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SB-332 Beverage containers.(1999-2000)

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SB332:v91#DOCUMENT

Senate Bill No. 332

CHAPTER 815

An act to amend Section 12701 of the Business and Professions Code, to amend Sections 14513.4, 14515.5, 14536, 14549, 14549.6, 14550, 14551, 14560.5, 14561, 14571, 14571.8, 14573, 14573.5, 14574, 14580, 14581, and 14591.1 of, to amend, repeal, and add Sections 14504 and 14549.5 of, to add Sections 14514.4.1, 14514.7, 14519.5, 14525.5.1, 14585, and 40511 to, to add Chapter 7.5 (commencing with Section 14588) to Division 12.1 of, to add and repeal Sections 14549.1 and 14549.7 of, to repeal Section 14542 of, to repeal and add Sections 14551.5, 14560, and 14575 of, the Public Resources Code, relating to beverage containers, and making an appropriation therefor.

[ Filed with Secretary of State October 10, 1999. Approved by Governor October 08, 1999. ]

LEGISLATIVE COUNSEL'S DIGEST

SB 332, Sher. Beverage containers.

(1) The existing California Beverage Container Recycling and Litter Reduction Act requires a distributor of specified beverage containers to pay a redemption payment of 2¢ to the Department of Conservation, for each beverage container, as defined, sold or transferred, for deposit in the California Beverage Container Recycling Fund and provides for an increase in that payment, as specified. The money in the fund is continuously appropriated to the department to pay refund values, processing payments, and for other purposes. “Beverage” is defined, for purposes of the act, to include beer and other malt beverages, wine and distilled spirit coolers, carbonated mineral and soda waters, and similar carbonated soft drinks in liquid form that are intended for human consumption, but excludes from that definition 100% fruit juice to which carbonation has been added.

A violation of the act is a crime and the penalties for violations of the act are deposited in the fund.

Existing law requires each glass container manufacturer to use a 35% minimum percentage of California postfilled glass in the manufacturing of glass food, drink, or beverage containers. A manufacturer is authorized to seek a reduction or waiver of this requirement from the department.

This bill would additionally include as beverages, for purposes of the act, carbonated and noncarbonated water, noncarbonated soft drinks and sport drinks, specified noncarbonated fruit drinks, coffee and tea drinks, and carbonated fruit drinks if those products are sold in plastic, glass, bimetal, or aluminum containers in liquid, ready-to-drink form and intended for human consumption. The bill would exempt any beverage container included within the coverage of the act on January 1, 2000, from specified labeling requirements, until January 1, 2001.

This bill would revise the definitions of the terms “handling fee,” and “PET container” and would define the terms “nonprofit convenience zone recycler,” “recycler” and “rural region recycler.”

This bill would reduce the minimum percentage of postfilled glass to 25% if the glass container manufacturer makes a specified demonstration to the department with regard to its use of mixed color cullet, as defined.

This bill would revise the procedure for determining the commingled rate paid for containers to repeal requirements regarding the holding of a public hearing and providing information before the effective date of a new rate, would repeal the existing procedure on January 1, 2001, and would establish a new procedure, effective January 1, 2001, for the calculation of a new commingled rate that includes the requirements for a prior public hearing and providing information.

The bill would increase the amount of the redemption payment paid by distributors to 2.5¢.

(2) Existing law defines “convenience zone” for the purposes of the act and requires that every convenience zone is to be served by at least one certified recycling center, with specified operating hours. The Director of Conservation is authorized to grant an exemption from these convenience zone requirements based on specified factors, including that the nearest certified recycling center is within a reasonable distance of the convenience zone being considered for the exemption.

This bill would revise the requirements regarding the operating hours for a recycling center in a rural region and would additionally include, as a factor to be considered in issuing an exemption from convenience zone requirements, that the convenience zone has redeemed less than 60,000 containers per month in the prior 12 months and a certified recycling center is located within one mile of the convenience zone that is the subject of the exemption.

(3) Existing law requires the department to pay to a processor for every empty beverage container received by the processor from a certified recycling center or other program, the sum of the refund value, 1 ³/₄% of the refund value for administrative costs, and a processing payment. Existing law requires the processor to pay a certified recycling center or other program the refund value, ¹/₂ of 1% of the refund value for administrative costs, and the processing payment. Existing law also requires a distributor of beverage containers to pay a redemption payment to the department, less¹/₂ of 1% for the distributor’s administrative costs. The redemption payment made to the department by a distributor of beer and other malt beverages is required to be made not later than the first day of the second month following the sale.

This bill would increase the amount of administrative costs paid to the processor to 2 ¹/₂% of the refund value, and the administrative costs paid to the recycling center to ³/₄ of 1% and would increase the administrative costs retained by the distributor to 1% of those administrative costs. The bill would increase the time when the redemption payment by beer and malt beverage distributors is required to be made to not later than the last day of the third month following the sale.

(4) Under the act, the department is required to calculate a processing fee for each beverage container with a specified scrap value, which is required to be paid by beverage manufacturers for each beverage container sold or transferred to a dealer. Until January 1, 2000, a processing fee is required to be imposed annually only if the scrap value for the material is less than the cost of recycling, and, after that date, a processing fee is required to be established pursuant to different criteria. Under the law in effect until January 1, 2000, the processing fee is reduced in an amount equal to 25% of the redemption payments projected to be paid by distributors of beverages sold in that container type for the previous calendar year.

This bill would revise the method of calculating the processing payment and would require the processing payment, to equal the difference between the scrap value offered to recyclers by willing purchasers and the cost of recycling containers and a reasonable financial return. The bill would require the department to use specified cost data for the January 1, 2000, processing payment calculation. The bill would require the actual processing fee to equal 65% of the processing payment, but the department would be required to adjust the amount of the processing fee, based upon the availability of funds in the processing fee account for that beverage material type so the amount of the processing fee equals 25% of the processing payment.

(5) Existing law requires the department to report specified data with respect to its responsibilities under the act within 70 days of each reporting period.

This bill would extend this period to 130 days.

(6) Existing law requires the department to transfer an amount equal to 25% of the redemption payments, and all processing fees, made for glass, PET, and bimetal beverage containers to, respectively, the Glass Processing Fee Account, the PET Processing Fee Account, and the Bimetal Processing Fee Account, for making processing payments for, and reducing processing fees paid for, these container types. After setting aside funds needed for the payment to refund values and administrative fees, and for these expenditures, the department is authorized to expend $18,500,000 of the moneys in the fund, until January 1, 2001, for the payment of handling fees, and $5,000,000, for payments for curbside programs, until January 1, 2001, to expend $7,000,000 annually for grants to community conservation corps, and to expend $2,000,000 for grants to nonprofit organizations or government programs.

This bill would increase these amounts to $23,500,000 for the payment of handling fees, $15,000,000 for payment for curbside programs, and $15,000,000 for grants to community conservation corps. The bill would authorize the expenditure of $10,500,000 annually for payments to cities and counties for beverage container recycling and litter cleanup activities, and $500,000 for grants for beverage recycling and litter reduction programs, and would require the payment of $6,840,000 to the City of San Diego, for a curbside recycling pilot program that would be terminated on January 1, 2004. The bill would extend the authorization to expend these funds for handling fees indefinitely and for curbside programs until an unspecified date, thereby making an appropriation. The bill would require the director to register the operators of curbside programs, and to adopt a procedure for registration of these programs. The bill would include neighborhood dropoff programs, as defined, as being eligible for those payments for curbside programs. The bill would authorize the department to pay each curbside recycling program a quality glass incentive payment for color-sorted glass collected by the curbside recycling program, in a total of not more than $3,000,000 per calendar year until an unspecified date.

The bill would delete the requirement that the department transfer 25% of the redemption values to those accounts. The bill would instead require the department to establish separate processing fee accounts in the fund for each beverage material type, and would require the department to transfer funds equal to 75% of the processing payments and all of the processing fees to those accounts. The bill would continuously appropriate the money in those accounts to the department to make processing payments and reduce processing fees, thereby making an appropriation.

The bill would require the department to expend $10,000,000 annually, between January 1, 2000, and January 1, 2002, to undertake a statewide public education and information campaign and to provide a report to the Legislature, by January 1, 2002, on the impact of the campaign.

The bill would require the department to annually expend $300,000 until January 1, 2003, pursuant to a cooperative agreement with Keep California Beautiful, to conduct a statewide public education campaign.

The bill would specify a procedure for the proportionate reduction of certain expenditures pursuant to the act and would require the department to convene a specified advisory group before making expenditures for the statewide public education and information campaign.

The bill would create the Penalty Account in the fund, would require all civil penalties and fines collected by the department to be deposited in that account, and would require the department to transfer the existing fines and civil penalties in the fund to that account. The revenues in the account would be available to the department, only upon appropriation by the Legislature, to carry out the act. The bill would make conforming changes.

(7) Existing law requires the department to adopt guidelines and methods for paying handling fees to supermarket sites, until January 1, 2001. Existing law requires the department to convene a hearing to ensure that handling fees paid to supermarket site recycling centers are not used for the purpose of engaging in unfair and predatory pricing. Existing law provides that, if the department determines there is clear and convincing evidence that a handling fee recipient has engaged in unfair and predatory pricing, the respondent is not eligible to receive handling fees for 3 months.

This bill would additionally make nonprofit convenience zone recyclers and rural region recyclers eligible to receive handling fees and would delete the repeal of the provisions governing the payment of handling fees, thereby extending those provisions indefinitely.

This bill would define the term “unfair and predatory pricing” for purposes of a new hearing procedure that this bill would establish, and would make a supermarket site that the department determines has engaged in unfair and predatory pricing, ineligible to receive handling fees after the date of that determination.

The bill would require the department to conduct an audit, by January 1, 2001, of the handling fees paid to supermarket sites.

(8) The existing California Integrated Waste Management Act of 1989, which is administered by the California Integrated Waste Management Board, establishes an integrated waste management program, including providing for recycling to reduce solid waste disposal.

This bill would require the board, in consultation with the department, not later than December 1, 2000, to prepare and submit to the Legislature a report, as prescribed, that identifies any duplication or overlap between the California Integrated Waste Management Act of 1989 and the California Beverage Container Recycling and Litter Reduction Act with respect to programs pertaining to public information and education, local government review and assistance, and recycled materials market development.

(9) Under existing law, it is unlawful for any person to weigh, measure, or count any commodity unless the person is licensed as a weighmaster. Existing law exempts recycling centers established for the redemption of empty beverage containers from the laws relating to weighmasters.

This bill would additionally exempt, from those laws, certified recycling centers that purchase empty beverage containers from the public for recycling. (10) 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.

Since a violation of the requirements imposed by the bill would be a crime, the bill would impose a state-mandated local program by creating new crimes.

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

Appropriation: YES

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

SECTION 1.

Section 12701 of the Business and Professions Code is amended to read:

12701.

The following persons are not weighmasters:

(a) Retailers weighing, measuring, or counting commodities for sale by them in retail stores in the presence of, and directly to, consumers.

(b) Except for persons subject to Section 12730, producers of agricultural commodities or livestock, who weigh commodities produced or purchased by them or by their producer neighbors, when no charge is made for the weighing, or when no signed or initialed statement or memorandum is issued of the weight upon which a purchase or sale of the commodity is based.

(c) Common carriers issuing bills of lading on which are recorded, for the purpose of computing transportation charges, the weights of commodities offered for transportation, including carriers of household goods when transporting shipments weighing less than 1,000 pounds.

(d) Milk samplers and weighers licensed pursuant to Article 8 (commencing with Section 35161) of Chapter 12 of Part 1 of Division 15 of the Food and Agricultural Code, when performing the duties for which they are licensed.

(e) Persons who measure the amount of oil, gas, or other fuels for purposes of royalty computation and payment, or other operations of fuel and oil companies and their retail outlets.

(f) Newspaper publishers weighing or counting newspapers for sale to dealers or distributors.

(g) Textile maintenance establishments weighing, counting, or measuring any articles in connection with the business of those establishments.

(h) County sanitation districts operating pursuant to Chapter 3 (commencing with Section 4700) of Part 3 of Division 5 of the Health and Safety Code, garbage and refuse disposal districts operating pursuant to Chapter 2 (commencing with Section 49100) of Part 8 of Division 30 of the Public Resources Code, and solid waste facilities, as defined in Section 40194 of the Public Resources Code.

(i) Persons who purchase scrap metal or salvage materials pursuant to a nonprofit recycling program, or recycling centers certified pursuant to Division 12.1 (commencing with Section 14500) of the Public Resources Code that purchase empty beverage containers from the public for recycling.

(j) Pest control operators licensed pursuant to Chapter 4 (commencing with Section 11701) of Division 6 of the Food and Agricultural Code.

(k) Retailers, or recycling centers established solely for the redemption of empty beverage containers, as that phrase is defined in Section 14512 of the Public Resources Code, who are weighing, measuring, or counting salvage or returnable materials for purchase or redemption by them in retail stores, or, in the case of recycling centers, on the retail store premises or on a parking lot immediately adjacent to a retail store which is used for the purpose of parking by the store customers, directly from and in the presence of the seller. “Retailer” means an entity which derives 90 percent or more of its income from the sale of small quantities of food or nonfood items, or both, directly to consumers. “Salvage materials” means used paper products and used containers made of aluminum, tin, glass, or plastic.

(l) Any log scaler who performs log scaling functions, except weighing, as defined in the United States Forest Service Handbook, Supplement No. 4 of March 1987.

SEC. 2.

Section 14504 of the Public Resources Code is amended to read:

14504.

(a) “Beverage” means beer and other malt beverages, wine and distilled spirit coolers, carbonated mineral and soda waters, and similar carbonated soft drinks in liquid form which are intended for human consumption.

(b) “Beverage” does not include wine, or wine from which alcohol has been removed in whole or in part, whether or not sparkling or carbonated.

(d) This section shall become inoperative on January 1, 2000, and as of January 1, 2001, is repealed, unless a later enacted statute that is enacted before January 1, 2001, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 3.

Section 14504 is added to the Public Resources Code, to read:

14504.

(a) Except as provided in subdivision (b), “beverage” means any of the following products if those products are in liquid, ready-to-drink form, and are intended for human consumption:

(1) Beer and other malt beverages.

(2) Wine and distilled spirit coolers.

(3) Carbonated water, including soda and carbonated mineral water.

(4) Noncarbonated water, including noncarbonated mineral water.

(5) Carbonated soft drinks.

(6) Noncarbonated soft drinks and “sport” drinks.

(7) Except as provided in paragraph (4) of subdivision (b), noncarbonated fruit drinks that contain any percentage of fruit juice.

(8) Coffee and tea drinks.

(9) Carbonated fruit drinks.

(b) “Beverage” does not include any of the following:

(1) Any product sold in a container that is not an aluminum beverage container, a glass container, a plastic beverage container, or a bimetal container.

(2) Wine, or wine from which alcohol has been removed, in whole or in part, whether or not sparkling or carbonated.

(3) Milk, medical food, or infant formula.

(4) One hundred percent fruit juice in containers that are 46 ounces or more in volume.

SEC. 4.

Section 14513.4 of the Public Resources Code is amended to read:

14513.4.

“Handling fee” means an amount paid to an operator of a supermarket site, a rural region recycler, as defined in Section 14525.5.1, or a nonprofit convenience zone recycler, as defined in Section 14514.7, that is located in a convenience zone, for every beverage container redeemed by the operator at the supermarket or within the zone in which the supermarket site is located, by the rural region recycler, or by the nonprofit convenience zone recycler.

SEC. 5.

Section 14514.4.1 is added to the Public Resources Code, to read:

14514.4.1.

“Neighborhood dropoff program” means a recycling program which meets all of the following criteria:

(a) The program is certified by the department as a dropoff or collection program, as defined by Section 14511.7.

(b) The program has been designated by a city, county, or city and county to provide a recycling opportunity in residential neighborhoods specified by the city, county, or city and county.

(c) The program is located in a rural region, as identified pursuant to subparagraph (A) of paragraph (2) of subdivision (b) of Section 14571.

SEC. 6.

Section 14514.7 is added to the Public Resources Code, to read:

14514.7.

“Nonprofit convenience zone recycler” means a recycling center that meets all of the following criteria:

(a) The recycling center is operated by an organization established under Section 501(c) or 501(d) of Title 26 of the United States Code.

(b) The recycling center is certified by the department pursuant to Section 14538.

SEC. 7.

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” pursuant to Section 18015 and subject to this division.

SEC. 8.

Section 14519.5 is added to the Public Resources Code, to read:

14519.5.

“Recycler” means a recycling center, dropoff or collection program, or curbside program.

SEC. 9.

Section 14525.5.1 is added to the Public Resources Code, to read:

14525.5.1.

“Rural region recycler” means an operator that is certified pursuant to subparagraph (A) of paragraph (2) of subdivision (b) of Section 14571, and who accepts or collects empty beverage containers from consumers pursuant to Section 14572 with the intention to recycle them.

SEC. 10.

Section 14536 of the Public Resources Code is amended to read:

14536.

(a) Except as provided in subdivision (b), the director shall adopt, amend, or repeal all rules and regulations in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.

(b) (1) The director shall adopt regulations, and may adopt emergency regulations for the purposes of implementing Sections 14538, 14539, 14541, 14549.1, 14550, 14561, 14574, 14575, and 14591.

(2) Any emergency regulations, if adopted, shall be adopted in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, and for the purposes of that chapter, including Section 11349.6 of the Government Code, the adoption of these regulations is an emergency and shall be considered by the Office of Administrative Law as necessary for the immediate preservation of the public peace, health and safety, and general welfare. Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, any emergency regulations adopted pursuant to this section shall be filed with, but not be repealed by, the Office of Administrative Law and shall remain in effect until revised by the director.

SEC. 11.

Section 14542 of the Public Resources Code is repealed.

SEC. 12.

Section 14549 of the Public Resources Code is amended to read:

14549.

(a) Every glass container manufacturer shall report to the department each month, by a method as determined by the department, the amount of total tons of new glass food, drink, and beverage containers made in California by that glass container manufacturer and the tons of California postfilled glass used in the manufacturing of those new containers.

(b) Each glass container manufacturer in the state shall use a minimum percentage of 35 percent of postfilled glass in the manufacturing of their glass food, drink, or beverage containers measured in the aggregate, on an annual basis, except that if a glass container manufacturer demonstrates to the satisfaction of the department that its use of postfilled glass during the annual period is made up of at least 75 percent mixed color cullet, then that manufacturer shall use a minimum percentage of 25 percent postfilled glass in the manufacturing of its glass, food, drink, or beverage containers, measured in the aggregate, on an annual basis.

(c) A glass container manufacturer may seek a reduction or waiver of the minimum postfilled glass percentage required to be used in the manufacture of glass food, drink, or beverage containers pursuant to subdivision (b). The department may grant a reduction or waiver of the percentage requirement if it finds and determines that it is technologically infeasible for the glass container manufacturer to achieve the percentage requirement or if the department determines that a glass container manufacturer cannot achieve the minimum percentage because of a lack of available glass cullet.

(d) For the purposes of this section, “mixed color cullet” means cullet that does not meet the American Society for Testing and Materials (ASTM) standard specifications for color mix of color sorted postfilled glass as raw material for the manufacture of glass containers.

SEC. 13.

Section 14549.1 is added to the Public Resources Code, to read:

14549.1.

(a) In order to improve the quality and marketability of glass containers collected for recycling by curbside recycling programs, the department may, consistent with Section 14581 and subject to the availability of funds, pay a quality glass incentive payment to curbside recycling programs. The total amount shall not exceed three million dollars ($3,000,000) per calendar year. The department shall make a quality glass incentive payment based on all of the following:

(1) The amount of the quality glass incentive payment shall be up to twenty-five dollars ($25) per ton, as determined by the department.

(2) The department shall make a quality glass incentive payment only for color-sorted glass beverage containers that are substantially free of contamination.

(3) The department shall make a quality glass incentive payment only for glass beverage containers that are either collected color sorted by curbside recycling programs, or collected commingled by curbside recycling programs and subsequently color sorted by the collector or the operator of a materials recovery facility.

(4) Only one payment shall be made for each color-sorted glass beverage container collected.

(b) This section shall remain in effect until January 1, ____, and as of that date is repealed, unless a later enacted statute, which is enacted before January 1, ____, deletes or extends that date.

SEC. 14.

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

14549.5.

(a) Within 90 days after the effective date of this section, and annually thereafter, or more frequently as determined to be necessary by the department, the department shall review and, if necessary in order to ensure payment of the most accurate commingled rate feasible, recalculate commingled rates paid for beverage containers and postfilled containers paid to curbside recycling programs, collection programs, and recycling centers. Prior to recalculating a commingled rate pursuant to this section, the department shall consult with private and public operators of curbside recycling programs, collection programs, and recycling centers concerning the size of the statewide sample, appropriate sampling methodologies, and alternatives to exclusive reliance on a statewide commingled rate.

(b) This section shall remain in effect only until January 1, 2001, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2001, deletes or extends that date.

SEC. 15.

Section 14549.5 is added to the Public Resources Code, to read:

14549.5.

Within 90 days after the effective date of this section, and annually thereafter, or more frequently as determined to be necessary by the department, the department shall review and, if necessary in order to ensure payment of the most accurate commingled rate feasible, recalculate commingled rates paid for beverage containers and postfilled containers paid to curbside recycling programs, collection programs, and recycling centers. Prior to recalculating a commingled rate pursuant to this section, the department shall do all of the following:

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

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

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

(d) This section shall become operative on January 1, 2001.

SEC. 16.

Section 14549.6 of the Public Resources Code is amended to read:

14549.6.

(a) The department, consistent with Section 14581 and subject to the availability of funds, shall annually pay a total of fifteen million dollars ($15,000,000) per fiscal year to operators of curbside programs and neighborhood dropoff programs. The payments shall be for each container collected by the curbside or neighborhood dropoff programs and properly reported to the department by processors, based upon all of the following:

(1) The payment amount shall be calculated based upon the volume of beverage containers collected by curbside and neighborhood dropoff programs and reported to the department by processors during the reporting period of October 1 to December 31, inclusive, of the fiscal year for which those payments are made.

(2) The per-container rate shall be calculated by dividing the total volume of beverage containers collected, as determined pursuant to paragraph (1), into the sum of fifteen million dollars ($15,000,000).

(3) The amount to be paid to each operator of a curbside and neighborhood dropoff program shall be based upon the per-container rate, calculated pursuant to paragraph (2), multiplied by the curbside program’s total reported beverage container volume during the period specified in paragraph (1).

(b) The amounts paid pursuant to this section shall be expended by operators of curbside and neighborhood dropoff programs only for activities related to beverage container recycling.

(c) The department shall disburse payments pursuant to this section not sooner than the 11th month of the fiscal year for which the payments are being made, subject to the availability of funds.

SEC. 17.

Section 14549.7 is added to the Public Resources Code, to read:

14549.7.

(a) Consistent with Section 14581, the department shall pay up to six million eight hundred forty thousand dollars ($6,840,000) to the City of San Diego for a pilot program to expand that city’s curbside recycling program. Payments shall be contingent upon the execution of a cooperative agreement between the department and the City of San Diego. The cooperative agreement shall require the City of San Diego to make curbside recycling services available, on or before January 1, 2003, to a minimum of 190,000 homes that are not provided, as of January 1, 2000, with curbside recycling, and shall include an implementation and payment schedule. The department shall make these payments once every three months, contingent on the City of San Diego making satisfactory progress toward implementation of the terms of the cooperative agreement, except the department shall make the first payment within 30 days of the signing of the cooperative agreement.

(b) This section shall remain in effect until January 1, 2004, and as of that date is repealed, unless a later enacted statute, which is enacted before January 1, 2004, deletes or extends that date.

SEC. 18.

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 and revenue received for glass, PET, and bimetal containers and any beverage container that is assessed a processing fee. Every processor shall also report to the department for each month the amount of other postfilled aluminum, glass, and plastic food and drink packaging materials sold filled to consumers in this state and returned for recycling. These reports shall be submitted within 10 days after each month, in the form and manner which the department may prescribe.

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

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

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

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

SEC. 19.

Section 14551 of the Public Resources Code is amended to read:

14551.

(a) The department shall establish reporting periods for the reporting of redemption rates and recycling rates. Each reporting period shall be six months. The department shall determine all of the following for each reporting period and shall issue a report on its determinations, within 130 days of the end of each reporting period:

(1) Sales of beverages in aluminum beverage containers, bimetal beverage containers, glass beverage containers, plastic beverage containers, and other beverage containers in this state, including refillable beverage containers.

(2) Returns for recycling, and returns not for recycling, of empty aluminum beverage containers, bimetal beverage containers, glass beverage containers, plastic beverage containers, and other beverage containers in this state, including refillable beverage containers returned to distributors pursuant to Section 14572. These numbers shall be calculated using the average current weights of beverage containers, as determined and reported by the department. To these numbers shall be added and separately reported the following, if greater than, or equal to, zero:

(A) All empty postfilled aluminum, glass, and plastic food or drink packaging materials sold in the state, returned for recycling, and reported by weight to the department which do not have a refund value less the number specified in subparagraph (B).

(B) The number of beverage containers which comprise the first five percentage points of the redemption rate without including the empty postfilled aluminum, glass, and plastic food or drink packaging materials sold in the state, returned for recycling and reported by weight to the department which do not have a refund value.

(3) An aluminum beverage container redemption rate, the numerator of which shall be the number of empty aluminum beverage containers returned, including refillable aluminum beverage containers and empty postfilled aluminum food or drink packaging material included in paragraph (2), and the denominator of which shall be the number of aluminum beverage containers sold in this state.

(4) An aluminum beverage container recycling rate, the numerator of which shall be the number of empty aluminum beverage containers returned for recycling, including refillable aluminum beverage containers, and the denominator of which shall be the number of aluminum beverage containers sold in this state.

(5) A bimetal beverage container redemption rate, the numerator of which shall be the number of empty bimetal beverage containers returned, and the denominator of which shall be the number of bimetal beverage containers sold in this state.

(6) A bimetal beverage container recycling rate, the numerator of which shall be the number of empty bimetal containers returned for recycling, including refillable bimetal beverage containers, and the denominator of which shall be the number of bimetal beverage containers sold in this state.

(7) A glass beverage container redemption rate, the numerator of which shall be the number of empty glass beverage containers returned, including refillable glass beverage containers and empty postfilled food or drink packaging materials included in paragraph (2), and the denominator of which shall be the number of glass beverage containers sold in this state.

(8) A glass beverage container recycling rate, the numerator of which shall be the number of empty glass beverage containers returned for recycling, including refillable glass beverage containers, and the denominator of which shall be the number of glass beverage containers sold in this state.

(9) A plastic beverage container redemption rate, the numerator of which shall be the number of empty plastic beverage containers returned, including refillable plastic beverage containers and empty postfilled food or drink packaging materials included in paragraph (2), and the denominator of which shall be the number of plastic beverage containers sold in this state.

(10) A plastic beverage container recycling rate, the numerator of which shall be the number of empty plastic beverage containers returned for recycling, including refillable plastic beverage containers, and the denominator of which shall be the number of plastic beverage containers sold in this state.

(11) A redemption rate for other beverage containers, the numerator of which shall be the number of empty beverage containers other than those containers specified in paragraphs (1) to (10), inclusive, returned, and the denominator of which shall be the number of beverage containers, other than those containers specified in paragraphs (1) to (10), inclusive, sold in this state.

(12) A recycling rate for other beverage containers, the numerator of which shall be the number of empty beverage containers other than those containers specified in paragraphs (1) to (10), inclusive, returned for recycling, and the denominator of which shall be the number of beverage containers, other than those containers specified in paragraphs (1) to (10), inclusive, sold in this state.

(13) The department may define categories of other beverage containers, and report a redemption rate and a recycling rate for each such category of other beverage containers.

(14) The volumes of materials collected from certified recycling centers, by city or county, as requested by the city or county, if the reporting is consistent with the procedures established pursuant to Section 14554 to protect proprietary information.

(b) The department shall determine the manner of collecting the information for the reports specified in subdivision (a), including establishing procedures, to protect any proprietary information concerning the sales and purchases.

SEC. 20.

Section 14551.5 of the Public Resources Code is repealed.

SEC. 21.

Section 14551.5 is added to the Public Resources Code, to read:

14551.5.

(a) The department shall register the operators of curbside programs pursuant to this section.

(b) Each curbside program that receives refund values and administrative fees from certified processors, or that receives refund values from certified recycling centers, shall register with the department for an identification number. No curbside program may receive refund values or administrative fees without a valid identification number.

(c) The director shall adopt, by regulation, a procedure for the registration of curbside programs. This procedure shall include standards and requirements for registration. These regulations shall require that all information be submitted to the department under penalty of perjury. A curbside program shall meet all of the standards and requirements contained in the regulations for registration.

(d) The department shall require that the identification numbers received pursuant to this section be used on shipping reports for material collected by curbside programs pursuant to Sections 14538 and 14539 and on all other reports or documentation required by the department to administer this division.

SEC. 22.

Section 14560 of the Public Resources Code is repealed.

SEC. 23.

Section 14560 is added to the Public Resources Code, to read:

14560.

(a) (1) Every beverage distributor shall pay the department, for deposit into the fund, a redemption payment of two and one-half cents ($0.025) for every 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 and refund values.

(b) Except as provided in subdivision (c), every beverage container sold or offered for sale in this state has a minimum refund value of five cents ($0.05) for every two beverage containers redeemed and three cents ($0.03) for every single or unpaired beverage container redeemed in a single transaction.

(c) Notwithstanding subdivision (b), a single or unpaired beverage container of 24 fluid ounces or larger shall have a minimum refund value of five cents ($0.05).

(d) (1) The department shall periodically review the fund to ensure that there are adequate funds in the fund to pay refund values and other disbursements required by this division.

(2) If the department determines, pursuant to a review made pursuant to paragraph (1), that there may be inadequate funds to pay the refund values and necessary disbursements required by this division, the department shall immediately notify the Legislature of the need for urgent legislative action.

(3) On or before 180 days after the notice is sent pursuant to paragraph (2), the department may reduce or eliminate expenditures, or both, from the fund as necessary, according to the procedure set forth in Section 14581, to ensure that there are adequate funds in the fund to pay the refund values and other disbursements required by this division.

(e) This section does not apply to any refillable beverage container.

(f) The repeal and reenactment of this section by this act enacted during the 1999-2000 Regular Session shall not affect any obligations or penalties imposed by this section, as it read on January 1, 1999.

SEC. 24.

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

14560.5.

(a) (1) The invoice or other form of accounting of the transaction submitted by a beverage distributor of soft drinks or mineral water to a dealer shall separately identify the amount of any redemption payment imposed on beverage containers pursuant to Section 14560 and the separate identification of the invoice or other form of accounting of the transaction shall not combine or include the gross wholesale price with the redemption payment but shall separately state the gross amount of the redemption payment for each type of container included in each delivery.

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

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

(4) For the purposes of this subdivision, the term “type of container” includes the amount of the redemption payment on containers under 20 ounces and on containers 20 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, which is applied to the purchase of a beverage container.

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

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

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

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

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

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

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

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

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

SEC. 25.

Section 14561 of the Public Resources Code is amended to read:

14561.

(a) (1) A beverage manufacturer shall clearly indicate on every beverage container sold or offered for sale by that beverage manufacturer in this state the message “CA Redemption Value” or “California Redemption Value,” by either printing or embossing the beverage container or by securely affixing a clear and prominent stamp, label, or other device to the beverage container.

(2) A beverage manufacturer may affix the message “CA Cash Refund” or “California Cash Refund” on a beverage container sold or offered for sale by the beverage manufacturer, instead of the message specified in paragraph (1), but the message shall be affixed in the manner prescribed in paragraph (1).

(b) Any refillable beverage container sold or offered for sale is exempt from this section. However, any beverage manufacturer or container manufacturer may place upon, or affix to, a refillable beverage container, any message that the manufacturer determines to be appropriate relating to the refund value of the beverage container.

(c) No person shall offer to sell, or sell to a consumer a beverage container subject to subdivision (a) that has not been labeled pursuant to this section, except for a refillable beverage container that is exempt from labeling pursuant to subdivision (b).

(d) The department may require that any beverage container intended for sale in this state be printed, embossed, stamped, labeled, or otherwise marked with a universal product code or similar machine-readable indicia.

(e) Any beverage container labeled with the message specified in subdivision (a) shall have the minimum redemption payment established pursuant to Section 14560, which shall be paid by the distributor to the department pursuant to Section 14574.

(f) To the extent not otherwise authorized by this section, a glass beverage container containing noncarbonated fruit drinks that contain any percentage of fruit juice, made subject to this division pursuant to this act amending this section during the 1999 portion of the 1999–2000 Regular Session, may comply with the requirements of this section by embossing the container with the message described in paragraph (1) or (2) of subdivision (a).

(g) Notwithstanding any other requirement of this section, any beverage container that is included within the scope of this division on January 1, 2000, but that was not subject to this division before that date shall be exempt from the labeling requirements of this section until January 1, 2001.

SEC. 26.

Section 14571 of the Public Resources Code is amended to read:

14571.

(a) Except as otherwise provided in this chapter, there shall be at least one certified recycling center or location within every convenience zone which accepts and pays the refund value, if any, at one location for all types of empty beverage containers and is open for business during at least 30 hours per week with a minimum of five hours of operation occurring during periods other than from Monday to Friday, from 9 a.m. to 5 p.m.

(b) (1) Notwithstanding subdivision (a), the department may require a certified recycling center to operate 15 of its 30 hours of operation other than during 9 a.m. to 5 p.m.

(2) Notwithstanding subdivision (a) and paragraph (1), the department may certify a recycling center that will operate less than 30 hours per week, if all of the following conditions are met:

(A) The recycling center is in a rural region. For purposes of this subparagraph, “rural region” means a nonurban area identified by the department on an annual basis using Farmers Home Loan Administration criteria. Those criteria include, but are not limited to, places, open country, cities, towns, or census designated places with populations that are less than 10,000 persons. The department may designate an area with a population of between 10,000 and 50,000 persons as a rural region, unless the area is identified as part of, or associated with, an urban area, as determined by the department on an individual basis.

(B) The recycling center agrees to post a sign indicating the location of the nearest recycling center which is open at least 30 hours per week and which will accept all material types.

(C) The needs of the community and the goals of this division will be best served by certification of the operation as a recycling center.

(c) Before establishing operating hours for a certified recycling center pursuant to subdivision (b), the department shall make a determination that this action is necessary to further the goals of this division and that the proposed operating hours will not significantly decrease the ability of consumers to conveniently return beverage containers for the refund value to a certified recycling center redeeming all material types.

(d) For purposes of this section, if the recycling center is staffed and is not a reverse vending machine, a center is “open for business” if all of the following requirements are met:

(1) An employee of the certified recycling center or location is present during the hours of operation and available to the public to accept containers and to pay the refund values.

(2) In addition to the sign specified in subdivision (h), a sign having a minimum size of two feet by two feet is posted at the certified recycling center or location indicating that the center or location is open. Where allowed by local zoning requirements or where zoning restrictions apply, the sign shall be of the maximum allowable size.

(3) The prices paid, by weight or per container, are posted at the location.

(e) Except as provided in subdivision (f), for the purpose of this section, if the recycling center consists of reverse vending machines or other unmanned automated equipment, the center is “open for business” if the equipment is properly functioning, accepting all types of empty beverage containers at the recycling location, and paying posted refund values no less than the minimums required by this division.

(f) If a recycling center consists of reverse vending machines or other automated equipment, the recycling center is “open for business” if the equipment is properly functioning, and accepting all types of empty beverage containers at one physical recycling location within the recycling location.

(g) Whenever a recycling center which is a reverse vending machine is not “open for business” during the 30 hours of operation required and posted pursuant to this section and Section 14570, the dealer which is hosting the reverse vending machine at its place of business shall redeem all empty beverage container types at all open cash registers or one designated location in the store, as specified on the sign required pursuant to subdivision (h).

(h) In addition to the sign specified in paragraph (2) of subdivision (d), each reverse vending machine shall be posted with a clear and conspicuous sign on or near the reverse vending machine which states that beverage containers may be redeemed by the host dealer if the machine is nonoperational at any time during the required 30 hours of operation, pursuant to subdivision (g). The department shall determine the size and location of the sign and the message required to be printed on the sign.

SEC. 27.

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

14571.8.

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

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

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

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

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

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

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

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

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

(e) The department shall include in its annual report prepared pursuant to Section 14542 a report on curbside recycling programs and on the potential need for exemption authority additional to that provided by subdivision (d).

(f) 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 which caused the convenience zone to be exempt no longer exists, and the department determines that the criteria for an exemption specified in this section, or Section 2715 of Title 14 of the California Code of Regulations, are not presently applicable to the convenience zone.

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

(g) 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.

(h) 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 (f) occur.

SEC. 28.

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 a shipping report from the supplier of the material, in the form adopted by the department, the sum of all of the following amounts:

(1) The refund value.

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

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

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

SEC. 29.

Section 14573.5 of the Public Resources Code is amended to read:

14573.5.

(a) Except as provided in Section 14573.6, a processor shall pay to a certified recycling center, dropoff or collection program, or curbside program, for all types of empty beverage containers, by type of beverage container, received by the processor from a recycling center, curbside program, or dropoff or collection program, upon receipt by the certified processor of a shipping report from the supplier of the material, in the form adopted by the regulations adopted by the department, the sum of all of the following amounts:

(1) The refund value.

(2) Three-fourths of 1 percent of the refund value for administrative costs.

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

(b) The processor shall make the payment required in subdivision (a) within two working days of the date that the processor receives these empty beverage containers, or within the time which the department determines to be necessary and adequate. Under the procedures authorized by the department, the department may authorize a certified recycling center to cancel containers, and a certified processor may authorize a certified recycling center to cancel containers on behalf of the certified processor.

(c) If the department has set up an accounts receivable procedure or other procedure for seeking the payment of money improperly obtained by a certified recycling center from the fund, the department may reimburse the processor for its payments to that certified recycling center.

SEC. 30.

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

14574.

(a) 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 percent for the distributor’s administrative costs.

(1) Except as provided in paragraph (2), the payment shall be made within 40 days of any sale, or in the form and manner which the department may prescribe.

(2) The payment made by a distributor of beer and other malt beverages shall be made not later than the last day of the third month following the sale.

(b) (1) Notwithstanding subdivision (a), a distributor may, upon the approval of the department, elect to make a single annual payment of redemption payments, if the distributor’s projected redemption payment for a calendar year totals less than ten thousand dollars ($10,000).

(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 preceding the year in which the payment will be due.

SEC. 31.

Section 14575 of the Public Resources Code, as added by Section 3 of Chapter 1 of the Statutes of 1999, is repealed.

SEC. 32.

Section 14575 is added to the Public Resources Code, 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 or before January 3, 2000, and annually thereafter, establish a processing fee and a processing payment for the container, by the type of the material of the container.

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

(1) The actual cost for certified recycling centers, excluding centers receiving a handling fee, of receiving, handling, storing, transporting, and maintaining equipment for each container sold for recycling or, only if the container is not recyclable, the actual cost of disposal, calculated pursuant to subdivision (c). The department shall determine the statewide weighted average cost to recycle each beverage container type, which shall serve as the actual recycling costs for purposes of paragraphs (3) and (4) 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.

(1) Except as specified in paragraph (2), the department shall use the average scrap values paid to recyclers between October 1, 1998, and September 30, 1999, for the initial calculation and the same 12-month period directly preceding the year in which the processing fee is calculated for any subsequent calculation.

(2)For material types not included in the program on January 1, 1999, the department shall estimate the scrap value for the initial calculation based on a sample of average scrap values paid to recyclers between July 1, 1999, and September 30, 1999.

(3) Except as specified in subdivision (d), the department shall use the actual recycling costs for certified recycling centers, as determined pursuant to paragraph (1) of subdivision (b) by the department on or before January 1, 2000, for the initial calculation.

(4) The department shall make all subsequent determinations of the actual costs for certified recycling centers, pursuant to paragraph (1) of subdivision (b), on or before January 1, 2001, and every third year thereafter.

(d) For the January 1, 2000, processing payment calculation only, the department shall use the following cost data for certified recycling centers for the January 1, 1999, calculation:

(1) Eighty-five dollars and nineteen cents ($85.19) for each ton of glass containers.

(2) Four hundred seventeen dollars and ninety-six cents ($417.96) for each ton of bimetal containers.

(3) Six hundred forty-two dollars and sixty-nine cents ($642.69) for each ton of PET plastic containers.

(4) Six hundred forty-two dollars and sixty-nine cents ($642.69) for each ton of non-PET plastic containers.

(e) Except as specified in subdivision (f), the actual processing fee paid by beverage manufacturers shall equal 65 percent of the processing payment calculated pursuant to subdivision (b).

(f) The department, consistent with Section 14581 and subject to the availability of funds, shall reduce the processing fee paid by beverage manufacturers pursuant to subdivision (e) by expending funds in each material processing fee account, established pursuant to subparagraph (A) of paragraph (6) of subdivision (a) of Section 14581, so that the amount of the processing fee equals 25 percent of the processing payment calculated pursuant to subdivision (b).

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

(2) (A) Notwithstanding Section 14506, with respect to the payment of processing fees for beer and other malt beverages manufactured outside the state, the beverage manufacturer shall be deemed to be the person or entity named on the certificate of compliance issued pursuant to Section 23671 of the Business and Professions Code. If the department is unable to collect the processing fee from the person or entity named on the certificate of compliance, the department shall give written notice by certified mail 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 or 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), a beverage manufacturer may, upon the approval of the department, elect to make a single annual payment of processing fees, if the beverage manufacturer’s projected processing fees for a calendar year total less than one thousand dollars ($1,000).

(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 preceding the year in which the payment will be due.

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

(h) When assessing processing fees pursuant to subdivision (a), the department shall assess the processing fee on each container sold, as provided in subdivision (e), by the type of material of the container.

(i) The container manufacturer, or a designated agent, shall pay to, or credit, the account of the beverage manufacturer in an amount equal to the processing fee.

(j) The department shall annually, on or before January 1, determine the statewide average scrap values paid to recyclers by processors for beverage containers during the 12-month period ending September 30. If the department determines that the statewide average scrap values paid for glass containers is 10 percent or more above or below the previous year’s scrap value, the department shall adjust the processing payment to equal the difference between the cost of recycling and the new statewide average scrap value.

SEC. 33.

Section 14580 of the Public Resources Code is amended to read:

14580.

(a) Except as provided in subdivision (d), the department shall deposit all amounts paid as redemption payments by distributors pursuant to Section 14574 and all other revenues received into the California Beverage Container Recycling Fund, which is hereby created in the State Treasury. Notwithstanding Section 13340 of the Government Code, the money in the fund is hereby continuously appropriated to the department for expenditure without regard to fiscal year for the following purposes:

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

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

(b) Except as provided in Section 14580.5, the money in the fund may be expended by the department for the administration of this division only upon appropriation by the Legislature in the annual Budget Act.

(c) After setting aside funds estimated to be needed for expenditures authorized pursuant to this section, the department shall set aside funds on a quarterly basis for the purposes specified in Section 14581. Notwithstanding Section 13340 of the Government Code, that money is hereby continuously appropriated to the department, without regard to fiscal year, for the purposes specified in Section 14581.

(d) The department shall deposit all civil penalties or fines collected pursuant to this division into the Penalty Account, which is hereby created in the fund. The money in the Penalty Account may be expended by the department only upon appropriation by the Legislature, for purposes of this division.

SEC. 34.

Section 14581 of the Public Resources Code, as amended by Section 4 of Chapter 1 of the Statutes of 1999, is amended to read:

14581.

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

(1) Twenty-three million five hundred thousand dollars ($23,500,000) shall be expended annually for the payment of handling fees required pursuant to Section 14585.

(2) Fifteen million dollars ($15,000,000) shall be expended annually, until January 1, ____, 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.

(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.

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

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

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

(5) (A) Five hundred thousand dollars ($500,000) may be expended annually in the form of grants for beverage container recycling and litter reduction programs.

(B) Up to a total of six million eight hundred forty thousand dollars ($6,840,000) shall be paid to the City of San Diego, between January 1, 2000, and January 1, 2004, for a curbside recycling program conducted pursuant to Section 14549.7.

(6) (A) The department shall expend the amount necessary to pay the processing payment established pursuant to subdivision (b) of 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 is calculated pursuant to Section 14575, 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 subdivision (g) of Section 14575.

(ii) Funds equal to pay 75 percent of the processing payments established in subdivision (b) of Section 14575, in order to reduce the processing fee to the level provided in subdivision (f) of Section 14575.

(B) Notwithstanding Section 13340 of the Government Code, the money in each processing fee account is hereby continuously appropriated to the department for expenditure without regard to fiscal year, for purposes of making processing payments, and reducing processing fees, pursuant to Section 14575.

(7) (A) Up to 10 million dollars ($10,000,000) shall be expended by the department between January 1, 2000, and January 1, 2002, for the purposes of undertaking a statewide public education and information campaign aimed at promoting increased recycling of beverage containers.

(B) Notwithstanding Section 7550.5 of the Government Code, on or before January 1, 2002, the department shall provide a report to the Legislature on the impact of the statewide public education and information campaign and make recommendations for any future campaigns.

(8) Up to three million dollars ($3,000,000) shall be expended annually, until January 1, ____, for the payment of quality glass incentive payments pursuant to Section 14549.1.

(9) (A) Three hundred thousand dollars ($300,000) shall be expended annually by the department, until January 1, 2003, pursuant to a cooperative agreement entered into between the department and Keep California Beautiful, a nonprofit 501(c)(3) organization chartered by the State of California in 1990, for the purpose of conducting statewide public education campaigns aimed at preventing and cleaning up beverage containers and related litter. The campaigns shall include, but not be limited to, coordination of Keep California Beautiful month.

(B) Prior to making an expenditure pursuant to this paragraph, the department shall enter into a cooperative agreement with Keep California Beautiful.

(C) As part of the cooperative agreement, Keep California Beautiful shall provide the department with an annual campaign plan and budget, and a report of previous year campaign activities.

(D) On or before July 1, 2002, the department shall make a recommendation to the Legislature on future funding for beverage container litter prevention and cleanup activities by Keep California Beautiful.

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

(c) (1) The department shall review all funds on a quarterly basis to ensure that there are adequate funds to make the payments specified in this section and the processing fee reductions required pursuant to Section 14575.

(2) If the department determines, pursuant to a review made pursuant to paragraph (1), that there may be inadequate funds to pay the payments required by this section and the processing fee reductions required pursuant to Section 14575, the department shall immediately notify the appropriate policy and fiscal committees of the Legislature regarding the inadequacy.

(3) On or before 180 days after the notice is sent pursuant to paragraph (2), the department may reduce or eliminate expenditures, or both, from the funds as necessary, according to the procedure set forth in subdivision (d).

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

(e) Prior to making an expenditure pursuant to paragraph (7) of subdivision (a), the department shall convene an advisory committee consisting of representatives of the beverage industry, beverage container manufacturers, environmental organizations, the recycling industry, nonprofit organizations, and retailers, to advise the department on the most cost-effective and efficient method of the expenditure of the funds for that education and information campaign.

SEC. 35.

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, or rural region recyclers to provide an incentive for the redemption of empty beverage containers in convenience zones. The guidelines shall include, but not be limited to, all of the following:

(1) Handling fees shall be paid on a monthly basis, in the form and manner adopted by the department. The department shall require that claims for the handling fee be filed with the department not later than the first day of the second month following the month for which the handling fee is claimed as a condition of receiving any handling fee.

(2) To be eligible for any handling fee, a supermarket site recycling center, nonprofit convenience zone recycler, or rural region recycler shall redeem not less than 60,000 beverage containers, and, except for operators of certified recycling centers that are nonprofit organizations, not more than 500,000 beverage containers, during the calendar month in which the handling fee is claimed.

(3) A beverage container with a capacity of 24 fluid ounces or more shall be considered as two beverage containers for purposes of determining the eligibility percentage, any handling fee calculations, and payments.

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

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

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

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

(5) The department shall pay a handling fee of 1.8 cents ($0.018) per eligible beverage container, as determined pursuant to paragraph (4).

(6) Notwithstanding paragraph (5), the total handling fee payment to a supermarket site, nonprofit convenience zone recycler, or rural region recycler shall not exceed two thousand three hundred dollars ($2,300) per month.

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

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

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

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

(b) The department may allocate the twenty-three million five hundred thousand dollars ($23,500,000) authorized for expenditure for the payment of handling fees pursuant to paragraph (1) of subdivision (a) of Section 14581 on a monthly basis and may carry over any unexpended monthly allocation to a subsequent month or months. However, unexpended monthly allocations shall not be carried over to a subsequent fiscal year for the purpose of paying handling fees but may be carried over for any other purpose pursuant to Section 14581.

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

(2) The department shall offer a single handling fee payment to a rural region recycler that is located anywhere inside a convenience zone that is not served by another certified recycling center and 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.

SEC. 36.

Chapter 7.5 (commencing with Section 14588) is added to Division 12.1 of the Public Resources Code, to read:

CHAPTER 7.5. Penalties for Unfair Recycling Competition

14588.

It is the intent of the Legislature that handling fees paid to supermarket site recycling centers pursuant to Section 14585 shall only be used to offset the unique costs of providing convenient recycling opportunities to consumers at supermarket sites, and that those fees may not be expended for the purpose of engaging in unfair and predatory competition in order to reduce recycling rates of other recycling centers certified pursuant to this division.

14588.1.

As used in this chapter, “unfair and predatory pricing” means the offering of a payment to a consumer by a supermarket site, that receives handling fees for the redemption of a beverage container, in an amount that exceeds the sum of both of the following:

(a) The refund value for that container.

(b) The average scrap value paid for the container by a certified recycling center located within a 10-mile radius of the supermarket site on the date of the alleged occurrence, or, if the allegation is based upon an advertisement in a newspaper, periodical, or other publication, the date on which the advertisement was purchased.

14588.2.

To ensure that handling fees paid to a supermarket site are not used for the purpose of engaging in unfair and predatory pricing, and to otherwise further the intent of this chapter, the department shall, upon the complaint of a person other than the department, do all of the following:

(a) Within 30 days of receiving the complaint, the department shall complete an audit of the payments for the redemption of beverage containers being offered or paid by the supermarket site, and by all other certified recycling centers within a 10-mile radius of the supermarket site, for the purpose of determining whether the supermarket site is engaged in unfair and predatory pricing.

(b) If the director determines there is probable cause that a supermarket site, against which a complaint has been made, has engaged in unfair and predatory pricing, the director shall, within 30 days of receiving the complaint, convene an informal hearing before the director, or the director’s designee. At the hearing, the director, or the director’s designee, shall review the audit conducted pursuant to subdivision (a) and any evidence presented by the complainant that a supermarket site has engaged in unfair and predatory pricing. The director, or the director’s designee, shall also review any evidence presented by the respondent that the respondent has not engaged in unfair and predatory pricing. The respondent shall have the burden of proof in demonstrating that it has not engaged in unfair and predatory pricing.

(c) Within 10 days of the completion of the hearing, the director, or the director’s designee, shall determine whether the supermarket site has engaged in unfair and predatory pricing. This determination shall be based upon the audit conducted pursuant to subdivision (a), and upon any clear and convincing evidence of unfair and predatory pricing presented at the hearing.

(d) During the time period from the date of the receipt of a complaint pursuant to subdivision (a), until the date the director makes a determination pursuant to subdivision (c), the supermarket site against which the allegation of unfair and predatory pricing is made shall not receive handling fees. However, nothing in this subdivision shall affect the payment of handling fees to a supermarket site that is found not to have engaged in unfair and predatory pricing pursuant to this section, or to the activities of a supermarket site prior to the date of the alleged unfair and predatory pricing.

(e) If, after complying with the procedure established pursuant to this section, the director, or the director’s designee, determines that a supermarket site has engaged in unfair and predatory pricing, the site is ineligible to receive handling fees after the date of that determination.

(f) The complainant or respondent may obtain a review of the determination made pursuant to this section by filing in the superior court a petition for a writ of mandate within 30 days following the issuance of the determination. Section 1094.5 of the Code of Civil Procedure shall govern judicial proceedings pursuant to this subdivision, except that the court shall exercise its independent judgment. If a petition for a writ of mandate is not filed within the time limits set forth in this subdivision, the determination made pursuant to this subdivision is not subject to review by any court or agency.

(g) If either party appeals the determination of the director, or the director’s designee, pursuant to subdivision (f), and the department prevails, the department may recover any costs associated with its defense of the complaint.

SEC. 37.

Section 14591.1 of the Public Resources Code is amended to read:

14591.1.

(a) The department may assess penalties pursuant to this division only after notice and hearing in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code. Each violation of this division is a separate violation and each day of the violation is a separate violation. The department shall deposit all revenues from civil penalties in the Penalty Account specified in subdivision (g) of Section 14580.

(b) Any person who intentionally or negligently violates this division may be assessed a civil penalty by the department of up to five thousand dollars ($5,000) for each separate violation, or for continuing violations, for each day that violation occurs.

(c) Any person who violates this division by an action not subject to subdivision (b) may be assessed a civil penalty by the department of up to one thousand dollars ($1,000) for each separate violation, or for continuing violations, for each day that violation occurs.

(d) No person may be liable for a civil penalty imposed under subdivision (b) and for a civil penalty imposed under subdivision (c) for the same act or failure to act.

SEC. 38.

Section 40511 is added to the Public Resources Code, to read:

40511.

(a) Notwithstanding Section 7550.5 of the Government Code, on or before December 1, 2000, the board, in consultation with the Department of Conservation, shall prepare and submit to the Legislature a report that identifies any duplication or overlap between the following programs authorized under this division and Division 12.1 (commencing with Section 14500) administered and funded by the two agencies:

(1) Public information and education programs.

(2) Local government review and assistance programs.

(3) Recycled materials market development programs.

(b) The report shall include, but not be limited to, suggested legislation, budget actions, or administrative actions that could be taken to eliminate duplication or overlap between the two agencies and programs.

SEC. 39.

On or before January 1, 2001, the Department of Conservation shall conduct an audit of the handling fees paid to supermarket sites subject to Section 14585 of the Public Resources Code. The audit shall include all of the following:

(a) A review of the costs of supermarket site recycling operations, excluding those typical operational costs allowable under the processing fees established pursuant to Section 14575 of the Public Resources Code.

(b) An identification of any costs that are unique to supermarket sites and that would warrant the payment of handling fees for these sites.

(c) An evaluation of whether or not the legislative objective to establish convenient supermarket site recycling centers has been achieved and, if so, the need to continue such a subsidy program.

(d) An assessment and evaluation of the reasonableness of administrative and overhead costs identified as unique to these supermarket site recycling centers.

SEC. 40.

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.

Bill Text

Bill Information

SB-332 Beverage containers.(1999-2000)

Bill Start

LEGISLATIVE COUNSEL'S DIGEST

Digest Key

Bill Text

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

SECTION 1.

12701.

SEC. 2.

14504.

SEC. 3.

14504.

SEC. 4.

14513.4.

SEC. 5.

14514.4.1.

SEC. 6.

14514.7.

SEC. 7.

14515.5.

SEC. 8.

14519.5.

SEC. 9.

14525.5.1.

SEC. 10.

14536.

SEC. 11.

SEC. 12.

14549.

SEC. 13.

14549.1.

SEC. 14.

14549.5.

SEC. 15.

14549.5.

SEC. 16.

14549.6.

SEC. 17.

14549.7.

SEC. 18.

14550.

SEC. 19.

14551.

SEC. 20.

SEC. 21.

14551.5.

SEC. 22.

SEC. 23.

14560.

SEC. 24.

14560.5.

SEC. 25.

14561.

SEC. 26.

14571.

SEC. 27.

14571.8.

SEC. 28.

14573.

SEC. 29.

14573.5.

SEC. 30.

14574.

SEC. 31.

SEC. 32.

14575.

SEC. 33.

14580.

SEC. 34.

14581.

SEC. 35.

14585.

SEC. 36.

CHAPTER 7.5. Penalties for Unfair Recycling Competition

14588.

14588.1.

14588.2.

SEC. 37.