Thursday, November 1, 2012

Recycling fraud is draining California cash

Oh my--another example of CLUELESS California government--

Recycling fraud is draining California cash - latimes.com: Eleven states have container redemption programs, and experts believe some level of fraud exists in each. "Seinfeld" fans will recognize the scheme: Two characters once conspired to drive a mail truck full of empty bottles from New York, where they could be redeemed for 5 cents each, to Michigan, where they could fetch 10. The problem is particularly challenging — and costly — in California. This is the only state in the region besides Oregon with a deposit program, making it a magnet for recycling fraud. And it is the only state besides Hawaii to directly administer the program through private recycling centers. Other states have beverage distributors or sellers collect the deposits and pay the redemption costs, so they — and not the state — are responsible for the money. But grocery stores and markets opposed that approach in California, which opted to have private recycling centers take in the material. The state reimburses the centers for what they spend on redemption costs, based on their account of what they take in by weight. The centers, which make their money by selling the material for scrap value and sometimes by collecting additional fees from the state, have a financial incentive to maximize the amount of material they take in, not to look for fraud. . . ."

What is it about California?  Is it something in the water or air? It has become the laughingstock of the USA.

 

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