Amended in Senate April 15, 2013

Amended in Senate April 1, 2013

Senate BillNo. 254


Introduced bybegin delete Senatorend deletebegin insert Senatorsend insert Hancockbegin insert and Correaend insert

February 13, 2013


An act to add Chapter 21 (commencing with Section 42985) to Part 3 of Division 30 of the Public Resources Code, relating to solid waste.

LEGISLATIVE COUNSEL’S DIGEST

SB 254, as amended, Hancock. Solid waste: used mattresses: recycling and recovery.

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(1) Existing

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begin insertExistingend insert law requires a retailer of various specified products, such as rechargeable batteries and cellular telephones, sold in the state to have in place a system for the acceptance and collection of those products for reuse, recycling, or proper disposal.

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This bill would establish the Used Mattress Recovery and Recycling Act. The bill would authorize a qualified industry association, as defined, to establish a mattress recycling organization, as defined, and be certified by the Department of Resources Recycling and Recovery to develop, implement, and administer a mattress recycling program on or before July 1, 2014. The bill would require manufacturers and retailers of mattresses to register with the mattress recycling organization on or before January 1, 2015.

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This bill would prohibit, on and after January 1, 2015, the manufacturer or retailer from, among other things, manufacturing or selling a mattress in this state under circumstances of noncompliance with the bill’s requirements. The act would require the retailer, by July 1, 2014, 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.

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This bill would require the mattress recycling organization, by April 1, 2015, to develop a state plan for recycling used mattresses in the state that includes specified goals and elements and to submit the plan to the department, as specified. The bill would require the organization, by July 1, 2015, to annually prepare and approve a proposed program plan budget for the next calendar year and to submit the approved budget to the department, as specified. The bill would require the department to notify the organization of the department’s direct costs in implementing the act and the organization would be required to reimburse the department for those costs. The bill would require the department to deposit these amounts submitted by the organization into the Used Mattress Recycling Account, which the bill would establish in the Integrated Waste Management Fund. The bill would require the department to expend the moneys in the account, upon appropriation by the Legislature, to administer and enforce the act.

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This bill would require the organization to annually set the amount of a state mattress recycling charge that would be added to the purchase price of a mattress, and would require a manufacturer, retailer, wholesaler, distributor, or other party that sells a mattress to add the charge to the purchase price for the mattress and remit the charge collected to the organization. The bill would constitute a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIII A of the California Constitution, and thus would require for passage the approval of 23 of the membership of each house of the Legislature.

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This bill would authorize the department to impose an administrative civil penalty on a manufacturer or retailer who sells a mattress in violation of the act. The bill would require the department to deposit these penalties into the Mattress Recovery and Recycling Penalty Account, which the bill would create in the Integrated Waste Management Fund. The department would be authorized to expend the moneys in that account, upon appropriation by the Legislature, to implement the act.

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This bill would establish the Used Mattress Recovery and Recycling Act and would define terms for purposes of the act. The bill would require a manufacturer of mattresses sold in this state, individually, collectively, or through a stewardship organization, to provide in an electronic format an interim plan to the Department of Resources Recycling and Recovery by April 1, 2014, that ensures that the manufacturer will be responsible for the collection and recycling of used mattresses generated by consumers. The bill would require a manufacturer to implement the interim plan by July 1, 2014, and to continue implementation until a mattress stewardship plan is approved, conditionally approved, or disapproved by the department.

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The bill would require a manufacturer of mattresses sold in this state, individually, collectively, or through a stewardship organization, to submit a mattress stewardship plan to the department by April 1, 2015. The bill would specify the requirements to be included in the plan, including meeting specified recycling goals. The bill would specify a procedure for the department’s approval, disapproval, or conditional approval of a plan.

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The bill would require a retailer of mattresses on and after July 1, 2014, to offer the consumer the option of picking up a used mattress, at the time a new mattress is delivered to the consumer, at no additional cost to the consumer.

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The bill would prohibit a manufacturer or retailer from selling or offering for sale a mattress to any person in this state unless the manufacturer is in compliance with the act and would prohibit a manufacturer from selling a mattress on or after August 1, 2015, if the manufacturer is not covered by an approved or conditionally approved plan. The bill would require the department, by August 1, 2015, except as specified, and by July 1 annually thereafter, to post on its Internet Web site a listing of manufacturers that have submitted a plan and to annually post a listing of manufacturers in compliance with the act. The bill would require retailers that distribute or sell mattresses to monitor the department’s Internet Web site to determine if the manufacturer of a mattress is in compliance with the requirements of the act.

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The bill would require a manufacturer, individually, collectively, or through a stewardship organization, to submit an annual report to the department describing its mattress stewardship efforts. The bill would require the department to review the annual report within 90 days of receipt and adopt a finding of compliance or noncompliance with the requirements of the act. The bill would authorize the department to require a manufacturer or stewardship organization submitting that annual report that is not meeting the act’s requirements, to amend and resubmit the plan and would require the department to remove the manufacturer’s name from the listing of manufacturers that are in compliance, until as specified.

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The bill would require recyclers and renovators, as defined, to submit an annual report to the department regarding mattresses received and recycled and would require the operator of a solid waste facility to submit an annual report to the department regarding the number of used mattresses received and designated for recycling or renovation in the state during the preceding calendar year.

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The bill would authorize the department to require a manufacturer to pay the department a quarterly administrative fee, as determined by the department.

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The bill would require these fees to be deposited into the Mattress Recovery and Recycling Account, which the bill would establish in the Integrated Waste Management Fund. The bill would provide that the moneys in the account would be available for expenditure by the department, upon appropriation by the Legislature.

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The bill would require a manufacturer or stewardship organization to provide the department with reasonable and timely access, as determined by the department, to its facilities or operations, and to provide the department with any relevant records. The bill would require the records to be maintained and accessible for 3 years. The bill would require all reports and records to be provided to the department under penalty of perjury, thereby imposing a state-mandated local program by creating a new crime.

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The bill would allow the department to impose an administrative civil penalty in specified amounts on a manufacturer, stewardship organization, or retailer that is in violation of the act. The bill would require the department to deposit all penalties collected into the Mattress Recovery and Recycling Penalty Account, which the bill would establish in the Integrated Waste Management Fund. The bill would provide that the moneys in the penalty account would be available for expenditure by the department, upon appropriation by the Legislature. The bill would also authorize the department to take other actions to enforce the act.

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(2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

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This bill would provide that no reimbursement is required by this act for a specified reason.

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Vote: begin deletemajority end deletebegin insert23end insert. Appropriation: no. Fiscal committee: yes. State-mandated local program: begin deleteyes end deletebegin insertnoend insert.

The people of the State of California do enact as follows:

P5    1

SECTION 1.  

Chapter 21 (commencing with Section 42985)
2is added to Part 3 of Division 30 of the Public Resources Code, to
3read:

4 

5Chapter  21. Used Mattress Recovery and Recycling Act
6begin insert
7

begin insert42985.end insert  

The Legislature finds and declares both of the following:

8(a) In order to reduce illegal dumping, increase recycling, and
9substantially reduce public agency costs for the end-of-life
10management of used mattresses, the Used Mattress Recovery and
11Recycling Act is hereby established by this chapter to require
12manufacturers and retailers of mattresses sold in this state to
13develop, finance, and implement a convenient and cost-effective
14program to recover and recycle used mattresses generated in this
15state.

16(b) Consistent with existing state policy, the program developed
17and implemented by manufacturers and retailers of mattresses
18sold in this state shall strive for the maximum feasible level of
19recovery and recycling of used mattresses generated in support
20of the statewide goal that at least 75 percent of all solid waste be
21recycled by January 1, 2020.

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22

begin insert42985.1.end insert  

This chapter shall be known, and may be cited, as
23the Used Mattress Recovery and Recycling Act.

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24 

25Article begin insert1.end insert  Definitions
26

 

27

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(a) (1) “Consumer” means an owner of a mattress,
28including a person, business, corporation, limited partnership,
29nonprofit organization, or governmental entity, and including the
30ultimate purchaser, owner, or lessee of a mattress.

31(2) “Consumer” does not include a government organization
32or other party that obtains one or more used mattresses in the
33course of collecting used mattresses for recycling for purposes of
34this chapter, or through the ordinary collection and handling of
35municipal solid waste.

36(b) “Distributor” means a company that has a contractual
37relationship with one or more manufacturers to market and sell
38mattresses to retailers.

P6    1(c) “Foundation” means a ticking-covered structure used to
2support a mattress or sleep surface. The structure may include
3constructed frames, foam, box springs, or other materials, used
4alone or in combination.

5(d) “Importer” means a party qualifying as an “importer of
6record” for purposes of Section 1484(a)(2)(B) of Title 19 of the
7United States Code, with regard to the import of a finished mattress
8sold in the state that was manufactured or assembled by a company
9outside the United States.

10(e) “Manufacturer” means any of the following:

11(1) The person who manufactures the covered product and who
12sells, offers for sale, or distributes that product in the state.

13(2) If there is no person who is a manufacturer of the product
14for purposes of paragraph (1), the manufacturer of the covered
15product is the person who imports the product into the state for
16sale or distribution.

17(3) A manufacturer includes a renovator.

18(f) (1) “Mattress” means a resilient material or combination
19of materials that is enclosed by a ticking, is used alone or in
20combination with other products, and is intended for or promoted
21for sleeping upon.

22(2) “Mattress” includes a foundation and a renovated mattress
23or renovated foundation.

24(3) “Mattress” does not include the following:

25(A) An unattached mattress pad or unattached mattress topper,
26including items with resilient filling, with or without ticking,
27intended to be used with or on top of a mattress.

28(B) A sleeping bag or pillow.

29(C) A car bed, crib, or bassinet mattress.

30(D) Juvenile products, including a carriage, basket, dressing
31table, stroller, playpen, infant carrier, lounge pad, or crib bumper,
32and the pads for those juvenile products.

33(E) A product containing liquid- and gaseous-filled ticking,
34including a water bed and air mattress that does not contain
35upholstery material between the ticking and the mattress core.

36(F) Upholstered furniture that does not otherwise contain a
37detachable mattress.

38(g) “Mattress recycling organization” or “organization” means
39an organization exempt from taxation under Section 501(c)(3) or
40Section 501(c)(6) of the Internal Revenue Code of 1986, that is
P7    1established by a qualified industry association, composed of
2manufacturers and retailers, and certified pursuant to Section
342987, to develop, implement, and administer the mattress
4recycling program established pursuant to this chapter.

5(h) “Used mattress recovery and recycling plan” or “plan”
6means the plan for recycling used mattresses that is developed by
7the mattress recycling organization pursuant to this chapter.

8(i) “Program” or “used mattress recycling program” means
9the program implemented by the mattress recycling organization
10pursuant to a plan approved by the department.

11(j) “Qualified industry organization” means the International
12Sleep Products Association, a successor of that organization, or
13a group of mattress manufacturers that collectively represent at
14least 35 percent of the volume of mattresses manufactured in the
15United States.

16(k) “Recycle” or “recycling” has the same meaning as defined
17in Section 40180.

18(l) “Recycler” means a person that engages in the manual or
19mechanical separation of mattresses to substantially recover
20components and commodities contained in mattresses for the
21purpose of reuse or recycling.

22(m) “Recycling charge” or “charge” means the charge imposed
23on the sale of a new or renovated mattress at the point of sale and
24collected by the organization to fund the recycling of used
25mattresses pursuant to this chapter.

26(n) (1) “Renovate” or “renovation” means altering a used
27mattress for the purpose of resale and includes one or more of the
28following:

29(A) Replacing the mattress, ticking, or filling.

30(B) Adding additional filling.

31(C) Rebuilding a used mattress.

32(D) Replacing components with new or postconsumer materials
33unless the material is a clean recycled material, consists of used
34electronic parts or controls, or is a used mattress base that is not
35covered by ticking.

36(2) “Renovate” or “renovation” does not include any of the
37following:

38(A) Stripping a mattress of its ticking or filling without adding
39new material.

P8    1(B) Sterilizing or sanitizing a mattress without otherwise altering
2the mattress.

3(C) Altering a mattress by a renovator when a person retains
4the altered mattress for lease, rental, or personal use.

5(D) Refurbishing that disqualifies a mattress for a yellow
6wholesale renovator tag to be affixed to the mattress, in accordance
7with the regulations adopted by the Department of Consumer
8Affairs.

9(o) “Renovator” means a person who renovates used mattresses.

10(p) “Retailer” means a person who sells mattresses in the state
11or offers to a consumer a mattress in the state through any means,
12including, but not limited to, by remote offering, including sales
13outlets or catalogs, electronically through the Internet, by
14telephone, or through the mail.

15(q) “Sale” or “sell” means the transfer of title of a mattress
16for consideration, including by a manufacturer, a distributor, or
17a retailer for eventual consumption to a consumer in the state,
18including remote sales conducted through sales outlets, catalogs,
19or the Internet or any other similar electronic means. For purposes
20of this chapter, a long-term lease of not less than 12 months is the
21same as a sale.

22(r) (1) “Ticking” means the outermost layer of fabric or related
23material of a mattress.

24(2) “Ticking” does not include another layer of fabric or related
25material that is quilted together with, or otherwise attached to,
26the outermost layer of fabric or related material.

27(s) “Used mattress” means a mattress that has been discarded
28by a consumer.

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29 

30Article begin insert2.end insert  Mattress Recycling Plan
31

 

32

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(a) (1) On or before July 1, 2014, a qualified industry
33association or a successor organization may establish a mattress
34recycling organization for purposes of this chapter, which shall
35be composed of manufacturers and retailers and be certified
36pursuant to this section to develop, implement, and administer the
37mattress recycling program established pursuant to this chapter.

38(2) Within 60 days of receipt of a request for certification, the
39department shall notify the requesting qualified industry
P9    1association of the department’s decision whether or not to certify
2that association.

3(b) On or before January 1, 2015, each manufacturer and
4retailer shall register with the mattress recycling organization.

5(c) On and after January 1, 2015, a retailer shall not sell,
6distribute, or offer for sale a mattress in the state unless the retailer
7is in compliance with this chapter and the manufacturer of the
8mattress sold by the retailer is listed in compliance with this
9chapter.

10(d) On and after January 1, 2015, a manufacturer shall not
11manufacture, assemble, or import a new mattress in this state, or
12sell or distribute a mattress to a distributor or retailer, unless the
13manufacturer is in compliance with this chapter.

14

begin insert42987.1.end insert  

On or before April 1, 2015, the mattress recycling
15organization shall develop and submit to the department a plan
16for recycling used mattresses in the state that includes all of the
17following goals and elements:

18(a) Program objectives consistent with the state’s solid waste
19management hierarchy.

20(b) The names of manufacturers and brands covered under the
21plan.

22(c) A consultation process with affected stakeholders.

23(d) Methods to increase the number of used mattresses diverted
24from landfills, reduce the number of illegally dumped used
25mattresses, and increase the quantity of used materials recovered
26through this process and recycled for other uses.

27(e) (1) The establishment and administration of a means for
28funding the plan in a manner that distributes the mattress recycling
29organization’s costs uniformly over all mattresses sold in the state.

30(2) The funding mechanism shall provide sufficient funding for
31the mattress recycling organization to carry out the plan, including
32the administrative, operational, and capital costs of the plan.

33(f) The publishing of an annual report for each calendar year
34of operation.

35(g) Conducting research, as needed, related to improving used
36mattress collection, dismantling, and recycling operations,
37including pilot programs to test new processes, methods, or
38equipment on a local, regional, or otherwise limited basis.

39(h) Establishing a methodology for the purpose of determining
40the state mattress recycling goal.

P10   1(i) A program performance measurement that shall collect
2program data for the purpose of the annual report. The information
3shall include:

4(1) A methodology for estimating the amount of mattresses sold
5in the state, used mattresses available for collection in the state,
6and for quantifying the number of used mattresses collected and
7recycled in the state.

8(2) A methodology for determining mattresses sold in the state
9by the manufacturers of the mattress recycling organization.

10(j) Coordinating activities with existing used product collecting
11and recycling plans for discarded mattresses or other products,
12and other relevant parties as appropriate, to provide efficient
13delivery of services and avoid unnecessary duplication of effort
14and expense.

15(k) Entering into contracts or agreements that are necessary
16and proper for the mattress recycling organization to carry out
17these duties consistent with the terms of this chapter.

18(l) Establishment of a financial incentive to encourage parties
19to collect for recycling used mattresses discarded or illegally
20dumped in the state.

21(m) Ensuring local governments and solid waste facilities are
22provided with a mechanism for the recovery of illegally dumped
23used mattresses at no additional cost to the local government or
24solid waste facility.

25(n) Policies to ensure there are adequate and convenient
26opportunities for the collection, acceptance, and recovery for
27recycling used mattresses in low-income communities, in
28accordance with the poverty line annually established by the
29Secretary of California Health and Human Services pursuant to
30the federal Omnibus Budget Reconciliation Act of 1981 (Public
31Law 97-35), as amended.

32(o) Ensuring used mattresses recovered by a retailer are
33delivered to a recycling facility or solid waste facility for recycling.

34(p) Providing outreach efforts and education to consumers,
35manufacturers, and retailers, for the purpose of promoting the
36recycling of used mattresses.

37(q) Procedures to ensure implementation of the plan if a
38manufacturer or the mattress recycling organization no longer
39exists due to bankruptcy, dissolution, or similar processes.

P11   1(r) (1) Ensuring solid waste facilities offer individuals free
2drop-off of used mattresses.

3(2) Reimbursement of solid waste facilities for the reasonable
4costs incurred of collecting, storing, and processing used
5mattresses in paragraph (1).

6(s) Any information deemed necessary by the department related
7to compliance with the plan.

8

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In preparing the plan pursuant to Section 42987.1,
9the mattress recycling organization shall consult with interested
10stakeholders.

11

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(a) The department shall review the plan and shall
12approve, disapprove, or conditionally approve the plan within 90
13days of receipt of the plan.

14(b) If the department disapproves the plan pursuant to
15subdivision (a), the mattress recycling organization shall resubmit
16a plan to the department. If the mattress recycling organization
17does not resubmit a plan, or submits a plan that is not approved
18or conditionally approved by the department, the mattress recycling
19organization shall be deemed not in compliance with this chapter.

20(c) The approved plan shall be a public record, except that
21financial, production, or sales data reported to the department by
22the mattress recycling organization is not public record for
23purposes of the California Public Records Act (Chapter 3.5
24(commencing with Section 6250) of Division 7 of Title 1 of the
25Government Code) and shall not be open to public inspection. The
26department may release financial, production, or sales data in
27summary form only so the information cannot be attributable to
28a specific manufacturer or retailer.

29

begin insert42987.4.end insert  

Within 30 days after approval or conditional approval
30by the department, the mattress recycling organization shall
31implement the approved plan.

32

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(a) On or before January 1, 2017, based on
33methodology contained in the plan and information contained in
34the first annual report, the department shall establish and make
35public the following:

36(1) The state mattress recycling baseline amount.

37(2) The state mattress recycling goals.

38(b) On or before July 1, 2020, and every four years thereafter,
39the department shall review, including reviewing for consistency
40with Section 41780.01, and update as necessary the baseline
P12   1amount and goals to ensure that the program advances the
2statewide recycling goal.

end insert
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3 

4Article begin insert3.end insert  Budget
5

 

6

begin insert42988.end insert  

On or before July 1, 2015, and on or before July 1
7annually thereafter, the mattress recycling organization shall
8prepare and submit to the department a proposed used mattress
9recycling program budget for the following calendar year that
10includes all of the following:

11(a) Anticipated revenues and costs of implementing the program,
12including related programs, projects, contracts, and administrative
13expenses.

14(b) A recommended funding level sufficient to cover the plan’s
15costs and to operate the mattress recycling program over a
16multiyear period in a prudent and responsible manner.

17(c) The amount of the mattress recycling charge and itemization
18of costs that each charge covers.

19

begin insert42988.1.end insert  

(a) On or before September 1, 2015, and annually
20thereafter, the department shall approve, disapprove, or
21conditionally approve a final program budget.

22(b) (1) If the department disapproves the budget, the mattress
23recycling organization shall resubmit a revised budget addressing
24the department’s reasons for its decision within 30 days of the
25disapproval.

26(2) The department, within 30 days from the date the mattress
27recycling organization resubmits a revised budget, shall approve,
28disapprove, or conditionally approve a final program budget.

29

begin insert42988.2.end insert  

(a) The department shall notify the mattress recycling
30organization of the department’s costs in implementing this chapter
31relating to the mattress recycling organization’s activities pursuant
32to this chapter.

33(b) On or before July 1, 2015, and once every three months
34thereafter, and within the fiscal year, the mattress recycling
35organization shall reimburse the department for costs the
36department incurs related to the mattress recycling organization’s
37activities pursuant to this chapter.

38(c) The department shall deposit all moneys submitted for
39reimbursement costs by the mattress recycling organization
40pursuant to this section into the Used Mattress Recycling Account,
P13   1which is hereby established in the Integrated Waste Management
2Fund. Upon appropriation by the Legislature, moneys in the
3account shall be expended by the department to administer and
4enforce this chapter. The funds collected pursuant to this section
5shall not be expended for any other purpose.

end insert
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6 

7Article begin insert4.end insert  Mattress Recycling Charge
8

 

9

begin insert42989.end insert  

(a) The mattress recycling organization shall set the
10amount of the mattress recycling charge that shall be added to the
11purchase price of a mattress at the point of sale and include the
12charge amount in the annual budget.

13(b) The amount of the state mattress recycling charge shall be
14sufficient to fund the revenue requirements set forth in the approved
15budget.

16(c) Changes in the charges shall be made public by the mattress
17recycling organization 60 days before taking effect.

18(d) The charge shall be included in the annual program budget
19for approval by the department.

20

begin insert42989.1.end insert  

(a) Each manufacturer, retailer, or distributor that
21sells a mattress to a consumer or to the ultimate end user of the
22mattress in the state shall add the charge to the purchase price of
23the mattress and shall remit the charge collected to the mattress
24recycling organization.

25(b) In each transaction described in subdivision (a), the charge
26shall be clearly visible on the invoice or functionally equivalent
27billing document provided by the seller to the consumer as a
28separate line item.

29(c) The mattress recycling organization shall develop
30reimbursement criteria to enable retailers to recover administrative
31costs associated with collecting the charge.

32(d) The mattress recycling organization shall determine the
33rules and procedures that are necessary and proper to implement
34the collection of the charge in a fair, efficient, and lawful manner.

35

begin insert42989.2.end insert  

(a) The mattress recycling organization may conduct
36an audit of those parties that are required to remit the charge to
37the mattress recycling organization to verify that the charges paid
38are proper and accurate and to ensure all parties required by this
39chapter to pay or collect the charge are paying or collecting the
40proper amount.

P14   1(b) An audit conducted pursuant to this section shall be carried
2out in accordance with generally accepted auditing practices and
3shall be limited in scope to confirming whether the charge has
4been properly collected on all sales of mattresses to consumers in
5the state.

6(c) For purposes of conducting audits pursuant to this section,
7the mattress recycling organization shall hire independent
8third-party auditors that are approved by the department.

9(d) If the mattress recycling organization conducts an audit
10pursuant to this section, the organization shall provide a copy of
11the audit to the department upon request by the department.

12

begin insert42989.3.end insert  

(a) The mattress recycling organization shall deposit
13the charges and other moneys collected by the mattress recycling
14organization pursuant to this chapter in accounts that are
15maintained and disbursed by the organization.

16(b) The mattress recycling organization may enter into a joint
17venture, agreements, or contracts with third parties, including,
18but not limited to, corporations, partnerships, nonprofit entities,
19and governmental agencies, to undertake activities on the mattress
20recycling organization’s behalf that are consistent with this
21chapter.

end insert
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22 

23Article begin insert5.end insert  Records, Audits, and Annual Report
24

 

25

begin insert42990.end insert  

(a) The mattress recycling organization shall keep
26minutes, books, and records that clearly reflect the activities and
27transactions of the mattress recycling organization.

28(b) The books of the mattress recycling organization shall be
29audited at the organization’s expense by a certified public
30accountant retained by the organization and approved by the
31department at least once each calendar year.

32(c) The mattress recycling organization shall arrange for the
33audit to be delivered to the department. The department shall
34review the audit for compliance with this chapter and consistency
35with the plan created pursuant to this chapter. The department
36shall notify the mattress recycling organization of any compliance
37issues or inconsistencies. The mattress recycling organization may
38obtain copies of the audit upon request. The department shall not
39disclose any confidential proprietary information in the audit.

P15   1

begin insert42990.1.end insert  

On or before April 1, 2016, and each year thereafter,
2the mattress recycling organization shall submit to the department
3and make publicly available on its Internet Web site a report that
4includes, for the preceding calendar year, all of the following:

5(a) The mattress recycling organization’s costs and revenues.

6(b) The quantity of mattresses disposed of in solid waste
7landfills, which shall be provided by the department to interested
8parties.

9(c) The quantity of discarded used mattresses collected for
10recycling in the program.

11(d) The quantity of used mattresses collected for recycling from
12different categories of sources.

13(e) The quantity of each category of materials recycled.

14(f) The uses for the recycled materials.

15(g) The quantity of otherwise disposed of materials.

16(h) A description of methods used to collect, transport, and
17process waste mattresses in this state.

18(i) Examples of educational materials that were provided to
19consumers the first year and any changes to those materials in
20subsequent years.

21(j) The total volume, number, and weight of used mattresses
22collected recycled, renovated, and reused in this state during the
23preceding calendar year, including any conversion factor used to
24determine the number of mattresses recovered.

25(k) Other information relevant to compliance with the plan.

end insert
begin insert

26 

27Article begin insert6.end insert  Mattress Recycling and Renovating
28

 

29

begin insert42991.end insert  

(a) On or before April 1, 2016, and annually thereafter,
30a person that is engaged in business as a recycler or renovator
31shall submit a report to the department that includes the following:

32(1) Quantitative information on the number of mattresses
33received and recycled or renovated in the state during the
34preceding calendar year.

35(2) Any information deemed necessary by the department related
36to compliance with this chapter.

37(b) For purposes of determining the recycling rate for a used
38mattress, on or before April 1, 2016, and annually thereafter, a
39solid waste landfill facility operator shall report to the department,
40in a form and manner determined by the department, regarding
P16   1the number of used mattresses received and designated for
2recycling or renovation within the state in the preceding calendar
3year.

end insert
begin insert

4 

5Article begin insert7.end insert  Retailer Used Mattress Take-back
6

 

7

begin insert42992.end insert  

On and after July 1, 2014, a retailer shall offer a
8consumer the option to have a used mattress picked up for recovery
9at the time of delivery, at no additional cost to the consumer, if a
10new mattress is delivered to the consumer.

end insert
begin insert

11 

12Article begin insert8.end insert  Enforcement
13

 

14

begin insert42993.end insert  

(a) On or before July 1, 2016, and annually thereafter,
15the department shall post on its Internet Web site a list of
16manufacturers and retailers that are in compliance with this
17chapter.

18(b) A manufacturer or retailer that is not listed on the
19department’s Internet Web site pursuant to this section, but
20demonstrates compliance with this chapter before the next notice
21is required to be posted pursuant to this section, may request a
22certification letter from the department stating the manufacturer
23or retailer is in compliance. The manufacturer or retailer that
24receives the letter shall be deemed to be in compliance with this
25chapter.

26(c) A retailer that distributes or sells a mattress shall monitor
27the department’s Internet Web site to determine if a manufacturer
28is in compliance with this chapter. A retailer otherwise in
29compliance with this chapter shall be deemed in compliance with
30the chapter if, on the date the retailer ordered or purchased a
31mattress, or within seven calendar days before or after that date,
32the manufacturer was listed as covered or compliant on the
33department’s Internet Web site.

34(d) If the department determines a manufacturer or retailer is
35not in compliance with this chapter, the department shall remove
36the manufacturer or retailer from the department’s Internet Web
37site pursuant to this section and the manufacturer or retailer shall
38not sell a mattress in the state until the department determines the
39manufacturer or retailer is in compliance with this chapter.

P17   1

begin insert42993.1.end insert  

(a) The department may impose an administrative
2civil penalty on any manufacturer, mattress recycling organization,
3recycler, renovator, or retailer that is in violation of this chapter.
4The amount of the administrative civil penalty shall not exceed
5five hundred dollars ($500) per day, but, if the violation is
6intentional, knowing, or reckless, the department may impose an
7administrative civil penalty of not more than five thousand dollars
8($5,000) per day.

9(b) The department shall not impose a penalty on the mattress
10recycling organization pursuant to this section for a failure to
11comply with this chapter if the organization demonstrates it
12received false or misleading information from a member of the
13organization that was the direct cause of its failure to comply.

14(c) The department shall deposit all penalties collected pursuant
15to this section into the Mattress Recovery and Recycling Penalty
16Account, which is hereby created in the Integrated Waste
17Management Fund. Upon appropriation by the Legislature, moneys
18deposited into the Mattress Recovery and Recycling Penalty
19Account may be expended by the department to administer and
20enforce this chapter.

21

begin insert42993.2.end insert  

Upon finding that a manufacturer, mattress recycling
22organization, or retailer has not met a requirement of this chapter,
23in addition to any other penalties authorized under this chapter,
24the department may take any of the following actions to ensure
25compliance with the requirements of this chapter:

26(a) Revoke the mattress recycling organization’s plan approval,
27amend an approval or conditional approval to include new
28conditions, or require the mattress recycling organization to
29resubmit the plan.

30(b) Remove the manufacturer or retailer from the department’s
31Internet Web site and list of compliant manufacturers and retailers,
32as specified in Section 42993.

33(c) Require additional reporting requirements.

34

begin insert42993.3.end insert  

(a) A manufacturer and mattress recycling
35organization shall do both of the following:

36(1) Upon request, provide the department with reasonable and
37timely access, as determined by the department and as authorized
38pursuant to Title 13 (commencing with Section 1822.50) of Part
393 of the Code of Civil Procedure, to its facilities and operations,
40as necessary to determine compliance with this chapter.

P18   1(2) Upon request, provide the department with relevant records
2necessary to determine compliance with this chapter.

3(b) The records required by this chapter shall be maintained
4and accessible for three years. All reports and records provided
5to the department pursuant to this chapter shall be provided under
6penalty of perjury.

7(c) The department may take disciplinary action against a
8manufacturer or mattress recycling organization if the
9manufacturer or mattress recycling organization fails to provide
10the department with the access required pursuant to this section,
11including, but not limited to, imposing penalties pursuant to Section
1242993.1 and posting an immediate notice on the department’s
13Internet Web site pursuant to Section 42993 that the manufacturer
14is no longer in compliance with this chapter.

end insert
begin insert

15 

16Article begin insert9.end insert  Antitrust Immunity
17

 

18

begin insert42994.end insert  

(a) Except as provided in subdivision (c), an action
19specified in subdivision (b) that is taken by a stewardship
20organization or its members that relates to any of the following is
21not a violation of the Cartwright Act (Chapter 2 (commencing with
22Section 16700) of Part 2 of Division 7 of the Business and
23Professions Code), the Unfair Practices Act (Chapter 4
24(commencing with Section 17000) of Part 2 of Division 7 of the
25Business and Professions Code), or the Unfair Competition Law
26(Chapter 5 (commencing with Section 17200) of Part 2 of Division
277 of the Business and Professions Code).

28(b) Subdivision (a) shall apply to all of the following actions
29taken by the mattress recycling organization or a manufacturer:

30(1) The creation, implementation, or management of a plan
31approved by the department pursuant to Article 2 (commencing
32with Section 42987) and the types or quantities of used mattresses
33recycled or otherwise managed pursuant to a plan, as described
34in Article 2 (commencing with Section 42987).

35(2) The cost and structure of an approved plan.

36(3) The establishment, administration, or disbursement of the
37costs associated with funding the implementation of this chapter.

38(c) Subdivision (a) shall not apply to an agreement that does
39any of the following:

P19   1(1) Fixes a price of or for mattresses, except for an agreement
2related to costs associated with participation in a plan approved
3or conditionally approved by the department and otherwise in
4accordance with this chapter.

5(2) Fixes the output of production of mattresses.

6(3) Restricts the geographic area in which, or customers to
7whom, mattresses will be sold.

end insert

All matter omitted in this version of the bill appears in the bill as amended in the Senate, April 1, 2013. (JR11)



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