Beverage containers: recycling: redemption payment and refund value.

Senator Cabaldon's proposal to modify California's beverage container recycling program would reduce the redemption payment and refund value for wine and distilled spirits containers under 24 fluid ounces from 25 cents to 10 cents, beginning January 1, 2026. The change applies specifically to boxes, bladders, pouches and similar containers, while maintaining the current 25-cent redemption value for containers 24 fluid ounces or larger.

The measure provides beverage dealers a two-week grace period, until January 15, 2026, to update shelf labels reflecting the new redemption values. For containers shipped directly to California consumers, the bill clarifies that out-of-state manufacturers with direct shipper permits must pay redemption fees. The Department of Alcoholic Beverage Control may prohibit sales of beverage brands whose manufacturers fail to remit required payments after receiving notice.

The legislation retains existing exemptions for refillable containers and for beverages served for on-premises consumption at licensed tasting rooms. While modifying redemption payment requirements, the measure preserves the broader framework of California's container recycling program, including distributor obligations to pay into the recycling fund and processor reimbursements for handling empty containers.