Bill Text: CA AB187 | 2019-2020 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Used Mattress Recovery and Recycling Act.
Spectrum: Bipartisan Bill
Status: (Passed) 2019-10-09 - Chaptered by Secretary of State - Chapter 673, Statutes of 2019. [AB187 Detail]
Download: California-2019-AB187-Amended.html
March 1, 2015, and annually thereafter, March 1 of each year, the department shall post on its Internet Web site internet website a list of manufacturers and renovators manufacturers, renovators, and distributors that are in compliance with
this chapter.
Bill Title: Used Mattress Recovery and Recycling Act.
Spectrum: Bipartisan Bill
Status: (Passed) 2019-10-09 - Chaptered by Secretary of State - Chapter 673, Statutes of 2019. [AB187 Detail]
Download: California-2019-AB187-Amended.html
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June 06, 2019 |
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April 22, 2019 |
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March 19, 2019 |
CALIFORNIA LEGISLATURE—
2019–2020 REGULAR SESSION
Assembly Bill
No. 187
| Introduced by Assembly Members Cristina Garcia and Bigelow |
January 10, 2019 |
An act to amend Sections 42986, 42987, 42987.1, 42987.2, 42987.5, 42988, 42988.1, 42989, 42989.1, 42989.3, 42990.1, 42990.2, and 42992 42992, 42993, 42993.2, and 42993.3 of, and to add Sections 42987.1.5, 42988.3, and 42989.4 to, the Public Resources Code, relating to recycling.
LEGISLATIVE COUNSEL'S DIGEST
AB 187, as amended, Cristina Garcia.
Used Mattress Recovery and Recycling Act.
The Used Mattress Recovery and Recycling Act, administered by the Department of Resources Recycling and Recovery, authorizes a mattress recycling organization to be established by a qualified industry association to develop, implement, and administer a mattress recycling program in the state. The act requires the organization to develop and submit to the department for approval a plan, including a budget to implement the plan, for the recovery and recycling of used mattresses. The act requires the organization to submit to the department and make publicly available annual reports relating to the program. The act requires the department’s director to appoint an advisory committee to be part of the organization. The act requires the organization to set the amount of a state mattress recycling charge to fund the recycling of used mattresses under
the act that is added to the purchase price of a mattress, and authorizes the organization to change the amount of the charge. The act requires a mattress retailer to give a consumer the option to have a used mattress picked up, at no additional cost, at the time a new mattress is delivered. A violation of the act may be subject to an administrative civil penalty.
This bill would revise and recast provisions of the act, including requiring the organization to review the plan and determine whether amendments to the plan are necessary every 5 years. The bill would require the organization to include additional specified information and goals in the plan, the budget, and the annual reports, and would require the advisory committee to prepare written recommendations for the organization. The bill would prohibit, commencing with the 2027–28 fiscal year, the organization’s financial reserve from exceeding 60% of its annual operating expenses, except as specified. The
bill would prohibit the revenue from the charge from being expended for specified purposes. The bill would also require the department to establish a process and schedule for an orderly transition of responsibility from a decertified mattress recycling organization to a successor organization, as specified.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 42986 of the Public Resources Code is amended to read:42986.
For purposes of this chapter, the following definitions shall apply:(a) (1) “Consumer” means an owner of a mattress, including a person, business, corporation, limited partnership, nonprofit organization, or governmental entity, and including the ultimate purchaser, owner, or lessee of a mattress.
(2) “Consumer” does not include a government organization or other party that obtains one or more used mattresses in the course of collecting used mattresses for recycling for purposes of this chapter, or through the ordinary collection and handling of municipal solid waste.
(b) “Distributor” means a company that has a contractual
relationship with one or more manufacturers to market and sell mattresses to retailers.
(c) “Foundation” means a ticking-covered structure used to support a mattress or sleep surface. The structure may include constructed frames, foam, box springs, or other materials, used alone or in combination.
(d) “Good faith effort” means all reasonable and economically practical efforts by a mattress recycling organization to implement the components identified in its approved plan consistent with its annual budget.
(e) “Importer” means a party qualifying as an “importer of record” for purposes of Section 1484(a)(2)(B) of Title 19 of the United States Code, with regard to the import of a finished mattress sold
in the state that was manufactured or assembled by a company outside the United States.
(f) (1) “Manufacturer” means any of the following:
(A) The person who manufactures a mattress and who sells, offers for sale, or distributes a mattress in the state.
(B) If there is no person who is a manufacturer of a mattress for purposes of subparagraph (A), the manufacturer is the person who imports the mattress into the state for sale or distribution.
(2) Except as provided pursuant to paragraph (2) of subdivision (b) of Section 42987, a retailer that brings a mattress into its store locations from an out-of-state warehouse or distribution center is not
a manufacturer.
(g) (1) “Mattress” means a resilient material or combination of materials that is enclosed by a ticking, is used alone or in combination with other products, and is intended for or promoted for sleeping upon.
(2) “Mattress” includes a foundation, a renovated mattress or renovated foundation, and a futon mattress.
(3) “Mattress” does not include the following:
(A) An unattached mattress pad or unattached mattress topper, including items with resilient filling, with or without ticking, intended to be used with or on top of a mattress.
(B) A sleeping bag or
pillow.
(C) A car bed, crib, or bassinet mattress.
(D) Juvenile products, including a carriage, basket, dressing table, stroller, playpen, infant carrier, lounge pad, or crib bumper, and the pads for those juvenile products.
(E) A product containing liquid- and gaseous-filled ticking, including a water bed and air mattress that does not contain upholstery material between the ticking and the mattress core.
(F) Upholstered furniture that does not otherwise contain a detachable mattress or that is a fold out sofa bed, sleeper sofa, or folding cot.
(h) “Mattress recycling organization” or “organization” means an
organization exempt from taxation under Section 501(c)(3) of the Internal Revenue Code of 1986, that is established by a qualified industry association, composed of manufacturers, renovators, and retailers, and certified pursuant to Section 42987, to develop, implement, and administer the mattress recycling program established pursuant to this chapter.
(i) “Used mattress recovery and recycling plan” or “plan” means the plan for recycling used mattresses that is developed by the mattress recycling organization pursuant to this chapter.
(j) “Program” or “used mattress recycling program” means the program implemented by the mattress recycling organization
pursuant to a plan approved by the department.
(k) “Qualified industry association” means the International Sleep Products Association or a successor of that organization, or a group of mattress manufacturers that collectively represent at least 35 percent of the volume of mattresses manufactured in the United States.
(l) “Recycle” or “recycling” has the same meaning as defined in Section 40180.
(m) “Recycler” means a person that engages in the manual or mechanical separation of mattresses to substantially recover components and commodities contained in mattresses for the purpose of reuse or recycling.
(n) “Recycling charge” or
“charge” means the charge imposed on the sale of a new or renovated mattress at the point of sale and collected by the organization to fund the recycling of used mattresses pursuant to this chapter.
(o) (1) “Renovate” or “renovation” means altering a used mattress for the purpose of resale and includes one or more of the following:
(A) Replacing the mattress, ticking, or filling.
(B) Adding additional filling.
(C) Rebuilding a used mattress.
(D) Replacing components with new or postconsumer materials unless the material is a clean recycled material, consists of used electronic
parts or controls, or is a used mattress base that is not covered by ticking.
(2) “Renovate” or “renovation” does not include any of the
following:
(A) Stripping a mattress of its ticking or filling without adding new material.
(B) Sterilizing or sanitizing a mattress without otherwise altering the mattress.
(C) Altering a mattress by a renovator when a person retains the altered mattress for lease, rental, or personal use.
(D) Refurbishing that disqualifies a mattress for a yellow wholesale renovator tag to be affixed to the mattress, in accordance with the regulations adopted by the Department of Consumer Affairs.
(p) “Renovator” means a person who renovates used mattresses for the purpose of sale, or offering
for sale, in this state.
(q) “Retailer” means a person who sells mattresses in the state or offers to a consumer a mattress in the state through any means, including, but not limited to, by remote offering, including sales outlets or catalogs, electronically through the internet, by telephone, or through the mail.
(r) “Sale” or “sell” means the transfer of title of a mattress for consideration, including by a manufacturer, a distributor, or a retailer for eventual consumption to a consumer in the state, including remote sales conducted through sales outlets, catalogs, or the internet or any other similar electronic means. For purposes of this chapter, a long-term lease of not less than 12 months is the same as a sale.
(s) “Solid waste facility” means, for purposes of this chapter, a solid waste facility as defined in Section 40194 that accepts, under its normal operating conditions, used mattresses from the public for collection, storing, and handling, whether for recycling or disposal.
(t) (1) “Ticking” means the outermost layer of fabric or related material of a mattress.
(2) “Ticking” does not include another layer of fabric or related material that is quilted together with, or otherwise attached to, the outermost layer of fabric or related material.
(u) “Used mattress” means a mattress that has been abandoned or discarded by
a consumer.
SEC. 2.
Section 42987 of the Public Resources Code is amended to read:42987.
(a) (1) A qualified industry association or a successor organization may establish a mattress recycling organization for purposes of this chapter, which shall be composed of manufacturers, renovators, and retailers and be certified pursuant to this section to develop, implement, and administer the mattress recycling program established pursuant to this chapter.(2) Within 60 days of receipt of a request for certification, the department shall notify the requesting qualified industry association of the department’s decision whether or not to certify that a mattress recycling organization has been established by the qualified industry association or successor
organization and is composed of manufacturers, renovators, and retailers for purposes of establishing the mattress recycling plan.
(3) (A) Prior to certification by the department, the department’s director shall appoint an advisory committee to be part of the mattress recycling organization.
(B) The advisory committee may be composed of members of the environmental community, solid waste industry, and local government public and private representatives involved in the collection, processing, and recycling of used mattresses, and other interested parties.
(C) (i) The mattress recycling organization shall consult the advisory committee at least once during the development and
implementation of the plan required pursuant to Section 42987.1, and annually prior to the submission of both an annual report required pursuant to Section 42990.1 and an annual budget required pursuant to Section 42988.
(ii) For purposes of being consulted pursuant to this subparagraph, the advisory committee shall prepare specific written recommendations at a publicly scheduled and noticed meeting of the advisory committee that are approved by a majority of the advisory committee’s members pursuant to a rollcall vote and included in the official approved minutes of the meeting. The
organization shall consider and respond to those written recommendations in writing.
(b) (1) Each manufacturer, retailer, and renovator renovator, distributor, and retailer shall register with the mattress recycling organization.
(2) A retailer may register with the mattress recycling organization as a manufacturer for a brand for which there is not a registered manufacturer.
(c) A retailer shall not sell, distribute, or offer for sale a mattress in the state unless the retailer is in compliance with this chapter and the
manufacturer or renovator of the mattress sold by the retailer is listed in compliance with this chapter.
(d) A manufacturer or renovator manufacturer, renovator, or distributor shall not sell, offer for sale, or import a mattress in this state, or sell or distribute a mattress to a distributor or retailer, unless the manufacturer or renovator manufacturer, renovator, or distributor is in compliance with this chapter.
SEC. 3.
Section 42987.1 of the Public Resources Code is amended to read:42987.1.
On or before July 1, 2015, the mattress recycling organization shall develop and submit to the department a plan for recycling used mattresses in the state in an economically efficient and practical manner that includes all of the following goals and elements:(a) Program objectives consistent with the state’s solid waste management hierarchy.
(b) The names of manufacturers, renovators, distributors, and brands covered under the plan.
(c) A consultation process with affected
stakeholders, including, but not limited to, local government representatives, recyclers, and solid waste industry representatives.
(d) Methods to increase the number of used mattresses diverted from landfills, reduce the number of illegally dumped used mattresses, and increase the quantity of used materials recovered through this process and recycled for other uses.
(e) (1) The establishment and administration of a means for funding the plan in a manner that distributes the mattress recycling organization’s costs uniformly over all mattresses sold in the state.
(2) The funding mechanism shall provide sufficient funding for
the mattress recycling organization to carry out the plan, including the administrative, operational, and capital costs of the plan.
(f) The publishing of an annual report for each calendar year of operation.
(g) Conducting research, as needed, related to improving used mattress collection, dismantling, and recycling operations, including pilot programs to test new processes, methods, or equipment on a local, regional, or otherwise limited basis.
(h) A program performance measurement that shall collect program data for the purpose of the annual report. The information shall include both of the following:
(1) A methodology for estimating the amount of
mattresses sold in the state and used mattresses available for collection in the state, and for quantifying the number of used mattresses collected and recycled in the state.
(2) A methodology for determining mattresses sold in the state by the manufacturers and renovators of the mattress recycling organization.
(i) A description of methods used to coordinate activities with existing used mattress collecting and recycling programs, including existing nonprofit mattress recyclers, and with other relevant parties as appropriate, with regard to the proper management or recycling of discarded or abandoned mattresses, for purposes of providing the efficient delivery of services and avoiding unnecessary duplication of effort and expense.
(j) Entering into contracts or agreements, which may include contracts and agreements with existing nonprofit or for-profit recyclers, that are necessary and proper for the mattress recycling organization to carry out these duties consistent with the terms of this chapter.
(k) Establishing a financial incentive to encourage parties to collect for recycling used mattresses discarded or illegally dumped in the state.
(l) Ensuring, to the maximum extent possible, that urban and rural local governments and participating permitted solid waste facilities and authorized solid waste operations that accept mattresses are provided with a mechanism for the recovery of illegally disposed used mattresses that is funded at no additional cost to the local government,
solid waste facility, or solid waste operation.
(m) Developing strategies, in consultation with the California Environmental Protection Agency’s Environmental Justice Task Force and other relevant parties, for collecting used mattresses for recycling in areas and communities that face unique challenges associated with proper waste management such as poverty, language barriers, and illegal mattress dumping.
(n) Providing outreach efforts and education to consumers, manufacturers, and retailers, for the purpose of promoting the recycling of used mattresses and options available to consumers for the free dropoff or collection of used mattresses.
(o) A provision that allows an individual to drop off, at no charge, a mattress
at a recycler, renovator, mattress recycling center, permitted solid waste facility, authorized solid waste operation, or other municipal facility that accepts mattresses consistent with state solid waste regulations, and that provides for the payment to a municipal or solid waste facility or operation that accepts mattresses an amount determined by the municipal or solid waste facility or operation and the mattress recycling organization to be reasonable for accepting, collecting, storing, transporting, and handling used mattresses.
(p) Ensuring that the impact of Article XIII C of the California Constitution is addressed for local governments participating in the program.
(q) A report from the advisory committee, established pursuant to paragraph (3) of subdivision (a) of
Section 42987, that includes a summary of the consultative process between the advisory committee and the mattress recycling organization during the development of, and any updates to, the plan, as well as any other information deemed pertinent by the advisory committee to
maximizing the recovery and recycling of used mattresses in the state.
(r) A contingency plan in the event the department decertifies the mattress recycling organization, or a mattress recycling plan expires, is disapproved, or is revoked. The contingency plan shall describe how the plan objectives can be carried out, in accordance with subdivision (c) of Section 42989.3, in the absence of a plan, either by the mattress recycling organization, or by the department through some entity such as an escrow company.
(s) Other information requested by the department that is reasonably related to compliance with the recycling plan and that the organization can reasonably compile.
SEC. 4.
Section 42987.1.5 is added to the Public Resources Code, to read:42987.1.5.
(a) During calendar year 2020, and at least once every five years thereafter, the mattress recycling organization shall review the plan and determine whether amendments to the plan are necessary.(b) If the organization determines amendments to the plan are necessary, it shall amend the plan, subject to the approval process in Section 42987.3.
(c) If the organization determines that no amendments to the plan are necessary, it shall send a letter to the department explaining that the organization has reviewed the plan and determined no revisions are needed. The department may disapprove the
organization’s determination within 30 days of that determination if it concludes that the organization cannot implement the objectives of this chapter without amending the plan.
SEC. 5.
Section 42987.2 of the Public Resources Code is amended to read:42987.2.
In preparing the plan pursuant to Section 42987.1 and any updates to the plan pursuant to Section 42987.1.5, the mattress recycling organization shall consult with interested stakeholders, which shall include, but not be limited to, local government representatives, recyclers, and solid waste industry representatives.SEC. 6.
Section 42987.5 of the Public Resources Code is amended to read:42987.5.
(a) (1) On or before January 1, 2018, based on methodology contained in the plan and information contained in the first annual report, the department, in consultation with the organization, and after taking into consideration relevant economic and practical considerations and other information, shall establish and make public the following:(A) The state mattress recycling baseline amount.
(B) The state mattress recycling goals.
(C) On or before July 1, 2020, metrics and goals for increasing consumer convenience for used mattress dropoff, disposal, and recycling
in a way that, notwithstanding this subdivision, applies to the entire state regardless of socioeconomic conditions.
(D) On or before January 1, 2021, convenience goals to be effective January 1, 2022, specific to each of the following:
(i) (I) Consumer access to the program, including at least one permanent mattress dropoff location in each county. The requirement to have at least one permanent mattress dropoff location in each county shall not apply to a county with a population of less than 2,000 people as long as the organization continues to provide at least two collection events in the county each year. The department may require additional dropoff locations to ensure that consumers have sufficient convenient access to dropoff locations.
(II) The mattress recycling organization shall provide no-cost freight services to any mattress retailer, health care facility, educational facility, military base, or lodging establishment that has at least 100 used mattresses to pick up at one time.
(ii) Retailer access to the program.
(2) When calculating the state mattress recycling goals, the department shall include renovated mattresses.
(b) Beginning July 1, 2019, and annually thereafter, the annual report required pursuant to Section 42990.1 shall demonstrate the mattress recycling organization’s good faith effort to comply with the goals established pursuant to this section.
(c) On or before July 1, 2020, and every four years thereafter, the department shall review, including reviewing for consistency with Section 41780.01, and update as necessary, the baseline amount and goals to ensure that the program advances these goals.
SEC. 7.
Section 42988 of the Public Resources Code is amended to read:42988.
On or before July 1 of each year, the mattress recycling organization shall prepare and submit to the department a proposed used mattress recycling program budget for the following calendar year that includes all of the following:(a) Anticipated revenues and costs of implementing the program, including related programs, projects, contracts, and administrative expenses.
(b) A recommended funding level sufficient to cover the plan’s budgeted costs and to operate the mattress recycling program in a prudent and responsible manner.
(c) The amount of the mattress recycling charge and itemization of costs that each charge covers.
(d) Additional information that the department deems necessary to determine whether the budget meets the requirements of this chapter.
SEC. 8.
Section 42988.1 of the Public Resources Code is amended to read:42988.1.
(a) Within 90 days of submittal, the department shall conditionally approve, approve, or disapprove a final used mattress recycling program budget. If the department fails to act or does not disapprove a final used mattress recycling program budget, the budget shall be deemed approved.(b) (1) If the department conditionally approves or disapproves the budget, the mattress recycling organization shall resubmit a revised budget addressing the department’s written reasons for its decision within 30 days of the conditional approval or disapproval.
(2) The department, within 60 days from the date the
mattress recycling organization resubmits a revised budget, shall approve or disapprove a final used mattress recycling program budget. If the department fails to act or does not disapprove a final program budget within those 60 days, the budget shall be deemed approved.
(c) If the department disapproves a revised budget submitted pursuant to paragraph (1) of subdivision (b), the organization may submit only one additional revised budget, subject to review in accordance with paragraph (2) of subdivision (b).
(d) Until a budget has been approved or deemed approved pursuant to this section, the mattress recycling organization shall make expenditures consistent with the most recently department-approved budget until a new budget has been approved or deemed approved by the
department.
SEC. 9.
Section 42988.3 is added to the Public Resources Code, to read:42988.3.
(a) On and after January 1, 2021, the mattress recycling organization shall identify strategies in its annual proposed budget to comply, commencing with the 2027–28 fiscal year, with the reserve requirements specified in this section.(b) Commencing with the 2027–28 fiscal year, the mattress recycling organization shall not maintain total reserves exceeding 60 percent of its annual operating expenses, consistent with the requirements of the Financial Accounting Standards Board’s Accounting Standards Update 2016-14, Not-for-Profit Entities (Topic 958), and any future updates to that standard.
(c) The
department, in approving the annual budget, may authorize the total reserves to be increased to up to 75 percent of the organization’s annual operating expenses if the department determines the increase is necessary to implement the requirements of this chapter.
(d) If the mattress recycling organization’s reserves exceed the amount specified in subdivision (b) or (c), the department may require the organization to increase spending on implementing the requirements of this chapter in order to reduce the excess amount of reserves.
SEC. 10.
Section 42989 of the Public Resources Code is amended to read:42989.
(a) The mattress recycling organization shall set the amount of the mattress recycling charge that shall be added to the purchase price of a mattress at the point of sale and include the charge amount in the annual budget.(b) (1) The amount of the state mattress recycling charge shall be sufficient to fund the revenue requirements set forth in the approved budget.
(2) The mattress recycling organization shall set the charge as a flat rate and not as a percentage of the purchase price. The organization shall not set more than two different charges to accommodate mattress size differentials.
(c) (1) The mattress recycling organization may change the amount of the charge in accordance with subdivision (b), but the mattress recycling organization shall not change the amount of the charge more frequently than annually, and shall provide no less than 180 days’ notice to the public before the change in the amount of the charge takes effect.
(2) If the mattress recycling organization provides notice that it intends to reduce the charge, the organization shall provide the department with information about how it will effectively implement the program at the reduced fee. The department may disapprove that change within 60 days of the notice if the department finds that the reduction makes the organization unable to effectively implement the requirements or
objectives of this chapter.
(d) The charge shall be included in the annual program budget for approval by the department.
(e) It is the intent of the Legislature to ensure the proceeds of the mattress recycling charge are used to prioritize the use of in-state processing facilities over the use of out-of-state processing facilities to the extent economically practical.
SEC. 11.
Section 42989.1 of the Public Resources Code is amended to read:42989.1.
(a) Commencing 90 days after the date the department approves the budget pursuant to Section 42988.1, each manufacturer, renovator, retailer, or distributor that sells a mattress to a consumer or to the ultimate end user of the mattress in the state shall add the charge to the purchase price of the mattress. The charge shall be clearly visible on the invoice, receipt, or functionally equivalent document by the seller to the consumer as a separate line item.(b) The charges collected pursuant to subdivision (a) shall be remitted to the mattress recycling organization in accordance with procedures established by the mattress recycling
organization.
SEC. 12.
Section 42989.3 of the Public Resources Code is amended to read:42989.3.
(a) The mattress recycling organization shall deposit the charges and other moneys collected by the mattress recycling organization pursuant to this chapter in accounts that are maintained and disbursed by the organization.(b) The mattress recycling organization may enter into a joint venture, agreements, or contracts with third parties, including, but not limited to, corporations, partnerships, nonprofit entities, and governmental agencies, to undertake activities on the mattress recycling organization’s behalf that are consistent with this chapter.
(c) (1) In the event that the department decertifies the
mattress recycling organization, the department shall establish a process and schedule that will, to the maximum extent possible, allow for an orderly transition of responsibility from the decertified organization to a successor organization. As part of that transition process, the department shall certify a successor mattress recycling organization pursuant to Section 42987.
(2) If requested by the department, the decertified organization may continue to administer the program, including, but not limited to, its receipt of charges remitted pursuant to Section 42989.1, until a successor organization certified by the department assumes all financial, statutory, contractual, and other legal responsibilities for implementing the successor organization’s obligations under this chapter. The department shall not require the
decertified organization to provide transitional services for more than 12 months unless the decertified organization consents to doing so.
(3) Once a successor organization assumes the responsibilities described in paragraph (2), the decertified organization shall within 30 days transfer to the successor organization all assets, assets and liabilities, and all financial, statutory, contractual, and other legal rights and responsibilities, including, but not limited to, the receipt of the mattress recycling charge remitted pursuant to Section 42989.1.
(4) If the mattress recycling organization is no longer able or willing to serve as the mattress recycling organization, it shall notify the department in writing and the department shall decertify that mattress recycling organization. The department may also decertify the mattress
recycling organization if it finds that the organization has intentionally violated one or more provisions of this chapter in a manner that materially impacted the organization’s ability to substantially meet its obligations under the plan approved by the department. department or if the department has revoked the mattress recycling organization’s plan pursuant to Section 42993.2.
(5) If the department decides not to request the decertified organization to provide the transitional services described in paragraph (2), the department may direct, in writing, the decertified organization to do both of the following:
set up a trust fund or escrow account and to transfer all unexpended funds into that account within 30 days. The trust fund or escrow account shall be subject to reasonable requirements that the department may set until the department certifies a successor organization. The trustee or escrow agent shall do both of the following:
(A)To place charges remitted pursuant to Section 42989.1 in an account that is subject to reasonable requirements that the department may set until the department certifies a successor mattress recycling organization.
(B)To continue to use charge revenues and other financial assets of the organization to pay for both ordinary operational expenses and the cost of any remedial or other action that the department may determine is necessary, subject to reasonable requirements that the department may set, in accordance with the most recently approved plan.
(A) Accept mattress recycling charges directly from manufacturers, renovators, retailers, and distributors into the trust fund or escrow account that would have been made to the mattress recycling organization prior to the mattress recycling organization’s decertification.
(B) Make payments from the trust fund or escrow account as the department shall direct, in writing, to implement the most recently approved plan.
(6) If a new mattress recycling plan has not been approved by the department within one year after decertification, the department may modify the previously approved plan, as it deems necessary,
and continue to direct payments from the trust fund or escrow account in accordance with paragraph (5) to implement the modified plan.
(7) A trustee or escrow agent in possession of mattress recycling charge revenue shall, as directed by the department, transfer those funds to a successor mattress recycling organization with an approved plan.
(6)
(8) If the department revokes the plan pursuant to Section 42993.2, each manufacturer, renovator, retailer, or
distributor that sells a mattress to a consumer or to an ultimate end user of the mattress in the state may continue to do so until the effective date of a successor plan approved by the department without being subject to penalties pursuant to Section 42993.1, provided that the manufacturer, renovator, retailer, or distributor continues to meet the applicable requirements of this chapter, including, but not limited to, Sections 42989.1 and 42992.
(9) For purposes of this subdivision, “unexpended funds” means mattress recycling charge revenue in the mattress recycling organization’s accounts that the organization is not already obligated to pay pursuant to a contract, claim, or similar mechanism.
SEC. 13.
Section 42989.4 is added to the Public Resources Code, to read:42989.4.
The mattress recycling organization shall not expend revenue from the mattress recycling charge for either of the following purposes:(a) To pay a civil penalty imposed on the organization pursuant to Section 42993.1.
(b) To pay costs associated with litigation between the organization and the state.
SEC. 14.
Section 42990.1 of the Public Resources Code is amended to read:42990.1.
On or before July 1 of each year, the mattress recycling organization shall submit to the department and the advisory committee and make publicly available on its internet website a report that includes, for the preceding calendar year, all of the following:(a) The mattress recycling organization’s costs and revenues.
(b) The quantity of mattresses disposed of in solid waste landfills.
(c) The quantity of discarded used mattresses collected for recycling in the program.
(d) The quantity of used mattresses collected for
recycling from different categories of sources.
(e) The quantity of each category of materials recycled.
(f) The uses for the recycled materials.
(g) The quantity of otherwise disposed of materials.
(h) A description of methods used to collect, transport, and process used mattresses in this state.
(i) Examples of educational materials that were provided to consumers the first year and any changes to those materials in subsequent years as well as other mechanisms, including advertising of the program, to increase consumer awareness.
(j) The
total volume, number, and weight of used mattresses collected recycled, renovated, and reused in this state during the preceding calendar year, including any conversion factor used to determine the number of mattresses recovered.
(k) A report by the advisory committee, established pursuant to paragraph (3) of subdivision (a) of Section 42987 that includes a summary of the consultative process between the advisory committee and the mattress recycling organization relating to the ongoing implementation of the plan, as well as any other information deemed pertinent by the advisory committee to maximizing the recovery and recycling of used mattresses in the state.
(l) For reports submitted on and after April 1, 2020, a demonstration of good faith effort with the state
mattress recycling goals established pursuant to Section 42987.5.
(m) For reports submitted on and after July 1, 2021, all of the following:
(1) A report on activities, which the mattress recycling organization shall undertake, to meet consumer and retailer accessibility goals, and on the progress the organization has made in meeting those goals, and on the organization’s planned efforts to meet those goals. Factors to be considered may include, but are not limited to, availability of retailer take-back options, proximity to recyclers and no-cost collection points, availability of no-cost local curbside collections services, and proximity to collection events.
(2) A report on activities, which the mattress recycling organization
shall undertake, to prioritize, to the extent economically practical, the use of in-state processing facilities over out-of-state processing facilities. If the mattress recycling organization decides to use out-of-state processing facilities, the organization shall provide an explanation of that decision.
(3) A report on research activities, which the organization shall undertake, to improve used mattress collection, dismantling, recycling operations, source reduction and green product design, and the response to the problem of illegal dumping and a report on the progress made as a result of the research activities.
(4) A report on pilot programs, which the organization shall undertake, to test new processes, methods, or equipment on a local, regional, or
otherwise limited basis, such as those designed to clean up illegally dumped mattresses, gather data and identify strategies to reduce the number of illegally dumped mattresses, in partnership with the cities and counties identified by the mattress recycling organization as having areas with the highest rate of illegal dumping in the state. Pilot program descriptions shall include a mechanism to measure success, such as establishing a baseline and goals when possible and report on the progress made in undertaking the pilot programs.
(5) If the mattress recycling organization determines during a particular year that any of the activities undertaken to implement paragraph (3) or (4) were unsuccessful, the organization shall identify the problems with the current activities, and report on the new activities
undertaken and progress made, in the following year’s annual report.
(6) A hard copy of, or an electronic reference to, each research study and report completed by the organization during the period covered by the annual report and a brief explanation of how the organization anticipates the research may benefit the program. The organization shall make these studies and reports publicly available free of charge. If the study or report contains trade secret or confidential information protected by law, the organization shall only be required to provide a description of the research and its relevance to the program that omits any of the trade secret or confidential information.
(n) (1) Any modifications or revisions to the mattress recycling plan
including those required pursuant to Sections 42987.1 and 42987.1.5, necessary to achieve the goals established pursuant to Section 42987.5.
(2) Any proposed modifications or revisions to the mattress recycling plan are subject to the department review process prescribed in Section 42987.3.
(3) Within 90 days after approval or conditional approval by the department, the mattress recycling organization shall implement the revised plan.
(o) For reports submitted after January 1, 2020, the progress toward attainment of the goals included in the organization’s mattress recycling plan submitted pursuant to Section 42987.1.
(p) Other information relevant to
compliance with the plan.
SEC. 15.
Section 42990.2 of the Public Resources Code is amended to read:42990.2.
(a) No later than 90 days after the date the department receives the annual report, the department shall notify the mattress recycling organization of any deficiencies in the report. No later than 60 days after receiving this notice from the department, the mattress recycling organization shall provide additional information, modification, or corrections in response to the department’s notification.(b) Any proposed activities in the report shall be evaluated by the department for progress and shall be taken into consideration
when approving or disapproving a report.
SEC. 16.
Section 42992 of the Public Resources Code is amended to read:42992.
(a) Except as provided in subdivision (d), on and after July 1, 2014, a retailer shall offer a consumer the option to have a used mattress picked up for recovery at the time of delivery, at no additional cost to the consumer, if a new mattress is delivered to the consumer.(b) A retailer may contract out to a third party for the delivery of a new mattress or pickup of a used mattress.
(c) A retailer is not prohibited from charging the consumer for the cost of the delivery of a new mattress.
(d) A retailer or third-party contractor delivering a new mattress may
refuse to pick up a used mattress from a consumer if the retailer or contractor determines the used mattress is contaminated and poses a risk to personnel, new products, or equipment.
(e) A common carrier delivering a new mattress to a consumer as a result of an online purchase is not required to pick up a used mattress for recovery.
(f) On and after January 1, 2021, if a new mattress is delivered to a consumer by common carrier, including, but not limited to, as a result of an online purchase, the retailer of that mattress shall offer to arrange to pick up a used mattress for recycling from that consumer within 30 days of the delivery of the new mattress, subject to subdivision (d).
SEC. 17.
Section 42993 of the Public Resources Code is amended to read:42993.
(a) On or before(b) A manufacturer or renovator manufacturer, renovator, or distributor that is not listed on the department’s Internet Web site internet website pursuant to this section, but demonstrates compliance with this chapter before the next notice is required to be posted pursuant to this section, may request a certification letter from the department stating the manufacturer or renovator
manufacturer, renovator, or distributor is in compliance. The manufacturer or renovator manufacturer, renovator, or distributor that receives the letter shall be deemed to be in compliance with this chapter.
(c) A retailer that distributes or sells a mattress shall monitor the department’s Internet Web site internet website to determine if a manufacturer or renovator is in compliance with this chapter. A retailer otherwise in compliance with this chapter shall be deemed in compliance with the chapter if, on the date the
retailer ordered or purchased a mattress, or within 120 calendar days before or after that date, the manufacturer or renovator was listed as compliant on the department’s Internet Web site. internet website.
(d) A retailer may sell or distribute the existing stock of its inventory through sales to the public if the existing stock was purchased when the manufacturer or renovator was in compliance with the requirements of this chapter at the time when the retailer initially purchased that stock.
(e) The sale, distribution, or offering for sale, of any existing inventory in stock prior to the commencement of the collection of the mattress recycling charge pursuant to this chapter shall be deemed
to be in compliance with this chapter.
(f) If the department determines a manufacturer or renovator
manufacturer, renovator, or distributor is not in compliance with this chapter, the department shall remove the manufacturer or renovator manufacturer, renovator, or distributor from the department’s Internet Web site internet website pursuant to this section and the manufacturer or renovator manufacturer, renovator, or distributor shall not sell a mattress in the state until the department determines
the manufacturer or renovator
manufacturer, renovator, or distributor is in compliance with this chapter.
SEC. 18.
Section 42993.2 of the Public Resources Code is amended to read:42993.2.
Upon a written finding that a manufacturer, mattress recycling organization, renovator, distributor, recycler, or retailer has not met a material requirement of this chapter, in addition to any other penalties authorized under this chapter, the department may take any of the following actions, after affording the manufacturer, organization, renovator, distributor, recycler, or retailer a reasonable opportunity to respond to, or rebut, the finding, to ensure compliance with the requirements of this chapter:(a) Revoke the mattress recycling organization’s plan approval or require the mattress recycling organization to resubmit the plan.
(b) Remove the manufacturer or renovator
manufacturer, renovator, or distributor
from the department’s Internet Web site internet website and list of compliant manufacturers and renovators, manufacturers, renovators, and distributors, as specified in Section 42993.
(c) Require additional reporting requirements relating to compliance with the material requirement identified by the department.
SEC. 19.
Section 42993.3 of the Public Resources Code is amended to read:42993.3.
(a) A manufacturer, renovator, distributor, recycler, retailer, and mattress recycling organization shall do both of the following:(1) Upon request, provide the department with reasonable and timely access, as determined by the department and as authorized pursuant to Title 13 (commencing with Section 1822.50) of Part 3 of the Code of Civil Procedure, to its facilities and operations, as necessary to determine compliance with this chapter.
(2) Upon request, provide the department with relevant records necessary to determine compliance with this chapter.
(b) The records required by this chapter shall be maintained and accessible for
three years. All reports and records provided to the department pursuant to this chapter shall be provided under penalty of perjury.
(c) The department may take disciplinary action against a manufacturer, renovator, distributor, recycler, retailer, or mattress recycling organization if the manufacturer, renovator, distributor, recycler, retailer, or mattress recycling organization fails to provide the department with the access required pursuant to this section, including, but not limited to, imposing penalties pursuant to Section 42993.1 and posting an immediate notice on the department’s Internet Web site internet website pursuant to Section 42993 that the manufacturer or renovator
manufacturer, renovator, or distributor is no longer in compliance with this chapter.
