BILL ANALYSIS �
SB 1118
Page 1
Date of Hearing: August 29, 2012
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Wesley Chesbro, Chair
SB 1118 (Hancock) - As Amended: August 24, 2012
SENATE VOTE : 21-17
SUMMARY : Establishes the 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, 2014, implement the provisions of the
plan, and achieve specified recycling goals. Specifically, this
bill :
1)Defines terms used in the Act, including:
a) "Manufacturer" as a person who manufactures a mattress
and who sells, offers for sale, or distributes the mattress
in the state under that person's name or brand, or the
owner or licensee of a trademark or brand under which the
mattress is sold or distributed in the state, whether or
not the trademark is registered.
b) "Mattress" as any resilient material or combination of
materials that is enclosed by a twin size or larger
mattress ticking, used alone or in combination with other
products, and that is intended or promoted for sleeping
upon. Specifies that mattress includes a foundation or any
renovated mattress. Identifies items not included in the
definition of mattress.
c) "Recycler" as a person that engages in the separation of
mattresses to substantially recovery components and
commodities for the purpose of reuse or recycling.
d) "Renovate" or "renovation" as altering a mattress for
the purpose of resale, as specified.
e) "Retailer" as a person who sells mattresses in the state
through any means, but does not include internet sales.
f) "Stewardship organization" as a nonprofit organization
created by one or more manufacturers to act on behalf of
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the manufacturer to prepare and implement the mattress
stewardship plan.
g) "Voucher" as "a promise to a consumer of a new mattress
to provide that consumer with a future, no cost take back
of a used mattress for recycling, as specified.
2)On or before April 1, 2013, requires a manufacturer
individually, collectively, or through a stewardship
organization, to electronically submit an interim plan to
CalRecycle. Requires that the interim plan include provisions
to ensure that when new mattresses are delivered to a
consumer, the consumer is given the option to have a used
mattress picked up for recovery at the time of delivery at no
additional cost to the consumer or retailer; ensure that when
a new mattress is purchased and picked up, that a voucher be
provided to the consumer that covers the costs of taking a
waste mattress to a solid waste or recycling facility; and,
otherwise provide consumers with convenient opportunities to
properly dispose of their waste mattress.
3)Requires the manufacturer to implement the initial plan by
July 1, 2013 and until the mattress stewardship plan is
implemented.
4)Authorizes manufacturers to form or join a mattress
stewardship organization by April 1, 2013.
5)On or before April 1, 2014, requires a manufacturer
individually, collectively, or through a stewardship
organization, to submit a mattress stewardship plan to
CalRecycle. Requires that the stewardship plan include all of
the following:
a) Existing and planned used mattress take-back sites or
collection locations, including estimated timelines for any
planned expansion;
b) Program objectives consistent with the state's solid
waste management hierarchy, including designing for source
reduction, repair, and recyclability, and a description of
activities to achieve program objectives;
c) Ensure that local governments and solid waste facilities
are provided with a mechanism for the recovery of illegally
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dumped used mattresses at no additional cost;
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 or
refurbishment facility;
e) A program performance measurement system;
f) Education and outreach efforts and a consultation
process with affected stakeholders;
g) The names of manufacturers and brands covered by the
plan;
h) Procedures to ensure implementation of the plan if the
manufacturer or the stewardship organization no longer
exists due to bankruptcy, dissolution, or similar
processes;
i) Reimbursement of solid waste facilities for the
reasonable costs of collecting, storing, and processing
used mattresses in the implementation of the plan;
j) Policies to ensure there are adequate and convenient
opportunities for the collection, acceptance, and recovery
for recycling of used mattresses in low-income communities,
as specified;
aa) Policies to give priority to recycling facilities that
are closest to the consumer or retailer;
bb) A program to ensure that used mattresses recovered by a
retailer are delivered to a recycling facility or solid
waste facility for recycling. As an alternative to this
requirement, allow a manufacturer to provide a retailer
with "extra vouchers" to provide to a consumer if, when
picking up a consumer's mattress, the mattress is infested
with a pest or contaminated so that it poses a
contamination risk. Policies to give priority to
facilities that are closest to the consumer or retailers;
and,
cc) Provisions designed to meet the following recycling
rates:
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i) By January 1, 2015, recycling not less than 25% of
mattresses generated in the state;
ii) By January 1, 2017, recycling not less than 50% of
used mattresses generated in the state; and,
iii) On and after January 1, 2020, recycling not less
than 75% of used mattresses generated in the state.
6)Specifies that the stewardship plan may not be funded by
collecting a fee from a consumer at the point of sale.
7)Establishes requirements for CalRecycle relating review and
approval of the stewardship plan, and establishes procedures
that apply when a manufacturer or stewardship organization is
out of compliance with the plan.
8)Requires retailers of mattresses sold in the state, as
defined, to offer a consumer the option to have a used
mattress picked up for recovery at the time of delivery, at no
additional cost. However, the retailer may charge a delivery
fee.
9)On or before April 1, 2015, and annually thereafter, requires
a manufacturer or stewardship organization to submit a report
to CalRecycle describing the mattress stewardship efforts
taken pursuant to the plan, as described.
10)On or before April 1, 2015, and annually thereafter, requires
a person recycling or renovating mattresses to submit a report
to CalRecycle on the number of mattresses recycled or
renovated and the number of vouchers redeemed.
11)On and after August 1, 2014, 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.
12)Requires CalRecycle to maintain a list on its Web site of
manufacturers that are in compliance with the Act.
13)Requires a manufacturer or stewardship organization to
provide reasonable and timely access to facilities and records
associated with implementation of the plan.
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14)Requires a manufacturer that submits a final plan to pay a
quarterly 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. Establishes the Mattress Recovery and
Recycling Account, into which the fees shall be deposited.
15)Authorizes CalRecycle to impose administrative civil
penalties for violations of the Act. The penalty is not to
exceed $500 per day, unless the violation is intentional,
knowing, or negligent, in which case the fee is not to exceed
$5,000 per day. Penalty revenues shall be deposited into the
Mattress Recovery and Recycling Penalty Account.
16)In addition to penalties, authorizes CalRecycle to take the
following actions to ensure compliance with the bill:
a) Revoke the plan approval, amend an approved plan to
include additional conditions, or require that the plan be
resubmitted;
b) Remove the manufacturer from the list of approved
manufacturers on the CalRecycle website; and,
c) Require additional reporting.
17)Specify that certain actions undertaken to comply with the
bill are not a violation of the Cartwright Act, the Unfair
Practices Act, or the Unfair Competition Law.
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.
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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
Waste Recovery and Recycling Account, which is continually
appropriated to CalRecycle and the Department of Toxic
Substances Control 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. Specifies that this Act be
cost-free to consumers and does not include a fee provision.
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. Specifies that this Act be cost-free to consumers
and does not include a fee provision.
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
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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. This program is cost-free to consumers and does
not include a fee provision.
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 CalRecycle 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.
10)Establishes the Architectural Paint Recovery Program, which
requires architectural paint manufacturers to develop and
implement a program to manage waste latex paint.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, this bill has one-time costs of approximately
$100,000 to develop and adopt the administrative fee amount,
develop a database of mattress manufacturers and retailers, and
establish other implementation procedures and systems. This
bill will also result in ongoing costs of approximately $300,000
to $400,000 to CalRecycle to review plans and determine and
their compliance with the bill's requirements and to enforce the
Act. This bill will result in fee revenue to CalRecycle
roughly equivalent to these costs. This bill will additionally
result in penalty revenue of an unknown amount.
COMMENTS : 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
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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
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." According to CalRecycle information presented at
a meeting of the IDTAC, 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
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mattresses and box springs every year."
The organization notes that mattresses and box springs are cut
open and separated into various components, including cotton,
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. The committee was able to identify 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,
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we believe his legislation is a job killer."
Suggested amendments :
1)Questions have been raised relating to the term "trademark" in
the definition of manufacturer used in the bill. In order to
alleviate this confusion, the committee may wish to amend the
bill to read :
(d) (1) "Manufacturer" means one of the following persons:
(A) A person who manufactures a mattress and who sells, offers
for sale, or distributes the mattress in the state under that
person's own name or brand.
(B) If there is no person who sells, offers for sale, or
distributes a mattress in the state under the person's own
name or brand, the manufacturer of the mattress is the owner
or licensee of a trademark or brand under which the mattress
is sold or distributed in the state, whether or not the
trademark is registered. If there is no person who is a
manufacturer of the mattress for the purpose of paragraphs
(1), the manufacture will be the person named on the label
pursuant to Federal Standard 16 CFR Part 1633, Standard for
the Flammability of Mattress Set; Final Rule, March 15, 2006.
(2) A retailer whose name or brand may be on a mattress is not
the manufacturer of the mattress, unless the retailer actually
made, produced, and assembled that product.
2)For clarity relating to the requirements for manufacturers,
the committee may wish to amend the bill to strike out "all
of" on page 7, line 11.
3)In order to ensure that manufacturers may form a mattress
stewardship organization in the future, the committee may wish
to amend the bill to strike out lines 35 and 36 on page 7.
REGISTERED SUPPORT / OPPOSITION :
Support
Californians Against Waste
California Recycling Market Development Zones
City and County of San Francisco
City of Oakland
City of Roseville
Environment California
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Natural Resources Defense Council
Recology
Republic Services
Sierra Club California
Stopwaste
Waste Management
Opposition
CalChamber
International Sleep Products Association
Analysis Prepared by : Elizabeth MacMillan / NAT. RES. / (916)
319-2092