BILL ANALYSIS                                                                                                                                                                                                    �



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          (  Without Reference to File  )

          SENATE THIRD READING
          SB 1118 (Hancock)
          As Amended  August 31, 2012
          Majority vote 

           SENATE VOTE  :21-17  
           
           APPROPRIATIONS      11-5        NATURAL RESOURCES   6-3         
           
           ----------------------------------------------------------------- 
          |Ayes:|Gatto, Blumenfield,       |Ayes:|Chesbro, Brownley,        |
          |     |Bradford,                 |     |Dickinson, Huffman,       |
          |     |Charles Calderon, Campos, |     |Monning, Skinner          |
          |     |Davis, Fuentes, Hall,     |     |                          |
          |     |Hill, Cedillo, Mitchell   |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Harkey, Donnelly,         |Nays:|Knight, Grove, Halderman  |
          |     |Nielsen, Norby, Wagner    |     |                          |
           ----------------------------------------------------------------- 

           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 








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               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; 
               and,  

             f)   "Stewardship organization" as a nonprofit organization 
               created by one or more manufacturers to act on behalf of 
               the manufacturer to prepare and implement the mattress 
               stewardship plan.  

          2)Requires, on or before April 1, 2013, 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)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 the 
            following:  









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             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 
               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 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,

             f)   Provisions designed to meet the following recycling 
               rates: 

               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.  

          5)Specifies that the stewardship plan may not be funded by 
            collecting a fee from a consumer at the point of sale.









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          6)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.  

          7)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.  

          8)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.  

          9)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.  

          10)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.  


          11)Requires CalRecycle to maintain a list on its Web site of 
            manufacturers that are in compliance with the Act.  

          12)Requires a manufacturer or stewardship organization to 
            provide reasonable and timely access to facilities and records 
            associated with implementation of the plan.  

          13)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.  

          14)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, 








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            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. 

          15)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.  

           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 
          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 








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          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% 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, 
          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 








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


                                                                FN: 0005846