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<ns0:Description>
<ns0:Id>20250SB__095599INT</ns0:Id>
<ns0:VersionNum>99</ns0:VersionNum>
<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-02</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>SB</ns0:MeasureType>
<ns0:MeasureNum>955</ns0:MeasureNum>
<ns0:MeasureState>INT</ns0:MeasureState>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Blakespear</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Blakespear</ns0:Name>
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<ns0:Title> An act to amend Sections 14526.5, 14578.5, and 14585 of, and to add Section 14571.6 to, the Public Resources Code, relating to recycling, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately. </ns0:Title>
<ns0:RelatingClause>recycling, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Beverage containers: supermarkets: reverse vending machines.</ns0:Subject>
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<ns0:DigestText>
<html:p>The California Beverage Container Recycling and Litter Reduction Act requires the Department of Resources Recycling and Recovery to designate convenience zones annually and to ensure that at least one certified recycling center that meets specific requirements is located within each convenience zone. The act defines “convenience zone” as the area within a one-mile radius of a supermarket, and defines “supermarket” as a full-line, self-service retail store with gross annual sales of $2,000,000 or more, and that sells specified items and some perishable items. The act establishes the California Beverage Container Recycling Fund, and continuously appropriates moneys in the fund to the department for specified purposes, including the amount necessary to pay processing payments to recycling centers and to pay handling fees to certain types of recyclers to provide an incentive for the redemption
of empty beverage containers in convenience zones. Under the act, a reverse vending machine, as defined, may be certified as a recycling center, as prescribed. The act prohibits processing payments, handling fees, and administrative fees for dealer cooperatives if a certified recycling center operates in a convenience zone where a dealer participating in the dealer cooperative is located. A violation of the act is an infraction.</html:p>
<html:p>This bill, for the purpose of defining a “supermarket,” would increase the minimum gross annual sales to $5,000,000 and revise the description of items for sale. The bill would specify that a reverse vending machine certified to operate as a recycling center does not make an unserved convenience zone served. The bill would specify that a dealer cooperative or a mobile unit is not precluded from operating and receiving program payments in the same convenience zone as a reverse vending machine. The bill would specify that an existing certified
recycling center is not ineligible for handling fees if a reverse vending machine is located in the same convenience zone. The bill would specify that a reverse vending machine is not ineligible for handling fees because another recycling center becomes certified to operate in the convenience zone in which the reverse vending machine is already certified.</html:p>
<html:p>The bill would make an appropriation by expanding the entities that would be eligible at any given time for program payments paid by the department from the continuously appropriated fund.</html:p>
<html:p>By adding new requirements to the act, this bill would expand the scope of a crime, thereby imposing a state-mandated local program. </html:p>
<html:p>The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that
reimbursement.</html:p>
<html:p>This bill would provide that no reimbursement is required by this act for a specified reason.</html:p>
<html:p>This bill would declare that it is to take effect immediately as an urgency statute.</html:p>
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<ns0:DigestKey>
<ns0:VoteRequired>TWO_THIRDS</ns0:VoteRequired>
<ns0:Appropriation>YES</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>YES</ns0:LocalProgram>
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<ns0:ImmediateEffect>YES</ns0:ImmediateEffect>
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<ns0:Urgency>YES</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
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<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_9CF9BF67-B26A-42B5-8F1F-3687E7D8E78E">
<ns0:Num>SECTION 1.</ns0:Num>
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Section 14526.5 of the
<ns0:DocName>Public Resources Code</ns0:DocName>
is amended to read:
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<ns0:Num>14526.5.</ns0:Num>
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<ns0:Content>
<html:p>“Supermarket” means a full-line, self-service retail store with gross annual sales of five million dollars ($5,000,000), or more, and which sells a line of dry
groceries, canned goods,
alcoholic or nonalcoholic beverages, nonfood items, or some perishable items, regardless of whether the retail store operates a bakery or a deli.</html:p>
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<ns0:BillSection id="id_E9A39BBF-8508-4731-9E9F-259BCC9C594F">
<ns0:Num>SEC. 2.</ns0:Num>
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Section 14571.6 is added to the
<ns0:DocName>Public Resources Code</ns0:DocName>
, to read:
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<ns0:Fragment>
<ns0:LawSection id="id_3676D52D-563B-4DCF-BC5B-7C5A02D3D291">
<ns0:Num>14571.6.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
Notwithstanding any other law or regulation, all of the following apply if a reverse vending machine is certified to operate as a recycling center:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The reverse vending machine shall not make an unserved convenience zone served, as described in subdivision (a) of Section 14571, regardless of the number of hours it operates. The reverse vending machine shall still be required to operate the minimum hours specified in Section 14571.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The operation of multiple reverse vending machines may be deemed by the department to serve an unserved convenience zone, as described in subdivision (a) of Section 14571, regardless of the number of hours it operates, if the operation of
multiple reverse vending machines is determined by the department to accept 100 percent of the beverage containers sold by dealers within that unserved zone.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
A reverse vending machine located in a convenience zone shall not preclude either of the following from operating and receiving program payments in the same convenience zone:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
A dealer cooperative under Chapter 6.5 (commencing with Section 14578).
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A mobile unit as defined in Chapter 5 (commencing with Section 2000) of Division 2 of Title 14 of the California Code of Regulations.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The reverse vending machine located in a convenience zone shall not make an existing recycling center certified in that convenience zone ineligible for handling fees pursuant to subdivision (c) of Section
14585.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
A reverse vending machine is not made ineligible for handling fees pursuant to subdivision (c) of Section 14585 because another recycling center becomes certified to operate in the convenience zone in which the reverse vending machine is already certified. The reverse vending machine is eligible for handling fees as otherwise specified in Section 14585.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
Except as provided in subdivision (a), a reverse vending machine that is certified as a recycling center remains subject to all laws and regulations applicable to recycling centers.
</html:p>
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<ns0:BillSection id="id_E8B454B9-7945-451D-8600-0C917F0A05AE">
<ns0:Num>SEC. 3.</ns0:Num>
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Section 14578.5 of the
<ns0:DocName>Public Resources Code</ns0:DocName>
is amended to read:
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<ns0:Num>14578.5.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
By January 1, 2024, the department may provide one or more model dealer cooperative redemption plans for dealer cooperatives to adopt to comply with paragraph (2) of subdivision (a) of Section 14578 and this section.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
By January 1, 2024, the department shall adopt emergency regulations that provide access and convenience for consumers that are comparable to subdivision (a) of Section 14571. The regulations shall include the registration process for dealers, the application and registration process for the dealer cooperative, and the process for updating information after registration as needed, and other regulations necessary for the implementation and enforcement of this subdivision.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Upon the expiration of the emergency regulations no more than 180 days after adoption, the department shall adopt regulations pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code to implement this section.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
A dealer cooperative shall do all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Submit a redemption plan to the department to provide redemption in one or more unserved convenience zones. Redemption programs shall include sufficient redemption opportunities for consumers that have comparable consumer convenience to the requirements of Section 14571 and include, but are not limited to, pilot projects described in Section 14571.9.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Assess fees on the dealers in the zone or zones covered by the redemption plan
necessary to cover operational costs and implementation of the approved plan.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Redeem all material types and offer one or more redemption locations within the dealer cooperative zone.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The dealer cooperative may contract to provide the redemption opportunities approved in the plan.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Be operational and fully implement the approved redemption plan.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Register as a dealer cooperative with the department.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
Provide reports as required by the department, which may include, but are not limited to, the amount of empty beverage containers, by material type and weight of container or material, redeemed in the past month and any other relevant information the
department requests in the form and manner that the department may prescribe.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Except as provided in subparagraph (A) of paragraph (3) of subdivision (a) of Section 14571.6, dealer cooperatives may be eligible for reimbursement of California Redemption Value funds paid to consumers, processing payments, handling fees, and administrative fees unless a certified recycling center operates in a convenience zone in which a dealer participating in the dealer cooperative is located.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
In order to receive payment from a processor, dealer cooperative redemption identification shall be verified.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The department may delay payments to a dealer cooperative for up to seven days until the verification of the received weight versus the actual redemption weight of beverage containers occurs.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
The department may revoke a dealer cooperative’s registration or the plan for failure to provide redemption for consumers.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
The department shall audit each cooperative at least once every 24 months to ensure that proper program payments are made to consumers and cooperative fees are being utilized for the operation of the approved redemption model.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
The department may assess civil penalties under Section 14591.1 for violations of this section.
</html:p>
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<ns0:BillSection id="id_3A3FD2B1-964E-4B18-AAA2-756DB62BF01E">
<ns0:Num>SEC. 4.</ns0:Num>
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Section 14585 of the
<ns0:DocName>Public Resources Code</ns0:DocName>
is amended to read:
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<ns0:Num>14585.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The department shall adopt guidelines and methods for paying handling fees to supermarket sites, nonprofit convenience zone recyclers, or rural region recyclers to provide an incentive for the redemption of empty beverage containers in convenience zones. The guidelines shall include, but not be limited to, all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Handling fees shall be paid on a monthly basis, in the form and manner adopted by the department. The department shall require that claims for the handling fee be filed with the department not later than the first day of the second month following the month for which the handling fee is claimed as a condition of receiving any handling fee.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The department shall
determine the number of eligible containers per site for which a handling fee will be paid in the following manner:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Each eligible site’s combined monthly volume of glass and plastic beverage containers shall be divided by the site’s total monthly volume of all empty beverage container types.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
If the quotient determined pursuant to subparagraph (A) is equal to, or more than, 10 percent, the total monthly volume of the site shall be the maximum volume that is eligible for a handling fee for that month.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
If the quotient determined pursuant to subparagraph (A) is less than 10 percent, the department shall divide the volume of glass and plastic beverage containers by 10 percent. That quotient shall be the maximum volume that is eligible for a handling fee for that month.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
On and after the effective date of the act amending this section during the 2023–24 Regular Session, and until June 30, 2026, the department shall pay a handling fee per eligible container in the amount determined pursuant to subdivisions (f) and (g).
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
On and after July 1, 2026, the department shall pay a handling fee per eligible container in the amount determined pursuant to subdivision (f).
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
If the eligible volume in any given month would result in handling fee payments that exceed the allocation of funds for that month, as provided in subdivision (b), sites with higher eligible monthly volumes shall receive handling fees for their entire eligible monthly volume before sites with lower eligible monthly volumes receive any handling fees.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
If a dealer where a supermarket site, nonprofit convenience zone recycler, or rural region recycler is located ceases operation for remodeling or for a change of ownership, the operator of that supermarket site, nonprofit convenience zone recycler, or rural region recycler shall be eligible to apply for handling fees for that site for a period of three months following the date of the closure of the dealer.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Every supermarket site operator, nonprofit convenience zone recycler, or rural region recycler shall promptly notify the department of the closure of the dealer where the supermarket site, nonprofit convenience zone recycler, or rural region recycler is located.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Notwithstanding subparagraph (A), any operator who fails to provide notification to the department pursuant to
subparagraph (B) shall not be eligible to apply for handling fees.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The department may allocate the amount authorized for expenditure for the payment of handling fees pursuant to paragraph (1) of subdivision (a) of Section 14581 on a monthly basis and may carry over any unexpended monthly allocation to a subsequent month or months. However, unexpended monthly allocations shall not be carried over to a subsequent fiscal year for the purpose of paying handling fees but may be carried over for any other purpose pursuant to Section 14581.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
Except as provided in Section 14571.6, all of the following apply to the
payment of handling fees:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The department shall not make handling fee payments to more than one certified recycling center in a convenience zone. If a dealer is located in more than one convenience zone, the department shall offer a single handling fee payment to a supermarket site located at that dealer. This handling fee payment shall not be split between the affected zones. The department shall stop making handling fee payments if another recycling center certifies to operate within the convenience zone without receiving payments pursuant to this section, if the department monitors the performance of the other recycling center for 60 days and determines that the recycling center is in compliance with this division. Any recycling
center that locates in a convenience zone, thereby causing a preexisting recycling center to become ineligible to receive handling fee payments, is ineligible to receive any handling fee payments in that convenience zone.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The department shall offer a single handling fee payment to a rural region recycler located anywhere inside a convenience zone, if that convenience zone is not served by another certified recycling center and the rural region recycler does either of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Operates a minimum of 30 hours per week in one convenience zone.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Serves two or more convenience zones, and meets all of the following criteria:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
Is the only certified recycler within each convenience zone.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Is open and operating at least eight hours per week in each convenience zone and is certified at each location.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
Operates at least 30 hours per week in total for all convenience zones served.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
The department may require an operator of a supermarket site, or an operator of a rural region recycler, receiving handling fees to maintain records for each location where beverage containers are redeemed, and may require the supermarket site or rural region recycler to take any other action necessary for the department to determine that the supermarket site or rural region recycler does not receive an excessive handling fee.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
The department may determine and use a standard container per pound rate, for each material type, for purposes of calculating volumes and making handling fee payments.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
On or before January 1, 2008, and every two years thereafter, the department shall conduct a survey pursuant to this subdivision of a statistically significant sample of handling fee payment recipients to determine the actual cost incurred for the redemption of empty beverage containers by those handling fee payment recipients. The department shall conduct these cost surveys in conjunction with the cost surveys performed by the department pursuant to subdivision (b) of Section 14575 to determine processing payments and processing fees. The department shall include, in determining the actual costs, only those allowable costs contained in the regulations adopted pursuant to this division that are used by the department to conduct cost surveys pursuant to subdivision (b) of Section 14575.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Using the information obtained pursuant to paragraph (1), the
department shall then determine the statewide weighted average cost incurred for the redemption of empty beverage containers, per empty beverage container, by handling fee payment recipients.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Except as provided in subdivision (g), the department shall determine the amount of the handling fee to be paid for each empty beverage container as follows:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Until June 30, 2027, and except as provided in subparagraph (B), the amount shall be determined using a methodology established by the department reflecting the cost of providing and maintaining recycling in convenience zones by handling fee recipients, including transportation, labor, volume, consumer convenience, and increasing recycling rates. The methodology may include tiered handling fee rates reflecting differing costs within convenience zones or regions based on respective volume or location. This subparagraph shall
become inoperative on July 1, 2027.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
On and after June 30, 2026, and if the department has not established a method pursuant to subparagraph (A), the amount shall be determined by subtracting the amount of the statewide weighted average cost per container to redeem empty beverage containers by handling fee payment recipients that do not receive handling fees from the amount of the statewide weighted average cost per container determined pursuant to paragraph (2).
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
The department shall adjust the statewide average cost determined pursuant to paragraph (2) for each beverage container annually to reflect changes in the cost of living, as measured by the Bureau of Labor Statistics of the United States Department of Labor or a successor agency of the United States government.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
The cost information collected
pursuant to this section for handling fee payment recipients shall not be used in the calculation of the processing payments determined pursuant to Section 14575.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
On and after the effective date of the act amending this section during the 2023–24 Regular Session, and until June 30, 2026, the per-container handling fee shall not be less than the amount of the per-container handling fee that was in effect on July 1, 2023. If the effective date of the act amending this section during the 2023–24 Regular Session is after July 1, 2024, the department shall pay eligible handling fee payment recipients the difference between the handling fee in effect on July 1, 2024, and the handling fee that was in effect on July 1, 2023, so that the per-container handling fee for the 2025–26 fiscal year is no less than the handling fee that was in effect on July 1, 2023.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The department shall adjust the handling fee established by this subdivision annually to reflect changes in the cost of living, as measured by the Bureau of Labor Statistics of the United States Department of Labor or a successor agency of the United States government.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
(1)
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The department shall adopt emergency regulations that establish the methodology described in subparagraph (A) of paragraph (3) of subdivision (f) and to establish a handling fee calculated pursuant to the methodology. The regulations shall take effect no later than July 1, 2026.
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(2)
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Until June 30, 2027, the adoption of regulations described in paragraph (1) shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare for purposes of Sections 11346.1 and 11349.6 of the Government Code, and the
department is hereby exempted from the requirement that it describe facts showing the need for immediate action. Notwithstanding Section 11346.1 of the Government Code, the emergency regulations adopted pursuant to this subdivision shall remain in effect through June 30, 2027.
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<ns0:BillSection id="id_8FBB082E-6882-40EB-8558-F14BA60753DB">
<ns0:Num>SEC. 5.</ns0:Num>
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No reimbursement is required by this act pursuant to Section 6 of Article XIII
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B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII
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B of the California Constitution.
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<ns0:BillSection id="id_4A81FBD0-4ED2-4793-B33E-F7164982D4BC">
<ns0:Num>SEC. 6.</ns0:Num>
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<html:p>This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:</html:p>
<html:p>In order to remove barriers to the implementation of Senate Bill 1013 of the 2021–22 Regular Session to provide beverage container redemption services to consumers throughout the State of California where there is a lack of redemption infrastructure, it is necessary that this bill go into immediate effect.</html:p>
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