(b)

1. (1) Except as provided in paragraph (2), upon approval of a plan pursuant to Section 42063, or commencing January 1, 2027, whichever is sooner, a producer shall not sell, offer for sale, import, or distribute covered materials in the state unless the producer is approved to participate in the plan of a PRO that is approved by the department for the source reduction, collection, processing, and recycling of covered material to meet the requirements of this chapter. If an entity does not qualify as a producer and is not subject to this chapter before January 1, 2027, but, after January 1, 2027, becomes a producer by beginning to sell, offer for sale, import, or distribute covered material in the state, the producer shall, within six months, become a participant of the PRO and comply with this chapter.

2. (2)

   1. (A) Notwithstanding paragraph (1), a producer may comply with this chapter individually without participating in a PRO’s plan if the producer can demonstrate to the department, and the department determines at its sole discretion, that the producer meets all of the following criteria or can demonstrate a recycling rate of 65 percent for three consecutive years prior to January 1, 2027, and on and after that date demonstrates a recycling rate at or over 70 percent annually:

      1. (i) From the 2013 calendar year to the 2022 calendar year, inclusive, the producer achieved a net 5 percent or greater source reduction of its covered materials through shifting to refill, reuse, or elimination.
      2. (ii) From the 2013 calendar year to the 2022 calendar year, inclusive, the producer achieved a net 8 percent or greater source reduction of its covered materials through optimization, concentration, right-sizing, bulking, shifting to a nonplastic packaging, or lightweighting, or increasing the number of consumer uses.
      3. (iii) Seventy-five percent of the producer’s covered material sold, offered for sale, distributed, or imported into the state is in a covered material category that meets a 30-percent recycling rate as of January 1, 2023.

   2. (B) A producer who chooses to comply with this chapter individually shall assume individual responsibility for complying with this chapter, including, but not limited to, all of the following:

      1. (i) Develop and implement a plan that meets all of the applicable requirements of a producer responsibility plan, including, but not limited to, the review, update, and approval process. The plan shall include a producer source reduction plan that meets all of the applicable requirements of a PRO source reduction plan prepared in accordance with subdivision (d) of Section 42057, including, but not limited to, the review, update, and approval process.
      2. (ii) Fully cover the costs associated with implementing this chapter to the same extent as any other producer participating in a PRO based on the producer’s share of covered material.
      3. (iii) Annually report sales, recycling, composting, and source reduction data to the department pursuant to Sections 42052 and 42057 in a manner determined by the department.

(d) Each participant of a PRO with an approved plan shall comply with the requirements of this chapter. The PRO shall notify the department within 30 calendar days of any of the following:

1. (1) The end of any three-month period in which the PRO unsuccessfully attempted to obtain a fee, records, or information from a participant producer, or received incomplete or incorrect records or information pursuant to Section 42052 or 42053.
2. (2) The date a producer no longer participates in the PRO’s approved plan.
3. (3) Any instance of noncompliance by a participant producer.