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 AB 1019 Page 2 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 AB 1019 Page 3 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