AMENDED IN ASSEMBLY APRIL 8, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

97

Introduced by Assembly Member Ward

February 20, 2026

An act to add Article 3 (commencing with Section 48030) to Chapter 2 of Part 7 of Division 30 of the Public Resources Code, relating to solid waste.

Vote: majority   Appropriation: no   Fiscal committee: yes   Local program: no

LEGISLATIVE COUNSEL’S DIGEST

Existing law, the California Integrated Waste Management Act of 1989, administered by the Department of Resources Recycling and Recovery, establishes an integrated waste management program and requires the department to adopt rules and regulations, as necessary, to carry out the act. Existing law requires each city, county, and regional agency, if any, to develop a source reduction and recycling element, household hazardous waste element, and nondisposal facility element of an integrated waste management plan. The act requires the source reduction and recycling element to divert from disposal 50% of all solid waste subject to the element through source reduction, recycling, and composting activities, with specified exceptions.

This bill would require a city or county that requires a refundable deposit, performance security, or similar financial guarantee as a condition of issuing a construction, demolition, or building permit for the purpose of ensuring compliance with a construction or demolition debris requirement to return the full amount of the deposit if documentation demonstrating compliance with the terms of the deposit is provided, as specified.

The people of the State of California do enact as follows:

SECTION 1.

The Legislature finds and declares all of the following:

(a) Many cities and counties require applicants for construction and demolition permits to post refundable deposits or performance guarantees to ensure compliance with local waste diversion requirements.

(b) These deposits are intended to incentivize compliance with state and local recycling and diversion laws, including, but not limited to, the California Green Building Standards Code (CALGreen).

(c) Denials in returning refundable deposits after applicants have complied with all diversion and documentation requirements create unnecessary financial burdens on property owners, contractors, and small businesses.

(d) It is the intent of the Legislature to ensure that refundable construction and demolition debris diversion deposits are returned promptly once required documentation has been submitted and verified.

SEC. 2.

Article 3 (commencing with Section 48030) is added to Chapter 2 of Part 7 of Division 30 of the Public Resources Code, to read:

Article 3. Construction Debris Deposits

48030.

(a) For purposes of this section, “deposit” means a refundable deposit, performance security, or similar financial guarantee as a condition of a construction, demolition, or building permit for the purpose of ensuring compliance with a construction or demolition debris diversion requirement.

(b) A city or county that collects a deposit shall return the full amount of the deposit to the person or entity that paid the deposit if, within three years of the final inspection on the work or project that was subject to the deposit, the person or entity submits documentation that demonstrates compliance with the terms of the deposit.

(c) This section does not prohibit a city or county from denying a refund if the submitted documentation demonstrates noncompliance with applicable diversion requirements.