BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1118
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          Date of Hearing:  July 2, 2012

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                    SB 1118 (Hancock) - As Amended:  June 25, 2012

           SENATE VOTE  :  21-17
           
          SUBJECT  :  Solid waste:  used mattresses

           SUMMARY  :  Establishes the Used Mattress Recovery and Recycling 
          Act (Act), which requires manufacturers of mattresses sold in 
          California to submit a mattress recovery and recycling plan 
          (plan) to the Department of Resources Recovery and Recycling 
          (CalRecycle) by April 1, 2013 and to implement the plan by July 
          1, 2013.  

           EXISTING LAW  : 

          1)Under the California Integrated Waste Management Act of 1989, 
            requires each city or county source reduction and recycling 
            element to include an implementation schedule that shows a 
            city or county must divert 25% of solid waste from landfill 
            disposal or transformation by January 1, 1995, through source 
            reduction, recycling, and composting activities, and must 
            divert 50% of solid waste on and after January 1, 2000.  The 
            Act establishes a statewide policy goal that not less than 75% 
            of solid waste be source reduced, recycled, or composted on 
            and after January 1, 2020.  

          2)Establishes the California Oil Recycling Enhancement Act, 
            which requires manufacturers of used oil to pay a fee of 4 
            cents per quart (16 cents per gallon) to CalRecycle, which 
            then pays a recycling incentive of 4 cents per quart to 
            industrial generators, curbside collection program operators, 
            and certified used oil collection center for used oil 
            collected from the public and transported for recycling.  This 
            Act includes related grants and loans, development and 
            implementation of an information and education program, and a 
            reporting, monitoring, and enforcement program.  

          3)Establishes the Electronic Waste Recycling Act of 2003, which 
            requires a retailer selling a covered electronic device (CED) 
            in California to collect a recycling fee (between $8 and $25) 
            from the consumer.  Fees are deposited into the Electronic 








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            Waste Recovery and Recycling Account, which is continually 
            appropriated to DRRR and the Department of Toxic Substances 
            Control (DTSC) to make electronic waste recovery payments to 
            cover the net cost of an authorized collector in operating a 
            "free and convenient" system for collecting, consolidating, 
            and transporting CEDs, and to make electronic waste recycling 
            payments to cover an electronic waste recycler's average net 
            cost of receiving, processing, and recycling CEDs.  The Act 
            defines CED as a product that contains a video display device 
            4 inches and larger.  

          4)Establishes the Cell Phone Recycling Act, which requires every 
            retailer of cell phones to have in place a system for the 
            acceptance and collection of used cell phones for reuse, 
            recycling, or proper disposal.  

          5)Establishes the Rechargeable Battery Recycling Act, which 
            requires every retailer of rechargeable batteries to have in 
            place a system for the acceptance and collection of used 
            rechargeable batteries for reuse, recycling, or proper 
            disposal.  

          6)Establishes the Dry Cell Battery Management Act, which 
            establishes requirements for the production and labeling of 
            consumer products with dry cell batteries and sets limits on 
            the amount of mercury in those batteries.  

          7)Establishes the Mercury Thermostat Collection Act, which 
            requires manufacturers to establish and maintain a program for 
            out-of-service mercury-added thermostats.  Requires the 
            program to include collection, handling, and arranging for 
            appropriate management of out-of-service mercury-added 
            thermostats.   

          8)Requires pharmaceutical manufacturers that sell or distribute 
            a medication in California, which is usually self-injected at 
            home with a hypodermic needle to submit to the DRRR a plan 
            that describes any actions taken by the manufacturer for the 
            safe collection and proper disposal of the waste devices by 
            July 1, 2010, and annually thereafter.  

          9)Establishes the Product Stewardship for Carpets Program, which 
            requires manufacturers of carpet sold in California to submit 
            a carpet product stewardship plan to CalRecycle that 
            demonstrates how it will manage its waste carpet. 








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          10)Establishes the Architectural Paint Recovery Program, which 
            requires architectural paint manufacturers to develop and 
            implement a program to manage waste latex paint.  

           THIS BILL  :  Establishes the Used Mattress Recovery and Recycling 
          Act, which: 

          1)States that in order to reduce illegal dumping, increase 
            recycling, and substantially reduce public agency costs for 
            the end-of-life management of used mattresses, the Act 
            requires manufacturers of mattresses sold in the state to 
            develop, finance, and implement a convenient and 
            cost-effective program to collect and recycle used mattresses. 
             Clarifies that the program developed by manufacturers "shall 
            be capable of the recovery and recycling of at least 75 
            percent of used mattresses generated in this state annually on 
            and after January 1, 2020."  

          2)Defines terms used in the Act, including: 

             a)   "Manufacturer" as a person who manufactures or renovates 
               a mattress that is sold, offered for sale, or distributed 
               in the state under that person's own name or brand, 
               including:  the owner of a trademark or brand under which a 
               mattress is sold, offered for sale, or distributed in this 
               state whether or not the trademark of brand is registered 
               in the state; and, a person who imports a mattress into the 
               United States that is sold or offered for sale in the state 
               and that is manufactured or renovated by a person who does 
               not have a presence in the United States; 

             b)   "Mattress" as a large, thick pad of twin size or larger 
               filled with resilient material, including a pad 
               incorporating coiled springs, used as a bed or part of a 
               bed, including, but not limited to, an inner spring 
               mattress, a foam mattress, and "a box spring and mattress 
               used in conjunction with a futon frame."  

             c)   "Mattress recovery and recycling plan" as the plan 
               submitted to CalRecycle; 

             d)   "Retailer" as a person who sells mattresses in the state 
               or offers to consumers mattresses in the state through any 
               means, including, but not limited to, by remote offering 








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               such as sales outlets, catalogs, or the Internet.   

             e)   "Used mattress" as a mattress that is no longer wanted 
               by its owner and is discarded or intended to be discarded.  


          3)On or before April 1, 2013, requires a manufacturer 
            individually, collectively, or through a third party, to 
            submit a plan to CalRecycle.  

          4)Requires that the plan include:   

             a)   Provisions to ensure that when new mattresses are 
               delivered to a consumer, the consumer is given the option 
               to have an "equivalent used mattress" picked up for 
               recovery at the time of delivery at no additional cost to 
               the consumer or retailer. 

             b)   Arrangements when a mattress is sold to a consumer for 
               the drop off of an equivalent used mattress at a recycling 
               facility at no cost to the consumer or retailer. 

             c)   Techniques designed to prevent and mitigate the illegal 
               discarding of mattresses.  

             d)   Arrangements for the pickup of used mattresses that have 
               been accepted at solid waste facilities and for the 
               delivery of those used mattresses to a recycling facility.  


             e)   Policies to ensure there are adequate and convenient 
               opportunities for the collection, acceptance, and recovery 
               for recycling of used mattresses in low-income, rural, and 
               other communities where illegal dumping of mattresses has 
               been a historical problem. 

             f)   Provisions designed to meet the following recycling 
               targets and methods for demonstrating the achievement: 

               i)     By January 1, 2015, recycling not less than 25 
                 percent of mattresses generated in the state; 

               ii)    By January 1, 2017, recycling not less than 50 
                 percent of used mattresses generated in the state; and,









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               iii)   On and after January 1, 2020, recycling not less 
                 than 75 percent of used mattresses generated in the 
                 state.  

             g)   Provisions for a financial mechanism for implementing 
               the plan.  

          5)Specifies that a manufacturer, individually or through a 
            designated third party, may coordinate with local governments, 
            solid waste facilities, retailers, and mattress recyclers to 
            achieve the purposes of the Act.  

          6)On and after July 1, 2013, requires retailers to offer 
            consumers the option to have an "equivalent used mattress" 
            picked up for recovery at the time of delivery, at no 
            additional cost to the consumer.  Authorizes retailers to 
            contract with third-parties for this purpose.  

          7)Prohibits a manufacturer or retailer from selling or offering 
            for sale a mattress to any person unless the manufacturer is 
            in compliance with the Act.  

          8)Specifies that a manufacturer is in compliance with the Act if 
            the following requirements are met:  

             a)   On or before April 1, 2013, submits a plan to 
               CalRecycle; and,

             b)   On and after July 1, 2013, implements the plan that 
               CalRecycle has determined meets the requirements of the 
               Act; 

          9)Requires CalRecycle to review a plan submitted by a 
            manufacturer and, within 90 days, adopt a finding of the 
            plan's compliance or noncompliance with the Act.  

          10)Requires a manufacturer that submits a plan to pay an annual 
            administrative fee, as determined by CalRecycle for the 
            reasonable regulatory costs incident to performing any audits 
            and inspections necessary to enforce this provisions of the 
            Act and for the administrative enforcement costs and 
            adjudication thereof.  

          11)Authorizes CalRecycle to establish a variable fee, as 
            specified.  








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          12)Authorizes CalRecycle to impost administrative civil 
            penalties for violations of the Act.  The penalty is not to 
            exceed $1,000 per day, unless the violation is intentional, 
            knowing, or negligent, in which case the fee is not to exceed 
            $10,000 per day.  In determining penalties, requires 
            CalRecycle or the court to consider a number of factors, 
            including the nature of the violation, the economic impact of 
            the penalty, whether or not the violator took good faith 
            measures to comply, the willfulness of the violation, the 
            deterrent effect of the penalty, and "any other factor justice 
            may require."  

          13)Establishes the Mattress Recovery and Recycling Account and 
            the Mattress Recovery and Recycling Penalty Account.  

           FISCAL EFFECT  :  Unknown.  

           COMMENTS  :
           
          This bill  :  According to the author, "In recent years, the 
          problem of illegally dumped mattresses has become more and more 
          serious, especially in the parts of the state that have been 
          hardest hit by the recent recession.  The accumulation of these 
          used mattresses in public spaces, especially if left for �a] 
          long period of time, can pose a serious public health problem.  
          Used mattresses can be a breeding ground for mold and pests.  
          The scope of the problem is real and growing.  In Oakland, for 
          example, between 18 and 35 mattresses are recovered by the City 
          per day.  The City estimates that municipal operations devoted 
          to recovering these mattresses costs approximately $500,000 
          annually.  The City of Richmond estimates that it has recovered 
          approximately 5,000 illegally dumped mattresses from December 
          2010 to March 2012.  The City of Los Angeles estimates that it 
          recovers 120-150 illegally dumped mattresses per day.  The City 
          and County of San Francisco recovers approximately 75 to 80 
          mattresses per day."  The author states that this bill provides 
          a method to recover and recycle used mattresses to minimize 
          illegal disposal.  
           
          Mattress management  :  Mattresses and box springs are difficult 
          to move and inconvenient to dispose of properly, resulting in 
          high levels of illegal disposal.  According to CalRecycle, local 
          governments tend to "view illegal dumping as a litter/nuisance 
          abatement issue, rather than a solid waste issue.  Local 








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          responses vary greatly statewide, both in terms of approach and 
          level of activity.  Local code enforcement plays a lead role in 
          some communities, while public works departments have primary 
          responsibility in others."

          Even when properly disposed of in a solid waste facility, they 
          are difficult to manage.  Their bulk clogs up equipment, and 
          they are difficult to compact.  Even after disposal, they have a 
          tendency to "float" to the surface of the waste.  

          CalRecycle is the state entity responsible for investigation, 
          cleanup, and enforcement of illegal solid waste disposal sites 
          and shares this responsibility with local enforcement agencies.  
          In 2006, CalRecycle established a state and local Illegal 
          Dumping Technical Advisory Committee (IDTAC) to assess the 
          extent of the illegal dumping problem and make recommendations 
          to "enhance the effectiveness of local and regional responses to 
          the problem."

          At the December 14, 2011, meeting of IDTAC, Ms. Cookie 
          Robles-Wong (representing Oakland and Chair of the IDTAC) noted 
          that "City of Oakland staff pick up an average of 35 illegally 
          dumped mattresses per day, haul them to their corporation yard, 
          place them in a Waste Management dumpster, and Waste Management 
          hauls them to a mattress recycler.  There is considerable 
          expense to the City to provide the service, and many residents 
          are wondering how to reduce the dumping and reduce the cost to 
          local government."  The May 23, 2012 meeting of IDTAC also 
          focused on mattress disposal issues.  According to CalRecycle 
          information presented at this meeting, approximately 4.2 million 
          mattresses and box springs are disposed (legally or illegally) 
          each year in California.  CalRecycle estimates that 85 percent 
          of the material is recyclable and that mattress recycling would 
          create 100 new jobs.  

          St. Vincent De Paul Society operates DR3 mattress recycling in 
          Oakland.  According to information by St. Vincent De Paul, the 
          organization is the "world leader in mattress recycling.  Our 
          Oakland, California facility was the first commercially viable 
          mattress recycling business in the world.  Today, between our 
          operations in Oakland and Eugene, Oregon we recycle over 120,000 
          mattresses and box springs every year."

          The organization notes that mattresses and box springs are cut 
          open and separated into various components, including cotton, 








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          foam, wood and steel.  Through this method, 85% to 90% of a 
          typical mattress can be recycled.  Steel is melted and recast as 
          new items, foam is chipped for use in carpet pad, cotton is used 
          in insulation, and wood can be composted or used as fuel.

          Remanufacturing mattresses and box springs generally involves 
          removing old coverings and materials inside the mattresses and 
          box springs, and leaving the metal or wooden framework and 
          springs which are repaired as needed.  New padding is placed 
          over the springs, foam is placed over the padding for comfort, 
          and a new cover is sewn on in the same way as done at new 
          mattress manufacturing facilities.

          Estimates on the number of mattress recyclers in California 
          vary.  Committee staff has been able to confirm a handful of 
          facilities, located in the Los Angeles area, the Bay Area, and 
          in Central California.  These facilities deconstruct the 
          mattresses on-site and create green jobs for Californians.  

           Arguments in support and opposition  :  According to Californians 
          Against Waste, "�this] measure will help reduce both the 
          incidence and public agency cost of illegal dumping of 
          mattresses.  SB 1118 would build on an existing, mostly 
          successful practice, by requiring mattress manufacturers to 
          ensure that consumers are provided with no-cost disposal of old 
          mattresses.  While mattresses are readily recyclable, it appears 
          that only about 200,000 (just 5 percent) of the more than 4 
          million mattresses generated in California annually are 
          recycled.  ?The simple solution is to require manufacturers and 
          retailers to work together to ensure consumers have a 
          convenient, no-cost remedy for proper end-of-life management of 
          used mattresses."  

          The International Sleep Products Association, which represents 
          mattress manufacturers, "The 'Extended Producer Responsibility" 
          system (EPR) �this bill] imposes would require the mattress 
          industry to develop a costly and inefficient system for 
          collecting and processing used mattresses that will hurt 
          California consumers, retailers, mattress manufacturers, and 
          state tax revenues.  By imposing significant new requirements 
          and costs on the mattress manufacturing industry in California, 
          we believe his legislation is a job killer."  The Association 
          was not able to provide the number of mattress manufacturing 
          facilities in California.  The Bureau of Home Furnishings 
          licenses furniture manufacturers but does not have information 








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          on mattress manufacturers specifically.  According to the 
          Bureau, there are approximately 900 furniture manufacturers in 
          the state.  

           Suggested amendments  :  According to the author, this bill is 
          intended to address mattresses and box springs, not mattress 
          toppers or pads.  In order to clarify this,  the committee may 
          wish to amend the bill  to establish a minimum thickness of 
          4-inches in the definition of "mattress."  

          To correct an apparent drafting error,  the committee may wish to 
          amend the bill  to insert a comma after "box spring" on page 4, 
          line 6.  As currently drafted, the bill appears to only include 
          box springs that are used with a futon frame.  

          This bill requires the pick-up of an "equivalent used mattress" 
          when a new mattress is delivered.  Consumers often upgrade to a 
          larger or thicker mattress when replacing a used mattress.   The 
          author may wish to amend the bill  to strike out "equivalent" on 
          page 5, line 22.  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          Californians Against Waste
          City of Oakland
          City and County of San Francisco
          Environment California
          Recology
          Republic Services, Inc.
          Waste Management
           
            Opposition 
           
          American Cleaning Institute
          California Chamber of Commerce
          California Independent Oil Marketers Association
          California Manufacturers and Technology Association 
          Consumer Specialty Products Association
          Grocery Manufacturers Association
          International Sleep Products Association 
          National Federation of Independent Businesses
          Product Management Alliance









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          Analysis Prepared by  :  Elizabeth MacMillan / NAT. RES. / (916) 
          319-2092