BILL NUMBER: AB 2398 AMENDED
BILL TEXT
AMENDED IN SENATE AUGUST 20, 2010
AMENDED IN SENATE AUGUST 17, 2010
AMENDED IN SENATE JUNE 23, 2010
AMENDED IN ASSEMBLY MAY 28, 2010
AMENDED IN ASSEMBLY APRIL 14, 2010
INTRODUCED BY Assembly Member John A. Perez
FEBRUARY 19, 2010
An act to add Chapter 20 (commencing with Section 42970) to Part 3
of Division 30 of, and to repeal Section 42980 of, the Public
Resources Code, relating to recycling.
LEGISLATIVE COUNSEL'S DIGEST
AB 2398, as amended, John A. Perez. Product stewardship: carpet.
(1) The California Integrated Waste Management Act of 1989,
administered by the Department of Resources Recycling and Recovery,
is required to reduce, recycle, and reuse solid waste generated in
the state to the maximum extent feasible in an efficient
cost-effective manner to conserve water, energy, and other natural
resources.
The bill would require, by September 30, 2011, a manufacturer of
carpets sold in this state, individually or through a carpet
stewardship organization, to submit a carpet stewardship plan to the
department, which would be required to include specified elements,
including a funding mechanism that provides sufficient funding to
carry out the plan, including administrative, operational, and
capital costs of the plan. The bill would require the funding
mechanism to establish and provide for , on and after
January 1, 2013, a carpet stewardship assessment to be
added to the purchase price per unit of carpet sold by
a manufacturer, to be paid by each member of the carpet stewardship
organization on and after January 1, 2013 in the state
by a manufacturer to a California retailer or wholesaler or
otherwise sold for use in the state and would require each retailer
and wholesaler to add the assessment to the purchase price of all
carpet sold in the state .
The bill would require, until January 1, 2013
April 1, 2015 , the Carpet America Recovery Effort (CARE),
a 3rd-party nonprofit stewardship organization established
by the Carpet and Rug Institute , to serve as the carpet
stewardship organization and would allow, on and after
January 1, 2013 April 1, 2015 , a carpet
stewardship organization appointed by one or more manufacturers
, to submit a plan.
The bill would require, as of April July
1, 2011, until January 1, 2013, a manufacturer of carpet to add
an assessment of $0.05 per square yard upon the purchase price of
all carpet sold in the state by that manufacturer. The bill would
require the assessment to be remitted on a quarterly basis, as
appropriate, to CARE or would allow the manufacturer to retain that
assessment. The bill would require these revenues to be
expended spent by CARE or by an individual
manufacturer, prior to approval of its carpet stewardship plan, only
to implement early action measures that are consistent to achieve
measurable improvements in the landfill diversion and recycling of
postconsumer carpet.
The department would be required to, among other things, within 60
days after the department receives a plan, review and determine
whether the plan complies with the bill's requirements and notify the
submitter of its decision. The bill would specify that any plan not
approved by March 31, 2012, is out of compliance until determined to
be complete by the department.
The bill would provide that a manufacturer, wholesaler, or
retailer, on and after April 1, 2012, that offers carpet for sale or
promotional purposes without an approved plan for that carpet is not
in compliance with the act's requirements. The bill would
require the department, by July 1, 2012, and not later than January 1
and July 1 annually thereafter, to post a notice on its Internet Web
site listing manufacturers that are in compliance with the bill's
requirements. The bill would require a wholesaler or retailer that
distributes or sells carpets to monitor the department's Internet Web
site to determine if the sale of a manufacturer's carpet is in
compliance. The
The act would also require the carpet stewardship
organization to demonstrate to the department that it has achieved
continuous meaningful improvement in the rates of
recycling rate and diversion and other
specified goals in order to be in compliance.
Each manufacturer of carpet sold in the state, individually or
through a carpet stewardship organization, would be required to
prepare and submit to the department an annual report describing the
activities carried out pursuant to the carpet stewardship plan.
A manufacturer or carpet stewardship organization submitting a
carpet stewardship plan would be required to pay the department an
annual administrative fee when submitting the plan for review and
approval, as determined by the department. The bill would also
require the department to identify the direct development
or regulatory costs incurred by the department prior to the submittal
of carpet stewardship plans and to establish a fee in an amount
adequate to cover those costs, that would be required to be paid by a
carpet stewardship organization that submits a carpet stewardship
plan. The bill would provide for the imposition of
administrative civil penalties upon a person who violates the bill
and would provide that the manufacturer or carpet stewardship
organization whose plan is not approved by the department by March
31, 2012, is subject to those penalties until the plan is approved.
The department would be authorized to expend those fees and
penalties, upon appropriation by the Legislature, to administer the
bill's provisions. The bill would establish the Carpet
Stewardship Account in the Integrated Waste
Management Fund and would require the fees collected by the
department to be deposited in that account, for expenditure by the
department, upon appropriation by the Legislature, to cover the
department's cost to implement the bill's provisions. The bill would
also establish the Carpet Stewardship Penalty Subaccount in the
Integrated Waste Management Fund and would require that the civil
penalties collected by the department pursuant to the bill's
provisions be deposited in that subaccount, for expenditure by the
department, upon appropriation by the Legislature, to cover the
department's costs to implement the bill's provisions.
The bill would require the department and the Department of
General Services to complete a study, by January 1, 2014, that
examines the standard specifications
for carpet purchases by the state, as provided in the
NSF/ANSI 140-2007 Standard, Platinum Level, and to submit the study
to the Governor and the Legislature, including recommendations for
any appropriate changes to that standard.
The bill would provide that certain actions of a carpet
stewardship organization or its members are not violations of the
Cartwright Act or certain provisions regulating unfair business
practices or unfair competition.
The bill would require the Department of General
Services to revise relevant procurement rules to ensure
that postconsumer carpet that is removed from state buildings is
managed in a manner consistent with the purposes of the bill
.
(2) Existing law requires the Department of Toxic Substances
Control to adopt regulations to establish a process to identify and
prioritize chemicals or chemical ingredients in consumer products
that may be considered as being a chemical of concern, as prescribed,
and to establish a process for evaluating chemicals of concern in
consumer products, and their potential alternatives, to determine how
best to limit exposure or to reduce the level of hazard posed by a
chemical of concern.
This bill would require the Department of Toxic Substances Control
to fully consider the measures taken by the carpet industry pursuant
to the program established by the bill, and the results of those
measures, when considering whether to include carpet in the product
registry adopted under those provisions or to otherwise regulate
carpet pursuant to those provisions.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) Discarded carpet is one of the 10 most prevalent waste
materials in California landfills, equaling 3.2 percent of waste by
volume disposed of in California in 2008. Because carpet is heavy and
bulky, it imposes a significant solid waste management cost on local
governments.
(b) Numerous products can be manufactured from recycled carpets,
including carpet, carpet underlayment, automobile parts,
picnic tables, park benches carpet backing and backing
components, carpet fiber, carpet underlayment, plastics and
engineered materials , and erosion control products. Several
carpet recycling facilities currently operate in California,
producing products and feedstock for products made from recycled
carpet.
(c) The United States carpet industry has established a
third-party nonprofit organization, the Carpet America Recovery
Effort, also known as CARE, to increase the
work with state governments to increase the amount of recycling
and reuse of postconsumer carpet and reduce the amount of carpet
going to landfills.
(d) CARE represents at least 90 percent of United States carpet
manufacturers and 95 percent of the volume of carpet sold in the
United States.
(e) According to CARE, in 2008, the most recent year for which
data are available, 5.2 percent of carpet was diverted from landfills
and 4.3 percent was recycled.
(f) It is in the interest of the state to establish a program,
working to the extent feasible with the carpet industry and
related reclamation entities , to increase the landfill
diversion and recycling of postconsumer carpet generated in
California.
SEC. 2. Chapter 20 (commencing with Section 42970) is added to
Part 3 of Division 30 of the Public Resources Code, to read:
CHAPTER 20. PRODUCT STEWARDSHIP FOR CARPETS
42970. The purpose of this chapter is to increase the amount of
postconsumer carpet that is diverted from landfills and recycled into
secondary products or otherwise managed in a manner that is
consistent with the state's hierarchy for waste management practices
pursuant to Section 40051.
42971. For purposes of this chapter, and unless the context
otherwise requires, the definitions in this section govern the
construction of this chapter:
(a) "Brand" means a name, symbol, word, or mark that identifies
the carpet, rather than its components, and attributes the carpet to
the owner or licensee of the brand as the manufacturer.
(b) "CARE" means the Carpet America Recovery Effort, a third-party
nonprofit stewardship organization established by the
Carpet and Rug Institute carpet stewardship
organization incorporated as a nonprofit corporation pursuant to
Section 501(c)(3) of Title 26 of the United States Code in 2002 and
established to increase the reclamation and stewardship of
postconsumer carpet.
(c) "CARE MOU" means the 2012 Memorandum of Understanding for
Carpet Stewardship, as to be negotiated among the carpet industry,
states, and nongovernmental organization stakeholders as a successor
to the 2002 memorandum of understanding.
(c)
(d) (1) "Carpet" means a manufactured article that is
used in commercial or residential buildings affixed or placed on the
floor or building walking surface as a decorative or functional
building interior feature and that is primarily constructed of a top
visible surface of synthetic face fibers or yarns or tufts attached
to a backing system derived from synthetic or natural materials.
(2) "Carpet" includes, but is not limited to, a commercial or a
residential broadloom carpet or modular carpet tiles.
(3) "Carpet" does not include a rug, pad, cushion, or underlayment
used in conjunction with, or separately from, a carpet.
(d)
(e) (1) "Carpet stewardship organization" or
"organization" means either of the following:
(A) An organization appointed by one or more manufacturers to act
as an agent on behalf of the manufacturer to design, submit, and
administer a carpet stewardship plan pursuant to this chapter.
(B) A carpet manufacturer that complies with this chapter as an
individual manufacturer.
(2) Notwithstanding paragraph (1), until January 1, 2013
April 1, 2015 , CARE shall be the sole carpet
stewardship organization pursuant to subparagraph (A) of paragraph
(1).
This paragraph does not restrict the option of an individual
carpet manufacturer to comply with this chapter as a carpet
stewardship organization, on and after January 1, 2011, pursuant to
subparagraph (B) of paragraph (1).
(e)
(f) "Carpet stewardship plan" or "plan" means a plan
written by an individual manufacturer or a carpet stewardship
organization, on behalf of one or more manufacturers, that includes
all of the information required by Section 42972.
(f) "Consumer" means a purchaser or owner
(g) "Consumer" means a purchaser,
owner, or lessee of carpet, including a person, business,
corporation, limited partnership, nonprofit organization, or
governmental entity.
(g)
(h) "Department" means the Department of Resources
Recycling and Recovery.
(h)
(i) "Label" means a graphic representation of three
chasing arrows with a carpet roll inside the arrows, or an
alternative design, designed by CARE , after consultation with
retailers and wholesalers, and approved by the department for
use on all invoices and contracts or
functionally equivalent billing documents pursuant to
subparagraph (C) of paragraph (3) of subdivision (c) of Section
42972.
(i)
(j) "Manufacturer" means, with regard to a carpet that
is sold, offered for sale, or distributed in the state any of the
following:
(1) The person who manufactures the carpet and who sells, offers
for sale, or distributes that carpet in the state under that person's
own name or brand.
(2) If there is no person who sells, offers for sale, or
distributes the carpet in the state under the person's own name or
brand, the manufacturer of the carpet is the owner or licensee of a
trademark or brand under which the carpet is sold or distributed in
the state, whether or not the trademark is registered.
(3) If there is no person who is a manufacturer of the carpet for
the purpose of paragraphs (1) and (2), the manufacturer of that
carpet is the person who imports the carpet into the state for sale
or distribution.
(j)
(k) "Postconsumer carpet" means carpet that is no
longer used for its manufactured purpose.
(k) "Program" means the system for the collection, transportation,
recycling, and disposal of carpets pursuant to a completed carpet
stewardship plan that is financed and managed or provided by an
individual manufacturer or collectively by one or more manufacturers.
(l) "Recycling" means the process, consistent with Section 40180,
of converting postconsumer carpet into a useful product that meets
the quality standards necessary to be used in the marketplace.
(m) "Retailer" means a person who offers new carpet in a retail
sale, as defined in Section 6007 of the Revenue and Taxation Code,
including a retail sale through any means, including remote offerings
such as sales outlets, catalogs, or an Internet Web site or other
similar electronic means.
(n) "Sell" or "sales" means a transfer of title of a carpet for
consideration, including a remote sale conducted through a sales
outlet, catalog, Internet Web site or similar electronic
means, but does not include a lease means. For
purposes of this chapter, "sell" or "sales" includes a lease through
which a carpet is provided to a consumer by a manufacturer,
wholesaler, or retailer .
(o) "Wholesaler" means a person who offers new carpet for sale in
this state in a sale that is not a retail sale, as defined in Section
6007 of the Revenue and Taxation Code, and in which the carpet is
intended to be resold.
42972. (a) On or before September 30, 2011, a manufacturer of
carpets sold in this state shall, individually or through a carpet
stewardship organization, submit a carpet stewardship plan to the
department that will do all of the following:
(1) Achieve the purposes of this chapter, as described in Section
42970, and meet the requirements of Section 42975.
(2) Include goals that, to the extent feasible based on available
technology and information, increase the recycling of postconsumer
carpet by increasing carpet, increase
the diversion of postconsumer carpets from landfills,
increasing increase the recyclability of
carpets, and incentivizing incentivize
the market growth of secondary products made from postconsumer
carpet. The goals established in the plan shall, at a minimum, be
equal to the goals established in a national memorandum of
understanding for carpet stewardship, if one exists at the time the
equal to the goals established in the CARE MOU, if it
has been adopted at the time the plan is submitted to the
department.
(3) Describe measures that will be taken to manage
(3) Describe proposed measures that
will enable the management of postconsumer carpet in a manner
consistent with the state's solid waste management hierarchy,
including, but not limited to, source reduction, source separation
and processing to segregate and recover recyclable materials, and
environmentally safe management of materials that cannot feasibly be
recycled.
(4) Include a funding mechanism, consistent with subdivision (c),
that provides sufficient funding to carry out the plan, including the
administrative, operational, and capital costs of the plan ,
payment of fees pursuant to Section 42977, and incentive payments
that will advance the purposes of this chapter .
(5) Include education and outreach efforts to consumers,
commercial building owners, carpet installation contractors,
and retailers to promote their participation in achieving the
purposes of the carpet stewardship plan as described in paragraph
(1). These education and outreach materials may include, but are not
limited to, any of the following:
(A) Signage that is prominently displayed and easily visible to
the consumer.
(B) Written materials and templates of materials for reproduction
by retailers to be provided to carpet installation contractors and
consumers at the time of purchase or delivery or both.
(C) Promotional materials or activities, or both, that explain the
purpose of carpet stewardship and the means by which it is being
carried out.
(6) Include a process by which the financial activities of the
organization or individual manufacturer that are related to
implementation of the plan will be subject to an independent audit,
which may be reviewed by the department.
(b) The plan prepared pursuant to this section shall be designed
to accept and manage all suitable postconsumer carpet, regardless of
polymer type or primary materials of construction.
(c) (1) The funding mechanism required pursuant to paragraph (4)
of subdivision (a) shall provide for
establish and provide for, on and after January 1, 2013, a
carpet stewardship assessment per unit of carpet sold by a
manufacturer in the state, as determined in the plan, to be paid by
each member of the carpet stewardship organization on and after
January 1, 2013, in an amount that cumulatively will adequately fund
the plan. The assessment per unit of carpet sold in
the state in an amount that cumulatively will adequately fund the
plan and be consistent with the purposes of the chapter. The
assessment shall be remitted to the carpet stewardship organization
on a quarterly basis and the carpet stewardship organization may
expend the assessment only to carry out the plan.
(2) The amount of the assessment and the anticipated revenues from
the assessment shall be specified in the plan and shall be approved
by the department as part of the plan. The amount of the
assessment shall be sufficient to meet, but not exceed, the
anticipated cost of carrying out the plan. The assessment
shall not be used competitively by the carpet stewardship
organization or an individual manufacturer. carrying
out the plan. The amount of the assessment shall not create an unfair
advantage in the marketplace.
(3) The assessment established pursuant to this subdivision and
Section 42972.5 is exempt from the taxes imposed by Part 1
(commencing with Section 6001) of Division 2 of the Revenue and
Taxation Code and shall meet both of the following requirements:
(A) The assessment shall be added by a manufacturer to the
purchase price of all carpet covered by the plan that is
sold to a retailer or a wholesaler or otherwise sold for use in the
state. purchase price of all carpet sold by
manufacturers to a California retailer or wholesaler or otherwise
sold for use in the state.
(B) Each retailer and wholesaler shall add the assessment to
the purchase price of all carpet sold in the state. The
assessment shall be clearly visible on all invoices and
contracts or functionally equivalent billing documents
as a separate line item and shall be accompanied by a label
approved by the department.
(d) A carpet stewardship organization that submits a plan pursuant
to this section shall consult with retailers and wholesalers in the
development of the plan, in order to minimize the impacts of the plan
on retailers and wholesalers.
(e) A carpet stewardship organization shall notify the department
within 30 days after instituting a significant or material change to
an approved carpet stewardship plan.
42972.5. (a) Notwithstanding paragraph (1) of subdivision
(c) of Section 42972, on and after April
July 1, 2011, but not on or after January 1, 2013, a
manufacturer of carpet shall add a carpet stewardship assessment of
five cents ($0.05) per square yard to the purchase price of all
carpet sold in the state by that manufacturer. The assessment added
pursuant to this subdivision shall be remitted on a quarterly basis,
as appropriate, to CARE or be retained by the individual manufacturer
referred to in subparagraph (B) of paragraph (1) of subdivision (d)
of Section 42971, for expenditure pursuant to subdivision (b).
(b) Revenues derived from the assessment imposed pursuant to
subdivision (a) shall only be expended by CARE or by an individual
manufacturer, prior to approval of its carpet stewardship plan, to
(b) Prior to approval of a carpet
stewardship plan, CARE or an individual manufacturer shall spend
revenues from the assessment imposed pursuant to subdivision (a) only
to implement early action measures that are consistent with
the purposes of this chapter and that are designed to achieve
measurable improvements in the landfill diversion and recycling of
postconsumer carpet.
42973. (a) (1) Within 60 days after the department receives a
plan submitted pursuant to Section 42972, it shall review the plan,
determine whether it complies with Section 42972, and notify the
submitter of its decision to approve or not approve the plan.
(2) On or after January 1, 2013 April 1,
2015 , an organization appointed by one or more manufacturers
to act as an agent on behalf of the manufacturer to design, submit,
and administer a carpet stewardship plan pursuant to this chapter may
submit a plan to the department pursuant to Section 42972 and that
plan may be approved by the department, subject to the requirements
of paragraph (1), only if the department makes both of the following
findings:
(A) The plan will not have the effect of reducing the level of
diversion and recycling of postconsumer carpet that has been achieved
pursuant to this chapter at the time the department reviews the
plan.
(B) The funding mechanism amount of the
assessment in the plan will not create an unfair advantage in
the marketplace for one or more of the companies in the organization.
(b) If the department does not approve the plan, it shall describe
the reasons for its disapproval in the notice. The submitter may
revise and resubmit the plan within 60 days after receiving notice of
disapproval and the department shall review and approve or not
approve the revised plan within 60 days after receipt. Any plan not
approved by March 31, 2012, shall be out of compliance with this
chapter and the submitter of the plan is subject to the penalties
specified in Section 42978 until the plan is approved by the
department.
42974. (a) (1) The
department shall enforce this chapter.
(2) In enforcing this chapter, the department shall, as part of
this enforcement authority, review the annual report prepared
pursuant to Section 42976 and within 90 days of receipt, determine
whether the submitter of the plan is in compliance with this chapter.
(b) On and after April 1, 2012, a manufacturer, wholesaler, or
retailer that offers a carpet for sale in this state, or who offers a
carpet for promotional purposes in this state, is not in compliance
with this chapter and is subject to penalties pursuant to Section
42978, if the carpet is not subject to a plan that is submitted by an
organization that includes the manufacturer of that carpet, which
plan has been approved by the department pursuant to Section 42973.
(c) (1) On July 1, 2012, and not later than January 1 and July 1
annually thereafter, the department shall post a notice on its
Internet Web site listing manufacturers that are in compliance with
this chapter.
(2) A manufacturer that is not listed on the department's Internet
Web site pursuant to this subdivision, but demonstrates to the
satisfaction of the department that the manufacturer is in compliance
with this chapter before the next notice is required to be posted,
may request a certification letter from the department stating that
the manufacturer is in compliance. The letter shall constitute proof
of compliance with this chapter.
(d) A wholesaler or retailer that distributes or sells carpet
shall monitor the department's Internet Web site to determine if the
sale of a manufacturer's carpet is in compliance with the
requirements of this chapter.
42975. (a) In order to achieve compliance with this chapter, a
carpet stewardship organization shall, on or before July 1, 2013, and
annually thereafter, demonstrate to the department that it has
achieved continuous meaningful improvement in the rate of
recycling rates of recycling and diversion of
postconsumer carpet subject to its stewardship plan and in
meeting the other goals included in the organization's plan pursuant
to paragraph (2) of subdivision (a) of Section 42972 . In
determining compliance, the department shall consider all of the
following:
(1) The baseline rate of compliance against which the demonstrated
improvement is compared.
(2) The goals included in the organization's plan pursuant to
paragraph (2) of subdivision (a) of Section 42972.
(3) The goals included in a national memorandum of understanding
for carpet stewardship.
(2) The goals included in the CARE MOU.
(4)
(3) Information provided in the organization's report
to the department pursuant to Section 42976.
(b) The percentage of carpet that has been recycled shall be
calculated by a method adopted by the department after consulting
with carpet stewardship organizations and taking into account the
information provided to the department in its annual report pursuant
to Section 42976.
(c)
(b) If more than one organization submits a carpet
stewardship plan pursuant to this chapter, the department shall use
information submitted by the organization in its annual report
pursuant to Section 42976 to determine the recycling rate
to what extent the recycling and diversion rates and
the achievement of the other goals included in the plan are
attributable to each organization and shall determine compliance with
this chapter in accordance with that plan's recycling rate.
accordingly.
42976. On or before July 1, 2013, and each year thereafter, a
manufacturer of carpet sold in the state shall, individually or
through a carpet stewardship organization, submit to the department a
report describing its activities to achieve the purposes of this
chapter, as described in Section 42970, and to comply with Section
42975. At a minimum, the report shall include all of the following:
(a) The total volume amount of carpet
sold by square yards and weight, in the state during the reporting
period. A carpet stewardship organization with more than one
manufacturer may use average weight.
(b) The total volume amount of
postconsumer carpet recycled, by weight, in the state
during the reporting period.
(c) The total volume amount of
postconsumer carpet recovered but not recycled, by weight, and its
ultimate disposition.
(d) The total cost of implementing the carpet stewardship
program and other elements of the carpet stewardship plan.
plan.
(e) An evaluation of the effectiveness of the program,
its funding mechanism, and other elements of the
carpet stewardship plan, and anticipated steps, if needed, to
improve performance.
(f) Examples of educational materials that were provided to
consumers during the reporting period.
42977. (a) The carpet stewardship organization submitting a
carpet stewardship plan shall pay the department an annual
administrative fee. The department shall set the fee at an amount
that, when paid by every carpet stewardship organization that submits
a carpet stewardship plan, is adequate to cover the department's
full costs of administering and enforcing this chapter, including any
program development costs or regulatory costs incurred by the
department prior to carpet stewardship plans being submitted. The
department may establish a variable fee based on relevant factors,
including, but not limited to, the portion of carpets sold in the
state by members of the organization compared to the total amount of
carpet sold in the state by all organizations submitting a carpet
stewardship plan.
(b) The total amount of annual fees collected pursuant to this
section shall not exceed the amount necessary to recover costs
incurred by the department in connection with the administration and
enforcement of the requirements of this chapter. The
department may expend those annual fees, upon appropriation by the
Legislature, to recover those costs.
(c) The department shall identify the direct development or
regulatory costs it incurs pursuant to this chapter prior to the
submittal of a carpet stewardship plan and shall establish a fee in
an amount adequate to cover those costs, which shall be paid by a
carpet stewardship organization that submits a carpet stewardship
plan. The fee established pursuant to this subdivision shall be paid
in three equal payments pursuant to the schedule specified in
subdivision (d).
(d) A carpet stewardship organization subject to this section
shall pay the department the administrative fee pursuant to
subdivision (a) on or before July 1, 2012, and annually thereafter
and the applicable portion of the fee pursuant to subdivision (c) on
July 1, 2012, and annually thereafter through July 1, 2014. Each year
after the initial payment, the annual administrative fee may not
exceed 5 percent of the aggregate assessment collected for the
preceding calendar year.
(e) The department shall deposit the fees collected pursuant to
this section into the Carpet Stewardship Account created pursuant to
Section 42977.1.
42977.1. (a) The Carpet Stewardship Account and the Carpet
Stewardship Penalty Subaccount are hereby established in the
Integrated Waste Management Fund.
(b) All fees collected by the department pursuant to this article
shall be deposited in the Carpet Stewardship Account and may be
expended by the department, upon appropriation by the Legislature, to
cover the department's costs to implement this chapter.
(c) All civil penalties collected pursuant to this article shall
be deposited in the Carpet Stewardship Penalty Subaccount and may be
expended by the department, upon appropriation by the Legislature, to
cover the department's costs to implement this chapter.
42978. (a) A civil penalty up to the following amounts may be
administratively imposed by the department on any person who is in
violation of any provision of this chapter:
(1) One thousand dollars ($1,000) per day.
(2) Ten thousand dollars ($10,000) per day if the violation is
intentional, knowing, or negligent.
(b) Any penalties collected by the department may be expended by
the department, upon appropriation by the Legislature, to offset the
cost of administering and enforcing this chapter.
(b) In assessing or reviewing the amount of a civil penalty
imposed pursuant to subdivision (a) for a violation of this chapter,
the department or the court shall consider all of the following:
(1) The nature and extent of the violation.
(2) The number and severity of the violation or violations.
(3) The economic effect of the penalty on the violator.
(4) Whether the violator took good faith measures to comply with
this chapter and the period of time over which these measures were
taken.
(5) The willfulness of the violator's misconduct.
(6) The deterrent effect that the imposition of the penalty would
have on both the violator and the regulated community.
(7) Any other factor that justice may require.
42979. (a) This chapter does not limit, supersede, duplicate, or
otherwise conflict with the authority of the Department of Toxic
Substances Control under Section 25257.1 of the Health and Safety
Code to fully implement Article 14 (commencing with Section 25251) of
Chapter 6.5 of Division 20 of the Health and Safety Code, including
the authority of the department to include a carpet in a product
registry adopted pursuant to that article.
(b) Notwithstanding subdivision (a), the Department of Toxic
Substances Control shall fully consider the measures taken by the
carpet industry pursuant to this chapter, and the results of those
measures, when considering whether to include carpet in a product
registry adopted pursuant to, or to otherwise regulate carpet
pursuant to, Article 14 (commencing with Section 25251) of Chapter
6.5 of Division 20 of the Health and Safety Code.
42980. (a) On or before January 1, 2014, the department and the
Department of General Services shall complete a study that examines
the standard specifications for carpet
purchases by the state, as provided in the American National
Standards Institute (NSF/ANSI) 140-2007
140-2009 Standard, Platinum Level, as in effect on January 1,
2011 or the most current version in effect , and shall
submit the study to the Governor and the Legislature pursuant to
Section 9795 of the Government Code, including recommendation for any
appropriate changes to that standard. In examining the standard and
recommending changes to the standard, the department and the
Department of General Services shall consider all of the following:
(1) Any changes to the standard that would further the purpose of
this chapter.
(2) Any changes to the standard that would improve the
environmental sustainability of carpet purchased by the state.
(3) The life-cycle impacts of proposed changes to the standard.
(4) The impacts of the proposed changes to the standard on source
reduction.
(5) The impacts of the proposed changes to the standard on the
recyclability of carpet.
(6) Economic and technological barriers to the proposed changes to
the standard.
(b) The department and Department of General Services shall hold
at least one workshop to receive comments from interested
stakeholders prior to the completion of the study.
(c) Pursuant to Section 10231.5 of the Government Code, this
section is repealed on January 1, 2018.
42981. (a) Except as provided in subdivision (b), any action by a
carpet stewardship 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):
(1) The creation, implementation, or management of a carpet
stewardship plan approved by the department pursuant to Section 42973
and the types or quantities of carpet being recycled or otherwise
managed as described in Section 42970.
(2) The cost and structure of an approved carpet stewardship plan.
(3) The establishment, administration, or disbursement of a carpet
stewardship assessment as described in Section 42972 or 42972.5.
(b) Subdivision (a) does not apply to an agreement that does any
of the following:
(1) Fixes a price of or for carpet, except for any agreement
related to a carpet stewardship assessment pursuant to Section
42972.5 or to a carpet stewardship plan approved by the department
and otherwise in accordance with this chapter.
(2) Fixes the output of production of carpet.
(3) Restricts the geographic area in which, or customers to whom,
carpet will be sold.
42982. The Department of General Services shall, to the extent
feasible and within existing resources, take appropriate steps,
including, but not limited to, revising relevant procurement rules,
to ensure that postconsumer carpet that is removed from state
buildings is managed in a manner consistent with the purpose of this
chapter.
42983. It is the intent of the Legislature to review any federal
law that has the purpose of managing postconsumer carpet in a manner
consistent with this chapter and to consider the extent to which the
program created by that federal law will, at a minimum, achieve the
same levels of landfill diversion and recycling of postconsumer
carpet in California as this chapter.