Amended in Senate March 24, 2014

Senate BillNo. 1274


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

February 21, 2014


An act to amend Sections 42986, 42987, 42987.1,begin insert 42989.1,end insert 42990, 42991, 42993.1, 42993.2, 42993.3, and 42993.4 of the Public Resources Code, relating to recycling.

LEGISLATIVE COUNSEL’S DIGEST

SB 1274, as amended, Hancock. Recycling: used mattresses.

(1) Existing law, the Used Mattress Recovery and Recycling Act, requires a mattress recycling organization to be established by a qualified industry association to develop, implement, and administer a mattress recycling program, including the development of a state plan by July 1, 2015, for recycling used mattresses in the state that includes specified goals and elements. The plan is required to include an element that ensures that urban and rural local governments and participating solid waste facilities that accept mattresses are provided with a mechanism for the recovery of illegally disposed used mattresses that is funded at no additional cost to the local government or solid waste facility, as provided.

This bill would require that element to ensure that urban and rural local governments and participating permitted solid waste facilities and authorized solid waste operations that accept mattresses are provided with the above mechanism.

The plan is also required to include a provision that allows an individual to drop off a mattress, at no charge, at a mattress recycling center, permitted solid waste facility, or other municipal facility that accepts mattresses, and for the payment of a reasonable amount to that municipal or solid waste facility.

This bill would authorize an individual to also drop off a mattress at a recycler, renovator, authorized solid waste operation, or other municipal facility that accepts mattresses consistent with solid waste regulations. The bill would also require the payment amount to be determined as reasonable by the municipal facility or solid waste facility or operation and the mattress recycling organization.

For purposes of the act, existing law defines a solid waste facility to mean a facility that accepts, under its normal operating conditions, used mattresses from the public for collection, storing, and handling, whether for recycling or disposal.

This bill would instead define a solid waste facility as including a solid waste transfer or processing station, a composting facility, a gasification facility, a transformation facility, an EMSW conversion facility, and a disposal facility, as provided.

begin insert

(2) The act requires, commencing 90 days after the date the department approves or conditionally approves the mattress recycling plan, each manufacturer, renovator, retailer, or distributor that sells a mattress to add a charge to the purchase price of the mattress, as provided. Existing law requires the department to approve or disprove a final used mattress recycling program budget.

end insert
begin insert

This bill would instead require, commencing 90 days after the date the department approves the budget, each manufacturer, renovator, retailer, or distributor that sells a mattress to add a charge to the purchase price of the mattress, as provided.

end insert
begin delete

(2)

end delete

begin insert(3)end insert The act requires the mattress recycling organization to arrange for an audit conducted by a independent certified public accountant to be delivered to the department, allows the mattress recycling organization to obtain copies of that audit, and prohibits the department from disclosing any confidential proprietary information in the audit. The department is authorized to conduct its own audit if it determines that an audit is necessary. The act also requires a mattress recycler or mattress renovator to submit an annual report to the department, which the department is required to make public.

This bill would instead prohibit the department from disclosing any confidential proprietary information in the audit that the department is authorized to conduct, would instead allow the mattress recycling organization to obtain copies of that audit, and would also prohibit the department from disclosing this confidential information in the annual report submitted by recyclers and renovators.

begin delete

(3)

end delete

begin insert (4)end insert The act authorizes the department to impose an administrative civil penalty on a manufacturer, organization, recycler, renovator, or retailer in violation of the act and to take other specified enforcement actions. The department is required to deposit these penalties into the Mattress Recovery and Recycling Penalty Account, which is available for expenditure by the department, upon appropriation by the Legislature, to implement and enforce the act and for offsetting certain costs reimbursed by the mattress recycling organization.

This bill would additionally authorize the department to impose civil penalties against distributors and to take those specified enforcement actions against distributors and recyclers. The bill would delete the authorization for the expenditure of these penalties to offset those reimbursed costs. The bill would also make technical and clarifying changes.

begin delete

(4)

end delete

begin insert(5)end insert Existing law authorizes the department to adopt emergency regulations relating to the used mattress recovery and recycling plan and the program budget. Existing law prohibits the department from adopting regulations with regard to any other provision of the act.

This bill would prohibit the department from adopting emergency regulations with regard to any other provision of the act.

Vote: majority. 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.  

Section 42986 of the Public Resources Code is
2amended to read:

3

42986.  

For purposes of this chapter, the following definitions
4shall apply:

5(a) (1) “Consumer” means an owner of a mattress, including a
6person, business, corporation, limited partnership, nonprofit
7organization, or governmental entity, and including the ultimate
8purchaser, owner, or lessee of a mattress.

9(2) “Consumer” does not include a government organization or
10other party that obtains one or more used mattresses in the course
11of collecting used mattresses for recycling for purposes of this
P4    1chapter, or through the ordinary collection and handling of
2municipal solid waste.

3(b) “Distributor” means a company that has a contractual
4relationship with one or more manufacturers to market and sell
5mattresses to retailers.

6(c) “Foundation” means a ticking-covered structure used to
7support a mattress or sleep surface. The structure may include
8constructed frames, foam, box springs, or other materials, used
9alone or in combination.

10(d) “Good faith effort” means all reasonable and economically
11practical efforts by a mattress recycling organization to implement
12the components identified in its approved plan consistent with its
13annual budget.

14(e) “Importer” means a party qualifying as an “importer of
15record” for purposes of Section 1484(a)(2)(B) of Title 19 of the
16United States Code, with regard to the import of a finished mattress
17sold in the state that was manufactured or assembled by a company
18outside the United States.

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

20(A) The person who manufactures a mattress and who sells,
21offers for sale, or distributes a mattress in the state.

22(B) If there is no person who is a manufacturer of a mattress
23for purposes of subparagraph (A), the manufacturer is the person
24who imports the mattress into the state for sale or distribution.

25(2) Except as provided pursuant to paragraph (2) of subdivision
26(b) of Section 42987, a retailer that brings a mattress into its store
27locations from an out-of-state warehouse or distribution center is
28not a manufacturer.

29(g) (1) “Mattress” means a resilient material or combination of
30materials that is enclosed by a ticking, is used alone or in
31combination with other products, and is intended for or promoted
32for sleeping upon.

33(2) “Mattress” includes a foundation and a renovated mattress
34or renovated foundation.

35(3) “Mattress” does not include the following:

36(A) An unattached mattress pad or unattached mattress topper,
37including items with resilient filling, with or without ticking,
38intended to be used with or on top of a mattress.

39(B) A sleeping bag or pillow.

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

P5    1(D) Juvenile products, including a carriage, basket, dressing
2table, stroller, playpen, infant carrier, lounge pad, or crib bumper,
3and the pads for those juvenile products.

4(E) A product containing liquid- and gaseous-filled ticking,
5including a water bed and air mattress that does not contain
6upholstery material between the ticking and the mattress core.

7(F) Upholstered furniture that does not otherwise contain a
8detachable mattress or that is a fold out sofa bed or futon.

9(h) “Mattress recycling organization” or “organization” means
10an organization exempt from taxation under Section 501(c)(3) or
11Section 501(c)(6) of the Internal Revenue Code of 1986, that is
12established by a qualified industry association, composed of
13manufacturers, renovators, and retailers, and certified pursuant to
14Section 42987, to develop, implement, and administer the mattress
15recycling program established pursuant to this chapter.

16(i) “Used mattress recovery and recycling plan” or “plan” means
17the plan for recycling used mattresses that is developed by the
18mattress recycling organization pursuant to this chapter.

19(j) “Program” or “used mattress recycling program” means the
20program implemented by the mattress recycling organization
21pursuant to a plan approved by the department.

22(k) “Qualified industry association” means the International
23Sleep Products Association or a successor of that organization, or
24a group of mattress manufacturers that collectively represent at
25least 35 percent of the volume of mattresses manufactured in the
26United States.

27(l) “Recycle” or “recycling” has the same meaning as defined
28in Section 40180.

29(m) “Recycler” means a person that engages in the manual or
30mechanical separation of mattresses to substantially recover
31components and commodities contained in mattresses for the
32purpose of reuse or recycling.

33(n) “Recycling charge” or “charge” means the charge imposed
34on the sale of a new or renovated mattress at the point of sale and
35collected by the organization to fund the recycling of used
36mattresses pursuant to this chapter.

37(o) (1) “Renovate” or “renovation” means altering a used
38mattress for the purpose of resale and includes one or more of the
39following:

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

P6    1(B) Adding additional filling.

2(C) Rebuilding a used mattress.

3(D) Replacing components with new or postconsumer materials
4unless the material is a clean recycled material, consists of used
5electronic parts or controls, or is a used mattress base that is not
6covered by ticking.

7(2) “Renovate” or “renovation” does not include any of the
8following:

9(A) Stripping a mattress of its ticking or filling without adding
10new material.

11(B) Sterilizing or sanitizing a mattress without otherwise altering
12the mattress.

13(C) Altering a mattress by a renovator when a person retains
14the altered mattress for lease, rental, or personal use.

15(D) Refurbishing that disqualifies a mattress for a yellow
16wholesale renovator tag to be affixed to the mattress, in accordance
17with the regulations adopted by the Department of Consumer
18Affairs.

19(p) “Renovator” means a person who renovates used mattresses
20for the purpose of sale, or offering for sale, in this state.

21(q) “Retailer” means a person who sells mattresses in the state
22or offers to a consumer a mattress in the state through any means,
23including, but not limited to, by remote offering, including sales
24outlets or catalogs, electronically through the Internet, by
25telephone, or through the mail.

26(r) “Sale” or “sell” means the transfer of title of a mattress for
27consideration, including by a manufacturer, a distributor, or a
28retailer for eventual consumption to a consumer in the state,
29including remote sales conducted through sales outlets, catalogs,
30or the Internet or any other similar electronic means. For purposes
31of this chapter, a long-term lease of not less than 12 months is the
32same as a sale.

33(s) “Solid waste facility” has the same meaning as that term is
34defined in Section 40194.

35(t) (1) “Ticking” means the outermost layer of fabric or related
36material of a mattress.

37(2) “Ticking” does not include another layer of fabric or related
38material that is quilted together with, or otherwise attached to, the
39outermost layer of fabric or related material.

P7    1(u) “Used mattress” means a mattress that has been abandoned
2or discarded by a consumer.

3

SEC. 2.  

Section 42987 of the Public Resources Code is
4amended to read:

5

42987.  

(a) (1) A qualified industry association or a successor
6organization may establish a mattress recycling organization for
7purposes of this chapter, which shall be composed of
8manufacturers, renovators, and retailers and be certified pursuant
9to this section to develop, implement, and administer the mattress
10recycling program established pursuant to this chapter.

11(2) Within 60 days of receipt of a request for certification, the
12department shall notify the requesting qualified industry association
13of the department’s decision whether or not to certify that a
14mattress recycling organization has been established by the
15qualified industry association or successor organization and is
16composed of manufacturers, renovators, and retailers for purposes
17of establishing the mattress recycling plan.

18(3) Prior to certification by the department, the department’s
19director shall appoint an advisory committee to be part of the
20mattress recycling organization.

21(A) The advisory committee may be comprised of members of
22the environmental community, solid waste industry, local
23government, and public and private representatives involved in
24the collection, processing and recycling of used mattresses, and
25other interested parties.

26(B) The mattress recycling organization shall consult the
27advisory committee at least once during the development and
28implementation of the plan required pursuant to Section 42987.1,
29and annually prior to the submittal of both an annual report required
30pursuant to Section 42990.1 and an annual budget required pursuant
31to Section 42988.

32(b) (1) Each manufacturer, retailer, and renovator shall register
33with the mattress recycling organization.

34(2) A retailer may register with the mattress recycling
35organization as a manufacturer for a brand for which there is not
36a registered manufacturer.

37(c) On and after January 1, 2016, a retailer shall not sell,
38distribute, or offer for sale a mattress in the state unless the retailer
39is in compliance with this chapter and the manufacturer or
P8    1renovator of the mattress sold by the retailer is listed in compliance
2with this chapter.

3(d) On and after January 1, 2016, a manufacturer or renovator
4shall not sell, offer for sale, or import a mattress in this state, or
5sell or distribute a mattress to a distributor or retailer, unless the
6manufacturer or renovator is in compliance with this chapter.

7

SEC. 3.  

Section 42987.1 of the Public Resources Code is
8amended to read:

9

42987.1.  

On or before July 1, 2015, the mattress recycling
10organization shall develop and submit to the department a plan for
11recycling used mattresses in the state in an economically efficient
12and practical manner that includes all of the following goals and
13elements:

14(a) Program objectives consistent with the state’s solid waste
15management hierarchy.

16(b) The names of manufacturers, renovators, and brands covered
17under the plan.

18(c) A consultation process with affected stakeholders, including,
19but not limited to, local government representatives, recyclers, and
20solid waste industry representatives.

21(d) Methods to increase the number of used mattresses diverted
22from landfills, reduce the number of illegally dumped used
23mattresses, and increase the quantity of used materials recovered
24through this process and recycled for other uses.

25(e) (1) The establishment and administration of a means for
26funding the plan in a manner that distributes the mattress recycling
27organization’s costs uniformly over all mattresses sold in the state.

28(2) The funding mechanism shall provide sufficient funding for
29the mattress recycling organization to carry out the plan, including
30the administrative, operational, and capital costs of the plan.

31(f) The publishing of an annual report for each calendar year of
32operation.

33(g) Conducting research, as needed, related to improving used
34mattress collection, dismantling, and recycling operations,
35including pilot programs to test new processes, methods, or
36equipment on a local, regional, or otherwise limited basis.

37(h) A program performance measurement that shall collect
38program data for the purpose of the annual report. The information
39shall include:

P9    1(1) A methodology for estimating the amount of mattresses sold
2in the state, used mattresses available for collection in the state,
3and for quantifying the number of used mattresses collected and
4recycled in the state.

5(2) A methodology for determining mattresses sold in the state
6by the manufacturers and renovators of the mattress recycling
7organization.

8(i) A description of methods used to coordinate activities with
9existing used mattress collecting and recycling programs, including
10existing nonprofit mattress recyclers, and with other relevant parties
11as appropriate, with regard to the proper management or recycling
12of discarded or abandoned mattresses, for purposes of providing
13the efficient delivery of services and avoiding unnecessary
14duplication of effort and expense.

15(j) Entering into contracts or agreements, which may include
16contracts and agreements with existing nonprofit or for-profit
17recyclers, that are necessary and proper for the mattress recycling
18organization to carry out these duties consistent with the terms of
19this chapter.

20(k) Establishment of a financial incentive to encourage parties
21to collect for recycling used mattresses discarded or illegally
22dumped in the state.

23(l) Ensuring, to the maximum extent possible, that urban and
24rural local governments and participating permitted solid waste
25facilities and authorized solid waste operations that accept
26mattresses are provided with a mechanism for the recovery of
27illegally disposed used mattresses that is funded at no additional
28cost to the local government, solid waste facility, or solid waste
29operation.

30(m) Developing processes to collect used mattresses from
31low-income communities for recycling in accordance with the
32poverty line annually established by the Secretary of California
33Health and Human Services pursuant to the federal Omnibus
34Budget Reconciliation Act of 1981 (Public Law 97-35), as
35amended.

36(n) Providing outreach efforts and education to consumers,
37manufacturers, and retailers, for the purpose of promoting the
38recycling of used mattresses and options available to consumers
39for the free dropoff of used mattresses.

P10   1(o) A provision that allows an individual to drop off, at no
2charge, a mattress at a recycler, renovator, mattress recycling
3center, permitted solid waste facility, authorized solid waste
4 operation, or other municipal facility that accepts mattresses
5consistent with state solid waste regulations, and that provides for
6the payment to a municipal or solid waste facility or operation that
7accepts mattresses an amount determined by the municipal or solid
8waste facility or operation and the mattress recycling organization
9to be reasonable for accepting, collecting, storing, transporting,
10and handling used mattresses.

11(p) Ensuring that the impact of Article XIII C of the California
12Constitution is addressed for local governments participating in
13the program.

14(q) A report from the advisory committee, established pursuant
15to paragraph (3) of subdivision (a) of Section 42987, which
16includes a summary of the consultative process between the
17advisory committee and the mattress recycling organization during
18 the development of the plan, as well as any other information
19deemed pertinent by the advisory committee to maximizing the
20recovery and recycling of used mattresses in the state.

21(r) Other information requested by the department that is
22reasonably related to compliance with the recycling plan and that
23the organization can reasonably compile.

24begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 42989.1 of the end insertbegin insertPublic Resources Codeend insertbegin insert is
25amended to read:end insert

26

42989.1.  

(a) Commencing 90 days after the date the department
27approvesbegin delete or conditionally approvesend delete thebegin delete planend deletebegin insert budgetend insert pursuant to
28Sectionbegin delete 42987.3end deletebegin insert 42988.1end insert, each manufacturer, renovator, retailer,
29or distributor that sells a mattress to a consumer or to the ultimate
30end user of the mattress in the state shall add the charge to the
31purchase price of the mattress and shall remit the charge collected
32to the mattress recycling organization.

33(b) In each transaction described in subdivision (a), the charge
34shall be clearly visible on the invoice, receipt, or functionally
35equivalent billing document provided by the seller to the consumer
36as a separate line item.

37(c) The mattress recycling organization shall develop
38reimbursement criteria to enable retailers to recover administrative
39costs associated with collecting the charge.

P11   1(d) The mattress recycling organization shall determine the rules
2and procedures that are necessary and proper to implement the
3collection of the charge in a fair, efficient, and lawful manner.

4

begin deleteSEC. 4.end delete
5begin insertSEC. 5.end insert  

Section 42990 of the Public Resources Code is
6amended to read:

7

42990.  

(a) The mattress recycling organization shall keep
8minutes, books, and records that clearly reflect the activities and
9transactions of the mattress recycling organization.

10(b) The accounting books of the mattress recycling organization
11shall be audited at the organization’s expense by an independent
12certified public accountant retained by the organization at least
13once each calendar year.

14(c) The mattress recycling organization shall arrange for the
15audit to be delivered to the department, along with the annual
16report required pursuant to Section 42990.1. The department shall
17review the audit for compliance with this chapter and consistency
18with the plan created pursuant to this chapter. The department shall
19notify the mattress recycling organization of any compliance issues
20or inconsistencies. The department shall not disclose any
21confidential proprietary information in the audit.

22(d) The department may conduct its own audit if it determines
23that an audit is necessary to enforce the requirements of this chapter
24and that the audit conducted pursuant to subdivision (b) is not
25adequate for this purpose. The mattress recycling organization
26may obtain copies of the audit upon request. The department shall
27not disclose any confidential proprietary information in the audit.

28

begin deleteSEC. 5.end delete
29begin insertSEC. 6.end insert  

Section 42991 of the Public Resources Code is
30amended to read:

31

42991.  

(a) On or before July 1, 2017, and annually thereafter,
32a person that is engaged in business as a recycler or renovator shall
33submit a report to the department that includes the following:

34(1) Quantitative information on the number of mattresses
35received and recycled or renovated in the state during the preceding
36calendar year.

37(2) Other information deemed necessary by the department that
38is reasonably related to compliance with this chapter and that can
39be reasonably compiled.

P12   1(b) For purposes of determining the used mattress recycling
2rate, on or before July 1, 2017, and annually thereafter, an operator
3of a solid waste facility or operation, shall report to the department,
4if requested, in a form and manner determined by the department,
5regarding the number of used mattresses received by that facility
6that were recycled, renovated, or disposed of within the state in
7the preceding calendar year.

8(c) The department shall make the information provided pursuant
9to this section available to interested parties and to the public. The
10department shall not disclose any confidential proprietary
11information.

12

begin deleteSEC. 6.end delete
13begin insertSEC. 7.end insert  

Section 42993.1 of the Public Resources Code is
14amended to read:

15

42993.1.  

(a) The department may impose an administrative
16civil penalty on any manufacturer, mattress recycling organization,
17distributor, recycler, renovator, or retailer that is in violation of
18this chapter. The amount of the administrative civil penalty shall
19not exceed five hundred dollars ($500) per day, but, if the violation
20is intentional, knowing, or reckless, the department may impose
21an administrative civil penalty of not more than five thousand
22dollars ($5,000) per day.

23(b) The department shall not impose a penalty on the mattress
24recycling organization pursuant to this section for a failure to
25comply with this chapter if the organization demonstrates it
26 received false or misleading information from a member of the
27organization or other party that was the direct cause of its failure
28to comply.

29(c) The department shall deposit all penalties collected pursuant
30to this section into the Mattress Recovery and Recycling Penalty
31Account, which is hereby created in the Used Mattress Recycling
32Fund. Upon appropriation by the Legislature, moneys deposited
33into the Mattress Recovery and Recycling Penalty Account shall
34be expended by the department to administer and enforce this
35chapter.

36

begin deleteSEC. 7.end delete
37begin insertSEC. 8.end insert  

Section 42993.2 of the Public Resources Code is
38amended to read:

39

42993.2.  

Upon a written finding that a manufacturer, mattress
40recycling organization, renovator, distributor, recycler, or retailer
P13   1has not met a material requirement of this chapter, in addition to
2any other penalties authorized under this chapter, the department
3may take any of the following actions, after affording the
4manufacturer, organization, renovator, or retailer a reasonable
5opportunity to respond to, or rebut, the finding, to ensure
6compliance with the requirements of this chapter:

7(a) Revoke the mattress recycling organization’s plan approval
8or require the mattress recycling organization to resubmit the plan.

9(b) Remove the manufacturer or renovator from the department’s
10Internet Web site and list of compliant manufacturers and
11renovators, as specified in Section 42993.

12(c) Require additional reporting requirements relating to
13compliance with the material requirement identified by the
14department.

15

begin deleteSEC. 8.end delete
16begin insertSEC. 9.end insert  

Section 42993.3 of the Public Resources Code is
17amended to read:

18

42993.3.  

(a) A manufacturer, renovator, distributor, recycler,
19retailer, and mattress recycling organization shall do both of the
20following:

21(1) Upon request, provide the department with reasonable and
22timely access, as determined by the department and as authorized
23pursuant to Title 13 (commencing with Section 1822.50) of Part
243 of the Code of Civil Procedure, to its facilities and operations,
25as necessary to determine compliance with this chapter.

26(2) Upon request, provide the department with relevant records
27necessary to determine compliance with this chapter.

28(b) The records required by this chapter shall be maintained and
29accessible for three years. All reports and records provided to the
30department pursuant to this chapter shall be provided under penalty
31of perjury.

32(c) The department may take disciplinary action against a
33manufacturer, renovator, distributor, recycler, retailer, or mattress
34recycling organization if the manufacturer, renovator, distributor,
35recycler, retailer, or mattress recycling organization fails to provide
36the department with the access required pursuant to this section,
37including, but not limited to, imposing penalties pursuant to Section
3842993.1 and posting an immediate notice on the department’s
39 Internet Web site pursuant to Section 42993 that the manufacturer
40or renovator is no longer in compliance with this chapter.

P14   1

begin deleteSEC. 9.end delete
2begin insertSEC. 10.end insert  

Section 42993.4 of the Public Resources Code is
3amended to read:

4

42993.4.  

(a) (1) The department may adopt emergency
5regulations to implement this chapter with regard to establishing
6a process for the submission of the used mattress recovery and
7recycling plan to the department, and the approval of that plan,
8pursuant to Section 42987.3 and for the submission of the proposed
9used mattress recycling program budget to the department, and
10the approval of the budget by the department, pursuant to Sections
1142988 and 42988.1.

12(2) The department shall not adopt emergency regulations
13pursuant to this section with regard to any other provision of this
14chapter.

15(3) This section does not limit the department’s authority to
16adopt regulations pursuant to Section 40502.

17(b) The emergency regulations adopted pursuant to this section
18shall be adopted in accordance with Chapter 3.5 (commencing
19with Section 11340) of Part 1 of Division 3 of Title 2 of the
20Government Code, and for the purposes of that chapter, including
21Section 11349.6 of the Government Code, the adoption of these
22regulations is an emergency and shall be considered by the Office
23of Administrative Law as necessary for the immediate preservation
24of the public peace, health, safety, and general welfare.
25Notwithstanding Chapter 3.5 (commencing with Section 11340)
26of Part 1 of Division 3 of Title 2 of the Government Code, any
27emergency regulations adopted by the department pursuant to this
28section shall be filed with the Office of Administrative Law.



O

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