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 4. Mattress Recycling Charge [42989 - 42989.4]
  ( Article 4 added by Stats. 2013, Ch. 388, Sec. 1. )

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.)

PRCPublic Resources Code - PRC4.