Cal. Public Resources Code - PRC 5. — ARTICLE 5. Financial Provisions [42034. - 42034.4.] | Public Resources Code - PRC — California

Cal. Public Resources Code - PRC § 42034. Section 42034.

In order to further the objective that covered entities establish and implement stewardship programs that comply with the requirements of this chapter, each covered entity, either individually or through a stewardship organization, shall pay all administrative and operational costs associated with establishing and implementing the stewardship program in which it participates, including the cost of collecting, transporting, and disposing of covered products.

Cal. Public Resources Code - PRC § 42034.2. Section 42034.2.

(a) (1) On or before the end of the 2022–23 fiscal year, and on March 1 and September 1 of each year thereafter, a program operator shall pay to the department an administrative fee. The department shall set the fee at an amount that, when paid by every covered entity, is adequate to cover the department’s and any other state agency’s projected full costs of administering and enforcing this chapter, including any incurred costs that have not been reimbursed. Before March 1 and September 1 of each year, the department shall compare the total amount of fees collected for the operative billing cycle to the total actual and reasonable costs of administering and enforcing this chapter over the same period so that the total amount of fees collected is adequate and does not exceed the state’s full actual and reasonable regulatory costs to implement and enforce this chapter. These costs may include the actual and reasonable costs associated with regulatory activities pursuant to this chapter before submission of stewardship plans pursuant to Section 42032. (2) For a stewardship organization, the administrative fee paid pursuant to paragraph (1) shall be funded by the covered entities that make up the stewardship organization. This administrative fee shall be in addition to the charge paid pursuant to Section 42034. A stewardship organization may require its participating covered entities to pay the administrative fee and the charge paid pursuant to Section 42034 at the same time. (b) The department shall deposit administrative fees paid by a program operator pursuant to subdivision (a) into the Pharmaceutical and Sharps Stewardship Fund, which is hereby established. Upon appropriation by the Legislature, moneys in the fund may be expended by the department, the state board, and any other agency that assists in the regulatory activities of administering and enforcing this chapter. Upon appropriation by the Legislature, moneys in the fund may be used for those regulatory activities and to reimburse any outstanding loans made from other funds used to finance the startup costs of the department’s activities pursuant to this chapter. Moneys in the fund shall not be expended for any purpose not enumerated in this chapter.

Cal. Public Resources Code - PRC § 42034.4. Section 42034.4.

(a) (1) A stewardship organization may conduct an audit of covered entities that are required to remit a charge or administrative fee to the stewardship organization pursuant to Sections 42034 and 42034.2 to verify that the administrative fees and charges paid are proper and accurate. In addition, a stewardship organization may conduct an audit of authorized collectors to verify the charges submitted are proper and accurate. (2) The purpose of the audits described in paragraph (1) is to ensure parties required by this chapter to pay or collect an administrative fee or charge are paying or collecting the proper amount to implement the program. (b) If a stewardship organization conducts an audit pursuant to subdivision (a), it shall do all of the following: (1) Conduct the audit in accordance with generally accepted auditing practices. (2) Limit the scope of the audit of covered entities to confirming whether a charge or administrative fee has been properly paid by the covered entities. (3) Hire an independent third-party auditor to conduct the audit. (4) Provide a copy of the audit to the department.