The way processors pay recycling centers has changed!
What you need to know…
As of January 1, 2023, all processors are required to make all payments to certified recycling centers, dropoff or collection programs, or curbside programs by check or electronic transfer, and not by cash, within two business days.
- All types of empty beverage containers,
- by type of beverage container,
- received by the processor from a recycling center, curbside program, or dropoff or collection program,
- upon receipt by the certified processor of a shipping report from the supplier of the material.
Please check back at a later date for more information as it becomes available.
Senate Bill (SB) 38 amends section 14573.5 of the Public Resources Code, all of the details of the legislative bill can be found at Bill Text – SB-38 Beverage containers. (ca.gov)
Can a certified processor cash the recycling centers or other certified program’s check that the certified processor issued?
Public Resources Code Section 14573.5 does not include provisions on whether a certified processor can or cannot cash a certified recycling center or other certified program’s checks.
Can a certified processor issue a check for CRV and pay scrap in cash?
Yes, the certified processor can include other types of service fees, such as scrap in the processor certified issued check or electronic transfer.
The law states that the check issued by the certified processor will include the sum of
- The refund value.
- Three-fourths of 1 percent of the refund value for administrative costs.
- The processing payment established pursuant to Section 14575.
Will the certified processor be subject to the 1099 IRS requirement for total payments made?
Please refer to the IRS website www.irs.gov for 1099 requirements.