42064. (a) (1) The surcharge imposed by this section shall be collected annually by the California Department of Tax and Fee Administration in accordance with the Fee Collection Procedures Law (Part 30 (commencing with Section 55001) of Division 2 of the Revenue and Taxation Code). For purposes of this chapter, the references in the Fee Collection Procedures Law to “fee” shall include the surcharge imposed by this section, and references to “feepayer” shall include a person required to pay the surcharge imposed by this section.
(2) Notwithstanding the appeal provisions in the Fee Collection Procedures Law, a determination by the department that a person is required to pay a surcharge, or a determination by the department regarding the amount of that surcharge, is subject to review under Section 42064.01 and is not subject to a petition for redetermination by the California Department of Tax and Fee Administration.
(3) Notwithstanding the refund provisions in the Fee Collection Procedures Law, the California Department of Tax and Fee Administration shall not accept any claim for refund that is based on the assertion that a determination by the department improperly or erroneously calculated the amount of a surcharge, or incorrectly determined that the person or entity is subject to the surcharge, unless that determination has been set aside by the department or a court reviewing the determination of the department.
(b) The annual surcharge shall be due and payable 30 days from the date of assessment by the California Department of Tax and Fee Administration. Notwithstanding Article 1.1 (commencing with Section 55050) of Chapter 3 of Part 30 of Division 2 of the Revenue and Taxation Code, the surcharge shall be remitted by electronic funds transfer to the California Department of Tax and Fee Administration.
(c) On or before March 1, 2027, and each March 1 thereafter, the department shall annually transmit to the California Department of Tax and Fee Administration the appropriate name and address of each person who is liable for the surcharge under this section and the amount of the surcharge to be assessed, and at the same time shall provide to the California Department of Tax and Fee Administration a contact number for the department to be printed on the bill to respond to questions about the surcharge.
(d) The California Plastic Pollution Mitigation Fund is hereby established in the State Treasury. The California Plastic Pollution Mitigation Fund shall consist of all surcharges, interest, penalties, and other amounts collected and paid to the California Department of Tax and Fee Administration pursuant to this section, less payments of refunds and reimbursements to the California Department of Tax and Fee Administration for expenses incurred in the administration and collection of the fees imposed by this section.
(e) (1) A PRO shall pay five hundred million dollars ($500,000,000) each year, as assessed by the California Department of Tax and Fee Administration. The department shall transmit the PRO name and address and annual surcharge amount of five hundred million dollars ($500,000,000) to the California Department of Tax and Fee Administration pursuant to subdivision (c).
(2) A PRO approved by the department pursuant to subdivision (a) of Section 42051 shall, commencing in the 2027 calendar year, remit the five hundred million dollars ($500,000,000) specified in paragraph (1) each year to the California Department of Tax and Fee Administration to be deposited into the California Plastic Pollution Mitigation Fund.
(3) (A) The PRO may collect up to one hundred fifty million dollars ($150,000,000) from plastic resin manufacturers who sell plastic covered material to producers who are participants of the PRO.
(B) The PRO may require its participants to provide to the PRO a list of plastic resin manufacturers who sell plastic for use in covered material to the participants.
(C) If the PRO does not collect all or any of the one hundred fifty million dollars ($150,000,000) from plastic resin manufacturers, the PRO is still responsible for the total remittance specified in paragraph (2).
(f) (1) The PRO shall establish and impose on its participants who produce plastic covered material subject to Section 42057 an environmental mitigation surcharge in the amount necessary to remit the moneys pursuant to subdivision (a) based on each producer’s market share of plastic covered material, accounting for both number of plastic components and weight.
(2) The surcharge imposed pursuant to paragraph (1) shall be paid annually by July 1, commencing in the 2027 calendar year.
(g) Moneys in the California Plastic Pollution Mitigation Fund shall not be expended for obligations imposed on any party by any law other than this section or to cover costs identified in a needs assessment.
(h) (1) For producers that are not participants of a PRO’s approved plan, the department shall determine the amount of the environmental mitigation surcharge the producer shall pay based on both the number and weight of plastic covered material the producer offers for sale, sells, distributes, or imports in or into the state.
(2) Commencing July 1, 2027, and every July 1 annually thereafter, a producer not in a PRO shall pay the amount of the surcharge determined by the department. The department shall transmit the producer name and address and surcharge amount to the California Department of Tax and Fee Administration pursuant to subdivision (c).
(i) In the 2030 calendar year, the department shall determine whether the surcharge collected pursuant to this section should be increased based on the evaluation conducted pursuant to subdivision (h) of Section 42057. If that evaluation finds a change in the overall number of plastic components or weight of plastic covered material in the state, the department shall adjust, through regulation, the amount of the surcharge a PRO collects in proportion to that change. A PRO shall conform the surcharge imposed on its participant producers to the adjusted amount of the surcharge established by the department.
(j) (1) Upon appropriation by the Legislature, 40 percent of the moneys in the California Plastic Pollution Mitigation Fund shall be expended by the Department of Fish and Wildlife, the Wildlife Conservation Board, the State Coastal Conservancy, the California Coastal Commission, the Ocean Protection Council, the Department of Parks and Recreation, the Natural Resources Agency, and the California Environmental Protection Agency to monitor and reduce the environmental impacts of plastics on terrestrial, aquatic, and marine life and human health, including to restore, recover, and protect the natural environment.
(2) At least 50 percent of the funds appropriated pursuant to paragraph (1) shall provide benefits to residents living in a disadvantaged or low-income community or rural area.
(3) Moneys appropriated pursuant to paragraph (1) may be used to support grants for tribes, nongovernmental organizations, community-based organizations, land trusts, and local jurisdictions.
(k) (1) Upon appropriation by the Legislature, 60 percent of the moneys in the California Plastic Pollution Mitigation Fund shall be expended by the Strategic Growth Council, the California Environmental Protection Agency, the Natural Resources Agency, and the Department of Justice to monitor and reduce the historical and current environmental justice and public health impacts of plastics, including to mitigate the historical and current impact of plastics on disadvantaged or low-income communities or rural areas.
(2) Of the moneys appropriated pursuant to paragraph (1), 75 percent shall directly and primarily benefit residents living in disadvantaged or low-income communities.
(3) Moneys appropriated pursuant to paragraph (1) may be used to support grants to local jurisdictions, tribes, nongovernmental organizations, and community-based organizations.
(l) Moneys appropriated from the California Plastic Pollution Mitigation Fund pursuant to subdivisions (j) and (k) shall be used to increase and enhance the activities described in subdivisions (j) and (k) and shall not replace or reduce allocation of any other funding for those purposes. Accordingly, General Fund or Greenhouse Gas Reduction Fund appropriations to the Department of Fish and Wildlife, the California Coastal Conservancy, the California Coastal Commission, the Wildlife Conservation Board, the Ocean Protection Council, the Department of Parks and Recreation, the Strategic Growth Council, the Department of Justice, the California Environmental Protection Agency, and the Natural Resources Agency shall not be reduced below the levels provided in the Budget Act of 2019 (Chapter 23 of Statutes of 2019).
(m) Each agency or department receiving funding under this section shall, notwithstanding Section 9795 of the Government Code, provide an annual report to the relevant budget committees of the Legislature on how the funding will be used, progress toward mitigation goals, and relevant details and outcomes from third parties who may be provided funding by the agency or department for mitigation purposes.
(n) This section shall remain in effect only until January 1, 2037, and as of that date is repealed.
(Added by Stats. 2022, Ch. 75, Sec. 2. (SB 54) Effective January 1, 2023. Repealed as of January 1, 2037, by its own provisions.)