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AB-1244 Beverage containers.(1999-2000)

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AB1244:v92#DOCUMENT

Assembly Bill No. 1244
CHAPTER 817

An act to amend Sections 14550, 14560.5, 14561, and 14581 of, and to repeal and add Sections 14549.1 and 14575 of, the Public Resources Code, relating to beverage containers, and making an appropriation therefor.

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

LEGISLATIVE COUNSEL'S DIGEST


AB 1244, Olberg. Beverage containers.
(1) The existing California Beverage Container Recycling and Litter Reduction Act requires a distributor of specified beverage containers to pay a redemption payment of 2¢ to the Department of Conservation, for each beverage container, as defined, sold or transferred, for deposit in the California Beverage Container Recycling Fund and provides for an increase in that payment, as specified. The money in the fund is continuously appropriated to the department to pay refund values, processing payments, and for other purposes.
A violation of the act is a crime and the penalties for violations of the act are deposited in the fund.
Under the act, the department is required to calculate a processing fee for each beverage container with a specified scrap value, which is required to be paid by beverage manufacturers for each beverage container sold or transferred to a dealer. Until January 1, 2000, a processing fee is required to be imposed annually only if the scrap value for the material is less than the cost of recycling, and, after that date, a processing fee is required to be established pursuant to different criteria. Under the law in effect until January 1, 2000, the processing fee is reduced in an amount equal to 25% of the redemption payments projected to be paid by distributors of beverages sold in that container type for the previous calendar year.
This bill would revise the method of calculating the processing payment and would require the processing payment to equal the difference between the scrap value offered to recyclers by willing purchasers and the cost of recycling containers and a reasonable financial return. The bill would require the department to establish a processing fee on January 1, 2000, and on and before January 1 annually thereafter, and to use specified cost data for the January 1, 2000, and January 1, 2001, processing payment calculation. The bill would require the actual processing fee to equal 65% of the processing payment, but the department would be required to adjust the amount of the processing fee, based upon the availability of funds in the processing fee account for that beverage material type so the amount of the processing fee equals 25% of the processing payment.
(2) Existing law requires the department to transfer an amount equal to 25% of the redemption payments, and all processing fees, made for glass, PET, and bimetal beverage containers to, respectively, the Glass Processing Fee Account, the PET Processing Fee Account, and the Bimetal Processing Fee Account, for making processing payments for, and reducing processing fees paid for, these container types. After setting aside funds needed for the payment to refund values and administrative fees, and for these expenditures, the department is authorized to expend $18,500,000 of the moneys in the fund, until January 1, 2001, for the payment of handling fees, and $5,000,000, for payments for curbside programs, until January 1, 2001, to expend $7,000,000 annually for grants to community conservation corps, and to expend $2,000,000 for grants to nonprofit organizations or government programs.
This bill would increase these amounts to $23,500,000 for the payment of handling fees, $15,000,000 for payment for curbside programs and neighborhood dropoff programs, and $15,000,000 for grants to community conservation corps. The bill would authorize the expenditure of $10,500,000 annually for payments to cities and counties for beverage container recycling and litter cleanup activities, and $500,000 for grants for beverage recycling and litter reduction programs, and would require the payment of $6,840,000 to the City of San Diego, for a curbside recycling pilot program that would be terminated on January 1, 2004. The bill would extend the authorization to expend these funds for handling fees and for curbside programs indefinitely, thereby making an appropriation. The bill would authorize the department to pay each curbside recycling program a quality glass incentive payment for color-sorted glass collected by the curbside recycling program, in a total of not more than $3,000,000 per calendar year and would specify the criteria for the making of these payments.
(3) The bill would require the department to contract with the University of California to prepare and submit a specified report.
(4) The changes proposed by the bill would become operative only if SB 332 of the 1999–2000 Regular Session of the Legislature is enacted and becomes effective on or before January 1, 2000. The bill would also make a statement of legislative intent regarding the order of enactment of this bill and SB 332. (5) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
Since a violation of the requirements imposed by the bill would be a crime, the bill would impose a state-mandated local program by creating new crimes.
This bill would provide that no reimbursement is required by this act for a specified reason.
Appropriation: YES  

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


SECTION 1.

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

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.
(2) The department shall treat all information reported pursuant to this section by a processor as commercial or financial information subject to the procedures established pursuant to Section 14554.
(b) Every distributor who sells or offers for sale in this state beverages in aluminum beverage containers, nonaluminum metal beverage containers, glass beverage containers, plastic beverage containers, or other beverage containers, including refillable beverage containers of these types, shall report to the department for each month the number of beverages sold in these beverage containers in this state which are labeled pursuant to Section 14561, by material type and size and weight of container or any other method as the department may prescribe. These reports shall be submitted by the day when payment is due, consistent with the applicable payment schedule specified in subdivision (a) of Section 14574, in the form and manner which the department may prescribe.
(c) Every distributor who sells or offers for sale in this state beverages in refillable beverage containers and who pays a refund value to distributors, dealers, or consumers who return these containers for refilling, shall report to the department for each month the number of these beverage containers returned empty to be refilled, by material type and size of container or any other method which the department may prescribe. These reports shall be submitted by the day when payment is due, consistent with the schedule specified in subdivision (a) of Section 14574, in the form and manner which the department may prescribe.
(d) Notwithstanding subdivision (b), a distributor who elects to make an annual payment pursuant to subdivision (b) of Section 14574 may, upon the approval of the department, submit the reports required by this section annually to the department. The reports shall accompany the annual payment submitted pursuant to Section 14574.

SEC. 4.

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

14560.5.
 (a) (1) The invoice or other form of accounting of the transaction submitted by a beverage distributor of soft drinks or mineral water to a dealer shall separately identify the amount of any redemption payment imposed on beverage containers pursuant to Section 14560 and the separate identification of the invoice or other form of accounting of the transaction shall not combine or include the gross wholesale price with the redemption payment but shall separately state the gross amount of the redemption payment for each type of container included in each delivery.
(2) The invoice or other form of accounting of the transaction submitted by any distributor of beer and malt beverages or wine or distilled spirit coolers to a dealer may separately identify the portion of the gross wholesale price attributable to any redemption payment imposed on beverage containers pursuant to Section 14560 and the separate identification of the invoice or other form of accounting of the transaction may separately state the gross amount of the redemption payment for each type of container included in each delivery. The invoice or other form of accounting of this transaction may separately identify the portion of the gross wholesale price attributable to the redemption payment.
(3) Notwithstanding Section 14541, the department shall randomly inspect beverage distributor invoices or other forms of accounting to ensure compliance with this subdivision. However, an unintentional error in addition or subtraction on an invoice or other form of accounting by a route driver of a distributor shall not be deemed a violation of this subdivision.
(4) For the purposes of this subdivision, the term “type of container” includes the amount of the redemption payment on containers under 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 be applied to a person who violates this subdivision.
(d) With regard to the sale of beer and other malt beverages or wine and distilled spirits cooler beverages, any amount of redemption payment imposed by this division is subject to Section 25509 of the Business and Professions Code.

SEC. 5.

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

14561.
 (a) (1) A beverage manufacturer shall clearly indicate on every beverage container sold or offered for sale by that beverage manufacturer in this state the message “CA Redemption Value” or “California Redemption Value,” by either printing or embossing the beverage container or by securely affixing a clear and prominent stamp, label, or other device to the beverage container.
(2) A beverage manufacturer may affix the message “CA Cash Refund” or “California Cash Refund” on a beverage container sold or offered for sale by the beverage manufacturer, instead of the message specified in paragraph (1), but the message shall be affixed in the manner prescribed in paragraph (1).
(b) Any refillable beverage container sold or offered for sale is exempt from this section. However, any beverage manufacturer or container manufacturer may place upon, or affix to, a refillable beverage container, any message that the manufacturer determines to be appropriate relating to the refund value of the beverage container.
(c) No person shall offer to sell, or sell to a consumer a beverage container subject to subdivision (a) that has not been labeled pursuant to this section, except for a refillable beverage container that is exempt from labeling pursuant to subdivision (b).
(d) The department may require that any beverage container intended for sale in this state be printed, embossed, stamped, labeled, or otherwise marked with a universal product code or similar machine-readable indicia.
(e) Any beverage container labeled with the message specified in subdivision (a) shall have the minimum redemption payment established pursuant to Section 14560, which shall be paid by the distributor to the department pursuant to Section 14574.
(f) To the extent not otherwise authorized by this section, a glass beverage container containing noncarbonated fruit drinks that contain any percentage of fruit juice, made subject to this division pursuant to this act amending this section during the 1999 portion of the 1999–2000 Regular Session, may comply with the requirements of this section by embossing the container with the message described in paragraph (1) or (2) of subdivision (a).
(g) Notwithstanding any other requirement of this section, any beverage container that is included within the scope of this division on January 1, 2000, but that was not subject to this division before that date, shall be exempt from the labeling requirements of this section until January 1, 2001. 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.

SEC. 6.

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

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 pursuant to subdivision (c), the department shall expend the money set aside in the fund, pursuant to subdivision (c) of Section 14580 for the purposes of this section:
(1) Twenty-three million five hundred thousand dollars ($23,500,00) 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.
(4) (A) Ten million five hundred thousand dollars ($10,500,000) may be expended annually for payments of five thousand dollars ($5,000) to cities and ten thousand dollars ($10,000) for payments to counties for beverage container recycling and litter cleanup activities, or the department may calculate the payments to counties and cities on a per capita basis, and may pay whichever amount is greater, for those activities.
(B) Eligible activities for the use of these funds may include, but are not necessarily limited to, support for new or existing curbside recycling programs, neighborhood dropoff recycling programs, public education promoting beverage container recycling, litter prevention, and cleanup, cooperative regional efforts among two or more cities or counties, or both, or other beverage container recycling programs.
(C) These funds may 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 of Conservation. The form shall specify the beverage container recycling or litter reduction activities for which the funds will be used.
(E) The Department of Conservation shall annually prepare and distribute a funding request form to each city, county, or city and county. The form shall specify the amount of beverage container recycling and litter cleanup funds for which the jurisdiction is eligible. The form shall not exceed one double-sided page in length, and may be submitted electronically. If a city, county, or city and county does not return the funding request form within 90 days of receipt of the form from the department, the city, county, or city and county is not eligible to receive the funds for that funding cycle.
(F) For the purposes of this paragraph, per capita population shall be based on the population of the incorporated area of a city or city and county and the unincorporated area of a county. The department may withhold payment to any city, county, or city and county that has prohibited the siting of a supermarket site, caused a supermarket site to close its business, or adopted a land use policy that restricts or prohibits the siting of a supermarket site within its jurisdiction.
(5) (A) Five hundred thousand dollars ($500,000) may be expended annually in the form of grants for beverage container recycling and litter reduction programs.
(B) Up to a total of six million eight hundred forty thousand dollars ($6,840,000) shall be paid to the City of San Diego, between January 1, 2000, and January 1, 2004, for a curbside recycling program conducted pursuant to Section 14549.7.
(6) (A) The department shall expend the amount necessary to pay the processing payment established pursuant to subdivision (b) of Section 14575. The department shall establish separate processing fee accounts in the fund for each beverage container material type for which a processing payment and processing fee is calculated pursuant to Section 14575, into which account shall be deposited both of the following:
(i) All amounts paid as processing fees for each beverage container material type pursuant to subdivision (g) of Section 14575.
(ii) Funds equal to pay 75 percent of the processing payments established in subdivision (b) of Section 14575, in order to reduce the processing fee to the level provided in subdivision (f) of Section 14575.
(B) Notwithstanding Section 13340 of the Government Code, the money in each processing fee account is hereby continuously appropriated to the department for expenditure without regard to fiscal year, for purposes of making processing payments, and reducing processing fees, pursuant to Section 14575.
(7) (A) Up to ten million dollars ($10,000,000) shall be expended by the department between January 1, 2000, and January 1, 2002, for the purposes of undertaking a statewide public education and information campaign aimed at promoting increased recycling of beverage containers.
(B) Notwithstanding Section 7550.5 of the Government Code, on or before January 1, 2002, the department shall provide a report to the Legislature on the impact of the statewide public education and information campaign and make recommendations for any future campaigns.
(8) Up to three million dollars ($3,000,000) shall be expended annually for the payment of quality glass incentive payments pursuant to Section 14549.1.
(9) (A) Three hundred thousand dollars ($300,000) shall be expended annually by the department, until January 1, 2003, pursuant to a cooperative agreement entered into between the department and Keep California Beautiful, a nonprofit 501(c)(3) organization chartered by the State of California in 1990, for the purpose of conducting statewide public education campaigns aimed at preventing and cleaning up beverage containers and related litter. The campaigns shall include, but not be limited to, coordination of Keep California Beautiful month.
(B) Prior to making an expenditure pursuant to this paragraph, the department shall enter into a cooperative agreement with Keep California Beautiful.
(C) As part of the cooperative agreement, Keep California Beautiful shall provide the department with an annual campaign plan and budget, and a report of previous year campaign activities.
(D) On or before July 1, 2002, the department shall make a recommendation to the Legislature on future funding for beverage container litter prevention and cleanup activities by Keep California Beautiful.
(b) The fifteen million dollars ($15,000,000) that is set aside pursuant to paragraph (3) of subdivision (a), is a base amount that the department shall adjust annually to reflect any increases or decreases in the cost of living, as measured by the Department of Labor, or a successor agency, of the federal government.
(c) (1) The department shall review all funds on a quarterly basis to ensure that there are adequate funds to make the payments specified in this section and the processing fee reductions required pursuant to Section 14575.
(2) If the department determines, pursuant to a review made pursuant to paragraph (1), that there may be inadequate funds to pay the payments required by this section and the processing fee reductions required pursuant to Section 14575, the department shall immediately notify the appropriate policy and fiscal committees of the Legislature regarding the inadequacy.
(3) On or before 180 days after the notice is sent pursuant to paragraph (2), the department may reduce or eliminate expenditures, or both, from the funds as necessary, according to the procedure set forth in subdivision (d).
(d) If the department determines that there are insufficient funds to make the payments specified pursuant to this section and Section 14575, the department shall reduce all payments proportionally.
(e) Prior to making an expenditure pursuant to paragraph (7) of subdivision (a), the department shall convene an advisory committee consisting of representatives of the beverage industry, beverage container manufacturers, environmental organizations, the recycling industry, nonprofit organizations, and retailers, to advise the department on the most cost-effective and efficient method of the expenditure of the funds for that education and information campaign.

SEC. 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.