1. (a) CalRecycle shall review a recycling payment claim and determine if a recycling payment is due pursuant to this Chapter. If CalRecycle has cause to investigate any aspect of a claim, the review may be extended until resolution of all issues aspects under investigation.

2. (b) CalRecycle may deny or adjust payment for any of the following reasons:

   1. (1) CalRecycle determines that:

      1. (A) The signature on the claim is not that of a person with Signature Authority for recycling payment claims as designated pursuant to Section 18660.11 of this Chapter.
      2. (B) The recycler did not have current approval for the reporting period or the cancellation period in the claim.
      3. (C) The approved recycler failed to meet the requirements in this Chapter or committed an activity prohibited in this Chapter.
      4. (D) The payment claim contains a numerical discrepancy between values or calculations reported on the claim and CalRecycle verified values and calculations.
      5. (E) The facility has not been inspected by DTSC within the past 12 months, as specified in Section 42479(b)(2)(A) of the Public Resources Code.
      6. (F) The recycler is ineligible for payment pursuant to Section 42479(b)(1) of the Public Resources Code.

      7. (G) The payment claim is deficient with regard to any of the following:

         1. 1. CEW source documentation
         2. 2. CEW transfer documentation
         3. 3. CEW processing documentation
         4. 4. Treatment residual disposition documentation
         5. 5. Any other documentation required as part of a payment claim as specified in Sections 18660.22 through 18660.26 of this Chapter.
   2. (2) CalRecycle has prevailed against the claimant in a civil or administrative action and money is owed to CalRecycle as a result of the action.
   3. (3) CalRecycle discovers, as part of an application review, claim review or an audit, significant inconsistencies or fraud.
3. (c) If CalRecycle adjusts or denies a payment claim based on deficiencies in documentation specified in subsection (b)(1)(G) of this section, an approved recycler shall not resubmit as part of a future claim that same documentation, or any revised form of that documentation, seeking payment for those CEW for which payment had been denied.
4. (d) Beginning on April 1, 2026, CalRecycle shall perform a review of all documents submitted as part of a recycling payment claim to determine whether it is complete. For the purposes of review pursuant to this Section, “complete” means that the payment claim was not deficient because all required information and documentation was submitted to CalRecycle in the form and manner prescribed by CalRecycle pursuant to this Chapter.
5. (e) Within 30 calendar days of the date the recycling payment claim is submitted to CalRecycle's electronic information submittal system pursuant to Section 18660.7, CalRecycle shall notify the recycler or dual entity regarding whether the recycling payment claim is complete or deficient.
6. (f) A recycling payment claim shall be deemed deficient and shall be rejected by CalRecycle if CalRecycle determines that any required information or documentation is not complete.

7. (g) If a recycling payment claim is deemed deficient, CalRecycle shall notify the recycler or dual entity of the determination, and specify the reasons why it was deemed deficient.

   1. (1) The notice of deficiency shall be sent by CalRecycle as soon as any deficiency in the required information is identified.
   2. (2) CalRecycle is not required to provide notice of any deficiencies that it has not yet identified and may send more than one notice of deficiency for the payment claim.
8. (h) If CalRecycle rejects a recycling payment claim for any deficiency and a recycler or dual entity resubmits the recycling payment claim with all deficiencies corrected, it shall be considered a new submission with CalRecycle's 90-day review period beginning on the date that CalRecycle receives the payment claim.
9. (i) If CalRecycle rejects a recycling payment claim and a recycler or dual entity fails to correct all deficiencies, CalRecycle shall continue to deem the recycling payment claim deficient.

Note: Authority cited: Sections 40502, 42475 and 42475.2, Public Resources Code. Reference: Sections 42475, 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 section heading and section filed 10-29-2012 pursuant to section 100, title 1, California Code of Regulations (Register 2012, No. 44).

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

6. Amendment of subsection (b)(1)(A) and Note filed 12-13-2024 as an emergency; operative 1-1-2025 (Register 2024, No. 50). Pursuant to Public Resources Code section 42475.2(b), this is a statutory deemed emergency, and the emergency language remains in effect until 1-1-2027 unless a Certificate of Compliance is transmitted to and approved by OAL, or the emergency language is revised by the Department prior to that date, whichever occurs sooner.

7. Amendment of subsections (b)(1)(G)5. and (c) and new subsections (d)-(i) 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.