SB955 - Beverage containers: supermarkets: reverse vending machines.

Amended IN Assembly August 13, 2026 Amended IN Senate May 18, 2026 Amended IN Senate April 09, 2026 Amended IN Senate March 18, 2026 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Senate Bill No. 955 Introduced by Senator Blakespear (Coauthor: Senator Valladares) February 02, 2026 An act to amend Sections 14526.5, 14578.5, and 14585 of, and to add Section 14571.6 to, the Public Resources Code, relating to recycling, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST SB 955, as amended, Blakespear. Beverage containers: supermarkets: reverse vending machines. The (1) The California Beverage Container Recycling and Litter Reduction Act requires the Department of Resources Recycling and Recovery to designate convenience zones annually and to ensure that at least one certified recycling center that meets specific requirements is located within each convenience zone. The act defines a “convenience zone” as the area within a one-mile radius of a supermarket, and defines “supermarket” as a full-line, self-service retail store with gross annual sales of $2,000,000 or more, and that sells specified items and some perishable items. The act establishes the California Beverage Container Recycling Fund, and continuously appropriates moneys in the fund to the department for specified purposes, including the amount necessary to pay processing payments to recycling centers and to pay handling fees to certain types of recyclers to provide an incentive for the redemption of empty beverage containers in convenience zones. supermarket, as defined. Under the act, a reverse vending machine, as defined, may be certified as a recycling center, as prescribed. The act establishes the California Beverage Container Recycling Fund, and continuously appropriates moneys in the fund to the department for specified purposes, including the amount necessary to pay processing payments to recycling centers and to pay handling fees to certain types of recyclers to provide an incentive for the redemption of empty beverage containers in convenience zones. The act prohibits processing payments, handling fees, and administrative fees for dealer cooperatives if a certified recycling center operates in a convenience zone where a dealer participating in the dealer cooperative is located. A A violation of the act is an infraction. a crime. This bill would specify that a reverse vending machine certified to operate as a recycling center does not make an unserved convenience zone served, that a dealer cooperative or a mobile unit is not precluded from operating and receiving program payments in the same convenience zone as a reverse vending machine, and that an existing certified recycling center is not ineligible for handling fees if a reverse vending machine is located in the same convenience zone. (2) The act defines a “supermarket” as a full-line, self-service retail store with gross annual sales of $2,000,000 or more that sells specified items and some perishable items. This bill, for the purpose of defining a “supermarket,” bill would increase revise that definition by increasing the minimum gross annual sales to $5,000,000, revise $6,000,000, revising the description of the required items for sale, and require causing recycling centers that are supermarkets eligible to receive handling fees under existing law to continue to be eligible to receive handling fees, and requiring the department to consult the most recent annual update to the Progressive Grocer Marketing Guidebook and other relevant updates to the guidebook to determine which dealers are supermarkets, as specified. The bill would specify that a reverse vending machine certified to operate as a recycling center does not make an unserved convenience zone served. The bill would specify that a dealer cooperative or a mobile unit is not precluded from operating and receiving program payments in the same convenience zone as a reverse vending machine. The bill would specify that an existing certified recycling center is not ineligible for handling fees if a reverse vending machine is located in the same convenience zone. (3) The act requires, until June 30, 2027, the handling fee to be determined using a methodology established by the department through emergency regulations, and requires those regulations to remain in effect through that date, as specified. This bill would extend the application of those regulations through June 30, 2032. The (4) This bill would make an appropriation by expanding the entities that would be eligible at any given time for program payments payments, and by changing the calculation of handling fees, paid by the department from the continuously appropriated fund. By (5) By adding new requirements to the act, this bill would expand the scope of a crime, crimes, thereby imposing a state-mandated local program. 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. This bill would declare that it is to take effect immediately as an urgency statute. Digest Key Vote: 2/3 Appropriation: YES Fiscal Committee: YES Local Program: YES Bill Text The people of the State of California do enact as follows: SECTION 1. Section 14526.5 of the Public Resources Code is amended to read: 14526.5. (a) “Supermarket” means a full-line, self-service retail store with gross annual sales of five million dollars ($5,000,000), six million dollars ($6,000,000), or more, and which sells a line of dry groceries, canned goods, alcoholic or nonalcoholic beverages, nonfood items, or some perishable items, regardless of whether the retail store operates a bakery or a deli. For purposes of determining which dealers are “supermarkets,” the department shall consult the most recent annual update to the Progressive Grocer Marketing Guidebook and any other relevant update developed in conjunction with that guidebook. (b) Notwithstanding the changes to this section made by the act adding this subdivision, a recycling center that was eligible to receive handling fees immediately before the effective date of that act shall continue to be eligible to receive handling fees on and after that date. SEC. 2. Section 14571.6 is added to the Public Resources Code, to read: 14571.6. (a) Notwithstanding any other law or regulation, all of the following apply if a reverse vending machine is certified to operate as a recycling center: (1) The reverse vending machine shall not make an unserved convenience zone served, as described in subdivision (a) of Section 14571, regardless of the number of hours it operates. The reverse vending machine shall still be required to operate the minimum hours specified in Section 14571. (2) A reverse vending machine located in a convenience zone shall not preclude either of the following from operating and receiving program payments in the same convenience zone: (A) A dealer cooperative under Chapter 6.5 (commencing with Section 14578). (B) A mobile unit as defined in Chapter 5 (commencing with Section 2000) of Division 2 of Title 14 of the California Code of Regulations. (3) The reverse vending machine located in a convenience zone shall not make an existing recycling center certified in that convenience zone ineligible for handling fees pursuant to subdivision (c) of Section 14585. (b) Except as provided in subdivision (a), a reverse vending machine that is certified as a recycling center remains subject to all laws and regulations applicable to recycling centers. SEC. 3. Section 14578.5 of the Public Resources Code is amended to read: 14578.5. (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. (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) Except as provided in subparagraph (A) of paragraph (2) of subdivision (a) of Section 14571.6, 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. SEC. 4. Section 14585 of the Public Resources Code is amended to read: 14585. (a) The department shall adopt guidelines and methods for paying handling fees to supermarket sites, nonprofit convenience zone recyclers, or rural region recyclers to provide an incentive for the redemption of empty beverage containers in convenience zones. The guidelines shall include, but not be limited to, all of the following: (1) Handling fees shall be paid on a monthly basis, in the form and manner adopted by the department. The department shall require that claims for the handling fee be filed with the department not later than the first day of the second month following the month for which the handling fee is claimed as a condition of receiving any handling fee. (2) The department shall determine the number of eligible containers per site for which a handling fee will be paid in the following manner: (A) Each eligible site’s combined monthly volume of glass and plastic beverage containers shall be divided by the site’s total monthly volume of all empty beverage container types. (B) If the quotient determined pursuant to subparagraph (A) is equal to, or more than, 10 percent, the total monthly volume of the site shall be the maximum volume that is eligible for a handling fee for that month. (C) If the quotient determined pursuant to subparagraph (A) is less than 10 percent, the department shall divide the volume of glass and plastic beverage containers by 10 percent. That quotient shall be the maximum volume that is eligible for a handling fee for that month. (3) (A) On and after the effective date of the act amending this section during the 2023–24 Regular Session, and until June 30, 2026, the department shall pay a handling fee per eligible container in the amount determined pursuant to subdivisions (f) and (g). (B) On and after July 1, 2026, the department shall pay a handling fee per eligible container in the amount determined pursuant to subdivision (f). (4) If the eligible volume in any given month would result in handling fee payments that exceed the allocation of funds for that month, as provided in subdivision (b), sites with higher eligible monthly volumes shall receive handling fees for their entire eligible monthly volume before sites with lower eligible monthly volumes receive any handling fees. (5) (A) If a dealer where a supermarket site, nonprofit convenience zone recycler, or rural region recycler is located ceases operation for remodeling or for a change of ownership, the operator of that supermarket site, nonprofit convenience zone recycler, or rural region recycler shall be eligible to apply for handling fees for that site for a period of three months following the date of the closure of the dealer. (B) Every supermarket site operator, nonprofit convenience zone recycler, or rural region recycler shall promptly notify the department of the closure of the dealer where the supermarket site, nonprofit convenience zone recycler, or rural region recycler is located. (C) Notwithstanding subparagraph (A), any operator who fails to provide notification to the department pursuant to subparagraph (B) shall not be eligible to apply for handling fees. (b) The department may allocate the amount authorized for expenditure for the payment of handling fees pursuant to paragraph (1) of subdivision (a) of Section 14581 on a monthly basis and may carry over any unexpended monthly allocation to a subsequent month or months. However, unexpended monthly allocations shall not be carried over to a subsequent fiscal year for the purpose of paying handling fees but may be carried over for any other purpose pursuant to Section 14581. (c) Except as provided in Section 14571.6, all of the following apply to the paymen [Text truncated for display. Full text available on Congress.gov.]