(a) By January 1, 2024, the department may provide one or more model dealer cooperative redemption plans for dealer cooperatives to adopt to comply with paragraph (2) of subdivision (a) of Section 14578 and this section.

(b) (1) By January 1, 2024, the department shall adopt emergency regulations that provide access and convenience for consumers that are comparable to subdivision (a) of Section 14571. The regulations shall include the registration process for dealers, the application and registration process for the dealer cooperative, and the process for updating information after registration as needed, and other regulations necessary for the implementation and enforcement of this subdivision.

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(2) Upon the expiration of the emergency regulations no more than 180 days after adoption, the department shall adopt regulations pursuant to Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code to implement this section.

(c) A dealer cooperative shall do all of the following:

(1) Submit a redemption plan to the department to provide redemption in one or more unserved convenience zones. Redemption programs shall include sufficient redemption opportunities for consumers that have comparable consumer convenience to the requirements of Section 14571 and include, but are not limited to, pilot projects described in Section 14571.9.

(2) Assess fees on the dealers in the zone or zones covered by the redemption plan necessary to cover operational costs and implementation of the approved plan.

(3) (A) Redeem all material types and offer one or more redemption locations within the dealer cooperative zone.

(B) The dealer cooperative may contract to provide the redemption opportunities approved in the plan.

(4) Be operational and fully implement the approved redemption plan.

(5) Register as a dealer cooperative with the department.

(6) Provide reports as required by the department, which may include, but are not limited to, the amount of empty beverage containers, by material type and weight of container or material, redeemed in the past month and any other relevant information the department requests in the form and manner that the department may prescribe.

(d) (1) Dealer cooperatives may be eligible for reimbursement of California Redemption Value funds paid to consumers, processing payments, handling fees, and administrative fees unless a certified recycling center operates in a convenience zone in which a dealer participating in the dealer cooperative is located.

(2) In order to receive payment from a processor, dealer cooperative redemption identification shall be verified.

(3) The department may delay payments to a dealer cooperative for up to seven days until the verification of the received weight versus the actual redemption weight of beverage containers occurs.

(e) The department may revoke a dealer cooperative’s registration or the plan for failure to provide redemption for consumers.

(f) The department shall audit each cooperative at least once every 24 months to ensure that proper program payments are made to consumers and cooperative fees are being utilized for the operation of the approved redemption model.

(g) The department may assess civil penalties under Section 14591.1 for violations of this section.

(Added by Stats. 2022, Ch. 610, Sec. 31. (SB 1013) Effective January 1, 2023.)