Bill Text: CA SB1118 | 2011-2012 | Regular Session | Amended


Bill Title: Solid waste: used mattresses: recycling and recovery.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2012-08-31 - In Senate. Concurrence in Assembly amendments pending. Re-referred to Com. on RLS. pursuant to Senate Rule 29.10. From committee: Be re-referred to Com. on E.Q. pursuant to Senate Rule 29.10. (Ayes 4. Noes 0. Page 5116.) Re-referred to Com. on E.Q. From committee: That the Assembly amendments be concurred in. (Ayes 5. Noes 0. Page 5131.) Died on call. Senate refused to concur in Assembly amendments. [SB1118 Detail]

Download: California-2011-SB1118-Amended.html
BILL NUMBER: SB 1118	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 31, 2012
	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.
   (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
provide an 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 used mattresses generated by consumers. The bill would
require a manufacturer to implement the 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 mattress stewardship plan to the department
by April 1, 2014. The bill would specify the requirements to be
included in the plan, including meeting specified recycling goals.
The bill would specify a procedure for the department's approval,
disapproval, or conditional approval of a plan.
   The bill would require a retailer of mattresses on and after July
1, 2013, to offer the consumer the option of picking up a 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 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 require the department, by August 1,
2014, except as specified, and by July 1 annually thereafter, to post
on its Internet Web site a listing of manufacturers that have
submitted a plan and to annually post a listing of manufacturers in
compliance with the act. The bill would require retailers that
distribute or sell mattresses to monitor the department's Internet
Web site to determine if 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 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 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 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: 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) 
   42988.    (a)  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) 
    (b)  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)   (c)
 .
   (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) 
    (c)  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)  
(b)  :
   (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) 
    (d)  A manufacturer is deemed to meet the mattress
recycling percentile goal specified in subdivision  (d)
  (c)  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)  (b) 
of the plan. 
   (f) 
    (e)  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) 
    (f)  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  to
 subdivision  (b)   (a)  of Section
42988.
   (2) A calculation of the plan's progress in achieving the
recycling goals specified in subdivision  (d)  
(c)  of Section 42988, consistent with the methodology specified
in the plan pursuant to paragraph (6) of subdivision  (c)
  (b)  of Section 42988.
   (3) A description of the achievement of program objectives
specified in the plan pursuant to paragraph (3) of subdivision
 (c)   (b)  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.
feedback