Amended in Assembly August 6, 2013

Amended in Senate May 28, 2013

Amended in Senate April 15, 2013

Amended in Senate April 1, 2013

Senate Bill No. 254

Introduced by Senators Hancock and Correa

(Principal coauthor: Senator Calderon)

(Coauthor: Senator Corbett)

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.

Existing 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.

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 begin delete defined, and be certified by the end delete begin insert defined. The bill would authorize the end insert Department of Resources Recycling and Recovery to begin insert certify that a mattress recycling organization has been established. The bill would require the mattress recycling organization to end insert develop, implement, and administer a mattress recycling program begin delete on or before July 1, 2014 end delete begin insert pursuant to the act end insert . The bill would require begin delete manufacturers end delete begin insert manufacturers, renovators, end insert and retailers of mattresses to register with the mattress recycling organization on or before January 1, 2015.

This bill would prohibit, on and after begin delete January end delete begin insert May end insert 1, 2015, the manufacturer or begin delete retailer end delete begin insert renovator end insert from, among other things, begin delete manufacturing or end delete selling begin insert in, or importing end insert a mattress begin delete in end delete begin insert into, end insert this state under circumstances of noncompliance with the bill’s requirements begin insert and would prohibit a retailer, on and after January 1, 2015, from selling a mattress under circumstances of noncompliance end insert . 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 or be provided with an opportunity for free begin delete drop off end delete begin insert dropoff end insert of the used mattress.

This bill would require the mattress recycling organization, by begin delete April end delete begin insert July end insert 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 plan would be required to include, among other things, providing a mechanism to local governments and solid waste facilities to recover illegally disposed mattresses that is funded, as specified, and reimbursing solid waste facilities for certain costs. The bill would require the organization, by July 1, 2015, to annually prepare and approve a proposed begin insert used mattress recycling end insert 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 direct 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.

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, begin insert renovator, end insert 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.

This bill would authorize the department to impose an administrative civil penalty on a begin delete manufacturer end delete begin insert manufacturer, organization, recycler, renovator, end insert or retailer begin delete who sells a mattress end delete 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.

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 2⁄3 of the membership of each house of the Legislature.

Vote: ²⁄₃. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

SECTION 1.  

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

 

Chapter  21. Used Mattress Recovery and Recycling Act

42985.  

begin insert (a) end insert begin insert   end insert The Legislature finds and declares both of the
following:

begin delete

(a)

end delete

begin insert ( end insert begin insert 1) end insert  In order to reduce illegal dumping, increase recycling, and
substantially reduce public agency costs for the end-of-life
management of used mattresses, the Used Mattress Recovery and
Recycling Act is hereby established by this chapter to require
manufacturers of mattresses sold in this state to develop, finance,
and implement a convenient and cost-effective program to recover
and recycle used mattresses generated in this state.

begin delete

(b)

end delete

begin insert ( end insert begin insert 2) end insert  The program developed and implemented by manufacturers
of mattresses sold in this state shall strive for the maximum feasible
level of recovery and recycling of used mattresses generated in
support of the statewide goal that at least 75 percent of all solid
waste be recycled by January 1, 2020.

begin insert

(b) It is the intent of the Legislature in enacting this chapter
that consumers have the opportunity to drop off their used
mattresses free of charge.

end insert

42985.1.  

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

 

Article 1.  Definitions

 

42986.  

(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) “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.

(e) (1) “Manufacturer” means any of the following:

(A) The person who manufactures begin delete the covered product end delete begin insert a
mattress end insert and who sells, offers for sale, or distributes begin delete that product
in end delete begin insert a mattress in end insert the state.

(B) If there is no person who is a manufacturer of begin delete the product end delete
begin insert a mattress end insert for purposes of subparagraph (A), the manufacturer begin delete of
the covered product end delete is the person who imports the begin delete product end delete begin insert mattress end insert
into the state for sale or distribution.

begin delete

(2) A manufacturer may include a renovator.

end delete begin delete

(3) A

end delete

begin insert (2) end insert begin insert   end insert begin insert Except as provided pursuant to paragraph (2) of subdivision
(b) of Section 42987, a end insert retailer that brings a mattress into its store
locations from an out-of-state warehouse or distribution center is
not a manufacturer.

(f) (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 and a renovated mattress
or renovated foundation.

(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 or futon.

(g) “Mattress recycling organization” or “organization” means
an organization exempt from taxation under Section 501(c)(3) or
Section 501(c)(6) of the Internal Revenue Code of 1986, that is
established by a qualified industry association, composed of
begin delete manufacturers end delete begin insert manufacturers, renovators, end insert and retailers, and
certified pursuant to Section 42987, to develop, implement, and
administer the mattress recycling program established pursuant to
this chapter.

(h) “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.

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

(j) “Qualified industry association” means begin delete the International
Sleep Products Association, 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 end delete begin insert end insert begin insert a trade association that represents manufacturers that
account for a majority of mattress production in the United States,
or a successor of that organization end insert .

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

(l) “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.

(m) “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.

(n) (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.

(o) “Renovator” means a person who renovates used mattresses
begin insert for the purpose of sale, or offering for sale, in this state end insert .

(p) “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.

(q) “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.

(r) (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.

(s) “Used mattress” means a mattress that has been begin insert abandoned
or end insert discarded by a consumer.

 

Article 2.  Mattress Recycling Plan

 

42987.  

(a) (1) On or before July 1, 2014, a qualified industry
association or a successor organization may establish a mattress
recycling organization for purposes of this chapter, which shall be
composed of begin delete manufacturers end delete begin insert manufacturers, renovators, end insert 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 begin insert a end insert
mattress recycling organization begin insert end insert begin insert 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 end insert .

(b)  begin insert (1) end insert begin insert   end insert On or before January 1, 2015, each begin delete manufacturer end delete
begin insert manufacturer, renovator, end insert and retailer shall register with the
mattress recycling organization.

begin insert

(2) A retailer may register with the mattress recycling
organization as a manufacturer for a brand for which there is not
a registered manufacturer.

end insert

(c) On and after January 1, 2015, 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 begin insert or
renovator end insert of the mattress sold by the retailer is listed in compliance
with this chapter.

(d) On and after begin delete January 1, 2015, a manufacturer shall not
manufacture, assemble, or import a new end delete begin insert May 1, 2015, a
manufacturer or renovator shall not sell, offer for sale, or import
a end insert mattress in this state, or sell or distribute a mattress to a
distributor or retailer, unless the manufacturer begin insert or renovator end insert is in
compliance with this chapter.

42987.1.  

On or before begin delete April end delete begin insert July end insert 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 begin delete manufacturers end delete begin insert manufacturers, renovators, end insert
and brands covered under the plan.

(c) A consultation process with affected begin delete stakeholders end delete
begin insert stakeholders, including, but not limited to, local government
representatives, recyclers, and solid waste industry representatives end insert .

(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.

begin delete

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

end delete begin delete

(i)

end delete

begin insert ( end insert begin insert h) end insert  A program performance measurement that shall collect
program data for the purpose of the annual report. The information
shall include:

(1) A methodology for estimating the amount of mattresses sold
in the state, 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 of the mattress recycling organization.

begin delete

(j) Coordinating activities with existing used product collecting
and recycling plans for discarded mattresses or other products, and
other relevant parties as appropriate, to provide

end delete

begin insert (i) end insert begin insert   end insert begin insert A description of methods used to coordinate activities with
existing used mattress collecting and recycling plans, 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 end insert efficient delivery of services and begin delete avoid end delete begin insert avoiding end insert
unnecessary duplication of effort and expense.

begin delete

(k)

end delete

begin insert (j) end insert  Entering into contracts or agreements that are necessary and
proper for the mattress recycling organization to carry out these
duties consistent with the terms of this chapter.

begin delete

(l)

end delete

begin insert (k) end insert  Establishment of a financial incentive to encourage parties
to collect for recycling used mattresses discarded or illegally
dumped in the state.

begin delete

(m)

end delete

begin insert ( end insert begin insert l) end insert  Ensuring, to the maximum extent possible, that local
governments and solid waste facilities begin insert that are permitted to accept
mattresses end insert are provided with a mechanism for the recovery of
illegally disposed used begin delete mattress end delete begin insert mattresses end insert that is funded at no
additional cost to the local government or solid waste facility.

begin delete

(n)

end delete

begin insert ( end insert begin insert m) end insert  Developing processes to collect used mattresses from
low-income communities for recycling in accordance with the
poverty line annually established by the Secretary of California
Health and Human Services pursuant to the federal Omnibus
Budget Reconciliation Act of 1981 (Public Law 97-35), as
amended.

begin delete

(o)

end delete

begin insert ( end insert begin insert n) end insert  Requiring used mattresses collected by a retailer to be
delivered to a begin insert mattress end insert recycling facility or solid waste facility for
recycling begin insert or proper disposal end insert .

begin delete

(p)

end delete

begin insert ( end insert begin insert o) end insert  Providing outreach efforts and education to consumers,
manufacturers, and retailers, for the purpose of promoting the
recycling of used mattresses.

begin delete

(q)

end delete

begin insert ( end insert begin insert p) end insert  (1) Ensuring, to the maximum extent possible, that solid
waste facilities offer individuals the free dropoff of used mattresses.

(2) Reimbursing solid waste facilities for the reasonable costs
incurred in collecting, storing, and begin delete processing end delete begin insert handling end insert used
mattresses in accordance with paragraph (1).

begin delete

(r)

end delete

begin insert ( end insert begin insert q) end insert  Other information requested by the department that is
reasonably related to compliance with the recycling plan and that
the organization can begin delete readily end delete begin insert reasonably end insert compile.

42987.2.  

In preparing the plan pursuant to Section 42987.1,
the mattress recycling organization shall consult with interested
begin delete stakeholders end delete begin insert stakeholders, which shall include, but not be limited
to, local government representatives, recyclers, and solid waste
industry representatives end insert .

42987.3.  

(a) The department shall review the plan for
begin delete consistency end delete begin insert compliance end insert with this chapter and shall approve,
disapprove, or conditionally approve the plan within 90 days of
receipt of the plan. If the department fails to act within 90 days of
the receipt of the plan, the plan shall be deemed approved.

(b) If the department disapproves the plan pursuant to
subdivision (a), the department shall explain, in writing, how the
plan begin delete is inconsistent end delete begin insert does not comply end insert with this chapter, and the
mattress recycling organization shall resubmit a plan to the
department. If the department finds that the plan resubmitted by
the organization begin delete is inconsistent end delete begin insert does not comply end insert with the
requirements of this chapter, the mattress recycling organization
shall not be deemed in compliance with this chapter until the
organization submits a plan that the department finds begin delete is consistent end delete
begin insert complies end insert with the requirements of this chapter.

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

42987.4.  

Within 60 days after approval or conditional approval
by the department, the mattress recycling organization shall
implement the approved plan.

42987.5.  

(a)  begin insert (1) end insert begin insert   end insert On or before January 1, 2017, 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:

begin delete

(1)

end delete

begin insert ( end insert begin insert A) end insert  The state mattress recycling baseline amount.

begin delete

(2)

end delete

begin insert ( end insert begin insert B) end insert  The state mattress recycling goals.

begin insert

(2) When calculating the state mattress recycling goals, the
department shall include renovated mattresses.

end insert begin insert

(b) Beginning April 1, 2020, and annually thereafter, the annual
report required pursuant to Section 42990.1 shall demonstrate the
mattress recycling organization’s substantial compliance with the
state mattress recycling goals established pursuant to this section.

end insert begin delete

(b)

end delete

begin insert ( end insert begin insert c) end insert  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 the statewide
recycling goal.

 

Article 3.  Budget

 

42988.  

On or before July 1, 2015, and on or before July 1
annually thereafter, 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
costs and to operate the mattress recycling program over a
multiyear period in a prudent and responsible manner.

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

42988.1.  

(a) On or before September 1, 2015, and annually
thereafter, the department shall begin delete approve, disapprove, or
conditionally approve a final program budget end delete begin insert approve or
disapprove a final used mattress recycling program budget end insert . If the
department fails to act or does not disapprove begin delete or conditionally
approve end delete a final begin insert used mattress recycling end insert program budget, the budget
shall be deemed approved.

(b) (1) If the department 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 disapproval.

(2) The department, within 30 days from the date the mattress
recycling organization resubmits a revised budget, shall begin delete approve,
disapprove, or conditionally end delete approve begin insert or disapprove end insert a final begin insert used
mattress recycling end insert program budget. If the department fails to act
or does not disapprove begin delete or conditionally approve end delete a final program
budget within those 30 days, the budget shall be deemed approved.

42988.2.  

(a) The department shall notify the mattress recycling
organization of the department’s costs that are directly related to
implementing this chapter relating to the mattress recycling
organization’s activities pursuant to this chapter, including any
costs incurred in certifying the mattress recycling organization and
reviewing the organization’s plan submitted pursuant to Section
42987.1.

(b) On or before July 1, 2015, and once every three months
thereafter, and within the fiscal year, the mattress recycling
organization shall reimburse the department for costs the
department incurs that are directly related to the mattress recycling
organization’s activities pursuant to this chapter. begin insert The amount of
the reimbursement shall not exceed the direct costs incurred by
the department. end insert

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

 

Article 4.  Mattress Recycling Charge

 

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) In the first 12 months during which the mattress
recycling begin delete change end delete begin insert charge end insert is collected, the mattress recycling
organization may change the amount of the mattress recycling
charge, in accordance with subdivision (b), and shall provide no
less than 90 days’ notice to the public before the change in the
amount of the charge takes place.

(2) After one year from the date when the collection of the
mattress recycling charge commences, 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.

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

42989.1.  

(a) Each manufacturer, begin insert renovator, end insert 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 and shall remit the charge collected
to the mattress recycling organization.

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

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

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

42989.2.  

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

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

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

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

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.

 

Article 5.  Records, Audits, and Annual Report

 

42990.  

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

(b) The begin insert accounting end insert books of the mattress recycling organization
shall be audited at the organization’s expense by begin delete a end delete begin insert an independent end insert
certified public accountant retained by the organization at least
once each calendar year.

(c) The mattress recycling organization shall arrange for the
audit to be delivered to the department begin insert , along with the annual
report required pursuant to Section 42990.1 end insert . The department shall
review the audit for compliance with this chapter and consistency
with the plan created pursuant to this chapter. The department shall
notify the mattress recycling organization of any compliance issues
or inconsistencies. The mattress recycling organization may obtain
copies of the audit upon request. The department shall not disclose
any confidential proprietary information in the audit.

begin insert

(d) The department may conduct its own audit if it determines
that an audit is necessary to enforce the requirements of this
chapter and that the audit conducted pursuant to subdivision (b)
is not adequate for this purpose.

end insert

42990.1.  

On or before April 1, 2016, and each year thereafter,
the mattress recycling organization shall submit to the department
and make publicly available on its Internet Web site 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
begin delete landfills, which shall be provided by the department to interested
parties end delete begin insert landfills end insert .

(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 begin delete waste end delete begin insert used end insert 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.

(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.

begin insert

(k) For reports submitted on and after April 1, 2020, a
demonstration of substantial compliance with the state mattress
recycling goals established pursuant to Section 42987.5.

end insert begin delete

(k)

end delete

begin insert (l) end insert  Other information relevant to compliance with the plan.

begin insert

begin insert 42990.2. end insert   

No later than 60 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.

end insert

 

Article 6.  Mattress Recycling and Renovating

 

42991.  

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

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

(2) Other information deemed necessary by the department that
is reasonably related to compliance with this chapter and that can
be begin delete readily end delete begin insert reasonably end insert compiled.

(b) For purposes of determining the used mattress recycling
rate, on or before April 1, 2016, and annually thereafter, begin delete a end delete begin insert the
operator of a end insert solid waste landfill facility operator begin insert that is permitted
to accept mattresses end insert shall report to the department, in a form and
manner determined by the department, regarding the number of
used mattresses received by that facility that were begin delete recycled or
renovated end delete begin insert recycled, renovated, or disposed of end insert within the state in
the preceding calendar year.

begin insert

(c) The department shall make the information provided
pursuant to this section available to interested parties and to the
public.

end insert

 

Article 7.  Retailer Used Mattress Take-back

 

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 pick up 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) (1) 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.

(2) If the retailer or third party takes the action specified in
paragraph (1), the retailer or third-party contractor shall provide
the consumer with an opportunity for the free dropoff of the used
mattress in the manner specified in paragraph (q) of Section
42987.1.

(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.

 

Article 8.  Enforcement

 

42993.  

(a) On or before begin delete July 1, 2016, end delete begin insert March 1, 2015, end insert and
annually thereafter, the department shall post on its Internet Web
site a list of manufacturers and begin delete retailers end delete begin insert renovators end insert that are in
compliance with this chapter.

(b) A manufacturer or begin delete retailer end delete begin insert renovator end insert that is not listed on
the department’s Internet Web site 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 begin delete retailer end delete begin insert renovator end insert is in compliance. The manufacturer or begin delete retailer end delete
begin insert renovator end insert 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 to determine if a manufacturer
begin insert or renovator end insert 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 begin delete 30 end delete begin insert 120 end insert calendar days before or
after that date, the manufacturer begin insert or renovator end insert was listed as begin delete covered
or end delete compliant on the department’s Internet Web site.

(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 begin insert or renovator end insert 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 begin delete retailer end delete
begin insert renovator end insert is not in compliance with this chapter, the department
shall remove the manufacturer or begin delete retailer end delete begin insert renovator end insert from the
department’s Internet Web site pursuant to this section and the
manufacturer or begin delete retailer end delete begin insert renovator end insert shall not sell a mattress in the
state until the department determines the manufacturer or begin delete retailer end delete
begin insert renovator end insert is in compliance with this chapter.

42993.1.  

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

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

(c) The department shall deposit all penalties collected pursuant
to this section into the Mattress Recovery and Recycling Penalty
Account, which is hereby created in the Integrated Waste
Management Fund. Upon appropriation by the Legislature, moneys
deposited into the Mattress Recovery and Recycling Penalty
Account begin delete may end delete begin insert shall end insert be expended by the department to administer
and enforce this chapter begin insert , including offsetting the costs incurred by
the department pursuant to Section 42988.2 end insert .

42993.2.  

Upon a written finding that a manufacturer, mattress
recycling organization, begin insert renovator, end insert 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,
begin insert renovator, end insert 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 begin delete retailer end delete begin insert renovator end insert from the
department’s Internet Web site and list of compliant manufacturers
and begin delete retailers end delete begin insert renovators end insert , as specified in Section 42993.

(c) Require additional reporting requirements relating to
compliance with the material requirement identified by the
department.

42993.3.  

(a) A begin delete manufacturer and end delete begin insert manufacturer, renovator,
retailer, and end insert 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
begin delete manufacturer end delete begin insert manufacturer, renovator, retailer, end insert or mattress
recycling organization if the begin delete manufacturer end delete begin insert manufacturer, renovator,
retailer, end insert 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 pursuant to Section 42993 that the manufacturer
begin insert or renovator end insert is no longer in compliance with this chapter.

 

Article 9.  Antitrust Immunity

 

42994.  

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

(b) Subdivision (a) shall apply to all of the following actions
taken by the mattress recycling begin delete organization or a manufacturer end delete
begin insert organization, manufacturer, or renovator end insert :

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

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

(3) The establishment, administration, begin insert collection, end insert or
disbursement of the charges associated with funding the
implementation of this chapter.

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

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

(2) Fixes the output of production of mattresses.

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