Code Section Group

Public Resources Code - PRC

DIVISION 30. WASTE MANAGEMENT [40000 - 49620]

  ( Division 30 added by Stats. 1989, Ch. 1096, Sec. 2. )

PART 3. STATE PROGRAMS [42000 - 42999]

  ( Part 3 added by Stats. 1989, Ch. 1096, Sec. 2. )

CHAPTER 21. Used Mattress Recovery and Recycling Act [42985 - 42994]

  ( Chapter 21 added by Stats. 2013, Ch. 388, Sec. 1. )

ARTICLE 3. Budget [42988 - 42988.3]
  ( Article 3 added by Stats. 2013, Ch. 388, Sec. 1. )

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.)

PRCPublic Resources Code - PRC3