Cal. Code Regs. tit. 14, § 18660.9 – Audits.

(a) CalRecycle, or persons authorized by CalRecycle, may conduct audits of approved collectors, recyclers, and dual entities to determine compliance with the requirements of this Chapter.
(b) As part of an audit, CalRecycle may do any one or all of the following in relation to CEW recovery or recycling:
1. (1) Review, examine or investigate any books, records, accounts, or documentation.
2. (2) Observe, review, examine or investigate any on-site activities, operations, processes, CEWs, treatment residuals or other materials.
3. (3) Observe and inspect transactions.
4. (4) Verify measurements, counts, weights, and calculations.
5. (5) Examine and verify revenue, cost and net cost information and calculations.
6. (6) Use other examination procedures to investigate recovery payments, recycling payments, transfers of CEWs or treatment residuals, costs, revenue, net costs, or other activities related to determining compliance with this Chapter.
(c) An approved collector, recycler, or dual entity shall provide CalRecycle staff, or persons authorized by CalRecycle, access to location(s) and records for the purpose of audits related to the requirements of this Chapter, and for any or all of the following purposes in relation to CEW recovery or recycling:
1. (1) To determine compliance with CalRecycle's regulations and with the provisions of the Act.
2. (2) To determine the accuracy of the information provided in the application for approval.
3. (3) To determine the accuracy of the information, calculations, weights, counts, and other data upon which claims for payments or payments are based.
4. (4) For the investigation of complaints related to recovery payments to collectors.
5. (5) For the investigation of complaints related to the geographic origin of CEWs.
6. (6) To obtain cost data, revenue data and net cost calculations required for CalRecycle to set and adjust the Standard Statewide Recovery Payment Rate, recycler payment rates and consumer fees.
7. (7) To obtain sample data to calculate component weight to device weight conversion factors.
8. (8) To inspect any records required by this Chapter or the Act.
(d) If an approved collector, recycler, or dual entity fails to provide reasonable access for audits pursuant to this Section, CalRecycle shall do one or more of the following:
1. (1) Deny approval if a renewal is pending.
2. (2) Revoke an existing approval.
3. (3) Recoup monies previously paid by CalRecycle, which were the subject of the audit, accumulated interest, and any associated penalties.
4. (4) Deny current and future claims for payments.
(e) An approved collector, recycler, or dual entity that must repay monies to CalRecycle based on the results of a CalRecycle audit shall pay the entire amount, including the original amount, accumulated interest, and any associated penalties.
(f) An approved collector, recycler, or dual entity shall make any payments, repayments or recoupments in U.S. dollars by check, draft, money order or cashier's check payable to the State of California, Department of Resources Recycling and Recovery, or to a designee selected by CalRecycle.

Note: Authority cited: Sections 40502, 42475(b) and 42475.2, Public Resources Code. Reference: Sections 42475(a), 42476, 42477, 42478 and 42479, Public Resources Code.

History

1. New section filed 5-10-2004 as an emergency; operative 5-10-2004 (Register 2004, No. 20). Pursuant to Public Resources Code section 42475.2(b) a Certificate of Compliance must be transmitted to OAL by 5-10-2006 or emergency language will be repealed by operation of law on the following day.

2. Repealer and new section filed 12-13-2004 as an emergency; operative 12-13-2004 (Register 2004, No. 51). Pursuant to Public Resources Code section 42475.2(b), emergency language will be repealed by operation of law on 12-14-2006. A Certificate of Compliance must be transmitted to and approved by OAL prior to that day.

3. Certificate of Compliance as to 12-13-2004 order, including amendment of section, transmitted to OAL 10-13-2006 and filed 11-27-2006 pursuant to Public Resources Code section 42475.2(b) (Register 2006, No. 48).

4. Change without regulatory effect amending subsections (a)-(b), (c)-(c)(1), (c)(6), (d), (d)(3) and (e)-(f) filed 10-29-2012 pursuant to section 100, title 1, California Code of Regulations (Register 2012, No. 44).

5. Amendment of subsections (b)(1) and (c) filed 9-17-2018; operative 10-1-2018 pursuant to Government Code section 11343.4(b)(3) (Register 2018, No. 38).

6. Change without regulatory effect amending subsection (c)(6) filed 4-17-2023 pursuant to section 100, title 1, California Code of Regulations (Register 2023, No. 16).

7. Amendment filed 12-11-2025 as a deemed emergency pursuant to Public Resources Code section 42475.2(b); operative 12-11-2025 (Register 2025, No. 50). A Certificate of Compliance must be transmitted to OAL by 12-11-2027 or emergency language will be repealed by operation of law on the following day.