1. (a) Nothing in this section shall be construed as limiting the Department's authority to enter into any agreement with any party, including a producer, local jurisdiction, or recycling service provider, to resolve violations identified in a notice of violation on any terms the parties mutually deem appropriate.
2. (b) When issuing a notice of violation pursuant to subdivision (a) of section 42081 of the Public Resources Code or in response to a written request submitted to the Department after issuance of a notice of violation, the Department shall determine whether to permit an entity to propose a corrective action plan pursuant to subdivision (b) of section 42081 of the Public Resources Code. In determining whether to allow submission of a proposal, the Department shall consider the practicality of a corrective action plan and whether a corrective action plan is, compared to immediate imposition of penalties, likely to more effectively promote the achievement of the requirements of section 42050 of the Public Resources Code, the policy goal established in section 41780.01 of the Public Resources Code as it relates to covered material, and the intent of the Act as provided in section 42040 of the Public Resources Code.

3. (c) In the notice of violation, the Department shall set forth specific elements that the proposal must contain, as the Department deems necessary for the corrective action plan to address the considerations identified in subdivision (a). Such elements may include: addressing specific matters related to compliance with the Act; sales and distribution data; consent to the imposition of certain penalties without an administrative hearing if the corrective action plan fails to result in compliance; disclosure of information related to noncompliance with the Act, including noncompliance not identified in the notice of violation; and identification of corrective action already taken or that will be implemented regardless of whether the Department approves the corrective action plan. The Department shall not review a proposed corrective action plan unless it contains the specified elements and satisfies all the requirements of this section.

   1. (1) A corrective action plan submission shall, at a minimum, satisfy the following requirements:

      1. (A) The requester shall provide the contact information described in paragraph (1) of subdivision (a) of section 18980.10.
      2. (B) The requester shall indicate which of the violations cited in the notice of violation the entity will correct through the corrective action plan.
      3. (C) The requester shall provide a description of the actions the entity will take to correct the violations and how the actions will facilitate resolution of the violations, including a proposed timeline, milestones, and a specific end date for the corrective action plan. This description must be sufficiently detailed for the Department to evaluate whether such corrective action is feasible and whether, if approved and complied with, it will result in full compliance with the Act.
      4. (D) The requester shall state whether the requester consents to the imposition of penalties without an administrative hearing, and if so, the amount of such penalties, for past violations or for violations that may persist despite approval of the corrective action plan and full compliance with it. Such violations include, at a minimum, violations that the corrective action plan does not address or that may require more than 24 months to fully correct.
   2. (2) The Department's granting of permission to submit a corrective action plan proposal, the submission of such a proposal, and the Department's consideration of it, including the denial of it with permission to submit a modified one, shall not excuse any violation or otherwise affect the Department's authority to take enforcement action against any alleged violations, including those addressed in the proposed corrective action plan, except as specifically provided in the Act and this chapter.
   3. (3) After submitting a corrective action plan, the entity shall be bound by the corrective action plan upon approval by the Department. The entity further acknowledges that the Department may, when approving the corrective action plan or at any other time, impose reasonable conditions for how the entity must demonstrate compliance with the corrective action plan. Such conditions may include, for example, document submittals and reporting related to the effectiveness of the corrective action plan. Such conditions shall be considered part of the corrective action plan.
   4. (4) If it approves a corrective action plan, the Department shall include a copy of the approved corrective action plan with written notification of approval. The copy included with the notice shall be the official governing document for the corrective action plan.

   5. (5) The Department shall approve the corrective action plan if, compared to immediate imposition of penalties, the plan is more certain to promote, and will be more effective at promoting the following:

      1. (A) Achievement of the requirements of section 42050 of the Public Resources Code.
      2. (B) The policy goal established in section 41780.01 of the Public Resources Code, as it relates to covered material.
      3. (C) The intent of the Act, as provided in section 42040 of the Public Resources Code.
   6. (6) The approval of a corrective action plan does not excuse violations other than to the extent the corrective action plan precludes assessment of penalties pursuant to subdivision (b) of section 42081 of the Public Resources Code for the violations covered by the corrective action plan.

4. (d) If, upon the corrective action plan's expiration, the corrective action plan has failed to resolve some or all of the violations identified in the notice described in subdivision (a), the entity may submit a written request for an extension pursuant to paragraph (2) of subdivision (b) of section 42081 of the Public Resources Code. Extensions shall be subject to the same conditions and limitations set forth in paragraphs (2) through (7) of subdivision (c) with respect to the initial submission and approval of the plan. Extension requests shall include, at a minimum:

   1. (1) A description of the efforts made to comply with the corrective action plan's requirements and the extent to which such efforts will be continued or modified to comply with the corrective action plan.
   2. (2) Explanation of extenuating circumstances, if any. At minimum, such explanation shall address whether the circumstances were beyond the control of the entity, whether they prevented compliance with the corrective action plan and the Act, and how they affect the extent to which penalties for the outstanding violations are appropriate.
   3. (3) Updates, if any, to the content included in the original proposal for the corrective action plan pursuant to paragraph (1) of subdivision (b).

5. (e) Subject to subdivision (f), accrual of penalties for the violations identified in a proposed corrective action plan shall be paused upon submission of the proposed corrective action plan to the Department and shall remain paused until either of the following, as applicable:

   1. (1) Department rejection of the proposed corrective action plan without allowing submission of a modified proposal.
   2. (2) Violation of an approved corrective action plan.

6. (f) Failing to comply with a corrective action plan is a violation of the Act subject to the penalty provisions of section 42081 of the Public Resources Code, and the Department may issue a notice of violation for any such violation, including during pendency of the corrective action plan.

   1. (1) A violation of the plan is subject to penalties regardless of whether the corrective action plan is terminated or necessarily will fail to resolve any underlying violation.

   2. (2) For each violation of the corrective action plan, the notice shall identify whether the violation concerns requirements for resolving specific underlying violations of the Act identified in the plan. Subject to paragraph (3) of subdivision (a) of section 42081 of the Public Resources Code, penalty accrual shall resume for those underlying violations, except as provided in subparagraphs (A) and (B).

      1. (A) Unless the violation of the corrective action plan is resolved within 30 days after issuance of the notice, the Department shall deem the corrective action plan terminated, and penalties shall begin accruing for the underlying violations upon such termination. The violation of the corrective action plan shall not be considered resolved if it diminished the likelihood that the corrective action plan will result in resolution of the underlying violations.
      2. (B) Termination and penalty accrual pursuant to subparagraph (A) shall be with respect only to the underlying violations identified in the notice for which the likelihood of resolution has been diminished. The corrective action plan shall remain in effect for purposes of the other underlying violations.

Note: Authority cited: Sections 40401, 40502, 42060 and 42081, Public Resources Code. Reference: Sections 42040, 42080 and 42081, 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).