Today's Law As Amended


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SB-1 Beverage containers.(1999-2000)



As Amends the Law Today


SECTION 1.

 Section 14575 of the Public Resources Code, as amended by Section 26 of Chapter 624 of the Statutes of 1995, is repealed.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. 2.

 Section 14575 is added to the Public Resources Code, to read:

14575.
 (a) (1) 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 establish a processing fee and a processing payment for the container, by the type of the material of the container.
(2) Notwithstanding any other provision of law, including, but not limited to, Section 14575, as amended by Section 26 of Chapter 624 of the Statutes of 1995, the processing fee and processing payment established pursuant to this section shall apply retroactively to each container sold or transferred to a distributor or dealer on and after January 1, 1999, and the processing payment established pursuant to this section shall apply retroactively to each container redeemed on and after January 1, 1999.
(b) Notwithstanding subdivision (a), costs to recycle determined pursuant to paragraph (2) of subdivision (c) and subdivision (d) established by the department on and after the effective date of the act adding this section, shall be adjusted annually to reflect changes in the cost of living, as measured by the Department of Labor or a successor agency of the United States government.
(c) Except for the adjustments made pursuant to subdivision (b), the department shall calculate the processing fee in an amount so that the processing payment will equal sixty-nine dollars and forty-one cents ($69.41) for each ton of glass containers and three hundred ninety-eight dollars and forty-five cents ($398.45) for each ton of bimetal containers, based upon all of the following assumptions:
(1) The estimated average scrap value is thirty dollars ($30) per ton for glass containers and ten dollars and sixty-seven cents ($10.67) per ton for bimetal containers.
(2) The unmodified cost data for certified recycling centers for the January 1, 1992, calculation of the processing fee was ninety-nine dollars and forty-one cents ($99.41) for each ton of glass containers and four hundred nine dollars and twelve cents ($409.12) for each ton of bimetal containers.
(d) If the scrap value surveyed by the department pursuant to paragraph (2) of subdivision (j) for PET containers is less than seven hundred ninety-nine dollars and sixty-eight cents ($799.68) for each ton of PET containers, as adjusted pursuant to subdivision (b), the department shall establish a processing fee and payment for each PET container sold.
(e) Once the annual processing payment has been determined utilizing the calculations made pursuant to subdivisions (a), (b), (c), and (d), the actual processing fee paid by beverage manufacturers, subject to modification pursuant to subdivision (f), shall be the per-container fee multiplied by the sum of the following:
(1) An estimate of the number of containers redeemed by recyclers during the previous calendar year, divided by an estimate of the number of nonrefillable beverage containers sold or transferred to a distributor or dealer during the previous calendar year, based on the latest available data.
(2) Five percentage points, except that whenever a surplus of unexpended money exists in the fund sufficient to equal the estimate of the previous three months, expenditures of processing payments for each material type as determined by the department, then zero percentage points shall be used.
(f) (1) The department shall reduce the processing fee paid by beverage manufacturers pursuant to subdivisions (d) and (e), and the voluntary artificial scrap value paid by a willing purchaser pursuant to Section 14575.1, by expending the funds in the Glass Processing Fee Account, the PET Processing Fee Account, and the Bimetal Processing Fee Account.
(2) The total amount of funds expended in each calendar year to reduce the amount of processing fees or the voluntary artificial scrap value paid by a willing purchaser pursuant to Section 14575.1 paid for each container type shall be equal to the funds available in the Glass Processing Fee Account, the PET Processing Fee Account, or the Bimetal Processing Fee Account, for each container type and shall not exceed an amount equal to 25 percent of the redemption payments projected to be paid by distributors of beverages sold in that container type for the previous calendar year.
(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) (1) The department shall annually, on or before January 1, determine the statewide average scrap values paid by beneficiating and nonbeneficiating processors for glass 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 scrap value specified in paragraph (1) of subdivision (c), the department shall adjust the processing payment to equal the difference between the cost of recycling, as specified in subdivision (b) and paragraph (2) of subdivision (c), and the new statewide average scrap value.
(2) The department shall make a monthly upward or downward adjustment of a processing fee established pursuant to this section for PET plastic beverage containers if the department determines that the average statewide scrap values paid by processors, for any monthly period, are more or less than the average scrap values used as the basis for the processing fee currently in effect.
(l) This section shall remain in effect only until January 1, 2000, and as of that date is repealed, unless a later enacted statute, which is enacted before January 1, 2000, deletes or extends that date.

SEC. 3.

 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 sum of paragraphs (1) and (2), the department shall establish a processing fee and a processing payment for the container, by the type of the material of the container, at least equal to the difference between the scrap value offered by a statistically significant sample of container manufacturers, beverage manufacturers, processors, or willing purchasers, for each container sold by the beverage manufacturer, and the sum of both of the following:
(1) The actual cost for certified recycling centers, excluding those recycling centers receiving a convenience incentive payment, and certified processors which did not receive convenience incentive payments in the year in which the processing fee is calculated or recalculated, of receiving, handling, processing, storing, transporting, and maintaining equipment for each container sold for recycling or, only if the container is not recyclable, for disposal, calculated pursuant to subdivision (c).
(2) A reasonable financial return for recycling centers and processors, calculated pursuant to subdivision (b).
(b) The department shall annually, on or before January 1, calculate weighted statewide average values for the amounts specified in paragraphs (1) and (2) of subdivision (a) for each type of container material sold and a new processing fee, which shall be effective on that same date.
(c) A processing fee established pursuant to this section shall be based upon all of the following:
(1) The average scrap values paid by willing purchasers during the 1990 calendar year for the initial calculation and the average scrap values paid by willing purchasers during the calendar year directly preceding the year in which the processing fee is calculated for any subsequent calculation.
(2) The latest available data indicating the volumes of beverage containers collected by certified processors and recycling centers.
(3) The actual recycling costs for certified recycling centers and processors, as determined pursuant to paragraph (1) of subdivision (a) for the 1989 calendar year for the initial calculation, and for the second calendar year preceding the year in which the processing fee is calculated for any subsequent calculation.
(d) Every six months, or more frequently as determined to be necessary by the department, the department may adjust a processing fee established pursuant to this section if both of the following occur:
(1) The department determines that the average statewide scrap values paid by willing purchasers 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.
(e) The calculations of the statewide weighted average values and processing fee made pursuant to subdivision (b) shall be based on audited surveys of the costs specified in subdivision (a) at existing certified recycling centers, reverse vending machines, and processors, with standardized modifications for transportation distances and factors specific to a particular region, as determined by the department, and, if the container is not recyclable, local disposal fees. The processing fee shall be calculated in a manner which furthers the purposes of this division and the fee shall be sufficient to establish sufficient recycling locations and processors to achieve the goals established pursuant to subdivision (c) of Section 14501 and Section 14571. Except for the first calculation of a processing fee made pursuant to this section, 60 days prior to the annual calculation of the processing fee, the department shall submit a report to the Chairperson of the Assembly Natural Resources Committee and the Chairperson of the Senate Natural Resources and Wildlife Committee. The report shall include a summary of the fluctuations of costs and scrap values necessitating the recalculation. The report shall also highlight changes in markets, new technologies, and other business and economic factors. The report shall include a description of the average per container statewide costs of recycling beverage containers, by each material type, for the following recycling systems, including a description of any assumptions used to allocate undifferentiated costs among material types, and a brief statement of the reason for the adoption of these assumptions:
(1) Automated recycling centers.
(2) Staffed recycling centers.
(3) Recycling centers established since September 29, 1988.
(4) Recycling centers established prior to September 29, 1988.
(5) Recyclers receiving convenience incentive payments, as feasible.
(6) Nonprofit dropoff programs.
(7) Curbside recycling programs.
(f) (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 department shall pay the processing fees collected on unredeemed containers into the fund. The department shall not use processing fees collected on unredeemed beverage containers to pay all or a portion of the processing costs determined pursuant to subdivision (a). The processor shall pay the recycling center that portion of the processing payment representing the actual cost and financial return incurred by the recycling center, as specified in subdivision (a).
(g) When assessing processing fees pursuant to subdivision (b), the department shall assess the processing fee on each container sold, 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. When calculating and assessing processing fees, the department also shall not assume that redemption bonuses will be kept by recycling centers or locations.
(h) 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 payment.
(i) This section shall become operative January 1, 2000.

SEC. 4.

 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), the department shall expend the moneys funds, the department may expend the money  set aside in the fund, pursuant to subdivision (c) of Section 14580, 14580  for the purposes of this section section,  in the following manner: order of priority: 
(1) For each fiscal year, the department may expend the amount necessary to make the required handling fee payment Eighteen million five hundred thousand dollars ($18,500,000) may be expended, until January 1, 2000, for the payment of handling fees required  pursuant to Section 14585.
(2) Fifteen Five  million dollars ($15,000,000) shall be expended annually  ($5,000,000) may be expended, until January 1, 2000,  for payments for curbside programs and neighborhood dropoff programs  pursuant to Section 14549.6.
(3) (A) Ten million five hundred thousand dollars ($10,500,000)  Seven million dollars ($7,000,000), plus the proportional share of the cost-of-living adjustment, as provided in subdivision (b),  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. in the form of grants issued to either of the following: 
(B) Eligible activities for the use of these funds may include, but are not necessarily limited to, support for new or existing curbside programs, neighborhood dropoff programs, public education promoting beverage container recycling, litter prevention, and cleanup, cooperative regional efforts among two or more cities or counties, or both, or other beverage container recycling programs.
(C) These funds shall not be used for activities unrelated to beverage container recycling or litter reduction.
(D) To receive these funds, a city, county, or city and county shall fill out and return a funding request form to the department. The form shall specify the beverage container recycling or litter reduction activities for which the funds will be used.
(E) The department shall annually prepare and distribute a funding request form to each city, county, or city and county. The form shall specify the amount of beverage container recycling and litter cleanup funds for which the jurisdiction is eligible. The form shall not exceed one double-sided page in length, and may be submitted electronically. If a city, county, or city and county does not return the funding request form within 90 days of receipt of the form from the department, the city, county, or city and county is not eligible to receive the funds for that funding cycle.
(F) For the purposes of this paragraph, per capita population shall be based on the population of the incorporated area of a city or city and county and the unincorporated area of a county. The department may withhold payment to any city, county, or city and county that has prohibited the siting of a supermarket site, caused a supermarket site to close its business, or adopted a land use policy that restricts or prohibits the siting of a supermarket site within its jurisdiction.
(4) One million five hundred thousand dollars ($1,500,000) may be expended annually in the form of grants for beverage container recycling and litter reduction programs.
(5) (A) The department shall expend the amount necessary to pay the processing payment established pursuant to Section 14575. The department shall establish separate processing fee accounts in the fund for each beverage container material type for which a processing payment and processing fee are calculated pursuant to Section 14575, or for which a processing payment is calculated pursuant to Section 14575 and a voluntary artificial scrap value is calculated pursuant to Section 14575.1, into which account shall be deposited both of the following:
(i) All amounts paid as processing fees for each beverage container material type pursuant to Section 14575. Certified community conservation corps, that either exist as of September 12, 1996, or that are formed after 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) Funds equal to the difference between the amount in clause (i) and the amount of the processing payments established in subdivision (b) of Section 14575, and adjusted pursuant to paragraph (2) of subdivision (c) of, and subdivision (f) of, Section 14575, to reduce the processing fee to the level provided in subdivision (e) of Section 14575, or to reflect the agreement by a willing purchaser to pay a voluntary artificial scrap value pursuant to Section 14575.1. 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) Notwithstanding Section 13340 of the Government Code, the moneys in each processing fee account are hereby continuously appropriated to the department for expenditure without regard to fiscal years, for purposes of making processing payments pursuant to Section 14575.
(6) Up to five million dollars ($5,000,000) may be expended annually by the department for the purposes of undertaking a statewide public education and information campaign aimed at promoting increased recycling of beverage containers.
(7) Up to fifteen million dollars ($15,000,000) may be expended annually by the department for quality incentive payments for empty glass beverage containers pursuant to Section 14549.1.
(8) (A) 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.
(B) For purposes of this paragraph, the definitions in subdivision (a) of Section 14549.2 apply.
(9) (A) 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.
(B) 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.
(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. Any grants provided pursuant to this paragraph shall not comprise more than 75 percent of the annual budget of a community conservation corps. 
(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) 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 pursuant to Section 14545.
(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) (4)  (1) Two  If the department determines, pursuant to a review made pursuant to Section 14556, that there may be inadequate funds to pay the payments required by this division, the department shall immediately notify the appropriate policy and fiscal committees of the Legislature regarding the inadequacy.  million dollars ($2,000,000), plus the proportional share of the cost-of-living adjustment, as provided in subdivision (b), may be expended, in the form of grants to nonprofit organizations or governmental entities, as determined by the department. 
(2) (b)  On or before 180 days, but not less than 80 days, after the notice is sent pursuant to paragraph (1), the department may reduce or eliminate expenditures, or both, from the funds as necessary, according to the procedure set forth in subdivision (c). The nine million dollars ($9,000,000) that is set aside pursuant to paragraphs (3) and (4) 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) 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) (c)  Before (1)   making an expenditure pursuant to paragraph (6) of subdivision (a), the department shall convene an advisory committee consisting of representatives of the beverage industry, beverage container manufacturers, environmental organizations, the recycling industry, nonprofit organizations, and retailers to advise the department on the most cost-effective and efficient method of the expenditure of the funds for that education and information campaign. Notwithstanding any other provision of law, the payments of handling fees to supermarket sites pursuant to Section 14585 shall apply retroactively to any eligible beverage container redeemed on and after January 1, 1999. 
(2) Notwithstanding any other provision of law, the payments to curbside programs pursuant to Section 14549.6 shall apply retroactively to containers collected by curbside programs on and after January 1, 1999.

SEC. 5.

 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 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 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 supermarket 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, 20 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 20 percent, the department shall divide the volume of glass and plastic beverage containers by 20 percent. That quotient shall be maximum volume that is eligible for a handling fee for that month.
(5) The department shall pay a handling fee of 1.7 cents ($0.017) per eligible beverage container, as determined pursuant to paragraph (4).
(6) Notwithstanding paragraph (5), the total handling fee payment to a supermarket site shall not exceed two thousand dollars ($2,000) 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 is located ceases operation for remodeling or for a change of ownership, the operator of that supermarket site 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 shall promptly notify the department of the closure of the dealer where the supermarket site 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 eighteen million five hundred thousand dollars ($18,500,000) 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) 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.
(d) The department may require the operator of a supermarket site receiving handling fees to maintain records for each location where beverage containers are redeemed, and may require the supermarket site to take any other action necessary for the department to determine that the supermarket site does not receive an excessive handling fee.
(e) The department may determine and utilize a standard container per pound rate, for each material type, for the purpose of calculating volumes and making handling fee payments.
(f) (1) It is the intent of the Legislature that handling fees paid to supermarket site recycling centers be only used to offset the unique costs of providing convenient recycling opportunities to consumers, and that those fees shall not be expended for the purpose of engaging in unfair and predatory pricing intended to increase the recycling of beverage containers at those centers.
(2) To ensure that handling fees, paid to supermarket site recycling centers, are not used for the purpose of engaging in unfair and predatory pricing and to otherwise further the intent of paragraph (1), the department shall, upon the complaint of any person other than the department, convene an informal hearing before the director or a designee, in accordance with the following:
(A) At the hearing, the complainant shall present evidence that a respondent handling fee recipient has engaged in unfair and predatory pricing and that the complainant has suffered substantial and quantifiable economic damages as a result of that pricing. Upon the director’s determination that there is credible evidence of unfair and predatory pricing and of resulting damages, the complainant is entitled to a rebuttable presumption that the respondent has engaged in unfair and predatory pricing.
(B) At the hearing, the respondent shall have the opportunity to respond to the complaint by presenting evidence that the respondent has not engaged in unfair and predatory pricing and has not caused any damage to the complainant.
(C) Based upon the evidence presented at the hearing and any presumption pursuant to subparagraph (A), the director or the director’s designee shall determine if there is clear and convincing evidence that a violation of this division has occurred, and, if so, the respondent shall not be eligible to receive handling fees for three months.
(D) The complainant or respondent may obtain review of the director’s action taken pursuant to this subdivision by filing in the superior court a petition for writ of mandate within 30 days following the issuance of the director’s decision. Section 1094.5 of the Code of Civil Procedure shall govern judicial proceedings pursuant to this subdivision, except that in every case the court shall exercise its independent judgment. If a petition for a writ of mandate is not filed within the time limits set by this subdivision, the director’s action under this subdivision shall not be subject to review by any court or agency.
(E) If either party appeals the director’s or designee’s decision pursuant to subparagraph (D), and the department prevails, the department may recover any costs associated with its defense of the petition.
(g) This section shall remain in effect only until January 1, 2000, and as of that date is repealed, unless a later enacted statute, which is enacted before January 1, 2000, deletes or extends that date.
SEC. 6.
 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are:
In order to ensure the continuation of the state’s beverage container recycling program, which protects the environment and benefits public health and safety, it is necessary that this act take effect immediately.