay an annual administrative
fee that would be required to be set at an amount that is adequate to
cover the department's full costs of administering and enforcing
this program. The bill would require the department to deposit the
fees into the Regulated Beverage Account, which the bill would
establish in the State Treasury. The bill would authorize the
department to expend the moneys in the Regulated Beverage Account,
upon appropriation by the Legislature, to cover the department's
costs to implement the program.
The bill would allow a distributor, in lieu of submitting and
implementing a takeback and recycling system, to elect to pay a
redemption payment to the department pursuant to the act and to
otherwise comply with the act. The bill would require the department
to deposit the redemption payments by distributors for voluntary
beverage containers into the Voluntary Beverage Container Fund, which
the bill would create in the State Treasury. The bill would
continuously appropriate the money in the Voluntary Beverage
Container Fund to the department for the payment of refund values and
administrative fees to processors for voluntary beverage containers,
and as a reserve for contingencies, thereby making an appropriation.
The bill would also provide that the money in the Voluntary Beverage
Container Fund may be expended by the department for the
administration of the act only upon appropriation by the Legislature.
The bill would require the department to establish a separate
processing fee account in the Voluntary Beverage Container Fund for
voluntary beverage containers and would require all amounts paid as
processing fees for those voluntary beverage containers be deposited
in that account. The bill would continuously appropriate those funds
to the department for purposes of making processing payments for
voluntary beverage containers. The bill would require the department,
once every 3 months, to set aside funds estimated to be needed for
the expenditures specified above. The bill would continuously
appropriate the remainder of those funds to the department to pay
handling fees for voluntary beverage containers and to make payments
for the collection of voluntary beverage containers by curbside
programs and neighborhood dropoff programs. The bill would make other
conforming changes to the act with regard to voluntary beverage
containers.
(2) The act requires the department to certify recycling centers
and requires, as a condition of certification, that if one or more
certified entities have operated at the same location within the past
5 years, the operations at the location of the recycling center
exhibit, to the satisfaction of the department, a pattern of
operation in compliance with the requirements of the act.
This bill would authorize the department to waive this requirement
if it makes a specified determination.
(3) Existing law requires the department to annually review and
recalculate commingled rates paid for beverage containers and
postfilled containers paid to curbside recycling programs, collection
programs, and recycling centers.
This bill would prohibit the department from recalculating
commingled rates for the 2014, 2015, and 2016 calendar years paid to
recycling centers and would prohibit recycling centers from paying
any refund value at a commingled rate.
(4) Existing law specifies requirements for the reports, claims,
and information required to be submitted to the department pursuant
to the act.
This bill would require the department to make available a process
for electronically submitting these reports, claims, and other
information and would require those reports, claims, and other
information to be submitted electronically to the department pursuant
to that process. The bill would make conforming changes with regard
to the electronic submission of reports and payments to the
department.
(5) Existing law specifies procedures for the reduction of the
processing fee for PET containers, as defined. Existing law also
requires all rigid plastic bottles and rigid plastic containers to be
labeled with a code that indicates the resin used to produce the
rigid plastic bottle or rigid plastic container.
This bill would revise the definition of the term "PET container"
for purposes of the act to include a plastic beverage container
labeled with the term PETE.
(6) The act defines "convenience zone" for the purposes of the act
and requires that every convenience zone be served by at least one
certified recycling center, with specified operating hours. Existing
law authorizes the department to designate a convenience zone in an
area where there is no supermarket and to grant an exemption from the
convenience zone requirements of the act.
This bill would define the term "unserved convenience zone" and
would require the department to provide assistance and incentives to
reduce the number of unserved convenience zones to less than 5% of
total convenience zones by January 1, 2015.
This bill would permit the department to authorize an operator of
a certified recycling center to be open for business less than 30
hours per week, but not less than 20 hours per week, if the recycling
center is located in an unserved convenience zone, as defined, that
has been unserved for at least 6 continuous months.
This bill would prohibit the director from granting an exemption
if a certified recycling center will not be operating in a
convenience zone in which is located a supermarket and would repeal
the authority to designate a convenience zone in an area where there
is no supermarket.
(7) Existing law prohibits a lease entered into by a dealer to
contain a leasehold restriction that prohibits or results in the
prohibition of the establishment of a recycling location. Existing
law prohibits the department from making any payments, grants, or
loans, to a city or county that has adopted or is enforcing a land
use restriction that prevents the siting or operation of a certified
recycling center at a supermarket site site.
This bill would prohibit a person from entering into a lease with
a supermarket on or after January 1, 2014, that prohibits the
operation of a certified recycling center or inhibits the ability of
that supermarket to operate as, or contract with, a certified
recycling center. This bill would also prohibit a city or county that
receives any revenue pursuant to the Bradley-Burns Uniform Local
Sales and Use Tax Law from a transaction conducted by a supermarket
from prohibiting the siting of a certified recycling center in the
parking lot of a supermarket.
(8) After setting aside funds for the payment of refund values and
administrative fees, and for a reserve for contingencies, the act
provides that the remaining moneys in the fund are continuously
appropriated to the department for expenditure for designated
programs, grants, and fee payments, including annually expending
$15,000,000 for grants for beverage container programs to certain
community conservation corps and $1,500,000 for grants for beverage
container programs.
This bill would increase the amount the department is authorized
to spend for grants for beverage container programs to certain
community conservation corps to $21,000,000 and would delete the
authorization to expend that $1,500,000 for those other grants,
thereby making an appropriation.
(9) The act continuously appropriates to the department the amount
necessary to pay handling fees to provide an incentive for the
redemption of empty beverage containers in convenience zones.
Existing law specifies procedures for determining the number of
containers for which a handling fee may be paid and requires the
department to set the amount of the handling fee using a specified
method, but requires the per-container handling fee to be set until
March 1, 2013, at an amount that is not less than the amount of the
per-container handling fee that was in effect on July 1, 2011.
This bill would make inoperative the existing provisions regarding
the methods for setting and calculating handling fees on July 1,
2014, and would repeal those provisions on January 1, 2015. The bill
would provide that for beverage containers returned for recycling on
and after July 1, 2014, the handling fee would equal specified
amounts, based on the amount of beverage containers a recycling site
handles each month. The bill would make an appropriation by changing
the terms and conditions under which the department is authorized to
make payments from a continuously appropriated fund.
(10) Since a violation of the act is a crime, the bill would
impose a state-mandated local program by creating new crimes with
regard to the submission of information to the department.
(11) The California Constitution requires the state to reimburse
local agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
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.
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.
SEC. 10. Section 14560.2 is added to the
Public Resources Code , to read:
14560.2. (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.
SEC. 11. Section 14560.5 of the Public Resources Code is amended
to read:
14560.5. (a) (1) Except as provided in paragraph (2), and
subdivision (e), the invoice or other form of accounting of the
transaction submitted by a beverage distributor of beverages to a
dealer shall separately identify the amount of any redemption payment
imposed on beverage containers pursuant to Section 14560 and the
separate identification of the invoice or other form of accounting of
the transaction shall not combine or include the gross wholesale
price with the redemption payment but shall separately state the
gross amount of the redemption payment for each type of container
included in each delivery.
(2) The invoice or other form of accounting of the transaction
submitted by any distributor of beer and malt beverages or wine or
distilled spirit coolers to a dealer may separately identify the
portion of the gross wholesale price attributable to any redemption
payment imposed on beverage containers pursuant to Section 14560 and
the separate identification of the invoice or other form of
accounting of the transaction may separately state the gross amount
of the redemption payment for each type of container included in each
delivery. The invoice or other form of accounting of this
transaction may separately identify the portion of the gross
wholesale price attributable to the redemption payment.
(3) Notwithstanding Section 14541, the department shall randomly
inspect beverage distributor invoices or other forms of accounting to
ensure compliance with this subdivision. However, an unintentional
error in addition or subtraction on an invoice or other form of
accounting by a route driver of a distributor shall not be deemed a
violation of this subdivision.
(4) For the purposes of this subdivision, the term "type of
container" includes the amount of the redemption payment on
containers under 24 ounces and on containers 24 ounces or more.
(b) To the extent technically and economically feasible, a dealer
may separately identify the amount of any redemption payment on the
customer cash register receipt provided to the consumer ,
by the dealer , that is applied to the
purchase of a beverage container.
(c) (1) Except as provided in paragraph (6), a dealer shall
separately identify the amount of any redemption payment imposed on a
beverage container in all advertising of beverage products and on
the shelf labels of the dealer's establishment. The separate
identification shall be accomplished by stating one of the following:
(A) The price of the beverage product plus a descriptive term, as
described in paragraph (2).
(B) The price of the beverage product plus the amount of the
applicable redemption payment and a descriptive term, as described in
paragraph (2).
(C) The price of the beverage product plus the amount of the
applicable redemption payment, a descriptive term, as described in
paragraph (2), and the total of these two amounts.
(2) For purposes of paragraph (1), the redemption payment shall be
identified by one of the following descriptive terms: "California
Redemption Value," "CA Redemption Value," "CRV," "California Cash
Refund," "CA Cash Refund," or any other message specified in Section
14561.
(3) A dealer shall not include the redemption payment in the total
price of a beverage container in any advertising or on the shelf of
the dealer's establishment.
(4) This subdivision applies only to a dealer at a dealer location
with a sales and storage area totaling more than 4,000 square feet.
(5) The penalties specified in Sections 14591 and 14591.1 shall
not be applied to a person who violates this subdivision.
(6) This subdivision does not apply to a voluntary beverage
container.
(d) With regard to the sale of beer and other malt beverages or
wine and distilled spirits cooler beverages, any amount of redemption
payment imposed by this division is subject to Section 25509 of the
Business and Professions Code.
(e) (1) The invoice or other form of accounting of the transaction
submitted by a beverage distributor of voluntary beverages to a
dealer may separately identify the amount of any redemption payment
imposed on the voluntary beverage container pursuant to Section 14560
and the separate identification of the invoice or other form of
accounting of the transaction may separately state the gross amount
of the redemption payment for each type of voluntary beverage
container included in each delivery.
(2) A dealer may separately identify the amount of any redemption
payment imposed on a voluntary beverage container in all advertising
of beverage products and on the shelf labels of the dealer's
establishment.
SEC. 12. Section 14571.2 of the Public Resources Code is amended
to read:
14571.2. (a) The department shall continuously assist dealers and
recyclers to establish certified recycling locations within each
convenience zone. This assistance includes, but is not limited to,
providing information to companies and organizations interested in
operating recycling in the convenience zone; providing dealers with
names of prospective recyclers for the convenience zone and providing
recyclers with the names of dealers in need of a recycler for a
convenience zone; providing dealers and recyclers with information on
grants, advertising funds, and other resources available; and
providing recyclers with advice regarding appearance and image of the
recycling center and the efficient handling and transportation of
recycled beverage containers.
(b) The department shall, when implementing this section, provide
assistance and incentives that will reduce the number of unserved
convenience zones to less than 5 percent of the total amount of
convenience zones in this state by January 1, 2015.
SEC. 13. Section 14571.5 of the Public
Resources Code is amended to read:
14571.5. The department may, in a rural region, as identified
pursuant to subparagraph (A) of paragraph (2) of subdivision (b) of
Section 14571, upon petition by an interested person, do either of
the following:
(a) 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.
SEC. 14. SEC. 13. Section 14571.6.5
is added to the Public Resources Code, to read:
14571.6.5. (a) Notwithstanding Section 14571, the department may
allow the operator of a certified recycling center to be open for
business for less than 30 hours per week, but not less than 20 hours
per week, if the certified recycling center is located in a
convenience zone that has been unserved for at least six continuous
months and the convenience zone is identified by the department as an
unserved convenience zone.
(b) A certified recycling center that is authorized by the
department pursuant to subdivision (a) shall be eligible to apply for
handling fees pursuant to Section 14585, and a processor shall pay
refund values, administrative costs, and processing payments to the
certified recycling center pursuant to subdivision (a) of Section
14573.5 in the same manner as to a certified recycling center
operating in compliance with Section 14571.
(c) The department may authorize not more than 120 recycling
centers in unserved convenience zones pursuant to this section.
SEC. 15. SEC. 14. 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) Except as provided in subdivision (h), the
The director may grant an exemption from the
requirements of Section 14571 for an individual convenience zone only
after the department solicits public testimony on whether or not to
provide an exemption from Section 14571. The solicitation process
shall be designed by the department to ensure that operators of
recycling centers, dealers,
and members of the public in the jurisdiction affected by the
proposed exemption are aware of the proposed exemption. After
evaluation of the testimony and any field review conducted, the
department shall base a decision to exempt a convenience zone on one,
or any combination, of the following factors:
(1) The exemption will not significantly decrease the ability of
consumers to conveniently return beverage containers for the refund
value to a certified recycling center redeeming all material types.
(2) Except as provided in paragraph (5), the nearest certified
recycling center is within a reasonable distance of the convenience
zone being considered from exemption.
(3) The convenience zone is in the area of a curbside recycling
program that meets the criteria specified in Section 14509.5.
(4) The requirements of Section 14571 cannot be met in a
particular convenience zone due to local zoning or the dealer's
leasehold restrictions for leases in effect on January 1, 1987, and
the local zoning or leasehold restrictions are not within the
authority of the department and the dealer. However, any lease
executed after January 1, 1987, shall meet the requirements specified
in subdivision (a).
(5) The convenience zone has redeemed less than 60,000 containers
per month for the prior 12 months and, notwithstanding paragraph (2),
a certified recycling center is located within one mile of the
convenience zone that is the subject of the exemption.
(c) The department shall review each convenience zone in which a
certified recycling center was not located on January 1, 1996, to
determine the eligibility of the convenience zone under the exemption
criteria specified in subdivision (b).
(d) The total number of exemptions granted by the director under
this section shall not exceed 35 percent of the total number of
convenience zones identified pursuant to this section.
(e) The department may, on its own motion, or upon petition by any
interested person, revoke a convenience zone exemption if either of
the following occurs:
(1) The condition or conditions that caused the convenience zone
to be exempt no longer exists, and the department determines that the
criteria for an exemption specified in this section are not
presently applicable to the convenience zone.
(2) The department determines that the convenience zone exemption
was granted due to an administrative error.
(f) If an exemption is revoked and a recycling center is not
certified and operational in the convenience zone, the department
shall, within 10 days of the date of the decision to revoke, serve
all dealers in the convenience zone with the notice specified in
subdivision (a) of Section 14571.7.
(g) An exemption shall not be revoked when a recycling center
becomes certified and operational within an exempt convenience zone
unless either of the events specified in paragraphs (1) and (2) of
subdivision (e) occurs.
(h) The director shall not grant an exemption pursuant to this
section if a certified recycling center will not be operating in a
convenience zone in which there is located a supermarket.
SEC. 16. SEC. 15. 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.
SEC. 17. SEC. 16. 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.
SEC. 18. SEC. 17. 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 (4)
, (4), every beverage manufacturer shall pay to
the department the applicable processing fee for each container sold
or transferred to a distributor or dealer within 40 days of the sale
in the form and in the manner which the department may prescribe.
(2) (A) Notwithstanding Section 14506, with respect to the payment
of processing fees for beer and other malt beverages manufactured
outside the state, the beverage manufacturer shall be deemed to be
the person or entity named on the certificate of compliance issued
pursuant to Section 23671 of the Business and Professions Code. If
the department is unable to collect the processing fee from the
person or entity named on the certificate of compliance, the
department shall give written notice by certified mail, return
receipt requested, to that person or entity. The notice shall state
that the processing fee shall be remitted in full within 30 days of
issuance of the notice or the person or entity shall not be permitted
to offer that beverage brand for sale within the state. If the
person or entity fails to remit the processing fee within 30 days of
issuance of the notice, the department shall notify the Department of
Alcoholic Beverage Control that the certificate holder has failed to
comply, and the Department of Alcoholic Beverage Control shall
prohibit the offering for sale of that beverage brand within the
state.
(B) The department shall enter into a contract with the Department
of Alcoholic Beverage Control, pursuant to Section 14536.5,
concerning the implementation of this paragraph, which shall include
a provision reimbursing the Department of Alcoholic Beverage Control
for its costs incurred in implementing this paragraph.
(3) (A) Notwithstanding paragraph (1), if a beverage manufacturer
displays a pattern of operation in compliance with this division and
the regulations adopted pursuant to this division, to the
satisfaction of the department, the beverage manufacturer may make a
single annual payment of processing fees, if the beverage
manufacturer meets either of the following conditions:
(i) If the redemption payment and refund value is not increased
pursuant to paragraph (3) of subdivision (a) of Section 14560, the
beverage manufacturer's projected processing fees for a calendar year
total less than ten thousand dollars ($10,000).
(ii) If the redemption payment and refund value is increased
pursuant to paragraph (3) of subdivision (a) of Section 14560, the
beverage manufacturer's projected processing fees for a calendar year
total less than fifteen thousand dollars ($15,000).
(B) An annual processing fee payment made pursuant to this
paragraph is due and payable on or before February 1 for every
beverage container sold or transferred by the beverage manufacturer
to a distributor or dealer in the previous calendar year.
(C) A beverage manufacturer shall notify the department of its
intent to make an annual processing fee payment pursuant to this
paragraph on or before January 31 of the calendar year for which the
payment will be due.
(4) A distributor of voluntary beverage containers shall pay to
the department the applicable processing fee for each container sold
or transferred to a dealer within 40 days of the sale in the form and
in the manner that the department may prescribe.
(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) (1) Except as
provided in paragraph (2), a A container
manufacturer, or a designated agent, shall pay to, or credit, the
account of the beverage manufacturer in an amount equal to the
processing fee.
(2) This subdivision does not apply to a voluntary beverage
container.
(j) 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 to
make the reduction pursuant to this subdivision, the department shall
use these surplus funds in the respective processing fee accounts in
the following calendar year to reduce the amount of the processing
fee that would otherwise be due from glass or PET beverage
manufacturers pursuant to this subdivision.
(1) The department shall reduce the glass or PET processing fee
amount pursuant to this subdivision in addition to any reduction for
which the glass or PET beverage container qualifies under subdivision
(e).
(2) The department shall determine the processing fee reduction by
dividing two million dollars ($2,000,000) from each processing fee
account by an estimate of the number of containers sold or
transferred to a distributor during the previous calendar year, based
upon the latest available data.
(k) The department shall reduce the processing fee for voluntary
beverage containers for the following calendar year if, at the end of
the calendar year, the department determines that the recycling
rates for voluntary beverage containers equal or exceed 45 percent
and there are surplus funds at the end of the previous calendar year
in the processing fee account established by the department pursuant
to subdivision (c) of Section 14580.5, for those containers.
SEC. 19. SEC. 18. Section 14580.5 is
added to the Public Resources Code, to read:
14580.5. (a) Except as provided in subdivision (d), the
department shall deposit all amounts paid as redemption payments by
distributors for voluntary beverage containers pursuant to
subdivision (c) of Section 14560 into the Voluntary Beverage
Container Fund, which is hereby created in the State Treasury.
Notwithstanding Section 13340 of the Government Code, the money in
the Voluntary Beverage Container Fund is hereby continuously
appropriated to the department for expenditure without regard to
fiscal year for the following purposes:
(1) The payment of refund values and administrative fees to
processors for voluntary beverage containers pursuant to Section
14573.
(2) For a reserve for contingencies, which shall not be greater
than an amount equal to 5 percent of the total amount paid for
voluntary beverage containers to processors pursuant to Section 14573
during the preceding calendar year, plus the interest earned on that
amount.
(b) The money in the Voluntary Beverage Container Fund may be
expended by the department for the administration of this division
only upon appropriation by the Legislature.
(c) The department shall establish a separate processing fee
account in the Voluntary Beverage Container Fund for voluntary
beverage containers and all amounts paid as processing fees for those
voluntary beverage containers shall be deposited in that account.
Notwithstanding Section 13340 of the Government Code, the moneys in
that processing fee account are hereby continuously appropriated to
the department for expenditure without regard to fiscal years, for
purposes of making processing payments for voluntary beverage
containers pursuant to this division.
(d) The department shall, once every three months, set aside funds
estimated to be needed for expenditures authorized pursuant to
subdivisions (a) and (b). Notwithstanding Section 13340 of the
Government Code, those remaining funds are hereby continuously
appropriated to the department, without regard to fiscal year for the
following purposes:
(1) The payment of handling fees for voluntary beverage
containers, pursuant to Section 14585.
(2) Payments for the collection of voluntary beverage containers
by curbside programs and neighborhood dropoff programs pursuant to
Section 14549.6.
SEC. 20. SEC. 19. 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.
(C) For the 2009-10 fiscal year only, the eight million two
hundred fifty thousand dollars ($8,250,000) appropriated to the
California Conservation Corps for certified local conservation corps
by Item 3340-101-0133 of Sec. 2.00 of the 2009-10 Budget Act, as
added by Section 166 of Chapter 1 of the Fourth Extraordinary Session
of the Statutes of 2009, shall be in addition to the amounts
expended pursuant to this paragraph.
(4) (A) Ten million five hundred thousand dollars ($10,500,000)
may be expended annually for payments of five thousand dollars
($5,000) to cities and ten thousand dollars ($10,000) for payments to
counties for beverage container recycling and litter cleanup
activities, or the department may calculate the payments to counties
and cities on a per capita basis, and may pay whichever amount is
greater, for those activities.
(B) Eligible activities for the use of these funds may include,
but are not necessarily limited to, support for new or existing
curbside recycling programs, neighborhood dropoff recycling programs,
public education promoting beverage container recycling, litter
prevention, and cleanup, cooperative regional efforts among two or
more cities or counties, or both, or other beverage container
recycling programs.
(C) These funds shall not be used for activities unrelated to
beverage container recycling or litter reduction.
(D) To receive these funds, a city, county, or city and county
shall fill out and return a funding request form to the department.
The form shall specify the beverage container recycling or litter
reduction activities for which the funds will be used.
(E) The department shall annually prepare and distribute a funding
request form to each city, county, or city and county. The form
shall specify the amount of beverage container recycling and litter
cleanup funds for which the jurisdiction is eligible. The form shall
not exceed one double-sided page in length, and may be submitted
electronically. If a city, county, or city and county does not return
the funding request form within 90 days of receipt of the form from
the department, the city, county, or city and county is not eligible
to receive the funds for that funding cycle.
(F) For the purposes of this paragraph, per capita population
shall be based on the population of the incorporated area of a city
or city and county and the unincorporated area of a county. The
department may withhold payment to any city, county, or city and
county that has prohibited the siting of a supermarket site, caused a
supermarket site to close its business, or adopted a land use policy
that restricts or prohibits the siting of a supermarket site within
its jurisdiction.
(5) (A) 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) (A) Up to five million
dollars ($5,000,000) may be annually expended by the department for
the purposes of undertaking a statewide public education and
information campaign aimed at promoting increased recycling of
beverage containers.
(B) Notwithstanding subdivision (f), the department shall not
expend funds pursuant to this paragraph for the 2010 and 2011
calendar years.
(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.
(f) The department shall not make any payments for voluntary
beverage containers pursuant to this section.
SEC. 21. SEC. 20. Section 14583 of
the Public Resources Code is amended to read:
14583. (a) Notwithstanding Section 14581, on and after
July 1, 2012, the department shall not make any payments,
grants, or loans, as provided in that section, to a city, county, or
city and county, if the city, county, or city and county has adopted
or is enforcing a land use restriction that prevents the siting or
operation of a certified recycling center at a supermarket site, as
defined in Section 14526.6, as may be required pursuant to Section
14571.
(b) A city or county that receives any revenue pursuant to the
Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5
(commencing with Section 7200) of Division 2 of the Revenue and
Taxation Code) from a transaction conducted by a supermarket shall
not prohibit the siting of a certified recycling center in the
parking lot of a supermarket.
SEC. 22. SEC. 21. 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 , 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.
SEC. 23. SEC. 22. Section 14585 is
added to the Public Resources Code, to read:
14585. (a) The department shall adopt guidelines and methods for
paying handling fees to supermarket sites, nonprofit convenience zone
recyclers, and rural region recyclers to provide an incentive for
the redemption of empty beverage containers in convenience zones. The
guidelines shall include, but not be limited to, all of the
following:
(1) Handling fees shall be paid in the form and manner adopted by
the department. The department shall require that claims for the
handling fee be filed electronically as part of the shipping report
with the department.
(2) (A) If a dealer where a supermarket site, nonprofit
convenience zone recycler, or rural region recycler is located ceases
operation for remodeling or for a change of ownership, the operator
of that supermarket site, nonprofit convenience zone recycler, or
rural region recycler shall be eligible to apply for handling fees
for that site for a period of three months following the date of the
closure of the dealer.
(B) Every supermarket site operator, nonprofit convenience zone
recycler, or rural region recycler shall promptly notify the
department of the closure of the dealer where the supermarket site,
nonprofit convenience zone recycler, or rural region recycler is
located.
(C) Notwithstanding subparagraph (A), an operator who fails to
provide notification to the department pursuant to subparagraph (B)
shall not be eligible to apply for handling fees.
(b) (1) The department shall not make handling fee payments to
more than one certified recycling center in a convenience zone.
(A) If a dealer is located in more than one convenience zone, the
department shall offer a single handling fee payment to a supermarket
site located at that dealer. The department shall not split the
handling fee payment between the affected convenience zones.
(B) The department shall stop making handling fee payments if
another recycling center is certified to operate within a convenience
zone and does not receive handling fees pursuant to this section,
and if the department monitors the performance of the other certified
recycling center for 60 days and determines that the recycling
center is in compliance with this division.
(C) A recycling center that locates in a convenience zone, thereby
causing a preexisting recycling center to become ineligible to
receive handling fee payments, is ineligible to receive any handling
fee payments in that convenience zone.
(2) The department shall pay a single handling fee to a rural
region recycler located anywhere inside a convenience zone, if that
convenience zone is not served by another certified recycling center
and the rural region recycler does either of the following:
(A) Operates a minimum of 30 hours per week in one convenience
zone.
(B) Serves two or more convenience zones, and meets all of the
following criteria:
(i) Is the only certified recycler within each convenience zone.
(ii) Is open and operating at least eight hours per week in each
convenience zone and is certified at each location.
(iii) Operates at least 30 hours per week in total for all
convenience zones served.
(c) The department may require the operator of a supermarket site
or rural region recycler receiving handling fees to maintain records
for each location where beverage containers are redeemed, and may
require the supermarket site or rural region recycler to take any
other action necessary for the department to determine that the
supermarket site or rural region recycler does not receive an
excessive handling fee.
(d) The department may determine and utilize a standard container
per pound rate, for each material type, for the purpose of
calculating volumes and making handling fee payments.
(e) (1) For beverage containers returned for recycling on and
after July 1, 2014, the handling fee shall equal the following
amounts:
(A) The amount of one and two hundred nineteen
thousandths hundredths of one cent
($0.001219) ($0.01219) per beverage container
for a recycling site handling less than ____
fewer than 325,000 beverage containers per month.
(B) The amount of five hundred eighty-one thousandths of one cent
($0.00581) per container for a recycling site handling more
than ____ 325,000 or more beverage containers
per month but less than ____ fewer than
572,000 containers per month.
(C) The amount of five hundred twenty-two thousandths of one cent
($0.00522) per beverage container for a recycling site handling
more than ____ 572,000 or more
containers per month but less than 335,000 containers per
month .
(2) For purposes of this subdivision, "recycling site" means a
single location of a supermarket site, nonprofit convenience zone
recycler, or rural region recycler.
(f) This section shall become operative on July 1, 2014.
SEC. 24. SEC. 23. 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 the Regulated Beverage Account, upon
appropriation by the Legislature, to cover the department's costs to
implement this article.
17003. The department may adopt regulations, including emergency
regulations, to implement this article.
Article 3. Voluntary Beverage Containers
17004. (a) In lieu of submitting and implementing a takeback and
recycling system pursuant to Article 2 (commencing with Section
17001), a distributor may elect to pay a redemption payment to the
department pursuant to subdivision (c) of Section 14560
Section 14560.2 and otherwise comply with the
requirements of Division 12.1 (commencing with Section 14500).
(b) A regulated beverage container for which a distributor elects
to make the election specified in subdivision (a) is a voluntary
beverage container for purposes of Section 14528.2.
SEC. 25. SEC. 24. 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.