Bill Text: CA SB254 | 2013-2014 | Regular Session | Amended

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

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

Spectrum: Partisan Bill (Democrat 6-0)

Status: (Passed) 2013-09-27 - Chaptered by Secretary of State. Chapter 388, Statutes of 2013. [SB254 Detail]

Download: California-2013-SB254-Amended.html

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BILL NUMBER: SB 254	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  AUGUST 6, 2013
	AMENDED IN SENATE  MAY 28, 2013
	AMENDED IN SENATE  APRIL 15, 2013
	AMENDED IN SENATE  APRIL 1, 2013

INTRODUCED BY   Senators Hancock and Correa
   (Principal coauthor: Senator Calderon)
   (Coauthor: Senator Corbett)

                        FEBRUARY 13, 2013

   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 254, as amended, Hancock. Solid waste: used mattresses:
recycling and recovery.
   Existing law requires a retailer of various specified products,
such as rechargeable batteries and cellular telephones, 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. The bill would authorize a qualified industry association, as
defined, to establish a mattress recycling organization, as 
defined, and be certified by the   defined. The bill
would authorize the  Department of Resources Recycling and
Recovery to  certify   that a mattress recycling
organization has been established. The bill would require the
mattress recycling organization to  develop, implement, and
administer a mattress recycling program  on or before July 1,
2014   pursuant to the act . The bill would
require  manufacturers   manufacturers,
renovators,  and retailers of mattresses to register with the
mattress recycling organization on or before January 1, 2015.
    This bill would prohibit, on and after  January 
 May  1, 2015, the manufacturer or  retailer
  renovator  from, among other things, 
manufacturing or  selling  in, or importing  a
mattress  in   into,  this state under
circumstances of noncompliance with the bill's requirements and
would prohibit a retailer, on and after January 1, 2015, from selling
a mattress under circumstances of   noncompliance  .
The act would require the retailer, by July 1, 2014, to give a
consumer the option to have a used mattress picked up, at no
additional cost, at the time a new mattress is delivered or be
provided with an opportunity for free  drop off 
 dropoff  of the used mattress.
   This bill would require the mattress recycling organization, by
 April   July  1, 2015, to develop a state
plan for recycling used mattresses in the state that includes
specified goals and elements and to submit the plan to the
department, as specified. The plan would be required to include,
among other things, providing a mechanism to local governments and
solid waste facilities to recover illegally disposed mattresses that
is funded, as specified, and reimbursing solid waste facilities for
certain costs. The bill would require the organization, by July 1,
2015, to annually prepare and approve a proposed  used mattress
recycling  program plan budget for the next calendar year and to
submit the approved budget to the department, as specified. The bill
would require the department 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
direct 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.
    This 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,
 renovator,  retailer, wholesaler, distributor, or other
party that sells a mattress to add the charge to the purchase price
for the mattress and remit the charge collected to the organization.
    This bill would authorize the department to impose an
administrative civil penalty on a  manufacturer 
 manufacturer, organization, recycler, renovator,  or
retailer  who sells a mattress  in violation of the
act. The bill would require the department 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 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.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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 both of the following: 
   (a) 
    (   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
recover and recycle used mattresses generated in this state. 

   (b) 
    (   2)  The program developed and implemented
by manufacturers of mattresses sold in this state shall strive for
the maximum feasible level of recovery and recycling of used
mattresses generated in support of the statewide goal that at least
75 percent of all solid waste be recycled by January 1, 2020. 
   (b) It is the intent of the Legislature in enacting this chapter
that consumers have the opportunity to drop off their used mattresses
free of charge. 
   42985.1.  This chapter shall be known, and may be cited, as the
Used Mattress Recovery and Recycling Act.

      Article 1.  Definitions


   42986.  (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) (1) "Manufacturer" means any of the following:
   (A) The person who manufactures  the covered product
  a mattress  and who sells, offers for sale, or
distributes  that product in   a mattress in
 the state.
   (B) If there is no person who is a manufacturer of  the
product   a mattress  for purposes of subparagraph
(A), the manufacturer  of the covered product  is
the person who imports the  product   mattress
 into the state for sale or distribution. 
   (2) A manufacturer may include a renovator.  
   (3) A 
    (2)     Except as provided pursuant to
paragraph (2) of subdivision (b) of Section 42987, a  retailer
that brings a mattress into its store locations from an out-of-state
warehouse or distribution center is not a manufacturer.
   (f) (1) "Mattress" means a resilient material or combination of
materials that is enclosed by a ticking, is used alone or in
combination with other products, and 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 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) Juvenile products, including a carriage, basket, dressing
table, stroller, playpen, infant carrier, lounge pad, or crib bumper,
and the pads for those juvenile products.
   (E) A product containing liquid- and gaseous-filled ticking,
including a 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 or that is a fold out sofa bed or futon.
   (g) "Mattress recycling organization" or "organization" means an
organization exempt from taxation 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, composed of 
manufacturers   manufacturers, renovators,  and
retailers, and certified pursuant to Section 42987, to develop,
implement, and administer the mattress recycling program established
pursuant to this chapter.
   (h) "Used mattress recovery and recycling plan" or "plan" means
the plan for recycling used mattresses that is developed by the
mattress recycling organization pursuant to this chapter.
   (i) "Program" or "used mattress recycling program" means the
program implemented by the mattress recycling organization pursuant
to a plan approved by the department.
   (j) "Qualified industry association" 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     a trade
association that represents manufacturers that account for a majority
of mattress production in the United States, or a successor of that
organization  .
   (k) "Recycle" or "recycling" has the same meaning as defined in
Section 40180.
   (l) "Recycler" means a person that engages in the manual or
mechanical separation of mattresses to substantially recover
components and commodities contained in mattresses for the purpose of
reuse or recycling.
   (m) "Recycling charge" or "charge" means the charge imposed on the
sale of a new or renovated mattress at the point of sale and
collected by the organization to fund the recycling of used
mattresses pursuant to this chapter.
   (n) (1) "Renovate" or "renovation" means altering a used mattress
for the purpose of resale and includes one or more of the following:
   (A) Replacing the mattress, ticking, or filling.
   (B) Adding additional filling.
   (C) Rebuilding a used mattress.
   (D) 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.
   (2) "Renovate" or "renovation" does not include any of the
following:
   (A) Stripping 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.
   (o) "Renovator" means a person who renovates used mattresses 
for the purpose of sale, or offering for sale, in this state  .
   (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 distributor, or a
retailer for eventual consumption to a consumer in the state,
including remote sales conducted through sales outlets, catalogs, or
the Internet or any other similar electronic means. For purposes of
this chapter, a long-term lease of not less than 12 months is the
same as a sale.
   (r) (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.
   (s) "Used mattress" means a mattress that has been  abandoned
or  discarded by a consumer.

      Article 2.  Mattress Recycling Plan


   42987.  (a) (1) On or before July 1, 2014, a qualified industry
association or a successor organization may establish a mattress
recycling organization for purposes of this chapter, which shall be
composed of  manufacturers   manufacturers,
renovators,  and retailers and be certified pursuant to this
section to develop, implement, and administer the mattress recycling
program established pursuant to this chapter.
   (2) Within 60 days of receipt of a request for certification, the
department shall notify the requesting qualified industry association
of the department's decision whether or not to certify that  a
 mattress recycling organization    has been
established by the qualified industry association or successor
organization and is composed of manufacturers,   renovators,
and retailers for purposes of establishing the mattress recycling
plan  .
   (b)  (1)    On or before January 1, 2015, each
 manufacturer   manufacturer, renovator, 
and retailer shall register with the mattress recycling organization.

   (2) A retailer may register with the mattress recycling
organization as a manufacturer for a brand for which there is not a
registered manufacturer. 
   (c) On and after January 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 
or renovator  of the mattress sold by the retailer is listed in
compliance with this chapter.
   (d) On and after  January 1, 2015, a manufacturer shall
not manufacture, assemble, or import a new   May 1,
2015, a manufacturer or renovator shall not sell, offer for sale, or
import a mattress in this state, or sell or distribute a
mattress to a distributor or retailer, unless the manufacturer 
or reno   vator  is in compliance with this chapter.
   42987.1.  On or before  April   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) Program objectives consistent with the state's solid waste
management hierarchy.
   (b) The names of  manufacturers  
manufacturers, renovators,  and brands covered under the plan.
   (c) A consultation process with affected  stakeholders
  stakeholders, including, but not limited to, local
government representatives, recyclers, and solid waste industry
representatives  .
   (d) 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.
   (e) (1) The establishment and administration of a means for
funding the plan in a manner that distributes the mattress recycling
organization's costs uniformly over all mattresses sold in the state.

   (2) The funding mechanism shall provide sufficient funding for the
mattress recycling organization to carry out the plan, including the
administrative, operational, and capital costs of the plan.
   (f) The publishing of an annual report for each calendar year of
operation.
   (g) Conducting research, as needed, related to improving 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. 
   (h) Establishing a methodology for the purpose of determining the
state mattress recycling goal.  
   (i) 
    (   h)  A program performance measurement that
shall collect program data for the purpose of the annual report. The
information shall include:
   (1) A methodology for estimating the amount of mattresses sold in
the state, used mattresses available for collection in the state, and
for quantifying the number of used mattresses collected and recycled
in the state.
   (2) A methodology for determining mattresses sold in the state by
the manufacturers of the mattress recycling organization. 
   (j) Coordinating activities with existing used product collecting
and recycling plans for discarded mattresses or other products, and
other relevant parties as appropriate, to provide 
    (i)     A description of methods used to
coordinate activities with existing used mattress collecting and
recycling plans, including existing nonprofit mattress recyclers, and
with other relevant parties as appropriate, with regard to the
proper management or recycling of discarded or abandoned mattresses,
for purposes of providing the  efficient delivery of services
and  avoid   avoiding  unnecessary
duplication of effort and expense. 
   (k) 
    (j)  Entering into contracts or agreements that are
necessary and proper for the mattress recycling organization to carry
out these duties consistent with the terms of this chapter. 

   (l) 
    (k)  Establishment of a financial incentive to encourage
parties to collect for recycling used mattresses discarded or
illegally dumped in the state. 
   (m) 
    (   l)  Ensuring, to the maximum extent
possible, that local governments and solid waste facilities  that
are permitted to accept mattresses  are provided with a
mechanism for the recovery of illegally disposed used 
mattress   mattresses  that is funded at no
additional cost to the local government or solid waste facility.

   (n) 
    (   m)  Developing processes to collect used
mattresses from low-income communities for recycling 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.

   (o) 
    (   n)  Requiring used mattresses collected by
a retailer to be delivered to a  mattress  recycling
facility or solid waste facility for recycling  or proper
disposal  . 
   (p) 
    (   o)  Providing outreach efforts and
education to consumers, manufacturers, and retailers, for the purpose
of promoting the recycling of used mattresses. 
   (q) 
    (   p)  (1) Ensuring, to the maximum extent
possible, that solid waste facilities offer individuals the free
dropoff of used mattresses.
   (2) Reimbursing solid waste facilities for the reasonable costs
incurred in collecting, storing, and  processing 
 handling  used mattresses in accordance with paragraph (1).

   (r) 
    (   q)  Other information requested by the
department that is reasonably related to compliance with the
recycling plan and that the organization can  readily
  reasonably  compile.
   42987.2.  In preparing the plan pursuant to Section 42987.1, the
mattress recycling organization shall consult with interested
 stakeholders   stakeholders, which shall
include, but not be limited to, local government representatives,
recyclers, and solid waste industry representatives  .
   42987.3.  (a) The department shall review the plan for 
consistency   compliance  with this chapter and
shall approve, disapprove, or conditionally approve the plan within
90 days of receipt of the plan. If the department fails to act within
90 days of the receipt of the plan, the plan shall be deemed
approved.
   (b) If the department disapproves the plan pursuant to subdivision
(a), the department shall explain, in writing, how the plan 
is inconsistent   does not comply  with this
chapter, and the mattress recycling organization shall resubmit a
plan to the department. If the department finds that the plan
resubmitted by the organization  is inconsistent 
 does not comply  with the requirements of this chapter, the
mattress recycling organization shall not be deemed in compliance
with this chapter until the organization submits a plan that the
department finds  is consistent   complies 
with the requirements of this chapter.
   (c) The approved plan shall be a public record, except that
financial, production, or sales data reported to the department by
the mattress recycling organization is not 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 so the
information cannot be attributable to a specific manufacturer or
retailer or to any other entity.
   42987.4.  Within 60 days after approval or conditional approval by
the department, the mattress recycling organization shall implement
the approved plan.
   42987.5.  (a)  (1)    On or before January 1,
2017, based on methodology contained in the plan and information
contained in the first annual report, the department, in consultation
with the organization, and after taking into consideration relevant
economic and practical considerations and other information, shall
establish and make public the following: 
   (1) 
    (   A)  The state mattress recycling baseline
amount. 
   (2) 
    (   B)  The state mattress recycling goals.

   (2) When calculating the state mattress recycling goals, the
department shall include renovated mattresses.  
   (b) Beginning April 1, 2020, and annually thereafter, the annual
report required pursuant to Section 42990.1 shall demonstrate the
mattress recycling organization's substantial compliance with the
state mattress recycling goals established pursuant to this section.
 
   (b) 
    (   c)  On or before July 1, 2020, and every
four years thereafter, the department shall review, including
reviewing for consistency with Section 41780.01, and update as
necessary, the baseline amount and goals to ensure that the program
advances the statewide recycling goal.

      Article 3.  Budget


   42988.  On or before July 1, 2015, and on or before July 1
annually thereafter, the mattress recycling organization shall
prepare and submit to the department a proposed used mattress
recycling program budget for the following calendar year that
includes all of the following:
   (a) Anticipated revenues and costs of implementing the program,
including related programs, projects, contracts, and administrative
expenses.
   (b) A recommended funding level sufficient to cover the plan's
costs and to operate the mattress recycling program over a multiyear
period in a prudent and responsible manner.
   (c) The amount of the mattress recycling charge and itemization of
costs that each charge covers.
   42988.1.  (a) On or before September 1, 2015, and annually
thereafter, the department shall  approve, disapprove, or
conditionally approve a final program budget   approve
or disapprove a final used mattress recycling program budget  .
If the department fails to act or does not disapprove  or
conditionally approve  a final  used mattress recycling
 program budget, the budget shall be deemed approved.
   (b) (1) If the department disapproves the budget, the mattress
recycling organization shall resubmit a revised budget addressing the
department's written reasons for its decision within 30 days of the
disapproval.
   (2) The department, within 30 days from the date the mattress
recycling organization resubmits a revised budget, shall 
approve, disapprove, or conditionally  approve  or
disapprove  a final  used mattress recycling  program
budget. If the department fails to act or does not disapprove
 or conditionally approve  a final program budget
within those 30 days, the budget shall be deemed approved.
   42988.2.  (a) The department shall notify the mattress recycling
organization of the department's costs that are directly related to
implementing this chapter relating to the mattress recycling
organization's activities pursuant to this chapter, including any
costs incurred in certifying the mattress recycling organization and
reviewing the organization's plan submitted pursuant to Section
42987.1.
   (b) On or before July 1, 2015, and once every three months
thereafter, and within the fiscal year, the mattress recycling
organization shall reimburse the department for costs the department
incurs that are directly related to the mattress recycling
organization's activities pursuant to this chapter.  The amount
of the reim   bursement shall not exceed the direct costs
incurred by the department. 
   (c) The department shall deposit all moneys submitted for
reimbursement costs by the mattress recycling 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 4.  Mattress Recycling Charge


   42989.  (a) The mattress recycling organization shall set the
amount of the mattress recycling charge that shall be added to the
purchase price of a mattress at the point of sale and include the
charge amount in the annual budget.
   (b) (1) The amount of the state mattress recycling charge shall be
sufficient to fund the revenue requirements set forth in the
approved budget.
   (2) The mattress recycling organization shall set the charge as a
flat rate and not as a percentage of the purchase price. The
organization shall not set more than two different charges to
accommodate mattress size differentials.
   (c) (1) In the first 12 months during which the mattress recycling
 change   charge  is collected, the
mattress recycling organization may change the amount of the mattress
recycling charge, in accordance with subdivision (b), and shall
provide no less than 90 days' notice to the public before the change
in the amount of the charge takes place.
   (2) After one year from the date when the collection of the
mattress recycling charge commences, the mattress recycling
organization may change the amount of the charge in accordance with
subdivision (b), but the mattress recycling organization shall not
change the amount of the charge more frequently than annually, and
shall provide no less than 180 days' notice to the public before the
change in the amount of the charge takes effect.
   (d) The charge shall be included in the annual program budget for
approval by the department.
   42989.1.  (a) Each manufacturer,  renovator,  retailer,
or distributor that sells a mattress to a consumer or to the ultimate
end user of the mattress in the state shall add the charge to the
purchase price of the mattress and shall remit the charge collected
to the mattress recycling organization.
   (b) In each transaction described in subdivision (a), the charge
shall be clearly visible on the invoice, receipt, or functionally
equivalent billing document provided by the seller to the consumer as
a separate line item.
   (c) The mattress recycling organization shall develop
reimbursement criteria to enable retailers to recover administrative
costs associated with collecting the charge.
   (d) The mattress recycling 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.
   42989.2.  (a) The mattress recycling organization may conduct an
audit of those parties that are required to remit the charge to the
mattress recycling 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.
   (b) An audit conducted pursuant to this section 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.
   (c) For purposes of conducting audits pursuant to this section,
the mattress recycling organization shall hire independent
third-party auditors  that are approved by the department
 .
   (d) If the mattress recycling organization conducts an audit
pursuant to this section, the organization shall provide a copy of
the audit to the department  upon request by the department
 .
   42989.3.  (a) The mattress recycling organization shall deposit
the charges and other moneys collected by the mattress recycling
organization pursuant to this chapter in accounts that are maintained
and disbursed by the organization.
   (b) The mattress recycling organization may enter into a joint
venture, agreements, or contracts with third parties, including, but
not limited to, corporations, partnerships, nonprofit entities, and
governmental agencies, to undertake activities on the mattress
recycling organization's behalf that are consistent with this
chapter.

      Article 5.  Records, Audits, and Annual Report


   42990.  (a) The mattress recycling organization shall keep
minutes, books, and records that clearly reflect the activities and
transactions of the mattress recycling organization.
   (b) The  accounting  books of the mattress recycling
organization shall be audited at the organization's expense by
 a   an independent  certified public
accountant retained by the organization at least once each calendar
year.
   (c) The mattress recycling organization shall arrange for the
audit to be delivered to the department  , along with the annual
report required pursuant to Section 42990.1  . The department
shall review the audit for compliance with this chapter and
consistency with the plan created pursuant to this chapter. The
department shall notify the mattress recycling organization of any
compliance issues or inconsistencies. The mattress recycling
organization may obtain copies of the audit upon request. The
department shall not disclose any confidential proprietary
information in the audit. 
       (d) The department may conduct its own audit if it determines
that an audit is necessary to enforce the requirements of this
chapter and that the audit conducted pursuant to subdivision (b) is
not adequate for this purpose. 
   42990.1.  On or before April 1, 2016, and each year thereafter,
the mattress recycling organization shall submit to the department
and make publicly available on its Internet Web site a report that
includes, for the preceding calendar year, all of the following:
   (a) The mattress recycling 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   landfills  .
   (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.
   (h) A description of methods used to collect, transport, and
process  waste  used  mattresses in this
state.
   (i) Examples of educational materials that were provided to
consumers the first year and any changes to those materials in
subsequent years.
   (j) The total volume, number, and weight of used mattresses
collected recycled, renovated, and reused in this state during the
preceding calendar year, including any conversion factor used to
determine the number of mattresses recovered. 
   (k) For reports submitted on and after April 1, 2020, a
demonstration of substantial compliance with the state mattress
recycling goals established pursuant to Section 42987.5. 

   (k) 
    (l)  Other information relevant to compliance with the
plan. 
   42990.2.  No later than 60 days after the date the department
receives the annual report, the department shall notify the mattress
recycling organization of any deficiencies in the report. No later
than 60 days after receiving this notice from the department, the
mattress recycling organization shall provide additional information,
modification, or corrections in response to the department's
notification. 

      Article 6.  Mattress Recycling and Renovating


   42991.  (a) On or before April 1, 2016, and annually thereafter, a
person that is engaged in business as a recycler or renovator shall
submit a report to the department that includes the following:
   (1) Quantitative information on the number of mattresses received
and recycled or renovated in the state during the preceding calendar
year.
   (2) Other information deemed necessary by the department that is
reasonably related to compliance with this chapter and that can be
 readily   reasonably  compiled.
   (b) For purposes of determining the used mattress recycling rate,
on or before April 1, 2016, and annually thereafter,  a
  the operator of a  solid waste landfill facility
operator  that is permitted to accept mattresses  shall
report to the department, in a form and manner determined by the
department, regarding the number of used mattresses received by that
facility that were  recycled or renovated  
recycled, renovated, or disposed of  within the state in the
preceding calendar year. 
   (c) The department shall make the information provided pursuant to
this section available to interested parties and to the public.


      Article 7.  Retailer Used Mattress Take-back


   42992.  (a) Except as provided in subdivision (d), on and after
July 1, 2014, 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.
   (b) A retailer may contract out to a third party for the delivery
of a new mattress or pick up of a used mattress.
   (c) A retailer is not prohibited from charging the consumer for
the cost of the delivery of a new mattress.
   (d) (1) A retailer or third-party contractor delivering a new
mattress may refuse to pick up a used mattress from a consumer if the
retailer or contractor determines the used mattress is contaminated
and poses a risk to personnel, new products, or equipment.
   (2) If the retailer or third party takes the action specified in
paragraph (1), the retailer or third-party contractor shall provide
the consumer with an opportunity for the free dropoff of the used
mattress in the manner specified in paragraph (q) of Section 42987.1.

   (e) A common carrier delivering a new mattress to a consumer as a
result of an online purchase is not required to pick up a used
mattress for recovery.

      Article 8.  Enforcement


   42993.  (a) On or before  July 1, 2016,  
March 1, 2015,  and annually thereafter, the department shall
post on its Internet Web site a list of manufacturers and 
retailers   renovators  that are in compliance with
this chapter.
   (b) A manufacturer or  retailer   renovator
 that is not listed on the department's Internet Web site
pursuant to this section, but demonstrates 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 the manufacturer or  retailer  
renovator  is in compliance. The manufacturer or 
retailer   renovator  that receives the letter
shall be deemed to be in compliance with this chapter.
   (c) A retailer that distributes or sells a mattress shall monitor
the department's Internet Web site to determine if a manufacturer
 or renovator  is in compliance with this chapter. A
retailer otherwise in compliance with this chapter shall be deemed in
compliance with the chapter if, on the date the retailer ordered or
purchased a mattress, or within  30   120 
calendar days before or after that date, the manufacturer  or
renovator  was listed as  covered or  compliant
on the department's Internet Web site.
   (d) A retailer may sell or distribute the existing stock of its
inventory through sales to the public if the existing stock was
purchased when the manufacturer  or renovator  was in
compliance with the requirements of this chapter at the time when the
retailer initially purchased that stock.
   (e) The sale, distribution, or offering for sale, of any existing
inventory in stock prior to the commencement of the collection of the
mattress recycling charge pursuant to this chapter shall be deemed
to be in compliance with this chapter.
   (f) If the department determines a manufacturer or 
retailer   renovator  is not in compliance with
this chapter, the department shall remove the manufacturer or
 retailer   renovator  from the department'
s Internet Web site pursuant to this section and the manufacturer or
 retailer   renovator  shall not sell a
mattress in the state until the department determines the
manufacturer or  retailer   renovator  is
in compliance with this chapter.
   42993.1.  (a) The department may impose an administrative civil
penalty on any manufacturer, mattress recycling organization,
recycler, renovator, or retailer that is in violation of this
chapter. The amount of the administrative civil penalty shall not
exceed five hundred dollars ($500) per day, but, if the violation is
intentional, knowing, or reckless, the department may impose an
administrative civil penalty of not more than five thousand dollars
($5,000) per day.
   (b) The department shall not impose a penalty on the mattress
recycling organization pursuant to this section for a failure to
comply with this chapter if the organization demonstrates it received
false or misleading information from a member of the organization or
other party that was the direct cause of its failure to comply.
   (c) 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
  shall  be expended by the department to
administer and enforce this chapter  , including offsetting the
costs incurred by the department pursuant to Sectio   n
42988.2  .
   42993.2.  Upon a written finding that a manufacturer, mattress
recycling organization,  renovator,  or retailer has not met
a material requirement of this chapter, in addition to any other
penalties authorized under this chapter, the department may take any
of the following actions, after affording the manufacturer,
organization,  renovator,  or retailer a reasonable
opportunity to respond to, or rebut, the finding, to ensure
compliance with the requirements of this chapter:
   (a) Revoke the mattress recycling organization's plan approval or
require the mattress recycling organization to resubmit the plan.
   (b) Remove the manufacturer or  retailer  
renovator  from the department's Internet Web site and list of
compliant manufacturers and  retailers  
renovators  , as specified in Section 42993.
   (c) Require additional reporting requirements relating to
compliance with the material requirement identified by the
department.
   42993.3.  (a) A  manufacturer and  
manufacturer, renovator, retailer, and  mattress recycling
organization shall do both 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.
   (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   manufacturer, renovator, retailer, 
or mattress recycling organization if the  manufacturer
  manufacturer, renovator, retailer,  or mattress
recycling organization fails to provide the department with the
access required pursuant to this section, including, but not limited
to, imposing penalties pursuant to Section 42993.1 and posting an
immediate notice on the department's Internet Web site pursuant to
Section 42993 that the manufacturer  or renovator  is no
longer in compliance with this chapter.

      Article 9.  Antitrust Immunity


   42994.  (a) Except as provided in subdivision (c), an action
specified in subdivision (b) that is taken by a mattress recycling
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 mattress recycling  organization or a
manufacturer   organization, manufacturer, or renovator
 :
   (1) The creation, implementation, or management of a plan approved
by the department pursuant to Article 2 (commencing with Section
42987) and the types or quantities of used mattresses recycled or
otherwise managed pursuant to a plan, as described in Article 2
(commencing with Section 42987).
   (2) The cost and structure of an approved plan.
   (3) The establishment, administration,  collection,  or
disbursement of the charges associated with funding the
implementation of this chapter.
   (c) Subdivision (a) shall 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 or charges 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.