1. (a) A PRO or Independent Producer shall have annual compliance audits of responsible end markets conducted and completed to ensure that each end market it uses satisfies the requirements to be a responsible end market as specified in subdivision (a) of section 18980.4. All compliance audits shall be conducted by an independent third-party.
2. (b) A PRO or Independent Producer shall include the findings of any compliance audits in the annual report pursuant to subdivision (c) of section 18980.9.1. The Department shall have full access to any compliance audit reports upon request.

3. (c) A PRO or Independent Producer shall annually verify that each end market it uses satisfies the requirements to be a responsible end market as specified in subdivision (a) of section 18980.4. Each verification shall be documented in the annual report pursuant to subdivision (c) of section 18980.9.1 and shall include, but not necessarily be limited to, the following:

   1. (1) Information that demonstrates a responsible end market met or exceeded its average recycling yield threshold, including a detailed explanation of how the entity measured and calculated the amount of material that was accepted and the amount of covered material that was successfully recycled by the responsible end market.
   2. (2) All information and evidence related to any failure of an end market to satisfy the requirements to be a responsible end market as specified in subdivision (a) of section 18980.4.
   3. (3) Descriptions of any corrective actions that were taken.
   4. (4) Descriptions of any instances where a PRO or Independent Producer prohibited sending materials to an end market due to that entity's failure to satisfy the requirements as specified in subdivision (a) of section 18980.4.
   5. (5) Records of complaints made against the end market, including records maintained by the end market as described in subparagraph (B) of paragraph (2) of subdivision (a) of section 18980.4 and records maintained by a PRO or Independent Producer pursuant to paragraph (7) of subdivision (b) of section 18980.6.8 and paragraph (7) of subdivision (b) of section 18980.7.7.
4. (d) The Department may require a PRO or Independent Producer to provide any records necessary to verify responsible end markets. The records shall be provided without redactions. As described in section 18980.14, a PRO or Independent Producer may specify what records it claims are wholly or partially confidential or otherwise exempt from public disclosure.
5. (e) If the Department determines that an end market identified by a PRO or Independent Producer no longer meets the standards specified in section 18980.4, the end market is no longer a responsible end market and any covered material sent to that end market thereafter shall not be considered recycled for purposes of compliance with the Act.

Note: Authority cited: Sections 40401, 40502, 42041 and 42060, Public Resources Code. Reference: Sections 42041, 42051, 42051.1, 42051.3 and 42053, 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).