BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                               AB 1019
                                                                       

                      SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
                        Senator S. Joseph Simitian, Chairman
                              2011-2012 Regular Session
                                           
           BILL NO:    AB 1019
           AUTHOR:     John A. Pérez
           AMENDED:    September 2, 2011
           FISCAL:     Yes               HEARING DATE:   September 7, 
           2011
           URGENCY:    Yes               CONSULTANT:      Caroll 
           Mortensen
            
           SUBJECT  :    CARPET RECYCLING

            SUMMARY  :    
           
            Existing law  :

           1) Establishes a Carpet Product Stewardship Program for the 
              purpose of increasing the amount of postconsumer carpet 
              that is diverted from landfills (Public Resources Code 
              §42970 et seq.). 

           2) Prohibits carpet producers and retailers from selling 
              carpet in California unless the producer or a carpet 
              stewardship organization has submitted a stewardship plan 
              to the Department of Resources Recycling and Recovery 
              (DRRR) with the goal of increasing the recycling of 
              postconsumer carpet 
              (§42974).  

           3) Requires, on and after July 1, 2011, but not on or after 
              January 1, 2013, a manufacturer of carpet shall add a 
              carpet stewardship assessment of five cents ($0.05) per 
              square yard to the purchase price of all carpet sold in the 
              state by that manufacturer. The assessment shall be 
              remitted on a quarterly basis, as appropriate, to the 
              stewardship organization to begin early action measures for 
              carpet recycling and to support the implementation of the 
              stewardship plans (§42972.5). 

           4) Proposition 26, approved by the voters by initiative on 
              November 2, 2010, amends Article XIII A of the California 









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              Constitution to provide that certain levies, charges, or 
              exactions imposed by the state and adopted after January 1, 
              2010, but before November 3, 2010, is void 12 months after 
              the November 3, 2010, effective date of Proposition 26 
              unless it is reenacted in compliance with the requirements 
              of Article XIII A of the California Constitution.

            This bill  reenacts the state law that enacted the Carpet 
           Product Stewardship Program and provides that it will continue 
           to be operative on and after November 3, 2011. 

            COMMENTS  :
            
           1) AB 1019 referred to Committee pursuant to Rule 29.10  .  
              September 2, 2011 Senate Floor amendments removed the 
              provisions heard by the Committee on June 20, 2011 and 
              added a provision, with an urgency clause, to reenact the 
              Carpet Product Stewardship Program that was not heard by 
              the Committee.  This new provision is necessary to remove 
              any uncertainty that the program will continue to be 
              implemented. 

            2) Purpose of Bill  .  Proposition 26, approved by the voters by 
              initiative on November 2, 2010, amends Article XIII A of 
              the California Constitution to provide that certain levies, 
              charges, or exactions imposed by the state and adopted 
              after January 1, 2010, but before November 3, 2010, is void 
              12 months after the November 3, 2010, effective date of 
              Proposition 26 unless it is reenacted in compliance with 
              the requirements of Article XIII A of the California 
              Constitution. AB 1019 will remove any uncertainty that the 
              program will continue to be implemented. 

              This bill would reenact the state law that enacted the 
              carpet stewardship program and would provide that law 
              continues to be operative on and after November 3, 2011.  
              This bill would declare that it is to take effect 
              immediately as an urgency statute.

              DRRR is beginning implementation of the Carpet Stewardship 
              Program. The nickel per yard assessment is being collected 
              as of July 1, 2011.  DRRR is working on draft regulations 
              to implement the Program.  Carpet manufacturers are working 









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              on early action items to increase carpet recycling and the 
              first stewardship plans by the carpet manufacturers are due 
              September 20, 2011.

            SOURCE  :        Assembly Member John A. Pérez  

           SUPPORT  :       Bentley Prince Street, Inc.
                          Blue Ridge Commercial Carpet
                          California Retailers Association
                          Carpet and Rug Institute 
                          City of San Francisco
                          County of San Francisco
                          Dixie Group, Inc.
                          Los Angeles Fiber
                          Shaw Industries Group, Inc.  

           OPPOSITION  :    Howard Jarvis Taxpayers Association