In January, Governor Jerry Brown sent his 2014/2015 State Budget proposal to the Legislature.Included in the nearly $155 billion budget, are several proposed changes to the Beverage Recycling program including the elimination of administrative fees that are paid to private businesses to handle California Redemption Value (CRV) transactions on behalf of the state. The Governor’s budget suggests that private industry can continue to provide these services without any compensation.

The state estimates to save $26 million a year by eliminating these fees! While a saving to the state budget, this is a $26 million tax on the business community. Without being compensated for their valuable and necessary service, recyclers will bear the full cost of administering this state program.

Administrative fees are used to defray the cost of managing the CRV recordkeeping and reporting requirements.Administrative fees also cover the cost of capital expended by processors who typically wait 30 days or more for reimbursement of CRV payments from the state.

With these proposed changes, the recycling community will be taxed $26 million a year for the state to meet its CRV program obligations. This is an unfair burden on private business. We are asking all certified recyclers to sign this petition and join our effort to save these administrative fees for recyclers and ultimately the CRV program. Without compensation for our administration of the state’s program, the CRV program is severely at risk.