Amended IN Senate April 07, 2025 Amended IN Senate March 24, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 501Introduced by Senator AllenFebruary 19, 2025An act to add Article 10.8.5 (commencing with Section 25218.50) to Chapter 6.5 of Division 20 of the Health and Safety Code, relating to hazardous materials. LEGISLATIVE COUNSEL'S DIGESTSB 501, as amended, Allen. Household Hazardous Waste Producer Responsibility Act.(1) Under existing law, as part of the hazardous waste control laws, the Department of Toxic Substances Control (DTSC) generally regulates the management and handling of hazardous waste and hazardous materials. Existing law authorizes a public agency, as defined, to operate a household hazardous waste collection facility under permit from DTSC.Existing law, the Plastic Pollution Prevention and Packaging Producer Responsibility Act, establishes a producer responsibility program designed to ensure that producers of single-use packaging and food service ware covered by that program take responsibility for the costs associated with the end-of-life management of that material and ensure that the material is recyclable or compostable.This bill would create a producer responsibility program for products containing household hazardous waste and would require a producer responsibility organization (PRO) to ensure the safe and convenient collection and management of covered products at no cost to consumers or local governments. The bill would define covered product to mean a consumer product that is ignitable, toxic, corrosive, or reactive, or that meets other specified criteria. criteria, except as specified. The bill would require a producer of a covered product to register with the PRO, which would be required to develop and implement a producer responsibility plan for the collection, transportation, and the safe and proper management of covered products. The bill would require DTSC to adopt regulations to implement the program with an effective date no earlier than July 1, 2028. TheThis bill would require the PRO, within 12 months of the effective date of the regulations, to submit a producer responsibility plan to DTSC. The bill would require the plan to include specified elements, including a funding mechanism to fully fund the PRO and the program. The bill would require, within 6 months of receipt of the plan, DTSC to approve, approve in part, or disapprove the plan, as specified. The bill would require DTSC to notify the PRO of its decision. If DTSC does not approve the plan in full, then the bill would require DTSC to specify the reasons for disapproval or identify the portions of the partially approved plan that do not comply with the program, as applicable. The bill would require the PRO to submit a revised plan if its plan is not fully approved. The bill would conditionally approve a plan if DTSC does not approve, approve in part, or disapprove a plan within one year of receipt of the plan. TheThis bill would require the PRO to implement its plan within 90 days of approval. The bill would require the plan to be fully funded in a manner that equitably distributes the plans costs among participant producers, as specified. The bill would require the PRO to reimburse local jurisdictions for costs associated with collecting illegally dumped covered products and for providing a convenient collection system for covered products if the PROs plan relies on local jurisdictions to collect or manage covered products. TheThis bill would require the PRO to prepare and submit to DTSC an annual report describing the activities carried out pursuant to the plan. The bill would require the PRO to retain specified documents, annually audit its accounting books, and make documents available to DTSC for review, as specified. The bill would require all reports and records provided to DTSC pursuant to the program to be provided under penalty of perjury. By expanding the scope of a crime, the bill would impose a state-mandated local program. TheThis bill would require a participant producer, through the PRO, to pay DTSC, on an unspecified schedule, an annual administrative charge, as determined by DTSC. The bill would require the charge be set at an amount that is adequate to cover DTSCs full costs of administering and enforcing the program. The bill would provide for the imposition of administrative civil penalties on producers and other specified persons who violate the program. The bill would establish the Household Hazardous Waste Producer Responsibility Fund in the State Treasury and would require the administrative charges collected by DTSC to be deposited into that fund for expenditure by DTSC, upon appropriation by the Legislature, to cover DTSCs cost to implement the program. The bill would also establish the Household Hazardous Waste Products Penalty Account in the Household Hazardous Waste Producer Responsibility Fund and would require that the civil penalties collected by DTSC pursuant to the program be deposited into that account, for expenditure by DTSC, upon appropriation by the Legislature, for activities related to the collection, reuse, and recycling of covered products, grants for related purposes, and the administration and enforcement of the program.This bill would require the PRO to prepare an initial statewide needs assessment designed to determine the necessary steps and investments needed for covered products to achieve the requirements and purposes of the program, as specified. The bill would provide that certain actions of the PRO or a producer are not violations of the Cartwright Act or certain provisions regulating unfair business practices or unfair competition.(2) Existing law established the Department of Resources Recycling and Recovery (CalRecycle) to, among other things, promote waste management in the order of source reduction, then recycling and composting, and then environmentally safe transformation and environmentally safe land disposal, as provided. Pursuant to that authority, CalRecycle publishes various waste characterization studies.This bill would require CalRecycle, in support of the program, to include in updates to the applicable waste characterization study the amount of covered products that were properly and improperly disposed of, as specified.(3) Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.This bill would make legislative findings to that effect.(4) 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.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill TextThe people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) Thousands of household products that are sold in the state contain substances designated as hazardous under state or federal law.(b) Leftover household products, known as household hazardous waste, are regulated through a requirement that municipal solid waste management entities include provisions in solid waste implementation plans for the management and diversion of unregulated hazardous waste.(c) Californias hazardous waste laws and regulations establish specific requirements for the management of hazardous waste, including a prohibition on disposal in landfills.(d) The Department of Resources Recycling and Recovery has supported the construction of household hazardous waste facilities and management by offering household hazardous waste grants to local governments, and those grants are currently limited to $1,500,000 annually when a single facility, such as the one in progress in the County of Sonoma, will cost between $13,000,000 and $16,000,000.(e) California already has extended producer responsibility programs for some household hazardous waste products, including mercury thermostats, pharmaceuticals, sharps and needles, and paint products.(f) The Statewide Commission on Recycling Markets and Curbside Recycling convened from July 2020 to June 2022, and its first recommendation was to create a household hazardous waste extended producer responsibility program.(g) According to the Department of Toxic Substances Controls Hazardous Waste Management Report, released November 2023, The previous waste reduction efforts were discontinued because they did not produce reductions large enough to be seen as effective.(h) The cost of managing household hazardous waste for local government ratepayers is extremely high and yet proper disposal is still inconvenient for the public. Extended producer responsibility is used for a wide variety of household hazardous waste products in Canada and other countries for products like antifreeze, pesticides, flammables, radioactive smoke alarms, lighting, and others.(i) To reduce improper disposal of household hazardous waste, reduce the financial burden on local jurisdictions and taxpayers, reduce the cost of the overall system of managing household hazardous waste, improve the convenience of proper disposal to the public, and lessen the environmental and public health risks posed by improperly disposed household hazardous waste, the state shall implement a program to require the manufacturers of household hazardous waste products to create a producer responsibility organization to improve collection and to cover the costs of managing household hazardous waste. SEC. 2. Article 10.8.5 (commencing with Section 25218.50) is added to Chapter 6.5 of Division 20 of the Health and Safety Code, to read: Article 10.8.5. Household Hazardous Waste Producer Responsibility Act25218.50. (a) This article shall be known, and may be cited, as the Household Hazardous Waste Producer Responsibility Act.(b) The purpose of this article is to provide for the safe and proper management of household hazardous waste, which poses a threat to public health and safety, is costly for Californias local governments, and may cause significant damage to the environment when managed improperly.25218.51. For purposes of this article, the following definitions apply:(a) (1) Approved plan means a producer responsibility plan that has been approved by the department pursuant to Section 25218.55 and that has not been revoked by the department pursuant to Section 25218.68.(2) A conditionally approved plan is an approved plan, except as used in Section 25218.55.(3) A partially approved plan is not an approved plan.(b) Brand means a name, symbol, word, or mark that identifies a covered product rather than its components, and attributes the covered product to the owner or licensee of the brand as the producer.(c) Consumer means a purchaser, owner, or lessee of a covered product, including a person, business, corporation, limited partnership, nonprofit organization, or governmental entity.(d) Consumer product means a commodity that is intended for use for personal, family, or household purposes, or that is present in the same form, concentration, and quantity as a product prepackaged for distribution to a consumer for personal, family, or household purposes, and is handled at, and found in, a retail establishment and intended for direct sale to the end user.(e) Contact information means a name, physical address, mailing address, email address, and telephone number.(f) (1) Covered product means a consumer product that is one or more of the following:(A) A pesticide, as defined in Section 12753 of the Food and Agricultural Code.(B) An aerosol.(C) An oxidizer.(D) An adhesive, glue, cleaner, degreaser, or solvent, which adhesive or glue, which is ignitable, toxic, corrosive, or reactive.(E) A designated product, as defined in Section 108952, which is ignitable, toxic, or reactive.(E)A(F) An automotive product that is a lubricant, oil, antifreeze, cleaner, wax, or degreaser, which is an automotive product used for purposes of maintaining the function of a motor vehicle, as defined in Section 670 of the Vehicle Code.(F)(G) A compressed gas, including, but not limited to, propane, helium, and oxygen.(G)(H) A lithium battery.(H)(I) A product containing asbestos, mercury, or polychlorinated biphenyls.(I)(J) An electronic delivery system of a nicotine or non-nicotine aerosolized or vaporized solution to a person, including electronic cigarettes and vape pens.(J)(K) A product that is ignitable, toxic, corrosive, or reactive, that is added by the department via the assessment described in subdivision (d) of Section 25218.52, and that is not exempted.(2) Covered product does not include any of the following:(A) A product subject to another statewide stewardship or advanced disposal fee-based program for collection or management pursuant to state law.(B)A health and beauty product.(B) Cosmetics, drugs, or food.(C) Personal care items, including, but not limited to, hand soap, shampoo, or toothpaste.(C)(D) A product otherwise listed in paragraph (1) for which the producer demonstrates to the department that the product meets both of the following criteria:(i) The product is not ignitable, toxic, corrosive, or reactive.(ii) The product may safely be collected through a residential recycling collection service, residential organic waste collection, or residential solid waste collection.(D)(E) A parasiticide used to treat, or administered to, companion animals and that is regulated by the United States Environmental Protection Agency under the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. Sec. 136 et seq.).(F) A product subject to alternative management standards pursuant to Article 11.2 (commencing with Section 25230).(g) Department means the Department of Toxic Substances Control.(h) Importer means either of the following:(1) A person qualifying as an importer of record for purposes of Section 1484(a)(2)(B) of Title 19 of the United States Code with regard to the import of a covered product that is sold, distributed for sale, or offered for sale in or into the state that was manufactured or assembled by a company outside of the United States.(2) A person importing into the state for sale, distributing for sale, or offering for sale in the state a covered product that was manufactured or assembled by a company physically located outside of the state.(i) Participant producer means a producer that is registered with the producer responsibility organization.(j) (1) Producer means a person who manufactures a covered product and who sells, offers for sale, or distributes a covered product into the state under the persons own name or brand.(2) If there is no person in the state who is the producer for purposes of paragraph (1), the producer of the covered product is the owner or exclusive licensee of a brand under which the covered product is sold or distributed into the state. For purposes of this subdivision, an exclusive licensee is a person holding the exclusive right to use a brand in the state in connection with the manufacture, sale, or distribution for sale in or into the state of the covered product.(3) If there is no person in the state who is the producer for purposes of paragraph (1) or (2), the producer of the covered product is the person that imports the covered product into the state for sale, distribution, or installation.(4) If there is no person in the state who is the producer for purposes of paragraph (1), (2), or (3), the producer of the covered product is the distributor, retailer, dealer, or wholesaler who sells the product in or into the state.(5) For purposes of this article, the sale of a covered product shall be deemed to occur in the state if the covered product is delivered to the consumer in the state.(k) Producer responsibility organization means an organization that is exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986, is formed for the purpose of implementing a plan to meet the requirements of this article, and is approved by the department . department.(l) Producer responsibility plan means the plan developed by a producer responsibility organization for the collection, transportation, and the safe and proper management of covered products pursuant to this article and submitted to the department for approval pursuant to Section 25218.55.(m) Sell or sales has the same meaning as set forth in Section 6006 of the Revenue and Taxation Code.25218.52. (a) (1) Except as provided in Section 25218.55, the department shall adopt, amend, or repeal regulations to implement this article, in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The department shall not adopt regulations pursuant to this section with an effective date earlier than July 1, 2028.(2) As part of the regulations described in this section, the department shall establish a baseline amount of covered products improperly disposed of and shall measure progress towards meeting the performance-based standards in Section 25218.56.(b) On or before January 1, 2027, the department shall establish and post on its internet website a list of covered product categories.(c) On or before January 1, 2028, the department shall approve one, and only one, producer responsibility organization that meets the requirements of this article.(d) On or before January 1, 2032, and every five years after, the department may conduct an assessment to identify household hazardous waste that is not included in the producer responsibility plan and adjust the covered product categories, if needed, to achieve the purpose of this article. The department may select an independent third-party contractor to complete the assessment. The department shall make its determination and rationale available for public review. 25218.53. (a) No later than 90 days after the departments approval of the producer responsibility organization, pursuant to Section 25218.52, a producer shall register with the producer responsibility organization in accordance with the procedures and requirements established by the producer responsibility organization.(b) No later than 30 days after the effective date of the regulations described in Section 25218.52, a producer, or the producer responsibility organization on behalf of the producer, shall notify the department electronically that the producer has registered with the producer responsibility organization.(c) Upon approval of a producer responsibility plan pursuant to Section 25218.55, a producer shall not sell, offer for sale, import, or distribute a covered product in the state unless all of the following conditions are met:(1) The producer is registered with the producer responsibility organization.(2) The covered product is accounted for in the producer responsibility plan.(3) The department has approved the producer responsibility plan.(d) If an entity does not meet the definition of a producer and is not subject to this article but, at any point, meets the definition of a producer, that entity shall be deemed a producer at that point in time, and shall register with the producer responsibility organization and otherwise comply with the requirements of this article before beginning to sell, offer for sale, import, or distribute a covered product in the state.(e) (1) No later than 180 days after the effective date of the regulations described in Section 25218.52, a producer shall provide to the department, in a form and manner established by the department, both of the following:(A) The producers contact information.(B) A list of covered products and brands of covered products that the producer sells, distributes for sale, imports for sale, or offers for sale in or into the state.(2) A producer shall provide to the department updates to the information described in paragraph (1) on or before January 15 of each year, within 30 days of changes to the contact information or list, and upon the departments request. 25218.54. (a) The producer responsibility organization shall have a governing board consisting of participant producers that represent the diversity of covered products.(b) The producer responsibility organization shall notify the department within 30 calendar days of any of the following:(1) The end of a three-month period during which the producer responsibility organization unsuccessfully attempted to obtain a fee, records, or information from a participant producer.(2) The date that a producer no longer participates in the producer responsibility organizations approved plan.(3) Any instance of noncompliance by a participant producer. (c)The producer responsibility organization may conduct a needs assessment to determine appropriate strategies and investments needed to meet the requirements of this article.(c) The producer responsibility organization shall coordinate with a PRO, as that term is defined in Section 42041 of the Public Resources Code, to ensure that empty packaging and containers for covered products are properly collected and managed either pursuant to this chapter or pursuant to Chapter 3 (commencing with Section 42040) of Part 3 of Division 30 of the Public Resources Code.(d) (1) The producer responsibility organization shall prepare an initial statewide needs assessment designed to determine the necessary steps and investments needed for covered products to achieve the requirements and purposes of this article. The initial needs assessment for covered products shall be completed before the approval of any producer responsibility plan. The producer responsibility organization may select an independent third-party contractor to complete the statewide needs assessment.(2) The producer responsibility organization may prepare more than one needs assessment, with each assessment specific to one or more covered product categories subject to this article, or may prepare one comprehensive needs assessment that includes all covered products subject to this article.(3) The producer responsibility organization shall consult local jurisdictions and other key stakeholders when preparing the needs assessment.(4) The initial statewide needs assessment shall include all of the following:(A) An evaluation of the existing scope and amount of covered products, by covered product category and volume, that are improperly disposed of, properly disposed of through household hazardous waste facilities, and diverted, as applicable, through reuse or recycling, based on data from any existing waste characterization studies conducted by the Department of Resources Recycling and Recovery and including any other data the producer responsibility organization chooses to include.(B) An evaluation of the categories of covered product that contribute to the highest disposal costs.(C) The current reuse, recycling, collection, sorting, and hauling systems in the state and the expanded access and additional reuse, recycling, collection, sorting, and hauling options needed to meet the purposes of this article.(D) The current processes by which containers and packaging for covered products are handled under Chapter 3 (commencing with Section 42040) of Part 3 of Division 30 of the Public Resources Code.(E) Existing state statutory provisions and funding sources related to market development and financial incentives to help achieve the states goals related to reuse, recycling, collection, sorting, hauling, and disposal in state using best management practices.(F) Actions and investments necessary, including, but not limited to, incentive mechanisms, to achieve the purposes of this article.(G) Actions and investments needed to avoid contamination related to reuse and recycling.(H) Whether allowing more than one producer responsibility organization would be beneficial in meeting the requirements of the article.(I) An evaluation of the factors that will be important to successfully implement the malus fees and credits described in Section 25218.58.(J) An evaluation and establishment of appropriate interim targets for the reduction of improper disposal to achieve the purposes of this article.25218.55. (a) Within 12 months of the effective date of the regulations described in Section 25218.52, the producer responsibility organization shall develop and submit a proposed producer responsibility plan to the department, in a form and manner determined by the department.(b) Within six months of receipt of a proposed producer responsibility plan, the department shall approve, approve in part, or disapprove the producer responsibility plan.(c) If the department approves a proposed producer responsibility plan, a revised plan, or a conditionally approved plan, then the department shall notify the producer responsibility organization of the approval. The producer responsibility organization shall implement the approved or conditionally approved plan within 90 days of receipt of the notice of approval, or as otherwise agreed to by the department.(d) If the department disapproves a proposed producer responsibility plan or a revised plan, then the department shall notify the producer responsibility organization of the disapproval and specify the reasons for disapproval. Within 30 days of receipt of the notice of disapproval, the producer responsibility organization shall submit a revised plan.(e) (1) If the department approves a proposed producer responsibility plan or a revised plan in part, then the department shall notify the producer responsibility organization of the partial approval and identify the portions of the producer responsibility plan that do not comply with this article.(2) Within 30 days of receipt of the notice of partial approval, the producer responsibility organization shall submit a revised plan to the department.(3) The producer responsibility organization shall implement the approved parts of the producer responsibility plan within 90 days of receipt of the notice of partial approval, or as otherwise agreed to by the department.(f) Within 30 days of receipt of a revised plan, the department shall approve, approve in part, or disapprove the revised plan.(g) If the department has not approved, approved in part, or disapproved a producer responsibility plan within one year of receipt of the producer responsibility plan, then the producer responsibility plan shall be deemed conditionally approved and the department shall notify the producer responsibility organization of the conditional approval within 30 days.(h) The department may impose additional requirements for any portion of a proposed producer responsibility plan, a revised plan, or a conditionally approved plan that does not comply with this article and that has not been approved. (i) When reviewing a proposed producer responsibility plan, a revised plan, or a conditionally approved plan, the department may solicit information from producers, other agencies or departments, or stakeholders, as the department deems appropriate.(j) The department may review an approved plan or a conditionally approved plan at any time. If the department finds that an approved plan or a conditionally approved plan does not comply with this article, then it may recommend modifications.(k) Any substantial changes to an approved plan shall be submitted to the department for approval.(l) (1) An approved plan and a conditionally approved plan shall be a public record, except that financial, production, or sales data reported by the producer responsibility organization to the department is not a public record for purposes of the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and shall not be open to public inspection. The department may release financial or sales data in summary form only so the information cannot be attributable to a specific entity.(2) The producer responsibility organization may submit to the department a redacted version of the approved plan or conditionally approved plan that removes any proprietary or confidential information.(3) Within 90 days of approval, conditional approval, or revision of a producer responsibility plan, the department shall post on its internet website the producer responsibility plan and a list of all the participant producers covered by the producer responsibility plan. 25218.56. A producer responsibility plan shall meet all of the following criteria:(a) Be designed to ensure the safe and convenient collection and management of covered products at no cost to consumers or local governments.(b) Describe the methods of collection to ensure convenience to customers, including permanent collection sites, temporary collection sites, curbside collection, and collection events.(c) Include as a permanent collection site a local household hazardous waste collection facility, as defined in subdivision (h) of Section 25218.1, that offers in writing to participate in the program.(d) Describe opportunities for collection and management of covered products for residents of the state on weekdays outside of the hours of 8:00 a.m. to 5:00 p.m., and on weekends.(e) Include strategies to ensure that elderly consumers, disabled consumers, and any other consumers with limited mobility, have access to the safe and proper collection and management of covered products, including opportunities to have covered products collected.(f) Describe how the producer responsibility organization will leverage and use existing collection programs and infrastructure.(g) (1) Ensure a decrease in the aggregate percentage of covered products improperly disposed of by 40 percent by 2036, as measured against the baseline determined pursuant to Section 25218.52.(2) The department may set an interim diversion target for the years 2026 to 2035, inclusive.(3) The department may set a diversion target for 2037, and for each year thereafter, that is in excess of the diversion target specified in paragraph (1).(h) (1) Ensure at least 70 percent of California consumers are aware of the program implemented by the producer responsibility organization by 2036.(2) The department may set an interim consumer awareness target for the years 2026 to 2035, inclusive.(3) The department may set a consumer awareness target for 2037, and for each year thereafter, that is in excess of the consumer awareness target specified in paragraph (1).(i) Describe how the producer responsibility organization will incentivize minimizing disposal of covered products, when feasible, including through reuse, recycling, and reducing the amount of covered products being disposed of.(j) Include the contact information of each participant producer.(k) Include a financial section that demonstrates how the producer responsibility organization will comply with Section 25218.58, including, but not limited to, a five-year budget that demonstrates how the producer responsibility organization will comply with subdivision (b) of Section 25218.58.(l) Include a section describing the producer responsibility organizations contingency plan in the event the producer responsibility plan expires or is revoked. The contingency plan shall guarantee that all the contracts, financial data, and any other necessary authority and assets to operate the program shall vest in a trustee approved by the department. The trustee shall operate the most recently approved plan, subject to the direction of the department, until such time as a new producer responsibility plan is approved. Upon the expiration or revocation of a producer responsibility plan, the balance of the producer responsibility organizations operating reserves collected shall be transferred to the control of the trustee within five calendar days. All documents, digital records, contracts, and files related to the operation of the producer responsibility plan shall be transferred to the control of the trustee within five calendar days.(m) Include a section describing a comprehensive statewide education and outreach program designed to educate consumers and promote participation in the program offered by the producer responsibility organization. This shall include a description of efforts to support participation by all California communities, including a description of efforts to communicate with consumers in languages other than English. The comprehensive statewide education and outreach program shall do all of the following:(1) Promote the safe and proper management of a covered product and shall not promote the disposal of a covered product in a manner inconsistent with the services offered by the producer responsibility plan.(2) Include information for consumers on how to properly manage a covered product at the time of disposal and how to avoid improper disposal of a covered product.(3) Include information for consumers about how to reduce the amount of covered products being disposed of and how to participate in reuse opportunities for covered products.(4) Include information related to environmentally preferable purchasing and how to identify less hazardous alternatives. 25218.57. (a) The producer responsibility organization shall review its approved plan at least every five years and determine whether revisions are necessary.(b) If the producer responsibility organization determines that revisions to its approved plan are necessary, the producer responsibility organization shall submit to the department a revised plan for review and approval using the procedures set forth in Section 25218.55. The producer responsibility organization shall submit the revised plan to the department at least 12 months before the review deadline outlined in subdivision (a). The revised plan shall include a cover letter that summarizes the revisions to the producer responsibility plan.(c) If the producer responsibility organization determines that no revisions to the approved plan are necessary, the producer responsibility organization shall send a letter to the department 12 months before the review deadline outlined in subdivision (a) explaining that the producer responsibility organization has reviewed the approved plan and determined that no revisions are needed. The department may disapprove the producer responsibility organizations determination within 30 days of receipt of the letter if the department concludes that the producer responsibility organization cannot implement the objectives of this article without revising the approved plan. If the department disapproves the producer responsibility organizations determination, the department may indicate to the producer responsibility organization which sections of the approved plan need revision and the producer responsibility organization shall submit to the department a revised plan for review and approval, following the procedures set forth in Section 25218.55. The producer responsibility organization shall submit the revised plan pursuant to this subdivision within 60 days of receipt of the departments disapproval.(d) The department may consult with or submit the revised plan to another state agency or department if the department determines it is necessary for making its determination. The duration of time the department takes for this consultation is not included in the time allotted to the department for review pursuant to this section. 25218.58. The producer responsibility organization shall do all of the following:(a) (1) Establish a method for fully funding the producer responsibility organization and implementing an approved producer responsibility plan in a manner that equitably distributes the producer responsibility plans costs among participant producers in a manner that reflects sales volumes, consideration of the cost of managing their specific covered products according to the approved producer responsibility plan, and malus fees or credits pursuant to paragraph (2).(2) The distribution of the producer responsibility plans costs shall incorporate malus fees or credits for participant producers, with adjustments based on any of the following, as applicable:(A) (i) Actions taken by the participant producer to invest in sustainable packaging or product reuse and refill systems that ensure the covered product does not become waste, either through the waste stream or illegal dumping.(ii) Clause (i) does not apply to a packaging product subject to another statewide stewardship or advanced disposal fee-based program for collection or management pursuant to state law.(B) Actions taken by the participant producer, including clear and accurate labeling and instructions, that improve consumer behavior related to sorting and proper disposal of the covered product.(C) Actions taken by the participant producer to reduce the relative toxicity, ignitability, corrosiveness, or reactivity of the covered product.(b) (1) Operate on a budget that establishes a funding level sufficient to operate the producer responsibility organization in a prudent and responsible manner. The budget shall demonstrate how the producer responsibility organizations estimated revenues will cover all of its budgeted costs for each cost category. Budgeted cost categories shall include, but are not limited to, administrative costs, capital costs, and a reserve.(2) Administrative costs shall include the actual and reasonable regulatory costs incurred by the department, which includes full personnel costs, to implement and enforce this article, consistent with the regulations described in Section 25218.52. For purposes of this paragraph, producer responsibility organization implementation begins upon approval of the producer responsibility organizations producer responsibility plan, except that costs shall include actual regulatory development costs and other startup costs incurred before a producer responsibility plans submittal and approval.(3) The reserve shall include funds to operate the producer responsibility organization if there are unexpected events, losses of income, or large unbudgeted expenses. The reserve shall also protect the infrastructure that the producer responsibility organization relies on in its producer responsibility plan during any lapse in producer participation during the life of the program. The reserve cost category shall include a reserve level amount description justifying the reserve level amount indicated. The producer responsibility organization shall maintain reserve funds sufficient to operate the producer responsibility plan for not less than six months. When a new producer responsibility organization is approved by the department, the producer responsibility organization shall establish its reserve and maintain the required reserve fund balance by the end of the second year of producer responsibility plan operation. If the producer responsibility organizations producer responsibility plan expires or is revoked, the reserve balance shall be transferred to a successor producer responsibility organization or a trustee pursuant to the portion of the producer responsibility plan described in subdivision (f) of Section 25218.56.(c) On a schedule determined by the department, pay the department fees to cover the departments regulatory costs, as described in Section 25218.60.(d) Establish a process by which the financial activities of the producer responsibility organization that are related to implementation of the producer responsibility plan will be subject to an independent audit consistent with generally accepted accounting principles and pursuant to Section 25218.63.(e) Provide written certification by an authorized representative of the producer responsibility organization that, at the time of submission to the department, all aspects of the producer responsibility plan are in compliance with all applicable state and federal laws and regulations.(f) Have adequate financial responsibility and financial controls in place, including fraud prevention measures, to ensure proper management of funds.25218.59. Each participant producer shall, through the producer responsibility organization, pay all administrative and operational costs associated with establishing and implementing the producer responsibility organizations approved plan, including the cost of the collection, transportation, and safe and proper management of covered products, including covered products that have been illegally dumped.25218.60. (a) Within four months of the effective date of the regulations described in Section 25218.52, the department shall notify the producer responsibility organization of the estimated regulatory costs for the department and the criteria for the costs specified in the regulations. Those costs shall include the costs associated with developing the regulations and other department activities that occur before a producer responsibility plans submittal and approval, including, but not limited to, full personnel costs related to implementing and enforcing this article. The costs shall not exceed the departments reasonable regulatory costs to implement and enforce this article.(b) The department shall deposit all moneys received from the producer responsibility organization pursuant to this section into the Household Hazardous Waste Producer Responsibility Fund, which is hereby established in the State Treasury.(c) Upon appropriation by the Legislature, moneys in the Household Hazardous Waste Producer Responsibility Fund shall be expended by the department to implement and enforce this article and to reimburse any outstanding loans made from other funds used to finance the development of the regulations and the startup costs of the departments activities pursuant to this article.(d) The moneys in the Household Hazardous Waste Producer Responsibility Fund shall only be expended for those purposes described in subdivision (c). 25218.61. (a) If the producer responsibility plan relies on a local jurisdiction to collect or manage a covered product, or to otherwise comply with this article, then the producer responsibility organization shall reimburse the local jurisdiction for costs associated with the collection and management of the covered product, including, but not limited to, the cost of providing supplies for the collection of, transportation, and disposal of covered materials, including the jurisdictions labor and administrative costs based on the proportion of covered to noncovered products collected at the facility.(b) Reimbursement costs pursuant to subdivision (a) shall be limited to the actual costs of, supplies, transportation, and management of a covered product, including the costs to reimburse local jurisdictions to collect and manage covered products that have been illegally dumped.25218.62. (a) The producer responsibility organization shall keep board minutes, books, and records that clearly reflect the activities and transactions of the producer responsibility organization for a period of not less than five years.(b) A producer and the producer responsibility organization shall do both of the following:(1) Upon request, provide the department with reasonable and timely access, as determined by the department, to its facilities and operations, as necessary to determine compliance with this article.(2) Within 14 days of a request from the department, provide the department with relevant records, as determined by the department, necessary to determine compliance with this article.(c) The department may audit the producer responsibility organization annually.(d) All reports and records provided to the department pursuant to this article shall be provided under penalty of perjury.(e) The failure of the producer responsibility organization, a participant producer, or their respective agent who holds records to produce documents or data that is requested by the department, required to be collected or generated to carry out operation of the producer responsibility plan in the form and manner determined by the department as part of a department audit, or review of a third-party audit, shall constitute a violation of this article.(f) The department may impose administrative civil penalties pursuant to Section 25218.68 on a producer or producer responsibility organization that fails to provide the department with the access required pursuant to this section.25218.63. (a) The producer responsibility organization shall retain an independent certified public accountant, certified in the United States, to annually audit the accounting books of the producer responsibility organization. The department shall review the independent certified public accountants audit for compliance with this article and consistency with the producer responsibility organizations approved producer responsibility plan and the annual report required by Section 25218.64. After the department conducts its own review, the department shall notify the producer responsibility organization of any conduct or practice that does not comply with this article or of any inconsistencies identified in the review. The producer responsibility organization may obtain copies of the departments review, including proprietary information contained in the departments review, upon request. The producer or producer responsibility organization may request the department withhold from disclosure confidential proprietary information to the extent allowed under Section 1040 of the Evidence Code and the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).(b) The items submitted to the department for its review of the independent audit shall include all of the following:(1) Financial statements audited in accordance with generally accepted accounting principles.(2) An audit of the producer responsibility organizations compliance with this article.(3) An audit of the producer responsibility organizationss adherence to, execution of, and consistency with its approved plan.(c) The producer responsibility organization shall include the independent audit in its annual report submitted to the department pursuant to Section 25218.64 commencing within 18 months of the producer responsibility plans approval by the department 25218.64. On or before January 1 of each year, the producer responsibility organization shall submit to the department, and make publicly available, an annual report, in a format prescribed by the department, that includes, at minimum, all of the following information for the preceding calendar year, unless otherwise specified:(a) The producer responsibility organizations costs, according to the cost categories established in the producer responsibility plan, and revenues.(b) A summary of any anticipated changes to allocations in cost categories for the next calendar year.(c) Any changes to the distribution of costs to the participant producers.(d) Updated contact information for participant producers.(e) An estimate of the quantity of covered products sold in or into the state by participant producers, as determined by the best available commercial data.(f) A summary of efforts made as part of the comprehensive statewide education and outreach program, as required by subdivision (f) of Section 25218.56, including the producer responsibility organizations evaluation of the effectiveness of the program.(g) Recommendations for any future proposed substantial changes to the producer responsibility plan.(h) Any other information required by the regulations described in Section 25218.52. 25218.65. (a) No later than 120 days after the date the department receives an annual report pursuant to Section 25218.64, the department shall notify the producer responsibility organization if the annual report is compliant or noncompliant.(b) If the department determines that the annual report is noncompliant due to failure to meet the requirements of this article, the department may require the resubmittal of the annual report and take enforcement action.(c) The department may consult with or submit the annual report to a state agency or department if it determines it is necessary to determine the annual reports compliance or noncompliance. 25218.66. A retailer, dealer, importer, or distributor shall not sell, distribute, offer for sale, or import a covered product in or into the state unless the producer of the covered product is listed as a compliant producer pursuant to Section 25218.67 or has received a certification letter described in subdivision (e) of Section 25218.67.25218.67. (a) Within 12 months of the effective date of the regulations described in Section 25218.52, and on or before July 1 of each year thereafter, the department shall publish on the departments internet website a list of the names of producers that are compliant with this article. The department shall list, as appropriate, the reported brands of covered products for each producer.(b) A retailer, importer, or distributor shall monitor the departments internet website to determine if a producer, brand, or covered product is in compliance with this article.(c) Notwithstanding any other provision of this article, upon identification of a producer that is not registered with the producer responsibility organization with an approved producer responsibility plan, the department shall issue a notice of noncompliance to the producer.(d) If the department determines a producer is not in compliance with this article, the department shall remove the producer and its brands of covered products from the compliance list on its internet website.(e) The department shall provide a certification letter to a producer that is not listed on the departments internet website as a compliant producer, but that has demonstrated compliance with this article to the department. The certification letter shall state that the producer is in compliance with this article. The department may update the compliance list on its website. 25218.68. (a) The department may impose a civil penalty on any producer or stewardship organization that is in violation of this article of up to the following amounts:(1) Ten thousand dollars ($10,000) per day.(2) Fifty thousand dollars ($50,000) per day if the violation is intentional or knowing.(b) In assessing or reviewing the amount of a civil penalty imposed pursuant to subdivision (a) for a violation of this article, the department or the court shall consider all of the following:(1) The nature and extent of the violation.(2) The number and severity of the violation or violations.(3) The economic effect of the penalty on the violator.(4) Whether the violator took good faith measures to comply with this article and the period of time over which these noncompliant actions were taken.(5) The willfulness of the violators misconduct.(6) The deterrent effect that the imposition of the penalty would have on both the violator and the regulated community.(7) Any other factor that justice may require.(c) Upon a written finding that a producer responsibility organization, producer, importer, or any other party regulated pursuant to this article has not met a material requirement of this article, in addition to any other penalties authorized pursuant to this article, the department may take one or all of the following actions to ensure compliance with the requirements of this article, after affording the producer responsibility organization, producer, importer, or any other party regulated pursuant to this article, an opportunity to respond to or rebut the finding:(1) Revoke the producer responsibility organizations approved producer responsibility plan or require the producer responsibility organization to resubmit the producer responsibility plan, in whole or in part.(2) Require additional reporting relating to compliance with the material requirements of this article that were not met.(3) Approve a producer responsibility plan submitted by another producer responsibility organization.(d) The department shall deposit all penalties collected pursuant to this section into the Household Hazardous Waste Products Penalty Account, which is hereby created in the Household Hazardous Waste Producer Responsibility Fund. Upon appropriation by the Legislature, moneys in the Household Hazardous Waste Products Penalty Account shall be available for expenditure by the department for activities related to the collection, reuse, and recycling of covered products, grants for related purposes, and the administration and enforcement of this article.(e) The Administrative Adjudication Bill of Rights (Article 6 (commencing with Section 11425.10) of Chapter 4.5 of Part 1 of Division 3 of Title 2 of the Government Code) applies to hearings conducted pursuant to this article and mandates minimum due process requirements. 25218.69. (a) After the time for judicial review under Section 11523 of the Government Code has expired, the department may apply to the small claims court or superior court, depending on the jurisdictional amount and any other remedy sought, in the county where the penalties, restitution, or other remedy was imposed by the department, for a judgment to collect any unpaid civil penalties or restitution or to enforce any other remedy provided by this article. The application, which shall include a certified copy of the final agency order or decision, shall constitute a sufficient showing to warrant the issuance of the judgment. The court clerk shall enter the judgment immediately in conformity with the application. The judgment so entered shall have the same force and effect as, and shall be subject to all laws relating to, a judgment in a civil action and may be enforced in the same manner as any other judgment of the court. The court shall make enforcement of the judgment a priority.(b) If a person has engaged in or is about to engage in an act, practice, or omission that constitutes, or will constitute, a violation of this article, the Attorney General may, at the request of the director of the department or upon the Attorney Generals own determination, bring an action in superior court for an order enjoining the act, practice, or omission. The order may require remedial measures and direct compliance with this article. Upon a showing that the person has engaged in or is about to engage in that act, practice, or omission, the superior court may issue a permanent or temporary injunction, restraining order, or other order, as appropriate. 25218.70. In support of this article, the Department of Resources Recycling and Recovery shall include both of the following in updates to the applicable waste characterization study:(a) The amount of covered products, by covered product category, that was improperly disposed of and observed in the waste characterization study.(b) In an appendix, the amount of covered products, by covered product category, properly collected and managed by a household hazardous waste collection facility.25218.71. (a) Except as provided in subdivision (b), an action that is taken by a producer or producer responsibility organization 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), the Unfair Practices Act (Chapter 4 (commencing with Section 17000) of Part 2 of Division 7 of the Business and Professions Code), or the Unfair Competition Law (Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code) to the extent the producer or producer responsibility organization is exercising authority pursuant to this article.(b) Subdivision (a) applies to all of the following actions taken by a producer responsibility organization:(1) The creation, implementation, or management of a producer responsibility plan approved or conditionally approved by the department pursuant to this article and the determination of the types or quantities of covered products recycled or otherwise managed pursuant to the producer responsibility plan.(2) The determination of the cost and structure of an approved producer responsibility plan.(3) The establishment, administration, collection, or disbursement of a charge associated with funding the implementation of this article.(c) Subdivision (a) does not apply to an agreement that does any of the following:(1) Fixes a price of or for covered products.(2) Fixes the output or production of covered products.(3) Restricts the geographic area in which, or customers to whom, covered products will be sold.SEC. 3. The Legislature finds and declares that Section 2 of this act, which adds Sections 25218.55 and 25218.63 to the Health and Safety Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:In order to ensure the effective solid waste management of, and viable markets for, products that contain household hazardous waste, it is necessary to protect the proprietary information of producers, retailers, wholesalers, and solid waste enterprises by keeping confidential the financial, production, and sales data reported by those entities under Section 2 of this act.SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
Amended IN Senate April 07, 2025 Amended IN Senate March 24, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Senate Bill No. 501Introduced by Senator AllenFebruary 19, 2025An act to add Article 10.8.5 (commencing with Section 25218.50) to Chapter 6.5 of Division 20 of the Health and Safety Code, relating to hazardous materials. LEGISLATIVE COUNSEL'S DIGESTSB 501, as amended, Allen. Household Hazardous Waste Producer Responsibility Act.(1) Under existing law, as part of the hazardous waste control laws, the Department of Toxic Substances Control (DTSC) generally regulates the management and handling of hazardous waste and hazardous materials. Existing law authorizes a public agency, as defined, to operate a household hazardous waste collection facility under permit from DTSC.Existing law, the Plastic Pollution Prevention and Packaging Producer Responsibility Act, establishes a producer responsibility program designed to ensure that producers of single-use packaging and food service ware covered by that program take responsibility for the costs associated with the end-of-life management of that material and ensure that the material is recyclable or compostable.This bill would create a producer responsibility program for products containing household hazardous waste and would require a producer responsibility organization (PRO) to ensure the safe and convenient collection and management of covered products at no cost to consumers or local governments. The bill would define covered product to mean a consumer product that is ignitable, toxic, corrosive, or reactive, or that meets other specified criteria. criteria, except as specified. The bill would require a producer of a covered product to register with the PRO, which would be required to develop and implement a producer responsibility plan for the collection, transportation, and the safe and proper management of covered products. The bill would require DTSC to adopt regulations to implement the program with an effective date no earlier than July 1, 2028. TheThis bill would require the PRO, within 12 months of the effective date of the regulations, to submit a producer responsibility plan to DTSC. The bill would require the plan to include specified elements, including a funding mechanism to fully fund the PRO and the program. The bill would require, within 6 months of receipt of the plan, DTSC to approve, approve in part, or disapprove the plan, as specified. The bill would require DTSC to notify the PRO of its decision. If DTSC does not approve the plan in full, then the bill would require DTSC to specify the reasons for disapproval or identify the portions of the partially approved plan that do not comply with the program, as applicable. The bill would require the PRO to submit a revised plan if its plan is not fully approved. The bill would conditionally approve a plan if DTSC does not approve, approve in part, or disapprove a plan within one year of receipt of the plan. TheThis bill would require the PRO to implement its plan within 90 days of approval. The bill would require the plan to be fully funded in a manner that equitably distributes the plans costs among participant producers, as specified. The bill would require the PRO to reimburse local jurisdictions for costs associated with collecting illegally dumped covered products and for providing a convenient collection system for covered products if the PROs plan relies on local jurisdictions to collect or manage covered products. TheThis bill would require the PRO to prepare and submit to DTSC an annual report describing the activities carried out pursuant to the plan. The bill would require the PRO to retain specified documents, annually audit its accounting books, and make documents available to DTSC for review, as specified. The bill would require all reports and records provided to DTSC pursuant to the program to be provided under penalty of perjury. By expanding the scope of a crime, the bill would impose a state-mandated local program. TheThis bill would require a participant producer, through the PRO, to pay DTSC, on an unspecified schedule, an annual administrative charge, as determined by DTSC. The bill would require the charge be set at an amount that is adequate to cover DTSCs full costs of administering and enforcing the program. The bill would provide for the imposition of administrative civil penalties on producers and other specified persons who violate the program. The bill would establish the Household Hazardous Waste Producer Responsibility Fund in the State Treasury and would require the administrative charges collected by DTSC to be deposited into that fund for expenditure by DTSC, upon appropriation by the Legislature, to cover DTSCs cost to implement the program. The bill would also establish the Household Hazardous Waste Products Penalty Account in the Household Hazardous Waste Producer Responsibility Fund and would require that the civil penalties collected by DTSC pursuant to the program be deposited into that account, for expenditure by DTSC, upon appropriation by the Legislature, for activities related to the collection, reuse, and recycling of covered products, grants for related purposes, and the administration and enforcement of the program.This bill would require the PRO to prepare an initial statewide needs assessment designed to determine the necessary steps and investments needed for covered products to achieve the requirements and purposes of the program, as specified. The bill would provide that certain actions of the PRO or a producer are not violations of the Cartwright Act or certain provisions regulating unfair business practices or unfair competition.(2) Existing law established the Department of Resources Recycling and Recovery (CalRecycle) to, among other things, promote waste management in the order of source reduction, then recycling and composting, and then environmentally safe transformation and environmentally safe land disposal, as provided. Pursuant to that authority, CalRecycle publishes various waste characterization studies.This bill would require CalRecycle, in support of the program, to include in updates to the applicable waste characterization study the amount of covered products that were properly and improperly disposed of, as specified.(3) Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.This bill would make legislative findings to that effect.(4) 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.This bill would provide that no reimbursement is required by this act for a specified reason.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES
Amended IN Senate April 07, 2025 Amended IN Senate March 24, 2025
Amended IN Senate April 07, 2025
Amended IN Senate March 24, 2025
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Senate Bill
No. 501
Introduced by Senator AllenFebruary 19, 2025
Introduced by Senator Allen
February 19, 2025
An act to add Article 10.8.5 (commencing with Section 25218.50) to Chapter 6.5 of Division 20 of the Health and Safety Code, relating to hazardous materials.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 501, as amended, Allen. Household Hazardous Waste Producer Responsibility Act.
(1) Under existing law, as part of the hazardous waste control laws, the Department of Toxic Substances Control (DTSC) generally regulates the management and handling of hazardous waste and hazardous materials. Existing law authorizes a public agency, as defined, to operate a household hazardous waste collection facility under permit from DTSC.Existing law, the Plastic Pollution Prevention and Packaging Producer Responsibility Act, establishes a producer responsibility program designed to ensure that producers of single-use packaging and food service ware covered by that program take responsibility for the costs associated with the end-of-life management of that material and ensure that the material is recyclable or compostable.This bill would create a producer responsibility program for products containing household hazardous waste and would require a producer responsibility organization (PRO) to ensure the safe and convenient collection and management of covered products at no cost to consumers or local governments. The bill would define covered product to mean a consumer product that is ignitable, toxic, corrosive, or reactive, or that meets other specified criteria. criteria, except as specified. The bill would require a producer of a covered product to register with the PRO, which would be required to develop and implement a producer responsibility plan for the collection, transportation, and the safe and proper management of covered products. The bill would require DTSC to adopt regulations to implement the program with an effective date no earlier than July 1, 2028. TheThis bill would require the PRO, within 12 months of the effective date of the regulations, to submit a producer responsibility plan to DTSC. The bill would require the plan to include specified elements, including a funding mechanism to fully fund the PRO and the program. The bill would require, within 6 months of receipt of the plan, DTSC to approve, approve in part, or disapprove the plan, as specified. The bill would require DTSC to notify the PRO of its decision. If DTSC does not approve the plan in full, then the bill would require DTSC to specify the reasons for disapproval or identify the portions of the partially approved plan that do not comply with the program, as applicable. The bill would require the PRO to submit a revised plan if its plan is not fully approved. The bill would conditionally approve a plan if DTSC does not approve, approve in part, or disapprove a plan within one year of receipt of the plan. TheThis bill would require the PRO to implement its plan within 90 days of approval. The bill would require the plan to be fully funded in a manner that equitably distributes the plans costs among participant producers, as specified. The bill would require the PRO to reimburse local jurisdictions for costs associated with collecting illegally dumped covered products and for providing a convenient collection system for covered products if the PROs plan relies on local jurisdictions to collect or manage covered products. TheThis bill would require the PRO to prepare and submit to DTSC an annual report describing the activities carried out pursuant to the plan. The bill would require the PRO to retain specified documents, annually audit its accounting books, and make documents available to DTSC for review, as specified. The bill would require all reports and records provided to DTSC pursuant to the program to be provided under penalty of perjury. By expanding the scope of a crime, the bill would impose a state-mandated local program. TheThis bill would require a participant producer, through the PRO, to pay DTSC, on an unspecified schedule, an annual administrative charge, as determined by DTSC. The bill would require the charge be set at an amount that is adequate to cover DTSCs full costs of administering and enforcing the program. The bill would provide for the imposition of administrative civil penalties on producers and other specified persons who violate the program. The bill would establish the Household Hazardous Waste Producer Responsibility Fund in the State Treasury and would require the administrative charges collected by DTSC to be deposited into that fund for expenditure by DTSC, upon appropriation by the Legislature, to cover DTSCs cost to implement the program. The bill would also establish the Household Hazardous Waste Products Penalty Account in the Household Hazardous Waste Producer Responsibility Fund and would require that the civil penalties collected by DTSC pursuant to the program be deposited into that account, for expenditure by DTSC, upon appropriation by the Legislature, for activities related to the collection, reuse, and recycling of covered products, grants for related purposes, and the administration and enforcement of the program.This bill would require the PRO to prepare an initial statewide needs assessment designed to determine the necessary steps and investments needed for covered products to achieve the requirements and purposes of the program, as specified. The bill would provide that certain actions of the PRO or a producer are not violations of the Cartwright Act or certain provisions regulating unfair business practices or unfair competition.(2) Existing law established the Department of Resources Recycling and Recovery (CalRecycle) to, among other things, promote waste management in the order of source reduction, then recycling and composting, and then environmentally safe transformation and environmentally safe land disposal, as provided. Pursuant to that authority, CalRecycle publishes various waste characterization studies.This bill would require CalRecycle, in support of the program, to include in updates to the applicable waste characterization study the amount of covered products that were properly and improperly disposed of, as specified.(3) Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.This bill would make legislative findings to that effect.(4) 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.This bill would provide that no reimbursement is required by this act for a specified reason.
(1) Under existing law, as part of the hazardous waste control laws, the Department of Toxic Substances Control (DTSC) generally regulates the management and handling of hazardous waste and hazardous materials. Existing law authorizes a public agency, as defined, to operate a household hazardous waste collection facility under permit from DTSC.
Existing law, the Plastic Pollution Prevention and Packaging Producer Responsibility Act, establishes a producer responsibility program designed to ensure that producers of single-use packaging and food service ware covered by that program take responsibility for the costs associated with the end-of-life management of that material and ensure that the material is recyclable or compostable.
This bill would create a producer responsibility program for products containing household hazardous waste and would require a producer responsibility organization (PRO) to ensure the safe and convenient collection and management of covered products at no cost to consumers or local governments. The bill would define covered product to mean a consumer product that is ignitable, toxic, corrosive, or reactive, or that meets other specified criteria. criteria, except as specified. The bill would require a producer of a covered product to register with the PRO, which would be required to develop and implement a producer responsibility plan for the collection, transportation, and the safe and proper management of covered products. The bill would require DTSC to adopt regulations to implement the program with an effective date no earlier than July 1, 2028.
The
This bill would require the PRO, within 12 months of the effective date of the regulations, to submit a producer responsibility plan to DTSC. The bill would require the plan to include specified elements, including a funding mechanism to fully fund the PRO and the program. The bill would require, within 6 months of receipt of the plan, DTSC to approve, approve in part, or disapprove the plan, as specified. The bill would require DTSC to notify the PRO of its decision. If DTSC does not approve the plan in full, then the bill would require DTSC to specify the reasons for disapproval or identify the portions of the partially approved plan that do not comply with the program, as applicable. The bill would require the PRO to submit a revised plan if its plan is not fully approved. The bill would conditionally approve a plan if DTSC does not approve, approve in part, or disapprove a plan within one year of receipt of the plan.
The
This bill would require the PRO to implement its plan within 90 days of approval. The bill would require the plan to be fully funded in a manner that equitably distributes the plans costs among participant producers, as specified. The bill would require the PRO to reimburse local jurisdictions for costs associated with collecting illegally dumped covered products and for providing a convenient collection system for covered products if the PROs plan relies on local jurisdictions to collect or manage covered products.
The
This bill would require the PRO to prepare and submit to DTSC an annual report describing the activities carried out pursuant to the plan. The bill would require the PRO to retain specified documents, annually audit its accounting books, and make documents available to DTSC for review, as specified. The bill would require all reports and records provided to DTSC pursuant to the program to be provided under penalty of perjury. By expanding the scope of a crime, the bill would impose a state-mandated local program.
The
This bill would require a participant producer, through the PRO, to pay DTSC, on an unspecified schedule, an annual administrative charge, as determined by DTSC. The bill would require the charge be set at an amount that is adequate to cover DTSCs full costs of administering and enforcing the program. The bill would provide for the imposition of administrative civil penalties on producers and other specified persons who violate the program. The bill would establish the Household Hazardous Waste Producer Responsibility Fund in the State Treasury and would require the administrative charges collected by DTSC to be deposited into that fund for expenditure by DTSC, upon appropriation by the Legislature, to cover DTSCs cost to implement the program. The bill would also establish the Household Hazardous Waste Products Penalty Account in the Household Hazardous Waste Producer Responsibility Fund and would require that the civil penalties collected by DTSC pursuant to the program be deposited into that account, for expenditure by DTSC, upon appropriation by the Legislature, for activities related to the collection, reuse, and recycling of covered products, grants for related purposes, and the administration and enforcement of the program.
This bill would require the PRO to prepare an initial statewide needs assessment designed to determine the necessary steps and investments needed for covered products to achieve the requirements and purposes of the program, as specified. The bill would provide that certain actions of the PRO or a producer are not violations of the Cartwright Act or certain provisions regulating unfair business practices or unfair competition.
(2) Existing law established the Department of Resources Recycling and Recovery (CalRecycle) to, among other things, promote waste management in the order of source reduction, then recycling and composting, and then environmentally safe transformation and environmentally safe land disposal, as provided. Pursuant to that authority, CalRecycle publishes various waste characterization studies.
This bill would require CalRecycle, in support of the program, to include in updates to the applicable waste characterization study the amount of covered products that were properly and improperly disposed of, as specified.
(3) Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
(4) 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.
This bill would provide that no reimbursement is required by this act for a specified reason.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) Thousands of household products that are sold in the state contain substances designated as hazardous under state or federal law.(b) Leftover household products, known as household hazardous waste, are regulated through a requirement that municipal solid waste management entities include provisions in solid waste implementation plans for the management and diversion of unregulated hazardous waste.(c) Californias hazardous waste laws and regulations establish specific requirements for the management of hazardous waste, including a prohibition on disposal in landfills.(d) The Department of Resources Recycling and Recovery has supported the construction of household hazardous waste facilities and management by offering household hazardous waste grants to local governments, and those grants are currently limited to $1,500,000 annually when a single facility, such as the one in progress in the County of Sonoma, will cost between $13,000,000 and $16,000,000.(e) California already has extended producer responsibility programs for some household hazardous waste products, including mercury thermostats, pharmaceuticals, sharps and needles, and paint products.(f) The Statewide Commission on Recycling Markets and Curbside Recycling convened from July 2020 to June 2022, and its first recommendation was to create a household hazardous waste extended producer responsibility program.(g) According to the Department of Toxic Substances Controls Hazardous Waste Management Report, released November 2023, The previous waste reduction efforts were discontinued because they did not produce reductions large enough to be seen as effective.(h) The cost of managing household hazardous waste for local government ratepayers is extremely high and yet proper disposal is still inconvenient for the public. Extended producer responsibility is used for a wide variety of household hazardous waste products in Canada and other countries for products like antifreeze, pesticides, flammables, radioactive smoke alarms, lighting, and others.(i) To reduce improper disposal of household hazardous waste, reduce the financial burden on local jurisdictions and taxpayers, reduce the cost of the overall system of managing household hazardous waste, improve the convenience of proper disposal to the public, and lessen the environmental and public health risks posed by improperly disposed household hazardous waste, the state shall implement a program to require the manufacturers of household hazardous waste products to create a producer responsibility organization to improve collection and to cover the costs of managing household hazardous waste. SEC. 2. Article 10.8.5 (commencing with Section 25218.50) is added to Chapter 6.5 of Division 20 of the Health and Safety Code, to read: Article 10.8.5. Household Hazardous Waste Producer Responsibility Act25218.50. (a) This article shall be known, and may be cited, as the Household Hazardous Waste Producer Responsibility Act.(b) The purpose of this article is to provide for the safe and proper management of household hazardous waste, which poses a threat to public health and safety, is costly for Californias local governments, and may cause significant damage to the environment when managed improperly.25218.51. For purposes of this article, the following definitions apply:(a) (1) Approved plan means a producer responsibility plan that has been approved by the department pursuant to Section 25218.55 and that has not been revoked by the department pursuant to Section 25218.68.(2) A conditionally approved plan is an approved plan, except as used in Section 25218.55.(3) A partially approved plan is not an approved plan.(b) Brand means a name, symbol, word, or mark that identifies a covered product rather than its components, and attributes the covered product to the owner or licensee of the brand as the producer.(c) Consumer means a purchaser, owner, or lessee of a covered product, including a person, business, corporation, limited partnership, nonprofit organization, or governmental entity.(d) Consumer product means a commodity that is intended for use for personal, family, or household purposes, or that is present in the same form, concentration, and quantity as a product prepackaged for distribution to a consumer for personal, family, or household purposes, and is handled at, and found in, a retail establishment and intended for direct sale to the end user.(e) Contact information means a name, physical address, mailing address, email address, and telephone number.(f) (1) Covered product means a consumer product that is one or more of the following:(A) A pesticide, as defined in Section 12753 of the Food and Agricultural Code.(B) An aerosol.(C) An oxidizer.(D) An adhesive, glue, cleaner, degreaser, or solvent, which adhesive or glue, which is ignitable, toxic, corrosive, or reactive.(E) A designated product, as defined in Section 108952, which is ignitable, toxic, or reactive.(E)A(F) An automotive product that is a lubricant, oil, antifreeze, cleaner, wax, or degreaser, which is an automotive product used for purposes of maintaining the function of a motor vehicle, as defined in Section 670 of the Vehicle Code.(F)(G) A compressed gas, including, but not limited to, propane, helium, and oxygen.(G)(H) A lithium battery.(H)(I) A product containing asbestos, mercury, or polychlorinated biphenyls.(I)(J) An electronic delivery system of a nicotine or non-nicotine aerosolized or vaporized solution to a person, including electronic cigarettes and vape pens.(J)(K) A product that is ignitable, toxic, corrosive, or reactive, that is added by the department via the assessment described in subdivision (d) of Section 25218.52, and that is not exempted.(2) Covered product does not include any of the following:(A) A product subject to another statewide stewardship or advanced disposal fee-based program for collection or management pursuant to state law.(B)A health and beauty product.(B) Cosmetics, drugs, or food.(C) Personal care items, including, but not limited to, hand soap, shampoo, or toothpaste.(C)(D) A product otherwise listed in paragraph (1) for which the producer demonstrates to the department that the product meets both of the following criteria:(i) The product is not ignitable, toxic, corrosive, or reactive.(ii) The product may safely be collected through a residential recycling collection service, residential organic waste collection, or residential solid waste collection.(D)(E) A parasiticide used to treat, or administered to, companion animals and that is regulated by the United States Environmental Protection Agency under the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. Sec. 136 et seq.).(F) A product subject to alternative management standards pursuant to Article 11.2 (commencing with Section 25230).(g) Department means the Department of Toxic Substances Control.(h) Importer means either of the following:(1) A person qualifying as an importer of record for purposes of Section 1484(a)(2)(B) of Title 19 of the United States Code with regard to the import of a covered product that is sold, distributed for sale, or offered for sale in or into the state that was manufactured or assembled by a company outside of the United States.(2) A person importing into the state for sale, distributing for sale, or offering for sale in the state a covered product that was manufactured or assembled by a company physically located outside of the state.(i) Participant producer means a producer that is registered with the producer responsibility organization.(j) (1) Producer means a person who manufactures a covered product and who sells, offers for sale, or distributes a covered product into the state under the persons own name or brand.(2) If there is no person in the state who is the producer for purposes of paragraph (1), the producer of the covered product is the owner or exclusive licensee of a brand under which the covered product is sold or distributed into the state. For purposes of this subdivision, an exclusive licensee is a person holding the exclusive right to use a brand in the state in connection with the manufacture, sale, or distribution for sale in or into the state of the covered product.(3) If there is no person in the state who is the producer for purposes of paragraph (1) or (2), the producer of the covered product is the person that imports the covered product into the state for sale, distribution, or installation.(4) If there is no person in the state who is the producer for purposes of paragraph (1), (2), or (3), the producer of the covered product is the distributor, retailer, dealer, or wholesaler who sells the product in or into the state.(5) For purposes of this article, the sale of a covered product shall be deemed to occur in the state if the covered product is delivered to the consumer in the state.(k) Producer responsibility organization means an organization that is exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986, is formed for the purpose of implementing a plan to meet the requirements of this article, and is approved by the department . department.(l) Producer responsibility plan means the plan developed by a producer responsibility organization for the collection, transportation, and the safe and proper management of covered products pursuant to this article and submitted to the department for approval pursuant to Section 25218.55.(m) Sell or sales has the same meaning as set forth in Section 6006 of the Revenue and Taxation Code.25218.52. (a) (1) Except as provided in Section 25218.55, the department shall adopt, amend, or repeal regulations to implement this article, in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The department shall not adopt regulations pursuant to this section with an effective date earlier than July 1, 2028.(2) As part of the regulations described in this section, the department shall establish a baseline amount of covered products improperly disposed of and shall measure progress towards meeting the performance-based standards in Section 25218.56.(b) On or before January 1, 2027, the department shall establish and post on its internet website a list of covered product categories.(c) On or before January 1, 2028, the department shall approve one, and only one, producer responsibility organization that meets the requirements of this article.(d) On or before January 1, 2032, and every five years after, the department may conduct an assessment to identify household hazardous waste that is not included in the producer responsibility plan and adjust the covered product categories, if needed, to achieve the purpose of this article. The department may select an independent third-party contractor to complete the assessment. The department shall make its determination and rationale available for public review. 25218.53. (a) No later than 90 days after the departments approval of the producer responsibility organization, pursuant to Section 25218.52, a producer shall register with the producer responsibility organization in accordance with the procedures and requirements established by the producer responsibility organization.(b) No later than 30 days after the effective date of the regulations described in Section 25218.52, a producer, or the producer responsibility organization on behalf of the producer, shall notify the department electronically that the producer has registered with the producer responsibility organization.(c) Upon approval of a producer responsibility plan pursuant to Section 25218.55, a producer shall not sell, offer for sale, import, or distribute a covered product in the state unless all of the following conditions are met:(1) The producer is registered with the producer responsibility organization.(2) The covered product is accounted for in the producer responsibility plan.(3) The department has approved the producer responsibility plan.(d) If an entity does not meet the definition of a producer and is not subject to this article but, at any point, meets the definition of a producer, that entity shall be deemed a producer at that point in time, and shall register with the producer responsibility organization and otherwise comply with the requirements of this article before beginning to sell, offer for sale, import, or distribute a covered product in the state.(e) (1) No later than 180 days after the effective date of the regulations described in Section 25218.52, a producer shall provide to the department, in a form and manner established by the department, both of the following:(A) The producers contact information.(B) A list of covered products and brands of covered products that the producer sells, distributes for sale, imports for sale, or offers for sale in or into the state.(2) A producer shall provide to the department updates to the information described in paragraph (1) on or before January 15 of each year, within 30 days of changes to the contact information or list, and upon the departments request. 25218.54. (a) The producer responsibility organization shall have a governing board consisting of participant producers that represent the diversity of covered products.(b) The producer responsibility organization shall notify the department within 30 calendar days of any of the following:(1) The end of a three-month period during which the producer responsibility organization unsuccessfully attempted to obtain a fee, records, or information from a participant producer.(2) The date that a producer no longer participates in the producer responsibility organizations approved plan.(3) Any instance of noncompliance by a participant producer. (c)The producer responsibility organization may conduct a needs assessment to determine appropriate strategies and investments needed to meet the requirements of this article.(c) The producer responsibility organization shall coordinate with a PRO, as that term is defined in Section 42041 of the Public Resources Code, to ensure that empty packaging and containers for covered products are properly collected and managed either pursuant to this chapter or pursuant to Chapter 3 (commencing with Section 42040) of Part 3 of Division 30 of the Public Resources Code.(d) (1) The producer responsibility organization shall prepare an initial statewide needs assessment designed to determine the necessary steps and investments needed for covered products to achieve the requirements and purposes of this article. The initial needs assessment for covered products shall be completed before the approval of any producer responsibility plan. The producer responsibility organization may select an independent third-party contractor to complete the statewide needs assessment.(2) The producer responsibility organization may prepare more than one needs assessment, with each assessment specific to one or more covered product categories subject to this article, or may prepare one comprehensive needs assessment that includes all covered products subject to this article.(3) The producer responsibility organization shall consult local jurisdictions and other key stakeholders when preparing the needs assessment.(4) The initial statewide needs assessment shall include all of the following:(A) An evaluation of the existing scope and amount of covered products, by covered product category and volume, that are improperly disposed of, properly disposed of through household hazardous waste facilities, and diverted, as applicable, through reuse or recycling, based on data from any existing waste characterization studies conducted by the Department of Resources Recycling and Recovery and including any other data the producer responsibility organization chooses to include.(B) An evaluation of the categories of covered product that contribute to the highest disposal costs.(C) The current reuse, recycling, collection, sorting, and hauling systems in the state and the expanded access and additional reuse, recycling, collection, sorting, and hauling options needed to meet the purposes of this article.(D) The current processes by which containers and packaging for covered products are handled under Chapter 3 (commencing with Section 42040) of Part 3 of Division 30 of the Public Resources Code.(E) Existing state statutory provisions and funding sources related to market development and financial incentives to help achieve the states goals related to reuse, recycling, collection, sorting, hauling, and disposal in state using best management practices.(F) Actions and investments necessary, including, but not limited to, incentive mechanisms, to achieve the purposes of this article.(G) Actions and investments needed to avoid contamination related to reuse and recycling.(H) Whether allowing more than one producer responsibility organization would be beneficial in meeting the requirements of the article.(I) An evaluation of the factors that will be important to successfully implement the malus fees and credits described in Section 25218.58.(J) An evaluation and establishment of appropriate interim targets for the reduction of improper disposal to achieve the purposes of this article.25218.55. (a) Within 12 months of the effective date of the regulations described in Section 25218.52, the producer responsibility organization shall develop and submit a proposed producer responsibility plan to the department, in a form and manner determined by the department.(b) Within six months of receipt of a proposed producer responsibility plan, the department shall approve, approve in part, or disapprove the producer responsibility plan.(c) If the department approves a proposed producer responsibility plan, a revised plan, or a conditionally approved plan, then the department shall notify the producer responsibility organization of the approval. The producer responsibility organization shall implement the approved or conditionally approved plan within 90 days of receipt of the notice of approval, or as otherwise agreed to by the department.(d) If the department disapproves a proposed producer responsibility plan or a revised plan, then the department shall notify the producer responsibility organization of the disapproval and specify the reasons for disapproval. Within 30 days of receipt of the notice of disapproval, the producer responsibility organization shall submit a revised plan.(e) (1) If the department approves a proposed producer responsibility plan or a revised plan in part, then the department shall notify the producer responsibility organization of the partial approval and identify the portions of the producer responsibility plan that do not comply with this article.(2) Within 30 days of receipt of the notice of partial approval, the producer responsibility organization shall submit a revised plan to the department.(3) The producer responsibility organization shall implement the approved parts of the producer responsibility plan within 90 days of receipt of the notice of partial approval, or as otherwise agreed to by the department.(f) Within 30 days of receipt of a revised plan, the department shall approve, approve in part, or disapprove the revised plan.(g) If the department has not approved, approved in part, or disapproved a producer responsibility plan within one year of receipt of the producer responsibility plan, then the producer responsibility plan shall be deemed conditionally approved and the department shall notify the producer responsibility organization of the conditional approval within 30 days.(h) The department may impose additional requirements for any portion of a proposed producer responsibility plan, a revised plan, or a conditionally approved plan that does not comply with this article and that has not been approved. (i) When reviewing a proposed producer responsibility plan, a revised plan, or a conditionally approved plan, the department may solicit information from producers, other agencies or departments, or stakeholders, as the department deems appropriate.(j) The department may review an approved plan or a conditionally approved plan at any time. If the department finds that an approved plan or a conditionally approved plan does not comply with this article, then it may recommend modifications.(k) Any substantial changes to an approved plan shall be submitted to the department for approval.(l) (1) An approved plan and a conditionally approved plan shall be a public record, except that financial, production, or sales data reported by the producer responsibility organization to the department is not a public record for purposes of the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and shall not be open to public inspection. The department may release financial or sales data in summary form only so the information cannot be attributable to a specific entity.(2) The producer responsibility organization may submit to the department a redacted version of the approved plan or conditionally approved plan that removes any proprietary or confidential information.(3) Within 90 days of approval, conditional approval, or revision of a producer responsibility plan, the department shall post on its internet website the producer responsibility plan and a list of all the participant producers covered by the producer responsibility plan. 25218.56. A producer responsibility plan shall meet all of the following criteria:(a) Be designed to ensure the safe and convenient collection and management of covered products at no cost to consumers or local governments.(b) Describe the methods of collection to ensure convenience to customers, including permanent collection sites, temporary collection sites, curbside collection, and collection events.(c) Include as a permanent collection site a local household hazardous waste collection facility, as defined in subdivision (h) of Section 25218.1, that offers in writing to participate in the program.(d) Describe opportunities for collection and management of covered products for residents of the state on weekdays outside of the hours of 8:00 a.m. to 5:00 p.m., and on weekends.(e) Include strategies to ensure that elderly consumers, disabled consumers, and any other consumers with limited mobility, have access to the safe and proper collection and management of covered products, including opportunities to have covered products collected.(f) Describe how the producer responsibility organization will leverage and use existing collection programs and infrastructure.(g) (1) Ensure a decrease in the aggregate percentage of covered products improperly disposed of by 40 percent by 2036, as measured against the baseline determined pursuant to Section 25218.52.(2) The department may set an interim diversion target for the years 2026 to 2035, inclusive.(3) The department may set a diversion target for 2037, and for each year thereafter, that is in excess of the diversion target specified in paragraph (1).(h) (1) Ensure at least 70 percent of California consumers are aware of the program implemented by the producer responsibility organization by 2036.(2) The department may set an interim consumer awareness target for the years 2026 to 2035, inclusive.(3) The department may set a consumer awareness target for 2037, and for each year thereafter, that is in excess of the consumer awareness target specified in paragraph (1).(i) Describe how the producer responsibility organization will incentivize minimizing disposal of covered products, when feasible, including through reuse, recycling, and reducing the amount of covered products being disposed of.(j) Include the contact information of each participant producer.(k) Include a financial section that demonstrates how the producer responsibility organization will comply with Section 25218.58, including, but not limited to, a five-year budget that demonstrates how the producer responsibility organization will comply with subdivision (b) of Section 25218.58.(l) Include a section describing the producer responsibility organizations contingency plan in the event the producer responsibility plan expires or is revoked. The contingency plan shall guarantee that all the contracts, financial data, and any other necessary authority and assets to operate the program shall vest in a trustee approved by the department. The trustee shall operate the most recently approved plan, subject to the direction of the department, until such time as a new producer responsibility plan is approved. Upon the expiration or revocation of a producer responsibility plan, the balance of the producer responsibility organizations operating reserves collected shall be transferred to the control of the trustee within five calendar days. All documents, digital records, contracts, and files related to the operation of the producer responsibility plan shall be transferred to the control of the trustee within five calendar days.(m) Include a section describing a comprehensive statewide education and outreach program designed to educate consumers and promote participation in the program offered by the producer responsibility organization. This shall include a description of efforts to support participation by all California communities, including a description of efforts to communicate with consumers in languages other than English. The comprehensive statewide education and outreach program shall do all of the following:(1) Promote the safe and proper management of a covered product and shall not promote the disposal of a covered product in a manner inconsistent with the services offered by the producer responsibility plan.(2) Include information for consumers on how to properly manage a covered product at the time of disposal and how to avoid improper disposal of a covered product.(3) Include information for consumers about how to reduce the amount of covered products being disposed of and how to participate in reuse opportunities for covered products.(4) Include information related to environmentally preferable purchasing and how to identify less hazardous alternatives. 25218.57. (a) The producer responsibility organization shall review its approved plan at least every five years and determine whether revisions are necessary.(b) If the producer responsibility organization determines that revisions to its approved plan are necessary, the producer responsibility organization shall submit to the department a revised plan for review and approval using the procedures set forth in Section 25218.55. The producer responsibility organization shall submit the revised plan to the department at least 12 months before the review deadline outlined in subdivision (a). The revised plan shall include a cover letter that summarizes the revisions to the producer responsibility plan.(c) If the producer responsibility organization determines that no revisions to the approved plan are necessary, the producer responsibility organization shall send a letter to the department 12 months before the review deadline outlined in subdivision (a) explaining that the producer responsibility organization has reviewed the approved plan and determined that no revisions are needed. The department may disapprove the producer responsibility organizations determination within 30 days of receipt of the letter if the department concludes that the producer responsibility organization cannot implement the objectives of this article without revising the approved plan. If the department disapproves the producer responsibility organizations determination, the department may indicate to the producer responsibility organization which sections of the approved plan need revision and the producer responsibility organization shall submit to the department a revised plan for review and approval, following the procedures set forth in Section 25218.55. The producer responsibility organization shall submit the revised plan pursuant to this subdivision within 60 days of receipt of the departments disapproval.(d) The department may consult with or submit the revised plan to another state agency or department if the department determines it is necessary for making its determination. The duration of time the department takes for this consultation is not included in the time allotted to the department for review pursuant to this section. 25218.58. The producer responsibility organization shall do all of the following:(a) (1) Establish a method for fully funding the producer responsibility organization and implementing an approved producer responsibility plan in a manner that equitably distributes the producer responsibility plans costs among participant producers in a manner that reflects sales volumes, consideration of the cost of managing their specific covered products according to the approved producer responsibility plan, and malus fees or credits pursuant to paragraph (2).(2) The distribution of the producer responsibility plans costs shall incorporate malus fees or credits for participant producers, with adjustments based on any of the following, as applicable:(A) (i) Actions taken by the participant producer to invest in sustainable packaging or product reuse and refill systems that ensure the covered product does not become waste, either through the waste stream or illegal dumping.(ii) Clause (i) does not apply to a packaging product subject to another statewide stewardship or advanced disposal fee-based program for collection or management pursuant to state law.(B) Actions taken by the participant producer, including clear and accurate labeling and instructions, that improve consumer behavior related to sorting and proper disposal of the covered product.(C) Actions taken by the participant producer to reduce the relative toxicity, ignitability, corrosiveness, or reactivity of the covered product.(b) (1) Operate on a budget that establishes a funding level sufficient to operate the producer responsibility organization in a prudent and responsible manner. The budget shall demonstrate how the producer responsibility organizations estimated revenues will cover all of its budgeted costs for each cost category. Budgeted cost categories shall include, but are not limited to, administrative costs, capital costs, and a reserve.(2) Administrative costs shall include the actual and reasonable regulatory costs incurred by the department, which includes full personnel costs, to implement and enforce this article, consistent with the regulations described in Section 25218.52. For purposes of this paragraph, producer responsibility organization implementation begins upon approval of the producer responsibility organizations producer responsibility plan, except that costs shall include actual regulatory development costs and other startup costs incurred before a producer responsibility plans submittal and approval.(3) The reserve shall include funds to operate the producer responsibility organization if there are unexpected events, losses of income, or large unbudgeted expenses. The reserve shall also protect the infrastructure that the producer responsibility organization relies on in its producer responsibility plan during any lapse in producer participation during the life of the program. The reserve cost category shall include a reserve level amount description justifying the reserve level amount indicated. The producer responsibility organization shall maintain reserve funds sufficient to operate the producer responsibility plan for not less than six months. When a new producer responsibility organization is approved by the department, the producer responsibility organization shall establish its reserve and maintain the required reserve fund balance by the end of the second year of producer responsibility plan operation. If the producer responsibility organizations producer responsibility plan expires or is revoked, the reserve balance shall be transferred to a successor producer responsibility organization or a trustee pursuant to the portion of the producer responsibility plan described in subdivision (f) of Section 25218.56.(c) On a schedule determined by the department, pay the department fees to cover the departments regulatory costs, as described in Section 25218.60.(d) Establish a process by which the financial activities of the producer responsibility organization that are related to implementation of the producer responsibility plan will be subject to an independent audit consistent with generally accepted accounting principles and pursuant to Section 25218.63.(e) Provide written certification by an authorized representative of the producer responsibility organization that, at the time of submission to the department, all aspects of the producer responsibility plan are in compliance with all applicable state and federal laws and regulations.(f) Have adequate financial responsibility and financial controls in place, including fraud prevention measures, to ensure proper management of funds.25218.59. Each participant producer shall, through the producer responsibility organization, pay all administrative and operational costs associated with establishing and implementing the producer responsibility organizations approved plan, including the cost of the collection, transportation, and safe and proper management of covered products, including covered products that have been illegally dumped.25218.60. (a) Within four months of the effective date of the regulations described in Section 25218.52, the department shall notify the producer responsibility organization of the estimated regulatory costs for the department and the criteria for the costs specified in the regulations. Those costs shall include the costs associated with developing the regulations and other department activities that occur before a producer responsibility plans submittal and approval, including, but not limited to, full personnel costs related to implementing and enforcing this article. The costs shall not exceed the departments reasonable regulatory costs to implement and enforce this article.(b) The department shall deposit all moneys received from the producer responsibility organization pursuant to this section into the Household Hazardous Waste Producer Responsibility Fund, which is hereby established in the State Treasury.(c) Upon appropriation by the Legislature, moneys in the Household Hazardous Waste Producer Responsibility Fund shall be expended by the department to implement and enforce this article and to reimburse any outstanding loans made from other funds used to finance the development of the regulations and the startup costs of the departments activities pursuant to this article.(d) The moneys in the Household Hazardous Waste Producer Responsibility Fund shall only be expended for those purposes described in subdivision (c). 25218.61. (a) If the producer responsibility plan relies on a local jurisdiction to collect or manage a covered product, or to otherwise comply with this article, then the producer responsibility organization shall reimburse the local jurisdiction for costs associated with the collection and management of the covered product, including, but not limited to, the cost of providing supplies for the collection of, transportation, and disposal of covered materials, including the jurisdictions labor and administrative costs based on the proportion of covered to noncovered products collected at the facility.(b) Reimbursement costs pursuant to subdivision (a) shall be limited to the actual costs of, supplies, transportation, and management of a covered product, including the costs to reimburse local jurisdictions to collect and manage covered products that have been illegally dumped.25218.62. (a) The producer responsibility organization shall keep board minutes, books, and records that clearly reflect the activities and transactions of the producer responsibility organization for a period of not less than five years.(b) A producer and the producer responsibility organization shall do both of the following:(1) Upon request, provide the department with reasonable and timely access, as determined by the department, to its facilities and operations, as necessary to determine compliance with this article.(2) Within 14 days of a request from the department, provide the department with relevant records, as determined by the department, necessary to determine compliance with this article.(c) The department may audit the producer responsibility organization annually.(d) All reports and records provided to the department pursuant to this article shall be provided under penalty of perjury.(e) The failure of the producer responsibility organization, a participant producer, or their respective agent who holds records to produce documents or data that is requested by the department, required to be collected or generated to carry out operation of the producer responsibility plan in the form and manner determined by the department as part of a department audit, or review of a third-party audit, shall constitute a violation of this article.(f) The department may impose administrative civil penalties pursuant to Section 25218.68 on a producer or producer responsibility organization that fails to provide the department with the access required pursuant to this section.25218.63. (a) The producer responsibility organization shall retain an independent certified public accountant, certified in the United States, to annually audit the accounting books of the producer responsibility organization. The department shall review the independent certified public accountants audit for compliance with this article and consistency with the producer responsibility organizations approved producer responsibility plan and the annual report required by Section 25218.64. After the department conducts its own review, the department shall notify the producer responsibility organization of any conduct or practice that does not comply with this article or of any inconsistencies identified in the review. The producer responsibility organization may obtain copies of the departments review, including proprietary information contained in the departments review, upon request. The producer or producer responsibility organization may request the department withhold from disclosure confidential proprietary information to the extent allowed under Section 1040 of the Evidence Code and the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).(b) The items submitted to the department for its review of the independent audit shall include all of the following:(1) Financial statements audited in accordance with generally accepted accounting principles.(2) An audit of the producer responsibility organizations compliance with this article.(3) An audit of the producer responsibility organizationss adherence to, execution of, and consistency with its approved plan.(c) The producer responsibility organization shall include the independent audit in its annual report submitted to the department pursuant to Section 25218.64 commencing within 18 months of the producer responsibility plans approval by the department 25218.64. On or before January 1 of each year, the producer responsibility organization shall submit to the department, and make publicly available, an annual report, in a format prescribed by the department, that includes, at minimum, all of the following information for the preceding calendar year, unless otherwise specified:(a) The producer responsibility organizations costs, according to the cost categories established in the producer responsibility plan, and revenues.(b) A summary of any anticipated changes to allocations in cost categories for the next calendar year.(c) Any changes to the distribution of costs to the participant producers.(d) Updated contact information for participant producers.(e) An estimate of the quantity of covered products sold in or into the state by participant producers, as determined by the best available commercial data.(f) A summary of efforts made as part of the comprehensive statewide education and outreach program, as required by subdivision (f) of Section 25218.56, including the producer responsibility organizations evaluation of the effectiveness of the program.(g) Recommendations for any future proposed substantial changes to the producer responsibility plan.(h) Any other information required by the regulations described in Section 25218.52. 25218.65. (a) No later than 120 days after the date the department receives an annual report pursuant to Section 25218.64, the department shall notify the producer responsibility organization if the annual report is compliant or noncompliant.(b) If the department determines that the annual report is noncompliant due to failure to meet the requirements of this article, the department may require the resubmittal of the annual report and take enforcement action.(c) The department may consult with or submit the annual report to a state agency or department if it determines it is necessary to determine the annual reports compliance or noncompliance. 25218.66. A retailer, dealer, importer, or distributor shall not sell, distribute, offer for sale, or import a covered product in or into the state unless the producer of the covered product is listed as a compliant producer pursuant to Section 25218.67 or has received a certification letter described in subdivision (e) of Section 25218.67.25218.67. (a) Within 12 months of the effective date of the regulations described in Section 25218.52, and on or before July 1 of each year thereafter, the department shall publish on the departments internet website a list of the names of producers that are compliant with this article. The department shall list, as appropriate, the reported brands of covered products for each producer.(b) A retailer, importer, or distributor shall monitor the departments internet website to determine if a producer, brand, or covered product is in compliance with this article.(c) Notwithstanding any other provision of this article, upon identification of a producer that is not registered with the producer responsibility organization with an approved producer responsibility plan, the department shall issue a notice of noncompliance to the producer.(d) If the department determines a producer is not in compliance with this article, the department shall remove the producer and its brands of covered products from the compliance list on its internet website.(e) The department shall provide a certification letter to a producer that is not listed on the departments internet website as a compliant producer, but that has demonstrated compliance with this article to the department. The certification letter shall state that the producer is in compliance with this article. The department may update the compliance list on its website. 25218.68. (a) The department may impose a civil penalty on any producer or stewardship organization that is in violation of this article of up to the following amounts:(1) Ten thousand dollars ($10,000) per day.(2) Fifty thousand dollars ($50,000) per day if the violation is intentional or knowing.(b) In assessing or reviewing the amount of a civil penalty imposed pursuant to subdivision (a) for a violation of this article, the department or the court shall consider all of the following:(1) The nature and extent of the violation.(2) The number and severity of the violation or violations.(3) The economic effect of the penalty on the violator.(4) Whether the violator took good faith measures to comply with this article and the period of time over which these noncompliant actions were taken.(5) The willfulness of the violators misconduct.(6) The deterrent effect that the imposition of the penalty would have on both the violator and the regulated community.(7) Any other factor that justice may require.(c) Upon a written finding that a producer responsibility organization, producer, importer, or any other party regulated pursuant to this article has not met a material requirement of this article, in addition to any other penalties authorized pursuant to this article, the department may take one or all of the following actions to ensure compliance with the requirements of this article, after affording the producer responsibility organization, producer, importer, or any other party regulated pursuant to this article, an opportunity to respond to or rebut the finding:(1) Revoke the producer responsibility organizations approved producer responsibility plan or require the producer responsibility organization to resubmit the producer responsibility plan, in whole or in part.(2) Require additional reporting relating to compliance with the material requirements of this article that were not met.(3) Approve a producer responsibility plan submitted by another producer responsibility organization.(d) The department shall deposit all penalties collected pursuant to this section into the Household Hazardous Waste Products Penalty Account, which is hereby created in the Household Hazardous Waste Producer Responsibility Fund. Upon appropriation by the Legislature, moneys in the Household Hazardous Waste Products Penalty Account shall be available for expenditure by the department for activities related to the collection, reuse, and recycling of covered products, grants for related purposes, and the administration and enforcement of this article.(e) The Administrative Adjudication Bill of Rights (Article 6 (commencing with Section 11425.10) of Chapter 4.5 of Part 1 of Division 3 of Title 2 of the Government Code) applies to hearings conducted pursuant to this article and mandates minimum due process requirements. 25218.69. (a) After the time for judicial review under Section 11523 of the Government Code has expired, the department may apply to the small claims court or superior court, depending on the jurisdictional amount and any other remedy sought, in the county where the penalties, restitution, or other remedy was imposed by the department, for a judgment to collect any unpaid civil penalties or restitution or to enforce any other remedy provided by this article. The application, which shall include a certified copy of the final agency order or decision, shall constitute a sufficient showing to warrant the issuance of the judgment. The court clerk shall enter the judgment immediately in conformity with the application. The judgment so entered shall have the same force and effect as, and shall be subject to all laws relating to, a judgment in a civil action and may be enforced in the same manner as any other judgment of the court. The court shall make enforcement of the judgment a priority.(b) If a person has engaged in or is about to engage in an act, practice, or omission that constitutes, or will constitute, a violation of this article, the Attorney General may, at the request of the director of the department or upon the Attorney Generals own determination, bring an action in superior court for an order enjoining the act, practice, or omission. The order may require remedial measures and direct compliance with this article. Upon a showing that the person has engaged in or is about to engage in that act, practice, or omission, the superior court may issue a permanent or temporary injunction, restraining order, or other order, as appropriate. 25218.70. In support of this article, the Department of Resources Recycling and Recovery shall include both of the following in updates to the applicable waste characterization study:(a) The amount of covered products, by covered product category, that was improperly disposed of and observed in the waste characterization study.(b) In an appendix, the amount of covered products, by covered product category, properly collected and managed by a household hazardous waste collection facility.25218.71. (a) Except as provided in subdivision (b), an action that is taken by a producer or producer responsibility organization 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), the Unfair Practices Act (Chapter 4 (commencing with Section 17000) of Part 2 of Division 7 of the Business and Professions Code), or the Unfair Competition Law (Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code) to the extent the producer or producer responsibility organization is exercising authority pursuant to this article.(b) Subdivision (a) applies to all of the following actions taken by a producer responsibility organization:(1) The creation, implementation, or management of a producer responsibility plan approved or conditionally approved by the department pursuant to this article and the determination of the types or quantities of covered products recycled or otherwise managed pursuant to the producer responsibility plan.(2) The determination of the cost and structure of an approved producer responsibility plan.(3) The establishment, administration, collection, or disbursement of a charge associated with funding the implementation of this article.(c) Subdivision (a) does not apply to an agreement that does any of the following:(1) Fixes a price of or for covered products.(2) Fixes the output or production of covered products.(3) Restricts the geographic area in which, or customers to whom, covered products will be sold.SEC. 3. The Legislature finds and declares that Section 2 of this act, which adds Sections 25218.55 and 25218.63 to the Health and Safety Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:In order to ensure the effective solid waste management of, and viable markets for, products that contain household hazardous waste, it is necessary to protect the proprietary information of producers, retailers, wholesalers, and solid waste enterprises by keeping confidential the financial, production, and sales data reported by those entities under Section 2 of this act.SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. The Legislature finds and declares all of the following:(a) Thousands of household products that are sold in the state contain substances designated as hazardous under state or federal law.(b) Leftover household products, known as household hazardous waste, are regulated through a requirement that municipal solid waste management entities include provisions in solid waste implementation plans for the management and diversion of unregulated hazardous waste.(c) Californias hazardous waste laws and regulations establish specific requirements for the management of hazardous waste, including a prohibition on disposal in landfills.(d) The Department of Resources Recycling and Recovery has supported the construction of household hazardous waste facilities and management by offering household hazardous waste grants to local governments, and those grants are currently limited to $1,500,000 annually when a single facility, such as the one in progress in the County of Sonoma, will cost between $13,000,000 and $16,000,000.(e) California already has extended producer responsibility programs for some household hazardous waste products, including mercury thermostats, pharmaceuticals, sharps and needles, and paint products.(f) The Statewide Commission on Recycling Markets and Curbside Recycling convened from July 2020 to June 2022, and its first recommendation was to create a household hazardous waste extended producer responsibility program.(g) According to the Department of Toxic Substances Controls Hazardous Waste Management Report, released November 2023, The previous waste reduction efforts were discontinued because they did not produce reductions large enough to be seen as effective.(h) The cost of managing household hazardous waste for local government ratepayers is extremely high and yet proper disposal is still inconvenient for the public. Extended producer responsibility is used for a wide variety of household hazardous waste products in Canada and other countries for products like antifreeze, pesticides, flammables, radioactive smoke alarms, lighting, and others.(i) To reduce improper disposal of household hazardous waste, reduce the financial burden on local jurisdictions and taxpayers, reduce the cost of the overall system of managing household hazardous waste, improve the convenience of proper disposal to the public, and lessen the environmental and public health risks posed by improperly disposed household hazardous waste, the state shall implement a program to require the manufacturers of household hazardous waste products to create a producer responsibility organization to improve collection and to cover the costs of managing household hazardous waste.
SECTION 1. The Legislature finds and declares all of the following:(a) Thousands of household products that are sold in the state contain substances designated as hazardous under state or federal law.(b) Leftover household products, known as household hazardous waste, are regulated through a requirement that municipal solid waste management entities include provisions in solid waste implementation plans for the management and diversion of unregulated hazardous waste.(c) Californias hazardous waste laws and regulations establish specific requirements for the management of hazardous waste, including a prohibition on disposal in landfills.(d) The Department of Resources Recycling and Recovery has supported the construction of household hazardous waste facilities and management by offering household hazardous waste grants to local governments, and those grants are currently limited to $1,500,000 annually when a single facility, such as the one in progress in the County of Sonoma, will cost between $13,000,000 and $16,000,000.(e) California already has extended producer responsibility programs for some household hazardous waste products, including mercury thermostats, pharmaceuticals, sharps and needles, and paint products.(f) The Statewide Commission on Recycling Markets and Curbside Recycling convened from July 2020 to June 2022, and its first recommendation was to create a household hazardous waste extended producer responsibility program.(g) According to the Department of Toxic Substances Controls Hazardous Waste Management Report, released November 2023, The previous waste reduction efforts were discontinued because they did not produce reductions large enough to be seen as effective.(h) The cost of managing household hazardous waste for local government ratepayers is extremely high and yet proper disposal is still inconvenient for the public. Extended producer responsibility is used for a wide variety of household hazardous waste products in Canada and other countries for products like antifreeze, pesticides, flammables, radioactive smoke alarms, lighting, and others.(i) To reduce improper disposal of household hazardous waste, reduce the financial burden on local jurisdictions and taxpayers, reduce the cost of the overall system of managing household hazardous waste, improve the convenience of proper disposal to the public, and lessen the environmental and public health risks posed by improperly disposed household hazardous waste, the state shall implement a program to require the manufacturers of household hazardous waste products to create a producer responsibility organization to improve collection and to cover the costs of managing household hazardous waste.
SECTION 1. The Legislature finds and declares all of the following:
### SECTION 1.
(a) Thousands of household products that are sold in the state contain substances designated as hazardous under state or federal law.
(b) Leftover household products, known as household hazardous waste, are regulated through a requirement that municipal solid waste management entities include provisions in solid waste implementation plans for the management and diversion of unregulated hazardous waste.
(c) Californias hazardous waste laws and regulations establish specific requirements for the management of hazardous waste, including a prohibition on disposal in landfills.
(d) The Department of Resources Recycling and Recovery has supported the construction of household hazardous waste facilities and management by offering household hazardous waste grants to local governments, and those grants are currently limited to $1,500,000 annually when a single facility, such as the one in progress in the County of Sonoma, will cost between $13,000,000 and $16,000,000.
(e) California already has extended producer responsibility programs for some household hazardous waste products, including mercury thermostats, pharmaceuticals, sharps and needles, and paint products.
(f) The Statewide Commission on Recycling Markets and Curbside Recycling convened from July 2020 to June 2022, and its first recommendation was to create a household hazardous waste extended producer responsibility program.
(g) According to the Department of Toxic Substances Controls Hazardous Waste Management Report, released November 2023, The previous waste reduction efforts were discontinued because they did not produce reductions large enough to be seen as effective.
(h) The cost of managing household hazardous waste for local government ratepayers is extremely high and yet proper disposal is still inconvenient for the public. Extended producer responsibility is used for a wide variety of household hazardous waste products in Canada and other countries for products like antifreeze, pesticides, flammables, radioactive smoke alarms, lighting, and others.
(i) To reduce improper disposal of household hazardous waste, reduce the financial burden on local jurisdictions and taxpayers, reduce the cost of the overall system of managing household hazardous waste, improve the convenience of proper disposal to the public, and lessen the environmental and public health risks posed by improperly disposed household hazardous waste, the state shall implement a program to require the manufacturers of household hazardous waste products to create a producer responsibility organization to improve collection and to cover the costs of managing household hazardous waste.
SEC. 2. Article 10.8.5 (commencing with Section 25218.50) is added to Chapter 6.5 of Division 20 of the Health and Safety Code, to read: Article 10.8.5. Household Hazardous Waste Producer Responsibility Act25218.50. (a) This article shall be known, and may be cited, as the Household Hazardous Waste Producer Responsibility Act.(b) The purpose of this article is to provide for the safe and proper management of household hazardous waste, which poses a threat to public health and safety, is costly for Californias local governments, and may cause significant damage to the environment when managed improperly.25218.51. For purposes of this article, the following definitions apply:(a) (1) Approved plan means a producer responsibility plan that has been approved by the department pursuant to Section 25218.55 and that has not been revoked by the department pursuant to Section 25218.68.(2) A conditionally approved plan is an approved plan, except as used in Section 25218.55.(3) A partially approved plan is not an approved plan.(b) Brand means a name, symbol, word, or mark that identifies a covered product rather than its components, and attributes the covered product to the owner or licensee of the brand as the producer.(c) Consumer means a purchaser, owner, or lessee of a covered product, including a person, business, corporation, limited partnership, nonprofit organization, or governmental entity.(d) Consumer product means a commodity that is intended for use for personal, family, or household purposes, or that is present in the same form, concentration, and quantity as a product prepackaged for distribution to a consumer for personal, family, or household purposes, and is handled at, and found in, a retail establishment and intended for direct sale to the end user.(e) Contact information means a name, physical address, mailing address, email address, and telephone number.(f) (1) Covered product means a consumer product that is one or more of the following:(A) A pesticide, as defined in Section 12753 of the Food and Agricultural Code.(B) An aerosol.(C) An oxidizer.(D) An adhesive, glue, cleaner, degreaser, or solvent, which adhesive or glue, which is ignitable, toxic, corrosive, or reactive.(E) A designated product, as defined in Section 108952, which is ignitable, toxic, or reactive.(E)A(F) An automotive product that is a lubricant, oil, antifreeze, cleaner, wax, or degreaser, which is an automotive product used for purposes of maintaining the function of a motor vehicle, as defined in Section 670 of the Vehicle Code.(F)(G) A compressed gas, including, but not limited to, propane, helium, and oxygen.(G)(H) A lithium battery.(H)(I) A product containing asbestos, mercury, or polychlorinated biphenyls.(I)(J) An electronic delivery system of a nicotine or non-nicotine aerosolized or vaporized solution to a person, including electronic cigarettes and vape pens.(J)(K) A product that is ignitable, toxic, corrosive, or reactive, that is added by the department via the assessment described in subdivision (d) of Section 25218.52, and that is not exempted.(2) Covered product does not include any of the following:(A) A product subject to another statewide stewardship or advanced disposal fee-based program for collection or management pursuant to state law.(B)A health and beauty product.(B) Cosmetics, drugs, or food.(C) Personal care items, including, but not limited to, hand soap, shampoo, or toothpaste.(C)(D) A product otherwise listed in paragraph (1) for which the producer demonstrates to the department that the product meets both of the following criteria:(i) The product is not ignitable, toxic, corrosive, or reactive.(ii) The product may safely be collected through a residential recycling collection service, residential organic waste collection, or residential solid waste collection.(D)(E) A parasiticide used to treat, or administered to, companion animals and that is regulated by the United States Environmental Protection Agency under the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. Sec. 136 et seq.).(F) A product subject to alternative management standards pursuant to Article 11.2 (commencing with Section 25230).(g) Department means the Department of Toxic Substances Control.(h) Importer means either of the following:(1) A person qualifying as an importer of record for purposes of Section 1484(a)(2)(B) of Title 19 of the United States Code with regard to the import of a covered product that is sold, distributed for sale, or offered for sale in or into the state that was manufactured or assembled by a company outside of the United States.(2) A person importing into the state for sale, distributing for sale, or offering for sale in the state a covered product that was manufactured or assembled by a company physically located outside of the state.(i) Participant producer means a producer that is registered with the producer responsibility organization.(j) (1) Producer means a person who manufactures a covered product and who sells, offers for sale, or distributes a covered product into the state under the persons own name or brand.(2) If there is no person in the state who is the producer for purposes of paragraph (1), the producer of the covered product is the owner or exclusive licensee of a brand under which the covered product is sold or distributed into the state. For purposes of this subdivision, an exclusive licensee is a person holding the exclusive right to use a brand in the state in connection with the manufacture, sale, or distribution for sale in or into the state of the covered product.(3) If there is no person in the state who is the producer for purposes of paragraph (1) or (2), the producer of the covered product is the person that imports the covered product into the state for sale, distribution, or installation.(4) If there is no person in the state who is the producer for purposes of paragraph (1), (2), or (3), the producer of the covered product is the distributor, retailer, dealer, or wholesaler who sells the product in or into the state.(5) For purposes of this article, the sale of a covered product shall be deemed to occur in the state if the covered product is delivered to the consumer in the state.(k) Producer responsibility organization means an organization that is exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986, is formed for the purpose of implementing a plan to meet the requirements of this article, and is approved by the department . department.(l) Producer responsibility plan means the plan developed by a producer responsibility organization for the collection, transportation, and the safe and proper management of covered products pursuant to this article and submitted to the department for approval pursuant to Section 25218.55.(m) Sell or sales has the same meaning as set forth in Section 6006 of the Revenue and Taxation Code.25218.52. (a) (1) Except as provided in Section 25218.55, the department shall adopt, amend, or repeal regulations to implement this article, in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The department shall not adopt regulations pursuant to this section with an effective date earlier than July 1, 2028.(2) As part of the regulations described in this section, the department shall establish a baseline amount of covered products improperly disposed of and shall measure progress towards meeting the performance-based standards in Section 25218.56.(b) On or before January 1, 2027, the department shall establish and post on its internet website a list of covered product categories.(c) On or before January 1, 2028, the department shall approve one, and only one, producer responsibility organization that meets the requirements of this article.(d) On or before January 1, 2032, and every five years after, the department may conduct an assessment to identify household hazardous waste that is not included in the producer responsibility plan and adjust the covered product categories, if needed, to achieve the purpose of this article. The department may select an independent third-party contractor to complete the assessment. The department shall make its determination and rationale available for public review. 25218.53. (a) No later than 90 days after the departments approval of the producer responsibility organization, pursuant to Section 25218.52, a producer shall register with the producer responsibility organization in accordance with the procedures and requirements established by the producer responsibility organization.(b) No later than 30 days after the effective date of the regulations described in Section 25218.52, a producer, or the producer responsibility organization on behalf of the producer, shall notify the department electronically that the producer has registered with the producer responsibility organization.(c) Upon approval of a producer responsibility plan pursuant to Section 25218.55, a producer shall not sell, offer for sale, import, or distribute a covered product in the state unless all of the following conditions are met:(1) The producer is registered with the producer responsibility organization.(2) The covered product is accounted for in the producer responsibility plan.(3) The department has approved the producer responsibility plan.(d) If an entity does not meet the definition of a producer and is not subject to this article but, at any point, meets the definition of a producer, that entity shall be deemed a producer at that point in time, and shall register with the producer responsibility organization and otherwise comply with the requirements of this article before beginning to sell, offer for sale, import, or distribute a covered product in the state.(e) (1) No later than 180 days after the effective date of the regulations described in Section 25218.52, a producer shall provide to the department, in a form and manner established by the department, both of the following:(A) The producers contact information.(B) A list of covered products and brands of covered products that the producer sells, distributes for sale, imports for sale, or offers for sale in or into the state.(2) A producer shall provide to the department updates to the information described in paragraph (1) on or before January 15 of each year, within 30 days of changes to the contact information or list, and upon the departments request. 25218.54. (a) The producer responsibility organization shall have a governing board consisting of participant producers that represent the diversity of covered products.(b) The producer responsibility organization shall notify the department within 30 calendar days of any of the following:(1) The end of a three-month period during which the producer responsibility organization unsuccessfully attempted to obtain a fee, records, or information from a participant producer.(2) The date that a producer no longer participates in the producer responsibility organizations approved plan.(3) Any instance of noncompliance by a participant producer. (c)The producer responsibility organization may conduct a needs assessment to determine appropriate strategies and investments needed to meet the requirements of this article.(c) The producer responsibility organization shall coordinate with a PRO, as that term is defined in Section 42041 of the Public Resources Code, to ensure that empty packaging and containers for covered products are properly collected and managed either pursuant to this chapter or pursuant to Chapter 3 (commencing with Section 42040) of Part 3 of Division 30 of the Public Resources Code.(d) (1) The producer responsibility organization shall prepare an initial statewide needs assessment designed to determine the necessary steps and investments needed for covered products to achieve the requirements and purposes of this article. The initial needs assessment for covered products shall be completed before the approval of any producer responsibility plan. The producer responsibility organization may select an independent third-party contractor to complete the statewide needs assessment.(2) The producer responsibility organization may prepare more than one needs assessment, with each assessment specific to one or more covered product categories subject to this article, or may prepare one comprehensive needs assessment that includes all covered products subject to this article.(3) The producer responsibility organization shall consult local jurisdictions and other key stakeholders when preparing the needs assessment.(4) The initial statewide needs assessment shall include all of the following:(A) An evaluation of the existing scope and amount of covered products, by covered product category and volume, that are improperly disposed of, properly disposed of through household hazardous waste facilities, and diverted, as applicable, through reuse or recycling, based on data from any existing waste characterization studies conducted by the Department of Resources Recycling and Recovery and including any other data the producer responsibility organization chooses to include.(B) An evaluation of the categories of covered product that contribute to the highest disposal costs.(C) The current reuse, recycling, collection, sorting, and hauling systems in the state and the expanded access and additional reuse, recycling, collection, sorting, and hauling options needed to meet the purposes of this article.(D) The current processes by which containers and packaging for covered products are handled under Chapter 3 (commencing with Section 42040) of Part 3 of Division 30 of the Public Resources Code.(E) Existing state statutory provisions and funding sources related to market development and financial incentives to help achieve the states goals related to reuse, recycling, collection, sorting, hauling, and disposal in state using best management practices.(F) Actions and investments necessary, including, but not limited to, incentive mechanisms, to achieve the purposes of this article.(G) Actions and investments needed to avoid contamination related to reuse and recycling.(H) Whether allowing more than one producer responsibility organization would be beneficial in meeting the requirements of the article.(I) An evaluation of the factors that will be important to successfully implement the malus fees and credits described in Section 25218.58.(J) An evaluation and establishment of appropriate interim targets for the reduction of improper disposal to achieve the purposes of this article.25218.55. (a) Within 12 months of the effective date of the regulations described in Section 25218.52, the producer responsibility organization shall develop and submit a proposed producer responsibility plan to the department, in a form and manner determined by the department.(b) Within six months of receipt of a proposed producer responsibility plan, the department shall approve, approve in part, or disapprove the producer responsibility plan.(c) If the department approves a proposed producer responsibility plan, a revised plan, or a conditionally approved plan, then the department shall notify the producer responsibility organization of the approval. The producer responsibility organization shall implement the approved or conditionally approved plan within 90 days of receipt of the notice of approval, or as otherwise agreed to by the department.(d) If the department disapproves a proposed producer responsibility plan or a revised plan, then the department shall notify the producer responsibility organization of the disapproval and specify the reasons for disapproval. Within 30 days of receipt of the notice of disapproval, the producer responsibility organization shall submit a revised plan.(e) (1) If the department approves a proposed producer responsibility plan or a revised plan in part, then the department shall notify the producer responsibility organization of the partial approval and identify the portions of the producer responsibility plan that do not comply with this article.(2) Within 30 days of receipt of the notice of partial approval, the producer responsibility organization shall submit a revised plan to the department.(3) The producer responsibility organization shall implement the approved parts of the producer responsibility plan within 90 days of receipt of the notice of partial approval, or as otherwise agreed to by the department.(f) Within 30 days of receipt of a revised plan, the department shall approve, approve in part, or disapprove the revised plan.(g) If the department has not approved, approved in part, or disapproved a producer responsibility plan within one year of receipt of the producer responsibility plan, then the producer responsibility plan shall be deemed conditionally approved and the department shall notify the producer responsibility organization of the conditional approval within 30 days.(h) The department may impose additional requirements for any portion of a proposed producer responsibility plan, a revised plan, or a conditionally approved plan that does not comply with this article and that has not been approved. (i) When reviewing a proposed producer responsibility plan, a revised plan, or a conditionally approved plan, the department may solicit information from producers, other agencies or departments, or stakeholders, as the department deems appropriate.(j) The department may review an approved plan or a conditionally approved plan at any time. If the department finds that an approved plan or a conditionally approved plan does not comply with this article, then it may recommend modifications.(k) Any substantial changes to an approved plan shall be submitted to the department for approval.(l) (1) An approved plan and a conditionally approved plan shall be a public record, except that financial, production, or sales data reported by the producer responsibility organization to the department is not a public record for purposes of the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and shall not be open to public inspection. The department may release financial or sales data in summary form only so the information cannot be attributable to a specific entity.(2) The producer responsibility organization may submit to the department a redacted version of the approved plan or conditionally approved plan that removes any proprietary or confidential information.(3) Within 90 days of approval, conditional approval, or revision of a producer responsibility plan, the department shall post on its internet website the producer responsibility plan and a list of all the participant producers covered by the producer responsibility plan. 25218.56. A producer responsibility plan shall meet all of the following criteria:(a) Be designed to ensure the safe and convenient collection and management of covered products at no cost to consumers or local governments.(b) Describe the methods of collection to ensure convenience to customers, including permanent collection sites, temporary collection sites, curbside collection, and collection events.(c) Include as a permanent collection site a local household hazardous waste collection facility, as defined in subdivision (h) of Section 25218.1, that offers in writing to participate in the program.(d) Describe opportunities for collection and management of covered products for residents of the state on weekdays outside of the hours of 8:00 a.m. to 5:00 p.m., and on weekends.(e) Include strategies to ensure that elderly consumers, disabled consumers, and any other consumers with limited mobility, have access to the safe and proper collection and management of covered products, including opportunities to have covered products collected.(f) Describe how the producer responsibility organization will leverage and use existing collection programs and infrastructure.(g) (1) Ensure a decrease in the aggregate percentage of covered products improperly disposed of by 40 percent by 2036, as measured against the baseline determined pursuant to Section 25218.52.(2) The department may set an interim diversion target for the years 2026 to 2035, inclusive.(3) The department may set a diversion target for 2037, and for each year thereafter, that is in excess of the diversion target specified in paragraph (1).(h) (1) Ensure at least 70 percent of California consumers are aware of the program implemented by the producer responsibility organization by 2036.(2) The department may set an interim consumer awareness target for the years 2026 to 2035, inclusive.(3) The department may set a consumer awareness target for 2037, and for each year thereafter, that is in excess of the consumer awareness target specified in paragraph (1).(i) Describe how the producer responsibility organization will incentivize minimizing disposal of covered products, when feasible, including through reuse, recycling, and reducing the amount of covered products being disposed of.(j) Include the contact information of each participant producer.(k) Include a financial section that demonstrates how the producer responsibility organization will comply with Section 25218.58, including, but not limited to, a five-year budget that demonstrates how the producer responsibility organization will comply with subdivision (b) of Section 25218.58.(l) Include a section describing the producer responsibility organizations contingency plan in the event the producer responsibility plan expires or is revoked. The contingency plan shall guarantee that all the contracts, financial data, and any other necessary authority and assets to operate the program shall vest in a trustee approved by the department. The trustee shall operate the most recently approved plan, subject to the direction of the department, until such time as a new producer responsibility plan is approved. Upon the expiration or revocation of a producer responsibility plan, the balance of the producer responsibility organizations operating reserves collected shall be transferred to the control of the trustee within five calendar days. All documents, digital records, contracts, and files related to the operation of the producer responsibility plan shall be transferred to the control of the trustee within five calendar days.(m) Include a section describing a comprehensive statewide education and outreach program designed to educate consumers and promote participation in the program offered by the producer responsibility organization. This shall include a description of efforts to support participation by all California communities, including a description of efforts to communicate with consumers in languages other than English. The comprehensive statewide education and outreach program shall do all of the following:(1) Promote the safe and proper management of a covered product and shall not promote the disposal of a covered product in a manner inconsistent with the services offered by the producer responsibility plan.(2) Include information for consumers on how to properly manage a covered product at the time of disposal and how to avoid improper disposal of a covered product.(3) Include information for consumers about how to reduce the amount of covered products being disposed of and how to participate in reuse opportunities for covered products.(4) Include information related to environmentally preferable purchasing and how to identify less hazardous alternatives. 25218.57. (a) The producer responsibility organization shall review its approved plan at least every five years and determine whether revisions are necessary.(b) If the producer responsibility organization determines that revisions to its approved plan are necessary, the producer responsibility organization shall submit to the department a revised plan for review and approval using the procedures set forth in Section 25218.55. The producer responsibility organization shall submit the revised plan to the department at least 12 months before the review deadline outlined in subdivision (a). The revised plan shall include a cover letter that summarizes the revisions to the producer responsibility plan.(c) If the producer responsibility organization determines that no revisions to the approved plan are necessary, the producer responsibility organization shall send a letter to the department 12 months before the review deadline outlined in subdivision (a) explaining that the producer responsibility organization has reviewed the approved plan and determined that no revisions are needed. The department may disapprove the producer responsibility organizations determination within 30 days of receipt of the letter if the department concludes that the producer responsibility organization cannot implement the objectives of this article without revising the approved plan. If the department disapproves the producer responsibility organizations determination, the department may indicate to the producer responsibility organization which sections of the approved plan need revision and the producer responsibility organization shall submit to the department a revised plan for review and approval, following the procedures set forth in Section 25218.55. The producer responsibility organization shall submit the revised plan pursuant to this subdivision within 60 days of receipt of the departments disapproval.(d) The department may consult with or submit the revised plan to another state agency or department if the department determines it is necessary for making its determination. The duration of time the department takes for this consultation is not included in the time allotted to the department for review pursuant to this section. 25218.58. The producer responsibility organization shall do all of the following:(a) (1) Establish a method for fully funding the producer responsibility organization and implementing an approved producer responsibility plan in a manner that equitably distributes the producer responsibility plans costs among participant producers in a manner that reflects sales volumes, consideration of the cost of managing their specific covered products according to the approved producer responsibility plan, and malus fees or credits pursuant to paragraph (2).(2) The distribution of the producer responsibility plans costs shall incorporate malus fees or credits for participant producers, with adjustments based on any of the following, as applicable:(A) (i) Actions taken by the participant producer to invest in sustainable packaging or product reuse and refill systems that ensure the covered product does not become waste, either through the waste stream or illegal dumping.(ii) Clause (i) does not apply to a packaging product subject to another statewide stewardship or advanced disposal fee-based program for collection or management pursuant to state law.(B) Actions taken by the participant producer, including clear and accurate labeling and instructions, that improve consumer behavior related to sorting and proper disposal of the covered product.(C) Actions taken by the participant producer to reduce the relative toxicity, ignitability, corrosiveness, or reactivity of the covered product.(b) (1) Operate on a budget that establishes a funding level sufficient to operate the producer responsibility organization in a prudent and responsible manner. The budget shall demonstrate how the producer responsibility organizations estimated revenues will cover all of its budgeted costs for each cost category. Budgeted cost categories shall include, but are not limited to, administrative costs, capital costs, and a reserve.(2) Administrative costs shall include the actual and reasonable regulatory costs incurred by the department, which includes full personnel costs, to implement and enforce this article, consistent with the regulations described in Section 25218.52. For purposes of this paragraph, producer responsibility organization implementation begins upon approval of the producer responsibility organizations producer responsibility plan, except that costs shall include actual regulatory development costs and other startup costs incurred before a producer responsibility plans submittal and approval.(3) The reserve shall include funds to operate the producer responsibility organization if there are unexpected events, losses of income, or large unbudgeted expenses. The reserve shall also protect the infrastructure that the producer responsibility organization relies on in its producer responsibility plan during any lapse in producer participation during the life of the program. The reserve cost category shall include a reserve level amount description justifying the reserve level amount indicated. The producer responsibility organization shall maintain reserve funds sufficient to operate the producer responsibility plan for not less than six months. When a new producer responsibility organization is approved by the department, the producer responsibility organization shall establish its reserve and maintain the required reserve fund balance by the end of the second year of producer responsibility plan operation. If the producer responsibility organizations producer responsibility plan expires or is revoked, the reserve balance shall be transferred to a successor producer responsibility organization or a trustee pursuant to the portion of the producer responsibility plan described in subdivision (f) of Section 25218.56.(c) On a schedule determined by the department, pay the department fees to cover the departments regulatory costs, as described in Section 25218.60.(d) Establish a process by which the financial activities of the producer responsibility organization that are related to implementation of the producer responsibility plan will be subject to an independent audit consistent with generally accepted accounting principles and pursuant to Section 25218.63.(e) Provide written certification by an authorized representative of the producer responsibility organization that, at the time of submission to the department, all aspects of the producer responsibility plan are in compliance with all applicable state and federal laws and regulations.(f) Have adequate financial responsibility and financial controls in place, including fraud prevention measures, to ensure proper management of funds.25218.59. Each participant producer shall, through the producer responsibility organization, pay all administrative and operational costs associated with establishing and implementing the producer responsibility organizations approved plan, including the cost of the collection, transportation, and safe and proper management of covered products, including covered products that have been illegally dumped.25218.60. (a) Within four months of the effective date of the regulations described in Section 25218.52, the department shall notify the producer responsibility organization of the estimated regulatory costs for the department and the criteria for the costs specified in the regulations. Those costs shall include the costs associated with developing the regulations and other department activities that occur before a producer responsibility plans submittal and approval, including, but not limited to, full personnel costs related to implementing and enforcing this article. The costs shall not exceed the departments reasonable regulatory costs to implement and enforce this article.(b) The department shall deposit all moneys received from the producer responsibility organization pursuant to this section into the Household Hazardous Waste Producer Responsibility Fund, which is hereby established in the State Treasury.(c) Upon appropriation by the Legislature, moneys in the Household Hazardous Waste Producer Responsibility Fund shall be expended by the department to implement and enforce this article and to reimburse any outstanding loans made from other funds used to finance the development of the regulations and the startup costs of the departments activities pursuant to this article.(d) The moneys in the Household Hazardous Waste Producer Responsibility Fund shall only be expended for those purposes described in subdivision (c). 25218.61. (a) If the producer responsibility plan relies on a local jurisdiction to collect or manage a covered product, or to otherwise comply with this article, then the producer responsibility organization shall reimburse the local jurisdiction for costs associated with the collection and management of the covered product, including, but not limited to, the cost of providing supplies for the collection of, transportation, and disposal of covered materials, including the jurisdictions labor and administrative costs based on the proportion of covered to noncovered products collected at the facility.(b) Reimbursement costs pursuant to subdivision (a) shall be limited to the actual costs of, supplies, transportation, and management of a covered product, including the costs to reimburse local jurisdictions to collect and manage covered products that have been illegally dumped.25218.62. (a) The producer responsibility organization shall keep board minutes, books, and records that clearly reflect the activities and transactions of the producer responsibility organization for a period of not less than five years.(b) A producer and the producer responsibility organization shall do both of the following:(1) Upon request, provide the department with reasonable and timely access, as determined by the department, to its facilities and operations, as necessary to determine compliance with this article.(2) Within 14 days of a request from the department, provide the department with relevant records, as determined by the department, necessary to determine compliance with this article.(c) The department may audit the producer responsibility organization annually.(d) All reports and records provided to the department pursuant to this article shall be provided under penalty of perjury.(e) The failure of the producer responsibility organization, a participant producer, or their respective agent who holds records to produce documents or data that is requested by the department, required to be collected or generated to carry out operation of the producer responsibility plan in the form and manner determined by the department as part of a department audit, or review of a third-party audit, shall constitute a violation of this article.(f) The department may impose administrative civil penalties pursuant to Section 25218.68 on a producer or producer responsibility organization that fails to provide the department with the access required pursuant to this section.25218.63. (a) The producer responsibility organization shall retain an independent certified public accountant, certified in the United States, to annually audit the accounting books of the producer responsibility organization. The department shall review the independent certified public accountants audit for compliance with this article and consistency with the producer responsibility organizations approved producer responsibility plan and the annual report required by Section 25218.64. After the department conducts its own review, the department shall notify the producer responsibility organization of any conduct or practice that does not comply with this article or of any inconsistencies identified in the review. The producer responsibility organization may obtain copies of the departments review, including proprietary information contained in the departments review, upon request. The producer or producer responsibility organization may request the department withhold from disclosure confidential proprietary information to the extent allowed under Section 1040 of the Evidence Code and the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).(b) The items submitted to the department for its review of the independent audit shall include all of the following:(1) Financial statements audited in accordance with generally accepted accounting principles.(2) An audit of the producer responsibility organizations compliance with this article.(3) An audit of the producer responsibility organizationss adherence to, execution of, and consistency with its approved plan.(c) The producer responsibility organization shall include the independent audit in its annual report submitted to the department pursuant to Section 25218.64 commencing within 18 months of the producer responsibility plans approval by the department 25218.64. On or before January 1 of each year, the producer responsibility organization shall submit to the department, and make publicly available, an annual report, in a format prescribed by the department, that includes, at minimum, all of the following information for the preceding calendar year, unless otherwise specified:(a) The producer responsibility organizations costs, according to the cost categories established in the producer responsibility plan, and revenues.(b) A summary of any anticipated changes to allocations in cost categories for the next calendar year.(c) Any changes to the distribution of costs to the participant producers.(d) Updated contact information for participant producers.(e) An estimate of the quantity of covered products sold in or into the state by participant producers, as determined by the best available commercial data.(f) A summary of efforts made as part of the comprehensive statewide education and outreach program, as required by subdivision (f) of Section 25218.56, including the producer responsibility organizations evaluation of the effectiveness of the program.(g) Recommendations for any future proposed substantial changes to the producer responsibility plan.(h) Any other information required by the regulations described in Section 25218.52. 25218.65. (a) No later than 120 days after the date the department receives an annual report pursuant to Section 25218.64, the department shall notify the producer responsibility organization if the annual report is compliant or noncompliant.(b) If the department determines that the annual report is noncompliant due to failure to meet the requirements of this article, the department may require the resubmittal of the annual report and take enforcement action.(c) The department may consult with or submit the annual report to a state agency or department if it determines it is necessary to determine the annual reports compliance or noncompliance. 25218.66. A retailer, dealer, importer, or distributor shall not sell, distribute, offer for sale, or import a covered product in or into the state unless the producer of the covered product is listed as a compliant producer pursuant to Section 25218.67 or has received a certification letter described in subdivision (e) of Section 25218.67.25218.67. (a) Within 12 months of the effective date of the regulations described in Section 25218.52, and on or before July 1 of each year thereafter, the department shall publish on the departments internet website a list of the names of producers that are compliant with this article. The department shall list, as appropriate, the reported brands of covered products for each producer.(b) A retailer, importer, or distributor shall monitor the departments internet website to determine if a producer, brand, or covered product is in compliance with this article.(c) Notwithstanding any other provision of this article, upon identification of a producer that is not registered with the producer responsibility organization with an approved producer responsibility plan, the department shall issue a notice of noncompliance to the producer.(d) If the department determines a producer is not in compliance with this article, the department shall remove the producer and its brands of covered products from the compliance list on its internet website.(e) The department shall provide a certification letter to a producer that is not listed on the departments internet website as a compliant producer, but that has demonstrated compliance with this article to the department. The certification letter shall state that the producer is in compliance with this article. The department may update the compliance list on its website. 25218.68. (a) The department may impose a civil penalty on any producer or stewardship organization that is in violation of this article of up to the following amounts:(1) Ten thousand dollars ($10,000) per day.(2) Fifty thousand dollars ($50,000) per day if the violation is intentional or knowing.(b) In assessing or reviewing the amount of a civil penalty imposed pursuant to subdivision (a) for a violation of this article, the department or the court shall consider all of the following:(1) The nature and extent of the violation.(2) The number and severity of the violation or violations.(3) The economic effect of the penalty on the violator.(4) Whether the violator took good faith measures to comply with this article and the period of time over which these noncompliant actions were taken.(5) The willfulness of the violators misconduct.(6) The deterrent effect that the imposition of the penalty would have on both the violator and the regulated community.(7) Any other factor that justice may require.(c) Upon a written finding that a producer responsibility organization, producer, importer, or any other party regulated pursuant to this article has not met a material requirement of this article, in addition to any other penalties authorized pursuant to this article, the department may take one or all of the following actions to ensure compliance with the requirements of this article, after affording the producer responsibility organization, producer, importer, or any other party regulated pursuant to this article, an opportunity to respond to or rebut the finding:(1) Revoke the producer responsibility organizations approved producer responsibility plan or require the producer responsibility organization to resubmit the producer responsibility plan, in whole or in part.(2) Require additional reporting relating to compliance with the material requirements of this article that were not met.(3) Approve a producer responsibility plan submitted by another producer responsibility organization.(d) The department shall deposit all penalties collected pursuant to this section into the Household Hazardous Waste Products Penalty Account, which is hereby created in the Household Hazardous Waste Producer Responsibility Fund. Upon appropriation by the Legislature, moneys in the Household Hazardous Waste Products Penalty Account shall be available for expenditure by the department for activities related to the collection, reuse, and recycling of covered products, grants for related purposes, and the administration and enforcement of this article.(e) The Administrative Adjudication Bill of Rights (Article 6 (commencing with Section 11425.10) of Chapter 4.5 of Part 1 of Division 3 of Title 2 of the Government Code) applies to hearings conducted pursuant to this article and mandates minimum due process requirements. 25218.69. (a) After the time for judicial review under Section 11523 of the Government Code has expired, the department may apply to the small claims court or superior court, depending on the jurisdictional amount and any other remedy sought, in the county where the penalties, restitution, or other remedy was imposed by the department, for a judgment to collect any unpaid civil penalties or restitution or to enforce any other remedy provided by this article. The application, which shall include a certified copy of the final agency order or decision, shall constitute a sufficient showing to warrant the issuance of the judgment. The court clerk shall enter the judgment immediately in conformity with the application. The judgment so entered shall have the same force and effect as, and shall be subject to all laws relating to, a judgment in a civil action and may be enforced in the same manner as any other judgment of the court. The court shall make enforcement of the judgment a priority.(b) If a person has engaged in or is about to engage in an act, practice, or omission that constitutes, or will constitute, a violation of this article, the Attorney General may, at the request of the director of the department or upon the Attorney Generals own determination, bring an action in superior court for an order enjoining the act, practice, or omission. The order may require remedial measures and direct compliance with this article. Upon a showing that the person has engaged in or is about to engage in that act, practice, or omission, the superior court may issue a permanent or temporary injunction, restraining order, or other order, as appropriate. 25218.70. In support of this article, the Department of Resources Recycling and Recovery shall include both of the following in updates to the applicable waste characterization study:(a) The amount of covered products, by covered product category, that was improperly disposed of and observed in the waste characterization study.(b) In an appendix, the amount of covered products, by covered product category, properly collected and managed by a household hazardous waste collection facility.25218.71. (a) Except as provided in subdivision (b), an action that is taken by a producer or producer responsibility organization 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), the Unfair Practices Act (Chapter 4 (commencing with Section 17000) of Part 2 of Division 7 of the Business and Professions Code), or the Unfair Competition Law (Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code) to the extent the producer or producer responsibility organization is exercising authority pursuant to this article.(b) Subdivision (a) applies to all of the following actions taken by a producer responsibility organization:(1) The creation, implementation, or management of a producer responsibility plan approved or conditionally approved by the department pursuant to this article and the determination of the types or quantities of covered products recycled or otherwise managed pursuant to the producer responsibility plan.(2) The determination of the cost and structure of an approved producer responsibility plan.(3) The establishment, administration, collection, or disbursement of a charge associated with funding the implementation of this article.(c) Subdivision (a) does not apply to an agreement that does any of the following:(1) Fixes a price of or for covered products.(2) Fixes the output or production of covered products.(3) Restricts the geographic area in which, or customers to whom, covered products will be sold.
SEC. 2. Article 10.8.5 (commencing with Section 25218.50) is added to Chapter 6.5 of Division 20 of the Health and Safety Code, to read:
### SEC. 2.
Article 10.8.5. Household Hazardous Waste Producer Responsibility Act25218.50. (a) This article shall be known, and may be cited, as the Household Hazardous Waste Producer Responsibility Act.(b) The purpose of this article is to provide for the safe and proper management of household hazardous waste, which poses a threat to public health and safety, is costly for Californias local governments, and may cause significant damage to the environment when managed improperly.25218.51. For purposes of this article, the following definitions apply:(a) (1) Approved plan means a producer responsibility plan that has been approved by the department pursuant to Section 25218.55 and that has not been revoked by the department pursuant to Section 25218.68.(2) A conditionally approved plan is an approved plan, except as used in Section 25218.55.(3) A partially approved plan is not an approved plan.(b) Brand means a name, symbol, word, or mark that identifies a covered product rather than its components, and attributes the covered product to the owner or licensee of the brand as the producer.(c) Consumer means a purchaser, owner, or lessee of a covered product, including a person, business, corporation, limited partnership, nonprofit organization, or governmental entity.(d) Consumer product means a commodity that is intended for use for personal, family, or household purposes, or that is present in the same form, concentration, and quantity as a product prepackaged for distribution to a consumer for personal, family, or household purposes, and is handled at, and found in, a retail establishment and intended for direct sale to the end user.(e) Contact information means a name, physical address, mailing address, email address, and telephone number.(f) (1) Covered product means a consumer product that is one or more of the following:(A) A pesticide, as defined in Section 12753 of the Food and Agricultural Code.(B) An aerosol.(C) An oxidizer.(D) An adhesive, glue, cleaner, degreaser, or solvent, which adhesive or glue, which is ignitable, toxic, corrosive, or reactive.(E) A designated product, as defined in Section 108952, which is ignitable, toxic, or reactive.(E)A(F) An automotive product that is a lubricant, oil, antifreeze, cleaner, wax, or degreaser, which is an automotive product used for purposes of maintaining the function of a motor vehicle, as defined in Section 670 of the Vehicle Code.(F)(G) A compressed gas, including, but not limited to, propane, helium, and oxygen.(G)(H) A lithium battery.(H)(I) A product containing asbestos, mercury, or polychlorinated biphenyls.(I)(J) An electronic delivery system of a nicotine or non-nicotine aerosolized or vaporized solution to a person, including electronic cigarettes and vape pens.(J)(K) A product that is ignitable, toxic, corrosive, or reactive, that is added by the department via the assessment described in subdivision (d) of Section 25218.52, and that is not exempted.(2) Covered product does not include any of the following:(A) A product subject to another statewide stewardship or advanced disposal fee-based program for collection or management pursuant to state law.(B)A health and beauty product.(B) Cosmetics, drugs, or food.(C) Personal care items, including, but not limited to, hand soap, shampoo, or toothpaste.(C)(D) A product otherwise listed in paragraph (1) for which the producer demonstrates to the department that the product meets both of the following criteria:(i) The product is not ignitable, toxic, corrosive, or reactive.(ii) The product may safely be collected through a residential recycling collection service, residential organic waste collection, or residential solid waste collection.(D)(E) A parasiticide used to treat, or administered to, companion animals and that is regulated by the United States Environmental Protection Agency under the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. Sec. 136 et seq.).(F) A product subject to alternative management standards pursuant to Article 11.2 (commencing with Section 25230).(g) Department means the Department of Toxic Substances Control.(h) Importer means either of the following:(1) A person qualifying as an importer of record for purposes of Section 1484(a)(2)(B) of Title 19 of the United States Code with regard to the import of a covered product that is sold, distributed for sale, or offered for sale in or into the state that was manufactured or assembled by a company outside of the United States.(2) A person importing into the state for sale, distributing for sale, or offering for sale in the state a covered product that was manufactured or assembled by a company physically located outside of the state.(i) Participant producer means a producer that is registered with the producer responsibility organization.(j) (1) Producer means a person who manufactures a covered product and who sells, offers for sale, or distributes a covered product into the state under the persons own name or brand.(2) If there is no person in the state who is the producer for purposes of paragraph (1), the producer of the covered product is the owner or exclusive licensee of a brand under which the covered product is sold or distributed into the state. For purposes of this subdivision, an exclusive licensee is a person holding the exclusive right to use a brand in the state in connection with the manufacture, sale, or distribution for sale in or into the state of the covered product.(3) If there is no person in the state who is the producer for purposes of paragraph (1) or (2), the producer of the covered product is the person that imports the covered product into the state for sale, distribution, or installation.(4) If there is no person in the state who is the producer for purposes of paragraph (1), (2), or (3), the producer of the covered product is the distributor, retailer, dealer, or wholesaler who sells the product in or into the state.(5) For purposes of this article, the sale of a covered product shall be deemed to occur in the state if the covered product is delivered to the consumer in the state.(k) Producer responsibility organization means an organization that is exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986, is formed for the purpose of implementing a plan to meet the requirements of this article, and is approved by the department . department.(l) Producer responsibility plan means the plan developed by a producer responsibility organization for the collection, transportation, and the safe and proper management of covered products pursuant to this article and submitted to the department for approval pursuant to Section 25218.55.(m) Sell or sales has the same meaning as set forth in Section 6006 of the Revenue and Taxation Code.25218.52. (a) (1) Except as provided in Section 25218.55, the department shall adopt, amend, or repeal regulations to implement this article, in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The department shall not adopt regulations pursuant to this section with an effective date earlier than July 1, 2028.(2) As part of the regulations described in this section, the department shall establish a baseline amount of covered products improperly disposed of and shall measure progress towards meeting the performance-based standards in Section 25218.56.(b) On or before January 1, 2027, the department shall establish and post on its internet website a list of covered product categories.(c) On or before January 1, 2028, the department shall approve one, and only one, producer responsibility organization that meets the requirements of this article.(d) On or before January 1, 2032, and every five years after, the department may conduct an assessment to identify household hazardous waste that is not included in the producer responsibility plan and adjust the covered product categories, if needed, to achieve the purpose of this article. The department may select an independent third-party contractor to complete the assessment. The department shall make its determination and rationale available for public review. 25218.53. (a) No later than 90 days after the departments approval of the producer responsibility organization, pursuant to Section 25218.52, a producer shall register with the producer responsibility organization in accordance with the procedures and requirements established by the producer responsibility organization.(b) No later than 30 days after the effective date of the regulations described in Section 25218.52, a producer, or the producer responsibility organization on behalf of the producer, shall notify the department electronically that the producer has registered with the producer responsibility organization.(c) Upon approval of a producer responsibility plan pursuant to Section 25218.55, a producer shall not sell, offer for sale, import, or distribute a covered product in the state unless all of the following conditions are met:(1) The producer is registered with the producer responsibility organization.(2) The covered product is accounted for in the producer responsibility plan.(3) The department has approved the producer responsibility plan.(d) If an entity does not meet the definition of a producer and is not subject to this article but, at any point, meets the definition of a producer, that entity shall be deemed a producer at that point in time, and shall register with the producer responsibility organization and otherwise comply with the requirements of this article before beginning to sell, offer for sale, import, or distribute a covered product in the state.(e) (1) No later than 180 days after the effective date of the regulations described in Section 25218.52, a producer shall provide to the department, in a form and manner established by the department, both of the following:(A) The producers contact information.(B) A list of covered products and brands of covered products that the producer sells, distributes for sale, imports for sale, or offers for sale in or into the state.(2) A producer shall provide to the department updates to the information described in paragraph (1) on or before January 15 of each year, within 30 days of changes to the contact information or list, and upon the departments request. 25218.54. (a) The producer responsibility organization shall have a governing board consisting of participant producers that represent the diversity of covered products.(b) The producer responsibility organization shall notify the department within 30 calendar days of any of the following:(1) The end of a three-month period during which the producer responsibility organization unsuccessfully attempted to obtain a fee, records, or information from a participant producer.(2) The date that a producer no longer participates in the producer responsibility organizations approved plan.(3) Any instance of noncompliance by a participant producer. (c)The producer responsibility organization may conduct a needs assessment to determine appropriate strategies and investments needed to meet the requirements of this article.(c) The producer responsibility organization shall coordinate with a PRO, as that term is defined in Section 42041 of the Public Resources Code, to ensure that empty packaging and containers for covered products are properly collected and managed either pursuant to this chapter or pursuant to Chapter 3 (commencing with Section 42040) of Part 3 of Division 30 of the Public Resources Code.(d) (1) The producer responsibility organization shall prepare an initial statewide needs assessment designed to determine the necessary steps and investments needed for covered products to achieve the requirements and purposes of this article. The initial needs assessment for covered products shall be completed before the approval of any producer responsibility plan. The producer responsibility organization may select an independent third-party contractor to complete the statewide needs assessment.(2) The producer responsibility organization may prepare more than one needs assessment, with each assessment specific to one or more covered product categories subject to this article, or may prepare one comprehensive needs assessment that includes all covered products subject to this article.(3) The producer responsibility organization shall consult local jurisdictions and other key stakeholders when preparing the needs assessment.(4) The initial statewide needs assessment shall include all of the following:(A) An evaluation of the existing scope and amount of covered products, by covered product category and volume, that are improperly disposed of, properly disposed of through household hazardous waste facilities, and diverted, as applicable, through reuse or recycling, based on data from any existing waste characterization studies conducted by the Department of Resources Recycling and Recovery and including any other data the producer responsibility organization chooses to include.(B) An evaluation of the categories of covered product that contribute to the highest disposal costs.(C) The current reuse, recycling, collection, sorting, and hauling systems in the state and the expanded access and additional reuse, recycling, collection, sorting, and hauling options needed to meet the purposes of this article.(D) The current processes by which containers and packaging for covered products are handled under Chapter 3 (commencing with Section 42040) of Part 3 of Division 30 of the Public Resources Code.(E) Existing state statutory provisions and funding sources related to market development and financial incentives to help achieve the states goals related to reuse, recycling, collection, sorting, hauling, and disposal in state using best management practices.(F) Actions and investments necessary, including, but not limited to, incentive mechanisms, to achieve the purposes of this article.(G) Actions and investments needed to avoid contamination related to reuse and recycling.(H) Whether allowing more than one producer responsibility organization would be beneficial in meeting the requirements of the article.(I) An evaluation of the factors that will be important to successfully implement the malus fees and credits described in Section 25218.58.(J) An evaluation and establishment of appropriate interim targets for the reduction of improper disposal to achieve the purposes of this article.25218.55. (a) Within 12 months of the effective date of the regulations described in Section 25218.52, the producer responsibility organization shall develop and submit a proposed producer responsibility plan to the department, in a form and manner determined by the department.(b) Within six months of receipt of a proposed producer responsibility plan, the department shall approve, approve in part, or disapprove the producer responsibility plan.(c) If the department approves a proposed producer responsibility plan, a revised plan, or a conditionally approved plan, then the department shall notify the producer responsibility organization of the approval. The producer responsibility organization shall implement the approved or conditionally approved plan within 90 days of receipt of the notice of approval, or as otherwise agreed to by the department.(d) If the department disapproves a proposed producer responsibility plan or a revised plan, then the department shall notify the producer responsibility organization of the disapproval and specify the reasons for disapproval. Within 30 days of receipt of the notice of disapproval, the producer responsibility organization shall submit a revised plan.(e) (1) If the department approves a proposed producer responsibility plan or a revised plan in part, then the department shall notify the producer responsibility organization of the partial approval and identify the portions of the producer responsibility plan that do not comply with this article.(2) Within 30 days of receipt of the notice of partial approval, the producer responsibility organization shall submit a revised plan to the department.(3) The producer responsibility organization shall implement the approved parts of the producer responsibility plan within 90 days of receipt of the notice of partial approval, or as otherwise agreed to by the department.(f) Within 30 days of receipt of a revised plan, the department shall approve, approve in part, or disapprove the revised plan.(g) If the department has not approved, approved in part, or disapproved a producer responsibility plan within one year of receipt of the producer responsibility plan, then the producer responsibility plan shall be deemed conditionally approved and the department shall notify the producer responsibility organization of the conditional approval within 30 days.(h) The department may impose additional requirements for any portion of a proposed producer responsibility plan, a revised plan, or a conditionally approved plan that does not comply with this article and that has not been approved. (i) When reviewing a proposed producer responsibility plan, a revised plan, or a conditionally approved plan, the department may solicit information from producers, other agencies or departments, or stakeholders, as the department deems appropriate.(j) The department may review an approved plan or a conditionally approved plan at any time. If the department finds that an approved plan or a conditionally approved plan does not comply with this article, then it may recommend modifications.(k) Any substantial changes to an approved plan shall be submitted to the department for approval.(l) (1) An approved plan and a conditionally approved plan shall be a public record, except that financial, production, or sales data reported by the producer responsibility organization to the department is not a public record for purposes of the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and shall not be open to public inspection. The department may release financial or sales data in summary form only so the information cannot be attributable to a specific entity.(2) The producer responsibility organization may submit to the department a redacted version of the approved plan or conditionally approved plan that removes any proprietary or confidential information.(3) Within 90 days of approval, conditional approval, or revision of a producer responsibility plan, the department shall post on its internet website the producer responsibility plan and a list of all the participant producers covered by the producer responsibility plan. 25218.56. A producer responsibility plan shall meet all of the following criteria:(a) Be designed to ensure the safe and convenient collection and management of covered products at no cost to consumers or local governments.(b) Describe the methods of collection to ensure convenience to customers, including permanent collection sites, temporary collection sites, curbside collection, and collection events.(c) Include as a permanent collection site a local household hazardous waste collection facility, as defined in subdivision (h) of Section 25218.1, that offers in writing to participate in the program.(d) Describe opportunities for collection and management of covered products for residents of the state on weekdays outside of the hours of 8:00 a.m. to 5:00 p.m., and on weekends.(e) Include strategies to ensure that elderly consumers, disabled consumers, and any other consumers with limited mobility, have access to the safe and proper collection and management of covered products, including opportunities to have covered products collected.(f) Describe how the producer responsibility organization will leverage and use existing collection programs and infrastructure.(g) (1) Ensure a decrease in the aggregate percentage of covered products improperly disposed of by 40 percent by 2036, as measured against the baseline determined pursuant to Section 25218.52.(2) The department may set an interim diversion target for the years 2026 to 2035, inclusive.(3) The department may set a diversion target for 2037, and for each year thereafter, that is in excess of the diversion target specified in paragraph (1).(h) (1) Ensure at least 70 percent of California consumers are aware of the program implemented by the producer responsibility organization by 2036.(2) The department may set an interim consumer awareness target for the years 2026 to 2035, inclusive.(3) The department may set a consumer awareness target for 2037, and for each year thereafter, that is in excess of the consumer awareness target specified in paragraph (1).(i) Describe how the producer responsibility organization will incentivize minimizing disposal of covered products, when feasible, including through reuse, recycling, and reducing the amount of covered products being disposed of.(j) Include the contact information of each participant producer.(k) Include a financial section that demonstrates how the producer responsibility organization will comply with Section 25218.58, including, but not limited to, a five-year budget that demonstrates how the producer responsibility organization will comply with subdivision (b) of Section 25218.58.(l) Include a section describing the producer responsibility organizations contingency plan in the event the producer responsibility plan expires or is revoked. The contingency plan shall guarantee that all the contracts, financial data, and any other necessary authority and assets to operate the program shall vest in a trustee approved by the department. The trustee shall operate the most recently approved plan, subject to the direction of the department, until such time as a new producer responsibility plan is approved. Upon the expiration or revocation of a producer responsibility plan, the balance of the producer responsibility organizations operating reserves collected shall be transferred to the control of the trustee within five calendar days. All documents, digital records, contracts, and files related to the operation of the producer responsibility plan shall be transferred to the control of the trustee within five calendar days.(m) Include a section describing a comprehensive statewide education and outreach program designed to educate consumers and promote participation in the program offered by the producer responsibility organization. This shall include a description of efforts to support participation by all California communities, including a description of efforts to communicate with consumers in languages other than English. The comprehensive statewide education and outreach program shall do all of the following:(1) Promote the safe and proper management of a covered product and shall not promote the disposal of a covered product in a manner inconsistent with the services offered by the producer responsibility plan.(2) Include information for consumers on how to properly manage a covered product at the time of disposal and how to avoid improper disposal of a covered product.(3) Include information for consumers about how to reduce the amount of covered products being disposed of and how to participate in reuse opportunities for covered products.(4) Include information related to environmentally preferable purchasing and how to identify less hazardous alternatives. 25218.57. (a) The producer responsibility organization shall review its approved plan at least every five years and determine whether revisions are necessary.(b) If the producer responsibility organization determines that revisions to its approved plan are necessary, the producer responsibility organization shall submit to the department a revised plan for review and approval using the procedures set forth in Section 25218.55. The producer responsibility organization shall submit the revised plan to the department at least 12 months before the review deadline outlined in subdivision (a). The revised plan shall include a cover letter that summarizes the revisions to the producer responsibility plan.(c) If the producer responsibility organization determines that no revisions to the approved plan are necessary, the producer responsibility organization shall send a letter to the department 12 months before the review deadline outlined in subdivision (a) explaining that the producer responsibility organization has reviewed the approved plan and determined that no revisions are needed. The department may disapprove the producer responsibility organizations determination within 30 days of receipt of the letter if the department concludes that the producer responsibility organization cannot implement the objectives of this article without revising the approved plan. If the department disapproves the producer responsibility organizations determination, the department may indicate to the producer responsibility organization which sections of the approved plan need revision and the producer responsibility organization shall submit to the department a revised plan for review and approval, following the procedures set forth in Section 25218.55. The producer responsibility organization shall submit the revised plan pursuant to this subdivision within 60 days of receipt of the departments disapproval.(d) The department may consult with or submit the revised plan to another state agency or department if the department determines it is necessary for making its determination. The duration of time the department takes for this consultation is not included in the time allotted to the department for review pursuant to this section. 25218.58. The producer responsibility organization shall do all of the following:(a) (1) Establish a method for fully funding the producer responsibility organization and implementing an approved producer responsibility plan in a manner that equitably distributes the producer responsibility plans costs among participant producers in a manner that reflects sales volumes, consideration of the cost of managing their specific covered products according to the approved producer responsibility plan, and malus fees or credits pursuant to paragraph (2).(2) The distribution of the producer responsibility plans costs shall incorporate malus fees or credits for participant producers, with adjustments based on any of the following, as applicable:(A) (i) Actions taken by the participant producer to invest in sustainable packaging or product reuse and refill systems that ensure the covered product does not become waste, either through the waste stream or illegal dumping.(ii) Clause (i) does not apply to a packaging product subject to another statewide stewardship or advanced disposal fee-based program for collection or management pursuant to state law.(B) Actions taken by the participant producer, including clear and accurate labeling and instructions, that improve consumer behavior related to sorting and proper disposal of the covered product.(C) Actions taken by the participant producer to reduce the relative toxicity, ignitability, corrosiveness, or reactivity of the covered product.(b) (1) Operate on a budget that establishes a funding level sufficient to operate the producer responsibility organization in a prudent and responsible manner. The budget shall demonstrate how the producer responsibility organizations estimated revenues will cover all of its budgeted costs for each cost category. Budgeted cost categories shall include, but are not limited to, administrative costs, capital costs, and a reserve.(2) Administrative costs shall include the actual and reasonable regulatory costs incurred by the department, which includes full personnel costs, to implement and enforce this article, consistent with the regulations described in Section 25218.52. For purposes of this paragraph, producer responsibility organization implementation begins upon approval of the producer responsibility organizations producer responsibility plan, except that costs shall include actual regulatory development costs and other startup costs incurred before a producer responsibility plans submittal and approval.(3) The reserve shall include funds to operate the producer responsibility organization if there are unexpected events, losses of income, or large unbudgeted expenses. The reserve shall also protect the infrastructure that the producer responsibility organization relies on in its producer responsibility plan during any lapse in producer participation during the life of the program. The reserve cost category shall include a reserve level amount description justifying the reserve level amount indicated. The producer responsibility organization shall maintain reserve funds sufficient to operate the producer responsibility plan for not less than six months. When a new producer responsibility organization is approved by the department, the producer responsibility organization shall establish its reserve and maintain the required reserve fund balance by the end of the second year of producer responsibility plan operation. If the producer responsibility organizations producer responsibility plan expires or is revoked, the reserve balance shall be transferred to a successor producer responsibility organization or a trustee pursuant to the portion of the producer responsibility plan described in subdivision (f) of Section 25218.56.(c) On a schedule determined by the department, pay the department fees to cover the departments regulatory costs, as described in Section 25218.60.(d) Establish a process by which the financial activities of the producer responsibility organization that are related to implementation of the producer responsibility plan will be subject to an independent audit consistent with generally accepted accounting principles and pursuant to Section 25218.63.(e) Provide written certification by an authorized representative of the producer responsibility organization that, at the time of submission to the department, all aspects of the producer responsibility plan are in compliance with all applicable state and federal laws and regulations.(f) Have adequate financial responsibility and financial controls in place, including fraud prevention measures, to ensure proper management of funds.25218.59. Each participant producer shall, through the producer responsibility organization, pay all administrative and operational costs associated with establishing and implementing the producer responsibility organizations approved plan, including the cost of the collection, transportation, and safe and proper management of covered products, including covered products that have been illegally dumped.25218.60. (a) Within four months of the effective date of the regulations described in Section 25218.52, the department shall notify the producer responsibility organization of the estimated regulatory costs for the department and the criteria for the costs specified in the regulations. Those costs shall include the costs associated with developing the regulations and other department activities that occur before a producer responsibility plans submittal and approval, including, but not limited to, full personnel costs related to implementing and enforcing this article. The costs shall not exceed the departments reasonable regulatory costs to implement and enforce this article.(b) The department shall deposit all moneys received from the producer responsibility organization pursuant to this section into the Household Hazardous Waste Producer Responsibility Fund, which is hereby established in the State Treasury.(c) Upon appropriation by the Legislature, moneys in the Household Hazardous Waste Producer Responsibility Fund shall be expended by the department to implement and enforce this article and to reimburse any outstanding loans made from other funds used to finance the development of the regulations and the startup costs of the departments activities pursuant to this article.(d) The moneys in the Household Hazardous Waste Producer Responsibility Fund shall only be expended for those purposes described in subdivision (c). 25218.61. (a) If the producer responsibility plan relies on a local jurisdiction to collect or manage a covered product, or to otherwise comply with this article, then the producer responsibility organization shall reimburse the local jurisdiction for costs associated with the collection and management of the covered product, including, but not limited to, the cost of providing supplies for the collection of, transportation, and disposal of covered materials, including the jurisdictions labor and administrative costs based on the proportion of covered to noncovered products collected at the facility.(b) Reimbursement costs pursuant to subdivision (a) shall be limited to the actual costs of, supplies, transportation, and management of a covered product, including the costs to reimburse local jurisdictions to collect and manage covered products that have been illegally dumped.25218.62. (a) The producer responsibility organization shall keep board minutes, books, and records that clearly reflect the activities and transactions of the producer responsibility organization for a period of not less than five years.(b) A producer and the producer responsibility organization shall do both of the following:(1) Upon request, provide the department with reasonable and timely access, as determined by the department, to its facilities and operations, as necessary to determine compliance with this article.(2) Within 14 days of a request from the department, provide the department with relevant records, as determined by the department, necessary to determine compliance with this article.(c) The department may audit the producer responsibility organization annually.(d) All reports and records provided to the department pursuant to this article shall be provided under penalty of perjury.(e) The failure of the producer responsibility organization, a participant producer, or their respective agent who holds records to produce documents or data that is requested by the department, required to be collected or generated to carry out operation of the producer responsibility plan in the form and manner determined by the department as part of a department audit, or review of a third-party audit, shall constitute a violation of this article.(f) The department may impose administrative civil penalties pursuant to Section 25218.68 on a producer or producer responsibility organization that fails to provide the department with the access required pursuant to this section.25218.63. (a) The producer responsibility organization shall retain an independent certified public accountant, certified in the United States, to annually audit the accounting books of the producer responsibility organization. The department shall review the independent certified public accountants audit for compliance with this article and consistency with the producer responsibility organizations approved producer responsibility plan and the annual report required by Section 25218.64. After the department conducts its own review, the department shall notify the producer responsibility organization of any conduct or practice that does not comply with this article or of any inconsistencies identified in the review. The producer responsibility organization may obtain copies of the departments review, including proprietary information contained in the departments review, upon request. The producer or producer responsibility organization may request the department withhold from disclosure confidential proprietary information to the extent allowed under Section 1040 of the Evidence Code and the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).(b) The items submitted to the department for its review of the independent audit shall include all of the following:(1) Financial statements audited in accordance with generally accepted accounting principles.(2) An audit of the producer responsibility organizations compliance with this article.(3) An audit of the producer responsibility organizationss adherence to, execution of, and consistency with its approved plan.(c) The producer responsibility organization shall include the independent audit in its annual report submitted to the department pursuant to Section 25218.64 commencing within 18 months of the producer responsibility plans approval by the department 25218.64. On or before January 1 of each year, the producer responsibility organization shall submit to the department, and make publicly available, an annual report, in a format prescribed by the department, that includes, at minimum, all of the following information for the preceding calendar year, unless otherwise specified:(a) The producer responsibility organizations costs, according to the cost categories established in the producer responsibility plan, and revenues.(b) A summary of any anticipated changes to allocations in cost categories for the next calendar year.(c) Any changes to the distribution of costs to the participant producers.(d) Updated contact information for participant producers.(e) An estimate of the quantity of covered products sold in or into the state by participant producers, as determined by the best available commercial data.(f) A summary of efforts made as part of the comprehensive statewide education and outreach program, as required by subdivision (f) of Section 25218.56, including the producer responsibility organizations evaluation of the effectiveness of the program.(g) Recommendations for any future proposed substantial changes to the producer responsibility plan.(h) Any other information required by the regulations described in Section 25218.52. 25218.65. (a) No later than 120 days after the date the department receives an annual report pursuant to Section 25218.64, the department shall notify the producer responsibility organization if the annual report is compliant or noncompliant.(b) If the department determines that the annual report is noncompliant due to failure to meet the requirements of this article, the department may require the resubmittal of the annual report and take enforcement action.(c) The department may consult with or submit the annual report to a state agency or department if it determines it is necessary to determine the annual reports compliance or noncompliance. 25218.66. A retailer, dealer, importer, or distributor shall not sell, distribute, offer for sale, or import a covered product in or into the state unless the producer of the covered product is listed as a compliant producer pursuant to Section 25218.67 or has received a certification letter described in subdivision (e) of Section 25218.67.25218.67. (a) Within 12 months of the effective date of the regulations described in Section 25218.52, and on or before July 1 of each year thereafter, the department shall publish on the departments internet website a list of the names of producers that are compliant with this article. The department shall list, as appropriate, the reported brands of covered products for each producer.(b) A retailer, importer, or distributor shall monitor the departments internet website to determine if a producer, brand, or covered product is in compliance with this article.(c) Notwithstanding any other provision of this article, upon identification of a producer that is not registered with the producer responsibility organization with an approved producer responsibility plan, the department shall issue a notice of noncompliance to the producer.(d) If the department determines a producer is not in compliance with this article, the department shall remove the producer and its brands of covered products from the compliance list on its internet website.(e) The department shall provide a certification letter to a producer that is not listed on the departments internet website as a compliant producer, but that has demonstrated compliance with this article to the department. The certification letter shall state that the producer is in compliance with this article. The department may update the compliance list on its website. 25218.68. (a) The department may impose a civil penalty on any producer or stewardship organization that is in violation of this article of up to the following amounts:(1) Ten thousand dollars ($10,000) per day.(2) Fifty thousand dollars ($50,000) per day if the violation is intentional or knowing.(b) In assessing or reviewing the amount of a civil penalty imposed pursuant to subdivision (a) for a violation of this article, the department or the court shall consider all of the following:(1) The nature and extent of the violation.(2) The number and severity of the violation or violations.(3) The economic effect of the penalty on the violator.(4) Whether the violator took good faith measures to comply with this article and the period of time over which these noncompliant actions were taken.(5) The willfulness of the violators misconduct.(6) The deterrent effect that the imposition of the penalty would have on both the violator and the regulated community.(7) Any other factor that justice may require.(c) Upon a written finding that a producer responsibility organization, producer, importer, or any other party regulated pursuant to this article has not met a material requirement of this article, in addition to any other penalties authorized pursuant to this article, the department may take one or all of the following actions to ensure compliance with the requirements of this article, after affording the producer responsibility organization, producer, importer, or any other party regulated pursuant to this article, an opportunity to respond to or rebut the finding:(1) Revoke the producer responsibility organizations approved producer responsibility plan or require the producer responsibility organization to resubmit the producer responsibility plan, in whole or in part.(2) Require additional reporting relating to compliance with the material requirements of this article that were not met.(3) Approve a producer responsibility plan submitted by another producer responsibility organization.(d) The department shall deposit all penalties collected pursuant to this section into the Household Hazardous Waste Products Penalty Account, which is hereby created in the Household Hazardous Waste Producer Responsibility Fund. Upon appropriation by the Legislature, moneys in the Household Hazardous Waste Products Penalty Account shall be available for expenditure by the department for activities related to the collection, reuse, and recycling of covered products, grants for related purposes, and the administration and enforcement of this article.(e) The Administrative Adjudication Bill of Rights (Article 6 (commencing with Section 11425.10) of Chapter 4.5 of Part 1 of Division 3 of Title 2 of the Government Code) applies to hearings conducted pursuant to this article and mandates minimum due process requirements. 25218.69. (a) After the time for judicial review under Section 11523 of the Government Code has expired, the department may apply to the small claims court or superior court, depending on the jurisdictional amount and any other remedy sought, in the county where the penalties, restitution, or other remedy was imposed by the department, for a judgment to collect any unpaid civil penalties or restitution or to enforce any other remedy provided by this article. The application, which shall include a certified copy of the final agency order or decision, shall constitute a sufficient showing to warrant the issuance of the judgment. The court clerk shall enter the judgment immediately in conformity with the application. The judgment so entered shall have the same force and effect as, and shall be subject to all laws relating to, a judgment in a civil action and may be enforced in the same manner as any other judgment of the court. The court shall make enforcement of the judgment a priority.(b) If a person has engaged in or is about to engage in an act, practice, or omission that constitutes, or will constitute, a violation of this article, the Attorney General may, at the request of the director of the department or upon the Attorney Generals own determination, bring an action in superior court for an order enjoining the act, practice, or omission. The order may require remedial measures and direct compliance with this article. Upon a showing that the person has engaged in or is about to engage in that act, practice, or omission, the superior court may issue a permanent or temporary injunction, restraining order, or other order, as appropriate. 25218.70. In support of this article, the Department of Resources Recycling and Recovery shall include both of the following in updates to the applicable waste characterization study:(a) The amount of covered products, by covered product category, that was improperly disposed of and observed in the waste characterization study.(b) In an appendix, the amount of covered products, by covered product category, properly collected and managed by a household hazardous waste collection facility.25218.71. (a) Except as provided in subdivision (b), an action that is taken by a producer or producer responsibility organization 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), the Unfair Practices Act (Chapter 4 (commencing with Section 17000) of Part 2 of Division 7 of the Business and Professions Code), or the Unfair Competition Law (Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code) to the extent the producer or producer responsibility organization is exercising authority pursuant to this article.(b) Subdivision (a) applies to all of the following actions taken by a producer responsibility organization:(1) The creation, implementation, or management of a producer responsibility plan approved or conditionally approved by the department pursuant to this article and the determination of the types or quantities of covered products recycled or otherwise managed pursuant to the producer responsibility plan.(2) The determination of the cost and structure of an approved producer responsibility plan.(3) The establishment, administration, collection, or disbursement of a charge associated with funding the implementation of this article.(c) Subdivision (a) does not apply to an agreement that does any of the following:(1) Fixes a price of or for covered products.(2) Fixes the output or production of covered products.(3) Restricts the geographic area in which, or customers to whom, covered products will be sold.
Article 10.8.5. Household Hazardous Waste Producer Responsibility Act25218.50. (a) This article shall be known, and may be cited, as the Household Hazardous Waste Producer Responsibility Act.(b) The purpose of this article is to provide for the safe and proper management of household hazardous waste, which poses a threat to public health and safety, is costly for Californias local governments, and may cause significant damage to the environment when managed improperly.25218.51. For purposes of this article, the following definitions apply:(a) (1) Approved plan means a producer responsibility plan that has been approved by the department pursuant to Section 25218.55 and that has not been revoked by the department pursuant to Section 25218.68.(2) A conditionally approved plan is an approved plan, except as used in Section 25218.55.(3) A partially approved plan is not an approved plan.(b) Brand means a name, symbol, word, or mark that identifies a covered product rather than its components, and attributes the covered product to the owner or licensee of the brand as the producer.(c) Consumer means a purchaser, owner, or lessee of a covered product, including a person, business, corporation, limited partnership, nonprofit organization, or governmental entity.(d) Consumer product means a commodity that is intended for use for personal, family, or household purposes, or that is present in the same form, concentration, and quantity as a product prepackaged for distribution to a consumer for personal, family, or household purposes, and is handled at, and found in, a retail establishment and intended for direct sale to the end user.(e) Contact information means a name, physical address, mailing address, email address, and telephone number.(f) (1) Covered product means a consumer product that is one or more of the following:(A) A pesticide, as defined in Section 12753 of the Food and Agricultural Code.(B) An aerosol.(C) An oxidizer.(D) An adhesive, glue, cleaner, degreaser, or solvent, which adhesive or glue, which is ignitable, toxic, corrosive, or reactive.(E) A designated product, as defined in Section 108952, which is ignitable, toxic, or reactive.(E)A(F) An automotive product that is a lubricant, oil, antifreeze, cleaner, wax, or degreaser, which is an automotive product used for purposes of maintaining the function of a motor vehicle, as defined in Section 670 of the Vehicle Code.(F)(G) A compressed gas, including, but not limited to, propane, helium, and oxygen.(G)(H) A lithium battery.(H)(I) A product containing asbestos, mercury, or polychlorinated biphenyls.(I)(J) An electronic delivery system of a nicotine or non-nicotine aerosolized or vaporized solution to a person, including electronic cigarettes and vape pens.(J)(K) A product that is ignitable, toxic, corrosive, or reactive, that is added by the department via the assessment described in subdivision (d) of Section 25218.52, and that is not exempted.(2) Covered product does not include any of the following:(A) A product subject to another statewide stewardship or advanced disposal fee-based program for collection or management pursuant to state law.(B)A health and beauty product.(B) Cosmetics, drugs, or food.(C) Personal care items, including, but not limited to, hand soap, shampoo, or toothpaste.(C)(D) A product otherwise listed in paragraph (1) for which the producer demonstrates to the department that the product meets both of the following criteria:(i) The product is not ignitable, toxic, corrosive, or reactive.(ii) The product may safely be collected through a residential recycling collection service, residential organic waste collection, or residential solid waste collection.(D)(E) A parasiticide used to treat, or administered to, companion animals and that is regulated by the United States Environmental Protection Agency under the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. Sec. 136 et seq.).(F) A product subject to alternative management standards pursuant to Article 11.2 (commencing with Section 25230).(g) Department means the Department of Toxic Substances Control.(h) Importer means either of the following:(1) A person qualifying as an importer of record for purposes of Section 1484(a)(2)(B) of Title 19 of the United States Code with regard to the import of a covered product that is sold, distributed for sale, or offered for sale in or into the state that was manufactured or assembled by a company outside of the United States.(2) A person importing into the state for sale, distributing for sale, or offering for sale in the state a covered product that was manufactured or assembled by a company physically located outside of the state.(i) Participant producer means a producer that is registered with the producer responsibility organization.(j) (1) Producer means a person who manufactures a covered product and who sells, offers for sale, or distributes a covered product into the state under the persons own name or brand.(2) If there is no person in the state who is the producer for purposes of paragraph (1), the producer of the covered product is the owner or exclusive licensee of a brand under which the covered product is sold or distributed into the state. For purposes of this subdivision, an exclusive licensee is a person holding the exclusive right to use a brand in the state in connection with the manufacture, sale, or distribution for sale in or into the state of the covered product.(3) If there is no person in the state who is the producer for purposes of paragraph (1) or (2), the producer of the covered product is the person that imports the covered product into the state for sale, distribution, or installation.(4) If there is no person in the state who is the producer for purposes of paragraph (1), (2), or (3), the producer of the covered product is the distributor, retailer, dealer, or wholesaler who sells the product in or into the state.(5) For purposes of this article, the sale of a covered product shall be deemed to occur in the state if the covered product is delivered to the consumer in the state.(k) Producer responsibility organization means an organization that is exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986, is formed for the purpose of implementing a plan to meet the requirements of this article, and is approved by the department . department.(l) Producer responsibility plan means the plan developed by a producer responsibility organization for the collection, transportation, and the safe and proper management of covered products pursuant to this article and submitted to the department for approval pursuant to Section 25218.55.(m) Sell or sales has the same meaning as set forth in Section 6006 of the Revenue and Taxation Code.25218.52. (a) (1) Except as provided in Section 25218.55, the department shall adopt, amend, or repeal regulations to implement this article, in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The department shall not adopt regulations pursuant to this section with an effective date earlier than July 1, 2028.(2) As part of the regulations described in this section, the department shall establish a baseline amount of covered products improperly disposed of and shall measure progress towards meeting the performance-based standards in Section 25218.56.(b) On or before January 1, 2027, the department shall establish and post on its internet website a list of covered product categories.(c) On or before January 1, 2028, the department shall approve one, and only one, producer responsibility organization that meets the requirements of this article.(d) On or before January 1, 2032, and every five years after, the department may conduct an assessment to identify household hazardous waste that is not included in the producer responsibility plan and adjust the covered product categories, if needed, to achieve the purpose of this article. The department may select an independent third-party contractor to complete the assessment. The department shall make its determination and rationale available for public review. 25218.53. (a) No later than 90 days after the departments approval of the producer responsibility organization, pursuant to Section 25218.52, a producer shall register with the producer responsibility organization in accordance with the procedures and requirements established by the producer responsibility organization.(b) No later than 30 days after the effective date of the regulations described in Section 25218.52, a producer, or the producer responsibility organization on behalf of the producer, shall notify the department electronically that the producer has registered with the producer responsibility organization.(c) Upon approval of a producer responsibility plan pursuant to Section 25218.55, a producer shall not sell, offer for sale, import, or distribute a covered product in the state unless all of the following conditions are met:(1) The producer is registered with the producer responsibility organization.(2) The covered product is accounted for in the producer responsibility plan.(3) The department has approved the producer responsibility plan.(d) If an entity does not meet the definition of a producer and is not subject to this article but, at any point, meets the definition of a producer, that entity shall be deemed a producer at that point in time, and shall register with the producer responsibility organization and otherwise comply with the requirements of this article before beginning to sell, offer for sale, import, or distribute a covered product in the state.(e) (1) No later than 180 days after the effective date of the regulations described in Section 25218.52, a producer shall provide to the department, in a form and manner established by the department, both of the following:(A) The producers contact information.(B) A list of covered products and brands of covered products that the producer sells, distributes for sale, imports for sale, or offers for sale in or into the state.(2) A producer shall provide to the department updates to the information described in paragraph (1) on or before January 15 of each year, within 30 days of changes to the contact information or list, and upon the departments request. 25218.54. (a) The producer responsibility organization shall have a governing board consisting of participant producers that represent the diversity of covered products.(b) The producer responsibility organization shall notify the department within 30 calendar days of any of the following:(1) The end of a three-month period during which the producer responsibility organization unsuccessfully attempted to obtain a fee, records, or information from a participant producer.(2) The date that a producer no longer participates in the producer responsibility organizations approved plan.(3) Any instance of noncompliance by a participant producer. (c)The producer responsibility organization may conduct a needs assessment to determine appropriate strategies and investments needed to meet the requirements of this article.(c) The producer responsibility organization shall coordinate with a PRO, as that term is defined in Section 42041 of the Public Resources Code, to ensure that empty packaging and containers for covered products are properly collected and managed either pursuant to this chapter or pursuant to Chapter 3 (commencing with Section 42040) of Part 3 of Division 30 of the Public Resources Code.(d) (1) The producer responsibility organization shall prepare an initial statewide needs assessment designed to determine the necessary steps and investments needed for covered products to achieve the requirements and purposes of this article. The initial needs assessment for covered products shall be completed before the approval of any producer responsibility plan. The producer responsibility organization may select an independent third-party contractor to complete the statewide needs assessment.(2) The producer responsibility organization may prepare more than one needs assessment, with each assessment specific to one or more covered product categories subject to this article, or may prepare one comprehensive needs assessment that includes all covered products subject to this article.(3) The producer responsibility organization shall consult local jurisdictions and other key stakeholders when preparing the needs assessment.(4) The initial statewide needs assessment shall include all of the following:(A) An evaluation of the existing scope and amount of covered products, by covered product category and volume, that are improperly disposed of, properly disposed of through household hazardous waste facilities, and diverted, as applicable, through reuse or recycling, based on data from any existing waste characterization studies conducted by the Department of Resources Recycling and Recovery and including any other data the producer responsibility organization chooses to include.(B) An evaluation of the categories of covered product that contribute to the highest disposal costs.(C) The current reuse, recycling, collection, sorting, and hauling systems in the state and the expanded access and additional reuse, recycling, collection, sorting, and hauling options needed to meet the purposes of this article.(D) The current processes by which containers and packaging for covered products are handled under Chapter 3 (commencing with Section 42040) of Part 3 of Division 30 of the Public Resources Code.(E) Existing state statutory provisions and funding sources related to market development and financial incentives to help achieve the states goals related to reuse, recycling, collection, sorting, hauling, and disposal in state using best management practices.(F) Actions and investments necessary, including, but not limited to, incentive mechanisms, to achieve the purposes of this article.(G) Actions and investments needed to avoid contamination related to reuse and recycling.(H) Whether allowing more than one producer responsibility organization would be beneficial in meeting the requirements of the article.(I) An evaluation of the factors that will be important to successfully implement the malus fees and credits described in Section 25218.58.(J) An evaluation and establishment of appropriate interim targets for the reduction of improper disposal to achieve the purposes of this article.25218.55. (a) Within 12 months of the effective date of the regulations described in Section 25218.52, the producer responsibility organization shall develop and submit a proposed producer responsibility plan to the department, in a form and manner determined by the department.(b) Within six months of receipt of a proposed producer responsibility plan, the department shall approve, approve in part, or disapprove the producer responsibility plan.(c) If the department approves a proposed producer responsibility plan, a revised plan, or a conditionally approved plan, then the department shall notify the producer responsibility organization of the approval. The producer responsibility organization shall implement the approved or conditionally approved plan within 90 days of receipt of the notice of approval, or as otherwise agreed to by the department.(d) If the department disapproves a proposed producer responsibility plan or a revised plan, then the department shall notify the producer responsibility organization of the disapproval and specify the reasons for disapproval. Within 30 days of receipt of the notice of disapproval, the producer responsibility organization shall submit a revised plan.(e) (1) If the department approves a proposed producer responsibility plan or a revised plan in part, then the department shall notify the producer responsibility organization of the partial approval and identify the portions of the producer responsibility plan that do not comply with this article.(2) Within 30 days of receipt of the notice of partial approval, the producer responsibility organization shall submit a revised plan to the department.(3) The producer responsibility organization shall implement the approved parts of the producer responsibility plan within 90 days of receipt of the notice of partial approval, or as otherwise agreed to by the department.(f) Within 30 days of receipt of a revised plan, the department shall approve, approve in part, or disapprove the revised plan.(g) If the department has not approved, approved in part, or disapproved a producer responsibility plan within one year of receipt of the producer responsibility plan, then the producer responsibility plan shall be deemed conditionally approved and the department shall notify the producer responsibility organization of the conditional approval within 30 days.(h) The department may impose additional requirements for any portion of a proposed producer responsibility plan, a revised plan, or a conditionally approved plan that does not comply with this article and that has not been approved. (i) When reviewing a proposed producer responsibility plan, a revised plan, or a conditionally approved plan, the department may solicit information from producers, other agencies or departments, or stakeholders, as the department deems appropriate.(j) The department may review an approved plan or a conditionally approved plan at any time. If the department finds that an approved plan or a conditionally approved plan does not comply with this article, then it may recommend modifications.(k) Any substantial changes to an approved plan shall be submitted to the department for approval.(l) (1) An approved plan and a conditionally approved plan shall be a public record, except that financial, production, or sales data reported by the producer responsibility organization to the department is not a public record for purposes of the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and shall not be open to public inspection. The department may release financial or sales data in summary form only so the information cannot be attributable to a specific entity.(2) The producer responsibility organization may submit to the department a redacted version of the approved plan or conditionally approved plan that removes any proprietary or confidential information.(3) Within 90 days of approval, conditional approval, or revision of a producer responsibility plan, the department shall post on its internet website the producer responsibility plan and a list of all the participant producers covered by the producer responsibility plan. 25218.56. A producer responsibility plan shall meet all of the following criteria:(a) Be designed to ensure the safe and convenient collection and management of covered products at no cost to consumers or local governments.(b) Describe the methods of collection to ensure convenience to customers, including permanent collection sites, temporary collection sites, curbside collection, and collection events.(c) Include as a permanent collection site a local household hazardous waste collection facility, as defined in subdivision (h) of Section 25218.1, that offers in writing to participate in the program.(d) Describe opportunities for collection and management of covered products for residents of the state on weekdays outside of the hours of 8:00 a.m. to 5:00 p.m., and on weekends.(e) Include strategies to ensure that elderly consumers, disabled consumers, and any other consumers with limited mobility, have access to the safe and proper collection and management of covered products, including opportunities to have covered products collected.(f) Describe how the producer responsibility organization will leverage and use existing collection programs and infrastructure.(g) (1) Ensure a decrease in the aggregate percentage of covered products improperly disposed of by 40 percent by 2036, as measured against the baseline determined pursuant to Section 25218.52.(2) The department may set an interim diversion target for the years 2026 to 2035, inclusive.(3) The department may set a diversion target for 2037, and for each year thereafter, that is in excess of the diversion target specified in paragraph (1).(h) (1) Ensure at least 70 percent of California consumers are aware of the program implemented by the producer responsibility organization by 2036.(2) The department may set an interim consumer awareness target for the years 2026 to 2035, inclusive.(3) The department may set a consumer awareness target for 2037, and for each year thereafter, that is in excess of the consumer awareness target specified in paragraph (1).(i) Describe how the producer responsibility organization will incentivize minimizing disposal of covered products, when feasible, including through reuse, recycling, and reducing the amount of covered products being disposed of.(j) Include the contact information of each participant producer.(k) Include a financial section that demonstrates how the producer responsibility organization will comply with Section 25218.58, including, but not limited to, a five-year budget that demonstrates how the producer responsibility organization will comply with subdivision (b) of Section 25218.58.(l) Include a section describing the producer responsibility organizations contingency plan in the event the producer responsibility plan expires or is revoked. The contingency plan shall guarantee that all the contracts, financial data, and any other necessary authority and assets to operate the program shall vest in a trustee approved by the department. The trustee shall operate the most recently approved plan, subject to the direction of the department, until such time as a new producer responsibility plan is approved. Upon the expiration or revocation of a producer responsibility plan, the balance of the producer responsibility organizations operating reserves collected shall be transferred to the control of the trustee within five calendar days. All documents, digital records, contracts, and files related to the operation of the producer responsibility plan shall be transferred to the control of the trustee within five calendar days.(m) Include a section describing a comprehensive statewide education and outreach program designed to educate consumers and promote participation in the program offered by the producer responsibility organization. This shall include a description of efforts to support participation by all California communities, including a description of efforts to communicate with consumers in languages other than English. The comprehensive statewide education and outreach program shall do all of the following:(1) Promote the safe and proper management of a covered product and shall not promote the disposal of a covered product in a manner inconsistent with the services offered by the producer responsibility plan.(2) Include information for consumers on how to properly manage a covered product at the time of disposal and how to avoid improper disposal of a covered product.(3) Include information for consumers about how to reduce the amount of covered products being disposed of and how to participate in reuse opportunities for covered products.(4) Include information related to environmentally preferable purchasing and how to identify less hazardous alternatives. 25218.57. (a) The producer responsibility organization shall review its approved plan at least every five years and determine whether revisions are necessary.(b) If the producer responsibility organization determines that revisions to its approved plan are necessary, the producer responsibility organization shall submit to the department a revised plan for review and approval using the procedures set forth in Section 25218.55. The producer responsibility organization shall submit the revised plan to the department at least 12 months before the review deadline outlined in subdivision (a). The revised plan shall include a cover letter that summarizes the revisions to the producer responsibility plan.(c) If the producer responsibility organization determines that no revisions to the approved plan are necessary, the producer responsibility organization shall send a letter to the department 12 months before the review deadline outlined in subdivision (a) explaining that the producer responsibility organization has reviewed the approved plan and determined that no revisions are needed. The department may disapprove the producer responsibility organizations determination within 30 days of receipt of the letter if the department concludes that the producer responsibility organization cannot implement the objectives of this article without revising the approved plan. If the department disapproves the producer responsibility organizations determination, the department may indicate to the producer responsibility organization which sections of the approved plan need revision and the producer responsibility organization shall submit to the department a revised plan for review and approval, following the procedures set forth in Section 25218.55. The producer responsibility organization shall submit the revised plan pursuant to this subdivision within 60 days of receipt of the departments disapproval.(d) The department may consult with or submit the revised plan to another state agency or department if the department determines it is necessary for making its determination. The duration of time the department takes for this consultation is not included in the time allotted to the department for review pursuant to this section. 25218.58. The producer responsibility organization shall do all of the following:(a) (1) Establish a method for fully funding the producer responsibility organization and implementing an approved producer responsibility plan in a manner that equitably distributes the producer responsibility plans costs among participant producers in a manner that reflects sales volumes, consideration of the cost of managing their specific covered products according to the approved producer responsibility plan, and malus fees or credits pursuant to paragraph (2).(2) The distribution of the producer responsibility plans costs shall incorporate malus fees or credits for participant producers, with adjustments based on any of the following, as applicable:(A) (i) Actions taken by the participant producer to invest in sustainable packaging or product reuse and refill systems that ensure the covered product does not become waste, either through the waste stream or illegal dumping.(ii) Clause (i) does not apply to a packaging product subject to another statewide stewardship or advanced disposal fee-based program for collection or management pursuant to state law.(B) Actions taken by the participant producer, including clear and accurate labeling and instructions, that improve consumer behavior related to sorting and proper disposal of the covered product.(C) Actions taken by the participant producer to reduce the relative toxicity, ignitability, corrosiveness, or reactivity of the covered product.(b) (1) Operate on a budget that establishes a funding level sufficient to operate the producer responsibility organization in a prudent and responsible manner. The budget shall demonstrate how the producer responsibility organizations estimated revenues will cover all of its budgeted costs for each cost category. Budgeted cost categories shall include, but are not limited to, administrative costs, capital costs, and a reserve.(2) Administrative costs shall include the actual and reasonable regulatory costs incurred by the department, which includes full personnel costs, to implement and enforce this article, consistent with the regulations described in Section 25218.52. For purposes of this paragraph, producer responsibility organization implementation begins upon approval of the producer responsibility organizations producer responsibility plan, except that costs shall include actual regulatory development costs and other startup costs incurred before a producer responsibility plans submittal and approval.(3) The reserve shall include funds to operate the producer responsibility organization if there are unexpected events, losses of income, or large unbudgeted expenses. The reserve shall also protect the infrastructure that the producer responsibility organization relies on in its producer responsibility plan during any lapse in producer participation during the life of the program. The reserve cost category shall include a reserve level amount description justifying the reserve level amount indicated. The producer responsibility organization shall maintain reserve funds sufficient to operate the producer responsibility plan for not less than six months. When a new producer responsibility organization is approved by the department, the producer responsibility organization shall establish its reserve and maintain the required reserve fund balance by the end of the second year of producer responsibility plan operation. If the producer responsibility organizations producer responsibility plan expires or is revoked, the reserve balance shall be transferred to a successor producer responsibility organization or a trustee pursuant to the portion of the producer responsibility plan described in subdivision (f) of Section 25218.56.(c) On a schedule determined by the department, pay the department fees to cover the departments regulatory costs, as described in Section 25218.60.(d) Establish a process by which the financial activities of the producer responsibility organization that are related to implementation of the producer responsibility plan will be subject to an independent audit consistent with generally accepted accounting principles and pursuant to Section 25218.63.(e) Provide written certification by an authorized representative of the producer responsibility organization that, at the time of submission to the department, all aspects of the producer responsibility plan are in compliance with all applicable state and federal laws and regulations.(f) Have adequate financial responsibility and financial controls in place, including fraud prevention measures, to ensure proper management of funds.25218.59. Each participant producer shall, through the producer responsibility organization, pay all administrative and operational costs associated with establishing and implementing the producer responsibility organizations approved plan, including the cost of the collection, transportation, and safe and proper management of covered products, including covered products that have been illegally dumped.25218.60. (a) Within four months of the effective date of the regulations described in Section 25218.52, the department shall notify the producer responsibility organization of the estimated regulatory costs for the department and the criteria for the costs specified in the regulations. Those costs shall include the costs associated with developing the regulations and other department activities that occur before a producer responsibility plans submittal and approval, including, but not limited to, full personnel costs related to implementing and enforcing this article. The costs shall not exceed the departments reasonable regulatory costs to implement and enforce this article.(b) The department shall deposit all moneys received from the producer responsibility organization pursuant to this section into the Household Hazardous Waste Producer Responsibility Fund, which is hereby established in the State Treasury.(c) Upon appropriation by the Legislature, moneys in the Household Hazardous Waste Producer Responsibility Fund shall be expended by the department to implement and enforce this article and to reimburse any outstanding loans made from other funds used to finance the development of the regulations and the startup costs of the departments activities pursuant to this article.(d) The moneys in the Household Hazardous Waste Producer Responsibility Fund shall only be expended for those purposes described in subdivision (c). 25218.61. (a) If the producer responsibility plan relies on a local jurisdiction to collect or manage a covered product, or to otherwise comply with this article, then the producer responsibility organization shall reimburse the local jurisdiction for costs associated with the collection and management of the covered product, including, but not limited to, the cost of providing supplies for the collection of, transportation, and disposal of covered materials, including the jurisdictions labor and administrative costs based on the proportion of covered to noncovered products collected at the facility.(b) Reimbursement costs pursuant to subdivision (a) shall be limited to the actual costs of, supplies, transportation, and management of a covered product, including the costs to reimburse local jurisdictions to collect and manage covered products that have been illegally dumped.25218.62. (a) The producer responsibility organization shall keep board minutes, books, and records that clearly reflect the activities and transactions of the producer responsibility organization for a period of not less than five years.(b) A producer and the producer responsibility organization shall do both of the following:(1) Upon request, provide the department with reasonable and timely access, as determined by the department, to its facilities and operations, as necessary to determine compliance with this article.(2) Within 14 days of a request from the department, provide the department with relevant records, as determined by the department, necessary to determine compliance with this article.(c) The department may audit the producer responsibility organization annually.(d) All reports and records provided to the department pursuant to this article shall be provided under penalty of perjury.(e) The failure of the producer responsibility organization, a participant producer, or their respective agent who holds records to produce documents or data that is requested by the department, required to be collected or generated to carry out operation of the producer responsibility plan in the form and manner determined by the department as part of a department audit, or review of a third-party audit, shall constitute a violation of this article.(f) The department may impose administrative civil penalties pursuant to Section 25218.68 on a producer or producer responsibility organization that fails to provide the department with the access required pursuant to this section.25218.63. (a) The producer responsibility organization shall retain an independent certified public accountant, certified in the United States, to annually audit the accounting books of the producer responsibility organization. The department shall review the independent certified public accountants audit for compliance with this article and consistency with the producer responsibility organizations approved producer responsibility plan and the annual report required by Section 25218.64. After the department conducts its own review, the department shall notify the producer responsibility organization of any conduct or practice that does not comply with this article or of any inconsistencies identified in the review. The producer responsibility organization may obtain copies of the departments review, including proprietary information contained in the departments review, upon request. The producer or producer responsibility organization may request the department withhold from disclosure confidential proprietary information to the extent allowed under Section 1040 of the Evidence Code and the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).(b) The items submitted to the department for its review of the independent audit shall include all of the following:(1) Financial statements audited in accordance with generally accepted accounting principles.(2) An audit of the producer responsibility organizations compliance with this article.(3) An audit of the producer responsibility organizationss adherence to, execution of, and consistency with its approved plan.(c) The producer responsibility organization shall include the independent audit in its annual report submitted to the department pursuant to Section 25218.64 commencing within 18 months of the producer responsibility plans approval by the department 25218.64. On or before January 1 of each year, the producer responsibility organization shall submit to the department, and make publicly available, an annual report, in a format prescribed by the department, that includes, at minimum, all of the following information for the preceding calendar year, unless otherwise specified:(a) The producer responsibility organizations costs, according to the cost categories established in the producer responsibility plan, and revenues.(b) A summary of any anticipated changes to allocations in cost categories for the next calendar year.(c) Any changes to the distribution of costs to the participant producers.(d) Updated contact information for participant producers.(e) An estimate of the quantity of covered products sold in or into the state by participant producers, as determined by the best available commercial data.(f) A summary of efforts made as part of the comprehensive statewide education and outreach program, as required by subdivision (f) of Section 25218.56, including the producer responsibility organizations evaluation of the effectiveness of the program.(g) Recommendations for any future proposed substantial changes to the producer responsibility plan.(h) Any other information required by the regulations described in Section 25218.52. 25218.65. (a) No later than 120 days after the date the department receives an annual report pursuant to Section 25218.64, the department shall notify the producer responsibility organization if the annual report is compliant or noncompliant.(b) If the department determines that the annual report is noncompliant due to failure to meet the requirements of this article, the department may require the resubmittal of the annual report and take enforcement action.(c) The department may consult with or submit the annual report to a state agency or department if it determines it is necessary to determine the annual reports compliance or noncompliance. 25218.66. A retailer, dealer, importer, or distributor shall not sell, distribute, offer for sale, or import a covered product in or into the state unless the producer of the covered product is listed as a compliant producer pursuant to Section 25218.67 or has received a certification letter described in subdivision (e) of Section 25218.67.25218.67. (a) Within 12 months of the effective date of the regulations described in Section 25218.52, and on or before July 1 of each year thereafter, the department shall publish on the departments internet website a list of the names of producers that are compliant with this article. The department shall list, as appropriate, the reported brands of covered products for each producer.(b) A retailer, importer, or distributor shall monitor the departments internet website to determine if a producer, brand, or covered product is in compliance with this article.(c) Notwithstanding any other provision of this article, upon identification of a producer that is not registered with the producer responsibility organization with an approved producer responsibility plan, the department shall issue a notice of noncompliance to the producer.(d) If the department determines a producer is not in compliance with this article, the department shall remove the producer and its brands of covered products from the compliance list on its internet website.(e) The department shall provide a certification letter to a producer that is not listed on the departments internet website as a compliant producer, but that has demonstrated compliance with this article to the department. The certification letter shall state that the producer is in compliance with this article. The department may update the compliance list on its website. 25218.68. (a) The department may impose a civil penalty on any producer or stewardship organization that is in violation of this article of up to the following amounts:(1) Ten thousand dollars ($10,000) per day.(2) Fifty thousand dollars ($50,000) per day if the violation is intentional or knowing.(b) In assessing or reviewing the amount of a civil penalty imposed pursuant to subdivision (a) for a violation of this article, the department or the court shall consider all of the following:(1) The nature and extent of the violation.(2) The number and severity of the violation or violations.(3) The economic effect of the penalty on the violator.(4) Whether the violator took good faith measures to comply with this article and the period of time over which these noncompliant actions were taken.(5) The willfulness of the violators misconduct.(6) The deterrent effect that the imposition of the penalty would have on both the violator and the regulated community.(7) Any other factor that justice may require.(c) Upon a written finding that a producer responsibility organization, producer, importer, or any other party regulated pursuant to this article has not met a material requirement of this article, in addition to any other penalties authorized pursuant to this article, the department may take one or all of the following actions to ensure compliance with the requirements of this article, after affording the producer responsibility organization, producer, importer, or any other party regulated pursuant to this article, an opportunity to respond to or rebut the finding:(1) Revoke the producer responsibility organizations approved producer responsibility plan or require the producer responsibility organization to resubmit the producer responsibility plan, in whole or in part.(2) Require additional reporting relating to compliance with the material requirements of this article that were not met.(3) Approve a producer responsibility plan submitted by another producer responsibility organization.(d) The department shall deposit all penalties collected pursuant to this section into the Household Hazardous Waste Products Penalty Account, which is hereby created in the Household Hazardous Waste Producer Responsibility Fund. Upon appropriation by the Legislature, moneys in the Household Hazardous Waste Products Penalty Account shall be available for expenditure by the department for activities related to the collection, reuse, and recycling of covered products, grants for related purposes, and the administration and enforcement of this article.(e) The Administrative Adjudication Bill of Rights (Article 6 (commencing with Section 11425.10) of Chapter 4.5 of Part 1 of Division 3 of Title 2 of the Government Code) applies to hearings conducted pursuant to this article and mandates minimum due process requirements. 25218.69. (a) After the time for judicial review under Section 11523 of the Government Code has expired, the department may apply to the small claims court or superior court, depending on the jurisdictional amount and any other remedy sought, in the county where the penalties, restitution, or other remedy was imposed by the department, for a judgment to collect any unpaid civil penalties or restitution or to enforce any other remedy provided by this article. The application, which shall include a certified copy of the final agency order or decision, shall constitute a sufficient showing to warrant the issuance of the judgment. The court clerk shall enter the judgment immediately in conformity with the application. The judgment so entered shall have the same force and effect as, and shall be subject to all laws relating to, a judgment in a civil action and may be enforced in the same manner as any other judgment of the court. The court shall make enforcement of the judgment a priority.(b) If a person has engaged in or is about to engage in an act, practice, or omission that constitutes, or will constitute, a violation of this article, the Attorney General may, at the request of the director of the department or upon the Attorney Generals own determination, bring an action in superior court for an order enjoining the act, practice, or omission. The order may require remedial measures and direct compliance with this article. Upon a showing that the person has engaged in or is about to engage in that act, practice, or omission, the superior court may issue a permanent or temporary injunction, restraining order, or other order, as appropriate. 25218.70. In support of this article, the Department of Resources Recycling and Recovery shall include both of the following in updates to the applicable waste characterization study:(a) The amount of covered products, by covered product category, that was improperly disposed of and observed in the waste characterization study.(b) In an appendix, the amount of covered products, by covered product category, properly collected and managed by a household hazardous waste collection facility.25218.71. (a) Except as provided in subdivision (b), an action that is taken by a producer or producer responsibility organization 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), the Unfair Practices Act (Chapter 4 (commencing with Section 17000) of Part 2 of Division 7 of the Business and Professions Code), or the Unfair Competition Law (Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code) to the extent the producer or producer responsibility organization is exercising authority pursuant to this article.(b) Subdivision (a) applies to all of the following actions taken by a producer responsibility organization:(1) The creation, implementation, or management of a producer responsibility plan approved or conditionally approved by the department pursuant to this article and the determination of the types or quantities of covered products recycled or otherwise managed pursuant to the producer responsibility plan.(2) The determination of the cost and structure of an approved producer responsibility plan.(3) The establishment, administration, collection, or disbursement of a charge associated with funding the implementation of this article.(c) Subdivision (a) does not apply to an agreement that does any of the following:(1) Fixes a price of or for covered products.(2) Fixes the output or production of covered products.(3) Restricts the geographic area in which, or customers to whom, covered products will be sold.
Article 10.8.5. Household Hazardous Waste Producer Responsibility Act
Article 10.8.5. Household Hazardous Waste Producer Responsibility Act
25218.50. (a) This article shall be known, and may be cited, as the Household Hazardous Waste Producer Responsibility Act.(b) The purpose of this article is to provide for the safe and proper management of household hazardous waste, which poses a threat to public health and safety, is costly for Californias local governments, and may cause significant damage to the environment when managed improperly.
25218.50. (a) This article shall be known, and may be cited, as the Household Hazardous Waste Producer Responsibility Act.
(b) The purpose of this article is to provide for the safe and proper management of household hazardous waste, which poses a threat to public health and safety, is costly for Californias local governments, and may cause significant damage to the environment when managed improperly.
25218.51. For purposes of this article, the following definitions apply:(a) (1) Approved plan means a producer responsibility plan that has been approved by the department pursuant to Section 25218.55 and that has not been revoked by the department pursuant to Section 25218.68.(2) A conditionally approved plan is an approved plan, except as used in Section 25218.55.(3) A partially approved plan is not an approved plan.(b) Brand means a name, symbol, word, or mark that identifies a covered product rather than its components, and attributes the covered product to the owner or licensee of the brand as the producer.(c) Consumer means a purchaser, owner, or lessee of a covered product, including a person, business, corporation, limited partnership, nonprofit organization, or governmental entity.(d) Consumer product means a commodity that is intended for use for personal, family, or household purposes, or that is present in the same form, concentration, and quantity as a product prepackaged for distribution to a consumer for personal, family, or household purposes, and is handled at, and found in, a retail establishment and intended for direct sale to the end user.(e) Contact information means a name, physical address, mailing address, email address, and telephone number.(f) (1) Covered product means a consumer product that is one or more of the following:(A) A pesticide, as defined in Section 12753 of the Food and Agricultural Code.(B) An aerosol.(C) An oxidizer.(D) An adhesive, glue, cleaner, degreaser, or solvent, which adhesive or glue, which is ignitable, toxic, corrosive, or reactive.(E) A designated product, as defined in Section 108952, which is ignitable, toxic, or reactive.(E)A(F) An automotive product that is a lubricant, oil, antifreeze, cleaner, wax, or degreaser, which is an automotive product used for purposes of maintaining the function of a motor vehicle, as defined in Section 670 of the Vehicle Code.(F)(G) A compressed gas, including, but not limited to, propane, helium, and oxygen.(G)(H) A lithium battery.(H)(I) A product containing asbestos, mercury, or polychlorinated biphenyls.(I)(J) An electronic delivery system of a nicotine or non-nicotine aerosolized or vaporized solution to a person, including electronic cigarettes and vape pens.(J)(K) A product that is ignitable, toxic, corrosive, or reactive, that is added by the department via the assessment described in subdivision (d) of Section 25218.52, and that is not exempted.(2) Covered product does not include any of the following:(A) A product subject to another statewide stewardship or advanced disposal fee-based program for collection or management pursuant to state law.(B)A health and beauty product.(B) Cosmetics, drugs, or food.(C) Personal care items, including, but not limited to, hand soap, shampoo, or toothpaste.(C)(D) A product otherwise listed in paragraph (1) for which the producer demonstrates to the department that the product meets both of the following criteria:(i) The product is not ignitable, toxic, corrosive, or reactive.(ii) The product may safely be collected through a residential recycling collection service, residential organic waste collection, or residential solid waste collection.(D)(E) A parasiticide used to treat, or administered to, companion animals and that is regulated by the United States Environmental Protection Agency under the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. Sec. 136 et seq.).(F) A product subject to alternative management standards pursuant to Article 11.2 (commencing with Section 25230).(g) Department means the Department of Toxic Substances Control.(h) Importer means either of the following:(1) A person qualifying as an importer of record for purposes of Section 1484(a)(2)(B) of Title 19 of the United States Code with regard to the import of a covered product that is sold, distributed for sale, or offered for sale in or into the state that was manufactured or assembled by a company outside of the United States.(2) A person importing into the state for sale, distributing for sale, or offering for sale in the state a covered product that was manufactured or assembled by a company physically located outside of the state.(i) Participant producer means a producer that is registered with the producer responsibility organization.(j) (1) Producer means a person who manufactures a covered product and who sells, offers for sale, or distributes a covered product into the state under the persons own name or brand.(2) If there is no person in the state who is the producer for purposes of paragraph (1), the producer of the covered product is the owner or exclusive licensee of a brand under which the covered product is sold or distributed into the state. For purposes of this subdivision, an exclusive licensee is a person holding the exclusive right to use a brand in the state in connection with the manufacture, sale, or distribution for sale in or into the state of the covered product.(3) If there is no person in the state who is the producer for purposes of paragraph (1) or (2), the producer of the covered product is the person that imports the covered product into the state for sale, distribution, or installation.(4) If there is no person in the state who is the producer for purposes of paragraph (1), (2), or (3), the producer of the covered product is the distributor, retailer, dealer, or wholesaler who sells the product in or into the state.(5) For purposes of this article, the sale of a covered product shall be deemed to occur in the state if the covered product is delivered to the consumer in the state.(k) Producer responsibility organization means an organization that is exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986, is formed for the purpose of implementing a plan to meet the requirements of this article, and is approved by the department . department.(l) Producer responsibility plan means the plan developed by a producer responsibility organization for the collection, transportation, and the safe and proper management of covered products pursuant to this article and submitted to the department for approval pursuant to Section 25218.55.(m) Sell or sales has the same meaning as set forth in Section 6006 of the Revenue and Taxation Code.
25218.51. For purposes of this article, the following definitions apply:
(a) (1) Approved plan means a producer responsibility plan that has been approved by the department pursuant to Section 25218.55 and that has not been revoked by the department pursuant to Section 25218.68.
(2) A conditionally approved plan is an approved plan, except as used in Section 25218.55.
(3) A partially approved plan is not an approved plan.
(b) Brand means a name, symbol, word, or mark that identifies a covered product rather than its components, and attributes the covered product to the owner or licensee of the brand as the producer.
(c) Consumer means a purchaser, owner, or lessee of a covered product, including a person, business, corporation, limited partnership, nonprofit organization, or governmental entity.
(d) Consumer product means a commodity that is intended for use for personal, family, or household purposes, or that is present in the same form, concentration, and quantity as a product prepackaged for distribution to a consumer for personal, family, or household purposes, and is handled at, and found in, a retail establishment and intended for direct sale to the end user.
(e) Contact information means a name, physical address, mailing address, email address, and telephone number.
(f) (1) Covered product means a consumer product that is one or more of the following:
(A) A pesticide, as defined in Section 12753 of the Food and Agricultural Code.
(B) An aerosol.
(C) An oxidizer.
(D) An adhesive, glue, cleaner, degreaser, or solvent, which adhesive or glue, which is ignitable, toxic, corrosive, or reactive.
(E) A designated product, as defined in Section 108952, which is ignitable, toxic, or reactive.
(E)A
(F) An automotive product that is a lubricant, oil, antifreeze, cleaner, wax, or degreaser, which is an automotive product used for purposes of maintaining the function of a motor vehicle, as defined in Section 670 of the Vehicle Code.
(F)
(G) A compressed gas, including, but not limited to, propane, helium, and oxygen.
(G)
(H) A lithium battery.
(H)
(I) A product containing asbestos, mercury, or polychlorinated biphenyls.
(I)
(J) An electronic delivery system of a nicotine or non-nicotine aerosolized or vaporized solution to a person, including electronic cigarettes and vape pens.
(J)
(K) A product that is ignitable, toxic, corrosive, or reactive, that is added by the department via the assessment described in subdivision (d) of Section 25218.52, and that is not exempted.
(2) Covered product does not include any of the following:
(A) A product subject to another statewide stewardship or advanced disposal fee-based program for collection or management pursuant to state law.
(B)A health and beauty product.
(B) Cosmetics, drugs, or food.
(C) Personal care items, including, but not limited to, hand soap, shampoo, or toothpaste.
(C)
(D) A product otherwise listed in paragraph (1) for which the producer demonstrates to the department that the product meets both of the following criteria:
(i) The product is not ignitable, toxic, corrosive, or reactive.
(ii) The product may safely be collected through a residential recycling collection service, residential organic waste collection, or residential solid waste collection.
(D)
(E) A parasiticide used to treat, or administered to, companion animals and that is regulated by the United States Environmental Protection Agency under the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. Sec. 136 et seq.).
(F) A product subject to alternative management standards pursuant to Article 11.2 (commencing with Section 25230).
(g) Department means the Department of Toxic Substances Control.
(h) Importer means either of the following:
(1) A person qualifying as an importer of record for purposes of Section 1484(a)(2)(B) of Title 19 of the United States Code with regard to the import of a covered product that is sold, distributed for sale, or offered for sale in or into the state that was manufactured or assembled by a company outside of the United States.
(2) A person importing into the state for sale, distributing for sale, or offering for sale in the state a covered product that was manufactured or assembled by a company physically located outside of the state.
(i) Participant producer means a producer that is registered with the producer responsibility organization.
(j) (1) Producer means a person who manufactures a covered product and who sells, offers for sale, or distributes a covered product into the state under the persons own name or brand.
(2) If there is no person in the state who is the producer for purposes of paragraph (1), the producer of the covered product is the owner or exclusive licensee of a brand under which the covered product is sold or distributed into the state. For purposes of this subdivision, an exclusive licensee is a person holding the exclusive right to use a brand in the state in connection with the manufacture, sale, or distribution for sale in or into the state of the covered product.
(3) If there is no person in the state who is the producer for purposes of paragraph (1) or (2), the producer of the covered product is the person that imports the covered product into the state for sale, distribution, or installation.
(4) If there is no person in the state who is the producer for purposes of paragraph (1), (2), or (3), the producer of the covered product is the distributor, retailer, dealer, or wholesaler who sells the product in or into the state.
(5) For purposes of this article, the sale of a covered product shall be deemed to occur in the state if the covered product is delivered to the consumer in the state.
(k) Producer responsibility organization means an organization that is exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986, is formed for the purpose of implementing a plan to meet the requirements of this article, and is approved by the department . department.
(l) Producer responsibility plan means the plan developed by a producer responsibility organization for the collection, transportation, and the safe and proper management of covered products pursuant to this article and submitted to the department for approval pursuant to Section 25218.55.
(m) Sell or sales has the same meaning as set forth in Section 6006 of the Revenue and Taxation Code.
25218.52. (a) (1) Except as provided in Section 25218.55, the department shall adopt, amend, or repeal regulations to implement this article, in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The department shall not adopt regulations pursuant to this section with an effective date earlier than July 1, 2028.(2) As part of the regulations described in this section, the department shall establish a baseline amount of covered products improperly disposed of and shall measure progress towards meeting the performance-based standards in Section 25218.56.(b) On or before January 1, 2027, the department shall establish and post on its internet website a list of covered product categories.(c) On or before January 1, 2028, the department shall approve one, and only one, producer responsibility organization that meets the requirements of this article.(d) On or before January 1, 2032, and every five years after, the department may conduct an assessment to identify household hazardous waste that is not included in the producer responsibility plan and adjust the covered product categories, if needed, to achieve the purpose of this article. The department may select an independent third-party contractor to complete the assessment. The department shall make its determination and rationale available for public review.
25218.52. (a) (1) Except as provided in Section 25218.55, the department shall adopt, amend, or repeal regulations to implement this article, in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The department shall not adopt regulations pursuant to this section with an effective date earlier than July 1, 2028.
(2) As part of the regulations described in this section, the department shall establish a baseline amount of covered products improperly disposed of and shall measure progress towards meeting the performance-based standards in Section 25218.56.
(b) On or before January 1, 2027, the department shall establish and post on its internet website a list of covered product categories.
(c) On or before January 1, 2028, the department shall approve one, and only one, producer responsibility organization that meets the requirements of this article.
(d) On or before January 1, 2032, and every five years after, the department may conduct an assessment to identify household hazardous waste that is not included in the producer responsibility plan and adjust the covered product categories, if needed, to achieve the purpose of this article. The department may select an independent third-party contractor to complete the assessment. The department shall make its determination and rationale available for public review.
25218.53. (a) No later than 90 days after the departments approval of the producer responsibility organization, pursuant to Section 25218.52, a producer shall register with the producer responsibility organization in accordance with the procedures and requirements established by the producer responsibility organization.(b) No later than 30 days after the effective date of the regulations described in Section 25218.52, a producer, or the producer responsibility organization on behalf of the producer, shall notify the department electronically that the producer has registered with the producer responsibility organization.(c) Upon approval of a producer responsibility plan pursuant to Section 25218.55, a producer shall not sell, offer for sale, import, or distribute a covered product in the state unless all of the following conditions are met:(1) The producer is registered with the producer responsibility organization.(2) The covered product is accounted for in the producer responsibility plan.(3) The department has approved the producer responsibility plan.(d) If an entity does not meet the definition of a producer and is not subject to this article but, at any point, meets the definition of a producer, that entity shall be deemed a producer at that point in time, and shall register with the producer responsibility organization and otherwise comply with the requirements of this article before beginning to sell, offer for sale, import, or distribute a covered product in the state.(e) (1) No later than 180 days after the effective date of the regulations described in Section 25218.52, a producer shall provide to the department, in a form and manner established by the department, both of the following:(A) The producers contact information.(B) A list of covered products and brands of covered products that the producer sells, distributes for sale, imports for sale, or offers for sale in or into the state.(2) A producer shall provide to the department updates to the information described in paragraph (1) on or before January 15 of each year, within 30 days of changes to the contact information or list, and upon the departments request.
25218.53. (a) No later than 90 days after the departments approval of the producer responsibility organization, pursuant to Section 25218.52, a producer shall register with the producer responsibility organization in accordance with the procedures and requirements established by the producer responsibility organization.
(b) No later than 30 days after the effective date of the regulations described in Section 25218.52, a producer, or the producer responsibility organization on behalf of the producer, shall notify the department electronically that the producer has registered with the producer responsibility organization.
(c) Upon approval of a producer responsibility plan pursuant to Section 25218.55, a producer shall not sell, offer for sale, import, or distribute a covered product in the state unless all of the following conditions are met:
(1) The producer is registered with the producer responsibility organization.
(2) The covered product is accounted for in the producer responsibility plan.
(3) The department has approved the producer responsibility plan.
(d) If an entity does not meet the definition of a producer and is not subject to this article but, at any point, meets the definition of a producer, that entity shall be deemed a producer at that point in time, and shall register with the producer responsibility organization and otherwise comply with the requirements of this article before beginning to sell, offer for sale, import, or distribute a covered product in the state.
(e) (1) No later than 180 days after the effective date of the regulations described in Section 25218.52, a producer shall provide to the department, in a form and manner established by the department, both of the following:
(A) The producers contact information.
(B) A list of covered products and brands of covered products that the producer sells, distributes for sale, imports for sale, or offers for sale in or into the state.
(2) A producer shall provide to the department updates to the information described in paragraph (1) on or before January 15 of each year, within 30 days of changes to the contact information or list, and upon the departments request.
25218.54. (a) The producer responsibility organization shall have a governing board consisting of participant producers that represent the diversity of covered products.(b) The producer responsibility organization shall notify the department within 30 calendar days of any of the following:(1) The end of a three-month period during which the producer responsibility organization unsuccessfully attempted to obtain a fee, records, or information from a participant producer.(2) The date that a producer no longer participates in the producer responsibility organizations approved plan.(3) Any instance of noncompliance by a participant producer. (c)The producer responsibility organization may conduct a needs assessment to determine appropriate strategies and investments needed to meet the requirements of this article.(c) The producer responsibility organization shall coordinate with a PRO, as that term is defined in Section 42041 of the Public Resources Code, to ensure that empty packaging and containers for covered products are properly collected and managed either pursuant to this chapter or pursuant to Chapter 3 (commencing with Section 42040) of Part 3 of Division 30 of the Public Resources Code.(d) (1) The producer responsibility organization shall prepare an initial statewide needs assessment designed to determine the necessary steps and investments needed for covered products to achieve the requirements and purposes of this article. The initial needs assessment for covered products shall be completed before the approval of any producer responsibility plan. The producer responsibility organization may select an independent third-party contractor to complete the statewide needs assessment.(2) The producer responsibility organization may prepare more than one needs assessment, with each assessment specific to one or more covered product categories subject to this article, or may prepare one comprehensive needs assessment that includes all covered products subject to this article.(3) The producer responsibility organization shall consult local jurisdictions and other key stakeholders when preparing the needs assessment.(4) The initial statewide needs assessment shall include all of the following:(A) An evaluation of the existing scope and amount of covered products, by covered product category and volume, that are improperly disposed of, properly disposed of through household hazardous waste facilities, and diverted, as applicable, through reuse or recycling, based on data from any existing waste characterization studies conducted by the Department of Resources Recycling and Recovery and including any other data the producer responsibility organization chooses to include.(B) An evaluation of the categories of covered product that contribute to the highest disposal costs.(C) The current reuse, recycling, collection, sorting, and hauling systems in the state and the expanded access and additional reuse, recycling, collection, sorting, and hauling options needed to meet the purposes of this article.(D) The current processes by which containers and packaging for covered products are handled under Chapter 3 (commencing with Section 42040) of Part 3 of Division 30 of the Public Resources Code.(E) Existing state statutory provisions and funding sources related to market development and financial incentives to help achieve the states goals related to reuse, recycling, collection, sorting, hauling, and disposal in state using best management practices.(F) Actions and investments necessary, including, but not limited to, incentive mechanisms, to achieve the purposes of this article.(G) Actions and investments needed to avoid contamination related to reuse and recycling.(H) Whether allowing more than one producer responsibility organization would be beneficial in meeting the requirements of the article.(I) An evaluation of the factors that will be important to successfully implement the malus fees and credits described in Section 25218.58.(J) An evaluation and establishment of appropriate interim targets for the reduction of improper disposal to achieve the purposes of this article.
25218.54. (a) The producer responsibility organization shall have a governing board consisting of participant producers that represent the diversity of covered products.
(b) The producer responsibility organization shall notify the department within 30 calendar days of any of the following:
(1) The end of a three-month period during which the producer responsibility organization unsuccessfully attempted to obtain a fee, records, or information from a participant producer.
(2) The date that a producer no longer participates in the producer responsibility organizations approved plan.
(3) Any instance of noncompliance by a participant producer.
(c)The producer responsibility organization may conduct a needs assessment to determine appropriate strategies and investments needed to meet the requirements of this article.
(c) The producer responsibility organization shall coordinate with a PRO, as that term is defined in Section 42041 of the Public Resources Code, to ensure that empty packaging and containers for covered products are properly collected and managed either pursuant to this chapter or pursuant to Chapter 3 (commencing with Section 42040) of Part 3 of Division 30 of the Public Resources Code.
(d) (1) The producer responsibility organization shall prepare an initial statewide needs assessment designed to determine the necessary steps and investments needed for covered products to achieve the requirements and purposes of this article. The initial needs assessment for covered products shall be completed before the approval of any producer responsibility plan. The producer responsibility organization may select an independent third-party contractor to complete the statewide needs assessment.
(2) The producer responsibility organization may prepare more than one needs assessment, with each assessment specific to one or more covered product categories subject to this article, or may prepare one comprehensive needs assessment that includes all covered products subject to this article.
(3) The producer responsibility organization shall consult local jurisdictions and other key stakeholders when preparing the needs assessment.
(4) The initial statewide needs assessment shall include all of the following:
(A) An evaluation of the existing scope and amount of covered products, by covered product category and volume, that are improperly disposed of, properly disposed of through household hazardous waste facilities, and diverted, as applicable, through reuse or recycling, based on data from any existing waste characterization studies conducted by the Department of Resources Recycling and Recovery and including any other data the producer responsibility organization chooses to include.
(B) An evaluation of the categories of covered product that contribute to the highest disposal costs.
(C) The current reuse, recycling, collection, sorting, and hauling systems in the state and the expanded access and additional reuse, recycling, collection, sorting, and hauling options needed to meet the purposes of this article.
(D) The current processes by which containers and packaging for covered products are handled under Chapter 3 (commencing with Section 42040) of Part 3 of Division 30 of the Public Resources Code.
(E) Existing state statutory provisions and funding sources related to market development and financial incentives to help achieve the states goals related to reuse, recycling, collection, sorting, hauling, and disposal in state using best management practices.
(F) Actions and investments necessary, including, but not limited to, incentive mechanisms, to achieve the purposes of this article.
(G) Actions and investments needed to avoid contamination related to reuse and recycling.
(H) Whether allowing more than one producer responsibility organization would be beneficial in meeting the requirements of the article.
(I) An evaluation of the factors that will be important to successfully implement the malus fees and credits described in Section 25218.58.
(J) An evaluation and establishment of appropriate interim targets for the reduction of improper disposal to achieve the purposes of this article.
25218.55. (a) Within 12 months of the effective date of the regulations described in Section 25218.52, the producer responsibility organization shall develop and submit a proposed producer responsibility plan to the department, in a form and manner determined by the department.(b) Within six months of receipt of a proposed producer responsibility plan, the department shall approve, approve in part, or disapprove the producer responsibility plan.(c) If the department approves a proposed producer responsibility plan, a revised plan, or a conditionally approved plan, then the department shall notify the producer responsibility organization of the approval. The producer responsibility organization shall implement the approved or conditionally approved plan within 90 days of receipt of the notice of approval, or as otherwise agreed to by the department.(d) If the department disapproves a proposed producer responsibility plan or a revised plan, then the department shall notify the producer responsibility organization of the disapproval and specify the reasons for disapproval. Within 30 days of receipt of the notice of disapproval, the producer responsibility organization shall submit a revised plan.(e) (1) If the department approves a proposed producer responsibility plan or a revised plan in part, then the department shall notify the producer responsibility organization of the partial approval and identify the portions of the producer responsibility plan that do not comply with this article.(2) Within 30 days of receipt of the notice of partial approval, the producer responsibility organization shall submit a revised plan to the department.(3) The producer responsibility organization shall implement the approved parts of the producer responsibility plan within 90 days of receipt of the notice of partial approval, or as otherwise agreed to by the department.(f) Within 30 days of receipt of a revised plan, the department shall approve, approve in part, or disapprove the revised plan.(g) If the department has not approved, approved in part, or disapproved a producer responsibility plan within one year of receipt of the producer responsibility plan, then the producer responsibility plan shall be deemed conditionally approved and the department shall notify the producer responsibility organization of the conditional approval within 30 days.(h) The department may impose additional requirements for any portion of a proposed producer responsibility plan, a revised plan, or a conditionally approved plan that does not comply with this article and that has not been approved. (i) When reviewing a proposed producer responsibility plan, a revised plan, or a conditionally approved plan, the department may solicit information from producers, other agencies or departments, or stakeholders, as the department deems appropriate.(j) The department may review an approved plan or a conditionally approved plan at any time. If the department finds that an approved plan or a conditionally approved plan does not comply with this article, then it may recommend modifications.(k) Any substantial changes to an approved plan shall be submitted to the department for approval.(l) (1) An approved plan and a conditionally approved plan shall be a public record, except that financial, production, or sales data reported by the producer responsibility organization to the department is not a public record for purposes of the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and shall not be open to public inspection. The department may release financial or sales data in summary form only so the information cannot be attributable to a specific entity.(2) The producer responsibility organization may submit to the department a redacted version of the approved plan or conditionally approved plan that removes any proprietary or confidential information.(3) Within 90 days of approval, conditional approval, or revision of a producer responsibility plan, the department shall post on its internet website the producer responsibility plan and a list of all the participant producers covered by the producer responsibility plan.
25218.55. (a) Within 12 months of the effective date of the regulations described in Section 25218.52, the producer responsibility organization shall develop and submit a proposed producer responsibility plan to the department, in a form and manner determined by the department.
(b) Within six months of receipt of a proposed producer responsibility plan, the department shall approve, approve in part, or disapprove the producer responsibility plan.
(c) If the department approves a proposed producer responsibility plan, a revised plan, or a conditionally approved plan, then the department shall notify the producer responsibility organization of the approval. The producer responsibility organization shall implement the approved or conditionally approved plan within 90 days of receipt of the notice of approval, or as otherwise agreed to by the department.
(d) If the department disapproves a proposed producer responsibility plan or a revised plan, then the department shall notify the producer responsibility organization of the disapproval and specify the reasons for disapproval. Within 30 days of receipt of the notice of disapproval, the producer responsibility organization shall submit a revised plan.
(e) (1) If the department approves a proposed producer responsibility plan or a revised plan in part, then the department shall notify the producer responsibility organization of the partial approval and identify the portions of the producer responsibility plan that do not comply with this article.
(2) Within 30 days of receipt of the notice of partial approval, the producer responsibility organization shall submit a revised plan to the department.
(3) The producer responsibility organization shall implement the approved parts of the producer responsibility plan within 90 days of receipt of the notice of partial approval, or as otherwise agreed to by the department.
(f) Within 30 days of receipt of a revised plan, the department shall approve, approve in part, or disapprove the revised plan.
(g) If the department has not approved, approved in part, or disapproved a producer responsibility plan within one year of receipt of the producer responsibility plan, then the producer responsibility plan shall be deemed conditionally approved and the department shall notify the producer responsibility organization of the conditional approval within 30 days.
(h) The department may impose additional requirements for any portion of a proposed producer responsibility plan, a revised plan, or a conditionally approved plan that does not comply with this article and that has not been approved.
(i) When reviewing a proposed producer responsibility plan, a revised plan, or a conditionally approved plan, the department may solicit information from producers, other agencies or departments, or stakeholders, as the department deems appropriate.
(j) The department may review an approved plan or a conditionally approved plan at any time. If the department finds that an approved plan or a conditionally approved plan does not comply with this article, then it may recommend modifications.
(k) Any substantial changes to an approved plan shall be submitted to the department for approval.
(l) (1) An approved plan and a conditionally approved plan shall be a public record, except that financial, production, or sales data reported by the producer responsibility organization to the department is not a public record for purposes of the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and shall not be open to public inspection. The department may release financial or sales data in summary form only so the information cannot be attributable to a specific entity.
(2) The producer responsibility organization may submit to the department a redacted version of the approved plan or conditionally approved plan that removes any proprietary or confidential information.
(3) Within 90 days of approval, conditional approval, or revision of a producer responsibility plan, the department shall post on its internet website the producer responsibility plan and a list of all the participant producers covered by the producer responsibility plan.
25218.56. A producer responsibility plan shall meet all of the following criteria:(a) Be designed to ensure the safe and convenient collection and management of covered products at no cost to consumers or local governments.(b) Describe the methods of collection to ensure convenience to customers, including permanent collection sites, temporary collection sites, curbside collection, and collection events.(c) Include as a permanent collection site a local household hazardous waste collection facility, as defined in subdivision (h) of Section 25218.1, that offers in writing to participate in the program.(d) Describe opportunities for collection and management of covered products for residents of the state on weekdays outside of the hours of 8:00 a.m. to 5:00 p.m., and on weekends.(e) Include strategies to ensure that elderly consumers, disabled consumers, and any other consumers with limited mobility, have access to the safe and proper collection and management of covered products, including opportunities to have covered products collected.(f) Describe how the producer responsibility organization will leverage and use existing collection programs and infrastructure.(g) (1) Ensure a decrease in the aggregate percentage of covered products improperly disposed of by 40 percent by 2036, as measured against the baseline determined pursuant to Section 25218.52.(2) The department may set an interim diversion target for the years 2026 to 2035, inclusive.(3) The department may set a diversion target for 2037, and for each year thereafter, that is in excess of the diversion target specified in paragraph (1).(h) (1) Ensure at least 70 percent of California consumers are aware of the program implemented by the producer responsibility organization by 2036.(2) The department may set an interim consumer awareness target for the years 2026 to 2035, inclusive.(3) The department may set a consumer awareness target for 2037, and for each year thereafter, that is in excess of the consumer awareness target specified in paragraph (1).(i) Describe how the producer responsibility organization will incentivize minimizing disposal of covered products, when feasible, including through reuse, recycling, and reducing the amount of covered products being disposed of.(j) Include the contact information of each participant producer.(k) Include a financial section that demonstrates how the producer responsibility organization will comply with Section 25218.58, including, but not limited to, a five-year budget that demonstrates how the producer responsibility organization will comply with subdivision (b) of Section 25218.58.(l) Include a section describing the producer responsibility organizations contingency plan in the event the producer responsibility plan expires or is revoked. The contingency plan shall guarantee that all the contracts, financial data, and any other necessary authority and assets to operate the program shall vest in a trustee approved by the department. The trustee shall operate the most recently approved plan, subject to the direction of the department, until such time as a new producer responsibility plan is approved. Upon the expiration or revocation of a producer responsibility plan, the balance of the producer responsibility organizations operating reserves collected shall be transferred to the control of the trustee within five calendar days. All documents, digital records, contracts, and files related to the operation of the producer responsibility plan shall be transferred to the control of the trustee within five calendar days.(m) Include a section describing a comprehensive statewide education and outreach program designed to educate consumers and promote participation in the program offered by the producer responsibility organization. This shall include a description of efforts to support participation by all California communities, including a description of efforts to communicate with consumers in languages other than English. The comprehensive statewide education and outreach program shall do all of the following:(1) Promote the safe and proper management of a covered product and shall not promote the disposal of a covered product in a manner inconsistent with the services offered by the producer responsibility plan.(2) Include information for consumers on how to properly manage a covered product at the time of disposal and how to avoid improper disposal of a covered product.(3) Include information for consumers about how to reduce the amount of covered products being disposed of and how to participate in reuse opportunities for covered products.(4) Include information related to environmentally preferable purchasing and how to identify less hazardous alternatives.
25218.56. A producer responsibility plan shall meet all of the following criteria:
(a) Be designed to ensure the safe and convenient collection and management of covered products at no cost to consumers or local governments.
(b) Describe the methods of collection to ensure convenience to customers, including permanent collection sites, temporary collection sites, curbside collection, and collection events.
(c) Include as a permanent collection site a local household hazardous waste collection facility, as defined in subdivision (h) of Section 25218.1, that offers in writing to participate in the program.
(d) Describe opportunities for collection and management of covered products for residents of the state on weekdays outside of the hours of 8:00 a.m. to 5:00 p.m., and on weekends.
(e) Include strategies to ensure that elderly consumers, disabled consumers, and any other consumers with limited mobility, have access to the safe and proper collection and management of covered products, including opportunities to have covered products collected.
(f) Describe how the producer responsibility organization will leverage and use existing collection programs and infrastructure.
(g) (1) Ensure a decrease in the aggregate percentage of covered products improperly disposed of by 40 percent by 2036, as measured against the baseline determined pursuant to Section 25218.52.
(2) The department may set an interim diversion target for the years 2026 to 2035, inclusive.
(3) The department may set a diversion target for 2037, and for each year thereafter, that is in excess of the diversion target specified in paragraph (1).
(h) (1) Ensure at least 70 percent of California consumers are aware of the program implemented by the producer responsibility organization by 2036.
(2) The department may set an interim consumer awareness target for the years 2026 to 2035, inclusive.
(3) The department may set a consumer awareness target for 2037, and for each year thereafter, that is in excess of the consumer awareness target specified in paragraph (1).
(i) Describe how the producer responsibility organization will incentivize minimizing disposal of covered products, when feasible, including through reuse, recycling, and reducing the amount of covered products being disposed of.
(j) Include the contact information of each participant producer.
(k) Include a financial section that demonstrates how the producer responsibility organization will comply with Section 25218.58, including, but not limited to, a five-year budget that demonstrates how the producer responsibility organization will comply with subdivision (b) of Section 25218.58.
(l) Include a section describing the producer responsibility organizations contingency plan in the event the producer responsibility plan expires or is revoked. The contingency plan shall guarantee that all the contracts, financial data, and any other necessary authority and assets to operate the program shall vest in a trustee approved by the department. The trustee shall operate the most recently approved plan, subject to the direction of the department, until such time as a new producer responsibility plan is approved. Upon the expiration or revocation of a producer responsibility plan, the balance of the producer responsibility organizations operating reserves collected shall be transferred to the control of the trustee within five calendar days. All documents, digital records, contracts, and files related to the operation of the producer responsibility plan shall be transferred to the control of the trustee within five calendar days.
(m) Include a section describing a comprehensive statewide education and outreach program designed to educate consumers and promote participation in the program offered by the producer responsibility organization. This shall include a description of efforts to support participation by all California communities, including a description of efforts to communicate with consumers in languages other than English. The comprehensive statewide education and outreach program shall do all of the following:
(1) Promote the safe and proper management of a covered product and shall not promote the disposal of a covered product in a manner inconsistent with the services offered by the producer responsibility plan.
(2) Include information for consumers on how to properly manage a covered product at the time of disposal and how to avoid improper disposal of a covered product.
(3) Include information for consumers about how to reduce the amount of covered products being disposed of and how to participate in reuse opportunities for covered products.
(4) Include information related to environmentally preferable purchasing and how to identify less hazardous alternatives.
25218.57. (a) The producer responsibility organization shall review its approved plan at least every five years and determine whether revisions are necessary.(b) If the producer responsibility organization determines that revisions to its approved plan are necessary, the producer responsibility organization shall submit to the department a revised plan for review and approval using the procedures set forth in Section 25218.55. The producer responsibility organization shall submit the revised plan to the department at least 12 months before the review deadline outlined in subdivision (a). The revised plan shall include a cover letter that summarizes the revisions to the producer responsibility plan.(c) If the producer responsibility organization determines that no revisions to the approved plan are necessary, the producer responsibility organization shall send a letter to the department 12 months before the review deadline outlined in subdivision (a) explaining that the producer responsibility organization has reviewed the approved plan and determined that no revisions are needed. The department may disapprove the producer responsibility organizations determination within 30 days of receipt of the letter if the department concludes that the producer responsibility organization cannot implement the objectives of this article without revising the approved plan. If the department disapproves the producer responsibility organizations determination, the department may indicate to the producer responsibility organization which sections of the approved plan need revision and the producer responsibility organization shall submit to the department a revised plan for review and approval, following the procedures set forth in Section 25218.55. The producer responsibility organization shall submit the revised plan pursuant to this subdivision within 60 days of receipt of the departments disapproval.(d) The department may consult with or submit the revised plan to another state agency or department if the department determines it is necessary for making its determination. The duration of time the department takes for this consultation is not included in the time allotted to the department for review pursuant to this section.
25218.57. (a) The producer responsibility organization shall review its approved plan at least every five years and determine whether revisions are necessary.
(b) If the producer responsibility organization determines that revisions to its approved plan are necessary, the producer responsibility organization shall submit to the department a revised plan for review and approval using the procedures set forth in Section 25218.55. The producer responsibility organization shall submit the revised plan to the department at least 12 months before the review deadline outlined in subdivision (a). The revised plan shall include a cover letter that summarizes the revisions to the producer responsibility plan.
(c) If the producer responsibility organization determines that no revisions to the approved plan are necessary, the producer responsibility organization shall send a letter to the department 12 months before the review deadline outlined in subdivision (a) explaining that the producer responsibility organization has reviewed the approved plan and determined that no revisions are needed. The department may disapprove the producer responsibility organizations determination within 30 days of receipt of the letter if the department concludes that the producer responsibility organization cannot implement the objectives of this article without revising the approved plan. If the department disapproves the producer responsibility organizations determination, the department may indicate to the producer responsibility organization which sections of the approved plan need revision and the producer responsibility organization shall submit to the department a revised plan for review and approval, following the procedures set forth in Section 25218.55. The producer responsibility organization shall submit the revised plan pursuant to this subdivision within 60 days of receipt of the departments disapproval.
(d) The department may consult with or submit the revised plan to another state agency or department if the department determines it is necessary for making its determination. The duration of time the department takes for this consultation is not included in the time allotted to the department for review pursuant to this section.
25218.58. The producer responsibility organization shall do all of the following:(a) (1) Establish a method for fully funding the producer responsibility organization and implementing an approved producer responsibility plan in a manner that equitably distributes the producer responsibility plans costs among participant producers in a manner that reflects sales volumes, consideration of the cost of managing their specific covered products according to the approved producer responsibility plan, and malus fees or credits pursuant to paragraph (2).(2) The distribution of the producer responsibility plans costs shall incorporate malus fees or credits for participant producers, with adjustments based on any of the following, as applicable:(A) (i) Actions taken by the participant producer to invest in sustainable packaging or product reuse and refill systems that ensure the covered product does not become waste, either through the waste stream or illegal dumping.(ii) Clause (i) does not apply to a packaging product subject to another statewide stewardship or advanced disposal fee-based program for collection or management pursuant to state law.(B) Actions taken by the participant producer, including clear and accurate labeling and instructions, that improve consumer behavior related to sorting and proper disposal of the covered product.(C) Actions taken by the participant producer to reduce the relative toxicity, ignitability, corrosiveness, or reactivity of the covered product.(b) (1) Operate on a budget that establishes a funding level sufficient to operate the producer responsibility organization in a prudent and responsible manner. The budget shall demonstrate how the producer responsibility organizations estimated revenues will cover all of its budgeted costs for each cost category. Budgeted cost categories shall include, but are not limited to, administrative costs, capital costs, and a reserve.(2) Administrative costs shall include the actual and reasonable regulatory costs incurred by the department, which includes full personnel costs, to implement and enforce this article, consistent with the regulations described in Section 25218.52. For purposes of this paragraph, producer responsibility organization implementation begins upon approval of the producer responsibility organizations producer responsibility plan, except that costs shall include actual regulatory development costs and other startup costs incurred before a producer responsibility plans submittal and approval.(3) The reserve shall include funds to operate the producer responsibility organization if there are unexpected events, losses of income, or large unbudgeted expenses. The reserve shall also protect the infrastructure that the producer responsibility organization relies on in its producer responsibility plan during any lapse in producer participation during the life of the program. The reserve cost category shall include a reserve level amount description justifying the reserve level amount indicated. The producer responsibility organization shall maintain reserve funds sufficient to operate the producer responsibility plan for not less than six months. When a new producer responsibility organization is approved by the department, the producer responsibility organization shall establish its reserve and maintain the required reserve fund balance by the end of the second year of producer responsibility plan operation. If the producer responsibility organizations producer responsibility plan expires or is revoked, the reserve balance shall be transferred to a successor producer responsibility organization or a trustee pursuant to the portion of the producer responsibility plan described in subdivision (f) of Section 25218.56.(c) On a schedule determined by the department, pay the department fees to cover the departments regulatory costs, as described in Section 25218.60.(d) Establish a process by which the financial activities of the producer responsibility organization that are related to implementation of the producer responsibility plan will be subject to an independent audit consistent with generally accepted accounting principles and pursuant to Section 25218.63.(e) Provide written certification by an authorized representative of the producer responsibility organization that, at the time of submission to the department, all aspects of the producer responsibility plan are in compliance with all applicable state and federal laws and regulations.(f) Have adequate financial responsibility and financial controls in place, including fraud prevention measures, to ensure proper management of funds.
25218.58. The producer responsibility organization shall do all of the following:
(a) (1) Establish a method for fully funding the producer responsibility organization and implementing an approved producer responsibility plan in a manner that equitably distributes the producer responsibility plans costs among participant producers in a manner that reflects sales volumes, consideration of the cost of managing their specific covered products according to the approved producer responsibility plan, and malus fees or credits pursuant to paragraph (2).
(2) The distribution of the producer responsibility plans costs shall incorporate malus fees or credits for participant producers, with adjustments based on any of the following, as applicable:
(A) (i) Actions taken by the participant producer to invest in sustainable packaging or product reuse and refill systems that ensure the covered product does not become waste, either through the waste stream or illegal dumping.
(ii) Clause (i) does not apply to a packaging product subject to another statewide stewardship or advanced disposal fee-based program for collection or management pursuant to state law.
(B) Actions taken by the participant producer, including clear and accurate labeling and instructions, that improve consumer behavior related to sorting and proper disposal of the covered product.
(C) Actions taken by the participant producer to reduce the relative toxicity, ignitability, corrosiveness, or reactivity of the covered product.
(b) (1) Operate on a budget that establishes a funding level sufficient to operate the producer responsibility organization in a prudent and responsible manner. The budget shall demonstrate how the producer responsibility organizations estimated revenues will cover all of its budgeted costs for each cost category. Budgeted cost categories shall include, but are not limited to, administrative costs, capital costs, and a reserve.
(2) Administrative costs shall include the actual and reasonable regulatory costs incurred by the department, which includes full personnel costs, to implement and enforce this article, consistent with the regulations described in Section 25218.52. For purposes of this paragraph, producer responsibility organization implementation begins upon approval of the producer responsibility organizations producer responsibility plan, except that costs shall include actual regulatory development costs and other startup costs incurred before a producer responsibility plans submittal and approval.
(3) The reserve shall include funds to operate the producer responsibility organization if there are unexpected events, losses of income, or large unbudgeted expenses. The reserve shall also protect the infrastructure that the producer responsibility organization relies on in its producer responsibility plan during any lapse in producer participation during the life of the program. The reserve cost category shall include a reserve level amount description justifying the reserve level amount indicated. The producer responsibility organization shall maintain reserve funds sufficient to operate the producer responsibility plan for not less than six months. When a new producer responsibility organization is approved by the department, the producer responsibility organization shall establish its reserve and maintain the required reserve fund balance by the end of the second year of producer responsibility plan operation. If the producer responsibility organizations producer responsibility plan expires or is revoked, the reserve balance shall be transferred to a successor producer responsibility organization or a trustee pursuant to the portion of the producer responsibility plan described in subdivision (f) of Section 25218.56.
(c) On a schedule determined by the department, pay the department fees to cover the departments regulatory costs, as described in Section 25218.60.
(d) Establish a process by which the financial activities of the producer responsibility organization that are related to implementation of the producer responsibility plan will be subject to an independent audit consistent with generally accepted accounting principles and pursuant to Section 25218.63.
(e) Provide written certification by an authorized representative of the producer responsibility organization that, at the time of submission to the department, all aspects of the producer responsibility plan are in compliance with all applicable state and federal laws and regulations.
(f) Have adequate financial responsibility and financial controls in place, including fraud prevention measures, to ensure proper management of funds.
25218.59. Each participant producer shall, through the producer responsibility organization, pay all administrative and operational costs associated with establishing and implementing the producer responsibility organizations approved plan, including the cost of the collection, transportation, and safe and proper management of covered products, including covered products that have been illegally dumped.
25218.59. Each participant producer shall, through the producer responsibility organization, pay all administrative and operational costs associated with establishing and implementing the producer responsibility organizations approved plan, including the cost of the collection, transportation, and safe and proper management of covered products, including covered products that have been illegally dumped.
25218.60. (a) Within four months of the effective date of the regulations described in Section 25218.52, the department shall notify the producer responsibility organization of the estimated regulatory costs for the department and the criteria for the costs specified in the regulations. Those costs shall include the costs associated with developing the regulations and other department activities that occur before a producer responsibility plans submittal and approval, including, but not limited to, full personnel costs related to implementing and enforcing this article. The costs shall not exceed the departments reasonable regulatory costs to implement and enforce this article.(b) The department shall deposit all moneys received from the producer responsibility organization pursuant to this section into the Household Hazardous Waste Producer Responsibility Fund, which is hereby established in the State Treasury.(c) Upon appropriation by the Legislature, moneys in the Household Hazardous Waste Producer Responsibility Fund shall be expended by the department to implement and enforce this article and to reimburse any outstanding loans made from other funds used to finance the development of the regulations and the startup costs of the departments activities pursuant to this article.(d) The moneys in the Household Hazardous Waste Producer Responsibility Fund shall only be expended for those purposes described in subdivision (c).
25218.60. (a) Within four months of the effective date of the regulations described in Section 25218.52, the department shall notify the producer responsibility organization of the estimated regulatory costs for the department and the criteria for the costs specified in the regulations. Those costs shall include the costs associated with developing the regulations and other department activities that occur before a producer responsibility plans submittal and approval, including, but not limited to, full personnel costs related to implementing and enforcing this article. The costs shall not exceed the departments reasonable regulatory costs to implement and enforce this article.
(b) The department shall deposit all moneys received from the producer responsibility organization pursuant to this section into the Household Hazardous Waste Producer Responsibility Fund, which is hereby established in the State Treasury.
(c) Upon appropriation by the Legislature, moneys in the Household Hazardous Waste Producer Responsibility Fund shall be expended by the department to implement and enforce this article and to reimburse any outstanding loans made from other funds used to finance the development of the regulations and the startup costs of the departments activities pursuant to this article.
(d) The moneys in the Household Hazardous Waste Producer Responsibility Fund shall only be expended for those purposes described in subdivision (c).
25218.61. (a) If the producer responsibility plan relies on a local jurisdiction to collect or manage a covered product, or to otherwise comply with this article, then the producer responsibility organization shall reimburse the local jurisdiction for costs associated with the collection and management of the covered product, including, but not limited to, the cost of providing supplies for the collection of, transportation, and disposal of covered materials, including the jurisdictions labor and administrative costs based on the proportion of covered to noncovered products collected at the facility.(b) Reimbursement costs pursuant to subdivision (a) shall be limited to the actual costs of, supplies, transportation, and management of a covered product, including the costs to reimburse local jurisdictions to collect and manage covered products that have been illegally dumped.
25218.61. (a) If the producer responsibility plan relies on a local jurisdiction to collect or manage a covered product, or to otherwise comply with this article, then the producer responsibility organization shall reimburse the local jurisdiction for costs associated with the collection and management of the covered product, including, but not limited to, the cost of providing supplies for the collection of, transportation, and disposal of covered materials, including the jurisdictions labor and administrative costs based on the proportion of covered to noncovered products collected at the facility.
(b) Reimbursement costs pursuant to subdivision (a) shall be limited to the actual costs of, supplies, transportation, and management of a covered product, including the costs to reimburse local jurisdictions to collect and manage covered products that have been illegally dumped.
25218.62. (a) The producer responsibility organization shall keep board minutes, books, and records that clearly reflect the activities and transactions of the producer responsibility organization for a period of not less than five years.(b) A producer and the producer responsibility organization shall do both of the following:(1) Upon request, provide the department with reasonable and timely access, as determined by the department, to its facilities and operations, as necessary to determine compliance with this article.(2) Within 14 days of a request from the department, provide the department with relevant records, as determined by the department, necessary to determine compliance with this article.(c) The department may audit the producer responsibility organization annually.(d) All reports and records provided to the department pursuant to this article shall be provided under penalty of perjury.(e) The failure of the producer responsibility organization, a participant producer, or their respective agent who holds records to produce documents or data that is requested by the department, required to be collected or generated to carry out operation of the producer responsibility plan in the form and manner determined by the department as part of a department audit, or review of a third-party audit, shall constitute a violation of this article.(f) The department may impose administrative civil penalties pursuant to Section 25218.68 on a producer or producer responsibility organization that fails to provide the department with the access required pursuant to this section.
25218.62. (a) The producer responsibility organization shall keep board minutes, books, and records that clearly reflect the activities and transactions of the producer responsibility organization for a period of not less than five years.
(b) A producer and the producer responsibility organization shall do both of the following:
(1) Upon request, provide the department with reasonable and timely access, as determined by the department, to its facilities and operations, as necessary to determine compliance with this article.
(2) Within 14 days of a request from the department, provide the department with relevant records, as determined by the department, necessary to determine compliance with this article.
(c) The department may audit the producer responsibility organization annually.
(d) All reports and records provided to the department pursuant to this article shall be provided under penalty of perjury.
(e) The failure of the producer responsibility organization, a participant producer, or their respective agent who holds records to produce documents or data that is requested by the department, required to be collected or generated to carry out operation of the producer responsibility plan in the form and manner determined by the department as part of a department audit, or review of a third-party audit, shall constitute a violation of this article.
(f) The department may impose administrative civil penalties pursuant to Section 25218.68 on a producer or producer responsibility organization that fails to provide the department with the access required pursuant to this section.
25218.63. (a) The producer responsibility organization shall retain an independent certified public accountant, certified in the United States, to annually audit the accounting books of the producer responsibility organization. The department shall review the independent certified public accountants audit for compliance with this article and consistency with the producer responsibility organizations approved producer responsibility plan and the annual report required by Section 25218.64. After the department conducts its own review, the department shall notify the producer responsibility organization of any conduct or practice that does not comply with this article or of any inconsistencies identified in the review. The producer responsibility organization may obtain copies of the departments review, including proprietary information contained in the departments review, upon request. The producer or producer responsibility organization may request the department withhold from disclosure confidential proprietary information to the extent allowed under Section 1040 of the Evidence Code and the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).(b) The items submitted to the department for its review of the independent audit shall include all of the following:(1) Financial statements audited in accordance with generally accepted accounting principles.(2) An audit of the producer responsibility organizations compliance with this article.(3) An audit of the producer responsibility organizationss adherence to, execution of, and consistency with its approved plan.(c) The producer responsibility organization shall include the independent audit in its annual report submitted to the department pursuant to Section 25218.64 commencing within 18 months of the producer responsibility plans approval by the department
25218.63. (a) The producer responsibility organization shall retain an independent certified public accountant, certified in the United States, to annually audit the accounting books of the producer responsibility organization. The department shall review the independent certified public accountants audit for compliance with this article and consistency with the producer responsibility organizations approved producer responsibility plan and the annual report required by Section 25218.64. After the department conducts its own review, the department shall notify the producer responsibility organization of any conduct or practice that does not comply with this article or of any inconsistencies identified in the review. The producer responsibility organization may obtain copies of the departments review, including proprietary information contained in the departments review, upon request. The producer or producer responsibility organization may request the department withhold from disclosure confidential proprietary information to the extent allowed under Section 1040 of the Evidence Code and the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).
(b) The items submitted to the department for its review of the independent audit shall include all of the following:
(1) Financial statements audited in accordance with generally accepted accounting principles.
(2) An audit of the producer responsibility organizations compliance with this article.
(3) An audit of the producer responsibility organizationss adherence to, execution of, and consistency with its approved plan.
(c) The producer responsibility organization shall include the independent audit in its annual report submitted to the department pursuant to Section 25218.64 commencing within 18 months of the producer responsibility plans approval by the department
25218.64. On or before January 1 of each year, the producer responsibility organization shall submit to the department, and make publicly available, an annual report, in a format prescribed by the department, that includes, at minimum, all of the following information for the preceding calendar year, unless otherwise specified:(a) The producer responsibility organizations costs, according to the cost categories established in the producer responsibility plan, and revenues.(b) A summary of any anticipated changes to allocations in cost categories for the next calendar year.(c) Any changes to the distribution of costs to the participant producers.(d) Updated contact information for participant producers.(e) An estimate of the quantity of covered products sold in or into the state by participant producers, as determined by the best available commercial data.(f) A summary of efforts made as part of the comprehensive statewide education and outreach program, as required by subdivision (f) of Section 25218.56, including the producer responsibility organizations evaluation of the effectiveness of the program.(g) Recommendations for any future proposed substantial changes to the producer responsibility plan.(h) Any other information required by the regulations described in Section 25218.52.
25218.64. On or before January 1 of each year, the producer responsibility organization shall submit to the department, and make publicly available, an annual report, in a format prescribed by the department, that includes, at minimum, all of the following information for the preceding calendar year, unless otherwise specified:
(a) The producer responsibility organizations costs, according to the cost categories established in the producer responsibility plan, and revenues.
(b) A summary of any anticipated changes to allocations in cost categories for the next calendar year.
(c) Any changes to the distribution of costs to the participant producers.
(d) Updated contact information for participant producers.
(e) An estimate of the quantity of covered products sold in or into the state by participant producers, as determined by the best available commercial data.
(f) A summary of efforts made as part of the comprehensive statewide education and outreach program, as required by subdivision (f) of Section 25218.56, including the producer responsibility organizations evaluation of the effectiveness of the program.
(g) Recommendations for any future proposed substantial changes to the producer responsibility plan.
(h) Any other information required by the regulations described in Section 25218.52.
25218.65. (a) No later than 120 days after the date the department receives an annual report pursuant to Section 25218.64, the department shall notify the producer responsibility organization if the annual report is compliant or noncompliant.(b) If the department determines that the annual report is noncompliant due to failure to meet the requirements of this article, the department may require the resubmittal of the annual report and take enforcement action.(c) The department may consult with or submit the annual report to a state agency or department if it determines it is necessary to determine the annual reports compliance or noncompliance.
25218.65. (a) No later than 120 days after the date the department receives an annual report pursuant to Section 25218.64, the department shall notify the producer responsibility organization if the annual report is compliant or noncompliant.
(b) If the department determines that the annual report is noncompliant due to failure to meet the requirements of this article, the department may require the resubmittal of the annual report and take enforcement action.
(c) The department may consult with or submit the annual report to a state agency or department if it determines it is necessary to determine the annual reports compliance or noncompliance.
25218.66. A retailer, dealer, importer, or distributor shall not sell, distribute, offer for sale, or import a covered product in or into the state unless the producer of the covered product is listed as a compliant producer pursuant to Section 25218.67 or has received a certification letter described in subdivision (e) of Section 25218.67.
25218.66. A retailer, dealer, importer, or distributor shall not sell, distribute, offer for sale, or import a covered product in or into the state unless the producer of the covered product is listed as a compliant producer pursuant to Section 25218.67 or has received a certification letter described in subdivision (e) of Section 25218.67.
25218.67. (a) Within 12 months of the effective date of the regulations described in Section 25218.52, and on or before July 1 of each year thereafter, the department shall publish on the departments internet website a list of the names of producers that are compliant with this article. The department shall list, as appropriate, the reported brands of covered products for each producer.(b) A retailer, importer, or distributor shall monitor the departments internet website to determine if a producer, brand, or covered product is in compliance with this article.(c) Notwithstanding any other provision of this article, upon identification of a producer that is not registered with the producer responsibility organization with an approved producer responsibility plan, the department shall issue a notice of noncompliance to the producer.(d) If the department determines a producer is not in compliance with this article, the department shall remove the producer and its brands of covered products from the compliance list on its internet website.(e) The department shall provide a certification letter to a producer that is not listed on the departments internet website as a compliant producer, but that has demonstrated compliance with this article to the department. The certification letter shall state that the producer is in compliance with this article. The department may update the compliance list on its website.
25218.67. (a) Within 12 months of the effective date of the regulations described in Section 25218.52, and on or before July 1 of each year thereafter, the department shall publish on the departments internet website a list of the names of producers that are compliant with this article. The department shall list, as appropriate, the reported brands of covered products for each producer.
(b) A retailer, importer, or distributor shall monitor the departments internet website to determine if a producer, brand, or covered product is in compliance with this article.
(c) Notwithstanding any other provision of this article, upon identification of a producer that is not registered with the producer responsibility organization with an approved producer responsibility plan, the department shall issue a notice of noncompliance to the producer.
(d) If the department determines a producer is not in compliance with this article, the department shall remove the producer and its brands of covered products from the compliance list on its internet website.
(e) The department shall provide a certification letter to a producer that is not listed on the departments internet website as a compliant producer, but that has demonstrated compliance with this article to the department. The certification letter shall state that the producer is in compliance with this article. The department may update the compliance list on its website.
25218.68. (a) The department may impose a civil penalty on any producer or stewardship organization that is in violation of this article of up to the following amounts:(1) Ten thousand dollars ($10,000) per day.(2) Fifty thousand dollars ($50,000) per day if the violation is intentional or knowing.(b) In assessing or reviewing the amount of a civil penalty imposed pursuant to subdivision (a) for a violation of this article, the department or the court shall consider all of the following:(1) The nature and extent of the violation.(2) The number and severity of the violation or violations.(3) The economic effect of the penalty on the violator.(4) Whether the violator took good faith measures to comply with this article and the period of time over which these noncompliant actions were taken.(5) The willfulness of the violators misconduct.(6) The deterrent effect that the imposition of the penalty would have on both the violator and the regulated community.(7) Any other factor that justice may require.(c) Upon a written finding that a producer responsibility organization, producer, importer, or any other party regulated pursuant to this article has not met a material requirement of this article, in addition to any other penalties authorized pursuant to this article, the department may take one or all of the following actions to ensure compliance with the requirements of this article, after affording the producer responsibility organization, producer, importer, or any other party regulated pursuant to this article, an opportunity to respond to or rebut the finding:(1) Revoke the producer responsibility organizations approved producer responsibility plan or require the producer responsibility organization to resubmit the producer responsibility plan, in whole or in part.(2) Require additional reporting relating to compliance with the material requirements of this article that were not met.(3) Approve a producer responsibility plan submitted by another producer responsibility organization.(d) The department shall deposit all penalties collected pursuant to this section into the Household Hazardous Waste Products Penalty Account, which is hereby created in the Household Hazardous Waste Producer Responsibility Fund. Upon appropriation by the Legislature, moneys in the Household Hazardous Waste Products Penalty Account shall be available for expenditure by the department for activities related to the collection, reuse, and recycling of covered products, grants for related purposes, and the administration and enforcement of this article.(e) The Administrative Adjudication Bill of Rights (Article 6 (commencing with Section 11425.10) of Chapter 4.5 of Part 1 of Division 3 of Title 2 of the Government Code) applies to hearings conducted pursuant to this article and mandates minimum due process requirements.
25218.68. (a) The department may impose a civil penalty on any producer or stewardship organization that is in violation of this article of up to the following amounts:
(1) Ten thousand dollars ($10,000) per day.
(2) Fifty thousand dollars ($50,000) per day if the violation is intentional or knowing.
(b) In assessing or reviewing the amount of a civil penalty imposed pursuant to subdivision (a) for a violation of this article, the department or the court shall consider all of the following:
(1) The nature and extent of the violation.
(2) The number and severity of the violation or violations.
(3) The economic effect of the penalty on the violator.
(4) Whether the violator took good faith measures to comply with this article and the period of time over which these noncompliant actions were taken.
(5) The willfulness of the violators misconduct.
(6) The deterrent effect that the imposition of the penalty would have on both the violator and the regulated community.
(7) Any other factor that justice may require.
(c) Upon a written finding that a producer responsibility organization, producer, importer, or any other party regulated pursuant to this article has not met a material requirement of this article, in addition to any other penalties authorized pursuant to this article, the department may take one or all of the following actions to ensure compliance with the requirements of this article, after affording the producer responsibility organization, producer, importer, or any other party regulated pursuant to this article, an opportunity to respond to or rebut the finding:
(1) Revoke the producer responsibility organizations approved producer responsibility plan or require the producer responsibility organization to resubmit the producer responsibility plan, in whole or in part.
(2) Require additional reporting relating to compliance with the material requirements of this article that were not met.
(3) Approve a producer responsibility plan submitted by another producer responsibility organization.
(d) The department shall deposit all penalties collected pursuant to this section into the Household Hazardous Waste Products Penalty Account, which is hereby created in the Household Hazardous Waste Producer Responsibility Fund. Upon appropriation by the Legislature, moneys in the Household Hazardous Waste Products Penalty Account shall be available for expenditure by the department for activities related to the collection, reuse, and recycling of covered products, grants for related purposes, and the administration and enforcement of this article.
(e) The Administrative Adjudication Bill of Rights (Article 6 (commencing with Section 11425.10) of Chapter 4.5 of Part 1 of Division 3 of Title 2 of the Government Code) applies to hearings conducted pursuant to this article and mandates minimum due process requirements.
25218.69. (a) After the time for judicial review under Section 11523 of the Government Code has expired, the department may apply to the small claims court or superior court, depending on the jurisdictional amount and any other remedy sought, in the county where the penalties, restitution, or other remedy was imposed by the department, for a judgment to collect any unpaid civil penalties or restitution or to enforce any other remedy provided by this article. The application, which shall include a certified copy of the final agency order or decision, shall constitute a sufficient showing to warrant the issuance of the judgment. The court clerk shall enter the judgment immediately in conformity with the application. The judgment so entered shall have the same force and effect as, and shall be subject to all laws relating to, a judgment in a civil action and may be enforced in the same manner as any other judgment of the court. The court shall make enforcement of the judgment a priority.(b) If a person has engaged in or is about to engage in an act, practice, or omission that constitutes, or will constitute, a violation of this article, the Attorney General may, at the request of the director of the department or upon the Attorney Generals own determination, bring an action in superior court for an order enjoining the act, practice, or omission. The order may require remedial measures and direct compliance with this article. Upon a showing that the person has engaged in or is about to engage in that act, practice, or omission, the superior court may issue a permanent or temporary injunction, restraining order, or other order, as appropriate.
25218.69. (a) After the time for judicial review under Section 11523 of the Government Code has expired, the department may apply to the small claims court or superior court, depending on the jurisdictional amount and any other remedy sought, in the county where the penalties, restitution, or other remedy was imposed by the department, for a judgment to collect any unpaid civil penalties or restitution or to enforce any other remedy provided by this article. The application, which shall include a certified copy of the final agency order or decision, shall constitute a sufficient showing to warrant the issuance of the judgment. The court clerk shall enter the judgment immediately in conformity with the application. The judgment so entered shall have the same force and effect as, and shall be subject to all laws relating to, a judgment in a civil action and may be enforced in the same manner as any other judgment of the court. The court shall make enforcement of the judgment a priority.
(b) If a person has engaged in or is about to engage in an act, practice, or omission that constitutes, or will constitute, a violation of this article, the Attorney General may, at the request of the director of the department or upon the Attorney Generals own determination, bring an action in superior court for an order enjoining the act, practice, or omission. The order may require remedial measures and direct compliance with this article. Upon a showing that the person has engaged in or is about to engage in that act, practice, or omission, the superior court may issue a permanent or temporary injunction, restraining order, or other order, as appropriate.
25218.70. In support of this article, the Department of Resources Recycling and Recovery shall include both of the following in updates to the applicable waste characterization study:(a) The amount of covered products, by covered product category, that was improperly disposed of and observed in the waste characterization study.(b) In an appendix, the amount of covered products, by covered product category, properly collected and managed by a household hazardous waste collection facility.
25218.70. In support of this article, the Department of Resources Recycling and Recovery shall include both of the following in updates to the applicable waste characterization study:
(a) The amount of covered products, by covered product category, that was improperly disposed of and observed in the waste characterization study.
(b) In an appendix, the amount of covered products, by covered product category, properly collected and managed by a household hazardous waste collection facility.
25218.71. (a) Except as provided in subdivision (b), an action that is taken by a producer or producer responsibility organization 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), the Unfair Practices Act (Chapter 4 (commencing with Section 17000) of Part 2 of Division 7 of the Business and Professions Code), or the Unfair Competition Law (Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code) to the extent the producer or producer responsibility organization is exercising authority pursuant to this article.(b) Subdivision (a) applies to all of the following actions taken by a producer responsibility organization:(1) The creation, implementation, or management of a producer responsibility plan approved or conditionally approved by the department pursuant to this article and the determination of the types or quantities of covered products recycled or otherwise managed pursuant to the producer responsibility plan.(2) The determination of the cost and structure of an approved producer responsibility plan.(3) The establishment, administration, collection, or disbursement of a charge associated with funding the implementation of this article.(c) Subdivision (a) does not apply to an agreement that does any of the following:(1) Fixes a price of or for covered products.(2) Fixes the output or production of covered products.(3) Restricts the geographic area in which, or customers to whom, covered products will be sold.
25218.71. (a) Except as provided in subdivision (b), an action that is taken by a producer or producer responsibility organization 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), the Unfair Practices Act (Chapter 4 (commencing with Section 17000) of Part 2 of Division 7 of the Business and Professions Code), or the Unfair Competition Law (Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code) to the extent the producer or producer responsibility organization is exercising authority pursuant to this article.
(b) Subdivision (a) applies to all of the following actions taken by a producer responsibility organization:
(1) The creation, implementation, or management of a producer responsibility plan approved or conditionally approved by the department pursuant to this article and the determination of the types or quantities of covered products recycled or otherwise managed pursuant to the producer responsibility plan.
(2) The determination of the cost and structure of an approved producer responsibility plan.
(3) The establishment, administration, collection, or disbursement of a charge associated with funding the implementation of this article.
(c) Subdivision (a) does not apply to an agreement that does any of the following:
(1) Fixes a price of or for covered products.
(2) Fixes the output or production of covered products.
(3) Restricts the geographic area in which, or customers to whom, covered products will be sold.
SEC. 3. The Legislature finds and declares that Section 2 of this act, which adds Sections 25218.55 and 25218.63 to the Health and Safety Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:In order to ensure the effective solid waste management of, and viable markets for, products that contain household hazardous waste, it is necessary to protect the proprietary information of producers, retailers, wholesalers, and solid waste enterprises by keeping confidential the financial, production, and sales data reported by those entities under Section 2 of this act.
SEC. 3. The Legislature finds and declares that Section 2 of this act, which adds Sections 25218.55 and 25218.63 to the Health and Safety Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:In order to ensure the effective solid waste management of, and viable markets for, products that contain household hazardous waste, it is necessary to protect the proprietary information of producers, retailers, wholesalers, and solid waste enterprises by keeping confidential the financial, production, and sales data reported by those entities under Section 2 of this act.
SEC. 3. The Legislature finds and declares that Section 2 of this act, which adds Sections 25218.55 and 25218.63 to the Health and Safety Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
### SEC. 3.
In order to ensure the effective solid waste management of, and viable markets for, products that contain household hazardous waste, it is necessary to protect the proprietary information of producers, retailers, wholesalers, and solid waste enterprises by keeping confidential the financial, production, and sales data reported by those entities under Section 2 of this act.
SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.
### SEC. 4.