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 SB 1274 Page 2 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 SB 1274 Page 3 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