Bill Text: CA SB1143 | 2023-2024 | Regular Session | Amended


Bill Title: Household hazardous waste: producer responsibility.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed) 2024-06-26 - From committee: Do pass and re-refer to Com. on NAT. RES. (Ayes 5. Noes 2.) (June 25). Re-referred to Com. on NAT. RES. [SB1143 Detail]

Download: California-2023-SB1143-Amended.html

Amended  IN  Assembly  June 10, 2024
Amended  IN  Senate  May 16, 2024
Amended  IN  Senate  April 18, 2024
Amended  IN  Senate  March 18, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill
No. 1143


Introduced by Senator Allen

February 14, 2024


An act to amend Section 17580 of the Business and Professions Code, to amend Sections 25217.2.1, 25404, 25507, and 25513 of the Health and Safety Code, and to amend Sections 42041, 48700, 48701, 48702, 48703, 48704, 48704.1, 48705, and 48706 of, to amend the heading of Chapter 5 (commencing with Section 48700) of Part 7 of Division 30 of, to add Section 48701.5 to, and to add Chapter 1.5 (commencing with Section 47725) to Part 7 of Division 30 of of, the Public Resources Code, relating to hazardous materials.


LEGISLATIVE COUNSEL'S DIGEST


SB 1143, as amended, Allen. Household hazardous waste: producer responsibility.
(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.
The California Integrated Waste Management Act of 1989, which is administered by the Department of Resources Recycling and Recovery, Recovery (CalRecycle), requires a city and a county to prepare and submit to the department CalRecycle a countywide integrated waste management plan. The act requires the plan to include a household hazardous waste element that identifies a program in each city and county for the safe collection, recycling, treatment, and disposal of hazardous wastes that are generated by households.
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 require a producer responsibility organization (PRO) to provide a free and convenient collection and management system for covered products. products at no cost to residents or local governments. The bill would define “covered product” to mean a product that is flammable, toxic, ignitable, corrosive, reactive, or pressurized, and that meets other specified criteria. 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 CalRecycle, in coordination with DTSC, to adopt regulations to implement the program with an effective date no earlier than July 1, 2027.
The bill would require the PRO, within 12 months of the effective date of the regulations, to submit a product responsibility plan to DTSC. CalRecycle. The bill would require the plan to include specified elements, including a funding mechanism that provides sufficient funding to carry out the plan. The bill would require, within 6 months of receipt of the plan, DTSC CalRecycle, in collaboration with DTSC, to approve, approve in part, or disapprove the plan. plan, as specified. The bill would require DTSC CalRecycle to notify the PRO of its decision. If DTSC CalRecycle does not approve the plan in full, then the bill would require DTSC CalRecycle 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 require DTSC to conditionally approve a plan if DTSC CalRecycle does not approve, approve in part, or disapprove a plan within one year of receipt of the plan.
The 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 plan’s costs among participant producers that reflects sales volumes and the cost to manage the covered products that a producer produces. 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 PRO’s plan relies on local jurisdictions to collect or manage covered products.
The bill would require the PRO to prepare and submit to CalRecycle and 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 CalRecycle for review, as specified. The bill would require all reports and records provided to DTSC CalRecycle pursuant to the program to be provided under the penalty of perjury. By expanding the scope of a crime, the bill would impose a state-mandated local program.
The bill would require a participant producer, through the PRO, to pay DTSC, CalRecycle, on an unspecified schedule, an annual administrative charge, as determined by CalRecycle and DTSC. The bill would require the charge be set at an amount that is adequate to cover CalRecycle’s and DTSC’s 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 CalRecycle to be deposited into that fund for expenditure by DTSC, CalRecycle, upon appropriation by the Legislature, to cover DTSC’s CalRecycle’s cost to implement the program. The bill would also establish the Household Hazardous Products Penalty Account in the Household Hazardous Waste Producer Responsibility Fund and would require that the civil penalties collected by DTSC CalRecycle pursuant to the program be deposited into that account, for expenditure by DTSC, CalRecycle, 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.
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 establishes the architectural paint recovery program, which is administered by CalRecycle and requires a manufacturer or designated stewardship organization to develop and implement a stewardship plan. Existing law requires the plan to include a recovery program to reduce the generation of, promote the reuse of, and manage the end-of-life of postconsumer architectural paint, as provided. Existing law prohibits a manufacturer or retailer from selling or offering for sale architectural paint in the state unless the manufacturer is in compliance with the program. Existing law requires the stewardship organization to pay to CalRecycle quarterly administrative fees to cover CalRecycle’s full administrative and enforcement costs of the program, as provided. Existing law authorizes CalRecycle to impose a civil penalty on any person in violation of the program, as specified. Existing law requires CalRecycle to adopt regulations to implement the program.
This bill would revise and recast the architectural paint recovery program as the paint product recovery program. The bill would expand the scope of the stewardship program from architectural paint to covered paint products, and thereby subject covered paint products to the requirements of the program. The bill would define “covered paint product” to mean architectural paint and other specified paints and paint-related products, as provided. The bill would prohibit the paints and paint-related products added to the stewardship program by the bill from being regulated under the program until January 1, 2027, or the approved stewardship plan’s implementation date for those products, whichever occurs sooner, as specified. The bill would make conforming changes.

(2)

(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.

(3)

(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.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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) California’s 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 $5,000,000 per year 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. These programs cover almost half the total costs of household hazardous waste. At the recommendation of the Statewide Commission on Recycling Markets and Curbside Recycling, the Legislature added a program for aerosol paint cans in 2023.
(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 Control’s 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 improve diversion of household hazardous waste from landfills, reduce the financial burden on local jurisdictions and taxpayers, reduce the cost of the overall system of managing household hazardous waste, improve the convenience 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 implement a producer responsibility organization to improve collection and diversion and to cover the costs of managing household products containing a hazardous substance.

SEC. 2.

 Section 17580 of the Business and Professions Code is amended to read:

17580.
 (a) A person who represents in advertising or on the label or container of a consumer good that the consumer good that it manufactures or distributes is not harmful to, or is beneficial to, the natural environment, through the use of such terms as “environmental choice,” “ecologically friendly,” “earth friendly,” “environmentally friendly,” “ecologically sound,” “environmentally sound,” “environmentally safe,” “ecologically safe,” “environmentally lite,” “green product,” or any other like term, or through the use of a chasing arrows symbol or by otherwise directing a consumer to recycle the consumer good, shall maintain in written form in its records all of the following information and documentation supporting the validity of the representation:
(1) The reasons the person believes the representation to be true.
(2) Any significant adverse environmental impacts directly associated with the production, distribution, use, and disposal of the consumer good.
(3) Any measures that are taken by the person to reduce the environmental impacts directly associated with the production, distribution, and disposal of the consumer good.
(4) Violations of any federal, state, or local permits directly associated with the production or distribution of the consumer good.
(5) Whether, if applicable, the consumer good conforms with the uniform standards contained in the Federal Trade Commission Guidelines for Environmental Marketing Claims for the use of the terms “recycled,” “recyclable,” “biodegradable,” “photodegradable,” or “ozone friendly.”
(6) If the person uses the term “recyclable,” uses a chasing arrows symbol, or otherwise directs a consumer to recycle the consumer good, whether the consumer good meets all of the criteria for statewide recyclability pursuant to subdivision (d) of Section 42355.51 of the Public Resources Code.
(b) Information and documentation maintained pursuant to this section shall be furnished to any member of the public upon request.
(c) For purposes of this section, a wholesaler or retailer who does not initiate a representation by advertising or by placing the representation on a package shall not be deemed to have made the representation.
(d) It is the intent of the Legislature that the information and documentation supporting the validity of the representation maintained under this section shall be fully disclosed to the public, within the limits of all applicable laws.
(e) For purposes of this section, displaying a chasing arrows symbol or otherwise directing a consumer to recycle a consumer good shall not be considered misleading pursuant to Section 17580.5 or Section 42355.51 of the Public Resources Code if either of the following apply:
(1) The consumer good is required by any federal or California law or regulation to display a chasing arrows symbol, including, but not limited to, Section 103(b)(1) of the federal Mercury-Containing and Rechargeable Battery Management Act (42 U.S.C. Sec. 14322(b)(1)) and Section 25215.65 of the Health and Safety Code.
(2) The consumer good is a beverage container subject to the California Beverage Container Recycling and Litter Reduction Act (Division 12.1 (commencing with Section 14500) of the Public Resources Code).
(f) For purposes of this section, “chasing arrows symbol” means an equilateral triangle, formed by three arrows curved at their midpoints, depicting a clockwise path, with a short gap separating the apex of each arrow from the base of the adjacent arrow. “Chasing arrows symbol” also includes variants of that symbol that are likely to be interpreted by a consumer as an implication of recyclability, including, but not limited to, one or more arrows arranged in a circular pattern or around a globe.
(g) For purposes of this section, a direction to a consumer to properly dispose of or otherwise properly handle a consumer good at the end of its useful life shall not be considered “otherwise directing a consumer to recycle a consumer good” pursuant to subdivision (a) if both of the following requirements are met:
(1) The consumer good is subject to any of the following programs:
(A) Chapter 20 (commencing with Section 42970) of Part 3 of Division 30 of the Public Resources Code relating to product stewardship for carpets.
(B) The Used Mattress Recovery and Recycling Act (Chapter 21 (commencing with Section 42985) of Part 3 of Division 30 of the Public Resources Code).
(C) The California Tire Recycling Act (Chapter 17 (commencing with Section 42860) of Part 3 of Division 30 of the Public Resources Code).
(D) The Electronic Waste Recycling Act of 2003 (Chapter 8.5 (commencing with Section 42460) of Part 3 of Division 30 of the Public Resources Code).
(E) Article 10.3 (commencing with Section 25214.9) of Chapter 6.5 of Division 20 of the Health and Safety Code relating to electronic waste.
(F) The Rechargeable Battery Recycling Act of 2006 (Chapter 8.4 (commencing with Section 42451) of Part 3 of Division 30 of the Public Resources Code).
(G) The Cell Phone Recycling Act of 2004 (Chapter 8.6 (commencing with Section 42490) of Part 3 of Division 30 of the Public Resources Code).
(H) The architectural paint product recovery program established pursuant to Chapter 5 (commencing with Section 48700) of Part 7 of Division 30 of the Public Resources Code.
(I) The Mercury Thermostat Collection Act of 2008 (Article 10.2.2 (commencing with Section 25214.8.10) of Chapter 6.5 of Division 20 of the Health and Safety Code).
(J) The Lead-Acid Battery Recycling Act of 2016 (Article 10.5 (commencing with Section 25215) of Chapter 6.5 of Division 20 of the Health and Safety Code).
(2) The direction to the consumer accurately instructs the consumer to dispose of the consumer good through participation in, and consistent with, one of the programs identified in paragraph (1) as that program applies to the consumer good.
(h) For purposes of this section, directing a consumer to compost or properly dispose of a consumer good through an organics recycling program shall not be considered “otherwise directing a consumer to recycle a consumer good” pursuant to subdivision (a).

SEC. 3.

 Section 25217.2.1 of the Health and Safety Code is amended to read:

25217.2.1.
 (a) A location that accepts recyclable latex paint pursuant to Section 25217.2 may also accept oil-based paint if all of the additional following conditions are met:
(1) The collection location is established under an architectural paint a covered paint product stewardship plan approved by the Department of Resources Recycling and Recovery pursuant to the architectural paint product recovery program established pursuant to Chapter 5 (commencing with Section 48700) of Part 7 of Division 30 of the Public Resources Code.
(2) The collection location receives oil-based paint only from either of the following:
(A) A person who generates oil-based paint incidental to owning or maintaining a place of residence.
(B) A very small quantity generator.
(3) The oil-based paint is still in liquid form and is in its original packaging or is in a closed container that is clearly labeled.
(4) The location manages the oil-based paint in accordance with the requirements in Section 25217.2.
(5) The collection location operates pursuant to a contract with a manufacturer or covered paint product stewardship organization that has submitted an architectural paint a covered paint product stewardship plan that has been approved by the Department of Resources Recycling and Recovery and the collected paint is managed in accordance with that approved architectural paint covered paint product stewardship plan.
(6) The oil-based paint is stored for no longer than 180 days.
(b) Oil-based paint initially collected at a collection location shall be deemed to be generated at the consolidation location for purposes of this chapter, if all of the following apply:
(1) The collection location is established under an architectural paint a covered paint product stewardship plan in accordance with the requirements of paragraph (1) of subdivision (a).
(2) The oil-based paint is subsequently transported to a consolidation location that is operating pursuant to a contract with a manufacturer or covered paint product stewardship organization under an architectural paint a covered paint product stewardship plan that has been approved by the Department of Resources Recycling and Recovery pursuant to the architectural paint paint product recovery program established pursuant to Chapter 5 (commencing with Section 48700) of Part 7 of Division 30 of the Public Resources Code.
(3) The oil-based paint is non-RCRA hazardous waste, or is otherwise exempt from, or is not otherwise regulated pursuant to, the federal act.
(c) A permanent household hazardous waste collection facility that accepts recyclable latex paint pursuant to and in compliance with Section 25217.2 and that accepts oil-based paint is not subject to the weight and volume limits on the amount of oil-based paint that may be accepted, pursuant to subdivision (b) of Section 25218.3.

SEC. 4.

 Section 25404 of the Health and Safety Code is amended to read:

25404.
 (a) For purposes of this chapter, the following terms shall have the following meanings:
(1) (A) “Certified Unified Program Agency” or “CUPA” means the agency certified by the secretary to implement the unified program specified in this chapter within a jurisdiction.
(B) “Participating Agency” or “PA” means a state or local agency that has a written agreement with the CUPA pursuant to subdivision (d) of Section 25404.3, and is approved by the secretary, to implement or enforce one or more of the unified program elements specified in subdivision (c), in accordance with Sections 25404.1 and 25404.2.
(C) “Unified Program Agency” or “UPA” means the CUPA, or its participating agencies to the extent each PA has been designated by the CUPA, pursuant to a written agreement, to implement or enforce a particular unified program element specified in subdivision (c). The UPAs have the responsibility and authority to implement and enforce the requirements listed in subdivision (c), and the regulations adopted to implement the requirements listed in subdivision (c), to the extent provided by Chapter 6.5 (commencing with Section 25100), Chapter 6.67 (commencing with Section 25270), Chapter 6.7 (commencing with Section 25280), Chapter 6.95 (commencing with Section 25500), and Sections 25404.1 to 25404.2, inclusive. After a CUPA has been certified by the secretary, the unified program agencies and the state agencies carrying out responsibilities under this chapter shall be the only agencies authorized to enforce the requirements listed in subdivision (c) within the jurisdiction of the CUPA.
(2) “Department” means the Department of Toxic Substances Control.
(3) “Minor violation” means the failure of a person to comply with a requirement or condition of an applicable law, regulation, permit, information request, order, variance, or other requirement, whether procedural or substantive, of the unified program that the UPA is authorized to implement or enforce pursuant to this chapter, and that does not otherwise include any of the following:
(A) A violation that results in injury to persons or property, or that presents a significant threat to human health or the environment.
(B) A knowing, willful, or intentional violation.
(C) A violation that is a chronic violation, or that is committed by a recalcitrant violator. In determining whether a violation is chronic or a violator is recalcitrant, the UPA shall consider whether there is evidence indicating that the violator has engaged in a pattern of neglect or disregard with respect to applicable regulatory requirements.
(D) A violation that results in an emergency response from a public safety agency.
(E) A violation that enables the violator to benefit economically from the noncompliance, either by reduced costs or competitive advantage.
(F) A class I violation, as provided in Section 25110.8.5.
(G) A violation that hinders the ability of the UPA to determine compliance with any other applicable local, state, or federal rule, regulation, information request, order, variance, permit, or other requirement.
(4) “Secretary” means the Secretary for Environmental Protection.
(5) “Unified program facility” means all contiguous land and structures, other appurtenances, and improvements on the land that are subject to the requirements listed in subdivision (c).
(6) “Unified program facility permit” means a permit issued pursuant to this chapter. For purposes of this chapter, a unified program facility permit encompasses the permitting requirements of Section 25284, and permit or authorization requirements under a local ordinance or regulation relating to the generation or handling of hazardous waste or hazardous materials, but does not encompass the permitting requirements of a local ordinance that incorporates provisions of the California Fire Code or the California Building Code.
(b) The secretary shall adopt implementing regulations and implement a unified hazardous waste and hazardous materials management regulatory program, which shall be known as the unified program, after holding an appropriate number of public hearings throughout the state. The unified program shall be developed in close consultation with the director, the Director of Emergency Services, the State Fire Marshal, the executive officers and chairpersons of the State Water Resources Control Board and the California regional water quality control boards, the local health officers, local fire services, and other appropriate officers of interested local agencies, and affected businesses and interested members of the public, including environmental organizations.
(c) The unified program shall consolidate the administration of the following requirements and, to the maximum extent feasible within statutory constraints, shall ensure the coordination and consistency of any regulations adopted pursuant to those requirements:
(1) (A) Except as provided in subparagraphs (B) and (C), the requirements of Chapter 6.5 (commencing with Section 25100), and the regulations adopted by the department pursuant to that chapter, that are applicable to all of the following:
(i) Hazardous waste generators, persons operating pursuant to a permit-by-rule, conditional authorization, or conditional exemption, pursuant to Chapter 6.5 (commencing with Section 25100) or the regulations adopted by the department.
(ii) Persons managing perchlorate materials.
(iii) Persons subject to Article 10.1 (commencing with Section 25211) of Chapter 6.5.
(iv) Persons operating a collection location that has been established under an architectural paint a covered paint product stewardship plan approved by the Department of Resources Recycling and Recovery pursuant to the architectural paint product recovery program established pursuant to Chapter 5 (commencing with Section 48700) of Part 7 of Division 30 of the Public Resources Code.
(v) A transfer facility, as defined in paragraph (3) of subdivision (a) of Section 25123.3, that is operated by a door-to-door household hazardous waste collection program or household hazardous waste residential pickup service, as defined in subdivision (c) of Section 25218.1.
(vi) Persons who receive used oil from consumers pursuant to Section 25250.11.
(B) The unified program shall not include the requirements of paragraph (3) of subdivision (c) of Section 25200.3, the requirements of Sections 25200.10 and 25200.14, and the authority to issue an order under Sections 25187 and 25187.1, with regard to those portions of a unified program facility that are subject to one of the following:
(i) A corrective action order issued by the department pursuant to Section 25187.
(ii) An order issued by the department pursuant to Chapter 6.86 (commencing with Section 25396) of this division or Part 2 (commencing with Section 78000) of Division 45.
(iii) A remedial action plan approved pursuant to Chapter 6.86 (commencing with Section 25396) of this division or Part 2 (commencing with Section 78000) of Division 45.
(iv) A cleanup and abatement order issued by a California regional water quality control board pursuant to Section 13304 of the Water Code, to the extent that the cleanup and abatement order addresses the requirements of the applicable section or sections listed in this subparagraph.
(v) Corrective action required under subsection (u) of Section 6924 of Title 42 of the United States Code or subsection (h) of Section 6928 of Title 42 of the United States Code.
(vi) An environmental assessment pursuant to Section 25200.14 or a corrective action pursuant to Section 25200.10 or paragraph (3) of subdivision (c) of Section 25200.3, that is being overseen by the department.
(C) The unified program shall not include the requirements of Chapter 6.5 (commencing with Section 25100), and the regulations adopted by the department pursuant to that chapter, applicable to persons operating transportable treatment units, except that any required notice regarding transportable treatment units shall also be provided to the CUPAs.
(2) The requirements of Chapter 6.67 (commencing with Section 25270) concerning aboveground storage tanks.
(3) (A) Except as provided in subparagraphs (B) and (C), the requirements of Chapter 6.7 (commencing with Section 25280) concerning underground storage tanks and the requirements of any underground storage tank ordinance adopted by a city or county.
(B) The unified program shall not include the responsibilities assigned to the State Water Resources Control Board pursuant to Section 25297.1.
(C) The unified program shall not include the corrective action requirements of Sections 25296.10 to 25296.40, inclusive.
(4) The requirements of Article 1 (commencing with Section 25500) of Chapter 6.95 concerning hazardous material release response plans and inventories.
(5) The requirements of Article 2 (commencing with Section 25531) of Chapter 6.95, concerning the accidental release prevention program.
(6) The requirements for the hazardous materials plan and hazardous materials inventory statement of the California Fire Code, as adopted by the State Fire Marshal pursuant to Section 13143.9.
(d) To the maximum extent feasible within statutory constraints, the secretary shall consolidate, coordinate, and make consistent these requirements of the unified program with other requirements imposed by other federal, state, regional, or local agencies upon facilities regulated by the unified program.
(e) (1) The secretary shall establish standards applicable to CUPAs, participating agencies, state agencies, and businesses specifying the data to be collected and submitted by unified program agencies in administering the programs listed in subdivision (c).
(2) (A) The secretary shall establish a statewide information management system capable of receiving all data collected by the unified program agencies and reported by regulated businesses pursuant to this subdivision, in a manner that is most cost efficient and effective for both the regulated businesses and state and local agencies. The secretary shall prescribe an XML or other compatible web-based format for the transfer of data from CUPAs and regulated businesses and make all nonconfidential data available on the internet.
(B) The secretary shall establish milestones to measure the implementation of the statewide information management system and shall provide periodic status updates to interested parties.
(3) (A) (i) Except as provided in subparagraph (B), in addition to any other funding that becomes available, the secretary shall increase the oversight surcharge provided for in subdivision (b) of Section 25404.5 by an amount necessary to meet the requirements of this subdivision for a period of three years, to establish the statewide information management system, consistent with paragraph (2). The increase in the oversight surcharge shall not exceed twenty-five dollars ($25) in any one year of the three-year period. The secretary shall thereafter maintain the statewide information management system, funded by the assessment the secretary is authorized to impose pursuant to Section 25404.5.
(ii) No less than 75 percent of the additional funding raised pursuant to clause (i) shall be provided to CUPAs and PAs through grant funds or statewide contract services, in the amounts determined by the secretary to assist these local agencies in meeting these information management system requirements.
(B) A facility that is owned or operated by the federal government and that is subject to the unified program shall pay the surcharge required by this paragraph to the extent authorized by federal law.
(C) The secretary, or one or more of the boards, departments, or offices within the California Environmental Protection Agency, shall seek available federal funding for purposes of implementing this subdivision.
(4) No later than three years after the statewide information management system is established, each CUPA, PA, and regulated business shall report program data electronically. The secretary shall work with the CUPAs to develop a phase-in schedule for the electronic collection and submittal of information to be included in the statewide information management system, giving first priority to information relating to those chemicals determined by the secretary to be of greatest concern. The secretary, in making this determination shall consult with the CUPAs, the California Emergency Management Agency, the State Fire Marshal, and the boards, departments, and offices within the California Environmental Protection Agency.
(5) The secretary, in collaboration with the CUPAs, shall provide technical assistance to regulated businesses to comply with the electronic reporting requirements and may expend funds identified in clause (i) of subparagraph (A) of paragraph (3) for that purpose.

SEC. 5.

 Section 25507 of the Health and Safety Code is amended to read:

25507.
 (a) Except as provided in this article, a business shall establish and implement a business plan for emergency response to a release or threatened release of a hazardous material in accordance with the standards prescribed in the regulations adopted pursuant to Section 25503 if the business meets any of the following conditions at any unified program facility:
(1) (A) It handles a hazardous material or a mixture containing a hazardous material that has a quantity at any one time during the reporting year that is equal to, or greater than, 55 gallons for materials that are liquids, 500 pounds for solids, or 200 cubic feet for compressed gas. The physical state and quantity present of mixtures shall be determined by the physical state of the mixture as a whole, not individual components, at standard temperature and pressure.
(B) For the purpose of this section, for compressed gases, if a hazardous material or mixture is determined to exceed threshold quantities at standard temperature and pressure, it shall be reported in the physical state at which it is stored. If the material is an extremely hazardous substance, as defined in Section 355.61 of Title 40 of the Code of Federal Regulations, all amounts shall be reported in pounds.
(2) It is required to submit chemical inventory information pursuant to Section 11022 of Title 42 of the United States Code.
(3) It handles at any one time during the reporting year an amount of a hazardous material that is equal to, or greater than, the threshold planning quantity, under both of the following conditions:
(A) The hazardous material is an extremely hazardous substance, as defined in Section 355.61 of Title 40 of the Code of Federal Regulations.
(B) The threshold planning quantity for that extremely hazardous substance listed in Appendices A and B of Part 355 (commencing with Section 355.1) of Subchapter J of Chapter I of Title 40 of the Code of Federal Regulations is less than 500 pounds.
(4) (A) It handles at any one time during the reporting year a total weight of 5,000 pounds for solids or a total volume of 550 gallons for liquids, if the hazardous material is a solid or liquid substance that is classified as a hazard for purposes of Section 5194 of Title 8 of the California Code of Regulations solely as an irritant or sensitizer, except as provided in subparagraph (B).
(B) If the hazardous material handled by the facility is a paint that will be recycled or otherwise managed under an architectural paint a paint product recovery program approved by the Department of Resources Recycling and Recovery pursuant to Chapter 5 (commencing with Section 48700) of Part 7 of Division 30 of the Public Resources Code, the business is required to establish and implement a business plan only if the business handles at any one time during the reporting year a total weight of 10,000 pounds of solid hazardous materials or a total volume of 1,000 gallons of liquid hazardous materials.
(5) It handles at any one time during the reporting year cryogenic, refrigerated, or compressed gas in a quantity of 1,000 cubic feet or more at standard temperature and pressure, if the gas is any of the following:
(A) Classified as a hazard for the purposes of Section 5194 of Title 8 of the California Code of Regulations only for hazards due to simple asphyxiation or the release of pressure.
(B) Oxygen, nitrogen, or nitrous oxide ordinarily maintained by a physician, dentist, podiatrist, veterinarian, pharmacist, or emergency medical service provider at their place of business.
(C) Carbon dioxide or carbon dioxide mixed with simple asphyxiation gases that are classified as a hazard for purposes of Section 5194 of Title 8 of the California Code of Regulations.
(D) A nonflammable refrigerant gas, as defined in the California Fire Code, that is used in a refrigeration system.
(E) A gas that is used in a closed fire suppression system.
(6) It handles a radioactive material at any one time during the reporting year in quantities for which an emergency plan is required to be considered pursuant to Schedule C (Section 30.72) of Part 30 (commencing with Section 30.1), Part 40 (commencing with Section 40.1), or Part 70 (commencing with Section 70.1) of Chapter I of Title 10 of the Code of Federal Regulations, or pursuant to any regulations adopted by the state in accordance with these federal regulations.
(7) It handles perchlorate material, as defined in subdivision (c) of Section 25210.5, in a quantity at any one time during the reporting year that is equal to, or greater than, the thresholds listed in paragraph (1).
(8) (A) It handles a combustible metal or metal alloy that is defined as a pyrophoric or water-reactive material in the California Fire Code, in any quantity in raw stock, scrap, or powder form at any time during the reporting year.
(B) It handles a combustible metal or metal alloy that is defined as a combustible dust, flammable solid, or magnesium in the California Fire Code, in a quantity in raw stock, scrap, or powder form at any one time during the reporting year that is equal to, or greater than, 100 pounds.
(C) It handles a combustible metal or metal alloy that poses an explosive potential, when in molten form, in a quantity at any one time during the reporting year that is equal to, or greater than, 500 pounds.
(b) The following hazardous materials are exempt from the requirements of this section:
(1) Refrigerant gases, other than ammonia or flammable gas in a closed cooling system, that are used for comfort cooling for occupancies or space cooling for computer rooms.
(2) Compressed air in cylinders, bottles, and tanks used by fire departments and other emergency response organizations for the purpose of emergency response and safety.
(3) (A) Lubricating oil, if the total volume of each type of lubricating oil handled at a facility does not exceed 55 gallons and the total volume of all types of lubricating oil handled at that facility does not exceed 275 gallons at any one time.
(B) For purposes of this paragraph, “lubricating oil” means oil intended for use in an internal combustion crankcase, or the transmission, gearbox, differential, or hydraulic system of an automobile, bus, truck, vessel, airplane, heavy equipment, or other machinery powered by an internal combustion or electric powered engine. “Lubricating oil” does not include used oil, as defined in subdivision (a) of Section 25250.1.
(4) Both of the following, if the aggregate storage capacity of oil at the facility is less than 1,320 gallons and a spill prevention control and countermeasure plan is not required pursuant to Part 112 (commencing with Section 112.1) of Subchapter D of Chapter I of Title 40 of the Code of Federal Regulations:
(A) Fluid in a hydraulic system.
(B) Oil-filled electrical equipment that is not contiguous to an electric facility.
(5) (A) A hazardous material that meets the definition of a consumer product and is handled at, and found in, a retail establishment and intended for direct sale to the end user.
(B) The exemption provided for in subparagraph (A) shall not apply to either of the following:
(i) A consumer product handled at a facility that manufactures that product, or a separate warehouse or distribution center where there are no direct sales to consumers, or where a product is dispensed on the retail premises.
(ii) A consumer product sold at a retail establishment that has a National Fire Protection Association or “NFPA” or Hazardous Materials Identification System or “HMIS” rating of 3 or 4 and is stored, at any time, in quantities equal to, or greater than, 165 gallons for a liquid, 600 cubic feet for a gas, and 1,500 pounds for a solid. If a unified program agency determines that a consumer product stored at a retail establishment is stored at or above a reportable threshold listed in subdivision (a), and poses a significant potential hazard, the unified program agency may require the product to be reported in accordance with this chapter.
(6) Propane that is for on-premises use, storage, or both, in an amount not to exceed 500 gallons, that is for the sole purpose of cooking, heating employee work areas, and heating water within that facility, unless the unified program agency finds, and provides notice to the business handling the propane, that the handling of the on-premises propane requires the submission of a business plan, or any portion of a business plan, in response to public health, safety, or environmental concerns.
(7) Liquid or gaseous fuel in fuel tanks on vehicles or motorized equipment. For purposes of this section, the fuel tank shall be integral to the operation of the vehicle or motorized equipment.
(8) Treated wood and treated wood waste, unless the requirement that the facility submit chemical inventory information pursuant to Section 11022 of Title 42 of the United States Code applies. For the purposes of this section, the definition of “treated wood” set forth in subdivision (c) of Section 25230.1 applies. For the purposes of this section, the definition of “treated wood waste” set forth in subdivision (d) of Section 25230.1 applies. Treated wood or treated wood waste that would otherwise be subject to the requirements of this section pursuant to subparagraph (B) of paragraph 5, is exempt if it satisfies the requirements of this paragraph.
(c) In addition to the authority specified in subdivision (e), the governing body of the unified program agency may, in exceptional circumstances, following notice and public hearing, exempt from Section 25506 a hazardous material, as defined in subdivision (n) of Section 25501, if the unified program agency finds that the hazardous material would not pose a present or potential danger to the environment or to human health and safety if the hazardous material was released into the environment. The unified program agency shall send a notice to the secretary within 15 days from the effective date of any exemption granted pursuant to this subdivision.
(d) A unified program agency, upon application by a handler, may exempt the handler, under conditions that the unified program agency determines to be proper, from any portion of the requirements to establish and maintain a business plan, upon a written finding that the exemption would not pose a significant present or potential hazard to human health or safety or to the environment, or affect the ability of the unified program agency and emergency response personnel to effectively respond to the release of a hazardous material, and that there are unusual circumstances justifying the exemption. The unified program agency shall specify in writing the basis for any exemption under this subdivision.
(e) A unified program agency, upon application by a handler, may exempt a hazardous material from the inventory provisions of this article upon proof that the material does not pose a significant present or potential hazard to human health or safety or to the environment if released into the workplace or environment. The unified program agency shall specify in writing the basis for any exemption under this subdivision.
(f) A unified program agency shall adopt procedures to provide for public input when approving applications submitted pursuant to subdivisions (d) and (e).

SEC. 6.

 Section 25513 of the Health and Safety Code is amended to read:

25513.
 (a) Each administering county or city may, upon a majority vote of the governing body, adopt a schedule of fees to be collected from each business required to submit a business plan pursuant to this article that is within its jurisdiction. The governing body may provide for the waiver of fees when a business, as defined in paragraph (3), (4), or (5) of subdivision (c) of Section 25501, submits a business plan. The fee shall be set in an amount sufficient to pay only those costs incurred by the unified program agency in carrying out this article. In determining the fee schedule, the unified program agency shall consider the volume and degree of hazard potential of the hazardous materials handled by the businesses subject to this article.
(b) A unified program agency shall not impose a fee upon a business that is implementing an architectural paint a paint product recovery program approved by the Department of Resources Recovery and Recycling pursuant to Chapter 5 (commencing with Section 48700) of Part 7 of Division 30 of the Public Resources Code and that is exempt from the business plan requirements pursuant to subparagraph (B) of paragraph (4) of subdivision (a) of Section 25507, for the cost of processing that exemption.

SEC. 7.

 Section 42041 of the Public Resources Code is amended to read:

42041.
 For purposes of this chapter, the following definitions apply:
(a) “Advisory board” means the producer responsibility advisory board established pursuant to Section 42070.
(b) “Bulk or large format packaging” means packaging for a large amount of a product in a large packaging, thereby offsetting the need for multiple smaller packaging units for the same amount of product.
(c) “California circular economy administrative fee” means the fee imposed by the department pursuant to Section 42053.5.
(d) “Concentrate” or “concentration” means reducing the amount of packaging needed for a product by reformulating the product to allow for smaller quantities of the product to be used for the same purpose as the previous, larger quantity.
(e) (1) “Covered material” means both of the following:
(A) Single-use packaging that is routinely recycled, disposed of, or discarded after its contents have been used or unpackaged, and typically not refilled or otherwise reused by the producer.
(B) Plastic single-use food service ware, including, but not limited to, plastic-coated paper or plastic-coated paperboard, paper or paperboard with plastic intentionally added during the manufacturing process, and multilayer flexible material. For purposes of this subparagraph, “single-use food service ware” includes both of the following:
(i) Trays, plates, bowls, clamshells, lids, cups, utensils, stirrers, hinged or lidded containers, and straws.
(ii) Wraps or wrappers and bags used in the packaging of food offered for sale or provided to customers by food service establishments.
(2) Notwithstanding paragraph (1), “covered material” does not include any of the following:
(A) Packaging used for any of the following products:
(i) Medical products and products defined as devices or prescription drugs, as specified in the Federal Food, Drug, and Cosmetic Act (21 U.S.C. Secs. 321(g), 321(h), and 353(b)(1)).
(ii) Drugs that are used for animal medicines, including, but not limited to, parasiticide products for animals.
(iii) Products intended for animals that are regulated as animal drugs, biologics, parasiticides, medical devices, or diagnostics used to treat, or administered to, animals under the Federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 301 et seq.), the federal Virus-Serum-Toxin Act (21 U.S.C. Sec. 151 et seq.), or the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. Sec. 136 et seq.).
(iv) Infant formula, as defined in Section 321(z) of Title 21 of the United States Code.
(v) Medical food, as defined in Section 360ee(b)(3) of Title 21 of the United States Code.
(vi) Fortified oral nutritional supplements used for persons who require supplemental or sole source nutrition to meet nutritional needs due to special dietary needs directly related to cancer, chronic kidney disease, diabetes, malnutrition, or failure to thrive, as those terms are defined as by the International Classification of Diseases, Tenth Revision, or other medical conditions as determined by the department.
(B) Packaging used to contain products regulated by the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. Sec. 136 et seq.).
(C) Plastic packaging containers that are used to contain and ship products that are classified for transportation as dangerous goods or hazardous materials under Part 178 (commencing with Section 178.0) of Subchapter C of Chapter I of Subtitle B of Title 49 of the Code of Federal Regulations.
(D) Packaging used to contain hazardous or flammable products classified by the 2012 federal Occupational Safety and Health Administration Hazard Communication Standard (29 C.F.R. 1910.1200).
(E) Beverage containers subject to the California Beverage Container Recycling and Litter Reduction Act (Division 12.1 (commencing with Section 14500)).
(F) Packaging used for the long-term protection or storage of a product that has a lifespan of not less than five years, as determined by the department.
(G) Packaging associated with products covered under the architectural paint paint product recovery program established pursuant to Chapter 5 (commencing with Section 48700) of Part 7.
(H) (i) Covered material for which the producer demonstrates to the department that the covered material meets all of the following criteria:
(I) The covered material is not collected through a residential recycling collection service.
(II) The covered material does not undergo separation from other materials at a commingled recycling processing facility.
(III) The covered material is recycled at a responsible end market.
(IV) Until January 1, 2027, the producer annually demonstrates to the department that the material has had a recycling rate of 65 percent for three consecutive years. On and after January 1, 2027, the producer demonstrates to the department that the material has had a recycling rate at or over 70 percent annually, as demonstrated to the department every two years.
(ii) If only a portion of the covered material sold in or into the state by a producer meets the criteria of clause (i), only the portion of the covered material that meets the criteria of clause (i) is exempt from this chapter and any portion that does not meet the criteria is a covered material for purposes of this chapter.
(f) “Covered material category” means a category that includes covered material of a similar type and form, as determined by the department.
(g) “Curbside collection” means a program that includes the collection of material, including, but not limited to, covered materials, by a local jurisdiction or recycling or composting service provider under contract with a local jurisdiction.
(h) “Department” means the Department of Resources Recycling and Recovery.
(i) “Disadvantaged community” means an area identified by the California Environmental Protection Agency pursuant to Section 39711 of the Health and Safety Code or an area identified as a disadvantaged unincorporated community pursuant to Section 65302.10 of the Government Code.
(j) “Eliminate” or “elimination,” with respect to source reduction, means the removal of a plastic component from a covered material without replacing that component with a nonplastic component.
(k) “Expanded polystyrene” means blown polystyrene and expanded or extruded foams that are thermoplastic petrochemical materials utilizing a styrene monomer and processed by any technique or techniques, including, but not limited to, fusion of polymer spheres (expandable bead polystyrene), injection molding, foam molding, and extrusion-blow molding (extruded foam polystyrene).
(l) “Lightweighting” means reducing the weight or amount of material used in a specific packaging or food service ware without functionally changing the packaging or food service ware. “Lightweighting” does not include changes that result in a recyclable or compostable covered material becoming nonrecyclable or noncompostable or less likely to be recycled or composted.
(m)  “Local jurisdiction” means a city, county, city and county, regional agency formed pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code or Article 3 (commencing with Section 40970) of Chapter 1 of Part 2, or special district that provides solid waste collection services.
(n) “Low-income community” means an area with household incomes at or below 80 percent of the statewide median income or with household incomes at or below the threshold designated as low income by the Department of Housing and Community Development’s list of state income limits adopted pursuant to Section 50093 of the Health and Safety Code.
(o) “Malus fee” means a charge imposed by a PRO on a participant producer for a covered material due to the adverse environmental or public health impacts of the covered material.
(p) “Materials recovery facility” or “MRF” means a recycling facility that receives recyclable material, including, but not limited to, any covered material, for mechanical or manual sorting into specification-grade commodities for sale to a broker or end market.
(q) “Needs assessment” means a needs assessment prepared pursuant to Section 42067.
(r) “Optimize” or “optimization” means limiting the amount of covered material used in packaging by meeting product or packaging needs with minimal material. This includes, but is not limited to, eliminating unnecessary components, right-sizing, concentrating, and using bulk or large format packaging.
(s) “Packaging” means any separable and distinct material component used for the containment, protection, handling, delivery, or presentation of goods by the producer for the user or consumer, ranging from raw materials to processed goods. “Packaging” includes, but is not limited to, all of the following:
(1) Sales packaging or primary packaging intended to provide the user or consumer the individual serving or unit of the product and most closely containing the product, food, or beverage.
(2) Grouped packaging or secondary packaging intended to bundle, sell in bulk, brand, or display the product.
(3) Transport packaging or tertiary packaging intended to protect the product during transport.
(4) Packaging components and ancillary elements integrated into packaging, including ancillary elements directly hung onto or attached to a product and that perform a packaging function, except both of the following:
(A) An element of the packaging or food service ware with a de minimis weight or volume, which is not an independent plastic component, as determined by the department.
(B) A component or element that is an integral part of the product, if all components or elements of the product are intended to be consumed or disposed of together.
(t) “Plastic” means a synthetic or semisynthetic material chemically synthesized by the polymerization of organic substances that can be shaped into various rigid and flexible forms, and includes coatings and adhesives. “Plastic” includes, without limitation, polyethylene terephthalate (PET), high density polyethylene (HDPE), polyvinyl chloride (PVC), low density polyethylene (LDPE), polypropylene (PP), polystyrene (PS), polylactic acid (PLA), and aliphatic biopolyesters, such as polyhydroxyalkanoate (PHA) and polyhydroxybutyrate (PHB). “Plastic” does not include natural rubber or naturally occurring polymers such as proteins or starches.
(u) “Plastic component” means any single piece of covered material made partially or entirely of plastic. A plastic component may constitute the entirety of the covered material or a separate or separable piece of the covered material.
(v) “Processing” means to sort, segregate, break or flake, and clean material to prepare it to meet the specification for sale to a responsible end market.
(w) (1) “Producer” means a person who manufactures a product that uses covered material and who owns or is the licensee of the brand or trademark under which the product is used in a commercial enterprise, sold, offered for sale, or distributed in the state.
(2) If there is no person in the state who is the producer for purposes of paragraph (1), the producer of the covered material is the owner or, if the owner is not in the state, the exclusive licensee of a brand or trademark under which the product using the covered material is used in a commercial enterprise, sold, offered for sale, or distributed in the state. For purposes of this subdivision, a licensee is a person holding the exclusive right to use a trademark or brand in the state in connection with the manufacture, sale, or distribution of the product packaged in or made from the covered material.
(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 material is the person who sells, offers for sale, or distributes the product that uses the covered material in or into the state.
(4) “Producer” does not include a person who produces, harvests, and packages an agricultural commodity on the site where the agricultural commodity was grown or raised.
(5) For purposes of this chapter, the sale of covered materials shall be deemed to occur in the state if the covered materials are delivered to the purchaser in the state.
(x) “Producer responsibility organization” or “PRO” means an organization that is exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986 and is formed for the purpose of implementing a plan to meet the requirements of this chapter.
(y) “Producer responsibility plan” or “plan,” unless context requires otherwise, means the plan produced by a PRO, or by a producer that chooses to assume responsibility to comply with this chapter individually, and submitted to the advisory board and department pursuant to Section 42051.1.
(z) “Rate of inbound contamination” means the amount of nonrecyclable or noncompostable materials arriving at a materials recovery facility or other recycling or composting facility.
(aa) (1) “Recycle” or “recycling” means the process of collecting, sorting, cleansing, treating, and reconstituting materials that would otherwise ultimately be disposed of onto land or into water or the atmosphere, and returning them to, or maintaining them within, the economic mainstream in the form of recovered material for new, reused, or reconstituted products, including compost, that meet the quality standards necessary to be used in the marketplace.
(2) “Recycle” or “recycling” does not include any of the following:
(A) Combustion.
(B) Incineration.
(C) Energy generation.
(D) Fuel production, except for anaerobic digestion of source separated organic materials.
(E) Other forms of disposal.
(3) To be considered recycled, covered material shall be sent to a responsible end market.
(4) (A) The department may adopt regulations to define guidelines and verification requirements for covered material shipped out of state and exported to other countries for recycling, including processing requirements, and contamination standards, or to otherwise implement this paragraph.
(B) For any mixture of plastic waste exported to another country, the PRO or producer shall certify to the department that the processes and recycling technologies used meet both of the following requirements, as determined by the department:
(i) The plastic waste is a mixture of plastic types consisting only of one or more of polyethylene, polypropylene, or polyethylene terephthalate, and the export is destined for separate recycling of each material.
(ii) The plastic waste export is not prohibited by an applicable law or treaty of the destination jurisdiction, and the import of the plastic waste into the destination jurisdiction will be conducted in accordance with all applicable laws and treaties of that destination jurisdiction.
(C) For any mixture of plastic waste exported to other states or countries, the PRO or producer shall certify to the department that the recycling technology used meets the requirements of this subdivision.
(D) In meeting the requirements of subparagraphs (B) and (C), the PRO or producer shall provide documentation necessary to verify this certification and shall make the certification under penalty of perjury.
(5) The department’s regulations shall encourage recycling that minimizes generation of hazardous waste, generation of greenhouse gases, environmental impacts, environmental justice impacts, and public health impacts. The regulations shall include criteria to exclude plastic recycling technologies that produce significant amounts of hazardous waste.
(ab) “Recycling rate” means the percentage, overall and by category, of covered material sold, offered for sale, distributed, or imported in the state that is ultimately recycled. The recycling rate shall be calculated as the amount of covered material that is recycled in a given year divided by the total amount of covered material disposed of, as defined in subdivision (b) of Section 40192, and the amount of covered material recycled, unless and until the department adopts a new methodology for calculating the recycling rate by regulation.
(ac) “Recycling service provider” means a solid waste enterprise that provides solid waste handling services on behalf of a local jurisdiction.
(ad) “Responsible end market” means a materials market in which the recycling and recovery of materials or the disposal of contaminants is conducted in a way that benefits the environment and minimizes risks to public health and worker health and safety. The department may adopt regulations to identify responsible end markets and to establish criteria regarding benefits to the environment and minimizing risks to public health and worker health and safety.
(ae) (1) “Retailer” or “wholesaler” means the person or entity who sells covered material in the state to purchasers or offers to purchasers the covered material in the state through any means, including, but not limited to, any of the following:
(A) Remote offering, including sales outlets or catalogs.
(B) Electronically through the internet.
(C) Telephone.
(D) Mail.
(E) Direct sales.
(2) A person who sells covered material as a third-party seller using an online marketplace as described in paragraph (3) shall be considered the retailer or wholesaler for purposes of such transactions. The owner or operator of the online marketplace shall not be considered the retailer or wholesaler for such sales.
(3) For purposes of this subdivision, “online marketplace” means a consumer-directed, electronically accessed platform in which all of the following are true:
(A) The platform includes features that enable third-party sellers to sell consumer products directly to consumers in the state without the owner or operator of the platform involved in the transaction other than by providing order processing, payment, storage, shipping, or delivery services.
(B) Third-party sellers use the features described in subparagraph (A) to sell directly to consumers in the state, with title to the consumer product passing from the third-party sellers directly to consumers and not being held by the owner or operator of the online marketplace at any point during the transaction, including upon receipt of the order and throughout the order fulfillment process.
(C) Except as provided by subparagraph (E), the owner or operator of the platform does not directly or indirectly control the covered material used in packaging and shipping of a consumer product in this state.
(D) The person or entity operating the platform has a contractual or similar relationship with consumers governing their use of the platform to purchase consumer products.
(E) Third-party sellers agree, pursuant to the platform’s terms and conditions or other enforceable agreement, that they will not use the platform to offer for sale, sell, or distribute into the state covered material that does not meet the requirements of this chapter.
(af) “Reusable” or “refillable” or “reuse” or “refill,” in regard to packaging or food service ware, means either of the following:
(1) For packaging or food service ware that is reused or refilled by a producer, it satisfies all of the following:
(A) Explicitly designed and marketed to be utilized multiple times for the same product, or for another purposeful packaging use in a supply chain.
(B) Designed for durability to function properly in its original condition for multiple uses.
(C) Supported by adequate infrastructure to ensure the packaging or food service ware can be conveniently and safely reused or refilled for multiple cycles.
(D) Repeatedly recovered, inspected, and repaired, if necessary, and reissued into the supply chain for reuse or refill for multiple cycles.
(2) For packaging or food service ware that is reused or refilled by a consumer, it satisfies all of the following:
(A) Explicitly designed and marketed to be utilized multiple times for the same product.
(B) Designed for durability to function properly in its original condition for multiple uses.
(C) Supported by adequate and convenient availability of and retail infrastructure for bulk or large format packaging that may be refilled to ensure the packaging or food service ware can be conveniently and safely reused or refilled by the consumer multiple times.
(ag) “Right-size” or “right-sizing” means reducing the amount of material used to package an item by reducing unnecessary space or eliminating unnecessary components of the packaging.
(ah) “Rural area” has the same meaning as defined in Section 50101 of the Health and Safety Code.
(ai) “Single use” means conventionally disposed of after a single use or not sufficiently durable or washable to be, or not intended to be, reusable or refillable.
(aj) “Source reduction” means the reduction in the amount of covered material created by a producer relative to a baseline established pursuant to subdivision (b) of Section 42057. Methods of source reduction include, but are not limited to, shifting covered material to reusable or refillable packaging or a reusable product or eliminating unnecessary packaging. “Source reduction” does not include either of the following:
(1) Replacing a recyclable or compostable covered material with a nonrecyclable or noncompostable covered material or a covered material that is less likely to be recycled or composted.
(2) Switching from virgin covered material to postconsumer recycled content.
(ak) “Source reduction plan” means the plan prepared as part of the PRO plan in accordance with Section 42057.
(al) “Unexpended funds” means moneys in a PRO’s accounts that the organization is not already obligated to pay pursuant to a contract, claim, or similar mechanism. “Unexpended funds” excludes the California circular economy administrative fees.

SEC. 2.SEC. 8.

 Chapter 1.5 (commencing with Section 47725) is added to Part 7 of Division 30 of the Public Resources Code, to read:
CHAPTER  1.5. Household Hazardous Waste Producer Responsibility Act of 2024
Article  1. General Provisions and Definitions

47725.
 (a) This chapter shall be known, and may be cited, as the Household Hazardous Waste Producer Responsibility Act of 2024.
(b) The purpose of this chapter 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 California’s local governments, and may cause significant damage to the environment when managed improperly.

47726.
 (a) (1) Except as provided in Section 47740, the department shall CalRecycle, in coordination with DTSC, shall adopt, amend, or repeal, 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), regulations to implement this chapter. The department CalRecycle shall not adopt regulations pursuant to this section with an effective date earlier than July 1, 2027.
(2) As part of the regulations, CalRecycle shall establish methodologies to determine a baseline amount of covered products improperly disposed of or dumped and to measure progress towards meeting the performance-based standards in Section 47741.
(b) On or before January 1, 2026, the department DTSC shall establish and post on its internet website a list of covered products.
(c) On or before January 1, 2027, the department CalRecycle shall approve a single one PRO that meets the requirements of this chapter.
(d) When CalRecycle updates its material characterization study pursuant to subdivision (d) of Section 42355.51 in 2027, CalRecycle shall also include the following information:
(1) The amount of covered products being improperly disposed of or dumped.
(2) The amount of covered products being properly collected and managed through a hazardous waste facility.

47727.
 For purposes of this chapter, the following definitions apply:
(a) (1) “Approved plan” means a producer responsibility plan that has been approved by the department CalRecycle pursuant to Section 47740 and that has not been revoked by the department CalRecycle pursuant to Section 47757.
(2) A conditionally approved plan is an approved plan, except as used in Section 47740.
(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) “CalRecycle” means the Department of Resources Recycling and Recovery.

(c)

(d) “Consumer” means a purchaser, owner, or lessee of a covered product, including a person, business, corporation, limited partnership, nonprofit organization, or governmental entity.

(d)

(e) “Contact information” means a name, physical address, mailing address, email address, and phone number.

(e)

(f) “Covered product” means a product that is flammable, toxic, ignitable, corrosive, reactive, or pressurized and that meets all of the following requirements:

(1)Is flammable, toxic, ignitable, corrosive, reactive, or pressurized.

(1) The product either meets the criteria for household hazardous waste, as defined in Section 25218.1 of the Health and Safety Code, at the time of disposal, or is defined by DTSC in regulations as household hazardous waste.
(2) Is The product is one or more of the following: following product types:
(A) Aerosols, cleaners, glues, solvents, oxidizers, and adhesives.
(B) Automotive products. products, including chemically formulated consumer products used in a household setting for purposes of maintaining the function of a motor vehicle, as defined in Section 670 of the Vehicle Code, including, but not limited to, antifreeze, cleaner, degreasers, solvents, and automotive paint.
(C) Electronics and paint products not covered under existing statutorily required programs.
(D) Fire extinguishers with up to 50 pounds of water capacity.
(E) Degreasers, lubricants, liquid adhesives, and strippers.
(F) Gas cylinders, including nonrefillable helium, oxygen, and flammable cylinders all of the following:
(i) Nonrefillable cylinders of helium, oxygen, or another flammable gas and with up to 50 pounds of water capacity, propane capacity.
(ii) Propane cylinders with up to one pound, and spray pound.
(iii) Spray foam insulation tanks.
(G) Lamp kerosene and lighter fluid.
(H) Rust, tar, and bug remover.
(I) Fertilizers, pesticides, insecticides, herbicides, fungicides, and soil fumigants.
(J) Products containing asbestos, mercury, or polychlorinated biphenyls.
(K) Pool chemicals and photochemicals.
(L) Concrete mix containing corrosive lime.
(M) Universal waste, as defined in Section 25123.8 of the Health and Safety Code.

(3)Satisfies either of the following criteria:

(A)Meets the criteria for household hazardous waste, as defined in Section 25218.1 of the Health and Safety Code, at the time of disposal.

(B)Is defined by the department in regulations as household hazardous waste.

(4)Is

(3) The product is none of the following:
(A) A product that is subject to another statewide extended producer responsibility program pursuant to state law.
(B) Health and beauty products.
(C) 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)“Department” means the Department of Toxic Substances Control.

(g) “DTSC” means the Department of Toxic Substances Control.

(g)

(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.

(h)

(i) “Participant producer” means a producer that is registered with the PRO.

(i)

(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 person’s 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 chapter, 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.

(j)

(k) “Producer responsibility organization” or “PRO” means an organization that is exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986 that is appointed by one or more producers to act as an agent on behalf of the producers to design, submit, and administer a producer responsibility organization pursuant to this chapter.

(k)

(l) “Producer responsibility plan” or “plan” means the plan developed by a PRO for the collection, transportation, and the safe and proper management of covered products pursuant to Article 4 (commencing with Section 47740) and submitted to the department CalRecycle for approval pursuant to Section 47740.

(l)

(m) “Sell” or “sales” means a transfer of title of a covered product for consideration, including a remote sale conducted through a sales outlet, catalog, internet website, online marketplace, or similar electronic means. For purposes of this chapter, “sell” or “sales” includes a lease through which a covered product is provided to a consumer by a manufacturer, wholesaler, or retailer.

Article  2. Producers

47730.
 (a) No later than 90 days after the department’s CalRecycle’s approval of the PRO, pursuant to subdivision (c) of Section 47726, a producer shall register with the PRO.
(b) No later than 30 days after the effective date of the regulations described in subdivision (a) of Section 47726, a producer producer, or the PRO on behalf of the producer, shall notify the department CalRecycle electronically that the producer has registered with the PRO.
(c) A producer shall register with the PRO in accordance with the procedures and requirements established by the PRO.
(d) Upon approval of a plan pursuant to Section 47740, 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 PRO.
(2) The covered product is accounted for in the plan.
(3) The department CalRecycle has approved the plan.
(e) If an entity does not meet the definition of a producer and is not subject to this chapter but, at any point, meets the definition of a producer, that entity shall be deemed a producer at that point and shall register with the PRO and otherwise comply with the requirements of this chapter before beginning to sell, offer for sale, import, or distribute a covered products product in the state.

47731.
 (a) No later than 180 days after the effective date of the regulations described in Section 47726, a producer shall provide to the department, CalRecycle and DTSC, in a form and manner jointly established by the department, CalRecycle and DTSC, both of the following:
(1) The producer’s contact information.
(2) 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.
(b) A producer shall provide to the department CalRecycle and DTSC updates to the information described in subdivision (a) on or before January 15 of each year, within 30 days of changes to the contact information or list, and upon the department’s CalRecycle’s or DTSC’S request.

Article  3. Producer Responsibility Organizations

47735.
 The PRO shall have a governing board consisting of participant producers that represent the diversity of covered products.

47736.
 If the department CalRecycle determines that the PRO no longer meets the requirements of this chapter or fails to implement or administer an approved plan in a manner that effectuates the purposes of this chapter, the department CalRecycle may revoke its approval of the plan pursuant to Section 47757 and may approve a plan submitted by another PRO.

47737.
 The PRO shall notify the department CalRecycle within 30 calendar days of any of the following:
(a) The end of a three-month period during which the PRO unsuccessfully attempted to obtain a fee, records, or information from a participant producer.
(b) The date that a producer no longer participates in the PRO’s approved plan.
(c) Any instance of noncompliance by a participant producer.

47738.
 Within 24 months of the effective date of the regulations described in Section 47726, the PRO with an approved plan shall provide a free and convenient collection and management system for covered products. products at no cost to residents or local governments.

47739.
 The PRO may conduct a needs assessment to determine appropriate strategies and investments needed to meet the requirements of this chapter.

Article  4. Producer Responsibility Plans

47740.
 (a) Within 12 months of the effective date of the regulations described in Section 47726, the PRO shall develop and submit a proposed plan to the department, CalRecycle, in a form and manner determined by the department. CalRecycle.
(b) (1) Within six months of receipt of a proposed plan, the department CalRecycle, in collaboration with DTSC, shall approve, approve in part, or disapprove the plan.
(2) CalRecyle and DTSC shall jointly determine a process for approving the plan and any other information submitted in compliance with this chapter to ensure that CalRecycle and DTSC each retain oversight commensurate with its jurisdiction and authority and to minimize the cost and burden to producers. DTSC shall be responsible for the approval of plan components related to safe handling, transportation, and management of covered products.
(3) Within four months of receiving the plan, DTSC shall review and approve, approve in part, or disapprove the plan components related to safe handling, transportation, and management of covered products. If DTSC approves in part or disapproves any plan components, DTSC shall notify the PRO of changes necessary for plan approval, and DTSC and the PRO shall follow the process outlined in paragraph (4). Within three days of DTSC approving the plan components, it shall notify CalRecycle.
(4) CalRecycle shall not approve the plan until it receives approval of the plan components from DTSC pursuant to paragraphs (2) and (3). Within four months after being notified by DTSC that it has approved the plan components, CalRecycle shall approve, approve in part, or disapprove the plan. In making a determination pursuant to this subdivision, CalRecycle or DTSC may solicit information from producers, other agencies or departments, or stakeholders, as it deems appropriate.
(c) If the department CalRecycle approves a proposed plan, a revised plan, or a conditionally approved plan, then the department CalRecycle shall notify the PRO of the approval. The PRO shall implement the approved plan within 90 days of receipt of the notice of approval, or as otherwise agreed to by the department. CalRecycle.
(d) If the department CalRecycle disapproves a proposed plan or a revised plan, then the department CalRecycle shall notify the PRO of the disapproval and specify the reasons for disapproval. Within 30 days of receipt of notice of disapproval, the PRO shall submit a revised plan.
(e) (1) If the department CalRecycle approves a proposed plan or a revised plan in part, then the department CalRecycle shall notify the PRO of the partial approval and identify the portions of the plan that do not comply with this chapter.
(2) Within 30 days of receipt of the notice of partial approval, the PRO shall submit a revised plan to the department. CalRecycle.
(3) The PRO shall implement the approved parts of the plan within 90 days of receipt of the notice of partial approval, or as otherwise agreed to by the department. CalRecycle.
(f) Within 30 days of receipt of a revised plan, the department CalRecycle shall approve, approve in part, or disapprove the revised plan.
(g) If the department CalRecycle has not approved, approved in part, or disapproved a plan within one year of receipt of the plan, then the plan shall be deemed conditionally approved and the department CalRecycle shall notify the PRO of the conditional approval.
(h) The department CalRecycle may impose additional requirements for any portion of a proposed plan, a revised plan, or a conditionally approved plan that does not comply with this chapter and that has not been approved.
(i) When reviewing a proposed plan, a revised plan, or a conditionally approved plan, the department CalRecycle or DTSC may solicit information from producers, other agencies or departments, or stakeholders stakeholders, as the department CalRecycle or DTSC deems appropriate.
(j) The department CalRecycle or DTSC may review an approved plan or a conditionally approved plan at any time. If the department CalRecycle or DTSC finds that an approved plan or a conditionally approved plan is deficient, then it may recommend modifications.
(k) Any substantial changes to an approved plan shall be submitted to the department CalRecycle 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 PRO to the department CalRecycle 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 CalRecycle may release financial or sales data in summary form only so the information cannot be attributable to a specific entity.
(2) The PRO may submit to the department CalRecycle 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 plan, the department CalRecycle shall post on its internet website the plan and a list of all the participant producers covered by the plan.
(m) Within 24 months of the effective date of the regulations described in Section 47726, a PRO shall have a plan approved or conditionally approved by the department, CalRecycle, and each producer shall be subject to an approved plan or conditionally approved plan.

47741.
 A plan shall do all of the following:
(a) Be designed to ensure the safe and convenient collection and management of covered products. products and to ensure both of the following performance-based standards are met:
(1) The PRO shall decrease the aggregate percentage of covered products improperly disposed of or dumped by 20 percent by 2032, as measured against the baseline determined pursuant to Section 47726.
(2) The PRO shall decrease the aggregate percentage of covered products improperly disposed of or dumped by 40 percent by 2035, as measured against the baseline determined pursuant to Section 47726.
(b) Include strategies to ensure 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.

(b)

(c) Include the contact information of each participant producer that is covered by the plan. producer.

(c)

(d) Include a financial section that demonstrates how the PRO will comply with Section 47745, including, but not limited to, a five-year budget that demonstrates how the PRO will comply with subdivision (b) of Section 47745.

(d)

(e) Include a section describing the PRO’s contingency plan in the event the 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. CalRecycle. The trustee shall operate the most recently approved plan, subject to the direction of the department, CalRecycle, until such time as a new plan is approved. Upon plan expiration or revocation of the plan, the balance of the PRO’s 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 plan shall be transferred to the control of the trustee within five calendar days.

(e)

(f) Include a section describing a comprehensive statewide education and outreach program designed to educate consumers and promote participation in the program offered by the PRO. The comprehensive statewide education and outreach program shall do both 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 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.
(g) Include a description on how the PRO will leverage and use existing collection programs and infrastructure.

47742.
 (a) The PRO shall review its approved plan at least every five years and determine whether revisions are necessary.
(b) If the PRO determines that revisions to its approved plan are necessary, the PRO shall submit to the department CalRecycle a revised plan for review and approval using the procedures set forth in Section 47740. The PRO shall submit the revised plan to the department CalRecycle 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 plan.
(c) If the PRO determines that no revisions to the plan are necessary, the PRO shall send a letter to the department, CalRecycle 12 months before the review deadline outlined in subdivision (a) explaining that the PRO has reviewed the plan and determined that no revisions are needed. The department CalRecycle may disapprove the PRO’s determination within 30 days of receipt of the letter if the department CalRecycle concludes that the PRO cannot implement the objectives of this chapter without revising the plan. If the department CalRecycle disapproves the PRO’s determination, the department CalRecycle may indicate to the PRO which sections of the plan need revision and the PRO shall submit to the department CalRecycle a revised plan, or plan sections, for review and approval, following the procedures set forth in Section 47740. The PRO shall submit the revised plan pursuant to this subdivision within 60 days of receipt of the department’s CalRecycle’s disapproval.
(d) The department CalRecycle may consult with or submit the revised plan to another state agency or department if the department CalRecycle determines it is necessary for making its determination. The duration of time the department CalRecycle takes for this consultation is not included in the time allotted to the department CalRecycle for review pursuant to this section.

Article  5. Financial Provisions

47745.
 The PRO shall do all of the following:
(a) (1) Establish a method for fully funding its plan in a manner that equitably distributes the plan’s costs among participant producers in a manner that reflects sales volumes and volumes, adjusted to account for the cost to manage the covered products that a each participant producer produces. is responsible for and the relative toxicity of each covered product.
(2) The distribution of the plan’s costs shall incorporate malus fees or credits for participant producers, with adjustments based on any of the following, as applicable:
(A) 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.
(B) Actions taken by the participant producer, including clear and accurate disposal, recycling or composting, or reuse and refill 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 flammability, toxicity, ignitability, corrosiveness, reactivity, or pressurized level of the covered product.
(b) (1) Operate on a budget that establishes a funding level sufficient to operate the PRO in a prudent and responsible manner. The budget shall demonstrate how the PRO’s estimated revenues will cover all of the PRO’s budgeted costs for each cost category. Budgeted cost categories shall include, but not be limited to, administrative costs, capital costs, and a reserve.
(2) Administrative costs shall include the department’s actual and reasonable regulatory costs, costs incurred by CalRecycle and DTSC, which includes full personnel costs, to implement and enforce this chapter, consistent with the regulations described in Section 47726. For purposes of this paragraph, PRO implementation begins upon the department’s approval of the PRO’s plan, except the department’s that costs shall include actual regulatory development costs and other startup costs incurred before a plan’s submittal and approval.
(3) The reserve shall include funds to operate the PRO if there are unexpected events, losses of income, or large unbudgeted expenses. The reserve shall also protect the infrastructure that the PRO relies on in its 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 PRO shall maintain reserve funds sufficient to operate the plan for not less than six months. When a new PRO is approved by the department, CalRecycle, the PRO shall establish its reserve and maintain the required reserve fund balance by the end of the second year of plan operation. If the PRO’s plan expires or is revoked, the reserve balance shall be transferred to a successor PRO or a trustee pursuant to the portion of the plan described in subdivision (d) (e) of Section 47741.
(c) On a schedule determined by the department, CalRecycle, pay the department CalRecycle fees to cover the department’s cost CalRecycle’s and DTSC’s regulatory costs, as described in Section 47747.
(d) Establish a process by which the financial activities of the PRO that are related to implementation of the plan will be subject to an independent audit consistent with generally accepted accounting principles and pursuant to Section 47752. Written
(e) Provide written certification by an authorized representative of the PRO that, at the time of submission to the department, CalRecycle, all aspects of the plan are in compliance with all applicable state and federal laws and regulations.

(e)

(f) Have adequate financial responsibility and financial controls in place, including fraud prevention measures, to ensure proper management of funds.

47746.
 Each participant producer shall, through the PRO, pay all administrative and operational costs associated with establishing and implementing the PRO’s approved plan, including the cost of the collection, transportation, and safe and proper management of covered products. products, including covered products that have been illegally dumped.

47747.
 (a) Within four months of the effective date of the regulations described in Section 47726, the department CalRecycle shall notify the PRO of the estimated regulatory costs for CalRecycle and DTSC and the criteria for the costs specified in the regulations. Those costs shall include the costs associated with developing the regulations and other department CalRecycle and DTSC activities that occur before a plan’s submittal and approval, including, but not limited to, full personnel costs related to implementing and enforcing this chapter. The costs shall not exceed the department’s CalRecycle’s and DTSC’s reasonable regulatory costs to implement and enforce this chapter.
(b) The department CalRecycle shall deposit all moneys received from the PRO 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 CalRecycle to implement and enforce this chapter and to reimburse any outstanding loans made from other funds used to finance the development of the regulations and the startup costs of the department’s CalRecycle’s activities pursuant to this chapter.
(d) The moneys in the Household Hazardous Waste Producer Responsibility Fund shall only be expended for those purposes described in subdivision (c).

47748.
 (a) If the plan relies on a local jurisdiction to collect or manage a covered product, or to otherwise comply with Section 47738, then the PRO shall reimburse the local jurisdiction for costs associated with the collection and management of the covered product.
(b) Reimbursement costs pursuant to subdivision (a) shall be limited to the actual costs of transportation and management of a covered product. product, including the costs to reimburse local jurisdictions to collect and manage covered products that have been illegally dumped.

Article  6. Records, Audits, and Reports

47750.
 (a) The PRO shall keep board minutes, books, and records that clearly reflect the activities and transactions of the PRO for a period of not less than five years.
(b) The department CalRecycle may audit the PRO annually.
(c) The failure of the PRO, a participant producer, or their respective agent who holds records, records to produce documents or data that is requested by the department, CalRecycle, required to be collected or generated to carry out operation of the plan in the form and manner determined by the department CalRecycle as part of a department CalRecycle audit, or review of a third-party audit, shall constitute a violation of this chapter.

47751.
 (a) A producer, PRO, manufacturer, distributor, retailer, dealer, or importer producer and the PRO shall do both of the following:
(1) Upon request, provide the department CalRecycle with reasonable and timely access, as determined by the department, CalRecycle, to its facilities and operations, as necessary to determine compliance with this chapter.
(2) Within 14 days of a request from the department, CalRecycle, provide the department CalRecycle with relevant records, as determined by the department, CalRecycle, necessary to determine compliance with this chapter.
(b) All reports and records provided to the department CalRecycle pursuant to this chapter shall be provided under penalty of perjury.
(c) The department CalRecycle may impose administrative civil penalties pursuant to Article 7 (commencing with Section 47755) on a producer, PRO, manufacturer, distributor, retailer, dealer, or importer producer or PRO that fails to provide the department CalRecycle with the access required pursuant to this section.

47752.
 (a) The PRO shall retain an independent certified public accountant, certified in the United States, to annually audit the accounting books of the PRO. The department CalRecycle shall review the independent certified public accountant’s audit for compliance with this chapter and consistency with the PRO’s approved plan and the annual report required by Section 47753. After the department CalRecycle conducts its own audit, the department review, CalRecycle shall notify the PRO of any conduct or practice that does not comply with this chapter or of any inconsistencies identified in the audit. review. The PRO may obtain copies of the department’s audit, CalRecycle’s review, including proprietary information contained in the department’s audit, CalRecycle’s review, upon request. The producer or PRO may request the department CalRecycle 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 as part CalRecycle 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 PRO’s compliance with this chapter.
(3) An audit of the PRO’s adherence to, execution of, and consistency with its approved plan.
(c) The PRO shall include the independent audit in its annual report submitted to the department CalRecycle pursuant to Section 47753 commencing within 18 months of plan the plan’s approval by the department. The department shall review the audit for compliance with this chapter and consistency with the PRO’s approved plan. CalRecycle.

47753.
 On or before January 1 of each year, the PRO shall submit to the department, CalRecycle, and make publicly available, an annual report, in a format prescribed by the department, CalRecycle, that includes, at minimum, all of the following information for the preceding calendar year, unless otherwise specified:
(a) The PRO’s costs, according to the cost categories established in the 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 producers registered with the PRO. 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 (e) (f) of Section 47741, including the PRO’s evaluation of the effectiveness of the program.
(g) Recommendations for any future proposed substantial changes to the plan.
(h) Any other information required by the regulations adopted pursuant to described in Section 47726.

47754.
 (a) No later than 120 days after the date the department CalRecycle receives an annual report, the department report pursuant to Section 47753, CalRecycle shall notify the PRO if the annual report is compliant or noncompliant.
(b) If the department CalRecycle determines that the annual report is noncompliant due to failure to meet the requirements of this chapter, the department CalRecycle may require the resubmittal of the annual report and take enforcement action.
(c) The department CalRecycle may consult with or submit the annual report to a state agency or department if it determines it is necessary to determine the annual report’s compliance or noncompliance. The duration of time the department CalRecycle takes for this consultation shall not be included in the time allotted to the department CalRecycle for review pursuant to subdivision (a).

Article  7. Enforcement

47755.
 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 47756 or received a certification letter described in subdivision (e) of Section 47756.

47756.
 (a) Within 12 months of the effective date of the regulations described in Section 47726, and on or before July 1 of each year thereafter, the department CalRecycle shall publish on the department’s CalRecycle’s internet website, a list of the names of producers that are compliant with this chapter. The department CalRecycle shall list, as appropriate, the reported brands of covered products for each producer.
(b) A retailer, importer, or distributor shall monitor the department’s CalRecycle’s internet website to determine if a producer, brand, or covered product is in compliance with this chapter.
(c) Notwithstanding any other provision of this chapter, upon identification of a producer that is not registered with the PRO with an approved plan, the department CalRecycle shall issue a notice of noncompliance to the producer.
(d) If the department CalRecycle determines a producer is not in compliance with this chapter, the department CalRecycle shall remove the producer, and its brands of covered products, from the compliance list on its internet website.
(e) The department CalRecycle shall provide a certification letter to a producer that is not listed on the department’s CalRecycle’s internet website as a compliant producer, but that has demonstrated compliance with this chapter to the department. CalRecycle. The certification letter shall state that the producer of a covered product is in compliance with this chapter. The department CalRecycle may update the compliance list on its website.

47757.
 (a) The department CalRecycle may administratively impose on any person who is in violation of this chapter a civil penalty 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 chapter, the department CalRecycle 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 chapter and the period of time over which these noncompliant actions were taken.
(5) The willfulness of the violator’s 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 PRO, producer, importer, distributor, or any other party regulated pursuant to this chapter has not met a material requirement of this chapter, in addition to any other penalties authorized pursuant to this chapter, the department CalRecycle may take one or both of the following actions to ensure compliance with the requirements of this chapter, after affording the PRO, producer, importer, distributor, or any other party regulated pursuant to this chapter, an opportunity to respond to or rebut the finding:
(1) Revoke the PRO’s approved plan approval or require the PRO to resubmit the plan or plan section.
(2) Require additional reporting relating to compliance with the material requirements of this chapter that were not met.
(d) The department CalRecycle shall deposit all penalties collected pursuant to this section into the Household Hazardous 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 Products Penalty Account shall be available for expenditure by the department on CalRecycle for activities related to the collection, reuse, and recycling of covered products, grants for related purposes, and the administration and enforcement of this chapter.
(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 chapter and mandates minimum due process requirements.

47758.
 (a) After the time for judicial review under Section 11523 of the Government Code has expired, the department CalRecycle 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, CalRecycle, for a judgment to collect any unpaid civil penalties or restitution or to enforce any other remedy provided by this chapter. 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 the provisions of law 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 chapter, the Attorney General may, at the request of the director Director of Resources Recycling and Recovery or upon the Attorney General’s own determination, bring an action in the superior court for an order enjoining the act, practice, or omission. The order may require remedial measures and direct compliance with this chapter. 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.

47759.
 A producer shall not be subject to penalties pursuant to this article for noncompliance with subdivision (d) of Section 47730 until two years after the effective date of the regulations described in Section 47726.

Article  8. Antitrust Immunity

47760.
 (a) Except as provided in subdivision (b), an action that is taken by a producer or PRO 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 PRO is exercising authority pursuant to this chapter.
(b) Subdivision (a) applies to all of the following actions taken by a PRO:
(1) The creation, implementation, or management of a plan approved or conditionally approved by the department CalRecycle pursuant to Article 4 (commencing with Section 47740) and the determination of the types or quantities of covered products recycled or otherwise managed pursuant to a the plan.
(2) The determination of the cost and structure of an approved plan.
(3) The establishment, administration, collection, or disbursement of a charge associated with funding the implementation of this chapter.
(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. 9.

 The heading of Chapter 5 (commencing with Section 48700) of Part 7 of Division 30 of the Public Resources Code is amended to read:
CHAPTER  5. Architectural Paint Product Recovery Program

SEC. 10.

 Section 48700 of the Public Resources Code is amended to read:

48700.
 The purpose of the architectural paint product recovery program established pursuant to this chapter is to require paint manufacturers to develop and implement a program to collect, transport, and process postconsumer paint to reduce the costs and environmental impacts of the disposal of postconsumer paint in this state.

SEC. 11.

 Section 48701 of the Public Resources Code is amended to read:

48701.
 For purposes of this chapter, the following terms have the following meanings:
(a) (1) “Aerosol coating product” means a pressurized coating product containing pigments or resins dispensed by means of a propellant and packaged and sold in a disposable aerosol container for handheld application, or for use in specialized equipment for ground traffic or marking applications.
(2) “Aerosol coating product” does not include paint thinner, paint remover, graffiti remover, caulking compounds that contain no appreciable level of opaque fillers or pigments, products subject to Article 1 (commencing with Section 94500) or Article 2 (commencing with Section 94507) of Subchapter 8.5 of Chapter 1 of Division 3 of Title 17 of the California Code of Regulations, or other nonaerosol coating products not regulated under Article 3 (commencing with Section 94520) of Subchapter 8.5 of Chapter 1 of Division 3 of Title 17 of the California Code of Regulations.

(3)Aerosol coating products shall not be regulated under this chapter until the implementation date of a plan or plan amendment concerning aerosol coating products approved by the department pursuant to Section 48704, or January 1, 2027, whichever occurs sooner. The department may authorize an extension of this implementation date if the department determines the extension is necessary to implement the requirements of this chapter.

(b) “Architectural paint” includes both of the following:
(1) Interior and exterior architectural coatings, sold in containers of five gallons or less for commercial or homeowner use, but does not include coatings purchased for industrial or original equipment manufacturer use.
(2) Aerosol coating products.
(c) “Coating-related product” means a product used as a paint thinner, paint colorant, paint enhancement, paint remover, surface sealant, surface preparation, or surface adhesive and sold for home improvement. “Home improvement” has the same meaning as defined in Section 7151 of the Business and Professions Code.

(c)

(d) “Consumer” means a purchaser or owner of architectural paint, a covered paint product, including a person, business, corporation, limited partnership, nonprofit organization, or governmental entity.
(e) (1) “Covered paint product” means an aerosol coating product, architectural paint, coating-related product, or nonindustrial coating.
(2) “Covered paint product” does not include a health and beauty product.

(d)

(f) “Department” means the Department of Resources Recycling and Recovery.

(e)

(g) “Distributor” means a person that has a contractual relationship with one or more manufacturers to market and sell architectural paint covered paint product to retailers.

(f)

(h) “Manufacturer” means a manufacturer of architectural paint. a covered paint product.
(i) “Nonindustrial coating” means arts and crafts paint, automotive refinish paint, driveway sealer, faux finish or glaze, furniture oil, furniture paint, lime wash, lime paint, marine paint, antifouling paint, road and traffic marking paint, two-component paint, wood preservative, fire retardant paint, dry fog paint, chalkboard paint, and conductive paint, sold in containers of five gallons or less for commercial and homeowner use, but does not include coatings purchased for industrial or original equipment manufacturer use.

(g)

(j) “Postconsumer architectural paint” means architectural paint not used by the purchaser.
(k) “Postconsumer paint” means architectural paint a covered paint product not used by the purchaser.

(h)

(l) “Retailer” means a person that sells architectural paint covered paint products in the state to a consumer. A sale includes, but is not limited to, transactions conducted through sales outlets, catalogs, or the internet or any other similar electronic means.

(i)

(m) “Stewardship organization” means a nonprofit organization created by the manufacturers to implement the architectural paint stewardship program described in Section 48703.

SEC. 12.

 Section 48701.5 is added to the Public Resources Code, to read:

48701.5.
 Aerosol coating products, coating-related products, and nonindustrial coatings shall not be regulated under this chapter until the implementation date of a plan or plan amendment concerning the applicable product is approved by the department pursuant to Section 48704, or January 1, 2027, whichever occurs sooner. The department may authorize an extension of this implementation date for a product if the department determines the extension is necessary to implement the requirements of this chapter.

SEC. 13.

 Section 48702 of the Public Resources Code is amended to read:

48702.
 (a) A manufacturer of architectural paint a covered paint product sold in this state shall, individually or through a stewardship organization, submit an architectural a paint product stewardship plan to the department to develop and implement a recovery program to reduce the generation of postconsumer architectural paint, promote the reuse of postconsumer architectural paint, and manage the end-of-life of postconsumer architectural paint, in an environmentally sound fashion, including collection, transportation, processing, and disposal.
(b) (1) A manufacturer or retailer shall not sell or offer for sale in this state architectural paint a covered paint product to any person in this state unless the manufacturer is in compliance with this chapter.
(2) The sales prohibition in paragraph (1) shall be effective on the 120th day after the notice described in subdivision (c) is posted on the department’s Internet Web site, and internet website, shall apply to any manufacturer that is not listed on the department’s Internet Web site, internet website, and shall remain in effect until the manufacturer is listed on the department’s Internet Web site internet website or can demonstrate compliance as described in paragraph (2) of subdivision (c).
(c) (1) On July 1, 2012, or upon the date the first plan is approved, whichever date is earlier, the The department shall post on its Internet Web site internet website a list of manufacturers for which the department has approved a plan pursuant to subdivision (a) of Section 48704. The department shall update this posting no less than once every six months thereafter. On and after April 1, 2013, the months. The department shall post a notice on its Internet Web site internet website listing manufacturers that are in compliance with this chapter pursuant to subdivision (b) of Section 48705 and shall update this posting no less than once every six months.
(2) A manufacturer that is not listed on the department’s Internet Web site internet website pursuant to this section, but demonstrates to the satisfaction of the department that it is in compliance with this chapter before the next notice is required to be posted pursuant to this section, may request a certification letter from the department stating that the manufacturer is in compliance. The A manufacturer who receives that letter shall be deemed to be in compliance with this chapter.
(d) A wholesaler or a retailer that distributes or sells architectural paint covered paint products shall monitor the department’s Internet Web site internet website to determine if the sale of a manufacturer’s architectural paint covered paint product is in compliance with this chapter.

SEC. 14.

 Section 48703 of the Public Resources Code is amended to read:

48703.
 (a) (1) On or before April 1, 2012, a A manufacturer or designated stewardship organization shall submit an architectural paint stewardship plan to the department.
(2) (A) On or before July 1, 2026, a manufacturer or stewardship organization shall submit an architectural paint a covered paint product stewardship plan or amendment to an approved architectural paint stewardship plan to include all covered paint products to the department.
(B) Failure to have a plan or plan amendment approved on or before January 1, 2027, as specified in paragraph (3) of subdivision (a) of Section 48701, Section 48701.5, shall result in a finding of noncompliance until a plan or plan amendment is approved.
(b) (1) The plan shall demonstrate sufficient funding for the architectural paint covered paint product stewardship program as described in the plan, including a funding mechanism for securing and disbursing funds to cover administrative, operational, and capital costs, including the assessment of charges on architectural paint covered paint products sold by manufacturers in this state.
(2) The funding mechanism shall provide for an architectural paint a covered paint product stewardship assessment for each container of architectural paint a covered paint product sold by manufacturers in this state and the assessment shall be remitted to the stewardship organization, if applicable.
(3) The architectural paint covered paint product stewardship assessment shall be added to the cost of all architectural paint covered paint products sold to California retailers and distributors, and each California retailer or distributor shall add the assessment to the purchase price of all architectural paint covered paint products sold in the state.
(4) The architectural paint covered paint product stewardship assessment shall be approved by the department as part of the plan, and shall be sufficient to recover, but not exceed, the cost of the architectural paint covered paint product stewardship program. The plan shall require that any surplus funds be put back into the program to reduce the costs of the program, including the assessment amount.
(c) The plan shall address the coordination of the architectural paint covered paint product stewardship program with existing local household hazardous waste collection programs as much as this is reasonably feasible and is mutually agreeable between those programs.
(d) The plan shall include goals established by the manufacturer or stewardship organization to reduce the generation of postconsumer paint, to promote the reuse of postconsumer paint, and for the proper end-of-life management of postconsumer paint, including recovery and recycling of postconsumer paint, as practical, based on current household hazardous waste program information. The goals may be revised by the manufacturer or stewardship organization based on the information collected for the annual report.
(e) The plan shall include consumer, contractor, and retailer education and outreach efforts to promote the source reduction and recycling of architectural paint. covered paint products. This information may include, but is not limited to, developing, and updating as necessary, educational and other outreach materials aimed at retailers of architectural paint. covered paint products. These materials shall be made available to the retailers. These materials may include, but are not limited to, one or more of the following:
(1) Signage that is prominently displayed and easily visible to the consumer.
(2) Written materials and templates of materials for reproduction by retailers to be provided to the consumer at the time of purchase or delivery, or both. Written materials shall include information on the prohibition of improper disposal of architectural paint. covered paint products.
(3) Advertising or other promotional materials, or both, that include references to architectural paint covered paint product recycling opportunities.
(f) Any retailer may participate, on a voluntary basis, as a paint covered paint product collection point pursuant to the covered paint product stewardship program, if the retailer’s paint covered paint product collection location meets all of the conditions in Sections 25217.2 and 25217.2.1 of the Health and Safety Code for oil-based or recyclable latex paints, or Section 25201.16 of the Health and Safety Code for aerosol paint containers.

SEC. 15.

 Section 48704 of the Public Resources Code is amended to read:

48704.
 (a) The department shall review the plan within 90 days of receipt, and make a determination whether or not to approve the plan. The department shall approve the plan if it provides for the establishment of a covered paint product stewardship program that meets the requirements of Section 48703.
(b) (1) The approved plan shall be a public record, except that financial, production, or sales data reported to the department by a manufacturer or the stewardship organization is not a public record under the California Public Records Act, as described in Division Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code Code) and shall not be open to public inspection.
(2) Notwithstanding paragraph (1), the department may release a summary form of financial, production, or sales data if it does not disclose financial, production, or sales data of a manufacturer or stewardship organization.
(c) On or before July 1, 2012, or three months after a plan is approved pursuant to subdivision (a), whichever date is later, the manufacturer or stewardship organization shall implement the architectural covered paint product stewardship program described in the approved plan.
(d) The department shall enforce this chapter.
(e) (1) The stewardship organization shall pay the department a quarterly administrative fee pursuant to paragraph (2).
(2) The department shall impose fees in an amount that is sufficient to cover the full administrative and enforcement costs of the requirements of this chapter, including any program development costs or regulatory costs incurred by the department prior to before the submittal of the stewardship plans. The stewardship organization shall pay the fee on or before the last day of the month following the end of each quarter. Fee revenues collected under this section shall only be used to administer and enforce this chapter.
(f) (1) A civil penalty may be administratively imposed by the department on any person who violates this chapter in an amount of up to one thousand dollars ($1,000) per violation per day.
(2) A person who intentionally, knowingly, or negligently violates this chapter may be assessed a civil penalty by the department of up to ten thousand dollars ($10,000) per violation per day.

SEC. 16.

 Section 48704.1 of the Public Resources Code is amended to read:

48704.1.
 (a) The Architectural Paint Stewardship Account and the shall be renamed the Paint Product Stewardship Account. The Architectural Paint Stewardship Penalty Subaccount are hereby established shall be renamed the Paint Product Stewardship Penalty Subaccount. The account and subaccount shall remain in the Integrated Waste Management Fund created pursuant to Section 40135.
(b) All fees collected by the department pursuant to this chapter shall be deposited in into the Architectural Paint Product Stewardship Account and may be expended by the department, upon appropriation by the Legislature, to cover the department’s costs to implement this chapter.
(c) All civil penalties collected pursuant to this chapter shall be deposited in into the Architectural Paint Product Stewardship Penalty Subaccount and may be expended by the department, upon appropriation by the Legislature, to cover the department’s costs to implement this chapter.

SEC. 17.

 Section 48705 of the Public Resources Code is amended to read:

48705.
 (a) On or before May 15 of each year, a manufacturer of architectural paint a covered paint product sold in this state shall, individually or through a representative stewardship organization, submit a report to the department describing its architectural paint covered paint product recovery efforts. At a minimum, the report shall include all of the following:
(1) The total volume of architectural paint sold, excluding aerosol coating products, in this state during the preceding calendar year.
(2) The total volume of postconsumer architectural paint recovered, excluding aerosol coating products, in this state during the preceding calendar year.
(3) A description of methods used to collect, transport, and process postconsumer architectural paint in this state, excluding aerosol coating products.
(4) Commencing with the 2028 report, the total volume of the nonindustrial coatings, the coating-related products, and the aerosol coating products sold in this state during the preceding calendar year.
(5) Commencing with the 2028 report, the total volume of the nonindustrial coatings, the coating-related products, and the aerosol coating products recovered, including the amount, in this state during the preceding calendar year.
(6) Commencing with the 2028 report, a description of methods used to collect, transport, and process aerosol coating products covered paint products in this state.
(7) The total cost of implementing the architectural covered paint product stewardship program.
(8) An evaluation of how the architectural covered paint product stewardship program’s funding mechanism operated.
(9) An independent financial audit funded from the covered paint product stewardship assessment.
(10) Examples of educational materials that were provided to consumers the first year and any changes to those materials in subsequent years.
(b) The department shall review the annual report required pursuant to this section and within 90 days of receipt shall adopt a finding of compliance or noncompliance with this chapter.

SEC. 18.

 Section 48706 of the Public Resources Code is amended to read:

48706.
 (a) Except as provided in subdivision (c), an action solely to increase the recycling of architectural paint covered paint products by a producer, stewardship organization, or retailer that affects the types or quantities being recycled, or the cost and structure of any return program, is not a violation of the statutes specified in subdivision (b).
(b) The following statutes are not violated by an action specified in subdivision (a):
(1) The Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code).
(2) The Unfair Practices Act (Chapter 4 (commencing with Section 17000) of Part 2 of Division 7 of the Business and Professions Code).
(c) Subdivision (a) shall does not apply to any agreement establishing or affecting the price of paint, except for the architectural paint covered paint product stewardship assessment, or the output or production of paint, or any agreement restricting the geographic area or customers to which paint will be sold.

SEC. 3.SEC. 19.

 The Legislature finds and declares that Section 2 of this act, which adds Section 47740 to the Public Resources Code, imposes a limitation on the public’s 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.SEC. 20.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.
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