AB1780 - Beverage containers: redemption payments: exemption.

Amended IN Senate July 02, 2026 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Assembly Bill No. 1780 Introduced by Assembly Member Michelle Rodriguez February 09, 2026 An act to add Section 14574.5 to the Public Resources Code, relating to beverage containers. LEGISLATIVE COUNSEL'S DIGEST AB 1780, as amended, Michelle Rodriguez. Beverage containers: redemption payments: exemption. The California Beverage Container Recycling and Litter Reduction Act, a violation of which is a crime, requires a distributor of beverage containers, as defined, to pay to the Department of Resources Recycling and Recovery a monthly redemption payment for every beverage container sold or transferred, as provided. The act requires the department to deposit those amounts into the California Beverage Container Recycling Fund. The act defines “beverage” to include, among other things, noncarbonated water, carbonated and noncarbonated fruit drinks, and vegetable juice, as specified. This bill would exempt a distributor from making redemption payments to the department for filled beverage containers containing the above-described beverages that the distributor donates to (1) an organization located in California that is exempt from federal income taxation, (2) a public school, or (3) a first responder, as specified. The bill would require the distributor to prepare and maintain records of the donations, as specified. By expanding the scope of a crime, the bill would impose a state-mandated local program. The bill would authorize the department to adopt emergency regulations to implement these provisions, and would provide that these emergency regulations are not to be repealed by the Office of Administrative Law and are to remain in effect until revised by the Director of Resources Recycling and Recovery. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill Text The people of the State of California do enact as follows: SECTION 1. Section 14574.5 is added to the Public Resources Code, to read: 14574.5. (a) (1) Notwithstanding any other law or regulation, a distributor is exempt from making redemption payments to the department for filled beverage containers containing water or juice, as described in paragraphs (4), (7), and (9) of subdivision (a) of Section 14504, that the distributor donates to an any of the following: (A) An organization that is located in California and exempt from federal income taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986. (B) A school belonging to the public school system, as defined in Section 6 of Article IX of the California Constitution. (C) A first responder, as defined in subdivision (a) of Section 8562 of the Government Code. (2) Donations, Sales, donations, samples, or giveaways, or any other transaction, of filled beverage containers by a distributor other than those enumerated in paragraph (1) are subject to the redemption payment and all other applicable payments under this division. (b) (1) A distributor shall prepare and maintain records of any donations of filled beverage containers that the distributor donates to an organization pursuant to subdivision (a). The records shall include all of the following: (A) A charitable donation receipt issued by the recipient organization. (B) The date of the donation. (C) The number, size, and material type of beverage containers donated. (D) The amount of redemption payments that would have been paid if not exempted. (E) The original bill of lading and similar third-party shipping document or receipt indicating the entity that received the shipment of beverage containers. (2) (A) The records shall be maintained for a period of not less than five years and shall be made available provided to the department upon request. (B) Failure to maintain or provide the records shall result in disqualification of the exemption in paragraph (1) of subdivision (a). (c) The department may adopt emergency regulations to implement this section. Emergency regulations, if adopted, shall be adopted in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, and for the purposes of that chapter, including Section 11349.6 of the Government Code, the adoption of these regulations shall be considered by the Office of Administrative Law as necessary for the immediate preservation of the public peace, health, safety, and general welfare. Emergency regulations adopted under this section shall be filed with, but not repealed by, the Office of Administrative Law and shall remain in effect until revised by the director. SEC. 2. 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.