BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1274
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          Date of Hearing:  June 23, 2014

                       ASSEMBLY COMMITTEE ON NATURAL RESOURCES
                                Wesley Chesbro, Chair
                    SB 1274 (Hancock) - As Amended:  June 16, 2014

           SENATE VOTE  :  35-0
           
          SUBJECT  :  Recycling:  used mattresses

           SUMMARY  :  This bill makes technical and clarifying changes to  
          the Used Mattress Recovery and Recycling Act (Act).

           EXISTING LAW  :  

          1)Establishes a state policy goal that not less than 75 percent  
            of solid waste generated be source reduced, recycled, or  
            composted by the year 2020.

          2)Establishes the Act and requires a mattress recycling  
            organization to develop and implement a manufacturer and  
            retailer stewardship plan for a program to recover and recycle  
            used mattresses.

          3)Prohibits retailers, manufacturers, and renovators from  
            selling or distributing mattresses in the state that are not  
            in compliance with the Act.

          4)On or before July 1, 2015, requires an organization to submit  
            a plan to the Department of Resources Recycling and Recovery  
            (CalRecycle) to approve, conditionally approve, or disapprove  
            the plan.

          5)Requires the organization to develop a used mattress recycling  
            program budget annually.

          6)Requires the organization to establish a "mattress recycling  
            charge" to be added to the purchase price of a mattress.    
            Specifies that the charge be sufficient to fund the  
            organization's requirements under the bill. 

          7)Establishes civil penalties for violation of the Act's  
            requirements not to exceed $500 per day, and up to $5,000 per  
            day for intentional, knowing, or reckless violations.









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          8)Defines "solid waste facility," for purposes of the Act, as a  
            facility that accepts, under its normal operating conditions,  
            used mattresses from the public for collection, storing, and  
            handling, whether for recycling or disposal.

           THIS BILL  :  

          1)Revises the definition of "solid waste facility" to have the  
            same meaning as the term is used in the California Integrated  
            Waste Management Act, which defines "solid waste facility" as  
            a solid waste transfer or processing station, a composting  
            facility, a gasification facility, a transformation facility,  
            an engineered municipal solid waste conversion facility, and a  
            disposal facility, if that facility accepts used mattresses  
            from the public under its normal operating conditions.  

          2)Prohibits CalRecycle from disclosing any confidential  
            proprietary information in an audit conducted by the  
            department or annual report submitted by recyclers and  
            renovators.

          3)Adds authorized solid waste operations as eligible for  
            participation in the mattress recycling program and  
            reimbursement.

          4)Adds a recycler, renovator, and authorized solid waste  
            operation to authorized used mattress drop off points for  
            individuals at no additional charge.

          5)Changes the reimbursement amount paid to mattress recyclers,  
            solid waste facilities, and solid waste operations from "a  
            reasonable amount" to "an amount determined by an agreement  
            between the mattress recycling organization and those  
            facilities to be reasonable."

          6)Authorizes CalRecycle to impose civil penalties against  
            distributors and take enforcement actions against distributors  
            and recyclers.

          7)Deletes the authorization for the expenditure of penalties to  
            offset costs incurred by the department.

          8)Clarifies that CalRecycle is prohibited from adopting  
            emergency regulations with regard to any other provision of  
            the Act other than the authorized adoption of emergency  








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            regulations relating to the used mattress recovery and  
            recycling plan and program budget.

          9)Requires a manufacturer, renovator, retailer, or distributor  
            that sells a mattress to a consumer to add the charge to the  
            purchase price of the mattress and remit the charge collected  
            to the organization beginning 90 days after the date  
            CalRecycle approves the organization's budget, instead of 90  
            days after CalRecycle's approval of the plan.

          10)Changes the due date of the annual report from July 1, 2017  
            to May 1, 2017, and specifies that the report be submitted to  
            CalRecycle and to the organization. 

          11)Makes technical and clarifying changes.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, this bill has  
          negligible state costs. 

           COMMENTS  :

           1)Background on 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  








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            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 approximately 100 new jobs.  

          The California State Association of Counties, League of  
            California Cities, and the former California Integrated Waste  
            Management Board (now CalRecycle) requested county  
            administrative officers and city managers to participate in a  
            June 2006 survey on illegal dumping and litter abatement.   
            According to the survey, local government abatement and  
            enforcement costs were approximately $44 million based on  
            responses from 35 counties and 37 cities, so the true cost is  
            likely considerably higher.  The California Department of  
            Transportation spends approximately $55 million annually for  
            highway cleanups.

          Mattresses and box springs can be recycled or renovated for  
            reuse.   Over 120,000 mattresses and box springs are recycled  
            annually by one recycler operating in California and Oregon.   
            The mattresses are cut open and separated into various  
            components, including cotton, foam, wood and steel.  Through  
            this method, 85 to 90 percent 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.

          Renovating 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 and foam  
            is placed over the springs, and new mattress ticking is added.  
             

           2)Prior legislation  .  In response to the issues associated with  
            mattress disposal, SB 254 (Hancock and Correa), Chapter  388,  
            Statutes of 2013, established the Act and required a mattress  
            recycling organization to develop and implement a manufacturer  
            and retailer stewardship program to recover and recycle used  
            mattresses.  

          In signing SB 254, Governor Brown issued a signing message,  
            which stated: 









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               ?due to the lack of specificity and ambiguous language  
               contained in the bill, I am directing the Department to  
               work with the authors of the bill in order to clarify their  
               intent through cleanup legislation next session.  Of  
               particular concern is language that appears to limit the  
               regulatory authority of the Department and the requirement  
               that the Department reduce its administrative costs by the  
               amount of penalties it collects.  

           3 This bill  .  SB 1274 addresses the issues raised by Governor  
            Brown in his signing message for SB 254 (Hancock and Correa),  
            Chapter 388, Statutes of 2013 and contains related technical  
            and clarifying changes.  

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          American Federation of State, County, and Municipal Employees,  
          AFL-CIO
          City of Thousand Oaks
          International Sleep Products Association
           
            Opposition 
           
          None on file


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