BILL NUMBER: SB 1401 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 24, 2010
INTRODUCED BY Senator Simitian
FEBRUARY 19, 2010
An act to amend Section 14574 Sections
14560, 14574, and 14581 of the Public Resources Code, relating
to beverage containers.
LEGISLATIVE COUNSEL'S DIGEST
SB 1401, as amended, Simitian. Beverage containers: redemption
payments.
Existing law, the California Beverage Container Recycling and
Litter Reduction Act (act), requires a distributor to pay a
redemption payment of $0.04 for every beverage container
sold or offered for sale in the state to the Division of Recycling in
the Department of Resources Recycling and Recovery. The
distributor is required to make these payments not later than the
last day of the 3rd month following a sale, except for those
distributors that display a pattern of compliance who may make a
single annual payment, under specified circumstances with regard to
the amount of the distributor's projected redemption payment.
This bill would revise the amount of the projected redemption
payment with regard to which a distributor is eligible to make an
annual payment of redemption payments.
Existing law prohibits the department from expending, for the 2010
and 2011 calendar years, funds in the California Beverage Container
Recycling Fund that are annually authorized for grants for beverage
container recycling and litter reduction programs, the statewide
public education and information campaign, grants for recycling
market development, and grants for certain programs. Existing law
requires the department to review the fund and eliminate
expenditures, upon making a certain determination.
This bill would exclude from those prohibitions encumbrances made
on or before March 8, 2010. This bill would also make technical
changes regarding the review of the fund and elimination of
expenditures.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 14560 of the Public
Resources Code , as amended by Section 1 of Chapter 5 of
the Eighth Extraordinary Session of the Statutes of 2010, is amended
to read:
14560. (a) (1) Except as provided in paragraph (3), a beverage
distributor shall pay the department, for deposit into the fund, a
redemption payment of four cents ($0.04) for a beverage container
sold or offered for sale in this state by the distributor.
(2) A beverage container with a capacity of 24 fluid ounces or
more shall be considered as two beverage containers for purposes of
redemption payments paid pursuant to paragraph (1).
(3) On and after July 1, 2007, the amount of the redemption
payment and refund value for a beverage container with a capacity of
less than 24 fluid ounces sold or offered for sale in this state by a
dealer shall equal five cents ($0.05) and the amount of redemption
payment and refund value for a beverage container with a capacity of
24 fluid ounces or more shall be ten cents ($0.10), if the aggregate
recycling rate reported pursuant to Section 14551 for all beverage
containers subject to this division is less than 75 percent for the
12-month reporting period from January 1, 2006, to December 31, 2006,
or for any calendar year thereafter.
(b) Except as provided in subdivision (c), a
A beverage container sold or offered for sale in this
state has a refund value of four cents ($0.04) if the beverage
container has a capacity of less than 24 fluid ounces and eight cents
($0.08) if the beverage container has a capacity of 24 fluid ounces
or more.
(c) Notwithstanding subdivision (b), the department may, on and
after January 1, 2007, but not after July 1, 2007, increase the
amount of the refund value specified in subdivision (b), by no more
than one cent ($0.01), if the container has a capacity of less than
24 fluid ounces, and by two cents ($0.02) if the container has a
capacity of 24 fluid ounces or more, if the department determines, as
specified in subdivision (f) of Section 14581, there are sufficient
moneys remaining in the fund to make these increased payments.
(d)
(c) (1) The department shall review the fund at least
once every three months and provide a status report on its
Internet Web site to ensure that there are adequate funds in
the fund to pay refund values and other disbursements required by
this division.
(2) If the department determines, pursuant to a review made
pursuant to paragraph (1), that there may be inadequate funds to pay
the refund values and necessary disbursements required by this
division, the department shall immediately notify the Legislature of
the need for urgent legislative action.
(3) On or before 180 days, but not less than 90
80 days, after the notice is sent pursuant to paragraph
(2), the department may reduce or eliminate expenditures, or both,
from the fund as necessary, according to the procedure set forth in
Section 14581, to ensure that there are adequate funds in the fund to
pay the refund values and other disbursements required by this
division.
(e)
(d) This section does not apply to a refillable
beverage container.
SEC. 2. Section 14574 of the Public
Resources Code , as added by Section 3 of Chapter 5 of the
Eighth Extraordinary Session of the Statutes of 2010, is amended to
read:
14574. (a) (1) A distributor of beverage containers shall pay to
the department the redemption payment for every beverage container,
other than a refillable beverage container, sold or transferred to a
dealer, less 1.5 percent for the distributor's administrative costs.
(2) The payment made by a distributor shall be made not later than
the last day of the third month following the sale. The distributor
shall make the payment in the form and manner that the department
prescribes.
(b) (1) Notwithstanding subdivision (a), if a distributor displays
a pattern of operation in compliance with this division and the
regulations adopted pursuant to this division, to the satisfaction of
the department, the distributor may make a single annual payment of
redemption payments, if the distributor'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.
(b)
(c) This section shall become effective
operative on July 1, 2012.
SEC. 3. Section 14581 of the Public
Resources Code , as amended by Section 5 of Chapter 5 of
the Eighth Extraordinary Session of the Statutes of 2010, is amended
to read:
14581. (a) Subject to the availability of funds ,
and pursuant to subdivision (c), the department shall
expend the moneys set aside in the fund, pursuant to subdivision (c)
of Section 14580, for the purposes of this section:
(1) For each fiscal year commencing July 1, 2008, the department
may expend the amount necessary to make the required handling fee
payment pursuant to Section 14585.
(2) Fifteen million dollars ($15,000,000) shall be expended
annually for payments for curbside programs and neighborhood dropoff
programs pursuant to Section 14549.6.
(3) (A) Fifteen million dollars ($15,000,000), plus the
proportional share of the cost-of-living adjustment, as provided in
subdivision (b), shall be expended annually in the form of grants for
beverage container litter reduction programs and recycling programs
issued to either of the following:
(i) Certified community conservation corps that were in existence
on September 30, 1999, or that are formed subsequent to that date,
that are designated by a city or a city and county to perform litter
abatement, recycling, and related activities, if the city or the city
and county has a population, as determined by the most recent
census, of more than 250,000 persons.
(ii) Community conservation corps that are designated by a county
to perform litter abatement, recycling, and related activities, and
are certified by the California Conservation Corps as having operated
for a minimum of two years and as meeting all other criteria of
Section 14507.5.
(B) Any grants provided pursuant to this paragraph shall not
comprise more than 75 percent of the annual budget of a community
conservation corps.
(C) 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 Section 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 paragraph (3).
(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 may shall not be
used for activities unrelated to beverage container recycling or
litter reduction.
(D) To receive these funds, a city, county, or city and county
shall fill out and return a funding request form to the department.
The form shall specify the beverage container recycling or litter
reduction activities for which the funds will be used.
(E) The department shall annually prepare and distribute a funding
request form to each city, county, or city and county. The form
shall specify the amount of beverage container recycling and litter
cleanup funds for which the jurisdiction is eligible. The form shall
not exceed one double-sided page in length, and may be submitted
electronically. If a city, county, or city and county does not return
the funding request form within 90 days of receipt of the form from
the department, the city, county, or city and county is not eligible
to receive the funds for that funding cycle.
(F) For the purposes of this paragraph, per
capita population shall be based on the population of the
incorporated area of a city or city and county and the unincorporated
area of a county. The department may withhold payment to any city,
county, or city and county that has prohibited the siting of a
supermarket site, caused a supermarket site to close its business, or
adopted a land use policy that restricts or prohibits the siting of
a supermarket site within its jurisdiction.
(5) (A) One million five hundred thousand dollars ($1,500,000) may
be expended annually in the form of grants for beverage container
recycling and litter reduction programs.
(B) Notwithstanding subdivision (f), the department shall not
expend funds pursuant to this paragraph for the 2010 and 2011
calendar years , except for encumbrances made on or
before March 8, 2010 .
(6) (A) The department shall expend the amount necessary to pay
the processing payment established pursuant to Section 14575. The
department shall establish separate processing fee accounts in the
fund for each beverage container material type for which a processing
payment and processing fee are calculated pursuant to Section 14575,
or for which a processing payment is calculated pursuant to Section
14575 and a voluntary artificial scrap value is calculated pursuant
to Section 14575.1, into which account shall be deposited both of the
following:
(i) All amounts paid as processing fees for each beverage
container material type pursuant to Section 14575.
(ii) Funds equal to the difference between the amount in clause
(i) and the amount of the processing payments established in
subdivision (b) of Section 14575, and adjusted pursuant to paragraph
(2) of subdivision (c) of, and subdivision (f) of, Section 14575, to
reduce the processing fee to the level provided in subdivision (e) of
Section 14575, or to reflect the agreement by a willing purchaser to
pay a voluntary artificial scrap value pursuant to Section 14575.1.
(B) Notwithstanding Section 13340 of the Government Code, the
moneys in each processing fee account are hereby continuously
appropriated to the department for expenditure without regard to
fiscal years, for purposes of making processing payments pursuant to
Section 14575.
(C) Notwithstanding the other provisions of this section and
Section 14575, for the 2010 and 2011 calendar years, the total amount
that the department may expend to reduce the amount of processing
fees for each container type shall not exceed the total amount
expended to reduce processing fees in the 2008 calendar year.
(7) (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 , except for encumbrances made on or before March
8, 2010 .
(8) Up to ten million dollars ($10,000,000) may be expended
annually by the department for quality incentive payments for empty
glass beverage containers pursuant to Section 14549.1.
(9) Up to twenty million dollars ($20,000,000) may be expended
annually by the department, until January 1, 2012, to issue grants
for recycling market development and expansion-related activities
aimed at increasing the recycling of beverage containers.
Notwithstanding subdivision (f), the department shall not expend any
funds pursuant to this paragraph for the 2010 and 2011 calendar years
, except for encumbrances made on or before March 8, 2010
. The activities that may be funded include, but are not limited to,
the following:
(A) Research and development of collecting, sorting, processing,
cleaning, or otherwise upgrading the market value of recycled
beverage containers.
(B) Identification, development, and expansion of markets for
recycled beverage containers.
(C) Research and development for products manufactured using
recycled beverage containers.
(D) Research and development to provide high-quality materials
that are substantially free of contamination.
(E) Payments to California manufacturers who recycle beverage
containers that are marked by resin type identification code "3," "4,"
"5," "6," or "7," pursuant to Section 18015.
(10) 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, 2012.
(11) (A) Up to twenty million dollars ($20,000,000) may be
expended from July 1, 2009, to January 1, 2012, inclusive, for either
of the following:
(i) Grants for beverage container recycling and litter reduction
programs that emphasize the greatest and most effective collection of
beverage containers per dollar spent to ensure the program's
performance and accountability.
(ii) Focused, regional community beverage container recycling and
litter reduction programs that enable the department to more
effectively organize the amount and type of resources needed for
regional and statewide efforts to increase recycling.
(B) The department shall require, as a condition of receiving
grant funds pursuant to subparagraph (A), each grant recipient to
submit a final report including, but not limited to, the grant
recipient's reported volumes of beverage containers recycled, where
applicable.
(C) On or before July 1, 2014, the department shall publish an
evaluation of all grants made pursuant to subparagraph (A). At a
minimum, the evaluation shall summarize each final report submitted
by each grantee pursuant to subparagraph (B) and assess whether the
grantee adequately met the scope and objectives outlined in the grant
agreement.
(D) Notwithstanding subdivision (f), the department shall not
expend funds pursuant to this paragraph for the 2010 and 2011
calendar years , except for encumbrances made on or
before March 8, 2010 .
(b) The fifteen million dollars ($15,000,000) that is set aside
pursuant to paragraph (3) of subdivision (a) is a base amount that
the department shall adjust annually to reflect any increases or
decreases in the cost of living, as measured by the Department of
Labor, or a successor agency, of the federal government.
(c) (1) The department shall review all funds on a quarterly basis
and provide a status report on its Internet Web site to ensure that
there are adequate funds to make the payments specified in this
section and the processing fee reductions required pursuant to
Section 14575.
(2) If the department determines, pursuant to a review made
pursuant to paragraph (1), that there may be inadequate funds to pay
the payments required by this section and the processing fee
reductions required pursuant to Section 14575, the department shall
immediately notify the appropriate policy and fiscal committees of
the Legislature regarding the inadequacy.
(3) On or before 180 days, but not less than 90
80 days, after the notice is sent pursuant to paragraph
(2), the department may reduce or eliminate expenditures, or both,
from the funds as necessary, according to the procedure set forth in
subdivision (d).
(d) If the department determines that there are insufficient funds
to make the payments specified pursuant to this section and Section
14575, the department shall reduce all payments proportionally.
(e) Prior to making an expenditure pursuant to paragraph (7) of
subdivision (a), the department shall convene an advisory committee
consisting of representatives of the beverage industry, beverage
container manufacturers, environmental organizations, the recycling
industry, nonprofit organizations, and retailers to advise the
department on the most cost-effective and efficient method of the
expenditure of the funds for that education and information campaign.
(f) Subject to the availability of funds, the department shall
retroactively pay in full any payments provided in this section that
have been proportionally reduced during the period of January 1,
2010, through June 30, 2010.
SECTION 1. Section 14574 of the Public
Resources Code is amended to read:
14574. (a) (1) A distributor of beverage containers shall pay to
the department the redemption payment for every beverage container,
other than a refillable beverage container, sold or transferred to a
dealer, less 1.5 percent for the distributor's administrative costs.
(2) The payment made by a distributor shall be made not later
than the last day of the third month following the sale. The
distributor shall make the payment in the form and manner that the
department prescribes.
(b) (1) Notwithstanding subdivision (a), if a distributor displays
a pattern of operation in compliance with this division and the
regulations adopted pursuant to this division, to the satisfaction of
the department, the distributor may make a single annual payment of
redemption payments, if the distributor'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.