Article 5 - Financial Provisions

California Public Resources Code — §§ 42984.13-42984.14

Sections (2)

Added by Stats. 2024, Ch. 864, Sec. 1. (SB 707) Effective January 1, 2025.

(a)Each PRO shall pay all administrative and operational costs associated with establishing and implementing the program in which it participates, including, but not limited to, the cost of collection, transportation, sorting, repairing, recycling, and the safe and proper management of covered products.
(b)A PRO shall establish a method for fully funding the PRO in a manner that distributes the program’s costs among participating producers that reflects sales volumes and the eco-modulated fee criteria included in the plan pursuant to Section 42984.10. The funding mechanism shall demonstrate adequate funding for all administrative and operational costs of the program, to be borne by participating producers, and shall distribute

participating producers’ costs in consideration of the cost of managing their specific covered products according to the approved plan.

(c)Within nine months of the effective date of the regulations, the department shall notify each PRO of its estimated regulatory costs as the criteria for those costs are defined in the regulations adopted pursuant to Section 42984.2, which includes full personnel costs, related to implementing and enforcing this chapter. This shall include the actual reasonable costs associated with regulation development pursuant to Section 42968.2 and other startup activities prior to plan submittal and approval.
(d)The PRO shall, on a schedule determined by the department, pay the department fees to cover the department’s incurred costs as described in subdivision (c). The fees shall not exceed the department’s actual and reasonable regulatory costs to

implement and enforce this chapter.

(e)(1) The department shall deposit all moneys received from a PRO pursuant to this section into the Textile Stewardship Recovery Fund, which is hereby established in the State Treasury.
(2)Upon appropriation by the Legislature, moneys in the Textile Stewardship Recovery Fund shall be expended by the department to implement and enforce this chapter, as well as to reimburse any outstanding loans made from other funds used to finance regulation, development, and startup costs of the department’s activities pursuant to this chapter.
(3)The money in the Textile Stewardship Recovery Fund shall not be expended for any other purpose.

Added by Stats. 2024, Ch. 864, Sec. 1. (SB 707) Effective January 1, 2025.

(a)Upon approval of the PRO’s plan, the PRO shall charge each participant producer annual fees that are eco-modulated as described in the plan. The intent of the eco-modulated fee is to incentivize design choices that facilitate the achievement of goals as outlined in the plan, including reuse, repair, and recycling through reduced fees, while using malus fees to disincentivize practices and materials incongruent with the plan. The PRO shall consider existing producer collection, repair, reuse, and recycling programs in developing the eco-modulated fee structure.
(b)The PRO shall account for the costs to ensure each covered product and covered product category meet the requirements of the chapter, including minimization of environmental

and public health impacts along the entire supply chain of covered products or covered product category.