BILL NUMBER: AB 2398	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 28, 2010
	AMENDED IN ASSEMBLY  APRIL 14, 2010

INTRODUCED BY   Assembly Member John A. Perez

                        FEBRUARY 19, 2010

   An act to  amend Section 12209 of the Public Contract Code,
and to  add Chapter 20 (commencing with Section 42970) to Part 3
of Division 30 of the Public Resources Code, relating to recycling.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2398, as amended, John A. Perez. Product stewardship: 
carpet.   carpet: public procurement.  
   The 
    (1)     The  California Integrated
Waste Management Act of 1989, administered by the Department of
Resources Recycling and Recovery, is required to reduce, recycle, and
reuse solid waste generated in the state to the maximum extent
feasible in an efficient cost-effective manner to conserve water,
energy, and other natural resources.
   The bill would require, by September 30, 2011,  a producer
or the carpet stewardship organization created by one or more
producers of a carpet   a manufacturer of carpets sold
in this state, individually or through a carpet stewardship
organization,  to submit a carpet stewardship plan to the
department, which would be required to include specified elements,
including  product goals and a collection rate for the carpet
subject to the plan, calculated in a specified manner  
a funding mechanism that provides sufficient funding to carry out
the plan, including administrative, opera   tional, and
capital costs of the plan  . The department would be required
 to review a carpet stewardship plan submitted to the
department and deem the plan either complete or incomplete within 45
days after receipt   to, among other things, within 60
days after the department receives a plan, review and determine
whether the plan is complete and notify the submitter of its
determination  .
   The bill would prohibit a  producer,  
manufacturer,  wholesaler, or retailer, on and after 
January 1, 2012   April 1, 2012  , from selling a
carpet unless the plan for that carpet is  deemed complete by
the department   in compliance   with the act'
s requirements  . The act would require  a producer of
carpet or  the carpet stewardship organization to 
implement the carpet stewardship plan, including achieving the
collection rate   meet specified targets in order to be
in compliance  .
   Each  producer or carpet stewardship organization
implementing a carpet stewardship plan   manufacturer of
carpet sold in the state, individually or through a carpet
stewardship organization,  would be required to prepare and
submit to the department an annual report describing the activities
carried out pursuant to the carpet stewardship plan.
   A  producer   manufacturer  or carpet
stewardship organization submitting a carpet stewardship plan would
be required to pay the department an  annual  administrative
fee when submitting the plan for review and approval  and to
pay an annual administrative fee  , as determined by the
department. The bill would provide for the imposition of
administrative civil penalties upon a  producer who does not
comply with the bill's requirements or a producer, wholesaler, or
retailer selling carpet in violation of the bill. The bill would
create the Carpet Stewardship Account in the existing Integrated
Waste Management Fund and would require that the administrative fees
be deposited into that account and that the penalties be deposited
into the Carpet Stewardship Penalty Subaccount that the bill would
create in that account. The bill would authorize the fees and
penalties to be expended, upon appropriation by the Legislature, to
cover the department's program implementation costs and as incentives
to enhance recyclability and redesign efforts and to reduce
environmental and safety impacts of carpet   person who
sells carpet in violation of the bill  . 
   (2) Existing law provides various procedures and requirements
pertaining to the purchase of recycled items by the state, including,
among other things, recycled paper products, plastic products, metal
products, and paint.  
   This bill would additionally provide requirements for the purchase
of carpet. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    The Legislature finds and declares all
of the following:  
   (a) Discarded carpet is one of the 10 most prevalent waste
materials in California landfills, equaling 3.2 percent of waste by
volume disposed of in California in 2008. Because carpet is heavy and
bulky, it imposes a significant solid waste management cost on local
governments.  
   (b) In 2002 the carpet industry entered into a carpet memorandum
of understanding (MOU) with the State of California to achieve a goal
of diverting from landfills 40 percent of discarded carpet and
recycling 20 percent of discarded carpet by 2012. Since 2002,
however, the carpet recycling rate has never reached 5 percent and in
2008, the most recent year for which data are available, the state's
carpet recycling rate was 4.3 percent.  
   (c) As part of its fulfillment of the state's obligations under
the carpet MOU, the former Integrated Waste Management Board made
loans to various carpet recycling businesses in the state. Those
loans are now at risk, and employment in the carpet recycling sector
has dropped in recent years due to the continuing low carpet
recycling rate.  
   (d) Numerous products can be manufactured from recycled carpets,
including carpet, carpet underlayment, automobile parts, picnic
tables, park benches, and erosion control products.  
   (e) It is in the interest of the state to work with the carpet
industry to take additional steps to increase the collection and
recycling of discarded carpet into new products in order to reduce
the environmental and economic impacts of carpet as a waste material
and to create and sustain jobs in the state's carpet recycling
industry. 
   SEC. 2.    Section 12209 of the   Public
Contract Code   is amended to read: 
   12209.  For purposes of this article, the following minimum
content requirements apply:
   (a) Recycled paper products shall consist of at least 30 percent,
by fiber weight, postconsumer fiber.
   (b) (1) Recycled printing and writing paper shall consist of at
least 30 percent, by fiber weight, postconsumer fiber.
   (2) Printed newspapers that meet the requirements of Chapter 15
(commencing with Section 42750) of Part 3 of Division 30 of the
Public Resources Code shall be considered in compliance with the
requirements of this section.
   (c) For recycled compost, cocompost, and mulch, at least 80
percent of the product shall consist of materials, including, but not
limited to, the materials listed in subdivision (c) of Section
12207, that would otherwise be normally disposed of in landfills.
   (d) For recycled glass, the total weight shall consist of at least
10 percent postconsumer material.
   (e) Rerefined lubricating oil shall have a base oil content
consisting of at least 70 percent rerefined oil.
   (f) (1) For recycled plastic products, other than printer or
duplication cartridges, the total weight shall consist of at least 10
percent postconsumer material.
   (2)  Recycled printer or duplication cartridges shall comply with
either the requirements set forth in subdivision (e) of Section 12156
or the general requirement for recycled plastic products set forth
in paragraph (1).
   (g) Recycled paint shall have a recycled content consisting of at
least 50 percent postconsumer paint. Preconsumer or secondary paint
does not qualify as "recycled paint" pursuant to this subdivision. If
paint containing 50 percent postconsumer content is unavailable, or
is restricted by a local air quality management district, a state
agency may substitute paint with at least 10 percent postconsumer
content.
   (h) Recycled antifreeze fluid shall have a recycled content of at
least 70 percent postconsumer materials.
   (i) Retreaded tires  must   shall  use
an existing casing that has undergone an approved or accepted
recapping or retreading process, in accordance with Chapter 7
(commencing with Section 42400) of Part 3 of Division 30 of the
Public Resources Code.
   (j) For tire-derived products, the total content shall consist of
at least 50 percent recycled used tires.
   (k) For recycled metal products, the total weight shall consist of
at least 10 percent postconsumer material.
   (l) For reused or refurbished products, there is no minimum
content requirement. 
   (m) For recycled carpet, the total weight, including both fiber
and backing, shall consist of at least 25 percent postconsumer
carpet. 
   SEC. 3.    Chapter 20 (commencing with Section 42970)
is added to Part 3 of Division 30 of the   Public Resources
Code   , to read:  
      CHAPTER 20.  PRODUCT STEWARDSHIP FOR CARPETS


   42970.  The purpose of the carpet stewardship program established
pursuant to this chapter is to require carpet manufacturers to
develop and implement a program to increase the diversion of
postconsumer carpet from landfills, increase the recyclability of
carpets, and promote the recycling of postconsumer carpet into
materials that are used to manufacture new products.
   42971.  For purposes of this chapter, and unless the context
otherwise requires, the definitions in this section govern the
construction of this chapter:
   (a) "Brand" means a name, symbol, word, or mark that identifies
the carpet, rather than its components, and attributes the carpet to
the owner or licensee of the brand as the manufacturer.
   (b) (1) "Carpet" means a manufactured article that is used in
commercial or residential buildings affixed or placed on the floor or
building walking surface as a decorative or functional building
interior feature and that is primarily constructed of a top visible
surface of synthetic face fibers or yarns or tufts attached to a
backing system derived from synthetic or natural materials.
   (2) "Carpet" includes, but is not limited to, a commercial or a
residential broadloom carpet or modular carpet tiles.
   (3) "Carpet" does not include a rug, pad, cushion, or underlayment
used in conjunction with, or separately from, a carpet.
   (c) "Carpet stewardship organization" or "organization" means
either of the following:
   (1) An organization appointed by one or more manufacturers to act
as an agent on behalf of the manufacturer to design, submit, and
administer a carpet stewardship plan pursuant to this chapter.
   (2) A carpet manufacturer that complies with this chapter as an
individual manufacturer.
   (d) "Carpet stewardship plan" or "plan" means a plan written by an
individual manufacturer or a carpet stewardship organization, on
behalf of one or more manufacturers, that includes all of the
information required by Section 42972.
   (e) "Department" means the Department of Resources Recycling and
Recovery.
   (f) "Manufacturer" shall be determined, with regard to a carpet
that is sold, offered for sale, or distributed in the state, as
meaning one of the following:
   (1) The person who manufactures the carpet and who sells, offers
for sale, or distributes that carpet in the state under that person's
own name or brand.
   (2) If there is no person who sells, offers for sale, or
distributes the carpet in the state under the person's own name or
brand, the manufacturer of the carpet is the owner or licensee of a
trademark or brand under which the carpet is sold or distributed in
the state, whether or not the trademark is registered.
   (3) If there is no person who is a manufacturer of the carpet for
the purpose of paragraphs (1) and (2), the manufacturer of that
carpet is the person who imports the carpet into the state for sale
or distribution.
   (g) "Program" means the system for the collection, transportation,
recycling, and disposal of carpets pursuant to a completed carpet
stewardship plan that is financed and managed or provided by an
individual manufacturer or collectively by one or more manufacturers.

   (h) "Retailer" means a person who offers new carpet in a retail
sale, as defined in Section 6007 of the Revenue and Taxation Code,
including a retail sale at retail through any means, including remote
offerings such as sales outlets, catalogs, or an Internet Web site.
   (i) "Sell" or "sales" means a transfer of title of a carpet for
consideration, including a remote sale conducted through a sale
outlet, catalog, or Internet Web site or similar electronic means,
but does not include a lease.
   (j) "Wholesaler" means a person who offers new carpets for sale in
this state in a sale that is not a retail sale, as defined in
Section 6007 of the Revenue and Taxation Code, and in which the
carpet is intended to be resold.
   42972.  (a) On or before September 30, 2011, a manufacturer of
carpets sold in this state shall, individually or through a carpet
stewardship organization, submit a carpet stewardship plan to the
department that will do all of the following:
   (1) Develop and implement a program, including measurable goals
established by the stewardship organization, that will increase the
diversion of postconsumer carpet from landfills, increase the
recyclability of carpets, and promote the recycling of postconsumer
carpet into materials that are used to manufacture new products.
   (2) Meet the requirements of Section 42975.
   (3) Include a funding mechanism, consistent with subdivision (b),
that provides sufficient funding to carry out the program, including
the administrative, operational, and capital costs of the plan.
   (4) Include education and outreach efforts to consumers,
retailers, and waste haulers to promote the segregated collection and
recycling of postconsumer carpet.
   (b) (1) The funding mechanism required pursuant to paragraph (3)
of subdivision (a) shall provide for an assessment per unit of carpet
sold in the state, as determined in the plan, to be paid by each
member of the carpet stewardship organization in an amount that
cumulatively will adequately fund the program. The assessment shall
be remitted to the carpet stewardship organization to be used to
carry out the program.
   (2) The amount of the assessment and the anticipated revenues from
the assessment shall be specified in the plan and shall be approved
by the department as part of the plan. The assessment shall be
sufficient to meet, but not exceed, the anticipated cost of carrying
out the plan.
   42973.  Within 60 days after the department receives a plan
submitted pursuant to Section 42972, it shall review the plan,
determine whether it is complete, and notify the submitter of its
determination. If the department notifies the submitter that the plan
is not complete, the submitter shall revise and resubmit the plan
within 60 days after receiving the notification.
   42974.  On and after April 1, 2012, a manufacturer, wholesaler, or
retailer shall not offer a carpet for sale in this state or offer a
carpet for promotional purposes in this state unless a plan submitted
by an organization that includes the manufacturer of that carpet is
in compliance with this chapter.
   42975.  (a) In order to achieve compliance with this chapter, a
carpet stewardship organization shall demonstrate to the department
that the following targets have been met:
   (1) The amount of postconsumer carpet recycled in the state shall
equal or exceed 25 percent by January 1, 2017.
   (2) The amount of postconsumer carpet recycled in the state shall
equal or exceed 50 percent by January 1, 2022.
   (b) The percentage of carpet that has been recycled shall be
calculated by a method adopted by the department after consulting
with carpet stewardship organizations and taking into account the
information provided to the department pursuant to Section 42976.
   (c) If more than one organization submits a carpet stewardship
plan pursuant to this chapter, the department shall use information
submitted by the organization in its annual report pursuant to
Section 42976 to determine the recycling rate attributable to each
organization and shall determine compliance with this chapter
accordingly.
   42976.  On or before July 1, 2013, and each year thereafter, a
manufacturer of carpet sold in the state shall, individually or
through a carpet stewardship organization, submit to the department a
report describing its activities since the previous report. The
report shall include all of the following:
   (a) The total amount of carpet sold and postconsumer carpet
collected, by volume and weight, in the state during the reporting
period.
   (b) The total amount of postconsumer carpet recycled, by volume
and weight, in the state during the reporting period.
   (c) The total cost of implementing the carpet stewardship program
and other elements of the carpet stewardship plan.
   (d) An evaluation of the effectiveness of the program, its funding
mechanism, and other elements of the plan and anticipated steps, if
needed, to improve performance.
   42977.  (a) The carpet stewardship organization submitting a
carpet stewardship plan shall pay the department an annual
administrative fee. The department shall set the fee at an amount
that, when paid by every carpet stewardship organization that submits
a carpet stewardship plan, is adequate to cover the department's
full costs of administering and enforcing this chapter. The
department may establish a variable fee based on relevant factors,
including, but not limited to, the portion of carpets sold in the
state by members of the organization compared to the total amount of
carpet sold in the state by all organizations submitting a carpet
stewardship plan.
   (b) The total amount of annual fees collected pursuant to this
section shall not exceed the amount necessary to recover costs
incurred by the department in connection with the administration and
enforcement of the requirements of this chapter.
   42978.  (a) A civil penalty up to the following amounts may be
administratively imposed by the department on any person who sells or
offers for sale a carpet that has been prohibited from sale pursuant
to Section 42974:
   (1) One thousand dollars ($1,000) per violation.
   (2) Ten thousand dollars ($10,000) per violation if the violation
is intentional, knowing, or negligent.
   (b) Any penalties collected by the department shall be used to
offset the cost of administering and enforcing this chapter.
   42979.  This article does not limit, supersede, duplicate, or
otherwise conflict with the authority of the Department of Toxic
Substances Control under Section 25257.1 of the Health and Safety
Code to fully implement Article 14 (commencing with Section 25251) of
Chapter 6.5 of Division 20 of the Health and Safety Code, including
the authority of the department to include a carpet in its product
registry.  
  SECTION 1.    The Legislature finds and declares
all of the following:
   (a) Recycling carpets results in greater green house gas (GHG)
emission reductions than most other products.
   (b) Carpets accounted for 3.2 percent of waste by volume disposed
of in California in 2008.
   (c) Despite nationwide and California memoranda of understanding
to promote carpet recycling, the carpet recycling rate has dropped
from 4.9 percent in 2007 to 4.3 percent in 2008.
   (d) The California carpet industry memorandum of understanding
targets a recycling rate of between 20 and 25 percent by 2012.
   (e) Because other types of recycling programs have proven to have
limited success, state and regional governments in Europe and Canada
have adopted producer responsibility programs to redirect the
responsibility for the end-of-life management of discarded hazardous
and hard to manage products from local governments and retailers
primarily to producers.
   (f) The former California Integrated Waste Management Board
adopted an overall Framework for an Extended Producer Responsibility
(EPR) guidance document as a policy priority in January 2008.
   (g) The program established by this act is intended to reduce
costs to local government, to harmonize the state's producer
responsibility obligations with other national and international
programs, and to enhance the protection of public health and the
environment through safer product design, use, and end-of-life
management.  
  SEC. 2.    Chapter 20 (commencing with Section
42970) is added to Part 3 of Division 30 of the Public Resources
Code, to read:
      CHAPTER 20.  PRODUCT STEWARDSHIP FOR CARPETS


   42970.  For purposes of this chapter, and unless the context
otherwise requires, the definitions in this chapter govern the
construction of this chapter:
   (a) "Brand" means a name, symbol, word, or mark that identifies
the carpet, rather than its components, and attributes the carpet to
the owner or licensee of the brand as the producer.
   (b) (1) "Carpet" means a manufactured article that is used in
commercial or residential buildings affixed or placed on the floor or
building walking surface as a decorative or functional building
interior feature and that is primarily constructed of a top visible
surface of synthetic face fibers or yarns or tufts attached to a
backing system derived from synthetic or natural materials.
   (2) "Carpet" includes, but is not limited to, a commercial or a
residential broadloom carpet or modular carpet tiles.
   (3) "Carpet" does not include a rug, pad, cushion, or underlayment
used in conjunction with, or separately from, a carpet.
   (c) "Carpet producer stewardship" means requiring the producer of
a carpet, and all other entities involved in the distribution chain
of a carpet, to share in the responsibility of reducing the life
cycle impact of the carpet and its packaging, including requiring the
producer who makes design and marketing decisions for the carpet to
bear the primary responsibility for this reduction.
   (d) "Carpet stewardship organization" or "organization" means an
organization appointed by one or more producers to act as an agent on
behalf of the producer to design, submit, and administer a carpet
stewardship plan pursuant to this chapter.
   (e) "Carpet stewardship plan" or "plan" means a plan written by an
individual producer or a carpet stewardship organization, on behalf
of one or more producers, that includes all of the information
required by Section 42971.
   (f) "Collection rate" means a quantitative measure established in
the carpet stewardship plan that establishes the amount of carpet
required to be collected by the carpet stewardship system for that
carpet by an established date. The collection rate is included as a
component of the product goals for a carpet.
   (g) "Department" means the Department of Resources Recycling and
Recovery.
   (h) "Producer" shall be determined, with regard to a carpet that
is sold, offered for sale, or distributed in the state, as meaning
one of the following:
   (1) The person who manufactures the carpet and who sells, offers
for sale, or distributes that carpet in the state under that person's
own name or brand.
   (2) If there is no person who sells, offers for sale, or
distributes the carpet in the state under the person's own name or
brand, the producer of the carpet is the owner or licensee of a
trademark or brand under which the carpet is sold or distributed in
the state, whether or not the trademark is registered.
   (3) If there is no person who is a producer of the carpet for
purpose of paragraphs (1) and (2), the producer of that carpet is the
person who imports the carpet into the state for sale or
distribution.
   (i) "Product goal" means those qualitative or quantitative goals
determined by the producer to measure improvements that reduce the
life cycle impacts of a carpet.
   (j) "Program" means the system for the collection, transportation,
recycling, and disposal of carpets pursuant to a completed carpet
stewardship plan that is financed and managed or provided by an
individual producer or collectively by one or more producers.
   (k) "Recycling rate" means a quantitative measure that establishes
the amount of a collected carpet that is recycled as compared to the
total amount of the carpet that is collected, including the amount
of the carpet that is discarded for reuse, energy recovery, or safe
disposal.
   (l) "Reporting period" means the period commencing January 1 and
ending on December 31 of the same calendar year.
   (m) "Retailer" means a person who offers new carpet in a retail
sale, as defined in Section 6007 of the Revenue and Taxation Code,
including a retail sale at retail through any means, including remote
offerings such as sales outlets, catalogs, or an Internet Web site.
   (n) "Reuse rate" means a quantitative measure that establishes the
amount of a collected carpet that is reused as compared to the total
amount of the covered carpet that is collected, including the amount
of the carpet that is discarded by recycling, energy recovery, or
safe disposal.
   (o) "Sell" or "sales" means a transfer of title of a carpet for
consideration, including a remote sale conducted through a sale
outlet, catalog, or Internet Web site or similar electronic means,
but does not include a lease.
   (p) "Wholesaler" means a person who offers new carpets for sale in
this state in a sale that is not a retail sale, as defined in
Section 6007 of the Revenue and Taxation Code, and in which the
carpet is intended to be resold.
   42971.  (a) On or before September 30, 2011, a producer or the
carpet stewardship organization of a carpet shall submit a carpet
stewardship plan to the department.
   (b) A producer, group of producers, or carpet stewardship
organization shall consult with stakeholders during the development
of the carpet stewardship plan, including soliciting stakeholder
comments and responding to stakeholder comments prior to submitting
the carpet stewardship plan.
   (c) Each carpet stewardship plan shall include, at a minimum, all
of the following elements:
   (1) Contact information for all participating producers.
   (2) The collection rate for the carpets subject to the plan, which
shall be calculated in the following manner, except as provided in
Section 42973:
   (A) For the calendar year commencing January 1, 2014, the
collection rate shall be 50 percent of the carpets sold by the
producers subject to the plan during the previous calendar year.
   (B) On and after January 1, 2017, the collection rate shall be 70
percent of the carpets sold by the producers subject to the plan
during the previous calendar year.
   (C) The plan shall have a target of achieving a 95 percent
collection rate.
   (3) A description containing all of the following elements:
   (A) Brands of the carpets covered by the plan.
   (B) How the product goals will be achieved.
   (C) The annual schedule for achievement of the collection rate.
   (D) Convenient collection opportunities for consumers in all
counties of the state.
   (E) Reuse rate and recycling rate for carpets.
   (F) Roles and responsibilities of key players along the
distribution chain.
   (G) Procedures to be used for notifying retailers and wholesalers
of the program.
   (4) Financing method selected to sustainably fund the
implementation of the plan.
   (5) Education and outreach activities to maximize collection
rates.
   (d) A producer or carpet stewardship organization shall contact
cities, counties, districts, and regional agencies, in whose
jurisdictions the program will be implemented, to do either, or both,
of the following:
   (1) Enter into an agreement to reimburse the local public agency
for the cost of collecting carpets.
   (2) Provide the local public agency with the location, hours, and
contact information for the convenient collection points for carpets
that are located within the county where
                the local agency is located and are consistent with
the plan.
   42972.  (a) A carpet stewardship program shall be considered in
compliance with this article only if it achieves the collection rate
specified in a plan that has been deemed complete by the department
pursuant to Section 42974.
   (b) If a program achieves a collection rate of 95 percent, the
producer or carpet stewardship organization shall not be required to
pay the annual fee imposed pursuant to subdivision (a) of Section
42979.
   42973.  A producer may petition the department for an adjustment
to the collection rate. The department may grant an adjustment to the
collection rate only if the department determines there are
documented exigent circumstances that are beyond the control of the
producer or carpet stewardship organization.
   42974.  (a) The department shall review a plan within 45 days
after the date the plan is received and either deem the plan complete
or incomplete. If the department does not deem the plan complete,
the department shall notify the producer or organization that
submitted the plan of the deficiencies and the producer or
organization shall revise and resubmit the plan within 45 days after
receiving the notification. If the department deems the plan
complete, the department shall, within 45 days after receipt, notify
the producer or organization that the submitted plan is complete.
   (b) The department shall make all carpet stewardship plans
submitted to the department available to the public on the department'
s Internet Web site.
   (c) A producer shall notify the department 30 days before
instituting a significant or material change to a carpet stewardship
plan.
   (d) On or before July 1, 2012, and on or before July 1 annually
thereafter, the department shall post on its Internet Web site a
listing of the brands of carpets for which the producer is in
compliance with this article.
   42975.  On and after January 1, 2012, a producer, wholesaler, or
retailer shall not offer a carpet for sale in this state or offer a
carpet for promotional purposes in this state unless the plan
submitted by the producer or carpet stewardship organization of that
carpet has been deemed complete by the department pursuant to Section
42974.
   42976.  Upon receiving notification from the department pursuant
to Section 42974 that a plan is complete, the producer or the carpet
stewardship organization shall do all of the following:
   (a) Implement the plan, including, but not limited to, achieving
the collection rate specified in the plan.
   (b) Pay the administrative fees imposed pursuant to subdivision
(a) of Section 42979.
   (c) Submit the annual report required by Section 42978.
   42977.  A wholesaler or a retailer that distributes or sells
carpets shall monitor the department's Internet Web site to determine
if the sale of a producer's carpets is in compliance with this
article.
   42978.  (a) On or before April 1, 2013, and every subsequent year
thereafter, each producer or carpet stewardship organization
implementing a plan shall prepare and submit to the department an
annual report describing the activities carried out pursuant to the
plan during the previous calendar year. The annual report shall
include, but is not limited to, all of the following:
   (1) The extent to which each element of the plan specified in
subdivision (c) of Section 42971 is attained, including, but not
limited to, achieving the collection rate specified in the plan.
   (2) The actions that the producer will take during the next
reporting period to meet the product goals specified in the plan that
have not been met.
   (3) A report of the total sales data for carpets sold in the state
for the previous calendar year.
   (b) The department shall review an annual report submitted
pursuant to this section and shall deem it complete if the department
determines the report contains the information required by this
section.
   (c) If the department does not act on a report within 45 days of
receipt, the report shall be deemed to be complete.
   (d) The department shall make all reports submitted to the
department pursuant to this section available to the public on the
department's Internet Web site.
   (e) If the collection rate for the carpets subject to the plan
meets the collection rate specified in subdivision (b) of Section
42972, the report shall be submitted once every two years.
   42979.  (a) The producer or carpet stewardship organization
submitting a carpet stewardship plan shall pay the department an
annual administrative fee. The department shall set the fee at an
amount that, when paid by every producer and carpet stewardship
program that submits a carpet stewardship plan, is adequate to cover
the department's full costs of administering and enforcing this
chapter. The department may establish a variable fee based on
relevant factors including, but not limited to, the portion of
carpets produced by the fee payer compared to the total amount of
carpet produced by all producers or stewardship organizations
submitting a carpet stewardship plan.
   (b) The total amount of annual fees collected pursuant to this
section shall not exceed the amount necessary to recover costs
incurred by the department in connection with the administration and
enforcement of the requirements of this chapter.
   42980.  (a) The Carpet Stewardship Account and the Carpet
Stewardship Penalty Subaccount are hereby established in the
Integrated Waste Management Fund.
   (b) All fees collected pursuant to this chapter shall be deposited
in the Carpet Stewardship Account and may be expended by the
department, upon appropriation by the Legislature, to cover the
department's costs to implement this chapter.
   (c) All penalties collected pursuant to this chapter shall be
deposited in the Carpet Stewardship Penalty Subaccount and may be
expended by the department, upon appropriation by the Legislature, to
cover the department's costs to implement this article.
   (d) All funds collected may be expended as incentives to enhance
reuse, recyclability, and redesign efforts and to reduce
environmental and safety impacts of carpet.
   42981.  (a) If, after holding a public hearing, the department
finds that a producer has failed to make a good faith effort to
comply with this chapter, including, but not limited to, failing to
submit a plan pursuant to Section 42971 or failing to submit an
annual report pursuant to Section 42978, the department shall issue a
compliance order with a schedule for achieving compliance.
   (b) If, after issuing an order and schedule for compliance
pursuant to subdivision (a), the department finds that the producer
has failed to make a good faith effort to comply with this chapter,
the department may impose an administrative civil penalty of five
thousand dollars ($5,000) per day until the producer achieves
compliance.
   (c) For purposes of this section, "good faith effort" means all
reasonable and feasible efforts by a producer towards implementing
the requirements of this chapter, including, but not limited to,
meeting the performance goals specified in the plan.
   42982.  (a) In addition to the penalty specified in Section 42981,
the department may impose an administrative civil penalty of five
thousand dollars ($5,000) per day against a producer, wholesaler, or
retailer who violates Section 42975.
   (b) A producer, wholesaler, or retailer that removes from sale any
carpet within 90 days of discovery that it is not in compliance with
this chapter shall not be deemed to be in violation of Section
42975.
   (c) Prior to enforcing any penalty pursuant to this section, the
department shall issue a compliance order to the producer or retailer
selling the carpet allowing 30 days from the date of the compliance
order to cease sales of the carpet.
   42983.  This article does not limit, supersede, duplicate, or
otherwise conflict with the authority of the Department of Toxic
Substances Control under Section 25257.1 of the Health and Safety
Code to fully implement Article 14 (commencing with Section 25251) of
Chapter 6.5 of Division 20 of the Health and Safety Code, including
the authority of the department to include a carpet in its product
registry.