Public Resources Code Sections 42985-42994

ARTICLE 1. Definitions [42986]
ARTICLE 2. Mattress Recycling Plan [42987 - 42987.5]
ARTICLE 3. Budget [42988 - 42988.3]
ARTICLE 4. Mattress Recycling Charge [42989 - 42989.4]
ARTICLE 5. Records, Audits, and Annual Report [42990 - 42990.2]
ARTICLE 6. Mattress Recycling and Renovating [42991]
ARTICLE 7. Retailer Used Mattress Take-back [42992]
ARTICLE 8. Enforcement [42993 - 42993.3]
ARTICLE 9. Emergency Regulatory Authority [42993.4]
ARTICLE 10. Antitrust Immunity [42994] 

42985.

(a) The Legislature finds and declares both 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 recover and recycle used mattresses generated in this state.
(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 and that this chapter will not undermine existing used mattress recycling, resale, refurbishing, and reuse operations that are in compliance with state and federal law.
(Added by Stats. 2013, Ch. 388, Sec. 1. (SB 254) Effective January 1, 2014.)

42985.1.

This chapter shall be known, and may be cited, as the Used Mattress Recovery and Recycling Act.
(Added by Stats. 2013, Ch. 388, Sec. 1. (SB 254) Effective January 1, 2014.)

ARTICLE 1. Definitions [42986] 

42986.
For purposes of this chapter, the following definitions shall apply:
(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) “Good faith effort” means all reasonable and economically practical efforts by a mattress recycling organization to implement the components identified in its approved plan consistent with its annual budget.
(e) “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.
(f) (1) “Manufacturer” means any of the following:
(A) The person who manufactures a mattress and who sells, offers for sale, or distributes a mattress in the state.
(B) If there is no person who is a manufacturer of a mattress for purposes of subparagraph (A), the manufacturer is the person who imports the mattress into the state for sale or distribution.
(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.
(g) (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, a renovated mattress or renovated foundation, and a futon mattress.
(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, sleeper sofa, or folding cot.
(h) “Mattress recycling organization” or “organization” means an organization exempt from taxation under Section 501(c)(3) of the Internal Revenue Code of 1986, that is established by a qualified industry association, composed of manufacturers, renovators, and retailers, and certified pursuant to Section 42987, to develop, implement, and administer the mattress recycling program established pursuant to this chapter.
(i) “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.
(j) “Program” or “used mattress recycling program” means the program implemented by the mattress recycling organization pursuant to a plan approved by the department.
(k) “Qualified industry association” means the International Sleep Products Association or 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) “Recycle” or “recycling” has the same meaning as defined in Section 40180.
(m) “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.
(n) “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.
(o) (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.
(p) “Renovator” means a person who renovates used mattresses for the purpose of sale, or offering for sale, in this state.
(q) “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.
(r) “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.
(s) “Solid waste facility” means, for purposes of this chapter, a solid waste facility as defined in Section 40194 that accepts, under its normal operating conditions, used mattresses for collection, storing, and handling, whether for recycling or disposal.
(t) (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.
(u) “Used mattress” means a mattress that has been abandoned or discarded by a consumer.
(Amended by Stats. 2019, Ch. 673, Sec. 1. (AB 187) Effective January 1, 2020.)

ARTICLE 2. Mattress Recycling Plan [42987 - 42987.5]

42987.
(a) (1) 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, 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.
(3) (A) Prior to certification by the department, the department’s director shall appoint an advisory committee to be part of the mattress recycling organization.
(B) The advisory committee may be composed of members of the environmental community, solid waste industry, and local government public and private representatives involved in the collection, processing, and recycling of used mattresses, and other interested parties.
(C) (i) The mattress recycling organization shall consult the advisory committee at least once during the development and implementation of the plan required pursuant to Section 42987.1, and annually prior to the submission of both an annual report required pursuant to Section 42990.1 and an annual budget required pursuant to Section 42988.
(ii) For purposes of being consulted pursuant to this subparagraph, the advisory committee shall prepare specific written recommendations at a publicly scheduled and noticed meeting of the advisory committee that are approved by a majority of the advisory committee’s members pursuant to a rollcall vote and included in the official approved minutes of the meeting. The organization shall consider and respond to those written recommendations in writing.
(b) (1) Each manufacturer, renovator, distributor, 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) 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) A manufacturer, renovator, or distributor 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, renovator, or distributor is in compliance with this chapter.
(Amended by Stats. 2019, Ch. 673, Sec. 2. (AB 187) Effective January 1, 2020.)

42987.1.
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) Program objectives consistent with the state’s solid waste management hierarchy.
(b) The names of manufacturers, renovators, distributors, and brands covered under the plan.
(c) A consultation process with affected 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) A program performance measurement that shall collect program data for the purpose of the annual report. The information shall include both of the following:
(1) A methodology for estimating the amount of mattresses sold in the state and 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 and renovators of the mattress recycling organization.
(i) A description of methods used to coordinate activities with existing used mattress collecting and recycling programs, 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 avoiding unnecessary duplication of effort and expense.
(j) Entering into contracts or agreements, which may include contracts and agreements with existing nonprofit or for-profit recyclers, that are necessary and proper for the mattress recycling organization to carry out these duties consistent with the terms of this chapter.
(k) Establishing a financial incentive to encourage parties to collect for recycling used mattresses discarded or illegally dumped in the state.
(l) Ensuring, to the maximum extent possible, that urban and rural local governments and participating permitted solid waste facilities and authorized solid waste operations that accept mattresses are provided with a mechanism for the recovery of illegally disposed used mattresses that is funded at no additional cost to the local government, solid waste facility, or solid waste operation.
(m) Developing strategies, in consultation with the California Environmental Protection Agency’s Environmental Justice Task Force and other relevant parties, for collecting used mattresses for recycling in areas and communities that face unique challenges associated with proper waste management such as poverty, language barriers, and illegal mattress dumping.
(n) Providing outreach efforts and education to consumers, manufacturers, and retailers, for the purpose of promoting the recycling of used mattresses and options available to consumers for the free dropoff or collection of used mattresses.
(o) A provision that allows an individual to drop off, at no charge, a mattress at a recycler, renovator, mattress recycling center, permitted solid waste facility, authorized solid waste operation, or other municipal facility that accepts mattresses consistent with state solid waste regulations, and that provides for the payment to a municipal or solid waste facility or operation that accepts mattresses an amount determined by the municipal or solid waste facility or operation and the mattress recycling organization to be reasonable for accepting, collecting, storing, transporting, and handling used mattresses.
(p) Ensuring that the impact of Article XIII C of the California Constitution is addressed for local governments participating in the program.
(q) A report from the advisory committee, established pursuant to paragraph (3) of subdivision (a) of Section 42987, that includes a summary of the consultative process between the advisory committee and the mattress recycling organization during the development of, and any updates to, the plan, as well as any other information deemed pertinent by the advisory committee to maximizing the recovery and recycling of used mattresses in the state.
(r) A contingency plan in the event the department decertifies the mattress recycling organization, or a mattress recycling plan expires, is disapproved, or is revoked. The contingency plan shall describe how the plan objectives can be carried out, in accordance with subdivision (c) of Section 42989.3, in the absence of a plan, either by the mattress recycling organization, or by the department through some entity such as an escrow company.
(s) Other information requested by the department that is reasonably related to compliance with the recycling plan and that the organization can reasonably compile.
(Amended by Stats. 2019, Ch. 673, Sec. 3. (AB 187) Effective January 1, 2020.)

42987.1.5.
(a) During calendar year 2020, and at least once every five years thereafter, the mattress recycling organization shall review the plan and determine whether amendments to the plan are necessary.
(b) If the organization determines amendments to the plan are necessary, it shall amend the plan, subject to the approval process in Section 42987.3.
(c) If the organization determines that no amendments to the plan are necessary, it shall send a letter to the department explaining that the organization has reviewed the plan and determined no revisions are needed. The department may disapprove the organization’s determination within 30 days of that determination if it concludes that the organization cannot implement the objectives of this chapter without amending the plan.
(Added by Stats. 2019, Ch. 673, Sec. 4. (AB 187) Effective January 1, 2020.)

42987.2.
In preparing the plan pursuant to Section 42987.1 and any updates to the plan pursuant to Section 42987.1.5, the mattress recycling organization shall consult with interested stakeholders, which shall include, but not be limited to, local government representatives, recyclers, and solid waste industry representatives.
(Amended by Stats. 2019, Ch. 673, Sec. 5. (AB 187) Effective January 1, 2020.)

42987.3.
(a) The department shall review the plan for 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 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 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 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.
(Added by Stats. 2013, Ch. 388, Sec. 1. (SB 254) Effective January 1, 2014.)

42987.4.
Within 90 days after approval or conditional approval by the department of the plan, the mattress recycling organization shall implement the approved plan.
(Added by Stats. 2013, Ch. 388, Sec. 1. (SB 254) Effective January 1, 2014.)

42987.5.
(a) (1) On or before January 1, 2018, 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:
(A) The state mattress recycling baseline amount.
(B) The state mattress recycling goals.
(C) On or before July 1, 2020, metrics and goals for increasing consumer convenience for used mattress dropoff, disposal, and recycling in a way that, notwithstanding this subdivision, applies to the entire state regardless of socioeconomic conditions.
(D) On or before January 1, 2021, convenience goals to be effective January 1, 2022, specific to each of the following:
(i) (I) Consumer access to the program, including at least one permanent mattress dropoff location in each county. The requirement to have at least one permanent mattress dropoff location in each county shall not apply to a county with a population of less than 2,000 people as long as the organization continues to provide at least two collection events in the county each year. The department may require additional dropoff locations to ensure that consumers have sufficient convenient access to dropoff locations.
(II) The mattress recycling organization shall provide no-cost freight services to any mattress retailer, health care facility, educational facility, military base, or lodging establishment that has at least 100 used mattresses to pick up at one time. 
(ii) Retailer access to the program.
(2) When calculating the state mattress recycling goals, the department shall include renovated mattresses.
(b) Beginning July 1, 2019, and annually thereafter, the annual report required pursuant to Section 42990.1 shall demonstrate the mattress recycling organization’s good faith effort to comply with the goals established pursuant to this section.
(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 these goals.
(Amended by Stats. 2019, Ch. 673, Sec. 6. (AB 187) Effective January 1, 2020.)

ARTICLE 3. Budget [42988 - 42988.3]

42988.
On or before July 1 of each year, 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 budgeted costs and to operate the mattress recycling program in a prudent and responsible manner.
(c) The amount of the mattress recycling charge and itemization of costs that each charge covers.
(d) Additional information that the department deems necessary to determine whether the budget meets the requirements of this chapter.
(Amended by Stats. 2019, Ch. 673, Sec. 7. (AB 187) Effective January 1, 2020.)

42988.1.
(a) Within 90 days of submittal, the department shall conditionally approve, approve, or disapprove a final used mattress recycling program budget. If the department fails to act or does not disapprove a final used mattress recycling program budget, the budget shall be deemed approved.
(b) (1) If the department conditionally approves or 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 conditional approval or disapproval.
(2) The department, within 60 days from the date the mattress recycling organization resubmits a revised budget, shall approve or disapprove a final used mattress recycling program budget. If the department fails to act or does not disapprove a final program budget within those 60 days, the budget shall be deemed approved.
(c) If the department disapproves a revised budget submitted pursuant to paragraph (1) of subdivision (b), the organization may submit only one additional revised budget, subject to review in accordance with paragraph (2) of subdivision (b).
(d) Until a budget has been approved or deemed approved pursuant to this section, the mattress recycling organization shall make expenditures consistent with the most recently department-approved budget until a new budget has been approved or deemed approved by the department.
(Amended by Stats. 2019, Ch. 673, Sec. 8. (AB 187) Effective January 1, 2020.)

42988.2.
(a) The department shall notify the mattress recycling organization of the department’s costs that are directly related to implementing and enforcing this chapter relating to the mattress recycling organization’s activities. This may include the direct costs associated with regulatory development prior to submittal of the plan required pursuant to Section 42987.1.
(b) On or before July 1, 2016, and once every three months thereafter, and within the fiscal year ending June 30, the mattress recycling organization shall reimburse the department for costs the department incurs pursuant to subdivision (a). The reimbursement shall not exceed the department’s direct costs to implement and enforce this chapter.
(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 Fund, which is hereby established in the State Treasury. Upon appropriation by the Legislature, moneys in the fund shall be expended by the department to administer and enforce this chapter, as well as reimburse any outstanding loans made from other funds used to finance startup costs of the department’s activities pursuant to this chapter. The funds collected pursuant to this section shall not be expended for any other purpose.
(Added by Stats. 2013, Ch. 388, Sec. 1. (SB 254) Effective January 1, 2014.)

42988.3.
(a) On and after January 1, 2021, the mattress recycling organization shall identify strategies in its annual proposed budget to comply, commencing January 1, 2027, with the reserve requirements specified in this section.
(b) Commencing January 1, 2027, the mattress recycling organization shall not maintain total reserves exceeding 60 percent of its annual operating expenses, consistent with the requirements of the Financial Accounting Standards Board’s Accounting Standards Update 2016-14, Not-for-Profit Entities (Topic 958), and any future updates to that standard.
(c) The department, in approving the annual budget, may authorize the total reserves to be increased to up to 75 percent of the organization’s annual operating expenses if the department determines the increase is necessary to implement the requirements of this chapter.
(d) If the mattress recycling organization’s reserves exceed the amount specified in subdivision (b) or (c), the department may require the organization to increase spending on implementing the requirements of this chapter in order to reduce the excess amount of reserves.
(Added by Stats. 2019, Ch. 673, Sec. 9. (AB 187) Effective January 1, 2020.)

ARTICLE 4. Mattress Recycling Charge [42989 - 42989.4]

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) 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.
(2) If the mattress recycling organization provides notice that it intends to reduce the charge, the organization shall provide the department with information about how it will effectively implement the program at the reduced fee. The department may disapprove that change within 60 days of the notice if the department finds that the reduction makes the organization unable to effectively implement the requirements or objectives of this chapter. 
(d) The charge shall be included in the annual program budget for approval by the department.
(e) It is the intent of the Legislature to ensure the proceeds of the mattress recycling charge are used to prioritize the use of in-state processing facilities over the use of out-of-state processing facilities to the extent economically practical.
(Amended by Stats. 2019, Ch. 673, Sec. 10. (AB 187) Effective January 1, 2020.)

42989.1.
(a) Commencing 90 days after the date the department approves the budget pursuant to Section 42988.1, 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. The charge shall be clearly visible on the invoice, receipt, or functionally equivalent document by the seller to the consumer as a separate line item.
(b) The charges collected pursuant to subdivision (a) shall be remitted to the mattress recycling organization in accordance with procedures established by the mattress recycling organization.
(Amended by Stats. 2019, Ch. 673, Sec. 11. (AB 187) Effective January 1, 2020.)

42989.2.
(a) The mattress recycling organization may conduct an audit of the following:
(1) 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.
(2) Those parties that are exempt from remitting the charge.
(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.
(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.
(Added by Stats. 2013, Ch. 388, Sec. 1. (SB 254) Effective January 1, 2014.)

42989.2.1.
(a) Mattresses manufactured by the Prison Industry Authority and purchased by the state or its agencies are exempt from collecting and remitting the mattress recycling charge and from any end-of-life financial incentive established by the mattress recycling organization for used mattresses pursuant to subdivision (k) of Section 42987.1. Mattresses sold subject to this exemption shall be permanently marked or labeled to clearly identify them as having been manufactured by the Prison Industry Authority.
(b) The Prison Industry Authority shall, upon the request of the department or mattress recycling organization, report how many mattresses it manufactured and sold in the previous fiscal year and the customers that purchased those mattresses. To the extent reasonably possible, the Prison Industry Authority, upon request by the department or the mattress recycling organization, shall report how its customers are disposing of their used mattresses and estimate what percentage are being landfilled and recycled or renovated.
(c) The mattress recycling organization’s obligation under this chapter to recycle mattresses manufactured by the Prison Industry Authority is limited to any services for which the authority has specifically contracted with the mattress recycling organization for that purpose. The mattress recycling organization may refuse to recycle or pay financial incentives on any Prison Industry Authority-manufactured mattress that is exempted from collecting and remitting the mattress recycling fee.
(d) Mattresses exempt pursuant to subdivision (a) and all discards of mattresses previously manufactured by the Prison Industry Authority shall be excluded from the goal-setting analysis required by Section 42987.5.
(Added by Stats. 2013, Ch. 388, Sec. 1. (SB 254) Effective January 1, 2014.)

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.
(c) (1) In the event that the department decertifies the mattress recycling organization, the department shall establish a process and schedule that will, to the maximum extent possible, allow for an orderly transition of responsibility from the decertified organization to a successor organization. As part of that transition process, the department shall certify a successor mattress recycling organization pursuant to Section 42987.
(2) If requested by the department, the decertified organization may continue to administer the program, including, but not limited to, its receipt of charges remitted pursuant to Section 42989.1, until a successor organization certified by the department assumes all financial, statutory, contractual, and other legal responsibilities for implementing the successor organization’s obligations under this chapter. The department shall not require the decertified organization to provide transitional services for more than 12 months unless the decertified organization consents to doing so.
(3) Once a successor organization assumes the responsibilities described in paragraph (2), the decertified organization shall within 30 days transfer to the successor organization all assets and liabilities, and all financial, statutory, contractual, and other legal rights and responsibilities, including, but not limited to, the receipt of the mattress recycling charge remitted pursuant to Section 42989.1. Before any financial liability is transferred to the successor organization, the decertified organization shall first obtain approval from the department for each item of liability. Transferred liabilities may include, but shall not be limited to, notes payable, accounts payable, salaries payable, wages payable, interest payable, other accrued expenses payable, income taxes payable, customer deposits, vendor contracts, and any other contractual liabilities. Transferred liabilities shall not include any civil or criminal liabilities or fines or penalties issued by the state.
(4) If the mattress recycling organization is no longer able or willing to serve as the mattress recycling organization, it shall notify the department in writing and the department shall decertify that mattress recycling organization. The department may also decertify the mattress recycling organization if it finds that the organization has intentionally violated one or more provisions of this chapter in a manner that materially impacted the organization’s ability to substantially meet its obligations under the plan approved by the department or if the department has revoked the mattress recycling organization’s plan pursuant to Section 42993.2.
(5) If the department decides not to request the decertified organization to provide the transitional services described in paragraph (2), the department may direct, in writing, the decertified organization to set up a trust fund or escrow account and to transfer all unexpended funds into that account within 30 days. The trust fund or escrow account shall be subject to reasonable requirements that the department may set until the department certifies a successor organization. The trustee or escrow agent shall do both of the following:
(A) Accept mattress recycling charges directly from manufacturers, renovators, retailers, and distributors into the trust fund or escrow account that would have been made to the mattress recycling organization prior to the mattress recycling organization’s decertification.
(B) Make payments from the trust fund or escrow account as the department shall direct, in writing, to implement the most recently approved plan.
(6) If a new mattress recycling plan has not been approved by the department within one year after decertification, the department may modify the previously approved plan, as it deems necessary, and continue to direct payments from the trust fund or escrow account in accordance with paragraph (5) to implement the modified plan.
(7) A trustee or escrow agent in possession of mattress recycling charge revenue shall, as directed by the department, transfer those funds to a successor mattress recycling organization with an approved plan.
(8) If the department revokes the plan pursuant to Section 42993.2, each manufacturer, renovator, retailer, or distributor that sells a mattress to a consumer or to an ultimate end user of the mattress in the state may continue to do so until the effective date of a successor plan approved by the department without being subject to penalties pursuant to Section 42993.1, provided that the manufacturer, renovator, retailer, or distributor continues to meet the applicable requirements of this chapter, including, but not limited to, Sections 42989.1 and 42992. 
(9) For purposes of this subdivision, “unexpended funds” means mattress recycling charge revenue in the mattress recycling organization’s accounts that the organization is not already obligated to pay pursuant to a contract, claim, or similar mechanism.
(Amended by Stats. 2019, Ch. 673, Sec. 12. (AB 187) Effective January 1, 2020.)

42989.4.
The mattress recycling organization shall not expend revenue from the mattress recycling charge to pay a civil penalty imposed on the organization pursuant to Section 42993.1.
(Added by Stats. 2019, Ch. 673, Sec. 13. (AB 187) Effective January 1, 2020.)

ARTICLE 5. Records, Audits, and Annual Report [42990 - 42990.2]

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 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 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. The mattress recycling organization may obtain copies of the audit upon request. The department shall not disclose any confidential proprietary information in the audit.
(Amended by Stats. 2014, Ch. 371, Sec. 5. (SB 1274) Effective January 1, 2015.)

42990.1.
On or before July 1 of each year, the mattress recycling organization shall submit to the department and the advisory committee and make publicly available on its internet website 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.
(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 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 as well as other mechanisms, including advertising of the program, to increase consumer awareness.
(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) A report by the advisory committee, established pursuant to paragraph (3) of subdivision (a) of Section 42987 that includes a summary of the consultative process between the advisory committee and the mattress recycling organization relating to the ongoing implementation of the plan, as well as any other information deemed pertinent by the advisory committee to maximizing the recovery and recycling of used mattresses in the state.
(l) For reports submitted on and after April 1, 2020, a demonstration of good faith effort with the state mattress recycling goals established pursuant to Section 42987.5.
(m) For reports submitted on and after July 1, 2021, all of the following:
(1) A report on activities, which the mattress recycling organization shall undertake, to meet consumer and retailer accessibility goals, and on the progress the organization has made in meeting those goals, and on the organization’s planned efforts to meet those goals. Factors to be considered may include, but are not limited to, availability of retailer take-back options, proximity to recyclers and no-cost collection points, availability of no-cost local curbside collections services, and proximity to collection events.
(2) A report on activities, which the mattress recycling organization shall undertake, to prioritize, to the extent economically practical, the use of in-state processing facilities over out-of-state processing facilities. If the mattress recycling organization decides to use out-of-state processing facilities, the organization shall provide an explanation of that decision. 
(3) A report on research activities, which the organization shall undertake, to improve used mattress collection, dismantling, recycling operations, source reduction and green product design, and the response to the problem of illegal dumping and a report on the progress made as a result of the research activities. 
(4) A report on pilot programs, which the organization shall undertake, to test new processes, methods, or equipment on a local, regional, or otherwise limited basis, such as those designed to clean up illegally dumped mattresses, gather data and identify strategies to reduce the number of illegally dumped mattresses, in partnership with the cities and counties identified by the mattress recycling organization as having areas with the highest rate of illegal dumping in the state. Pilot program descriptions shall include a mechanism to measure success, such as establishing a baseline and goals when possible and report on the progress made in undertaking the pilot programs. 
(5) If the mattress recycling organization determines during a particular year that any of the activities undertaken to implement paragraph (3) or (4) were unsuccessful, the organization shall identify the problems with the current activities, and report on the new activities undertaken and progress made, in the following year’s annual report. 
(6) A hard copy of, or an electronic reference to, each research study and report completed by the organization during the period covered by the annual report and a brief explanation of how the organization anticipates the research may benefit the program. The organization shall make these studies and reports publicly available free of charge. If the study or report contains trade secret or confidential information protected by law, the organization shall only be required to provide a description of the research and its relevance to the program that omits any of the trade secret or confidential information.
(n) (1) Any modifications or revisions to the mattress recycling plan including those required pursuant to Sections 42987.1 and 42987.1.5, necessary to achieve the goals established pursuant to Section 42987.5.
(2) Any proposed modifications or revisions to the mattress recycling plan are subject to the department review process prescribed in Section 42987.3.
(3) Within 90 days after approval or conditional approval by the department, the mattress recycling organization shall implement the revised plan.
(o) For reports submitted after January 1, 2020, the progress toward attainment of the goals included in the organization’s mattress recycling plan submitted pursuant to Section 42987.1.
(p) Other information relevant to compliance with the plan.
(Amended by Stats. 2019, Ch. 673, Sec. 14. (AB 187) Effective January 1, 2020.)

42990.2.
(a) No later than 90 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.
(b) Any proposed activities in the report shall be evaluated by the department for progress and shall be taken into consideration when approving or disapproving a report. 
(Amended by Stats. 2019, Ch. 673, Sec. 15. (AB 187) Effective January 1, 2020.)

ARTICLE 6. Mattress Recycling and Renovating [42991]

42991.
(a) On or before May 1, 2017, and annually thereafter, a person that is engaged in business as a recycler or renovator shall submit to the department and to the mattress recycling organization a report 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 reasonably compiled.
(b) For purposes of determining the used mattress recycling rate, on or before May 1, 2017, and annually thereafter, an operator of a solid waste facility or operation shall report to the department and to the mattress recycling organization, in a form and manner determined by the department, regarding the number of used mattresses received by that facility or operation that were 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. The department shall not disclose any confidential proprietary information.
(Amended by Stats. 2014, Ch. 371, Sec. 6. (SB 1274) Effective January 1, 2015.)

ARTICLE 7. Retailer Used Mattress Take-back [42992]

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 pickup 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) 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.
(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.
(f) On and after January 1, 2021, if a new mattress is delivered to a consumer by common carrier, including, but not limited to, as a result of an online purchase, the retailer of that mattress shall offer to arrange to pick up a used mattress for recycling from that consumer within 30 days of the delivery of the new mattress, subject to subdivision (d).
(Amended by Stats. 2019, Ch. 673, Sec. 16. (AB 187) Effective January 1, 2020.)

ARTICLE 8. Enforcement [42993 - 42993.3]

42993.
(a) On or before March 1 of each year, the department shall post on its internet website a list of manufacturers, renovators, and distributors that are in compliance with this chapter.
(b) A manufacturer, renovator, or distributor that is not listed on the department’s internet website 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, renovator, or distributor is in compliance. The manufacturer, renovator, or distributor 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 website 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 120 calendar days before or after that date, the manufacturer or renovator was listed as compliant on the department’s internet website.
(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, renovator, or distributor is not in compliance with this chapter, the department shall remove the manufacturer, renovator, or distributor from the department’s internet website pursuant to this section and the manufacturer, renovator, or distributor shall not sell a mattress in the state until the department determines the manufacturer, renovator, or distributor is in compliance with this chapter.
(Amended by Stats. 2019, Ch. 673, Sec. 17. (AB 187) Effective January 1, 2020.)

42993.1.
(a) The department may impose an administrative civil penalty on any manufacturer, mattress recycling organization, distributor, 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 Used Mattress Recycling Fund. Upon appropriation by the Legislature, moneys deposited into the Mattress Recovery and Recycling Penalty Account shall be expended by the department to administer and enforce this chapter.
(Amended by Stats. 2014, Ch. 371, Sec. 7. (SB 1274) Effective January 1, 2015.)

42993.2.
Upon a written finding that a manufacturer, mattress recycling organization, renovator, distributor, recycler, 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, distributor, recycler, 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, renovator, or distributor from the department’s internet website and list of compliant manufacturers, renovators, and distributors, as specified in Section 42993.
(c) Require additional reporting requirements relating to compliance with the material requirement identified by the department.
(Amended by Stats. 2019, Ch. 673, Sec. 18. (AB 187) Effective January 1, 2020.)

42993.3.
A manufacturer, renovator, distributor, recycler, 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, renovator, distributor, recycler, retailer, or mattress recycling organization if the manufacturer, renovator, distributor, recycler, 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 website pursuant to Section 42993 that the manufacturer, renovator, or distributor is no longer in compliance with this chapter.
(Amended by Stats. 2019, Ch. 673, Sec. 19. (AB 187) Effective January 1, 2020.)

ARTICLE 9. Emergency Regulatory Authority [42993.4]

42993.4.
(a) (1) The department may adopt emergency regulations to implement this chapter with regard to establishing a process for the submission of the used mattress recovery and recycling plan to the department, and the approval of that plan, pursuant to Section 42987.3 and for the submission of the proposed used mattress recycling program budget to the department, and the approval of the budget by the department, pursuant to Sections 42988 and 42988.1.
(2) The department shall not adopt emergency regulations pursuant to this section with regard to any other provision of this chapter.
(3) This section does not limit the department’s authority to adopt regulations pursuant to Section 40502.
(b) The emergency regulations adopted pursuant to this section shall be adopted in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, and for the purposes of that chapter, including Section 11349.6 of the Government Code, the adoption of these regulations is an emergency and shall be considered by the Office of Administrative Law as necessary for the immediate preservation of the public peace, health, safety, and general welfare. Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, any emergency regulations adopted by the department pursuant to this section shall be filed with the Office of Administrative Law.
(Amended by Stats. 2014, Ch. 371, Sec. 10. (SB 1274) Effective January 1, 2015.)

ARTICLE 10. Antitrust Immunity [42994]

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, 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.
(Added by Stats. 2013, Ch. 388, Sec. 1. (SB 254) Effective January 1, 2014.)

 

Mattresses Law Home Page