1. (a) For purposes of paragraphs (1) and (2) of subdivision (w) of section 42041 of the Public Resources Code only, a person is in the state if the person is subject to the jurisdiction of California courts pursuant to section 410.10 of the Code of Civil Procedure with respect to the Act and any of the following is true:

   1. (1) Service of summons, excluding service in a manner requiring a court order, on the person may be completed in the state pursuant to sections 413.10 through 417.40 of the Code of Civil Procedure or section 2110 of the Corporations Code.
   2. (2) The person consents to being considered in the state, being served notices and accusations by any means chosen by the Department pursuant to section 18980.13.3 and being personally subject to the jurisdiction of California courts. To be considered in the state, such person must be registered as a producer pursuant to section 18980.10 and must, upon demand, confirm the foregoing consent in writing, such as by affidavit or written agreement, and through conduct consistent with such consent. Conduct consistent with such consent includes responding to an accusation, filing a pleading, or otherwise appearing in a legal proceeding in the state.
2. (b) One brand or trademark shall be designated as the one referred to in paragraphs (1) and (2) of subdivision (w) of section 42041 of the Public Resources Code, and the person deemed to be the producer of the covered material used by goods shall be identified according to subdivisions (c), (d), and (e), if possible.

3. (c) For covered material other than food service ware, the producer shall be determined in accordance with this subdivision.

   1. (1) Subject to subdivision (e), the designated brand or trademark shall be one used with goods when they are first sold or distributed along with covered material or used with such initial sale or distribution, regardless of where such use occurs. The person who manufactured the goods is the producer, provided that the person is in the state and either owns the designated brand or trademark or is licensed to manufacture the goods. To be the producer, the licensee must have the legal right to use the brand or trademark on the goods in connection with manufacturing the goods and be entitled to be the only person with such right in the state or in a subregion of the state.
   2. (2) If the person who manufactured the goods is not the producer pursuant to paragraph (1), and the owner of the designated brand or trademark is in the state, that owner is the producer.

   3. (3) If there is no producer pursuant to paragraphs (1) and (2), a licensee of the designated brand or trademark shall be identified as the producer, if possible, as follows:

      1. (A) The licensee must be in the state.
      2. (B) The licensee must have the legal right to use the brand or trademark or authorize others to do so, whether on the goods or with their sale, offer of sale, or distribution, and be entitled to be the only person with such right in the state or in a subregion of the state. Such a licensee is the producer of the covered material used by the goods sold, offered for sale, or distributed in the state pursuant to their authority over the brand or trademark.
      3. (C) Notwithstanding subparagraph (B), a person that otherwise would be the producer under this paragraph is not the producer if it acquired the right to use the brand or trademark under an agreement, such as a sublicense or franchise agreement, with another person in the state. That other person is the licensee for purposes of this paragraph and is the producer of the covered material used by the goods sold, offered for sale, or distributed pursuant to such an agreement.
   4. (4) This subdivision does not apply to covered material packaging added to a good by a person other than the owner or licensee of the brand or trademark or someone acting on behalf of the owner or licensee. The producer of such covered material shall be determined as described in subdivision (f).

4. (d) For food service ware, the producer shall be determined in accordance with this subdivision.

   1. (1) Subject to subdivision (e), the brand or trademark referred to in paragraphs (1) and (2) of subdivision (w) of section 42041 of the Public Resources Code shall be one used with the food service ware when they are first sold or distributed or used with such initial sale or distribution, regardless of where such use occurs. The person who manufactured the food service ware is the producer, provided that the person is in the state and either owns the designated brand or trademark or is licensed to manufacture the food service ware. To be the producer, the licensee must have the legal right to use the brand or trademark on the food service ware in connection with manufacturing the food service ware and be entitled to be the only person with such right in the state or in a subregion of the state.
   2. (2) If the person who manufactured the goods is not the producer pursuant to paragraph (1), and the owner of the designated brand or trademark is in the state, that owner is the producer.

   3. (3) If there is no producer pursuant to paragraph (1) or (2), a licensee of the designated brand or trademark shall be identified as the producer, if possible, as follows:

      1. (A) The licensee must be in the state.
      2. (B) The licensee must have the legal right to use the brand or trademark or authorize others to do so, whether on the food service ware or with its sale, offer of sale, or distribution, and be entitled to be the only person with such right in the state or in a subregion of the state. Such a licensee is the producer of the covered material used by the food service ware sold, offered for sale, or distributed in the state pursuant to their authority over the brand or trademark.
      3. (C) Notwithstanding subparagraph (B), a person that otherwise would be the producer under this paragraph is not the producer if it acquired the right to use the brand or trademark under an agreement, such as a sublicense or franchise agreement, with another person in the state. That other person is the licensee for purposes of this paragraph and is the producer of the covered material used by the food service ware sold, offered for sale, or distributed pursuant to such an agreement.

5. (e) If there are multiple brands or trademarks that may be designated for purposes of subdivisions (c) or (d), one of them shall be designated in accordance with this subdivision.

   1. (1) If the covered material is food service ware, the brand or trademark directly associated with (as described in subparagraph (E) of paragraph (17) of subdivision (a) of section 18980.1) food or food service shall be designated. Otherwise, the designated brand or trademark shall be the one owned or licensed by the manufacturer or licensee, provided that such person satisfies the requirements of paragraph (1) of subdivision (c) or paragraph (1) of subdivision (d) for being a producer of either food service ware or packaging.
   2. (2) If no brand or trademark can be designated pursuant to paragraph (1), the brand or trademark most prominently used with or on the goods or, if the covered material is food service ware, with or on the food service ware shall be designated.
   3. (3) If no brand or trademark can be designated pursuant to paragraphs (1) and (2), the brand or trademark most prominently used with the initial sale or distribution of the goods, or, if the covered material is food service ware, with or on the food service ware shall be designated.
   4. (4) For purposes of this subdivision, if any of the brands or trademarks are owned by the same person or used by the same licensee, the combination of them shall be considered a single brand or trademark.
   5. (5) Notwithstanding paragraphs (1) through (4), the owners of the brands or trademarks may agree among themselves to designate one of the brands or trademarks, provided that the owner or a licensee of that brand or trademark otherwise satisfies the criteria to be the producer under this subdivision.

6. (f) If no producer can be identified pursuant to subdivisions (c), (d), or (e), the producer of covered material used by a good shall be identified according to paragraph (3) of subdivision (w) of section 42041 of the Public Resources Code. What constitutes such covered material shall be evaluated as of the time a person sells, offers for sale, or distributes the good, and the person is the producer only with respect to covered material items for which there was not already a producer at such time. For example, for a branded good that is packaged using covered material and is sold or distributed in the state:

   1. (1) If the brand owner or licensee is in the state, it is the producer of all covered material items used by the good when the good is sold or distributed by the owner or a person acting on the behalf of the owner or licensee. It is the producer, for example, of the sales packaging or primary packaging described in paragraph (1) of subdivision (s) of section 42041 of the Public Resources Code, as well as any additional covered material items, such as transport or tertiary packaging, used by the good before it is received by any person who subsequently sells or distributes it. If a person subsequently sells or distributes the good using additional covered material packaging (e.g., transport or tertiary packaging), that person is the producer of the additional covered material items. That person is not the producer of the packaging items for which the brand owner was already the producer when the person received the product.
   2. (2) If there is no brand owner or licensee in the state, the person who first sells or distributes the good in the state is the producer of all covered material items, including any covered material items added by such person, used by the good at the time of such sale or distribution.
   3. (3) If a wholesaler or retailer in the state subsequently obtains the good and causes it to use additional items of covered material packaging, the wholesaler or retailer is the producer of such additional items, and the producer of the other covered material items used by the good is either the person identified according to subdivision (c) or (d), or, if there is no such person, the person identified in paragraph (2) of this subdivision.

Note: Authority cited: Sections 40401, 40502, 42041 and 42060, Public Resources Code. Reference: Sections 42040, 42041, 42051 and 42052, Public Resources Code.

History

1. New section filed 5-1-2026; operative 5-1-2026 pursuant to Government Code section 11343.4(b)(3) (Register 2026, No. 19).