California Senate Bill SB1118 Amended / Bill

 BILL NUMBER: SB 1118AMENDED BILL TEXT AMENDED IN ASSEMBLY AUGUST 24, 2012 AMENDED IN ASSEMBLY AUGUST 13, 2012 AMENDED IN ASSEMBLY AUGUST 7, 2012 AMENDED IN ASSEMBLY JUNE 25, 2012 AMENDED IN SENATE MAY 29, 2012 AMENDED IN SENATE APRIL 25, 2012 AMENDED IN SENATE APRIL 9, 2012 INTRODUCED BY Senator Hancock FEBRUARY 17, 2012 An act to add Chapter 21 (commencing with Section 42985) to Part 3 of Division 30 of the Public Resources Code, relating to solid waste. LEGISLATIVE COUNSEL'S DIGEST SB 1118, as amended, Hancock. Solid waste: used mattresses: recycling and recovery.  Existing   (1)     Existing  law requires a retailer of various specified products, such as rechargeable batteries and cell phones, sold in the state to have in place a system for the acceptance and collection of those products for reuse, recycling, or proper disposal. This bill would establish the  Used  Mattress Recovery and Recycling Act and would define terms for purposes of the act. The bill would require a manufacturer of mattresses sold in this state, individually, collectively, or through a stewardship organization, to  submit   provide  an  initial mattress recovery and recycling   interim  plan to the Department of Resources Recycling and Recovery by April 1, 2013, in an electronic format that ensures that the manufacturer will be responsible for the collection and recycling of  waste   used  mattresses generated by consumers  purchasing a new mattress  . The bill would require a manufacturer to implement the  initial   interim  plan by July 1, 2013  , and to continue implementation until a stewardship plan is approved, conditionally approved, or   disapproved by the department  . The bill would require a manufacturer of mattresses sold in this state, individually, collectively, or through a stewardship organization, to submit a  final  mattress  recovery and recycling   stewardship  plan to the department by April 1, 2014. The bill would specify the requirements to be included in the plan, including  provisions for  meeting specified recycling  targets and demonstrating achievement with those targets   goals  . The bill would specify a procedure for the department's approval, disapproval, or conditional approval of a  final  plan. The bill would require a retailer of mattresses on and after July 1,  2014   2013  , to offer the consumer the option of picking up a  waste   used  mattress, at the time of delivery, at no additional cost to the consumer. The bill would prohibit a manufacturer or retailer from selling or offering for sale a mattress to any person in this state unless the manufacturer is in compliance with  this chapter   the act and would prohibit a manufacturer from selling a mattress on or after August 1, 2014, if the manufacturer is not covered by an approved or conditionally approved plan  .  The bill would specify the conditions for determining compliance with the act.  The bill would require the department, by  July 1, 2013,   August 1, 2014, except as specified,  and  on or before January 1 and   by  July 1 annually thereafter, to post  a notice  on its Internet Web site  a  listing  of  manufacturers that  are in compliance with the requirements of the act and would require the department to post, by August 1, 2014, and every 6 months thereafter, a list of covered manufacturers   have submitted a plan and to annually post a listing of manufacturers in compliance with the act  . The bill would require  wholesalers or  retailers that distribute or sell mattresses to monitor the department's Internet Web site to determine if  the sale of   the manufacturer of  a mattress is in compliance with the requirements of the act. The bill would require a manufacturer, individually, collectively, or through a stewardship organization, to submit an annual report to the department describing its mattress stewardship efforts. The bill would require the department to review the annual report within 90 days of receipt and adopt a finding of compliance or noncompliance with the requirements of the act. The bill would authorize the department to require a manufacturer or stewardship organization submitting that annual report that is not meeting the act's requirements  ,  to amend and resubmit the  report   plan  and would require the department to remove the manufacturer's name from the listing of manufacturers that are in compliance, until as specified.  The bill would require recyclers and renovators, as defined, to submit an annual report to the department regarding mattresses received and recycled and would require the operator of a solid waste facility to submit an annual report to the department regarding the number of used mattresses received and designated for recycling in the state during the preceding calendar year.  The bill would require a manufacturer  or stewardship organization submitting a mattress recovery and recycling plan  to pay the department a quarterly administrative fee, as determined by the department. The bill would require these fees to be deposited into the Mattress Recovery and Recycling Account, which the bill would establish in the Integrated Waste Management Fund. The bill would provide that the moneys in the account would be available for expenditure by the department, upon appropriation by the Legislature.  The bill would require a manufacturer or stewardship organization to provide the department with reasonable and timely access, as determined by the department, to its facilities or operations, and to provide the department with any relevant records. The bill would require the records to be maintained and accessible for 3 years. The bill would require all reports and records to be provided to the department under penalty of perjury, thereby imposing a state-mandated local program by creating a new crime.  The bill would allow the department to impose an administrative civil penalty in specified amounts on a  person   manufacturer, stewardship organization, or retailer  who is in violation of the act. The bill would require the department to deposit all penalties collected into the Mattress Recovery and Recycling Penalty Account, which the bill would establish in the Integrated Waste Management Fund. The bill would provide that the moneys in the penalty account would be available for expenditure by the department, upon appropriation by the Legislature.    The   bill would also authorize the department to take other actions to enforce the act.   (2) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.   This bill would provide that no reimbursement is required by this act for a specified reason.  Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program:  no   yes  . THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:  SECTION 1.   Chapter 21 (commencing with Section 42985) is added to Part 3 of Division 30 of the   Public Resources Code   , to read:   CHAPTER 21. USED MATTRESS RECOVERY AND RECYCLING ACT 42985. (a) The Legislature finds and declares all of the following: (1) In order to reduce illegal dumping, increase recycling, and substantially reduce public agency costs for the end-of-life management of used mattresses, the Used Mattress Recovery and Recycling Act is hereby established by this chapter to require manufacturers of mattresses sold in this state to develop, finance, and implement a convenient and cost-effective program to collect, reuse where possible, and recycle used mattresses generated in this state. (2) Consistent with existing state policy, the program developed and implemented by manufacturers of mattresses sold in this state 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. (b) This chapter shall be known, and may be cited, as the Used Mattress Recovery and Recycling Act. (c) This chapter does not prohibit a manufacturer from internalizing the cost of implementing this chapter. 42986. For the purposes of this chapter, the following terms have the following meanings: (a) "Account" means the Mattress Recovery and Recycling Account established pursuant to Section 42995. (b) "Consumer" means an owner of a mattress, including a person, business, corporation, limited partnership, nonprofit organization, or governmental entity. (c) "Interim plan" means a plan provided to the department pursuant to Section 42987. (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. (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. (e) (1) "Mattress" means 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 for or promoted for sleeping upon. (2) "Mattress" includes any foundation and any renovation. (3) "Mattress" does not include an unattached mattress pad, unattached mattress topper, sleeping bag, pillow, car bed, carriage, basket, dressing table, stroller, playpen, infant carrier, lounge pad, crib bumper, liquid and gaseous filled ticking including any water bed and air mattress that does not contain upholstery material between the ticking and the mattress core, and upholstered furniture that does not otherwise contain a detachable mattress. (f) "Mattress stewardship plan" or "plan" means a plan submitted to the department pursuant to Section 42988. (g) "Recycle" or "recycling" has the same meaning as defined in Section 40180. For the purposes of this chapter renovation shall be considered recycling. (h) "Recycler" means a person that engages in the manual or mechanical separation of mattresses to substantially recover components and commodities contained in the mattresses for the purpose of reuse or recycling. (i) (1) "Renovate" or "renovation" means altering a mattress for the purpose of resale and includes any one, or a combination of, the following: (A) Replacing the mattress ticking or filling. (B) Adding additional filling. (C) Rebuilding a mattress. (D) Replacing components with new or recycled materials. (2) "Renovate" or "renovation" does not include any of the following: (A) Stripping of a mattress of its ticking or filling without adding new material. (B) Sterilizing or sanitizing a mattress without otherwise altering the mattress. (C) Altering a mattress by a renovator when a person retains the altered mattress for lease, rental, or personal use. (D) Refurbishing that disqualifies a mattress for a yellow wholesale renovator tag to be affixed to the mattress, in accordance with the regulations adopted by the Department of Consumer Affairs. (j) "Renovator" means a person that renovates used mattresses. (k) "Retailer" means 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 such as sales outlets or catalogs. "Retailer" does not include the sale of mattresses through the Internet. (l) "Stewardship organization" means a nonprofit organization created by one or more manufacturers to act on behalf of the manufacturer to provide an interim plan to the department pursuant to Section 42987 or to design, submit, and implement a mattress stewardship plan pursuant to Section 42988. (m) "Used mattress" means a mattress that is no longer used for its manufactured purpose. (n) "Voucher" means 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 described in this chapter. The voucher may include a payment, coupon, chit, or other form of paper or electronic authorization that enables the consumer to drop off a used mattress for recycling at any recycling facility or solid waste facility at no cost to the consumer, and which the operator of the facility can then redeem from a manufacturer or the manufacturer's agent in order to cover the cost of recovery and recycling. 42987. (a) On or before April 1, 2013, a manufacturer of mattresses sold in this state shall, individually, collectively, or through a stewardship organization, provide an interim plan to the department in an electronic format. (b) The interim plan shall ensure that the manufacturer will be responsible for the collection and recycling of used mattresses generated by consumers. The interim plan shall include a description of activities that the manufacturer shall undertake as part of the plan and shall require the manufacturer to do all of the following: (1) Ensure that when a new mattress is delivered to a consumer by a retailer, the consumer is given the option of having a used mattress picked up for recycling at the time of delivery, at no additional cost to the consumer or retailer. A retailer may contract out to a third-party entity for the pickup of used mattresses. (2) Ensure that when a new mattress is purchased and picked up by a consumer, the consumer is given a voucher that provides for the dropoff and recycling of a used mattress at a local solid waste or recycling facility at no additional cost to the consumer, retailer, or facility. (3) Otherwise provide consumers with convenient opportunities to properly dispose of their used mattresses. (c) The department shall post the interim plan provided pursuant to this section on its Internet Web site. (d) On and after July 1, 2013, a manufacturer shall implement the interim plan provided pursuant to subdivision (a) and shall continue implementation of the interim plan until the mattress stewardship plan required by Section 42988 is approved, conditionally approved, or disapproved by the department pursuant to Section 42989. (e) A manufacturer shall provide retailers with relevant materials 60 days prior to implementation of the interim plan. 42988. (a) On or before April 1, 2013, a manufacturer may form and join a mattress stewardship organization. (b) On or before April 1, 2014, a manufacturer shall, individually, collectively, or though a mattress stewardship organization, submit a mattress stewardship plan to the department that meets the requirements of this section. (c) A mattress stewardship plan submitted pursuant to this section shall include all of the following elements: (1) Program activities to achieve the used mattress recycling goals established in subdivision (d). (2) Existing and planned used mattress take-back sites or collection locations, including estimated timelines for any planned expansion, if applicable. (3) Program objectives consistent with the state's solid waste management hierarchy, in the following categories, and a description of activities to achieve the program objectives: (A) Activities to achieve source reduction and maximize reuse and repair. (B) Measures to design mattresses and their components for recyclability. (C) Activities or incentives to reduce the number of used mattresses sent to landfills. (D) Activities or incentives to prevent and mitigate the illegal disposal of used mattresses, including coordination with local governments and waste haulers. (4) 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 to the local government or solid waste facility. (5) 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. (6) A program performance measurement that would collect program data for purposes of the report required by Section 42991, in accordance with the following: (A) If the department does not provide a methodology for the program performance methodology pursuant to subdivision (e) of Section 42991, the plan shall include a methodology for estimating, with regard to the manufacturers covered by the plan, the amount of mattresses sold in the state and the used mattresses available for collection in the state, and for quantifying the number of used mattresses collected and recycled in the state. (B) The program plan performance measurement may aggregate the total number of mattresses sold and recycled by all participating members in a plan submitted by manufacturers acting collectively or through a stewardship organization. (7) Education and outreach efforts to consumers and other individuals within the supply chain to promote their participation in achieving the purposes of the plan. (8) A consultation process with affected stakeholders. (9) The names of manufacturers and brands covered under the plan. (10) Procedures to ensure implementation of the plan if the manufacturer or the stewardship organization no longer exists due to bankruptcy, dissolution, or similar processes. (11) Reimbursement of solid waste facilities for the reasonable costs of collecting, storing, and processing used mattresses in the implementation of the plan pursuant to this chapter. (12) Policies to ensure there are adequate and convenient opportunities for the collection, acceptance, and recovery for recycling of used mattresses in low-income communities, in accordance with the poverty line annually established by the Secretary of California Health and Human Services pursuant to the federal Omnibus Budget Reconciliation Act of 1981 (Public Law 97-35), as amended. (13) Policies to give priority to recycling facilities that are the closest to the consumer or retailers. (14) A program to ensure that used mattresses recovered by a retailer pursuant to Section 42990 are delivered to a recycling facility or solid waste facility for recycling. A manufacturer or retailer may contract out to a third-party entity for the transportation of used mattresses to such a facility. (15) As an alternative to the requirements of paragraph (14), a requirement that the manufacturer provide a retailer with extra vouchers to provide to a consumer if, when picking up a consumer's mattress upon the purchase of a new mattress, the mattress is infested with a pest or contaminated so that it poses a contamination risk to personnel, new products, or equipment. These vouchers shall be provided at no additional cost to the consumer, retailer, recycling facility, or solid waste facility. (d) The plan shall meet the portion of the used mattress recycling goals, for which a manufacturer, individually or collectively, submitting the plan, or by the manufacturers included in a plan submitted by a mattress stewardship organization, are subject to, pursuant to the methodology specified in the plan pursuant to paragraph (6) of subdivision (c): (1) On and after January 1, 2015, recycle not less than 25 percent of used mattresses generated by consumers in the state from the manufacturers included in the plan. (2) On and after January 1, 2017, recycle not less than 50 percent of used mattresses generated by consumers in the state from the manufacturers included in the plan. (3) On and after January 1, 2020, recycle not less than 75 percent of used mattresses generated by consumers in the state from the manufacturers included in the plan. (e) A manufacturer is deemed to meet the mattress recycling percentile goal specified in subdivision (d) if the plan submitted by the manufacturer, or by the stewardship organization formed or joined by the manufacturer, when implemented, collects an amount of mattresses equal to, or greater than, the equivalent portion of the mattresses available for collection, as determined pursuant to subparagraph (A) of paragraph (6) of subdivision (c) of the plan. (f) A manufacturer, individually or collectively, or stewardship organization may coordinate with local governments, solid waste facilities, retailers, and mattress recyclers to achieve the purposes of this chapter. (g) The plan shall not require the funding for the plan to be collected from a consumer at the point of collection or discard. 42989. (a) The department shall review the plan submitted pursuant to Section 42988 and within 90 days of receipt shall approve, disapprove, or conditionally approve the plan. (b) If the department disapproves the plan pursuant to subdivision (a), the manufacturer or stewardship organization shall resubmit the plan to the department. If the manufacturer or stewardship organization does not resubmit a plan, or submits a plan that is not approved or conditionally approved by the department, the department shall remove all manufacturers covered by the plan from the department's Internet Web site pursuant to Section 42992, and a manufacturer so removed from the Internet Web site shall not sell a mattresses in the state until the department approves a plan for that manufacturer. (c) The approved plan shall be a public record, except that financial, production, or sales data reported to the department by a manufacturer or the stewardship organization is not a public record for purposes of the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code) and shall not be open to public inspection. The department may release financial, production, or sales data in summary form only that cannot be attributable to a specific manufacturer. 42990. (a) On and after July 1, 2013, a retailer shall offer a consumer the option to have a used mattress picked up for recovery at the time of delivery, at no additional cost to the consumer, if a new mattress is delivered to the consumer. A retailer may contract out to a third-party entity for the pickup of used mattresses. (b) This chapter does not prohibit a retailer from charging a consumer an additional cost for delivering a new mattress. 42991. (a) On or before April 1, 2015, and each year thereafter, a manufacturer shall, individually, collectively, or through a stewardship organization, submit a report to the department describing the mattress stewardship efforts taken pursuant to the approved or conditionally approved plan. At a minimum, the report shall include all of the following: (1) Quantitative information on progress in achieving the used mattress program activities specified in the plan pursuant subdivision (b) of Section 42988. (2) A calculation of the plan's progress in achieving the recycling goals specified in subdivision (d) of Section 42988, consistent with the methodology specified in the plan pursuant to paragraph (6) of subdivision (c) of Section 42988. (3) A description of the achievement of program objectives specified in the plan pursuant to paragraph (3) of subdivision (c) of Section 42988. (4) The total volume, number, and weight of used mattresses collected, recycled, renovated, and reused, and used for energy recovery in this state during the preceding calendar year, including any conversion factor used to determine the number of mattresses recovered. (5) A description of the methods used to collect, transport, and process used mattresses in this state. (6) Examples of educational materials provided to consumers the first year and any changes to those materials in subsequent years. (7) Any other information relevant to compliance with the plan. (b) The department shall review the annual report required pursuant this section and within 90 days of receipt shall adopt a finding of compliance or noncompliance with this chapter. (c) If the department adopts a finding of noncompliance pursuant to subdivision (b), the department may require the manufacturer or stewardship organization to amend and resubmit the plan within 90 days of the department's determination. (d) If the manufacturer or stewardship organization does not resubmit the plan pursuant to subdivision (c), or the department does not approve or conditionally approve the plan submitted to subdivision (c), the department shall post a notice of noncompliance pursuant to Section 42992 and the manufacturers subject to the plan shall not sell a mattress in the state until the department approves a plan. (e) The department may adopt a uniform methodology that shall be used by all manufacturers for purposes of estimating the amount of mattresses sold in the state and the number of used mattresses available for collection in the state, and for quantifying the number of used mattresses collected and recycled in the state. 42992. (a) A manufacturer or retailer shall not sell or offer for sale a mattress to any person in this state unless the manufacturer is in compliance with this chapter. (b) (1) On or after August 1, 2014, if a manufacturer is not covered by an approved or conditionally approved plan, the manufacturer shall not sell or offer for sale a mattress in the state. (2) A manufacturer is a covered manufacturer if the manufacturer has submitted a plan, either individually, collectively, or through a stewardship organization, to the department pursuant to Section 42988. (c) (1) On August 1, 2014, or upon the date the plan is approved or conditionally approved by the department, whichever date comes first, and on or before July 1 annually thereafter, the department shall post on its Internet Web site a list of manufacturers for which the department has approved or conditionally approved the plan pursuant to Section 42989. (2) On July 1, 2015, and annually thereafter, the department shall post on its Internet Web site a list of manufacturers for which the department has adopted a finding of compliance with regard to the report filed pursuant to subdivision (b) of Section 42991. (3) A manufacturer that is not listed on the department's Internet Web site pursuant to this section, but demonstrates to the satisfaction of the department that it is in compliance with this chapter before the next notice is required to be posted pursuant to this section, may request a certification letter from the department stating that the manufacturer is in compliance. The manufacturer that receives that letter shall be deemed to be in compliance with this chapter. (4) A retailer that distributes or sells a mattress shall monitor the department's Internet Web site to determine if a manufacturer is a covered manufacturer or is in compliance with this chapter. A retailer otherwise in compliance with this chapter shall be deemed in compliance with subdivision (a) if, on the date the retailer ordered or purchased a mattress, or within five calendar days after that date, the manufacturer was listed as covered or compliant on the department's Internet Web site. (5) A retailer may exhaust existing stock in its inventory through sales to the public if the existing stock was purchased when the manufacturer was in compliance with the requirements of this chapter at the time of the existing stock's initial purchase. (d) If the department determines that a manufacturer or stewardship organization is not in compliance with this chapter, the department shall remove the manufacturer or the manufacturers covered by the plan submitted by the stewardship organization from the department's Internet Web site pursuant to this section and the manufacturer shall not sell a mattresses in the state until the department determines that the manufacturer is in compliance with this chapter. 42993. (a) On or before April 1, 2015, and each year thereafter, a person that is engaged in business as a recycler shall submit a report to the department that includes, but is not limited to, both of the following: (1) Quantitative information on the number of mattresses received and recycled or renovated in the state during the preceding calendar year. (2) Quantitative information on the number of vouchers received from customers in the state in the preceding calendar year, if applicable. (b) On or before April 1, 2015, and each year thereafter, a person who renovates used mattresses shall submit a report to the department, that at a minimum, includes both of the following: (1) Quantitative information on the number of mattresses received and recycled or renovated in California during the preceding calendar year. (2) Quantitative information on the number of vouchers received from customers in California in the preceding calendar year, if applicable. (c) For purposes of determining the recycling rate for a used mattress, on or before April 1, 2015, and each year thereafter, a solid waste landfill facility operator shall report to the department, in a form and manner determined by the department, regarding the number of used mattresses received and designated for recycling or renovation within the state in the preceding calendar year. 42994. (a) A manufacturer and a mattress stewardship organization shall do all of the following: (1) Upon request, provide the department with reasonable and timely access, as determined by the department and as authorized pursuant to Title 13 (commencing with Section 1822.50) of Part 3 of the Code of Civil Procedure, to its facilities and operations, as necessary to determine compliance with this chapter. (2) Upon request, provide the department with relevant records necessary to determine compliance with this chapter. (3) If a manufacturer or the stewardship organization does not comply with the department's request made pursuant to paragraph (1) or (2), it shall provide the department with a complete explanation for its inability or decision not to comply with that request. (b) The records required by this chapter shall be maintained and accessible for three years. All reports and records provided to the department pursuant to this chapter shall be provided under penalty of perjury. (c) The department may take disciplinary action against a manufacturer if the stewardship organization or manufacturer fails to provide the department with the access required pursuant to this section, including, but not limited to, imposing penalties pursuant to Section 42996 and posting an immediate notice on the department's Internet Web site pursuant to Section 42292 that the manufacturer is no longer in compliance with this chapter. 42995. (a) Each manufacturer, shall pay the department a quarterly administrative fee, as determined by the department. (b) The amount of the administrative fees imposed pursuant to subdivision (a) shall be established by the department in an amount that is sufficient 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 the submittal of the plan required by Section 42988. (c) The administrative fees collected pursuant to this section shall be deposited into the Mattress Recovery and Recycling Account, which is hereby established in the Integrated Waste Management Fund. Upon appropriation by the Legislature, moneys in the account shall be expended by the department to administer and enforce this chapter. The fees collected pursuant to this section shall not be expended for any other purpose. 42996. (a) The department may impose an administrative civil penalty on any manufacturer or stewardship organization that is in violation of this chapter. The amount of the civil penalty shall not exceed five hundred dollars ($500) per day, but if the violation is intentional, knowing, or reckless, the department may impose a civil penalty of not more than five thousand dollars ($5,000) per day. (b) The department may impose an administrative civil penalty on any retailer who is in violation of this chapter. The amount of the civil penalty shall not exceed five hundred dollars ($500) per day, but if the violation is intentional, knowing, or reckless the department may impose a civil penalty of not more than five thousand dollars ($5,000) per day. (c) In assessing or reviewing the amount of a civil penalty imposed pursuant to subdivision (a) or (b) 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. (d) If more than one stewardship organization submits a plan pursuant to this chapter, the department shall determine the manufacturer's or retailer's compliance with this chapter in accordance with the plan to which the manufacturer or retailer is subject. (e) The department may impose the administrative civil penalties pursuant to this section in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, except that subdivision (c) of Section 11505 of the Government Code shall not apply to the department. (f) The department shall not impose a penalty upon a mattress stewardship organization pursuant to this section for a failure to comply with this chapter as a result of submitting false or misleading information if the stewardship organization demonstrates that it received false or misleading information from a manufacturer that was the direct cause of its failure to comply with this chapter. (g) The department shall deposit all penalties collected pursuant to this section into the Mattress Recovery and Recycling Penalty Account, which is hereby created in the Integrated Waste Management Fund. Upon appropriation by the Legislature, moneys deposited into the Mattress Recovery and Recycling Penalty Account may be expended by the department to implement this chapter. 42997. Upon a finding that a manufacturer or stewardship organization has not met a requirement of this chapter, in addition to any other penalties authorized under this chapter, the department may take any of following actions to ensure compliance with the requirements of this chapter: (a) Revoke the manufacturer's or stewardship organization's plan approval, amend an approval or conditional approval to include new conditions, or require the manufacturer or stewardship organization to resubmit the plan. (b) Remove the manufacturer from the department's Internet Web site and list of compliant manufacturers, as specified in subdivision (d) of Section 42992. (c) As a condition for approval of plans submitted by the manufacturer or stewardship organization pursuant to Section 42989 after the date of the department's finding, require additional reporting not otherwise required under this chapter, at a frequency determined by the department. 42998. (a) Except as provided in subdivision (c), an action specified in subdivision (b) that is taken by a 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). (b) Subdivision (a) shall apply to all of the following actions taken by the stewardship organization or a manufacturer: (1) The creation, implementation, or management of a plan approved by the department pursuant to Section 42989 and the types or quantities of used mattresses recycled or otherwise managed pursuant to plan, as described in Section 42988. (2) The cost and structure of an approved plan. (3) The establishment, administration, or disbursement of the costs associated with funding the implementation of this chapter. (c) Subdivision (a) does not apply to an agreement that does any of the following: (1) Fixes a price of or for mattresses, except for an agreement related to costs associated with participation in a plan approved or conditionally approved by the department and otherwise in accordance with this chapter. (2) Fixes the output of production of mattresses. (3) Restricts the geographic area in which, or customers to whom, mattresses will be sold.   SEC. 2.  No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.   SECTION 1.   Chapter 21 (commencing with Section 42985) is added to Part 3 of Division 30 of the Public Resources Code, to read: CHAPTER 21. MATTRESS RECOVERY AND RECYCLING ACT 42985. (a) The Legislature finds and declares all of the following: (1) In order to reduce illegal dumping, increase recycling, and substantially reduce public agency costs for the end-of-life management of used mattresses, the Mattress Recovery and Recycling Act is hereby established by this chapter to require manufacturers of mattresses sold in this state to develop, finance, and implement a convenient and cost-effective program to collect and recycle waste mattresses generated in this state. (2) Consistent with existing state policy, the program developed and implemented by manufacturers of mattresses sold in this state shall be capable of the recovery and recycling of at least 75 percent of waste mattresses generated in this state annually on and after January 1, 2020. (b) This chapter shall be known, and may be cited, as the "Mattress Recovery and Recycling Act." 42986. For the purposes of this chapter, the following terms have the following meanings: (a) "Account" means the Mattress Recovery and Recycling Account established pursuant to Section 42992. (b) (1) "Manufacturer" means 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. (2) Manufacturer includes either of the following: (A) 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 or brand is registered in this state. (B) 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. (c) "Mattress" means a large pad of twin size or larger that is four or more inches thick 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. (d) (1) "Mattress recovery and recycling plan" or "plan" means a plan submitted to the department pursuant to this chapter. (2) "Initial plan" means the mattress recovery and recycling plan submitted to the department pursuant to Section 42987. (3) "Final plan" means the mattress recovery and recycling plan submitted to the department pursuant to Section 42988. (e) "Penalty account" means the Mattress Recovery and Recycling Penalty Account established pursuant to Section 42994. (f) "Recycle" or "recycling" has the same meaning as defined in Section 40180. (g) "Retailer" means 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 such as sales outlets or catalogs. "Retailer" does not include a person who sells mattresses through the Internet. (h) "Stewardship organization" means a nonprofit organization created by one or more manufacturers to act as an agent on behalf of the manufacturer to design, submit, and administer a mattress recovery and recycling plan pursuant to this chapter. (i) "Waste mattress" means a mattress that is no longer wanted by its owner and is discarded or is intended to be discarded. (j) "Wholesaler" means a person who sells mattresses in the state to a retailer. 42987. (a) On or before April 1, 2013, a manufacturer of mattresses sold in this state shall, individually, collectively, or through a stewardship organization, submit an initial mattress recovery and recycling plan to the department in an electronic format that ensures that the manufacturer will be responsible for the collection and recycling of waste mattresses generated by consumers purchasing a new mattress. The initial plan shall include a description of activities that the manufacturer or stewardship organization shall undertake as part of the plan and shall require a manufacturer to do all of the following: (1) Ensure that when a new mattress is delivered to a consumer by a retailer, the consumer is given the option of having a waste mattress picked up for recycling at the time of delivery, at no additional cost to the consumer or retailer. (2) Ensure that when a new mattress is purchased and picked up by a consumer, the consumer is given a voucher that provides for the manufacturer to arrange for the drop off and recycling of a waste mattress at a local solid waste or recycling facility at no additional cost to the consumer, retailer, or facility. (3) Otherwise provide consumers with convenient opportunities to properly dispose of their waste mattress. (b) The department shall post the initial plan on its Internet Web site. (c) On and after July 1, 2013, a manufacturer shall implement the initial plan submitted pursuant to subdivision (a). (d) No later than 60 days before implementing the initial plan, a manufacturer shall provide a retailer with relevant materials. 42988. (a) On or before April 1, 2014, a manufacturer of mattresses sold in this state shall, individually, collectively, or through a stewardship organization, submit a final mattress recovery and recycling plan to the department that includes the requirements of this section. (b) A mattress recovery and recycling plan shall include all of the following: (1) Provisions to ensure that when new mattresses are delivered to a consumer, the consumer is given the option of having an equivalent number of waste mattresses picked up for recovery at the time of delivery, at no additional cost to the consumer or retailer, in accordance with Section 42989. (2) Arrangements, when new mattresses are sold to a consumer, for the drop off of an equivalent number of waste mattresses at a recycling facility at no additional cost to the consumer or retailer. (3) Techniques designed to prevent and mitigate the illegal discarding of waste mattresses. (4) Arrangements for the pickup of waste mattresses that have been accepted at solid waste facilities and for the delivery of those waste mattresses to a recycling facility. (5) Policies to ensure there are adequate and convenient opportunities for the collection, acceptance, and recovery for recycling of waste mattresses in low-income, rural, and other communities where illegal dumping of waste mattresses has been a historical problem. (6) Provisions designed to meet the following recycling targets and methods for demonstrating the achievement of the following recycling goals: (A) On and after January 1, 2015, recycle not less than 25 percent of the waste mattresses generated in this state. (B) On and after January 1, 2017, recycle not less than 50 percent of the waste mattresses generated in this state. (C) On and after January 1, 2020, recycle not less than 75 percent of the waste mattresses generated in this state. (7) Provisions for a financial mechanism for implementing the plan. (c) 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 this chapter. 42989. On and after July 1, 2014, a retailer shall offer the consumer the option to have a waste mattress picked up for recovery at the time of delivery, at no additional cost to the consumer, if a new mattress is being delivered to the consumer. A retailer may contract out to a third-party entity for the pickup of waste mattresses. 42990. (a) A manufacturer or retailer shall not sell or offer for sale a mattress to any person in this state unless the manufacturer of that mattress is in compliance with this chapter. (1) (A) On and after August 1, 2014, if a manufacturer is not covered by an approved plan or a conditionally approved plan, as specified in Section 42991, the manufacturer shall not sell or offer for sale a mattress in the state. (B) For purposes of this paragraph, "covered" means the manufacturer has submitted a final plan to the department pursuant to Section 42988 either individually, collectively, or through a stewardship organization. (C) On August 1, 2014, or upon the date a final plan is approved or conditionally approved by the department, whichever date comes first, and every six months thereafter, the department shall post on its Internet Web site a list of manufacturers covered by a final plan that is approved or conditionally approved by the department pursuant to subdivision (a) of Section 42991. (D) A manufacturer that is not listed on the department's Internet Web site pursuant to this paragraph, but demonstrates to the satisfaction of the department that it is in compliance with this chapter before the next notice is required to be posted pursuant to this section, may request a certification letter from the department stating that the manufacturer is in compliance. A manufacturer that receives a letter pursuant to this subparagraph shall be deemed to be a covered manufacturer in compliance with this chapter and the department shall include the manufacturer on the list specified in subparagraph (C). (2) (A) On or before July 1, 2013, and on or before 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. (B) A manufacturer that is not listed on the department's Internet Web site pursuant to this paragraph, 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. A manufacturer that receives a letter pursuant to this paragraph shall be deemed to be in compliance with this chapter and the department shall include the manufacturer on the list specified in subparagraph (A). (3) A wholesaler or retailer that distributes or sells mattresses shall monitor the department's Internet Web site to determine if the manufacturer is a covered manufacturer or in compliance with the requirements of this chapter. A wholesaler or retailer otherwise in compliance with this chapter shall be deemed in compliance with this section if, on the date the wholesaler or retailer ordered or purchased a mattress, the manufacturer was listed as a covered or compliant manufacturer on the department's Internet Web site pursuant to paragraph (1) or (2) or within five calendar days of the department posting its notice on January 1 or July 1. (4) A retailer may exhaust existing stock in its inventory through sales to the public if the existing stock was purchased from a manufacturer who was in compliance with the requirements of this chapter at the time of the existing stock's initial purchase. (b) A manufacturer is in compliance with this chapter if the manufacturer complies with the following requirements, as applicable: (1) On or before April 1, 2013, submits an initial mattress recovery and recycling plan to the department pursuant to Section 42987. (2) On or before April 1, 2014, submits a final mattress recovery and recycling plan to the department pursuant to Section 42988. (3) On and after July 1, 2014, implements a final plan that the department has approved or conditionally approved pursuant to Section 42991. 42991. (a) The department shall review a final plan submitted pursuant to Section 42988 and within 90 days of receipt shall approve, disapprove, or conditionally approve the plan. If a final plan is disapproved, the department shall remove the name of the manufacturer from the department's Internet Web site specified in subparagraph (A) of paragraph (2) of subdivision (a) of Section 42990. (b) The department shall review the annual report required pursuant to Section 42993 and within 90 days of receipt shall adopt a finding of compliance or noncompliance with this chapter. (1) If the department determines that a manufacturer or stewardship organization is not meeting the requirements of this chapter, the department may require that the manufacturer or stewardship organization to amend and resubmit the plan within 90 days of the department's determination. (2) If the manufacturer or stewardship organization does not resubmit a final plan pursuant to paragraph (1), or if the department does not approve or conditionally approve the final plan submitted pursuant to paragraph (1), the department shall remove the name of the manufacturer from the department's Internet Web site specified in subparagraph (A) of paragraph (2) of subdivision (a) of Section 42990. (c) A manufacturer or retailer shall not sell a mattress in the state for which the department has removed the name of the manufacturer, pursuant to paragraph (2) of subdivision (b), from the department's Internet Web site specified in subparagraph (A) of paragraph (2) of subdivision (a) of Section 42990, until the department approves a final plan for that manufacturer. 42992. (a) A manufacturer or stewardship organization submitting a final mattress recovery and recycling plan shall pay the department a quarterly administrative fee, as determined by the department. (b) The amount of the administrative fee imposed pursuant to subdivision (a) shall be established by the department for the reasonable regulatory costs to the department incident to performing any audits and inspections necessary to enforce the provisions of this chapter and for the administrative enforcement costs and adjudication thereof. (c) In determining the amounts of the administrative fee imposed pursuant to subdivision (a), the department may establish a variable fee based on relevant factors, including, but not limited to, the portion of mattresses sold in the state by individual manufacturers, as compared to the total amount of mattresses sold in the state by all manufacturers or stewardship organizations submitting a mattress recovery and recycling plan. (d) The administrative fees collected pursuant to this section shall be deposited into the Mattress Recovery and Recycling Account, which is hereby established in the Integrated Waste Management Fund. Upon appropriation by the Legislature, moneys in the account shall be expended by the department to implement this chapter. 42993. On or before April 1, 2015, and on or before April 1 annually thereafter, a manufacturer shall, individually, collectively, or through a stewardship organization, submit a report to the department describing its mattress stewardship efforts as outlined in the approved or conditionally approved final plan. At a minimum, the report shall include all of the following: (a) Quantitative information on progress in achieving the waste mattress program activities specified in paragraphs (1) and (2) of subdivision (b) of Section 42988. (b) Calculations of progress in achieving the recycling goals specified in paragraph (6) of subdivision (b) of Section 42988, consistent with the methodology adopted pursuant to that paragraph. (c) A description of achievement in the program techniques specified in paragraph (3) of subdivision (b) of Section 42988. (d) The total volume, number, and weight of waste mattresses collected, recycled, renovated, reused, and used for energy recovery in this state during the preceding calendar year, including any conversion factor used to determine the number of mattresses recovered. (e) A description of methods used to collect, transport, and process waste mattresses in this state. (f) Examples of any educational materials provided to consumers the first year of implementing the plan and any changes to those materials in subsequent years. (g) Other information relevant to compliance with the plan. 42994. (a) The department may impose an administrative civil penalty on any person who is in violation of this chapter. The amount of the civil penalty shall not exceed one thousand dollars ($1,000) per day, but if the violation is intentional, knowing, or negligent, the department may impose a civil penalty of not more than ten thousand dollars ($10,000) per day. (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. (c) The department shall deposit all penalties collected pursuant to this section into the Mattress Recovery and Recycling Penalty Account, which is hereby established in the Integrated Waste Management Fund. Upon appropriation by the Legislature, moneys in the penalty account shall be expended by the department to implement this chapter.