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California

The following text was found at
http://www.consrv.ca.gov/dor/crcp/recyclers/Documents/Act.pdf (pdf)
http://www.leginfo.ca.gov/cgi-bin/displaycode?section=prc&group=14001-15000&file=14500-14501.5 (html)

California Public Resources Code
Division 12.1

California Beverage Container Recycling and Litter Reduction Act

14500.  This division shall be known and may be cited as the
California Beverage Container Recycling and Litter Reduction Act.



14501.  The Legislature finds and declares as follows:
   (a) Experience in this state and others demonstrates that
financial incentives and convenient return systems ensure the
efficient and large-scale recycling of beverage containers.
Accordingly, it is the intent of the Legislature to encourage
increased, and more convenient, beverage container redemption
opportunities for all consumers.  These redemption opportunities
shall consist of dealer and other shopping center locations,
independent and industry operated recycling centers, curbside
programs, nonprofit dropoff programs, and other recycling systems
that assure all consumers, in every region of the state, the
opportunity to return beverage containers conveniently, efficiently,
and economically.
   (b) California grocery, beer, soft drink, container manufacturing,
labor, agricultural, consumer, environmental, government, citizen,
recreational, taxpayer, and recycling groups have joined together in
calling for an innovative program to generate large-scale redemption
and recycling of beverage containers.
   (c) This division establishes a beverage container recycling goal
of 80 percent, and when the redemption rate for any one type of
beverage container falls below 65 percent, this division provides for
an increased refund value.
   (d) It is the intent of the Legislature to ensure that every
container type proves its own recyclability.
   (e) It is the intent of the Legislature to make redemption and
recycling convenient to consumers, and the Legislature hereby urges
cities and counties, when exercising their zoning authority, to act
favorably on the siting of multimaterial recycling centers, reverse
vending machines, mobile recycling units, or other types of recycling
opportunities, as necessary for consumer convenience, and the
overall success of litter abatement and beverage container recycling
in the state.
   (f) The purpose of this division is to create and maintain a
marketplace where it is profitable to establish sufficient recycling
centers and locations to provide consumers with convenient recycling
opportunities through the establishment of minimum refund values and
processing fees and, through the proper application of these
elements, to enhance the profitability of recycling centers,
recycling locations, and other beverage container recycling programs.

   (g) The responsibility to provide convenient, efficient, and
economical redemption opportunities rests jointly with manufacturers,
distributors, dealers, recyclers, processors, and the Department of
Conservation.
   (h) It is the intent of the Legislature, in enacting this
division, that all empty beverage containers redeemed shall be
recycled, and that the responsibilities and regulations of the
department shall be determined and implemented in a manner which
favors the recycling of redeemed containers, as opposed to their
disposal.
   (i) Nothing in this division shall be interpreted as affecting the
current business practices of scrap dealers or recycling centers,
except that, to the extent they function as a recycling center or
processor, they shall do so in accordance with this division.
   (j) The program established by this division will contribute
significantly to the reduction of the beverage container component of
litter in this state.


14501.5.  This division does not apply to any beverage container
which is sold and delivered to a railroad, sleeping car, or steamship
company, or common carrier operating vessels, as defined in Section
238 of the Public Utilities Code, operating under a certificate of
public convenience and necessity, or an air common carrier, for use
and consumption on trains, vessels, or airplanes.
        

14502.  Unless the context otherwise requires, the definitions in
this chapter govern the construction of this division.



14503.  "Aluminum beverage container" means a beverage container
which consists primarily of aluminum.



14503.5.  "Average monthly volume" means the average number of empty
beverage containers per month received by a certified recycling
center.


14503.6.  "Beneficiating processor" means any person certified by
the department as a processor who also beneficiates purchased cullet
so that it is furnace ready for glass container manufacturers,
consistent with prevailing standards in the manufacturing industry.
Cullet shall be deemed furnace ready when it has been cleansed, is
free of nonglass contaminants, and has been crushed or otherwise
processed in such a manner as to be acceptable without further
processing by the purchasing glass container manufacturer.


14504.  (a) Except as provided in subdivision (b), "beverage" means
any of the following products if those products are in liquid,
ready-to-drink form, and are intended for human consumption:
   (1) Beer and other malt beverages.
   (2) Wine and distilled spirit coolers.
   (3) Carbonated water, including soda and carbonated mineral water.

   (4) Noncarbonated water, including noncarbonated mineral water.
   (5) Carbonated soft drinks.
   (6) Noncarbonated soft drinks and "sport" drinks.
   (7) Except as provided in paragraph (4) of subdivision (b),
noncarbonated fruit drinks that contain any percentage of fruit
juice.
   (8) Coffee and tea drinks.
   (9) Carbonated fruit drinks.
   (10) Vegetable juice in beverage containers of 16 ounces or less.

   (b) "Beverage" does not include any of the following:
   (1) Any product sold in a container that is not an aluminum
beverage container, a glass container, a plastic beverage container,
or a bimetal container.
   (2) Wine, or wine from which alcohol has been removed, in whole or
in part, whether or not sparkling or carbonated.
   (3) Milk, medical food, or infant formula.
   (4) One hundred percent fruit juice in containers that are 46
ounces or more in volume.
   (c) For purposes of this section, the following definitions shall
apply:
   (1) "Infant formula" means any liquid food described or sold as an
alternative for human milk for the feeding of infants.
   (2) (A) "Medical food" means a food or beverage that is formulated
to be consumed, or administered enterally under the supervision of a
physician, and that is intended for specific dietary management of
diseases or health conditions for which distinctive nutritional
requirements, based on recognized scientific principles, are
established by medical evaluation.
   (B) A "medical food" is a specially formulated and processed
product, for the partial or exclusive feeding of a patient by means
of oral intake or enteral feeding by tube, and is not a naturally
occurring foodstuff used in its natural state.
   (C) "Medical food" includes any product that meets the definition
of "medical food" in the federal Food, Drug, and Cosmetic Act (21
U.S.C. Sec.  360ee (b)(3).
   (3) "Noncarbonated soft drink" means a nonalcoholic, noncarbonated
naturally or artificially flavored water containing sugar or
sweetener or trace amounts of various elements from both natural and
synthetic sources.


14505.  "Beverage container" means the individual, separate bottle,
can, jar, carton, or other receptacle, however denominated, in which
a beverage is sold, and which is constructed of metal, glass, or
plastic, or other material, or any combination of these materials.
"Beverage container" does not include cups or other similar open or
loosely sealed receptacles.


14506.  "Beverage manufacturer" means any person who bottles, cans,
or otherwise fills beverage containers, or imports filled beverage
containers, for sale to distributors, dealers, or consumers.


14506.3.  "Bimetal container" means a beverage container which
consists of one or more metals and which is composed primarily of
steel.


14506.5.  "Commingled" means a mix of empty beverage containers, as
defined in Section 14512, and all other containers of the same
material type.


14506.7.  "Commingled rate" means the ratio of empty beverage
containers, as defined in Section 14512, to all other containers of
the same material type, as determined by the department.


14507.5.  (a) "Community Conservation Corps" means a nonprofit
public benefit corporation formed or operating pursuant to Part 2
(commencing with Section 5110) of Division 2 of Title 1 of the
Corporations Code, or an agency operated by a city, county, or city
and county, that is certified by the California Conservation Corps as
meeting all of the following criteria:
   (1) The corps is organized in the form of supervised work crews
and selects young men and women for participation on the basis of
motivation for hard work, personal development, and public service,
without regard to their prior employment or educational background,
and consistent with Section 14402. Participation shall be for a
period of one year, and may be extended.
   (2) The corps' program is based upon a highly disciplined work
experience, includes an educational component, and is designed to
develop corpsmembers' character and civic consciousness through
rigorous work on public projects. The educational component of the
corps' program includes enrollment in a vocational education program,
public or charter high school, or postsecondary community college.
   (3) The corps compensates corpsmembers at not less than the
federal minimum wage, and provides corpsmembers assistance in
obtaining permanent employment following their participation in the
corps program.
   (4) The corps engages in recycling and litter abatement projects
as well as projects that accomplish the conservationist and other
purposes described in subdivisions (a) to (h), inclusive, of Section
14300, and that assist agencies of local government and other
nonprofit community organizations in developing, rehabilitating, and
restoring parklands, recreational facilities, and other community
resources.
   (5) The corps consists of an average annual enrollment of not less
than 50 corpsmembers between 18 and 25 years of age. In determining
the average annual enrollment of a community conservation corps for
the purposes of subdivision (a) of Section 14581, the California
Conservation Corps shall not include special corpsmembers, as
described in Section 14303, who are employed by a community
conservation corps.
   (b) The California Conservation Corps shall evaluate a community
conservation corps for the purpose of determining its eligibility for
certification, pursuant to this section, after it has completed 12
months of continuous operation, and annually thereafter.

14508.  "Consumer" means every person who, for his or her use or
consumption, purchases a beverage in a beverage container from a
dealer.  "Consumer" includes, but is not limited to, a lodging,
eating, or drinking establishment, and soft drink vending machines.


14509.  "Container manufacturer" means any person who produces
beverage containers for filling by beverage manufacturers, including
any person who imports these beverage containers from outside of this
state for filling by beverage manufacturers.


14509.3.  "Cullet" means scrap glass that is derived from postfilled
food, drink, or beverage container glass produced or imported for
sale in the state.


14509.4.  "Convenience zone" means either of the following:
   (a) The area within a one-half mile radius of a supermarket.
   (b) The area designated by the department pursuant to Section
14571.5.


14509.5.  "Curbside program" means a recycling program which meets
all of the following criteria:
   (a) The program picks up empty beverage containers from individual
or multiple family residences, or both, and the empty beverage
containers are separated from waste materials prior to being picked
up.
   (b) The program is operated by, or pursuant to a contract with, a
city, county, or other public agency, or is acknowledged, in writing,
by a city, county, or other public agency.
   (c) The program accepts empty beverage containers from consumers
with the intent to recycle them, but does not pay the refund value.

14510.  "Dealer" means a retail establishment which offers the sale
of beverages in beverage containers to consumers.   However, any
lodging, eating, or drinking establishment, or soft drink vending
machine operator who engages in the sale of beverages in beverage
containers to consumers shall not be deemed a dealer for the purposes
of this division, except that these sales are subject to Section
14560.  To determine which retail establishments are dealers, the
department shall use annual or more frequent updates provided by
American Business Information, Inc., as long as the information
provided by American Business Information, Inc., is updated at least
annually.

14510.5.  "Department" means the Department of Conservation.


14510.6.  "Director" means the Director of Conservation.


14511.  "Distributor" means every person who engages in the sale of
beverages in beverage containers to a dealer in this state, including
any manufacturer who engages in these sales.  "Distributor" includes
any person who imports beverages from outside of this state for sale
to dealers or consumers in this state.


14511.5.  "Drink" means fruit juice or any other noncarbonated
drink.


14511.7.  "Dropoff or collection program" means any person,
association, nonprofit corporation, church, club, or other
organization certified by the department, and which accepts or
collects empty beverage containers from consumers with the intention
to recycle them, or any waste reduction facility that separates
beverage containers from the waste stream with the intent to recycle
them.  "Dropoff or collection program" does not include a certified
recycling center, nonprofit dropoff program, or curbside program.


14512.  "Empty beverage container" means a beverage container which
meets all of the following requirements:
   (a) Has the seal or closure installed by the manufacturer broken
or removed.
   (b) Does not contain foreign materials other than the residue of
the beverage  originally packaged in the beverage container by the
manufacturer.
   (c) Bears the message required by Section 14561, or is a
refillable beverage container.
   (d) Has a refund value established pursuant to Section 14560.

14512.5.  "Food or drink packaging material" means any material
which is not a beverage container in which a food or drink is sold in
a retail establishment and the food or drink is not intended for
consumption on the seller's premises.

14512.6.  "For recycling" means that an empty beverage container has
been received by a processor who has an arrangement whereby that
container will actually be recycled.

14512.7.  "Fund" means the California Beverage Container Recycling
Fund established pursuant to subdivision (a) of Section 14580.

14513.  "Glass beverage container" means a beverage container which
has a body consisting primarily of glass.

14513.2.  (a) Except as provided under Section 14549, "glass
container manufacturer" means a person who manufactures commercial
containers, whose principal component part or parts consist of virgin
glass, postfilled glass, or any combination of both, for sale in
California or for export to other states or countries.
   (b) "Glass container manufacturer" includes, but is not limited
to, all commercial manufacturing operations which produce beverage
containers, food or drink packaging material made primarily of glass,
or any combination of both of those items.  For beer and other malt
beverages manufactured outside the state, the container 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.


14513.3.  "Glass food or drink container" means any nonbeverage
container, whose principal component part or parts consist of virgin
glass, postfilled glass, or any combination of both, in which any
food or drink is sold or offered for sale in California.

14513.4.  "Handling fee" means an amount paid to an operator of a
supermarket site, a rural region recycler, as defined in Section
14525.5.1, or a nonprofit convenience zone recycler, as defined in
Section 14514.7, that is located in a convenience zone, for every
beverage container redeemed by the operator at the supermarket or
within the zone in which the supermarket site is located, by the
rural region recycler, or by the nonprofit convenience zone recycler.

14513.5.  "HDPE" means a plastic beverage container labeled with a
"2" for high-density-polyethylene resin pursuant to Section 18015 and
subject to this division.

14514.  "Managing employee" includes, but is not limited to, any
person who manages the operation of a facility or is authorized by
the certified operator to sign shipping reports.


14514.4.1.  "Neighborhood dropoff program" means a recycling program
which meets all of the following criteria:
   (a) The program is certified by the department as a dropoff or
collection program, as defined by Section 14511.7.
   (b) The program has been designated by a city, county, or city and
county to provide a recycling opportunity in residential
neighborhoods specified by the city, county, or city and county.
   (c) The program is located in a rural region, as identified
pursuant to subparagraph (A) of paragraph (2) of subdivision (b) of
Section 14571.

14514.5.  "Nonprofit dropoff program" means a recycling program
which meets  all of the following criteria:
   (a) The program is organized under Section 501(c) or Section 501
(d) of the Internal Revenue Code (26 U.S.C. Secs. 501(c) and 501(d)),
or operated by, or caused to be operated by, a city, county, or
other public agency.
   (b) The program is certified by the department pursuant to Section
14541.5.
   (c) The program accepts empty beverage containers from consumers
with the intent to recycle them, but may pay the refund value.
Except as provided in subdivision (c) of Section 14572, if the
program pays the refund value the program shall pay the  refund
value, for all types of empty beverage containers, regardless of the
beverage container's material.

14514.6.  "Not for recycling" means that an empty beverage container
has been received by a processor who does not have an arrangement
whereby that container will actually be recycled.


14514.7.  "Nonprofit convenience zone recycler" means a recycling
center that meets all of the following criteria:
   (a) The recycling center is operated by an organization
established under Section 501(c) or 501(d) of Title 26 of the United
States Code.
   (b) The recycling center is certified by the department pursuant
to Section 14538.
   (c) The recycling center is located within a convenience zone, but
is not necessarily a supermarket site.

14515.  "Other beverage container" means a beverage container which
has a body consisting of metal, glass, plastic, other materials, or a
combination of these, but which is not an aluminum, bimetal, glass,
or plastic beverage container.


14515.1.  "Out-of-state container" means a used beverage container
or used beverage container component that is not subject to Section
14560, and that is brought into this state.


14515.5.  "PET container" means a plastic beverage container labeled
with a "1" pursuant to Section 18015 and subject to this division.


14515.6.  "Physical recycling location" means the area in a
convenience zone served by one or more reverse vending machines which
accept all empty aluminum, glass, and plastic beverage containers
and issue a cash refund or a redeemable credit slip and are located
within 10 feet of each other.  The physical recycling location shall
redeem odd sized empty beverage containers or empty beverage
containers made from other material types in a manner approved by the
department. "Physical recycling location" does not include a
combination of reverse vending machines which accept less than all
empty aluminum, glass, and plastic beverage containers and one or
more dropoff bins.


14516.  "Place of business of the dealer" means the location at
which a dealer sells, or offers for sale, beverages in beverage
containers to consumers.


14517.  "Plastic beverage container" means a beverage container
which has a body consisting primarily of plastic.


14517.5.  "Postfilled container" means any container which had been
previously filled with a beverage or food.


14518.  "Processor" means any person, including a scrap dealer,
certified by the department who purchases empty aluminum beverage
containers, bimetal beverage containers, glass beverage containers,
plastic beverage containers, or any other beverage containers,
including any one or more of those beverage containers, which have a
refund value established pursuant to this division, from recycling
centers in this state for recycling, or, if the container is not
recyclable, not for recycling, and who cancels, or who certifies to
the department in a form prescribed by the department the
cancellation of, the refund value of these empty beverage containers
by processing empty beverage containers, in any manner which the
department may prescribe.  However, the department shall not take any
action regulating scrap dealers or recycling centers who are
processors or recycling centers unless authorized by and pursuant to
the goals of this division.


14518.4.  "Processing fee" means the amount paid by beverage
manufacturers to the department pursuant to Section 14575.


14518.5.  "Processing payment" means an amount paid to processors,
dropoff or collection programs, curbside programs, and recycling
centers by the department pursuant to subdivision (a) of Section
14573 and subdivision (a) of Section 14573.5 when the department
determines that the scrap value being offered by container
manufacturers, beverage manufacturers, or willing purchasers for a
particular container material is insufficient to insure the economic
recovery of the container type at the minimum number of recycling
centers or locations required pursuant to Section 14571.  The
processing payment shall be determined by the department pursuant to
Section 14575.


14519.  "Recycle," "recycled," "recycling," or "recyclable" means
the  reuse or refilling of empty beverage containers, or the process
of sorting, cleansing, treating, and reconstituting empty postfilled
beverage containers for the purpose of using the altered form.
"Recycle," "recycled," "recycling," or "recyclable" does not include
merely sorting, shredding, stripping, compressing, storing,
landfilling with, or disposing of an empty beverage container.



14519.5.  "Recycler" means a recycling center, dropoff or collection
program, or curbside program.



14520.  "Recycling center" means an operation which is certified by
the department and which accepts from consumers, and pays or provides
the refund value pursuant to Section 14572 for, empty beverage
containers intended to be recycled.


14520.5.  "Recycling location" means a place, mobile unit, reverse
vending machine, or other device where a certified recycling center
accepts one or more types of empty beverage containers from
consumers, and pays or provides the refund value for one or more
types of empty beverage containers.  For purposes of subdivision (c)
of Section 14572, "recycling location" means the aluminum reverse
vending machine and does not mean the machine's physical location.



14520.6.  "Noncertified recycler" means  a person, entity, or
operation which is not certified by the department and which
purchases empty beverage containers from consumers, or from dropoff
or collection programs.


14521.  "Recycling rate" means the proportion of empty beverage
containers by type returned to processors for recycling, measured in
the manner prescribed in Section 14551.



14522.5.  "Redemption" and "redeem" means the return to a recycling
center or location of an empty beverage container for a refund of at
least the refund value.



14523.  "Redemption payment" means the minimum amount paid by a
distributor to the department for every beverage container sold or
transferred to a dealer.


14523.5.  "Redemption rate" means the proportion of empty beverage
containers returned to processors measured in the manner prescribed
in Section 14551.


14524.  "Refund value" means the amount established for each type of
beverage container pursuant to Section 14560 that is paid by the
following:
   (a) A certified recycling center to the consumer or dropoff or
collection center for each beverage container redeemed by the
consumer or dropoff or collection center. With respect to consumers
returning containers to recycling centers, the refund value shall not
be subject to tax under the Personal Income Tax Law (Part 10
(commencing with Section 17001) of Division 2 of the Revenue and
Taxation Code) or the Bank and Corporation Tax Law (Part 11
(commencing with Section 23001) of Division 2 of the Revenue and
Taxation Code).
   (b) A processor to a certified recycling center, dropoff or
collection program, curbside program, or nonprofit dropoff program
for each beverage container received from the certified recycling
center, dropoff or collection program, curbside program, or nonprofit
dropoff program.
   (c) The department to a processor, for every beverage container
received by the processor from a certified recycling center, curbside
program, dropoff or collection program, or nonprofit dropoff
program.


14525.  "Refillable beverage container" means any aluminum beverage
container, bimetal beverage container, glass beverage container,
plastic beverage container, or other beverage container, holding 150
fluid ounces or less of beverage, which has a minimum deposit of
three cents ($0.03), and which ordinarily would be returned to the
manufacturer to be refilled and resold.


14525.5.  "Reverse vending machine" means a mechanical device which
accepts one or more types of empty beverage containers and issues a
cash refund or a redeemable credit slip with a value not less than
the container's refund value.  The refund value payments shall be
aggregated and then paid, if more than one container is redeemed in a
single transaction.


14525.5.1.  "Rural region recycler" means an operator that is
certified pursuant to subparagraph (A) of paragraph (2) of
subdivision (b) of Section 14571, and who accepts or collects empty
beverage containers from consumers pursuant to Section 14572 with the
intention to recycle them.


14526.  "Scrap value" means the price paid  for container material
types subject to this division, after shipping and handling costs are
deducted.


14526.5.  "Supermarket" means a full-line, self-service retail store
with gross annual sales of two million dollars ($2,000,000), or
more, and which sells a line of dry grocery, canned goods, or nonfood
items and some perishable items.  For purposes of determining which
dealers are supermarkets, the department shall use the annual updates
of the Progressive Grocer Marketing Guidebook  and any computer
printouts developed in conjunction with the guidebook.


14526.6.  "Supermarket site" means any certified recycling center
which redeems all types of empty beverage containers in accordance
with Section 14572, and which is located within, or outside and
immediately adjacent to the entrance of, or at, or within a parking
lot or loading area surrounding, a supermarket which is the focal
point of a convenience zone, or a dealer that is located within that
zone, and which is accessible to motor traffic.


14527.  "Use or consumption" includes the exercise of any right or
power over a beverage incidental to the beverage's ownership,
including, but not limited  to, drinking the beverage.  "Use or
consumption" does not include the sale, or the keeping or retention,
of a beverage for the purposes of sale.


14528.  "Universal product code" is an 11-digit, all-numeric code
that represents a beverage container or other consumer package of a
particular brand, size, type, and manufacturer by using a series of
alternating bars and spaces for electronic scanning.


14528.1.  "Voluntary artificial scrap value" means a price paid by a
willing purchaser of empty PET containers, that reflects the payment
of the scrap value for all PET containers sold, and that, when
combined with payments made from the PET  processing fee account
pursuant to clause (ii) of subparagraph (A) of paragraph (6) of
subdivision (a) of Section 14581, is equal to, or more than, the
recycling cost for empty PET containers, as determined in subdivision
(d) of Section 14575.


14528.5.  "Wine and distilled spirit cooler" means a beverage
containing wine or distilled spirits to which is added concentrated
or unconcentrated juice or flavoring material and containing not more
than 7 percent alcohol by volume.
   This section shall become operative on January 1, 1990.


14529.  This division is a matter of statewide interest and concern
and is applicable uniformly throughout the state.  Accordingly, this
division occupies the whole field of regulation of recycling-related
refund values, redemption payments, deposits, and similar fees
relating to beverage containers, as provided in this division, and to
containers of wine and distilled spirits products.  No city, county,
or other public agency may enforce or implement any existing or new
ordinance, resolution, regulation, or rule establishing
recycling-related refund values, redemption payments, deposits, or
similar fees relating to these containers in the state unless
expressly authorized by this division.  If a federal law is enacted
which establishes recycling-related refund values, redemption
payments, deposits, and similar fees, relating to beverage
containers, other than a federal law only affecting federal lands, or
if a state law is enacted by initiative, which establishes
recycling-related refund values, redemption payments, deposits, and
similar fees relating to beverage containers, this division shall
become inoperative.  This section does not prohibit the
implementation or enforcement of any ordinance or regulation
governing curbside or dropoff recycling programs operated by, or
pursuant to a contract with, a city, county, or other public agency,
including actions relating to fees, or establishing fees, for these
programs


14529.5.  Any action to increase recycling taken by the department,
or by any person or entity, affecting scrap values, the quantities of
materials being recycled, or the method of invoicing the sale of
beverages pursuant to this division is not a violation of the
Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2
of Division 7 of the Business and Professions Code) and the Unfair
Practices Act (Chapter 4 (commencing with Section 17000) of Part 2 of
Division 7 of the Business and Professions Code).  This section does
not apply to any action taken by a recycling center to increase the
recycling of beverage containers.


14529.7.  (a) Except as provided in subdivision (b), this division
does not apply to any program involving the collection and payment of
deposits for beverage containers sold, used, or consumed at national
parks and monuments, military installations, or any other property
owned by and under the jurisdiction of the United States.
   (b) To the extent permitted by federal law, this division,
including, but not limited to, Section 14560.5, shall apply to a
national park or monument, military installation, or any other
property owned by, and under the jurisdiction of, the United States,
with regard to a beverage container not otherwise subject to a
program involving the collection and payment of deposits for beverage
containers.
   (c) For purposes of this section, "a program involving the
collection and payment of deposits" means a program, other than one
imposed pursuant to this division, at a national park or monument,
military installation, or any other property owned by, and under the
jurisdiction of, the United States, that imposes a deposit on a
beverage container at the time of sale and provides an opportunity
for the beverage container purchaser to redeem the deposit at the
national park or monument, military installation, or other property
owned by, and under the jurisdiction of, the United States.

14530.  This division shall be administered by the department.
Notwithstanding Section 607, the department may, for organizational
purposes, create a new division, bureau, or office to administer this
division.  If a new division, bureau, or office is created, any
reference to "department" or "director" in this division shall be
deemed to be a reference to that entity and the officer in charge of
that entity.


14530.1.  There is hereby created within the department a recycling
financial analysis and policy development unit, to develop, analyze,
consolidate, and evaluate economic and policy proposals to carry out
the objectives of this division, including, but not limited to, all
of the following:
   (a) Evaluate the solvency of the fund on an ongoing basis in order
to make recommendations and report to the Legislature.
   (b) Identify the fiscal impacts of proposed recycling programs, or
changes to existing recycling programs.
   (c) Assess the economic impacts of recycling proposals and
programs on the state's citizens and businesses, including the impact
of adding new container types into existing law.
   (d) Develop recommendations to better integrate the various
recycling alternatives available from state government, local
government, and private industry with the objective of reducing
recycling costs to citizens and businesses and meeting the 80-percent
recycling goal established by this division.


14530.2.  The Division of Recycling shall be administered by an
assistant director who is appointed by the Governor.  The appointment
shall be exempt from civil service.


14530.5.  (a) For purposes of entering into contracts for
consulting, promotional, or advisory services necessary to implement
this division, the requirements of Sections 11042 and 14615 of the
Government Code and Sections 10295 and 10318 of the Public Contract
Code do not apply to the activities of the department pursuant to
this division, except that any sole source contract awarded by the
department shall be reviewed and approved by the Department of
General Services.
   (b) In addition to any regulations which the department is
required by statute to adopt, the department may adopt any other
rules and regulations pursuant to  Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code which the department determines may be necessary or useful to
carry out this division or any of the department's duties or
responsibilities imposed pursuant to this division.
   (c) The department may prepare, publish, and issue printed
pamphlets, promotional materials, and bulletins which the director
determines to be necessary for the dissemination of information to
the public concerning the activities of the department pursuant to
this division.


14530.6.  Upon the request of the department, the Attorney General
shall represent the department and the state in litigation concerning
affairs of the department.


14536.  (a) Except as provided in subdivision (b), the director
shall adopt, amend, or repeal all rules and regulations in accordance
with Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code.
   (b) (1) The director shall adopt regulations, and may adopt
emergency regulations for the purposes of implementing Sections
14538, 14539, 14541, 14549.1, 14549.2, 14549.7, 14550, 14561, 14574,
14575, 14585, 14588.1, 14588.2, and 14591.
   (2) Any emergency regulations, if adopted, shall be adopted in
accordance with Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code, and for the
purposes of that chapter, including Section 11349.6 of the Government
Code, the adoption of these regulations is an emergency and shall be
considered by the Office of Administrative Law as necessary for the
immediate preservation of the public peace, health and safety, and
general welfare. Notwithstanding Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code,
including subdivision (e) of Section 11346.1 of the Government Code,
any emergency regulations adopted pursuant to this section shall be
filed with, but not be repealed by, the Office of Administrative Law
and shall remain in effect until revised by the director.


14536.1.  Notwithstanding Section 14536, if the department
determines that it is necessary to adopt or amend regulations to
implement Section 14575, the department may adopt or amend those
regulations as emergency regulations.  The Office of Administrative
Law shall consider those regulations to be necessary for the
immediate preservation of the public peace, health and safety, and
general welfare for purposes of Section 11349.6 of the Government
Code.  Notwithstanding subdivision (e) of Section 11346.1 of the
Government Code, the emergency regulations adopted or amended
pursuant to this section shall be repealed 180 days after the
effective date of the regulations, unless the department complies
with Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code.


14536.5.  (a) In carrying out the division, the department may
solicit and use all expertise available in other state agencies  and
where an existing state agency performs functions of a similar nature
to the department's functions, the department may contract with, or
cooperate with, the agency in carrying out this division.
   (b) Notwithstanding subdivision (a), the Department of Food and
Agriculture may, as requested by the department, collect, compile,
and report information regarding the importation of filled or
postfilled beverage containers.  Border agricultural inspection
stations and any other appropriate information gathering focal points
may be used and the plant quarantine officers and supervisors of the
Department of Food and Agriculture shall collect, compile, and
report information requested by the department pursuant to this
subdivision.  Recovery of costs incurred by the Department of Food
and Agriculture shall be accomplished through an interagency
agreement with the department.


14537.  The department shall keep accurate books, records, and
accounts of all of its dealings, and these books, records, and
accounts are subject to an annual audit by an auditing firm selected
by the department.  The auditing firm or the department shall also
conduct a selective audit of entities making payments to, or
receiving payments from, the department to determine whether
redemption payments and applicable processing fees are being paid to
the department on all beverage containers sold in California, and
that refund values and processing payments are being paid out
properly by the department.


14538.  (a) The department shall certify the operators of recycling
centers pursuant to this section.  The director shall adopt, by
regulation, a procedure for the certification of recycling centers,
including standards and requirements for certification.  These
regulations shall require that all information be submitted to the
department under penalty of perjury.  A recycling center shall meet
all of the standards and requirements contained in the regulations
for certification.  The regulations shall require, but shall not be
limited to requiring, that all of the following conditions be met for
certification:
   (1) The operator of the recycling center demonstrates, to the
satisfaction of the department, that the operator will operate in
accordance with this division.
   (2) If one or more certified entities have operated at the same
location within the past five years, the operations at the location
of the recycling center exhibit, to the satisfaction of the
department, a pattern of operation in compliance with the
requirements of this division and regulations adopted pursuant to
this division.
   (3) The operator of the recycling center notifies the department
promptly of any material change in the nature of his or her
operations which conflicts with information submitted in the operator'
s application for certification.
   (b) A certified recycling center shall comply with all of the
following requirements for operation:
   (1) The operator of the recycling center shall not pay a refund
value for, or receive a refund value from any processor for, any food
or drink packaging material or any beverage container or other
product that does not have a refund value established pursuant to
Section 14560.
   (2) The operator of a recycling center shall take those actions
that satisfy the department to prevent the payment of a refund value
for any food or drink packaging material or any beverage container or
other product that does not have a refund value established pursuant
to Section 14560.
   (3) Unless exempted pursuant to subdivision (b) of Section 14572,
a certified recycling center shall accept, and pay at least the
refund value for, all empty beverage containers, regardless of type.

   (4) A certified recycling center shall not pay any refund values,
processing payments, or administrative fees to a noncertified
recycler.
   (5) A certified recycling center shall not pay any refund values,
processing payments, or administrative fees on empty beverage
containers or other containers that the certified recycling center
knew, or should have known, were coming into the state from out of
the state.
   (6) A certified recycling center shall not claim refund values,
processing payments, or administrative fees on empty beverage
containers that the certified recycling center knew, or should have
known, were received from noncertified recyclers or on beverage
containers that the certified recycling center knew, or should have
known, come from out of the state.
   (7) A certified recycling center shall prepare and maintain the
following documents involving empty beverage containers, as specified
by the department by regulation:
   (A) Shipping reports that are required to be prepared by the
recycling center, or that are required to be obtained from other
recycling centers.
   (B) Consumer transaction receipts.
   (C) Consumer transaction logs.
   (D) Rejected container receipts on materials subject to this
division.
   (E) Receipts for transactions with beverage manufacturers on
materials subject to this division.
   (F) Receipts for transactions with beverage distributors on
materials subject to this division.
   (G) Documents authorizing the recycling center to cancel empty
beverage containers.
   (H) Weight tickets.
   (8) In addition to the requirements of paragraph (7), a certified
recycling center shall cooperate with the department and make
available its records of scrap transactions when the review of these
records is necessary for an audit or investigation by the department.

   (c) The department may recover, in restitution pursuant to
paragraph (5) of subdivision (c) of Section 14591.2, payments made
from the fund to the certified recycling center pursuant to Section
14573.5 that are based on the documents specified in paragraph (7),
that are not prepared or maintained in compliance with the department'
s regulations, and that do not allow the department to verify claims
for program payments.
   (d) The department may certify a recycling center that will
operate less than 30 hours a week, as specified in paragraph (2) of
subdivision (b) of Section 14571.


14539.  (a) The department shall certify processors pursuant to this
section. The director shall adopt, by regulation, requirements and
standards for certification. The regulations shall require, but shall
not be limited to requiring, that all of the following conditions be
met for certification:
   (1) The processor demonstrates to the satisfaction of the
department that the processor will operate in accordance with this
division.
   (2) If one or more certified entities have operated at the same
location within the past five years, the operations at the location
of the processor exhibit, to the satisfaction of the department, a
pattern of operation in compliance with the requirements of this
division and regulations adopted pursuant to this division.
   (3) The processor notifies the department promptly of any material
change in the nature of the processor's operations that conflicts
with the information submitted in the operator's application for
certification.
   (b) A certified processor shall comply with all of the following
requirements for operation:
   (1) The processor shall not pay a refund value for, or receive a
refund value from the department for, any food or drink packaging
material or any beverage container or other product that does not
have a refund value established pursuant to Section 14560.
   (2) The processor shall take those actions that satisfy the
department to prevent the payment of a refund value for any food or
drink packaging material or any beverage container or other product
that does not have a refund value established pursuant to Section
14560.
   (3) Unless exempted pursuant to subdivision (b) of Section 14572,
the processor shall accept, and pay at least the refund value for,
all empty beverage containers, regardless of type, for which the
processor is certified.
   (4) A processor shall not pay any refund values, processing
payments, or administrative fees to a noncertified recycler. A
processor may pay refund values, processing payments, or
administrative fees to any entity that is identified by the
department on its list of certified recycling centers.
   (5) A processor shall not pay any refund values, processing
payments, or administrative fees on empty beverage containers or
other containers that the processor knew, or should have known, were
coming into the state from out of the state.
   (6) A processor shall not claim refund values, processing
payments, or administrative fees on empty beverage containers that
the processor knew, or should have known, were received from
noncertified recyclers or on beverage containers that the processor
knew, or should have known, come from out of the state. A processor
may claim refund values, processing payments, or administrative fees
on any empty beverage container that does not come from out of the
state and that is received from any entity that is identified by the
department on its list of certified recycling centers.
   (7) A processor shall take the actions necessary and approved by
the department to cancel containers to render them unfit for
redemption.
   (8) A processor shall prepare or maintain the following documents
involving empty beverage containers, as specified by the department
by regulation:
   (A) Shipping reports that are required to be prepared by the
processor or that are required to be obtained from recycling centers.

   (B) Processor invoice reports.
   (C) Cancellation verification documents.
   (D) Documents authorizing recycling centers to cancel empty
beverage containers.
   (E) Processor-to-processor transaction receipts.
   (F) Rejected container receipts on materials subject to this
division.
   (G) Receipts for transactions with beverage manufacturers on
materials subject to this division.
   (H) Receipts for transactions with distributors on materials
subject to this division.
   (I) Weight tickets.
   (9) In addition to the requirements of paragraph (7), a processor
shall cooperate with the department and make available its records of
scrap transactions when the review of these records is necessary for
an audit or investigation by the department.
   (c) The department may recover, in restitution pursuant to
paragraph (5) of subdivision (c) of Section 14591.2, any payments
made by the department to the processor pursuant to Section 14573
that are based on the documents specified in paragraph (8), that are
not prepared or maintained in compliance with the department's
regulations, and that do not allow the department to verify claims
for program payments.


14539.5.  (a) The department shall certify dropoff and collection
programs pursuant to this section.  The director shall adopt, by
regulation, requirements and standards for certification and a
dropoff or collection program shall meet all the standards and
requirements contained in the regulations for certification.  The
regulations shall require that all information be submitted to the
department under penalty of perjury.  The regulations shall require,
in addition to any other conditions that may be imposed by the
department, that both of the following conditions be met for
certification:
   (1) The dropoff or collection program demonstrates, to the
satisfaction of the department, that the dropoff or collection
program will operate in accordance with this division.
   (2) The dropoff or collection program notifies the department
promptly of any material change in the nature of its operations that
conflicts with the information submitted in the application for
certification.
   (b) A certified dropoff or collection program shall not receive
any refund value or processing payment on an empty beverage container
that the certified dropoff or collection program knew, or should
have known, was received from a noncertified recycler, on any
beverage container that the certified dropoff or collection program
knew or should have known came from out of this state, or any other
beverage container or other product that does not have a refund value
established pursuant to Section 14560.
   (c) The department may recover, in restitution pursuant to
paragraph (5) of subdivision (c) of Section 14591.2, any payment made
from the fund to a dropoff or collection program pursuant to Section
14573.5 that is based on a document that is not prepared or
maintained in compliance with any applicable recordkeeping
requirements required pursuant to this division or the department's
regulations and that does not allow the department to verify the
claims for those payments.


14540.  The department may review and verify all applications for
certification of recycling centers and processors, and may conduct a
comprehensive field investigation of any applicant in any manner
which the department deems necessary to promote the purposes of this
division.  This division does not prohibit the department from
certifying the same location or entity as both a processor and a
recycling center.


14541.  (a) The department may issue a certificate pursuant to an
initial or renewal application for certification as probationary, and
the department may issue any other certificate as probationary
pursuant to an enforcement action.
   (b) A probationary certificate issued pursuant to this section
shall be issued for a limited period of not more than two years.
Before the end of the probationary period, the department shall issue
a nonprobationary certificate, extend the probationary period for
not more than one year, or, after notice to the probationary
certificate holder, revoke the probationary certificate.  Subsequent
to the revocation, the former probationary certificate holder may
request a hearing, which, notwithstanding, Section 11445.20 of the
Government Code, shall be conducted in the same form as a hearing for
an applicant whose original application for certification is denied.

   (c) If a hearing is requested pursuant to subdivision (b) and the
party requesting the hearing fails to appear on the date scheduled,
and does not notify the department at least five days prior to the
hearing date that the party will not appear, the department may
recover from the party all costs and fees incurred by the department,
including attorneys' and experts' fees, and any other cost
associated with preparing for, or conducting, the hearing.
   (d) If conditions are imposed on the certificate holder as part of
a disciplinary proceeding conducted pursuant to Section 14591.2, the
certificate shall be considered probationary.  If, at any time, the
certificate holder violates any term or condition of the probationary
certificate, the certificate may be revoked or suspended, after
three days' notice, without any further hearing by the department.

14541.5.  Any certification or registration granted by the
department is a privilege and not a vested right or interest.

        

14549.  (a) Every glass container manufacturer shall report to the
department each month, by a method as determined by the department,
the amount of total tons of new glass food, drink, and beverage
containers made in California by that glass container manufacturer
and the tons of California postfilled glass used in the manufacturing
of those new containers.
   (b) Each glass container manufacturer in the state shall use a
minimum percentage of 35 percent of postfilled glass in the
manufacturing of their glass food, drink, or beverage containers
measured in the aggregate, on an annual basis, except that if a glass
container manufacturer demonstrates to the satisfaction of the
department that its use of postfilled glass during the annual period
is made up of at least 50 percent mixed-color cullet, then that
manufacturer shall use a minimum percentage of 25 percent postfilled
glass in the manufacturing of its glass food, drink, or beverage
containers, measured in the aggregate, on an annual basis.
   (c) A glass container manufacturer may seek a reduction or waiver
of the minimum postfilled glass percentage required to be used in the
manufacture of glass food, drink, or beverage containers pursuant to
subdivision (b).  The department may grant a reduction or waiver of
the percentage requirement if it finds and determines that it is
technologically infeasible for the glass container manufacturer to
achieve the percentage requirement or if the department determines
that a glass container manufacturer cannot achieve the minimum
percentage because of a lack of available glass cullet.
   (d) For the purposes of this section, "mixed-color cullet" means
cullet that does not meet the American Society for Testing and
Materials (ASTM) standard specifications for color mix of color
sorted postfilled glass as raw material for the manufacture of glass
containers.


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.
   (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.


14549.2.  (a) For purposes of this section, the following
definitions shall apply:
   (1) "Certified entity" means a recycling center, processor, or
dropoff or collection program certified pursuant to this division.
   (2) "Product manufacturer" means any person who manufactures a
plastic product in this state.
   (b) In order to develop California markets for empty plastic
beverage containers collected for recycling in the state, the
department may, consistent with Section 14581 and subject to the
availability of funds, pay a market development payment to a
certified entity or product manufacturer for empty plastic beverage
containers collected and managed pursuant to this section.
   (c) The department shall make a market development payment to a
certified entity or product manufacturer in accordance with this
section, only if the plastic beverage container is collected and
either recycled or used in manufacturing, in the state, as follows:
   (1) The department shall make a market development payment to a
certified entity for empty plastic beverage containers that are
collected for recycling in the state, that are subsequently washed
and processed by a certified entity into a flake, pellet, or other
form in the state, and made usable for the manufacture of a plastic
product by a product manufacturer.
   (2) The department shall make a market development payment to a
product manufacturer for empty plastic beverage containers that are
collected for recycling in the state, that are subsequently washed
and processed into a flake, pellet or other form in the state, and
used by that product manufacturer to manufacture a product in this
state.
   (3) The department shall determine the amount of the market
development payment, which may be set at a different level for a
certified entity and a product manufacturer, but shall not exceed one
hundred fifty dollars ($150) per ton.
   (4) The department may make a market development payment to both a
certified entity and a product manufacturer for the same empty
plastic beverage container.
   (d) This section shall remain in effect only until January 1,
2012, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2012, deletes or extends
that date.


14549.5.  On or before the 90th day after the effective date of the
act amending this section, and annually thereafter, or more
frequently as determined to be necessary by the department, the
department shall review and, if necessary in order to ensure payment
of the most accurate commingled rate feasible, recalculate commingled
rates paid for beverage containers and postfilled containers paid to
curbside recycling programs, collection programs, and recycling
centers.  Prior to recalculating a commingled rate pursuant to this
section, the department shall do all of the following:
   (a) Consult with private and public operators of curbside
recycling programs, collection programs, and recycling centers
concerning the size of the statewide sample, appropriate sampling
methodologies, and alternatives to exclusive reliance on a statewide
commingled rate.
   (b) At least 60 days prior to the effective date of any new
commingled rate, hold a public hearing, after giving notice, to make
available to the public and affected parties the department's review
and any proposed recalculations of the commingled rate.
   (c) At least 60 days prior to the effective date of any new
commingled rate, and upon the request of any party, make available
documentation or studies which were prepared as part of the
department's review of a commingled rate.
   (d) (1) Notwithstanding this division, the department may
calculate a curbside recycling program commingled rate pursuant to
this subdivision for bimetal containers and a combined commingled
rate for all plastic beverage containers displaying the resin
identification code "3," "4," "5," "6," or "7" pursuant to Section
18015.
   (2) The department may enter into a contract for the services
required to implement the amendments to this section made by the act
of the first half of the 2003-04 Regular Session of the Legislature
amending this section.  The department may not expend more than two
hundred fifty thousand dollars ($250,000) for each year of the
contract.  The contract shall be paid only from revenues derived from
redemption payments and processing fees paid on plastic beverage
containers displaying the resin identification code "3," "4," "5,"
"6," or "7" pursuant to Section 18015.  If the department determines
that insufficient funds will be available from these revenues, after
refund values are paid to processors and the reduction is made in the
processing fee pursuant to subdivision (f) of Section 14575 for
these containers, the department may determine not to calculate a
commingled rate pursuant to this subdivision.


14549.6.  (a) The department, consistent with Section 14581 and
subject to the availability of funds, shall annually pay a total of
fifteen million dollars ($15,000,000) per fiscal year to operators of
curbside programs and neighborhood dropoff programs that accept all
types of empty beverage containers for recycling.  The payments shall
be for each container collected by the curbside or neighborhood
dropoff programs and properly reported to the department by
processors, based upon all of the following:
   (1) The payment amount shall be calculated based upon the volume
of beverage containers collected by curbside and neighborhood dropoff
programs during the 12-month calendar year ending on December 31 of
the fiscal year for which payments are to be made.
   (2) The per-container rate shall be calculated by dividing the
total volume of beverage containers collected, as determined pursuant
to paragraph (1), into the sum of fifteen million dollars
($15,000,000).
   (3) The amount to be paid to each operator of a curbside and
neighborhood dropoff program shall be based upon the per-container
rate, calculated pursuant to paragraph (2), multiplied by the
curbside program's total reported beverage container volume
calculated pursuant to paragraph (1).
   (b) The amounts paid pursuant to this section shall be expended by
operators of curbside and neighborhood dropoff programs only for
activities related to beverage container recycling.
   (c) The department shall disburse payments pursuant to this
section not later than the end of the fiscal year following the
calendar year for which the payments are  calculated pursuant to
paragraph (1) of subdivision (a), subject to the availability of
funds.
   (d) The operator of a curbside program or neighborhood dropoff
program shall make available for inspection and review any relevant
record that the department determines is necessary to verify
compliance with this section.


14549.7.  (a) Commencing on January 1, 2007, and consistent with
Section 14581, and to the extent that existing funds are available
for this purpose, the department shall establish a recycling
incentive payment for eligible recycling centers and dropoff or
collection programs for empty beverage containers accepted or
collected directly from consumers.
   (b) To be eligible for recycling incentive payments, a recycling
center, or dropoff or collection program shall meet both of the
following requirements:
   (1) (A) The recycling center or dropoff or collection program is
certified, and "open for business," as specified in Section 14571,
during the entire two-year period prior to the six-month period for
which payments are made, during the entire six-month period for which
payments are made, and at the time the payment is made. A six-month
period shall commence either on January 1 or July 1.
   (B) Notwithstanding subparagraph (A), a recycling center or
dropoff or collection program that was operational prior to July 1,
2005, may receive a recycling incentive payment for eligible beverage
containers collected on or after January 1, 2007.
   (2) The number of beverage containers accepted or collected
directly from consumers for recycling by the recycling center or
dropoff or collection program during the six-month period for which
payments are made exceeds by 6.5 percent, or more, for calendar year
2007, and by 5 percent, or more, for calendar years 2008 and 2009,
the number of beverage containers accepted or collected directly from
consumers for recycling by that entity during the same six-month
period of the prior year.
   (c) (1) Eligible beverage containers are those beverage containers
that are accepted or collected directly from consumers for recycling
by an eligible recycling center or dropoff or collection program
during the six-month period for which payments are made that exceed
the number of beverage containers accepted or collected directly from
consumers by that entity in the same six-month period of the prior
year. Eligible beverage containers determined pursuant to this
paragraph shall be the "eligible volume" used to make payments
pursuant to paragraph (4) of subdivision (d).
   (2) Empty beverage containers purchased or collected by a
recycling center or a dropoff or collection program from another
certified or registered entity are not eligible for recycling
incentive payments.
   (d) The department shall make recycling incentive payments for
each eligible beverage container accepted or collected directly from
consumers by an eligible recycling center and dropoff or collection
program and properly reported to the department by a processor, based
upon all of the following:
   (1) The payment amount shall be calculated based upon the number
of eligible beverage containers, as specified in subdivision (c),
collected by the eligible recycling centers and dropoff or collection
program, as specified in subdivision (b), during the six-month
period for which the payments are to be made.
   (2) The per-container rate shall be up to one cent ($0.01) for
each eligible beverage container, pursuant to subdivision (c).
   (3) The amount to be paid to each recycling center and dropoff or
collection program shall be based upon the per-container rate,
multiplied by each eligible program's total number of eligible
beverage containers calculated pursuant to paragraph (1).
   (e) The department shall disburse payments pursuant to this
section within 6 months of the end of the six-month period for which
the payments are calculated pursuant to paragraph (1) of subdivision
(d), subject to the availability of funds.
   (f) Only one payment shall be made for each eligible empty
beverage container collected by an eligible recycling center or
dropoff or collection program.
   (g) The operator of an eligible recycling center and dropoff or
collection program shall make available for inspection and review any
relevant record that the department determines is necessary to
verify compliance with this section.
   (h) This section shall remain in effect only until January 1,
2010, and as of that date is repealed, unless a later enacted
statute, which is enacted before January 1, 2010, deletes or extends
that date.


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.


14551.  (a) The department shall establish reporting periods for the
reporting of redemption rates and recycling rates. Each reporting
period shall be six months. The department shall determine all of the
following for each reporting period and shall issue a report on its
determinations, within 130 days of the end of each reporting period:

   (1) Sales of beverages in aluminum beverage containers, bimetal
beverage containers, glass beverage containers, plastic beverage
containers, and other beverage containers in this state, including
refillable beverage containers.
   (2) Returns for recycling, and returns not for recycling, of empty
aluminum beverage containers, bimetal beverage containers, glass
beverage containers, plastic beverage containers, and other beverage
containers in this state, including refillable beverage containers
returned to distributors pursuant to Section 14572.5. These numbers
shall be calculated using the average current weights of beverage
containers, as determined and reported by the department. To these
numbers shall be added and separately reported the following, if
greater than, or equal to, zero:
   (A) All empty postfilled aluminum, glass, and plastic food or
drink packaging materials sold in the state, returned for recycling,
and reported by weight to the department which do not have a refund
value less the number specified in subparagraph (B).
   (B) The number of beverage containers which comprise the first
five percentage points of the redemption rate without including the
empty postfilled aluminum, glass, and plastic food or drink packaging
materials sold in the state, returned for recycling and reported by
weight to the department which do not have a refund value.
   (3) An aluminum beverage container redemption rate, the numerator
of which shall be the number of empty aluminum beverage containers
returned, including refillable aluminum beverage containers and empty
postfilled aluminum food or drink packaging material included in
paragraph (2), and the denominator of which shall be the number of
aluminum beverage containers sold in this state.
   (4) An aluminum beverage container recycling rate, the numerator
of which shall be the number of empty aluminum beverage containers
returned for recycling, including refillable aluminum beverage
containers, and the denominator of which shall be the number of
aluminum beverage containers sold in this state.
   (5) A bimetal beverage container redemption rate, the numerator of
which shall be the number of empty bimetal beverage containers
returned, and the denominator of which shall be the number of bimetal
beverage containers sold in this state.
   (6) A bimetal beverage container recycling rate, the numerator of
which shall be the number of empty bimetal containers returned for
recycling, including refillable bimetal beverage containers, and the
denominator of which shall be the number of bimetal beverage
containers sold in this state.
   (7) A glass beverage container redemption rate, the numerator of
which shall be the number of empty glass beverage containers
returned, including refillable glass beverage containers and empty
postfilled food or drink packaging materials included in paragraph
(2), and the denominator of which shall be the number of glass
beverage containers sold in this state.
   (8) A glass beverage container recycling rate, the numerator of
which shall be the number of empty glass beverage containers returned
for recycling, including refillable glass beverage containers, and
the denominator of which shall be the number of glass beverage
containers sold in this state.
   (9) A plastic beverage container redemption rate, the numerator of
which shall be the number of empty plastic beverage containers
returned, including refillable plastic beverage containers and empty
postfilled food or drink packaging materials included in paragraph
(2), and the denominator of which shall be the number of plastic
beverage containers sold in this state.
   (10) A plastic beverage container recycling rate, the numerator of
which shall be the number of empty plastic beverage containers
returned for recycling, including refillable plastic beverage
containers, and the denominator of which shall be the number of
plastic beverage containers sold in this state.
   (11) A redemption rate for other beverage containers, the
numerator of which shall be the number of empty beverage containers
other than those containers specified in paragraphs (1) to (10),
inclusive, returned, and the denominator of which shall be the number
of beverage containers, other than those containers specified in
paragraphs (1) to (10), inclusive, sold in this state.
   (12) A recycling rate for other beverage containers, the numerator
of which shall be the number of empty beverage containers other than
those containers specified in paragraphs (1) to (10), inclusive,
returned for recycling, and the denominator of which shall be the
number of beverage containers, other than those containers specified
in paragraphs (1) to (10), inclusive, sold in this state.
   (13) The department may define categories of other beverage
containers, and report a redemption rate and a recycling rate for
each such category of other beverage containers.
   (14) The volumes of materials collected from certified recycling
centers, by city or county, as requested by the city or county, if
the reporting is consistent with the procedures established pursuant
to Section 14554 to protect proprietary information.
   (b) The department shall determine the manner of collecting the
information for the reports specified in subdivision (a), including
establishing procedures, to protect any proprietary information
concerning the sales and purchases.


14551.4.  The department shall make available the information
collected pursuant to subdivision (a) of Section 14551, concerning
the volumes of materials collected from certified recycling centers,
only to a governmental agency which requests the information,
including a city or county, or an entity specifically designated by
the city or county to receive the information if the entity requests
the information, if all of the following conditions are met:
   (a) The request is made in writing.
   (b) All information provided by the department is provided using
the aggregate amounts collected in the city or county unless the city
or county, or an entity specifically designated by the city or
county to receive the information, requests the information provided
by each individual certified recycling center.
   (c) All information provided to the governmental agency, including
a city or county, or an entity specifically designated by the city
or county to receive the information, is considered proprietary and
confidential in nature and protected in accordance with the
requirements of subdivision (b) of Section 14551 of the Public
Resources Code, Section 14554 of the Public Resources Code, and
subdivision (e) of Section 6254.5 of the Government Code.


14551.5.  (a) The department shall register the operators of
curbside programs pursuant to this section.
   (b) Each curbside program that receives refund values and
administrative fees from certified processors, or that receives
refund values from certified recycling centers, shall register with
the department for an identification number.  No curbside program may
receive refund values or administrative fees without a valid
identification number.
   (c) The director shall adopt, by regulation, a procedure for the
registration of curbside programs.  This procedure shall include
standards and requirements for registration.  These regulations shall
require that all information be submitted to the department under
penalty of perjury.  A curbside program shall meet all of the
standards and requirements contained in the regulations for
registration.
   (d) The department shall require that the identification numbers
received pursuant to this section be used on shipping reports for
material collected by curbside programs pursuant to Sections 14538
and 14539 and on all other reports or documentation required by the
department to administer this division.
   (e) An operator of a curbside program registered pursuant to this
section shall be deemed a certificate holder for purposes of this
division.


14552.  (a) The department shall establish and implement an auditing
system to ensure that the information collected, and refund values
and redemption payments paid pursuant to this division, comply with
the purposes of this division.  Notwithstanding Sections 14573 and
14573.5, the auditing system adopted by the department may include
prepayment or postpayment controls.
   (b) (1) The department may audit or investigate any action taken
during the following periods and may determine if there was
compliance with this division and the regulations adopted pursuant to
this division, during any, or all, of that period:
   (A) On and before December 31, 2001, the department may audit or
investigate any action taken up to two years before the onset of the
audit or investigations.
   (B) On and after January 1, 2002, the department may audit or
investigate any action taken up to three years before the onset of
the audit or investigation.
   (2) Notwithstanding any other provision of law establishing a
shorter statute of limitation, the department may take an enforcement
action, including, but not limited to, an action for restitution or
to impose penalties, at any time within two years after the
department discovers, or with reasonable diligence, should have
discovered, a violation of this division or the regulations adopted
pursuant to this division.
   (c) During the conduct of any inspection, including, but not
limited to, an inspection conducted as part of an audit or
investigation, the entity that is the subject of the inspection
shall, during its normal business hours, provide the department with
immediate access to its facilities, operations, and any relevant
record, that, in the department's judgment, the department determines
are necessary to carry out this section to verify compliance with
this division and the regulations adopted pursuant to this division.

   (1) The department may take disciplinary action pursuant to
Section 14591.2 against any person who fails to provide the
department with access pursuant to this subdivision including, but
not limited to, imposing penalties and the immediate suspension or
termination of any certificate or registration held by the operator.

   (2) The department shall protect any information obtained pursuant
to this section in accordance with Section 14554, except that this
section does not prohibit the department from releasing any
information that the department determines to be necessary in the
course of an enforcement action.
   (d) The auditing system adopted by the department shall allow for
reasonable shrinkage in material due to moisture, dirt, and foreign
material.  The department, after an audit by a qualified auditing
firm and a hearing, shall adopt a standard to be used to account for
shrinkage and shall incorporate this standard in the audit process.
   (e) If the department prevails against any entity in any civil or
administrative action brought pursuant to this division, and money is
owed to the department as a result of the action, the department may
offset the amount against amounts claimed by the entity to be due to
it from the department.  The department may take this offset by
withholding payments from the entity or by authorizing all processors
to withhold payment to a certified recycling center.
   (f) If the department determines, pursuant to an audit or
investigation, that a distributor or beverage manufacturer has
overpaid the redemption payment or processing fee, the department may
do either of the following:
   (1) Offset the overpayment against future payments.
   (2) Refund the payment pursuant to Article 3 (commencing with
Section 13140) of Chapter 2 of Part 3 of Division 3 of Title 2 of the
Government Code.


14552.5.  (a) The department shall supply all certified processors
with a standardized rejection form that shall include, but not be
limited to, the names of the parties rejecting the postfilled
beverage container material, the date of the rejections, the reasons
for the rejections, the amount of rejected material, and a detailed
accounting of the steps taken by the processor and container
manufacturer to avert landfilling or disposal of the material, as
required by subdivision (c) of Section 14552.51.
   (b) Every container manufacturer shall fill out the standardized
rejection form specified in subdivision (a) whenever that container
manufacturer rejects a load of redeemed beverage container materials
physically delivered to the manufacturer's place of business and
offered for sale by a certified processor.  The rejection form shall
be filled out by the container manufacturer at the time of the
rejection and immediately given to the certified processor for
submittal to the department.  Any container manufacturer who refuses
to fill out the standardized rejection form required by this
subdivision is in violation of this division and is subject to the
fines and penalties in Sections 14591 and 14591.1.
   (c) If a processor has made a good faith effort, as determined by
the department, to locate a willing purchaser and is unsuccessful,
the processor may fill out the standardized rejection form specified
in subdivision (a) and submit it to the department.  The processor
rejection form shall include, but is not limited to, the name of the
processor, the container manufacturers and other potential purchasers
contacted, a detailed accounting of the methods used to contact the
potential buyers, the date of the rejections, the reasons given for
the rejections, the amount of postfilled beverage container material
rejected, and any other steps taken to avert landfilling or disposal
of the material.
   (d) If a container manufacturer rejects a load of postfilled
containers by telephone, written correspondence of any kind, or other
similar method, the container manufacturer shall, in a manner
prescribed by the department, keep accurate logbooks of the offer of
loads by the certified processor, and make that logbook available for
inspection by the department upon demand.  The logbook shall
contain, but is not limited to, the same information required in the
rejection form pursuant to subdivision (a).
   (e) The standardized rejection form specified in subdivision (a)
shall be submitted to the department by the certified processor with
the written request to dispose of the redeemed material submitted
pursuant to Section 14552.51.  This material shall not be disposed of
without a written authorization to do so by the department pursuant
to Section 14552.51.
   (f) Nothing in this section shall be interpreted to lessen
certified processors' and container manufacturers' responsibilities
relating to beverage container recycling, or diminish in any way the
department's authority to carry out the intent and goals of this
division.


14552.51.  (a) A certified processor seeking to dispose of rejected
postfilled containers may not dispose of rejected postfilled
containers unless the certified processor first submits to the
department, in writing, a request to dispose of the rejected
material.  No certified processor shall dispose of the rejected
material prior to obtaining written permission from the department.
If the department fails to respond to a written request to dispose of
rejected postfilled beverage container materials within 10 days of
receipt of the request, the processor's request for disposal is
deemed approved by the department.
   (b) All rejected loads of postfilled containers shall be available
and subject to inspection by the department.
   (c) All possible steps to avert the disposal of the loads of
postfilled containers, as determined by the department, shall be
taken by all container manufacturers and processors.  All
transactions or attempted transactions involving rejecting postfilled
containers shall be thoroughly documented on the standardized
rejection form pursuant to Section 14552.5.  The container
manufacturer and the certified processor are jointly and severally
responsible for this effort.


14553.  (a) All reports, claims, and other information required
pursuant to this division and submitted to the department shall be
complete, legible, and accurate, as determined by the department by
regulation, and shall be signed, by an officer, director, managing
employee, or owner of the certified recycling center, processor,
distributor, beverage manufacturer, container manufacturer, or other
entity.
   (b) The department may inspect the operations, processes, and
records of any entity required to submit a report to the department
pursuant to this division to determine the accuracy of the report and
compliance with the requirements of this division.
   (c) A violation of this section is subject to the penalties
specified in Section 14591.1.


14554.  The department shall establish procedures to protect any
privileged, confidential, commercial, or financial information
obtained while collecting information for carrying out the
requirements of this division.  Any privileged, confidential,
commercial, or financial information obtained in confidence by the
department is not a public record for purposes of Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1 of the
Government Code.


14555.  (a) On or before January 1, 2004, the department shall
submit to the Legislature a report regarding beverage container
recycling in California's public elementary, middle, and high
schools.
   (b) The report shall include, but not be limited to, all of the
following:
   (1) A description of department public outreach efforts in
schools.
   (2) A description of local conservation corps recycling activities
in the schools.
   (3) A description of school-based recycling programs sponsored by
certified recycling operations.
   (4) A description of any additional school-based beverage
container recycling efforts.
   (c) The report may include recommendations of additional policies
or programs that may increase beverage container recycling in
schools.
   (d) The department shall complete the report using existing
resources.
        

14560.  (a) (1) Except as provided in paragraph (3), a beverage
distributor shall pay the department, for deposit into the fund, a
redemption payment of four cents ($0.04) for a beverage container
sold or offered for sale in this state by the distributor.
   (2) A beverage container with a capacity of 24 fluid ounces or
more shall be considered as two beverage containers for purposes of
redemption payments paid pursuant to paragraph (1).
   (3) On and after July 1, 2007, the amount of the redemption
payment and refund value for a beverage container with a capacity of
less than 24 fluid ounces sold or offered for sale in this state by a
dealer shall equal five cents ($0.05) and the amount of redemption
payment and refund value for a beverage container with a capacity of
24 fluid ounces or more shall be ten cents ($0.10), if the aggregate
recycling rate reported pursuant to Section 14551 for all beverage
containers subject to this division is less than 75 percent for the
12-month reporting period from January 1, 2006, to December 31, 2006,
or for any calendar year thereafter.
   (b) Except as provided in subdivision (c), a beverage container
sold or offered for sale in this state has a refund value of four
cents ($0.04) if the beverage container has a capacity of less than
24 fluid ounces and eight cents ($0.08) if the beverage container has
a capacity of 24 fluid ounces or more.
   (c) Notwithstanding subdivision (b), the department may, on and
after January 1, 2007, but not after July 1, 2007, increase the
amount of the refund value specified in subdivision (b), by no more
than one cent ($0.01), if the container has a capacity of less than
24 fluid ounces, and by two cents ($0.02) if the container has a
capacity of 24 fluid ounces or more, if the department determines, as
specified in subdivision (f) of Section 14581, there are sufficient
moneys remaining in the fund to make these increased payments.
   (d) (1) The department shall periodically review the fund to
ensure that there are adequate funds in the fund to pay refund values
and other disbursements required by this division.
   (2) If the department determines, pursuant to a review made
pursuant to paragraph (1), that there may be inadequate funds to pay
the refund values and necessary disbursements required by this
division, the department shall immediately notify the Legislature of
the need for urgent legislative action.
   (3) On or before 180 days after the notice is sent pursuant to
paragraph (2), the department may reduce or eliminate expenditures,
or both, from the fund as necessary, according to the procedure set
forth in Section 14581, to ensure that there are adequate funds in
the fund to pay the refund values and other disbursements required by
this division.
   (e) This section does not apply to a refillable beverage
container.
   (f) The repeal and reenactment of this section by Chapter 815 of
the Statutes of 1999 do not affect any obligations or penalties
imposed by this section, as it read on January 1, 1999.




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.


14561.  (a) A beverage manufacturer shall clearly indicate on all
beverage containers  sold or offered for sale by that beverage
manufacturer in this state the message "CA Redemption Value,"
"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.
   (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 a 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) A 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) Until July 1, 2004, a beverage manufacturer may continue to
sell or offer for sale beverage containers bearing any redemption
value message permitted by this division as of January 1, 2003.


14562.  The Legislature hereby finds and declares that the minimum
redemption payment established by this article is a regulatory fee
collected for the purpose of assuring the return for recycling of a
greater percentage of the beverage containers sold in this state, and
is beneficial to the beverage industry by assuring the more reliable
availability of raw materials.  Accordingly, the payments of
redemption payments to the department for deposit in the California
Beverage Container Recycling Fund are not the "proceeds of taxes," as
that term is used in subdivision (c) of Section 8 of Article XIII B
of the California Constitution, and the disbursement or encumbrance
of money in the fund is not subject to the limitations imposed by
that article.

14570.  Every dealer shall post a clear and conspicuous sign of at
least 10 inches by 15 inches at each public entrance to the dealer's
place of business, which specifies one of the following:
   (a) The name and address, as provided by the department, of at
least the certified recycling center, location, or locations, nearest
to the dealer, which redeems all types of empty beverage containers
at one location during at least 30 hours per week with a minimum of
five hours of operation occurring during periods other than from
Monday to Friday, from 9 a.m. to 5 p.m., and the toll-free telephone
number established by the department for the purpose of disseminating
information regarding beverage container recycling opportunities.
   (b) One of the following procedures for redeeming beverage
containers is available, pursuant to Section 14571.6:
   (1) Beverage containers may be redeemed at all open cash registers
within this place of business.
   (2) Beverage containers may be redeemed at one specific location
on the dealer's premises which is identified on the sign.



14571.  (a) Except as otherwise provided in this chapter, there
shall be at least one certified recycling center or location within
every convenience zone which accepts and pays the refund value, if
any, at one location for all types of empty beverage containers and
is open for business during at least 30 hours per week with a minimum
of five hours of operation occurring during periods other than from
Monday to Friday, from 9 a.m. to 5 p.m.
   (b) (1) Notwithstanding subdivision (a), the department may
require a certified recycling center to operate 15 of its 30 hours of
operation other than during 9 a.m. to 5 p.m.
   (2) Notwithstanding subdivision (a) and paragraph (1), the
department may certify a recycling center that will operate less than
30 hours per week, if all of the following conditions are met:
   (A) The recycling center is in a rural region.  For purposes of
this subparagraph, "rural region" means a nonurban area identified by
the department on an annual basis using Farmers Home Loan
Administration criteria.  Those criteria include, but are not limited
to, places, open country, cities, towns, or census designated places
with populations that are less than 10,000 persons.  The department
may designate an area with a population of between 10,000 and 50,000
persons as a rural region, unless the area is identified as part of,
or associated with, an urban area, as determined by the department on
an individual basis.
   (B) The recycling center agrees to post a sign indicating the
location of the nearest recycling center which is open at least 30
hours per week and which will accept all material types.
   (C) The needs of the community and the goals of this division will
be best served by certification of the operation as a recycling
center.
   (c) Before establishing operating hours for a certified recycling
center pursuant to subdivision (b), the department shall make a
determination that this action is necessary to further the goals of
this division and that the proposed operating hours will not
significantly decrease the ability of consumers to conveniently
return beverage containers for the refund value to a certified
recycling center redeeming all material types.
   (d) For purposes of this section, if the recycling center is
staffed and is not a reverse vending machine, a center is "open for
business" if all of the following requirements are met:
   (1) An employee of the certified recycling center or location is
present during the hours of operation and available to the public to
accept containers and to pay the refund values.
   (2) In addition to the sign specified in subdivision (h), a sign
having a minimum size of two feet by two feet is posted at the
certified recycling center or location indicating that the center or
location is open.  Where allowed by local zoning requirements or
where zoning restrictions apply, the sign shall be of the maximum
allowable size.
   (3) The prices paid, by weight or per container, are posted at the
location.
   (e) Except as provided in subdivision (f), for the purpose of this
section, if the recycling center consists of reverse vending
machines or other unmanned automated equipment, the center is "open
for business" if the equipment is properly functioning, accepting all
types of empty beverage containers at the recycling location, and
paying posted refund values no less than the minimums required by
this division.
   (f) If a recycling center consists of reverse vending machines or
other automated equipment, the recycling center is "open for business"
if the equipment is properly functioning, and accepting all types of
empty beverage containers at one physical recycling location within
the recycling location.
   (g) Whenever a recycling center which is a reverse vending machine
is not "open for business" during the 30 hours of operation required
and posted pursuant to this section and Section 14570, the dealer
which is hosting the reverse vending machine at its place of business
shall redeem all empty beverage container types at all open cash
registers or one designated location in the store, as specified on
the sign required pursuant to subdivision (h).
   (h) In addition to the sign specified in paragraph (2) of
subdivision (d), each reverse vending machine shall be posted with a
clear and conspicuous sign on or near the reverse vending machine
which states that beverage containers may be redeemed by the host
dealer if the machine is nonoperational at any time during the
required 30 hours of operation, pursuant to subdivision (g).  The
department shall determine the size and location of the sign and the
message required to be printed on the sign.


14571.1.  On or before February 1, 1990, and on or before January 1,
annually thereafter, the department shall, on a statewide basis,
designate all convenience zones as of that date, including
convenience zones in underserved areas, and shall prepare a map or
maps showing these convenience zones.


14571.2.  The department shall continuously assist dealers and
recyclers to establish certified recycling locations within each
convenience zone.  This assistance includes, but is not limited to,
providing information to companies and organizations interested in
operating recycling in the convenience zone; providing dealers with
names of prospective recyclers for the convenience zone and providing
recyclers with the names of dealers in need of a recycler for a
convenience zone; providing dealers and recyclers with information on
grants, advertising funds, and other resources available; and
providing recyclers with advice regarding appearance and image of the
recycling center and the efficient handling and transportation of
recycled beverage containers.


14571.3.  (a) The department shall continuously assist any certified
recycler to achieve greater service to the public in an economical
and cost-effective manner.  This assistance shall include, but not be
limited to, advice on all of the following:
   (1) Methods to enhance public participation in recycling.
   (2) The most beneficial location, siting, and image of a recycling
location.
   (3) Methods to reduce costs and optimize efficiencies of existing
resources.
   (b) The department shall conduct regular, unannounced inspections
of certified recycling centers for the purpose of determining that
the requirements of this division are satisfied.  The department
shall assess civil penalties pursuant to Section 14591.1 for
violations at certified recycling centers.


14571.4.  (a) (1) The department shall certify one operator to
establish the Pacific Beach Mobile Recycling Program that
incorporates all convenience zones in the Pacific Beach area of San
Diego County.
   (2) For the purposes of this section, "the Pacific Beach area of
San Diego County" means the area designated in the Pacific Beach
Community Plan.
   (b) Notwithstanding Sections 14570 and 14571, all convenience
zones within the Pacific Beach area of San Diego County shall be
considered served if both of the following conditions are met:
   (1) The recycling center operator meets all of the following
conditions:
   (A) The center is open for business at least once each week at a
number of locations equal to the number of convenience zones in the
Pacific Beach area of San Diego County as determined by the
department annually, three of which are within existing convenience
zones in the Pacific Beach area of San Diego County.
   (B) The center is open for business at least eight hours per day
at each location.
   (C) The center agrees to accept, and pay the refund value for, all
eligible beverage container types.
   (D) The center is certified by the department for operation in the
number of locations equal to the number of convenience zones in the
Pacific Beach area of San Diego County, as determined by the
department.
   (2) All dealers within the Pacific Beach area of San Diego County
post a clear and conspicuous sign of at least 10 inches by 15 inches
at each public entrance to the dealer's place of business, indicating
the location, hours, and day of operation for each recycling
location within the Pacific Beach area.
   (c) A recycling center operator approved by the department, that
meets the conditions prescribed in paragraphs (1) and (2) of
subdivision (b), shall be designated a certified recycling center and
shall be eligible to apply for handling fees pursuant to Section
14585 and to receive from processors the amounts specified in
subdivision (a) of Section 14573.5 for refund values, administrative
costs, and processing payments.
   (d) If the department determines that it is necessary to adopt or
revise regulations to implement this section, the regulations shall
be adopted or revised as emergency regulations.  The Office of
Administrative Law shall consider these emergency regulations to be
necessary for the immediate preservation of the public peace, health,
and safety, and the general welfare for the purposes of Section
11349.6 of the Government Code.  Notwithstanding the 120-day period
provided for in subdivision (e) of Section 11346.1 of the Government
Code, the emergency regulations shall be repealed 180 days from the
effective date of the regulations.


14571.5.  The department may, in a rural region, as identified
pursuant to subparagraph (A) of paragraph (2) of subdivision (b) of
Section 14571, upon petition by an interested person, do either of
the following:
   (a) (1) Increase a convenience zone to include the area within a
three-mile radius of a supermarket, if the expanded convenience zone
would then be served by a single existing certified recycling center
or location.
   (2) This subdivision applies only to a convenience zone that is
otherwise not being served by a certified recycling center or
location meeting the requirements of Section 14571 or is exempted by
the department pursuant to Section 14571.8.
   (b) (1) Designate a convenience zone pursuant to Section 14571.1
in an area where there is no supermarket, but with two or more
dealers located within a one-mile radius of each other, and that
meets all of the following criteria:
   (A) The dealers in that area have combined gross annual sales of
two million dollars ($2,000,000) or more, as certified by the
petitioner in an affidavit filed with the petition.
   (B) The convenience zone encompasses a three-mile radius, with the
center of the zone established at the dealer, located closest to the
existing recycling center specified in subparagraph (D).
   (C) The convenience zone does not overlap any other existing
convenience zone.
   (D) The convenience zone is served by a single existing certified
recycling center.
   (2) The department shall identify the dealer locations only for
the purpose of providing a reference point in the establishment of
the convenience zone pursuant to this subdivision.
   (3) If the existing recycling location in a convenience zone
designated pursuant to this subdivision ceases operations, the
convenience zone shall also cease to exist until a new recycling
location is established, and the department is petitioned by an
interested person to designate a convenience zone.


14571.6.  In any convenience zone where no recycling location has
been established which satisfies the requirements of Section 14571,
and in any convenience zone which has exceeded the 60-day period for
the establishment of a recycling center pursuant to Section 14571.7,
all dealers within that zone shall, until a recycling location has
been established in that zone, do one of the following:
   (a) Submit to the department an affidavit form provided by the
department stating that all of the following standards are being met
by the dealer:
   (1) The dealer redeems all empty beverage container types at all
open cash registers or one designated location on the dealer's
premises, during all hours that the dealer is open for business.
   (2) The dealer has posted signs which meet the size and location
requirements specified in subdivision (b) of Section 14570, and which
conform to paragraph (2) of that subdivision.
   (3) The dealer is delivering, or having delivered, all empty
beverage containers received from the public to a certified recycling
center or processor for recycling.
   (b) Pay to the department for deposit in the fund the sum of one
hundred dollars ($100) per day until a recycling location is
established or until the standards for redemption specified in
subdivision (a) are met.


14571.7.  (a) Except as provided in subdivision (b), in any
convenience zone where a recycling location or locations were
initially established, but where the location or locations cease to
operate in accordance with Section 14571, on or before August 1,
1990, and in any convenience zone designated after January 1, 1990,
the department shall notify all dealers within that convenience zone
that a recycling location is required to be established within 60
days.  If, within 30 days of the notification, no recycling location
has been established which satisfies the requirements of Section
14571, the department shall notify all dealers within that zone, and
one or more dealers within that zone shall establish, or cause to be
established, a recycling location.
   (b) In any convenience zone where a recycling location or
locations were initially established, but where the location or
locations cease to operate in accordance with Section 14571, on or
after August 1, 1990, or the convenience zone is to be established
after October 1, 1990, the department shall determine, pursuant to
Section 14571.8, if the convenience zone is eligible for an
exemption.  If the convenience zone meets all of the requirements for
an exemption pursuant to Section 14571.8, the department shall grant
one exemption.  If the department determines that a convenience zone
is not eligible for an exemption pursuant to subdivision (a) and
Section 14571.8, the department shall notify all dealers  within that
convenience zone that a recycling location is required to be
established within 60 days.  If, within 30 days of the notification,
no recycling location has been established which satisfies the
requirements of Section 14571, the department shall notify all
dealers within that zone, and one or more dealers within that zone
shall establish, or cause to be established, a recycling location.


14571.8.  (a) No lease entered into by a dealer after January 1,
1987, may contain a leasehold restriction that prohibits or results
in the prohibition of the establishment of a recycling location.
   (b) The director may grant an exemption from the requirements of
Section 14571 for an individual convenience zone only after the
department solicits public testimony on whether or not to provide an
exemption from Section 14571.  The solicitation process shall be
designed by the department to ensure that operators of recycling
centers, dealers, and members of the public in the jurisdiction
affected by the proposed exemption are aware of the proposed
exemption.  After evaluation of the testimony and any field review
conducted, the department shall base a decision to exempt a
convenience zone on one, or any combination, of the following
factors:
   (1) The exemption will not significantly decrease the ability of
consumers to conveniently return beverage containers for the refund
value to a certified recycling center redeeming all material types.
   (2) Except as provided in paragraph (5), the nearest certified
recycling center is within a reasonable distance of the convenience
zone being considered from exemption.
   (3) The convenience zone is in the area of a curbside recycling
program that meets the criteria specified in Section 14509.5.
   (4) The requirements of Section 14571 cannot be met in a
particular convenience zone due to local zoning or the dealer's
leasehold restrictions for leases in effect on January 1, 1987, and
the local zoning or leasehold restrictions are not within the
authority of the department and the dealer.  However, any lease
executed after January 1, 1987, shall meet the requirements specified
in subdivision (a).
   (5) The convenience zone has redeemed less than 60,000 containers
per month for the prior 12 months and, notwithstanding paragraph (2),
a certified recycling center is located within one mile of the
convenience zone that is the subject of the exemption.
   (c) The department shall review each convenience zone in which a
certified recycling center was not located on January 1, 1996, to
determine the eligibility of the convenience zone under the exemption
criteria specified in subdivision (b).
   (d) The total number of exemptions granted by the director under
this section shall not exceed 35 percent of the total number of
convenience zones identified pursuant to this section.
   (e) The department may, on its own motion, or upon petition by any
interested person, revoke a convenience zone exemption if either of
the following occurs:
   (1) The condition or conditions that caused the convenience zone
to be exempt no longer exists, and the department determines that the
criteria for an exemption specified in this section are not
presently applicable to the convenience zone.
   (2) The department determines that the convenience zone exemption
was granted due to an administrative error.
   (f) If an exemption is revoked and a recycling center is not
certified and operational in the convenience zone, the department
shall, within 10 days of the date of the decision to revoke, serve
all dealers in the convenience zone with the notice specified in
subdivision (a) of Section 14571.7.
   (g) An exemption shall not be revoked when a recycling center
becomes certified and operational within an exempt convenience zone
unless either of the events specified in paragraphs (1) and (2) of
subdivision  (e) occurs.


14572.  (a) Except as provided in subdivision (b), a certified
recycling center shall accept from any consumer or dropoff or
collection program any empty beverage container, and shall pay to the
consumer or dropoff or collection program the refund value of the
beverage container.  The center may pay the refund value based on the
weight of returned containers.
   (b) Any recycling center or processor which was in existence on
January 1, 1986, and which refused, as of January 1, 1986, to accept
at a particular location a certain type of empty beverage container
may continue to refuse to accept at the location the type or types of
empty beverage containers that the recycling center or processor
refused to accept as of January 1, 1986.  Any certified recycling
center which refuses, pursuant to this subdivision, to accept a
certain type or types of empty beverage containers is not eligible to
receive handling fees unless the center agrees to accept all types
of empty beverage containers and is a supermarket site.  This
subdivision does not preclude the certified recycling center from
receiving a handling fee for beverage containers redeemed at
supermarket sites which do accept all types of containers.
   (c) The department shall develop procedures by which recycling
centers and processors which meet the criteria of subdivision (b) may
recertify to change the material types accepted.
   (d) (1) Only a certified recycling center may pay the refund value
to consumers or dropoff or collection programs.  No person shall pay
a noncertified recycler for empty beverage containers an amount
which exceeds the current scrap value for each container type, which
shall be determined in the following manner:
   (A) For a plastic or glass beverage container, the current scrap
value shall be determined by the department.
   (B) For an aluminum beverage container, the current scrap value
shall be not greater than the amount paid to the processor for that
aluminum beverage container, on the date the container was purchased,
by t