Today's Law As Amended


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AB-1244 Beverage containers.(1999-2000)



As Amends the Law Today


SECTION 1.

 Section 14549.1 of the Public Resources Code, as proposed to be added by Senate Bill 332, is repealed.

14549.1.
 (a) In order to improve the quality and marketability of empty beverage containers collected for recycling in the state by curbside recycling programs or dropoff or collection programs, the department may, consistent with Section 14581 and subject to the availability of funds, pay a quality incentive payment for each material type, as specified in subdivision (c).
(b) The department may make a quality incentive payment pursuant to this section to either an operator of a curbside recycling program registered pursuant to Section 14551.5, or to any other entity certified pursuant to this division.
(c) Subject to subdivision (a), the department shall pay a quality incentive payment for each type of beverage container material in accordance with the following conditions:
(1) For quality incentive payments for empty glass beverage containers, all of the following shall apply:
(A) The department may make a quality incentive payment only for color-sorted glass beverage containers that are substantially free of contamination and are used for the manufacturing of glass beverage containers in this state.
(B) The department may make a quality incentive payment for empty glass beverage containers that are either collected color sorted by curbside recycling programs or dropoff or collection programs, or that are collected mixed color by curbside recycling programs or dropoff or collection programs and are subsequently color sorted by the collector or any other entity certified pursuant to this division.
(C) The amount of the quality incentive payment for empty glass beverage containers shall be up to sixty dollars ($60) per ton, as determined by the department.
(2) For quality incentive payments for empty plastic beverage containers, both of the following shall apply:
(A) The department may make a quality incentive payment only for plastic beverage containers collected by curbside recycling programs or dropoff or collection programs, that are sorted by resin type, consistent with any quality specifications that the department may adopt.
(B) The amount of the quality plastic incentive payment shall be up to one hundred eighty dollars ($180) per ton, as determined by the department.
(3) For quality payments for empty aluminum beverage containers, all of the following shall apply:
(A) The department may make a quality incentive payment only for aluminum beverage containers that are free of any and all metallic and nonmetallic items, other than used aluminum containers.
(B) The department may make a quality incentive payment for empty aluminum beverage containers that are collected commingled by curbside recycling programs or dropoff or collection programs, and subsequently cleaned by the collector or any other entity certified pursuant to this division, of any and all metallic and nonmetallic items, other than used aluminum containers, consistent with any quality specifications that the department may adopt.
(C) The amount of the quality incentive payment for empty aluminum beverage containers shall be up to one hundred twenty-five dollars ($125) per ton, as determined by the department.
(d) An operator of a curbside recycling program or any other certified entity receiving a quality incentive payment shall make available for inspection and review any relevant record that the department determines is necessary to verify the accuracy of data upon which the quality incentive payment is based and the operator’s or certified entity’s compliance with any applicable regulation.
(e) The department may make only one quality incentive payment for each empty beverage container collected pursuant to this section.
(f) This section shall become operative on January 1, 2007.

SEC. 2.

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

14549.1.
 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:
(a) The amount of the quality glass incentive payment shall be up to twenty-five dollars ($25) per ton, as determined by the department.
(b) The department shall make a quality glass incentive payment only for color-sorted glass beverage containers that are substantially free of contamination.
(c) 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.
(d) Only one payment shall be made for each color-sorted glass beverage container collected.

SEC. 3.

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

14550.
 (a) (1) Every processor shall report to the department for each month the amount of empty beverage containers, by material type and weight of container or material, excluding refillable beverage containers, received from recycling centers and curbside programs for recycling, and the scrap value paid for glass, PET, and bimetal containers and any beverage container that is assessed a processing fee. Every processor shall also report to the department for each month the amount of other postfilled aluminum, glass, and plastic food and drink packaging materials sold filled to consumers in this state and returned for recycling. These reports shall be submitted within 10 days after each month, in the form and manner that the department may prescribe, which may include electronic submittal. prescribe. 
(2) The department shall treat all information reported pursuant to this section by a processor as commercial or financial information subject to the procedures established pursuant to Section 14554.
(b) Every distributor who sells or offers for sale in this state beverages in aluminum beverage containers, nonaluminum metal beverage containers, glass beverage containers, plastic beverage containers, or other beverage containers, including refillable beverage containers of these types, shall report to the department for each month the number of beverages sold in these beverage containers in this state that 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 that which  the department may prescribe, which may include electronic submittal. prescribe. 
(c) Every distributor who sells or offers for sale in this state beverages in refillable beverage containers and who pays a refund value to distributors, dealers, or consumers who return these containers for refilling, shall report to the department for each month the number of these beverage containers returned empty to be refilled, by material type and size of container or any other method that 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 that which  the department may prescribe, which may include electronic submittal. prescribe. 
(d) Notwithstanding subdivision (b), a distributor who elects to make an annual payment pursuant to subdivision (b) of Section 14574 may, upon department approval,  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. 4.

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

14560.5.
 (a) (1) Except as provided in paragraph (2), an  The  invoice or other form of accounting of a the  transaction submitted by a beverage distributor of beverages  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) An The  invoice or other form of accounting of a the  transaction submitted by a any  distributor of beer and malt beverages,  beverages or  wine and distilled spirit coolers, wine, wine from which alcohol has been removed, in whole or in part, whether or not sparkling or carbonated, or distilled spirits  or distilled spirit coolers  to a dealer may separately identify the portion of the gross wholesale price attributable to any redemption payment imposed on beverage containers pursuant to Section 14560 and the separate identification of the invoice or other form of accounting of the transaction may separately state the gross amount of the redemption payment for each type of container included in each delivery. The invoice or other form of accounting of this transaction may separately identify the portion of the gross wholesale price attributable to the redemption payment.
(3) Notwithstanding Section 14541, the department shall randomly inspect beverage distributor invoices or other forms of accounting to ensure compliance with this subdivision. However, an unintentional error in addition or subtraction on an invoice or other form of accounting by a route driver of a distributor shall not be deemed a violation of this subdivision.
(4) For the  purposes of this subdivision, the term “type of container” includes the amount of the redemption payment on containers under 24 ounces and on containers 24 ounces or more.
(b) To the extent technically and economically feasible, a dealer may separately identify the amount of any redemption payment on the customer cash register receipt provided to the consumer, by the dealer, that is applied to the purchase of a beverage container.
(c) (1) A dealer shall separately identify the amount of any redemption payment imposed on a beverage container in all advertising of beverage products and on the shelf labels of the dealer’s establishment. The separate identification shall be accomplished by stating one of the following:
(A) The price of the beverage product plus a descriptive term, as described in paragraph (2).
(B) The price of the beverage product plus the amount of the applicable redemption payment and a descriptive term, as described in paragraph (2).
(C) The price of the beverage product plus the amount of the applicable redemption payment, a descriptive term, as described in paragraph (2), and the total of these two amounts.
(2) For purposes of paragraph (1), the redemption payment shall be identified by one of the following descriptive terms: “California Redemption Value,” “CA Redemption Value,” “CRV,” “California Cash Refund,” “CA Cash Refund,” or any other message specified in Section 14561.
(3) A dealer shall not include the redemption payment in the total price of a beverage container in any advertising or on the shelf of the dealer’s establishment.
(4) This subdivision applies only to a dealer at a dealer location with a sales and storage area totaling more than 4,000 square feet.
(5) The penalties specified in Sections 14591 and 14591.1 shall not apply  be applied  to a person who violates this subdivision.
(6) For purposes of paragraph (1), the shelf labels for a beverage that is included within the scope of this division beginning on January 1, 2024, but that was not subject to this division before that date, are not required until January 15, 2024.
(d) With regard to the sale of beer and other malt beverages,  beverages or  wine and distilled spirit cooler beverages, wine, wine from which alcohol has been removed, in whole or in part, whether or not sparkling or carbonated, and distilled spirits,  spirits cooler beverages,  any amount of redemption payment imposed by this division is subject to Section 25509 of the Business and Professions Code.

SEC. 5.

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

14561.
 (a) (1)  A beverage manufacturer shall clearly indicate on all every  beverage containers container  sold or offered for sale by that beverage manufacturer in the this  state the message “CA Redemption Value,”  Value” or  “California Redemption Value,” “CA Cash Refund,” “California Cash Refund,” or “CA CRV,”  by either printing or embossing the beverage container or by securely affixing a clear and prominent stamp, label, or other device to the beverage container.
(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) A Any  refillable beverage container sold or offered for sale is exempt from this section. However, a any  beverage manufacturer or container manufacturer may place upon, or affix to, a refillable beverage container container,  any message that the manufacturer determines to be appropriate relating to the refund value of the beverage container.
(c) A No  person shall not  offer to sell, or sell, sell  to a consumer, consumer  a beverage container subject to subdivision (a) that has not been labeled pursuant to this section, except for a refillable beverage container that is exempt from labeling pursuant to subdivision (b).
(d) The department may require that a any  beverage container intended for sale in the this  state be printed, embossed, stamped, labeled, or otherwise marked with a scan code, a quick response (QR) code, or a  universal product code or similar machine-readable indicia.
(e) A 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) (1) To  Notwithstanding any other requirement of this section, all of the following shall apply:  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). 
(A) (g)  A  Notwithstanding any other requirement of this section, any  beverage container that is included within the scope of this division beginning  on January 1, 2024, 2000,  but that was not subject to this division before that date, shall be exempt from the labeling requirements of this section until July 1, 2025. January 1, 2001. However, even though these beverage containers are not required to bear the message required by this section from January 1, 2000, to January 1, 2001, inclusive, notwithstanding subdivision (c) of Section 14512, they shall be considered “empty beverage containers” for all of the purposes of this division during that period of time. 
(B) A beverage container that is included within the scope of this division beginning on January 1, 2024, but that was not subject to this division before that date, and that was filled and labeled before January 1, 2024, shall be exempt from the labeling requirements of this section.
(C) A beverage container containing a beverage described in paragraph (7) or (9) of subdivision (a) of Section 14504 that is included within the scope of this division beginning on January 1, 2024, but that was not subject to this division before that date, and that was filled and labeled before July 1, 2024, shall be exempt from the labeling requirements of this section.
(2) A beverage container described in subparagraph (A), (B), or (C) of paragraph (1) shall be considered an “empty beverage container” for purposes of this division as of January 1, 2024.
(g) Notwithstanding any other requirement in statute or regulation, including, but not limited to, paragraph (1) of subdivision (a) of Section 2200 of Title 14 of the California Code of Regulations, wine and distilled spirit manufacturers licensed pursuant to the Alcoholic Beverage Control Act (Division 9 (commencing with Section 23000) of the Business and Professions Code) shall not be required to provide samples of proposed labels or beverage containers to the department for approval before the sale or transfer of beverage containers in the state. The department shall provide the relevant labeling criteria to those wine and distilled spirit manufacturers, which the manufacturers shall use to self-certify compliance with that criteria on their registration materials submitted to the department under this division. A manufacturer may request assistance from the department in determining compliance with the labeling criteria.

SEC. 6.

 Section 14575 of the Public Resources Code, as proposed to be added by Senate Bill 332, is repealed.

14575.
 (a) If any type of empty beverage container with a refund value established pursuant to Section 14560 has a scrap value less than the cost of recycling, the department shall, on January 1, 2000, and on or before January 1 annually thereafter, establish a processing fee and a processing payment for the container by the type of the material of the container.
(b) The processing payment shall be at least equal to the difference between the scrap value offered to a statistically significant sample of recyclers by willing purchasers, and except for the initial calculation made pursuant to subdivision (d), the sum of both of the following:
(1) The actual cost for certified recycling centers, excluding centers receiving a handling fee, of receiving, handling, storing, transporting, and maintaining equipment for each container sold for recycling or, only if the container is not recyclable, the actual cost of disposal, calculated pursuant to subdivision (c). The department shall determine the statewide weighted average cost to recycle each beverage container type, which shall serve as the actual recycling costs for purposes of paragraph (2) of subdivision (c), by conducting a survey of the costs of a statistically significant sample of certified recycling centers, excluding those recycling centers receiving a handling fee, for receiving, handling, storing, transporting, and maintaining equipment.
(2) A reasonable financial return for recycling centers.
(c) The department shall base the processing payment pursuant to this section upon all of the following:
(1) Except as provided in paragraph (2), for calculating processing payments that will be in effect on and after January 1, 2004, the department shall determine the actual costs for certified recycling centers, every second year, pursuant to paragraph (1) of subdivision (b). The department shall adjust the recycling costs annually to reflect changes in the cost of living, as measured by the Bureau of Labor Statistics of the United States Department of Labor or a successor agency of the United States government.
(2) On and after January 1, 2010, the department shall use the most recently published, measured actual costs of recycling for a specific beverage container material type if the department determines the number of beverage containers for that material type that is returned for recycling pursuant to Section 14551, based on the most recently published calendar year number of beverage containers returned for recycling, is less than 5 percent of the total number of beverage containers returned for recycling for all material types. The department shall determine the actual recycling cost to be used for calculating processing payments for those beverage containers in the following manner:
(A) The department shall adjust the costs of recycling that material type every second year by the percentage change in the most recently measured cost of recycling HDPE plastic beverage containers, as determined by the department. The department shall use the percentage change in costs of recycling HDPE plastic beverage containers for this purpose, even if HDPE plastic beverage containers are less than 5 percent of the total volume of returned beverage containers.
(B) The department shall adjust the recycling costs annually for that material type to reflect changes in the cost of living, as measured by the Bureau of Labor Statistics of the United States Department of Labor or a successor agency of the United States government.
(d) Except as specified in subdivision (e), the actual processing fee paid by a beverage manufacturer shall equal 65 percent of the processing payment calculated pursuant to subdivision (b).
(e) The department, consistent with Section 14581 and subject to the availability of funds, shall reduce the processing fee paid by beverage manufacturers by expending funds in each material processing fee account, in the following manner:
(1) On January 1, 2005, and annually thereafter, the processing fee shall equal the following amounts:
(A) Ten percent of the processing payment for a container type with a recycling rate equal to or greater than 75 percent.
(B) Eleven percent of the processing payment for a container type with a recycling rate equal to or greater than 65 percent, but less than 75 percent.
(C) Twelve percent of the processing payment for a container type with a recycling rate equal to or greater than 60 percent, but less than 65 percent.
(D) Thirteen percent of the processing payment for a container type with a recycling rate equal to or greater than 55 percent, but less than 60 percent.
(E) Fourteen percent of the processing payment for a container type with a recycling rate equal to or greater than 50 percent, but less than 55 percent.
(F) Fifteen percent of the processing payment for a container type with a recycling rate equal to or greater than 45 percent, but less than 50 percent.
(G) Eighteen percent of the processing payment for a container type with a recycling rate equal to or greater than 40 percent, but less than 45 percent.
(H) Twenty percent of the processing payment for a container type with a recycling rate equal to or greater than 30 percent, but less than 40 percent.
(I) Sixty-five percent of the processing payment for a container type with a recycling rate less than 30 percent.
(2) The department shall calculate the recycling rate for purposes of paragraph (1) based on the 12-month period ending on June 30 that directly precedes the date of the January 1 processing fee determination.
(f) Not more than once every three months, the department may make an adjustment in the amount of the processing payment established pursuant to this section for any beverage container, based on the applicable preceding 12-month average scrap value or the preceding 3-month average scrap value, whichever is lower. Quarterly adjustments made pursuant to this subdivision shall not cause a change in the annual January 1 processing fee established by this section.
(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 that the department may prescribe.
(2) (A) Notwithstanding Section 14506, with respect to the payment of processing fees for beer and other malt beverages manufactured outside the state, the beverage manufacturer shall be deemed to be the person or entity named on the certificate of compliance issued pursuant to Section 23671 of the Business and Professions Code. With respect to the payment of processing fees for beverages manufactured outside the state and sold directly to consumers within the state with a direct shipper permit, the beverage manufacturer shall be deemed to be the person or entity named on the direct shipper permit issued pursuant to Section 23661.3 of the Business and Professions Code, and shall be responsible for paying to the department the total processing fee payment for all sales and transfers made directly to consumers in the state. If the department is unable to collect the processing fee from the person or entity named on the certificate of compliance or direct shipper permit, the department shall give written notice by certified mail, return receipt requested, to that person or entity. The notice shall state that the processing fee shall be remitted in full within 30 days of issuance of the notice or the person or entity shall not be permitted to offer that beverage brand for sale within the state. If the person or entity fails to remit the processing fee within 30 days of issuance of the notice, the department shall notify the Department of Alcoholic Beverage Control that the certificate holder has failed to comply, and the Department of Alcoholic Beverage Control shall prohibit the offering for sale of that beverage brand within the state.
(B) The department shall enter into a contract with the Department of Alcoholic Beverage Control, pursuant to Section 14536.5, concerning the implementation of this paragraph, which shall include a provision reimbursing the Department of Alcoholic Beverage Control for its costs incurred in implementing this paragraph.
(3) (A) Notwithstanding paragraph (1), if a beverage manufacturer displays a pattern of operation in compliance with this division and the regulations adopted pursuant to this division, to the satisfaction of the department, the beverage manufacturer may make a single annual payment of processing fees, if the beverage manufacturer meets either of the following conditions:
(i) If the redemption payment and refund value is not increased pursuant to paragraph (3) of subdivision (a) of Section 14560, the beverage manufacturer’s projected processing fees for a calendar year total less than ten thousand dollars ($10,000).
(ii) If the redemption payment and refund value is increased pursuant to paragraph (3) of subdivision (a) of Section 14560, the beverage manufacturer’s projected processing fees for a calendar year total less than fifteen thousand dollars ($15,000).
(B) An annual processing fee payment made pursuant to this paragraph is due and payable on or before February 1 for every beverage container sold or transferred by the beverage manufacturer to a distributor or dealer in the previous calendar year.
(C) A beverage manufacturer shall notify the department of its intent to make an annual processing fee payment pursuant to this paragraph on or before January 31 of the calendar year for which the payment will be due.
(4) The department shall pay the processing payments on redeemed containers to processors, in the same manner as it pays refund values pursuant to Sections 14573 and 14573.5. The processor shall pay the recycling center the entire processing payment representing the actual costs and financial return incurred by the recycling center, as specified in subdivision (b).
(h) When assessing processing fees pursuant to subdivision (a), the department shall assess the processing fee on each container sold, as provided in subdivisions (d) and (e), by the type of material of the container, assuming that every container sold will be redeemed for recycling, whether or not the container is actually recycled.
(i) 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) If, at the end of any calendar year for which glass recycling rates equal or exceed 45 percent and sufficient surplus funds remain in the glass processing fee account to make the reduction pursuant to this subdivision or if, at the end of any calendar year for which PET recycling rates equal or exceed 45 percent and sufficient surplus funds remain in the PET processing fee account to make the reduction pursuant to this subdivision, the department shall use these surplus funds in the respective processing fee accounts in the following calendar year to reduce the amount of the processing fee that would otherwise be due from glass or PET beverage manufacturers pursuant to this subdivision.
(1) The department shall reduce the glass or PET processing fee amount pursuant to this subdivision in addition to any reduction for which the glass or PET beverage container qualifies under subdivision (e).
(2) The department shall determine the processing fee reduction by dividing two million dollars ($2,000,000) from each processing fee account by an estimate of the number of containers sold or transferred to a distributor during the previous calendar year, based upon the latest available data.
(k) (1) Commencing January 1, 2024, a processing fee equivalent to the processing fee applied to HDPE beverage containers shall be applied to a beverage container that is a box, bladder, or pouch, or similar container, containing wine or distilled spirits, as described in paragraph (12) of subdivision (a) of Section 14504.
(2) Commencing January 1, 2024, a processing payment equal to the processing payment applied to HDPE beverage containers shall be applied to a beverage container that is a box, bladder, or pouch, or similar container, containing wine or distilled spirits, as described in paragraph (12) of subdivision (a) of Section 14504.
(3) This subdivision shall become inoperative on January 1, 2026.

SEC. 7.

 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 January 1, 2000, and on or before January 1 annually thereafter, establish a processing fee and a processing payment for the container, by the type of the material of the container.
(b) The processing payment shall be at least equal to the difference between the scrap value offered to a statistically significant sample of recyclers by willing purchasers, and except for the initial calculation made pursuant to subdivision (d), the sum of both of the following:
(1) The actual cost for certified recycling centers, excluding centers receiving a handling fee, of receiving, handling, storing, transporting, and maintaining equipment for each container sold for recycling or, only if the container is not recyclable, the actual cost of disposal, calculated pursuant to subdivision (c). The department shall determine the statewide weighted average cost to recycle each beverage container type, which shall serve as the actual recycling costs for purposes of paragraphs (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.
(c) The department shall base the processing payment pursuant to this section upon all of the following:
(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 before January 1, 2001, and every third year thereafter.
(d) Except as provided in subparagraph (B) of paragraph (4), the department shall use the following cost data for certified recycling centers for the January 1, 2000, 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) (A) Six hundred forty-two dollars and sixty-nine cents ($642.69) for each ton of non-PET plastic containers.
(B) Notwithstanding this subdivision, in calculating the January 1, 2001, processing payment for non-PET plastic containers, the department shall also use the same cost data specified in subparagraph (A).
(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) Prior to January 1, 2001, the department may adjust a processing fee established pursuant to this section for any plastic beverage container, if both of the following occur:
(1) The department determines that the average statewide scrap values paid by willing purchasers for that beverage container materials type are less than the average scrap values used as the basis for the processing fee calculation.
(2) The department determines that adjusting the processing fee is necessary to further the objectives of this division.
(h) (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).
(i) 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.
(j) The container manufacturer, or a designated agent, shall pay to, or credit, the account of the beverage manufacturer in an amount equal to the processing fee.
(k) 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. 8.

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

14581.
 (a) Subject to the availability of funds and in accordance with subdivision (b), funds, and pursuant to subdivision (c),  the department shall expend the moneys money  set aside in the fund, pursuant to subdivision (c) of Section 14580, 14580  for the purposes of this section in the following manner: section: 
(1) For each fiscal year, the department may expend the amount necessary to make the required handling fee payment Twenty-three million five hundred thousand dollars ($23,500,00) 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 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.
(3) (4)  (A) Ten million five hundred thousand dollars ($10,500,000) may be expended annually for payments of five thousand dollars ($5,000) to cities and ten thousand dollars ($10,000) for payments to counties for beverage container recycling and litter cleanup activities, or the department may calculate the payments to counties and cities on a per capita basis, and may pay whichever amount is greater, for those activities.
(B) Eligible activities for the use of these funds may include, but are not necessarily limited to, support for new or existing curbside recycling  programs, neighborhood dropoff recycling  programs, public education promoting beverage container recycling, litter prevention, and cleanup, cooperative regional efforts among two or more cities or counties, or both, or other beverage container recycling programs.
(C) These funds shall may  not be used for activities unrelated to beverage container recycling or litter reduction.
(D) To receive these funds, a city, county, or city and county shall fill out and return a funding request form to the department.  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  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.
(4) (5)  One (A)   million five  Five  hundred thousand dollars ($1,500,000) ($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.
(5) (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 are calculated pursuant to Section 14575, or for which a processing payment  is calculated pursuant to Section 14575 and a voluntary artificial scrap value is calculated pursuant to Section 14575.1,  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 the difference between the amount in clause (i) and the amount  pay 75 percent  of the processing payments established in subdivision (b) of Section 14575, and adjusted pursuant to paragraph (2) of subdivision (c) of, and subdivision (f) of, Section 14575, to  in order to  reduce the processing fee to the level provided in subdivision (e) of Section 14575, or to reflect the agreement by a willing purchaser to pay a voluntary artificial scrap value pursuant to Section 14575.1. (f) of Section 14575. 
(B) Notwithstanding Section 13340 of the Government Code, the moneys money  in each processing fee account are is  hereby continuously appropriated to the department for expenditure without regard to fiscal years, year,  for purposes of making processing payments  payments, and reducing processing fees,  pursuant to Section 14575.
(6) (7)  (A)  Up to five ten  million dollars ($5,000,000) may ($10,000,000) shall  be expended annually  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.
(7) (8)  Up to fifteen three  million dollars ($15,000,000) may ($3,000,000) shall  be expended annually by for  the department for payment of  quality glass  incentive payments for empty glass beverage containers  pursuant to Section 14549.1.
(8) (9)  (A) For the 2019–20 fiscal year to the 2025–26 fiscal year, inclusive, the department may expend funds for market development payments to reclaimers and product manufacturers, pursuant to Section 14549.2. 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) For purposes of  Prior to making an expenditure pursuant to  this paragraph, the definitions in subdivision (a) of Section 14549.2 apply. department shall enter into a cooperative agreement with Keep California Beautiful. 
(9) (C)  (A) As  For the 2019–20 fiscal year to the 2025–26 fiscal year, inclusive, the department may expend up to a total of five million dollars ($5,000,000) to support the pilot projects created pursuant to Section 14571.9.  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. 
(B) (D)  Taking into consideration the recent closure of many of California’s recycling centers, the Legislature finds and declares that the appropriation provided for in Chapter 793 of the Statutes of 2019 is necessary in order to ensure the continued support of, and to bolster, consumer redemption opportunities. 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. 
(10) (b)  The department may expend up to four million dollars ($4,000,000) annually for glass processing incentive grants authorized pursuant to Section 14543. 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. 
(11) The department may expend up to four million dollars ($4,000,000) annually for empty glass beverage container grants authorized pursuant to Section 14544.
(12) (c)  (1)  The department may expend up to one million dollars ($1,000,000) annually for grants to facilitate the transportation of empty glass beverage containers authorized  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 14545. 14575. 
(13) (A) The department may expend up to sixty million dollars ($60,000,000) annually for glass market development payments for glass authorized pursuant to Section 14549.7.
(B) This paragraph shall become inoperative on January 1, 2028.
(b) (2)  (1)  If the department determines, pursuant to a review made pursuant to Section 14556, paragraph (1),  that there may be inadequate funds to pay the payments required by this division, the  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.
(2) (3)  On or before 180 days, but not less than 80 days,  days  after the notice is sent pursuant to paragraph (1), (2),  the department may reduce or eliminate expenditures, or both, from the funds as necessary, according to the procedure set forth in subdivision (c). (d). 
(c) (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.
(d) (e)  Before  Prior to  making an expenditure pursuant to paragraph (6) (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 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. 9.
 Notwithstanding Section 7550.5 of the Government Code, the Department of Conservation, using funds from the California Beverage Container Recycling Fund, shall contract with the University of California for preparation and submittal to the department, on or before January 1, 2002, of a study that the department shall transmit to the Governor and the Legislature on or before that date, that does all of the following:
(a) Reviews whether the inclusion of plastic beverage containers made of resins other than polyethelene terathate has substantially increased the recycling rate of those containers.
(b) Compares the recycling rates for like types of beverage containers covered by the California Beverage Container Recycling and Litter Reduction Act with like types of beverage containers not covered by the act.
(c) Compares the net cost of recycling containers covered by the act at recycling centers, supermarket sites, and curbside recycling programs, and estimates the cost of collection and disposal of those containers not covered by the act and not recycled.
(d) Compares the economic benefit and impact on the state’s economy of the act with an “Oregon style” nickel deposit law, and with the situation if the act were repealed.
(e) Reports the scope of curbside recycling in California, along with an evaluation of the benefits and cost impact of the act on curbside recycling programs.
(f) Recommends any modifications to the act, including, but not limited to, the fiscal and recycling impact of repealing the act; the fiscal and recycling impact of expanding the act; and any products or materials that should be included or excluded from the coverage of the act.
SEC. 10.
 The Legislature finds and declares that the changes made in this bill to Sections 14550, 14560.5, 14561, and 14581 of the Public Resources Code incorporate the amendments to those sections by SB 332, and make additional changes, and it is the intent of the Legislature that this bill be enacted after SB 332. It is further the intent of the Legislature that if this bill is enacted after SB 332, Section 2 of the bill, which adds Section 14549.1 to the Public Resources Code, and Section 7 of this bill, which adds Section 14575 to the Public Resources Code, shall both take effect, and Sections 14549.1 and 14575 of the Public Resources Code, as proposed to be added by SB 332, shall not become operative.
SEC. 11.
 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.
SEC. 12.
 This act shall only become operative if Senate Bill 332 of the 1999–2000 Regular Session of the Legislature is enacted and becomes effective on or before January 1, 2000.