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AB-1158 Carpet recycling.(2017-2018)

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Date Published: 04/17/2017 09:00 PM
AB1158:v98#DOCUMENT

Amended  IN  Assembly  April 17, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 1158


Introduced by Assembly Member Chu
(Coauthor: Assembly Member Mark Stone)

February 17, 2017


An act to amend Section 42972 of, and to add Section 42972.1 to, the Public Resources Code, relating to recycling.


LEGISLATIVE COUNSEL'S DIGEST


AB 1158, as amended, Chu. Carpet recycling.
Existing law requires a manufacturer of carpets sold in this state to submit, either individually or through a carpet stewardship organization, a carpet stewardship plan that meets specified requirements to the Department of Resources Recycling and Recovery.
This bill would create an advisory committee in the department that would be required to make recommendations to manufacturers and carpet stewardship organizations on carpet stewardship plans. The bill would require the Director of Resources Recycling and Recovery, the Speaker of the Assembly, and the Senate Rules Committee to appoint members to the advisory committee, as specified. The bill would require a carpet stewardship plan to include a process by which the manufacturer or carpet stewardship organization receives and subsequently responds, in writing, to plan recommendations from the advisory committee. The bill would require the manufacturer or carpet stewardship organization to submit to the director, in writing, its reasons for rejecting any specific recommendations made by the advisory committee. The bill would prohibit requiring a manufacturer or carpet stewardship organization to pay any costs associated with the creation or operations of the advisory committee.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 42972 of the Public Resources Code is amended to read:

42972.
 (a) A manufacturer of carpets sold in this state shall, individually or through a carpet stewardship organization, submit a carpet stewardship plan to the department that will do all of the following:
(1) Achieve the purposes of this chapter, as described in Section 42970, and meet the requirements of Section 42975.
(2) Include goals that, to the extent feasible based on available technology and information, increase the recycling of postconsumer carpet, increase the diversion of postconsumer carpets from landfills, increase the recyclability of carpets, and incentivize the market growth of secondary products made from postconsumer carpet. The goals established in the plan shall, at a minimum, be equal to the goals established in the CARE MOU, if it has been adopted at the time the plan is submitted to the department.
(3) Describe proposed measures that will enable the management of postconsumer carpet in a manner consistent with the state’s solid waste management hierarchy, including, but not limited to, source reduction, source separation and processing to segregate and recover recyclable materials, and environmentally safe management of materials that cannot feasibly be recycled.
(4) Include a funding mechanism, consistent with subdivision (c), that provides sufficient funding to carry out the plan, including the administrative, operational, and capital costs of the plan, payment of fees pursuant to Section 42977, and incentive payments that will advance the purposes of this chapter.
(5) Include education and outreach efforts to consumers, commercial building owners, carpet installation contractors, and retailers to promote their participation in achieving the purposes of the carpet stewardship plan as described in paragraph (1). These education and outreach materials may include, but are not limited to, any of the following:
(A) Signage that is prominently displayed and easily visible to the consumer.
(B) Written materials and templates of materials for reproduction by retailers to be provided to carpet installation contractors and consumers at the time of purchase or delivery or both.
(C) Promotional materials or activities, or both, that explain the purpose of carpet stewardship and the means by which it is being carried out.
(6) Include a process by which the financial activities of the organization or individual manufacturer that are related to implementation of the plan will be subject to an independent audit, which may be reviewed by the department.
(7) Include a process by which the manufacturer or carpet stewardship organization receives and subsequently responds, in writing, to plan recommendations from the advisory committee created pursuant to Section 42972.1. The manufacturer or carpet stewardship organization shall submit to the director, in writing, its reasons for rejecting any specific recommendations made by the advisory committee.
(b) The plan prepared pursuant to this section shall be designed to accept and manage all suitable postconsumer carpet, regardless of polymer type or primary materials of construction.
(c) (1) The funding mechanism required pursuant to paragraph (4) of subdivision (a) shall establish and provide for, on and after January 1, 2013, a carpet stewardship assessment per unit of carpet sold in the state in an amount that cumulatively will adequately fund the plan and be consistent with the purposes of the chapter. The assessment shall be remitted to the carpet stewardship organization on a quarterly basis and the carpet stewardship organization may expend the assessment only to carry out the plan.
(2) The amount of the assessment and the anticipated revenues from the assessment shall be specified in the plan and shall be approved by the department as part of the plan. The amount of the assessment shall be sufficient to meet, but not exceed, the anticipated cost of carrying out the plan. The amount of the assessment shall not create an unfair advantage in the marketplace.
(3) The assessment established pursuant to this subdivision and Section 42972.5 is exempt from the taxes imposed by Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code and shall meet both of the following requirements:
(A) The assessment shall be added by a manufacturer to the purchase price of all carpet sold by manufacturers to a California retailer or wholesaler or otherwise sold for use in the state. The assessment shall be clearly visible on invoices or functionally equivalent billing documents as a separate line item and shall be accompanied by a brief description of the assessment or a label approved by the department.
(B) Each retailer and wholesaler shall add the assessment to the purchase price of all carpet sold in the state. The assessment shall be clearly visible on invoices or functionally equivalent billing documents as a separate line item and shall be accompanied by a brief description of the assessment or a label approved by the department.
(d) A carpet stewardship organization that submits a plan pursuant to this section shall consult with retailers and wholesalers in the development of the plan, in order to minimize the impacts of the plan on retailers and wholesalers.
(e) A carpet stewardship organization shall notify the department within 30 days after instituting a significant or material change to an approved carpet stewardship plan.

SEC. 2.

 Section 42972.1 is added to the Health and Safety Public Resources Code, to read:

42972.1.
 There is hereby created in the department (a) The Director of Resources Recycling and Recovery shall appoint members to an advisory committee, which shall make recommendations on carpet stewardship plans submitted to the department pursuant to Section 42971. A The Speaker of the Assembly and the Senate Rules Committee shall each appoint one additional member to the advisory committee. The advisory committee may be composed of, among others, individuals in the environmental community, the solid waste industry, and local government, public or private representatives involved in the collection, processing, and recycling of carpet, and other interested parties as determined by the Director of Resources Recycling and Recovery.
(b) A manufacturer or carpet stewardship organization shall not be required to pay any costs associated with the creation or operations of the advisory committee. committee created pursuant to subdivision (a).