1. (a) In notifying the Department of information required by subdivision (d) of section 42051 of the Public Resources Code, a PRO shall include the following information, as applicable:

   1. (1) For an instance of producer non-compliance, including producers that are non-compliant because they are the producer of covered material within a non-compliant covered material category, delineated by covered material category:

      1. (A) The name of the producer.
      2. (B) Name, description, and other information sufficient to uniquely identify each particular product using the involved covered material. Such identification may be achieved, for example, with respect to unique physical characteristics, such as the product's form, materials, and dimensions, or identifying information such as a unique stock keeping unit (SKU) or global trade item number, such as a universal product code (UPC).
      3. (C) The effects of PRO-identified producer non-compliance on the PRO's implementation and ability to implement this chapter, including how the PRO's approved plan is affected.
      4. (D) What actions the PRO has taken or will take to ensure compliance with this chapter.

   2. (2) For a producer that no longer participates in the PRO's plan, including producers that are non-compliant because they are the producer of covered material within a non-compliant covered material category, delineated by covered material category:

      1. (A) Information specified in subparagraphs (A) and (B) of paragraph (1).
      2. (B) The date the producer no longer participated in the plan and the reason provided, if any, by the producer for ceasing to participate in the PRO's approved plan.
      3. (C) If the producer was dismissed by the PRO, explanation and documentation sufficient to demonstrate compliance with subdivision (b).
      4. (D) The effects of PRO-identified producer non-compliance or non-participation on the PRO's implementation and ability to implement this chapter, including how the PRO's approved plan is affected.

2. (b) A PRO may dismiss producers only for good cause, after exerting good faith effort to resolve the good cause.

   1. (1) Good cause for dismissal must be based on substantial noncompliance with the Act or requirements of the PRO plan. Noncompliance is substantial if it causes the PRO to incur financial harm or creates the risk that the PRO or other producers will violate the Act. The PRO may further base dismissal on additional conduct, regardless of whether the conduct itself violates the Act, if the conduct imposes significant costs or other significant burden on the PRO, or if it creates the risk that the PRO or other producers will violate the Act.
   2. (2) Good faith effort to resolve the good cause requires, at a minimum, notice to the producer and reasonable opportunity for the producer to cure the good cause through corrective actions. The notice shall identify the required actions with particularity, and a producer shall not be dismissed if it performs such actions.
   3. (3) Notwithstanding paragraph (2), the opportunity to cure the good cause for dismissal shall not be required if the cause is based on the same conduct or circumstances that had already been the subject of notice and the opportunity to cure within the preceding year.

3. (c) A PRO may refuse to accept a producer as a participant in its plan only for good cause, after exerting good faith effort to resolve the good cause.

   1. (1) Good cause for refusal must, at a minimum, be based on at least one of the following circumstances:

      1. (A) The producer fails to provide information reasonably required by the PRO for acceptance of the producer, as set forth in the PRO's approved plan.
      2. (B) The information provided to the PRO or other evidence available to the PRO clearly establishes that the producer is unwilling to exert good faith effort to comply with the Act.
      3. (C) The PRO has previously dismissed the producer for good cause pursuant to subdivision (b), and the cause identified in the notice preceding that dismissal still exists.
   2. (2) Good faith effort to resolve the good cause for refusal requires, at a minimum, notice to the producer and reasonable opportunity for the producer to cure the good cause through corrective actions. The notice shall identify the required actions with particularity. A producer shall be accepted as a participant if it performs such actions and shall not be deemed to have violated paragraph (1) of subdivision (b) of section 42051 of the Public Resources Code.
   3. (3) During the period provided for the producer to cure the good cause, the producer shall be considered to be a participant in the PRO for purposes of subdivision (b) of section 42051.
   4. (4) Notwithstanding paragraph (2), the opportunity to cure the good cause for refusal shall not be required if the cause is based on the same conduct or circumstances that had already been the basis for dismissing or refusing to accept the producer within the preceding year.

Note: Authority cited: Sections 40401, 40502, 42060 and 42063, Public Resources Code. Reference: Sections 42051 and 42051.1, Public Resources Code.

History

1. New article 6 (sections 18980.6-18980.6.8) and section filed 5-1-2026; operative 5-1-2026 pursuant to Government Code section 11343.4(b)(3) (Register 2026, No. 19).