Minimum Redemption Value - - CA Public Resources

Section § 14560

This law outlines the redemption payments that beverage distributors in California have to make. Generally, distributors pay four cents for each beverage container sold. Larger containers (24 ounces or more) are counted as two, doubling the payment. If the state's recycling rate falls below 75%, payment increases to five cents for smaller containers and ten cents for larger ones.

Tasting rooms selling beverages exclusively on-site are usually exempt. Distributors of out-of-state beverages sold in California directly to consumers must pay, and penalties apply if payments are missed. Special containers like boxes, bladders, or pouches of wine or spirits will have a 25-cent redemption starting January 2024. This doesn't apply to refillable containers, and the law takes effect on January 1, 2024.

(a)

(1) Except as provided in paragraph (3), a beverage distributor shall pay the department, for deposit into the fund, a redemption payment of four cents ($0.04) for a beverage container sold or offered for sale in the state by the distributor.

(2) A beverage container with a capacity of 24 fluid ounces or more shall be considered as two beverage containers for purposes of redemption payments paid pursuant to paragraph (1).

(3)

(A) The amount of the redemption payment and refund value for a beverage container with a capacity of less than 24 fluid ounces sold or offered for sale in the state by a dealer shall equal five cents ($0.05), and the amount of redemption payment and refund value for a beverage container with a capacity of 24 fluid ounces or more shall be ten cents ($0.10), if the aggregate recycling rate reported pursuant to Section 14551 for all beverage containers subject to this division is less than 75 percent for the 12-month reporting period from January 1, 2006, to December 31, 2006, or for any calendar year thereafter.

(B) A distributor shall not be required to pay a redemption payment pursuant to this section for a beverage container used solely to pour wine, beer, or distilled spirits sold or offered to consumers for consumption on the premises by a wine, beer, or distilled spirits tasting room licensed pursuant to the Alcoholic Beverage Control Act (Division 9 (commencing with Section 23000) of the Business and Professions Code).

(4)

(A) Notwithstanding Section 14511, with respect to the payment of redemption payments for beverages manufactured outside the state and sold directly to consumers within the state with a direct shipper permit, the distributor shall be deemed to be the person or entity named on the direct shipper permit issued pursuant to Section 23661.3 of the Business and Professions Code, and shall be responsible for paying to the department the total redemption payment for all sales and transfers made directly to consumers in the state. If the department is unable to collect the redemption payment from the person or entity named on the direct shipper permit, the department shall give written notice by certified mail, return receipt requested, to that person or entity. The notice shall state that the person or entity shall not be permitted to offer that beverage brand for sale within the state. If the person or entity fails to remit the redemption payment within 30 days of issuance of the notice, the department shall notify the Department of Alcoholic Beverage Control that the permitholder has failed to comply, and the Department of Alcoholic Beverage Control shall prohibit the offering for sale of that beverage brand within the state.

(B) The department and the Department of Alcoholic Beverage Control shall enter into a contract, pursuant to Section 14536.5, concerning the implementation of this paragraph, which shall include a provision reimbursing the Department of Alcoholic Beverage Control for its costs incurred in implementing this paragraph. The department may expend the amount necessary for that reimbursement from the fund.

(b) Except as provided in paragraph (3) of subdivision (a), a beverage container sold or offered for sale in the state has a refund value of four cents ($0.04) if the beverage container has a capacity of less than 24 fluid ounces and eight cents ($0.08) if the beverage container has a capacity of 24 fluid ounces or more.

(c) Commencing January 1, 2024, and notwithstanding subdivisions (a) and (b), a beverage container that is a box, bladder, or pouch, or similar container, containing wine or distilled spirits, as described in paragraph (12) of subdivision (a) of Section 14504, sold or offered for sale in the state shall have a redemption payment and refund value of twenty-five cents ($0.25).

(d) This section does not apply to a refillable beverage container.

(e) This section shall become operative on January 1, 2024.

redemption payment beverage container refund value recycling rate out-of-state distributor tasting rooms exemption direct shipper permit certified mail notice Alcoholic Beverage Control beverage size differentiation recycling compliance non-refillable container wine and spirits packaging recycling goal fund deposit

(Repealed (in Sec. 6) and added by Stats. 2023, Ch. 868, Sec. 7. (SB 353) Effective October 13, 2023. Operative January 1, 2024, by its own provisions.)

Section § 14560.5

This law section outlines how beverage distributors and dealers must handle redemption payments, which are extra charges on certain beverage containers intended for recycling costs. Distributors must clearly show the redemption payment as a separate item on invoices and can't mix it with the wholesale price. Beer, wine, and spirits distributors have some flexibility in how they show these fees on invoices. The law also requires dealers to clearly display the redemption payment amount in advertising and on shelf labels, using terms like 'California Redemption Value' or 'CRV'. These rules apply mainly to larger stores and exclude those with smaller sales areas. Random checks are allowed to ensure compliance, but minor errors by drivers won't count as violations.

(a)

(1) Except as provided in paragraph (2), an invoice or other form of accounting of a transaction submitted by a beverage distributor of beverages to a dealer shall separately identify the amount of any redemption payment imposed on beverage containers pursuant to Section 14560 and the separate identification of the invoice or other form of accounting of the transaction shall not combine or include the gross wholesale price with the redemption payment but shall separately state the gross amount of the redemption payment for each type of container included in each delivery.

(2) An invoice or other form of accounting of a transaction submitted by a distributor of beer and malt beverages, wine and distilled spirit coolers, wine, wine from which alcohol has been removed, in whole or in part, whether or not sparkling or carbonated, or distilled spirits to a dealer may separately identify the portion of the gross wholesale price attributable to any redemption payment imposed on beverage containers pursuant to Section 14560 and the separate identification of the invoice or other form of accounting of the transaction may separately state the gross amount of the redemption payment for each type of container included in each delivery. The invoice or other form of accounting of this transaction may separately identify the portion of the gross wholesale price attributable to the redemption payment.

(3) Notwithstanding Section 14541, the department shall randomly inspect beverage distributor invoices or other forms of accounting to ensure compliance with this subdivision. However, an unintentional error in addition or subtraction on an invoice or other form of accounting by a route driver of a distributor shall not be deemed a violation of this subdivision.

(4) For purposes of this subdivision, the term “type of container” includes the amount of the redemption payment on containers under 24 ounces and on containers 24 ounces or more.

(b) To the extent technically and economically feasible, a dealer may separately identify the amount of any redemption payment on the customer cash register receipt provided to the consumer, by the dealer, that is applied to the purchase of a beverage container.

(c)

(1) A dealer shall separately identify the amount of any redemption payment imposed on a beverage container in all advertising of beverage products and on the shelf labels of the dealer’s establishment. The separate identification shall be accomplished by stating one of the following:

(A) The price of the beverage product plus a descriptive term, as described in paragraph (2).

(B) The price of the beverage product plus the amount of the applicable redemption payment and a descriptive term, as described in paragraph (2).

(C) The price of the beverage product plus the amount of the applicable redemption payment, a descriptive term, as described in paragraph (2), and the total of these two amounts.

(2) For purposes of paragraph (1), the redemption payment shall be identified by one of the following descriptive terms: “California Redemption Value,” “CA Redemption Value,” “CRV,” “California Cash Refund,” “CA Cash Refund,” or any other message specified in Section 14561.

(3) A dealer shall not include the redemption payment in the total price of a beverage container in any advertising or on the shelf of the dealer’s establishment.

(4) This subdivision applies only to a dealer at a dealer location with a sales and storage area totaling more than 4,000 square feet.

(5) The penalties specified in Sections 14591 and 14591.1 shall not apply to a person who violates this subdivision.

(6) For purposes of paragraph (1), the shelf labels for a beverage that is included within the scope of this division beginning on January 1, 2024, but that was not subject to this division before that date, are not required until January 15, 2024.

(d) With regard to the sale of beer and other malt beverages, wine and distilled spirit cooler beverages, wine, wine from which alcohol has been removed, in whole or in part, whether or not sparkling or carbonated, and distilled spirits, any amount of redemption payment imposed by this division is subject to Section 25509 of the Business and Professions Code.

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(Amended by Stats. 2023, Ch. 868, Sec. 8. (SB 353) Effective October 13, 2023.)

Section § 14561

This law requires beverage manufacturers to label all beverage containers sold in the state with a redemption message, such as 'CA Redemption Value' or 'CA Cash Refund.' Refillable containers are exempt but can have any appropriate refund message. Selling unlabeled containers is prohibited unless they are refillable. New labeling requirements start in 2024 for containers previously not covered, but some exceptions extend labeling exemptions until mid-2025. The state may also require machine-readable codes on containers. Wine and distilled spirit manufacturers do not need prior approval for labels but must self-certify compliance with provided criteria.

(a) A beverage manufacturer shall clearly indicate on all beverage containers sold or offered for sale by that beverage manufacturer in the state the message “CA Redemption Value,” “California Redemption Value,” “CA Cash Refund,” “California Cash Refund,” or “CA CRV,” by either printing or embossing the beverage container or by securely affixing a clear and prominent stamp, label, or other device to the beverage container.

(b) A refillable beverage container sold or offered for sale is exempt from this section. However, a beverage manufacturer or container manufacturer may place upon, or affix to, a refillable beverage container any message that the manufacturer determines to be appropriate relating to the refund value of the beverage container.

(c) A person shall not offer to sell, or sell, to a consumer, a beverage container subject to subdivision (a) that has not been labeled pursuant to this section, except for a refillable beverage container that is exempt from labeling pursuant to subdivision (b).

(d) The department may require that a beverage container intended for sale in the state be printed, embossed, stamped, labeled, or otherwise marked with a scan code, a quick response (QR) code, or a universal product code or similar machine-readable indicia.

(e) A beverage container labeled with the message specified in subdivision (a) shall have the minimum redemption payment established pursuant to Section 14560, which shall be paid by the distributor to the department pursuant to Section 14574.

(f)

(1) Notwithstanding any other requirement of this section, all of the following shall apply:

(A) A beverage container that is included within the scope of this division beginning on January 1, 2024, but that was not subject to this division before that date, shall be exempt from the labeling requirements of this section until July 1, 2025.

(B) A beverage container that is included within the scope of this division beginning on January 1, 2024, but that was not subject to this division before that date, and that was filled and labeled before January 1, 2024, shall be exempt from the labeling requirements of this section.

(C) A beverage container containing a beverage described in paragraph (7) or (9) of subdivision (a) of Section 14504 that is included within the scope of this division beginning on January 1, 2024, but that was not subject to this division before that date, and that was filled and labeled before July 1, 2024, shall be exempt from the labeling requirements of this section.

(2) A beverage container described in subparagraph (A), (B), or (C) of paragraph (1) shall be considered an “empty beverage container” for purposes of this division as of January 1, 2024.

(g) Notwithstanding any other requirement in statute or regulation, including, but not limited to, paragraph (1) of subdivision (a) of Section 2200 of Title 14 of the California Code of Regulations, wine and distilled spirit manufacturers licensed pursuant to the Alcoholic Beverage Control Act (Division 9 (commencing with Section 23000) of the Business and Professions Code) shall not be required to provide samples of proposed labels or beverage containers to the department for approval before the sale or transfer of beverage containers in the state. The department shall provide the relevant labeling criteria to those wine and distilled spirit manufacturers, which the manufacturers shall use to self-certify compliance with that criteria on their registration materials submitted to the department under this division. A manufacturer may request assistance from the department in determining compliance with the labeling criteria.

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(Amended by Stats. 2023, Ch. 868, Sec. 9. (SB 353) Effective October 13, 2023.)

Section § 14562

This law states that the fees collected on beverage containers in California are meant to encourage recycling and ensure raw materials for the beverage industry. These fees are considered regulatory fees, not taxes. Therefore, the money collected and used from these fees is not restricted by the usual constitutional limits placed on state tax revenues.

The Legislature hereby finds and declares that the minimum redemption payment established by this article is a regulatory fee collected for the purpose of assuring the return for recycling of a greater percentage of the beverage containers sold in this state, and is beneficial to the beverage industry by assuring the more reliable availability of raw materials. Accordingly, the payments of redemption payments to the department for deposit in the California Beverage Container Recycling Fund are not the “proceeds of taxes,” as that term is used in subdivision (c) of Section 8 of Article XIII B of the California Constitution, and the disbursement or encumbrance of money in the fund is not subject to the limitations imposed by that article.

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(Amended by Stats. 1989, Ch. 1339, Sec. 29. Effective October 2, 1989.)