Beverage containers: wine and distilled spirits: processing fees.

Subdivision (c) changed the shortfall funding mechanism. The old version authorized the department to transfer excess redemption payments collected from beverage distributors on bag-in-box containers since 2024 to cover processing payment shortfalls. The enrolled version replaces this with a simpler authorization for the department to expend funds from the bag-in-box processing fee account to pay processing payments in full, consistent with Section 14581 and subject to availability of funds.

The bill transitioned from Amended Assembly to Enrolled status. Header now reflects passage by the Senate (August 27, 2026) and Assembly (August 25, 2026), includes signature blocks for the Secretary of the Senate, Chief Clerk of the Assembly, Private Secretary of the Governor, and a Governor approval line. Line numbers were removed from the statutory text as is standard for enrolled bills.

The legislative counsel's digest removed the 'Vote: 2/3' and 'Fiscal committee: yes. State-mandated local program: no.' notations, retaining only 'Appropriation: yes.' This is a formatting change consistent with the enrolled bill format.

The bill no longer amends Sections 14505 and 14575 of the Public Resources Code or adds Section 14503.5.3. It now only adds and repeals Section 14575.2, making it a much narrower bill focused solely on bag in box processing fees.

The amendment to Section 14505 that would have explicitly excluded the rigid bag in box outer box from the 'beverage container' definition was removed entirely.

The standalone definition of 'bag in box' in new Section 14503.5.3 was removed. The definition is now contained within subdivision (e) of Section 14575.2 itself.

The provision requiring that, commencing January 1, 2027, the processing fee for bag in box containers be calculated based on the weight of the interior flexible bag and its valve was removed.

A new mechanism was added in Section 14575.2(c): if funds are available in the bag in box processing fee account, the department must expend those funds to pay the processing payment in full, consistent with Section 14581 and subject to availability of funds. This supplements the existing authority to transfer excess redemption payments.

The appropriation determination changed from 'no' to 'yes,' reflecting that the bill now makes an appropriation by expanding purposes for which a continuously appropriated fund may be expended.

New Section 14575.2 caps the processing fee for bag in box beverage containers at no more than $0.12 per container sold or offered for sale, replacing the previous open-ended legislative intent language that only said the fee should not impose an economic burden on manufacturers.

The department may provide a credit on 2027 processing fees to beverage producers who paid the 2026 processing fee, equal to the difference between the initial 2026 fee and the new capped fee, effectively refunding overpayments.

If processing payment obligations for bag in box containers exceed available processing fee revenue, the department is authorized to transfer excess redemption payments collected from distributors since 2024 to cover the shortfall.

The new Section 14575.2 sunsets and is repealed on January 1, 2031, making the fee cap and related provisions temporary.

The bill now also repeals Section 14575.2 (the prior version of itself) and makes an appropriation by expanding the purposes for which a continuously appropriated fund may be expended, changing the vote requirement from majority to two-thirds and triggering fiscal committee review.

Removed the legislative intent provision in Section 14575(k) that directed the department to set bag-in-box processing fees at a level that does not impose an economic burden on manufacturers while generating sufficient funds for recyclers. This vague standard is replaced by the specific $0.12 cap.

New Section 14503.5.3 defines 'bag in box' as a container for wine, distilled spirits, or wine and distilled spirit cooler that has both an interior flexible bag with a valve and a rigid box made primarily of cardboard or corrugated paper. It specifies the bag is a beverage container and the box is not.

Section 14505 (definition of 'beverage container') now explicitly excludes the rigid box for a bag in box, adding it alongside the existing exclusion for cups.

The temporary provision (subdivision k(1)-(3)) that authorized the department until January 1, 2031 to reduce the processing fee for wine and distilled spirits containers to a value greater than or equal to the HDPE plastic processing payment is entirely removed.

New subdivision (k) requires that commencing January 1, 2027, the processing fee for a bag in box be calculated based on the weight of the interior flexible bag and its valve only, excluding the rigid box from the weight calculation. This is a permanent provision with no sunset date.

The fiscal committee vote changed from 'yes' to 'no,' indicating the Assembly determined the bill does not involve a state-mandated local program funding issue (procedural, not substantive policy).

Removed the requirement that forecasted collections must exceed the needed amount by 'at least ___ percent' (a blank to be filled in) before the department could reduce the processing fee for wine and distilled spirits box, bladder, and pouch containers. Now the fee can be reduced whenever forecasted collections simply exceed the amount needed to pay processing payments, with no minimum excess percentage required.

Added a new legislative intent provision (new subdivision (k) after existing subdivision (k)) stating that when calculating the processing fee for wine and distilled spirits box, bladder, and pouch containers, the department must both (1) establish the fee at a level that does not impose an economic burden on beverage manufacturers of those containers, and (2) generate sufficient funds to make processing payments to recyclers consistent with the section.

Subdivision (k) was restructured: the introduced version contained a temporary mandatory rule (expiring Jan 1, 2026) that set the processing fee and payment for wine/spirits boxes, bladders, and pouches equal to HDPE plastic containers. The amended version removes that mandatory rule and replaces it with a discretionary provision allowing the department to reduce the fee to at least the HDPE level only if forecasted collections exceed needed payments by at least a specified (blank) percentage.

New paragraph (k)(2) adds an annual adjustment mechanism: once each year, if the regular processing fee for wine/spirits boxes, bladders, and pouches would be higher than the reduced fee established under paragraph (1), the department may increase the processing payment for those containers.

The inoperative date for subdivision (k) was changed from January 1, 2026 to January 1, 2031, extending the provision's life by five years.

Removed outdated reference dates throughout the bill: 'January 1, 2000' in subdivision (a), 'on and after January 1, 2004' in subdivision (c)(1), 'On and after January 1, 2010' in subdivision (c)(2), and 'On January 1, 2005, and annually thereafter' in subdivision (e)(1). These are replaced with simpler language like 'on or before January 1 of each year.'