Bill Text: CA SB245 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Contracts.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2014-07-10 - Chaptered by Secretary of State. Chapter 117, Statutes of 2014. [SB245 Detail]

Download: California-2013-SB245-Amended.html

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BILL NUMBER: SB 245	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 1, 2013

INTRODUCED BY   Senator Correa
   (Principal coauthor: Senator Calderon)

                        FEBRUARY 12, 2013

   An act  to add Chapter 6 (commencing with Section 48800) to
Part 7 of Division 30 of the Public Resource   s Code, 
  relating to recycling.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 245, as amended, Correa. Recycling: mattresses.
   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  declare the intention of the Legislature
to enact subsequent legislation to establish a program for the
management of used mattresses, with specified components 
 enact the "Used Mattress Recycling Act" and would define terms
for purposes of the act  . 
   The bill would require a qualified industry association, or a
successor organization, to establish a mattress recycling
organization by November 1, 2014, and would require each manufacturer
and retailer to register with the mattress recycling organization by
February 1, 2015. The bill would prohibit a manufacturer or a
retailer from taking specified actions with regard to selling or
distributing a mattress in the state after that date, unless the
manufacturer or retailer is in compliance with the act, as specified.
 
   The bill would require the organization, by July 1, 2015, to
develop a state plan for recycling used mattresses that includes
specified goals and elements and to submit the plan to the Department
of Resources Recycling and Recovery. The bill would require the
department to review the plan for consistency and to notify the
organization of any inconsistences within 90 days after submittal of
the plan. The bill would provide that if the department does not find
any inconsistencies, the plan would be deemed approved by the
department. The bill would require the organization to implement the
approved plan by November 1, 2015.  
   The bill would require the organization to annually prepare and
approve a proposed plan budget for the next calendar year and to
submit the approved budget to the department. The department would be
required to review the budget, as specified.  
   The department would be required to notify the organization of the
department's direct costs in implementing the act and the
organization would be required to reimburse the department for those
costs. The bill would require the department to deposit these amounts
submitted by the organization into the Used Mattress Recycling
Account, which the bill would establish in the Integrated Waste
Management Fund. The bill would require the department to expend the
moneys in the account, upon appropriation by the Legislature, to
administer and enforce the act.  
   The bill would require the organization to annually set the amount
of a state mattress recycling charge that would be added to the
purchase price of a mattress, and would require a manufacturer,
retailer, wholesaler, distributor, or other party that sells a
mattress to add the charge to the purchase price for the mattress.
This bill would constitute a change in state statute that would
result in a taxpayer paying a higher tax within the meaning of
Section 3 of Article XIII A of the California Constitution, and thus
would require for passage the approval of 2/3 of the membership of
each house of the Legislature.  
   The bill would specify procedures for the collection and
disbursement of the charge by the organization. The bill would
require the organization to be subject to an annual audit and to
annually publish, and make publically available on its Internet Web
site, a report regarding the implementation of the plan. The
organization would be required to submit the annual report to the
department, for review, as specified.  
   The bill would require the organization to post information
regarding compliance with the act on its Internet Web site and would
require a retailer that distributes or sells a mattress to monitor
the organization's Internet Web site.  
   The department would be authorized to impose an administrative
civil penalty on a manufacturer or retailer who sells a mattress in
violation of the act. The department would be required to deposit
these penalties into the Mattress Recovery and Recycling Penalty
Account, which the bill would create in the Integrated Waste
Management Fund. The department would be authorized to expend the
moneys in that account, upon appropriation by the Legislature, to
implement the act.  
   The department would be required to annually review the
organization's compliance with the act and notify the organization,
as specified. The department would also be required to periodically,
but not less than once every 3 months, determine whether a federal
statute has been enacted that requires a national used mattress
recycling plan. If the department determines that this federal
statute has been enacted, the department would be required to post
this information on its Internet Web site and submit a notice to the
Secretary of State and the Office of the Legislative Counsel and the
act would become inoperative 30 days after the date that the
department issues that notice. 
   Vote:  majority   2/3  . Appropriation:
no. Fiscal committee:  no   yes  .
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Chapter 6 (commencing with Section
48800) is added to Part 7 of Division 30 of the   Public
Resources Code   , to read: 
      CHAPTER 6.  USED MATTRESS RECYCLING ACT



      Article 1.  Findings and Declarations


   48800.  The Legislature finds and declares all of the following:
   (a) At the end of their useful life, most mattresses and
foundations or box-springs are either discarded in landfills or are
renovated by companies, some of whom sell them to unsuspecting
consumers in an unhygienic, unsafe, or dishonest manner. Some used
mattresses are illegally dumped.
   (b) Used mattresses contain materials or components that have
commercial value if reclaimed from the waste stream.
   (c) Recycling used mattress materials and components can also
benefit the environment by conserving scarce resources, by reducing
the air and water pollution and greenhouse gases that otherwise would
be generated in producing new products from virgin materials, and by
conserving landfill capacity.
   (d) The cost of collecting, dismantling, and reclaiming materials
or components from used mattresses in most cases exceeds the
recycling revenue generated from selling the reclaimed materials and
components.
   (e) California encourages policies that divert recyclable products
and materials from the state's landfills and that result in those
products and materials being recycled or used in a commercially
reasonable manner.
   (f) California would benefit from a plan that would allow the
mattress industry to fund, develop, and publicize a program to
establish and sustain a network of facilities that will recycle used
mattress components and create recycling employment opportunities.
   (g) It is also critical that the plan minimize the expenditure of
resources and funds for the state government's oversight
responsibilities.
   (h) To increase recycling, reduce public agency costs for the
end-of-life management of used mattresses, and reduce illegal
dumping, the Used Mattress Recycling Act is hereby established by
this chapter to develop, finance, and implement a convenient and
cost-effective program to collect and recycle used mattresses
generated in this state.
   48801.  This chapter shall be known, and may be cited, as the Used
Mattress Recycling Act.

      Article 2.  Definitions


   48802.  For the purposes of this chapter, the following terms have
the following meanings:
   (a) (1) "Consumer" means an owner of a mattress, including a
person, business, corporation, limited partnership, nonprofit
organization, or governmental entity, and including the ultimate
purchaser, owner, or lessee of a mattress.
   (2) "Consumer" does not include a government organization or other
party that obtains one or more used mattresses in the course of
collecting used mattresses for recycling for purposes of this
chapter, or through the ordinary collection and handling of municipal
solid waste.
   (b) "Distributor" means a company that has a contractual
relationship with one or more manufacturers to market and sell
mattresses to retailers.
   (c) "Foundation" means a ticking covered structure used to support
a mattress or sleep surface. The structure may include constructed
frames, foam, box springs, or other materials, used alone or in
combination.
   (d) "Importer" means a party qualifying as an "importer of record"
for purposes of Section 1484(a)(2)(B) of Title 19 of the United
States Code, with regard to the import of a finished mattress sold in
the state that was manufactured or assembled by a company outside
the United States.
   (e) "Industry" means a person who manufactures mattresses sold in
the state.
   (f) "Manufacturer" means a person that manufactures, assembles, or
imports a finished new mattress in this state that is then sold,
offered for sale, or distributed in the state.
   (g) (1) "Mattress" means a resilient material or combination of
materials that is enclosed by a ticking, used alone or in combination
with other products, and that is intended for or promoted for
sleeping upon.
   (2) "Mattress" includes a foundation and a renovated mattress or
renovated foundation.
   (3) "Mattress" does not include any of the following:
   (A) An unattached mattress pad or unattached mattress topper,
including items with resilient filling, with or without ticking,
intended to be used with or on top of a mattress.
   (B) A sleeping bag or pillow.
   (C) A car bed, crib, or bassinet mattress.
   (D) A carriage, basket, dressing table, stroller, playpen, infant
carrier, lounge pad, or crib bumper.
   (E) A product containing 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.
   (F) Upholstered furniture that does not otherwise contain a
detachable mattress.
   (G) Juvenile product pads, including car bed pads, carriage pads,
basket pads, infant carrier and lounge pads, dressing table pads,
stroller pads, crib bumpers, and playpen pads.
   (h) "Mattress recycling organization" or "organization" means an
organization exempt from tax under Section 501(c)(3) or Section 501
(c)(6) of the Internal Revenue Code of 1986, that is established by a
qualified industry association, and that is composed of
manufacturers and retailers, to develop, implement, and administer
the mattress recycling program established by this chapter.
   (i) "Plan" means the plan for recycling used mattresses that is
developed by the organization pursuant to Section 48804.
   (j) "Program" or "used mattress recycling program" means the
program implemented by the mattress recycling organization pursuant
to an approved plan.
   (k) "Qualified industry organization" means the International
Sleep Products Association, a successor of that organization, or a
group of mattress manufacturers that collectively represent at least
35 percent of the volume of mattresses manufactured in the United
States.
   (l) (1) "Recycle" or "recycling" has the same meaning as defined
in Section 40180.
   (2) "Recycle" does not include the renovation or the reuse of
materials obtained from a used mattress in a renovated mattress,
except in the form of clean recycled material.
   (m) "Recycling charge" or "charge" means the charge collected by
the organization to fund the recycling of used mattresses.
   (n) "Renovate" or "renovation" means altering a used mattress for
the purpose of resale and includes any one, or a combination of the
following:
   (1) Replacing the mattress ticking or filling.
   (2) Adding additional filling.
   (3) Rebuilding a used mattress.
   (4) Replacing components with new or postconsumer materials,
unless the material is a clean recycled material, consists of used
electronic parts or controls, or is a used mattress base that is not
covered by ticking.
   (o) (1) "Renovated mattress" means a mattress that has undergone
renovation for the purpose of resale.
   (2) "Renovated mattress" does not include either of the following:

   (A) A product renovated by a person who intends to retain the
renovated mattress for the person's own use.
   (B) A product renovated by a renovator hired by the person who
intends to take back the renovated mattress for the person's own use.

   (p) "Retailer" means a person who sells mattresses in the state or
offers to a consumer a mattress in the state through any means,
including, but not limited to, by remote offering, including sales
outlets or catalogs, electronically through the Internet, by
telephone, or through the mail.
   (q) "Sale" or "sell" means the transfer of title of a mattress for
consideration, including by a manufacturer, a distributer, or a
retailer, for eventual consumption to a consumer in the state,
regardless of whether the mattress was made in or imported into the
state, including remote sales conducted through sales outlets,
catalogs or the Internet or through any other similar electronic
means. For purpose of this chapter, a long-term lease of not less
than 12 months is the same as a sale.
   (r) "State mattress recycling charge" or "charge" means the charge
imposed upon the sale of a new mattress pursuant to Article 5
(commencing with Section 48810).
   (s) (1) "Ticking" means the outermost layer of fabric or related
material of a mattress.
   (2) "Ticking" does not include another layer of fabric or related
material that is quilted together with, or otherwise attached to, the
outermost layer of fabric or related material.
   (t) "Used mattress" means a mattress that has been discarded by a
consumer.

      Article 3.  Mattress Recycling Plan


   48803.  (a) On or before November 1, 2014, a qualified industry
association or a successor organization shall establish a mattress
recycling organization, which shall be composed of manufacturers and
retailers, to develop, implement, and administer the mattress
recycling program established by this chapter.
   (b) On or before February 1, 2015, each manufacturer and retailer
shall register with the mattress recycling organization, at no charge
to the manufacturer or retailer.
   (c) On and after February 1, 2015, a retailer shall not sell,
distribute, or offer for sale a mattress in the state unless the
retailer is in compliance with this chapter and the manufacturer of
the mattress sold by the retailer is listed in compliance with this
chapter, as specified in Section 48820.
   (d) On and after February 1, 2015, a manufacturer shall not
manufacture, assemble, or import a finished new mattress in this
state, or sell or distribute a mattress to a distributor or retailer,
unless the manufacturer is in compliance with this chapter.
   48804.  On or before July 1, 2015, the mattress recycling
organization shall develop and submit to the department a plan for
recycling used mattresses in the state in an economically efficient
and practical manner that includes all of the following goals and
elements:
   (a) Methods to increase the number of used mattresses diverted
from landfills, reduce the number of illegally dumped used
mattresses, and increase the quantity of used materials recovered
through this process and recycled for other uses.
   (b) The establishment and administration of a means for funding
the plan in a manner that distributes the organization's costs
uniformly over all mattresses sold in the state and that includes the
charge set and collected pursuant to Article 5 (commencing with
Section 48810).
   (c) The establishment of a financial incentive to encourage
parties to collect for recycling used mattresses discarded or
illegally dumped in the state.
   (d) The publishing of an annual report for each calendar year of
operation, as specified in Section 48816.
   (e) Conducting research, as needed, related to improving the
efficiency of used mattress collection, dismantling, and recycling
operations, including pilot programs to test new processes, methods,
or equipment on a local, regional, or otherwise limited basis.
   (f) Establishing the mattress recycling baseline amount in the
state as of July 1, 2016, and setting goals to increase the recycling
of used mattresses, as economically and programmatically practical.
The goals may be revised by the organization based on the information
collected for the annual report.
   (g) Coordinating activities with existing used product collecting
and recycling plans operating in the state, or elsewhere, for
discarded mattresses or other products, and other relevant parties as
appropriate, to provide efficient delivery of services and avoid
unnecessary duplication of effort and expense.
   (h) Providing outreach efforts and education to consumers,
manufacturers and retailers, for the purpose of promoting the
recycling of used mattresses. This element shall include providing
information to retailers that the organization determines will
promote implementation of its plan, including, but not limited to,
both of the following:
   (1) Written materials to be provided to the consumer with the
mattress. These written materials shall include information on the
proper disposal of used mattresses by consumers.
   (2) Advertising or other promotional materials, or both, that
includes references to mattress recycling opportunities.
   (i) The promotion of consumer and public education about safety
and other issues associated with the use of renovated mattresses.
   (j) Entering into contracts or agreements that are necessary and
proper for the organization to carry out these duties consistent with
the terms of this chapter, including, as the organization considers
necessary, contracts with agencies of the federal, state, or
political subdivisions of a state government to assist in the
collection of charges and the enforcement of this chapter.
   (k) Annually evaluating the performance of the plan, taking into
consideration technical and economic feasibilities, in achieving
continuous, meaningful improvement in the rate of used mattress
recycling in the state.
   48805.  (a) The departments shall review the plan submitted
pursuant to Section 48804 for consistency with this chapter and shall
notify the organization of any inconsistences within 90 days after
submittal of the plan.
   (b) If the department does not find any inconsistencies regarding
the plan, the plan shall be deemed approved by the department.
   48806.  On or before November 1, 2015, the mattress recycling
organization shall implement the approved plan.

      Article 4.  Budget


   48806.5.  On or before July 1, 2015, and on or before July 1
annually thereafter, the organization shall prepare a proposed plan
budget for the next calendar year that includes all of the following:

   (a) Proposed recycling goals and other goals for the next calendar
year.
   (b) Anticipated costs of implementing the program, including
related programs, projects, contracts and administrative expenses.
   (c) A recommended funding level sufficient to cover the program's
costs and to operate the program over a multiyear period in a prudent
and responsible manner.
   48807.  (a) On or before October 1, 2015, and on or before October
1 annually thereafter, the organization shall approve a final plan
budget.
   (b) The organization shall submit the final plan budget to the
department.
   (c) Within 90 days after receiving the final plan budget, the
department shall review that budget for consistency with this chapter
and notify the organization of any inconsistencies.
   (d) If the department does not find any inconsistencies regarding
the plan budget, that budget shall be deemed approved by the
department.
   48808.  (a) The department shall notify the organization of the
department's direct costs in implementing this chapter relating to
the organization's activities pursuant to this chapter.
   (b) Once every three months, the organization shall reimburse the
department for all direct costs the department incurs relating to the
organization's activities pursuant to this chapter.
   (c) The department shall deposit all moneys submitted by the
organization pursuant to this section into the Used Mattress
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 funds collected pursuant to this section
shall not be expended for any other purpose.

      Article 5.  State Mattress Recycling Charge


   48810.  (a) The organization shall annually set the amount of the
state mattress recycling charge that shall be added to the purchase
price of a mattress.
   (b) The amount of the state mattress recycling charge shall be
sufficient to fund the revenue requirements set forth in an approved
budget determined pursuant to Section 48807.
   (c) The organization may increase or decrease the charge more
frequently than annually if it determines that an increase or
decrease in the amount of the charge is needed to avoid funding
shortfalls or excesses. Any change in the charges shall be announced
90 days before taking effect. The organization shall inform the
department of any changes in the amount of the charge.
   48811.  (a) Each manufacturer, retailer, distributor, or other
party that sells a mattress to a consumer or to the ultimate end user
of the mattress in the state shall add the charge determined
pursuant to Section 48810 to the purchase price of the mattress, and
shall remit the charge collected to the organization.
   (b) In each transaction described in subdivision (a), the charge
shall be clearly visible on the invoice or functionally equivalent
billing document provided by the seller to the buyer as a separate
line item and shall be accompanied by a brief description of the
charge as the state mattress recycling charge.
   (c) The organization may establish alternative or additional means
for collecting or remitting the charge if the other means are
practicable and do not compromise the objectives of this chapter.
   (d) The organization shall develop reimbursement criteria to
enable retailers to recover the administrative costs associated with
collecting the charge.
   (e) The organization shall determine the rules and procedures that
are necessary and proper to implement the collection of the charge
in a fair, efficient, and lawful manner.
   (f) (1) The organization may conduct an audit of those parties
that are required to remit the charge to the organization to verify
that the charges paid are proper and accurate, and to ensure all
parties required by this chapter to pay or collect the charge are
paying or collecting the proper amount.
   (2) An audit conducted pursuant to this subdivision shall be
carried out in accordance with generally accepted auditing practices
and shall be limited in scope to confirming whether the charge has
been properly collected on all sales of mattresses to consumers in
the state.
   (3) The audit shall be structured and conducted in a manner that
will minimize the cost and disruption to the party being audited.
   (4) For purposes of conducting audits pursuant to this section,
the organization shall hire independent third-party auditors that
will respect the confidential proprietary nature of commercial and
transactional information obtained in the course of the audit, and
that will not disclose the data to retailers, manufacturers, or other
parties that do not have a specific need for access to that
information.
   48812.  (a) The organization shall deposit the charges and other
sums collected by the organization pursuant to this chapter in
accounts that are maintained by the organization and are disbursed
only by the organization.
   (b) A charge imposed pursuant to this section shall not be subject
to any sales tax, excise tax, and value added tax, income tax, gross
receipts tax, use tax, or any other type of tax, levy, duty, or
assessment imposed by the state or a political subdivision of the
state.
   (c) Until the organization disburses the charges and other money
collected pursuant to this chapter, the organization may invest those
funds only in obligations of the United States or any agency
thereof, in an interest-bearing account or certificate of deposit of
a bank that is a member of the Federal Reserve System, or in an
obligation fully guaranteed as to principal and interest by the
United States.
   (d) The organization may enter into a joint venture or agreements
and contracts with third parties, including, but not limited to,
corporations, partnerships, nonprofit entities, and government
agencies, to undertake activities on the organization's behalf that
are consistent with this chapter.
   (e) The organization may issue bonds, obtain loans, and obtain
other forms of debt financing, if the proceeds from those
transactions are used for purposes consistent with this chapter.

      Article 6.  Records, Audits, and Annual Report


   48815.  (a) The organization shall keep minutes, books, and
records that clearly reflect the activities and transactions of the
organization.
   (b) The books of the organization shall be audited at the
organization's expense by a certified public accountant retained by
the organization at least once each calendar year.
   (c) The organization shall arrange for the audit to be delivered
to the department. The department shall review the audit for
consistency with the plan created pursuant to this chapter and shall
notify the organization of any inconsistencies. The organization may
also obtain copies of the audit upon request. The audit of the
organization shall not disclose confidential proprietary information.

   48816.  Not less than once each calendar year, the organization
shall publish, and make publically available on its Internet Web
site, a report that describes for the preceding calendar year all of
the following:
   (a) The organization's costs and revenues,
   (b) The quantity of mattresses disposed of in solid waste
landfills, which shall be provided by the department to interested
parties.
   (c) The quantity of discarded used mattresses collected for
recycling in the program.
   (d) The quantity of used mattresses collected for recycling from
different categories of sources.
   (e) The quantity of each category of materials recycled.
   (f) The uses for the recycled materials.
   (g) The quantity of otherwise disposed of materials.
   48817.  The organization shall submit the annual report published
pursuant to Section 48816 to the department. The department shall
review the annual report for consistency with Section 48816 and shall
notify the organization of any inconsistencies.

      Article 7.  Enforcement


   48820.  (a) On February 1, 2015, and, commencing with the 2016
calendar year, on or before July 1 annually thereafter, the
organization shall post on its Internet Web site a list of
manufacturers and retailers who are in compliance with this chapter.
   (b) A manufacturer or retailer that is not listed on the
organization's Internet Web site pursuant to this section, but
demonstrates to the satisfaction of the organization 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 organization stating that the manufacturer or retailer is in
compliance. The manufacturer or retailer that receives that letter
shall be deemed to be in compliance with this chapter.
   (c) A retailer that distributes or sells a mattress shall monitor
the organization's Internet Web site to determine if a manufacturer
is in compliance with this chapter. A retailer otherwise in
compliance with this chapter shall be deemed in compliance with this
chapter if, on the date the retailer ordered or purchased a mattress,
or within 30 calendar days before or after that date, the
manufacturer was listed as covered or compliant on the organization's
Internet Web site.
   (d) 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.
                                                          (e) A
manufacturer that distributes or sells a mattress to a retailer for
resale in the state shall monitor the organization's Internet Web
site to determine if the retailer is in compliance with this chapter.
A manufacturer otherwise in compliance with this chapter shall be
deemed in compliance with this chapter if, on the date the retailer
ordered or purchased a mattress, or within 30 calendar days before or
after that date, the retailer was listed as covered or compliant on
the organization's Internet Web site.
   (f) If the organization determines that a manufacturer or retailer
is not in compliance with this chapter, it shall remove the name of
the manufacturer or retailer from the organization's Internet Web
site pursuant to this section and the manufacturer or retailer shall
not sell a mattresses in the state until the organization determines
that the manufacturer or retailer is in compliance with this chapter,
except that a retailer may exhaust its existing stock in its
inventory consistent with the requirements  of subdivision (d).
   48821.  (a) The department may impose an administrative civil
penalty on a manufacturer or retailer who sells a mattress in
violation of this chapter. The amount of the civil penalty shall not
exceed five hundred dollars ($500) per mattress sold in violation of
this chapter.
   (b) 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 enforce this chapter.
   48822.  The department shall annually review the organization's
compliance with this chapter, based on the results of the report and
an annual audit provided by the organization. If the department
determines the organization is not in compliance with this chapter,
the department shall identify any inconsistencies and notify the
organization of those inconsistencies.

      Article 8.  Antitrust Immunity


   48830.  (a) Except as provided in subdivision (b), an action by
the 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):
   (1) The development, implementation, or management by the
organization of a mattress recycling plan pursuant to this chapter
and the types or quantities of used mattress being recycled or
otherwise managed under that plan.
   (2) The cost and structure of a mattress recycling plan approved
by the department.
   (3) The organization's establishment, administration, collection,
or disbursement of charges associated with funding the implementation
of this chapter.
   (b) Subdivision (a) does not apply to an agreement that does any
of the following:
   (1) Fixes a price of or for new mattresses, except for any action
related to fees or costs associated with participation in a mattress
recycling plan developed and implemented by the organization in
accordance with this chapter.
   (2) Fixes the output of production of mattresses.
   (3) Restricts the geographic area in which, or customers to whom,
new mattresses will be sold.

      Article 9.  Operation of Chapter


   48835.  (a) The department shall periodically, but not less than
once every three months, determine whether a federal statute has been
enacted that requires a national used mattress recycling plan.
   (b) If the department determines that a federal statute has been
enacted that requires a national used mattress recycling plan, the
department shall post this determination on its Internet Web site and
shall submit a notice to the Secretary of State and the Office of
the Legislative Counsel.
   (c) Thirty days after the date that the department issues the
notice required pursuant to subdivision (b), the requirements of this
chapter shall become inoperative.  
  SECTION 1.    The Legislature hereby declares its
intention to enact subsequent legislation to establish a program for
the management of used mattresses that would create an economically
practical system for recycling used mattresses, reduce the impact of
illegally dumped mattresses, harness existing infrastructure for
transporting used mattresses to recyclers, and minimize costs to both
governments and consumers.