Amended in Assembly September 4, 2013

Amended in Assembly August 26, 2013

Amended in Assembly August 19, 2013

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 BillNo. 254


Introduced by Senators Hancock and Correa

(Principal coauthor: Senator Calderon)

(Coauthors: Senators Corbett and Leno)

(Coauthor: Assembly Member Garcia)

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

This bill would prohibit, on and after January 1, 2016, a manufacturer, renovator, or retailer from, among other things, selling in, or importing a mattress into, 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 or be provided with an opportunity for free dropoff of the used mattress.

This bill would require the mattress recycling organization, by July 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,begin delete providingend deletebegin insert the provision ofend insert a mechanism to local governments and certain solid waste facilitiesbegin delete to recoverend deletebegin insert for the recovery ofend insert illegally disposed mattresses that is funded, asbegin delete specified, and reimbursing those solid waste facilities for certain costsend deletebegin insert specified. The plan would also be required to ensure that it addresses the impact of the requirement of the California Constitution that a local government submit the imposition, extension, or increase in a general or special tax, as defined, to the electorate for approval by a majority or end insertbegin insert23end insertbegin insertvote, respectively, with regard to local governments participating in the programend insert. The bill would require the organization, by July 1, 2015, to annually prepare and approve a proposed used mattress recycling program plan budget for the next calendar year and to submit the budget to the department for approval, as specified. The bill would require the department to notify the organization of the department’s costs that are directly related to implementing and enforcing 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 and to reimburse any outstanding loans made from other funds used to finance the startup costs of the department, as provided.

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, renovator, 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 exempt mattresses manufactured by the Prison Industry Authority and purchased by the state from collecting and remitting the mattress recycling charge.

This bill would authorize the department to impose an administrative civil penalty on a manufacturer, organization, recycler, renovator, or retailer 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 23 of the membership of each house of the Legislature.

Vote: 23. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

P3    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
6
7

42985.  

(a) The Legislature finds and declares all of the
8following:

9(1) In order to reduce illegal dumping, increase recycling, and
10substantially reduce public agency costs for the end-of-life
11management of used mattresses, the Used Mattress Recovery and
12Recycling Act is hereby established by this chapter to require
P4    1manufacturers of mattresses sold in this state to develop, finance,
2and implement a convenient and cost-effective program to recover
3and recycle used mattresses generated in this state.

4(2) The program developed and implemented by manufacturers
5of mattresses sold in this state shall strive for the maximum feasible
6level of recovery and recycling of used mattresses generated in
7support of the statewide goal that at least 75 percent of all solid
8waste be recycled by January 1, 2020.

9(3) Used mattresses and their components are not hazardous
10household materials, but they can impose financial and other costs
11on society at the end of their useful lives.

12(b) It is the intent of the Legislature in enacting this chapter that
13consumers have the opportunity to drop off their used mattresses
14free of charge.

15

42985.1.  

This chapter shall be known, and may be cited, as the
16Used Mattress Recovery and Recycling Act.

17 

18Article 1.  Definitions
19

 

20

42986.  

begin delete(a)end deletebegin deleteend deletebegin insertFor purposes of this chapter, the following
21definitions shall apply:end insert

22begin insert(a)end insert (1) “Consumer” means an owner of a mattress, including
23a person, business, corporation, limited partnership, nonprofit
24organization, or governmental entity, and including the ultimate
25purchaser, owner, or lessee of a mattress.

26(2) “Consumer” does not include a government organization or
27other party that obtains one or more used mattresses in the course
28of collecting used mattresses for recycling for purposes of this
29chapter, or through the ordinary collection and handling of
30municipal solid waste.

31(b) “Distributor” means a company that has a contractual
32relationship with one or more manufacturers to market and sell
33mattresses to retailers.

34(c) “Foundation” means a ticking-covered structure used to
35support a mattress or sleep surface. The structure may include
36constructed frames, foam, box springs, or other materials, used
37alone or in combination.

38(d) “Good faith effort” means all reasonable and economically
39practical efforts by a mattress recycling organization to implement
P5    1the components identified in its approved plan consistent with its
2annual budget.

3(e) “Importer” means a party qualifying as an “importer of
4record” for purposes of Section 1484(a)(2)(B) of Title 19 of the
5United States Code, with regard to the import of a finished mattress
6sold in the state that was manufactured or assembled by a company
7outside the United States.

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

9(A) The person who manufactures a mattress and who sells,
10offers for sale, or distributes a mattress in the state.

11(B) If there is no person who is a manufacturer of a mattress
12for purposes of subparagraph (A), the manufacturer is the person
13who imports the mattress into the state for sale or distribution.

14(2) Except as provided pursuant to paragraph (2) of subdivision
15(b) of Section 42987, a retailer that brings a mattress into its store
16locations from an out-of-state warehouse or distribution center is
17not a manufacturer.

18(g) (1) “Mattress” means a resilient material or combination of
19materials 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 or that is a fold out sofa bed or futon.

38(h) “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
P6    1established by a qualified industry association, composed of
2manufacturers, renovators, and retailers, and certified pursuant to
3Section 42987, to develop, implement, and administer the mattress
4recycling program established pursuant to this chapter.

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

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

11(k) “Qualified industry association” means the International
12Sleep Products Association or a successor of that organization.

13(l) “Recycle” or “recycling” has the same meaning as defined
14in Section 40180.

15(m) “Recycler” means a person that engages in the manual or
16mechanical separation of mattresses to substantially recover
17components and commodities contained in mattresses for the
18purpose of reuse or recycling.

19(n) “Recycling charge” or “charge” means the charge imposed
20on the sale of a new or renovated mattress at the point of sale and
21collected by the organization to fund the recycling of used
22mattresses pursuant to this chapter.

23(o) (1) “Renovate” or “renovation” means altering a used
24mattress for the purpose of resale and includes one or more of the
25following:

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

27(B) Adding additional filling.

28(C) Rebuilding a used mattress.

29(D) Replacing components with new or postconsumer materials
30unless the material is a clean recycled material, consists of used
31electronic parts or controls, or is a used mattress base that is not
32covered by ticking.

33(2) “Renovate” or “renovation” does not include any of the
34following:

35(A) Stripping a mattress of its ticking or filling without adding
36new material.

37(B) Sterilizing or sanitizing a mattress without otherwise altering
38the mattress.

39(C) Altering a mattress by a renovator when a person retains
40the altered mattress for lease, rental, or personal use.

P7    1(D) Refurbishing that disqualifies a mattress for a yellow
2wholesale renovator tag to be affixed to the mattress, in accordance
3with the regulations adopted by the Department of Consumer
4Affairs.

5(p) “Renovator” means a person who renovates used mattresses
6for the purpose of sale, or offering for sale, in this state.

7(q) “Retailer” means a person who sells mattresses in the state
8or offers to a consumer a mattress in the state through any means,
9including, but not limited to, by remote offering, including sales
10outlets or catalogs, electronically through the Internet, by
11telephone, or through the mail.

12(r) “Sale” or “sell” means the transfer of title of a mattress for
13consideration, including by a manufacturer, a distributor, or a
14retailer for eventual consumption to a consumer in the state,
15including remote sales conducted through sales outlets, catalogs,
16or the Internet or any other similar electronic means. For purposes
17of this chapter, a long-term lease of not less than 12 months is the
18same as a sale.

19(s) “Solid waste facility” meansbegin insert, for purposes of this chapter,end insert
20 a solid waste facility that is permitted to, and accepts under its
21normal operating conditions, used mattresses from the public for
22collection, storing, and handling, whether for recycling or disposal.

23(t) (1) “Ticking” means the outermost layer of fabric or related
24material of a mattress.

25(2) “Ticking” does not include another layer of fabric or related
26material that is quilted together with, or otherwise attached to, the
27outermost layer of fabric or related material.

28(u) “Used mattress” means a mattress that has been abandoned
29or discarded by a consumer.

30 

31Article 2.  Mattress Recycling Plan
32

 

33

42987.  

(a) (1) On or before July 1, 2014, a qualified industry
34association or a successor organization may establish a mattress
35recycling organization for purposes of this chapter, which shall be
36composed of manufacturers, renovators, and retailers and be
37certified pursuant to this section to develop, implement, and
38administer the mattress recycling program established pursuant to
39this chapter.

P8    1(2) Within 60 days of receipt of a request for certification, the
2department shall notify the requesting qualified industry association
3of the department’s decision whether or not to certify that a
4mattress recycling organization has been established by the
5qualified industry association or successor organization and is
6composed of manufacturers, renovators, and retailers for purposes
7of establishing the mattress recycling plan.

8(3) Prior to certification by the department, the department’s
9director shall appoint an advisory committee to be part of the
10mattress recycling organization.

11(A) The advisory committee may be comprised of members of
12the environmental community, solid waste industry, local
13government, and public and private representatives involved in
14the collection, processing and recycling of used mattresses, and
15other interested parties.

16(B) The mattress recycling organization shall consult the
17advisory committee at least once during the development and
18implementation of the plan required pursuant to Section 42987.1,
19and annually prior to the submittal of both an annual report required
20pursuant to Section 42990.1 and an annual budget required pursuant
21to Section 42988.

22(b) (1) On or before January 1, 2015, each manufacturer and
23renovator shall register with the mattress recycling organization.

24(2) A retailer may register with the mattress recycling
25organization as a manufacturer for a brand for which there is not
26a registered manufacturer.

27(c) On and after January 1, 2016, a retailer shall not sell,
28distribute, or offer for sale a mattress in the state unless the retailer
29is in compliance with this chapter and the manufacturer or
30renovator of the mattress sold by the retailer is listed in compliance
31with this chapter.

32(d) On and after January 1, 2016, a manufacturer or renovator
33shall not sell, offer for sale, or import a mattress in this state, or
34sell or distribute a mattress to a distributor or retailer, unless the
35manufacturer or renovator is in compliance with this chapter.

36

42987.1.  

On or before July 1, 2015, the mattress recycling
37organization shall develop and submit to the department a plan for
38recycling used mattresses in the state in an economically efficient
39and practical manner that includes all of the following goals and
40elements:

P9    1(a) Program objectives consistent with the state’s solid waste
2management hierarchy.

3(b) The names of manufacturers, renovators, and brands covered
4under the plan.

5(c) A consultation process with affected stakeholders, including,
6but not limited to, local government representatives, recyclers, and
7solid waste industry representatives.

8(d) Methods to increase the number of used mattresses diverted
9from landfills, reduce the number of illegally dumped used
10mattresses, and increase the quantity of used materials recovered
11through this process and recycled for other uses.

12(e) (1) The establishment and administration of a means for
13funding the plan in a manner that distributes the mattress recycling
14organization’s costs uniformly over all mattresses sold in the state.

15(2) The funding mechanism shall provide sufficient funding for
16the mattress recycling organization to carry out the plan, including
17the administrative, operational, and capital costs of the plan.

18(f) The publishing of an annual report for each calendar year of
19operation.

20(g) Conducting research, as needed, related to improving used
21mattress collection, dismantling, and recycling operations,
22including pilot programs to test new processes, methods, or
23equipment on a local, regional, or otherwise limited basis.

24(h) A program performance measurement that shall collect
25program data for the purpose of the annual report. The information
26shall include:

27(1) A methodology for estimating the amount of mattresses sold
28in the state, used mattresses available for collection in the state,
29and for quantifying the number of used mattresses collected and
30recycled in the state.

31(2) A methodology for determining mattresses sold in the state
32by the manufacturers and renovators of the mattress recycling
33organization.

34(i) A description of methods used to coordinate activities with
35existing used mattress collecting and recycling programs, including
36existing nonprofit mattress recyclers, and with other relevant parties
37as appropriate, with regard to the proper management or recycling
38of discarded or abandoned mattresses, for purposes of providing
39the efficient delivery of services and avoiding unnecessary
40duplication of effort and expense.

P10   1(j) Entering into contracts or agreements, which may include
2contracts and agreements with existing nonprofit or for-profit
3recyclers, that are necessary and proper for the mattress recycling
4organization to carry out these duties consistent with the terms of
5this chapter.

6(k) Establishment of a financial incentive to encourage parties
7to collect for recycling used mattresses discarded or illegally
8 dumped in the state.

9(l) Ensuring, to the maximum extent possible, that local
10governments and solid waste facilities that are permitted to accept
11mattresses are provided with a mechanism for the recovery of
12illegally disposed used mattresses that is funded at no additional
13cost to the local government or solid waste facility.

14(m) Developing processes to collect used mattresses from
15low-income communities for recycling in accordance with the
16poverty line annually established by the Secretary of California
17Health and Human Services pursuant to the federal Omnibus
18Budget Reconciliation Act of 1981 (Public Law 97-35), as
19amended.

20(n) Providing outreach efforts and education to consumers,
21manufacturers, and retailers, for the purpose of promoting the
22recycling of used mattresses and options available to consumers
23for the free dropoff of used mattresses.

24(o) A provision that allows an individual to drop off, at no
25charge, a mattress at a mattress recycling center or solid waste
26facility that is permitted to accept mattresses, and that provides
27for the payment to a solid waste facility that is permitted to accept
28mattresses, a reasonable amount for accepting, collecting, storing,
29and handling used mattresses.

begin insert

30(p) Ensuring that the impact of Article XIII C of the California
31Constitution is addressed for local governments participating in
32the program.

end insert
begin delete

33(p)

end delete

34begin insert(q)end insert A report from the advisory committee, established pursuant
35to paragraph (3) of subdivision (a) of Section 42987, which
36includes a summary of the consultative process between the
37advisory committee and the mattress recycling organization during
38the development of the plan, as well as any other information
39deemed pertinent by the advisory committee to maximizing the
40recovery and recycling of used mattresses in the state.

begin delete

P11   1(q)

end delete

2begin insert(r)end insert Other information requested by the department that is
3reasonably related to compliance with the recycling plan and that
4the organization can reasonably compile.

5

42987.2.  

In preparing the plan pursuant to Section 42987.1,
6the mattress recycling organization shall consult with interested
7stakeholders, which shall include, but not be limited to, local
8government representatives, recyclers, and solid waste industry
9representatives.

10

42987.3.  

(a) The department shall review the plan for
11compliance with this chapter and shall approve, disapprove, or
12conditionally approve the plan within 90 days of receipt of the
13plan. If the department fails to act within 90 days of the receipt of
14the plan, the plan shall be deemed approved.

15(b) If the department disapproves the plan pursuant to
16subdivision (a), the department shall explain, in writing, how the
17plan does not comply with this chapter, and the mattress recycling
18organization shall resubmit a plan to the department. If the
19department finds that the plan resubmitted by the organization
20does not comply with the requirements of this chapter, the mattress
21recycling organization shall not be deemed in compliance with
22this chapter until the organization submits a plan that the
23department finds complies with the requirements of this chapter.

24(c) The approved plan shall be a public record, except that
25financial, production, or sales data reported to the department by
26the mattress recycling organization is not public record for purposes
27of the California Public Records Act (Chapter 3.5 (commencing
28with Section 6250) of Division 7 of Title 1 of the Government
29Code) and shall not be open to public inspection. The department
30may release financial, production, or sales data in summary form
31only so the information cannot be attributable to a specific
32manufacturer or retailer or to any other entity.

33

42987.4.  

Within 90 days after approval or conditional approval
34by the department of the plan, the mattress recycling organization
35shall implement the approved plan.

36

42987.5.  

(a) (1) On or before January 1, 2018, based on
37methodology contained in the plan and information contained in
38the first annual report, the department, in consultation with the
39organization, and after taking into consideration relevant economic
P12   1and practical considerations and other information, shall establish
2and make public the following:

3(A) The state mattress recycling baseline amount.

4(B) The state mattress recycling goals.

5(2) When calculating the state mattress recycling goals, the
6department shall include renovated mattresses.

7(b) Beginning July 1, 2019, and annually thereafter, the annual
8report required pursuant to Section 42990.1 shall demonstrate the
9mattress recycling organization’s good faith effort to comply with
10the state mattress recycling goals established pursuant to this
11section.

12(c) On or before July 1, 2020, and every four years thereafter,
13the department shall review, including reviewing for consistency
14with Section 41780.01, and update as necessary, the baseline
15amount and goals to ensure that the program advances the statewide
16recycling goal.

17 

18Article 3.  Budget
19

 

20

42988.  

On or before July 1, 2015, and on or before July 1
21annually thereafter, the mattress recycling organization shall
22prepare and submit to the department a proposed used mattress
23recycling program budget for the following calendar year that
24includes all of the following:

25(a) Anticipated revenues and costs of implementing the program,
26including related programs, projects, contracts, and administrative
27expenses.

28(b) A recommended funding level sufficient to cover the plan’s
29budgeted costs and to operate the mattress recycling program over
30a multiyear period in a prudent and responsible manner.

31(c) The amount of the mattress recycling charge and itemization
32of costs that each charge covers.

33

42988.1.  

(a) On or before October 1, 2015, and annually
34thereafter, the department shall approve or disapprove a final used
35mattress recycling program budget. If the department fails to act
36or does not disapprove a final used mattress recycling program
37budget, the budget shall be deemed approved.

38(b) (1) If the department disapproves the budget, the mattress
39recycling organization shall resubmit a revised budget addressing
P13   1the department’s written reasons for its decision within 30 days
2of the disapproval.

3(2) The department, within 30 days from the date the mattress
4recycling organization resubmits a revised budget, shall approve
5or disapprove a final used mattress recycling program budget. If
6the department fails to act or does not disapprove a final program
7budget within those 30 days, the budget shall be deemed approved.

8

42988.2.  

(a) The department shall notify the mattress recycling
9organization of the department’s costs that are directly related to
10implementing and enforcing this chapter relating to the mattress
11recycling organization’s activities. This may include the direct
12costs associated with regulatory development prior to submittal
13of the plan required pursuant to Section 42987.1.

14(b) On or before July 1, 2016, and once every three months
15thereafter, and within the fiscal year ending June 30, the mattress
16recycling organization shall reimburse the department for costs
17the department incurs pursuant to subdivision (a). The
18reimbursement shall not exceed the department’s direct costs to
19implement and enforce this chapter.

20(c) The department shall deposit all moneys submitted for
21reimbursement costs by the mattress recycling organization
22pursuant to this section into the Used Mattress Recycling Account,
23which is hereby established in the Integrated Waste Management
24Fund. Upon appropriation by the Legislature, moneys in the
25account shall be expended by the department to administer and
26enforce this chapter, as well as reimburse any outstanding loans
27made from other funds used to finance startup costs of the
28department’s activities pursuant to this chapter. The funds collected
29pursuant to this section shall not be expended for any other purpose.

30 

31Article 4.  Mattress Recycling Charge
32

 

33

42989.  

(a) The mattress recycling organization shall set the
34amount of the mattress recycling charge that shall be added to the
35purchase price of a mattress at the point of sale and include the
36charge amount in the annual budget.

37(b) (1) The amount of the state mattress recycling charge shall
38be sufficient to fund the revenue requirements set forth in the
39approved budget.

P14   1(2) The mattress recycling organization shall set the charge as
2a flat rate and not as a percentage of the purchase price. The
3organization shall not set more than two different charges to
4accommodate mattress size differentials.

5(c) (1) In the first 12 months during which the mattress
6recycling charge is collected, the mattress recycling organization
7may change the amount of the mattress recycling charge, in
8accordance with subdivision (b), and shall provide no less than 90
9days’ notice to the public before the change in the amount of the
10charge takes place.

11(2) After one year from the date when the collection of the
12mattress recycling charge commences, the mattress recycling
13organization may change the amount of the charge in accordance
14with subdivision (b), but the mattress recycling organization shall
15not change the amount of the charge more frequently than annually,
16and shall provide no less than 180 days’ notice to the public before
17the change in the amount of the charge takes effect.

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

20

42989.1.  

(a) Commencing 90 days after the date the department
21approves or conditionally approves the plan pursuant to Section
2242987.3, each manufacturer, renovator, retailer, or distributor that
23sells a mattress to a consumer or to the ultimate end user of the
24mattress in the state shall add the charge to the purchase price of
25the mattress and shall remit the charge collected to the mattress
26recycling organization.

27(b) In each transaction described in subdivision (a), the charge
28shall be clearly visible on the invoice, receipt, or functionally
29equivalent billing document provided by the seller to the consumer
30as a separate line item.

31(c) The mattress recycling organization shall develop
32reimbursement criteria to enable retailers to recover administrative
33costs associated with collecting the charge.

34(d) The mattress recycling organization shall determine the rules
35and procedures that are necessary and proper to implement the
36collection of the charge in a fair, efficient, and lawful manner.

37

42989.2.  

(a) The mattress recycling organization may conduct
38an audit of the following:

39 (1) Those parties that are required to remit the charge to the
40mattress recycling organization to verify that the charges paid are
P15   1proper and accurate and to ensure all parties required by this
2chapter to pay or collect the charge are paying or collecting the
3proper amount.

4(2) Those parties that are exempt from remitting the charge.

5(b) An audit conducted pursuant to this section shall be carried
6out in accordance with generally accepted auditing practices and
7shall be limited in scope to confirming whether the charge has
8been properly collected on all sales of mattresses to consumers in
9the state.

10(c) For purposes of conducting audits pursuant to this section,
11the mattress recycling organization shall hire independent
12third-party auditors.

13(d) If the mattress recycling organization conducts an audit
14pursuant to this section, the organization shall provide a copy of
15the audit to the department.

16

42989.2.1.  

(a) Mattresses manufactured by the Prison Industry
17Authority and purchased by the state or its agencies are exempt
18from collecting and remitting the mattress recycling charge and
19from any end-of-life financial incentive established by the mattress
20recycling organization for used mattresses pursuant to subdivision
21(k) of Section 42987.1. Mattresses sold subject to this exemption
22shall be permanently marked or labeled to clearly identify them
23as having been manufactured by the Prison Industry Authority.

24(b) The Prison Industry Authority shall, upon the request of the
25department or mattress recycling organization, report how many
26mattresses it manufactured and sold in the previous fiscal year and
27the customers that purchased those mattresses. To the extent
28reasonably possible, the Prison Industry Authority, upon request
29by the department or the mattress recycling organization, shall
30report how its customers are disposing of their used mattresses
31and estimate what percentage are being landfilled and recycled or
32renovated.

33(c) The mattress recycling organization’s obligation under this
34chapter to recycle mattresses manufactured by the Prison Industry
35Authority is limited to any services for which the authority has
36specifically contracted with the mattress recycling organization
37for that purpose. The mattress recycling organization may refuse
38to recycle or pay financial incentives on any Prison Industry
39Authority-manufactured mattress that is exempted from collecting
40and remitting the mattress recycling fee.

P16   1(d) Mattresses exempt pursuant to subdivision (a) and all
2discards of mattresses previously manufactured by the Prison
3Industry Authority shall be excluded from the goal-setting analysis
4required by Section 42987.5.

5

42989.3.  

(a) The mattress recycling organization shall deposit
6the charges and other moneys collected by the mattress recycling
7organization pursuant to this chapter in accounts that are
8maintained and disbursed by the organization.

9(b) The mattress recycling organization may enter into a joint
10venture, agreements, or contracts with third parties, including, but
11not limited to, corporations, partnerships, nonprofit entities, and
12governmental agencies, to undertake activities on the mattress
13recycling organization’s behalf that are consistent with this chapter.

14 

15Article 5.  Records, Audits, and Annual Report
16

 

17

42990.  

(a) The mattress recycling organization shall keep
18minutes, books, and records that clearly reflect the activities and
19transactions of the mattress recycling organization.

20(b) The accounting books of the mattress recycling organization
21shall be audited at the organization’s expense by an independent
22certified public accountant retained by the organization at least
23once each calendar year.

24(c) The mattress recycling organization shall arrange for the
25audit to be delivered to the department, along with the annual
26report required pursuant to Section 42990.1. The department shall
27review the audit for compliance with this chapter and consistency
28with the plan created pursuant to this chapter. The department shall
29notify the mattress recycling organization of any compliance issues
30or inconsistencies. The mattress recycling organization may obtain
31copies of the audit upon request. The department shall not disclose
32any confidential proprietary information in the audit.

33(d) The department may conduct its own audit if it determines
34that an audit is necessary to enforce the requirements of this chapter
35and that the audit conducted pursuant to subdivision (b) is not
36adequate for this purpose.

37

42990.1.  

On or before April 1, 2017, and each year thereafter,
38the mattress recycling organization shall submit to the department
39and make publicly available on its Internet Web site a report that
40includes, for the preceding calendar year, all of the following:

P17   1(a) The mattress recycling organization’s costs and revenues.

2(b) The quantity of mattresses disposed of in solid waste
3landfills.

4(c) The quantity of discarded used mattresses collected for
5recycling in the program.

6(d) The quantity of used mattresses collected for recycling from
7different categories of sources.

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

9(f) The uses for the recycled materials.

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

11(h) A description of methods used to collect, transport, and
12process used mattresses in this state.

13(i) Examples of educational materials that were provided to
14consumers the first year and any changes to those materials in
15subsequent years.

16(j) The total volume, number, and weight of used mattresses
17collected recycled, renovated, and reused in this state during the
18preceding calendar year, including any conversion factor used to
19determine the number of mattresses recovered.

20(k) A report by the advisory committee, established pursuant
21to paragraph (3) of subdivision (a) of Section 42987 that includes
22a summary of the consultative process between the advisory
23committee and the mattress recycling organization relating to the
24ongoing implementation of the plan, as well as any other
25information deemed pertinent by the advisory committee to
26maximizing the recovery and recycling of used mattresses in the
27state.

28(l) For reports submitted on and after April 1, 2020, a
29demonstration of good faith effort with the state mattress recycling
30goals established pursuant to Section 42987.5.

31(m) Any modifications or revisions to the mattress recycling
32plan submitted pursuant to Section 42987.1, necessary to achieve
33the statewide mattress recycling goals established pursuant to
34Section 42987.5.

35(n) Other information relevant to compliance with the plan.

36

42990.2.  

No later than 60 days after the date the department
37receives the annual report, the department shall notify the mattress
38recycling organization of any deficiencies in the report. No later
39than 60 days after receiving this notice from the department, the
40mattress recycling organization shall provide additional
P18   1information, modification, or corrections in response to the
2department’s notification.

3 

4Article 6.  Mattress Recycling and Renovating
5

 

6

42991.  

(a) On or before April 1, 2016, and annually thereafter,
7a person that is engaged in business as a recycler or renovator shall
8submit a report to the department that includes the following:

9(1) Quantitative information on the number of mattresses
10received and recycled or renovated in the state during the preceding
11calendar year.

12(2) Other information deemed necessary by the department that
13is reasonably related to compliance with this chapter and that can
14be reasonably compiled.

15(b) For purposes of determining the used mattress recycling
16rate, on or before April 1, 2016, and annually thereafter, the
17operator of a solid waste landfill facility operator shall report to
18the department, if requested, in a form and manner determined by
19the department, regarding the number of used mattresses received
20by that facility that were recycled, renovated, or disposed of within
21the state in the preceding calendar year.

22(c) The department shall make the information provided pursuant
23to this section available to interested parties and to the public.

24 

25Article 7.  Retailer Used Mattress Take-back
26

 

27

42992.  

(a) Except as provided in subdivision (d), on and after
28July 1, 2014, a retailer shall offer a consumer the option to have
29a used mattress picked up for recovery at the time of delivery, at
30no additional cost to the consumer, if a new mattress is delivered
31to the consumer.

32(b) A retailer may contract out to a third party for the delivery
33of a new mattress or pick up of a used mattress.

34(c) A retailer is not prohibited from charging the consumer for
35the cost of the delivery of a new mattress.

36(d) A retailer or third-party contractor delivering a new mattress
37may refuse to pick up a used mattress from a consumer if the
38retailer or contractor determines the used mattress is contaminated
39and poses a risk to personnel, new products, or equipment.

P19   1(e) A common carrier delivering a new mattress to a consumer
2as a result of an online purchase is not required to pick up a used
3mattress for recovery.

4 

5Article 8.  Enforcement
6

 

7

42993.  

(a) On or before March 1, 2015, and annually thereafter,
8the department shall post on its Internet Web site a list of
9manufacturers and renovators that are in compliance with this
10chapter.

11(b) A manufacturer or renovator that is not listed on the
12department’s Internet Web site pursuant to this section, but
13demonstrates compliance with this chapter before the next notice
14is required to be posted pursuant to this section, may request a
15certification letter from the department stating the manufacturer
16or renovator is in compliance. The manufacturer or renovator that
17receives the letter shall be deemed to be in compliance with this
18chapter.

19(c) A retailer that distributes or sells a mattress shall monitor
20the department’s Internet Web site to determine if a manufacturer
21or renovator is in compliance with this chapter. A retailer otherwise
22in compliance with this chapter shall be deemed in compliance
23with the chapter if, on the date the retailer ordered or purchased a
24mattress, or within 120 calendar days before or after that date, the
25manufacturer or renovator was listed as compliant on the
26department’s Internet Web site.

27(d) A retailer may sell or distribute the existing stock of its
28inventory through sales to the public if the existing stock was
29purchased when the manufacturer or renovator was in compliance
30with the requirements of this chapter at the time when the retailer
31initially purchased that stock.

32(e) The sale, distribution, or offering for sale, of any existing
33inventory in stock prior to the commencement of the collection of
34the mattress recycling charge pursuant to this chapter shall be
35 deemed to be in compliance with this chapter.

36(f) If the department determines a manufacturer or renovator is
37not in compliance with this chapter, the department shall remove
38the manufacturer or renovator from the department’s Internet Web
39site pursuant to this section and the manufacturer or renovator shall
P20   1not sell a mattress in the state until the department determines the
2manufacturer or renovator is in compliance with this chapter.

3

42993.1.  

(a) The department may impose an administrative
4civil penalty on any manufacturer, mattress recycling organization,
5recycler, renovator, or retailer that is in violation of this chapter.
6The amount of the administrative civil penalty shall not exceed
7five hundred dollars ($500) per day, but, if the violation is
8intentional, knowing, or reckless, the department may impose an
9administrative civil penalty of not more than five thousand dollars
10($5,000) per day.

11(b) The department shall not impose a penalty on the mattress
12recycling organization pursuant to this section for a failure to
13comply with this chapter if the organization demonstrates it
14received false or misleading information from a member of the
15organization or other party that was the direct cause of its failure
16to comply.

17(c) The department shall deposit all penalties collected pursuant
18to this section into the Mattress Recovery and Recycling Penalty
19Account, which is hereby created in the Integrated Waste
20Management Fund. Upon appropriation by the Legislature, moneys
21deposited into the Mattress Recovery and Recycling Penalty
22Account shall be expended by the department to administer and
23enforce this chapter, including offsetting the costs incurred by the
24department pursuant to Section 42988.2.

25

42993.2.  

Upon a written finding that a manufacturer, mattress
26recycling organization, renovator, or retailer has not met a material
27requirement of this chapter, in addition to any other penalties
28authorized under this chapter, the department may take any of the
29following actions, after affording the manufacturer, organization,
30renovator, or retailer a reasonable opportunity to respond to, or
31rebut, the finding, to ensure compliance with the requirements of
32this chapter:

33(a) Revoke the mattress recycling organization’s plan approval
34or require the mattress recycling organization to resubmit the plan.

35(b) Remove the manufacturer or renovator from the department’s
36Internet Web site and list of compliant manufacturers and
37renovators, as specified in Section 42993.

38(c) Require additional reporting requirements relating to
39compliance with the material requirement identified by the
40department.

P21   1

42993.3.  

(a) A manufacturer, renovator, retailer, and mattress
2recycling organization shall do both of the following:

3(1) Upon request, provide the department with reasonable and
4timely access, as determined by the department and as authorized
5pursuant to Title 13 (commencing with Section 1822.50) of Part
63 of the Code of Civil Procedure, to its facilities and operations,
7as necessary to determine compliance with this chapter.

8(2) Upon request, provide the department with relevant records
9necessary to determine compliance with this chapter.

10(b) The records required by this chapter shall be maintained and
11accessible for three years. All reports and records provided to the
12department pursuant to this chapter shall be provided under penalty
13of perjury.

14(c) The department may take disciplinary action against a
15manufacturer, renovator, retailer, or mattress recycling organization
16if the manufacturer, renovator, retailer, or mattress recycling
17organization fails to provide the department with the access
18required pursuant to this section, including, but not limited to,
19imposing penalties pursuant to Section 42993.1 and posting an
20immediate notice on the department’s Internet Web site pursuant
21to Section 42993 that the manufacturer or renovator is no longer
22in compliance with this chapter.

23 

24Article 9.  Antitrust Immunity
25

 

26

42994.  

(a) Except as provided in subdivision (c), an action
27specified in subdivision (b) that is taken by a mattress recycling
28organization or its members that relates to any of the following is
29not a violation of the Cartwright Act (Chapter 2 (commencing with
30Section 16700) of Part 2 of Division 7 of the Business and
31Professions Code), the Unfair Practices Act (Chapter 4
32(commencing with Section 17000) of Part 2 of Division 7 of the
33Business and Professions Code), or the Unfair Competition Law
34(Chapter 5 (commencing with Section 17200) of Part 2 of Division
357 of the Business and Professions Code).

36(b) Subdivision (a) shall apply to all of the following actions
37taken by the mattress recycling organization, manufacturer, or
38renovator:

39(1) The creation, implementation, or management of a plan
40approved by the department pursuant to Article 2 (commencing
P22   1with Section 42987) and the types or quantities of used mattresses
2recycled or otherwise managed pursuant to a plan, as described in
3Article 2 (commencing with Section 42987).

4(2) The cost and structure of an approved plan.

5(3) The establishment, administration, collection, or
6disbursement of the charges associated with funding the
7implementation of this chapter.

8(c) Subdivision (a) shall not apply to an agreement that does
9any of the following:

10(1) Fixes a price of or for mattresses, except for an agreement
11related to costs or charges associated with participation in a plan
12 approved or conditionally approved by the department and
13otherwise in accordance with this chapter.

14(2) Fixes the output of production of mattresses.

15(3) Restricts the geographic area in which, or customers to
16whom, mattresses will be sold.



O

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