Section 42056 - PRO to set up a trust fund or an escrow account for unexpended funds; termination of plan(a) A PRO, as part of its producer responsibility plan, shall set up a trust fund or an escrow account in California, into which it shall deposit all unexpended funds for use in accordance with this section if the plan terminates or is revoked or the PRO dissolves in accordance with the closure or transfer plan required pursuant to subdivision (f) of Section 42051.1.(b) If a plan terminates or is revoked, the trustee or escrow agent of a trust fund or escrow account set up pursuant to subdivision (a) shall do both of the following, starting within 30 calendar days:(1) Accept payments directly from producers into the trust fund or escrow account that would have been made to the PRO before the plan's termination or revocation.(2) Make payments from the trust fund or escrow account as the department shall direct, in writing, to implement the most recently approved plan.(c) If a new plan has not been approved by the department within one year after termination or revocation, the department may make modifications to the previously approved plan, as it deems necessary, and continue to direct payments from the trust fund or escrow account in accordance with paragraph (2) of subdivision (b) to implement the modified plan.(d) A trustee or escrow agent in possession of PRO funds shall, as directed by the department, transfer those funds to a successor PRO with an approved plan.Ca. Pub. Res. Code § 42056
Added by Stats 2022 ch 75 (SB 54),s 2, eff. 1/1/2023.