BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 1274
                                                                  Page  1

          Date of Hearing:   July 2, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   SB 1274 (Hancock) - As Amended:  June 16, 2014 

          Policy Committee:                             Natural  
          ResourcesVote:9-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY

           This bill provides technical and clarifying revisions to the  
          Used Mattress Recovery and Recycling Act.  Specifically, this  
          bill:

          1)Revises the definition of "solid waste facility to conform to  
            the California Integrated Waste Management Act.  

          2)Prohibits CalRecycle from disclosing any confidential  
            proprietary information in an audit conducted by the  
            department or annual report submitted by recyclers and  
            renovators.  Changes the due date of the annual report from  
            July 1, 2017 to May 1, 2017, and specifies that the report be  
            submitted to CalRecycle and to the organization. 

          3)Adds authorized solid waste operations as eligible for  
            participation in the mattress recycling program.  Adds a  
            recycler, renovator, and authorized solid waste operation to  
            authorized used mattress drop off points for individuals at no  
            additional charge.

          4)Revises the reimbursement amount paid to mattress recyclers,  
            solid waste facilities, and solid waste operations.

          5)Authorizes CalRecycle to impose civil penalties against  
            distributors and take enforcement actions against distributors  
            and recyclers.  Deletes the authorization for the expenditure  
            of penalties to offset costs incurred by the department.

          6)Clarifies CalRecycle is prohibited from adopting emergency  
            regulations with regard to any provision of the Act other than  








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            the authorized adoption of emergency regulations relating to  
            the used mattress recovery and recycling plan and program  
            budget.

          7)Requires a manufacturer, renovator, retailer, or distributor  
            that sells a mattress to a consumer to add the charge to the  
            purchase price of the mattress and remit the charge collected  
            to the organization beginning 90 days after the date  
            CalRecycle approves the organization's budget, instead of 90  
            days after CalRecycle's approval of the plan.

           FISCAL EFFECT  

          Negligible
           

          COMMENTS  

           1)Rationale.   SB 254 (Hancock and Correa), chapter  388,  
            statutes of 2013, established the Used Mattress Recovery and  
            Recycling Act and required a mattress recycling organization  
            to develop and implement a manufacturer and retailer  
            stewardship program to recover and recycle used mattresses.  

          In signing SB 254, Governor Brown issued a signing message  
            directing CalRecyle to work with the authors of the bill to  
            clarify ambiguous language and provide further specificity.   
            This bill addresses the issues raised by Governor Brown in his  
            signing message and contains related technical and clarifying  
            changes.  

           2)Background.   According to the Product Stewardship Institute,  
            approximately 40 million mattresses and box springs are sold  
            in the United States each year for use in residential and  
            institutional settings.   It is estimated that over four  
            million mattresses and box springs were sold in California in  
            2010.  

            According to a case study prepared by UC Santa Barbara for  
            CalRecycle, it is estimated that around 4.2 million mattresses  
            and box springs reach the end of their lives in California  
            every year.  Whether they are recycled or disposed, used  
            mattresses represent a significant cost to manage.  Analysis  
            by the Product Stewardship Institute indicates that many local  
            governments are paying a per mattress disposal fee ranging  








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            from $9 to $30.
           
           3)Recycling Mattresses.   The recycling process for mattresses  
            and box springs consists of manually removing each layer of  
            material.  As a result, only a small percentage of mattresses  
            and box springs are dismantled and recycled.  

            According to St. Vincent DePaul-DR3 Recycling, there are  
            currently five used mattresses recycling companies in  
            California.  Up to 80% to 90% of a mattress can be recycled by  
            breaking it down into the different components.  Steel and  
            polyurethane foam are most valuable materials with  
            well-established markets, while cotton and wood materials can  
            also be captured and re-sold.  While some mattress components  
            have value, including steel springs and polyurethane foam,  
            there is still a net cost for collection and recycling which  
            discourages large-scale recycling.


           Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
          319-2081