(a)

1. (1) Producers of covered products shall form and join a PRO for the purposes of complying with this chapter. The governing body of the PRO shall submit an application to the department by January 1, 2026, describing how the PRO meets the requirements to be an approved PRO pursuant to this chapter. If the department approves the PRO, the PRO shall proceed to carry out the requirements of this chapter. If applications for more than one PRO are submitted to the department, the department shall determine which proposed PRO can most effectively implement this chapter.

2. (2) The department shall, by, March 1, 2026, approve a PRO that meets the requirements of this chapter and both of the following:

   1. (A) The PRO has a governing board consisting of producers that are diverse in size and type and that represent the diversity of covered products placed in the market by those entities. The governing board may include ex officio members involved in the collection, sorting, repair, reuse, recycling, or management of covered products.
   2. (B) The PRO demonstrates that it has adequate financial responsibility and financial controls in place, including fraud prevention measures and an audit schedule, to ensure proper management of funds.
3. (3) All producers of covered products shall, by July 1, 2026, join the PRO approved by the department.

4. (4) After January 1, 2035, upon the determination of the director that an additional PRO would be beneficial in satisfying the requirements of this chapter, the department may approve additional PROs that meet the requirements of this chapter and that meet all of the following requirements:

   1. (A) The proposed PRO submits to the department, and agrees to cover the department’s reasonable costs to review, a petition to establish a new PRO.
   2. (B) The proposed PRO is composed of a sufficient number of producers to jointly comply with the requirements of this chapter.
   3. (C) The proposed PRO agrees to cover the costs of all of the provisions of this chapter applicable to the proposed PRO and its participant producers.

(c) Upon approval of a plan pursuant to Section 42984.8, or commencing July 1, 2030, whichever is sooner, a producer shall be subject to penalties under Section 42984.21 unless all of the following are met:

1. (1) The producer is a participant of the PRO.
2. (2) All covered products are accounted for in the plan.
3. (3) If an entity does not meet the definition of a producer and is not subject to this chapter before January 1, 2030, but, at any point, after January 1, 2030, meets the definition of a producer, the producer shall, within 90 days, become a participant of the PRO and comply with the requirements of this chapter.