SB 707: Responsible Textile Recovery Act of 2024.
- Session Year: 2023-2024
- House: Senate
- Latest Version Date: 2024-09-28
Current Status:
Passed
(2024-09-28: Chaptered by Secretary of State. Chapter 864, Statutes of 2024.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Enacted
What does this bill do?
The bill creates the Responsible Textile Recovery Act, which requires companies that make, import, or sell apparel and certain household textiles sold in California to join a nonprofit Producer Responsibility Organization (PRO) that runs a statewide system for free collection, repair, reuse, sorting, and recycling of those products. The PRO must file and update an approved plan, charge eco‑modulated fees to fund operations, keep audited records and annual reports for the state agency, and the state can enforce the rules (including fines and removing noncompliant brands from a public list); large online marketplaces must also report big third‑party sellers.
The summary is provided by generative AI which can make mistakes. For original language, please view the details in the table below.
The California Integrated Waste Management Act of 1989, administered by the Department of Resources Recycling and Recovery, generally regulates the disposal, management, and recycling of solid waste. The act establishes stewardship programs for various products, including, among others, carpet, mattresses, and pharmaceutical and sharps waste.
This bill would enact a stewardship program known as the Responsible Textile Recovery Act of 2024, which would require a producer of apparel, as defined, or textile articles, as defined, to form and join a producer responsibility organization or PRO. The bill would require the PRO to be approved by the department pursuant to the requirements of the bill, as provided. The bill would require the department to adopt regulations to implement the program no earlier than July 1, 2028. The bill would require the PRO to submit to the department, for approval or disapproval, a complete plan for the collection, transportation, repair, sorting, and recycling, and the safe and proper management, of apparel and textile articles in the state. Upon approval of a plan, or commencing July 1, 2030, whichever is earlier, the bill would make a producer subject to specified civil penalties, unless the producer is a participant of a PRO and all apparel and textiles are accounted for in the plan. The bill would require the PRO to review the plan at least every 5 years after approval. The bill would also require a PRO to submit an annual report to the department, as provided. The bill would require all reports and records provided to the department to be provided under penalty of perjury. By expanding the scope of the crime of perjury, the bill would impose a state-mandated local program. The bill would restrict public access to certain information collected for the purpose of administering the program.
This bill would require the department to post on its internet website a list of producers that are in compliance with the requirements of the program. The bill would require PROs to pay fees to the department, not to exceed the departments actual and reasonable regulatory costs to implement and enforce the act. The bill would establish the Textile Stewardship Recovery Fund in the State Treasury for the deposit of all moneys received from PROs and would make the moneys in the fund available to the department, upon appropriation by the Legislature, for purposes of the program. The bill would also authorize the department to impose administrative civil penalties for a violation of the programs requirements, not to exceed $10,000 per day, or not to exceed $50,000 per day for an intentional or knowing violation, as specified. The bill would create the Textile Stewardship Recovery Penalty Account in the fund for the deposit of penalties, which would be available for expenditure upon appropriation by the Legislature, as specified. The bill would also require an online marketplace, as defined, to notify the department and the PRO of all third-party sellers with sales of apparel or textile articles over $1,000,000 sold on their online marketplace in the preceding year and provide all required information, as specified, and to provide those sellers with information regarding the related laws governing the PRO plan, as provided.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The California Integrated Waste Management Act of 1989, administered by the Department of Resources Recycling and Recovery, generally regulates the disposal, management, and recycling of solid waste. The act establishes stewardship programs for various products, including, among others, carpet, mattresses, and pharmaceutical and sharps waste.
This bill would enact a stewardship program known as the Responsible Textile Recovery Act of 2024, which would require a producer of apparel, as defined, or textile articles, as defined, to form and join a producer responsibility organization or PRO. The bill would require the PRO to be approved by the department pursuant to the requirements of the bill, as provided. The bill would require the department to adopt regulations to implement the program no earlier than July 1, 2028. The bill would require the PRO to submit to the department, for approval or disapproval, a complete plan for the collection, transportation, repair, sorting, and recycling, and the safe and proper management, of apparel and textile articles in the state. Upon approval of a plan, or commencing July 1, 2030, whichever is earlier, the bill would make a producer subject to specified civil penalties, unless the producer is a participant of a PRO and all apparel and textiles are accounted for in the plan. The bill would require the PRO to review the plan at least every 5 years after approval. The bill would also require a PRO to submit an annual report to the department, as provided. The bill would require all reports and records provided to the department to be provided under penalty of perjury. By expanding the scope of the crime of perjury, the bill would impose a state-mandated local program. The bill would restrict public access to certain information collected for the purpose of administering the program.
This bill would require the department to post on its internet website a list of producers that are in compliance with the requirements of the program. The bill would require PROs to pay fees to the department, not to exceed the departments actual and reasonable regulatory costs to implement and enforce the act. The bill would establish the Textile Stewardship Recovery Fund in the State Treasury for the deposit of all moneys received from PROs and would make the moneys in the fund available to the department, upon appropriation by the Legislature, for purposes of the program. The bill would also authorize the department to impose administrative civil penalties for a violation of the programs requirements, not to exceed $10,000 per day, or not to exceed $50,000 per day for an intentional or knowing violation, as specified. The bill would create the Textile Stewardship Recovery Penalty Account in the fund for the deposit of penalties, which would be available for expenditure upon appropriation by the Legislature, as specified. The bill would also require an online marketplace, as defined, to notify the department and the PRO of all third-party sellers with sales of apparel or textile articles over $1,000,000 sold on their online marketplace in the preceding year and provide all required information, as specified, and to provide those sellers with information regarding the related laws governing the PRO plan, as provided.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The California Integrated Waste Management Act of 1989, administered by the Department of Resources Recycling and Recovery, generally regulates the disposal, management, and recycling of solid waste. The act establishes stewardship programs for various products, including, among others, carpet, mattresses, and pharmaceutical and sharps waste.
This bill would enact a stewardship program known as the Responsible Textile Recovery Act of 2024, which would require a producer of apparel, as defined, or textile articles, as defined, to form and join a producer responsibility organization or PRO. The bill would require the PRO to be approved by the department pursuant to the requirements of the bill, as provided. The bill would require the department to adopt regulations to implement the program no earlier than July 1, 2028. The bill would require the PRO to submit to the department, for approval or disapproval, a complete plan for the collection, transportation, repair, sorting, and recycling, and the safe and proper management, of apparel, as defined, and textile articles, as defined, in the state. Upon approval of a plan, or commencing July 1, 2030, whichever is earlier, the bill would make a producer subject to specified civil penalties, unless the producer is a participant of a PRO, and all apparel and textiles are accounted for in the plan. The bill would require the PRO to review the plan at least every 5 years after approval. The bill would also require a PRO to submit an annual report to the department, as provided. The bill would require all reports and records provided to the department to be provided under penalty of perjury. By expanding the scope of the crime of perjury, the bill would impose a state-mandated local program. The bill would restrict public access to certain information collected for the purpose of administering the program.
This bill would require the department to post on its internet website a list of producers that are in compliance with the requirements of the program. The bill would require PROs to pay fees to the department, not to exceed the departments actual and reasonable regulatory costs to implement and enforce the act. The bill would establish the Textile Stewardship Recovery Fund in the State Treasury for the deposit of all moneys received from PROs and would make the moneys in the fund available to the department, upon appropriation by the Legislature, for purposes of the program. The bill would also authorize the department to impose administrative civil penalties for a violation of the programs requirements, not to exceed $10,000 per day, or not to exceed $50,000 per day for an intentional or knowing violation, as specified. The bill would create the Textile Stewardship Recovery Penalty Account in the fund for the deposit of penalties, which would be available for expenditure upon appropriation by the Legislature, as specified. The bill would also require an online marketplace, as defined, to notify the department and the PRO of all third-party sellers with sales of apparel or textile articles over $1,000,000 sold on their online marketplace in the preceding year and provide all required information, as specified, and to provide those sellers with information regarding the related laws governing the PRO plan, as provided.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The California Integrated Waste Management Act of 1989, administered by the Department of Resources Recycling and Recovery, generally regulates the disposal, management, and recycling of solid waste. The act establishes stewardship programs for various products, including, among others, carpet, mattresses, and pharmaceutical and sharps waste.
This bill would enact a stewardship program known as the Responsible Textile Recovery Act of 2024, which would require a producer of apparel, as defined, or textile articles, as defined, to form and join a producer responsibility organization or PRO. The bill would require the PRO to be approved by the department pursuant to the requirements of the bill, as provided. The bill would require the department to adopt regulations to implement the program no earlier than July 1, 2028. The bill would require the PRO to submit to the department, for approval or disapproval, a complete plan for the collection, transportation, repair, sorting, and recycling, and the safe and proper management, of apparel, as defined, and textile articles, as defined, in the state. Upon approval of a plan, or commencing July 1, 2030, whichever is earlier, the bill would make a producer subject to specified civil penalties, unless the producer is a participant of a PRO, and all apparel and textiles are accounted for in the plan. The bill would require the PRO to review the plan at least every 5 years after approval. The bill would also require a PRO to submit an annual report to the department, as provided. The bill would require all reports and records provided to the department to be provided under penalty of perjury. By expanding the scope of the crime of perjury, the bill would impose a state-mandated local program. The bill would restrict public access to certain information collected for the purpose of administering the program.
This bill would require the department to post on its internet website a list of producers that are in compliance with the requirements of the program. The bill would require PROs to pay fees to the department, not to exceed the departments actual and reasonable regulatory costs to implement and enforce the act. The bill would establish the Textile Stewardship Recovery Fund in the State Treasury for the deposit of all moneys received from PROs and would make the moneys in the fund available to the department, upon appropriation by the Legislature, for purposes of the program. The bill would also authorize the department to impose administrative civil penalties for a violation of the programs requirements, not to exceed $10,000 per day, or not to exceed $50,000 per day for an intentional or knowing violation, as specified. The bill would create the Textile Stewardship Recovery Penalty Account in the fund for the deposit of penalties, which would be available for expenditure upon appropriation by the Legislature, as specified. The bill would also require an online marketplace, as defined, to notify the department and the PRO of all third-party sellers with sales of apparel or textile articles over $1,000,000 sold on their online marketplace in the preceding year and provide all required information, as specified, and to provide those sellers with information regarding the related laws governing the PRO plan, as provided.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The California Integrated Waste Management Act of 1989, administered by the Department of Resources Recycling and Recovery, generally regulates the disposal, management, and recycling of solid waste. The act establishes stewardship programs for various products, including, among others, carpet, mattresses, and pharmaceutical and sharps waste.
This bill would enact a stewardship program known as the Responsible Textile Recovery Act of 2024, which would require a producer of apparel, as defined, or textile articles, as defined, to form and join a producer responsibility organization or PRO. The bill would require the PRO to be approved by the department pursuant to the requirements of the bill, as provided. The bill would require the department to adopt regulations to implement the program no earlier than July 1, 2028. The bill would require the PRO to submit to the department, for approval or disapproval, a complete plan for the collection, transportation, repair, sorting, and recycling, and the safe and proper management, of apparel, as defined, and textile articles, as defined, in the state. Upon approval of a plan, or commencing July 1, 2030, whichever is earlier, the bill would make a producer subject to specified civil penalties, unless the producer is a participant of a PRO, and all apparel and textiles are accounted for in the plan. The bill would require the PRO to review the plan at least every 5 years after approval. The bill would also require a PRO to submit an annual report to the department, as provided. The bill would require all reports and records provided to the department to be provided under penalty of perjury. By expanding the scope of the crime of perjury, the bill would impose a state-mandated local program. The bill would restrict public access to certain information collected for the purpose of administering the program.
This bill would require the department to post on its internet website a list of producers that are in compliance with the requirements of the program. The bill would require PROs to pay fees to the department, not to exceed the departments actual and reasonable regulatory costs to implement and enforce the act. The bill would establish the Textile Stewardship Recovery Fund in the State Treasury for the deposit of all moneys received from PROs and would make the moneys in the fund available to the department, upon appropriation by the Legislature, for purposes of the program. The bill would also authorize the department to impose administrative civil penalties for a violation of the programs requirements, not to exceed $10,000 per day, or not to exceed $50,000 per day for an intentional or knowing violation, as specified. The bill would create the Textile Stewardship Recovery Penalty Account in the fund for the deposit of penalties, which would be available for expenditure upon appropriation by the Legislature, as specified. The bill would also require an online marketplace, as defined, to notify the department and the PRO of all third-party sellers with sales of apparel or textile articles over $1,000,000 in the preceding year and provide all required information, as specified, and to provide those sellers with information regarding the related laws governing the PRO plan, as provided.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The California Integrated Waste Management Act of 1989, administered by the Department of Resources Recycling and Recovery, generally regulates the disposal, management, and recycling of solid waste. The act establishes stewardship programs for various products, including, among others, carpet, mattresses, and pharmaceutical and sharps waste.
This bill would enact a stewardship program known as the Responsible Textile Recovery Act of 2024, which would require a producer of apparel, as defined, or textile articles, as defined, to form and join a producer responsibility organization or PRO. The bill would require the PRO to be approved by the department pursuant to the requirements of the bill, as provided. The bill would require the department to adopt regulations to implement the program no earlier than January July 1, 2028. The bill would require the PRO to submit to the department, for approval or disapproval, a complete plan for the collection, transportation, repair, sorting, and recycling, and the safe and proper management, of apparel, as defined, and textile articles, as defined, in the state. Upon approval of a plan, or commencing January July 1, 2030, whichever is earlier, the bill would prohibit make a producer from selling, offering for sale, importing, or distributing apparel or textiles in or into the state, subject to specified civil penalties, unless the producer is a participant of a PRO, the department has approved the plan, and other criteria are met. and all apparel and textiles are accounted for in the plan. The bill would require the PRO to review the plan at least every 5 years after approval. The bill would also require a PRO to submit an annual report to the department, as provided. The bill would require all reports and records provided to the department to be provided under penalty of perjury. By expanding the scope of the crime of perjury, the bill would impose a state-mandated local program. The bill would restrict public access to certain information collected for the purpose of administering the program.
This bill would require the department to post on its internet website a list of producers that are in compliance with the requirements of the program. The bill would require PROs to pay fees to the department, not to exceed the departments actual and reasonable regulatory costs to implement and enforce the act. The bill would establish the Textile Stewardship Recovery Fund in the State Treasury for the deposit of all moneys received from PROs and would make the moneys in the fund available to the department, upon appropriation by the Legislature, for purposes of the program. The bill would also authorize the department to impose administrative civil penalties for a violation of the programs requirements, not to exceed $10,000 per day, or not to exceed $50,000 per day for an intentional or knowing violation, as specified. The bill would create the Textile Stewardship Recovery Penalty Account in the fund for the deposit of penalties, which would be available for expenditure upon appropriation by the Legislature, as specified. The bill would also require an online marketplace, as defined, to notify the department and the PRO of all third-party sellers with sales of apparel or textile articles over $1,000,000 in the preceding year and provide all required information, as specified, and to provide those sellers with information regarding the related laws governing the PRO plan, as provided.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The California Integrated Waste Management Act of 1989, administered by the Department of Resources Recycling and Recovery, generally regulates the disposal, management, and recycling of solid waste. The act establishes stewardship programs for various products, including, among others, carpet, mattresses, and pharmaceutical and sharps waste.
This bill would enact a stewardship program known as the Responsible Textile Recovery Act of 2023, 2024, which would require producers, as defined, either independently or through the creation of one or more stewardship organizations, to establish a stewardship program for the collection and recycling of a covered product. The bill would define a covered product to include any postconsumer apparel or postconsumer textile article that is unwanted by a consumer, except as specified. a producer of apparel, as defined, or textile articles, as defined, to form and join a producer responsibility organization or PRO. The bill would require the PRO to be approved by the department pursuant to the requirements of the bill, as provided. The bill would require the department to adopt regulations to implement the program no earlier than January 1, 2028. The bill would require a program operator, as defined, to submit a complete stewardship plan to the department for review and approval, disapproval, or conditional approval. the PRO to submit to the department, for approval or disapproval, a complete plan for the collection, transportation, repair, sorting, and recycling, and the safe and proper management, of apparel, as defined, and textile articles, as defined, in the state. Upon approval of a plan, or commencing January 1, 2030, whichever is earlier, the bill would prohibit a producer from selling, offering for sale, importing, or distributing apparel or textiles in or into the state, unless the producer is a participant of a PRO, the department has approved the plan, and other criteria are met. The bill would require the program operator PRO to review the plan at least every 5 years after approval. The bill would also require a program operator PRO to submit an annual report to the department. department, as provided. The bill would require all reports and records provided to the department to be provided under penalty of perjury. By expanding the scope of the crime of perjury, the bill would impose a state-mandated local program. The bill would restrict public access to certain information collected for the purpose of administering a stewardship the program.
This bill would require the department to post on its internet website a list of producers that are in compliance with the requirements of the program. The bill would require the department to adopt regulations governing the program, and would authorize, beginning January 1, 2032, the department to reassess the adopted regulations to include adjusting the minimum required collection sites, establishing a minimum recycling efficiency rate for covered products collected and recycled by program operators, or establishing other criteria for the program. The bill would require program operators PROs to pay fees to the department, not to exceed the departments actual and reasonable regulatory costs to implement and enforce the provisions of the act. The bill would establish the Textile Stewardship Recovery Fund in the State Treasury for the deposit of all moneys received from program operators PROs and would make the moneys in the fund available to the department, upon appropriation by the Legislature, for purposes of the program. The bill would also authorize the department to impose administrative civil penalties for a violation of the programs requirements, not to exceed $10,000 per day, or not to exceed $50,000 per day for an intentional, knowing, or reckless intentional or knowing violation, as specified. The bill would create the Textile Stewardship Recovery Penalty Account in the fund for the deposit of penalties, which would be available for expenditure upon appropriation by the Legislature, as specified.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The California Integrated Waste Management Act of 1989, administered by the Department of Resources Recycling and Recovery, generally regulates the disposal, management, and recycling of solid waste. The act establishes stewardship programs for various products, including, among others, carpet, mattresses, and pharmaceutical and sharps waste.
This bill would enact the Responsible Textile Recovery Act of 2023, which would require producers, as defined, either independently or through the creation of one or more stewardship organizations, to establish a stewardship program for the collection and recycling of a covered product. This The bill would define a covered product to include any apparel or textile article that is unsuitable for reuse by a consumer in its current state or condition, postconsumer apparel or postconsumer textile article that is unwanted by a consumer, except as specified. The bill would require a program operator, as defined, to submit a complete stewardship plan to the department for review and approval, disapproval, or conditional approval. The bill would require the program operator to review the plan at least every 5 years after approval. The bill would also require a program operator to submit an annual report to the department. The bill would require all reports and records provided to the department to be provided under penalty of perjury. By expanding the scope of the crime of perjury, the bill would impose a state-mandated local program. The bill would restrict public access to certain information collected for the purpose of administering a stewardship program.
This bill would require the department to post on its internet website a list of producers that are in compliance with the requirements of the program. The bill would require the department to adopt regulations governing the program, and would authorize, beginning January 1, 2032, the department to reassess the adopted regulations to include adjusting the minimum required collection sites, establishing a minimum recycling efficiency rate for covered products collected and recycled by program operators, or establishing other criteria for the program. The bill would require program operators to pay fees to the department, not to exceed the departments actual and reasonable regulatory costs to implement and enforce the provisions of the act. The bill would establish the Textile Stewardship Recovery Fund in the State Treasury for the deposit of all moneys received from program operators and would make the moneys in the fund available to the department, upon appropriation by the Legislature, for purposes of the program. The bill would also authorize the department to impose administrative civil penalties for a violation of the programs requirements, not to exceed $10,000 per day, or not to exceed $50,000 per day for an intentional, knowing, or reckless violation, as specified. The bill would create the Textile Stewardship Recovery Penalty Account in the fund for the deposit of penalties, which would be available for expenditure upon appropriation by the Legislature, as specified.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The California Integrated Waste Management Act of 1989, administered by the Department of Resources Recycling and Recovery, generally regulates the disposal, management, and recycling of solid waste. The act establishes stewardship programs for various products, including, among others, carpet, mattresses, and pharmaceutical and sharps waste.
This bill would enact the Responsible Textile Recovery Act of 2023, which would require producers, as defined, either independently or through the creation of one or more stewardship organizations, to establish a stewardship program for the collection and recycling of a covered product. This bill would define a covered product to include any apparel, textile, apparel or textile article that is unsuitable for reuse by a consumer in its current state or condition, except as specified. The bill would require a program operator, as defined, to submit a complete stewardship plan to the department for review and approval, disapproval, or conditional approval. The bill would require the program operator to review the plan at least every 5 years after approval. The bill would also require a program operator to submit an annual report to the department. The bill would require all reports and records provided to the department to be provided under penalty of perjury. By expanding the scope of the crime of perjury, the bill would impose a state-mandated local program. The bill would restrict public access to certain information collected for the purpose of administering a stewardship program.
This bill would require the department to post on its internet website a list of producers that are in compliance with the requirements of the program. The bill would require the department to adopt regulations governing the program, and would authorize, beginning January 1, 2032, the department to reassess the adopted regulations to include adjusting the minimum required collection sites, establishing a minimum recycling efficiency rate for covered products collected and recycled by program operators, or establishing other criteria for the program. The bill would require program operators to pay fees to the department, not to exceed the departments actual and reasonable regulatory costs to implement and enforce the provisions of the act. The bill would establish the Textile Stewardship Recovery Fund in the State Treasury for the deposit of all moneys received from program operators and would make the moneys in the fund available to the department, upon appropriation by the Legislature, for purposes of the program. The bill would also authorize the department to impose administrative civil penalties for a violation of the programs requirements, not to exceed $10,000 per day, or not to exceed $50,000 per day for an intentional, knowing, or reckless violation, as specified. The bill would create the Textile Stewardship Recovery Penalty Account in the fund for the deposit of penalties, which would be available for expenditure upon appropriation by the Legislature. Legislature, as specified.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The California Integrated Waste Management Act of 1989, administered by the Department of Resources Recycling and Recovery, generally regulates the disposal, management, and recycling of solid waste. The act establishes stewardship programs for various products, including, among others, carpet, mattresses, and pharmaceutical and sharps waste.
This bill would enact the Responsible Textile Recovery Act of 2023, which would require producers, as defined, either independently or through the creation of one or more stewardship organizations, to establish a stewardship program for the collection and recycling of a covered product. This bill would define a covered product to include any apparel, textile, or textile article that is unsuitable for reuse by a consumer in its current state or condition, except as specified. The bill would require a program operator, as defined, to submit a complete stewardship plan to the department for review and approval, disapproval, or conditional approval. The bill would require the program operator to review the plan at least every 5 years after approval. The bill would also require a program operator to submit an annual report to the department. The bill would require all reports and records provided to the department to be provided under penalty of perjury. By expanding the scope of the crime of perjury, the bill would impose a state-mandated local program. The bill would restrict public access to certain information collected for the purpose of administering a stewardship program.
This bill would require the department to post on its internet website a list of producers that are in compliance with the requirements of the program. The bill would require the department to adopt regulations governing the program, and would authorize, beginning January 1, 2032, the department to adopt regulations establishing minimum recycling efficiency. reassess the adopted regulations to include adjusting the minimum required collection sites, establishing a minimum recycling efficiency rate for covered products collected and recycled by program operators, or establishing other criteria for the program. The bill would require program operators to pay fees to the department, not to exceed the departments actual and reasonable regulatory costs to implement and enforce the provisions of the act. The bill would establish the Textile Stewardship Recovery Fund in the State Treasury for the deposit of all moneys received from program operators and would make the moneys in the fund available to the department, upon appropriation by the Legislature, for purposes of the program. The bill would also authorize the department to impose administrative civil penalties for a violation of the programs requirements, not to exceed $10,000 per day, or not to exceed $50,000 per day for an intentional, knowing, or reckless violation, as specified. The bill would create the Textile Stewardship Recovery Penalty Account in the fund for the deposit of penalties, which would be available for expenditure upon appropriation by the Legislature.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The California Integrated Waste Management Act of 1989, administered by the Department of Resources Recycling and Recovery, generally regulates the disposal, management, and recycling of solid waste. The act establishes stewardship programs for various products, including, among others, carpet, mattresses, and pharmaceutical and sharps waste.
This bill would enact the Responsible Textile Recovery Act of 2023, which would require producers, as defined, either individually independently or through the creation of one or more stewardship organizations, to establish a stewardship program for the collection and recycling of a covered product. This bill would define a covered product to include any apparel, textile, or textile article that is unsuitable for reuse by a consumer in its current state or condition. condition, except as specified. The bill would require a program operator, as defined, to submit a complete stewardship plan to the department for review and approval, disapproval, or conditional approval. The bill would require the program operator to review the plan at least every 5 years after approval. The bill would also require a program operator to submit an annual report to the department. The bill would require all reports and records provided to the department to be provided under penalty of perjury. By expanding the scope of the crime of perjury, the bill would impose a state-mandated local program. The bill would restrict public access to certain information collected for the purpose of administering a stewardship program.
This bill would require the department to post on its internet website a list of producers that are in compliance with the requirements of the program. The bill would require the department to adopt regulations governing the program, and would authorize, beginning January 1, 2032, the department to adopt regulations establishing minimum recycling efficiency. The bill would require program operators to pay fees to the department, not to exceed the departments actual and reasonable regulatory costs to implement and enforce the provisions of the act. The bill would establish the Textile Stewardship Recovery Fund in the State Treasury for the deposit of all moneys received from program operators and would make the moneys in the fund available to the department, upon appropriation by the Legislature, for purposes of the program. The bill would also authorize the department to impose administrative civil penalties for a violation of the programs requirements, not to exceed $10,000 per day, or not to exceed $50,000 per day for an intentional, knowing, or reckless violation, as specified. The bill would create the Textile Stewardship Recovery Penalty Account in the fund for the deposit of penalties, which would be available for expenditure upon appropriation by the Legislature. The bill would also exempt textiles made from synthetic fibers, and carpet made from synthetic fibers, from the carpet stewardship program.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The California Integrated Waste Management Act of 1989, administered by the Department of Resources Recycling and Recovery, generally regulates the disposal, management, and recycling of solid waste. The act establishes stewardship programs for various products, including, among others, carpet, mattresses, and pharmaceutical and sharps waste.
This bill would enact the Responsible Textile Recovery Act of 2023, which would require producers, as defined, either individually or through the creation of one or more stewardship organizations, to establish a stewardship program for the collection and recycling of a covered product. This bill would define a covered product to include any apparel, textile, or textile article that is unsuitable for reuse by a consumer in its current state or condition. The bill would require a program operator, as defined, to submit a complete stewardship plan to the department for review and approval, disapproval, or conditional approval. The bill would require the program operator to review the plan at least every 5 years after approval. The bill would also require a program operator to submit an annual report to the department. The bill would require all reports and records provided to the department to be provided under penalty of perjury. By expanding the scope of the crime of perjury, the bill would impose a state-mandated local program. The bill would restrict public access to certain information collected for the purpose of administering a stewardship program.
This bill would require the department to post on its internet website a list of producers that are in compliance with the requirements of the program. The bill would require the department to adopt regulations governing the program, and would authorize, beginning January 1, 2032, the department to adopt regulations establishing minimum recycling efficiency. The bill would require program operators to pay fees to the department, not to exceed the departments actual and reasonable regulatory costs to implement and enforce the provisions of the act. The bill would establish the Textile Stewardship Recovery Fund in the State Treasury for the deposit of all moneys received from program operators and would make the moneys in the fund available to the department, upon appropriation by the Legislature, for purposes of the program. The bill would also authorize the department to impose administrative civil penalties for a violation of the programs requirements, not to exceed $10,000 per day, or not to exceed $50,000 per day for an intentional, knowing, or reckless violation, as specified. The bill would create the Textile Stewardship Recovery Penalty Account in the fund for the deposit of penalties, which would be available for expenditure upon appropriation by the Legislature. The bill would also exempt textiles made from synthetic fibers, and carpet made from synthetic fibers, from the carpet stewardship program.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
This act may be known, and shall be cited, as the Responsible Textile Recovery Act of 2024.
42984.05.(a)The intent of this chapter is to establish a statewide extended producer responsibility program for apparel and textile articles that emphasizes repair and reuse, and minimizes generation of hazardous waste, generation of greenhouse gases, environmental impacts, environmental justice impacts, and public health impacts.
(b)Due to distinct market elements associated with the textile and apparel industry that can utilize direct-to-consumer transactions from an overseas manufacturer to a consumer, the provisions of this chapter associated with online marketplaces are intended to be unique to this sector.
42984.1.(a)The purpose of this chapter is to increase the amount of postconsumer apparel and textile articles that are diverted from landfills and reused, repaired, and recycled into secondary products or otherwise managed in a manner that is consistent with the states hierarchy for waste management practices pursuant to Section 40051.
(b)It is the purpose of this chapter that any producer, regardless of whether that producer is domiciled in California, who sells, offers for sale, or distributes a covered product into the state shall be responsible for complying with this chapter.
42984.2.The department, acting in accordance with Article 1 (commencing with Section 11340) to Article 8 (commencing with Section 11350), inclusive, of the Administrative Procedure Act, as set forth in Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, shall adopt regulations to implement this chapter with an effective date of no earlier than July 1, 2028. The departments regulations shall encourage recycling that minimizes generation of hazardous waste, generation of greenhouse gases, environmental impacts, environmental justice impacts, and public health impacts.
42984.3.(a)(1)Apparel means clothing and accessory items intended for regular wear or formal occasions and outdoor activities. For purposes of this chapter apparel includes only undergarments, shirts, pants, skirts, dresses, overalls, bodysuits, costumes, vests, dancewear, suits, saris, scarves, tops, leggings, school uniforms, leisurewear, athletic wear, sports uniforms, swimwear, formal wear, onesies, bibs, footwear, handbags, backpacks, knitted and woven accessories, jackets, coats, snow pants, ski pants, and everyday uniforms for workwear.
(2)Apparel does not include any of the following:
(A)Personal protective equipment or clothing items for use by the United States military.
(B)Personal protective equipment worn to protect the wearer from health or environmental hazards.
(C)Reusable products designed to collect and absorb urine and feces, or reusable products regulated by the United States Food and Drug Administration that are designed to collect and absorb menstruation or vaginal discharge.
(b)Authorized collector means a person or entity that has entered into an agreement with a PRO to collect covered products.
(c)Authorized sorter means a person or entity that has entered into an agreement with a PRO to sort covered products collected by authorized collectors.
(d)Authorized repair business means a person or entity that has entered into an agreement with a PRO to repair covered products for resale after collection by an authorized collector or after sorting by an authorized sorter.
(e)Brand means a trademark, including both a registered trademark and an unregistered trademark, a logo, a name, a symbol, a word, an identifier, or a traceable mark that identifies a covered product and identifies the owner or licensee of the brand.
(f)Collection box means an unattended container, box, receptacle, or similar device used for soliciting and collecting donations of covered products, including apparel or textile articles.
(g)Collection site means a permanent or temporary location operated by an authorized collector at which covered products are collected and prepared for transport in accordance with the requirements of this chapter.
(h)Consumer means an owner of a covered product, including a person, business, corporation, limited partnership, nonprofit organization, or governmental entity, and includes the ultimate purchaser, owner, or lessee of a covered product, who is not, as to that covered product, the distributor, importer, producer, recycler, retailer, or PRO.
(i)(1)Covered product means an apparel or textile article.
(2)Covered product does not include any of the following:
(A)A product covered under the Used Mattress Recovery and Recycling Act (Chapter 21 (commencing with Section 42985)).
(B)A product covered under the Electronic Waste Recycling Act of 2003 (Chapter 8.5 (commencing with Section 42460)).
(C)A product covered under the Product Stewardship for Carpets law (Chapter 20 (commencing with Section 42970)).
(D)An automated, motorized, battery, or manual window covering that is operated using an electric motor or other automated system, or manually adjusted by pulling cords or lifting mechanisms.
(j)Department means the Department of Resources Recycling and Recovery or a successor agency.
(k)Distributor means a company that has a contractual relationship with one or more producers to market and sell covered products to a retailer.
(l)Importer means either of the following:
(1)A person 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 covered product that is sold, distributed for sale, or offered for sale in or into the state that was manufactured or assembled by a company outside of the United States.
(2)A person importing into the state for sale, distributing for sale, or offering for sale in the state a covered product that was manufactured or assembled by a company physically located outside of the state.
(m)Local jurisdiction means a city, county, city and county, or a regional agency formed pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code or Article 3 (commencing with Section 40970) of Chapter 1 of Part 2 of this code, or a special district that provides solid waste collection services.
(n)Mail-back program means a method of collecting covered products using prepaid, preaddressed mailing envelopes, boxes, or other means that are reusable, recyclable, or compostable.
(o)Needs assessment means a needs assessment prepared pursuant to Section 42984.6.
(p)Nonprofit thrift store has the same meaning as set forth in Section 6363.3 of the Revenue and Taxation Code.
(q)Online marketplace has the same meaning as set forth in Section 1749.8 of the Civil Code.
(r)Person has the same meaning as set forth in Section 40170.
(s)(1)Producer means a person who manufactures a covered product and who owns or is the licensee of the brand or trademark under which that covered product is sold, offered for sale, or distributed for sale in or into the state.
(2)If there is no person in the state who is the producer for purposes of paragraph (1), the producer of the covered product is the owner of a brand or trademark or, if the owner is not in the state, the exclusive licensee of a brand or trademark under which the covered product is sold, imported for sale, offered for sale, or distributed for sale in or into the state, regardless of whether the trademark is registered. For purposes of this subdivision, an exclusive licensee is a person holding the exclusive right to use a trademark or brand in the state in connection with the manufacture, sale, or distribution for sale in or into the state of the covered product.
(3)If there is no person in the state who is the producer for purposes of paragraph (1) or (2), then the producer of the covered product is the person that imports the covered product into the state for sale or distribution.
(4)If there is no other person in the state who is the producer for purposes of paragraphs (1), (2), or (3), the producer of the covered product is the distributor, retailer, or wholesaler who sells the product in or into the state.
(5)For the purposes of this chapter, the sale of a covered product shall be deemed to occur in the state if the covered product is delivered to the consumer in the state.
(6)This chapter does not prohibit a person who manufactures, distributes, imports, offers for sale, or sells the covered product from assuming some or all of the duties and liabilities of the producer of the covered product and relieving from those duties and liabilities any other person who manufactures, distributes, imports, offers for sale, or sells the covered product.
(7)Producer does not include a seller that only sells secondhand covered products.
(8)Producer does not include a seller with less than one million dollars ($1,000,000) in annual aggregate global turnover adjusted annually pursuant to the California Consumer Price Index for All Urban Consumers for all items, as determined by the Department of Industrial Relations. The aggregate global turnover of a producer within the meaning of this chapter shall be calculated by adding together the respective turnovers of all of the following:
(A)The producer concerned.
(B)Those entities in which the producer is concerned, directly or indirectly, as follows:
(i)Owns more than one-half the capital or business assets.
(ii)Has the power to exercise more than one-half the voting rights.
(iii)Has the power to appoint more than one-half the members of the supervisory board, the administrative board, or bodies legally representing the undertakings.
(iv)Has the right to manage the entities affairs.
(C)Those entities that have in the producer concerned the rights or powers listed in subparagraph (B).
(D)Those entities in which an entity referred to in subparagraph (C) has the rights or powers listed in subparagraph (B).
(E)Those entities in which two or more entities as referred to in subparagraphs (A) to (D), inclusive, jointly have the rights or powers listed in subparagraph (B).
(t)Producer responsibility organization or PRO means an organization that is exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986, is formed for the purpose of implementing a plan to meet the requirements of this chapter, and is approved by the department.
(u)Producer responsibility plan or plan means the plan developed by the PRO for the collection, transportation, repair, recycling, and the safe and proper management of covered products pursuant to subdivision (a) of Section 42984.8 and submitted to the department for approval pursuant to subdivision (b) of Section 42984.8.
(v)Recycle or recycling has the same meaning as set forth in paragraphs (1), (2), and (3) of subdivision (aa) of Section 42041. To be considered recycled, covered products shall be recycled into new, reused, or reconstituted products.
(w)Repair means any alteration or improvement of damaged covered product deemed worth the cost of repair by criteria established by the plan, including, but not limited to, any of the following:
(1)Redesigning and repurposing.
(2)Mending rips, holes, seams, and hems.
(3)Removing and repairing surface damage, such as pilling, stain removal, or abrasion.
(4)Securing and reattaching buttons and other fastenings.
(5)Dyeing, redyeing, overdyeing, or printing of images on covered products.
(6)Preparation for reuse and resale.
(x)Responsible end market has the same meaning as set forth in subdivision (ad) of Section 42041.
(y)Retailer means a person who sells or offers for sale a covered product in or into the state to a person through any means, including, but not limited to, sales outlets, catalogs, the telephone, the internet, or any electronic means.
(z)Reuse means the resale of a collected covered product to a consumer for its original intended use with or without repair.
(aa)Secondhand covered product means any covered product that has been previously owned by a consumer.
(ab)Secondhand markets means a retailer who sells secondhand covered products, including, but not limited to, thrift stores, collection box operators, online resale platforms, and flea markets.
(ac)Sell has the same meaning as set forth in Section 6006 of the Revenue and Taxation Code.
(ad)Stewardship program means a program established by a PRO pursuant to this chapter for the free, convenient, and safe collection, transportation, repair, recycling, and otherwise proper management of covered products.
(ae)(1)Textile article means an item customarily used in households or businesses that are made entirely or primarily from a natural, artificial, or synthetic fiber, yarn, or fabric. For purposes of this chapter, textile article includes only blankets, curtains, fabric window coverings, knitted and woven accessories, towels, tapestries, bedding, tablecloths, napkins, linens, and pillows.
(2)Textile article does not include single-use products including paper towels, paper napkins, toilet paper, facial tissue, and wet or dry wipes.
(af)Third-party seller has the same meaning as set forth in Section 1749.8 of the Civil Code.
2.Producers42984.4.(a)(1)Producers of covered products shall form and join a PRO for the purposes of complying with this chapter. The governing body of the PRO shall submit an application to the department by January 1, 2026, describing how the PRO meets the requirements to be an approved PRO pursuant to this chapter. If the department approves the PRO, the PRO shall proceed to carry out the requirements of this chapter. If applications for more than one PRO are submitted to the department, the department shall determine which proposed PRO can most effectively implement this chapter.
(2)The department shall, by, March 1, 2026, approve a PRO that meets the requirements of this chapter and both of the following:
(A)The PRO has a governing board consisting of producers that are diverse in size and type and that represent the diversity of covered products placed in the market by those entities. The governing board may include ex officio members involved in the collection, sorting, repair, reuse, recycling, or management of covered products.
(B)The PRO demonstrates that it has adequate financial responsibility and financial controls in place, including fraud prevention measures and an audit schedule, to ensure proper management of funds.
(3)All producers of covered products shall, by July 1, 2026, join the PRO approved by the department.
(4)After January 1, 2035, upon the determination of the director that an additional PRO would be beneficial in satisfying the requirements of this chapter, the department may approve additional PROs that meet the requirements of this chapter and that meet all of the following requirements:
(A)The proposed PRO submits to the department, and agrees to cover the departments reasonable costs to review, a petition to establish a new PRO.
(B)The proposed PRO is composed of a sufficient number of producers to jointly comply with the requirements of this chapter.
(C)The proposed PRO agrees to cover the costs of all of the provisions of this chapter applicable to the proposed PRO and its participant producers.
(b)Each producer covered under a PRO shall register with that PRO in accordance with the procedures and requirements established by that PRO and shall comply with those procedures and requirements.
(c)Upon approval of a plan pursuant to Section 42984.8, or commencing July 1, 2030, whichever is sooner, a producer shall be subject to penalties under Section 42984.21 unless all of the following are met:
(1)The producer is a participant of the PRO.
(2)All covered products are accounted for in the plan.
(3)If an entity does not meet the definition of a producer and is not subject to this chapter before January 1, 2030, but, at any point, after January 1, 2030, meets the definition of a producer, the producer shall, within 90 days, become a participant of the PRO and comply with the requirements of this chapter.
(d)A producer is not in compliance with this chapter and is subject to penalties pursuant to this chapter if a covered product sold or offered for sale by the producer is not subject to an approved PRO plan that has been approved by the department pursuant to Section 42984.8.
42984.5.(a)No later than 30 days after the effective date of the regulations implementing this chapter, individual producers or the PRO shall provide to the department, in a form and manner established by the department, a list of brands of covered products that each producer sells, distributes for sale, imports for sale, or offers for sale in or into the state.
(b)A producer or PRO shall update the list described in subdivision (a) and provide the updated list to the department on or before January 15 of each year or upon request of the department.
3.Producer Responsibility Organizations (PROs)42984.6.(a)(1)A PRO shall prepare the initial statewide needs assessment designed to determine the necessary steps and investment needed for covered products, to achieve the requirements of this chapter. Needs assessments, or components thereof, shall be updated every five years or as necessary to ensure the requirements of this chapter are met. An initial needs assessment for covered products shall be completed before the completion and approval of any producer responsibility plan for covered products. The PRO may select an independent third-party contractor to complete the needs assessment.
(2)A PRO shall cover the cost of developing any needs assessment and any update to a needs assessment.
(3)A PRO may prepare more than one needs assessment, with each assessment specific to one or more covered products subject to this chapter, or may prepare one comprehensive needs assessment that includes all covered products subject to this chapter.
(4)A PRO shall consult with the department and local jurisdictions when preparing the needs assessment.
(5)The initial needs assessment, and any updates, shall be submitted to the department by March 1, 2027. The department shall review and approve, conditionally approve, or disapprove the needs assessment as meeting the requirements of this chapter within 90 days of submission.
(6)If there is more than one PRO approved by the department at the time updated needs assessments are completed, then the approved PROs may collaborate on a single needs assessment.
(b)A needs assessment shall comply with all of the following:
(1)Be designed to inform the program budget and PRO plan.
(2)Include an evaluation of all of the following with respect to covered products and covered product categories:
(A)Existing scope and scale of annual covered products diverted to landfill in the state by type of covered product, material composition, and volume and annual covered product recovery diverted to reuse, repair, or recycling in the state or from the state by type of covered product, material composition, and volume.
(B)The current repair, reuse, recycling, collection, sorting, and hauling system in the state and the expanded access and additional repair, reuse, recycling, collection, sorting, disassembly, and hauling options needed to meet the requirements of this chapter.
(C)Current market conditions and the need to create responsible and economically viable end markets in the state, regionally, and globally.
(D)Existing state statutory provisions and funding sources related to market development and financial incentives to help achieve the states goals related to repair, reuse, recycling, collection, sorting, disassembly, and hauling.
(E)Consumer education needs and the methods by which the PRO can best reach consumers with educational messaging.
(F)Consumer behaviors to drive repair, reuse, and recycling and to achieve the requirements of this chapter.
(G)Funding needs and incentive mechanisms necessary to achieve the requirements of this chapter, including coverage of the operation of the stewardship program.
(H)Fee reduction or redistribution mechanisms necessary to achieve the requirements of this chapter, in a manner that equitably distributes the costs among participating producers that reflects production and sales volumes relevant to the California market. Fee reduction or redistribution mechanisms may consider existing producer collection, repair, reuse, and recycling programs that help achieve the purpose of this chapter.
(I)Actions and investments necessary to provide sufficient access to collection, recycling, composting, processing, and transportation to responsible and economically viable end markets.
(J)An evaluation of the availability or lack of availability of responsible end markets for recycled covered products, the need to incentivize reused products or recycled material market development, and the associated investments and actions needed to ensure that the covered products are reused or recycled and have responsible and economically viable and sufficient end markets.
(K)The needs assessment shall include an evaluation of the factors contributing to the presence of perfluoroalkyl and polyfluoroalkyl substances (PFAS) and other chemicals regulated under Chapter 6.6 (commencing with Section 25249.5) of Division 20 of the Health and Safety Code and Chapter 12.5 (commencing with Section 108945) of, and Chapter 13.5 (commencing with Section 108970) of, Part 3 of Division 104 of the Health and Safety Code, and the actions and investments needed to avoid contamination related to recycling. This shall include available environmental and public health data and an evaluation of the available end markets for recycled material that cannot be remanufactured into textiles or textile articles in California.
(L)Whether allowing more than one PRO would be beneficial in meeting the requirements of the chapter.
(M)Evaluate what factors will be important to successfully implement the eco-modulated fee structure required by subdivision (b) of Section 42984.10, and what associated data collection will be necessary as part of the plan.
(c)The department shall guide development of a needs assessment, which shall be developed by a PRO in consultation with a broad diversity of local jurisdictions, recycling service providers, and processors that reflect the different needs and challenges presented by managing different covered products through final disposition.
42984.7.(a)A PRO shall approve collection sites under its stewardship program that agree to comply with all applicable state, federal, or municipal laws, regulations, and rules and conditions adopted by the PRO.
(b)A PRO shall include as a collection site under its stewardship program any local jurisdiction that offers in writing to participate in the stewardship program and agrees to comply with any PRO requirements that are consistent with that PROs approved plan even if the minimum thresholds described in subdivision (d) of Section 42984.10, as applicable, have been achieved.
(1)A PRO shall include the local jurisdiction as a collection site in the stewardship program within 90 days of receiving the written offer to participate, confirming that the local jurisdiction will comply with any PRO requirements that are consistent with an approved plan, even if the minimum thresholds described in subdivision (d) of Section 42984.10, as applicable, have been achieved.
(2)The PRO shall not be required to respond to offers pursuant to this paragraph until the PROs plan has been approved by the department.
(c)A PRO may suspend or terminate a collection site that does not comply with all applicable state, federal, or municipal laws and regulations or adhere to the rules and conditions imposed by the PRO.
(d)A collection site shall be operated and managed to ensure that covered products are collected safely and handled in accordance with all applicable state, federal, and municipal laws and regulations and the rules and conditions of the plan. Authorized collectors and authorized sorters may divert reusable covered products for sale in secondhand markets.
(e)A PRO shall require all contractors to pay at least the state minimum wage.
(f)Each participant of a PRO with an approved plan shall comply with the requirements of this chapter. The PRO shall notify the department within 30 calendar days of any the following:
(1)The end of any three-month period in which the PRO unsuccessfully attempted to obtain a fee, records, or information from a participant producer, or received incomplete or incorrect records or information.
(2)The date a producer no longer participates in the PROs approved plan.
(3)Any instance of noncompliance by a participant producer.
4.Producer Responsibility Plan for Covered Products42984.8.(a)Within 12 months of the effective date of the regulations adopted by the department pursuant to Section 42984.2, a PRO shall develop and submit to the department a complete plan, in a form and manner determined by the department, in accordance with the requirements of this chapter, for the collection, transportation, repair, sorting, recycling, and the safe and proper management of covered products in the state. No PRO serving more than one producer may limit its stewardship plan for covered products to the covered products of the producers participating in that stewardship program.
(b)The department shall review the stewardship plan for compliance with this chapter and shall approve, disapprove, or conditionally approve the plan within 120 days of receipt of the plan.
(c)(1)If the department disapproves a plan submitted by a PRO, the department shall explain how the plan does not comply with this chapter and provide written notice to the PRO within 60 days of disapproval. The PRO may resubmit to the department a revised plan within 30 days of the date the written notice was issued, and the department shall review the revised plan within 60 days of resubmittal.
(2)If the department disapproves a revised plan submitted by a PRO, the department shall explain how the plan does not comply with this chapter and provide written notice to the PRO within 60 days of disapproval. The PRO shall then revise and resubmit the plan consistent with the departments direction within 30 days, otherwise the disapproval is final and the PRO and producers may be subject to penalties.
(3)By July 1, 2030, a PRO shall have a complete plan approved by the department and each producer shall be subject to an approved plan to be in compliance with this chapter.
(d)Within three months of approval by the department, a PRO shall begin to implement the approved plan.
(e)A PRO with an approved plan shall submit any proposed substantial change to the plan to the department for approval employing the procedures set forth in this section.
(f)The approved plan shall be a public record, except that financial or sales data reported to the department by the PRO is not a public record for purposes of the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and shall not be open to public inspection. The department may release financial or sales data in summary form only so the information cannot be attributable to a specific producer or distributor or to any other entity.
42984.9.The PRO shall fully implement the approved plan within 12 months of the departments approval of the plan pursuant to Section 42984.8.
42984.10.A plan for covered products shall be designed to accept and manage all postconsumer covered products and shall include all of the following:
(a)The names and contact information, including email address, phone number, and mailing and physical addresses, of producers and brands of covered products covered under the plan.
(b)(1)A description of the method to establish and administer a means for fully funding the PRO in a manner that distributes the PROs costs among the producers that are part of the stewardship organization using a per unit eco-modulated fee that reflects California sales volumes, existing producer collection, repair, reuse, and recycling programs that help achieve the purpose of this chapter, and the cost of reusing, repairing, recycling, or otherwise managing covered products pursuant to subdivision (a) of Section 42984.4.
(2)A five-year budget that establishes a funding level sufficient to operate the PRO in a prudent and responsible manner. The budget shall demonstrate how estimated revenues will cover all budgeted costs for each cost category.
(3)Budgeted costs shall include, but not be limited to, administrative costs, education and outreach costs, operational costs, capital costs, and a reserve to operate the PRO should there be unexpected events, such as losses of income, and large unbudgeted expenses in order to protect the recycling infrastructure the PRO relies upon in its plan, during any lapse in producer participation during the life of the program. The plan shall include a description of the types of activities related to each line-item cost category. The reserve cost category shall include a reserve level amount and description justifying the reserve level amount indicated.
(4)The PRO shall maintain reserve funds sufficient to operate the plan for no less than six months. If a new plan submitted by a PRO is approved by the department, the PRO shall establish its reserve and maintain the required reserve fund balance by the end of the second year of plan operation.
(5)Administrative costs shall include the departments actual and reasonable regulatory costs, which include full personnel costs, to implement and enforce this chapter as the criteria for all the costs that are defined in the regulations adopted pursuant to Section 42984.2. For the purposes of this paragraph, PRO implementation begins once the department approves a PROs plan, except the departments costs shall include actual regulatory development costs and other startup costs incurred prior to plan submittal and approval.
(c)Quantifiable five-year and annual performance standards and metrics unless or until the department publishes performance standards pursuant to Section 42984.19. The PRO shall amend its plan to meet or exceed the performance standards published by the department.
(d)A description of how the PRO will provide for a free and convenient dropoff or collection system for covered products, which shall include permanent collection sites and may include temporary collection sites and mail-back options, in each county of the state that meets both of the following requirements:
(1)Provides for a minimum of 10 permanent collection sites or one permanent collection site per 25,000 people, whichever is greater, except as provided below:
(A)A county with a population of 18,000 and under, as reported annually by the Department of Finance, shall have a minimum of three collection locations.
(B)A county with a population of between 18,001 and 50,000, inclusive, as reported annually by the Department of Finance, shall have a minimum of four collection locations.
(C)A county with a population between 50,001 and 100,000, inclusive, as reported annually by the Department of Finance, shall have a minimum of eight collection locations.
(2)Provides for a reasonable geographic spread of permanent collection sites and an explanation for the geographic spread.
(e)A description of how collection sites will be authorized and managed, including all of the following:
(1)A description of the process by which local jurisdictions can request to be a collection site pursuant to Section 42984.7.
(2)A description of how the PRO will provide to collection sites at no cost the appropriate containers for covered products, training, signage, safety guidance, and educational materials.
(3)An explanation of the process by which the PRO will provide for the transport of covered products at no cost from the collection sites to an authorized sorter, or directly to an authorized repair business, or recycling facility.
(4)A description of how collection sites will be allowed to divert collected covered products to secondhand markets for reuse. Any diversion by collection sites pursuant to this paragraph shall be consistent with the rules established pursuant to paragraph (5).
(5)A list of all proposed rules, conditions, and requirements for authorized collectors, authorized sorters, and authorized repair businesses, including a template proposed agreement for each of those types of entities, as applicable.
(6)A description of how the PRO will prioritize the use of secondhand markets and nonprofit thrift stores, as described in Section 6363.3 of the Revenue and Taxation Code, when establishing collection sites to meet the minimum requirements in subdivision (d).
(7)How collection sites will be instructed to identify and reject counterfeit covered products.
(f)A description of the process by which collected covered products will be sorted, transported, processed, reused, and recycled following collection at collection sites, including all of the following:
(1)A description of how covered products will be handled and managed according to the waste management practices pursuant to Section 40051, including both of the following:
(A)(i)How the plan will prioritize the reuse, including repair, of collected covered products.
(ii)Products designed for use by infants and children under 12 years of age with components that pose a risk of detachment, thus creating choking hazards, or containing components subject to Part 1303 (commencing with Section 1303.1) and Part 1307 (commencing with Section 1307.1) of Title 16 of the Code of Federal Regulations, including, but not limited to, metallic, vinyl, or plastic snaps, zippers, grommets, closures, or appliques may be excluded from repair and reuse by the PRO.
(B)(i)How the plan will include the incentive payments, grants, and market development investments specified in clause (vii) to encourage reuse over recycling and other methods.
(ii)A description of how covered products will be sorted by authorized sorters, including a description of how the flow of covered products to and from authorized collectors, authorized sorters, authorized repair businesses, and recyclers will be tracked through final disposition.
(iii)A description of how the PRO will maximize the reuse and recycling of all covered products.
(iv)A description of how the PRO will minimize disposal of covered products collected by the PRO.
(v)A description of how the PRO will prioritize, to the extent feasible, the use and development of sorting, repair, and recycling facilities located closer to the point of collection to minimize transportation-related emissions and increase accountability for the ultimate disposition of the covered products.
(vi)A description of the annual assessment the PRO will conduct and the metrics it will use to determine how collection, sorting, and transportation outcomes aligned with projections.
(vii)A description of how the plan will provide incentive payments, grants, and market development investments to support the infrastructure necessary to effectively implement the plan, including how incentive payments, grants, and market development investments will prioritize infrastructure closer to the point of generation pursuant to clause (v).
(viii)A description of how the actions taken pursuant to clause (vii) will ensure that covered products are reused or recycled and have responsible and economically viable end markets.
(g)A comprehensive statewide education and outreach program designed to educate consumers and promote participation in the program offered by the PRO. At a minimum, the comprehensive statewide education and outreach program shall include all of the following:
(1)A description of the education and communications for strategy being implemented to effectively promote participation in the stewardship program and provide the information necessary for effective participation by consumers, retailers, distributors, wholesalers, local jurisdictions, and others.
(2)A joint internet website in coordination with all other PROs, as applicable, that publicizes the location of collection sites and provides information to consumers on how to drop off covered products at the free and convenient network of collection sites offered by the PRO, including any information reasonably necessary to safely and conveniently access the collection, repair, and recycling services offered by the PRO.
(3)Signage that is prominently displayed and easily visible.
(4)All signage and materials required for collection sites by the PRO, and the method by which collection sites can access replacement materials at no cost to the collection site.
(5)A description of efforts to support participation by all California communities, including a description of efforts to communicate with consumers in languages other than English.
(6)Promotional materials or activities, or both, that explain the purpose of the PRO and the means by which it is being carried out.
(7)A description of how the PRO will encourage users to separate products that are not covered products from covered products, when appropriate, before submitting the covered products to an authorized collection site or mail-back program.
(8)Materials designed to inform third-party sellers on online platforms of their duty to comply with the law and how to join the PRO.
(9)Information to the public on secondhand markets and the benefits of reuse, including repair.
(10)(A)The statewide education and outreach program shall promote the safe and proper management of covered products, including information on where consumers can purchase repaired and reused covered products. This includes education and training for authorized collectors to incentivize domestic resale of usable covered products.
(B)The statewide education and outreach program shall not promote the disposal of covered products in a manner inconsistent with the services offered by the plan.
(C)The statewide education and outreach plan shall include information for consumers about how to avoid improper disposal of covered products.
(h)A description of the strategies, goals, and metrics the PRO will use to annually assess and evaluate the efficacy of the comprehensive statewide education and outreach program.
(i)A description of how the PRO will coordinate with other PROs to avoid confusion to the public regarding program activities, including, but not limited to, education and outreach, including establishing point-of-sale messaging, a joint website, and toll-free telephone number for purposes of providing information on the program.
(j)Coordination with, and a description of the efforts and methods used to coordinate activities with, all of the following entities who are responsive to a request from the PRO:
(1)Other PROs.
(2)Existing collection, reuse, and recycling programs.
(3)Community-based organizations, including nonprofit thrift stores as described in Section 6363.3 of the Revenue and Taxation Code, that contact the PRO and that are qualified to run or support collection events.
(k)A contingency plan in the event the plan expires or is revoked. The contingency plan shall guarantee that the contracts, financial data, and other necessary authority and assets to operate the program shall vest in a trustee approved by the department. The trustee shall operate the most recently approved plan, subject to the direction of the department, until such time as a new plan is approved. Upon plan expiration or revocation of the plan, the balance of the PROs operating reserves collected pursuant to paragraph (4) of subdivision (b) shall be transferred to the control of the trustee within five calendar days. All documents, digital records, contracts, and files related to the operation of the plan shall be transferred to the control of the trustee within five calendar days.
(l)Develop a program to support laundries for laundering covered products that includes funding for technology that reduces water consumption and improves microfiber and microplastic filtration.
(m)A description of how the plan will address the presence of PFAS and other chemicals regulated under Chapter 6.6 (commencing with Section 25249.5) of Division 20 of the Health and Safety Code and Chapter 12.5 (commencing with Section 108945) of, and Chapter 13.5 (commencing with Section 108970) of, Part 3 of Division 104 of the Health and Safety Code, including, but not limited to, the actions and investments needed to avoid contamination in the recycling process and available end markets for recycled material that cannot be remanufactured into textiles or textile articles in California.
(n)Develop strategies to address design challenges for covered products, including, but not limited to, compostability, reduction and removal of harmful chemicals, microfiber and microplastic shedding, and mixed material blends.
(o)A description of how the PRO will minimize the negative environmental and human health impacts of all operations associated with the plan, including impacts from collected covered products exported outside of California.
(p)A process by which the financial activities of the PRO or individual producers that are related to implementation of the plan will be subject to an independent audit consistent with generally accepted accounting principles (GAAP).
42984.11.(a)A producer of a covered product sold, offered for sale, imported, or distributed in or into the state shall achieve the performance standards pursuant to subdivision (c) of Section 42984.10.
(b)After March 1, 2032, a producer of a covered product sold, offered for sale, imported, or distributed in or into the state shall achieve the performance standards adopted by the department pursuant to Section 42984.19.
42984.12.(a)A PRO shall review its plan at least every five years after approval by the department and determine whether revisions to the plan are necessary.
(b)If a PRO determines that revisions to the plan are necessary, the PRO shall submit to the department a revised plan for review and approval employing the procedures set forth in Section 42984.8. The stewardship organization shall submit the revised plan to the department pursuant to this subdivision at least 12 months prior to the review deadline outlined in subdivision (c). The revised plan shall include a cover letter that summarizes the revisions to the plan within 90 days of the review deadline outlined pursuant to subdivision (a).
(c)If a PRO determines that no revisions to the plan are necessary, the PRO shall send a letter to the department 12 months prior to the review deadline outlined in subdivision (a), explaining that the PRO has reviewed the plan and determined that no revisions are needed. The department may disapprove the PROs determination within 30 days of receipt of that determination if the department concludes that the PRO cannot implement the objectives of this chapter without revising the plan. If the department disapproves the PROs determination, the PRO shall submit to the department a revised plan for review and approval employing the procedures set forth in Section 42984.8. The PRO shall submit the revised plan pursuant to this subdivision within 60 days of receipt of the departments disapproval, unless the department determines that additional time is needed.
5.Financial Provisions 42984.13.(a)Each PRO shall pay all administrative and operational costs associated with establishing and implementing the program in which it participates, including, but not limited to, the cost of collection, transportation, sorting, repairing, recycling, and the safe and proper management of covered products.
(b)A PRO shall establish a method for fully funding the PRO in a manner that distributes the programs costs among participating producers that reflects sales volumes and the eco-modulated fee criteria included in the plan pursuant to Section 42984.10. The funding mechanism shall demonstrate adequate funding for all administrative and operational costs of the program, to be borne by participating producers, and shall distribute participating producers costs in consideration of the cost of managing their specific covered products according to the approved plan.
(c)Within nine months of the effective date of the regulations, the department shall notify each PRO of its estimated regulatory costs as the criteria for those costs are defined in the regulations adopted pursuant to Section 42984.2, which includes full personnel costs, related to implementing and enforcing this chapter. This shall include the actual reasonable costs associated with regulation development pursuant to Section 42968.2 and other startup activities prior to plan submittal and approval.
(d)The PRO shall, on a schedule determined by the department, pay the department fees to cover the departments incurred costs as described in subdivision (c). The fees shall not exceed the departments actual and reasonable regulatory costs to implement and enforce this chapter.
(e)(1)The department shall deposit all moneys received from a PRO pursuant to this section into the Textile Stewardship Recovery Fund, which is hereby established in the State Treasury.
(2)Upon appropriation by the Legislature, moneys in the Textile Stewardship Recovery Fund shall be expended by the department to implement and enforce this chapter, as well as to reimburse any outstanding loans made from other funds used to finance regulation, development, and startup costs of the departments activities pursuant to this chapter.
(3)The money in the Textile Stewardship Recovery Fund shall not be expended for any other purpose.
42984.14.(a)Upon approval of the PROs plan, the PRO shall charge each participant producer annual fees that are eco-modulated as described in the plan. The intent of the eco-modulated fee is to incentivize design choices that facilitate the achievement of goals as outlined in the plan, including reuse, repair, and recycling through reduced fees, while using malus fees to disincentivize practices and materials incongruent with the plan. The PRO shall consider existing producer collection, repair, reuse, and recycling programs in developing the eco-modulated fee structure.
(b)The PRO shall account for the costs to ensure each covered product and covered product category meet the requirements of the chapter, including minimization of environmental and public health impacts along the entire supply chain of covered products or covered product category.
6.Records, Audits, and Reports 42984.15.(a)A PRO shall keep board minutes, books, and records that clearly reflect the activities and transactions of the PRO.
(b)A PRO shall include in its plan a process by which the financial activities of the organization or individual producers that are related to implementation of the plan will be subject to an independent audit consistent with generally accepted accounting principles (GAAP), which shall be reviewed by the department.
(c)The department may audit the PRO or individual producer annually.
(d)Failure of a PRO or producer, or their respective agent who holds records, to produce documents or data that is requested by the department, required to be collected or generated to carry out operation of the plan in the form and manner determined by the department, as part of a department audit, or review of a third-party audit, constitutes a violation of this chapter.
42984.16.(a)A PRO shall retain an independent public accountant, certified in the United States, to annually audit the accounting books of the PRO. The department shall review the independent certified public accountant audit for compliance with this chapter and consistency with the PROs plan and annual report, submitted pursuant to this chapter. After the department conducts its own audit, the department shall notify the PRO of any conduct or practice that does not comply with this chapter or of any inconsistencies identified in the audit. The PRO may obtain copies of the departments audit, including proprietary information contained in the departments audit, upon request, and withhold from disclosure confidential proprietary information to the extent allowed under Section 1040 of the Evidence Code and Section 7929.000 of the Government Code. The items submitted to the department as part of the independent audit shall include:
(1)Financial statements audited in accordance with generally accepted accounting principles (GAAP).
(2)An audit of the PROs compliance with this chapter.
(3)An audit of the PROs adherence to, execution of, and consistency with its plan.
(b)The PRO shall include the independent audit in its annual report submitted to the department pursuant to Section 42984.17 commencing within 18 months of plan approval by the department. The department shall review the audit for compliance with this chapter and consistency with the PROs plan.
42984.17.A PRO shall annually submit to the department, in the form and manner and by the date determined by the department, an annual report and make that report publicly available on the PROs internet website. The report shall include at minimum, all of the following information for the preceding calendar year unless otherwise specified:
(a)The PROs costs, according to the cost categories established in the plan, and revenues.
(b)A summary of any anticipated changes to allocations in cost categories for the next calendar year.
(c)Any changes to the distribution of a participating producers costs.
(d)The amounts of the eco-modulated fees based on the criteria established pursuant to subdivision (b) of Section 42984.14 and the PROs evaluation of the effectiveness of the eco-modulated fees.
(e)An updated list of producers participating in the plan and an updated list of the names and contact information, including email address, telephone number, and physical and mailing addresses of producers and brands of covered products covered under the plan.
(f)A list of the PROs collection sites, by name, location, and type.
(g)(1)The amount of covered products sold in or into the state by the producers covered by the PROs plan.
(2)The amount described in paragraph (1) shall be broken down by fiber type category and Harmonized Tariff Schedule of the United States (HTS) number.
(h)The total weight of covered products, respectively, that were collected, broken down by fiber type categories.
(i)The total weight of covered products, by category, that were collected and deemed reusable by each respective authorized collector and authorized sorter.
(j)A list of each authorized sorter, authorized repair business, and covered product recycling facility used by the PRO, including both of the following:
(1)Name and location.
(2)Total weight of covered products handled by each location.
(k)The total weight and number of covered products sold in or into the state attributed to a producer, who is a registered participant of the PROs plan, which are collected in the state and reused or recycled by the PRO, including a description of the methodology and information used to determine and calculate these values.
(l)A complete accounting of the ultimate disposition of all covered products collected by the PRO, including the total weight of covered products that were repaired and recycled.
(m)Metrics and a description of the progress toward attaining the performance standards included in the plan.
(n)A description of methods used to collect, transport, repair, and recycle covered products by the PRO, including a description of all of the following:
(1)How the PRO handled and managed covered products according to the waste hierarchy as defined in Section 40051.
(2)How the PRO maximized reuse and recycling of all covered products.
(3)How the PRO minimized disposal of all covered products collected by the PRO.
(4)Results of the PROs assessment of the efficacy of the collection, sorting, and transportation process.
(o)A description of how the PRO provided incentive payments, grants, and market development investments to support the infrastructure necessary to effectively implement the plan, including how incentive payments, grants, and market development investments prioritized infrastructure closer to the point of generation.
(p)A description of outreach efforts and education, including, but not limited to, the PROs evaluation of the efficacy of the comprehensive statewide education and outreach program pursuant to subdivision (g) of Section 42984.10.
(q)A description of how the PRO coordinated with other PROs and entities pursuant to subdivision (j) of Section 42984.10.
(r)A report on activities the PRO has undertaken to prioritize the use of sorting and recycling facilities located closer to the point of generation to minimize transportation emissions and increase accountability for the ultimate disposition of collected covered products.
(s)An analysis of whether the PRO met performance standards established by the PRO pursuant to subdivision (c) of Section 42984.10 or by the department pursuant to Section 42984.19.
(t)A description of how the PRO addressed the presence of PFAS and other chemicals regulated under Chapter 6.6 (commencing with Section 25249.5) of Division 20 of the Health and Safety Code and Chapter 12.5 (commencing with Section 108945) of, and Chapter 13.5 (commencing with Section 108970) of, Part 3 of Division 104 of the Health and Safety Code, including, but not limited to, the actions taken and investments made to avoid contamination in the recycling process, and the availability of end markets for recycled material that could not be remanufactured into textiles or textile articles in California.
(u)Any other information deemed relevant by the PRO for the department to determine compliance with the approved plan.
(v)Any other information required by regulations adopted pursuant to Section 42984.2.
42984.18.(a)No later than 120 days after the date the department receives the annual report submitted by a PRO pursuant to Section 42984.17, the department shall notify the PRO if the annual report is compliant or noncompliant.
(b)If the department determines that the annual report is noncompliant due to failure to meet the requirements of this chapter, the department may require the resubmittal of the annual report or take enforcement action.
7.Department Responsibilities42984.19.After March 1, 2032, the department may establish, review, and may adjust performance standards and the dates by which they are required to be achieved based on information included in the plan and annual reports, other information provided by the PRO, department waste characterization studies, needs assessment, and economic and any other relevant information, as determined by the department.
8.Enforcement and Civil Penalties42984.20.(a)Within 12 months of the effective date of regulations pursuant to Section 42984.2, and on or before July 1 of each year thereafter, the department shall post on its internet website a list of producers that are in compliance with this chapter. The department shall list, as appropriate, the reported brands of covered products for each producer.
(b)A producer that is not listed on the departments internet website pursuant to subdivision (a) that demonstrates compliance with this chapter before the next list is posted by the department may either be added to the internet website or be provided a certification letter from the department stating that the producer of a covered product is in compliance with this chapter. The departments list of compliant entities shall be available on the departments internet website in a machine-readable format.
(c)(1)A retailer, importer, distributor, or online marketplace shall monitor the departments internet website where compliant producers are posted, as provided in subdivision (a), to determine if a producer, brand, or covered product is in compliance with this chapter for that producer of covered products.
(2)Except as provided in subdivision (d), on and after the date a plan is approved by the department pursuant to Section 42984.8, a retailer, importer, distributor, or online marketplace shall not sell, distribute, offer for sale, or import a covered product in or into the state for sale in the state unless the producer of the covered product is listed as in compliance pursuant to this section for that brand and covered product.
(d)(1)Notwithstanding paragraph (2) of subdivision (c), a retailer, importer, distributor, or online marketplace may sell, offer for sale, import, or distribute a covered product if the retailer, importer, distributor, or online marketplace has fulfilled the obligations for those covered products which the retailer, importer, distributor, or online marketplace sells, offers for sale, imports, or distributes pursuant to paragraph (6) of subdivision (s) of Section 42984.3.
(2)Notwithstanding paragraph (2) of subdivision (c), a retailer, importer, distributor, or online marketplace may sell, offer for sale, import, or distribute a covered product if, on the date the retailer or distributor sells or offers for sale the covered product in or into the state, the producer, brand, or covered product was listed as compliant on the departments internet website.
(3)Notwithstanding paragraph (2) of subdivision (c), a retailer or distributor may, for any existing inventory in stock before the initial list was posted by the department pursuant to subdivision (a), sell or distribute that inventory for sale in or into the state.
(e)(1)If the department determines a producer is not in compliance with this chapter, the department shall remove the producer, along with its brands and covered products, from the list of compliant producers posted on the departments internet website pursuant to subdivision (a).
(2)The department shall list on its internet website a producer, along with its brands and covered products, if the department subsequently determines that the producer is in compliance with this chapter.
42984.21.(a)An administrative civil penalty up to the following amounts may be administratively imposed by the department on any person who is in violation of any provision of this chapter:
(1)Ten thousand dollars ($10,000) per day.
(2)Fifty thousand dollars ($50,000) per day if the violation is intentional or knowing.
(b)In assessing or reviewing the amount of a civil penalty imposed pursuant to subdivision (a) for a violation of this chapter, the department or the court shall consider all of the following:
(1)The nature and extent of the violation.
(2)The number and severity of the violation or violations.
(3)The economic effect of the penalty on the violator.
(4)Whether the violator took good faith measures to comply with this chapter and the period of time over which these measures were taken.
(5)The willfulness of the violators misconduct.
(6)The deterrent effect that the imposition of the penalty would have on both the violator and the regulated community.
(7)Any other factor that justice may require.
(c)The department shall establish, through regulations adopted pursuant to Section 42984.2, a process that shall include an informal hearing process by which the penalties will be assessed.
(d)The department shall deposit all penalties collected pursuant to this section into the Textile Stewardship Recovery Penalty Account, which is hereby created in the Textile Stewardship Recovery Fund. Upon appropriation by the Legislature, moneys in the Textile Stewardship Recovery Penalty Account shall be available for expenditure by the department on activities related to the collection and recycling of covered products, grants for related purposes, and the administration and enforcement of this chapter.
(e)The Administrative Adjudication Bill of Rights, as set forth in Chapter 4.5 (commencing with Section 11425.10) of Part 1 of Division 3 of Title 2 of the Government Code, applies to hearings conducted under this chapter and mandates minimum due process.
42984.22.Upon a written finding that a producer, PRO, manufacturer, distributor, retailer, or importer site has not met a material requirement of this chapter, in addition to any other penalties authorized under this chapter, the department may take one or both of the following actions to ensure compliance with the requirements of this chapter, after affording the entity a reasonable opportunity to respond to, or rebut, the finding, take any of the following actions to ensure compliance with the requirements of this chapter:
(a)Revoke the PROs plan approval or require the PRO to resubmit the plan.
(b)Require additional reporting relating to compliance with the material requirement of this chapter that was not met.
42984.23.(a)A producer, PRO, manufacturer, distributor, retailer, or importer shall do both of the following:
(1)Upon request, provide the department with reasonable and timely access, as determined by the department, to its facilities and operations, as necessary to determine compliance with this chapter.
(2)Upon request, within 14 days, 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 five years. All reports and records provided to the department pursuant to this chapter shall be provided under penalty of perjury.
(c)(1)The department may impose administrative civil penalties pursuant to Section 42984.21 on a producer, PRO, manufacturer, distributor, retailer, or importer that fails to provide the department with the access required pursuant to this section.
(2)The department may post a notice on the departments internet website that is maintained pursuant to Section 42984.20 that a producer that fails to provide the department with access pursuant to this section, along with the producers brands and covered products, is no longer in compliance with this chapter.
42984.24.After the time for judicial review under Section 11523 of the Government Code has expired, the department may apply to the small claims court or superior court, depending on the jurisdictional amount and any other remedy sought, in the county where the penalties, restitution, or other remedy was imposed by the department, for a judgment to collect any unpaid civil penalties or restitution or to enforce any other remedy provided by this chapter. The application, which shall include a certified copy of the final agency order or decision, shall constitute a sufficient showing to warrant the issuance of the judgment. The court clerk shall enter the judgment immediately in conformity with the application. The judgment so entered shall have the same force and effect as and shall be subject to all the provisions of law relating to a judgment in a civil action and may be enforced in the same manner as any other judgment of the court. The court shall make enforcement of the judgment a priority.
9.Antitrust Immunity42984.25.(a)Except as provided in subdivision (c), an action specified in subdivision (b) that is taken by a PRO 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) applies to all of the following actions taken by a PRO:
(1)The creation, implementation, or management of a plan approved by the department pursuant to Article 4 (commencing with Section 42984.8) and the determination of the types or quantities of covered products repaired, reused, recycled, or otherwise managed pursuant to a plan.
(2)The determination of the cost and structure of an approved plan.
(3)The establishment, administration, collection, or disbursement of a charge associated with funding the implementation of this chapter.
(c)Subdivision (a) does not apply to an agreement that does any of the following:
(1)Fixes a price of or for covered products, except for an agreement related to costs or charges associated with participation in a plan approved by the department and otherwise in accordance with this chapter.
(2)Fixes the output or production of covered products.
(3)Restricts the geographic area in which, or customers to whom, covered products will be sold.
10.County Authority42984.26.This chapter does not grant a city, county, city and county, special district, or joint powers authority any new authority over solid waste hauling operations pursuant to a franchise agreement and does not affect, limit, or abrogate in any manner any franchise granted to a solid waste enterprise for the handling of solid waste.
11.Online Marketplace42984.27.An online marketplace shall annually do the following in accordance with regulations adopted by the department pursuant to Section 42984.2:
(a)(1)Notify the department and the PRO of all third-party sellers with sales of covered products over one million dollars ($1,000,000) sold on their online marketplace in the preceding year and provide all required information. If a third-party seller does not have any sales in California during the preceding year then the online marketplace shall not provide their information to the department.
(2)The amount of sales described in paragraph (1) includes only those transactions through the online marketplace for which payment is processed by the online marketplace directly or through its payment processor.
(b)Provide all third-party sellers described in (a) with the information on requirements of law as provided by the PRO pursuant to paragraph (8) of subdivision (g) of Section 42984.10.
SEC. 2.The Legislature finds and declares that Section 1 of this act, which adds Sections 42984.8 and 42984.16 to the Public Resources Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
It is in the best interest of the public to provide limited protection of certain financial and sales data of program participants, in order to protect the interests of businesses and the privacy of their data regarding their customers.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
This act may be known, and shall be cited, as the Responsible Textile Recovery Act of 2024.
42984.05.(a)The intent of this chapter is to establish a statewide extended producer responsibility program for apparel and textile articles that emphasizes repair and reuse, and minimizes generation of hazardous waste, generation of greenhouse gases, environmental impacts, environmental justice impacts, and public health impacts.
(b)Due to distinct market elements associated with the textile and apparel industry that can utilize direct-to-consumer transactions from an overseas manufacturer to a consumer, the provisions of this chapter associated with online marketplaces are intended to be unique to this sector.
42984.1.(a)The purpose of this chapter is to increase the amount of postconsumer apparel and textile articles that are diverted from landfills and reused, repaired, and recycled into secondary products or otherwise managed in a manner that is consistent with the states hierarchy for waste management practices pursuant to Section 40051.
(b)It is the purpose of this chapter that any producer, regardless of whether that producer is domiciled in California, who sells, offers for sale, or distributes a covered product into the state shall be responsible for complying with this chapter.
42984.2.The department, acting in accordance with Article 1 (commencing with Section 11340) to Article 8 (commencing with Section 11350), inclusive, of the Administrative Procedure Act, as set forth in Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, shall adopt regulations to implement this chapter with an effective date of no earlier than July 1, 2028. The departments regulations shall encourage recycling that minimizes generation of hazardous waste, generation of greenhouse gases, environmental impacts, environmental justice impacts, and public health impacts.
42984.3.(a)(1)Apparel means clothing and accessory items intended for regular wear or formal occasions and outdoor activities. For purposes of this chapter apparel includes only undergarments, shirts, pants, skirts, dresses, overalls, bodysuits, costumes, vests, dancewear, suits, saris, scarves, tops, leggings, school uniforms, leisurewear, athletic wear, sports uniforms, swimwear, formal wear, onesies, bibs, footwear, handbags, backpacks, knitted and woven accessories, jackets, coats, snow pants, ski pants, and everyday uniforms for workwear.
(2)Apparel does not include any of the following:
(A)Personal protective equipment or clothing items for use by the United States military.
(B)Personal protective equipment worn to protect the wearer from health or environmental hazards.
(C)Reusable products designed to collect and absorb urine and feces, or reusable products regulated by the United States Food and Drug Administration that are designed to collect and absorb menstruation or vaginal discharge.
(b)Authorized collector means a person or entity that has entered into an agreement with a PRO to collect covered products.
(c)Authorized sorter means a person or entity that has entered into an agreement with a PRO to sort covered products collected by authorized collectors.
(d)Authorized repair business means a person or entity that has entered into an agreement with a PRO to repair covered products for resale after collection by an authorized collector or after sorting by an authorized sorter.
(e)Brand means a trademark, including both a registered trademark and an unregistered trademark, a logo, a name, a symbol, a word, an identifier, or a traceable mark that identifies a covered product and identifies the owner or licensee of the brand.
(f)Collection box means an unattended container, box, receptacle, or similar device used for soliciting and collecting donations of covered products, including apparel or textile articles.
(g)Collection site means a permanent or temporary location operated by an authorized collector at which covered products are collected and prepared for transport in accordance with the requirements of this chapter.
(h)Consumer means an owner of a covered product, including a person, business, corporation, limited partnership, nonprofit organization, or governmental entity, and includes the ultimate purchaser, owner, or lessee of a covered product, who is not, as to that covered product, the distributor, importer, producer, recycler, retailer, or PRO.
(i)(1)Covered product means an apparel or textile article.
(2)Covered product does not include any of the following:
(A)A product covered under the Used Mattress Recovery and Recycling Act (Chapter 21 (commencing with Section 42985)).
(B)A product covered under the Electronic Waste Recycling Act of 2003 (Chapter 8.5 (commencing with Section 42460)).
(C)A product covered under the Product Stewardship for Carpets law (Chapter 20 (commencing with Section 42970)).
(D)An automated, motorized, battery, or manual window covering that is operated using an electric motor or other automated system, or manually adjusted by pulling cords or lifting mechanisms.
(j)Department means the Department of Resources Recycling and Recovery or a successor agency.
(k)Distributor means a company that has a contractual relationship with one or more producers to market and sell covered products to a retailer.
(l)Importer means either of the following:
(1)A person 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 covered product that is sold, distributed for sale, or offered for sale in or into the state that was manufactured or assembled by a company outside of the United States.
(2)A person importing into the state for sale, distributing for sale, or offering for sale in the state a covered product that was manufactured or assembled by a company physically located outside of the state.
(m)Local jurisdiction means a city, county, city and county, or a regional agency formed pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code or Article 3 (commencing with Section 40970) of Chapter 1 of Part 2 of this code, or a special district that provides solid waste collection services.
(n)Mail-back program means a method of collecting covered products using prepaid, preaddressed mailing envelopes, boxes, or other means that are reusable, recyclable, or compostable.
(o)Needs assessment means a needs assessment prepared pursuant to Section 42984.6.
(p)Nonprofit thrift store has the same meaning as set forth in Section 6363.3 of the Revenue and Taxation Code.
(q)Online marketplace has the same meaning as set forth in Section 1749.8 of the Civil Code.
(r)Person has the same meaning as set forth in Section 40170.
(s)(1)Producer means a person who manufactures a covered product and who owns or is the licensee of the brand or trademark under which that covered product is sold, offered for sale, or distributed for sale in or into the state.
(2)If there is no person in the state who is the producer for purposes of paragraph (1), the producer of the covered product is the owner of a brand or trademark or, if the owner is not in the state, the exclusive licensee of a brand or trademark under which the covered product is sold, imported for sale, offered for sale, or distributed for sale in or into the state, regardless of whether the trademark is registered. For purposes of this subdivision, an exclusive licensee is a person holding the exclusive right to use a trademark or brand in the state in connection with the manufacture, sale, or distribution for sale in or into the state of the covered product.
(3)If there is no person in the state who is the producer for purposes of paragraph (1) or (2), then the producer of the covered product is the person that imports the covered product into the state for sale or distribution.
(4)If there is no other person in the state who is the producer for purposes of paragraphs (1), (2), or (3), the producer of the covered product is the distributor, retailer, or wholesaler who sells the product in or into the state.
(5)For the purposes of this chapter, the sale of a covered product shall be deemed to occur in the state if the covered product is delivered to the consumer in the state.
(6)This chapter does not prohibit a person who manufactures, distributes, imports, offers for sale, or sells the covered product from assuming some or all of the duties and liabilities of the producer of the covered product and relieving from those duties and liabilities any other person who manufactures, distributes, imports, offers for sale, or sells the covered product.
(7)Producer does not include a seller that only sells secondhand covered products.
(8)Producer does not include a seller with less than one million dollars ($1,000,000) in annual aggregate global turnover adjusted annually pursuant to the California Consumer Price Index for All Urban Consumers for all items, as determined by the Department of Industrial Relations. The aggregate global turnover of a producer within the meaning of this chapter shall be calculated by adding together the respective turnovers of all of the following:
(A)The producer concerned.
(B)Those entities in which the producer is concerned, directly or indirectly, as follows:
(i)Owns more than one-half the capital or business assets.
(ii)Has the power to exercise more than one-half the voting rights.
(iii)Has the power to appoint more than one-half the members of the supervisory board, the administrative board, or bodies legally representing the undertakings.
(iv)Has the right to manage the entities affairs.
(C)Those entities that have in the producer concerned the rights or powers listed in subparagraph (B).
(D)Those entities in which an entity referred to in subparagraph (C) has the rights or powers listed in subparagraph (B).
(E)Those entities in which two or more entities as referred to in subparagraphs (A) to (D), inclusive, jointly have the rights or powers listed in subparagraph (B).
(t)Producer responsibility organization or PRO means an organization that is exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986, is formed for the purpose of implementing a plan to meet the requirements of this chapter, and is approved by the department.
(u)Producer responsibility plan or plan means the plan developed by the PRO for the collection, transportation, repair, recycling, and the safe and proper management of covered products pursuant to subdivision (a) of Section 42984.8 and submitted to the department for approval pursuant to subdivision (b) of Section 42984.8.
(v)Recycle or recycling has the same meaning as set forth in paragraphs (1), (2), and (3) of subdivision (aa) of Section 42041. To be considered recycled, covered products shall be recycled into new, reused, or reconstituted products.
(w)Repair means any alteration or improvement of damaged covered product deemed worth the cost of repair by criteria established by the plan, including, but not limited to, any of the following:
(1)Redesigning and repurposing.
(2)Mending rips, holes, seams, and hems.
(3)Removing and repairing surface damage, such as pilling, stain removal, or abrasion.
(4)Securing and reattaching buttons and other fastenings.
(5)Dyeing, redyeing, overdyeing, or printing of images on covered products.
(6)Preparation for reuse and resale.
(x)Responsible end market has the same meaning as set forth in subdivision (ad) of Section 42041.
(y)Retailer means a person who sells or offers for sale a covered product in or into the state to a person through any means, including, but not limited to, sales outlets, catalogs, the telephone, the internet, or any electronic means.
(z)Reuse means the resale of a collected covered product to a consumer for its original intended use with or without repair.
(aa)Secondhand covered product means any covered product that has been previously owned by a consumer.
(ab)Secondhand markets means a retailer who sells secondhand covered products, including, but not limited to, thrift stores, collection box operators, online resale platforms, and flea markets.
(ac)Sell has the same meaning as set forth in Section 6006 of the Revenue and Taxation Code.
(ad)Stewardship program means a program established by a PRO pursuant to this chapter for the free, convenient, and safe collection, transportation, repair, recycling, and otherwise proper management of covered products.
(ae)(1)Textile article means an item customarily used in households or businesses that are made entirely or primarily from a natural, artificial, or synthetic fiber, yarn, or fabric. For purposes of this chapter, textile article includes only blankets, curtains, fabric window coverings, knitted and woven accessories, towels, tapestries, bedding, tablecloths, napkins, linens, and pillows.
(2)Textile article does not include single-use products including paper towels, paper napkins, toilet paper, facial tissue, and wet or dry wipes.
(af)Third-party seller has the same meaning as set forth in Section 1749.8 of the Civil Code.
2.Producers42984.4.(a)(1)Producers of covered products shall form and join a PRO for the purposes of complying with this chapter. The governing body of the PRO shall submit an application to the department by January 1, 2026, describing how the PRO meets the requirements to be an approved PRO pursuant to this chapter. If the department approves the PRO, the PRO shall proceed to carry out the requirements of this chapter. If applications for more than one PRO are submitted to the department, the department shall determine which proposed PRO can most effectively implement this chapter.
(2)The department shall, by, March 1, 2026, approve a PRO that meets the requirements of this chapter and both of the following:
(A)The PRO has a governing board consisting of producers that are diverse in size and type and that represent the diversity of covered products placed in the market by those entities. The governing board may include ex officio members involved in the collection, sorting, repair, reuse, recycling, or management of covered products.
(B)The PRO demonstrates that it has adequate financial responsibility and financial controls in place, including fraud prevention measures and an audit schedule, to ensure proper management of funds.
(3)All producers of covered products shall, by July 1, 2026, join the PRO approved by the department.
(4)After January 1, 2035, upon the determination of the director that an additional PRO would be beneficial in satisfying the requirements of this chapter, the department may approve additional PROs that meet the requirements of this chapter and that meet all of the following requirements:
(A)The proposed PRO submits to the department, and agrees to cover the departments reasonable costs to review, a petition to establish a new PRO.
(B)The proposed PRO is composed of a sufficient number of producers to jointly comply with the requirements of this chapter.
(C)The proposed PRO agrees to cover the costs of all of the provisions of this chapter applicable to the proposed PRO and its participant producers.
(b)Each producer covered under a PRO shall register with that PRO in accordance with the procedures and requirements established by that PRO and shall comply with those procedures and requirements.
(c)Upon approval of a plan pursuant to Section 42984.8, or commencing July 1, 2030, whichever is sooner, a producer shall be subject to penalties under Section 42984.21 unless all of the following are met:
(1)The producer is a participant of the PRO.
(2)All covered products are accounted for in the plan.
(3)If an entity does not meet the definition of a producer and is not subject to this chapter before January 1, 2030, but, at any point, after January 1, 2030, meets the definition of a producer, the producer shall, within 90 days, become a participant of the PRO and comply with the requirements of this chapter.
(d)A producer is not in compliance with this chapter and is subject to penalties pursuant to this chapter if a covered product sold or offered for sale by the producer is not subject to an approved PRO plan that has been approved by the department pursuant to Section 42984.8.
42984.5.(a)No later than 30 days after the effective date of the regulations implementing this chapter, individual producers or the PRO shall provide to the department, in a form and manner established by the department, a list of brands of covered products that each producer sells, distributes for sale, imports for sale, or offers for sale in or into the state.
(b)A producer or PRO shall update the list described in subdivision (a) and provide the updated list to the department on or before January 15 of each year or upon request of the department.
3.Producer Responsibility Organizations (PROs)42984.6.(a)(1)A PRO shall prepare the initial statewide needs assessment designed to determine the necessary steps and investment needed for covered products, to achieve the requirements of this chapter. Needs assessments, or components thereof, shall be updated every five years or as necessary to ensure the requirements of this chapter are met. An initial needs assessment for covered products shall be completed before the completion and approval of any producer responsibility plan for covered products. The PRO may select an independent third-party contractor to complete the needs assessment.
(2)A PRO shall cover the cost of developing any needs assessment and any update to a needs assessment.
(3)A PRO may prepare more than one needs assessment, with each assessment specific to one or more covered products subject to this chapter, or may prepare one comprehensive needs assessment that includes all covered products subject to this chapter.
(4)A PRO shall consult with the department and local jurisdictions when preparing the needs assessment.
(5)The initial needs assessment, and any updates, shall be submitted to the department by March 1, 2027. The department shall review and approve, conditionally approve, or disapprove the needs assessment as meeting the requirements of this chapter within 90 days of submission.
(6)If there is more than one PRO approved by the department at the time updated needs assessments are completed, then the approved PROs may collaborate on a single needs assessment.
(b)A needs assessment shall comply with all of the following:
(1)Be designed to inform the program budget and PRO plan.
(2)Include an evaluation of all of the following with respect to covered products and covered product categories:
(A)Existing scope and scale of annual covered products diverted to landfill in the state by type of covered product, material composition, and volume and annual covered product recovery diverted to reuse, repair, or recycling in the state or from the state by type of covered product, material composition, and volume.
(B)The current repair, reuse, recycling, collection, sorting, and hauling system in the state and the expanded access and additional repair, reuse, recycling, collection, sorting, disassembly, and hauling options needed to meet the requirements of this chapter.
(C)Current market conditions and the need to create responsible and economically viable end markets in the state, regionally, and globally.
(D)Existing state statutory provisions and funding sources related to market development and financial incentives to help achieve the states goals related to repair, reuse, recycling, collection, sorting, disassembly, and hauling.
(E)Consumer education needs and the methods by which the PRO can best reach consumers with educational messaging.
(F)Consumer behaviors to drive repair, reuse, and recycling and to achieve the requirements of this chapter.
(G)Funding needs and incentive mechanisms necessary to achieve the requirements of this chapter, including coverage of the operation of the stewardship program.
(H)Fee reduction or redistribution mechanisms necessary to achieve the requirements of this chapter, in a manner that equitably distributes the costs among participating producers that reflects production and sales volumes relevant to the California market. Fee reduction or redistribution mechanisms may consider existing producer collection, repair, reuse, and recycling programs that help achieve the purpose of this chapter.
(I)Actions and investments necessary to provide sufficient access to collection, recycling, composting, processing, and transportation to responsible and economically viable end markets.
(J)An evaluation of the availability or lack of availability of responsible end markets for recycled covered products, the need to incentivize reused products or recycled material market development, and the associated investments and actions needed to ensure that the covered products are reused or recycled and have responsible and economically viable and sufficient end markets.
(K)The needs assessment shall include an evaluation of the factors contributing to the presence of perfluoroalkyl and polyfluoroalkyl substances (PFAS) and other chemicals regulated under Chapter 6.6 (commencing with Section 25249.5) of Division 20 of the Health and Safety Code and Chapter 12.5 (commencing with Section 108945) of, and Chapter 13.5 (commencing with Section 108970) of, Part 3 of Division 104 of the Health and Safety Code, and the actions and investments needed to avoid contamination related to recycling. This shall include available environmental and public health data and an evaluation of the available end markets for recycled material that cannot be remanufactured into textiles or textile articles in California.
(L)Whether allowing more than one PRO would be beneficial in meeting the requirements of the chapter.
(M)Evaluate what factors will be important to successfully implement the eco-modulated fee structure required by subdivision (b) of Section 42984.10, and what associated data collection will be necessary as part of the plan.
(c)The department shall guide development of a needs assessment, which shall be developed by a PRO in consultation with a broad diversity of local jurisdictions, recycling service providers, and processors that reflect the different needs and challenges presented by managing different covered products through final disposition.
42984.7.(a)A PRO shall approve collection sites under its stewardship program that agree to comply with all applicable state, federal, or municipal laws, regulations, and rules and conditions adopted by the PRO.
(b)A PRO shall include as a collection site under its stewardship program any local jurisdiction that offers in writing to participate in the stewardship program and agrees to comply with any PRO requirements that are consistent with that PROs approved plan even if the minimum thresholds described in subdivision (d) of Section 42984.10, as applicable, have been achieved.
(1)A PRO shall include the local jurisdiction as a collection site in the stewardship program within 90 days of receiving the written offer to participate, confirming that the local jurisdiction will comply with any PRO requirements that are consistent with an approved plan, even if the minimum thresholds described in subdivision (d) of Section 42984.10, as applicable, have been achieved.
(2)The PRO shall not be required to respond to offers pursuant to this paragraph until the PROs plan has been approved by the department.
(c)A PRO may suspend or terminate a collection site that does not comply with all applicable state, federal, or municipal laws and regulations or adhere to the rules and conditions imposed by the PRO.
(d)A collection site shall be operated and managed to ensure that covered products are collected safely and handled in accordance with all applicable state, federal, and municipal laws and regulations and the rules and conditions of the plan. Authorized collectors and authorized sorters may divert reusable covered products for sale in secondhand markets.
(e)A PRO shall require all contractors to pay at least the state minimum wage.
(f)Each participant of a PRO with an approved plan shall comply with the requirements of this chapter. The PRO shall notify the department within 30 calendar days of any the following:
(1)The end of any three-month period in which the PRO unsuccessfully attempted to obtain a fee, records, or information from a participant producer, or received incomplete or incorrect records or information.
(2)The date a producer no longer participates in the PROs approved plan.
(3)Any instance of noncompliance by a participant producer.
4.Producer Responsibility Plan for Covered Products42984.8.(a)Within 12 months of the effective date of the regulations adopted by the department pursuant to Section 42984.2, a PRO shall develop and submit to the department a complete plan, in a form and manner determined by the department, in accordance with the requirements of this chapter, for the collection, transportation, repair, sorting, recycling, and the safe and proper management of covered products in the state. No PRO serving more than one producer may limit its stewardship plan for covered products to the covered products of the producers participating in that stewardship program.
(b)The department shall review the stewardship plan for compliance with this chapter and shall approve, disapprove, or conditionally approve the plan within 120 days of receipt of the plan.
(c)(1)If the department disapproves a plan submitted by a PRO, the department shall explain how the plan does not comply with this chapter and provide written notice to the PRO within 60 days of disapproval. The PRO may resubmit to the department a revised plan within 30 days of the date the written notice was issued, and the department shall review the revised plan within 60 days of resubmittal.
(2)If the department disapproves a revised plan submitted by a PRO, the department shall explain how the plan does not comply with this chapter and provide written notice to the PRO within 60 days of disapproval. The PRO shall then revise and resubmit the plan consistent with the departments direction within 30 days, otherwise the disapproval is final and the PRO and producers may be subject to penalties.
(3)By July 1, 2030, a PRO shall have a complete plan approved by the department and each producer shall be subject to an approved plan to be in compliance with this chapter.
(d)Within three months of approval by the department, a PRO shall begin to implement the approved plan.
(e)A PRO with an approved plan shall submit any proposed substantial change to the plan to the department for approval employing the procedures set forth in this section.
(f)The approved plan shall be a public record, except that financial or sales data reported to the department by the PRO is not a public record for purposes of the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and shall not be open to public inspection. The department may release financial or sales data in summary form only so the information cannot be attributable to a specific producer or distributor or to any other entity.
42984.9.The PRO shall fully implement the approved plan within 12 months of the departments approval of the plan pursuant to Section 42984.8.
42984.10.A plan for covered products shall be designed to accept and manage all postconsumer covered products and shall include all of the following:
(a)The names and contact information, including email address, phone number, and mailing and physical addresses, of producers and brands of covered products covered under the plan.
(b)(1)A description of the method to establish and administer a means for fully funding the PRO in a manner that distributes the PROs costs among the producers that are part of the stewardship organization using a per unit eco-modulated fee that reflects California sales volumes, existing producer collection, repair, reuse, and recycling programs that help achieve the purpose of this chapter, and the cost of reusing, repairing, recycling, or otherwise managing covered products pursuant to subdivision (a) of Section 42984.4.
(2)A five-year budget that establishes a funding level sufficient to operate the PRO in a prudent and responsible manner. The budget shall demonstrate how estimated revenues will cover all budgeted costs for each cost category.
(3)Budgeted costs shall include, but not be limited to, administrative costs, education and outreach costs, operational costs, capital costs, and a reserve to operate the PRO should there be unexpected events, such as losses of income, and large unbudgeted expenses in order to protect the recycling infrastructure the PRO relies upon in its plan, during any lapse in producer participation during the life of the program. The plan shall include a description of the types of activities related to each line-item cost category. The reserve cost category shall include a reserve level amount and description justifying the reserve level amount indicated.
(4)The PRO shall maintain reserve funds sufficient to operate the plan for no less than six months. If a new plan submitted by a PRO is approved by the department, the PRO shall establish its reserve and maintain the required reserve fund balance by the end of the second year of plan operation.
(5)Administrative costs shall include the departments actual and reasonable regulatory costs, which include full personnel costs, to implement and enforce this chapter as the criteria for all the costs that are defined in the regulations adopted pursuant to Section 42984.2. For the purposes of this paragraph, PRO implementation begins once the department approves a PROs plan, except the departments costs shall include actual regulatory development costs and other startup costs incurred prior to plan submittal and approval.
(c)Quantifiable five-year and annual performance standards and metrics unless or until the department publishes performance standards pursuant to Section 42984.19. The PRO shall amend its plan to meet or exceed the performance standards published by the department.
(d)A description of how the PRO will provide for a free and convenient dropoff or collection system for covered products, which shall include permanent collection sites and may include temporary collection sites and mail-back options, in each county of the state that meets both of the following requirements:
(1)Provides for a minimum of 10 permanent collection sites or one permanent collection site per 25,000 people, whichever is greater, except as provided below:
(A)A county with a population of 18,000 and under, as reported annually by the Department of Finance, shall have a minimum of three collection locations.
(B)A county with a population of between 18,001 and 50,000, inclusive, as reported annually by the Department of Finance, shall have a minimum of four collection locations.
(C)A county with a population between 50,001 and 100,000, inclusive, as reported annually by the Department of Finance, shall have a minimum of eight collection locations.
(2)Provides for a reasonable geographic spread of permanent collection sites and an explanation for the geographic spread.
(e)A description of how collection sites will be authorized and managed, including all of the following:
(1)A description of the process by which local jurisdictions can request to be a collection site pursuant to Section 42984.7.
(2)A description of how the PRO will provide to collection sites at no cost the appropriate containers for covered products, training, signage, safety guidance, and educational materials.
(3)An explanation of the process by which the PRO will provide for the transport of covered products at no cost from the collection sites to an authorized sorter, or directly to an authorized repair business, or recycling facility.
(4)A description of how collection sites will be allowed to divert collected covered products to secondhand markets for reuse. Any diversion by collection sites pursuant to this paragraph shall be consistent with the rules established pursuant to paragraph (5).
(5)A list of all proposed rules, conditions, and requirements for authorized collectors, authorized sorters, and authorized repair businesses, including a template proposed agreement for each of those types of entities, as applicable.
(6)A description of how the PRO will prioritize the use of secondhand markets and nonprofit thrift stores, as described in Section 6363.3 of the Revenue and Taxation Code, when establishing collection sites to meet the minimum requirements in subdivision (d).
(7)How collection sites will be instructed to identify and reject counterfeit covered products.
(f)A description of the process by which collected covered products will be sorted, transported, processed, reused, and recycled following collection at collection sites, including all of the following:
(1)A description of how covered products will be handled and managed according to the waste management practices pursuant to Section 40051, including both of the following:
(A)(i)How the plan will prioritize the reuse, including repair, of collected covered products.
(ii)Products designed for use by infants and children under 12 years of age with components that pose a risk of detachment, thus creating choking hazards, or containing components subject to Part 1303 (commencing with Section 1303.1) and Part 1307 (commencing with Section 1307.1) of Title 16 of the Code of Federal Regulations, including, but not limited to, metallic, vinyl, or plastic snaps, zippers, grommets, closures, or appliques may be excluded from repair and reuse by the PRO.
(B)(i)How the plan will include the incentive payments, grants, and market development investments specified in clause (vii) to encourage reuse over recycling and other methods.
(ii)A description of how covered products will be sorted by authorized sorters, including a description of how the flow of covered products to and from authorized collectors, authorized sorters, authorized repair businesses, and recyclers will be tracked through final disposition.
(iii)A description of how the PRO will maximize the reuse and recycling of all covered products.
(iv)A description of how the PRO will minimize disposal of covered products collected by the PRO.
(v)A description of how the PRO will prioritize, to the extent feasible, the use and development of sorting, repair, and recycling facilities located closer to the point of collection to minimize transportation-related emissions and increase accountability for the ultimate disposition of the covered products.
(vi)A description of the annual assessment the PRO will conduct and the metrics it will use to determine how collection, sorting, and transportation outcomes aligned with projections.
(vii)A description of how the plan will provide incentive payments, grants, and market development investments to support the infrastructure necessary to effectively implement the plan, including how incentive payments, grants, and market development investments will prioritize infrastructure closer to the point of generation pursuant to clause (v).
(viii)A description of how the actions taken pursuant to clause (vii) will ensure that covered products are reused or recycled and have responsible and economically viable end markets.
(g)A comprehensive statewide education and outreach program designed to educate consumers and promote participation in the program offered by the PRO. At a minimum, the comprehensive statewide education and outreach program shall include all of the following:
(1)A description of the education and communications for strategy being implemented to effectively promote participation in the stewardship program and provide the information necessary for effective participation by consumers, retailers, distributors, wholesalers, local jurisdictions, and others.
(2)A joint internet website in coordination with all other PROs, as applicable, that publicizes the location of collection sites and provides information to consumers on how to drop off covered products at the free and convenient network of collection sites offered by the PRO, including any information reasonably necessary to safely and conveniently access the collection, repair, and recycling services offered by the PRO.
(3)Signage that is prominently displayed and easily visible.
(4)All signage and materials required for collection sites by the PRO, and the method by which collection sites can access replacement materials at no cost to the collection site.
(5)A description of efforts to support participation by all California communities, including a description of efforts to communicate with consumers in languages other than English.
(6)Promotional materials or activities, or both, that explain the purpose of the PRO and the means by which it is being carried out.
(7)A description of how the PRO will encourage users to separate products that are not covered products from covered products, when appropriate, before submitting the covered products to an authorized collection site or mail-back program.
(8)Materials designed to inform third-party sellers on online platforms of their duty to comply with the law and how to join the PRO.
(9)Information to the public on secondhand markets and the benefits of reuse, including repair.
(10)(A)The statewide education and outreach program shall promote the safe and proper management of covered products, including information on where consumers can purchase repaired and reused covered products. This includes education and training for authorized collectors to incentivize domestic resale of usable covered products.
(B)The statewide education and outreach program shall not promote the disposal of covered products in a manner inconsistent with the services offered by the plan.
(C)The statewide education and outreach plan shall include information for consumers about how to avoid improper disposal of covered products.
(h)A description of the strategies, goals, and metrics the PRO will use to annually assess and evaluate the efficacy of the comprehensive statewide education and outreach program.
(i)A description of how the PRO will coordinate with other PROs to avoid confusion to the public regarding program activities, including, but not limited to, education and outreach, including establishing point-of-sale messaging, a joint website, and toll-free telephone number for purposes of providing information on the program.
(j)Coordination with, and a description of the efforts and methods used to coordinate activities with, all of the following entities who are responsive to a request from the PRO:
(1)Other PROs.
(2)Existing collection, reuse, and recycling programs.
(3)Community-based organizations, including nonprofit thrift stores as described in Section 6363.3 of the Revenue and Taxation Code, that contact the PRO and that are qualified to run or support collection events.
(k)A contingency plan in the event the plan expires or is revoked. The contingency plan shall guarantee that the contracts, financial data, and other necessary authority and assets to operate the program shall vest in a trustee approved by the department. The trustee shall operate the most recently approved plan, subject to the direction of the department, until such time as a new plan is approved. Upon plan expiration or revocation of the plan, the balance of the PROs operating reserves collected pursuant to paragraph (4) of subdivision (b) shall be transferred to the control of the trustee within five calendar days. All documents, digital records, contracts, and files related to the operation of the plan shall be transferred to the control of the trustee within five calendar days.
(l)Develop a program to support laundries for laundering covered products that includes funding for technology that reduces water consumption and improves microfiber and microplastic filtration.
(m)A description of how the plan will address the presence of PFAS and other chemicals regulated under Chapter 6.6 (commencing with Section 25249.5) of Division 20 of the Health and Safety Code and Chapter 12.5 (commencing with Section 108945) of, and Chapter 13.5 (commencing with Section 108970) of, Part 3 of Division 104 of the Health and Safety Code, including, but not limited to, the actions and investments needed to avoid contamination in the recycling process and available end markets for recycled material that cannot be remanufactured into textiles or textile articles in California.
(n)Develop strategies to address design challenges for covered products, including, but not limited to, compostability, reduction and removal of harmful chemicals, microfiber and microplastic shedding, and mixed material blends.
(o)A description of how the PRO will minimize the negative environmental and human health impacts of all operations associated with the plan, including impacts from collected covered products exported outside of California.
(p)A process by which the financial activities of the PRO or individual producers that are related to implementation of the plan will be subject to an independent audit consistent with generally accepted accounting principles (GAAP).
42984.11.(a)A producer of a covered product sold, offered for sale, imported, or distributed in or into the state shall achieve the performance standards pursuant to subdivision (c) of Section 42984.10.
(b)After March 1, 2032, a producer of a covered product sold, offered for sale, imported, or distributed in or into the state shall achieve the performance standards adopted by the department pursuant to Section 42984.19.
42984.12.(a)A PRO shall review its plan at least every five years after approval by the department and determine whether revisions to the plan are necessary.
(b)If a PRO determines that revisions to the plan are necessary, the PRO shall submit to the department a revised plan for review and approval employing the procedures set forth in Section 42984.8. The stewardship organization shall submit the revised plan to the department pursuant to this subdivision at least 12 months prior to the review deadline outlined in subdivision (c). The revised plan shall include a cover letter that summarizes the revisions to the plan within 90 days of the review deadline outlined pursuant to subdivision (a).
(c)If a PRO determines that no revisions to the plan are necessary, the PRO shall send a letter to the department 12 months prior to the review deadline outlined in subdivision (a), explaining that the PRO has reviewed the plan and determined that no revisions are needed. The department may disapprove the PROs determination within 30 days of receipt of that determination if the department concludes that the PRO cannot implement the objectives of this chapter without revising the plan. If the department disapproves the PROs determination, the PRO shall submit to the department a revised plan for review and approval employing the procedures set forth in Section 42984.8. The PRO shall submit the revised plan pursuant to this subdivision within 60 days of receipt of the departments disapproval, unless the department determines that additional time is needed.
5.Financial Provisions 42984.13.(a)Each PRO shall pay all administrative and operational costs associated with establishing and implementing the program in which it participates, including, but not limited to, the cost of collection, transportation, sorting, repairing, recycling, and the safe and proper management of covered products.
(b)A PRO shall establish a method for fully funding the PRO in a manner that distributes the programs costs among participating producers that reflects sales volumes and the eco-modulated fee criteria included in the plan pursuant to Section 42984.10. The funding mechanism shall demonstrate adequate funding for all administrative and operational costs of the program, to be borne by participating producers, and shall distribute participating producers costs in consideration of the cost of managing their specific covered products according to the approved plan.
(c)Within nine months of the effective date of the regulations, the department shall notify each PRO of its estimated regulatory costs as the criteria for those costs are defined in the regulations adopted pursuant to Section 42984.2, which includes full personnel costs, related to implementing and enforcing this chapter. This shall include the actual reasonable costs associated with regulation development pursuant to Section 42968.2 and other startup activities prior to plan submittal and approval.
(d)The PRO shall, on a schedule determined by the department, pay the department fees to cover the departments incurred costs as described in subdivision (c). The fees shall not exceed the departments actual and reasonable regulatory costs to implement and enforce this chapter.
(e)(1)The department shall deposit all moneys received from a PRO pursuant to this section into the Textile Stewardship Recovery Fund, which is hereby established in the State Treasury.
(2)Upon appropriation by the Legislature, moneys in the Textile Stewardship Recovery Fund shall be expended by the department to implement and enforce this chapter, as well as to reimburse any outstanding loans made from other funds used to finance regulation, development, and startup costs of the departments activities pursuant to this chapter.
(3)The money in the Textile Stewardship Recovery Fund shall not be expended for any other purpose.
42984.14.(a)Upon approval of the PROs plan, the PRO shall charge each participant producer annual fees that are eco-modulated as described in the plan. The intent of the eco-modulated fee is to incentivize design choices that facilitate the achievement of goals as outlined in the plan, including reuse, repair, and recycling through reduced fees, while using malus fees to disincentivize practices and materials incongruent with the plan. The PRO shall consider existing producer collection, repair, reuse, and recycling programs in developing the eco-modulated fee structure.
(b)The PRO shall account for the costs to ensure each covered product and covered product category meet the requirements of the chapter, including minimization of environmental and public health impacts along the entire supply chain of covered products or covered product category.
6.Records, Audits, and Reports 42984.15.(a)A PRO shall keep board minutes, books, and records that clearly reflect the activities and transactions of the PRO.
(b)A PRO shall include in its plan a process by which the financial activities of the organization or individual producers that are related to implementation of the plan will be subject to an independent audit consistent with generally accepted accounting principles (GAAP), which shall be reviewed by the department.
(c)The department may audit the PRO or individual producer annually.
(d)Failure of a PRO or producer, or their respective agent who holds records, to produce documents or data that is requested by the department, required to be collected or generated to carry out operation of the plan in the form and manner determined by the department, as part of a department audit, or review of a third-party audit, constitutes a violation of this chapter.
42984.16.(a)A PRO shall retain an independent public accountant, certified in the United States, to annually audit the accounting books of the PRO. The department shall review the independent certified public accountant audit for compliance with this chapter and consistency with the PROs plan and annual report, submitted pursuant to this chapter. After the department conducts its own audit, the department shall notify the PRO of any conduct or practice that does not comply with this chapter or of any inconsistencies identified in the audit. The PRO may obtain copies of the departments audit, including proprietary information contained in the departments audit, upon request, and withhold from disclosure confidential proprietary information to the extent allowed under Section 1040 of the Evidence Code and Section 7929.000 of the Government Code. The items submitted to the department as part of the independent audit shall include:
(1)Financial statements audited in accordance with generally accepted accounting principles (GAAP).
(2)An audit of the PROs compliance with this chapter.
(3)An audit of the PROs adherence to, execution of, and consistency with its plan.
(b)The PRO shall include the independent audit in its annual report submitted to the department pursuant to Section 42984.17 commencing within 18 months of plan approval by the department. The department shall review the audit for compliance with this chapter and consistency with the PROs plan.
42984.17.A PRO shall annually submit to the department, in the form and manner and by the date determined by the department, an annual report and make that report publicly available on the PROs internet website. The report shall include at minimum, all of the following information for the preceding calendar year unless otherwise specified:
(a)The PROs costs, according to the cost categories established in the plan, and revenues.
(b)A summary of any anticipated changes to allocations in cost categories for the next calendar year.
(c)Any changes to the distribution of a participating producers costs.
(d)The amounts of the eco-modulated fees based on the criteria established pursuant to subdivision (b) of Section 42984.14 and the PROs evaluation of the effectiveness of the eco-modulated fees.
(e)An updated list of producers participating in the plan and an updated list of the names and contact information, including email address, telephone number, and physical and mailing addresses of producers and brands of covered products covered under the plan.
(f)A list of the PROs collection sites, by name, location, and type.
(g)(1)The amount of covered products sold in or into the state by the producers covered by the PROs plan.
(2)The amount described in paragraph (1) shall be broken down by fiber type category and Harmonized Tariff Schedule of the United States (HTS) number.
(h)The total weight of covered products, respectively, that were collected, broken down by fiber type categories.
(i)The total weight of covered products, by category, that were collected and deemed reusable by each respective authorized collector and authorized sorter.
(j)A list of each authorized sorter, authorized repair business, and covered product recycling facility used by the PRO, including both of the following:
(1)Name and location.
(2)Total weight of covered products handled by each location.
(k)The total weight and number of covered products sold in or into the state attributed to a producer, who is a registered participant of the PROs plan, which are collected in the state and reused or recycled by the PRO, including a description of the methodology and information used to determine and calculate these values.
(l)A complete accounting of the ultimate disposition of all covered products collected by the PRO, including the total weight of covered products that were repaired and recycled.
(m)Metrics and a description of the progress toward attaining the performance standards included in the plan.
(n)A description of methods used to collect, transport, repair, and recycle covered products by the PRO, including a description of all of the following:
(1)How the PRO handled and managed covered products according to the waste hierarchy as defined in Section 40051.
(2)How the PRO maximized reuse and recycling of all covered products.
(3)How the PRO minimized disposal of all covered products collected by the PRO.
(4)Results of the PROs assessment of the efficacy of the collection, sorting, and transportation process.
(o)A description of how the PRO provided incentive payments, grants, and market development investments to support the infrastructure necessary to effectively implement the plan, including how incentive payments, grants, and market development investments prioritized infrastructure closer to the point of generation.
(p)A description of outreach efforts and education, including, but not limited to, the PROs evaluation of the efficacy of the comprehensive statewide education and outreach program pursuant to subdivision (g) of Section 42984.10.
(q)A description of how the PRO coordinated with other PROs and entities pursuant to subdivision (j) of Section 42984.10.
(r)A report on activities the PRO has undertaken to prioritize the use of sorting and recycling facilities located closer to the point of generation to minimize transportation emissions and increase accountability for the ultimate disposition of collected covered products.
(s)An analysis of whether the PRO met performance standards established by the PRO pursuant to subdivision (c) of Section 42984.10 or by the department pursuant to Section 42984.19.
(t)A description of how the PRO addressed the presence of PFAS and other chemicals regulated under Chapter 6.6 (commencing with Section 25249.5) of Division 20 of the Health and Safety Code and Chapter 12.5 (commencing with Section 108945) of, and Chapter 13.5 (commencing with Section 108970) of, Part 3 of Division 104 of the Health and Safety Code, including, but not limited to, the actions taken and investments made to avoid contamination in the recycling process, and the availability of end markets for recycled material that could not be remanufactured into textiles or textile articles in California.
(u)Any other information deemed relevant by the PRO for the department to determine compliance with the approved plan.
(v)Any other information required by regulations adopted pursuant to Section 42984.2.
42984.18.(a)No later than 120 days after the date the department receives the annual report submitted by a PRO pursuant to Section 42984.17, the department shall notify the PRO if the annual report is compliant or noncompliant.
(b)If the department determines that the annual report is noncompliant due to failure to meet the requirements of this chapter, the department may require the resubmittal of the annual report or take enforcement action.
7.Department Responsibilities42984.19.After March 1, 2032, the department may establish, review, and may adjust performance standards and the dates by which they are required to be achieved based on information included in the plan and annual reports, other information provided by the PRO, department waste characterization studies, needs assessment, and economic and any other relevant information, as determined by the department.
8.Enforcement and Civil Penalties42984.20.(a)Within 12 months of the effective date of regulations pursuant to Section 42984.2, and on or before July 1 of each year thereafter, the department shall post on its internet website a list of producers that are in compliance with this chapter. The department shall list, as appropriate, the reported brands of covered products for each producer.
(b)A producer that is not listed on the departments internet website pursuant to subdivision (a) that demonstrates compliance with this chapter before the next list is posted by the department may either be added to the internet website or be provided a certification letter from the department stating that the producer of a covered product is in compliance with this chapter. The departments list of compliant entities shall be available on the departments internet website in a machine-readable format.
(c)(1)A retailer, importer, distributor, or online marketplace shall monitor the departments internet website where compliant producers are posted, as provided in subdivision (a), to determine if a producer, brand, or covered product is in compliance with this chapter for that producer of covered products.
(2)Except as provided in subdivision (d), on and after the date a plan is approved by the department pursuant to Section 42984.8, a retailer, importer, distributor, or online marketplace shall not sell, distribute, offer for sale, or import a covered product in or into the state for sale in the state unless the producer of the covered product is listed as in compliance pursuant to this section for that brand and covered product.
(d)(1)Notwithstanding paragraph (2) of subdivision (c), a retailer, importer, distributor, or online marketplace may sell, offer for sale, import, or distribute a covered product if the retailer, importer, distributor, or online marketplace has fulfilled the obligations for those covered products which the retailer, importer, distributor, or online marketplace sells, offers for sale, imports, or distributes pursuant to paragraph (6) of subdivision (s) of Section 42984.3.
(2)Notwithstanding paragraph (2) of subdivision (c), a retailer, importer, distributor, or online marketplace may sell, offer for sale, import, or distribute a covered product if, on the date the retailer or distributor sells or offers for sale the covered product in or into the state, the producer, brand, or covered product was listed as compliant on the departments internet website.
(3)Notwithstanding paragraph (2) of subdivision (c), a retailer or distributor may, for any existing inventory in stock before the initial list was posted by the department pursuant to subdivision (a), sell or distribute that inventory for sale in or into the state.
(e)(1)If the department determines a producer is not in compliance with this chapter, the department shall remove the producer, along with its brands and covered products, from the list of compliant producers posted on the departments internet website pursuant to subdivision (a).
(2)The department shall list on its internet website a producer, along with its brands and covered products, if the department subsequently determines that the producer is in compliance with this chapter.
42984.21.(a)An administrative civil penalty up to the following amounts may be administratively imposed by the department on any person who is in violation of any provision of this chapter:
(1)Ten thousand dollars ($10,000) per day.
(2)Fifty thousand dollars ($50,000) per day if the violation is intentional or knowing.
(b)In assessing or reviewing the amount of a civil penalty imposed pursuant to subdivision (a) for a violation of this chapter, the department or the court shall consider all of the following:
(1)The nature and extent of the violation.
(2)The number and severity of the violation or violations.
(3)The economic effect of the penalty on the violator.
(4)Whether the violator took good faith measures to comply with this chapter and the period of time over which these measures were taken.
(5)The willfulness of the violators misconduct.
(6)The deterrent effect that the imposition of the penalty would have on both the violator and the regulated community.
(7)Any other factor that justice may require.
(c)The department shall establish, through regulations adopted pursuant to Section 42984.2, a process that shall include an informal hearing process by which the penalties will be assessed.
(d)The department shall deposit all penalties collected pursuant to this section into the Textile Stewardship Recovery Penalty Account, which is hereby created in the Textile Stewardship Recovery Fund. Upon appropriation by the Legislature, moneys in the Textile Stewardship Recovery Penalty Account shall be available for expenditure by the department on activities related to the collection and recycling of covered products, grants for related purposes, and the administration and enforcement of this chapter.
(e)The Administrative Adjudication Bill of Rights, as set forth in Chapter 4.5 (commencing with Section 11425.10) of Part 1 of Division 3 of Title 2 of the Government Code, applies to hearings conducted under this chapter and mandates minimum due process.
42984.22.Upon a written finding that a producer, PRO, manufacturer, distributor, retailer, or importer site has not met a material requirement of this chapter, in addition to any other penalties authorized under this chapter, the department may take one or both of the following actions to ensure compliance with the requirements of this chapter, after affording the entity a reasonable opportunity to respond to, or rebut, the finding, take any of the following actions to ensure compliance with the requirements of this chapter:
(a)Revoke the PROs plan approval or require the PRO to resubmit the plan.
(b)Require additional reporting relating to compliance with the material requirement of this chapter that was not met.
42984.23.(a)A producer, PRO, manufacturer, distributor, retailer, or importer shall do both of the following:
(1)Upon request, provide the department with reasonable and timely access, as determined by the department, to its facilities and operations, as necessary to determine compliance with this chapter.
(2)Upon request, within 14 days, 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 five years. All reports and records provided to the department pursuant to this chapter shall be provided under penalty of perjury.
(c)(1)The department may impose administrative civil penalties pursuant to Section 42984.21 on a producer, PRO, manufacturer, distributor, retailer, or importer that fails to provide the department with the access required pursuant to this section.
(2)The department may post a notice on the departments internet website that is maintained pursuant to Section 42984.20 that a producer that fails to provide the department with access pursuant to this section, along with the producers brands and covered products, is no longer in compliance with this chapter.
42984.24.After the time for judicial review under Section 11523 of the Government Code has expired, the department may apply to the small claims court or superior court, depending on the jurisdictional amount and any other remedy sought, in the county where the penalties, restitution, or other remedy was imposed by the department, for a judgment to collect any unpaid civil penalties or restitution or to enforce any other remedy provided by this chapter. The application, which shall include a certified copy of the final agency order or decision, shall constitute a sufficient showing to warrant the issuance of the judgment. The court clerk shall enter the judgment immediately in conformity with the application. The judgment so entered shall have the same force and effect as and shall be subject to all the provisions of law relating to a judgment in a civil action and may be enforced in the same manner as any other judgment of the court. The court shall make enforcement of the judgment a priority.
9.Antitrust Immunity42984.25.(a)Except as provided in subdivision (c), an action specified in subdivision (b) that is taken by a PRO 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) applies to all of the following actions taken by a PRO:
(1)The creation, implementation, or management of a plan approved by the department pursuant to Article 4 (commencing with Section 42984.8) and the determination of the types or quantities of covered products repaired, reused, recycled, or otherwise managed pursuant to a plan.
(2)The determination of the cost and structure of an approved plan.
(3)The establishment, administration, collection, or disbursement of a charge associated with funding the implementation of this chapter.
(c)Subdivision (a) does not apply to an agreement that does any of the following:
(1)Fixes a price of or for covered products, except for an agreement related to costs or charges associated with participation in a plan approved by the department and otherwise in accordance with this chapter.
(2)Fixes the output or production of covered products.
(3)Restricts the geographic area in which, or customers to whom, covered products will be sold.
10.County Authority42984.26.This chapter does not grant a city, county, city and county, special district, or joint powers authority any new authority over solid waste hauling operations pursuant to a franchise agreement and does not affect, limit, or abrogate in any manner any franchise granted to a solid waste enterprise for the handling of solid waste.
11.Online Marketplace42984.27.An online marketplace shall annually do the following in accordance with regulations adopted by the department pursuant to Section 42984.2:
(a)(1)Notify the department and the PRO of all third-party sellers with sales of covered products over one million dollars ($1,000,000) sold on their online marketplace in the preceding year and provide all required information. If a third-party seller does not have any sales in California during the preceding year then the online marketplace shall not provide their information to the department.
(2)The amount of sales described in paragraph (1) includes only those transactions through the online marketplace for which payment is processed by the online marketplace directly or through its payment processor.
(b)Provide all third-party sellers described in (a) with the information on requirements of law as provided by the PRO pursuant to paragraph (8) of subdivision (g) of Section 42984.10.
SEC. 2.The Legislature finds and declares that Section 1 of this act, which adds Sections 42984.8 and 42984.16 to the Public Resources Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
It is in the best interest of the public to provide limited protection of certain financial and sales data of program participants, in order to protect the interests of businesses and the privacy of their data regarding their customers.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
This act may be known, and shall be cited, as the Responsible Textile Recovery Act of 2024.
42984.05.(a)The intent of this chapter is to establish a statewide extended producer responsibility program for apparel and textile articles that emphasizes repair and reuse. reuse, and minimizes generation of hazardous waste, generation of greenhouse gases, environmental impacts, environmental justice impacts, and public health impacts.
(b)Due to distinct market elements associated with the textile and apparel industry that can utilize direct-to-consumer transactions from an overseas manufacturer to a consumer, the provisions of this chapter associated with online marketplaces are intended to be unique to this sector.
42984.1.(a)The purpose of this chapter is to increase the amount of postconsumer apparel and textile articles that are diverted from landfills and reused, repaired, and recycled into secondary products or otherwise managed in a manner that is consistent with the states hierarchy for waste management practices pursuant to Section 40051.
(b)It is the purpose of this chapter that any producer, regardless of whether that producer is domiciled in California, who sells, offers for sale, or distributes a covered product into the state shall be responsible for complying with this chapter.
42984.2.The department, acting in accordance with Article 1 (commencing with Section 11340) to Article 8 (commencing with Section 11350), inclusive, of the Administrative Procedure Act, as set forth in Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, shall adopt regulations to implement this chapter with an effective date of no earlier than July 1, 2028. The departments regulations shall encourage recycling that minimizes generation of hazardous waste, generation of greenhouse gases, environmental impacts, environmental justice impacts, and public health impacts.
42984.3.(a)(1)Apparel means clothing and accessory items intended for regular wear or formal occasions and outdoor activities. For purposes of this chapter apparel includes only undergarments, shirts, pants, skirts, dresses, overalls, bodysuits, costumes, vests, dancewear, suits, saris, scarves, tops, leggings, school uniforms, leisurewear, athletic wear, sports uniforms, swimwear, formal wear, onesies, bibs, footwear, handbags, backpacks, knitted and woven accessories, jackets, coats, snow pants, ski pants, and everyday uniforms for workwear.
(2)Apparel does not include any of the following:
(A)Personal protective equipment or clothing items for use by the United States military.
(B)Personal protective equipment worn to protect the wearer from health or environmental hazards.
(C)Reusable products designed to collect and absorb urine and feces, or reusable products regulated by the United States Food and Drug Administration that are designed to collect and absorb menstruation or vaginal discharge.
(b)Authorized collector means a person or entity that has entered into an agreement with a PRO to collect covered products.
(c)Authorized sorter means a person or entity that has entered into an agreement with a PRO to sort covered products collected by authorized collectors.
(d)Authorized repair business means a person or entity that has entered into an agreement with a PRO to repair covered products for resale after collection by an authorized collector or after sorting by an authorized sorter.
(e)Brand means a trademark, including both a registered trademark and an unregistered trademark, a logo, a name, a symbol, a word, an identifier, or a traceable mark that identifies a covered product and identifies the owner or licensee of the brand.
(f)Collection box means an unattended container, box, receptacle, or similar device used for soliciting and collecting donations of covered products, including apparel or textile articles.
(g)Collection site means a permanent or temporary location operated by an authorized collector at which covered products are collected and prepared for transport in accordance with the requirements of this chapter.
(h)Consumer means an owner of a covered product, including a person, business, corporation, limited partnership, nonprofit organization, or governmental entity, and includes the ultimate purchaser, owner, or lessee of a covered product, who is not, as to that covered product, the distributor, importer, producer, recycler, retailer, or PRO.
(i)(1)Covered product means an apparel or textile article.
(2)Covered product does not include any of the following:
(A)A product covered under the Used Mattress Recovery and Recycling Act (Chapter 21 (commencing with Section 42985)).
(B)A product covered under the Electronic Waste Recycling Act of 2003 (Chapter 8.5 (commencing with Section 42460)).
(C)A product covered under the Product Stewardship for Carpets law (Chapter 20 (commencing with Section 42970)).
(D)An automated, motorized, battery, or manual window covering that is operated using an electric motor or other automated system, or manually adjusted by pulling cords or lifting mechanisms.
(j)Department means the Department of Resources Recycling and Recovery or a successor agency.
(k)Distributor means a company that has a contractual relationship with one or more producers to market and sell covered products to a retailer.
(l)Importer means either of the following:
(1)A person 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 covered product that is sold, distributed for sale, or offered for sale in or into the state that was manufactured or assembled by a company outside of the United States.
(2)A person importing into the state for sale, distributing for sale, or offering for sale in the state a covered product that was manufactured or assembled by a company physically located outside of the state.
(m)Local jurisdiction means a city, county, city and county, or a regional agency formed pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code or Article 3 (commencing with Section 40970) of Chapter 1 of Part 2 of this code, or a special district that provides solid waste collection services.
(n)Mail-back program means a method of collecting covered products using prepaid, preaddressed mailing envelopes, boxes, or other means that are reusable, recyclable, or compostable.
(o)Needs assessment means a needs assessment prepared pursuant to Section 42984.6.
(p)Nonprofit thrift store has the same meaning as set forth in Section 6363.3 of the Revenue and Taxation Code.
(q)Online marketplace has the same meaning as set forth in Section 1749.8 of the Civil Code.
(r)Person has the same meaning as set forth in Section 40170.
(s)(1)Producer means a person who manufactures a covered product and who owns or is the licensee of the brand or trademark under which that covered product is sold, offered for sale, or distributed for sale in or into the state.
(2)If there is no person in the state who is the producer for purposes of paragraph (1), the producer of the covered product is the owner of a brand or trademark or, if the owner is not in the state, the exclusive licensee of a brand or trademark under which the covered product is sold, imported for sale, offered for sale, or distributed for sale in or into the state, regardless of whether the trademark is registered. For purposes of this subdivision, an exclusive licensee is a person holding the exclusive right to use a trademark or brand in the state in connection with the manufacture, sale, or distribution for sale in or into the state of the covered product.
(3)If there is no person in the state who is the producer for purposes of paragraph (1) or (2), then the producer of the covered product is the person that imports the covered product into the state for sale or distribution.
(4)If there is no other person in the state who is the producer for purposes of paragraphs (1), (2), or (3), the producer of the covered product is the distributor, retailer, or wholesaler who sells the product in or into the state.
(5)For the purposes of this chapter, the sale of a covered product shall be deemed to occur in the state if the covered product is delivered to the consumer in the state.
(6)This chapter does not prohibit a person who manufactures, distributes, imports, offers for sale, or sells the covered product from assuming some or all of the duties and liabilities of the producer of the covered product and relieving from those duties and liabilities any other person who manufactures, distributes, imports, offers for sale, or sells the covered product.
(7)Producer does not include a seller that only sells secondhand covered products.
(8)Producer does not include a seller with less than one million dollars ($1,000,000) in annual aggregate global turnover adjusted annually pursuant to the California Consumer Price Index for All Urban Consumers for all items, as determined by the Department of Industrial Relations. The aggregate global turnover of a producer within the meaning of this chapter shall be calculated by adding together the respective turnovers of all of the following:
(A)The producer concerned.
(B)Those entities in which the producer is concerned, directly or indirectly, as follows:
(i)Owns more than one-half the capital or business assets.
(ii)Has the power to exercise more than one-half the voting rights.
(iii)Has the power to appoint more than one-half the members of the supervisory board, the administrative board, or bodies legally representing the undertakings.
(iv)Has the right to manage the entities affairs.
(C)Those entities that have in the producer concerned the rights or powers listed in subparagraph (B).
(D)Those entities in which an entity referred to in subparagraph (C) has the rights or powers listed in subparagraph (B).
(E)Those entities in which two or more entities as referred to in subparagraphs (A) to (D), inclusive, jointly have the rights or powers listed in subparagraph (B).
(t)Producer responsibility organization or PRO means an organization that is exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986, is formed for the purpose of implementing a plan to meet the requirements of this chapter, and is approved by the department.
(u)Producer responsibility plan or plan means the plan developed by the PRO for the collection, transportation, repair, recycling, and the safe and proper management of covered products pursuant to subdivision (a) of Section 42984.8 and submitted to the department for approval pursuant to subdivision (b) of Section 42984.8.
(v)Recycle or recycling has the same meaning as set forth in paragraphs (1) and (2) (1), (2), and (3) of subdivision (aa) of Section 42041. To be considered recycled, covered products shall be recycled into new, reused, or reconstituted products.
(w)Repair means any alteration or improvement of damaged covered product deemed worth the cost of repair by criteria established by the plan, including, but not limited to, any of the following:
(1)Redesigning and repurposing.
(2)Mending rips, holes, seams, and hems.
(3)Removing and repairing surface damage, such as pilling, stain removal, or abrasion.
(4)Securing and reattaching buttons and other fastenings.
(5)Dyeing, redyeing, overdyeing, or printing of images on covered products.
(6)Preparation for reuse and resale.
(x)Responsible end market has the same meaning as set forth in subdivision (ad) of Section 42041.
(y)Retailer means a person who sells or offers for sale a covered product in or into the state to a person through any means, including, but not limited to, sales outlets, catalogs, the telephone, the internet, or any electronic means.
(z)Reuse means the resale of a collected covered product to a consumer for its original intended use with or without repair.
(aa)Secondhand covered product means any covered product that has been previously owned by a consumer.
(ab)Secondhand markets means a retailer who sells secondhand covered products, including, but not limited to, thrift stores, collection box operators, online resale platforms, and flea markets.
(ac)Sell has the same meaning as set forth in Section 6006 of the Revenue and Taxation Code.
(ad)Stewardship program means a program established by a PRO pursuant to this chapter for the free, convenient, and safe collection, transportation, repair, recycling, and otherwise proper management of covered products.
(ae)(1)Textile article means an item customarily used in households or businesses that are made entirely or primarily from a natural, artificial, or synthetic fiber, yarn, or fabric. For purposes of this chapter, textile article includes only blankets, curtains, fabric window coverings, knitted and woven accessories, towels, tapestries, bedding, tablecloths, napkins, linens, and pillows.
(2)Textile article does not include single-use products including paper towels, paper napkins, toilet paper, facial tissue, and wet or dry wipes.
(af)Third-party seller has the same meaning as set forth in Section 1749.8 of the Civil Code.
2.Producers42984.4.(a)(1)Producers of covered products shall form and join a PRO for the purposes of complying with this chapter. The governing body of the PRO shall submit an application to the department by January 1, 2026, describing how the PRO meets the requirements to be an approved PRO pursuant to this chapter. If the department approves the PRO, the PRO shall proceed to carry out the requirements of this chapter. If applications for more than one PRO are submitted to the department, the department shall determine which proposed PRO can most effectively implement this chapter.
(2)The department shall, by, March 1, 2026, approve a PRO that meets the requirements of this chapter and both of the following:
(A)The PRO has a governing board consisting of producers that are diverse in size and type and that represent the diversity of covered products placed in the market by those entities. The governing board may include ex officio members involved in the collection, sorting, repair, reuse, recycling, or management of covered products.
(B)The PRO demonstrates that it has adequate financial responsibility and financial controls in place, including fraud prevention measures and an audit schedule, to ensure proper management of funds.
(3)All producers of covered products shall, by July 1, 2026, join the PRO approved by the department.
(4)After January 1, 2035, upon the determination of the director that an additional PRO would be beneficial in satisfying the requirements of this chapter, the department may approve additional PROs that meet the requirements of this chapter and that meet all of the following requirements:
(A)The proposed PRO submits to the department, and agrees to cover the departments reasonable costs to review, a petition to establish a new PRO.
(B)The proposed PRO is composed of a sufficient number of producers to jointly comply with the requirements of this chapter.
(C)The proposed PRO agrees to cover the costs of all of the provisions of this chapter applicable to the proposed PRO and its participant producers.
(b)Each producer covered under a PRO shall register with that PRO in accordance with the procedures and requirements established by that PRO and shall comply with those procedures and requirements.
(c)Upon approval of a plan pursuant to Section 42984.8, or commencing July 1, 2030, whichever is sooner, a producer shall be subject to penalties under Section 42984.21 unless all of the following are met:
(1)The producer is a participant of the PRO.
(2)All covered products are accounted for in the plan.
(3)If an entity does not meet the definition of a producer and is not subject to this chapter before January 1, 2030, but, at any point, after January 1, 2030, meets the definition of a producer, the producer shall, within 90 days, become a participant of the PRO and comply with the requirements of this chapter.
(d)A producer is not in compliance with this chapter and is subject to penalties pursuant to this chapter if a covered product sold or offered for sale by the producer is not subject to an approved PRO plan that has been approved by the department pursuant to Section 42984.8.
42984.5.(a)No later than 30 days after the effective date of the regulations implementing this chapter, individual producers or the PRO shall provide to the department, in a form and manner established by the department, a list of brands of covered products that each producer sells, distributes for sale, imports for sale, or offers for sale in or into the state.
(b)A producer or PRO shall update the list described in subdivision (a) and provide the updated list to the department on or before January 15 of each year or upon request of the department.
3.Producer Responsibility Organizations (PROs)42984.6.(a)(1)A PRO shall prepare the initial statewide needs assessment designed to determine the necessary steps and investment needed for covered products, to achieve the requirements of this chapter. Needs assessments, or components thereof, shall be updated every five years or as necessary to ensure the requirements of this chapter are met. An initial needs assessment for covered products shall be completed before the completion and approval of any producer responsibility plan for covered products. The PRO may select an independent third-party contractor to complete the needs assessment.
(2)A PRO shall cover the cost of developing any needs assessment and any update to a needs assessment.
(3)A PRO may prepare more than one needs assessment, with each assessment specific to one or more covered products subject to this chapter, or may prepare one comprehensive needs assessment that includes all covered material products subject to this chapter.
(4)A PRO shall consult with the department and local jurisdictions when preparing the needs assessment.
(5)The initial needs assessment, and any updates, shall be submitted to the department by March 1, 2027. The department shall review and approve, conditionally approve, or disapprove the needs assessment as meeting the requirements of this chapter within 90 days of submission.
(6)If there is more than one PRO approved by the department at the time updated needs assessments are completed, then the approved PROs may collaborate on a single needs assessment.
(b)A needs assessment shall comply with all of the following:
(1)Be designed to inform the program budget and PRO plan.
(2)Include an evaluation of all of the following with respect to covered products and covered product categories:
(A)Existing scope and scale of annual covered products diverted to landfill in the state by type of covered product, material composition, and volume and annual covered product recovery diverted to reuse, repair, or recycling in the state or from the state by type of covered product, material composition, and volume.
(B)The current repair, reuse, recycling, collection, sorting, and hauling system in the state and the expanded access and additional repair, reuse, recycling, collection, sorting, disassembly, and hauling options needed to meet the requirements of this chapter.
(C)Current market conditions and the need to create responsible and economically viable end markets in the state, regionally, and globally.
(D)Existing state statutory provisions and funding sources related to market development and financial incentives to help achieve the states goals related to repair, reuse, recycling, collection, sorting, disassembly, and hauling.
(E)Consumer education needs and the methods by which the PRO can best reach consumers with educational messaging.
(F)Consumer behaviors to drive repair, reuse, and recycling and to achieve the requirements of this chapter.
(G)Funding needs and incentive mechanisms necessary to achieve the requirements of this chapter, including coverage of the operation of the stewardship program.
(H)Fee reduction or redistribution mechanisms necessary to achieve the requirements of this chapter, in a manner that equitably distributes the costs among participating producers that reflects production and sales volumes relevant to the California market. Fee reduction or redistribution mechanisms may consider existing producer collection, repair, reuse, and recycling programs that help achieve the purpose of this chapter.
(I)Actions and investments necessary to provide sufficient access to collection, recycling, composting, processing, and transportation to responsible and economically viable end markets.
(J)An evaluation of the availability or lack of availability of responsible end markets for recycled covered material, products, the need to incentivize reused products or recycled material market development, and the associated investments and actions needed to ensure that the covered products are reused or recycled and have responsible and economically viable and sufficient end markets.
(K)The needs assessment shall include an evaluation of the factors contributing to the presence of perfluoroalkyl and polyfluoroalkyl substances (PFAS) and other chemicals regulated under Chapter 6.6 (commencing with Section 25249.5) of Division 20 of the Health and Safety Code and Chapter 12.5 (commencing with Section 108945) of, and Chapter 13.5 (commencing with Section 108970) of, Part 3 of Division 104 of the Health and Safety Code, and the actions and investments needed to avoid contamination related to recycling. This shall include available environmental and public health data and an evaluation of the available end markets for recycled material that cannot be remanufactured into textiles or textile articles in California.
(L)Whether allowing more than one PRO would be beneficial in meeting the requirements of the chapter.
(M)Evaluate what factors will be important to successfully implement the eco-modulated fee structure required by subdivision (b) of Section 42984.10, and what associated data collection will be necessary as part of the plan.
(c)The department shall guide development of a needs assessment, which shall be developed by a PRO in consultation with a broad diversity of local jurisdictions, recycling service providers, and processors that reflect the different needs and challenges presented by managing different covered products through final disposition.
42984.7.(a)A PRO shall approve collection sites under its stewardship program that agree to comply with all applicable state, federal, or municipal laws, regulations, and rules and conditions adopted by the PRO.
(b)A PRO shall include as a collection site under its stewardship program any local jurisdiction that offers in writing to participate in the stewardship program and agrees to comply with any PRO requirements that are consistent with that PROs approved plan even if the minimum thresholds described in subdivision (d) of Section 42984.10, as applicable, have been achieved.
(1)A PRO shall include the local jurisdiction as a collection site in the stewardship program within 90 days of receiving the written offer to participate, confirming that the local jurisdiction will comply with any PRO requirements that are consistent with an approved plan, even if the minimum thresholds described in subdivision (d) of Section 42984.10, as applicable, have been achieved.
(2)The PRO shall not be required to respond to offers pursuant to this paragraph until the PROs plan has been approved by the department.
(c)A PRO may suspend or terminate a collection site that does not comply with all applicable state, federal, or municipal laws and regulations or adhere to the rules and conditions imposed by the PRO.
(d)A collection site shall be operated and managed to ensure that covered products are collected safely and handled in accordance with all applicable state, federal, and municipal laws and regulations and the rules and conditions of the plan. Authorized collectors and authorized sorters may divert reusable covered products for sale in secondhand markets.
(e)A PRO shall require all contractors to pay at least the state minimum wage.
(f)Each participant of a PRO with an approved plan shall comply with the requirements of this chapter. The PRO shall notify the department within 30 calendar days of any the following:
(1)The end of any three-month period in which the PRO unsuccessfully attempted to obtain a fee, records, or information from a participant producer, or received incomplete or incorrect records or information.
(2)The date a producer no longer participates in the PROs approved plan.
(3)Any instance of noncompliance by a participant producer.
4.Producer Responsibility Plan for Covered Products42984.8.(a)Within 12 months of the effective date of the regulations adopted by the department pursuant to Section 42984.2, a PRO shall develop and submit to the department a complete plan, in a form and manner determined by the department, in accordance with the requirements of this chapter, for the collection, transportation, repair, sorting, recycling, and the safe and proper management of covered products in the state. No PRO serving more than one producer may limit its stewardship plan for covered products to the covered products of the producers participating in that stewardship program.
(b)The department shall review the stewardship plan for compliance with this chapter and shall approve, disapprove, or conditionally approve the plan within 120 days of receipt of the plan.
(c)(1)If the department disapproves a plan submitted by a PRO, the department shall explain how the plan does not comply with this chapter and provide written notice to the PRO within 60 days of disapproval. The PRO may resubmit to the department a revised plan within 30 days of the date the written notice was issued, and the department shall review the revised plan within 60 days of resubmittal.
(2)If the department disapproves a revised plan submitted by a PRO, the department shall explain how the plan does not comply with this chapter and provide written notice to the PRO within 60 days of disapproval. The PRO shall then revise and resubmit the plan consistent with the departments direction within 30 days, otherwise the disapproval is final and the PRO and producers may be subject to penalties.
(3)By July 1, 2030, a PRO shall have a complete plan approved by the department and each producer shall be subject to an approved plan to be in compliance with this chapter.
(d)Within three months of approval by the department, a PRO shall begin to implement the approved plan.
(e)A PRO with an approved plan shall submit any proposed substantial change to the plan to the department for approval employing the procedures set forth in this section.
(f)The approved plan shall be a public record, except that financial or sales data reported to the department by the PRO is not a public record for purposes of the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and shall not be open to public inspection. The department may release financial or sales data in summary form only so the information cannot be attributable to a specific producer or distributor or to any other entity.
42984.9.The PRO shall fully implement the approved plan within 12 months of the departments approval of the plan pursuant to Section 42984.8.
42984.10.A plan for covered products shall be designed to accept and manage all postconsumer covered products and shall include all of the following:
(a)The names and contact information, including email address, phone number, and mailing and physical addresses, of producers and brands of covered products covered under the plan.
(b)(1)A description of the method to establish and administer a means for fully funding the PRO in a manner that distributes the PROs costs among the producers that are part of the stewardship organization using a per unit eco-modulated fee that reflects California sales volumes, existing producer collection, repair, reuse, and recycling programs that help achieve the purpose of this chapter, and the cost of reusing, repairing, recycling, or otherwise managing covered products pursuant to subdivision (a) of Section 42984.4.
(2)A five-year budget that establishes a funding level sufficient to operate the PRO in a prudent and responsible manner. The budget shall demonstrate how estimated revenues will cover all budgeted costs for each cost category.
(3)Budgeted costs shall include, but not be limited to, administrative costs, education and outreach costs, operational costs, capital costs, and a reserve to operate the PRO should there be unexpected events, such as losses of income, and large unbudgeted expenses in order to protect the recycling infrastructure the PRO relies upon in its plan, during any lapse in producer participation during the life of the program. The plan shall include a description of the types of activities related to each line-item cost category. The reserve cost category shall include a reserve level amount and description justifying the reserve level amount indicated.
(4)The PRO shall maintain reserve funds sufficient to operate the plan for no less than six months. If a new plan submitted by a PRO is approved by the department, the PRO shall establish its reserve and maintain the required reserve fund balance by the end of the second year of plan operation.
(5)Administrative costs shall include the departments actual and reasonable regulatory costs, which include full personnel costs, to implement and enforce this chapter as the criteria for all the costs that are defined in the regulations adopted pursuant to Section 42984.2. For the purposes of this paragraph, PRO implementation begins once the department approves a PROs plan, except the departments costs shall include actual regulatory development costs and other startup costs incurred prior to plan submittal and approval.
(c)Quantifiable five-year and annual performance standards and metrics unless or until the department publishes performance standards pursuant to Section 42984.19. The PRO shall amend its plan to meet or exceed the performance standards published by the department.
(d)A description of how the PRO will provide for a free and convenient dropoff or collection system for covered products, which shall include permanent collection sites and may include temporary collection sites and mail-back options, in each county of the state that meets both of the following requirements:
(1)Provides for a minimum of 10 permanent collection sites or one permanent collection site per 25,000 people, whichever is greater, except as provided below:
(A)A county with a population of 18,000 and under, as reported annually by the Department of Finance, shall have a minimum of three collection locations.
(B)A county with a population of between 18,001 and 50,000, inclusive, as reported annually by the Department of Finance, shall have a minimum of four collection locations.
(C)A county with a population between 50,001 and 100,000, inclusive, as reported annually by the Department of Finance, shall have a minimum of eight collection locations.
(2)Provides for a reasonable geographic spread of permanent collection sites and an explanation for the geographic spread.
(e)A description of how collection sites will be authorized and managed, including all of the following:
(1)A description of the process by which local jurisdictions can request to be a collection site pursuant to Section 42984.7.
(2)A description of how the PRO will provide to collection sites at no cost the appropriate containers for covered products, training, signage, safety guidance, and educational materials.
(3)An explanation of the process by which the PRO will provide for the transport of covered products at no cost from the collection sites to an authorized sorter, or directly to an authorized repair business, or recycling facility.
(4)A description of how collection sites will be allowed to divert collected covered products to secondhand markets for reuse. Any diversion by collection sites pursuant to this paragraph shall be consistent with the rules established pursuant to paragraph (5).
(5)A list of all proposed rules, conditions, and requirements for authorized collectors, authorized sorters, and authorized repair businesses, including a template proposed agreement for each of those types of entities, as applicable.
(6)A description of how the PRO will prioritize the use of secondhand markets and nonprofit thrift stores, as described in Section 6363.3 of the Revenue and Taxation Code, when establishing collection sites to meet the minimum requirements in subdivision (d).
(7)How collection sites will be instructed to identify and reject counterfeit covered products.
(f)A description of the process by which collected covered products will be sorted, transported, processed, reused, and recycled following collection at collection sites, including all of the following:
(1)A description of how covered products will be handled and managed according to the waste management practices pursuant to Section 40051, including both of the following:
(A)(i)How the plan will prioritize the reuse, including repair, of collected covered products.
(ii)Products designed for use by infants and children under 12 years of age with components that pose a risk of detachment, thus creating choking hazards, or containing components subject to Part 1303 (commencing with Section 1303.1) and Part 1307 (commencing with Section 1307.1) of Title 16 of the Code of Federal Regulations, including, but not limited to, metallic, vinyl, or plastic snaps, zippers, grommets, closures, or appliques may be excluded from repair and reuse by the PRO.
(B)(i)How the plan will include the incentive payments, grants, and market development investments specified in clause (vii) to encourage reuse over recycling and other methods.
(ii)A description of how covered products will be sorted by authorized sorters, including a description of how the flow of covered products to and from authorized collectors, authorized sorters, authorized repair businesses, and recyclers will be tracked through final disposition.
(iii)A description of how the PRO will maximize the reuse and recycling of all covered products.
(iv)A description of how the PRO will minimize disposal of covered products collected by the PRO.
(v)A description of how the PRO will prioritize, to the extent feasible, the use and development of sorting, repair, and recycling facilities located closer to the point of collection to minimize transportation-related emissions and increase accountability for the ultimate disposition of the covered products.
(vi)A description of the annual assessment the PRO will conduct and the metrics it will use to determine how collection, sorting, and transportation outcomes aligned with projections.
(vii)A description of how the plan will provide incentive payments, grants, and market development investments to support the infrastructure necessary to effectively implement the plan, including how incentive payments, grants, and market development investments will prioritize infrastructure closer to the point of generation pursuant to clause (v).
(viii)A description of how the actions taken pursuant to clause (vii) will ensure that covered products are reused or recycled and have responsible and economically viable end markets.
(g)A comprehensive statewide education and outreach program designed to educate consumers and promote participation in the program offered by the PRO. At a minimum, the comprehensive statewide education and outreach program shall include all of the following:
(1)A description of the education and communications for strategy being implemented to effectively promote participation in the stewardship program and provide the information necessary for effective participation by consumers, retailers, distributors, wholesalers, local jurisdictions, and others.
(2)A joint internet website in coordination with all other PROs, as applicable, that publicizes the location of collection sites and provides information to consumers on how to drop off covered products at the free and convenient network of collection sites offered by the PRO, including any information reasonably necessary to safely and conveniently access the collection, repair, and recycling services offered by the PRO.
(3)Signage that is prominently displayed and easily visible.
(4)All signage and materials required for collection sites by the PRO, and the method by which collection sites can access replacement materials at no cost to the collection site.
(5)A description of efforts to support participation by all California communities, including a description of efforts to communicate with consumers in languages other than English.
(6)Promotional materials or activities, or both, that explain the purpose of the PRO and the means by which it is being carried out.
(7)A description of how the PRO will encourage users to separate products that are not covered products from covered products, when appropriate, before submitting the covered products to an authorized collection site or mail-back program.
(8)Materials designed to inform third-party sellers on online platforms of their duty to comply with the law and how to join the PRO.
(9)Information to the public on secondhand markets and the benefits of reuse, including repair.
(10)(A)The statewide education and outreach program shall promote the safe and proper management of covered products, including information on where consumers can purchase repaired and reused covered products. This includes education and training for authorized collectors to incentivize domestic resale of usable covered products.
(B)The statewide education and outreach program shall not promote the disposal of covered products in a manner inconsistent with the services offered by the plan.
(C)The statewide education and outreach plan shall include information for consumers about how to avoid improper disposal of covered products.
(h)A description of the strategies, goals, and metrics the PRO will use to annually assess and evaluate the efficacy of the comprehensive statewide education and outreach program.
(i)A description of how the PRO will coordinate with other PROs to avoid confusion to the public regarding program activities, including, but not limited to, education and outreach, including establishing point-of-sale messaging, a joint website, and toll-free telephone number for purposes of providing information on the program.
(j)Coordination with, and a description of the efforts and methods used to coordinate activities with, all of the following entities who are responsive to a request from the PRO:
(1)Other PROs.
(2)Existing collection, reuse, and recycling programs.
(3)Community-based organizations, including nonprofit thrift stores as described in Section 6363.3 of the Revenue and Taxation Code, that contact the PRO and that are qualified to run or support collection events.
(k)A contingency plan in the event the plan expires or is revoked. The contingency plan shall guarantee that the contracts, financial data, and other necessary authority and assets to operate the program shall vest in a trustee approved by the department. The trustee shall operate the most recently approved plan, subject to the direction of the department, until such time as a new plan is approved. Upon plan expiration or revocation of the plan, the balance of the PROs operating reserves collected pursuant to paragraph (4) of subdivision (b) shall be transferred to the control of the trustee within five calendar days. All documents, digital records, contracts, and files related to the operation of the plan shall be transferred to the control of the trustee within five calendar days.
(l)Develop a program to support laundries for laundering covered products that includes funding for technology that reduces water consumption and improves microfiber and microplastic filtration.
(m)A description of how the plan will address the presence of PFAS and other chemicals regulated under Chapter 6.6 (commencing with Section 25249.5) of Division 20 of the Health and Safety Code and Chapter 12.5 (commencing with Section 108945) of, and Chapter 13.5 (commencing with Section 108970) of, Part 3 of Division 104 of the Health and Safety Code, including, but not limited to, the actions and investments needed to avoid contamination in the recycling process and available end markets for recycled material that cannot be remanufactured into textiles or textile articles in California.
(n)Develop strategies to address design challenges for covered products, including, but not limited to, compostability, reduction and removal of harmful chemicals, microfiber and microplastic shedding, and mixed material blends.
(o)A description of how the PRO will minimize the negative environmental and human health impacts of all operations associated with the plan, including impacts from collected covered products exported outside of California.
(p)A process by which the financial activities of the PRO or individual producers that are related to implementation of the plan will be subject to an independent audit consistent with generally accepted accounting principles (GAAP).
42984.11.(a)A producer of a covered product sold, offered for sale, imported, or distributed in or into the state shall achieve the performance standards pursuant to subdivision (c) of Section 42984.10.
(b)After March 1, 2032, a producer of a covered product sold, offered for sale, imported, or distributed in or into the state shall achieve the performance standards adopted by the department pursuant to Section 42984.19.
42984.12.(a)A PRO shall review its plan at least every five years after approval by the department and determine whether revisions to the plan are necessary.
(b)If a PRO determines that revisions to the plan are necessary, the PRO shall submit to the department a revised plan for review and approval employing the procedures set forth in Section 42984.8. The stewardship organization shall submit the revised plan to the department pursuant to this subdivision at least 12 months prior to the review deadline outlined in subdivision (c). The revised plan shall include a cover letter that summarizes the revisions to the plan within 90 days of the review deadline outlined pursuant to subdivision (a).
(c)If a PRO determines that no revisions to the plan are necessary, the PRO shall send a letter to the department 12 months prior to the review deadline outlined in subdivision (a), explaining that the PRO has reviewed the plan and determined that no revisions are needed. The department may disapprove the PROs determination within 30 days of receipt of that determination if the department concludes that the PRO cannot implement the objectives of this chapter without revising the plan. If the department disapproves the PROs determination, the PRO shall submit to the department a revised plan for review and approval employing the procedures set forth in Section 42984.8. The PRO shall submit the revised plan pursuant to this subdivision within 60 days of receipt of the departments disapproval, unless the department determines that additional time is needed.
5.Financial Provisions 42984.13.(a)Each PRO shall pay all administrative and operational costs associated with establishing and implementing the program in which it participates, including, but not limited to, the cost of collection, transportation, sorting, repairing, recycling, and the safe and proper management of covered products.
(b)A PRO shall establish a method for fully funding the PRO in a manner that distributes the programs costs among participating producers that reflects sales volumes and the eco-modulated fee criteria included in the plan pursuant to Section 42984.10. The funding mechanism shall demonstrate adequate funding for all administrative and operational costs of the program, to be borne by participating producers, and shall distribute participating producers costs in consideration of the cost of managing their specific covered products according to the approved plan.
(c)Within nine months of the effective date of the regulations, the department shall notify each PRO of its estimated regulatory costs as the criteria for those costs are defined in the regulations adopted pursuant to Section 42984.2, which includes full personnel costs, related to implementing and enforcing this chapter. This shall include the actual reasonable costs associated with regulation development pursuant to Section 42968.2 and other startup activities prior to plan submittal and approval.
(d)The PRO shall, on a schedule determined by the department, pay the department fees to cover the departments incurred costs as described in subdivision (c). The fees shall not exceed the departments actual and reasonable regulatory costs to implement and enforce this chapter.
(e)(1)The department shall deposit all moneys received from a PRO pursuant to this section into the Textile Stewardship Recovery Fund, which is hereby established in the State Treasury.
(2)Upon appropriation by the Legislature, moneys in the Textile Stewardship Recovery Fund shall be expended by the department to implement and enforce this chapter, as well as to reimburse any outstanding loans made from other funds used to finance regulation, development, and startup costs of the departments activities pursuant to this chapter.
(3)The money in the Textile Stewardship Recovery Fund shall not be expended for any other purpose.
42984.14.(a)Upon approval of the PROs plan, the PRO shall charge each participant producer annual fees that are eco-modulated as described in the plan. The intent of the eco-modulated fee is to incentivize design choices that facilitate the achievement of goals as outlined in the plan, including reuse, repair, and recycling through reduced fees, while using malus fees to disincentivize practices and materials incongruent with the plan. The PRO shall consider existing producer collection, repair, reuse, and recycling programs in developing the eco-modulated fee structure.
(b)The PRO shall account for the costs to ensure each covered material product and covered material product category meet the requirements of the chapter, including minimization of environmental and public health impacts along the entire supply chain of covered materials products or covered material product category.
6.Records, Audits, and Reports 42984.15.(a)A PRO shall keep board minutes, books, and records that clearly reflect the activities and transactions of the PRO.
(b)A PRO shall include in its plan a process by which the financial activities of the organization or individual producers that are related to implementation of the plan will be subject to an independent audit consistent with generally accepted accounting principles (GAAP), which shall be reviewed by the department.
(c)The department may audit the PRO or individual producer annually.
(d)Failure of a PRO or producer, or their respective agent who holds records, to produce documents or data that is requested by the department, required to be collected or generated to carry out operation of the plan in the form and manner determined by the department, as part of a department audit, or review of a third-party audit, constitutes a violation of this chapter.
42984.16.(a)A PRO shall retain an independent public accountant, certified in the United States, to annually audit the accounting books of the PRO. The department shall review the independent certified public accountant audit for compliance with this chapter and consistency with the PROs plan and annual report, submitted pursuant to this chapter. After the department conducts its own audit, the department shall notify the PRO of any conduct or practice that does not comply with this chapter or of any inconsistencies identified in the audit. The PRO may obtain copies of the departments audit, including proprietary information contained in the departments audit, upon request, and withhold from disclosure confidential proprietary information to the extent allowed under Section 1040 of the Evidence Code and Section 7929.000 of the Government Code. The items submitted to the department as part of the independent audit shall include:
(1)Financial statements audited in accordance with generally accepted accounting principles (GAAP).
(2)An audit of the PROs compliance with this chapter.
(3)An audit of the PROs adherence to, execution of, and consistency with its plan.
(b)The PRO shall include the independent audit in its annual report submitted to the department pursuant to Section 42984.17 commencing within 18 months of plan approval by the department. The department shall review the audit for compliance with this chapter and consistency with the PROs plan.
42984.17.A PRO shall annually submit to the department, in the form and manner and by the date determined by the department, an annual report and make that report publicly available on the PROs internet website. The report shall include at minimum, all of the following information for the preceding calendar year unless otherwise specified:
(a)The PROs costs, according to the cost categories established in the plan, and revenues.
(b)A summary of any anticipated changes to allocations in cost categories for the next calendar year.
(c)Any changes to the distribution of a participating producers costs.
(d)The amounts of the eco-modulated fees based on the criteria established pursuant to subdivision (b) of Section 42984.14 and the PROs evaluation of the effectiveness of the eco-modulated fees.
(e)An updated list of producers participating in the plan and an updated list of the names and contact information, including email address, telephone number, and physical and mailing addresses of producers and brands of covered products covered under the plan.
(f)A list of the PROs collection sites, by name, location, and type.
(g)(1)The amount of covered products sold in or into the state by the producers covered by the PROs plan.
(2)The amount described in paragraph (1) shall be broken down by fiber type category and Harmonized Tariff Schedule of the United States (HTS) number.
(h)The total weight of covered products, respectively, that were collected, broken down by fiber type categories.
(i)The total weight of covered products, by category, that were collected and deemed reusable by each respective authorized collector and authorized sorter.
(j)A list of each authorized sorter, authorized repair business, and covered product recycling facility used by the PRO, including both of the following:
(1)Name and location.
(2)Total weight of covered products handled by each location.
(k)The total weight and number of covered products sold in or into the state attributed to a producer, who is a registered participant of the PROs plan, which are collected in the state and reused or recycled by the PRO, including a description of the methodology and information used to determine and calculate these values.
(l)A complete accounting of the ultimate disposition of all covered products collected by the PRO, including the total weight of covered products that were repaired and recycled.
(m)Metrics and a description of the progress toward attaining the performance standards included in the plan.
(n)A description of methods used to collect, transport, repair, and recycle covered products by the PRO, including a description of all of the following:
(1)How the PRO handled and managed covered products according to the waste hierarchy as defined in Section 40051.
(2)How the PRO maximized reuse and recycling of all covered products.
(3)How the PRO minimized disposal of all covered products collected by the PRO.
(4)Results of the PROs assessment of the efficacy of the collection, sorting, and transportation process.
(o)A description of how the PRO provided incentive payments, grants, and market development investments to support the infrastructure necessary to effectively implement the plan, including how incentive payments, grants, and market development investments prioritized infrastructure closer to the point of generation.
(p)A description of outreach efforts and education, including, but not limited to, the PROs evaluation of the efficacy of the comprehensive statewide education and outreach program pursuant to subdivision (g) of Section 42984.10.
(q)A description of how the PRO coordinated with other PROs and entities pursuant to subdivision (j) of Section 42984.10.
(r)A report on activities the PRO has undertaken to prioritize the use of sorting and recycling facilities located closer to the point of generation to minimize transportation emissions and increase accountability for the ultimate disposition of collected covered products.
(s)An analysis of whether the PRO met performance standards established by the PRO pursuant to subdivision (c) of Section 42984.10 or by the department pursuant to Section 42984.19.
(t)A description of how the PRO addressed the presence of PFAS and other chemicals regulated under Chapter 6.6 (commencing with Section 25249.5) of Division 20 of the Health and Safety Code and Chapter 12.5 (commencing with Section 108945) of, and Chapter 13.5 (commencing with Section 108970) of, Part 3 of Division 104 of the Health and Safety Code, including, but not limited to, the actions taken and investments made to avoid contamination in the recycling process, and the availability of end markets for recycled material that could not be remanufactured into textiles or textile articles in California.
(u)Any other information deemed relevant by the PRO for the department to determine compliance with the approved plan.
(v)Any other information required by regulations adopted pursuant to Section 42984.2.
42984.18.(a)No later than 120 days after the date the department receives the annual report submitted by a PRO pursuant to Section 42984.17, the department shall notify the PRO if the annual report is compliant or noncompliant.
(b)If the department determines that the annual report is noncompliant due to failure to meet the requirements of this chapter, the department may require the resubmittal of the annual report or take enforcement action.
7.Department Responsibilities42984.19.After March 1, 2032, the department may establish, review, and may adjust performance standards and the dates by which they are required to be achieved based on information included in the plan and annual reports, other information provided by the PRO, department waste characterization studies, needs assessment, and economic and any other relevant information, as determined by the department.
8.Enforcement and Civil Penalties42984.20.(a)Within 12 months of the effective date of regulations pursuant to Section 42984.2, and on or before July 1 of each year thereafter, the department shall post on its internet website a list of producers that are in compliance with this chapter. The department shall list, as appropriate, the reported brands of covered products for each producer.
(b)A producer that is not listed on the departments internet website pursuant to subdivision (a) that demonstrates compliance with this chapter before the next list is posted by the department may either be added to the internet website or be provided a certification letter from the department stating that the producer of a covered product is in compliance with this chapter. The departments list of compliant entities shall be available on the departments internet website in a machine-readable format.
(c)(1)A retailer, importer, distributor, or online marketplace shall monitor the departments internet website where compliant producers are posted, as provided in subdivision (a), to determine if a producer, brand, or covered product is in compliance with this chapter for that producer of covered products.
(2)Except as provided in subdivision (d), on and after the date a plan is approved by the department pursuant to Section 42984.8, a retailer, importer, distributor, or online marketplace shall not sell, distribute, offer for sale, or import a covered product in or into the state for sale in the state unless the producer of the covered product is listed as in compliance pursuant to this section for that brand and covered product.
(d)(1)Notwithstanding paragraph (2) of subdivision (c), a retailer, importer, distributor, or online marketplace may sell, offer for sale, import, or distribute a covered product if the retailer, importer, distributor, or online marketplace has fulfilled the obligations for those covered products which the retailer, importer, distributor, or online marketplace sells, offers for sale, imports, or distributes pursuant to paragraph (6) of subdivision (s) of Section 42984.3.
(2)Notwithstanding paragraph (2) of subdivision (c), a retailer, importer, distributor, or online marketplace may sell, offer for sale, import, or distribute a covered product if, on the date the retailer or distributor sells or offers for sale the covered product in or into the state, the producer, brand, or covered product was listed as compliant on the departments internet website.
(3)Notwithstanding paragraph (2) of subdivision (c), a retailer or distributor may, for any existing inventory in stock before the initial list was posted by the department pursuant to subdivision (a), sell or distribute that inventory for sale in or into the state.
(e)(1)If the department determines a producer is not in compliance with this chapter, the department shall remove the producer, along with its brands and covered products, from the list of compliant producers posted on the departments internet website pursuant to subdivision (a).
(2)The department shall list on its internet website a producer, along with its brands and covered products, if the department subsequently determines that the producer is in compliance with this chapter.
42984.21.(a)An administrative civil penalty up to the following amounts may be administratively imposed by the department on any person who is in violation of any provision of this chapter:
(1)Ten thousand dollars ($10,000) per day.
(2)Fifty thousand dollars ($50,000) per day if the violation is intentional or knowing.
(b)In assessing or reviewing the amount of a civil penalty imposed pursuant to subdivision (a) for a violation of this chapter, the department or the court shall consider all of the following:
(1)The nature and extent of the violation.
(2)The number and severity of the violation or violations.
(3)The economic effect of the penalty on the violator.
(4)Whether the violator took good faith measures to comply with this chapter and the period of time over which these measures were taken.
(5)The willfulness of the violators misconduct.
(6)The deterrent effect that the imposition of the penalty would have on both the violator and the regulated community.
(7)Any other factor that justice may require.
(c)The department shall establish, through regulations adopted pursuant to Section 42984.2, a process that shall include an informal hearing process by which the penalties will be assessed.
(d)The department shall deposit all penalties collected pursuant to this section into the Textile Stewardship Recovery Penalty Account, which is hereby created in the Textile Stewardship Recovery Fund. Upon appropriation by the Legislature, moneys in the Textile Stewardship Recovery Penalty Account shall be available for expenditure by the department on activities related to the collection and recycling of covered products, grants for related purposes, and the administration and enforcement of this chapter.
(e)The Administrative Adjudication Bill of Rights, as set forth in Chapter 4.5 (commencing with Section 11425.10) of Part 1 of Division 3 of Title 2 of the Government Code, applies to hearings conducted under this chapter and mandates minimum due process.
42984.22.Upon a written finding that a producer, PRO, manufacturer, distributor, retailer, or importer site has not met a material requirement of this chapter, in addition to any other penalties authorized under this chapter, the department may take one or both of the following actions to ensure compliance with the requirements of this chapter, after affording the entity a reasonable opportunity to respond to, or rebut, the finding, take any of the following actions to ensure compliance with the requirements of this chapter:
(a)Revoke the PROs plan approval or require the PRO to resubmit the plan.
(b)Require additional reporting relating to compliance with the material requirement of this chapter that was not met.
42984.23.(a)A producer, PRO, manufacturer, distributor, retailer, or importer shall do both of the following:
(1)Upon request, provide the department with reasonable and timely access, as determined by the department, to its facilities and operations, as necessary to determine compliance with this chapter.
(2)Upon request, within 14 days, 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 five years. All reports and records provided to the department pursuant to this chapter shall be provided under penalty of perjury.
(c)(1)The department may impose administrative civil penalties pursuant to Section 42984.21 on a producer, PRO, manufacturer, distributor, retailer, or importer that fails to provide the department with the access required pursuant to this section.
(2)The department may post a notice on the departments internet website that is maintained pursuant to Section 42984.20 that a producer that fails to provide the department with access pursuant to this section, along with the producers brands and covered products, is no longer in compliance with this chapter.
42984.24.After the time for judicial review under Section 11523 of the Government Code has expired, the department may apply to the small claims court or superior court, depending on the jurisdictional amount and any other remedy sought, in the county where the penalties, restitution, or other remedy was imposed by the department, for a judgment to collect any unpaid civil penalties or restitution or to enforce any other remedy provided by this chapter. The application, which shall include a certified copy of the final agency order or decision, shall constitute a sufficient showing to warrant the issuance of the judgment. The court clerk shall enter the judgment immediately in conformity with the application. The judgment so entered shall have the same force and effect as and shall be subject to all the provisions of law relating to a judgment in a civil action and may be enforced in the same manner as any other judgment of the court. The court shall make enforcement of the judgment a priority.
9.Antitrust Immunity42984.25.(a)Except as provided in subdivision (c), an action specified in subdivision (b) that is taken by a PRO 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) applies to all of the following actions taken by a PRO:
(1)The creation, implementation, or management of a plan approved by the department pursuant to Article 4 (commencing with Section 42984.8) and the determination of the types or quantities of covered products repaired, reused, recycled, or otherwise managed pursuant to a plan.
(2)The determination of the cost and structure of an approved plan.
(3)The establishment, administration, collection, or disbursement of a charge associated with funding the implementation of this chapter.
(c)Subdivision (a) does not apply to an agreement that does any of the following:
(1)Fixes a price of or for covered products, except for an agreement related to costs or charges associated with participation in a plan approved by the department and otherwise in accordance with this chapter.
(2)Fixes the output or production of covered products.
(3)Restricts the geographic area in which, or customers to whom, covered products will be sold.
10.County Authority42984.26.This chapter does not grant a city, county, city and county, special district, or joint powers authority any new authority over solid waste hauling operations pursuant to a franchise agreement and does not affect, limit, or abrogate in any manner any franchise granted to a solid waste enterprise for the handling of solid waste.
11.Online Marketplace42984.27.An online marketplace shall annually do the following in accordance with regulations adopted by the department pursuant to Section 42984.2:
(a)(1)Notify the department and the PRO of all third-party sellers with sales of covered products over one million dollars ($1,000,000) sold on their online marketplace in the preceding year and provide all required information. If a third-party seller does not have any sales in California during the preceding year then the online marketplace shall not provide their information to the department.
(2)The amount of sales described in paragraph (1) includes only those transactions through the online marketplace for which payment is processed by the online marketplace directly or through its payment processor.
(b)Provide all third-party sellers described in (a) with the information on requirements of law as provided by the PRO pursuant to paragraph (8) of subdivision (g) of Section 42984.10.
SEC. 2.The Legislature finds and declares that Section 1 of this act, which adds Sections 42984.8 and 42984.16 to the Public Resources Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
It is in the best interest of the public to provide limited protection of certain financial and sales data of program participants, in order to protect the interests of businesses and the privacy of their data regarding their customers.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
This act may be known, and shall be cited, as the Responsible Textile Recovery Act of 2024.
42984.05.(a)The intent of this chapter is to establish a statewide extended producer responsibility program for apparel and textile articles that emphasizes repair and reuse.
(b)Due to distinct market elements associated with the textile and apparel industry that can utilize direct-to-consumer transactions from an overseas manufacturer to a consumer, the provisions of this chapter associated with online marketplaces are intended to be unique to this sector.
42984.1.(a)The purpose of this chapter is to increase the amount of postconsumer apparel and textile articles that are diverted from landfills and reused, repaired, and recycled into secondary products or otherwise managed in a manner that is consistent with the states hierarchy for waste management practices pursuant to Section 40051.
(b)It is the purpose of this chapter that any producer, regardless of whether that producer is domiciled in California, who sells, offers for sale, or distributes a covered product into the state shall be responsible for complying with this chapter.
42984.2.The department, acting in accordance with Article 1 (commencing with Section 11340) to Article 8 (commencing with Section 11350), inclusive, of the Administrative Procedure Act, as set forth in Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, shall adopt regulations to implement this chapter with an effective date of no earlier than July 1, 2028.
42984.3.(a)(1)Apparel means clothing and accessory items intended for regular wear or formal occasions and outdoor activities. For purposes of this chapter apparel includes only undergarments, shirts, pants, skirts, dresses, overalls, bodysuits, costumes, vests, dancewear, suits, saris, scarves, tops, leggings, school uniforms, leisurewear, athletic wear, sports uniforms, swimwear, formal wear, onesies, bibs, footwear, handbags, backpacks, knitted and woven accessories, jackets, coats, snow pants, ski pants, and everyday uniforms for workwear.
(2)Apparel does not include any of the following:
(A)Personal protective equipment or clothing items for use by the United States military.
(B)Personal protective equipment worn to protect the wearer from health or environmental hazards.
(C)Reusable products designed to collect and absorb urine and feces, or reusable products regulated by the United States Food and Drug Administration that are designed to collect and absorb menstruation or vaginal discharge.
(b)Authorized collector means a person or entity that has entered into an agreement with a PRO to collect covered products.
(c)Authorized sorter means a person or entity that has entered into an agreement with a PRO to sort covered products collected by authorized collectors.
(d)Authorized repair business means a person or entity that has entered into an agreement with a PRO to repair covered products for resale after collection by an authorized collector or after sorting by an authorized sorter.
(e)Brand means a trademark, including both a registered trademark and an unregistered trademark, a logo, a name, a symbol, a word, an identifier, or a traceable mark that identifies a covered product and identifies the owner or licensee of the brand.
(f)Collection box means an unattended container, box, receptacle, or similar device used for soliciting and collecting donations of covered products, including apparel or textile articles.
(g)Collection site means a permanent or temporary location operated by an authorized collector at which covered products are collected and prepared for transport in accordance with the requirements of this chapter.
(h)Consumer means an owner of a covered product, including a person, business, corporation, limited partnership, nonprofit organization, or governmental entity, and includes the ultimate purchaser, owner, or lessee of a covered product, who is not, as to that covered product, the distributor, importer, producer, recycler, retailer, or PRO.
(i)(1)Covered product means an apparel or textile article.
(2)Covered product does not include any of the following:
(A)A product covered under the Used Mattress Recovery and Recycling Act (Chapter 21 (commencing with Section 42985)).
(B)A product covered under the Electronic Waste Recycling Act of 2003 (Chapter 8.5 (commencing with Section 42460)).
(C)A product covered under the Product Stewardship for Carpets law (Chapter 20 (commencing with Section 42970)).
(D)An automated, motorized, battery, or manual window covering that is operated using an electric motor or other automated system, or manually adjusted by pulling cords or lifting mechanisms.
(j)Department means the Department of Resources Recycling and Recovery or a successor agency.
(k)Distributor means a company that has a contractual relationship with one or more producers to market and sell covered products to a retailer.
(l)Importer means either of the following:
(1)A person 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 covered product that is sold, distributed for sale, or offered for sale in or into the state that was manufactured or assembled by a company outside of the United States.
(2)A person importing into the state for sale, distributing for sale, or offering for sale in the state a covered product that was manufactured or assembled by a company physically located outside of the state.
(m)Local jurisdiction means a city, county, city and county, or a regional agency formed pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code or Article 3 (commencing with Section 40970) of Chapter 1 of Part 2 of this code, or a special district that provides solid waste collection services.
(n)Mail-back program means a method of collecting covered products using prepaid, preaddressed mailing envelopes, boxes, or other means that are reusable, recyclable, or compostable.
(o)Needs assessment means a needs assessment prepared pursuant to Section 42984.6.
(p)Nonprofit thrift store has the same meaning as set forth in Section 6363.3 of the Revenue and Taxation Code.
(q)Online marketplace has the same meaning as set forth in Section 1749.8 of the Civil Code.
(r)Person has the same meaning as set forth in Section 40170.
(s)(1)Producer means a person who manufactures a covered product and who owns or is the licensee of the brand or trademark under which that covered product is sold, offered for sale, or distributed for sale in or into the state.
(2)If there is no person in the state who is the producer for purposes of paragraph (1), the producer of the covered product is the owner of a brand or trademark or, if the owner is not in the state, the exclusive licensee of a brand or trademark under which the covered product is sold, imported for sale, offered for sale, or distributed for sale in or into the state, regardless of whether the trademark is registered. For purposes of this subdivision, an exclusive licensee is a person holding the exclusive right to use a trademark or brand in the state in connection with the manufacture, sale, or distribution for sale in or into the state of the covered product.
(3)If there is no person in the state who is the producer for purposes of paragraph (1) or (2), then the producer of the covered product is the person that imports the covered product into the state for sale or distribution.
(4)If there is no other person in the state who is the producer for purposes of paragraphs (1), (2), or (3), the producer of the covered product is the distributor, retailer, or wholesaler who sells the product in or into the state.
(5)For the purposes of this chapter, the sale of a covered product shall be deemed to occur in the state if the covered product is delivered to the consumer in the state.
(6)This chapter does not prohibit a person who manufactures, distributes, imports, or sells the covered material product from assuming the duties and liabilities of producer of the covered product and relieving from those duties and liabilities any other person who manufactures, distributes, imports, or sells the covered product.
(7)Producer does not include a seller that only sells secondhand covered products.
(8)Producer does not include a seller with less than one million dollars ($1,000,000) in annual aggregate global turnover. turnover adjusted annually pursuant to the California Consumer Price Index for All Urban Consumers for all items, as determined by the Department of Industrial Relations. The aggregate global turnover of a producer within the meaning of this chapter shall be calculated by adding together the respective turnovers of all of the following:
(A)The producer concerned.
(B)Those entities in which the producer is concerned, directly or indirectly, as follows:
(i)Owns more than one-half the capital or business assets.
(ii)Has the power to exercise more than one-half the voting rights.
(iii)Has the power to appoint more than one-half the members of the supervisory board, the administrative board, or bodies legally representing the undertakings.
(iv)Has the right to manage the entities affairs.
(C)Those entities that have in the producer concerned the rights or powers listed in subparagraph (B).
(D)Those entities in which an entity referred to in subparagraph (C) has the rights or powers listed in subparagraph (B).
(E)Those entities in which two or more entities as referred to in subparagraphs (A) to (D), inclusive, jointly have the rights or powers listed in subparagraph (B).
(t)Producer responsibility organization or PRO means an organization that is exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986, is formed for the purpose of implementing a plan to meet the requirements of this chapter, and is approved by the department.
(u)Producer responsibility plan or plan means the plan developed by the PRO for the collection, transportation, repair, recycling, and the safe and proper management of covered products pursuant to subdivision (a) of Section 42984.8 and submitted to the department for approval pursuant to subdivision (b) of Section 42984.8.
(v)Recycle or recycling has the same meaning as set forth in paragraphs (1) and (2) of subdivision (aa) of Section 42041. To be considered recycled, covered products shall be recycled into new, reused, or reconstituted products.
(w)Repair means any alteration or improvement of damaged covered product deemed worth the cost of repair by criteria established by the plan, including, but not limited to, any of the following:
(1)Redesigning and repurposing.
(2)Mending rips, holes, seams, and hems.
(3)Removing and repairing surface damage, such as pilling, stain removal, or abrasion.
(4)Securing and reattaching buttons and other fastenings.
(5)Dyeing, redyeing, overdyeing, or printing of images on covered products.
(6)Preparation for reuse and resale.
(x)Responsible end market has the same meaning as set forth in subdivision (ad) of Section 42041.
(x)(y)Retailer means a person who sells or offers for sale a covered product in or into the state to a person through any means, including, but not limited to, sales outlets, catalogs, the telephone, the internet, or any electronic means.
(y)(z)Reuse means the resale of a collected covered product to a consumer for its original intended use with or without repair.
(z)(aa)Secondhand covered product means any covered product that has been previously owned by a consumer.
(aa)(ab)Secondhand markets means a retailer who sells secondhand covered products, including, but not limited to, thrift stores, collection box operators, online resale platforms, and flea markets.
(ac)Sell has the same meaning as set forth in Section 6006 of the Revenue and Taxation Code.
(ab)(ad)Stewardship program means a program established by a PRO pursuant to this chapter for the free, convenient, and safe collection, transportation, repair, recycling, and otherwise proper management of covered products.
(ac)(ae)(1)Textile article means an item customarily used in households or businesses that are made entirely or primarily from a natural, artificial, or synthetic fiber, yarn, or fabric. For purposes of this chapter, textile article includes only blankets, curtains, fabric window coverings, knitted and woven accessories, towels, tapestries, bedding, tablecloths, napkins, linens, and pillows.
(2)Textile article does not include single-use products including paper towels, paper napkins, toilet paper, facial tissue, and wet or dry wipes.
(ad)(af)Third-party seller has the same meaning as set forth in Section 1749.8 of the Civil Code.
2.Producers42984.4.(a)(1)Producers of covered products shall form and join a PRO for the purposes of complying with this chapter. The governing body of the PRO shall submit an application to the department by January 1, 2026, describing how the PRO meets the requirements to be an approved PRO pursuant to this chapter. If the department approves the PRO, the PRO shall proceed to carry out the requirements of this chapter. If applications for more than one PRO are submitted to the department, the department shall determine which proposed PRO can most effectively implement this chapter.
(2)The department shall, by, March 1, 2026, approve a PRO that meets the requirements of this chapter and both of the following:
(A)The PRO has a governing board consisting of producers that are diverse in size and type and that represent the diversity of covered products placed in the market by those entities. The governing board may include ex officio members involved in the collection, sorting, repair, reuse, recycling, or management of covered products.
(B)The PRO demonstrates that it has adequate financial responsibility and financial controls in place, including fraud prevention measures and an audit schedule, to ensure proper management of funds.
(3)All producers of covered products shall, by July 1, 2026, join the PRO approved by the department.
(4)After January 1, 2035, upon the determination of the director that an additional PRO would be beneficial in satisfying the requirements of this chapter, the department may approve additional PROs that meet the requirements of this chapter and that meet all of the following requirements:
(A)The proposed PRO submits to the department, and agrees to cover the departments reasonable costs to review, a petition to establish a new PRO.
(B)The proposed PRO is composed of a sufficient number of producers to jointly comply with the requirements of this chapter.
(C)The proposed PRO agrees to cover the costs of all of the provisions of this chapter applicable to the proposed PRO and its participant producers.
(b)Each producer covered under a PRO shall register with that PRO in accordance with the procedures and requirements established by that PRO and shall comply with those procedures and requirements.
(c)Upon approval of a plan pursuant to Section 42984.8, or commencing July 1, 2030, whichever is sooner, a producer shall be subject to penalties under Section 42984.21 unless all of the following are met:
(1)The producer is a participant of the PRO.
(2)All covered products are accounted for in the plan.
(3)If an entity does not meet the definition of a producer and is not subject to this chapter before January 1, 2030, but, at any point, after January 1, 2030, meets the definition of a producer, the producer shall, within 90 days, become a participant of the PRO and comply with the requirements of this chapter.
(d)A producer is not in compliance with this chapter and is subject to penalties pursuant to this chapter if a covered product sold or offered for sale by the producer is not subject to an approved PRO plan that has been approved by the department pursuant to Section 42984.8.
42984.5.(a)No later than 30 days after the effective date of the regulations implementing this chapter, individual producers or the PRO shall provide to the department, in a form and manner established by the department, a list of brands of covered products that each producer sells, distributes for sale, imports for sale, or offers for sale in or into the state.
(b)A producer or PRO shall update the list described in subdivision (a) and provide the updated list to the department on or before January 15 of each year or upon request of the department.
3.Producer Responsibility Organizations (PROs)42984.6.(a)(1)A PRO shall prepare the initial statewide needs assessment designed to determine the necessary steps and investment needed for covered products, to achieve the requirements of this chapter. Needs assessments, or components thereof, shall be updated every five years or as necessary to ensure the requirements of this chapter are met. An initial needs assessment for covered products shall be completed before the completion and approval of any producer responsibility plan for covered products. The PRO may select an independent third-party contractor to complete the needs assessment.
(2)A PRO shall cover the cost of developing any needs assessment and any update to a needs assessment.
(3)A PRO may prepare more than one needs assessment, with each assessment specific to one or more covered products subject to this chapter, or may prepare one comprehensive needs assessment that includes all covered material subject to this chapter.
(4)A PRO shall consult with the department and local jurisdictions when preparing the needs assessment.
(5)The initial needs assessment, and any updates, shall be submitted to the department by March 1, 2027. The department shall review and approve, conditionally approve, or disapprove the needs assessment as meeting the requirements of this chapter within 90 days of submission.
(6)If there is more than one PRO approved by the department at the time updated needs assessments are completed, then the approved PROs may collaborate on a single needs assessment.
(b)A needs assessment shall comply with all of the following:
(1)Be designed to inform the program budget and PRO plan.
(2)Include an evaluation of all of the following with respect to covered products and covered product categories:
(A)Existing scope and scale of annual covered products diverted to landfill in the state by type of covered product, material composition, and volume and annual covered product recovery diverted to reuse, repair, or recycling in the state or from the state by type of covered product, material composition, and volume.
(B)The current repair, reuse, recycling, collection, sorting, and hauling system in the state and the expanded access and additional repair, reuse, recycling, collection, sorting, disassembly, and hauling options needed to meet the requirements of this chapter.
(C)Current market conditions and the need to create responsible and economically viable end markets in the state, regionally, and globally.
(D)Existing state statutory provisions and funding sources related to market development and financial incentives to help achieve the states goals related to repair, reuse, recycling, collection, sorting, disassembly, and hauling.
(E)Consumer education needs and the methods by which the PRO can best reach consumers with educational messaging.
(F)Consumer behaviors to drive repair, reuse, and recycling and to achieve the requirements of this chapter.
(G)Funding needs and incentive mechanisms necessary to achieve the requirements of this chapter, including coverage of the operation of the stewardship program.
(H)Fee reduction or redistribution mechanisms necessary to achieve the requirements of this chapter, in a manner that equitably distributes the costs among participating producers that reflects production and sales volumes. volumes relevant to the California market. Fee reduction or redistribution mechanisms may consider existing producer collection, repair, reuse, and recycling programs that help achieve the purpose of this chapter.
(I)Actions and investments necessary to provide sufficient access to collection, recycling, composting, processing, and transportation to responsible and economically viable end markets.
(J)An evaluation of the availability or lack of availability of markets for recycled covered material, the need to incentivize reused products or recycled material market development, and the associated investments and actions needed to ensure that the covered products are reused or recycled and have responsible and economically viable and sufficient end markets.
(K)The needs assessment shall include an evaluation of the factors contributing to the presence of perfluoroalkyl and polyfluoroalkyl substances (PFAS) and other chemical contamination, chemicals regulated under Chapter 6.6 (commencing with Section 25249.5) of Division 20 of the Health and Safety Code and Chapter 12.5 (commencing with Section 108945) of, and Chapter 13.5 (commencing with Section 108970) of, Part 3 of Division 104 of the Health and Safety Code, and the actions and investments needed to avoid contamination. contamination related to recycling. This shall include available environmental and public health data and an evaluation of the available end markets for recycled material that cannot be remanufactured into textiles or textile articles in California.
(L)Whether allowing more than one PRO would be beneficial in meeting the requirements of the chapter.
(M)Evaluate what factors will be important to successfully implement the eco-modulated fee structure required by subdivision (b) of Section 42984.10, and what associated data collection will be necessary as part of the plan.
(c)The department shall guide development of a needs assessment, which shall be developed by a PRO in consultation with a broad diversity of local jurisdictions, recycling service providers, and processors that reflect the different needs and challenges presented by managing different covered products. products through final disposition.
42984.7.(a)A PRO shall approve collection sites under its stewardship program that agree to comply with all applicable state, federal, or municipal laws, regulations, and rules and conditions adopted by the PRO.
(b)A PRO shall include as a collection site under its stewardship program any local jurisdiction that offers in writing to participate in the stewardship program and agrees to comply with any PRO requirements that are consistent with that PROs approved plan even if the minimum thresholds described in subdivision (d) of Section 42984.10, as applicable, have been achieved.
(1)A PRO shall include the local jurisdiction as a collection site in the stewardship program within 90 days of receiving the written offer to participate, confirming that the local jurisdiction will comply with any PRO requirements that are consistent with an approved plan, even if the minimum thresholds described in subdivision (d) of Section 42984.10, as applicable, have been achieved.
(2)The PRO shall not be required to respond to offers pursuant to this paragraph until the PROs plan has been approved by the department.
(c)A PRO may suspend or terminate a collection site that does not comply with all applicable state, federal, or municipal laws and regulations or adhere to the rules and conditions imposed by the PRO.
(d)A collection site shall be operated and managed to ensure that covered products are collected safely and handled in accordance with all applicable state, federal, and municipal laws and regulations and the rules and conditions of the plan. Authorized collectors and authorized sorters may divert reusable covered products for sale in secondhand markets.
(e)A PRO shall require all contractors to pay at least the state minimum wage.
(f)Each participant of a PRO with an approved plan shall comply with the requirements of this chapter. The PRO shall notify the department within 30 calendar days of any the following:
(1)The end of any three-month period in which the PRO unsuccessfully attempted to obtain a fee, records, or information from a participant producer, or received incomplete or incorrect records or information.
(2)The date a producer no longer participates in the PROs approved plan.
(3)Any instance of noncompliance by a participant producer.
4.Producer Responsibility Plan for Covered Products42984.8.(a)Within 12 months of the effective date of the regulations adopted by the department pursuant to Section 42984.2, a PRO shall develop and submit to the department a complete plan, in a form and manner determined by the department, in accordance with the requirements of this chapter, for the collection, transportation, repair, sorting, recycling, and the safe and proper management of covered products in the state. No PRO serving more than one producer may limit its stewardship plan for covered products to the covered products of the producers participating in that stewardship program.
(b)The department shall review the stewardship plan for compliance with this chapter and shall approve, disapprove, or conditionally approve the plan within 120 days of receipt of the plan.
(c)(1)If the department disapproves a plan submitted by a PRO, the department shall explain how the plan does not comply with this chapter and provide written notice to the PRO within 60 days of disapproval. The PRO may resubmit to the department a revised plan within 30 days of the date the written notice was issued, and the department shall review the revised plan within 60 days of resubmittal.
(2)If the department disapproves a revised plan submitted by a PRO, the department shall explain how the plan does not comply with this chapter and provide written notice to the PRO within 60 days of disapproval. The PRO shall then revise and resubmit the plan consistent with the departments direction within 30 days, otherwise the disapproval is final and the PRO and producers may be subject to penalties.
(3)By July 1, 2030, a PRO shall have a complete plan approved by the department and each producer shall be subject to an approved plan to be in compliance with this chapter.
(d)Within three months of approval by the department, a PRO shall begin to implement the approved plan.
(e)A PRO with an approved plan shall submit any proposed substantial change to the plan to the department for approval employing the procedures set forth in this section.
(f)The approved plan shall be a public record, except that financial or sales data reported to the department by the PRO is not a public record for purposes of the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and shall not be open to public inspection. The department may release financial or sales data in summary form only so the information cannot be attributable to a specific producer or distributor or to any other entity.
42984.9.The PRO shall fully implement the approved plan within 12 months of the departments approval of the plan pursuant to Section 42984.8.
42984.10.A plan for covered products shall be designed to accept and manage all postconsumer covered products and shall include all of the following:
(a)The names and contact information, including email address, phone number, and mailing and physical addresses, of producers and brands of covered products covered under the plan.
(b)(1)A description of the method to establish and administer a means for fully funding the PRO in a manner that distributes the PROs costs among the producers that are part of the stewardship organization using a per unit eco-modulated fee that reflects California sales volumes volumes, existing producer collection, repair, reuse, and recycling programs that help achieve the purpose of this chapter, and the cost of reusing, repairing, recycling, or otherwise managing covered products pursuant to subdivision (a) of Section 42984.4.
(2)A five-year budget that establishes a funding level sufficient to operate the PRO in a prudent and responsible manner. The budget shall demonstrate how estimated revenues will cover all budgeted costs for each cost category.
(3)Budgeted costs shall include, but not be limited to, administrative costs, education and outreach costs, operational costs, capital costs, and a reserve to operate the PRO should there be unexpected events, such as losses of income, and large unbudgeted expenses in order to protect the recycling infrastructure the PRO relies upon in its plan, during any lapse in producer participation during the life of the program. The plan shall include a description of the types of activities related to each line-item cost category. The reserve cost category shall include a reserve level amount and description justifying the reserve level amount indicated.
(4)The PRO shall maintain reserve funds sufficient to operate the plan for no less than six months. If a new plan submitted by a PRO is approved by the department, the PRO shall establish its reserve and maintain the required reserve fund balance by the end of the second year of plan operation.
(5)Administrative costs shall include the departments actual and reasonable regulatory costs, which include full personnel costs, to implement and enforce this chapter as the criteria for all the costs that are defined in the regulations adopted pursuant to Section 42984.2. For the purposes of this paragraph, PRO implementation begins once the department approves a PROs plan, except the departments costs shall include actual regulatory development costs and other startup costs incurred prior to plan submittal and approval.
(c)Quantifiable five-year and annual performance standards and metrics unless or until the department publishes performance standards pursuant to Section 42984.19. The PRO shall amend its plan to meet or exceed the performance standards published by the department.
(d)A description of how the PRO will provide for a free and convenient dropoff or collection system for covered products, which shall include permanent collection sites and may include temporary collection sites and mail-back options, in each county of the state that meets both of the following requirements:
(1)Provides for a minimum of 10 permanent collection sites or one permanent collection site per 25,000 people, whichever is greater, except as provided below:
(A)A county with a population of 18,000 and under, as reported annually by the Department of Finance, shall have a minimum of three collection locations.
(B)A county with a population of between 18,001 and 50,000, inclusive, as reported annually by the Department of Finance, shall have a minimum of four collection locations.
(C)A county with a population between 50,001 and 100,000, inclusive, as reported annually by the Department of Finance, shall have a minimum of eight collection locations.
(2)Provides for a reasonable geographic spread of permanent collection sites and an explanation for the geographic spread.
(e)A description of how collection sites will be authorized and managed, including all of the following:
(1)A description of the process by which local jurisdictions can request to be a collection site pursuant to Section 42984.7.
(2)A description of how the PRO will provide to collection sites at no cost the appropriate containers for covered products, training, signage, safety guidance, and educational materials.
(3)An explanation of the process by which the PRO will provide for the transport of covered products at no cost from the collection sites to an authorized sorter, or directly to an authorized repair business, or recycling facility.
(4)A description of how collection sites will be allowed to divert collected covered products to domestic secondhand markets for reuse. Any diversion by collection sites pursuant to this paragraph shall be consistent with the rules established pursuant to paragraph (5).
(5)A list of all proposed rules, conditions, and requirements for authorized collectors, authorized sorters, and authorized repair businesses, including a template proposed agreement for each of those types of entities, as applicable.
(6)A description of how the PRO will prioritize the use of secondhand markets and nonprofit thrift stores, as described in Section 6363.3 of the Revenue and Taxation Code, when establishing collection sites to meet the minimum requirements in subdivision (d).
(7)How collection sites will be instructed to identify and reject counterfeit covered items. products.
(f)A description of the process by which collected covered products will be sorted, transported, processed, reused, and recycled following collection at collection sites, including all of the following:
(1)A description of how covered products will be handled and managed according to the waste management practices pursuant to Section 40051, including both of the following:
(A)(i)How the plan will prioritize the reuse, including repair, of collected covered products.
(ii)Products designed for use by infants and children under 12 years of age with components that pose a risk of detachment, thus creating choking hazards, or containing components subject to Part 1303 (commencing with Section 1303.1) and Part 1307 (commencing with Section 1307.1) of Title 16 of the Code of Federal Regulations, including, but not limited to, metallic, vinyl, or plastic snaps, zippers, grommets, closures, or appliques may be excluded from repair and reuse by the PRO.
(B)(i)How the plan will include the incentive payments, grants, and market development investments specified in clause (vii) to encourage reuse over recycling and other methods.
(ii)A description of how covered products will be sorted by authorized sorters, including a description of how the flow of covered products to and from authorized collectors, authorized sorters, authorized repair businesses, and recyclers will be tracked through final disposition.
(iii)A description of how the PRO will maximize the reuse and recycling of all covered products.
(iv)A description of how the PRO will minimize disposal of covered products collected by the PRO.
(v)A description of how the PRO will prioritize, to the extent feasible, the use and development of sorting, repair, and recycling facilities located closer to the point of collection to minimize transportation-related emissions and increase accountability for the ultimate disposition of the covered products.
(vi)A description of the annual assessment the PRO will conduct and the metrics it will use to determine how collection, sorting, and transportation outcomes aligned with projections.
(vii)A description of how the plan will provide incentive payments, grants, and market development investments to support the infrastructure necessary to effectively implement the plan, including how incentive payments, grants, and market development investments will prioritize infrastructure closer to the point of generation pursuant to clause (v).
(viii)A description of how the actions taken pursuant to clause (vii) will ensure that covered products are reused or recycled and have responsible and economically viable end markets.
(g)A comprehensive statewide education and outreach program designed to educate consumers and promote participation in the program offered by the PRO. At a minimum, the comprehensive statewide education and outreach program shall include all of the following:
(1)A description of the education and communications for strategy being implemented to effectively promote participation in the stewardship program and provide the information necessary for effective participation by consumers, retailers, distributors, wholesalers, local jurisdictions, and others.
(2)A joint internet website in coordination with all other PROs, as applicable, that publicizes the location of collection sites and provides information to consumers on how to drop off covered products at the free and convenient network of collection sites offered by the PRO, including any information reasonably necessary to safely and conveniently access the collection, repair, and recycling services offered by the PRO.
(3)Signage that is prominently displayed and easily visible.
(4)All signage and materials required for collection sites by the PRO, and the method by which collection sites can access replacement materials at no cost to the collection site.
(5)A description of efforts to support participation by all California communities, including a description of efforts to communicate with consumers in languages other than English.
(6)Promotional materials or activities, or both, that explain the purpose of the PRO and the means by which it is being carried out.
(7)A description of how the PRO will encourage users to separate products that are not covered products from covered products, when appropriate, before submitting the covered products to an authorized collection site or mail-back program.
(8)Materials designed to inform third-party sellers on online platforms of their duty to comply with the law and how to join the PRO.
(9)Information to the public on secondhand markets and the benefits of reuse, including repair.
(10)(A)The statewide education and outreach program shall promote the safe and proper management of covered products, including information on where consumers can purchase repaired and reused covered products. This includes education and training for authorized collectors to incentivize domestic resale of usable covered products.
(B)The statewide education and outreach program shall not promote the disposal of covered products in a manner inconsistent with the services offered by the plan.
(C)The statewide education and outreach plan shall include information for consumers about how to avoid improper disposal of covered products.
(h)A description of the strategies, goals, and metrics the PRO will use to annually assess and evaluate the efficacy of the comprehensive statewide education and outreach program.
(i)A description of how the PRO will coordinate with other PROs to avoid confusion to the public regarding program activities, including, but not limited to, education and outreach, including establishing point-of-sale messaging, a joint website, and toll-free telephone number for purposes of providing information on the program.
(j)Coordination with, and a description of the efforts and methods used to coordinate activities with, all of the following entities who are responsive to a request from the PRO:
(1)Other PROs.
(2)Existing collection, reuse, and recycling programs.
(3)Community-based organizations, including nonprofit thrift stores as described in Section 6363.3 of the Revenue and Taxation Code, that contact the PRO and that are qualified to run or support collection events.
(k)A contingency plan in the event the plan expires or is revoked. The contingency plan shall guarantee that the contracts, financial data, and other necessary authority and assets to operate the program shall vest in a trustee approved by the department. The trustee shall operate the most recently approved plan, subject to the direction of the department, until such time as a new plan is approved. Upon plan expiration or revocation of the plan, the balance of the PROs operating reserves collected pursuant to paragraph (4) of subdivision (b) shall be transferred to the control of the trustee within five calendar days. All documents, digital records, contracts, and files related to the operation of the plan shall be transferred to the control of the trustee within five calendar days.
(l)Develop a program to support laundries for laundering covered products that includes funding for technology that reduces water consumption and improves microfiber and microplastic filtration.
(m)A description of how the plan will address the presence of PFAS and other chemical contamination, chemicals regulated under Chapter 6.6 (commencing with Section 25249.5) of Division 20 of the Health and Safety Code and Chapter 12.5 (commencing with Section 108945) of, and Chapter 13.5 (commencing with Section 108970) of, Part 3 of Division 104 of the Health and Safety Code, including, but not limited to, the actions and investments needed to avoid contamination in the recycling process and available end markets for recycled material that cannot be remanufactured into textiles or textile articles in California.
(n)Develop strategies to address design challenges for covered products, including, but not limited to, compostability, reduction and removal of harmful chemicals, microfiber and microplastic shedding, and mixed material blends.
(o)A description of how the PRO will minimize the negative environmental and human health impacts of all operations associated with the plan, including impacts from collected covered products exported outside of California.
(p)A process by which the financial activities of the PRO or individual producers that are related to implementation of the plan will be subject to an independent audit consistent with generally accepted accounting principles (GAAP).
42984.11.(a)A producer of a covered product sold, offered for sale, imported, or distributed in or into the state shall achieve the performance standards pursuant to subdivision (c) of Section 42984.10.
(b)After March 1, 2032, a producer of a covered product sold, offered for sale, imported, or distributed in or into the state shall achieve the performance standards adopted by the department pursuant to Section 42984.19.
42984.12.(a)A PRO shall review its plan at least every five years after approval by the department and determine whether revisions to the plan are necessary.
(b)If a PRO determines that revisions to the plan are necessary, the PRO shall submit to the department a revised plan for review and approval employing the procedures set forth in Section 42984.8. The stewardship organization shall submit the revised plan to the department pursuant to this subdivision at least 12 months prior to the review deadline outlined in subdivision (c). The revised plan shall include a cover letter that summarizes the revisions to the plan within 90 days of the review deadline outlined pursuant to subdivision (a).
(c)If a PRO determines that no revisions to the plan are necessary, the PRO shall send a letter to the department 12 months prior to the review deadline outlined in subdivision (a), explaining that the PRO has reviewed the plan and determined that no revisions are needed. The department may disapprove the PROs determination within 30 days of receipt of that determination if the department concludes that the PRO cannot implement the objectives of this chapter without revising the plan. If the department disapproves the PROs determination, the PRO shall submit to the department a revised plan for review and approval employing the procedures set forth in Section 42984.8. The PRO shall submit the revised plan pursuant to this subdivision within 60 days of receipt of the departments disapproval, unless the department determines that additional time is needed.
5.Financial Provisions 42984.13.(a)Each PRO shall pay all administrative and operational costs associated with establishing and implementing the program in which it participates, including, but not limited to, the cost of collection, transportation, sorting, repairing, recycling, and the safe and proper management of covered products.
(b)A PRO shall establish a method for fully funding the PRO in a manner that distributes the programs costs among participating producers that reflects sales volumes and the eco-modulated fee criteria included in the plan pursuant to Section 42984.10. The funding mechanism shall demonstrate adequate funding for all administrative and operational costs of the program, to be borne by participating producers, and shall distribute participating producers costs in consideration of the cost of managing their specific covered products according to the approved plan.
(c)Within nine months of the effective date of the regulations, the department shall notify each PRO of its estimated regulatory costs as the criteria for those costs are defined in the regulations adopted pursuant to Section 42984.2, which includes full personnel costs, related to implementing and enforcing this chapter. This shall include the actual reasonable costs associated with regulation development pursuant to Section 42968.2 and other startup activities prior to plan submittal and approval.
(d)The PRO shall, on a schedule determined by the department, pay the department fees to cover the departments incurred costs as described in subdivision (c). The fees shall not exceed the departments actual and reasonable regulatory costs to implement and enforce this chapter.
(e)(1)The department shall deposit all moneys received from a PRO pursuant to this section into the Textile Stewardship Recovery Fund, which is hereby established in the State Treasury.
(2)Upon appropriation by the Legislature, moneys in the Textile Stewardship Recovery Fund shall be expended by the department to implement and enforce this chapter, as well as to reimburse any outstanding loans made from other funds used to finance regulation, development, and startup costs of the departments activities pursuant to this chapter.
(3)The money in the Textile Stewardship Recovery Fund shall not be expended for any other purpose.
42984.14.(a)Upon approval of the PROs plan, the PRO shall charge each participant producer annual fees that are eco-modulated as described in the plan. The intent of the eco-modulated fee is to incentivize design choices that facilitate the achievement of goals as outlined in the plan, including reuse, repair, and recycling through reduced fees, while using malus fees to disincentivize practices and materials incongruent with the plan. The PRO shall consider existing producer collection, repair, reuse, and recycling programs in developing the eco-modulated fee structure.
(b)The PRO shall account for the costs to ensure each covered material and covered material category meet the requirements of the chapter, including minimization of environmental and public health impacts along the entire supply chain of covered materials or covered material category.
6.Records, Audits, and Reports 42984.15.(a)A PRO shall keep board minutes, books, and records that clearly reflect the activities and transactions of the PRO.
(b)A PRO shall include in its plan a process by which the financial activities of the organization or individual producers that are related to implementation of the plan will be subject to an independent audit consistent with generally accepted accounting principles (GAAP), which shall be reviewed by the department.
(c)The department may audit the PRO or individual producer annually.
(d)Failure of a PRO or producer, or their respective agent who holds records, to produce documents or data that is requested by the department, required to be collected or generated to carry out operation of the plan in the form and manner determined by the department, as part of a department audit, or review of a third-party audit, constitutes a violation of this chapter.
42984.16.(a)A PRO shall retain an independent public accountant, certified in the United States, to annually audit the accounting books of the PRO. The department shall review the independent certified public accountant audit for compliance with this chapter and consistency with the PROs plan and annual report, submitted pursuant to this chapter. After the department conducts its own audit, the department shall notify the PRO of any conduct or practice that does not comply with this chapter or of any inconsistencies identified in the audit. The PRO may obtain copies of the departments audit, including proprietary information contained in the departments audit, upon request, and withhold from disclosure confidential proprietary information to the extent allowed under Section 1040 of the Evidence Code and Section 7929.000 of the Government Code. The items submitted to the department as part of the independent audit shall include:
(1)Financial statements audited in accordance with generally accepted accounting principles (GAAP).
(2)An audit of the PROs compliance with this chapter.
(3)An audit of the PROs adherence to, execution of, and consistency with its plan.
(b)The PRO shall include the independent audit in its annual report submitted to the department pursuant to Section 42984.17 commencing within 18 months of plan approval by the department. The department shall review the audit for compliance with this chapter and consistency with the PROs plan.
42984.17.A PRO shall annually submit to the department, in the form and manner and by the date determined by the department, an annual report and make that report publicly available on the PROs internet website. The report shall include at minimum, all of the following information for the preceding calendar year unless otherwise specified:
(a)The PROs costs, according to the cost categories established in the plan, and revenues.
(b)A summary of any anticipated changes to allocations in cost categories for the next calendar year.
(c)Any changes to the distribution of a participating producers costs.
(d)The amounts of the eco-modulated fees based on the criteria established pursuant to subdivision (b) of Section 42984.14 and the PROs evaluation of the effectiveness of the eco-modulated fees.
(e)An updated list of producers participating in the plan and an updated list of the names and contact information, including email address, telephone number, and physical and mailing addresses of producers and brands of covered products covered under the plan.
(f)A list of the PROs collection sites, by name, location, and type.
(g)(1)The amount of covered products sold in or into the state by the producers covered by the PROs plan.
(2)The amount described in paragraph (1) shall be broken down by fiber type category and Harmonized Tariff Schedule of the United States (HTS) number.
(h)The total weight of covered products, respectively, that were collected, broken down by fiber type categories.
(i)The total weight of covered products, by category, that were collected and deemed reusable by each respective authorized collector and authorized sorter.
(j)A list of each authorized sorter, authorized repair business, and covered product recycling facility used by the PRO, including both of the following:
(1)Name and location.
(2)Total weight of covered products handled by each location.
(k)The total weight and number of covered products sold in or into the state attributed to a producer, who is a registered participant of the PROs plan, which are collected in the state and reused or recycled by the PRO, including a description of the methodology and information used to determine and calculate these values.
(l)A complete accounting of the ultimate disposition of all covered products collected by the PRO, including the total weight of covered products that were repaired and recycled.
(m)Metrics and a description of the progress toward attaining the performance standards included in the plan.
(n)A description of methods used to collect, transport, repair, and recycle covered products by the PRO, including a description of all of the following:
(1)How the PRO handled and managed covered products according to the waste hierarchy as defined in Section 40051.
(2)How the PRO maximized reuse and recycling of all covered products.
(3)How the PRO minimized disposal of all covered products collected by the PRO.
(4)Results of the PROs assessment of the efficacy of the collection, sorting, and transportation process.
(o)A description of how the PRO provided incentive payments, grants, and market development investments to support the infrastructure necessary to effectively implement the plan, including how incentive payments, grants, and market development investments prioritized infrastructure closer to the point of generation.
(p)A description of outreach efforts and education, including, but not limited to, the PROs evaluation of the efficacy of the comprehensive statewide education and outreach program pursuant to subdivision (g) of Section 42984.10.
(q)A description of how the PRO coordinated with other PROs and entities pursuant to subdivision (j) of Section 42984.10.
(r)A report on activities the PRO has undertaken to prioritize the use of sorting and recycling facilities located closer to the point of generation to minimize transportation emissions and increase accountability for the ultimate disposition of collected covered products.
(s)An analysis of whether the PRO met performance standards established by the PRO pursuant to subdivision (c) of Section 42984.10 or by the department pursuant to Section 42984.19.
(t)A description of how the PRO addressed the presence of PFAS and other chemical contamination, chemicals regulated under Chapter 6.6 (commencing with Section 25249.5) of Division 20 of the Health and Safety Code and Chapter 12.5 (commencing with Section 108945) of, and Chapter 13.5 (commencing with Section 108970) of, Part 3 of Division 104 of the Health and Safety Code, including, but not limited to, the actions taken and investments made to avoid contamination, contamination in the recycling process, and the availability of end markets for recycled material that could not be remanufactured into textiles or textile articles in California.
(u)Any other information deemed relevant by the PRO for the department to determine compliance with the approved plan.
(v)Any other information required by regulations adopted pursuant to Section 42984.2.
42984.18.(a)No later than 120 days after the date the department receives the annual report submitted by a PRO pursuant to Section 42984.17, the department shall notify the PRO if the annual report is compliant or noncompliant.
(b)If the department determines that the annual report is noncompliant due to failure to meet the requirements of this chapter, the department may require the resubmittal of the annual report or take enforcement action.
7.Department Responsibilities42984.19.After March 1, 2032, the department may establish, review, and may adjust performance standards and the dates by which they are required to be achieved based on information included in the plan and annual reports, other information provided by the PRO, department waste characterization studies, needs assessment, and economic and any other relevant information. information, as determined by the department.
8.Enforcement and Civil Penalties42984.20.(a)Within 12 months of the effective date of regulations pursuant to Section 42984.2, and on or before July 1 of each year thereafter, the department shall post on its internet website a list of producers that are in compliance with this chapter. The department shall list, as appropriate, the reported brands of covered products for each producer.
(b)A producer that is not listed on the departments internet website pursuant to subdivision (a) that demonstrates compliance with this chapter before the next list is posted by the department may either be added to the internet website or be provided a certification letter from the department stating that the producer of a covered product is in compliance with this chapter. The departments list of compliant entities shall be available on the departments internet website in a machine-readable format.
(c)(1)A retailer, importer, or distributor distributor, or online marketplace shall monitor the departments internet website where compliant producers are posted, as provided in subdivision (a), to determine if a producer, brand, or covered product is in compliance with this chapter for that producer of covered products.
(2)Except as provided in subdivision (d), on and after the date a plan is approved by the department pursuant to Section 42984.8, a retailer, importer, or distributor distributor, or online marketplace shall not sell, distribute, offer for sale, or import a covered product in or into the state for sale in the state unless the producer of the covered product is listed as in compliance pursuant to this section for that brand and covered product.
(d)(1)Notwithstanding paragraph (2) of subdivision (c), a retailer, importer, distributor, or online marketplace may sell, offer for sale, import, or distribute a covered product if the retailer, importer, distributor, or online marketplace has fulfilled the obligations for those covered products pursuant to paragraph (6) of subdivision (s) of Section 42984.3.
(d)(1)(2)Notwithstanding paragraph (2) of subdivision (c), a retailer, importer, or distributor distributor, or online marketplace may sell, offer for sale, import, or distribute a covered product if, on the date the retailer or distributor sells or offers for sale the covered product in or into the state, the producer, brand, or covered product was listed as compliant on the departments internet website.
(2)(3)Notwithstanding paragraph (2) of subdivision (c), a retailer or distributor may, for any existing inventory in stock before the initial list was posted by the department pursuant to subdivision (a), sell or distribute that inventory for sale in or into the state.
(e)(1)If the department determines a producer is not in compliance with this chapter, the department shall remove the producer, along with its brands and covered products, from the list of compliant producers posted on the departments internet website pursuant to subdivision (a).
(2)The department shall list on its internet website a producer, along with its brands and covered products, if the department subsequently determines that the producer is in compliance with this chapter.
42984.21.(a)An administrative civil penalty up to the following amounts may be administratively imposed by the department on any person who is in violation of any provision of this chapter:
(1)Ten thousand dollars ($10,000) per day.
(2)Fifty thousand dollars ($50,000) per day if the violation is intentional or knowing.
(b)In assessing or reviewing the amount of a civil penalty imposed pursuant to subdivision (a) for a violation of this chapter, the department or the court shall consider all of the following:
(1)The nature and extent of the violation.
(2)The number and severity of the violation or violations.
(3)The economic effect of the penalty on the violator.
(4)Whether the violator took good faith measures to comply with this chapter and the period of time over which these measures were taken.
(5)The willfulness of the violators misconduct.
(6)The deterrent effect that the imposition of the penalty would have on both the violator and the regulated community.
(7)Any other factor that justice may require.
(c)The department shall establish, through regulations adopted pursuant to Section 42984.2, a process that shall include an informal hearing process by which the penalties will be assessed.
(d)The department shall deposit all penalties collected pursuant to this section into the Textile Stewardship Recovery Penalty Account, which is hereby created in the Textile Stewardship Recovery Fund. Upon appropriation by the Legislature, moneys in the Textile Stewardship Recovery Penalty Account shall be available for expenditure by the department on activities related to the collection and recycling of covered products, grants for related purposes, and the administration and enforcement of this chapter.
(e)The Administrative Adjudication Bill of Rights, as set forth in Chapter 4.5 (commencing with Section 11425.10) of Part 1 of Division 3 of Title 2 of the Government Code, applies to hearings conducted under this chapter and mandates minimum due process.
42984.22.(a)Upon a written finding that a producer, PRO, manufacturer, distributor, retailer, or importer site has not met a material requirement of this chapter, in addition to any other penalties authorized under this chapter, the department may take one or both of the following actions to ensure compliance with the requirements of this chapter, after affording the entity a reasonable opportunity to respond to, or rebut, the finding, take any of the following actions to ensure compliance with the requirements of this chapter:
(1)(a)Revoke the PROs plan approval or require the PRO to resubmit the plan.
(2)(b)Require additional reporting relating to compliance with the material requirement of this chapter that was not met.
42984.23.(a)A producer, PRO, manufacturer, distributor, retailer, or importer shall do both of the following:
(1)Upon request, provide the department with reasonable and timely access, as determined by the department, to its facilities and operations, as necessary to determine compliance with this chapter.
(2)Upon request, within 14 days, 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 five years. All reports and records provided to the department pursuant to this chapter shall be provided under penalty of perjury.
(c)(1)The department may impose administrative civil penalties pursuant to Section 42984.21 on a producer, PRO, manufacturer, distributor, retailer, or importer that fails to provide the department with the access required pursuant to this section.
(2)The department may post a notice on the departments internet website that is maintained pursuant to Section 42984.20 that a producer that fails to provide the department with access pursuant to this section, along with the producers brands and covered products, is no longer in compliance with this chapter.
42984.24.After the time for judicial review under Section 11523 of the Government Code has expired, the department may apply to the small claims court or superior court, depending on the jurisdictional amount and any other remedy sought, in the county where the penalties, restitution, or other remedy was imposed by the department, for a judgment to collect any unpaid civil penalties or restitution or to enforce any other remedy provided by this chapter. The application, which shall include a certified copy of the final agency order or decision, shall constitute a sufficient showing to warrant the issuance of the judgment. The court clerk shall enter the judgment immediately in conformity with the application. The judgment so entered shall have the same force and effect as and shall be subject to all the provisions of law relating to a judgment in a civil action and may be enforced in the same manner as any other judgment of the court. The court shall make enforcement of the judgment a priority.
9.Antitrust Immunity42984.25.(a)Except as provided in subdivision (c), an action specified in subdivision (b) that is taken by a PRO 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) applies to all of the following actions taken by a PRO:
(1)The creation, implementation, or management of a plan approved by the department pursuant to Article 4 (commencing with Section 42984.8) and the determination of the types or quantities of covered products repaired, reused, recycled, or otherwise managed pursuant to a plan.
(2)The determination of the cost and structure of an approved plan.
(3)The establishment, administration, collection, or disbursement of a charge associated with funding the implementation of this chapter.
(c)Subdivision (a) does not apply to an agreement that does any of the following:
(1)Fixes a price of or for covered products, except for an agreement related to costs or charges associated with participation in a plan approved by the department and otherwise in accordance with this chapter.
(2)Fixes the output or production of covered products.
(3)Restricts the geographic area in which, or customers to whom, covered products will be sold.
10.County Authority42984.26.This chapter does not grant a city, county, city and county, special district, or joint powers authority any new authority over solid waste hauling operations pursuant to a franchise agreement and does not affect, limit, or abrogate in any manner any franchise granted to a solid waste enterprise for the handling of solid waste.
11.Online Marketplace42984.27.An online marketplace shall annually do the following in accordance with regulations adopted by the department pursuant to Section 42984.2:
(a)(1)Notify the department and the PRO of all third-party sellers with sales of covered products over one million dollars ($1,000,000) sold on their online marketplace in the preceding year and provide all required information.
(2)The amount of sales described in paragraph (1) includes only those transactions through the online marketplace for which payment is processed by the online marketplace directly or through its payment processor.
(b)Provide all third-party sellers described in (a) with the information on requirements of law as provided by the PRO pursuant to paragraph (8) of subdivision (g) of Section 42984.10.
SEC. 2.The Legislature finds and declares that Section 1 of this act, which adds Sections 42984.8 and 42984.16 to the Public Resources Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
It is in the best interest of the public to provide limited protection of certain financial and sales data of program participants, in order to protect the interests of businesses and the privacy of their data regarding their customers.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
This act may be known, and shall be cited, as the Responsible Textile Recovery Act of 2024.
42984.1.(a)The purpose of this chapter is to increase the amount of postconsumer apparel and textile articles that are diverted from landfills and reused, repaired, and recycled into secondary products or otherwise managed in a manner that is consistent with the states hierarchy for waste management practices pursuant to Section 40051.
(b)It is the purpose of this chapter that any producer, regardless of whether that producer is domiciled in California, who sells, offers for sale, or distributes a covered product into the state shall be responsible for complying with this chapter.
42984.2.The department, acting in accordance with Article 1 (commencing with Section 11340) to Article 8 (commencing with Section 11350), inclusive, of the Administrative Procedure Act, as set forth in Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, shall adopt regulations to implement this chapter with an effective date of no earlier than July 1, 2028.
42984.3.(a)(1)Apparel means clothing and accessory items intended for regular wear or formal occasions and outdoor activities. For purposes of this chapter apparel includes only undergarments, shirts, pants, skirts, dresses, overalls, bodysuits, costumes, vests, dancewear, suits, saris, scarves, tops, leggings, school uniforms, leisurewear, athletic wear, sports uniforms, everyday swimwear, formal wear, onesies, bibs, footwear, handbags, backpacks, knitted and woven accessories, jackets, coats, snow pants, ski pants, and everyday uniforms for workwear.
(2)Apparel does not include any of the following:
(A)Personal protective equipment or clothing items for use by the United States military.
(B)Personal protective equipment worn to protect the wearer from health or environmental hazards.
(C)Reusable products designed to collect and absorb urine and feces, or reusable products regulated by the United States Food and Drug Administration that are designed to collect and absorb menstruation or vaginal discharge.
(b)Authorized collector means a person or entity that has entered into an agreement with a PRO to collect covered products.
(c)Authorized sorter means a person or entity that has entered into an agreement with a PRO to sort covered products collected by authorized collectors.
(d)Authorized repair business means a person or entity that has entered into an agreement with a PRO to repair covered products for resale after collection by an authorized collector or after sorting by an authorized sorter.
(e)Brand means a trademark, including both a registered trademark and an unregistered trademark, a logo, a name, a symbol, a word, an identifier, or a traceable mark that identifies a covered product and identifies the owner or licensee of the brand.
(f)Collection box means an unattended container, box, receptacle, or similar device used for soliciting and collecting donations of covered products, including apparel or textile articles.
(g)Collection site means a permanent or temporary location operated by an authorized collector at which covered products are collected and prepared for transport in accordance with the requirements of this chapter.
(h)Consumer means an owner of a covered product, including a person, business, corporation, limited partnership, nonprofit organization, or governmental entity, and includes the ultimate purchaser, owner, or lessee of a covered product, who is not, as to that covered product, the distributor, importer, producer, recycler, retailer, or PRO.
(i)(1)Covered product means an apparel or textile article.
(2)Covered product does not include any of the following:
(A)A product covered under the Used Mattress Recovery and Recycling Act (Chapter 21 (commencing with Section 42985)).
(B)A product covered under the Electronic Waste Recycling Act of 2003 (Chapter 8.5 (commencing with Section 42460)).
(C)A product covered under the Product Stewardship for Carpets law (Chapter 20 (commencing with Section 42970)).
(D)An automated, motorized, battery, or manual window covering that is operated using an electric motor or other automated system, or manually adjusted by pulling cords or lifting mechanisms.
(j)Department means the Department of Resources Recycling and Recovery or a successor agency.
(k)Distributor means a company that has a contractual relationship with one or more producers to market and sell covered products to a retailer.
(l)Importer means either of the following:
(1)A person 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 covered product that is sold, distributed for sale, or offered for sale in or into the state that was manufactured or assembled by a company outside of the United States.
(2)A person importing into the state for sale, distributing for sale, or offering for sale in the state a covered product that was manufactured or assembled by a company physically located outside of the state.
(m)Local jurisdiction means a city, county, city and county, or a regional agency formed pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code or Article 3 (commencing with Section 40970) of Chapter 1 of Part 2 of this code, or a special district that provides solid waste collection services.
(n)Mail-back program means a method of collecting covered products using prepaid, preaddressed mailing envelopes, boxes, or other means that are reusable, recyclable, or compostable.
(o)Needs assessment means a needs assessment prepared pursuant to Section 42984.6.
(p)Nonprofit thrift store has the same meaning as set forth in Section 6363.3 of the Revenue and Taxation Code.
(q)Online marketplace has the same meaning as set forth in Section 1749.8 of the Civil Code.
(r)Person has the same meaning as set forth in Section 40170.
(s)(1)Producer means a person who manufactures a covered product and who owns or is the licensee of the brand or trademark under which that covered product is sold, offered for sale, or distributed for sale in or into the state.
(2)If there is no person in the state who is the producer for purposes of paragraph (1), the producer of the covered product is the owner of a brand or trademark or, if the owner is not in the state, the exclusive licensee of a brand or trademark under which the covered product is sold, imported for sale, offered for sale, or distributed for sale in or into the state, regardless of whether the trademark is registered. For purposes of this subdivision, an exclusive licensee is a person holding the exclusive right to use a trademark or brand in the state in connection with the manufacture, sale, or distribution for sale in or into the state of the covered product.
(3)If there is no person in the state who is the producer for purposes of paragraph (1) or (2), then the producer of the covered product is the person that imports the covered product into the state for sale or distribution.
(4)If there is no other person in the state who is the producer for purposes of paragraphs (1), (2), or (3), the producer of the covered product is the distributor, retailer, or wholesaler who sells the product in or into the state.
(5)For the purposes of this chapter, the sale of a covered product shall be deemed to occur in the state if the covered product is delivered to the consumer in the state.
(6)This chapter does not prohibit a person who manufactures, distributes, imports, or sells the covered material from assuming the duties of producer of the covered product and relieving from those duties any other person who manufactures, distributes, imports, or sells the covered product.
(7)Producer does not include a seller that only sells secondhand covered products.
(8)Producer does not include a seller with less than one million dollars ($1,000,000) in annual aggregate global turnover. The aggregate global turnover of a producer within the meaning of this chapter shall be calculated by adding together the respective turnovers of all of the following:
(A)The producer concerned.
(B)Those entities in which the producer is concerned, directly or indirectly, as follows:
(i)Owns more than one-half the capital or business assets.
(ii)Has the power to exercise more than one-half the voting rights.
(iii)Has the power to appoint more than one-half the members of the supervisory board, the administrative board, or bodies legally representing the undertakings.
(iv)Has the right to manage the entities affairs.
(C)Those entities that have in the producer concerned the rights or powers listed in subparagraph (B).
(D)Those entities in which an entity referred to in subparagraph (C) has the rights or powers listed in subparagraph (B).
(E)Those entities in which two or more entities as referred to in subparagraphs (A) to (D), inclusive, jointly have the rights or powers listed in subparagraph (B).
(t)Producer responsibility organization or PRO means an organization that is exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986, is formed for the purpose of implementing a plan to meet the requirements of this chapter, and is approved by the department.
(u)Producer responsibility plan or plan means the plan developed by the PRO for the collection, transportation, repair, recycling, and the safe and proper management of covered products pursuant to subdivision (a) of Section 42984.8 and submitted to the department for approval pursuant to subdivision (b) of Section 42984.8.
(v)Recycle or recycling has the same meaning as set forth in paragraphs (1) and (2) of subdivision (aa) of Section 42041, excluding references to plastics and as otherwise applicable. 42041. To be considered recycled, covered products shall be recycled into new, reused, or reconstituted products.
(w)Repair means any alteration or improvement of damaged covered product deemed worth the cost of repair by criteria established by the plan, including, but not limited to, any of the following:
(1)Redesigning and repurposing.
(2)Mending rips, holes, seams, and hems.
(3)Removing and repairing surface damage, such as pilling, stain removal, or abrasion.
(4)Securing and reattaching buttons and other fastenings.
(5)Dyeing, redyeing, overdyeing, or printing of images on covered products.
(6)Preparation for reuse and resale.
(x)Retailer means a person who sells or offers for sale a covered product in or into the state to a person through any means, including, but not limited to, sales outlets, catalogs, the telephone, the internet, or any electronic means.
(y)Reuse means the resale of a collected covered product to a consumer for its original intended use with or without repair.
(z)Secondhand covered product means any covered product that has been previously owned by a consumer.
(aa)Secondhand markets means a retailer who sells secondhand covered products, including, but not limited to, thrift stores, collection box operators, online resale platforms, and flea markets.
(ab)Stewardship program means a program established by a PRO pursuant to this chapter for the free, convenient, and safe collection, transportation, repair, recycling, and otherwise proper management of covered products.
(ac)(1)Textile article means an item customarily used in households or businesses that are made entirely or primarily from a natural, artificial, or synthetic fiber, yard, yarn, or fabric. For purposes of this chapter, textile article includes only blankets, curtains, fabric window coverings, knitted and woven accessories, towels, tapestries, bedding, tablecloths, napkins, linens, and pillows.
(2)Textile article does not include single-use products including paper towels, paper napkins, toilet paper, facial tissue, and wet or dry wipes.
(ad)Third-party seller has the same meaning as set forth in Section 1749.8 of the Civil Code.
2.Producers42984.4.(a)(1)Producers of covered products shall form and join a PRO for the purposes of complying with this chapter. The governing body of the PRO shall submit an application to the department by January 1, 2026, describing how the PRO meets the requirements to be an approved PRO pursuant to this chapter. If the department approves the PRO, the PRO shall proceed to carry out the requirements of this chapter. If applications for more than one PRO are submitted to the department, the department shall determine which proposed PRO can most effectively implement this chapter.
(2)The department shall, by, March 1, 2026, approve a PRO that meets the requirements of this chapter and both of the following:
(A)The PRO has a governing board consisting of producers that are diverse in size and type and that represent the diversity of covered products placed in the market by those entities.
(B)The PRO demonstrates that it has adequate financial responsibility and financial controls in place, including fraud prevention measures and an audit schedule, to ensure proper management of funds.
(3)All producers of covered products shall, by July 1, 2026, join the PRO approved by the department.
(4)After January 1, 2035, upon the determination of the director that an additional PRO would be beneficial in satisfying the requirements of this chapter, the department may approve additional PROs that meet the requirements of this chapter and that meet all of the following requirements:
(A)The proposed PRO submits to the department, and agrees to cover the departments reasonable costs to review, a petition to establish a new PRO.
(B)The proposed PRO is composed of a sufficient number of producers to jointly comply with the requirements of this chapter.
(C)The proposed PRO agrees to cover the costs of all of the provisions of this chapter applicable to the proposed PRO and its participant producers.
(b)Each producer covered under a PRO shall register with that PRO in accordance with the procedures and requirements established by that PRO and shall comply with those procedures and requirements.
(c)Upon approval of a plan pursuant to Section 42984.8, or commencing July 1, 2030, whichever is sooner, a producer shall be subject to penalties under Section 42984.21 unless all of the following are met:
(1)The producer is a participant of the PRO.
(2)All covered products are accounted for in the plan.
(3)If an entity does not meet the definition of a producer and is not subject to this chapter before January 1, 2030, but, at any point, after January 1, 2030, meets the definition of a producer, the producer shall, within 90 days, become a participant of the PRO and comply with the requirements of this chapter.
(d)A producer is not in compliance with this chapter and is subject to penalties pursuant to this chapter if a covered product sold or offered for sale by the producer is not subject to an approved PRO plan that has been approved by the department pursuant to Section 42984.8.
42984.5.(a)No later than 30 days after the effective date of the regulations implementing this chapter, individual producers or the PRO shall provide to the department, in a form and manner established by the department, a list of brands of covered products that the each producer sells, distributes for sale, imports for sale, or offers for sale in or into the state.
(b)A producer or PRO shall update the list described in subdivision (a) and provide the updated list to the department on or before January 15 of each year or upon request of the department.
3.Producer Responsibility Organizations (PROs)42984.6.(a)(1)A PRO shall prepare the initial statewide needs assessment, in consultation with the department, assessment designed to determine the necessary steps and investment needed for covered products, to achieve the requirements of this chapter. Needs assessments, or components thereof, shall be updated every five years or as necessary to ensure the requirements of this chapter are met. An initial needs assessment for covered products shall be completed before the completion and approval of any producer responsibility plan for covered products. The PRO may select an independent third-party contractor to complete the needs assessment.
(2)A PRO shall cover the cost of developing any needs assessment and any update to a needs assessment.
(3)A PRO may prepare more than one needs assessment, with each assessment specific to one or more covered products subject to this chapter, or may prepare one comprehensive needs assessment that includes all covered material subject to this chapter.
(4)A PRO shall consult with the department and local jurisdictions when preparing the needs assessment.
(5)The initial needs assessment, and any updates, shall be submitted to the department by March 1, 2027. The department shall review and approve, conditionally approve, or disapprove the needs assessment as meeting the requirements of this chapter within 90 days of submission.
(6)If there is more than one PRO approved by the department at the time updated needs assessments are completed, then the approved PROs may collaborate on a single needs assessment.
(b)A needs assessment shall comply with all of the following:
(1)Be designed to inform the program budget and PRO plan.
(2)Include an evaluation of all of the following with respect to covered products and covered product categories:
(A)Existing scope and scale of annual covered products diverted to landfill in the state by type of covered product, material composition, and volume and annual covered product recovery diverted to reuse, repair, or recycling in the state or from the state by type of covered product, material composition, and volume.
(B)The current repair, reuse, recycling, collection, sorting, and hauling system in the state and the expanded access and additional repair, reuse, recycling, collection, sorting, disassembly, and hauling options needed to meet the requirements of this chapter.
(C)Current market conditions and the need to create viable end markets in the state, regionally, and globally.
(D)Existing state statutory provisions and funding sources related to market development and financial incentives to help achieve the states goals related to repair, reuse, recycling, collection, sorting, disassembly, and hauling.
(E)Consumer education needs and the methods by which the PRO can best reach consumers with educational messaging.
(F)Consumer behaviors to drive repair, reuse, and recycling and to achieve the requirements of this chapter.
(G)Funding needs and incentive mechanisms necessary to achieve the requirements of this chapter, including coverage of the operation of the stewardship program.
(H)Fee reduction or redistribution mechanisms necessary to achieve the requirements of this chapter, in a manner that equitably distributes the costs among participating producers that reflects production and sales volumes.
(I)Actions and investments necessary to provide sufficient access to collection, recycling, composting, processing, and transportation to viable end markets.
(J)An evaluation of the availability or lack of availability of markets for recycled covered material, the need to incentivize reused products or recycled material market development, and the associated investments and actions needed to ensure that the covered products are reused or recycled and have viable and sufficient end markets.
(K)The needs assessment shall include an evaluation of the factors contributing to perfluoroalkyl and polyfluoroalkyl substances (PFAS) and other chemical contamination, and the actions and investments needed to avoid contamination. This shall include an evaluation of the available end markets for recycled material that cannot be remanufactured into textiles or textile articles in California.
(L)Whether allowing more than one PRO would be beneficial in meeting the requirements of the chapter.
(M)Evaluate what factors will be important to successfully implement the eco-modulated fee structure required by subdivision (b) of Section 42984.10, and what associated data collection will be necessary as part of the plan.
(c)The department shall guide development of a needs assessment, which shall be developed by a PRO in consultation with a broad diversity of local jurisdictions, recycling service providers, and processors that reflect the different needs and challenges presented by different covered products.
42984.7.(a)A PRO shall include approve collection sites under its stewardship program that agree to comply with all applicable state, federal, or municipal laws, regulations, and rules and conditions adopted by the PRO.
(b)A PRO shall include as a collection site under its stewardship program any local jurisdiction that offers in writing to participate in the stewardship program and agrees to comply with any PRO requirements that are consistent with that PROs approved plan even if the minimum thresholds described in subdivision (d) of Section 42984.10, as applicable, have been achieved.
(1)A PRO shall include the local jurisdiction as a collection site in the stewardship program within 90 days of receiving the written offer to participate, confirming that the local jurisdiction will comply with any PRO requirements that are consistent with an approved plan, even if the minimum thresholds described in subdivision (d) of Section 42984.10, as applicable, have been achieved.
(2)The PRO shall not be required to respond to offers pursuant to this paragraph until the PROs plan has been approved by the department.
(b)(c)A PRO may suspend or terminate a collection site that does not comply with all applicable state, federal, or municipal laws and regulations or adhere to the rules and conditions imposed by the PRO.
(c)(d)A collection site shall be operated and managed to ensure that covered products are collected safely and handled in accordance with all applicable state, federal, and municipal laws and regulations and the rules and conditions of the plan. Authorized collectors and authorized sorters may divert reusable covered products for sale in secondhand markets.
(d)(e)A PRO shall require all contractors to pay at least the state minimum wage.
(e)(f)Each participant of a PRO with an approved plan shall comply with the requirements of this chapter. The PRO shall notify the department within 30 calendar days of any the following:
(1)The end of any three-month period in which the PRO unsuccessfully attempted to obtain a fee, records, or information from a participant producer, or received incomplete or incorrect records or information.
(2)The date a producer no longer participates in the PROs approved plan.
(3)Any instance of noncompliance by a participant producer.
4.Producer Responsibility Plan for Covered Products42984.8.(a)Within 12 months of the effective date of the regulations adopted by the department pursuant to Section 42984.2, a PRO shall develop and submit to the department a complete plan, in a form and manner determined by the department, in accordance with the requirements of this chapter, for the collection, transportation, repair, sorting, recycling, and the safe and proper management of covered products in the state. No PRO serving more than one producer may limit its stewardship plan for covered products to the covered products of the producers participating in that stewardship program.
(b)The department shall review the stewardship plan for compliance with this chapter and shall approve, disapprove, or conditionally approve the plan within 120 days of receipt of the plan.
(c)(1)If the department disapproves a plan submitted by a PRO, the department shall explain how the plan does not comply with this chapter and provide written notice to the PRO within 60 days of disapproval. The PRO may resubmit to the department a revised plan within 30 days of the date the written notice was issued, and the department shall review the revised plan within 60 days of resubmittal.
(2)If the department disapproves a revised plan submitted by a PRO, the department shall explain how the plan does not comply with this chapter and provide written notice to the PRO within 60 days of disapproval. The PRO shall then revise and resubmit the plan consistent with the departments direction within 30 days, otherwise the disapproval is final and the PRO and producers may be subject to penalties.
(3)By July 1, 2030, a PRO shall have a complete plan approved by the department and each producer shall be subject to an approved plan to be in compliance with this chapter.
(d)Within three months of approval by the department, a PRO shall begin to implement the approved plan.
(e)A PRO with an approved plan shall submit any proposed substantial change to the plan to the department for approval employing the procedures set forth in this section.
(f)The approved plan shall be a public record, except that financial or sales data reported to the department by the PRO is not a public record for purposes of the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and shall not be open to public inspection. The department may release financial or sales data in summary form only so the information cannot be attributable to a specific producer or distributor or to any other entity.
42984.9.The PRO shall fully implement the approved plan within 12 months of the departments approval of the plan pursuant to Section 42984.8.
42984.10.A plan for covered products shall be designed to accept and manage all postconsumer covered products and shall include all of the following:
(a)The names and contact information, including email address, phone number, and mailing and physical addresses, of producers and brands of covered products covered under the plan.
(b)(1)A description of the method to establish and administer a means for fully funding the PRO in a manner that distributes the PROs costs among the producers that are part of the stewardship organization using a per unit eco-modulated fee that reflects California sales volumes and the cost of reusing, repairing, recycling, or otherwise managing covered products pursuant to subdivision (a) of Section 42984.4.
(2)A five-year budget that establishes a funding level sufficient to operate the PRO in a prudent and responsible manner. The budget shall demonstrate how estimated revenues will cover all budgeted costs for each cost category.
(3)Budgeted costs shall include, but not be limited to, administrative costs, education and outreach costs, operational costs, capital costs, and a reserve to operate the PRO should there be unexpected events, such as losses of income, and large unbudgeted expenses in order to protect the recycling infrastructure the PRO relies upon in its plan, during any lapse in producer participation during the life of the program. The plan shall include a description of the types of activities related to each line-item cost category. The reserve cost category shall include a reserve level amount and description justifying the reserve level amount indicated.
(4)The PRO shall maintain reserve funds sufficient to operate the plan for no less than six months. If a new plan submitted by a PRO is approved by the department, the PRO shall establish its reserve and maintain the required reserve fund balance by the end of the second year of plan operation.
(5)Administrative costs shall include the departments actual and reasonable regulatory costs, which include full personnel costs, to implement and enforce this chapter as the criteria for all the costs that are defined in the regulations adopted pursuant to Section 42984.2. For the purposes of this paragraph, PRO implementation begins once the department approves a PROs plan, except the departments costs shall include actual regulatory development costs and other startup costs incurred prior to plan submittal and approval.
(c)Include quantifiable Quantifiable five-year and annual performance standards and metrics until the department publishes performance standards pursuant to Section 42984.11. 42984.19. The PRO shall amend its plan to meet or exceed the performance standards published by the department.
(d)A description of how the PRO will provide for a free and convenient dropoff or collection system for covered products, which shall include permanent collection sites and may include temporary collection sites and mail-back options, in each county of the state that meets both of the following requirements:
(1)Provides for a minimum of 10 permanent collection sites or one permanent collection site per 25,000 people, whichever is greater, except as provided below:
(A)A county with a population of 18,000 and under, as reported annually by the Department of Finance, shall have a minimum of three collection locations.
(B)A county with a population of between 18,001 and 50,000, inclusive, as reported annually by the Department of Finance, shall have a minimum of four collection locations.
(C)A county with a population between 50,001 and 100,000, inclusive, as reported annually by the Department of Finance, shall have a minimum of eight collection locations.
(2)Provides for a reasonable geographic spread of permanent collection sites and an explanation for the geographic spread.
(e)A description of how collection sites will be authorized and managed, including all of the following:
(1)A description of the process by which local jurisdictions can request to be a collection site pursuant to Section 42984.7.
(2)A description of how the PRO will provide to collection sites at no cost the appropriate containers for covered products, training, signage, safety guidance, and educational materials.
(3)An explanation of the process by which the PRO will provide for the transport of covered products at no cost from the collection sites to an authorized sorter, or directly to an authorized repair business, or recycling facility.
(4)A description of how collection sites will be allowed to divert collected covered products to domestic secondhand markets for reuse.
(5)A list of all proposed rules, conditions, and requirements for authorized collectors, authorized sorters, and authorized repair businesses, including a template proposed agreement for each of those types of entities, as applicable.
(6)A description of how the PRO will prioritize the use of secondhand markets and nonprofit thrift stores, as described in Section 6363.3 of the Revenue and Taxation Code, when establishing collection sites to meet the minimum requirements in subdivision (d).
(7)A PRO may instruct a collection site on how How collection sites will be instructed to identify and reject counterfeit covered items.
(f)A description of the process by which collected covered products will be sorted, transported, processed, reused, and recycled following collection at collection sites, including all of the following:
(1)A description of how covered products will be handled and managed according to the waste management practices pursuant to Section 40051, including both of the following:
(A)(i)How the plan will prioritize the reuse, including repair, of collected covered products.
(ii)Products designed for use by infants and children under 12 years of age with components that pose a risk of detachment, thus creating choking hazards, or containing components subject to Part 1303 (commencing with Section 1303.1) and Part 1307 (commencing with Section 1307.1) of Title 16 of the Code of Federal Regulations, including, but not limited to, metallic, vinyl, or plastic snaps, zippers, grommets, closures, or appliques may be excluded from repair and reuse by the PRO.
(B)(i)How the plan will include the incentive payments, grants, and market development investments specified in clause (vii) to encourage reuse over recycling and other methods.
(ii)A description of how covered products will be sorted by authorized sorters, including a description of how the flow of covered products to and from authorized collectors, authorized sorters, authorized repair businesses, and recyclers will be tracked through final disposition.
(iii)A description of how the PRO will maximize the reuse and recycling of all covered products.
(iv)A description of how the PRO will minimize disposal of covered products collected by the PRO.
(v)A description of how the PRO will prioritize, to the extent feasible, the use and development of sorting, repair, and recycling facilities located closer to the point of collection to minimize transportation-related emissions and increase accountability for the ultimate disposition of the covered products.
(vi)A description of the annual assessment the PRO will conduct and the metrics it will use to determine how collection, sorting, and transportation outcomes aligned with projections.
(vii)A description of how the plan will provide incentive payments, grants, and market development investments to support the infrastructure necessary to effectively implement the plan, including how incentive payments, grants, and market development investments will prioritize infrastructure closer to the point of generation pursuant to clause (v).
(g)A comprehensive statewide education and outreach program designed to educate consumers and promote participation in the program offered by the PRO. At a minimum, the comprehensive statewide education and outreach program shall include all of the following:
(1)A description of the education and communications for strategy being implemented to effectively promote participation in the stewardship program and provide the information necessary for effective participation by consumers, retailers, distributors, wholesalers, local jurisdictions, and others.
(2)A joint internet website in coordination with all other PROs, as applicable, that publicizes the location of collection sites and provides information to consumers on how to drop off covered products at the free and convenient network of collection sites offered by the PRO, including any information reasonably necessary to safely and conveniently access the collection, repair, and recycling services offered by the PRO.
(3)Signage that is prominently displayed and easily visible.
(4)All signage and materials required for collection sites by the PRO, and the method by which collection sites can access replacement materials at no cost to the collection site.
(5)A description of efforts to support participation by all California communities, including a description of efforts to communicate with consumers in languages other than English.
(6)Promotional materials or activities, or both, that explain the purpose of the PRO and the means by which it is being carried out.
(7)A description of how the PRO will encourage users to separate products that are not covered products from covered products, when appropriate, before submitting the covered products to an authorized collection site or mail-back program.
(8)Materials designed to inform third-party sellers on online platforms of their duty to comply with the law and how to join the PRO.
(9)Information to the public on secondhand markets and the benefits of reuse, including repair.
(10)(A)The statewide education and outreach program shall promote the safe and proper management of covered products, including information on where consumers can purchase repaired and reused covered products. This includes education and training for authorized collectors to incentivize domestic resale of usable covered products.
(B)The statewide education and outreach program shall not promote the disposal of covered products in a manner inconsistent with the services offered by the plan.
(C)The statewide education and outreach plan shall include information for consumers about how to avoid improper disposal of covered products.
(h)A description of the strategies, goals, and metrics the PRO will use to annually assess and evaluate the efficacy of the comprehensive statewide education and outreach program.
(i)A description of how the PRO will coordinate with other PROs to avoid confusion to the public regarding program activities, including, but not limited to, education and outreach, including establishing point-of-sale messaging, a joint website, and toll-free telephone number for purposes of providing information on the program.
(j)Information to the public on secondhand markets and the benefits of reuse, including repair.(k)(1)The statewide education and outreach program shall promote the safe and proper management of covered products, including information on where consumers can purchase repaired and reused covered products. This includes education and training for authorized collectors to incentivize domestic resale of usable covered products.(2)The statewide education and outreach program shall not promote the disposal of covered products in a manner inconsistent with the services offered by the plan.(3)The statewide education and outreach plan shall include information for consumers about how to avoid improper disposal of covered products.(l)(j)Coordination with, and a description of the efforts and methods used to coordinate activities with, all of the following entities who are responsive to a request from the PRO:
(1)Other PROs.
(2)Existing collection, reuse, and recycling programs.
(3)Community-based organizations, including nonprofit thrift stores as described in Section 6363.3 of the Revenue and Taxation Code, that contact the PRO and that are qualified to run or support collection events.
(m)(k)A contingency plan in the event the plan expires or is revoked. The contingency plan shall guarantee that the contracts, financial data, and other necessary authority and assets to operate the program shall vest in a trustee approved by the department. The trustee shall operate the most recently approved plan, subject to the direction of the department, until such time as a new plan is approved. Upon plan expiration or revocation of the plan, the balance of the PROs operating reserves collected pursuant to paragraph (4) of subdivision (b) shall be transferred to the control of the trustee within five calendar days. All documents, digital records, contracts, and files related to the operation of the plan shall be transferred to the control of the trustee within five calendar days.
(n)(l)Develop a program to support laundries for laundering covered products that includes funding for technology that reduces water consumption and improves microfiber and microplastic filtration.
(o)(m)A description of how the plan will address PFAS and other chemical contamination, including, but not limited to, the actions and investments needed to avoid contamination and available end markets for recycled material that cannot be remanufactured into textiles or textile articles in California.
(p)(n)Develop strategies to address design challenges for covered products, including, but not limited to, compostability, reduction and removal of harmful chemicals, microfiber and microplastic shedding, and mixed material blends.
(q)(o)A description of how the PRO will minimize the negative environmental impacts of all operations associated with the plan, including impacts from collected covered products exported outside of California.
(r)(p)A process by which the financial activities of the organization PRO or individual producers that are related to implementation of the plan will be subject to an independent audit consistent with generally accepted accounting principles (GAAP).
42984.11.(a)A producer of a covered product sold, offered for sale, imported, or distributed in or into the state shall achieve the performance standards pursuant to subdivision (c) of Section 42984.10.
(b)After March 1, 2032, the department may establish, review, and adjust performance standards based on information included in the plan, annual reports, other information provided by the PRO, department waste characterization studies, the needs assessment conducted pursuant to Section 42984.6, and economic and any other relevant information. a producer of a covered product sold, offered for sale, imported, or distributed in or into the state shall achieve the performance standards adopted by the department pursuant to Section 42984.19.
42984.12.(a)A PRO shall review its plan at least every five years after approval by the department and determine whether revisions to the plan are necessary.
(b)If a PRO determines that revisions to the plan are necessary, the PRO shall submit to the department a revised plan for review and approval employing the procedures set forth in Section 42984.8. The stewardship organization shall submit the revised plan to the department pursuant to this subdivision at least 12 months prior to the review deadline outlined in subdivision (c). The revised plan shall include a cover letter that summarizes the revisions to the plan within 90 days of the review deadline outlined pursuant to subdivision (a).
(c)If a PRO determines that no revisions to the plan are necessary, the PRO shall send a letter to the department 12 months prior to the review deadline outlined in subdivision (a), explaining that the PRO has reviewed the plan and determined that no revisions are needed. The department may disapprove the PROs determination within 30 days of receipt of that determination if the department concludes that the PRO cannot implement the objectives of this chapter without revising the plan. If the department disapproves the PROs determination, the PRO shall submit to the department a revised plan for review and approval employing the procedures set forth in Section 42984.8. The PRO shall submit the revised plan pursuant to this subdivision within 60 days of receipt of the departments disapproval, unless the department determines that additional time is needed.
5.Financial Provisions 42984.13.(a)Each PRO shall pay all administrative and operational costs associated with establishing and implementing the program in which it participates, including, but not limited to, the cost of collection, transportation, sorting, repairing, recycling, and the safe and proper management of covered products.
(b)A PRO shall establish a method for fully funding the PRO in a manner that distributes the programs costs among participating producers that reflects sales volumes and the eco-modulated fee criteria included in the plan pursuant to Section 42984.10. The funding mechanism shall demonstrate adequate funding for all administrative and operational costs of the program, to be borne by participating producers, and shall distribute participating producers costs in consideration of the cost of managing their specific covered products according to the approved plan.
(c)Within nine months of the effective date of the regulations, the department shall notify each PRO of its estimated regulatory costs as the criteria for those costs are defined in the regulations adopted pursuant to Section 42984.2, which includes full personnel costs, related to implementing and enforcing this chapter. This shall include the actual reasonable costs associated with regulation development pursuant to Section 42968.2 and other startup activities prior to plan submittal and approval.
(d)The PRO shall, on a schedule determined by the department, pay the department fees to cover the departments incurred costs as described in subdivision (c). The fees shall not exceed the departments actual and reasonable regulatory costs to implement and enforce this chapter.
(e)(1)The department shall deposit all moneys received from a PRO pursuant to this section into the Textile Stewardship Recovery Fund, which is hereby established in the State Treasury.
(2)Upon appropriation by the Legislature, moneys in the Textile Stewardship Recovery Fund shall be expended by the department to implement and enforce this chapter, as well as to reimburse any outstanding loans made from other funds used to finance regulation, development, and startup costs of the departments activities pursuant to this chapter.
(3)The money in the Textile Stewardship Recovery Fund shall not be expended for any other purpose.
42984.14.(a)Upon approval of the PROs plan, the PRO shall charge each participant producer annual fees that are eco-modulated as described in the plan. The intent of the eco-modulated fee is to incentivize design choices that facilitate the achievement of goals as outlined in the plan, including reuse, repair, and recycling through reduced fees, while using malus fees to disincentivize practices and materials incongruent with the plan.
(b)The PRO shall account for the costs to ensure each covered material and covered material category meet the requirements of the chapter, including minimization of environmental and public health impacts along the entire supply chain of covered materials or covered material category.
6.Records, Audits, and Reports 42984.15.(a)A PRO shall keep board minutes, books, and records that clearly reflect the activities and transactions of the PRO.
(b)A PRO shall include in its plan a process by which the financial activities of the organization or individual producers that are related to implementation of the plan will be subject to an independent audit consistent with generally accepted accounting principles (GAAP), which shall be reviewed by the department.
(c)The department may audit the PRO or individual producer annually.
(d)Failure of a PRO or producer, or their respective agent who holds records, to produce documents or data that is requested by the department, required to be collected or generated to carry out operation of the plan in the form and manner determined by the department, as part of a department audit, or review of a third-party audit, constitutes a violation of this chapter.
42984.16.(a)A PRO shall retain an independent public accountant, certified in the United States, to annually audit the accounting books of the PRO. The department shall review the independent certified public accountant audit for compliance with this chapter and consistency with the PROs plan and annual report, submitted pursuant to this chapter. After the department conducts its own audit, the department shall notify the PRO of any conduct or practice that does not comply with this chapter or of any inconsistencies identified in the audit. The PRO may obtain copies of the departments audit, including proprietary information contained in the departments audit, upon request, and withhold from disclosure confidential proprietary information to the extent allowed under Section 1040 of the Evidence Code and Section 7929.000 of the Government Code. The items submitted to the department as part of the independent audit shall include:
(1)Financial statements audited in accordance with generally accepted accounting principles (GAAP).
(2)An audit of the PROs compliance with this chapter.
(3)An audit of the PROs adherence to, execution of, and consistency with its plan.
(b)The PRO shall include the independent audit in its annual report submitted to the department pursuant to Section 42984.17 commencing within 18 months of plan approval by the department. The department shall review the audit for compliance with this chapter and consistency with the PROs plan.
42984.17.A PRO shall annually submit to the department, in the form and manner and by the date determined by the department, an annual report and make that report publicly available on the PROs internet website. The report shall include at minimum, all of the following information for the preceding calendar year unless otherwise specified:
(a)The PROs costs, according to the cost categories established in the plan, and revenues.
(b)A summary of any anticipated changes to allocations in cost categories for the next calendar year.
(c)Any changes to the distribution of a participating producers costs.
(d)The amounts of the eco-modulated fees based on the criteria established pursuant to subdivision (b) of Section 42984.14 and the PROs evaluation of the effectiveness of the eco-modulated fees.
(e)The An updated list of producers participating in the plan and an updated list of the names and contact information, including email address, telephone number, and physical and mailing addresses of producers and brands of covered products covered under the plan.
(f)A list of the PROs collection sites, by name, location, and type.
(f)(g)(1)The amount of covered products sold in or into the state by the producers covered by the PROs plan, plan.
(2)The amount described in paragraph (1) shall be broken down by fiber type and Harmonized Tariff Schedule of the United States (HTS) number.
(g)A list of the PROs collection sites, by name, location, and type.(h)The total weight of covered products, respectively, that were collected, broken down by fiber type categories.
(i)The total weight of covered products, by category, that were collected and deemed reusable by each respective authorized collector and authorized sorter.
(j)A list of each authorized sorter, authorized repair business, and textile article covered product recycling facility used by the PRO, including both of the following:
(1)Name and location.
(2)Total weight of covered products handled by each location.
(k)An updated list of the names and corporate mailing addresses of producers, as described in subdivision (a) of Section 42984.10 and brands of covered products and brands of covered products covered under the plan.(l)(k)The total weight and number of covered products sold in or into the state attributed to a producer, who is a registered participant of the PROs plan, which are collected in the state and reused or recycled by the PRO, including a description of the methodology and information used to determine and calculate these values.
(m)(l)A complete accounting of the ultimate disposition of all covered products collected by the PRO, including the total weight of covered products that were repaired and recycled.
(n)(m)Metrics and a description of the progress toward attaining the performance standards included in the plan.
(o)(n)A description of methods used to collect, transport, repair, and recycle covered products by the PRO, including a description of all of the following:
(1)How the PRO handled and managed covered products according to the waste hierarchy as defined in Section 40051.
(2)How the PRO maximized reuse and recycling of all covered products.
(3)How the PRO minimized disposal of all covered products collected by the PRO.
(4)Results of the PROs assessment of the efficacy of the collection, sorting, and transportation process.
(p)(o)A description of how the PRO provided incentive payments, grants, and market development investments to support the infrastructure necessary to effectively implement the plan, including how incentive payments, grants, and market development investments prioritized infrastructure closer to the point of generation.
(q)(p)A description of outreach efforts and education, including, but not limited to, the PROs evaluation of the efficacy of the comprehensive statewide education and outreach program pursuant to subdivisions (i) and (k) subdivision (g) of Section 42984.10.
(r)(q)A description of how the PRO coordinated with other PROs and entities pursuant to subdivision (l) (j) of Section 42984.10.
(s)(r)A report on activities the PRO has undertaken to prioritize the use of sorting and recycling facilities located closer to the point of generation to minimize transportation emissions and increase accountability for the ultimate disposition of collected covered products.
(t)(s)An analysis of whether the PRO met performance standards established by the PRO pursuant to subdivision (c) of Section 42984.10 or by the department pursuant to Section 42984.11. 42984.19.
(u)(t)A description of how the PRO addressed PFAS and other chemical contamination, including, but not limited to, the actions taken and investments made to avoid contamination, and the availability of end markets for recycled material that could not be remanufactured into textiles or textile articles in California.
(v)(u)Any other information deemed relevant by the PRO for the department to determine compliance with the approved plan.
(w)(v)Any other information required by regulations adopted pursuant to Section 42984.2.
42984.18.(a)No later than 120 days after the date the department receives the annual report submitted by a PRO pursuant to Section 42984.17, the department shall notify the PRO if the annual report is compliant or noncompliant.
(b)If the department determines that the annual report is noncompliant due to failure to meet the requirements of this chapter, the department may require the resubmittal of the annual report or take enforcement action.
7.Department Responsibilities42984.19.After March 1, 2032, the department may establish, review, and may adjust performance standards and the dates by which they must are required to be achieved based on information included in the plan and annual reports, other information provided by the PRO, department waste characterization studies, needs assessment, and economic and any other relevant information.
8.Enforcement and Civil Penalties42984.20.(a)Within 12 months of the effective date of regulations pursuant to Section 42984.2, and on or before July 1 of each year thereafter, the department shall post on its internet website a list of producers that are in compliance with this chapter. The department shall list, as appropriate, the reported brands of covered products for each producer.
(b)A producer that is not listed on the departments internet website pursuant to subdivision (a) that demonstrates compliance with this chapter before the next list is posted by the department may either be added to the internet website or be provided a certification letter from the department stating that the producer of a covered product is in compliance with this chapter.
(c)(1)A retailer, importer, or distributor shall monitor the departments internet website to determine if a producer, brand, or covered product is in compliance with this chapter for that producer of covered products.
(2)Except as provided in subdivision (d), on and after the date a plan is approved by the department pursuant to Section 42984.8, a retailer, importer, or distributor shall not sell, distribute, offer for sale, or import a covered product in or into the state for sale in the state unless the producer of the covered product is listed as in compliance pursuant to this section for that brand and covered product.
(d)(1)Notwithstanding paragraph (2) of subdivision (c), a retailer, importer, or distributor may sell, offer for sale, import, or distribute a covered product if, on the date the retailer or distributor sells or offers for sale the covered product in or into the state, the producer, brand, or covered product was listed as compliant on the departments internet website.
(2)Notwithstanding paragraph (2) of subdivision (c), a retailer or distributor may, for any existing inventory in stock before the initial list was posted by the department pursuant to subdivision (a), sell or distribute that inventory for sale in or into the state.
(e)(1)If the department determines a producer is not in compliance with this chapter, the department shall remove the producer, along with its brands and covered products, from the list of compliant producers posted on the departments internet website pursuant to subdivision (a).
(2)The department shall list on its internet website a producer, along with its brands and covered products, if the department subsequently determines that the producer is in compliance with this chapter.
42984.21.(a)An administrative civil penalty up to the following amounts may be administratively imposed by the department on any person who is in violation of any provision of this chapter:
(1)Ten thousand dollars ($10,000) per day.
(2)Fifty thousand dollars ($50,000) per day if the violation is intentional or knowing.
(b)In assessing or reviewing the amount of a civil penalty imposed pursuant to subdivision (a) for a violation of this chapter, the department or the court shall consider all of the following:
(1)The nature and extent of the violation.
(2)The number and severity of the violation or violations.
(3)The economic effect of the penalty on the violator.
(4)Whether the violator took good faith measures to comply with this chapter and the period of time over which these measures were taken.
(5)The willfulness of the violators misconduct.
(6)The deterrent effect that the imposition of the penalty would have on both the violator and the regulated community.
(7)Any other factor that justice may require.
(c)The department shall establish, through regulations adopted pursuant to Section 42984.2, a process that shall include an informal hearing process by which the penalties will be assessed.
(d)The department shall deposit all penalties collected pursuant to this section into the Textile Stewardship Recovery Penalty Account, which is hereby created in the Textile Stewardship Recovery Fund. Upon appropriation by the Legislature, moneys in the Textile Stewardship Recovery Penalty Account shall be available for expenditure by the department on activities related to the collection and recycling of covered products, grants for related purposes, and the administration and enforcement of this chapter.
(e)The Administrative Adjudication Bill of Rights, as set forth in Chapter 4.5 (commencing with Section 11425.10) of Part 1 of Division 3 of Title 2 of the Government Code, applies to hearings conducted under this chapter and mandates minimum due process.
42984.22.(a)Upon a written finding that a producer, PRO, manufacturer, distributor, retailer, or importer site has not met a material requirement of this chapter, in addition to any other penalties authorized under this chapter, the department may take one or both of the following actions to ensure compliance with the requirements of this chapter, after affording the entity a reasonable opportunity to respond to, or rebut, the finding, take any of the following actions to ensure compliance with the requirements of this chapter:
(1)Revoke the PROs plan approval or require the PRO to resubmit the plan.
(2)Require additional reporting relating to compliance with the material requirement of this chapter that was not met.
42984.23.(a)A producer, PRO, manufacturer, distributor, retailer, or importer shall do both of the following:
(1)Upon request, provide the department with reasonable and timely access, as determined by the department, to its facilities and operations, as necessary to determine compliance with this chapter.
(2)Upon request, within 14 days, 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 five years. All reports and records provided to the department pursuant to this chapter shall be provided under penalty of perjury.
(c)(1)The department may impose administrative civil penalties pursuant to Section 42984.21 on a producer, PRO, manufacturer, distributor, retailer, or importer that fails to provide the department with the access required pursuant to this section.
(2)The department may post a notice on the departments internet website that is maintained pursuant to Section 42984.20 that a producer that fails to provide the department with access pursuant to this section, along with the producers brands and covered products, is no longer in compliance with this chapter.
42984.24.After the time for judicial review under Section 11523 of the Government Code has expired, the department may apply to the small claims court or superior court, depending on the jurisdictional amount and any other remedy sought, in the county where the penalties, restitution, or other remedy was imposed by the department, for a judgment to collect any unpaid civil penalties or restitution or to enforce any other remedy provided by this chapter. The application, which shall include a certified copy of the final agency order or decision, shall constitute a sufficient showing to warrant the issuance of the judgment. The court clerk shall enter the judgment immediately in conformity with the application. The judgment so entered shall have the same force and effect as and shall be subject to all the provisions of law relating to a judgment in a civil action and may be enforced in the same manner as any other judgment of the court. The court shall make enforcement of the judgment a priority.
9.Antitrust Immunity42984.25.(a)Except as provided in subdivision (c), an action specified in subdivision (b) that is taken by a PRO 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) applies to all of the following actions taken by a PRO:
(1)The creation, implementation, or management of a plan approved by the department pursuant to Article 3 4 (commencing with Section 42984.6) 42984.8) and the determination of the types or quantities of covered products repaired, reused, recycled, or otherwise managed pursuant to a plan.
(2)The determination of the cost and structure of an approved plan.
(3)The establishment, administration, collection, or disbursement of a charge associated with funding the implementation of this chapter.
(c)Subdivision (a) does not apply to an agreement that does any of the following:
(1)Fixes a price of or for covered products, except for an agreement related to costs or charges associated with participation in a plan approved by the department and otherwise in accordance with this chapter.
(2)Fixes the output or production of covered products.
(3)Restricts the geographic area in which, or customers to whom, covered products will be sold.
10.County Authority42984.26.This chapter does not grant a city, county, city and county, special district, or joint powers authority any new authority over solid waste hauling operations pursuant to a franchise agreement and does not affect, limit, or abrogate in any manner any franchise granted to a solid waste enterprise for the handling of solid waste.
11.Online Marketplace42984.27.An online marketplace shall annually do the following in accordance with regulations adopted by the department pursuant to Section 42984.2:
(a)(1)Notify the department and the PRO of all third-party sellers with sales of covered products over one million dollars ($1,000,000) in the preceding year and provide all required information.
(2)The amount of sales described in paragraph (1) includes only those transactions through the online marketplace for which payment is processed by the online marketplace directly or through its payment processor.
(b)Provide all third-party sellers described in (a) with the information on requirements of law as provided by the PRO pursuant to paragraph (8) of subdivision (g) of Section 42984.10.
SEC. 2.The Legislature finds and declares that Section 1 of this act, which adds Sections 42984.8 and 42984.16 to the Public Resources Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
It is in the best interest of the public to provide limited protection of certain financial and sales data of program participants, in order to protect the interests of businesses and the privacy of their data regarding their customers.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
This act may be known, and shall be cited, as the Responsible Textile Recovery Act of 2024.
42984.1.(a)The purpose of this chapter is to increase the amount of postconsumer apparel and textile articles that are diverted from landfills and reused, repaired, and recycled into secondary products or otherwise managed in a manner that is consistent with the states hierarchy for waste management practices pursuant to Section 40051.
(b)It is the purpose of this chapter that any producer, regardless of whether that producer is domiciled in California, who sells, offers for sale, or distributes a covered product into the state shall be responsible for complying with this chapter.
42984.2.The department, acting in accordance with Article 1 (commencing with Section 11340) to Article 8 (commencing with Section 11350), inclusive, of the Administrative Procedure Act, as set forth in Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, shall adopt regulations to implement this chapter with an effective date of no earlier than January July 1, 2028.
42984.3.(a)(1)Apparel means clothing and accessory items intended for regular wear or formal occasions and outdoor activities. For purposes of this chapter apparel includes only undergarments, shirts, pants, skirts, dresses, overalls, bodysuits, costumes, vests, dancewear, suits, saris, scarves, tops, leggings, school uniforms, leisurewear, athletic wear, sports uniforms, everyday swimwear, formal wear, onesies, bibs, footwear, handbags, backpacks, knitted and woven accessories, jackets, coats, snow pants, ski pants, and everyday uniforms for workwear.
(2)Apparel does not include any of the following:
(A)Personal protective equipment or clothing items for use by the United States military.
(B)Personal protective equipment worn to protect the wearer from health or environmental hazards.
(C)Reusable products designed to collect and absorb urine and feces, or reusable products regulated by the United States Food and Drug Administration that are designed to collect and absorb menstruation or vaginal discharge.
(b)Authorized collector means a person or entity that has entered into an agreement with a PRO to collect covered products.
(c)Authorized sorter means a person or entity that has entered into an agreement with a PRO to sort covered products collected by authorized collectors.
(d)Authorized repair business means a person or entity that has entered into an agreement with a PRO to repair covered products for resale after collection by an authorized collector or after sorting by an authorized sorter.
(e)Brand means a trademark, including both a registered trademark and an unregistered trademark, a logo, a name, a symbol, a word, an identifier, or a traceable mark that identifies a covered product and identifies the owner or licensee of the brand.
(f)Collection box means an unattended container, box, receptacle, or similar device used for soliciting and collecting donations of covered products, including apparel or textile articles.
(f)(g)Collection site means a permanent or temporary location operated by an authorized collector at which covered products are collected and prepared for transport in accordance with the requirements of this chapter.
(g)(h)Consumer means an owner of a covered product, including a person, business, corporation, limited partnership, nonprofit organization, or governmental entity, and includes the ultimate purchaser, owner, or lessee of a covered product, who is not, as to that covered product, the distributor, importer, producer, recycler, retailer, or PRO.
(h)(i)(1)Covered product means an apparel or textile article.
(2)Covered product does not include either any of the following:
(A)A product covered under the Used Mattress Recovery and Recycling Act (Chapter 21 (commencing with Section 42985)).
(B)A product covered under the Electronic Waste Recycling Act of 2003 (Chapter 8.5 (commencing with Section 42460)).
(C)A product covered under the Product Stewardship for Carpets law (Chapter 20 (commencing with Section 42970)).
(D)An automated, motorized, battery, or manual window covering that is operated using an electric motor or other automated system, or manually adjusted by pulling cords or lifting mechanisms.
(i)(j)Department means the Department of Resources Recycling and Recovery or a successor agency.
(j)(k)Distributor means a company that has a contractual relationship with one or more producers to market and sell covered products to a retailer.
(k)(l)Importer means either of the following:
(1)A person 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 covered product that is sold, distributed for sale, or offered for sale in or into the state that was manufactured or assembled by a company outside of the United States.
(2)A person importing into the state for sale, distributing for sale, or offering for sale in the state a covered product that was manufactured or assembled by a company physically located outside of the state.
(l)(m)Local jurisdiction means a city, county, city and county, or a regional agency formed pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code or Article 3 (commencing with Section 40970) of Chapter 1 of Part 2 of this code, or a special district that provides solid waste collection services.
(m)(n)Mail-back program means a method of collecting covered products using prepaid, preaddressed mailing envelopes, boxes, or other means that are reusable, recyclable, or compostable.
(n)Marketplace facilitator means ____.(o)Needs assessment means a needs assessment prepared pursuant to Section 42984.6.
(o)(p)Nonprofit thrift store has the same meaning as set forth in Section 6363.3 of the Revenue and Taxation Code.
(q)Online marketplace has the same meaning as set forth in Section 1749.8 of the Civil Code.
(p)(r)Person has the same meaning as set forth in Section 40170.
(q)(s)(1)Producer means a person who manufactures a covered product and who owns or is the licensee of the brand or trademark under which that covered product is sold, offered for sale, or distributed for sale in or into the state.
(2)If there is no person in the state who is the producer for purposes of paragraph (1), the producer of the covered product is the owner of a brand or trademark or, if the owner is not in the state, the exclusive licensee of a brand or trademark under which the covered product is sold, imported for sale, offered for sale, or distributed for sale in or into the state, regardless of whether the trademark is registered. For purposes of this subdivision, an exclusive licensee is a person holding the exclusive right to use a trademark or brand in the state in connection with the manufacture, sale, or distribution for sale in or into the state of the covered product.
(3)If there is no person in the state who is the producer for purposes of paragraph (1) or (2), then the producer of the covered product is the person that imports the covered product into the state for sale or distribution.
(4)If there is no person in the state who is the producer for purposes of paragraph (1), (2), or (3) and if the person who sells the covered product is a ____, then the marketplace facilitator is the obligated producer.(5)(4)If there is no other person in the state who is the producer for purposes of paragraphs (1), (2), (3), or (4), or (3), the producer of the covered product is the distributor, retailer, or wholesaler who sells the product in or into the state.
(6)(5)For the purposes of this chapter, the sale of a covered product shall be deemed to occur in the state if the covered product is delivered to the consumer in the state.
(6)This chapter does not prohibit a person who manufactures, distributes, imports, or sells the covered material from assuming the duties of producer of the covered product and relieving from those duties any other person who manufactures, distributes, imports, or sells the covered product.
(7)Producer does not include a seller that only sells secondhand apparel. covered products.
(8)Producer does not include a seller with less than one million dollars ($1,000,000) in annual sales. aggregate global turnover. The aggregate global turnover of a producer within the meaning of this chapter shall be calculated by adding together the respective turnovers of all of the following:
(A)The producer concerned.
(B)Those entities in which the producer is concerned, directly or indirectly, as follows:
(i)Owns more than one-half the capital or business assets.
(ii)Has the power to exercise more than one-half the voting rights.
(iii)Has the power to appoint more than one-half the members of the supervisory board, the administrative board, or bodies legally representing the undertakings.
(iv)Has the right to manage the entities affairs.
(C)Those entities that have in the producer concerned the rights or powers listed in subparagraph (B).
(D)Those entities in which an entity referred to in subparagraph (C) has the rights or powers listed in subparagraph (B).
(E)Those entities in which two or more entities as referred to in subparagraphs (A) to (D), inclusive, jointly have the rights or powers listed in subparagraph (B).
(r)(t)Producer responsibility organization or PRO means an organization that is exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986, is formed for the purpose of implementing a plan to meet the requirements of this chapter, and is approved by the department.
(s)(u)Producer responsibility plan or plan means the plan developed by the PRO for the collection, transportation, repair, recycling, and the safe and proper management of covered products pursuant to subdivision (a) of Section 42984.8 and submitted to the department for approval pursuant to subdivision (b) of Section 42984.8.
(t)(v)Recycle or recycling has the same meaning as set forth in subdivision (aa) of Section 42041. 42041, excluding references to plastics and as otherwise applicable.
(u)(w)Repair means any alteration or improvement of damaged covered product deemed worth the cost of repair by criteria established by the plan, including, but not limited to, any of the following:
(1)Redesigning and repurposing.
(2)Mending rips, holes, seams, and hems.
(3)Removing and repairing surface damage, such as pilling, stain removal, or abrasion.
(4)Securing and reattaching buttons and other fastenings.
(5)Dyeing, redyeing, overdyeing, or printing of images on covered products.
(6)Preparation for reuse and resale.
(v)(x)Retailer means a person who sells or offers for sale a covered product in or into the state to a person through any means, including, but not limited to, sales outlets, catalogs, the telephone, the internet, or any electronic means.
(w)(y)Reuse means the resale of a collected covered product to a consumer for its original intended use with or without repair.
(x)(z)Secondhand covered product means any covered product that has been previously owned by a consumer.
(y)(aa)Secondhand markets means a retailer who sells secondhand covered products, including, but not limited to, thrift stores, collection box operators, online resale platforms, and flea markets.
(z)(ab)Stewardship program means a program established by a PRO pursuant to this chapter for the free, convenient, and safe collection, transportation, repair, recycling, and otherwise proper management of covered products.
(aa)(ac)(1)Textile article means an item customarily used in households or businesses that are made entirely or primarily from a natural, artificial, or synthetic fiber, yard, or fabric. For purposes of this chapter, textile article includes only blankets, curtains, fabric window coverings, knitted and woven accessories, towels, tapestries, bedding, tablecloths, napkins, linens, and pillows.
(2)Textile article does not include single-use products including paper towels, paper napkins, toilet paper, facial tissue, and wet or dry wipes.
(ad)Third-party seller has the same meaning as set forth in Section 1749.8 of the Civil Code.
2.Producers42984.4.(a)(1)Producers of covered products shall form and join a PRO for the purposes of complying with this chapter. The governing body of the PRO shall submit an application to the department by January 1, 2026, describing how the PRO meets the requirements to be an approved PRO pursuant to this chapter. If the department approves the PRO, the PRO shall proceed to carry out the requirements of this chapter. If applications for more than one PRO are submitted to the department, the department shall determine which proposed PRO can most effectively implement this chapter.
(2)The department shall, by, March 1, 2026, approve a PRO that meets the requirements of this chapter and both of the following:
(A)The PRO has a governing board consisting of producers that are diverse in size and type and that represent the diversity of covered products placed in the market by those entities.
(B)The PRO demonstrates that it has adequate financial responsibility and financial controls in place, including fraud prevention measures and an audit schedule, to ensure proper management of funds.
(3)All producers of covered products shall, by July 1, 2026, join the PRO approved by the department.
(3)(4)After January 1, 2035, upon the determination of the director that an additional PRO would be beneficial in satisfying the requirements of this chapter, the department may approve additional PROs that meet the requirements of this chapter and that meet all of the following requirements:
(A)The proposed PRO submits to the department, and agrees to cover the departments reasonable costs to review, a petition to establish a new PRO.
(B)The proposed PRO is composed of a sufficient number of producers to jointly comply with the requirements of this chapter.
(C)The proposed PRO agrees to cover the costs of all of the provisions of this chapter applicable to the proposed PRO and its participant producers.
(b)Each producer covered under a PRO shall register with that PRO in accordance with the procedures and requirements established by that PRO and shall comply with those procedures and requirements.
(c)Upon approval of a plan pursuant to Section 42984.8, or commencing January July 1, 2030, whichever is sooner, a producer shall not sell, offer for sale, import, or distribute a covered product in the state be subject to penalties under Section 42984.21 unless all of the following are met:
(1)The producer is a participant of the PRO.
(2)The covered product is All covered products are accounted for in the plan.
(3)The department has approved the plan.(4)(3)If an entity does not meet the definition of a producer and is not subject to this chapter before January 1, 2030, but, at any point, after January 1, 2030, meets the definition of a producer, the producer shall shall, within 90 days, become a participant of the PRO and comply with the requirements of this chapter prior to beginning to sell, offer for sale, import, or distribute covered products in or into the state. chapter.
(d)A producer is not in compliance with this chapter and is subject to penalties pursuant to this chapter if a covered product sold or offered for sale by the producer is not subject to an approved PRO plan that has been approved by the department pursuant to Section 42984.8.
42984.5.(a)No later than 30 days after the effective date of the regulations implementing this chapter, individual producers or the PRO shall provide to the department, in a form and manner established by the department, a list of brands of covered products that the producer sells, distributes for sale, imports for sale, or offers for sale in or into the state.
(b)A producer or PRO shall update the list described in subdivision (a) and provide the updated list to the department on or before January 15 of each year or upon request of the department.
3.Producer Responsibility Organizations (PROs)42984.6.(a)(1)A PRO shall prepare the initial statewide needs assessment, in consultation with the department, designed to determine the necessary steps and investment needed for covered products, to achieve the requirements of this chapter. Needs assessments, or components thereof, shall be updated every five years or as necessary to ensure the requirements of this chapter are met. An initial needs assessment for covered products shall be completed before the completion and approval of any producer responsibility plan for covered products. The PRO may select an independent third-party contractor to complete the needs assessment.
(2)A PRO shall cover the cost of developing any needs assessment and any update to a needs assessment.
(3)A PRO may prepare more than one needs assessment, with each assessment specific to one or more covered products subject to this chapter, or may prepare one comprehensive needs assessment that includes all covered material subject to this chapter.
(4)A PRO shall consult with the department and local jurisdictions when preparing the needs assessment.
(5)The initial needs assessment, and any updates, shall be submitted to the department by March 1, 2027. The department shall review and approve, conditionally approve, or disapprove the needs assessment as meeting the requirements of this chapter within 90 days of submission.
(6)If there is more than one PRO approved by the department at the time updated needs assessments are completed, then the approved PROs may collaborate on a single needs assessment.
(b)A needs assessment shall comply with all of the following:
(1)Be designed to inform the program budget and PRO plan.
(2)Include an evaluation of all of the following with respect to covered products and covered product categories:
(A)Existing scope and scale of annual covered products diverted to landfill in the state by type of covered product, material composition, and volume and annual covered product recovery diverted to reuse, repair, or recycling in the state or from the state by type of covered product, material composition, and volume.
(B)The current repair, reuse, recycling, collection, sorting, and hauling system in the state and the expanded access and additional repair, reuse, recycling, collection, sorting, disassembly, and hauling options needed to meet the requirements of this chapter.
(C)Current market conditions and the need to create viable end markets in the state, regionally, and globally.
(D)Existing state statutory provisions and funding sources related to market development and financial incentives to help achieve the states goals related to repair, reuse, recycling, collection, sorting, disassembly, and hauling.
(E)Consumer education needs and the methods by which the PRO can best reach consumers with educational messaging.
(F)Consumer behaviors to drive repair, reuse, and recycling and to achieve the requirements of this chapter.
(G)Funding needs and incentive mechanisms necessary to achieve the requirements of this chapter, including coverage of the operation of the stewardship program.
(H)Fee reduction or redistribution mechanisms necessary to achieve the requirements of this chapter, in a manner that equitably distributes the costs among participating producers that reflects production and sales volumes.
(I)Actions and investments necessary to provide sufficient access to collection, recycling, composting, processing, and transportation to viable end markets.
(J)An evaluation of the availability or lack of availability of markets for recycled covered material, the need to incentivize reused products or recycled material market development, and the associated investments and actions needed to ensure that the covered products are reused or recycled and have viable and sufficient end markets.
(K)The needs assessment shall include an evaluation of the factors contributing to perfluoroalkyl and polyfluoroalkyl substances (PFAS) and other chemical contamination, and the actions and investments needed to avoid contamination. This shall include an evaluation of the available end markets for recycled material that cannot be remanufactured into textiles or textile articles in California.
(K)(L)Whether allowing more than one PRO would be beneficial in meeting the requirements of the chapter.
(M)Evaluate what factors will be important to successfully implement the eco-modulated fee structure required by subdivision (b) of Section 42984.10, and what associated data collection will be necessary as part of the plan.
(c)The department shall guide development of a needs assessment, which shall be developed by a PRO in consultation with a broad diversity of local jurisdictions, recycling service providers, and processors that reflect the different needs and challenges presented by different covered products.
42984.7.(a)A PRO shall include as a collection site under its stewardship program any local jurisdiction that offers in writing to participate in the stewardship program and agrees to comply with any PRO requirements that are consistent with that PROs approved plan even if the minimum thresholds described in subdivision (d) of Section 42984.10, as applicable, have been achieved.
(1)A PRO shall include the local jurisdiction as a collection site in the stewardship program within 90 days of receiving the written offer to participate, confirming that the local jurisdiction will comply with any PRO requirements that are consistent with an approved plan, even if the minimum thresholds described in subdivision (d) of Section 42984.10, as applicable, have been achieved.
(2)The PRO shall not be required to respond to offers pursuant to this paragraph until the PROs plan has been approved by the department.
(b)A PRO may suspend or terminate a collection site that does not comply with all applicable state, federal, or municipal laws and regulations or adhere to the rules and conditions imposed by the PRO.
(c)A collection site shall be operated and managed to ensure that covered products are collected safely and handled in accordance with all applicable state, federal, and municipal laws and regulations and the rules and conditions of the plan. Authorized collectors and authorized sorters may divert reusable covered products for sale in secondhand markets.
(d)A PRO shall require all contractors to pay at least the state minimum wage.
(e)Each participant of a PRO with an approved plan shall comply with the requirements of this chapter. The PRO shall notify the department within 30 calendar days of any the following:
(1)The end of any three-month period in which the PRO unsuccessfully attempted to obtain a fee, records, or information from a participant producer, or received incomplete or incorrect records or information.
(2)The date a producer no longer participates in the PROs approved plan.
(3)Any instance of noncompliance by a participant producer.
4.Producer Responsibility Plan for Covered Products42984.8.(a)Within 12 months of the effective date of the regulations adopted by the department pursuant to Section 42984.2, a PRO shall develop and submit to the department a complete plan, in a form and manner determined by the department, in accordance with the requirements of this chapter, for the collection, transportation, repair, sorting, recycling, and the safe and proper management of covered products in the state. No PRO serving more than one producer may limit its stewardship plan for covered products to the covered products of the producers participating in that stewardship program.
(b)The department shall review the stewardship plan for compliance with this chapter and shall approve, disapprove, or conditionally approve the plan within 120 days of receipt of the plan.
(c)(1)If the department disapproves a plan submitted by a PRO, the department shall explain how the plan does not comply with this chapter and provide written notice to the PRO within 60 days of disapproval. The PRO may resubmit to the department a revised plan within 30 days of the date the written notice was issued, and the department shall review the revised plan within 60 days of resubmittal.
(2)If the department disapproves a revised plan submitted by a PRO, the department shall explain how the plan does not comply with this chapter and provide written notice to the PRO within 60 days of disapproval. The PRO shall then revise and resubmit the plan consistent with the departments direction within 30 days, otherwise the disapproval is final and the PRO and producers may be subject to penalties.
(3)By January July 1, 2030, a PRO shall have a complete plan approved by the department and each producer shall be subject to an approved plan to be in compliance with this chapter.
(d)Within three months of approval by the department, a PRO shall begin to implement the approved plan.
(e)A PRO with an approved plan shall submit any proposed substantial change to the plan to the department for approval employing the procedures set forth in this section.
(f)The approved plan shall be a public record, except that financial or sales data reported to the department by the PRO is not a public record for purposes of the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and shall not be open to public inspection. The department may release financial or sales data in summary form only so the information cannot be attributable to a specific producer or distributor or to any other entity.
42984.9.The PRO shall fully implement the approved plan within 12 months of the departments approval of the plan pursuant to Section 42984.8.
42984.10.A plan for covered products shall be designed to accept and manage all postconsumer covered products and shall include all of the following:
(a)The names and contact information, including email address, phone number, and mailing and physical addresses, of producers and brands of covered products covered under the plan.
(b)(1)A description of the method to establish and administer a means for fully funding the PRO in a manner that distributes the PROs costs among the producers that are part of the stewardship organization using an a per unit eco-modulated fee that reflects production and California sales volumes and the cost of reusing, repairing, recycling, or otherwise managing covered products pursuant to subdivision (a) of Section 42984.4.
(2)A five-year budget that establishes a funding level sufficient to operate the PRO in a prudent and responsible manner. The budget shall demonstrate how estimated revenues will cover all budgeted costs for each cost category.
(3)Budgeted costs shall include, but not be limited to, administrative costs, education and outreach costs, operational costs, capital costs, and a reserve to operate the PRO should there be unexpected events, such as losses of income, and large unbudgeted expenses in order to protect the recycling infrastructure the PRO relies upon in its plan, during any lapse in producer participation during the life of the program. The plan shall include a description of the types of activities related to each line-item cost category. The reserve cost category shall include a reserve level amount and description justifying the reserve level amount indicated.
(4)The PRO shall maintain reserve funds sufficient to operate the plan for no less than six months. If a new plan submitted by a PRO is approved by the department, the PRO shall establish its reserve and maintain the required reserve fund balance by the end of the second year of plan operation.
(5)Administrative costs shall include the departments actual and reasonable regulatory costs, which include full personnel costs, to implement and enforce this chapter as the criteria for all the costs that are defined in the regulations adopted pursuant to Section 42984.2. For the purposes of this paragraph, PRO implementation begins once the department approves a PROs plan, except the departments costs shall include actual regulatory development costs and other startup costs incurred prior to plan submittal and approval.
(c)Include quantifiable five-year and annual performance standards and metrics until the department publishes performance standards pursuant to Section 42984.11. The PRO shall amend its plan to meet or exceed the performance standards published by the department. Performance standards published by the department pursuant to this subdivision shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. Performance standards may include, but are not limited to, collection, reduction in disposal, and maximizing reuse and recycling.
(d)A description of how the PRO will provide for a free and convenient dropoff or collection system for covered products, which shall include permanent collection sites and may include temporary collection sites and mail-back options, in each county of the state that meets both of the following requirements:
(1)Provides for a minimum of 10 permanent collection sites or one permanent collection site per 25,000 people, whichever is greater. greater, except as provided below:
(A)A county with a population of 18,000 and under, as reported annually by the Department of Finance, shall have a minimum of three collection locations.
(B)A county with a population of between 18,001 and 50,000, inclusive, as reported annually by the Department of Finance, shall have a minimum of four collection locations.
(C)A county with a population between 50,001 and 100,000, inclusive, as reported annually by the Department of Finance, shall have a minimum of eight collection locations.
(2)Provides for a reasonable geographic spread of permanent collection sites and an explanation for the geographic spread.
(e)A description of how collection sites will be authorized and managed, including all of the following:
(1)A description of the process by which local jurisdictions can request to be a collection site pursuant to Section 42984.7.
(2)A description of how the PRO will provide to collection sites at no cost the appropriate containers for covered products, training, signage, safety guidance, and educational materials.
(3)An explanation of the process by which the PRO will provide for the transport of covered products at no cost from the collection sites to an authorized sorter, or directly to an authorized repair business, or recycling facility.
(4)A description of how collection sites will be allowed to divert collected covered products to domestic secondhand markets for reuse, and how those diversions will be tracked through final disposition. reuse.
(5)A list of all proposed rules, conditions, and requirements for authorized collectors, authorized sorters, and authorized repair businesses, including a template proposed agreement for each of those types of entities, as applicable.
(6)A description of how the PRO will prioritize the use of secondhand markets and nonprofit thrift stores, as described in Section 6363.3 of the Revenue and Taxation Code, when establishing collection sites to meet the minimum requirements in subdivision (d).
(7)A PRO may instruct a collection site on how to identify and reject counterfeit covered items.
(f)A description of the process by which collected covered products will be sorted, transported, processed, reused, and recycled following collection at collection sites, including all of the following:
(1)A description of how covered products will be handled and managed according to the waste management practices pursuant to Section 40051, including both of the following:
(A)(i)How the plan will prioritize the repair and reuse reuse, including repair, of collected covered products.
(ii)Products designed for use by infants and children under 12 years of age with components that pose a risk of detachment, thus creating choking hazards, or containing components subject to Part 1303 (commencing with Section 1303.1) and Part 1307 (commencing with Section 1307.1) of Title 16 of the Code of Federal Regulations, including, but not limited to, metallic, vinyl, or plastic snaps, zippers, grommets, closures, or appliques may be excluded from repair and reuse by the PRO.
(B)(i)How the plan will include the incentive payments, grants, and market development investments specified in clause (vii) to encourage reuse over recycling and other methods.
(ii)A description of how covered products will be sorted by authorized sorters, including a description of how the flow of covered products to and from authorized collectors, authorized sorters, authorized repair businesses, and recyclers will be tracked. tracked through final disposition.
(iii)A description of how the PRO will maximize the reuse and recycling of all covered products.
(iv)A description of how the PRO will minimize disposal of covered products collected by the PRO.
(v)A description of how the PRO will prioritize the use prioritize, to the extent feasible, the use and development of sorting, repair, and recycling facilities located closer to the point of collection to minimize transportation-related emissions and increase accountability for the ultimate disposition of the covered products.
(vi)A description of the annual assessment the PRO will conduct and the metrics it will use to determine how collection, sorting, and transportation outcomes aligned with projections.
(vii)A description of how the plan will provide incentive payments, grants, and market development investments to support the infrastructure necessary to effectively implement the plan, including how incentive payments, grants, and market development investments will prioritize infrastructure closer to the point of generation pursuant to clause (v).
(g)A comprehensive statewide education and outreach program designed to educate consumers and promote participation in the program offered by the PRO. At a minimum, the comprehensive statewide education and outreach program shall include all of the following:
(1)A description of the education and communications for strategy being implemented to effectively promote participation in the stewardship program and provide the information necessary for effective participation by consumers, retailers, distributors, wholesalers, local jurisdictions, and others.
(2)A joint internet website in coordination with all other PROs, as applicable, that publicizes the location of collection sites and provides information to consumers on how to drop off covered products at the free and convenient network of collection sites offered by the PRO, including any information reasonably necessary to safely and conveniently access the collection, repair, and recycling services offered by the PRO.
(3)Signage that is prominently displayed and easily visible.
(4)All signage and materials required for collection sites by the PRO, and the method by which collection sites can access replacement materials at no cost to the collection site.
(5)A description of efforts to support participation by all California communities, including a description of efforts to communicate with consumers in languages other than English.
(6)Promotional materials or activities, or both, that explain the purpose of the PRO and the means by which it is being carried out.
(7)A description of how the PRO will encourage users to separate products that are not covered products from covered products, when appropriate, before submitting the covered products to an authorized collection site or mail-back program.
(8)Materials designed to inform third-party sellers on online platforms of their duty to comply with the law and how to join the PRO.
(h)A description of the strategies, goals, and metrics the PRO will use to annually assess and evaluate the efficacy of the comprehensive statewide education and outreach program.
(i)A description of how the PRO will coordinate with other PROs to avoid confusion to the public regarding program activities, including, but not limited to, education and outreach, including establishing point-of-sale messaging, a joint website, and toll-free telephone number for purposes of providing information on the program.
(j)Information to the public on secondhand markets and the benefits of reuse, including repair.
(k)(1)The statewide education and outreach program shall promote the safe and proper management of covered products, including source reduction, environmentally preferable purchasing, and reusing information on where consumers can purchase repaired and reused covered products. This includes education and training for authorized collectors to incentivize domestic resale of usable covered products.
(2)The statewide education and outreach program shall not promote the disposal of covered products in a manner inconsistent with the services offered by the plan.
(3)The statewide education and outreach plan shall include information for consumers about how to avoid improper disposal of covered products.
(l)Coordination with, and a description of the efforts and methods used to coordinate activities with, all of the following entities who are responsive to a request from the PRO:
(1)Other PROs.
(2)Existing collection, reuse, and recycling programs.
(3)Community-based organizations, including nonprofit thrift stores as described in Section 6363.3 of the Revenue and Taxation Code, that contact the PRO and that are qualified to run or support collection events.
(m)A contingency plan in the event the plan expires or is revoked. The contingency plan shall guarantee that the contracts, financial data, and other necessary authority and assets to operate the program shall vest in a trustee approved by the department. The trustee shall operate the most recently approved plan, subject to the direction of the department, until such time as a new plan is approved. Upon plan expiration or revocation of the plan, the balance of the PROs operating reserves collected pursuant to paragraph (4) of subdivision (b) shall be transferred to the control of the trustee within five calendar days. All documents, digital records, contracts, and files related to the operation of the plan shall be transferred to the control of the trustee within five calendar days.
(n)Develop a program to support laundries for laundering covered products that includes funding for technology that reduces water consumption and improves microfiber and microplastic filtration.
(o)A description of how counterfeit goods that are illegal for secondhand markets to resell pursuant to Section 350 of the Penal Code will be managed in the most environmentally sound manner that will mitigate the risks counterfeit goods pose to human health and the environment.(o)A description of how the plan will address PFAS and other chemical contamination, including, but not limited to, the actions and investments needed to avoid contamination and available end markets for recycled material that cannot be remanufactured into textiles or textile articles in California.
(p)Develop strategies to address design challenges for covered products, including, but not limited to, compostability, reduction and removal of harmful chemicals, microfiber and microplastic shedding, and mixed material blends.
(q)A description of how the PRO will minimize the negative environmental impacts of all operations associated with the plan. plan, including impacts from collected covered products exported outside of California.
(r)A process by which the financial activities of the organization or individual producers that are related to implementation of the plan will be subject to an independent audit consistent with generally accepted accounting principles (GAAP).
42984.11.(a)A producer of a covered product sold, offered for sale, imported, or distributed in or into the state shall achieve the performance standards pursuant to Section 42984.10.
(b)The department shall establish, review, and may After March 1, 2032, the department may establish, review, and adjust performance standards based on information included in the plan and plan, annual reports, other information provided by the PRO, department waste characterization studies, the needs assessment conducted pursuant to Section 42984.6, and economic and any other relevant information.
42984.12.(a)A PRO shall review its plan at least every five years after approval by the department and determine whether revisions to the plan are necessary.
(b)If a PRO determines that revisions to the plan are necessary, the PRO shall submit to the department a revised plan for review and approval employing the procedures set forth in Section 42984.8. The stewardship organization shall submit the revised plan to the department pursuant to this subdivision at least 12 months prior to the review deadline outlined in subdivision (c). The revised plan shall include a cover letter that summarizes the revisions to the plan within 90 days of the review deadline outlined pursuant to subdivision (a).
(c)If a PRO determines that no revisions to the plan are necessary, the PRO shall send a letter to the department 12 months prior to the review deadline outlined in subdivision (a), explaining that the PRO has reviewed the plan and determined that no revisions are needed. The department may disapprove the PROs determination within 30 days of receipt of that determination if the department concludes that the PRO cannot implement the objectives of this chapter without revising the plan. If the department disapproves the PROs determination, the PRO shall submit to the department a revised plan for review and approval employing the procedures set forth in Section 42984.8. The PRO shall submit the revised plan pursuant to this subdivision within 60 days of receipt of the departments disapproval, unless the department determines that additional time is needed.
5.Financial Provisions 42984.13.(a)Each PRO shall pay all administrative and operational costs associated with establishing and implementing the program in which it participates, including, but not limited to, the cost of collection, transportation, sorting, repairing, recycling, and the safe and proper management of covered products.
(b)A PRO shall establish a method for fully funding the PRO in a manner that distributes the programs costs among participating producers that reflects sales volumes and the eco-modulated fee criteria included in the plan pursuant to Section 42984.10. The funding mechanism shall demonstrate adequate funding for all administrative and operational costs of the program, to be borne by participating producers, and shall distribute participating producers costs in consideration of the cost of managing their specific covered products according to the approved plan.
(c)Within nine months of the effective date of the regulations, the department shall notify each PRO of its estimated regulatory costs as the criteria for those costs are defined in the regulations adopted pursuant to Section 42984.2, which includes full personnel costs, related to implementing and enforcing this chapter. This shall include the actual reasonable costs associated with regulation development pursuant to Section 42968.2 and other startup activities prior to plan submittal and approval.
(d)The PRO shall, on a schedule determined by the department, pay the department fees to cover the departments incurred costs as described in subdivision (c). The fees shall not exceed the departments actual and reasonable regulatory costs to implement and enforce this chapter.
(e)(1)The department shall deposit all moneys received from a PRO pursuant to this section into the Textile Stewardship Recovery Fund, which is hereby established in the State Treasury.
(2)Upon appropriation by the Legislature, moneys in the Textile Stewardship Recovery Fund shall be expended by the department to implement and enforce this chapter, as well as to reimburse any outstanding loans made from other funds used to finance regulation, development, and startup costs of the departments activities pursuant to this chapter.
(3)The money in the Textile Stewardship Recovery Fund shall not be expended for any other purpose.
42984.14.(a)Upon approval of the PROs plan, the PRO shall charge each participant producer annual fees that are eco-modulated as described in the plan. The intent of the eco-modulated fee is to incentivize design choices that facilitate the achievement of source reduction goals as outlined in the plan, including reuse, repair, and recycling through reduced fees, while using malus fees to disincentivize practices and materials incongruent with the plan.
(b)The PRO shall account for the costs to ensure each covered material and covered material category meet the requirements of the chapter, including minimization of environmental and public health impacts along the entire supply chain of covered materials or covered material category.
6.Records, Audits, and Reports 42984.15.(a)A PRO shall keep board minutes, books, and records that clearly reflect the activities and transactions of the PRO.
(b)A PRO shall include in its plan a process by which the financial activities of the organization or individual producers that are related to implementation of the plan will be subject to an independent audit consistent with generally accepted accounting principles (GAAP), which shall be reviewed by the department.
(c)The department may audit the PRO or individual producer annually.
(d)Failure of a PRO or producer, or their respective agent who holds records, to produce documents or data that is requested by the department, required to be collected or generated to carry out operation of the plan in the form and manner determined by the department, as part of a department audit, or review of a third-party audit, constitutes a violation of this chapter.
42984.16.(a)A PRO shall retain an independent public accountant, certified in the United States, to annually audit the accounting books of the PRO. The department shall review the independent certified public accountant audit for compliance with this chapter and consistency with the PROs plan and annual report, submitted pursuant to this chapter. After the department conducts its own audit, the department shall notify the PRO of any conduct or practice that does not comply with this chapter or of any inconsistencies identified in the audit. The PRO may obtain copies of the departments audit, including proprietary information contained in the departments audit, upon request, and withhold from disclosure confidential proprietary information to the extent allowed under Section 1040 of the Evidence Code and Section 7929.000 of the Government Code. The items submitted to the department as part of the independent audit shall include:
(1)Financial statements audited in accordance with generally accepted accounting principles (GAAP).
(2)An audit of the PROs compliance with this chapter.
(3)An audit of the PROs adherence to, execution of, and consistency with its plan.
(b)The PRO shall include the independent audit in its annual report submitted to the department pursuant to Section 42984.17 commencing within 18 months of plan approval by the department. The department shall review the audit for compliance with this chapter and consistency with the PROs plan.
42984.17.A PRO shall annually submit to the department, in the form and manner and by the date determined by the department, an annual report and make that report publicly available on the PROs internet website. The report shall include at minimum, all of the following information for the preceding calendar year unless otherwise specified:
(a)The PROs costs, according to the cost categories established in the plan, and revenues.
(b)A summary of any anticipated changes to allocations in cost categories for the next calendar year.
(c)Any changes to the distribution of a participating producers costs.
(d)The amounts of the eco-modulated fees based on the criteria established pursuant to subdivision (b) of Section 42984.14 and the PROs evaluation of the effectiveness of the eco-modulated fees.
(e)The producers participating in the plan and an updated list of the names and contact information, including email address, telephone number, and physical and mailing addresses of producers and brands of covered products covered under the plan.
(f)(1)The amount of covered products sold in or into the state by the producers covered by the PROs plan,
(2)The amount described in paragraph (1) shall be broken down by fiber type and Harmonized Tariff Schedule of the United States (HTS) number.
(g)A list of the PROs collection sites, by name, location, and type.
(h)The total weight of covered products, respectively, that were collected, broken down by fiber type categories.
(i)The total weight of covered products, by category, that were collected and deemed reusable by each respective authorized collector and authorized sorter.
(j)A list of each authorized sorter, authorized repair business, and textile article recycling facility used by the PRO, including both of the following:
(1)Name and location.
(2)Total weight of covered products handled by each location.
(k)An updated list of the names and corporate mailing addresses of producers, as described in subdivision (a) of Section 42984.10 and brands of covered products and brands of covered products covered under the plan.
(l)The total weight and number of covered products sold in or into the state attributed to a producer, who is a registered participant of the PROs plan, which are collected in the state and reused or recycled by the PRO, including a description of the methodology and information used to determine and calculate these values.
(m)A complete accounting of the ultimate disposition of all covered products collected by the PRO, including the total weight of covered products that were repaired and recycled.
(n)Metrics and a description of the progress toward attaining the performance standards included in the plan.
(o)A description of methods used to collect, transport, repair, and recycle covered products by the PRO, including a description of all of the following:
(1)How the PRO handled and managed covered products according to the waste hierarchy as defined in Section 40051.
(2)How the PRO maximized reuse and recycling of all covered products.
(3)How the PRO minimized disposal of all covered products collected by the PRO.
(4)Results of the PROs assessment of the efficacy of the collection, sorting, and transportation process.
(p)A description of how the PRO provided incentive payments, grants, and market development investments to support the infrastructure necessary to effectively implement the plan, including how incentive payments, grants, and market development investments prioritized infrastructure closer to the point of generation.
(q)A description of outreach efforts and education, including, but not limited to, the PROs evaluation of the efficacy of the comprehensive statewide education and outreach program pursuant to subdivisions (i) and (k) of Section 42984.10.
(r)A description of how the PRO coordinated with other PROs and entities pursuant to subdivision (l) of Section 42984.10.
(s)A report on activities the PRO has undertaken to prioritize the use of sorting and recycling facilities located closer to the point of generation to minimize transportation emissions and increase accountability for the ultimate disposition of collected covered products.
(t)Any other information deemed relevant by the PRO for the department to determine compliance with the approved plan.(t)An analysis of whether the PRO met performance standards established by the PRO pursuant to subdivision (c) of Section 42984.10 or by the department pursuant to Section 42984.11.
(u)A description of how the PRO addressed PFAS and other chemical contamination, including, but not limited to, the actions taken and investments made to avoid contamination, and the availability of end markets for recycled material that could not be remanufactured into textiles or textile articles in California.
(v)Any other information deemed relevant by the PRO for the department to determine compliance with the approved plan.
(u)(w)Any other information required by regulations adopted pursuant to Section 42984.2.
42984.18.(a)No later than 120 days after the date the department receives the annual report submitted by a PRO pursuant to Section 42984.17, the department shall notify the PRO if the annual report is compliant or noncompliant.
(b)If the department determines that the annual report is noncompliant due to failure to meet the requirements of this chapter, the department may require the resubmittal of the annual report or take enforcement action.
7.Department Responsibilities42984.19.Except where stated elsewhere, After March 1, 2032, the department shall may establish, review, and may adjust performance standards and the dates by which they must be achieved based on information included in the plan and annual reports, other information provided by the PRO, department waste characterization studies, needs assessment, and economic and any other relevant information. Performance standards published by the department pursuant to this subdivision shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
8.Enforcement and Civil Penalties42984.20.(a)Within 12 months of the effective date of regulations pursuant to Section 42984.2, and on or before July 1 of each year thereafter, the department shall post on its internet website a list of producers that are in compliance with this chapter. The department shall list, as appropriate, the reported brands of covered products for each producer.
(b)A producer that is not listed on the departments internet website pursuant to subdivision (a) that demonstrates compliance with this chapter before the next list is posted by the department may either be added to the internet website or be provided a certification letter from the department stating that the producer of a covered product is in compliance with this chapter.
(c)(1)A retailer, importer, or distributor shall monitor the departments internet website to determine if a producer, brand, or covered product is in compliance with this chapter for that producer of covered products.
(2)Except as provided in subdivision (d), on and after the date a plan is approved by the department pursuant to Section 42984.8, a retailer, importer, or distributor shall not sell, distribute, offer for sale, or import a covered product in or into the state for sale in the state unless the producer of the covered product is listed as in compliance pursuant to this section for that brand and covered product.
(d)(1)Notwithstanding paragraph (2) of subdivision (c), a retailer, importer, or distributor may sell, offer for sale, import, or distribute a covered product if, on the date the retailer or distributor sells or offers for sale the covered product in or into the state, the producer, brand, or covered product was listed as compliant on the departments internet website.
(2)Notwithstanding paragraph (2) of subdivision (c), a retailer or distributor may, for any existing inventory in stock before the initial list was posted by the department pursuant to subdivision (a), sell or distribute that inventory for sale in or into the state.
(e)(1)If the department determines a producer is not in compliance with this chapter, the department shall remove the producer, along with its brands and covered products, from the list of compliant producers posted on the departments internet website pursuant to subdivision (a).
(2)The department shall list on its internet website a producer, along with its brands and covered products, if the department subsequently determines that the producer is in compliance with this chapter.
42984.21.(a)An administrative civil penalty up to the following amounts may be administratively imposed by the department on any person who is in violation of any provision of this chapter:
(1)Ten thousand dollars ($10,000) per day.
(2)Fifty thousand dollars ($50,000) per day if the violation is intentional or knowing.
(b)In assessing or reviewing the amount of a civil penalty imposed pursuant to subdivision (a) for a violation of this chapter, the department or the court shall consider all of the following:
(1)The nature and extent of the violation.
(2)The number and severity of the violation or violations.
(3)The economic effect of the penalty on the violator.
(4)Whether the violator took good faith measures to comply with this chapter and the period of time over which these measures were taken.
(5)The willfulness of the violators misconduct.
(6)The deterrent effect that the imposition of the penalty would have on both the violator and the regulated community.
(7)Any other factor that justice may require.
(c)The department shall establish, through regulations adopted pursuant to Section 42984.2, a process that shall include an informal hearing process by which the penalties will be assessed.
(d)The department shall deposit all penalties collected pursuant to this section into the Textile Stewardship Recovery Penalty Account, which is hereby created in the Textile Stewardship Recovery Fund. Upon appropriation by the Legislature, moneys in the Textile Stewardship Recovery Penalty Account shall be available for expenditure by the department on activities related to the collection and recycling of covered products, grants for related purposes, and the administration and enforcement of this chapter.
(e)The Administrative Adjudication Bill of Rights, as set forth in Chapter 4.5 (commencing with Section 11425.10) of Part 1 of Division 3 of Title 2 of the Government Code, applies to hearings conducted under this chapter and mandates minimum due process.
42984.22.(a)Upon a written finding that a producer, PRO, manufacturer, distributor, retailer, or importer site has not met a material requirement of this chapter, in addition to any other penalties authorized under this chapter, the department may take one or both of the following actions to ensure compliance with the requirements of this chapter, after affording the entity a reasonable opportunity to respond to, or rebut, the finding, take any of the following actions to ensure compliance with the requirements of this chapter:
(1)Revoke the PROs plan approval or require the PRO to resubmit the plan.
(2)Require additional reporting relating to compliance with the material requirement of this chapter that was not met.
42984.23.(a)A producer, PRO, manufacturer, distributor, retailer, or importer shall do both of the following:
(1)Upon request, provide the department with reasonable and timely access, as determined by the department, to its facilities and operations, as necessary to determine compliance with this chapter.
(2)Upon request, within 14 days, 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 five years. All reports and records provided to the department pursuant to this chapter shall be provided under penalty of perjury.
(c)(1)The department may impose administrative civil penalties pursuant to Section 42984.21 on a producer, PRO, manufacturer, distributor, retailer, or importer that fails to provide the department with the access required pursuant to this section.
(2)The department may post a notice on the departments internet website that is maintained pursuant to Section 42984.20 that a producer that fails to provide the department with access pursuant to this section, along with the producers brands and covered products, is no longer in compliance with this chapter.
42984.24.After the time for judicial review under Section 11523 of the Government Code has expired, the department may apply to the small claims court or superior court, depending on the jurisdictional amount and any other remedy sought, in the county where the penalties, restitution, or other remedy was imposed by the department, for a judgment to collect any unpaid civil penalties or restitution or to enforce any other remedy provided by this chapter. The application, which shall include a certified copy of the final agency order or decision, shall constitute a sufficient showing to warrant the issuance of the judgment. The court clerk shall enter the judgment immediately in conformity with the application. The judgment so entered shall have the same force and effect as and shall be subject to all the provisions of law relating to a judgment in a civil action and may be enforced in the same manner as any other judgment of the court. The court shall make enforcement of the judgment a priority.
8.9.Antitrust Immunity42984.25.(a)Except as provided in subdivision (c), an action specified in subdivision (b) that is taken by a PRO 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) applies to all of the following actions taken by a PRO:
(1)The creation, implementation, or management of a plan approved by the department pursuant to Article 3 (commencing with Section 42984.6) and the determination of the types or quantities of covered products repaired, reused, recycled, or otherwise managed pursuant to a plan.
(2)The determination of the cost and structure of an approved plan.
(3)The establishment, administration, collection, or disbursement of a charge associated with funding the implementation of this chapter.
(c)Subdivision (a) does not apply to an agreement that does any of the following:
(1)Fixes a price of or for covered products, except for an agreement related to costs or charges associated with participation in a plan approved by the department and otherwise in accordance with this chapter.
(2)Fixes the output or production of covered products.
(3)Restricts the geographic area in which, or customers to whom, covered products will be sold.
9.10.County Authority42984.26.This chapter does not grant a city, county, city and county, special district, or joint powers authority any new authority over solid waste hauling operations pursuant to a franchise agreement and does not affect, limit, or abrogate in any manner any franchise granted to a solid waste enterprise for the handling of solid waste.
11.Online Marketplace42984.27.An online marketplace shall annually do the following in accordance with regulations adopted by the department pursuant to Section 42984.2:
(a)(1)Notify the department and the PRO of all third-party sellers with sales of covered products over one million dollars ($1,000,000) in the preceding year and provide all required information.
(2)The amount of sales described in paragraph (1) includes only those transactions through the online marketplace for which payment is processed by the online marketplace directly or through its payment processor.
(b)Provide all third-party sellers described in (a) with the information on requirements of law as provided by the PRO pursuant to paragraph (8) of subdivision (g) of Section 42984.10.
SEC. 2.The Legislature finds and declares that Section 1 of this act, which adds Sections 42984.8 and 42984.16 to the Public Resources Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
It is in the best interest of the public to provide limited protection of certain financial and sales data of program participants, in order to protect the interests of businesses and the privacy of their data regarding their customers.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
This act may be known, and shall be cited, as the Responsible Textile Recovery Act of 2024.
42984.1.The purpose of this chapter is to increase the amount of postconsumer apparel and textile articles that are diverted from landfills and reused, repaired, and recycled into secondary products or otherwise managed in a manner that is consistent with the states hierarchy for waste management practices pursuant to Section 40051.
42984.2.The department, acting in accordance with Article 1 (commencing with Section 11340) to Article 8 (commencing with Section 11350), inclusive, of the Administrative Procedure Act, as set forth in Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, shall adopt regulations to implement this chapter with an effective date of no earlier than January 1, 2028.
42984.3.(a)(1)Apparel means clothing and accessory items intended for regular wear or formal occasions and outdoor activities. For purposes of this chapter apparel includes only undergarments, shirts, pants, skirts, dresses, overalls, bodysuits, costumes, vests, dancewear, suits, saris, scarves, tops, leggings, school uniforms, leisurewear, athletic wear, sports uniforms, everyday swimwear, formal wear, onesies, bibs, footwear, handbags, backpacks, knitted and woven accessories, jackets, coats, snow pants, ski pants, and everyday uniforms for workwear.
(2)Apparel does not include any of the following:
(A)Personal protective equipment or clothing items for use by the United States military.
(B)Personal protective equipment worn to protect the wearer from health or environmental hazards.
(C)Reusable products designed to collect and absorb urine and feces, or reusable products regulated by the United States Food and Drug Administration that are designed to collect and absorb menstruation or vaginal discharge.
(c)(b)Authorized collector means a person or entity that has entered into an agreement with a program operator PRO to collect covered products.
(d)(c)Authorized sorter means a person or entity that has entered into an agreement with a program operator PRO to sort covered products collected by authorized collectors.
(e)(d)Authorized repair business means a person or entity that has entered into an agreement with a program operator PRO to repair covered products for resale after collection by an authorized collector or after sorting by an authorized sorter.
(f)(e)Brand means a trademark, including both a registered trademark and an unregistered trademark, a logo, a name, a symbol, a word, an identifier, or a traceable mark that identifies a covered textile article product and identifies the owner or licensee of the brand.
(g)(f)Collection site means a permanent or temporary location operated by an authorized collector at which covered products are collected and prepared for transport in accordance with the requirements of this chapter.
(h)(g)Consumer means an owner of a covered product, including a person, business, corporation, limited partnership, nonprofit organization, or governmental entity, and includes the ultimate purchaser, owner, or lessee of a covered product, who is not, as to that covered product, the distributor, importer, producer, recycler, retailer, or stewardship organization. PRO.
(i)(1)Covered product means any any postconsumer apparel or postconsumer textile article that is unwanted by a consumer.(2)Covered product does not include either of the following:(A)A product covered under the Used Mattress Recovery and Recycling Act (Chapter 21 (commencing with Section 42985)).(B)A product covered under the Electronic Waste Recycling Act of 2003 (Chapter 8.5 (commencing with Section 42460)).(h)(1)Covered product means an apparel or textile article.
(2)Covered product does not include either of the following:
(A)A product covered under the Used Mattress Recovery and Recycling Act (Chapter 21 (commencing with Section 42985)).
(B)A product covered under the Electronic Waste Recycling Act of 2003 (Chapter 8.5 (commencing with Section 42460)).
(C)A product covered under the Product Stewardship for Carpets law (Chapter 20 (commencing with Section 42970)).
(j)(i)Department means the Department of Resources Recycling and Recovery or a successor agency.
(k)(j)Distributor means a company that has a contractual relationship with one or more producers to market and sell covered textile articles products to a retailer.
(l)(k)Importer means either of the following:
(1)A person 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 covered textile article product that is sold, distributed for sale, or offered for sale in or into the state that was manufactured or assembled by a company outside of the United States.
(2)A person importing into the state for sale, distributing for sale, or offering for sale in the state a covered textile article product that was manufactured or assembled by a company physically located outside of the state.
(m)(l)Local jurisdiction means a city, county, city and county, or a regional agency formed pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code or Article 3 (commencing with Section 40970) of Chapter 1 of Part 2 of this code, or a special district that provides solid waste collection services.
(n)(m)Mail-back program means a method of collecting covered products using prepaid, preaddressed mailing envelopes envelopes, boxes, or other means that are reusable, recyclable, or compostable.
(n)Marketplace facilitator means ____.
(o)Nonprofit thrift store has the same meaning as set forth in Section 6363.3 of the Revenue and Taxation Code.
(o)(p)Person has the same meaning as set forth in Section 40170.
(p)(q)(1)Producer means a person who manufactures a covered product and who owns or is the licensee of the brand or trademark under which that covered product is sold, offered for sale, or distributed for sale in or into the state.
(2)If there is no person in the state who is the producer for purposes of paragraph (1), the producer of the covered product is the owner of a brand or trademark or, if the owner is not in the state, the exclusive licensee of a brand or trademark under which the covered product is sold, imported for sale, offered for sale, or distributed for sale in or into the state. state, regardless of whether the trademark is registered. For purposes of this subdivision, an exclusive licensee is a person holding the exclusive right to use a trademark or brand in the state in connection with the manufacture, sale, or distribution for sale in or into the state of the covered product.
(3)If there is no person in the state who is the producer for purposes of paragraph (1) or (2), the producer of the covered product is the person who sells, offers for sale, or is the importer or distributor of the covered textile article in or into the state for sale in or into the state.(4)For purposes of this chapter, the sale of a covered textile article shall be deemed to occur in the state if the covered textile article is delivered to the consumer in the state.(5)Producer does not include a seller of secondhand apparel or secondhand textile articles.(q)Program operator means a producer, or a stewardship organization on behalf of a group of producers, which is responsible for implementing a stewardship program in accordance with the requirements of this chapter.(r)Recycling has the same meaning as set forth in Section 40180.(s)Recycling efficiency rate means the ratio of the weight of covered products recycled by a program operator to the weight of those covered products collected by the program operator.(t)Repair means any alteration or improvement of damaged covered materials deemed worth the cost of repair by criteria established by the stewardship plan, including, but not limited to, any of the following:(1)Washing or laundering.(2)Upcycling, redesign, and repurposing.(3)Mending rips, holes, seams, and hems.(4)Removing and repairing surface damages, such as pilling, stain removal, or abrasion.(5)Securing and reattaching buttons and other fastenings.(6)Dyeing, redyeing, overdyeing, or printing of images on covered products.(u)Retailer means a person who sells or offers for sale a covered product in or into the state to a person through any means, including, but not limited to, sales outlets, catalogs, the telephone, the internet, or any electronic means.(v)Reuse means putting a collected covered product back into commerce for its original intended use and when the collected covered product retains its original performance characteristics and can be used for its original purpose with or without repair.(w)Secondhand apparel means any apparel item that has been previously owned by a consumer.(x)Secondhand textile article means a usable textile article that has been previously owned by a consumer.(y)Secondhand markets means a retailer who sells secondhand apparel or secondhand textile articles, including, but not limited to, thrifts, online resale platforms, and flea markets.(z)Stewardship organization means an organization exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986 (26 U.S.C. Sec. 501(c)(3)) that is established or designated by a group of producers in accordance with this chapter to develop and implement a stewardship program.(aa)Stewardship plan or plan means a plan developed by a program operator pursuant to this chapter for the collection, transportation, repair, recycling, and the safe and proper management of covered products.(ab)Stewardship program means a program established by a program operator pursuant to this chapter for the free at drop off, convenient, and safe collection, transportation, repair, recycling, and otherwise proper management of covered products.(ac)Textile article means any item customarily used in households or businesses that are made entirely or primarily from a natural, artificial, or synthetic fiber, yarn, or fabric. For purposes of this chapter, textile article includes blankets, curtains and fabric window coverings, knitted and woven accessories, towels, tapestries, bedding, tablecloths, napkins, linens, pillows, and fabric sold by the bolt at retail.(3)If there is no person in the state who is the producer for purposes of paragraph (1) or (2), then the producer of the covered product is the person that imports the covered product into the state for sale or distribution.
(4)If there is no person in the state who is the producer for purposes of paragraph (1), (2), or (3) and if the person who sells the covered product is a ____, then the marketplace facilitator is the obligated producer.
(5)If there is no other person in the state who is the producer for purposes of paragraphs (1), (2), (3), or (4), the producer of the covered product is the distributor, retailer, or wholesaler who sells the product in or into the state.
(6)For the purposes of this chapter, the sale of a covered product shall be deemed to occur in the state if the covered product is delivered to the consumer in the state.
(7)Producer does not include a seller that only sells secondhand apparel.
(8)Producer does not include a seller with less than one million dollars ($1,000,000) in annual sales.
(r)Producer responsibility organization or PRO means an organization that is exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986, is formed for the purpose of implementing a plan to meet the requirements of this chapter, and is approved by the department.
(s)Producer responsibility plan or plan means the plan developed by the PRO for the collection, transportation, repair, recycling, and the safe and proper management of covered products pursuant to subdivision (a) of Section 42984.8 and submitted to the department for approval pursuant to subdivision (b) of Section 42984.8.
(t)Recycle or recycling has the same meaning as set forth in subdivision (aa) of Section 42041.
(u)Repair means any alteration or improvement of damaged covered product deemed worth the cost of repair by criteria established by the plan, including, but not limited to, any of the following:
(1)Redesigning and repurposing.
(2)Mending rips, holes, seams, and hems.
(3)Removing and repairing surface damage, such as pilling, stain removal, or abrasion.
(4)Securing and reattaching buttons and other fastenings.
(5)Dyeing, redyeing, overdyeing, or printing of images on covered products.
(6)Preparation for reuse and resale.
(v)Retailer means a person who sells or offers for sale a covered product in or into the state to a person through any means, including, but not limited to, sales outlets, catalogs, the telephone, the internet, or any electronic means.
(w)Reuse means the resale of a collected covered product for its original intended use with or without repair.
(x)Secondhand covered product means any covered product that has been previously owned by a consumer.
(y)Secondhand markets means a retailer who sells secondhand covered products, including, but not limited to, thrift stores, online resale platforms, and flea markets.
(z)Stewardship program means a program established by a PRO pursuant to this chapter for the free, convenient, and safe collection, transportation, repair, recycling, and otherwise proper management of covered products.
(aa)Textile article means an item customarily used in households or businesses that are made entirely or primarily from a natural, artificial, or synthetic fiber, yard, or fabric. For purposes of this chapter, textile article includes only blankets, curtains, fabric window coverings, knitted and woven accessories, towels, tapestries, bedding, tablecloths, napkins, linens, and pillows.
42984.1.(a)The department, acting in accordance with Article 1 (commencing with Section 11340) to Article 8 (commencing with Section 11350), inclusive, of the Administrative Procedure Act, as set forth in Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, shall adopt regulations to implement this chapter with an effective date of no earlier than December 31, 2025.(b)Beginning January 1, 2032, the department may reassess the regulations developed pursuant to subdivision (a). The reassessment may include adjusting the minimum required collection sites, establishing a minimum recycling efficiency rate for covered products collected and recycled by program operators, or establishing other criteria for the program.(c)(1)No later than 90 days after the effective date of regulations adopted pursuant to this section, the department shall appoint an advisory committee for the purposes of consulting with producers and stewardship organizations with approved plans. Membership in the advisory committee shall include, but is not limited to, representatives from local governments, recyclers, retailers, nonprofit thrift stores, authorized collectors, authorized sorters, authorized repair businesses, nongovernmental organizations, environmental organizations, community-based justice and public health organizations, the second-hand industry, and the solid waste industry.(2)Participation on the advisory committee shall be voluntary.(3)The advisory committee is not a state body as that term is used in Section 11121 of the Government Code, but shall provide advanced public notice about meetings, allow public participation in all meetings, and vote on written recommendations at public meetings.2.Producers42984.2.(a)In order to comply with the requirements of this chapter, a producer may establish and implement a stewardship program independently, or as part of a group of producers through membership in a stewardship organization exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986 (21 U.S.C. 501(c)(3)). Producers may establish or designate one or more stewardship organizations to comply with the requirements of this chapter.(1)A producer shall not sell, distribute for sale, offer for sale, or import for sale any apparel or textile article in or into this state unless the producer is in compliance with this chapter and any regulations in effect and adopted pursuant to Section 42984.1.(2)Every producer shall, no later than 180 days after the effective date of this chapter, notify all persons through which it is selling, distributing, importing, or offering for sale a covered product in or into the state for sale in or into the state whether it will comply with this chapter individually or through a stewardship organization.(3)Each producer covered under a stewardship organization shall register with that stewardship organization in accordance with the procedures and requirements established by that stewardship organization and shall comply with those procedures and requirements.(b)A producer is not in compliance with this chapter and is subject to penalties pursuant to Article 7 (commencing with Section 42984.15) if, commencing two years from the adoption of regulations pursuant to Section 42984.1, a covered product sold or offered for sale by the producer is not subject to an approved stewardship plan that has been approved by the department pursuant to Section 42984.5. 42984.4.(a)(1)Producers of covered products shall form and join a PRO for the purposes of complying with this chapter. The governing body of the PRO shall submit an application to the department by January 1, 2026, describing how the PRO meets the requirements to be an approved PRO pursuant to this chapter. If the department approves the PRO, the PRO shall proceed to carry out the requirements of this chapter. If applications for more than one PRO are submitted to the department, the department shall determine which proposed PRO can most effectively implement this chapter.
(2)The department shall, by, March 1, 2026, approve a PRO that meets the requirements of this chapter and both of the following:
(A)The PRO has a governing board consisting of producers that represent the diversity of covered products placed in the market by those entities.
(B)The PRO demonstrates that it has adequate financial responsibility and financial controls in place, including fraud prevention measures and an audit schedule, to ensure proper management of funds.
(3)After January 1, 2035, upon the determination of the director that an additional PRO would be beneficial in satisfying the requirements of this chapter, the department may approve additional PROs that meet the requirements of this chapter and that meet all of the following requirements:
(A)The proposed PRO submits to the department, and agrees to cover the departments reasonable costs to review, a petition to establish a new PRO.
(B)The proposed PRO is composed of a sufficient number of producers to jointly comply with the requirements of this chapter.
(C)The proposed PRO agrees to cover the costs of all of the provisions of this chapter applicable to the proposed PRO and its participant producers.
(b)Each producer covered under a PRO shall register with that PRO in accordance with the procedures and requirements established by that PRO and shall comply with those procedures and requirements.
(c)Upon approval of a plan pursuant to Section 42984.8, or commencing January 1, 2030, whichever is sooner, a producer shall not sell, offer for sale, import, or distribute a covered product in the state unless all of the following are met:
(1)The producer is a participant of the PRO.
(2)The covered product is accounted for in the plan.
(3)The department has approved the plan.
(4)If an entity does not meet the definition of a producer and is not subject to this chapter before January 1, 2030, but, at any point, after January 1, 2030, meets the definition of a producer, the producer shall become a participant of the PRO and comply with the requirements of this chapter prior to beginning to sell, offer for sale, import, or distribute covered products in or into the state.
(d)A producer is not in compliance with this chapter and is subject to penalties pursuant to this chapter if a covered product sold or offered for sale by the producer is not subject to an approved PRO plan that has been approved by the department pursuant to Section 42984.8.
42984.3.42984.5.(a)No later than 180 30 days after the effective date of the regulations implementing this chapter, individual producers or the PRO shall provide to the department, in a form and manner established by the department, a list of covered products and brands of covered products that the producer sells, distributes for sale, imports for sale, or offers for sale in or into the state.
(b)A producer or PRO shall update the list described in subdivision (a) and provide the updated list to the department on or before January 15 of each year or upon request of the department.
3.Program Operators Producer Responsibility Organizations (PROs)42984.4.(a)(1)A program operator shall establish a method for fully funding the stewardship program in a manner that equitably distributes the stewardship programs costs among participating producers that reflects production and sales volumes. The funding mechanism shall incentivize green design by modulating distribution of cost of participating producers to consider the cost of repairing, recycling, or otherwise managing their specific covered products.(2)A producer that elects to meet the requirements of this chapter individually, without joining a stewardship organization, shall establish a method for fully funding the stewardship program.(b)A program operator shall include as a collection site under its stewardship program any local jurisdiction that offers in writing to participate in the stewardship program and agrees to comply with any program operator requirements that are consistent with that program operators approved stewardship plan, even if the minimum thresholds described in subdivision (e) of Section 42984.7, as applicable, have been achieved.(1)A program operator shall include the local jurisdiction as a collection site in the stewardship program within 90 days of receiving the written offer to participate, confirming that the offering entity will comply with any program operator requirements that are consistent with that program operators approved stewardship plan, even if the minimum thresholds described in subdivision (e) of Section 42984.7, as applicable, have been achieved.(2)The program operator shall not be required to respond to offers pursuant to this paragraph until the program operators stewardship plan has been approved by the department.(c)A program operator may suspend or terminate a collection site that does not comply with all applicable state, federal, or municipal laws and regulations or adhere to the rules and conditions imposed by the program operator pursuant to paragraph (5) of subdivision (g) of Section 42984.7.(d)A collection site shall be operated to ensure that covered products are collected safely and handled in accordance with all applicable state, federal, and municipal laws and regulations and the rules and conditions of the stewardship plan. Authorized collectors and authorized sorters may divert reusable apparel and textile articles for sale in secondhand markets.(e)A program operator shall require all contractors to pay the state minimum wage.42984.6.(a)(1)A PRO shall prepare the initial statewide needs assessment, in consultation with the department, designed to determine the necessary steps and investment needed for covered products, to achieve the requirements of this chapter. Needs assessments, or components thereof, shall be updated every five years or as necessary to ensure the requirements of this chapter are met. An initial needs assessment for covered products shall be completed before the completion and approval of any producer responsibility plan for covered products. The PRO may select an independent third-party contractor to complete the needs assessment.
(2)A PRO shall cover the cost of developing any needs assessment and any update to a needs assessment.
(3)A PRO may prepare more than one needs assessment, with each assessment specific to one or more covered products subject to this chapter, or may prepare one comprehensive needs assessment that includes all covered material subject to this chapter.
(4)A PRO shall consult with the department and local jurisdictions when preparing the needs assessment.
(5)The initial needs assessment, and any updates, shall be submitted to the department by March 1, 2027.
(6)If there is more than one PRO approved by the department at the time updated needs assessments are completed, then the approved PROs may collaborate on a single needs assessment.
(b)A needs assessment shall comply with all of the following:
(1)Be designed to inform the program budget and PRO plan.
(2)Include an evaluation of all of the following with respect to covered products and covered product categories:
(A)Existing scope and scale of annual covered products diverted to landfill in the state by type of covered product, material composition, and volume and annual covered product recovery diverted to reuse, repair, or recycling in the state or from the state by type of covered product, material composition, and volume.
(B)The current repair, reuse, recycling, collection, sorting, and hauling system in the state and the expanded access and additional repair, reuse, recycling, collection, sorting, disassembly, and hauling options needed to meet the requirements of this chapter.
(C)Current market conditions and the need to create viable end markets in the state, regionally, and globally.
(D)Existing state statutory provisions and funding sources related to market development and financial incentives to help achieve the states goals related to repair, reuse, recycling, collection, sorting, disassembly, and hauling.
(E)Consumer education needs and the methods by which the PRO can best reach consumers with educational messaging.
(F)Consumer behaviors to drive repair, reuse, and recycling and to achieve the requirements of this chapter.
(G)Funding needs and incentive mechanisms necessary to achieve the requirements of this chapter, including coverage of the operation of the stewardship program.
(H)Fee reduction or redistribution mechanisms necessary to achieve the requirements of this chapter, in a manner that equitably distributes the costs among participating producers that reflects production and sales volumes.
(I)Actions and investments necessary to provide sufficient access to collection, recycling, composting, processing, and transportation to viable end markets.
(J)An evaluation of the availability or lack of availability of markets for recycled covered material, the need to incentivize reused products or recycled material market development, and the associated investments and actions needed to ensure that the covered products are reused or recycled and have viable and sufficient end markets.
(K)Whether allowing more than one PRO would be beneficial in meeting the requirements of the chapter.
42984.7.(a)A PRO shall include as a collection site under its stewardship program any local jurisdiction that offers in writing to participate in the stewardship program and agrees to comply with any PRO requirements that are consistent with that PROs approved plan even if the minimum thresholds described in subdivision (d) of Section 42984.10, as applicable, have been achieved.
(1)A PRO shall include the local jurisdiction as a collection site in the stewardship program within 90 days of receiving the written offer to participate, confirming that the local jurisdiction will comply with any PRO requirements that are consistent with an approved plan, even if the minimum thresholds described in subdivision (d) of Section 42984.10, as applicable, have been achieved.
(2)The PRO shall not be required to respond to offers pursuant to this paragraph until the PROs plan has been approved by the department.
(b)A PRO may suspend or terminate a collection site that does not comply with all applicable state, federal, or municipal laws and regulations or adhere to the rules and conditions imposed by the PRO.
(c)A collection site shall be operated and managed to ensure that covered products are collected safely and handled in accordance with all applicable state, federal, and municipal laws and regulations and the rules and conditions of the plan. Authorized collectors and authorized sorters may divert reusable covered products for sale in secondhand markets.
(d)A PRO shall require all contractors to pay at least the state minimum wage.
(e)Each participant of a PRO with an approved plan shall comply with the requirements of this chapter. The PRO shall notify the department within 30 calendar days of any the following:
(1)The end of any three-month period in which the PRO unsuccessfully attempted to obtain a fee, records, or information from a participant producer, or received incomplete or incorrect records or information.
(2)The date a producer no longer participates in the PROs approved plan.
(3)Any instance of noncompliance by a participant producer.
4.Stewardship Plan for Covered Products Producer Responsibility Plan for Covered Products42984.5.42984.8.(a)Within 12 months of the effective date of the regulations adopted by the department pursuant to Section 42984.1, 42984.2, a program operator PRO shall develop and submit to the department a complete stewardship plan, in a form and manner determined by the department, in accordance with the requirements of this chapter, for the collection, transportation, repair, sorting, recycling, and the safe and proper management of covered products in the state. No program operator PRO serving more than one producer may limit its stewardship plan for covered products to the covered products of the producers participating in that stewardship program.
(b)The department shall review the stewardship plan for compliance with this chapter and shall approve, disapprove, or conditionally approve the plan within 120 days of receipt of the plan. The department may consult with or submit a stewardship plan for review to the Department of Toxic Substances Control if the department determines it is necessary for making a determination of approval of a stewardship plan. If the department consults with the Department of Toxic Substances Control, then the department shall approve, disapprove, or conditionally approve the plan within 180 days of receipt of the plan.
(c)(1)If the department disapproves a stewardship plan submitted by a program operator, PRO, the department shall explain how the stewardship plan does not comply with this chapter and provide written notice to the program operator PRO within 30 60 days of disapproval. The program operator PRO may resubmit to the department a revised stewardship plan within 60 30 days of the date the written notice was issued, and the department shall review the revised stewardship plan within 90 60 days of resubmittal. If a revised stewardship plan is disapproved by the department, a producer operating under the stewardship plan shall not be in compliance with this chapter until the department approves a stewardship plan submitted by a program operator that covers the producers products.
(d)Within 24 months of the effective date of the regulations adopted by the department pursuant to Section 42984.1, a program operator shall have a complete stewardship plan approved by the department and each producer shall be subject to an approved stewardship plan in order to be in compliance with this chapter.(2)If the department disapproves a revised plan submitted by a PRO, the department shall explain how the plan does not comply with this chapter and provide written notice to the PRO within 60 days of disapproval. The PRO shall then revise and resubmit the plan consistent with the departments direction within 30 days, otherwise the disapproval is final and the PRO and producers may be subject to penalties.
(3)By January 1, 2030, a PRO shall have a complete plan approved by the department and each producer shall be subject to an approved plan to be in compliance with this chapter.
(d)Within three months of approval by the department, a PRO shall begin to implement the approved plan.
(e)A PRO with an approved plan shall submit any proposed substantial change to the plan to the department for approval employing the procedures set forth in this section.
(e)(f)The approved plan shall be a public record, except that financial or sales data reported to the department by the program operator PRO is not a public record for purposes of the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and shall not be open to public inspection. The department may release financial or sales data in summary form only so the information cannot be attributable to a specific producer or distributor or to any other entity.
42984.6.(a)Within 12 months of the approval of the stewardship plan by the department pursuant to Section 42984.5, a program operator shall fully implement its stewardship program.(b)An individual producer or a program operator may petition the department to investigate a noncompliant producer, and the department shall respond to the petition in a timely manner. 42984.7.A stewardship plan for covered products shall include all of the following:(a)The names of producers and brands of covered products covered under the stewardship plan.(b)A description of the consultative process by which the program operator consulted with the advisory committee created pursuant to subdivision (c) of Section 42984.1 to receive advice on the development and implementation of the stewardship plan, including all correspondence between the program operator and the advisory committee and a detailed explanation of how and why the program operator decided to adopt or not adopt each recommendation by the advisory committee.(c)(1)A description of the method to establish and administer a means for fully funding the stewardship program in a manner that equitably distributes the stewardship programs costs among the producers that are part of the stewardship organization that reflects production and sales volumes and the cost of repairing, recycling, or otherwise managing covered products pursuant to subdivision (a) of Section 42984.4. For producers that elect to meet the requirements of this chapter individually, without joining a stewardship organization, a description of the proposed method to establish and administer a means for fully funding the stewardship program.(2)(A)The stewardship plan shall include a stewardship program budget, for the next five calendar years, which includes a funding level and anticipated revenues and costs sufficient to cover the budgeted costs, including, but not limited to, administrative costs, operational costs, and capital costs, to operate the stewardship program in a prudent and responsible manner. Administrative costs shall include the departments anticipated actual, reasonable, and direct regulatory costs to implement and enforce this chapter as the criteria for all the costs are defined in the regulations adopted pursuant to Section 42984.1. For purposes of this paragraph, stewardship program implementation begins once the department approves a program operators stewardship plan, except the departments costs shall include actual, reasonable, and direct regulatory development costs and other startup regulatory costs incurred prior to stewardship plan submittal and approval.(B)(i)The stewardship program shall reevaluate the budget on an annual basis and adjust allocations for the five-year budget plan as needed.(ii)When reevaluating the budget as required by paragraph (1), the program operator shall also reconsider the distribution of costs pursuant to subdivision (a) of Section 42984.4.(d)A description of methodologies for annually measuring, and meeting or exceeding the recycling efficiency rate or other criteria established by the department pursuant to subdivision (b) of Section 42984.1, as applicable. If a minimum recycling rate has not been established by the department, a program operator shall include a target recycling efficiency rate for covered products recycled by the program operator.(e)A description of how the program operator will provide for a free and convenient collection system for covered products in each county of the state that meets both of the following requirements:(1)A minimum of 10 collection sites per county or one collection site per 25,000 people, whichever is greater, except as identified in this paragraph.(A)A county with a population of 18,000 and under, as reported annually by the Department of Finance, shall have a minimum of three collection sites.(B)A county with a population of between 18,001 and 50,000, as reported annually by the Department of Finance, shall have a minimum of four collection sites.(C)A county with a population between 50,001 and 100,000, as reported annually by the Department of Finance, shall have a minimum of eight collection sites.(2)The collection sites in each county shall be spread throughout the county to facilitate widespread access and convenience.(f)A description of how a program operator and its authorized collection sites will allow a consumer to drop off covered products at a collection site at no charge.(g)A description of how collection sites will be authorized and managed, including all of the following:(1)A description of the process by which local jurisdictions can request to be a collection site pursuant to Section 42984.4.(2)A description of how the program operator will provide to collection sites at no cost the appropriate containers for covered products, training, signage, safety guidance, and educational materials.(3)An explanation of the process by which the program operator will provide for the transport of covered products from the collection sites to an authorized sorter, or directly to an authorized repair business, or recycling facility.(4)A description of how collection sites will be allowed to divert collected covered products to secondhand markets for reuse, and how those diversions will be tracked.(5)A list of all proposed rules, conditions, and requirements for authorized collectors, authorized sorters, and authorized repair businesses, including a template proposed agreement for each of those types of entities, as applicable.(6)A description of how the program operator will prioritize the use of nonprofit thrift stores, as defined in Section 6363.3 of the Revenue and Taxation Code, when establishing collection sites to meet the minimum requirements in subdivision (e).(h)A description of the process by which collected covered products will be sorted, transported, processed, repaired, reused, and recycled following collection at collection sites, including all of the following:(1)A description of how covered products will be handled and managed according to the waste management practices pursuant to Section 40051, including both of the following:(A)How the stewardship plan will prioritize source reduction through the repair and reuse of collected covered products.(B)How the stewardship plan will include the incentive payments, grants, and market development investments specified in paragraph (7) to encourage reuse and repair over recycling and composting.(2)A description of how covered products will be sorted by authorized sorters, including a description of how the flow of covered products to and from authorized collectors, authorized sorters, authorized repair businesses, and recyclers will be tracked.(3)A description of how the program operator will maximize the repair, reuse, and recycling of all covered products.(4)A description of how the program operator will minimize disposal of covered products collected by the program operator.(5)A description of how the program operator will prioritize the use of sorting, repair, and recycling facilities located closer to the point of collection to minimize transportation-related emissions and increase accountability for the ultimate disposition of the covered products.(6)A description of how the program operator will annually assess the efficacy of the collection, sorting, and transportation process.(7)A description of how the stewardship plan will provide incentive payments, grants, and market development investments to support the infrastructure necessary to effectively implement the plan, including how incentive payments, grants, and market development investments will prioritize infrastructure closer to the point of generation to minimize transportation emissions and increase accountability for the ultimate disposition of collected covered products.(8)A description of how the program operator will prioritize the use of nonprofit entities in the sorting and repair of collected covered products.(i)A comprehensive statewide education and outreach program designed to educate consumers and promote participation in the collection, repair, and recycling program offered by the program operator. At a minimum, the comprehensive statewide education and outreach program shall include all of the following:(1)A description of the education and communications strategy being implemented to effectively promote participation in the stewardship program and provide the information necessary for effective participation by consumers, retailers, local jurisdictions, and others.(2)An internet website that publicizes the location of collection sites and provides information to consumers on how to drop off covered products at the free and convenient network of collection sites offered by the stewardship program, including any information reasonably necessary to safely and conveniently access the collection, repair, and recycling services offered by the program operator.(3)All signage and materials required for collection sites by the program operator, and the method by which collection sites can access replacement materials at no cost to the collection site.(4)A description of efforts to support participation by all California communities, including a description of efforts to communicate with consumers in languages other than English.(5)A description of strategies, goals, and metrics used to determine the success of the statewide education and outreach program.(A)The statewide education and outreach program shall promote the safe and proper management of covered products, including source reduction, environmentally preferable purchasing, and repairing covered products. This includes education and training for authorized collectors to incentivize domestic resale of usable textile articles.(B)The statewide education and outreach program shall not promote the disposal of covered products in a manner inconsistent with the services offered by the stewardship plan.(C)The statewide education and outreach plan shall include information for consumers about how to avoid improper disposal of covered products.(6)(A)A description of how the program operators will annually assess and evaluate the efficacy of the comprehensive statewide education and outreach program and periodically adjust strategies to maximize participation in the stewardship program.(B)Any program operator serving more than one producer shall coordinate with other program operators on the education and outreach programs that they implement pursuant to this subdivision.(7)Information to the public on secondhand markets and the source reduction benefits of reuse and repair.(j)Coordination with, and a description of the efforts and methods used to coordinate activities with, all of the following entities who are responsive to a request from the program operator:(1)Other program operators.(2)Existing textile article collection, repair, and recycling programs.(3)Community-based organizations, including nonprofit thrift stores as defined in Section 6363.3 of the Revenue and Taxation Code, that contact the program operator and that are qualified to run or support collection events.(k)A contingency plan in the event the stewardship plan expires, is disapproved, or is revoked. The contingency plan shall describe how the stewardship plan objectives can be carried out in the absence of a plan, either by the program operator or through an entity such as an escrow company.(l)Develop a program in coordination with other program operators to support laundries for laundering-covered products that includes funding for technology that reduces water consumption and improves microfiber filtration.(m)A description of how counterfeit goods that are illegal for secondhand markets to resell pursuant to Section 350 of the Penal Code will be recycled.(n)Develop strategies to address green design challenges for covered products, such as, but not limited to, compostability, reduction and removal of harmful chemicals, microfiber shedding, and mixed material blends.(o)A description of how the program operator will minimize the negative environmental impacts of all operations associated with the plan.42984.8.(a)In preparing a stewardship plan pursuant to Section 42984.7, and any updates to the plan pursuant to Section 42984.9, a program operator shall engage in a consultative process with the advisory committee created by the department pursuant to subdivision (d) of Section 42489.1. A program operator shall provide sufficient time and shall consider all written recommendations from the advisory committee during the plan development process.(b)A program operator shall consider the advisory committees recommendations. If the producer or stewardship organization decides not to incorporate the advisory committees written recommendations into the plan, the program operator shall provide a brief written explanation to the department and the advisory committee that explains the basis for the decision and also indicates whether the program operator plans to incorporate the recommendations into a subsequent stewardship plan, subsequent amendments to the plan, or a subsequent annual report.42984.9.(a)A program operator shall review its stewardship plan at least every five years after approval by the department and determine whether revisions to the plan are necessary.(b)If a program operator determines that revisions to the plan are necessary, the program operator shall submit to the department a revised plan for review and approval employing the procedures set forth in Section 42984.5. The stewardship organization shall submit the revised plan pursuant to this subdivision within 90 days of the review deadline outlined pursuant to subdivision (a).(c)If a program operator determines that no revisions to the plan are necessary, the program operator shall send a letter to the department no later than 30 days after the review deadline outlined in subdivision (a), explaining that the program operator has reviewed the plan, consulted with the advisory committee, and determined that no revisions are needed. The department may disapprove the program operators determination within 30 days of receipt of that determination if the department concludes that the program operator cannot implement the objectives of this chapter without revising the stewardship plan. In the event the department disapproves the program operators determination, the program operator shall submit to the department a revised stewardship plan for review and approval in accordance with Section 42984.5. The program operator shall submit the revised plan pursuant to this subdivision within 90 days of receipt of the departments disapproval.42984.9.The PRO shall fully implement the approved plan within 12 months of the departments approval of the plan pursuant to Section 42984.8.
42984.10.A plan for covered products shall be designed to accept and manage all postconsumer covered products and shall include all of the following:
(a)The names and contact information, including email address, phone number, and mailing and physical addresses, of producers and brands of covered products covered under the plan.
(b)(1)A description of the method to establish and administer a means for fully funding the PRO in a manner that distributes the PROs costs among the producers that are part of the stewardship organization using an eco-modulated fee that reflects production and California sales volumes and the cost of reusing, recycling, or otherwise managing covered products pursuant to subdivision (a) of Section 42984.4.
(2)A five-year budget that establishes a funding level sufficient to operate the PRO in a prudent and responsible manner. The budget shall demonstrate how estimated revenues will cover all budgeted costs for each cost category.
(3)Budgeted costs shall include, but not be limited to, administrative costs, education and outreach costs, operational costs, capital costs, and a reserve to operate the PRO should there be unexpected events, such as losses of income, and large unbudgeted expenses in order to protect the recycling infrastructure the PRO relies upon in its plan, during any lapse in producer participation during the life of the program. The plan shall include a description of the types of activities related to each line-item cost category. The reserve cost category shall include a reserve level amount and description justifying the reserve level amount indicated.
(4)The PRO shall maintain reserve funds sufficient to operate the plan for no less than six months. If a new plan submitted by a PRO is approved by the department, the PRO shall establish its reserve and maintain the required reserve fund balance by the end of the second year of plan operation.
(5)Administrative costs shall include the departments actual and reasonable regulatory costs, which include full personnel costs, to implement and enforce this chapter as the criteria for all the costs that are defined in the regulations adopted pursuant to Section 42984.2. For the purposes of this paragraph, PRO implementation begins once the department approves a PROs plan, except the departments costs shall include actual regulatory development costs and other startup costs incurred prior to plan submittal and approval.
(c)Include quantifiable five-year and annual performance standards and metrics until the department publishes performance standards pursuant to Section 42984.11. The PRO shall amend its plan to meet the performance standards published by the department. Performance standards published by the department pursuant to this subdivision shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. Performance standards may include, but are not limited to, collection, reduction in disposal, and maximizing reuse and recycling.
(d)A description of how the PRO will provide for a free and convenient dropoff or collection system for covered products, which shall include permanent collection sites and may include temporary collection sites and mail-back options, in each county of the state that meets both of the following requirements:
(1)Provides for a minimum of 10 permanent collection sites or one permanent collection site per 25,000 people, whichever is greater.
(2)Provides for a reasonable geographic spread of permanent collection sites and an explanation for the geographic spread.
(e)A description of how collection sites will be authorized and managed, including all of the following:
(1)A description of the process by which local jurisdictions can request to be a collection site pursuant to Section 42984.7.
(2)A description of how the PRO will provide to collection sites at no cost the appropriate containers for covered products, training, signage, safety guidance, and educational materials.
(3)An explanation of the process by which the PRO will provide for the transport of covered products from the collection sites to an authorized sorter, or directly to an authorized repair business, or recycling facility.
(4)A description of how collection sites will be allowed to divert collected covered products to domestic secondhand markets for reuse, and how those diversions will be tracked through final disposition.
(5)A list of all proposed rules, conditions, and requirements for authorized collectors, authorized sorters, and authorized repair businesses, including a template proposed agreement for each of those types of entities, as applicable.
(6)A description of how the PRO will prioritize the use of secondhand markets and nonprofit thrift stores, as described in Section 6363.3 of the Revenue and Taxation Code, when establishing collection sites to meet the minimum requirements in subdivision (d).
(f)A description of the process by which collected covered products will be sorted, transported, processed, reused, and recycled following collection at collection sites, including all of the following:
(1)A description of how covered products will be handled and managed according to the waste management practices pursuant to Section 40051, including both of the following:
(A)(i)How the plan will prioritize the repair and reuse of collected covered products.
(ii)Products designed for use by infants and children under 12 years of age with components that pose a risk of detachment, thus creating choking hazards, or containing components subject to Part 1303 (commencing with Section 1303.1) and Part 1307 (commencing with Section 1307.1) of Title 16 of the Code of Federal Regulations, including, but not limited to, metallic, vinyl, or plastic snaps, zippers, grommets, closures, or appliques may be excluded from repair and reuse by the PRO.
(B)(i)How the plan will include the incentive payments, grants, and market development investments specified in clause (vii) to encourage reuse over recycling and other methods.
(ii)A description of how covered products will be sorted by authorized sorters, including a description of how the flow of covered products to and from authorized collectors, authorized sorters, authorized repair businesses, and recyclers will be tracked.
(iii)A description of how the PRO will maximize the reuse and recycling of all covered products.
(iv)A description of how the PRO will minimize disposal of covered products collected by the PRO.
(v)A description of how the PRO will prioritize the use of sorting, repair, and recycling facilities located closer to the point of collection to minimize transportation-related emissions and increase accountability for the ultimate disposition of the covered products.
(vi)A description of the annual assessment the PRO will conduct and the metrics it will use to determine how collection, sorting, and transportation outcomes aligned with projections.
(vii)A description of how the plan will provide incentive payments, grants, and market development investments to support the infrastructure necessary to effectively implement the plan, including how incentive payments, grants, and market development investments will prioritize infrastructure closer to the point of generation pursuant to clause (v).
(g)A comprehensive statewide education and outreach program designed to educate consumers and promote participation in the program offered by the PRO. At a minimum, the comprehensive statewide education and outreach program shall include all of the following:
(1)A description of the education and communications for strategy being implemented to effectively promote participation in the stewardship program and provide the information necessary for effective participation by consumers, retailers, distributors, wholesalers, local jurisdictions, and others.
(2)A joint internet website in coordination with all other PROs, as applicable, that publicizes the location of collection sites and provides information to consumers on how to drop off covered products at the free and convenient network of collection sites offered by the PRO, including any information reasonably necessary to safely and conveniently access the collection, repair, and recycling services offered by the PRO.
(3)Signage that is prominently displayed and easily visible.
(4)All signage and materials required for collection sites by the PRO, and the method by which collection sites can access replacement materials at no cost to the collection site.
(5)A description of efforts to support participation by all California communities, including a description of efforts to communicate with consumers in languages other than English.
(6)Promotional materials or activities, or both, that explain the purpose of the PRO and the means by which it is being carried out.
(7)A description of how the PRO will encourage users to separate products that are not covered products from covered products, when appropriate, before submitting the covered products to an authorized collection site or mail-back program.
(h)A description of the strategies, goals, and metrics the PRO will use to annually assess and evaluate the efficacy of the comprehensive statewide education and outreach program.
(i)A description of how the PRO will coordinate with other PROs to avoid confusion to the public regarding program activities, including, but not limited to, education and outreach, including establishing point-of-sale messaging, a joint website, and toll-free telephone number for purposes of providing information on the program.
(j)Information to the public on secondhand markets and the benefits of reuse, including repair.
(k)(1)The statewide education and outreach program shall promote the safe and proper management of covered products, including source reduction, environmentally preferable purchasing, and reusing covered products. This includes education and training for authorized collectors to incentivize domestic resale of usable covered products.
(2)The statewide education and outreach program shall not promote the disposal of covered products in a manner inconsistent with the services offered by the plan.
(3)The statewide education and outreach plan shall include information for consumers about how to avoid improper disposal of covered products.
(l)Coordination with, and a description of the efforts and methods used to coordinate activities with, all of the following entities who are responsive to a request from the PRO:
(1)Other PROs.
(2)Existing collection, reuse, and recycling programs.
(3)Community-based organizations, including nonprofit thrift stores as described in Section 6363.3 of the Revenue and Taxation Code, that contact the PRO and that are qualified to run or support collection events.
(m)A contingency plan in the event the plan expires or is revoked. The contingency plan shall guarantee that the contracts, financial data, and other necessary authority and assets to operate the program shall vest in a trustee approved by the department. The trustee shall operate the most recently approved plan, subject to the direction of the department, until such time as a new plan is approved. Upon plan expiration or revocation of the plan, the balance of the PROs operating reserves collected pursuant to paragraph (4) of subdivision (b) shall be transferred to the control of the trustee within five calendar days. All documents, digital records, contracts, and files related to the operation of the plan shall be transferred to the control of the trustee within five calendar days.
(n)Develop a program to support laundries for laundering covered products that includes funding for technology that reduces water consumption and improves microfiber and microplastic filtration.
(o)A description of how counterfeit goods that are illegal for secondhand markets to resell pursuant to Section 350 of the Penal Code will be managed in the most environmentally sound manner that will mitigate the risks counterfeit goods pose to human health and the environment.
(p)Develop strategies to address design challenges for covered products, including, but not limited to, compostability, reduction and removal of harmful chemicals, microfiber and microplastic shedding, and mixed material blends.
(q)A description of how the PRO will minimize the negative environmental impacts of all operations associated with the plan.
(r)A process by which the financial activities of the organization or individual producers that are related to implementation of the plan will be subject to an independent audit consistent with generally accepted accounting principles (GAAP).
42984.11.(a)A producer of a covered product sold, offered for sale, imported, or distributed in or into the state shall achieve the performance standards pursuant to Section 42984.10.
(b)The department shall establish, review, and may adjust performance standards based on information included in the plan and annual reports, other information provided by the PRO, department waste characterization studies, the needs assessment conducted pursuant to Section 42984.6, and economic and any other relevant information.
42984.12.(a)A PRO shall review its plan at least every five years after approval by the department and determine whether revisions to the plan are necessary.
(b)If a PRO determines that revisions to the plan are necessary, the PRO shall submit to the department a revised plan for review and approval employing the procedures set forth in Section 42984.8. The stewardship organization shall submit the revised plan to the department pursuant to this subdivision at least 12 months prior to the review deadline outlined in subdivision (c). The revised plan shall include a cover letter that summarizes the revisions to the plan within 90 days of the review deadline outlined pursuant to subdivision (a).
(c)If a PRO determines that no revisions to the plan are necessary, the PRO shall send a letter to the department 12 months prior to the review deadline outlined in subdivision (a), explaining that the PRO has reviewed the plan and determined that no revisions are needed. The department may disapprove the PROs determination within 30 days of receipt of that determination if the department concludes that the PRO cannot implement the objectives of this chapter without revising the plan. If the department disapproves the PROs determination, the PRO shall submit to the department a revised plan for review and approval employing the procedures set forth in Section 42984.8. The PRO shall submit the revised plan pursuant to this subdivision within 60 days of receipt of the departments disapproval, unless the department determines that additional time is needed.
5.Financial Provisions 42984.10.(a)No later than 90 days before a budget is submitted to the department, the department shall notify each program operator of each agencys respective anticipated actual and reasonable regulatory costs directly related to implementing and enforcing this chapter in relation to the program operators activities as the criteria for those costs are defined in the regulations adopted pursuant to Section 42984.1. This may include the actual and reasonable costs associated with regulatory regulation development pursuant to Section 42984.1 and other startup activities prior to stewardship plan submittal and approval, relative to the role of the program operators program compared to other programs.(b)Program operators shall, on a schedule determined by the department, pay the department fees incurred to reimburse the department for incurred costs as described in subdivision (a). The fees shall not exceed the departments actual and reasonable regulatory costs to implement and enforce this chapter. The fees shall be paid by each producer, either individually, if the producer is complying with the requirements of this chapter individually, or through a stewardship organization.(c)(1)The department shall deposit all moneys received from a program operator pursuant to this section into the Textile Stewardship Recovery Fund, which is hereby established in the State Treasury.(2)Upon appropriation by the Legislature, moneys in the Textile Stewardship Recovery Fund shall be expended by the department to implement and enforce this chapter, as well as to reimburse any outstanding loans made from other funds used to finance regulation, development, and startup costs of the departments activities pursuant to this chapter.(3)The money in the Textile Stewardship Recovery Fund shall not be expended for any other purpose.42984.11.42984.13.(a)Each producer shall, either individually or through a stewardship organization, Each PRO shall pay all administrative and operational costs associated with establishing and implementing the stewardship program in which it participates, including, but not limited to, the cost of collection, transportation, sorting, repairing, recycling, and the safe and proper management of covered products.
(b)A PRO shall establish a method for fully funding the PRO in a manner that distributes the programs costs among participating producers that reflects sales volumes and the eco-modulated fee criteria included in the plan pursuant to Section 42984.10. The funding mechanism shall demonstrate adequate funding for all administrative and operational costs of the program, to be borne by participating producers, and shall distribute participating producers costs in consideration of the cost of managing their specific covered products according to the approved plan.
(c)Within nine months of the effective date of the regulations, the department shall notify each PRO of its estimated regulatory costs as the criteria for those costs are defined in the regulations adopted pursuant to Section 42984.2, which includes full personnel costs, related to implementing and enforcing this chapter. This shall include the actual reasonable costs associated with regulation development pursuant to Section 42968.2 and other startup activities prior to plan submittal and approval.
(d)The PRO shall, on a schedule determined by the department, pay the department fees to cover the departments incurred costs as described in subdivision (c). The fees shall not exceed the departments actual and reasonable regulatory costs to implement and enforce this chapter.
(e)(1)The department shall deposit all moneys received from a PRO pursuant to this section into the Textile Stewardship Recovery Fund, which is hereby established in the State Treasury.
(2)Upon appropriation by the Legislature, moneys in the Textile Stewardship Recovery Fund shall be expended by the department to implement and enforce this chapter, as well as to reimburse any outstanding loans made from other funds used to finance regulation, development, and startup costs of the departments activities pursuant to this chapter.
(3)The money in the Textile Stewardship Recovery Fund shall not be expended for any other purpose.
42984.14.(a)Upon approval of the PROs plan, the PRO shall charge each participant producer annual fees that are eco-modulated as described in the plan. The intent of the eco-modulated fee is to incentivize design choices that facilitate the achievement of source reduction goals as outlined in the plan, including reuse, repair, and recycling through reduced fees, while using malus fees to disincentivize practices and materials incongruent with the plan.
(b)The PRO shall account for the costs to ensure each covered material and covered material category meet the requirements of the chapter, including minimization of environmental and public health impacts along the entire supply chain of covered materials or covered material category.
6.Records, Audits, and Reports 42984.12.(a)A program operator shall keep board minutes, books, and records that clearly reflect the activities and transactions of the program operator.(b)A program operator shall retain, at the program operators expense, an independent public accountant, certified in the United States, to annually audit the accounting books of the program operator.(c)The program operator shall include the audit in its annual report submitted pursuant to Section 42984.13 commencing within 18 months of plan approval by the department. The department shall review the audit for compliance with this chapter and consistency with the program operators stewardship plan. The department shall notify the program operator of any compliance issues or inconsistencies.(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 program operator may obtain copies of the departments audit upon request.(e)The department shall not publicly disclose any confidential proprietary or trade secret information in an audit conducted pursuant to this section.42984.13.A program operator shall annually submit to the department, in the form and manner, and by the date, determined by the department, an annual report, which the department shall make publicly available that includes all of the following information for the preceding calendar year:(a)The program operators costs and revenues.(b)(1)An estimate of the quantity of covered products sold in or into the state by the producers covered by the program operators stewardship plan, as determined by the best available commercial information, potentially including the application of California population data to the national sales information and the discarded covered textile articles collected for repair and recycling through the stewardship program.(2)The estimate described in paragraph (1) shall include an estimate of covered products sold into the state, broken down by fiber type and United States Harmonized Tariff Schedule (HTS) number.(c)A list of the stewardship programs collection sites, by name, location, and type.(d)The total weight of covered products, respectively, that were collected, broken down by fiber type categories.(e)The total weight of covered products, by category, that were collected and deemed reusable by each respective authorized collector and authorized sorter.(f)A list of each authorized sorter, authorized repair business, and textile article recycling facility used by the stewardship program, including both of the following:(1)Name and location.(2)Total weight of covered products handled by each location.(g)An updated list of the names and corporate mailing addresses of producers, as described in subdivision (a) of Section 42984.7 and brands of covered textile articles covered under the stewardship plan.(h)The total weight and number of covered textile articles sold in or into the state attributed to a producer, who is a registered participant of the program operators plan, which are collected in the state and repaired or recycled by the program operator during the preceding calendar year, including a description of the methodology and information used to determine and calculate these values.(i)A complete accounting of the ultimate disposition of all covered products collected by the program operator, including the total weight of covered products that were repaired and recycled.(j)A description of methods used to collect, transport, repair, and recycle covered products by the program operator.(k)A description of outreach efforts and education, including, but not limited to, education and outreach provided to consumers, collection sites, manufacturers, distributors, and retailers by the program operator for the purpose of promoting the collection, repair, reuse, and recycling of covered products. This includes messaging on environmentally preferable purchasing and repairing covered textile articles.(l)Findings from the evaluation of the comprehensive statewide education and outreach program required by paragraph (8) of subdivision (i) of Section 42984.7.(m)A description of consultation with the California Environmental Protection Agencys Environmental Justice Task Force and other relevant stakeholders for collecting covered textile articles for repair and recycling in areas and communities that face unique challenges.(n)A description of actions taken by the program operator to pay all administrative and operational costs associated with establishing and implementing the stewardship program.(o)A report on activities the program operator has undertaken to prioritize the use of sorting, repair, and recycling facilities located closer to the point of generation to minimize transportation emissions and increase accountability for the ultimate disposition of collected covered products.(p)The progress toward attaining the goals included in the program operators stewardship plan.(q)Any modifications or revisions to the stewardship plan.(r)Any other information deemed relevant by the program operator for the department to determine compliance with the approved stewardship plan.(s)Any other information required by regulations promulgated pursuant to Section 42984.1. 42984.14.(a)No later than 120 days after the date the department receives the annual report submitted by a program operator pursuant to Section 42984.13, the department shall notify the program operator if the annual report is compliant or noncompliant.(b)(1)If the department determines that the annual report is noncompliant due to failure to meet the requirements of Section 42984.13, the program operator shall resubmit a revised annual report addressing the departments written reasons for its decision within 30 days of the departments response.(2)The department, within 60 days from the date a program operator resubmits a revised annual report, shall determine whether the annual report is compliant or noncompliant.(3)If the department determines a revised annual report submitted pursuant to paragraph (1) is noncompliant, the program operator may submit only one additional revised annual report, subject to review in accordance with paragraph (2).42984.15.(a)A PRO shall keep board minutes, books, and records that clearly reflect the activities and transactions of the PRO.
(b)A PRO shall include in its plan a process by which the financial activities of the organization or individual producers that are related to implementation of the plan will be subject to an independent audit consistent with generally accepted accounting principles (GAAP), which shall be reviewed by the department.
(c)The department may audit the PRO or individual producer annually.
(d)Failure of a PRO or producer, or their respective agent who holds records, to produce documents or data that is requested by the department, required to be collected or generated to carry out operation of the plan in the form and manner determined by the department, as part of a department audit, or review of a third-party audit, constitutes a violation of this chapter.
42984.16.(a)A PRO shall retain an independent public accountant, certified in the United States, to annually audit the accounting books of the PRO. The department shall review the independent certified public accountant audit for compliance with this chapter and consistency with the PROs plan and annual report, submitted pursuant to this chapter. After the department conducts its own audit, the department shall notify the PRO of any conduct or practice that does not comply with this chapter or of any inconsistencies identified in the audit. The PRO may obtain copies of the departments audit, including proprietary information contained in the departments audit, upon request, and withhold from disclosure confidential proprietary information to the extent allowed under Section 1040 of the Evidence Code and Section 7929.000 of the Government Code. The items submitted to the department as part of the independent audit shall include:
(1)Financial statements audited in accordance with generally accepted accounting principles (GAAP).
(2)An audit of the PROs compliance with this chapter.
(3)An audit of the PROs adherence to, execution of, and consistency with its plan.
(b)The PRO shall include the independent audit in its annual report submitted to the department pursuant to Section 42984.17 commencing within 18 months of plan approval by the department. The department shall review the audit for compliance with this chapter and consistency with the PROs plan.
42984.17.A PRO shall annually submit to the department, in the form and manner and by the date determined by the department, an annual report and make that report publicly available on the PROs internet website. The report shall include at minimum, all of the following information for the preceding calendar year unless otherwise specified:
(a)The PROs costs, according to the cost categories established in the plan, and revenues.
(b)A summary of any anticipated changes to allocations in cost categories for the next calendar year.
(c)Any changes to the distribution of a participating producers costs.
(d)The amounts of the eco-modulated fees based on the criteria established pursuant to subdivision (b) of Section 42984.14 and the PROs evaluation of the effectiveness of the eco-modulated fees.
(e)The producers participating in the plan and an updated list of the names and contact information, including email address, telephone number, and physical and mailing addresses of producers and brands of covered products covered under the plan.
(f)(1)The amount of covered products sold in or into the state by the producers covered by the PROs plan,
(2)The amount described in paragraph (1) shall be broken down by fiber type and Harmonized Tariff Schedule of the United States (HTS) number.
(g)A list of the PROs collection sites, by name, location, and type.
(h)The total weight of covered products, respectively, that were collected, broken down by fiber type categories.
(i)The total weight of covered products, by category, that were collected and deemed reusable by each respective authorized collector and authorized sorter.
(j)A list of each authorized sorter, authorized repair business, and textile article recycling facility used by the PRO, including both of the following:
(1)Name and location.
(2)Total weight of covered products handled by each location.
(k)An updated list of the names and corporate mailing addresses of producers, as described in subdivision (a) of Section 42984.10 and brands of covered products and brands of covered products covered under the plan.
(l)The total weight and number of covered products sold in or into the state attributed to a producer, who is a registered participant of the PROs plan, which are collected in the state and reused or recycled by the PRO, including a description of the methodology and information used to determine and calculate these values.
(m)A complete accounting of the ultimate disposition of all covered products collected by the PRO, including the total weight of covered products that were repaired and recycled.
(n)Metrics and a description of the progress toward attaining the performance standards included in the plan.
(o)A description of methods used to collect, transport, repair, and recycle covered products by the PRO, including a description of all of the following:
(1)How the PRO handled and managed covered products according to the waste hierarchy as defined in Section 40051.
(2)How the PRO maximized reuse and recycling of all covered products.
(3)How the PRO minimized disposal of all covered products collected by the PRO.
(4)Results of the PROs assessment of the efficacy of the collection, sorting, and transportation process.
(p)A description of how the PRO provided incentive payments, grants, and market development investments to support the infrastructure necessary to effectively implement the plan, including how incentive payments, grants, and market development investments prioritized infrastructure closer to the point of generation.
(q)A description of outreach efforts and education, including, but not limited to, the PROs evaluation of the efficacy of the comprehensive statewide education and outreach program pursuant to subdivisions (i) and (k) of Section 42984.10.
(r)A description of how the PRO coordinated with other PROs and entities pursuant to subdivision (l) of Section 42984.10.
(s)A report on activities the PRO has undertaken to prioritize the use of sorting and recycling facilities located closer to the point of generation to minimize transportation emissions and increase accountability for the ultimate disposition of collected covered products.
(t)Any other information deemed relevant by the PRO for the department to determine compliance with the approved plan.
(u)Any other information required by regulations adopted pursuant to Section 42984.2.
42984.18.(a)No later than 120 days after the date the department receives the annual report submitted by a PRO pursuant to Section 42984.17, the department shall notify the PRO if the annual report is compliant or noncompliant.
(b)If the department determines that the annual report is noncompliant due to failure to meet the requirements of this chapter, the department may require the resubmittal of the annual report or take enforcement action.
7.Department Responsibilities42984.19.Except where stated elsewhere, the department shall establish, review, and may adjust performance standards and the dates by which they must be achieved based on information included in the plan and annual reports, other information provided by the PRO, department waste characterization studies, needs assessment, and economic and any other relevant information. Performance standards published by the department pursuant to this subdivision shall not be subject to the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code.
7.8.Enforcement and Civil Penalties42984.15.42984.20.(a)Within 24 12 months of the effective date of regulations pursuant to Section 42984.1, 42984.2, and on or before July 1 of each year thereafter, the department shall post on its internet website a list of producers that are in compliance with this chapter. The department shall list, as appropriate, the reported brands of covered products for each producer.
(b)A producer that is not listed on the departments internet website pursuant to subdivision (a) that demonstrates compliance with this chapter before the next list is posted by the department may either be added to the internet website or be provided a certification letter from the department stating that the producer of a covered product is in compliance with this chapter.
(c)(1)A retailer, importer, or distributor shall monitor the departments internet website to determine if a producer, brand, or covered product is in compliance with this chapter for that brand producer of covered product. products.
(2)Except as provided in subdivision (d), on and after the date a stewardship plan is approved by the department pursuant to Section 42984.5, 42984.8, a retailer, importer, or distributor shall not sell, distribute, offer for sale, or import a covered product in or into the state for sale in the state unless the producer of the covered product is listed as in compliance pursuant to this section for that brand and covered product.
(d)(1)Notwithstanding paragraph (2) of subdivision (c), a retailer, importer, or distributor may sell, offer for sale, import, or distribute a covered product if, on the date the retailer or distributor sells or offers for sale the covered product in or into the state, the producer, brand, or covered product was listed as compliant on the departments internet website.
(2)Notwithstanding paragraph (2) of subdivision (c), a retailer or distributor may, for any existing inventory in stock before the initial list was posted by the department pursuant to subdivision (a), sell or distribute that inventory for sale in or into the state.
(e)(1)If the department determines a producer is not in compliance with this chapter, the department shall remove the producer, along with its brands and covered products, from the list of compliant producers posted on the departments internet website pursuant to subdivision (a).
(2)The department shall list on its internet website a producer, along with its brands and covered products, if the department subsequently determines that the producer is in compliance with this chapter.
42984.16.(a)The department may impose an administrative civil penalty on a producer, program operator, stewardship organization, manufacturer, distributor, retailer, or importer that is in violation of this chapter. The amount of the administrative civil penalty shall not exceed ten thousand dollars ($10,000) per day, but, if the violation is intentional, knowing, or reckless, the department may impose an administrative civil penalty of not more than fifty thousand dollars ($50,000) per day. The department shall establish, through regulations adopted by the department pursuant to Section 42984.1, a process that shall include an informal hearing process by which the penalties will be assessed.42984.21.(a)An administrative civil penalty up to the following amounts may be administratively imposed by the department on any person who is in violation of any provision of this chapter:
(1)Ten thousand dollars ($10,000) per day.
(2)Fifty thousand dollars ($50,000) per day if the violation is intentional or knowing.
(b)In assessing or reviewing the amount of a civil penalty imposed pursuant to subdivision (a) for a violation of this chapter, the department or the court shall consider all of the following:
(1)The nature and extent of the violation.
(2)The number and severity of the violation or violations.
(3)The economic effect of the penalty on the violator.
(4)Whether the violator took good faith measures to comply with this chapter and the period of time over which these measures were taken.
(5)The willfulness of the violators misconduct.
(6)The deterrent effect that the imposition of the penalty would have on both the violator and the regulated community.
(7)Any other factor that justice may require.
(c)The department shall establish, through regulations adopted pursuant to Section 42984.2, a process that shall include an informal hearing process by which the penalties will be assessed.
(b)(d)The department shall deposit all penalties collected pursuant to this section into the Textile Stewardship Recovery Penalty Account, which is hereby created in the Textile Stewardship Recovery Fund. Upon appropriation by the Legislature, moneys in the Textile Stewardship Recovery Penalty Account shall be available for expenditure by the department on activities related to the collection and recycling of covered products, grants for related purposes, and the administration and enforcement of this chapter.
(c)This chapter does not limit or restrict the departments enforcement authority pursuant to Chapter 6.5 (commencing with Section 25100) of Division 20 of the Health and Safety Code and its implementing regulations, if any.(d)(e)The Administrative Adjudication Bill of Rights, as set forth in Chapter 4.5 (commencing with Section 11425.10) of Part 1 of Division 3 of Title 2 of the Government Code, applies to hearings conducted under this chapter and mandates minimum due process.
42984.17.(a)Upon a written finding that a producer, program operator, stewardship organization, manufacturer, distributor, retailer, or importer site has not met a material requirement of this chapter, in addition to any other penalties authorized under this chapter, the department may, after affording the entity a reasonable opportunity to respond to, or rebut, the finding, take any of the following actions to ensure compliance with the requirements of this chapter:(1)Revoke the program operators stewardship plan approval or require the program operator to resubmit the plan.(2)Remove the producer, along with its brands and covered textile articles from the departments list of compliant producers, as specified in Section 42984.15.(3)Impose additional compliance reporting requirements.(4)Post the noncompliant entity onto a list of noncompliant entities.(b)If a stewardship plan is revoked pursuant to paragraph (1) of subdivision (a) or terminated by the program operator that submitted the plan, a producer no longer subject to that plan may, without being subject to administrative civil penalties pursuant to Section 42984.16, sell or offer for sale covered products in or into the state for a period of up to one year after the stewardship plan was terminated or revoked if the producer continues to operate under the most recent approved stewardship plan to which the producer was subject.42984.22.(a)Upon a written finding that a producer, PRO, manufacturer, distributor, retailer, or importer site has not met a material requirement of this chapter, in addition to any other penalties authorized under this chapter, the department may take one or both of the following actions to ensure compliance with the requirements of this chapter, after affording the entity a reasonable opportunity to respond to, or rebut, the finding, take any of the following actions to ensure compliance with the requirements of this chapter:
(1)Revoke the PROs plan approval or require the PRO to resubmit the plan.
(2)Require additional reporting relating to compliance with the material requirement of this chapter that was not met.
42984.18.42984.23.(a)A producer, program operator, stewardship organization, PRO, manufacturer, distributor, retailer, or importer shall do both of the following:
(1)Upon request, provide the department with reasonable and timely access, as determined by the department, to its facilities and operations, as necessary to determine compliance with this chapter.
(2)Upon request, within 14 days, 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 five years. All reports and records provided to the department pursuant to this chapter shall be provided under penalty of perjury.
(c)(1)The department may impose administrative civil penalties pursuant to Section 42984.16 42984.21 on a producer, program operator, stewardship organization, PRO, manufacturer, distributor, retailer, or importer that fails to provide the department with the access required pursuant to this section.
(2)The department may post a notice on the departments internet website that is maintained pursuant to Section 42984.15 42984.20 that a producer that fails to provide the department with access pursuant to this section, along with the producers brands and covered products, is no longer in compliance with this chapter.
42984.19.42984.24.After the time for judicial review under Section 11523 of the Government Code has expired, the department may apply to the small claims court or superior court, depending on the jurisdictional amount and any other remedy sought, in the county where the penalties, restitution, or other remedy was imposed by the department, for a judgment to collect any unpaid civil penalties or restitution or to enforce any other remedy provided by this chapter. The application, which shall include a certified copy of the final agency order or decision, shall constitute a sufficient showing to warrant the issuance of the judgment. The court clerk shall enter the judgment immediately in conformity with the application. The judgment so entered shall have the same force and effect as and shall be subject to all the provisions of law relating to a judgment in a civil action and may be enforced in the same manner as any other judgment of the court. The court shall make enforcement of the judgment a priority.
8.Antitrust Immunity42984.20.42984.25.(a)Except as provided in subdivision (c), an action specified in subdivision (b) that is taken by a program operator PRO 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) applies to all of the following actions taken by a program operator: PRO:
(1)The creation, implementation, or management of a stewardship plan approved or conditionally approved by the department pursuant to Article 3 (commencing with Section 42984.4) 42984.6) and the determination of the types or quantities of covered products repaired, reused, recycled, or otherwise managed pursuant to a stewardship plan.
(2)The determination of the cost and structure of an approved stewardship plan.
(3)The establishment, administration, collection, or disbursement of a charge associated with funding the implementation of this chapter.
(c)Subdivision (a) does not apply to an agreement that does any of the following:
(1)Fixes a price of or for covered products, except for an agreement related to costs or charges associated with participation in a stewardship plan approved or conditionally approved by the department and otherwise in accordance with this chapter.
(2)Fixes the output or production of covered products.
(3)Restricts the geographic area in which, or customers to whom, covered products will be sold.
9.County Authority42984.21.42984.26.This chapter does not grant a city, county, city and county, special district, or joint powers authority any new authority over solid waste hauling operations pursuant to a franchise agreement and does not affect, limit, or abrogate in any manner any franchise granted to a solid waste enterprise for the handling of solid waste.
SEC. 2.The Legislature finds and declares that Section 1 of this act, which adds Section 42984.5 Sections 42984.8 and 42984.16 to the Public Resources Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
It is in the best interest of the public to provide limited protection of certain financial and sales data of program participants, in order to protect the interests of businesses and the privacy of their data regarding their customers.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
For purposes of this chapter, the following definitions apply:
(a) Advisory committee means the producer responsibility advisory body created pursuant to subdivision (c) of Section 42984.1.
(a)(b) (1) Apparel means clothing and accessory items intended for regular wear or formal occasions, including, but not limited to, undergarments, shirts, pants, skirts, dresses, overalls, bodysuits, costumes, vests, dancewear, suits, saris, scarves, tops, leggings, school uniforms, leisurewear, athletic wear, sports uniforms, everyday swimwear, formal wear, onesies, bibs, diapers, footwear, handbags, backpacks, and everyday uniforms for workwear.
(2) Apparel does not include personal protective equipment or clothing items for exclusive use by the United States military.
(b)(c) Authorized collector means a person or entity that has entered into an agreement with a program operator to collect covered products.
(c)( d) Authorized sorter means a person or entity that has entered into an agreement with a program operator to sort covered products collected by authorized collectors.
(d)( e) Authorized repair business means a person or entity that has entered into an agreement with a program operator to repair covered products for resale after collection by an authorized collector or after sorting by an authorized sorter.
(e)( f) Brand means a trademark, including both a registered trademark and an unregistered trademark, a logo, a name, a symbol, a word, an identifier, or a traceable mark that identifies a covered textile article and identifies the owner or licensee of the brand.
(f)( g) Collection site means a permanent or temporary location operated by an authorized collector at which covered products are collected and prepared for transport in accordance with the requirements of this chapter.
(g)( h) Consumer means an owner of a covered product, including a person, business, corporation, limited partnership, nonprofit organization, or governmental entity, and includes the ultimate purchaser, owner, or lessee of a covered product, who is not, as to that covered product, the distributor, importer, producer, recycler, retailer, or stewardship organization.
(h)( i) (1) Covered product means any apparel or textile article that is unsuitable for reuse by a consumer in its current state or condition. any postconsumer apparel or postconsumer textile article that is unwanted by a consumer.
(2) Covered product does not include either of the following:
(A) A product covered under the Used Mattress Recovery and Recycling Act (Chapter 21 (commencing with Section 42985)).
(B) A product covered under the Electronic Waste Recycling Act of 2003 (Chapter 8.5 (commencing with Section 42460)).
(i)( j) Department means the Department of Resources Recycling and Recovery or a successor agency.
(j)( k) Distributor means a company that has a contractual relationship with one or more producers to market and sell covered textile articles to a retailer.
(k)( l ) Importer means either of the following:
(1) A person 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 covered textile article that is sold, distributed for sale, or offered for sale in or into the state that was manufactured or assembled by a company outside of the United States.
(2) A person importing into the state for sale, distributing for sale, or offering for sale in the state a covered textile article that was manufactured or assembled by a company physically located outside of the state.
(l)( m) Local jurisdiction means a city, county, city and county, or a regional agency formed pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code or Article 3 (commencing with Section 40970) of Chapter 1 of Part 2 of this code, or a special district that provides solid waste collection services.
(m)( n) Mail-back program means a method of collecting covered products using prepaid, preaddressed mailing envelopes that are reusable, recyclable, or compostable.
(n)( o) Person has the same meaning as set forth in Section 40170.
(o)( p) (1) Producer means a person who manufactures a covered product and who owns or is the licensee of the brand or trademark under which that covered product is sold, offered for sale, or distributed for sale in or into the state.
(2) If there is no person in the state who is the producer for purposes of paragraph (1), the producer of the covered product is the owner of a brand or trademark or, if the owner is not in the state, the exclusive licensee of a brand or trademark under which the covered product is sold, imported for sale, offered for sale, or distributed for sale in or into the state. For purposes of this subdivision, an exclusive licensee is a person holding the exclusive right to use a trademark or brand in the state in connection with the manufacture, sale, or distribution for sale in or into the state of the covered product.
(3) If there is no person in the state who is the producer for purposes of paragraph (1) or (2), the producer of the covered product is the person who sells, offers for sale, or is the importer or distributor of the covered textile article in or into the state for sale in or into the state.
(4) For purposes of this chapter, the sale of a covered textile article shall be deemed to occur in the state if the covered textile article is delivered to the consumer in the state.
(5) Producer does not include a seller of secondhand apparel or secondhand textile articles.
(p)( q) Program operator means a producer, or a stewardship organization on behalf of a group of producers, which is responsible for implementing a stewardship program in accordance with the requirements of this chapter.
(q)( r) Recycling has the same meaning as set forth in subdivision (aa) of Section 42041. Section 40180.
(r)( s) Recycling efficiency rate means the ratio of the weight of covered products recycled by a program operator to the weight of those covered products collected by the program operator.
(s)( t) Repair means any alteration or improvement of damaged covered materials deemed worth the cost of repair by criteria established by the stewardship plan, including, but not limited to, any of the following:
(1) Washing at a commercial laundry. or laundering.
(2) Upcycling, redesign, and repurposing.
(3) Mending rips, holes, seams, and hems.
(4) Removing and repairing surface damages, such as pilling, stain removal, or abrasion.
(5) Securing and reattaching buttons and other fastenings.
(6) Dyeing, redyeing, overdyeing, or printing of images on covered products.
(t)( u) Retailer means a person who sells or offers for sale a covered product in or into the state to a person through any means, including, but not limited to, sales outlets, catalogs, the telephone, the internet, or any electronic means.
(v) Reuse means putting a collected covered product back into commerce for its original intended use and when the collected covered product retains its original performance characteristics and can be used for its original purpose with or without repair.
(u)( w) Secondhand apparel means any apparel item that has been previously owned by a consumer.
(v)( x) Secondhand textile article means a usable textile article that has been previously owned by a consumer.
(w)Secondhand textile article means a usable textile article that has been previously owned by a consumer.(x)( y) Secondhand markets means a retailer who sells secondhand apparel or secondhand textile articles, including, but not limited to, thrifts, online resale platforms, and flea markets.
(y)( z) Stewardship organization means an organization exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986 (26 U.S.C. Sec. 501(c)(3)) that is established or designated by a group of producers in accordance with this chapter to develop and implement a stewardship program.
(z)(aa) Stewardship plan or plan means a plan developed by a program operator pursuant to this chapter for the collection, transportation, repair, recycling, and the safe and proper management of covered products.
(aa)(a b) Stewardship program means a program established by a program operator pursuant to this chapter for the free at drop off, convenient, and safe collection, transportation, repair, recycling, and otherwise proper management of covered products.
(ab)Textile article means any item customarily used in households and business, including, but not limited to, towels, linens, sheets, window coverings, mats, tablecloths, napkins, and fabric on the bolt, that are made from a natural, artificial, or synthetic fiber, yarn, or fabric. Textile article does not include any of the following:(1)A toy, as defined in Section 108550 of the Health and Safety Code.(2)Upholstered furniture, as defined in Section 19006 of the Business and Professions Code.(3)Either of the following items regulated under the Safer Consumer Products Program (Chapter 55 (commencing with Section 69501) of Division 4.5 of Title 22 of the California Code of Regulations):(A)Carpets and Rugs.(B)Treatments containing polyfluoroalkyl for use on converted textile articles or leathers.(4)Disposable or soluble hygiene, cleaning, or laundry care products, including, but not limited to, toilet paper, paper towels or tissues, wet or dry wipes, nonwoven disposable wipes, or disposable absorbent hygiene products.(ac)Textile article recycler means a person or entity that recovers fiber, yarn, or fabric and reprocesses that recovered fiber, yarn, or fabric into new, usable products.(ac) Textile article means any item customarily used in households or businesses that are made entirely or primarily from a natural, artificial, or synthetic fiber, yarn, or fabric. For purposes of this chapter, textile article includes blankets, curtains and fabric window coverings, knitted and woven accessories, towels, tapestries, bedding, tablecloths, napkins, linens, pillows, and fabric sold by the bolt at retail.
42984.1.(a) The department, acting in accordance with Article 1 (commencing with Section 11340) to Article 8 (commencing with Section 11350), inclusive, of the Administrative Procedure Act, as set forth in Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, shall adopt regulations to implement this chapter with an effective date of no earlier than December 31, 2025.
(b) Beginning January 1, 2032, the department may reassess the regulations developed pursuant to subdivision (a). The reassessment may include adjusting the minimum required collection sites, establishing a minimum recycling efficiency rate for covered products collected and recycled by program operators, or establishing other criteria for the program.
(c) (1) No later than 90 days after the effective date of regulations adopted pursuant to this section, the department shall appoint an advisory committee for the purposes of consulting with producers and stewardship organizations with approved plans. Membership in the advisory committee may shall include, but is not limited to, representatives from local governments, recyclers, retailers, nonprofit thrift stores, authorized collectors, authorized sorters, authorized repair businesses, nongovernmental organizations, environmental organizations, community-based justice and public health organizations, the second-hand industry, and the solid waste industry.
(2) Participation on the advisory committee shall be voluntary.
(3) The advisory committee is not a state body as that term is used in Section 11121 of the Government Code, but shall provide advanced public notice about meetings, allow public participation in all meetings, and vote on written recommendations at public meetings.
2. Producers 42984.2.(a) In order to comply with the requirements of this chapter, a producer may establish and implement a stewardship program independently, or as part of a group of producers through membership in a stewardship organization exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986 (21 U.S.C. 501(c)(3)). Producers may establish or designate one or more stewardship organizations to comply with the requirements of this chapter.
(1) A producer shall not sell, distribute for sale, offer for sale, or import for sale a covered product any apparel or textile article in or into this state unless the producer is in compliance with this chapter and any regulations in effect and adopted pursuant to Section 42984.1.
(2) Every producer shall, no later than 180 days after the effective date of this chapter, notify all persons through which it is selling, distributing, importing, or offering for sale a covered product in or into the state for sale in or into the state whether it will comply with this chapter individually or through a stewardship organization.
(3) Each producer covered under a stewardship organization shall register with that stewardship organization in accordance with the procedures and requirements established by that stewardship organization and shall comply with those procedures and requirements.
(b) A producer is not in compliance with this chapter and is subject to penalties pursuant to Article 7 (commencing with Section 42984.15) if, commencing two years from the adoption of regulations pursuant to Section 42984.1, a covered product sold or offered for sale by the producer is not subject to an approved stewardship plan that has been approved by the department pursuant to Section 42984.5.
42984.3.(a) No later than 180 days after the effective date of this chapter, individual producers shall provide to the department, in a form and manner established by the department, a list of covered products and brands of covered products that the producer sells, distributes for sale, imports for sale, or offers for sale in or into the state.
(b) A producer shall update the list described in subdivision (a) and provide the updated list to the department on or before January 15 of each year or upon request of the department.
3. Program Operators 42984.4.(a) (1) A program operator shall establish a method for fully funding the stewardship program in a manner that equitably distributes the stewardship programs costs among participating producers that reflects production and sales volumes. The funding mechanism shall incentivize green design by modulating distribution of cost of participating producers to consider the cost of repairing, recycling, or otherwise managing their specific covered products.
(2) A producer that elects to meet the requirements of this chapter individually, without joining a stewardship organization, shall establish a method for fully funding the stewardship program.
(b) A program operator shall include as a collection site under its stewardship program any local jurisdiction that offers in writing to participate in the stewardship program and agrees to comply with any program operator requirements that are consistent with that program operators approved stewardship plan, even if the minimum thresholds described in subdivision (e) of Section 42984.7, as applicable, have been achieved.
(1) A program operator shall include the local jurisdiction as a collection site in the stewardship program within 90 days of receiving the written offer to participate, confirming that the offering entity will comply with any program operator requirements that are consistent with that program operators approved stewardship plan, even if the minimum thresholds described in subdivision (e) of Section 42984.7, as applicable, have been achieved.
(2) The program operator shall not be required to respond to offers pursuant to this paragraph until the program operators stewardship plan has been approved by the department.
(c) A program operator may suspend or terminate a collection site that does not comply with all applicable state, federal, or municipal laws and regulations or adhere to the rules and conditions imposed by the program operator pursuant to paragraph (5) of subdivision (g) of Section 42984.7.
(d) A collection site shall be operated to ensure that covered products are collected safely and handled in accordance with all applicable state, federal, and municipal laws and regulations and the rules and conditions of the stewardship plan. Authorized collectors may divert usable apparel and textile articles without damage for sale in domestic and authorized sorters may divert reusable apparel and textile articles for sale in secondhand markets.
(e) A program operator shall require all contractors to pay the state minimum wage.
4. Stewardship Plan for Covered Products 42984.5.(a) Within 12 months of the effective date of the regulations adopted by the department pursuant to Section 42984.1, a program operator shall develop and submit to the department a complete stewardship plan, in accordance with the requirements of this chapter, for the collection, transportation, repair, sorting, recycling, and the safe and proper management of covered products in the state. No program operator serving more than one producer may limit its stewardship plan for covered products to the covered products of the producers participating in that stewardship program.
(b) The department shall review the stewardship plan for compliance with this chapter and shall approve, disapprove, or conditionally approve the plan within 120 days of receipt of the plan. The department may consult with or submit a stewardship plan for review to the Department of Toxic Substances Control if the department determines it is necessary for making a determination of approval of a stewardship plan. If the department consults with the Department of Toxic Substances Control, then the department shall approve, disapprove, or conditionally approve the plan within 180 days of receipt of the plan.
(c) If the department disapproves a stewardship plan submitted by a program operator, the department shall explain how the stewardship plan does not comply with this chapter and provide written notice to the program operator within 30 days of disapproval. The program operator may resubmit to the department a revised stewardship plan within 60 days of the date the written notice was issued, and the department shall review the revised stewardship plan within 90 days of resubmittal. If a revised stewardship plan is disapproved by the department, a producer operating under the stewardship plan shall not be in compliance with this chapter until the department approves a stewardship plan submitted by a program operator that covers the producers products.
(d) Within 24 months of the effective date of the regulations adopted by the department pursuant to Section 42984.1, a program operator shall have a complete stewardship plan approved by the department and each producer shall be subject to an approved stewardship plan in order to be in compliance with this chapter.
(e) The approved plan shall be a public record, except that financial or sales data reported to the department by the program operator is not a public record for purposes of the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and shall not be open to public inspection. The department may release financial, production, financial or sales data in summary form only so the information cannot be attributable to a specific producer or distributor or to any other entity.
42984.6.(a) Within 12 months of the approval of the stewardship plan by the department pursuant to Section 42984.5, a program operator shall fully implement its stewardship program.
(b) An individual producer or a program operator may petition the department to investigate a noncompliant producer, and the department shall respond to the petition in a timely manner.
42984.7.A stewardship plan for covered products shall include all of the following:
(a) The names of producers and brands of covered products covered under the stewardship plan.
(b) A description of the consultative process by which the program operator consulted with the advisory committee created pursuant to subdivision (c) of Section 42984.1 to receive advice on the development and implementation of the stewardship plan, including all correspondence between the program operator and the advisory committee and a detailed explanation of how and why the program operator decided to adopt or not adopt each recommendation by the advisory committee.
(c) (1) A description of the method to establish and administer a means for fully funding the stewardship program in a manner that equitably distributes the stewardship programs costs among the producers that are part of the stewardship organization that reflects production and sales volumes and the cost of repairing, recycling, or otherwise managing covered products pursuant to subdivision (a) of Section 42984.4. For producers that elect to meet the requirements of this chapter individually, without joining a stewardship organization, a description of the proposed method to establish and administer a means for fully funding the stewardship program.
(2) (A) The stewardship plan shall include a stewardship program budget, for the next five calendar years, which includes a funding level and anticipated revenues and costs sufficient to cover the budgeted costs, including, but not limited to, administrative costs, operational costs, and capital costs, to operate the stewardship program in a prudent and responsible manner. Administrative costs shall include the departments anticipated actual, reasonable, and direct regulatory costs to implement and enforce this chapter as the criteria for all the costs are defined in the regulations adopted pursuant to Section 42984.1. For purposes of this paragraph, stewardship program implementation begins once the department approves a program operators stewardship plan, except the departments costs shall include actual, reasonable, and direct regulatory development costs and other startup regulatory costs incurred prior to stewardship plan submittal and approval.
(B) (i) The stewardship program shall reevaluate the budget on an annual basis and adjust allocations for the five-year budget plan as needed.
(ii) When reevaluating the budget as required by paragraph (1), the program operator shall also reconsider the distribution of costs pursuant to subdivision (a) of Section 42984.4.
(d) A description of methodologies for annually measuring, and meeting or exceeding the recycling efficiency rate or other criteria established by the department pursuant to subdivision (b) of Section 42984.1, as applicable. If a minimum recycling rate has not been established by the department, a program operator shall include a target recycling efficiency rate for covered products recycled by the program operator.
(e) A description of how the program operator will provide for a free and convenient collection system for covered products in each county of the state that meets both of the following requirements:
(1) A minimum of 10 collection sites per county or one collection site per 25,000 people, whichever is greater, except as identified in this paragraph.
(A) A county with a population of 18,000 and under, as reported annually by the Department of Finance, shall have a minimum of three collection sites.
(B) A county with a population of between 18,001 and 50,000, as reported annually by the Department of Finance, shall have a minimum of four collection sites.
(C) A county with a population between 50,001 and 100,000, as reported annually by the Department of Finance, shall have a minimum of eight collection sites.
(2) The collection sites in each county shall be spread throughout the county to facilitate widespread access and convenience.
(f) A description of how a program operator and its authorized collection sites will allow a consumer to drop off covered products at a collection site at no charge.
(g) A description of how collection sites will be authorized and managed, including all of the following:
(1) A description of the process by which local jurisdictions can request to be a collection site pursuant to Section 42984.4.
(2) A description of how the program operator will provide to collection sites at no cost the appropriate containers for covered products, training, signage, safety guidance, and educational materials.
(3) An explanation of the process by which the program operator will provide for the collection and transport of covered products from the collection sites to an authorized sorter, or directly to an authorized repair business, or recycling facility.
(4) A description of how the program operator will maintain all collection and transport records and make them available to the department upon request. collection sites will be allowed to divert collected covered products to secondhand markets for reuse, and how those diversions will be tracked.
(5) A list of all proposed rules, conditions, and requirements for authorized collectors, authorized sorters, and authorized repair businesses, including a template proposed agreement for each of those types of entities, as applicable.
(6) A description of how the program operator will prioritize the use of nonprofit thrift stores, as defined in Section 6363.3 of the Revenue and Taxation Code, when establishing collection sites to meet the minimum requirements in subdivision (e).
(h) A description of the process by which collected covered products will be sorted, processed, transported, processed, repaired, reused, and recycled following collection at collection sites, including all of the following:
(1) A description of how covered products will be handled and managed according to the waste hierarchy as defined in Section 40051. management practices pursuant to Section 40051, including both of the following:
(A) How the stewardship plan will prioritize source reduction through the repair and reuse of collected covered products.
(B) How the stewardship plan will include the incentive payments, grants, and market development investments specified in paragraph (7) to encourage reuse and repair over recycling and composting.
(2) A description of how covered products will be sorted by authorized sorters, including a description of how the flow of covered products to and from authorized collectors, authorized sorters, authorized repair businesses, and recyclers will be tracked.
(3) A description of how the program operator will maximize the repair repair, reuse, and recycling of all covered products.
(4) A description of how the program operator will minimize disposal of covered products collected by the program operator.
(5) A description of how the program operator will prioritize the use of sorting, repair, and recycling facilities located closer to the point of collection to minimize transportation-related emissions and increase accountability for the ultimate disposition of the covered products.
(6) A description of how the program operator will annually assess the efficacy of the collection, sorting, and transportation process.
(7) A description of how the stewardship plan will provide incentive payments, grants, and market development investments to support the infrastructure necessary to effectively implement the plan, including how incentive payments, grants, and market development investments will prioritize infrastructure closer to the point of generation to minimize transportation emissions and increase accountability for the ultimate disposition of collected covered products.
(8) A description of how the program operator will prioritize the use of nonprofit entities in the sorting and repair of collected covered products.
(i) A comprehensive statewide education and outreach program designed to educate consumers and promote participation in the collection, repair, and recycling program offered by the program operator. At a minimum, the comprehensive statewide education and outreach program shall include all of the following:
(1) A description of the education and communications strategy being implemented to effectively promote participation in the stewardship program and provide the information necessary for effective participation by consumers, retailers, local jurisdictions, and others.
(2) An internet website that publicizes the location of collection sites and provides information to consumers on how to drop off covered products at the free and convenient network of collection sites offered by the stewardship program, including any information reasonably necessary to safely and conveniently access the collection, repair, and recycling services offered by the program operator.
(3) All signage and materials required for collection sites by the program operator, and the method by which collection sites can access replacement materials at no cost to the collection site.
(4) A description of efforts to support participation by all California communities, including a description of efforts to communicate with consumers in languages other than English.
(5) A description of strategies, goals, and metrics used to determine the success of the statewide education and outreach program.
(A) The statewide education and outreach program shall promote the safe and proper management of covered products, including source reduction, environmentally preferable purchasing, and repairing covered products. This includes education and training for authorized collectors to incentivize domestic resale of usable textile articles.
(B) The statewide education and outreach program shall not promote the disposal of covered products in a manner inconsistent with the services offered by the stewardship plan.
(C) The statewide education and outreach plan shall include information for consumers about how to avoid improper disposal of covered products.
(6) (A) A description of how the program operators will annually assess and evaluate the efficacy of the comprehensive statewide education and outreach program and periodically adjust strategies to maximize participation in the stewardship program.
(B) Any program operator serving more than one producer shall coordinate with other program operators on the education and outreach programs that they implement pursuant to this subdivision.
(7) Information to the public on secondhand markets and the source reduction benefits of reuse and repair.
(j) Coordination with, and a description of the efforts and methods used to coordinate activities with, all of the following entities who are responsive to a request from the program operator:
(1) Other program operators.
(2) Existing textile article collection, repair, and recycling programs.
(3) Community-based organizations organizations, including nonprofit thrift stores as defined in Section 6363.3 of the Revenue and Taxation Code, that contact the program operator and that are qualified to run or support collection events.
(k)Consultation with the California Environmental Protection Agencys Environmental Justice Task Force regarding methods to supplement those of the program operator to collect covered products for repair or recycling in areas and communities that face unique challenges associated with proper waste management, such as poverty, language barriers, and illegal disposal.(l)( k) A contingency plan in the event the stewardship plan expires, is disapproved, or is revoked. The contingency plan shall describe how the stewardship plan objectives can be carried out in the absence of a plan, either by the program operator or through an entity such as an escrow company.
(m)( l ) Develop a program in coordination with other program operators to support commercial laundries for laundering-covered products that includes funding for microfiber filtration devices. technology that reduces water consumption and improves microfiber filtration.
(n)Develop strategies to address(m) A description of how counterfeit goods that are illegal for secondhand markets to resell pursuant to Section 350 of the Penal Code. Code will be recycled.
(o)( n) Develop strategies to address green design challenges for covered products, such as, but not limited to, compostability, reduction and removal of harmful chemicals, microfiber shedding, and mixed material blends.
(o) A description of how the program operator will minimize the negative environmental impacts of all operations associated with the plan.
42984.8.(a) In preparing a stewardship plan pursuant to Section 42984.7, and any updates to the plan pursuant to Section 42984.9, a program operator shall engage in a consultative process with the advisory committee created by the department pursuant to subdivision (d) of Section 42489.1. A program operator shall provide sufficient time and shall consider all written recommendations from the advisory committee during the plan development process.
(b) A program operator shall consider the advisory committees recommendations. If the producer or stewardship organization decides not to incorporate the advisory committees written recommendations into the plan, the program operator shall provide a brief written explanation to the department and the advisory committee that explains the basis for the decision and also indicates whether the program operator plans to incorporate the recommendations into a subsequent stewardship plan, subsequent amendments to the plan, or a subsequent annual report.
42984.9.(a) A program operator shall review its stewardship plan at least every five years after approval by the department and determine whether revisions to the plan are necessary.
(b) If a program operator determines that revisions to the plan are necessary, the program operator shall submit to the department a revised plan for review and approval employing the procedures set forth in Section 42984.5. The stewardship organization shall submit the revised plan pursuant to this subdivision within 90 days of the review deadline outlined pursuant to subdivision (a).
(c) If a program operator determines that no revisions to the plan are necessary, the program operator shall send a letter to the department no later than 30 days after the review deadline outlined in subdivision (a), explaining that the program operator has reviewed the plan, consulted with the advisory committee, and determined that no revisions are needed. The department may disapprove the program operators determination within 30 days of receipt of that determination if the department concludes that the program operator cannot implement the objectives of this chapter without revising the stewardship plan. In the event the department disapproves the program operators determination, the program operator shall submit to the department a revised stewardship plan for review and approval in accordance with Section 42984.5. The program operator shall submit the revised plan pursuant to this subdivision within 90 days of receipt of the departments disapproval.
5. Financial Provisions 42984.10.(a) No later than 90 days before a budget is submitted to the department, the department shall notify each program operator of each agencys respective anticipated actual and reasonable regulatory costs directly related to implementing and enforcing this chapter in relation to the program operators activities as the criteria for those costs are defined in the regulations adopted pursuant to Section 42984.1. This may include the actual and reasonable costs associated with regulatory regulation development pursuant to Section 42984.1 and other startup activities prior to stewardship plan submittal and approval, relative to the role of the program operators program compared to other programs.
(b) Program operators shall, on a schedule determined by the department, pay the department fees incurred to reimburse the department for incurred costs as described in subdivision (a). The fees shall not exceed the departments actual and reasonable regulatory costs to implement and enforce this chapter. The fees shall be paid by each producer, either individually, if the producer is complying with the requirements of this chapter individually, or through a stewardship organization.
(c) (1) The department shall deposit all moneys received from a program operator pursuant to this section into the Textile Stewardship Recovery Fund, which is hereby established in the State Treasury.
(2) Upon appropriation by the Legislature, moneys in the Textile Stewardship Recovery Fund shall be expended by the department to implement and enforce this chapter, as well as to reimburse any outstanding loans made from other funds used to finance regulation, development, and startup costs of the departments activities pursuant to this chapter.
(3) The money in the Textile Stewardship Recovery Fund shall not be expended for any other purpose.
42984.11.Each producer shall, either individually or through a stewardship organization, pay all administrative and operational costs associated with establishing and implementing the stewardship program in which it participates, including, but not limited to, the cost of collection, transportation, sorting, repairing, recycling, and the safe and proper management of covered products.
6. Records, Audits, and Reports 42984.12.(a) A program operator shall keep board minutes, books, and records that clearly reflect the activities and transactions of the program operator.
(b) A program operator shall retain, at the program operators expense, an independent public accountant, certified in the United States, to annually audit the accounting books of the program operator.
(c) The program operator shall include the audit in its annual report submitted pursuant to Section 42984.13 commencing within 18 months of plan approval by the department. The department shall review the audit for compliance with this chapter and consistency with the program operators stewardship plan. The department shall notify the program operator of any compliance issues or inconsistencies.
(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 program operator may obtain copies of the departments audit upon request.
(e) The department shall not publicly disclose any confidential proprietary or trade secret information in an audit conducted pursuant to this section.
42984.13.A program operator shall annually submit to the department, in the form and manner, and by the date, determined by the department, an annual report, which the department shall make publicly available that includes all of the following information for the preceding calendar year:
(a) The program operators costs and revenues.
(b) (1) An estimate of the quantity of covered products sold in or into the state by the producers covered by the program operators stewardship plan, as determined by the best available commercial information, potentially including the application of California population data to the national sales information and the discarded covered textile articles collected for repair and recycling through the stewardship program.
(2) The estimate described in paragraph (1) shall include an estimate of covered products sold into the state, broken down by fiber type and United States Harmonized Tariff Schedule (HTS) number.
(c) A list of the stewardship programs collection sites, by name, location, and type.
(d) The total weight of covered products, respectively, that were collected, broken down by fiber type categories.
(e) The total weight of covered products, by category, that were collected and deemed reusable by each respective authorized collector and authorized sorter.
(e)( f) A list of each authorized sorter, authorized repair business, and textile article recycling facility used by the stewardship program, including both of the following:
(1) Name and location.
(2) Total weight of covered products handled by each location.
(f)( g) An updated list of the names and corporate mailing addresses of producers, as described in subdivision (a) of Section 42984.7 and brands of covered textile articles covered under the stewardship plan.
(g)( h) The total weight and number of covered textile articles sold in or into the state attributed to a producer, who is a registered participant of the program operators plan, which are collected in the state and repaired or recycled by the program operator during the preceding calendar year, including a description of the methodology and information used to determine and calculate these values.
(h)( i) A complete accounting of the ultimate disposition of all covered products collected by the program operator, including the total weight of covered products that were repaired and recycled.
(i)( j) A description of methods used to collect, transport, repair, and recycle covered products by the program operator.
(j)( k) A description of outreach efforts and education, including, but not limited to, education and outreach provided to consumers, collection sites, manufacturers, distributors, and retailers by the program operator for the purpose of promoting the collection, repair, reuse, and recycling of covered products. This includes messaging on environmentally preferable purchasing and repairing covered textile articles.
(k)( l ) Findings from the evaluation of the comprehensive statewide education and outreach program required by paragraph (8) of subdivision (i) of Section 42984.7.
(l)( m) A description of consultation with the California Environmental Protection Agencys Environmental Justice Task Force and other relevant stakeholders for collecting covered textile articles for repair and recycling in areas and communities that face unique challenges.
(m)( n) A description of actions taken by the program operator to pay all administrative and operational costs associated with establishing and implementing the stewardship program.
(n)( o) A report on activities the program operator has undertaken to prioritize the use of sorting, repair, and recycling facilities located closer to the point of generation to minimize transportation emissions and increase accountability for the ultimate disposition of collected covered products.
(o)( p) The progress toward attaining the goals included in the program operators stewardship plan.
(p)( q) Any modifications or revisions to the stewardship plan.
(q)( r) Any other information deemed relevant by the program operator for the department to determine compliance with the approved stewardship plan.
(r)( s) Any other information required by regulations promulgated pursuant to Section 42984.1.
42984.14.(a) No later than 120 days after the date the department receives the annual report submitted by a program operator pursuant to Section 42984.13, the department shall notify the program operator if the annual report is compliant or noncompliant.
(b) (1) If the department determines that the annual report is noncompliant due to failure to meet the requirements of Section 42984.13, the program operator shall resubmit a revised annual report addressing the departments written reasons for its decision within 30 days of the departments response.
(2) The department, within 60 days from the date a program operator resubmits a revised annual report, shall determine whether the annual report is compliant or noncompliant.
(3) If the department determines a revised annual report submitted pursuant to paragraph (1) is noncompliant, the program operator may submit only one additional revised annual report, subject to review in accordance with paragraph (2).
7. Enforcement 42984.15.(a) Within 24 months of the effective date of regulations pursuant to Section 42984.1, and on or before July 1 of each year thereafter, the department shall post on its internet website a list of producers that are in compliance with this chapter. The department shall list, as appropriate, the reported brands of covered products for each producer.
(b) A producer that is not listed on the departments internet website pursuant to subdivision (a) that demonstrates compliance with this chapter before the next list is posted by the department may either be added to the internet website or be provided a certification letter from the department stating that the producer of a covered product is in compliance with this chapter.
(c) (1) A retailer, importer, or distributor shall monitor the departments internet website to determine if a producer, brand, or covered product is in compliance with this chapter for that brand of covered product.
(2) Except as provided in subdivision (d), on and after the date a stewardship plan is approved by the department pursuant to Section 42984.5, a retailer, importer, or distributor shall not sell, distribute, offer for sale, or import a covered product in or into the state for sale in the state unless the producer of the covered product is listed as in compliance pursuant to this section for that brand and covered product.
(d) (1) Notwithstanding paragraph (2) of subdivision (c), a retailer, importer, or distributor may sell, offer for sale, import, or distribute a covered product if, on the date the retailer or distributor sells or offers for sale the covered product in or into the state, the producer, brand, or covered product was listed as compliant on the departments internet website.
(2) Notwithstanding paragraph (2) of subdivision (c), a retailer or distributor may, for any existing inventory in stock before the initial list was posted by the department pursuant to subdivision (a), sell or distribute that inventory for sale in or into the state.
(e) (1) If the department determines a producer is not in compliance with this chapter, the department shall remove the producer, along with its brands and covered products, from the list of compliant producers posted on the departments internet website pursuant to subdivision (a).
(2) The department shall list on its internet website a producer, along with its brands and covered products, if the department subsequently determines that the producer is in compliance with this chapter.
42984.16.(a) The department may impose an administrative civil penalty on a producer, program operator, stewardship organization, manufacturer, distributor, retailer, or importer that is in violation of this chapter. The amount of the administrative civil penalty shall not exceed ten thousand dollars ($10,000) per day, but, if the violation is intentional, knowing, or reckless, the department may impose an administrative civil penalty of not more than fifty thousand dollars ($50,000) per day. The department shall establish, through regulations adopted by the department pursuant to Section 42984.1, a process that shall include an informal hearing process by which the penalties will be assessed.
(b) The department shall deposit all penalties collected pursuant to this section into the Textile Stewardship Recovery Penalty Account, which is hereby created in the Textile Stewardship Recovery Fund. Upon appropriation by the Legislature, moneys in the Textile Stewardship Recovery Penalty Account shall be available for expenditure by the department on activities related to the collection and recycling of covered products, grants for related purposes, and the administration and enforcement of this chapter.
(c) This chapter does not limit or restrict the departments enforcement authority pursuant to Chapter 6.5 (commencing with Section 25100) of Division 20 of the Health and Safety Code and its implementing regulations, if any.
(d) The Administrative Adjudication Bill of Rights, as set forth in Chapter 4.5 (commencing with Section 11425.10) of Part 1 of Division 3 of Title 2 of the Government Code, applies to hearings conducted under this chapter and mandates minimum due process.
42984.17.(a) Upon a written finding that a producer, program operator, stewardship organization, manufacturer, distributor, retailer, or importer site has not met a material requirement of this chapter, in addition to any other penalties authorized under this chapter, the department may, after affording the entity a reasonable opportunity to respond to, or rebut, the finding, take any of the following actions to ensure compliance with the requirements of this chapter:
(1) Revoke the program operators stewardship plan approval or require the program operator to resubmit the plan.
(2) Remove the producer, along with its brands and covered textile articles from the departments list of compliant producers, as specified in Section 42984.15.
(3) Impose additional compliance reporting requirements.
(4) Post the noncompliant entity onto a list of noncompliant entities.
(b) If a stewardship plan is revoked pursuant to paragraph (1) of subdivision (a) or terminated by the program operator that submitted the plan, a producer no longer subject to that plan may, without being subject to administrative civil penalties pursuant to Section 42984.16, sell or offer for sale covered products in or into the state for a period of up to one year after the stewardship plan was terminated or revoked if the producer continues to operate under the most recent approved stewardship plan to which the producer was subject.
42984.18.(a) A producer, program operator, stewardship organization, manufacturer, distributor, retailer, or importer shall do both of the following:
(1) Upon request, provide the department with reasonable and timely access, as determined by the department, 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) (1) The department may impose administrative civil penalties pursuant to Section 42984.16 on a producer, program operator, stewardship organization, manufacturer, distributor, retailer, or importer that fails to provide the department with the access required pursuant to this section.
(2) The department may post a notice on the departments internet website that is maintained pursuant to Section 42984.15 that a producer that fails to provide the department with access pursuant to this section, along with the producers brands and covered products, is no longer in compliance with this chapter.
42984.19.After the time for judicial review under Section 11523 of the Government Code has expired, the department may apply to the small claims court or superior court, depending on the jurisdictional amount and any other remedy sought, in the county where the penalties, restitution, or other remedy was imposed by the department, for a judgment to collect any unpaid civil penalties or restitution or to enforce any other remedy provided by this chapter. The application, which shall include a certified copy of the final agency order or decision, shall constitute a sufficient showing to warrant the issuance of the judgment. The court clerk shall enter the judgment immediately in conformity with the application. The judgment so entered shall have the same force and effect as and shall be subject to all the provisions of law relating to a judgment in a civil action and may be enforced in the same manner as any other judgment of the court. The court shall make enforcement of the judgment a priority.
8. Antitrust Immunity 42984.20.(a) Except as provided in subdivision (c), an action specified in subdivision (b) that is taken by a program operator 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) applies to all of the following actions taken by a program operator:
(1) The creation, implementation, or management of a stewardship plan approved or conditionally approved by the department pursuant to Article 3 (commencing with Section 42984.4) and the determination of the types or quantities of covered products repaired, reused, recycled, or otherwise managed pursuant to a stewardship plan.
(2) The determination of the cost and structure of an approved stewardship plan.
(3) The establishment, administration, collection, or disbursement of a charge associated with funding the implementation of this chapter.
(c) Subdivision (a) does not apply to an agreement that does any of the following:
(1) Fixes a price of or for covered products, except for an agreement related to costs or charges associated with participation in a stewardship plan approved or conditionally approved by the department and otherwise in accordance with this chapter.
(2) Fixes the output or production of covered products.
(3) Restricts the geographic area in which, or customers to whom, covered products will be sold.
9. County Authority 42984.21.This chapter does not grant a county city, county, city and county, special district, or joint powers authority any new authority over solid waste hauling operations pursuant to a franchise agreement and does not affect, limit, or abrogate in any manner any franchise granted to a solid waste enterprise for the handling of solid waste.
SEC. 2.The Legislature finds and declares that Section 1 of this act, which adds Section 42984.5 to the Public Resources Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
It is in the best interest of the public to provide limited protection of certain financial, production, financial and sales data of program participants, in order to protect the interests of businesses and the privacy of their data regarding their customers.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.
For purposes of this chapter, the following definitions apply:
(a)(1)Apparel means clothing and accessory items intended for regular wear or formal occasions, including, but not limited to, undergarments, shirts, pants, skirts, dresses, overalls, bodysuits, costumes, vests, dancewear, suits, saris, scarves, tops, leggings, school uniforms, leisurewear, athletic wear, sports uniforms, everyday swimwear, formal wear, onesies, bibs, diapers, footwear, handbags, backpacks, and everyday uniforms for workwear. Clothing items intended for regular wear or formal occasions does not include personal protective equipment or clothing items for exclusive use by the United States military.
(2)Apparel does not include personal protective equipment or clothing items for exclusive use by the United States military.
(b)Authorized collector means a person or entity that has entered into an agreement with a program operator to collect covered products.
(c)Authorized sorter means a person or entity that has entered into an agreement with a program operator to sort covered products collected by authorized collectors.
(d)Authorized repair business means a person or entity that has entered into an agreement with a program operator to repair covered products for resale after collection by an authorized collector or after sorting by an authorized sorter.
(e)Brand means a trademark, including both a registered trademark and an unregistered trademark, a logo, a name, a symbol, a word, an identifier, or a traceable mark that identifies a covered textile textile article and identifies the owner or licensee of the brand.
(f)Collection site means a permanent or temporary location operated by an authorized collector at which covered products are collected and prepared for transport in accordance with the requirements of this chapter.
(g)Consumer means an owner of a covered product, including a person, business, corporation, limited partnership, nonprofit organization, or governmental entity, and includes the ultimate purchaser, owner, or lessee of a covered product, who is not, as to that covered product, the distributor, importer, producer, recycler, retailer, or stewardship organization.
(h)(1)Covered Product product means any apparel, textile, apparel or textile article that is unsuitable for reuse by a consumer in its current state or condition.
(2)Covered product does not include a product covered under the Used Mattress Recovery and Recycling Act (Chapter 21 (commencing with Section 42985)). either of the following:
(A)A product covered under the Used Mattress Recovery and Recycling Act (Chapter 21 (commencing with Section 42985)).
(B)A product covered under the Electronic Waste Recycling Act of 2003 (Chapter 8.5 (commencing with Section 42460)).
(i)Department means the Department of Resources Recycling and Recovery or a successor agency.
(j)Distributor means a company that has a contractual relationship with one or more producers to market and sell covered textiles textile articles to a retailer.
(k)Importer means either of the following:
(1)A person 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 covered textile textile article that is sold, distributed for sale, or offered for sale in or into the state that was manufactured or assembled by a company outside of the United States.
(2)A person importing into the state for sale, distributing for sale, or offering for sale in the state a covered textile textile article that was manufactured or assembled by a company physically located outside of the state.
(l)Local jurisdiction means a city, county, city and county, or a regional agency formed pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code or Article 3 (commencing with Section 40970) of Chapter 1 of Part 2 of this code, or a special district that provides solid waste collection services.
(m)Mail-back program means a method of collecting covered products using prepaid, preaddressed mailing envelopes that are reusable, recyclable, or compostable.
(n)Person has the same meaning as set forth in Section 40170.
(o)(1)Producer means a person who manufactures a covered product and who owns or is the licensee of the brand or trademark under which that covered product is sold, offered for sale, or distributed for sale in or into the state.
(2)If there is no person in the state who is the producer for purposes of paragraph (1), the producer of the covered product is the owner of a brand or trademark or, if the owner is not in the state, the exclusive licensee of a brand or trademark under which the covered product is sold, imported for sale, offered for sale, or distributed for sale in or into the state. For purposes of this subdivision, an exclusive licensee is a person holding the exclusive right to use a trademark or brand in the state in connection with the manufacture, sale, or distribution for sale in or into the state of the covered product.
(3)If there is no person in the state who is the producer for purposes of paragraph (1) or (2), the producer of the covered product is the person who sells, offers for sale, or is the importer or distributor of the covered textile textile article in or into the state for sale in or into the state.
(4)For purposes of this chapter, the sale of a covered textile textile article shall be deemed to occur in the state if the covered textile textile article is delivered to the consumer in the state.
(5)Producer does not include a seller of secondhand apparel, secondhand textiles, apparel or secondhand textile articles.
(p)Program operator means a producer, or a stewardship organization on behalf of a group of producers, which is responsible for implementing a stewardship program in accordance with the requirements of this chapter.
(q)Recycling has the same meaning as set forth in subdivision (aa) of Section 42041.
(r)Recycling efficiency rate means the ratio of the weight of covered products recycled by a program operator to the weight of those covered products collected by the program operator.
(s)Repair means any alteration or improvement of damaged covered materials deemed worth the cost of repair by criteria established by the stewardship plan, including, but not limited to, any of the following:
(1)Washing at a commercial laundry.
(2)Upcycling, redesign, and repurposing.
(3)Mending rips, holes, seams, and hems.
(4)Removing and repairing surface damages, such as pilling, stain removal, or abrasion.
(5)Securing and reattaching buttons and other fastenings.
(6)Dying, redying, overdying, Dyeing, redyeing, overdyeing, or printing of images on covered products.
(t)Retailer means a person who sells or offers for sale a covered product in or into the state to a person through any means, including, but not limited to, sales outlets, catalogs, the telephone, the internet, or any electronic means.
(u)Secondhand apparel means any apparel items item that has been previously owned by a consumer.
(v)Secondhand textile textile article means a usable textile item article that has been previously owned by a consumer.
(w)Secondhand textile article means a usable textile article that has been previously owned by a consumer.
(x)Secondhand markets means a retailer who sells secondhand apparel, secondhand textiles, apparel or secondhand textile articles, including, but not limited to, thrifts, online resale platforms, and flea markets.
(y)Stewardship organization means an organization exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986 (26 U.S.C. Sec. 501(c)(3)) that is established by a group of producers in accordance with this chapter to develop and implement a stewardship program.
(z)Stewardship plan or plan means a plan developed by a program operator pursuant to this chapter for the collection, transportation, repair, recycling, and the safe and proper management of covered products.
(aa)Stewardship program means a program established by a program operator pursuant to this chapter for the free at drop off, convenient, and safe collection, transportation, repair, recycling, and otherwise proper management of covered products.
(ab)Textile means any item made in whole or in part from a natural, manmade, or synthetic fiber, yarn, or fabric, and includes, but is not limited to, leather, cotton, silk, jute, hemp, wool, viscose, nylon, or polyester. Textile does not include disposable hygiene products made from paper, including, but not limited to, toilet paper, paper towels or tissues, or disposable absorbent hygiene products.(ac)Textile articles means textile goods of a type customarily used in households and businesses, and includes, but is not limited to, apparel, accessories, handbags, backpacks, draperies, shower curtains, furnishings, upholstery, bedding, towels, napkins, and tablecloths. Textile articles does not include any of the following:(1)Either of the following items regulated under the Safer Consumer Products Program (Chapter 55 (Commencing with Section 69501) of Division 4.5 of Title 22 of the California Code of Regulations):(A)Carpets and rugs.(B)Treatments containing polyfluoroalkyl for use on converted textiles or leathers.(2)Component parts from a vehicle, as defined in Section 670 of the Vehicle Code, including, but not limited to, an off-highway motor vehicle, as defined in Section 38012 of the Vehicle Code, such as seats and carpets or synthetic flooring.(3)Component parts from a vessel, as defined in Section 21 of the Harbors and Navigation Code, such as seats, synthetic flooring, and boat covers.(4)Filtration media and filter products used in industrial applications, including, but not limited to, chemical or pharmaceutical manufacturing, and environmental control technologies.(5)Textile articles used in or for laboratory analysis and testing.(6)Component parts from an aircraft, as defined in Section 21012 of the Public Utilities Code.(7)Stadium shades or other architectural fabric structures. For purposes of this subparagraph, architectural fabric structure means a permanent fabric structure that is intrinsic to a buildings design or construction.(ab)Textile article means any item customarily used in households and business, including, but not limited to, towels, linens, sheets, window coverings, mats, tablecloths, napkins, and fabric on the bolt, that are made from a natural, artificial, or synthetic fiber, yarn, or fabric. Textile article does not include any of the following:
(1)A toy, as defined in Section 108550 of the Health and Safety Code.
(2)Upholstered furniture, as defined in Section 19006 of the Business and Professions Code.
(3)Either of the following items regulated under the Safer Consumer Products Program (Chapter 55 (commencing with Section 69501) of Division 4.5 of Title 22 of the California Code of Regulations):
(A)Carpets and Rugs.
(B)Treatments containing polyfluoroalkyl for use on converted textile articles or leathers.
(4)Disposable or soluble hygiene, cleaning, or laundry care products, including, but not limited to, toilet paper, paper towels or tissues, wet or dry wipes, nonwoven disposable wipes, or disposable absorbent hygiene products.
(ad)(ac)Textile article recycler means a person or entity that recovers fiber, yarn, or fabric and reprocesses that recovered fiber, yarn, or fabric into new, usable products.
42984.1.(a)The department, acting in accordance with Article 1 (commencing with Section 11340) to Article 8 (commencing with Section 11350), inclusive, of the Administrative Procedure Act, as set forth in Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, shall adopt regulations to implement this chapter with an effective date of no earlier than December 31, 2025.
(b)Beginning January 1, 2032, the department may reassess the regulations developed pursuant to subdivision (a). The reassessment may include adjusting the minimum required collection sites, establishing a minimum recycling efficiency rate for covered products collected and recycled by program operators, or establishing other criteria for the program.
(c)(1)No later than 90 days after the effective date of regulations adopted pursuant to this section, the department shall appoint an advisory committee for the purposes of consulting with producers and stewardship organizations with approved plans. Membership in the advisory committee may include, but is not limited to, representatives from local governments, recyclers, retailers, authorized collectors, authorized sorters, authorized repair businesses, nongovernmental organizations, environmental organizations, community-based justice and public health organizations, the second-hand industry, and the solid waste industry.
(2)Participation on the advisory committee shall be voluntary.
(3)The advisory committee is not a state body as that term is used in Section 11121 of the Government Code, but shall provide advanced public notice about meetings, allow public participation in all meetings, and vote on written recommendations at public meetings.
2.Producers42984.2.(a)In order to comply with the requirements of this chapter, a producer may establish and implement a stewardship program independently, or as part of a group of producers through membership in a stewardship organization exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986 (21 U.S.C. 501(c)(3)). Producers may establish one or more stewardship organizations to comply with the requirements of this chapter.
(1)A producer shall not sell, distribute for sale, offer for sale, or import for sale a covered product in or into this state unless the producer is in compliance with this chapter and any regulations in effect and adopted pursuant to Section 42984.1.
(2)Every producer shall, no later than 180 days after the effective date of this chapter, notify all persons through which it is selling, distributing, importing, or offering for sale a covered product in or into the state for sale in or into the state whether it will comply with this chapter individually or through a stewardship organization.
(3)Each producer covered under a stewardship organization shall register with that stewardship organization in accordance with the procedures and requirements established by that stewardship organization and shall comply with those procedures and requirements.
(b)A producer is not in compliance with this chapter and is subject to penalties pursuant to Article 7 (commencing with Section 42984.15) if, commencing two years from the adoption of regulations pursuant to Section 42984.1, a covered product sold or offered for sale by the producer is not subject to an approved stewardship plan that has been approved by the department pursuant to Section 42984.5.
42984.3.(a)No later than 180 days after the effective date of this chapter, individual producers shall provide to the department, in a form and manner established by the department, a list of covered products and brands of covered products that the producer sells, distributes for sale, imports for sale, or offers for sale in or into the state.
(b)A producer shall update the list described in subdivision (a) and provide the updated list to the department on or before January 15 of each year or upon request of the department.
3.Program Operators 42984.4.(a)(1)A program operator shall include as a collection site under its stewardship program any entity that offers in writing to participate in the stewardship program and agrees to comply with any program operator requirements that are consistent with that program operators approved stewardship plan, even if the minimum thresholds described in subdivision (e) of Section 42984.7 as applicable, have been achieved. establish a method for fully funding the stewardship program in a manner that equitably distributes the stewardship programs costs among participating producers that reflects production and sales volumes. The funding mechanism shall incentivize green design by modulating distribution of cost of participating producers to consider the cost of repairing, recycling, or otherwise managing their specific covered products.
(2)A producer that elects to meet the requirements of this chapter individually, without joining a stewardship organization, shall establish a method for fully funding the stewardship program.
(2)(b)A program operator shall include as a collection site under its stewardship program any local jurisdiction that offers in writing to participate in the stewardship program and agrees to comply with any program operator requirements that are consistent with that program operators approved stewardship plan, even if the minimum thresholds described in subdivision (e) of Section 42984.7, as applicable, have been achieved.
(3)(1)A program operator shall include the offering entity or local jurisdiction as a collection site in the stewardship program within 90 days of receiving the written offer to participate, confirming that the offering entity will comply with any program operator requirements that are consistent with that program operators approved stewardship plan, even if the minimum thresholds described in subdivision (e) of Section 42984.7, as applicable, have been achieved.
(4)(2)The program operator shall not be required to respond to offers pursuant to this paragraph until the program operators stewardship plan has been approved by the department.
(b)(c)A program operator may suspend or terminate a collection site that does not comply with all applicable state, federal, or municipal laws and regulations or adhere to the rules and conditions imposed by the program operator pursuant to paragraph (5) of subdivision (g) of Section 42984.7.
(c)(d)A collection site shall be operated to ensure that covered products are collected safely and handled in accordance with all applicable state, federal, and municipal laws and regulations and the rules and conditions of the stewardship plan. Authorized collectors may divert usable apparel, textiles, apparel and textile articles without damage for sale in domestic secondhand markets.
(d)(e)A program operator shall require all contractors to pay the state minimum wage.
4.Stewardship Plan for Covered Products 42984.5.(a)Within 12 months of the effective date of the regulations adopted by the department pursuant to Section 42984.1, a program operator shall develop and submit to the department a complete stewardship plan, in accordance with the requirements of this chapter, for the collection, transportation, repair, sorting, recycling, and the safe and proper management of covered products in the state. No program operator serving more than one producer may limit its stewardship plan for covered products to the covered products of the producers participating in that stewardship program.
(b)The department shall review the stewardship plan for compliance with this chapter and shall approve, disapprove, or conditionally approve the plan within 120 days of receipt of the plan. The department may consult with or submit a stewardship plan for review to the Department of Toxic Substances Control if the department determines it is necessary for making a determination of approval of a stewardship plan. If the department consults with the Department of Toxic Substances Control, then the department shall approve, disapprove, or conditionally approve the plan within 180 days of receipt of the plan.
(c)If the department disapproves a stewardship plan submitted by a program operator, the department shall explain how the stewardship plan does not comply with this chapter and provide written notice to the program operator within 30 days of disapproval. The program operator may resubmit to the department a revised stewardship plan within 60 days of the date the written notice was issued, and the department shall review the revised stewardship plan within 90 days of resubmittal. If a revised stewardship plan is disapproved by the department, a producer operating under the stewardship plan shall not be in compliance with this chapter until the department approves a stewardship plan submitted by a program operator that covers the producers products.
(d)Within 24 months of the effective date of the regulations adopted by the department pursuant to Section 42984.1, a program operator shall have a complete stewardship plan approved by the department and each producer shall be subject to an approved stewardship plan in order to be in compliance with this chapter.
(e)The approved plan shall be a public record, except that financial or sales data reported to the department by the program operator is not a public record for purposes of the California Public Records Act (Division 10 (commencing with Section 7920.000) 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 producer or distributor or to any other entity.
42984.6.(a)Within 12 months of the approval of the stewardship plan by the department pursuant to Section 42984.5, a program operator shall fully implement its stewardship program.
(b)An individual producer or a program operator may petition the department to investigate a noncompliant producer, and the department shall respond to the petition in a timely manner.
42984.7.A stewardship plan for covered products shall include all of the following:
(a)The names of producers and brands of covered products covered under the stewardship plan.
(b)A description of the consultative process by which the program operator consulted with the advisory committee created pursuant to subdivision (c) of Section 42984.1 to receive advice on the development and implementation of the stewardship plan, including all correspondence between the program operator and the advisory committee and a detailed explanation of how and why the program operator decided to adopt or not adopt each recommendation by the advisory committee.
(c)(1)A description of the method to establish and administer a means for fully funding the stewardship program in a manner that equitably distributes the stewardship programs costs among the producers that are part of the stewardship organization that reflects production and sales volumes and the cost of repairing, recycling, or otherwise managing covered products. products pursuant to subdivision (a) of Section 42984.4. For producers that elect to meet the requirements of this chapter individually, without joining a stewardship organization, a description of the proposed method to establish and administer a means for fully funding the stewardship program.
(2)(A)The stewardship plan shall include a stewardship program budget, for the next five calendar years, which includes a funding level and anticipated revenues and costs sufficient to cover the budgeted costs, including, but not limited to, administrative costs, operational costs, and capital costs, to operate the stewardship program in a prudent and responsible manner. Administrative costs shall include the departments anticipated actual, reasonable, and direct regulatory costs to implement and enforce this chapter as the criteria for all the costs are defined in the regulations adopted pursuant to Section 42984.1. For purposes of this paragraph, stewardship program implementation begins once the department approves a program operators stewardship plan, except the departments costs shall include actual, reasonable, and direct regulatory development costs and other startup regulatory costs incurred prior to stewardship plan submittal and approval.
(B)(i)The stewardship program shall reevaluate the budget on an annual basis and adjust allocations for the five-year budget plan as needed.
(ii)When reevaluating the budget as required by paragraph (1), the program operator shall also reconsider the distribution of costs pursuant to subdivision (a) of Section 42984.4.
(d)A description of methodologies for annually measuring, and meeting or exceeding the recycling efficiency rate or other criteria established by the department pursuant to subdivision (b) of Section 42984.1, as applicable. If a minimum recycling rate has not been established by the department, a program operator shall include a target recycling efficiency rate for covered products recycled by the program operator.
(e)A description of how the program operator will provide for a free and convenient collection system for covered products in each county of the state that meets both of the following requirements:
(1)A minimum of 10 collection sites per county or one collection site per 25,000 people, whichever is greater, except as identified in this paragraph.
(A)A county with a population of 18,000 and under, as reported annually by the Department of Finance, shall have a minimum of three collection sites.
(B)A county with a population of between 18,001 and 50,000, as reported annually by the Department of Finance, shall have a minimum of four collection sites.
(C)A county with a population between 50,001 and 100,000, as reported annually by the department Department of Finance, shall have a minimum of eight collection sites.
(2)The collection sites in each county shall be spread throughout the county to facilitate widespread access and convenience.
(f)A description of how a program operator and its authorized collection sites will allow a consumer to drop off covered products at a collection site at no charge.
(g)A description of how collection sites will be authorized and managed, including all of the following:
(1)A description of the process by which entities and local jurisdictions can request to be a collection site pursuant to Section 42984.4.
(2)A description of how the program operator will provide to collection sites at no cost the appropriate containers for covered products, training, signage, safety guidance, and educational materials.
(3)An explanation of the process by which the program operator will provide for the collection and transport of covered products from the collection sites to an authorized sorter, or directly to an authorized repair business, or recycling facility.
(4)A description of how the program operator will maintain all collection and transport records and make them available to the department upon request.
(5)A list of all proposed rules, conditions conditions, and requirements for authorized collectors, authorized sorters, and authorized repair businesses, including a template proposed agreement for each of those types of entities, as applicable.
(h)A description of the process by which covered products will be sorted, processed, and recycled following collection at collection sites, including all of the following:
(1)A description of how covered products will be handled and managed according to the waste hierarchy as defined in Section 40051.
(2)A description of how covered products will be sorted by authorized sorters, including a description of how the flow of covered products to and from an authorized sorter authorized collectors, authorized sorters, authorized repair businesses, and recyclers will be tracked.
(3)A description of how the program operator will maximize the repair and recycling of all covered products.
(4)A description of how the program operator will minimize disposal of covered products collected by the program operator.
(5)A description of how the program operator will prioritize the use of sorting, repair, and recycling facilities located closer to the point of collection to minimize transportation-related emissions and increase accountability for the ultimate disposition of the covered products.
(6)A description of how the program will annually assess the efficacy of the collection, sorting, and transportation process.
(i)A comprehensive statewide education and outreach program designed to educate consumers and promote participation in the collection, repair, and recycling program offered by the program operator. At a minimum, the comprehensive statewide education and outreach program shall include all of the following:
(1)A description of the education and communications strategy being implemented to effectively promote participation in the stewardship program and provide the information necessary for effective participation by consumers, retailers, local jurisdictions, and others.
(2)An internet website that publicizes the location of collection sites and provides information to consumers on how to drop off covered products at the free and convenient network of collection sites offered by the stewardship program, including any information reasonably necessary to safely and conveniently access the collection, repair, and recycling services offered by the program operator.
(3)All signage and materials required for collection sites by the program operator, and the method by which collection sites can access replacement materials at no cost to the collection site.
(4)A description of efforts to support participation by all California communities, including a description of efforts to communicate with consumers in languages other than English.
(5)A description of strategies, goals, and metrics used to determine the success of the statewide education and outreach program.
(A)The statewide education and outreach program shall promote the safe and proper management of covered products, including source reduction, environmentally preferable purchasing, and repairing covered products. This includes education and training for authorized collectors to incentivize domestic resale of usable textiles. textile articles.
(B)The statewide education and outreach program shall not promote the disposal of covered products in a manner inconsistent with the services offered by the stewardship plan.
(C)The statewide education and outreach plan shall include information for consumers about how to avoid improper disposal of covered products.
(6)(A)A description of how the program operators will annually assess and evaluate the efficacy of the comprehensive statewide education and outreach program and periodically adjust strategies to maximize participation in the stewardship program.
(B)Any program operator serving more than one producer shall coordinate with other program operators on the education and outreach programs that they implement pursuant to this subdivision.
(j)Coordination with, and a description of the efforts and methods used to coordinate activities with, all of the following entities who are responsive to a request from the program operator:
(1)Other program operators.
(2)Existing textile article collection, repair, and recycling programs.
(3)Community-based organizations that contact the program operator and that are qualified to run or support collection events.
(k)Consultation with the California Environmental Protection Agencys Environmental Justice Task Force regarding methods to supplement those of the program operator to collect covered products for repair or recycling in areas and communities that face unique challenges associated with proper waste management, such as poverty, language barriers, and illegal disposal.
(l)A contingency plan in the event the stewardship plan expires, is disapproved, or is revoked. The contingency plan shall describe how the stewardship plan objectives can be carried out in the absence of a plan, either by the program operator or through an entity such as an escrow company.
(m)Develop a program in coordination with other program operators to support commercial laundries for laundering-covered products that includes funding for microfiber filtration devices.
(n)Develop strategies to address counterfeit goods that are illegal for secondhand markets to resell pursuant to Section 350 of the Penal Code.
(o)Develop strategies to address green design challenges for covered products, such as, but not limited to to, compostability, reduction and removal of harmful chemicals, microfiber shedding, and mixed material blends.
42984.8.(a)In preparing a stewardship plan pursuant to Section 42984.7, and any updates to the plan pursuant to Section 42984.9, a program operator shall engage in a consultative process with the advisory committee created by the department pursuant to subdivision (d) of Section 42489.1. A program operator shall provide sufficient time and shall consider all written recommendations from the advisory committee during the plan development process.
(b)A program operator shall consider the advisory committees recommendations. If the producer or stewardship organization decides not to incorporate the advisory committees written recommendations into the plan, the program operator shall provide a brief written explanation to the department and the advisory committee that explains the basis for the decision and also indicates whether the program operator plans to incorporate the recommendations into a subsequent stewardship plan, subsequent amendments to the plan, or a subsequent annual report.
42984.9.(a)A program operator shall review its stewardship plan at least every five years after approval by the department and determine whether revisions to the plan are necessary.
(b)If a program operator determines that revisions to the plan are necessary, the program operator shall submit to the department a revised plan for review and approval employing the procedures set forth in Section 42984.5. The stewardship organization shall submit the revised plan pursuant to this subdivision within 90 days of the review deadline outlined pursuant to subdivision (a).
(c)If a program operator determines that no revisions to the plan are necessary, the program operator shall send a letter to the department no later than 30 days after the review deadline outlined in subdivision (a), explaining that the program operator has reviewed the plan, consulted with the advisory committee, and determined that no revisions are needed. The department may disapprove the program operators determination within 30 days of receipt of that determination if the department concludes that the program operator cannot implement the objectives of this chapter without revising the stewardship plan. In the event the department disapproves the program operators determination, the program operator shall submit to the department a revised stewardship plan for review and approval in accordance with Section 42984.5. The program operator shall submit the revised plan pursuant to this subdivision within 90 days of receipt of the departments disapproval.
5.Financial Provisions 42984.10.(a)No later than 90 days before a budget is submitted to the department, the department shall notify each program operator of each agencys respective anticipated actual and reasonable regulatory costs directly related to implementing and enforcing this chapter in relation to the program operators activities as the criteria for those costs are defined in the regulations adopted pursuant to Section 42984.1. This may include the actual and reasonable costs associated with regulatory regulation development pursuant to Section 42984.1 and other startup activities prior to stewardship plan submittal and approval, relative to the role of the program operators program compared to other programs.
(b)Program operators shall, on a schedule determined by the department, pay the department fees incurred to reimburse the department for incurred costs as described in subdivision (a). The fees shall not exceed the departments actual and reasonable regulatory costs to implement and enforce this chapter. The fees shall be paid by each producer, either individually, if the producer is complying with the requirements of this chapter individually, or through a stewardship organization.
(c)(1)The department shall deposit all moneys received from a program operator pursuant to this section into the Textile Stewardship Recovery Fund, which is hereby established in the State Treasury.
(2)Upon appropriation by the Legislature, moneys in the Textile Stewardship Recovery Fund shall be expended by the department to implement and enforce this chapter, as well as to reimburse any outstanding loans made from other funds used to finance regulation, development, and startup costs of the departments activities pursuant to this chapter.
(3)The money in the Textile Stewardship Recovery Fund shall not be expended for any other purpose.
42984.11.Each producer shall, either individually or through a stewardship organization, pay all administrative and operational costs associated with establishing and implementing the stewardship program in which it participates, including, but not limited to, the cost of collection, transportation, sorting, repairing, recycling, and the safe and proper management of covered products.
6.Records, Audits, and Reports 42984.12.(a)A program operator shall keep board minutes, books, and records that clearly reflect the activities and transactions of the program operator.
(b)A program operator shall retain, at the program operators expense, an independent public accountant, certified in the United States, to annually audit the accounting books of the program operator.
(c)The program operator shall include the audit in its annual report submitted pursuant to Section 42984.13 commencing within 18 months of plan approval by the department. The department shall review the audit for compliance with this chapter and consistency with the program operators stewardship plan. The department shall notify the program operator of any compliance issues or inconsistencies.
(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 program operator may obtain copies of the departments audit upon request.
(e)The department shall not publicly disclose any confidential proprietary or trade secret information in an audit conducted pursuant to this section.
42984.13.A program operator shall annually submit to the department, in the form and manner, and by the date, determined by the department, an annual report, which the department shall make publicly available that includes all of the following information for the preceding calendar year:
(a)The program operators costs and revenues.
(b)(1)An estimate of the quantity of covered products sold in or into the state by the producers covered by the program operators stewardship plan, as determined by the best available commercial information, potentially including the application of California population data to the national sales information and the discarded covered textiles textile articles collected for repair and recycling through the stewardship program.
(2)The estimate described in paragraph (1) shall include an estimate of covered products sold into the state, broken down by fiber type and United States Harmonized Tariff Schedule (HTS) number.
(c)A list of the stewardship programs collection sites, by name, location, and type.
(d)The total weight of covered products, respectively, that were collected, broken down by fiber type categories.
(e)A list of each authorized sorter, authorized repair business, and textile article recycling facility used by the stewardship program, including both of the following:
(1)Name and location.
(2)Total weight of covered products handled by each location.
(f)An updated list of the names and corporate mailing addresses of producers, as described in subdivision (a) of Section 42984.7 and brands of covered textiles textile articles covered under the stewardship plan.
(g)The total weight and number of covered textiles textile articles sold in or into the state attributed to a producer, who is a registered participant of the program operators plan, which are collected in the state and repaired or recycled by the program operator during the preceding calendar year, including a description of the methodology and information used to determine and calculate these values.
(h)A complete accounting of the ultimate disposition of all covered products collected by the program operator, including the total weight of covered products that were repaired and recycled.
(i)A description of methods used to collect, transport, repair, and recycle covered products by the program operator.
(j)A description of outreach efforts and education, including, but not limited to, education and outreach provided to consumers, collection sites, manufacturers, distributors, and retailers by the program operator for the purpose of promoting the collection, repair, reuse reuse, and recycling of covered products. This includes messaging on environmentally preferable purchasing and repairing covered textiles. textile articles.
(k)Findings from the evaluation of the comprehensive statewide education and outreach program required by paragraph (8) of subdivision (i) of Section 42984.7.
(l)A description of consultation with the California Environmental Protection Agencys Environmental Justice Task Force and other relevant stakeholders for collecting covered textiles textile articles for repair and recycling in areas and communities that face unique challenges.
(m)A description of actions taken by the program operator to pay all administrative and operational costs associated with establishing and implementing the stewardship program.
(n)A report on activities the program operator has undertaken to prioritize the use of sorting, repair, and recycling facilities located closer to the point of generation to minimize transportation emissions and increase accountability for the ultimate disposition of collected covered products.
(o)The progress toward attaining the goals included in the program operators stewardship plan.
(p)Any modifications or revisions to the stewardship plan.
(q)Any other information deemed relevant by the program operator for the department to determine compliance with the approved stewardship plan.
(r)Any other information required by regulations promulgated pursuant to Section 42984.1.
42984.14.(a)No later than 120 days after the date the department receives the annual report submitted by a program operator pursuant to Section 42984.13, the department shall notify the program operator if the annual report is compliant or noncompliant.
(b)(1)If the department determines that the annual report is noncompliant due to failure to meet the requirements of Section 42984.13, the program operator shall resubmit a revised annual report addressing the departments written reasons for its decision within 30 days of the departments response.
(2)The department, within 60 days from the date a program operator resubmits a revised annual report, shall determine whether the annual report is compliant or noncompliant.
(3)If the department determines a revised annual report submitted pursuant to paragraph (1) is noncompliant, the program operator may submit only one additional revised annual report, subject to review in accordance with paragraph (2).
7.Enforcement42984.15.(a)Within 24 months of the effective date of regulations pursuant to Section 42984.1, and on or before July 1 of each year thereafter, the department shall post on its internet website a list of producers that are in compliance with this chapter. The department shall list, as appropriate, the reported brands of covered products for each producer.
(b)A producer that is not listed on the departments internet website pursuant to subdivision (a) that demonstrates compliance with this chapter before the next list is posted by the department may either be added to the internet website or be provided a certification letter from the department stating that the producer of a covered product is in compliance with this chapter.
(c)(1)A retailer, importer, or distributor shall monitor the departments internet website to determine if a producer, brand, or covered product is in compliance with this chapter for that brand of covered product.
(2)Except as provided in subdivision (d), on and after the date a stewardship plan is approved by the department pursuant to Section 42984.5, a retailer, importer, or distributor shall not sell, distribute, offer for sale, or import a covered product in or into the state for sale in the state unless the producer of the covered product is listed as in compliance pursuant to this section for that brand and covered product.
(d)(1)Notwithstanding paragraph (2) of subdivision (c), a retailer, importer, or distributor may sell, offer for sale, import, or distribute a covered product if, on the date the retailer or distributor sells or offers for sale the covered product in or into the state, the producer, brand, or covered product was listed as compliant on the departments internet website.
(2)Notwithstanding paragraph (2) of subdivision (c), a retailer or distributor may, for any existing inventory in stock before the initial list was posted by the department pursuant to subdivision (a), sell or distribute that inventory for sale in or into the state.
(e)(1)If the department determines a producer is not in compliance with this chapter, the department shall remove the producer, along with its brands and covered products, from the list of compliant producers posted on the departments internet website pursuant to subdivision (a).
(2)The department shall list on its internet website a producer, along with its brands and covered products, if the department subsequently determines that the producer is in compliance with this chapter.
42984.16.(a)The department may impose an administrative civil penalty on a producer, program operator, stewardship organization, manufacturer, distributor, retailer, or importer that is in violation of this chapter. The amount of the administrative civil penalty shall not exceed ten thousand dollars ($10,000) per day, but, if the violation is intentional, knowing, or reckless, the department may impose an administrative civil penalty of not more than fifty thousand dollars ($50,000) per day. The department shall establish, through regulations adopted by the department pursuant to Section 42984.1, a process that shall include an informal hearing process by which the penalties will be assessed.
(b)The department shall deposit all penalties collected pursuant to this section into the Textile Stewardship Recovery Penalty Account, which is hereby created in the Textile Stewardship Recovery Fund. These moneys shall be available for expenditure upon appropriation by the Legislature. Upon appropriation by the Legislature, moneys in the Textile Stewardship Recovery Penalty Account shall be available for expenditure by the department on activities related to the collection and recycling of covered products, grants for related purposes, and the administration and enforcement of this chapter.
(c)This chapter does not limit or restrict the departments enforcement authority pursuant to Chapter 6.5 (commencing with Section 25100) of Division 20 of the Health and Safety Code and its implementing regulations, if any.
(d)The Administrative Adjudication Bill of Rights, as set forth in Chapter 4.5 (commencing with Section 11425.10) of Part 1 of Division 3 of Title 2 of the Government Code, applies to hearings conducted under this chapter and mandates minimum due process.
42984.17.(a)Upon a written finding that a producer, program operator, stewardship organization, manufacturer, distributor, retailer, or importer site has not met a material requirement of this chapter, in addition to any other penalties authorized under this chapter, the department may, after affording the entity a reasonable opportunity to respond to, or rebut, the finding, take any of the following actions to ensure compliance with the requirements of this chapter:
(1)Revoke the program operators stewardship plan approval or require the program operator to resubmit the plan.
(2)Remove the producer, along with its brands and covered textiles textile articles from the departments list of compliant producers, as specified in Section 42984.15.
(3)Impose additional compliance reporting requirements.
(4)Post the noncompliant entity onto a list of noncompliant entities.
(b)If a stewardship plan is revoked pursuant to paragraph (1) of subdivision (a) or terminated by the program operator that submitted the plan, a producer no longer subject to that plan may, without being subject to administrative civil penalties pursuant to Section 42984.16, sell or offer for sale covered products in or into the state for a period of up to one year after the stewardship plan was terminated or revoked if the producer continues to operate under the most recent approved stewardship plan to which the producer was subject.
42984.18.(a)A producer, program operator, stewardship organization, manufacturer, distributor, retailer, or importer shall do both of the following:
(1)Upon request, provide the department with reasonable and timely access, as determined by the department, 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)(1)The department may impose administrative civil penalties pursuant to Section 42984.16 on a producer, program operator, stewardship organization, manufacturer, distributor, retailer, or importer that fails to provide the department with the access required pursuant to this section.
(2)The department may post a notice on the departments internet website that is maintained pursuant to Section 42984.15 that a producer that fails to provide the department with access pursuant to this section, along with the producers brands and covered products, is no longer in compliance with this chapter.
42984.19.After the time for judicial review under Section 11523 of the Government Code has expired, the department may apply to the small claims court or superior court, depending on the jurisdictional amount and any other remedy sought, in the county where the penalties, restitution, or other remedy was imposed by the department, for a judgment to collect any unpaid civil penalties or restitution or to enforce any other remedy provided by this chapter. The application, which shall include a certified copy of the final agency order or decision, shall constitute a sufficient showing to warrant the issuance of the judgment. The court clerk shall enter the judgment immediately in conformity with the application. The judgment so entered shall have the same force and effect as and shall be subject to all the provisions of law relating to a judgment in a civil action and may be enforced in the same manner as any other judgment of the court. The court shall make enforcement of the judgment a priority.
8.Antitrust Immunity42984.20.(a)Except as provided in subdivision (c), an action specified in subdivision (b) that is taken by a program operator 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) applies to all of the following actions taken by a program operator:
(1)The creation, implementation, or management of a stewardship plan approved or conditionally approved by the department pursuant to Article 3 (commencing with Section 42984.4) and the determination of the types or quantities of covered products repaired, reused, recycled, or otherwise managed pursuant to a stewardship plan.
(2)The determination of the cost and structure of an approved stewardship plan.
(3)The establishment, administration, collection, or disbursement of a charge associated with funding the implementation of this chapter.
(c)Subdivision (a) does not apply to an agreement that does any of the following:
(1)Fixes a price of or for covered products, except for an agreement related to costs or charges associated with participation in a stewardship plan approved or conditionally approved by the department and otherwise in accordance with this chapter.
(2)Fixes the output or production of covered products.
(3)Restricts the geographic area in which, or customers to whom, covered products will be sold.
9.County Authority42984.21.This chapter does not grant a county any new authority over solid waste hauling operations pursuant to a franchise agreement and does not affect, limit, or abrogate in any manner any franchise granted to a solid waste enterprise for the handling of solid waste.
SEC. 2.The Legislature finds and declares that Section 1 of this act, which adds Section 42984.5 to the Public Resources Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
It is in the best interest of the public to provide limited protection of certain financial, production, and sales data of program participants, in order to protect the interests of businesses and the privacy of their data regarding their customers.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
For purposes of this chapter, the following definitions apply:
(a)Apparel means clothing and accessory items intended for regular wear or formal occasions, including, but not limited to, undergarments, shirts, pants, skirts, dresses, overalls, bodysuits, costumes, vests, dancewear, suits, saris, scarves, tops, leggings, school uniforms, leisurewear, athletic wear, sports uniforms, everyday swimwear, formal wear, onesies, bibs, diapers, footwear, and everyday uniforms for workwear. Clothing items intended for regular wear or formal occasions does not include personal protective equipment or clothing items for exclusive use by the United States military.
(b)Authorized collector means a person or entity that has entered into an agreement with a program operator to collect covered products.
(c)Authorized sorter means a person or entity that has entered into an agreement with a program operator to sort covered products collected by authorized collectors.
(d)Authorized repair business means a person or entity that has entered into an agreement with a program operator to repair covered products for resale after collection by an authorized collector or after sorting by an authorized sorter.
(e)Brand means a trademark, including both a registered trademark and an unregistered trademark, a logo, a name, a symbol, a word, an identifier, or a traceable mark that identifies a covered textile and identifies the owner or licensee of the brand.
(f)Collection site means a permanent or temporary location operated by an authorized collector at which covered products are collected and prepared for transport in accordance with the requirements of this chapter.
(g)Consumer means an owner of a covered product, including a person, business, corporation, limited partnership, nonprofit organization, or governmental entity, and includes the ultimate purchaser, owner, or lessee of a covered product, who is not, as to that covered product, the distributor, importer, producer, recycler, retailer, or stewardship organization.
(h)(1)Covered Product means any apparel, textile, or textile article that is unsuitable for reuse by a consumer in its current state or condition.
(2)Covered product does not include a product covered under the Used Mattress Recovery and Recycling Act (Chapter 21 (commencing with Section 42985)).
(i)Department means the Department of Resources Recycling and Recovery or a successor agency.
(j)Distributor means a company that has a contractual relationship with one or more producers to market and sell covered textiles to a retailer.
(k)Importer means either of the following:
(1)A person 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 covered textile that is sold, distributed for sale, or offered for sale in or into the state that was manufactured or assembled by a company outside of the United States.
(2)A person importing into the state for sale, distributing for sale, or offering for sale in the state a covered textile that was manufactured or assembled by a company physically located outside of the state.
(l)Local jurisdiction means a city, county, city and county, or a regional agency formed pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code or Article 3 (commencing with Section 40970) of Chapter 1 of Part 2 of this code, or a special district that provides solid waste collection services.
(m)Mail-back program means a method of collecting covered products using prepaid, preaddressed mailing envelopes that are reusable, recyclable, or compostable.
(n)Person has the same meaning as set forth in Section 40170.
(o)(1)Producer means a person who manufactures a covered product and who owns or is the licensee of the brand or trademark under which that covered product is sold, offered for sale, or distributed for sale in or into the state.
(2)If there is no person in the state who is the producer for purposes of paragraph (1), the producer of the covered product is the owner of a brand or trademark or, if the owner is not in the state, the exclusive licensee of a brand or trademark under which the covered product is sold, imported for sale, offered for sale, or distributed for sale in or into the state. For purposes of this subdivision, an exclusive licensee is a person holding the exclusive right to use a trademark or brand in the state in connection with the manufacture, sale, or distribution for sale in or into the state of the covered product.
(3)If there is no person in the state who is the producer for purposes of paragraph (1) or (2), the producer of the covered product is the person who sells, offers for sale, or is the importer or distributor of the covered textile in or into the state for sale in or into the state.
(4)For purposes of this chapter, the sale of a covered textile shall be deemed to occur in the state if the covered textile is delivered to the consumer in the state.
(5)Producer does not include a seller of secondhand apparel, secondhand textiles, or secondhand textile articles.
(p)Program operator means a producer, or a stewardship organization on behalf of a group of producers, which is responsible for implementing a stewardship program in accordance with the requirements of this chapter.
(q)Recycling has the same meaning as set forth in subdivision (a) of Section 25121.1 of the Health and Safety Code. Recycling does not include any of the following:(1)Combustion.(2)Incineration.(3)Energy generation.(4)Fuel production.(5)Beneficial reuse in the construction and operation of a solid waste landfill, including use of alternative daily cover.(6)Other forms of disposal, as defined in subdivision (b) of Section 40192.(q)Recycling has the same meaning as set forth in subdivision (aa) of Section 42041.
(r)Recycling efficiency rate means the ratio of the weight of covered products recycled by a program operator to the weight of those covered products collected by the program operator.
(s)Repair means any alteration or improvement of damaged covered materials deemed worth the cost of repair by criteria established by the stewardship plan, including, but not limited to, any of the following:
(1)Washing at a commercial laundry.
(2)Upcycling, redesign, and repurposing.
(3)Mending rips, holes, seams, and hems.
(4)Removing and repairing surface damages, such as pilling, stain removal, or abrasion.
(5)Securing and reattaching buttons and other fastenings.
(6)Dying, redying, overdying, or printing of images on covered products.
(t)Retailer means a person who sells or offers for sale a covered product in or into the state to a person through any means, including, but not limited to, sales outlets, catalogs, the telephone, the internet, or any electronic means.
(u)Secondhand apparel means any apparel items that has been previously owned by a consumer.
(v)Secondhand textile means a usable textile item that has been previously owned by a consumer.
(w)Secondhand textile article means a usable textile article that has been previously owned by a consumer.
(x)Secondhand markets means a retailer who sells secondhand apparel, secondhand textiles, or secondhand textile articles, including, but not limited to, thrifts, online resale platforms, and flea markets.
(y)Stewardship organization means an organization exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986 (26 U.S.C. Sec. 501(c)(3)) that is established by a group of producers in accordance with this chapter to develop and implement a stewardship program.
(z)Stewardship plan or plan means a plan developed by program operator pursuant to this chapter for the collection, transportation, repair, recycling, and the safe and proper management of covered products.
(aa)Stewardship program means a program established by a program operator pursuant to this chapter for the free at drop off, convenient, and safe collection, transportation, repair, recycling, and otherwise proper management of covered products.
(ab)Textile means any item made in whole or in part from a natural, manmade, or synthetic fiber, yarn, or fabric, and includes, but is not limited to, leather, cotton, silk, jute, hemp, wool, viscose, nylon, or polyester. Textile does not include disposable hygiene products made from paper, including, but not limited to, toilet paper, paper towels or tissues, or disposable absorbent hygiene products.
(ac)Textile articles means textile goods of a type customarily used in households and businesses, and includes, but is not limited to, apparel, accessories, handbags, backpacks, draperies, shower curtains, furnishings, upholstery, bedding, towels, napkins, and tablecloths. Textile articles does not include any of the following:
(1)Either of the following items regulated under the Safer Consumer Products Program (Chapter 55 (Commencing with Section 69501) of Division 4.5 of Title 22 of the California Code of Regulations):
(A)Carpets and rugs.
(B)Treatments containing polyfluoroalkyl for use on converted textiles or leathers.
(2)Component parts from a vehicle, as defined in Section 670 of the Vehicle Code, including, but not limited to, an off-highway motor vehicle, as defined in Section 38012 of the Vehicle Code, such as seats and carpets or synthetic flooring.
(3)Component parts from a vessel, as defined in Section 21 of the Harbors and Navigation Code, such as seats, synthetic flooring, and boat covers.
(4)Filtration media and filter products used in industrial applications, including, but not limited to, chemical or pharmaceutical manufacturing, and environmental control technologies.
(5)Textile articles used in or for laboratory analysis and testing.
(6)Component parts from an aircraft, as defined in Section 21012 of the Public Utilities Code.
(7)Stadium shades or other architectural fabric structures. For purposes of this subparagraph, architectural fabric structure means a permanent fabric structure that is intrinsic to a buildings design or construction.
(ad)Textile recycler means a person or entity that recovers fiber, yarn, or fabric and reprocesses that recovered fiber, yarn, or fabric into new, usable products.
42984.1.(a)The department, acting in accordance with Article 1 (commencing with Section 11340) to Article 8 (commencing with Section 11350), inclusive, of the Administrative Procedure Act, as set forth in Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, shall adopt regulations to implement this chapter with an effective date of no earlier than December 31, 2025.
(b)Beginning January 1, 2032, the department may adjust, through regulations adopted by the department, the minimum required collection sites to ensure that consumers have sufficient and convenient access to collection sites if the department determines, after consultation with program operators and the advisory committee, that an adjustment will increase the collection of covered products.(c)Beginning January 1, 2032, the department may establish, through regulations adopted by the department, a minimum recycling efficiency rate for covered products collected and recycled by program operators. The department may, if it determines necessary, establish different recycling efficiency rates for different covered products.(b)Beginning January 1, 2032, the department may reassess the regulations developed pursuant to subdivision (a). The reassessment may include adjusting the minimum required collection sites, establishing a minimum recycling efficiency rate for covered products collected and recycled by program operators, or establishing other criteria for the program.
(d)(c)(1)No later than 90 days after the effective date of regulations adopted pursuant to this section, the department shall appoint an advisory committee for the purposes of consulting with producers and stewardship organizations with approved plans. Membership in the advisory committee may include, but is not limited to, representatives from local governments, recyclers, retailers, authorized collectors, authorized sorters, authorized repair businesses, nongovernmental organizations, environmental organizations, community-based justice and public health organizations, the second-hand industry, and the solid waste industry.
(2)Participation on the advisory committee shall be voluntary.
(3)The advisory committee is not a state body as that term is used in Section 11121 of the Government Code, but shall provide advanced public notice about meetings, allow public participation in all meetings, and vote on written recommendations at public meetings.
2.Producers42984.2.(a)In order to comply with the requirements of this chapter, a producer may establish and implement a stewardship program independently, or as part of a group of producers through membership in a stewardship organization exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986 (21 U.S.C. 501(c)(3)). Producers may establish one or more stewardship organizations to comply with the requirements of this chapter.
(1)A producer shall not sell, distribute for sale, offer for sale, or import for sale a covered product in or into this state unless the producer is in compliance with this chapter and any regulations in effect and adopted pursuant to Section 42984.1.
(2)Every producer shall, no later than 180 days after the effective date of this chapter, notify all persons through which it is selling, distributing, importing, or offering for sale a covered product in or into the state for sale in or into the state whether it will comply with this chapter individually or through a stewardship organization.
(3)Each producer covered under a stewardship organization shall register with that stewardship organization in accordance with the procedures and requirements established by that stewardship organization and shall comply with those procedures and requirements.
(b)A producer is not in compliance with this chapter and is subject to penalties pursuant to Article 7 (commencing with Section 42984.15) if, commencing two years from the adoption of regulations pursuant to Section 42984.1, a covered product sold or offered for sale by the producer is not subject to an approved stewardship plan that has been approved by the department pursuant to Section 42984.5.
42984.3.(a)No later than 180 days after the effective date of this chapter, individual producers shall provide to the department, in a form and manner established by the department, a list of covered products and brands of covered products that the producer sells, distributes for sale, imports for sale, or offers for sale in or into the state.
(b)A producer shall update the list described in subdivision (a) and provide the updated list to the department on or before January 15 of each year or upon request of the department.
3.Program Operators 42984.4.(a)(1)A program operator shall include as a collection site under its stewardship program any entity that offers in writing to participate in the stewardship program and agrees to comply with any program operator requirements that are consistent with that program operators approved stewardship plan, even if the minimum thresholds described in subdivision (e) of Section 42984.7 as applicable, have been achieved.
(2)A program operator shall include as a collection site under its stewardship program any local jurisdiction that offers in writing to participate in the stewardship program and agrees to comply with any program operator requirements that are consistent with that program operators approved stewardship plan, even if the minimum thresholds described in subdivision (e) of Section 42984.7, as applicable, have been achieved.
(3)A program operator shall include the offering entity or local jurisdiction as a collection site in the stewardship program within 90 days of receiving the written offer to participate, confirming that the offering entity will comply with any program operator requirements that are consistent with that program operators approved stewardship plan, even if the minimum thresholds described in subdivision (e) of Section 42984.7, as applicable, have been achieved.
(4)The program operator shall not be required to respond to offers pursuant to this paragraph until the program operators stewardship plan has been approved by the department.
(b)A program operator may suspend or terminate a collection site that does not comply with all applicable state, federal, or municipal laws and regulations or adhere to the rules and conditions imposed by the program operator pursuant to paragraph (5) of subdivision (g) of Section 42984.7.
(c)A collection site shall be operated to ensure that covered products are collected safely and handled in accordance with all applicable state, federal, and municipal laws and regulations and the rules and conditions of the stewardship plan. Authorized collectors may divert usable apparel, textiles, and textile articles without damage for sale in domestic secondhand markets.
(d)A program operator shall require all contractors to pay the state minimum wage.
4.Stewardship Plan for Covered Products 42984.5.(a)Within 12 months of the effective date of the regulations adopted by the department pursuant to Section 42984.1, a program operator shall develop and submit to the department a complete stewardship plan, in accordance with the requirements of this chapter, for the collection, transportation, repair, sorting, recycling, and the safe and proper management of covered products in the state. No program operator serving more than one producer may limit its stewardship plan for covered products to the covered products of the producers participating in that stewardship program.
(b)The department shall review the stewardship plan for compliance with this chapter and shall approve, disapprove, or conditionally approve the plan within 120 days of receipt of the plan. The department may consult with or submit a stewardship plan for review to the Department of Toxic Substances Control if the department determines it is necessary for making a determination of approval of a stewardship plan. If the department consults with the Department of Toxic Substances Control, then the department shall approve, disapprove, or conditionally approve the plan within 180 days of receipt of the plan.
(c)If the department disapproves a stewardship plan submitted by a program operator, the department shall explain how the stewardship plan does not comply with this chapter and provide written notice to the program operator within 30 days of disapproval. The program operator may resubmit to the department a revised stewardship plan within 60 days of the date the written notice was issued, and the department shall review the revised stewardship plan within 90 days of resubmittal. If a revised stewardship plan is disapproved by the department, a producer operating under the stewardship plan shall not be in compliance with this chapter until the department approves a stewardship plan submitted by a program operator that covers the producers products.
(d)Within 24 months of the effective date of the regulations adopted by the department pursuant to Section 42984.1, a program operator shall have a complete stewardship plan approved by the department and each producer shall be subject to an approved stewardship plan in order to be in compliance with this chapter.
(e)The approved plan shall be a public record, except that financial or sales data reported to the department by the program operator is not a public record for purposes of the California Public Records Act (Division 10 (commencing with Section 7920.000) 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 producer or distributor or to any other entity.
42984.6.(a)Within 12 months of the approval of the stewardship plan by the department pursuant to Section 42984.5, a program operator shall fully implement its stewardship program.
(b)An individual producer or a program operator may petition the department to investigate a noncompliant producer, and the department shall respond to the petition in a timely manner.
42984.7.A stewardship plan for covered products shall include all of the following:
(a)The names of producers and brands of covered products covered under the stewardship plan.
(b)A description of the consultative process by which the program operator consulted with the advisory committee created pursuant to subdivision (d) (c) of Section 42984.1 to receive advice on the development and implementation of the stewardship plan, including all correspondence between the program operator and the advisory committee and a detailed explanation of how and why the program operator decided to adopt or not adopt each recommendation by the advisory committee.
(c)(1)A description of the method to establish and administer a means for fully funding the stewardship program in a manner that equitably distributes the stewardship programs costs among the producers that are part of the stewardship organization that reflects production and sales volumes and the cost of repairing, recycling, or otherwise managing covered products. For producers that elect to meet the requirements of this chapter individually, without joining a stewardship organization, a description of the proposed method to establish and administer a means for fully funding the stewardship program.
(2)(A)The stewardship plan shall include a stewardship program budget, for the next three five calendar years, which includes a funding level and anticipated revenues and costs sufficient to cover the budgeted costs, including, but not limited to, administrative costs, operational costs, and capital costs, to operate the stewardship program in a prudent and responsible manner. Administrative costs shall include the departments anticipated actual, reasonable, and direct regulatory costs to implement and enforce this chapter as the criteria for all the costs are defined in the regulations adopted pursuant to Section 42984.1. For purposes of this paragraph, stewardship program implementation begins once the department approves a program operators stewardship plan, except the departments costs shall include actual, reasonable, and direct regulatory development costs and other startup regulatory costs incurred prior to stewardship plan submittal and approval.
(B)The stewardship program shall reevaluate the budget on an annual basis and adjust allocations for the five-year budget plan as needed.
(d)A description of methodologies for annually measuring, and meeting or exceeding the recycling efficiency rate or other criteria established by the department pursuant to subdivision (c) (b) of Section 42984.1, as applicable. If a minimum recycling rate has not been established by the department, a program operator shall instead include a target recycling efficiency rate for covered products recycled by the program operator.
(e)A description of how the program operator will provide for a free and convenient collection system for covered products in each county of the state that meets both of the following requirements:
(1)A minimum of 10 collection sites per county or one collection site per 25,000 people, whichever is greater, except as identified in this paragraph.
(A)A county with a population of 18,000 and under, as reported annually by the Department of Finance, shall have a minimum of three collection sites.
(B)A county with a population of between 18,001 and 50,000, as reported annually by the Department of Finance, shall have a minimum of four collection sites.
(C)A county with a population between 50,001 and 100,000, as reported annually by the department of Finance, shall have a minimum of eight collection sites.
(2)The collection sites in each county shall be spread throughout the county to facilitate widespread access and convenience.
(f)A description of how a program operator and its authorized collection sites will allow a consumer to drop off covered products at a collection site at no charge.
(g)A description of how collection sites will be authorized and managed, including all of the following:
(1)A description of the process by which entities and local jurisdictions can request to be a collection site pursuant to Section 42984.4.
(2)A description of how the program operator will provide to collection sites at no cost the appropriate containers for covered products, training, signage, safety guidance, and educational materials.
(3)An explanation of the process by which the program operator will provide for the collection and transport of covered products from the collection sites to an authorized sorter, or directly to an authorized repair business, or recycling facility.
(4)A description of how the program operator will maintain all collection and transport records and make them available to the department upon request.
(5)A list of all proposed rules, conditions and requirements for authorized collectors, authorized sorters, and authorized repair businesses, including a template proposed agreement for each of those types of entities, as applicable.
(h)A description of the process by which covered products will be sorted, processed, and recycled following collection at collection sites, including all of the following:
(1)A description of how covered products will be handled and managed according to the waste hierarchy as defined in Section 40051.
(2)A description of how covered products will be sorted by authorized sorters, including a description of how the flow of covered products to and from an authorized sorter will be tracked.
(3)A description of how the program operator will maximize the repair and recycling of all covered products.
(4)A description of how the program operator will minimize disposal of covered products collected by the program operator.
(5)A description of how the program operator will prioritize the use of sorting, repair, and recycling facilities located closer to the point of collection to minimize transportation-related emissions and increase accountability for the ultimate disposition of the covered products.
(6)A description of how the program will annually assess the efficacy of the collection, sorting, and transportation process.
(i)A comprehensive statewide education and outreach program designed to educate consumers and promote participation in the collection, repair, and recycling program offered by the program operator. At a minimum, the comprehensive statewide education and outreach program shall include all of the following:
(1)A description of the education and communications strategy being implemented to effectively promote participation in the stewardship program and provide the information necessary for effective participation by consumers, retailers, local jurisdictions, and others.
(2)An internet website that publicizes the location of collection sites and provides information to consumers on how to drop covered products at the free and convenient network of collection sites offered by the stewardship program, including any information reasonably necessary to safely and conveniently access the collection, repair, and recycling services offered by the program operator.
(3)All signage and materials required for collection sites by the program operator, and the method by which collection sites can access replacement materials at no cost to the collection site.
(4)A description of efforts to support participation by all California communities, including a description of efforts to communicate with consumers in languages other than English.
(5)A description of strategies, goals, and metrics used to determine the success of the statewide education and outreach program.
(A)The statewide education and outreach program shall promote the safe and proper management of covered products, including source reduction, environmentally preferable purchasing, and repairing covered products. This includes education and training for authorized collectors to incentivize domestic resale of usable textiles.
(B)The statewide education and outreach program shall not promote the disposal of covered products in a manner inconsistent with the services offered by the stewardship plan.
(C)The statewide education and outreach plan shall include information for consumers about how to avoid improper disposal of covered products.
(6)(A)A description of how the program operators will annually assess and evaluate the efficacy of the comprehensive statewide education and outreach program and periodically adjust strategies to maximize participation in the stewardship program.
(B)Any program operator serving more than one producer shall coordinate with other program operators on the education and outreach programs that they implement pursuant to this subdivision.
(j)Coordination with, and a description of the efforts and methods used to coordinate activities with, all of the following entities who are responsive to a request from the program operator:
(1)Other program operators.
(2)Existing textile collection, repair, and recycling programs.
(3)Community-based organizations that contact the program operator and that are qualified to run or support collection events.
(k)Consultation with the California Environmental Protection Agencys Environmental Justice Task Force regarding methods to supplement those of the program operator to collect covered products for repair or recycling in areas and communities that face unique challenges associated with proper waste management, such as poverty, language barriers, and illegal disposal.
(l)A contingency plan in the event the stewardship plan expires, is disapproved, or is revoked. The contingency plan shall describe how the stewardship plan objectives can be carried out in the absence of a plan, either by the program operator or through an entity such as an escrow company.
(m)Develop a program in coordination with other program operators to support commercial laundries for laundering-covered products that includes funding for microfiber filtration devices.
(n)Develop strategies to address counterfeit goods that are illegal for secondhand markets to resell pursuant to Section 350 of the Penal Code.
(o)Develop strategies to address green design challenges for covered products, such as, but not limited to compostability, reduction and removal of harmful chemicals, microfiber shedding, and mixed material blends.
42984.8.(a)In preparing a stewardship plan pursuant to Section 42984.7, and any updates to the plan pursuant to Section 42984.9, a program operator shall engage in a consultative process with the advisory committee created by the department pursuant to subdivision (d) of Section 42489.1. A program operator shall provide sufficient time and shall consider all written recommendations from the advisory committee during the plan development process.
(b)A program operator shall consider the advisory committees recommendations. If the producer or stewardship organization decides not to incorporate the advisory committees written recommendations into the plan, the program operator shall provide a brief written explanation to the department and the advisory committee that explains the basis for the decision and also indicates whether the program operator plans to incorporate the recommendations into a subsequent stewardship plan, subsequent amendments to the plan, or a subsequent annual report.
42984.9.(a)A program operator shall review its stewardship plan at least every five years after approval by the department and determine whether revisions to the plan are necessary.
(b)If a program operator determines that revisions to the plan are necessary, the program operator shall submit to the department a revised plan for review and approval employing the procedures set forth in Section 42984.5. The stewardship organization shall submit the revised plan pursuant to this subdivision within 90 days of the review deadline outlined pursuant to subdivision (a).
(c)If a program operator determines that no revisions to the plan are necessary, the program operator shall send a letter to the department no later than 30 days after the review deadline outlined in subdivision (a), explaining that the program operator has reviewed the plan, consulted with the advisory committee, and determined that no revisions are needed. The department may disapprove the program operators determination within 30 days of receipt of that determination if the department concludes that the program operator cannot implement the objectives of this chapter without revising the stewardship plan. In the event the department disapproves the program operators determination, the program operator shall submit to the department a revised stewardship plan for review and approval in accordance with Section 42984.5. The program operator shall submit the revised plan pursuant to this subdivision within 90 days of receipt of the departments disapproval.
5.Financial Provisions 42984.10.(a)No later than 90 days before a budget is submitted to the department, the department shall notify each program operator of each agencys respective anticipated actual and reasonable regulatory costs directly related to implementing and enforcing this chapter in relation to the program operators activities as the criteria for those costs are defined in the regulations adopted pursuant to Section 42984.1. This may include the actual and reasonable costs associated with regulatory regulation development pursuant to Section 42984.1 and other startup activities prior to stewardship plan submittal and approval, relative to the role of the program operators program compared to other programs.
(b)Program operators shall, on a schedule determined by the department, pay the department fees incurred to reimburse the department for incurred costs as described in subdivision (a). The fees shall not exceed the departments actual and reasonable regulatory costs to implement and enforce this chapter. The fees shall be paid by each producer, either individually, if the producer is complying with the requirements of this chapter individually, or through a stewardship organization.
(c)(1)The department shall deposit all moneys received from a program operator pursuant to this section into the Textile Stewardship Recovery Fund, which is hereby established in the State Treasury.
(2)Upon appropriation by the Legislature, moneys in the Textile Stewardship Recovery Fund shall be expended by the department to implement and enforce this chapter, as well as to reimburse any outstanding loans made from other funds used to finance regulation, development, and startup costs of the departments activities pursuant to this chapter.
(3)The money in the Textile Stewardship Recovery Fund shall not be expended for any other purpose.
42984.11.Each producer shall, either individually or through a stewardship organization, pay all administrative and operational costs associated with establishing and implementing the stewardship program in which it participates, including, but not limited to, the cost of collection, transportation, sorting, repairing, recycling, and the safe and proper management of covered products.
6.Records, Audits, and Reports 42984.12.(a)A program operator shall keep board minutes, books, and records that clearly reflect the activities and transactions of the program operator.
(b)A program operator shall retain, at the program operators expense, an independent public accountant, certified in the United States, to annually audit the accounting books of the program operator.
(c)The program operator shall include the audit in its annual report submitted pursuant to Section 42984.13 commencing within 18 months of plan approval by the department. The department shall review the audit for compliance with this chapter and consistency with the program operators stewardship plan. The department shall notify the program operator of any compliance issues or inconsistencies.
(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 program operator may obtain copies of the departments audit upon request.
(e)The department shall not publicly disclose any confidential proprietary or trade secret information in an audit conducted pursuant to this section.
42984.13.A program operator shall annually submit to the department, in the form and manner, and by the date, determined by the department, an annual report, which the department shall make publicly available that includes all of the following information for the preceding calendar year:
(a)The program operators costs and revenues.
(b)(1)An estimate of the quantity of covered products sold in or into the state by the producers covered by the program operators stewardship plan, as determined by the best available commercial information, potentially including the application of California population data to the national sales information and the discarded covered textiles collected for repair and recycling through the stewardship program.
(2)The estimate described in paragraph (1) shall include an estimate of covered products sold into the state, broken down by fiber type and United States Harmonized Tariff Schedule (HTS) number.
(c)A list of the stewardship programs collection sites, by name, location, and type.
(d)The total weight of covered products, respectively, that were collected, broken down by fiber type categories.
(e)A list of each authorized sorter, authorized repair business, and textile recycling facility used by the stewardship program, including both of the following:
(1)Name and location.
(2)Total weight of covered products handled by each location.
(f)An updated list of the names and corporate mailing addresses of producers, as described in subdivision (a) of Section 42984.7 and brands of covered textiles covered under the stewardship plan.
(g)The total weight and number of covered textiles sold in or into the state attributed to a producer, who is a registered participant of the program operators plan, which are collected in the state and repaired or recycled by the program operator during the preceding calendar year, including a description of the methodology and information used to determine and calculate these values.
(h)A complete accounting of the ultimate disposition of all covered products collected by the program operator, including the total weight of covered products that were repaired and recycled.
(i)A description of methods used to collect, transport, repair, and recycle covered products by the program operator.
(j)A description of outreach efforts and education, including, but not limited to, education and outreach provided to consumers, collection sites, manufacturers, distributors, and retailers by the program operator for the purpose of promoting the collection, repair, reuse and recycling of covered products. This includes messaging on environmentally preferable purchasing and repairing covered textiles.
(k)Findings from the evaluation of the comprehensive statewide education and outreach program required by paragraph (8) of subdivision (i) of Section 42984.7.
(l)A description of consultation with the California Environmental Protection Agencys Environmental Justice Task Force and other relevant stakeholders for collecting covered textiles for repair and recycling in areas and communities that face unique challenges.
(m)A description of actions taken by the program operator to pay all administrative and operational costs associated with establishing and implementing the stewardship program.
(n)A report on activities the program operator has undertaken to prioritize the use of sorting, repair, and recycling facilities located closer to the point of generation to minimize transportation emissions and increase accountability for the ultimate disposition of collected covered products.
(o)The progress toward attaining the goals included in the program operators stewardship plan.
(p)Any modifications or revisions to the stewardship plan.
(q)Any other information deemed relevant by the program operator for the department to determine compliance with the approved stewardship plan.
(r)Any other information required by regulations promulgated pursuant to Section 42984.1.
42984.14.(a)No later than 120 days after the date the department receives the annual report submitted by a program operator pursuant to Section 42984.13, the department shall notify the program operator if the annual report is compliant or noncompliant.
(b)(1)If the department determines that the annual report is noncompliant due to failure to meet the requirements of Section 42984.13, the program operator shall resubmit a revised annual report addressing the departments written reasons for its decision within 30 days of the departments response.
(2)The department, within 60 days from the date a program operator resubmits a revised annual report, shall determine whether the annual report is compliant or noncompliant.
(3)If the department determines a revised annual report submitted pursuant to paragraph (1) is noncompliant, the program operator may submit only one additional revised annual report, subject to review in accordance with paragraph (2).
7.Enforcement42984.15.(a)Within 24 months of the effective date of regulations pursuant to Section 42984.1, and on or before July 1 of each year thereafter, the department shall post on its internet website a list of producers that are in compliance with this chapter. The department shall list, as appropriate, the reported brands of covered products for each producer.
(b)A producer that is not listed on the departments internet website pursuant to subdivision (a) that demonstrates compliance with this chapter before the next list is posted by the department may either be added to the internet website or be provided a certification letter from the department stating that the producer of a covered product is in compliance with this chapter.
(c)(1)A retailer, importer, or distributor shall monitor the departments internet website to determine if a producer, brand, or covered product is in compliance with this chapter for that brand of covered product.
(2)Except as provided in subdivision (d), on and after the date a stewardship plan is approved by the department pursuant to Section 42984.5, a retailer, importer, or distributor shall not sell, distribute, offer for sale, or import a covered product in or into the state for sale in the state unless the producer of the covered product is listed as in compliance pursuant to this section for that brand and covered product.
(d)(1)Notwithstanding paragraph (2) of subdivision (c), a retailer, importer, or distributor may sell, offer for sale, import, or distribute a covered product if, on the date the retailer or distributor sells or offers for sale the covered product in or into the state, the producer, brand, or covered product was listed as compliant on the departments internet website.
(2)Notwithstanding paragraph (2) of subdivision (c), a retailer or distributor may, for any existing inventory in stock before the initial list was posted by the department pursuant to subdivision (a), sell or distribute that inventory for sale in or into the state.
(e)(1)If the department determines a producer is not in compliance with this chapter, the department shall remove the producer, along with its brands and covered products, from the list of compliant producers posted on the departments internet website pursuant to subdivision (a).
(2)The department shall list on its internet website a producer, along with its brands and covered products, if the department subsequently determines that the producer is in compliance with this chapter.
42984.16.(a)The department may impose an administrative civil penalty on a producer, program operator, stewardship organization, manufacturer, distributor, retailer, or importer that is in violation of this chapter. The amount of the administrative civil penalty shall not exceed ten thousand dollars ($10,000) per day, but, if the violation is intentional, knowing, or reckless, the department may impose an administrative civil penalty of not more than fifty thousand dollars ($50,000) per day. The department shall establish, through regulations adopted by the department pursuant to Section 42984.1, a process that shall include an informal hearing process by which the penalties will be assessed.
(b)The department shall deposit all penalties collected pursuant to this section into the Textile Stewardship Recovery Penalty Account, which is hereby created in the Textile Stewardship Recovery Fund. These moneys shall be available for expenditure upon appropriation by the Legislature.
(c)This chapter does not limit or restrict the departments enforcement authority pursuant to Chapter 6.5 (commencing with Section 25100) of Division 20 of the Health and Safety Code and its implementing regulations, if any.
(d)The Administrative Adjudication Bill of Rights, as set forth in Chapter 4.5 (commencing with Section 11425.10) of Part 1 of Division 3 of Title 2 of the Government Code, applies to hearings conducted under this chapter and mandates minimum due process.
42984.17.(a)Upon a written finding that a producer, program operator, stewardship organization, manufacturer, distributor, retailer, or importer site has not met a material requirement of this chapter, in addition to any other penalties authorized under this chapter, the department may, after affording the entity a reasonable opportunity to respond to, or rebut, the finding, take any of the following actions to ensure compliance with the requirements of this chapter:
(1)Revoke the program operators stewardship plan approval or require the program operator to resubmit the plan.
(2)Remove the producer, along with its brands and covered textiles from the departments list of compliant producers, as specified in Section 42984.15.
(3)Impose additional compliance reporting requirements.
(4)Post the noncompliant entity onto a list of noncompliant entities.
(b)If a stewardship plan is revoked pursuant to paragraph (1) of subdivision (a) or terminated by the program operator that submitted the plan, a producer no longer subject to that plan may, without being subject to administrative civil penalties pursuant to Section 42984.16, sell or offer for sale covered products in or into the state for a period of up to one year after the stewardship plan was terminated or revoked if the producer continues to operate under the most recent approved stewardship plan to which the producer was subject.
42984.18.(a)A producer, program operator, stewardship organization, manufacturer, distributor, retailer, or importer shall do both of the following:
(1)Upon request, provide the department with reasonable and timely access, as determined by the department, 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)(1)The department may impose administrative civil penalties pursuant to Section 42984.16 on a producer, program operator, stewardship organization, manufacturer, distributor, retailer, or importer that fails to provide the department with the access required pursuant to this section.
(2)The department may post a notice on the departments internet website that is maintained pursuant to Section 42984.15 that a producer that fails to provide the department with access pursuant to this section, along with the producers brands and covered products, is no longer in compliance with this chapter.
42984.19.After the time for judicial review under Section 11523 of the Government Code has expired, the department may apply to the small claims court or superior court, depending on the jurisdictional amount and any other remedy sought, in the county where the penalties, restitution, or other remedy was imposed by the department, for a judgment to collect any unpaid civil penalties or restitution or to enforce any other remedy provided by this chapter. The application, which shall include a certified copy of the final agency order or decision, shall constitute a sufficient showing to warrant the issuance of the judgment. The court clerk shall enter the judgment immediately in conformity with the application. The judgment so entered shall have the same force and effect as and shall be subject to all the provisions of law relating to a judgment in a civil action and may be enforced in the same manner as any other judgment of the court. The court shall make enforcement of the judgment a priority.
8.Antitrust Immunity42984.20.(a)Except as provided in subdivision (c), an action specified in subdivision (b) that is taken by a program operator 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) applies to all of the following actions taken by a program operator:
(1)The creation, implementation, or management of a stewardship plan approved or conditionally approved by the department pursuant to Article 3 (commencing with Section 42984.4) and the determination of the types or quantities of covered products repaired, reused, recycled, or otherwise managed pursuant to a stewardship plan.
(2)The determination of the cost and structure of an approved stewardship plan.
(3)The establishment, administration, collection, or disbursement of a charge associated with funding the implementation of this chapter.
(c)Subdivision (a) does not apply to an agreement that does any of the following:
(1)Fixes a price of or for covered products, except for an agreement related to costs or charges associated with participation in a stewardship plan approved or conditionally approved by the department and otherwise in accordance with this chapter.
(2)Fixes the output or production of covered products.
(3)Restricts the geographic area in which, or customers to whom, covered products will be sold.
SEC. 2.The Legislature finds and declares that Section 1 of this act, which adds Section 42984.5 to the Public Resources Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
It is in the best interest of the public to provide limited protection of certain financial, production, and sales data of program participants, in order to protect the interests of businesses and the privacy of their data regarding their customers.
SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
For purposes of this chapter, the following definitions apply:
(a)Apparel means clothing and accessory items intended for regular wear or formal occasions, including, but not limited to, undergarments, shirts, pants, skirts, dresses, overalls, bodysuits, costumes, vests, dancewear, suits, saris, scarves, tops, leggings, school uniforms, leisurewear, athletic wear, sports uniforms, everyday swimwear, formal wear, onesies, bibs, diapers, footwear, and everyday uniforms for workwear. Clothing items intended for regular wear or formal occasions does not include personal protective equipment or clothing items for exclusive use by the United States military.
(b)Authorized collector means a person or entity that has entered into an agreement with a program operator to collect covered products.
(c)Authorized sorter means a person or entity that has entered into an agreement with a program operator to sort covered products collected by authorized collectors.
(d)Authorized repair business means a person or entity that has entered into an agreement with a program operator to repair covered products for resale after collection by an authorized collector or after sorting by an authorized sorter.
(e)Brand means a trademark, including both a registered trademark and an unregistered trademark, a logo, a name, a symbol, a word, an identifier, or a traceable mark that identifies a covered textile and identifies the owner or licensee of the brand.
(f)Collection site means a permanent or temporary location operated by an authorized collector at which covered products are collected and prepared for transport in accordance with the requirements of this chapter.
(g)Consumer means an owner of a covered product, including a person, business, corporation, limited partnership, nonprofit organization, or governmental entity, and includes the ultimate purchaser, owner, or lessee of a covered product, who is not, as to that covered product, the distributor, importer, producer, recycler, retailer, or stewardship organization.
(h)(1)Covered Product means any apparel, textile, or textile article that is unsuitable for reuse by a consumer in its current state or condition.
(2)Covered product does not include a product covered under the Used Mattress Recovery and Recycling Act (Chapter 21 (commencing with Section 42985)).
(i)Department means the Department of Resources Recycling and Recovery or a successor agency.
(j)Distributor means a company that has a contractual relationship with one or more producers to market and sell covered textiles to a retailer.
(k)Importer means either of the following:
(1)A person 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 covered textile that is sold, distributed for sale, or offered for sale in or into the state that was manufactured or assembled by a company outside of the United States.
(2)A person importing into the state for sale, distributing for sale, or offering for sale in the state a covered textile that was manufactured or assembled by a company physically located outside of the state.
(l)Local jurisdiction means a city, county, city and county, or a regional agency formed pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code or Article 3 (commencing with Section 40970) of Chapter 1 of Part 2 of this code, or a special district that provides solid waste collection services.
(m)Mail-back program means a method of collecting covered products using prepaid, preaddressed mailing envelopes that are reusable, recyclable, or compostable.
(n)Person has the same meaning as set forth in Section 40170.
(o)(1)Producer means a person who manufactures a covered product and who owns or is the licensee of the brand or trademark under which that covered product is sold, offered for sale, or distributed for sale in or into the state.
(2)If there is no person in the state who is the producer for purposes of paragraph (1), the producer of the covered product is the owner of a brand or trademark or, if the owner is not in the state, the exclusive licensee of a brand or trademark under which the covered product is sold, imported for sale, offered for sale, or distributed for sale in or into the state. For purposes of this subdivision, an exclusive licensee is a person holding the exclusive right to use a trademark or brand in the state in connection with the manufacture, sale, or distribution for sale in or into the state of the covered product.
(3)If there is no person in the state who is the producer for purposes of paragraph (1) or (2), the producer of the covered product is the person who sells, offers for sale, or is the importer or distributor of the covered textile in or into the state for sale in or into the state.
(4)For purposes of this chapter, the sale of a covered textile shall be deemed to occur in the state if the covered textile is delivered to the consumer in the state.
(5)Producer does not include a seller of secondhand apparel, secondhand textiles, or secondhand textile articles.
(p)Program operator means a producer, or a stewardship organization on behalf of a group of producers, which is responsible for implementing a stewardship program in accordance with the requirements of this chapter.
(q)Recycler means a person or entity who recovers fiber, yarn, or fabric and reuses or reprocesses that recovered fiber, yarn, or fabric into new, usable products.(r)(q)Recycling has the same meaning as set forth in subdivision (a) of Section 25121.1 of the Health and Safety Code. Recycling does not include any of the following:
(1)Combustion.
(2)Incineration.
(3)Energy generation.
(4)Fuel production.
(5)Beneficial reuse in the construction and operation of a solid waste landfill, including use of alternative daily cover.
(6)Other forms of disposal, as defined in subdivision (b) of Section 40192.
(s)(r)Recycling efficiency rate means the ratio of the weight of covered products recycled by a program operator to the weight of those covered products collected by the program operator.
(t)(s)Repair means any alteration or improvement of damaged covered materials deemed worth the cost of repair by criteria established by the stewardship plan, including, but not limited to, any of the following:
(1)Washing at a commercial laundry.
(2)Upcycling, redesign, and repurposing.
(3)Mending rips, holes, seams, and hems.
(4)Removing and repairing surface damages, such as pilling, stain removal, or abrasion.
(5)Securing and reattaching buttons and other fastenings.
(6)Dying, redying, overdying, or printing of images on covered products.
(u)(t)Retailer means a person who sells or offers for sale a covered product in or into the state to a person through any means, including, but not limited to, sales outlets, catalogs, the telephone, the internet, or any electronic means.
(v)(u)Secondhand apparel means any apparel items that has been previously owned by a consumer.
(w)(v)Secondhand textile means a usable textile item that has been previously owned by a consumer.
(x)(w)Secondhand textile article means a usable textile article that has been previously owned by a consumer.
(y)(x)Secondhand markets means a retailer who sells secondhand apparel, secondhand textiles, or secondhand textile articles, including, but not limited to, thrifts, online resale platforms, and flea markets.
(z)(y)Stewardship organization means an organization exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986 (26 U.S.C. Sec. 501(c)(3)) that is established by a group of producers in accordance with this chapter to develop and implement a stewardship program.
(aa)(z)Stewardship plan or plan means a plan developed by program operator pursuant to this chapter for the collection, transportation, repair, recycling, and the safe and proper management of covered products.
(ab)(aa)Stewardship program means a program established by a program operator pursuant to this chapter for the free at drop off, convenient, and safe collection, transportation, repair, recycling, and otherwise proper management of covered products.
(ac)(ab)Textile means any item made in whole or in part from a natural, manmade, or synthetic fiber, yarn, or fabric, and includes, but is not limited to, leather, cotton, silk, jute, hemp, wool, viscose, nylon, or polyester. Textile does not include disposable hygiene products made from paper, including, but not limited to, toilet paper, paper towels or tissues, or disposable absorbent hygiene products.
(ad)(ac)Textile articles means textile goods of a type customarily used in households and businesses, and include, but are includes, but is not limited to, apparel, accessories, handbags, backpacks, draperies, shower curtains, furnishings, upholstery, beddings, bedding, towels, napkins, and tablecloths. Textile articles does not include any of the following:
(1)Either of the following items regulated under the Safer Consumer Products Program (Chapter 55 (Commencing with Section 69501) of Division 4.5 of Title 22 of the California Code of Regulations):
(A)Carpets and rugs.
(B)Treatments containing polyfluoroalkyl for use on converted textiles or leathers.
(2)Component parts from a vehicle, as defined in Section 670 of the Vehicle Code, including, but not limited to, an off-highway motor vehicle, as defined in Section 38012 of the Vehicle Code, such as seats and carpets or synthetic flooring.
(3)Component parts from a vessel, as defined in Section 21 of the Harbors and Navigation Code, such as seats, synthetic flooring, and boat covers.
(4)Filtration media and filter products used in industrial applications, including, but not limited to, chemical or pharmaceutical manufacturing, and environmental control technologies.
(5)Textile articles used in or for laboratory analysis and testing.
(6)Component parts from an aircraft, as defined in Section 21012 of the Public Utilities Code.
(7)Stadium shades or other architectural fabric structures. For purposes of this subparagraph, architectural fabric structure means a permanent fabric structure that is intrinsic to a buildings design or construction.
(ad)Textile recycler means a person or entity that recovers fiber, yarn, or fabric and reprocesses that recovered fiber, yarn, or fabric into new, usable products.
42984.1.(a)The department, acting in accordance with Article 1 (commencing with Section 11340) to Article 8 (commencing with Section 11350), inclusive, of the Administrative Procedure Act, as set forth in Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, shall adopt regulations to implement this chapter with an effective date of no earlier than December 31, 2025.
(b)Beginning January 1, 2032, the department may adjust, through regulations adopted by the department, the minimum required collection sites to ensure that consumers have sufficient and convenient access to collection sites if the department determines, after consultation with program operators and the advisory committee, that an adjustment will increase the collection of covered products.
(c)Beginning January 1, 2032, the department may establish, through regulations adopted by the department, a minimum recycling efficiency rate for covered products collected and recycled by program operators. The department may, if it determines necessary, establish different recycling efficiency rates for different covered products.
(d)(1)No later than 90 days after the effective date of regulations adopted pursuant to this section, the department shall create appoint an advisory body committee for the purposes of consulting with producers and stewardship organizations with approved plans. Membership in the advisory committee may include, but is not limited to, representatives from local governments, recyclers, retailers, authorized collectors, authorized sorters, authorized repair businesses, nongovernmental organizations, environmental organizations, community-based justice and public health organizations, and the solid waste industry.
(2)Participation on the advisory body committee shall be voluntary.
(3)The advisory body committee is not a state body for purposes of as that term is used in Section 11121 of the Government Code, but shall provide advanced public notice about meetings, allow public participation in all meetings, and vote on written recommendations at public meetings.
2.Producers42984.2.(a)In order to comply with the requirements of this chapter, a producer may establish and implement a stewardship program independently, or as part of a group of producers through membership in a stewardship organization exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986 (21 U.S.C. 501(c)(3)). Producers may establish one or more stewardship organizations to comply with the requirements of this chapter.
(1)A producer shall not sell, distribute for sale, offer for sale, or import for sale a covered product in or into this state unless the producer is in compliance with this chapter and any regulations in effect and adopted pursuant to Section 42984.1.
(2)Every producer shall, no later than 180 days after the effective date of this chapter, notify all persons through which it is selling, distributing, importing, or offering for sale a covered product in or into the state for sale in or into the state whether it will comply with this chapter individually or through a stewardship organization.
(3)Each producer covered under a stewardship organization shall register with that stewardship organization in accordance with the procedures and requirements established by that stewardship organization and shall comply with those procedures and requirements.
(b)A producer is not in compliance with this chapter and is subject to penalties pursuant to Article 7 (commencing with Section 42984.15) if, commencing two years from the adoption of regulations pursuant to Section 42984.1, a covered product sold or offered for sale by the producer is not subject to an approved stewardship plan that has been approved by the department pursuant to Section 42984.5.
42984.3.(a)No later than 180 days after the effective date of this chapter, individual producers shall provide to the department, in a form and manner established by the department, a list of covered products and brands of covered products that the producer sells, distributes for sale, imports for sale, or offers for sale in or into the state.
(b)A producer shall update the list described in subdivision (a) and provide the updated list to the department on or before January 15 of each year or upon request of the department.
3.Program Operators 42984.4.(a)(1)A program operator shall include as a collection site under its stewardship program any entity that offers in writing to participate in the stewardship program and agrees to comply with any program operator requirements that are consistent with that program operators approved stewardship plan, even if the minimum thresholds described in subdivision (e) of Section 42984.7 as applicable, have been achieved.
(2)A program operator shall include as a collection site under its stewardship program any local jurisdiction that offers in writing to participate in the stewardship program and agrees to comply with any program operator requirements that are consistent with that program operators approved stewardship plan, even if the minimum thresholds described in subdivision (e) of Section 42984.7, as applicable, have been achieved.
(3)A program operator shall include the offering entity or local jurisdiction as a collection site in the stewardship program within 90 days of receiving the written offer to participate, confirming that the offering entity will comply with any program operator requirements that are consistent with that program operators approved stewardship plan, even if the minimum thresholds described in subdivision (e) of Section 42984.7, as applicable, have been achieved.
(4)The program operator shall not be required to respond to offers pursuant to this paragraph until the program operators stewardship plan has been approved by the department.
(b)A program operator may suspend or terminate a collection site that does not comply with all applicable state, federal, or municipal laws and regulations or adhere to the rules and conditions imposed by the program operator pursuant to paragraph (5) of subdivision (g) of Section 42984.7.
(c)A collection site shall be operated to ensure that covered products are collected safely and handled in accordance with all applicable state, federal, and municipal laws and regulations and the rules and conditions of the stewardship plan. Authorized collectors may divert usable apparel, textiles, and textile articles without damage for sale in domestic secondhand markets.
(d)A program operator shall require all contractors to pay the state minimum wage.
4.Stewardship Plan for Covered Products 42984.5.(a)Within 12 months of the effective date of the regulations adopted by the department pursuant to Section 42984.1, a program operator shall develop and submit to the department a complete stewardship plan, in accordance with the requirements of this chapter, for the collection, transportation, repair, sorting, recycling, and the safe and proper management of covered products in the state. No program operator serving more than one producer may limit its stewardship plan for covered products to the covered products of the producers participating in that stewardship program.
(b)The department shall review the stewardship plan for compliance with this chapter and shall approve, disapprove, or conditionally approve the plan within 120 days of receipt of the plan. The department may consult with or submit a stewardship plan for review to the Department of Toxic Substances Control if the department determines it is necessary for making a determination of approval of a stewardship plan. If the department consults with the Department of Toxic Substances Control, then the department shall approve, disapprove, or conditionally approve the plan within 180 days of receipt of the plan.
(c)If the department disapproves a stewardship plan submitted by a program operator, the department shall explain how the stewardship plan does not comply with this chapter and provide written notice to the program operator within 30 days of disapproval. The program operator may resubmit to the department a revised stewardship plan within 60 days of the date the written notice was issued, and the department shall review the revised stewardship plan within 90 days of resubmittal. If a revised stewardship plan is disapproved by the department, a producer operating under the stewardship plan shall not be in compliance with this chapter until the department approves a stewardship plan submitted by a program operator that covers the producers products.
(d)Within 24 months of the effective date of the regulations adopted by the department pursuant to Section 42984.1, a program operator shall have a complete stewardship plan approved by the department and each producer shall be subject to an approved stewardship plan in order to be in compliance with this chapter.
(e)The approved plan shall be a public record, except that financial, production, financial or sales data reported to the department by the program operator is not a public record for purposes of the California Public Records Act (Division 10 (commencing with Section 7920.000) 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 producer or distributor or to any other entity.
42984.6.(a)Within 12 months of the approval of the stewardship plan by the department pursuant to Section 42984.5, a program operator shall fully implement its stewardship program.
(b)An individual producer or a program operator may petition the department to investigate a noncompliant producer, and the department shall respond to the petition in a timely manner.
42984.7.A stewardship plan for covered products shall include all of the following:
(a)The names of producers and brands of covered products covered under the stewardship plan.
(b)A description of the consultative process by which the program operator consulted with the advisory body committee created pursuant to subdivision (d) of Section 42984.1 to receive advice on the development and implementation of the stewardship plan, including all correspondence between the program operator and the advisory committee and a detailed explanation of how and why the program operator decided to adopt or not adopt each recommendation by the advisory committee.
(c)(1)A description of the method to establish and administer a means for fully funding the stewardship program in a manner that equitably distributes the stewardship programs costs among the producers that are part of the stewardship organization. organization that reflects production and sales volumes and the cost of repairing, recycling, or otherwise managing covered products. For producers that elect to meet the requirements of this chapter individually, without joining a stewardship organization, a description of the proposed method to establish and administer a means for fully funding the stewardship program.
(2)The stewardship plan shall include a stewardship program budget, for the next three calendar years, which includes a funding level and anticipated revenues and costs sufficient to cover the budgeted costs, including, but not limited to, administrative costs, operational costs, and capital costs, to operate the stewardship program in a prudent and responsible manner. Administrative costs shall include the departments anticipated actual, reasonable, and direct regulatory costs to implement and enforce this chapter as the criteria for all the costs are defined in the regulations adopted pursuant to Section 42984.1. For purposes of this paragraph, stewardship program implementation begins once the department approves a program operators stewardship plan, except the departments costs shall include actual, reasonable, and direct regulatory development costs and other startup regulatory costs incurred prior to stewardship plan submittal and approval.
(d)A description of methodologies for measuring, and meeting or exceeding the recycling efficiency rate established by the department pursuant to subdivision (c) of Section 42984.1, as applicable. If a minimum recycling rate has not been established by the department, a program operator shall instead include a target recycling efficiency rate for covered products recycled by the program operator.
(e)A description of how the program operator will provide for a free and convenient collection system for covered products in each county of the state that meets both of the following requirements:
(1)A minimum of 10 collection sites per county or one collection site per 25,000 people, whichever is greater, except as identified in this paragraph.
(A)A county with a population of 18,000 and under, as reported annually by the Department of Finance, shall have a minimum of three collection sites.
(B)A county with a population of between 18,001 and 50,000, as reported annually by the Department of Finance, shall have a minimum of four collection sites.
(C)A county with a population between 50,001 and 100,000, as reported annually by the department of Finance, shall have a minimum of eight collection sites.
(2)The collection sites in each county shall be spread throughout the county to facilitate widespread access and convenience.
(f)A description of how a program operator and its authorized collection sites will allow a consumer to drop off covered products at a collection site at no charge.
(g)A description of how collection sites will be authorized and managed, including all of the following:
(1)A description of the process by which entities and local jurisdictions can request to be a collection site pursuant to Section 42984.4.
(2)A description of how the program operator will provide to collection sites at no cost the appropriate containers for covered products, training, signage, safety guidance, and educational materials.
(3)An explanation of the process by which the program operator will provide for the collection and transport of covered products from the collection sites to an authorized sorter, or directly to an authorized repair business, or recycling facility.
(4)A description of how the program operator will maintain all collection and transport records and make them available to the department upon request.
(5)A list of all proposed rules, conditions and requirements for authorized collectors, authorized sorters, and authorized repair businesses, including a template proposed agreement for each of those types of entities, as applicable.
(h)A description of the process by which covered products will be sorted, processed, and recycled following collection at collection sites, including all of the following:
(1)A description of how covered products will be handled and managed according to the waste hierarchy as defined in Section 40051.
(2)A description of how covered products will be sorted by authorized sorters, including a description of how the flow of covered products to and from an authorized sorter will be tracked.
(3)A description of how the program operator will maximize the repair and recycling of all covered products.
(4)A description of how the program operator will minimize disposal of covered products collected by the program operator.
(5)A description of how the program operator will prioritize the use of sorting, repair, and recycling facilities located closer to the point of collection to minimize transportation-related emissions and increase accountability for the ultimate disposition of the covered products.
(i)A comprehensive statewide education and outreach program designed to educate consumers and promote participation in the collection, repair, and recycling program offered by the program operator. At a minimum, the comprehensive statewide education and outreach program shall include all of the following:
(1)A description of the education and communications strategy being implemented to effectively promote participation in the stewardship program and provide the information necessary for effective participation by consumers, retailers, local jurisdictions, and others.
(2)An internet website that publicizes the location of collection sites and provides information to consumers on how to drop covered products at the free and convenient network of collection sites offered by the stewardship program, including any information reasonably necessary to safely and conveniently access the collection, repair, and recycling services offered by the program operator.
(3)All signage and materials required for collection sites by the program operator, and the method by which collection sites can access replacement materials at no cost to the collection site.
(4)A description of efforts to support participation by all California communities, including a description of efforts to communicate with consumers in languages other than English.
(5)A description of strategies, goals, and metrics used to determine the success of the statewide education and outreach program.
(A)The statewide education and outreach program shall promote the safe and proper management of covered products, including source reduction, environmentally preferable purchasing, and repairing covered products. This includes education and training for authorized collectors to incentivize domestic resale of usable textiles.
(B)The statewide education and outreach program shall not promote the disposal of covered products in a manner inconsistent with the services offered by the stewardship plan.
(C)The statewide education and outreach plan shall include information for consumers about how to avoid improper disposal of covered products.
(6)(A)A description of how the program operators will annually assess and evaluate the efficacy of the comprehensive statewide education and outreach program and periodically adjust strategies to maximize participation in the stewardship program.
(B)Any program operator serving more than one producer shall coordinate with other program operators on the education and outreach programs that they implement pursuant to this subdivision.
(j)Coordination with, and a description of the efforts and methods used to coordinate activities with, all of the following entities who are responsive to a request from the program operator:
(1)Other program operators.
(2)Existing textile collection, repair, and recycling programs.
(3)Community-based organizations that contact the program operator and that are qualified to run or support collection events.
(k)Consultation with the California Environmental Protection Agencys Environmental Justice Task Force regarding methods to supplement those of the program operator to collect covered products for repair or recycling in areas and communities that face unique challenges associated with proper waste management, such as poverty, language barriers, and illegal disposal.
(l)A contingency plan in the event the stewardship plan expires, is disapproved, or is revoked. The contingency plan shall describe how the stewardship plan objectives can be carried out in the absence of a plan, either by the program operator or through an entity such as an escrow company.
(m)Develop a program in coordination with other program operators to support commercial laundries for laundering-covered products that includes funding for microfiber filtration devices.
(n)Develop strategies to address counterfeit goods that are illegal for secondhand markets to resell pursuant to Section 350 of the Penal Code.
(o)Develop strategies to address green design challenges for covered products, such as, but not limited to compostability, reduction and removal of harmful chemicals, microfiber shedding, and mixed material blends.
42984.8.(a)In preparing a stewardship plan pursuant to Section 42984.7, and any updates to the plan pursuant to Section 42984.9, a program operator shall engage in a consultative process with the advisory body committee created by the department pursuant to subdivision (d) of Section 42489.1. A program operator shall provide sufficient time and shall consider all written recommendations from the advisory body committee during the plan development process.
(b)A program operator shall consider the advisory bodys committees recommendations. If the producer or stewardship organization decides not to incorporate the advisory bodys committees written recommendations into the plan, the program operator shall provide a brief written explanation to the department and the advisory body committee that explains the basis for the decision and also indicates whether the program operator plans to incorporate the recommendations into a subsequent stewardship plan, subsequent amendments to the plan, or a subsequent annual report.
42984.9.(a)A program operator shall review its stewardship plan at least every five years after approval by the department and determine whether revisions to the plan are necessary.
(b)If a program operator determines that revisions to the plan are necessary, the program operator shall submit to the department a revised plan for review and approval employing the procedures set forth in Section 42984.5. The stewardship organization shall submit the revised plan pursuant to this subdivision within 90 days of the review deadline outlined pursuant to subdivision (a).
(c)If a program operator determines that no revisions to the plan are necessary, the program operator shall send a letter to the department no later than 30 days after the review deadline outlined in subdivision (a), explaining that the program operator has reviewed the plan, consulted with the advisory committee, and determined that no revisions are needed. The department may disapprove the program operators determination within 30 days of receipt of that determination if the department concludes that the program operator cannot implement the objectives of this chapter without revising the stewardship plan. In the event the department disapproves the program operators determination, the program operator shall submit to the department a revised stewardship plan for review and approval in accordance with Section 42984.5. The program operator shall submit the revised plan pursuant to this subdivision within 90 days of receipt of the departments disapproval.
5.Financial Provisions 42984.10.(a)No later than 90 days before a budget is submitted to the department, the department shall notify each program operator of each agencys respective anticipated actual and reasonable regulatory costs directly related to implementing and enforcing this chapter in relation to the program operators activities as the criteria for those costs are defined in the regulations adopted pursuant to Section 42984.1. This may include the actual and reasonable costs associated with regulatory regulation development pursuant to Section 42984.1 and other startup activities prior to stewardship plan submittal and approval, relative to the role of the program operators program compared to other programs.
(b)Program operators shall, on a schedule determined by the department, pay the department fees incurred to reimburse the department for incurred costs as described in subdivision (a). The fees shall not exceed the departments actual and reasonable regulatory costs to implement and enforce this chapter. The fees shall be paid by each producer, either individually, if the producer is complying with the requirements of this chapter individually, or through a stewardship organization.
(c)(1)The department shall deposit all moneys received from a program operator pursuant to this section into the Textile Stewardship Recovery Fund, which is hereby established in the State Treasury.
(2)Upon appropriation by the Legislature, moneys in the Textile Stewardship Recovery Fund shall be expended by the department to implement and enforce this chapter, as well as to reimburse any outstanding loans made from other funds used to finance regulation, development, and startup costs of the departments activities pursuant to this chapter.
(3)The money in the Textile Stewardship Recovery Fund shall not be expended for any other purpose.
42984.11.Each producer shall, either individually or through a stewardship organization, pay all administrative and operational costs associated with establishing and implementing the stewardship program in which it participates, including, but not limited to, the cost of collection, transportation, sorting, repairing, recycling, and the safe and proper management of covered products.
6.Records, Audits, and Reports 42984.12.(a)A program operator shall keep board minutes, books, and records that clearly reflect the activities and transactions of the program operator.
(b)A program operator shall retain, at the program operators expense, an independent public accountant, certified in the United States, to annually audit the accounting books of the program operator.
(c)The program operator shall include the audit in its annual report submitted pursuant to Section 42984.13 commencing within 18 months of plan approval by the department. The department shall review the audit for compliance with this chapter and consistency with the program operators stewardship plan. The department shall notify the program operator of any compliance issues or inconsistencies.
(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 program operator may obtain copies of the departments audit upon request.
(e)The department shall not publicly disclose any confidential proprietary or trade secret information in an audit conducted pursuant to this section.
42984.13.A program operator shall annually submit to the department, in the form and manner, and by the date, determined by the department, an annual report, which the department shall make publicly available that includes all of the following information for the preceding calendar year:
(a)The program operators costs and revenues.
(b)(1)An estimate of the quantity of covered products sold in or into the state by the producers covered by the program operators stewardship plan, as determined by the best available commercial information, potentially including the application of California population data to the national sales information and the discarded covered textiles collected for repair and recycling through the stewardship program.
(2)The estimate described in paragraph (1) shall include an estimate of covered products sold into the state, broken down by fiber type and United States Harmonized Tariff Schedule (HTS) number.
(c)A list of the stewardship programs collection sites, by name, location, and type.
(d)The total weight of covered products, respectively, that were collected. collected, broken down by fiber type categories.
(e)A list of each authorized sorter, authorized repair business, and textile recycling facility used by the stewardship program, including both of the following:
(1)Name and location.
(2)Total weight of covered products handled by each location.
(f)An updated list of the names and corporate mailing addresses of producers, as described in subdivision (a) of Section 42984.7 and brands of covered textiles covered under the stewardship plan.
(g)The total weight and number of covered textiles sold in or into the state attributed to a producer, who is a registered participant of the program operators plan, which are collected in the state and repaired or recycled by the program operator during the preceding calendar year, including a description of the methodology and information used to determine and calculate these values.
(h)A complete accounting of the ultimate disposition of all covered products collected by the program operator, including the total weight of covered products that were repaired and recycled.
(i)A description of methods used to collect, transport, repair, and recycle covered products by the program operator.
(j)A description of outreach efforts and education, including, but not limited to, education and outreach provided to consumers, collection sites, manufacturers, distributors, and retailers by the program operator for the purpose of promoting the collection, repair, reuse and recycling of covered products. This includes messaging on environmentally preferable purchasing and repairing covered textiles.
(k)Findings from the evaluation of the comprehensive statewide education and outreach program required by paragraph (8) of subdivision (i) of Section 42984.7.
(l)A description of consultation with the California Environmental Protection Agencys Environmental Justice Task Force and other relevant stakeholders for collecting covered textiles for repair and recycling in areas and communities that face unique challenges.
(m)A description of actions taken by the program operator to pay all administrative and operational costs associated with establishing and implementing the stewardship program.
(n)A report on activities the program operator has undertaken to prioritize the use of sorting, repair, and recycling facilities located closer to the point of generation to minimize transportation emissions and increase accountability for the ultimate disposition of collected covered products.
(o)The progress toward attaining the goals included in the program operators stewardship plan.
(p)Any modifications or revisions to the stewardship plan.
(q)Any other information deemed relevant by the program operator for the department to determine compliance with the approved stewardship plan.
(r)Any other information required by regulations promulgated pursuant to Section 42984.1.
42984.14.(a)No later than 120 days after the date the department receives the annual report submitted by a program operator pursuant to Section 42984.13, the department shall notify the program operator if the annual report is compliant or noncompliant.
(b)(1)If the department determines that the annual report is noncompliant due to failure to meet the requirements of Section 42984.13, the program operator shall resubmit a revised annual report addressing the departments written reasons for its decision within 30 days of the departments response.
(2)The department, within 60 days from the date a program operator resubmits a revised annual report, shall determine whether the annual report is compliant or noncompliant.
(3)If the department determines a revised annual report submitted pursuant to paragraph (1) is noncompliant, the program operator may submit only one additional revised annual report, subject to review in accordance with paragraph (2).
7.Enforcement42984.15.(a)Within 24 months of the effective date of regulations pursuant to Section 42984.1, and on or before July 1 of each year thereafter, the department shall post on its internet website a list of producers that are in compliance with this chapter. The department shall list, as appropriate, the reported brands of covered products for each producer.
(b)A producer that is not listed on the departments internet website pursuant to subdivision (a) that demonstrates compliance with this chapter before the next list is posted by the department may either be added to the internet website or be provided a certification letter from the department stating that the producer of a covered product is in compliance with this chapter.
(c)(1)A retailer, importer, or distributor shall monitor the departments internet website to determine if a producer, brand, or covered product is in compliance with this chapter for that brand of covered product.
(2)Except as provided in subdivision (d), on and after the date a stewardship plan is approved by the department pursuant to Section 42984.5, a retailer, importer, or distributor shall not sell, distribute, offer for sale, or import a covered product in or into the state for sale in the state unless the producer of the covered product is listed as in compliance pursuant to this section for that brand and covered product.
(d)(1)Notwithstanding paragraph (2) of subdivision (c), a retailer, importer, or distributor may sell, offer for sale, import, or distribute a covered product if, on the date the retailer or distributor sells or offers for sale the covered product in or into the state, the producer, brand, or covered product was listed as compliant on the departments internet website.
(2)Notwithstanding paragraph (2) of subdivision (c), a retailer or distributor may, for any existing inventory in stock before the initial list was posted by the department pursuant to subdivision (a), sell or distribute that inventory for sale in or into the state.
(e)(1)If the department determines a producer is not in compliance with this chapter, the department shall remove the producer, along with its brands and covered products, from the list of compliant producers posted on the departments internet website pursuant to subdivision (a).
(2)The department shall list on its internet website a producer, along with its brands and covered products, if the department subsequently determines that the producer is in compliance with this chapter.
42984.16.(a)The department may impose an administrative civil penalty on a producer, program operator, stewardship organization, manufacturer, distributor, retailer, or importer that is in violation of this chapter. The amount of the administrative civil penalty shall not exceed ten thousand dollars ($10,000) per day, but, if the violation is intentional, knowing, or reckless, the department may impose an administrative civil penalty of not more than fifty thousand dollars ($50,000) per day. The department shall establish, through regulations adopted by the department pursuant to Section 42984.1, a process that shall include an informal hearing process by which the penalties will be assessed.
(b)The department shall deposit all penalties collected pursuant to this section into the Textile Stewardship Recovery Penalty Account, which is hereby created in the Textile Stewardship Recovery Fund. These moneys shall be available for expenditure upon appropriation by the Legislature.
(c)This chapter does not limit or restrict the departments enforcement authority pursuant to Chapter 6.5 (commencing with Section 25100) of Division 20 of the Health and Safety Code and its implementing regulations, if any.
(d)The Administrative Adjudication Bill of Rights, as set forth in Chapter 4.5 (commencing with Section 11425.10) of Part 1 of Division 3 of Title 2 of the Government Code, applies to hearings conducted under this chapter and mandates minimum due process.
42984.17.(a)Upon a written finding that a producer, program operator, stewardship organization, manufacturer, distributor, retailer, or importer site has not met a material requirement of this chapter, in addition to any other penalties authorized under this chapter, the department may, after affording the entity a reasonable opportunity to respond to, or rebut, the finding, take any of the following actions to ensure compliance with the requirements of this chapter:
(1)Revoke the program operators stewardship plan approval or require the program operator to resubmit the plan.
(2)Remove the producer, along with its brands and covered textiles from the departments list of compliant producers, as specified in Section 42984.15.
(3)Impose additional compliance reporting requirements.
(4)Post the noncompliant entity onto a list of noncompliant entities.
(b)If a stewardship plan is revoked pursuant to paragraph (1) of subdivision (a) or terminated by the program operator that submitted the plan, a producer no longer subject to that plan may, without being subject to administrative civil penalties pursuant to Section 42984.16, sell or offer for sale covered products in or into the state for a period of up to one year after the stewardship plan was terminated or revoked if the producer continues to operate under the most recent approved stewardship plan to which the producer was subject.
42984.18.(a)A producer, program operator, stewardship organization, manufacturer, distributor, retailer, or importer shall do both of the following:
(1)Upon request, provide the department with reasonable and timely access, as determined by the department, 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)(1)The department may impose administrative civil penalties pursuant to Section 42984.16 on a producer, program operator, stewardship organization, manufacturer, distributor, retailer, or importer that fails to provide the department with the access required pursuant to this section.
(2)The department may post a notice on the departments internet website that is maintained pursuant to Section 42984.15 that a producer that fails to provide the department with access pursuant to this section, along with the producers brands and covered products, is no longer in compliance with this chapter.
42984.19.After the time for judicial review under Section 11523 of the Government Code has expired, the department may apply to the small claims court or superior court, depending on the jurisdictional amount and any other remedy sought, in the county where the penalties, restitution, or other remedy was imposed by the department, for a judgment to collect any unpaid civil penalties or restitution or to enforce any other remedy provided by this chapter. The application, which shall include a certified copy of the final agency order or decision, shall constitute a sufficient showing to warrant the issuance of the judgment. The court clerk shall enter the judgment immediately in conformity with the application. The judgment so entered shall have the same force and effect as and shall be subject to all the provisions of law relating to a judgment in a civil action and may be enforced in the same manner as any other judgment of the court. The court shall make enforcement of the judgment a priority.
8.Antitrust Immunity42984.20.(a)Except as provided in subdivision (c), an action specified in subdivision (b) that is taken by a program operator 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) applies to all of the following actions taken by a program operator:
(1)The creation, implementation, or management of a stewardship plan approved or conditionally approved by the department pursuant to Article 3 (commencing with Section 42984.4) and the determination of the types or quantities of covered products repaired, reused, recycled, or otherwise managed pursuant to a stewardship plan.
(2)The determination of the cost and structure of an approved stewardship plan.
(3)The establishment, administration, collection, or disbursement of a charge associated with funding the implementation of this chapter.
(c)Subdivision (a) does not apply to an agreement that does any of the following:
(1)Fixes a price of or for covered products, except for an agreement related to costs or charges associated with participation in a stewardship plan approved or conditionally approved by the department and otherwise in accordance with this chapter.
(2)Fixes the output or production of covered products.
(3)Restricts the geographic area in which, or customers to whom, covered products will be sold.
SEC. 3.SEC. 2.The Legislature finds and declares that Section 1 of this act, which adds Section 42984.5 of to the Public Resources Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
It is in the best interest of the public to provide limited protection of certain financial, production, and sales data of program participants, in order to protect the interests of businesses and the privacy of their data regarding their customers.
SEC. 4.SEC. 3.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
This chapter does not apply to textiles, as defined in Section 42984, made from synthetic fibers or carpet made from synthetic fibers.
SEC. 2.Chapter 20.5 (commencing with Section 42984) is added to Part 3 of Division 30 of the Public Resources Code, to read:20.5.Responsible Textile Recovery Act of 20231.General Provisions 42984.For purposes of this chapter, the following definitions apply:
(a)Apparel means clothing and accessory items intended for regular wear or formal occasions, including, but not limited to, undergarments, shirts, pants, skirts, dresses, overalls, bodysuits, costumes, vests, dancewear, suits, saris, scarves, tops, leggings, school uniforms, leisurewear, athletic wear, sports uniforms, everyday swimwear, formal wear, onesies, bibs, diapers, footwear, and everyday uniforms for workwear. Clothing items intended for regular wear or formal occasions does not include personal protective equipment or clothing items for exclusive use by the United States military.
(b)Authorized collector means a person or entity that has entered into an agreement with a program operator to collect covered products.
(c)Authorized sorter means a person or entity that has entered into an agreement with a program operator to sort covered products collected by authorized collectors.
(d)Authorized repair business means a person or entity that has entered into an agreement with a program operator to repair covered products for resale after collection by an authorized collector or after sorting by an authorized sorter.
(e)Brand means a trademark, including both a registered trademark and an unregistered trademark, a logo, a name, a symbol, a word, an identifier, or a traceable mark that identifies a covered textile and identifies the owner or licensee of the brand.
(f)Collection site means a permanent or temporary location operated by an authorized collector at which covered products are collected and prepared for transport in accordance with the requirements of this chapter.
(g)Consumer means an owner of a covered product, including a person, business, corporation, limited partnership, nonprofit organization, or governmental entity, and includes the ultimate purchaser, owner, or lessee of a covered product, who is not, as to that covered product, the distributor, importer, producer, recycler, retailer, or stewardship organization.
(h)Covered Product means any apparel, textile, or textile article that is unsuitable for reuse by a consumer in its current state or condition.
(i)Department means the Department of Resources Recycling and Recovery or a successor agency.
(j)Distributor means a company that has a contractual relationship with one or more producers to market and sell covered textiles to a retailer.
(k)Importer means either of the following:
(1)A person 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 covered textile that is sold, distributed for sale, or offered for sale in or into the state that was manufactured or assembled by a company outside of the United States.
(2)A person importing into the state for sale, distributing for sale, or offering for sale in the state a covered textile that was manufactured or assembled by a company physically located outside of the state.
(l)Local jurisdiction means a city, county, city and county, or a regional agency formed pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code or Article 3 (commencing with Section 40970) of Chapter 1 of Part 2 of this code, or a special district that provides solid waste collection services.
(m)Mail-back program means a method of collecting covered products using prepaid, preaddressed mailing envelopes that are reusable, recyclable, or compostable.
(n)Person has the same meaning as set forth in Section 40170.
(o)(1)Producer means a person who manufactures a covered product and who owns or is the licensee of the brand or trademark under which that covered product is sold, offered for sale, or distributed for sale in or into the state.
(2)If there is no person in the state who is the producer for purposes of paragraph (1), the producer of the covered product is the owner of a brand or trademark or, if the owner is not in the state, the exclusive licensee of a brand or trademark under which the covered product is sold, imported for sale, offered for sale, or distributed for sale in or into the state. For purposes of this subdivision, an exclusive licensee is a person holding the exclusive right to use a trademark or brand in the state in connection with the manufacture, sale, or distribution for sale in or into the state of the covered product.
(3)If there is no person in the state who is the producer for purposes of paragraph (1) or (2), the producer of the covered product is the person who sells, offers for sale, or is the importer or distributor of the covered textile in or into the state for sale in or into the state.
(4)For purposes of this chapter, the sale of a covered textile shall be deemed to occur in the state if the covered textile is delivered to the consumer in the state.
(5)Producer does not include a seller of secondhand apparel, secondhand textiles, or secondhand textile articles.
(p)Program operator means a producer, or a stewardship organization on behalf of a group of producers, which is responsible for implementing a stewardship program in accordance with the requirements of this chapter.
(q)Recycler means a person or entity who recovers fiber, yarn, or fabric and reuses or reprocesses that recovered fiber, yarn, or fabric into new, usable products.
(r)Recycling has the same meaning as set forth in subdivision (a) of Section 25121.1 of the Health and Safety Code. Recycling does not include any of the following:
(1)Combustion.
(2)Incineration.
(3)Energy generation.
(4)Fuel production.
(5)Beneficial reuse in the construction and operation of a solid waste landfill, including use of alternative daily cover.
(6)Other forms of disposal, as defined in subdivision (b) of Section 40192.
(s)Recycling efficiency rate means the ratio of the weight of covered products recycled by a program operator to the weight of those covered products collected by the program operator.
(t)Repair means any alteration or improvement of damaged covered materials deemed worth the cost of repair by criteria established by the stewardship plan, including, but not limited to, any of the following:
(1)Washing at a commercial laundry.
(2)Upcycling, redesign, and repurposing.
(3)Mending rips, holes, seams, and hems.
(4)Removing and repairing surface damages, such as pilling, stain removal, or abrasion.
(5)Securing and reattaching buttons and other fastenings.
(u)Retailer means a person who sells or offers for sale a covered product in or into the state to a person through any means, including, but not limited to, sales outlets, catalogs, the telephone, the internet, or any electronic means.
(v)Secondhand apparel means any apparel items that has been previously owned by a consumer.
(w)Secondhand textile means a usable textile item that has been previously owned by a consumer.
(x)Secondhand textile article means a usable textile article that has been previously owned by a consumer.
(y)Secondhand markets means a retailer who sells secondhand apparel, secondhand textiles, or secondhand textile articles, including, but not limited to, thrifts, online resale platforms, and flea markets.
(z)Stewardship organization means an organization exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986 (26 U.S.C. Sec. 501(c)(3)) that is established by a group of producers in accordance with this chapter to develop and implement a stewardship program.
(aa)Stewardship plan or plan means a plan developed by program operator pursuant to this chapter for the collection, transportation, repair, recycling, and the safe and proper management of covered products.
(ab)Stewardship program means a program established by a program operator pursuant to this chapter for the free at drop off, convenient, and safe collection, transportation, repair, recycling, and otherwise proper management of covered products.
(ac)Textile means any item made in whole or in part from a natural, manmade, or synthetic fiber, yarn, or fabric, and includes, but is not limited to, leather, cotton, silk, jute, hemp, wool, viscose, nylon, or polyester. Textile does not include disposable hygiene products made from paper, including, but not limited to, toilet paper, paper towels or tissues, or disposable absorbent hygiene products.
(ad)Textile articles means textile goods of a type customarily used in households and businesses, and include, but are not limited to, apparel, accessories, handbags, backpacks, draperies, shower curtains, furnishings, upholstery, beddings, towels, napkins, and tablecloths. Textile articles does not include any of the following:
(1)Either of the following items regulated under the Safer Consumer Products Program (Chapter 55 (Commencing with Section 69501) of Division 4.5 of Title 22 of the California Code of Regulations):
(A)Carpets and rugs.
(B)Treatments containing polyfluoroalkyl for use on converted textiles or leathers.
(2)Component parts from a vehicle, as defined in Section 670 of the Vehicle Code, including, but not limited to, an off-highway motor vehicle, as defined in Section 38012 of the Vehicle Code, such as seats and carpets or synthetic flooring.
(3)Component parts from a vessel, as defined in Section 21 of the Harbors and Navigation Code, such as seats, synthetic flooring, and boat covers.
(4)Filtration media and filter products used in industrial applications, including, but not limited to, chemical or pharmaceutical manufacturing, and environmental control technologies.
(5)Textile articles used in or for laboratory analysis and testing.
(6)Component parts from an aircraft, as defined in Section 21012 of the Public Utilities Code.
(7)Stadium shades or other architectural fabric structures. For purposes of this subparagraph, architectural fabric structure means a permanent fabric structure that is intrinsic to a buildings design or construction.
42984.1.(a)The department, acting in accordance with Article 1 (commencing with Section 11340) to Article 8 (commencing with Section 11350), inclusive, of the Administrative Procedure Act, as set forth in Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, shall adopt regulations to implement this chapter with an effective date of no earlier than December 31, 2025.
(b)Beginning January 1, 2032, the department may adjust, through regulations adopted by the department, the minimum required collection sites to ensure that consumers have sufficient and convenient access to collection sites if the department determines, after consultation with program operators and the advisory committee, that an adjustment will increase the collection of covered products.
(c)Beginning January 1, 2032, the department may establish, through regulations adopted by the department, a minimum recycling efficiency rate for covered products collected and recycled by program operators.
(d)(1)No later than 90 days after the effective date of regulations adopted pursuant to this section, the department shall create an advisory body for the purposes of consulting with producers and stewardship organizations with approved plans. Membership in the advisory committee may include, but is not limited to, representatives from local governments, recyclers, retailers, authorized collectors, authorized sorters, authorized repair businesses, nongovernmental organizations, environmental organizations, community-based justice and public health organizations, and the solid waste industry.
(2)Participation on the advisory body shall be voluntary.
(3)The advisory body is not a state body for purposes of Section 11121 of the Government Code, but shall provide advanced public notice about meetings, allow public participation in all meetings, and vote on written recommendations at public meetings.
2.Producers42984.2.(a)In order to comply with the requirements of this chapter, a producer may establish and implement a stewardship program independently, or as part of a group of producers through membership in a stewardship organization exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986 (21 U.S.C. 501(c)(3)). Producers may establish one or more stewardship organizations to comply with the requirements of this chapter.
(1)A producer shall not sell, distribute for sale, offer for sale, or import for sale a covered product in or into this state unless the producer is in compliance with this chapter and any regulations in effect and adopted pursuant to Section 42984.1.
(2)Every producer shall, no later than 180 days after the effective date of this chapter, notify all persons through which it is selling, distributing, importing, or offering for sale a covered product in or into the state for sale in or into the state whether it will comply with this chapter individually or through a stewardship organization.
(3)Each producer covered under a stewardship organization shall register with that stewardship organization in accordance with the procedures and requirements established by that stewardship organization and shall comply with those procedures and requirements.
(b)A producer is not in compliance with this chapter and is subject to penalties pursuant to Article 7 (commencing with Section 42984.15) if, commencing two years from the adoption of regulations pursuant to Section 42984.1, a covered product sold or offered for sale by the producer is not subject to an approved stewardship plan that has been approved by the department pursuant to Section 42984.5.
42984.3.(a)No later than 180 days after the effective date of this chapter, individual producers shall provide to the department, in a form and manner established by the department, a list of covered products and brands of covered products that the producer sells, distributes for sale, imports for sale, or offers for sale in or into the state.
(b)A producer shall update the list described in subdivision (a) and provide the updated list to the department on or before January 15 of each year or upon request of the department.
3.Program Operators 42984.4.(a)(1)A program operator shall include as a collection site under its stewardship program any entity that offers in writing to participate in the stewardship program and agrees to comply with any program operator requirements that are consistent with that program operators approved stewardship plan, even if the minimum thresholds described in subdivision (e) of Section 42984.7 as applicable, have been achieved.
(2)A program operator shall include as a collection site under its stewardship program any local jurisdiction that offers in writing to participate in the stewardship program and agrees to comply with any program operator requirements that are consistent with that program operators approved stewardship plan, even if the minimum thresholds described in subdivision (e) of Section 42984.7, as applicable, have been achieved.
(3)A program operator shall include the offering entity or local jurisdiction as a collection site in the stewardship program within 90 days of receiving the written offer to participate, confirming that the offering entity will comply with any program operator requirements that are consistent with that program operators approved stewardship plan, even if the minimum thresholds described in subdivision (e) of Section 42984.7, as applicable, have been achieved.
(4)The program operator shall not be required to respond to offers pursuant to this paragraph until the program operators stewardship plan has been approved by the department.
(b)A program operator may suspend or terminate a collection site that does not comply with all applicable state, federal, or municipal laws and regulations or adhere to the rules and conditions imposed by the program operator pursuant to paragraph (5) of subdivision (g) of Section 42984.7.
(c)A collection site shall be operated to ensure that covered products are collected safely and handled in accordance with all applicable state, federal, and municipal laws and regulations and the rules and conditions of the stewardship plan. Authorized collectors may divert usable apparel, textiles, and textile articles without damage for sale in domestic secondhand markets.
(d)A program operator shall require all contractors to pay the state minimum wage.
4.Stewardship Plan for Covered Products 42984.5.(a)Within 12 months of the effective date of the regulations adopted by the department pursuant to Section 42984.1, a program operator shall develop and submit to the department a complete stewardship plan, in accordance with the requirements of this chapter, for the collection, transportation, repair, sorting, recycling, and the safe and proper management of covered products in the state. No program operator serving more than one producer may limit its stewardship plan for covered products to the covered products of the producers participating in that stewardship program.
(b)The department shall review the stewardship plan for compliance with this chapter and shall approve, disapprove, or conditionally approve the plan within 120 days of receipt of the plan. The department may consult with or submit a stewardship plan for review to the Department of Toxic Substances Control if the department determines it is necessary for making a determination of approval of a stewardship plan. If the department consults with the Department of Toxic Substances Control, then the department shall approve, disapprove, or conditionally approve the plan within 180 days of receipt of the plan.
(c)If the department disapproves a stewardship plan submitted by a program operator, the department shall explain how the stewardship plan does not comply with this chapter and provide written notice to the program operator within 30 days of disapproval. The program operator may resubmit to the department a revised stewardship plan within 60 days of the date the written notice was issued, and the department shall review the revised stewardship plan within 90 days of resubmittal. If a revised stewardship plan is disapproved by the department, a producer operating under the stewardship plan shall not be in compliance with this chapter until the department approves a stewardship plan submitted by a program operator that covers the producers products.
(d)Within 24 months of the effective date of the regulations adopted by the department pursuant to Section 42984.1, a program operator shall have a complete stewardship plan approved by the department and each producer shall be subject to an approved stewardship plan in order to be in compliance with this chapter.
(e)The approved plan shall be a public record, except that financial, production, or sales data reported to the department by the program operator is not a public record for purposes of the California Public Records Act (Division 10 (commencing with Section 7920.000) 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 producer or distributor or to any other entity.
42984.6.(a)Within 12 months of the approval of the stewardship plan by the department pursuant to Section 42984.5, a program operator shall fully implement its stewardship program.
(b)An individual producer or a program operator may petition the department to investigate a noncompliant producer, and the department shall respond to the petition in a timely manner.
42984.7.A stewardship plan for covered products shall include all of the following:
(a)The names of producers and brands of covered products covered under the stewardship plan.
(b)A description of the consultative process by which the program operator consulted with the advisory body created pursuant to subdivision (d) of Section 42984.1 to receive advice on the development and implementation of the stewardship plan, including all correspondence between the program operator and the advisory committee and a detailed explanation of how and why the program operator decided to adopt or not adopt each recommendation by the advisory committee.
(c)(1)A description of the method to establish and administer a means for fully funding the stewardship program in a manner that equitably distributes the stewardship programs costs among the producers that are part of the stewardship organization. For producers that elect to meet the requirements of this chapter individually, without joining a stewardship organization, a description of the proposed method to establish and administer a means for fully funding the stewardship program.
(2)The stewardship plan shall include a stewardship program budget, for the next three calendar years, which includes a funding level and anticipated revenues and costs sufficient to cover the budgeted costs, including, but not limited to, administrative costs, operational costs, and capital costs, to operate the stewardship program in a prudent and responsible manner. Administrative costs shall include the departments anticipated actual, reasonable, and direct regulatory costs to implement and enforce this chapter as the criteria for all the costs are defined in the regulations adopted pursuant to Section 42984.1. For purposes of this paragraph, stewardship program implementation begins once the department approves a program operators stewardship plan, except the departments costs shall include actual, reasonable, and direct regulatory development costs and other startup regulatory costs incurred prior to stewardship plan submittal and approval.
(d)A description of methodologies for measuring, and meeting or exceeding the recycling efficiency rate established by the department pursuant to subdivision (c) of Section 42984.1, as applicable. If a minimum recycling rate has not been established by the department, a program operator shall instead include a target recycling efficiency rate for covered products recycled by the program operator.
(e)A description of how the program operator will provide for a free and convenient collection system for covered products in each county of the state that meets both of the following requirements:
(1)A minimum of 10 collection sites per county or one collection site per 25,000 people, whichever is greater, except as identified in this paragraph.
(A)A county with a population of 18,000 and under, as reported annually by the Department of Finance, shall have a minimum of three collection sites.
(B)A county with a population of between 18,001 and 50,000, as reported annually by the Department of Finance, shall have a minimum of four collection sites.
(C)A county with a population between 50,001 and 100,000, as reported annually by the department of Finance, shall have a minimum of eight collection sites.
(2)The collection sites in each county shall be spread throughout the county to facilitate widespread access and convenience.
(f)A description of how a program operator and its authorized collection sites will allow a consumer to drop off covered products at a collection site at no charge.
(g)A description of how collection sites will be authorized and managed, including all of the following:
(1)A description of the process by which entities and local jurisdictions can request to be a collection site pursuant to Section 42984.4.
(2)A description of how the program operator will provide to collection sites at no cost the appropriate containers for covered products, training, signage, safety guidance, and educational materials.
(3)An explanation of the process by which the program operator will provide for the collection and transport of covered products from the collection sites to an authorized sorter, or directly to an authorized repair business, or recycling facility.
(4)A description of how the program operator will maintain all collection and transport records and make them available to the department upon request.
(5)A list of all proposed rules, conditions and requirements for authorized collectors, authorized sorters, and authorized repair businesses, including a template proposed agreement for each of those types of entities, as applicable.
(h)A description of the process by which covered products will be sorted, processed, and recycled following collection at collection sites, including all of the following:
(1)A description of how covered products will be handled and managed according to the waste hierarchy as defined in Section 40051.
(2)A description of how covered products will be sorted by authorized sorters, including a description of how the flow of covered products to and from an authorized sorter will be tracked.
(3)A description of how the program operator will maximize the repair and recycling of all covered products.
(4)A description of how the program operator will minimize disposal of covered products collected by the program operator.
(5)A description of how the program operator will prioritize the use of sorting, repair, and recycling facilities located closer to the point of collection to minimize transportation-related emissions and increase accountability for the ultimate disposition of the covered products.
(i)A comprehensive statewide education and outreach program designed to educate consumers and promote participation in the collection, repair, and recycling program offered by the program operator. At a minimum, the comprehensive statewide education and outreach program shall include all of the following:
(1)A description of the education and communications strategy being implemented to effectively promote participation in the stewardship program and provide the information necessary for effective participation by consumers, retailers, local jurisdictions, and others.
(2)An internet website that publicizes the location of collection sites and provides information to consumers on how to drop covered products at the free and convenient network of collection sites offered by the stewardship program, including any information reasonably necessary to safely and conveniently access the collection, repair, and recycling services offered by the program operator.
(3)All signage and materials required for collection sites by the program operator, and the method by which collection sites can access replacement materials at no cost to the collection site.
(4)A description of efforts to support participation by all California communities, including a description of efforts to communicate with consumers in languages other than English.
(5)A description of strategies, goals, and metrics used to determine the success of the statewide education and outreach program.
(A)The statewide education and outreach program shall promote the safe and proper management of covered products, including source reduction, environmentally preferable purchasing, and repairing covered products. This includes education and training for authorized collectors to incentivize domestic resale of usable textiles.
(B)The statewide education and outreach program shall not promote the disposal of covered products in a manner inconsistent with the services offered by the stewardship plan.
(C)The statewide education and outreach plan shall include information for consumers about how to avoid improper disposal of covered products.
(6)(A)A description of how the program operators will annually assess and evaluate the efficacy of the comprehensive statewide education and outreach program and periodically adjust strategies to maximize participation in the stewardship program.
(B)Any program operator serving more than one producer shall coordinate with other program operators on the education and outreach programs that they implement pursuant to this subdivision.
(j)Coordination with, and a description of the efforts and methods used to coordinate activities with, all of the following entities who are responsive to a request from the program operator:
(1)Other program operators.
(2)Existing textile collection, repair, and recycling programs.
(3)Community-based organizations that contact the program operator and that are qualified to run or support collection events.
(k)Consultation with the California Environmental Protection Agencys Environmental Justice Task Force regarding methods to supplement those of the program operator to collect covered products for repair or recycling in areas and communities that face unique challenges associated with proper waste management, such as poverty, language barriers, and illegal disposal.
(l)A contingency plan in the event the stewardship plan expires, is disapproved, or is revoked. The contingency plan shall describe how the stewardship plan objectives can be carried out in the absence of a plan, either by the program operator or through an entity such as an escrow company.
(m)Develop a program in coordination with other program operators to support commercial laundries for laundering-covered products that includes funding for microfiber filtration devices.
(n)Develop strategies to address counterfeit goods that are illegal for secondhand markets to resell pursuant to Section 350 of the Penal Code.
(o)Develop strategies to address green design challenges for covered products, such as, but not limited to compostability, reduction and removal of harmful chemicals, microfiber shedding, and mixed material blends.
42984.8.(a)In preparing a stewardship plan pursuant to Section 42984.7, and any updates to the plan pursuant to Section 42984.9, a program operator shall engage in a consultative process with the advisory body created by the department pursuant to subdivision (d) of Section 42489.1. A program operator shall provide sufficient time and shall consider all written recommendations from the advisory body during the plan development process.
(b)A program operator shall consider the advisory bodys recommendations. If the producer or stewardship organization decides not to incorporate the advisory bodys written recommendations into the plan, the program operator shall provide a brief written explanation to the department and the advisory body that explains the basis for the decision and also indicates whether the program operator plans to incorporate the recommendations into a subsequent stewardship plan, subsequent amendments to the plan, or a subsequent annual report.
42984.9.(a)A program operator shall review its stewardship plan at least every five years after approval by the department and determine whether revisions to the plan are necessary.
(b)If a program operator determines that revisions to the plan are necessary, the program operator shall submit to the department a revised plan for review and approval employing the procedures set forth in Section 42984.5. The stewardship organization shall submit the revised plan pursuant to this subdivision within 90 days of the review deadline outlined pursuant to subdivision (a).
(c)If a program operator determines that no revisions to the plan are necessary, the program operator shall send a letter to the department no later than 30 days after the review deadline outlined in subdivision (a), explaining that the program operator has reviewed the plan, consulted with the advisory committee, and determined that no revisions are needed. The department may disapprove the program operators determination within 30 days of receipt of that determination if the department concludes that the program operator cannot implement the objectives of this chapter without revising the stewardship plan. In the event the department disapproves the program operators determination, the program operator shall submit to the department a revised stewardship plan for review and approval in accordance with Section 42984.5. The program operator shall submit the revised plan pursuant to this subdivision within 90 days of receipt of the departments disapproval.
5.Financial Provisions 42984.10.(a)No later than 90 days before a budget is submitted to the department, the department shall notify each program operator of each agencys respective anticipated actual and reasonable regulatory costs directly related to implementing and enforcing this chapter in relation to the program operators activities as the criteria for those costs are defined in the regulations adopted pursuant to Section 42984.1. This may include the actual and reasonable costs associated with regulatory regulation development pursuant to Section 42984.1 and other startup activities prior to stewardship plan submittal and approval, relative to the role of the program operators program compared to other programs.
(b)Program operators shall, on a schedule determined by the department, pay the department fees incurred to reimburse the department for incurred costs as described in subdivision (a). The fees shall not exceed the departments actual and reasonable regulatory costs to implement and enforce this chapter. The fees shall be paid by each producer, either individually, if the producer is complying with the requirements of this chapter individually, or through a stewardship organization.
(c)(1)The department shall deposit all moneys received from a program operator pursuant to this section into the Textile Stewardship Recovery Fund, which is hereby established in the State Treasury.
(2)Upon appropriation by the Legislature, moneys in the Textile Stewardship Recovery Fund shall be expended by the department to implement and enforce this chapter, as well as to reimburse any outstanding loans made from other funds used to finance regulation, development, and startup costs of the departments activities pursuant to this chapter.
(3)The money in the Textile Stewardship Recovery Fund shall not be expended for any other purpose.
42984.11.Each producer shall, either individually or through a stewardship organization, pay all administrative and operational costs associated with establishing and implementing the stewardship program in which it participates, including, but not limited to, the cost of collection, transportation, sorting, repairing, recycling, and the safe and proper management of covered products.
6.Records, Audits, and Reports 42984.12.(a)A program operator shall keep board minutes, books, and records that clearly reflect the activities and transactions of the program operator.
(b)A program operator shall retain, at the program operators expense, an independent public accountant, certified in the United States, to annually audit the accounting books of the program operator.
(c)The program operator shall include the audit in its annual report submitted pursuant to Section 42984.13 commencing within 18 months of plan approval by the department. The department shall review the audit for compliance with this chapter and consistency with the program operators stewardship plan. The department shall notify the program operator of any compliance issues or inconsistencies.
(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 program operator may obtain copies of the departments audit upon request.
(e)The department shall not publicly disclose any confidential proprietary or trade secret information in an audit conducted pursuant to this section.
42984.13.A program operator shall annually submit to the department, in the form and manner, and by the date, determined by the department, an annual report, which the department shall make publicly available that includes all of the following information for the preceding calendar year:
(a)The program operators costs and revenues.
(b)An estimate of the quantity of covered products sold in or into the state by the producers covered by the program operators stewardship plan, as determined by the best available commercial information, potentially including the application of California population data to the national sales information and the discarded covered textiles collected for repair and recycling through the stewardship program.
(c)A list of the stewardship programs collection sites, by name, location, and type.
(d)The total weight of covered products, respectively, that were collected.
(e)A list of each authorized sorter, authorized repair business, and textile recycling facility used by the stewardship program, including both of the following:
(1)Name and location.
(2)Total weight of covered products handled by each location.
(f)An updated list of the names and corporate mailing addresses of producers, as described in subdivision (a) of Section 42984.7 and brands of covered textiles covered under the stewardship plan.
(g)The total weight and number of covered textiles sold in or into the state attributed to a producer, who is a registered participant of the program operators plan, which are collected in the state and recycled by the program operator during the preceding calendar year, including a description of the methodology and information used to determine and calculate these values.
(h)A complete accounting of the ultimate disposition of all covered products collected by the program operator, including the total weight of covered products that were repaired and recycled.
(i)A description of methods used to collect, transport, repair, and recycle covered products by the program operator.
(j)A description of outreach efforts and education, including, but not limited to, education and outreach provided to consumers, collection sites, manufacturers, distributors, and retailers by the program operator for the purpose of promoting the collection, repair, reuse and recycling of covered products. This includes messaging on environmentally preferable purchasing and repairing covered textiles.
(k)Findings from the evaluation of the comprehensive statewide education and outreach program required by paragraph (8) of subdivision (i) of Section 42984.7.
(l)A description of consultation with the California Environmental Protection Agencys Environmental Justice Task Force and other relevant stakeholders for collecting covered textiles for repair and recycling in areas and communities that face unique challenges.
(m)A description of actions taken by the program operator to pay all administrative and operational costs associated with establishing and implementing the stewardship program.
(n)A report on activities the program operator has undertaken to prioritize the use of sorting, repair, and recycling facilities located closer to the point of generation to minimize transportation emissions and increase accountability for the ultimate disposition of collected covered products.
(o)The progress toward attaining the goals included in the program operators stewardship plan.
(p)Any modifications or revisions to the stewardship plan.
(q)Any other information deemed relevant by the program operator for the department to determine compliance with the approved stewardship plan.
(r)Any other information required by regulations promulgated pursuant to Section 42984.1.
42984.14.(a)No later than 120 days after the date the department receives the annual report submitted by a program operator pursuant to Section 42984.13, the department shall notify the program operator if the annual report is compliant or noncompliant.
(b)(1)If the department determines that the annual report is noncompliant due to failure to meet the requirements of Section 42984.13, the program operator shall resubmit a revised annual report addressing the departments written reasons for its decision within 30 days of the departments response.
(2)The department, within 60 days from the date a program operator resubmits a revised annual report, shall determine whether the annual report is compliant or noncompliant.
(3)If the department determines a revised annual report submitted pursuant to paragraph (1) is noncompliant, the program operator may submit only one additional revised annual report, subject to review in accordance with paragraph (2).
7.Enforcement42984.15.(a)Within 24 months of the effective date of regulations pursuant to Section 42984.1, and on or before July 1 of each year thereafter, the department shall post on its internet website a list of producers that are in compliance with this chapter. The department shall list, as appropriate, the reported brands of covered products for each producer.
(b)A producer that is not listed on the departments internet website pursuant to subdivision (a) that demonstrates compliance with this chapter before the next list is posted by the department may either be added to the internet website or be provided a certification letter from the department stating that the producer of a covered product is in compliance with this chapter.
(c)(1)A retailer, importer, or distributor shall monitor the departments internet website to determine if a producer, brand, or covered product is in compliance with this chapter for that brand of covered product.
(2)Except as provided in subdivision (d), on and after the date a stewardship plan is approved by the department pursuant to Section 42984.5, a retailer, importer, or distributor shall not sell, distribute, offer for sale, or import a covered product in or into the state for sale in the state unless the producer of the covered product is listed as in compliance pursuant to this section for that brand and covered product.
(d)(1)Notwithstanding paragraph (2) of subdivision (c), a retailer, importer, or distributor may sell, offer for sale, import, or distribute a covered product if, on the date the retailer or distributor sells or offers for sale the covered product in or into the state, the producer, brand, or covered product was listed as compliant on the departments internet website.
(2)Notwithstanding paragraph (2) of subdivision (c), a retailer or distributor may, for any existing inventory in stock before the initial list was posted by the department pursuant to subdivision (a), sell or distribute that inventory for sale in or into the state.
(e)(1)If the department determines a producer is not in compliance with this chapter, the department shall remove the producer, along with its brands and covered products, from the list of compliant producers posted on the departments internet website pursuant to subdivision (a).
(2)The department shall list on its internet website a producer, along with its brands and covered products, if the department subsequently determines that the producer is in compliance with this chapter.
42984.16.(a)The department may impose an administrative civil penalty on a producer, program operator, stewardship organization, manufacturer, distributor, retailer, or importer that is in violation of this chapter. The amount of the administrative civil penalty shall not exceed ten thousand dollars ($10,000) per day, but, if the violation is intentional, knowing, or reckless, the department may impose an administrative civil penalty of not more than fifty thousand dollars ($50,000) per day. The department shall establish, through regulations adopted by the department pursuant to Section 42984.1, a process that shall include an informal hearing process by which the penalties will be assessed.
(b)The department shall deposit all penalties collected pursuant to this section into the Textile Stewardship Recovery Penalty Account, which is hereby created in the Textile Stewardship Recovery Fund. These moneys shall be available for expenditure upon appropriation by the Legislature.
(c)This chapter does not limit or restrict the departments enforcement authority pursuant to Chapter 6.5 (commencing with Section 25100) of Division 20 of the Health and Safety Code and its implementing regulations, if any.
(d)The Administrative Adjudication Bill of Rights, as set forth in Chapter 4.5 (commencing with Section 11425.10) of Part 1 of Division 3 of Title 2 of the Government Code, applies to hearings conducted under this chapter and mandates minimum due process.
42984.17.(a)Upon a written finding that a producer, program operator, stewardship organization, manufacturer, distributor, retailer, or importer site has not met a material requirement of this chapter, in addition to any other penalties authorized under this chapter, the department may, after affording the entity a reasonable opportunity to respond to, or rebut, the finding, take any of the following actions to ensure compliance with the requirements of this chapter:
(1)Revoke the program operators stewardship plan approval or require the program operator to resubmit the plan.
(2)Remove the producer, along with its brands and covered textiles from the departments list of compliant producers, as specified in Section 42984.15.
(3)Impose additional compliance reporting requirements.
(4)Post the noncompliant entity onto a list of noncompliant entities.
(b)If a stewardship plan is revoked pursuant to paragraph (1) of subdivision (a) or terminated by the program operator that submitted the plan, a producer no longer subject to that plan may, without being subject to administrative civil penalties pursuant to Section 42984.16, sell or offer for sale covered products in or into the state for a period of up to one year after the stewardship plan was terminated or revoked if the producer continues to operate under the most recent approved stewardship plan to which the producer was subject.
42984.18.(a)A producer, program operator, stewardship organization, manufacturer, distributor, retailer, or importer shall do both of the following:
(1)Upon request, provide the department with reasonable and timely access, as determined by the department, 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)(1)The department may impose administrative civil penalties pursuant to Section 42984.16 on a producer, program operator, stewardship organization, manufacturer, distributor, retailer, or importer that fails to provide the department with the access required pursuant to this section.
(2)The department may post a notice on the departments internet website that is maintained pursuant to Section 42984.15 that a producer that fails to provide the department with access pursuant to this section, along with the producers brands and covered products, is no longer in compliance with this chapter.
42984.19.After the time for judicial review under Section 11523 of the Government Code has expired, the department may apply to the small claims court or superior court, depending on the jurisdictional amount and any other remedy sought, in the county where the penalties, restitution, or other remedy was imposed by the department, for a judgment to collect any unpaid civil penalties or restitution or to enforce any other remedy provided by this chapter. The application, which shall include a certified copy of the final agency order or decision, shall constitute a sufficient showing to warrant the issuance of the judgment. The court clerk shall enter the judgment immediately in conformity with the application. The judgment so entered shall have the same force and effect as and shall be subject to all the provisions of law relating to a judgment in a civil action and may be enforced in the same manner as any other judgment of the court. The court shall make enforcement of the judgment a priority.
8.Antitrust Immunity42984.20.(a)Except as provided in subdivision (c), an action specified in subdivision (b) that is taken by a program operator 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) applies to all of the following actions taken by a program operator:
(1)The creation, implementation, or management of a stewardship plan approved or conditionally approved by the department pursuant to Article 3 (commencing with Section 42984.4) and the determination of the types or quantities of covered products repaired, reused, recycled, or otherwise managed pursuant to a stewardship plan.
(2)The determination of the cost and structure of an approved stewardship plan.
(3)The establishment, administration, collection, or disbursement of a charge associated with funding the implementation of this chapter.
(c)Subdivision (a) does not apply to an agreement that does any of the following:
(1)Fixes a price of or for covered products, except for an agreement related to costs or charges associated with participation in a stewardship plan approved or conditionally approved by the department and otherwise in accordance with this chapter.
(2)Fixes the output or production of covered products.
(3)Restricts the geographic area in which, or customers to whom, covered products will be sold.
SEC. 3.The Legislature finds and declares that Section 1 of this act, which adds Section 42984.5 of the Public Resources Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:
It is in the best interest of the public to provide limited protection of certain financial, production, and sales data of program participants, in order to protect the interests of businesses and the privacy of their data regarding their customers.
SEC. 4.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
|
Date
|
Status
|
|---|---|
| Sep 28, 2024 | Chaptered by Secretary of State. Chapter 864, Statutes of 2024. |
| Sep 28, 2024 | Approved by the Governor. |
| Sep 11, 2024 | Enrolled and presented to the Governor at 3 p.m. |
| Aug 30, 2024 | Assembly amendments concurred in. (Ayes 32. Noes 8. Page 5738.) Ordered to engrossing and enrolling. |
| Aug 29, 2024 | From committee: That the Assembly amendments be concurred in. (Ayes 4. Noes 2. Page 5699.) |
| Aug 28, 2024 | From committee: Be re-referred to Com. on E.Q. pursuant to Senate Rule 29.10(d). (Ayes 5. Noes 0. Page 5566.) Re-referred to Com. on E.Q. |
| Aug 28, 2024 | Re-referred to Com. on RLS pursuant to Senate Rule 29.10(d). |
| Aug 28, 2024 | In Senate. Concurrence in Assembly amendments pending. |
| Aug 28, 2024 | Read third time. Passed. (Ayes 61. Noes 11. Page 6711.) Ordered to the Senate. |
| Aug 22, 2024 | Read third time and amended. |
| Aug 22, 2024 | Ordered to third reading. |
| Aug 20, 2024 | Read second time. Ordered to third reading. |
| Aug 19, 2024 | Read second time and amended. Ordered to second reading. |
| Aug 15, 2024 | From committee: Do pass as amended. (Ayes 11. Noes 3.) (August 15). |
| Aug 7, 2024 | August 7 set for first hearing. Placed on suspense file. |
| Jul 3, 2024 | Read second time and amended. Re-referred to Com. on APPR. |
| Jul 3, 2024 | From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 3.) (July 1). |
| Jun 10, 2024 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on NAT. RES. |
| Apr 3, 2024 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on NAT. RES. |
| Jul 11, 2023 | July 10 set for first hearing canceled at the request of author. |
| Jul 3, 2023 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on NAT. RES. |
| Jun 15, 2023 | Referred to Com. on NAT. RES. |
| Jun 1, 2023 | In Assembly. Read first time. Held at Desk. |
| May 31, 2023 | Read third time. Passed. (Ayes 32. Noes 8. Page 1401.) Ordered to the Assembly. |
| May 23, 2023 | Read second time and amended. Ordered to third reading. |
| May 22, 2023 | From committee: Do pass as amended. (Ayes 5. Noes 2. Page 1180.) (May 18). |
| May 12, 2023 | Set for hearing May 18. |
| May 8, 2023 | May 8 hearing: Placed on APPR suspense file. |
| May 1, 2023 | Set for hearing May 8. |
| Apr 26, 2023 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 0. Page 895.) (April 25). Re-referred to Com. on APPR. |
| Apr 13, 2023 | Set for hearing April 25. |
| Apr 11, 2023 | Read second time and amended. Re-referred to Com. on JUD. |
| Apr 10, 2023 | From committee: Do pass as amended and re-refer to Com. on JUD. (Ayes 5. Noes 2. Page 572.) (March 29). |
| Mar 20, 2023 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on E.Q. |
| Mar 7, 2023 | Set for hearing March 29. |
| Mar 1, 2023 | Referred to Coms. on E.Q. and JUD. |
| Feb 17, 2023 | From printer. May be acted upon on or after March 19. |
| Feb 16, 2023 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 30, 2024 | Unfinished Business SB707 Newman et al. Concurrence | Senate Floor |
Passed |
|
| Aug 29, 2024 | That the Assembly amendments be concurred in | Senate Standing Committee on Environmental Quality |
Passed |
|
| Aug 28, 2024 | SB 707 Newman Senate Third Reading By Bauer-Kahan | Assembly Floor |
Passed |
|
| Aug 15, 2024 | Do pass as amended. | Assembly Standing Committee on Appropriations |
Passed |
|
| Jul 1, 2024 | Do pass as amended and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Natural Resources |
Passed |
|
| May 31, 2023 | Senate 3rd Reading SB707 Newman et al. | Senate Floor |
Passed |
|
| May 18, 2023 | Do pass as amended | Senate Standing Committee on Appropriations |
Passed |
|
| May 8, 2023 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Apr 25, 2023 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Judiciary |
Passed |
|
| Mar 29, 2023 | Do pass as amended, but first amend, and re-refer to the Committee on [Judiciary] | Senate Standing Committee on Environmental Quality |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| 5 Gyres Institute | ** Support | |
| A Voice for Choice Advocacy | ** Support | |
| Accelerating Circularity, INC. | ** Support | |
| Ambercycle | ** Support | |
| Ambercycle | * Support | Jul 1, 2024 |
| American Apparel & Footwear Association | ** Against | |
| American Circular Textiles Group | ** Against | |
| Aprea and Company | * Support | Jul 1, 2024 |
| Aquafil | ** Support | |
| Aquafil Carpet Recycling | ** Support | |
| Association of California Goodwill | * Support | Jul 1, 2024 |
| Association of California Goodwills | ** Support | |
| BASF Corporation | ** Support | |
| Boardrider | ** Support | |
| Cal Chamber | ** Against | |
| California Chapters of The Solid Waste Association of North America's Legislative Task Force | ** Support | |
| California Environmental Voters | ** Support | |
| California Manufacturers And Technology Association | * Neutral | Jul 1, 2024 |
| California Product Stewardship Council | ** Support | |
| California Resource Recovery Association | ** Support | |
| California Retailers Association | * Indeterminate | Apr 25, 2023 |
| Californians Against Waste | ** Support | |
| CALPIRG, California Public Interest Research Group | ** Support | |
| Capitol Advocacy | * Support | Jul 1, 2024 |
| Castro Valley Sanitary District | ** Support | |
| Cbu Productions | ** Support | |
| CBU Productions | * Support | Mar 29, 2023 |
| Changing Markets Foundation | ** Support | |
| Chief Sustainability Officer & Vp Operations | ** Support | |
| Circ, INC. | ** Support | |
| Cirtex | ** Support | |
| City and County of San Francisco | * Support | Jul 1, 2024 |
| City of Alameda | * Support | Jul 1, 2024 |
| City of Roseville | ** Support | |
| City of San Jose | ** Support | |
| City of Sunnyvale | ** Support | |
| City of Thousand Oaks | ** Support | |
| Clean Brands | ** Support | |
| Clean Seas Coalition | * Support | Mar 29, 2023 |
| Climate Reality Project, Los Angeles Chapter | ** Support | |
| Climate Reality Project, San Fernando Valley | ** Support | |
| Consumer Product Safety Commission | * Support | Jul 1, 2024 |
| County of Santa Barbara | ** Support | |
| County of Santa Clara | ** Support | |
| Coyuchi | ** Support | |
| CRRA | ** Support | |
| Delta Diablo | ** Support | |
| Democrats of Rossmoor | ** Support | |
| Eco New Upcycled | ** Support | |
| Eco Now Upcycled | ** Support | |
| Eco-catalyst INC | ** Support | |
| Ellerali | ** Support | |
| Environmental Working Group | ** Support | |
| Eorte | ** Support | |
| Ethix Merch | ** Support | |
| Everlane | ** Support | |
| Fashion Revolution USA | ** Support | |
| Fibershed | ** Support | |
| Fort Ord Environmental Justice Network | ** Support | |
| Friends Committee On Legislation Of California | ** Support | |
| Full Circle Environmental | ** Support | |
| Geoown AB | ** Support | |
| Gibc INC Dba Ragroyalty.com | ** Support | |
| Grace Veterinary, INC | ** Support | |
| GreenWaste | ** Support | |
| Greenwaste Recovery | ** Support | |
| H&m | ** Support | |
| H&M Group | * Support | Mar 29, 2023 |
| Haelixa | ** Support | |
| Heal The Bay | ** Support | |
| Ikea | ** Support | |
| Intrinsic Advanced Materials, LLC | ** Support | |
| JDG Group, Inc. | ** Support | |
| Laci | ** Support | |
| Le Marche Limited | ** Support | |
| Luna Lab | ** Support | |
| Luna Refab | ** Support | |
| Lymi, INC. Dba Reformation | ** Support | |
| mara hoffman | ** Support | |
| Mara Hoffman Inc. | ** Support | |
| Marmot | ** Support | |
| Materevolve | ** Support | |
| Mend It, Inc. | ** Support | |
| Mojave Desert and Mountain Recycling Authority | ** Support | |
| Molte Volte | ** Support | |
| National Stewardship Action Council | ** Support | |
| Northern California Recycling Association | ** Support | |
| Ocean+main | ** Support | |
| Operations Reformation | ** Support | |
| Ouros Industries | ** Support | |
| Outerknown | ** Support | |
| Plastic Oceans International | ** Support | |
| Plastic Pollution Coalition | ** Support | |
| Please Return It | * Support | Jul 1, 2024 |
| Plsreturnit INC | ** Support | |
| Product Stewardship Institute | ** Support | |
| Project Ropa | ** Support | |
| R3 Consulting Group, INC. | ** Support | |
| Ravel | ** Support | |
| Recology | ** Support | |
| Recyclesmart | ** Support | |
| Reformation | ** Support | |
| Renewcell | ** Support | |
| Renewcell AB | ** Support | |
| Repeat Reuse, INC | ** Support | |
| Republic Services Inc. | ** Support | |
| Resource Recovery Coalition Of California | ** Support | |
| Rethink Waste | ** Support | |
| Rethinkwaste | ** Support | |
| Roboro | ** Support | |
| Rural County Representatives of California | * Support | Jul 1, 2024 |
| Salinas Valley Recycles | ** Support | |
| Salinas Valley Solid Waste Authority | ** Support | |
| San Fernando Valley | * Support | Apr 25, 2023 |
| Santa Barbara County Resource Recovery & Waste Management Authority | ** Support | |
| Santa Barbara County Resource Recovery & Waste Management Division | ** Support | |
| Santa Barbara County Solid Waste Local Task Force | ** Support | |
| Santa Clara Board of Supervisors | * Support | Apr 25, 2023 |
| Santa Clara County Board of Supervisors | * Support | Mar 29, 2023 |
| Santa Clara County Recycling and Waste Reduction Commission | ** Support | |
| Savers | ** Support | |
| Savers Value Village | * Support | Jul 1, 2024 |
| Scullyspark | ** Support | |
| Sea Hugger | ** Support | |
| Secondary Materials and Recycled Textiles Association | ** Support | |
| Seventh Generation Advisors | ** Support | |
| Sew You LLC | ** Support | |
| Sew You, LLC | ** Support | |
| Sierra Club | ** Support | |
| Sierra Club California | ** Support | |
| Sixone Labs LTD | ** Support | |
| Social Compassion In Legislation | ** Support | |
| Sohocolab | ** Support | |
| Solana Center for Environmental Innovation | ** Support | |
| Solid Waste Environmental Excellence Performance Standard | ** Support | |
| Sortile | ** Support | |
| South Bayside Waste Management Authority Dba Rethinkwaste | ** Support | |
| St. Catherine University | ** Support | |
| St. Vincent de Paul Society of Lane Co. Inc. | ** Support | |
| Stand Up to Trash | ** Support | |
| StopWaste | ** Support | |
| Surfrider Foundation | ** Support | |
| Sustainable Works | ** Support | |
| Textile Rental Services Association | * Indeterminate | Jul 1, 2024 |
| The Center for Oceanic Awareness, Research, and Education | ** Support | |
| The Fashion Connection | ** Support | |
| The Toy Association | * Against | Apr 25, 2023 |
| Threadhaus Co. | ** Support | |
| Upcycle It Now | ** Support | |
| US Again | ** Support | |
| Usagain | ** Support | |
| Western Placer Waste Management Authority | ** Support | |
| Wishtoyo Chumash Foundation | ** Support | |
| Zero Panik | ** Support | |
| Zero Waste Company | ** Support | |
| Zero Waste San Diego | ** Support | |
| Zero Waste Sonoma | ** Support | |
| Zero Waste USA | ** Support |
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB 707 |
UNFINISHED BUSINESS
Bill No: SB 707
Author: Newman (D), et al.
Amended: 8/22/24
Vote: 21
PRIOR VOTES NOT RELEVANT
SENATE ENVIRONMENTAL QUAL. COMMITTEE: 4-2, 8/29/24
AYES: Allen, Gonzalez, Hurtado, Skinner
NOES: Dahle, Nguyen
NO VOTE RECORDED: Menjivar
ASSEMBLY FLOOR: 61-11, 8/28/24 - See last page for vote
SUBJECT: Responsible Textile Recovery Act of 2024
SOURCE: Author
DIGEST:
This bill establishes the Responsible Textile Recovery Act of 2024, which creates an extended producer responsibility (EPR) program for stewardship of waste textiles under the oversight of the Department of Resources Recycling and Recovery (CalRecycle).
Assembly Amendments
include online marketplaces with sales over $1 million under the purview of the bill, requires that the PRO develop a needs assessment for covered products, and removes the advisory committee for the PRO from the program. The amendments add further requirements to the producer responsibility plan, including requiring the plan to consider how to manage PFAS in products, how products will reach responsible end markets, and adjusts collection site requirements for jurisdictions based on their population. Assembly amendments adjust various timelines for implementation and review of the program and add makes various clarifying amendments to terms including producer responsibility organization and covered product.
ANALYSIS:
Existing law:
- The California Integrated Waste Management Act of 1989, administered by the Department of Resources Recycling and Recovery (CalRecycle), generally regulates the disposal, management, and recycling of solid waste. Establishes a state recycling goal that 75% of solid waste generated is to be diverted from landfill disposal through source reduction, recycling, and composting by 2020. (Public Resources Code Section (PRC) 40000 et seq.)
- Establishes the Plastic Pollution Prevention and Packaging Producer Responsibility Act, which imposes minimum content requirements for single-use packaging and food ware and source reduction requirements for plastic single-use packaging and food ware, to be achieved through an EPR program. (PRC 42040 et seq.)
- Establishes the Used Mattress Recovery and Recycling Act, which creates an EPR program for the collection and recycling of used mattresses. (PRC 42985 et seq.)
- Establishes the Electronic Waste Recycling Act of 2003, which requires consumers to pay a fee for specified electronic devices, defined to include video screens larger than four inches and battery-embedded products and establishes processes for consumers to return, recycle, and ensure the safe disposal of covered electronic devices. (PRC 42460 et seq.)
- Requires CalRecycle to establish a three-year pilot project located in the Los Angeles and Ventura Counties partnering with garment manufacturers to study and report on the feasibility of recycling fabric. (PRC 40512)
- Establishes, upon appropriation from the Legislature, a Zero-Waste equity grant program that can be used for repair and extending the life of products including textiles. (PRC 42999.5)
- Defines “recycle” or “recycling” as the process of collecting, sorting, cleansing, treating, and reconstituting materials that would otherwise ultimately be disposed of onto land or into water or the atmosphere, and returning them to, or maintaining them within, the economic mainstream in the form of recovered material for new, reused, or reconstituted products, including compost, that meet the quality standards necessary to be used in the marketplace. Specifies that “recycling” does not include combustion, incineration, energy generation, fuel production (except anaerobic digestion), and other forms of disposal. (PRC 42041 (aa))
This bill
- Requires CalRecycle to adopt regulations to implement this bill to be effective no earlier than January 1, 2028.
- Applies to any producer that sells, offers for sale, or distributes a "covered product," defined as an apparel or textile article.
- Requires producers of covered products to form and join a producer responsibility organization (PRO), a nonprofit 501(c)(3), and sell textile products in California only under a PRO plan approved by CalRecycle under the following timeline:
- The PRO, by January 1, 2026, is required to submit to CalRecycle an application describing its governing board and financial plan to pay for all of CalRecycle's costs attributed to the PRO, with CalRecycle required to approve an adequate plan by March 1, 2026.
- A producer of covered products is required to join an approved PRO by July 1, 2026.
- The PRO, by March 1, 2027, in consultation with CalRecycle and local jurisdictions, is required to submit an initial statewide needs assessment to determine steps and investment needed to meet the requirements of this bill, with CalRecycle to approve, conditionally approve, or disapprove the needs assessment within 90 days of submission.
- The PRO, within 12 months of regulations taking effect, is required to submit to CalRecycle a PRO stewardship plan for collection, transportation, repair, sorting, recycling, and safe and proper management of textile products in the state, with CalRecycle having 120 days to review and approve, disapprove, or conditionally approve the plan.
- A producer of covered products is subject to penalties upon approval of a PRO plan, or January 1, 2030, whichever is sooner.
- Requires a plan to be designed to accept and manage all postconsumer covered products and include:
- The names and contact information of producers and brands of covered products covered by the plan;
- A description of the method to establish and administer a means of fully funding the PRO in a manner that distributes the costs among producers using a per unit eco-modulated fee that reflects California sales volumes and the cost of reuse, repair, recycling, and otherwise managing covered products;
- A five-year budget that fully funds the stewardship program; d) Quantifiable five-year and annual performance standards and metrics until CalRecycle publishes performance standards; e) A description of how the PRO will provide for a free and convenient drop-off or collection system for covered products in each county and how the collection sites will be authorized and managed; f) A description of the process by which collected covered products will be sorted, transported, processed, repaired, reused, and recycled, as specified; g) A description of how collection sites will be authorized and managed, as specified; h) A description of the process by which collected covered products will be sorted, transported, processed, reused, and recycled following collection, as specified; i) A comprehensive statewide education and outreach program to educate consumers and promote participation in the program, as specified; SB 707 Page 4 j) A description of the strategies, goals, and metrics the PRO will use to annually assess and evaluate the efficacy of the comprehensive statewide education and outreach program; k) A description of efforts to coordinate with specified entities; l) Information to the public on secondhand markets and the benefits of reuse, including repair; m) A requirement that the statewide education and outreach campaign to promote the safe and proper management of covered products; n) Coordination with, and a description of the efforts and methods used to coordinate activities with, other PROs, existing collection and recycling programs, and communitybased organizations; o) A contingency plan in the event the plan expires or is revoked; p) Develop a program in coordination with other program operators to support laundries for laundering covered products; q) A description of how the plan will address per- and polyfluoroalkyl substances (PFAS) and other chemical contamination; r) Develop strategies to address design challenges for covered products; s) A description of how the PRO will minimize the negative environmental impacts of all operations associated with the plan; and, t) A process by which the financial activities of the PRO or individual producers that are related to implementation of the plan will be subject to an independent audit.
- Establishes the Textile Stewardship Recovery Fund for the deposit of all moneys received from PROs for use by CalRecycle to implement this bill.
- Requires CalRecycle to post on its internet website a list of producers in compliance with this bill, and authorizes CalRecycle to assess civil penalties up to $10,000 per day for violations or $50,000 per day for intentional or knowing violations, and to revoke a PRO's plan approval.
- Specifies requirements for performance standards, annual reports, and audits.
- Requires any local jurisdiction that offers to participate in the PRO's stewardship program as a collection site to comply with all applicable federal, state, or municipal laws or adhere to the rules established by the PRO and requires the PRO to notify CalRecycle if a collection site fails to comply with specified requirements.
Background
- Textiles waste is a growing environmental problem. According to CalRecycle’s 2020 ‘Facility-Based Characterization of Solid Waste in California’ report, textiles, including apparel, textile (cloth), and textile articles (such as linens, curtains, etc.) were the sixth most prevalent material type disposed of by single-family residences in 2018. Overall, Californians disposed of nearly 1.2 million metric tons of textiles in 2018, making up about 3% of California’s total waste stream.
Textile waste has been supercharged by the rise of fast fashion. “Fast fashion” is an approach to the design, creation, and marketing of clothing that emphasizes making fashion trends quickly and cheaply available to consumers. Retailers and producers benefit from frequently updating styles to incentivize shopping. Fast fashion has contributed to a global doubling of clothing production from 2000 to 2014. Fast fashion provides clothes to consumers for lower prices, but sacrifices the quality and longevity of garments in the process: this leads to more waste.
Dealing with all this waste is expensive: in 2021, approximately 1.2 million tons of textiles were disposed of, costing California taxpayers more than $70 million dollars in disposal costs.
This waste comes with a carbon cost as well: textile and garment industries account for between 6-8% of total global carbon emissions, or some 1.7 billion tons in carbon emissions per year.
- Reuse and Recycle: What is currently done with old textiles? According to CalRecycle, 95% of California’s textile waste is reusable or recyclable, meaning that the textiles are in a condition for reuse or still have tags identifying the material used (tags are important to recycling since it is critical to know what the material type of a textile is to select the proper recycling processes for that material).
Both recycling and reuse for used textiles begin when textiles are discarded--either when businesses toss out scrap or surplus material, or when consumers throw out old clothes or textile household items, like sheets, curtains, and pillows. Once these materials have been collected, they are sorted to separate reusable material from material that is only eligible for recycling or landfilling.
According to CalRecycle, only 10-15% of garments donated or sold to second-hand markets are directly resold in the stores where they are deposited. Of the remaining material, 30% is cut down to rags, 20% is converted into recycled fibers for uses such as carpet padding, insulation, and pillow stuffing, 5% is landfilled in-State, and 45% is sent overseas for further processing. Items that are sent overseas may or may not have a long second life: of the 15 million used garments that flow into Ghana every week, an estimated 40% are deemed worthless upon arrival and landfilled. This off-shore landfilling comes at a carbon cost, since shipping is a carbon-intensive process.
Recycling - Recycling textiles is a multistep process. Natural fibers are mechanically processed: for example, cotton textiles are shredded, the fibers are separated, and then re-spun with virgin fibers into yarn to make new textiles. Synthetic fibers, such as polyester, can sometimes be mechanically processed by shredding, cleaning, molding into pellets, and then extruding into new fibers. If mechanical processing is not possible, the textiles can also undergo the more intensive process of chemical processing, where the synthetic material is broken down into its component molecules to remove contaminants and then reformed into fibers.
Blends of materials, either different types of natural, synthetic, or both are typically not eligible for chemical processing, but can be mechanically processed and downcycled: blended fabrics are shredded and pulled to transform them into fibers of shorter length to produce other composite materials such as thermal insulation or carpet for use in the building industry.
The current recovery rate for textiles in the U.S. is approximately 15%, while the remaining 85% of discarded clothing and textiles are sent to landfill or incineration. Just 1 percent of recycled clothes are turned back into new garments—the gold standard for recycling towards a zero-waste economy.
- Introduction to EPR. According to CalRecycle, extended producer responsibility (EPR) is a strategy that places shared responsibility for end-of-life product management on the producers and all entities involved in the product chain, instead of on the general public and local governments. EPR programs rely on industry, formalized in a product stewardship organization, to develop and implement approaches to create a circular economy that makes business sense, with oversight and enforcement provided by the government. This approach provides flexibility for manufacturers, based on their expertise in designing products and the systems that bring these products to market, to design systems to capture those products at the end-of-life to meet statutory goals. Currently, there are five statewide EPR programs: paint, carpet, mattresses, pharmaceutical and sharps waste, and plastic packaging, and single-use plastic items. To date, 33 U.S. states have passed 124 EPR laws covering 15 products, although to date no EPR laws cover textiles. Internationally, France currently has the only EPR law for textiles.
There are several key elements to any EPR program that should be carefully evaluated to develop a working EPR program that avoids loopholes. These elements are part of CalRecycle’s “EPR checklist” and include considerations of (1) the scope of the program: what and who is captured in the covered product and PRO universe; (2) requirements for the stewardship organization; (3) funding for the program; and (4) oversight for the program.
Comments
- Purpose of Bill. According to the author, “the fashion industry is considered a top industrial polluter, accounting for approximately 10% of global carbon emissions. A well-designed and effectively administered statewide textile extended producer responsibility (EPR) program has the potential to develop previously untapped or underutilized upcycled and recycled clothing and fiber markets, as well as to support ongoing efforts to encourage the repair and reuse of clothing and other textiles in California. In so doing, this bill will facilitate a transition to a sustainable, market-aligned, circular economy for textiles that will unlock new production and consumption opportunities to the benefit of the environment, all at a relatively low cost to both the State and consumers alike.”
- Legislative launch, PRO and CalRecycle drive. This bill creates a structure for a new EPR program for textiles, outlining what entities will be in the PRO, what products will be captured in the textile universe, setting specific timelines to develop and deploy a stewardship plan, giving clear authority to CalRecycle to approve and monitor the plan and program, and setting up an enforcement mechanism for the program. In this way, this bill is a culmination of EPR program lessons-learned over the years, providing detailed clarity on a number of implementation and enforcement pitfalls faced by other EPR programs. In regards to the contents of the stewardship plan developed by the PRO and approved by CalRecycle, this bill is more hands off than many EPR programs. This bill requires that the plan develop a strategy to deploy a set number of collection sites, depending on the size of the jurisdiction. However, while it tasks the stewardship plan with considering and setting goals, the bill itself does not set goals that will be established in the stewardship plan, such as recycling rates, postconsumer recycled content rates, appropriate levels of PFAS etc. This gives industry more opportunity to develop appropriate metrics for success in these areas, with overview from CalRecycle, which may be a practical approach given the complexity and variety of the covered products in the program, and that the PRO is tasked with completing a needs assessment that will inform these metrics. On the other hand, the Legislature’s role in determining appropriate goals and metrics of success from a policy perspective is very limited.
Related/Prior Legislation
SB 1187 (Kamlager, Chapter 616, Statutes of 2022) required CalRecycle to establish a three-year pilot project located in the Los Angeles and Ventura Counties partnering with garment manufacturers to study and report on the feasibility of recycling fabric.
SB 54 (Allen, Chapter 75, Statutes of 2022) established the Plastic Pollution Prevention and Packaging Producer Responsibility Act, which sets minimum content requirements for single-use packaging and food service ware and source reduction requirements for plastic single-use packaging and food service ware through an extended producer responsibility program.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
According to the assembly appropriations committee: “CalRecycle estimates costs of $3,257,000 annually in fiscal years 2025-26 and 2026-27 for 18 permanent full-time positions, increasing to $4,552,000 for fiscal year 2027-28 for 27 permanent full-time positions. These staff will receive written notices, review plans and reports, audit, conduct enforcement, and provide ongoing assistance.
“This bill provides for CalRecycle’s costs to be reimbursable by required PRO deposits into the Textile Stewardship Recovery Fund which would not occur for several years. CalRecycle notes that this bill does not identify an initial fund source for start-up costs. CalRecycle states that a loan would be needed and identifies the Electronic Waste Management Program fund as a source of that loan, although this lack of start-up funding also creates cost pressure on the General Fund.”
SUPPORT: (Verified 8/27/24)
5 Gyres Institute
Accelerating Circularity, INC.
Ambercycle
Aquafil
Aquafil Carpet Recycling
Association of California Goodwills
Basf Corporation
Boardrider
California Chapters of The Solid Waste Association of North America's Legislative Task Force
California Environmental Voters
California Product Stewardship Council
California Resource Recovery Association
Californians Against Waste
Calpirg, California Public Interest Research Group
Castro Valley Sanitary District
Cbu Productions
Changing Markets Foundation
Circ, INC.
Cirtex
City of Roseville
City of San Jose
City of Sunnyvale
City of Thousand Oaks
Clean Brands
Coare
County of Santa Clara
Coyuchi
Crra
Delta Diablo
Eco Now Upcycled
Eco-catalyst INC
Ellerali
Environmental Working Group
Eorte
Ethix Merch
Everlane
Fashion Revolution USA
Fibershed
Fort Ord Environmental Justice Network
Friends Committee on Legislation of California
Full Circle Environmental
Geoown AB
Gibc INC Dba Ragroyalty.com
Grace Veterinary, INC
Greenwaste
H&m
Haelixa
Heal the Bay
Intrinsic Advanced Materials, LLC
Jdg Group, INC
Laci
Le Marche (PRIVATE) Limited
Luna Refab
Mara Hoffman
Marmot
Materevolve
Mend It, INC.
Mojave Desert and Mountain Recycling Authority
Molte Volte
National Stewardship Action Council
Northern California Recycling Association
Ocean+main
Operations Reformation
Ouros Industries
Outerknown
Plastic Oceans International
Plastic Pollution Coalition
Plsreturnit INC
Product Stewardship Institute
Project Ropa
R3 Consulting Group, INC.
Ravel
Recyclesmart
Renewcell
Repeat Reuse, INC
Republic Services INC.
Resource Recovery Coalition of California
Rethinkwaste
Roboro
Salinas Valley Recycles
Salinas Valley Solid Waste Authority
Santa Barbara County Resource Recovery & Waste Management Authority
Santa Barbara County Resource Recovery & Waste Management Division
Santa Clara County Recycling and Waste Reduction Commission
Scullyspark
Sea Hugger
Secondary Materials and Recycled Textiles Association
Seventh Generation Advisors
Sew You LLC
Sierra Club
Sierra Club California
Sixone Labs LTD
Social Compassion in Legislation
Sohocolab
Solana Center for Environmental Innovation
Solid Waste Environmental Excellence Performance Standard
Sortile
South Bayside Waste Management Authority Dba Rethinkwaste
St. Catherine University
St. Vincent De Paul Society of Lane Co., INC
Stand Up to Trash
Stopwaste
Surfrider Foundation
Sustainable Works
The Center for Oceanic Awareness, Research, and Education
The Fashion Connection
Threadhaus Co.
Upcycle It Now
Usagain
Western Placer Waste Management Authority
Wishtoyo Chumash Foundation
Zero Panik
Zero Waste Company
Zero Waste San Diego
Zero Waste Sonoma
Zero Waste USA
OPPOSITION: (Verified 8/27/24)
American Apparel & Footwear Association
Cal Chamber
ASSEMBLY FLOOR: 61-11, 8/28/24
AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Connolly, Mike Fong, Friedman, Gabriel, Garcia, Gipson, Grayson, Haney, Hart, Holden, Irwin, Jackson, Jones-Sawyer, Kalra, Lee, Low, Lowenthal, Maienschein, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Pacheco, Papan, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Rendon, Reyes, Luz Rivas, Rodriguez, Blanca Rubio, Santiago, Schiavo, Soria, Ting, Valencia, Villapudua, Ward, Weber, Wicks, Wilson, Wood, Zbur, Robert Rivas
NOES: Megan Dahle, Davies, Dixon, Essayli, Gallagher, Mathis, Jim Patterson, Joe Patterson, Sanchez, Ta, Waldron
NO VOTE RECORDED: Cervantes, Chen, Flora, Hoover, Lackey, Ortega, Wallis
Prepared by: Brynn Cook / E.Q. / (916) 651-4108
8/29/24 13:58:47
**** END ****
SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
Senator Allen, Chair
2023 - 2024 Regular
Bill No. | SB 707 | Hearing Date: | 8/29/2024 |
Author: | Newman | ||
Version: | 8/22/2024 | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Brynn Cook | ||
SUBJECT: Responsible Textile Recovery Act of 2023
DIGEST: Establishes the Responsible Textile Recovery Act of 2024, which creates an extended producer responsibility (EPR) program for stewardship of waste textiles under the oversight of the Department of Resources Recycling and Recovery (CalRecycle).
ANALYSIS:
EXISTING LAW:
- The California Integrated Waste Management Act of 1989, administered by the Department of Resources Recycling and Recovery (CalRecycle), generally regulates the disposal, management, and recycling of solid waste. Establishes a state recycling goal that 75% of solid waste generated is to be diverted from landfill disposal through source reduction, recycling, and composting by 2020. (Public Resources Code (PRC) 40000 et seq.)
- Establishes the Plastic Pollution Prevention and Packaging Producer Responsibility Act, which imposes minimum content requirements for single-use packaging and food ware and source reduction requirements for plastic single-use packaging and food ware, to be achieved through an EPR program. (PRC 42040 et seq.)
- Establishes the Used Mattress Recovery and Recycling Act, which creates an EPR program for the collection and recycling of used mattresses. (PRC 42985 et seq.)
- Establishes the Electronic Waste Recycling Act of 2003, which requires consumers to pay a fee for specified electronic devices, defined to include video screens larger than four inches and battery-embedded products and establishes processes for consumers to return, recycle, and ensure the safe disposal of covered electronic devices. (PRC 42460 et seq.)
- Requires CalRecycle to establish a three-year pilot project located in the Los Angeles and Ventura Counties partnering with garment manufacturers to study and report on the feasibility of recycling fabric. (PRC 40512)
- Establishes, upon appropriation from the Legislature, a Zero-Waste equity grant program that can be used for repair and extending the life of products including textiles. (PRC 42999.5)
- Defines “recycle” or “recycling” as the process of collecting, sorting, cleansing, treating, and reconstituting materials that would otherwise ultimately be disposed of onto land or into water or the atmosphere, and returning them to, or maintaining them within, the economic mainstream in the form of recovered material for new, reused, or reconstituted products, including compost, that meet the quality standards necessary to be used in the marketplace. Specifies that “recycling” does not include combustion, incineration, energy generation, fuel production (except anaerobic digestion), and other forms of disposal. (PRC 42041 (aa))
This bill
- Requires CalRecycle to adopt regulations to implement this bill to be effective no earlier than January 1, 2028.
- Applies to any producer that sells, offers for sale, or distributes a "covered product," defined as an apparel or textile article.
- Requires producers of covered products to form and join a producer responsibility organization (PRO), a nonprofit 501(c)(3), and sell textile products in California only under a PRO plan approved by CalRecycle under the following timeline:
- The PRO, by January 1, 2026, is required to submit to CalRecycle an application describing its governing board and financial plan to pay for all of CalRecycle's costs attributed to the PRO, with CalRecycle required to approve an adequate plan by March 1, 2026.
- A producer of covered products is required to join an approved PRO by July 1, 2026.
- The PRO, by March 1, 2027, in consultation with CalRecycle and local jurisdictions, is required to submit an initial statewide needs assessment to determine steps and investment needed to meet the requirements of this bill, with CalRecycle to approve, conditionally approve, or disapprove the needs assessment within 90 days of submission.
- The PRO, within 12 months of regulations taking effect, is required to submit to CalRecycle a PRO stewardship plan for collection, transportation, repair, sorting, recycling, and safe and proper management of textile products in the state, with CalRecycle having 120 days to review and approve, disapprove, or conditionally approve the plan.
- A producer of covered products is subject to penalties upon approval of a PRO plan, or January 1, 2030, whichever is sooner.
- Requires a plan to be designed to accept and manage all postconsumer covered products and include:
- The names and contact information of producers and brands of covered products covered by the plan;
- A description of the method to establish and administer a means of fully funding the PRO in a manner that distributes the costs among producers using a per unit eco-modulated fee that reflects California sales volumes and the cost of reuse, repair, recycling, and otherwise managing covered products;
- A five-year budget that fully funds the stewardship program;
- Quantifiable five-year and annual performance standards and metrics until CalRecycle publishes performance standards;
- A description of how the PRO will provide for a free and convenient drop-off or collection system for covered products in each county and how the collection sites will be authorized and managed;
- A description of the process by which collected covered products will be sorted, transported, processed, repaired, reused, and recycled, as specified;
- A description of how collection sites will be authorized and managed, as specified;
- A description of the process by which collected covered products will be sorted, transported, processed, reused, and recycled following collection, as specified;
- A comprehensive statewide education and outreach program to educate consumers and promote participation in the program, as specified;
- A description of the strategies, goals, and metrics the PRO will use to annually assess and evaluate the efficacy of the comprehensive statewide education and outreach program;
- A description of efforts to coordinate with specified entities;
- Information to the public on secondhand markets and the benefits of reuse, including repair;
- A requirement that the statewide education and outreach campaign to promote the safe and proper management of covered products;
- Coordination with, and a description of the efforts and methods used to coordinate activities with, other PROs, existing collection and recycling programs, and communitybased organizations;
- A contingency plan in the event the plan expires or is revoked;
- Develop a program in coordination with other program operators to support laundries for laundering covered products;
- A description of how the plan will address per- and polyfluoroalkyl substances (PFAS) and other chemical contamination;
- Develop strategies to address design challenges for covered products;
- A description of how the PRO will minimize the negative environmental impacts of all operations associated with the plan; and,
- A process by which the financial activities of the PRO or individual producers that are related to implementation of the plan will be subject to an independent audit.
- Establishes the Textile Stewardship Recovery Fund for the deposit of all moneys received from PROs for use by CalRecycle to implement this bill.
- Requires CalRecycle to post on its internet website a list of producers in compliance with this bill, and authorizes CalRecycle to assess civil penalties up to $10,000 per day for violations or $50,000 per day for intentional or knowing violations, and to revoke a PRO's plan approval.
- Specifies requirements for performance standards, annual reports, and audits.
- Requires any local jurisdiction that offers to participate in the PRO's stewardship program as a collection site to comply with all applicable federal, state, or municipal laws or adhere to the rules established by the PRO and requires the PRO to notify CalRecycle if a collection site fails to comply with specified requirements.
Background
- Textiles waste is a growing environmental problem. According to CalRecycle’s 2020 ‘Facility-Based Characterization of Solid Waste in California’ report, textiles, including apparel, textile (cloth), and textile articles (such as linens, curtains, etc.) were the sixth most prevalent material type disposed of by single-family residences in 2018. Overall, Californians disposed of nearly 1.2 million metric tons of textiles in 2018, making up about 3% of California’s total waste stream.
Textile waste has been supercharged by the rise of fast fashion. “Fast fashion” is an approach to the design, creation, and marketing of clothing that emphasizes making fashion trends quickly and cheaply available to consumers. Retailers and producers benefit from frequently updating styles to incentivize shopping. Fast fashion has contributed to a global doubling of clothing production from 2000 to 2014. Fast fashion provides clothes to consumers for lower prices, but sacrifices the quality and longevity of garments in the process: this leads to more waste.
Dealing with all this waste is expensive: in 2021, approximately 1.2 million tons of textiles were disposed of, costing California taxpayers more than $70 million dollars in disposal costs.
This waste comes with a carbon cost as well: textile and garment industries account for between 6-8% of total global carbon emissions, or some 1.7 billion tons in carbon emissions per year.
- Reuse and Recycle: What is currently done with old textiles? According to CalRecycle, 95% of California’s textile waste is reusable or recyclable, meaning that the textiles are in a condition for reuse or still have tags identifying the material used (tags are important to recycling since it is critical to know what the material type of a textile is to select the proper recycling processes for that material).
Both recycling and reuse for used textiles begin when textiles are discarded--either when businesses toss out scrap or surplus material, or when consumers throw out old clothes or textile household items, like sheets, curtains, and pillows. Once these materials have been collected, they are sorted to separate reusable material from material that is only eligible for recycling or landfilling.
According to CalRecycle, only 10-15% of garments donated or sold to second-hand markets are directly resold in the stores where they are deposited. Of the remaining material, 30% is cut down to rags, 20% is converted into recycled fibers for uses such as carpet padding, insulation, and pillow stuffing, 5% is landfilled in-State, and 45% is sent overseas for further processing. Items that are sent overseas may or may not have a long second life: of the 15 million used garments that flow into Ghana every week, an estimated 40% are deemed worthless upon arrival and landfilled. This off-shore landfilling comes at a carbon cost, since shipping is a carbon-intensive process.
Recycling - Recycling textiles is a multistep process. Natural fibers are mechanically processed: for example, cotton textiles are shredded, the fibers are separated, and then re-spun with virgin fibers into yarn to make new textiles. Synthetic fibers, such as polyester, can sometimes be mechanically processed by shredding, cleaning, molding into pellets, and then extruding into new fibers. If mechanical processing is not possible, the textiles can also undergo the more intensive process of chemical processing, where the synthetic material is broken down into its component molecules to remove contaminants and then reformed into fibers.
Blends of materials, either different types of natural, synthetic, or both are typically not eligible for chemical processing, but can be mechanically processed and downcycled: blended fabrics are shredded and pulled to transform them into fibers of shorter length to produce other composite materials such as thermal insulation or carpet for use in the building industry.
The current recovery rate for textiles in the U.S. is approximately 15%, while the remaining 85% of discarded clothing and textiles are sent to landfill or incineration. Just 1 percent of recycled clothes are turned back into new garments—the gold standard for recycling towards a zero-waste economy.
- Introduction to EPR. According to CalRecycle, extended producer responsibility (EPR) is a strategy that places shared responsibility for end-of-life product management on the producers and all entities involved in the product chain, instead of on the general public and local governments. EPR programs rely on industry, formalized in a product stewardship organization, to develop and implement approaches to create a circular economy that makes business sense, with oversight and enforcement provided by the government. This approach provides flexibility for manufacturers, based on their expertise in designing products and the systems that bring these products to market, to design systems to capture those products at the end-of-life to meet statutory goals. Currently, there are five statewide EPR programs: paint, carpet, mattresses, pharmaceutical and sharps waste, and plastic packaging, and single-use plastic items. To date, 33 U.S. states have passed 124 EPR laws covering 15 products, although to date no EPR laws cover textiles. Internationally, France currently has the only EPR law for textiles.
There are several key elements to any EPR program that should be carefully evaluated to develop a working EPR program that avoids loopholes. These elements are part of CalRecycle’s “EPR checklist” and include considerations of (1) the scope of the program: what and who is captured in the covered product and PRO universe; (2) requirements for the stewardship organization; (3) funding for the program; and (4) oversight for the program.
Comments
- Purpose of Bill. According to the author, “the fashion industry is considered a top industrial polluter, accounting for approximately 10% of global carbon emissions. A well-designed and effectively administered statewide textile extended producer responsibility (EPR) program has the potential to develop previously untapped or underutilized upcycled and recycled clothing and fiber markets, as well as to support ongoing efforts to encourage the repair and reuse of clothing and other textiles in California. In so doing, SB 707 will facilitate a transition to a sustainable, market-aligned, circular economy for textiles that will unlock new production and consumption opportunities to the benefit of the environment, all at a relatively low cost to both the State and consumers alike.”
- Legislative launch, PRO and CalRecycle drive. SB 707 creates a structure for a new EPR program for textiles, outlining what entities will be in the PRO, what products will be captured in the textile universe, setting specific timelines to develop and deploy a stewardship plan, giving clear authority to CalRecycle to approve and monitor the plan and program, and setting up an enforcement mechanism for the program. In this way, SB 707 is a culmination of EPR program lessons-learned over the years, providing detailed clarity on a number of implementation and enforcement pitfalls faced by other EPR programs. In regards to the contents of the stewardship plan developed by the PRO and approved by CalRecycle, SB 707 is more hands-off than many EPR programs. SB 707 does require that the plan develop a strategy to deploy a set number of collection sites, depending on the size of the jurisdiction, but generally while the bill tasks the stewardship plan with considering and setting goals, the legislation itself does not set goals that will be established in the stewardship plan, such as recycling rates, postconsumer recycled content rates, appropriate levels of PFAS for recycled textiles, etc. This gives industry more opportunity to set goals and develop appropriate metrics for success in these areas, with overview from CalRecycle, which may be a practical approach given the complexity and variety of the covered products in the program. This industry led goal formulation may also be pragmatic given that the PRO is tasked with completing a needs assessment that will inform these metrics, and setting goals before the completion fo the needs assessment may be premature. On the other hand, the Legislature’s role in determining appropriate goals and metrics of success from a policy perspective is quite limited.
- Changes since the bill left the Senate. Assembly amendments include online marketplaces with sales over $1 million under the purview of the bill, requires that the PRO develop a needs assessment for covered products, and removes the advisory committee for the PRO from the program. The amendments add further requirements to the producer responsibility plan, including requiring the plan to consider how to manage PFAS in products, how products will reach responsible end markets, and adjusts collection site requirements for jurisdictions based on their population. Assembly amendments adjust various timelines for implementation and review of the program and add makes various clarifying amendments to terms including producer responsibility organization and covered product.
Related/Prior Legislation
SB 1187 (Kamlager, Chapter 616, Statutes of 2022) requires CalRecycle to establish a three-year pilot project located in the Los Angeles and Ventura Counties partnering with garment manufacturers to study and report on the feasibility of recycling fabric.
SB 54 (Allen, Chapter 75, Statutes of 2022) establishes the Plastic Pollution Prevention and Packaging Producer Responsibility Act, which sets minimum content requirements for single-use packaging and food service ware and source reduction requirements for plastic single-use packaging and food service ware through an extended producer responsibility program.
SUPPORT:
(Verified 08/28/2024)
5 Gyres Institute
Accelerating Circularity, INC.
Ambercycle
Aquafil
Aquafil Carpet Recycling
Association of California Goodwills
Basf Corporation (trinamix Gmbh)
Boardrider
California Chapters of The Solid Waste Association of North America's Legislative Task Force
California Environmental Voters
California Product Stewardship Council
California Resource Recovery Association
Californians Against Waste
Calpirg, California Public Interest Research Group
Castro Valley Sanitary District
Cbu Productions
Center for Oceanic Awareness, Research, & Education
Changing Markets Foundation
Chief Sustainability Officer & Vp Operations
Circ, INC.
Cirtex
City of Roseville
City of San Jose
City of Sunnyvale
City of Thousand Oaks
Clean Brands
Coare
County of Santa Clara
Coyuchi
Crra
Delta Diablo
Eco Now Upcycled
Eco-catalyst INC
Ellerali
Environmental Working Group
Eorte
Ethix Merch
Everlane
Fashion Revolution USA
Fibershed
Fort Ord Environmental Justice Network
Friends Committee on Legislation of California
Full Circle Environmental
Geoown AB
Gibc INC Dba Ragroyalty.com
Grace Veterinary, INC
Greenwaste
H&m
Haelixa
Heal the Bay
Intrinsic Advanced Materials, LLC (IAM)
Jdg Group, INC
Laci
Le Marche (PRIVATE) Limited
Luna Refab
Mara Hoffman
Marmot
Materevolve
Mend It, INC.
Mojave Desert and Mountain Recycling Authority
Molte Volte
National Stewardship Action Council
Northern California Recycling Association
Ocean+main
Operations Reformation
Ouros Industries
Outerknown
Plastic Oceans International
Plastic Pollution Coalition
Plsreturnit INC
Product Stewardship Institute
Project Ropa
R3 Consulting Group, INC.
Ravel
Recyclesmart
Renewcell
Repeat Reuse, INC
Republic Services INC.
Resource Recovery Coalition of California
Rethinkwaste
Roboro
Salinas Valley Recycles
Salinas Valley Solid Waste Authority
Santa Barbara County Resource Recovery & Waste Management Authority
Santa Barbara County Resource Recovery & Waste Management Division
Santa Clara County Recycling and Waste Reduction Commission
Scullyspark
Sea Hugger
Secondary Materials and Recycled Textiles (SMART) Association
Seventh Generation Advisors
Sew You LLC
Sierra Club
Sierra Club California
Sixone Labs LTD
Social Compassion in Legislation
Sohocolab
Solana Center for Environmental Innovation
Solid Waste Environmental Excellence Performance Standard (SWEEP)
Sortile
South Bayside Waste Management Authority (sbwma ) Dba Rethinkwaste
St. Catherine University
St. Vincent De Paul Society of Lane Co., INC
Stand Up to Trash
Stopwaste
Surfrider Foundation
Sustainable Works
The Center for Oceanic Awareness, Research, and Education
The Fashion Connection
Threadhaus Co.
Upcycle It Now
Usagain
Western Placer Waste Management Authority (WPWMA)
Wishtoyo Chumash Foundation
Zero Panik
Zero Waste Company
Zero Waste San Diego
Zero Waste Sonoma
Zero Waste USA
OPPOSITION:
(Verified 08/28/2024)
None received
-- END --
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB 707 |
UNFINISHED BUSINESS
Bill No: SB 707
Author: Newman (D), et al.
Amended: 8/22/24
Vote: 21
PRIOR VOTES NOT RELEVANT
ASSEMBLY FLOOR: 46-5, 8/28/24 – Roll call not available
SUBJECT: Responsible Textile Recovery Act of 2024
SOURCE: Author
DIGEST:
Establishes the Responsible Textile Recovery Act of 2024, which creates an extended producer responsibility (EPR) program for stewardship of waste textiles under the oversight of the Department of Resources Recycling and Recovery (CalRecycle).
Assembly Amendments
include online marketplaces with sales over $1 million under the purview of the bill, requires that the PRO develop a needs assessment for covered products, and removes the advisory committee for the PRO from the program. The amendments add further requirements to the producer responsibility plan, including requiring the plan to consider how to manage PFAS in products, how products will reach responsible end markets, and adjusts collection site requirements for jurisdictions based on their population. Assembly amendments adjust various timelines for implementation and review of the program and add makes various clarifying amendments to terms including producer responsibility organization and covered product.
ANALYSIS:
Existing law:
- The California Integrated Waste Management Act of 1989, administered by the Department of Resources Recycling and Recovery (CalRecycle), generally regulates the disposal, management, and recycling of solid waste. Establishes a state recycling goal that 75% of solid waste generated is to be diverted from landfill disposal through source reduction, recycling, and composting by 2020. (Public Resources Code Section (PRC) 40000 et seq.)
- Establishes the Plastic Pollution Prevention and Packaging Producer Responsibility Act, which imposes minimum content requirements for single-use packaging and food ware and source reduction requirements for plastic single-use packaging and food ware, to be achieved through an EPR program. (PRC 42040 et seq.)
- Establishes the Used Mattress Recovery and Recycling Act, which creates an EPR program for the collection and recycling of used mattresses. (PRC 42985 et seq.)
- Establishes the Electronic Waste Recycling Act of 2003, which requires consumers to pay a fee for specified electronic devices, defined to include video screens larger than four inches and battery-embedded products and establishes processes for consumers to return, recycle, and ensure the safe disposal of covered electronic devices. (PRC 42460 et seq.)
- Requires CalRecycle to establish a three-year pilot project located in the Los Angeles and Ventura Counties partnering with garment manufacturers to study and report on the feasibility of recycling fabric. (PRC 40512)
- Establishes, upon appropriation from the Legislature, a Zero-Waste equity grant program that can be used for repair and extending the life of products including textiles. (PRC 42999.5)
- Defines “recycle” or “recycling” as the process of collecting, sorting, cleansing, treating, and reconstituting materials that would otherwise ultimately be disposed of onto land or into water or the atmosphere, and returning them to, or maintaining them within, the economic mainstream in the form of recovered material for new, reused, or reconstituted products, including compost, that meet the quality standards necessary to be used in the marketplace. Specifies that “recycling” does not include combustion, incineration, energy generation, fuel production (except anaerobic digestion), and other forms of disposal. (PRC 42041 (aa))
This bill
- Requires CalRecycle to adopt regulations to implement this bill to be effective no earlier than January 1, 2028.
- Applies to any producer that sells, offers for sale, or distributes a "covered product," defined as an apparel or textile article.
- Requires producers of covered products to form and join a producer responsibility organization (PRO), a nonprofit 501(c)(3), and sell textile products in California only under a PRO plan approved by CalRecycle under the following timeline:
- The PRO, by January 1, 2026, is required to submit to CalRecycle an application describing its governing board and financial plan to pay for all of CalRecycle's costs attributed to the PRO, with CalRecycle required to approve an adequate plan by March 1, 2026.
- A producer of covered products is required to join an approved PRO by July 1, 2026.
- The PRO, by March 1, 2027, in consultation with CalRecycle and local jurisdictions, is required to submit an initial statewide needs assessment to determine steps and investment needed to meet the requirements of this bill, with CalRecycle to approve, conditionally approve, or disapprove the needs assessment within 90 days of submission.
- The PRO, within 12 months of regulations taking effect, is required to submit to CalRecycle a PRO stewardship plan for collection, transportation, repair, sorting, recycling, and safe and proper management of textile products in the state, with CalRecycle having 120 days to review and approve, disapprove, or conditionally approve the plan.
- A producer of covered products is subject to penalties upon approval of a PRO plan, or January 1, 2030, whichever is sooner.
- Requires a plan to be designed to accept and manage all postconsumer covered products and include:
- The names and contact information of producers and brands of covered products covered by the plan;
- A description of the method to establish and administer a means of fully funding the PRO in a manner that distributes the costs among producers using a per unit eco-modulated fee that reflects California sales volumes and the cost of reuse, repair, recycling, and otherwise managing covered products;
- A five-year budget that fully funds the stewardship program; d) Quantifiable five-year and annual performance standards and metrics until CalRecycle publishes performance standards; e) A description of how the PRO will provide for a free and convenient drop-off or collection system for covered products in each county and how the collection sites will be authorized and managed; f) A description of the process by which collected covered products will be sorted, transported, processed, repaired, reused, and recycled, as specified; g) A description of how collection sites will be authorized and managed, as specified; h) A description of the process by which collected covered products will be sorted, transported, processed, reused, and recycled following collection, as specified; i) A comprehensive statewide education and outreach program to educate consumers and promote participation in the program, as specified; SB 707 Page 4 j) A description of the strategies, goals, and metrics the PRO will use to annually assess and evaluate the efficacy of the comprehensive statewide education and outreach program; k) A description of efforts to coordinate with specified entities; l) Information to the public on secondhand markets and the benefits of reuse, including repair; m) A requirement that the statewide education and outreach campaign to promote the safe and proper management of covered products; n) Coordination with, and a description of the efforts and methods used to coordinate activities with, other PROs, existing collection and recycling programs, and communitybased organizations; o) A contingency plan in the event the plan expires or is revoked; p) Develop a program in coordination with other program operators to support laundries for laundering covered products; q) A description of how the plan will address per- and polyfluoroalkyl substances (PFAS) and other chemical contamination; r) Develop strategies to address design challenges for covered products; s) A description of how the PRO will minimize the negative environmental impacts of all operations associated with the plan; and, t) A process by which the financial activities of the PRO or individual producers that are related to implementation of the plan will be subject to an independent audit.
- Establishes the Textile Stewardship Recovery Fund for the deposit of all moneys received from PROs for use by CalRecycle to implement this bill.
- Requires CalRecycle to post on its internet website a list of producers in compliance with this bill, and authorizes CalRecycle to assess civil penalties up to $10,000 per day for violations or $50,000 per day for intentional or knowing violations, and to revoke a PRO's plan approval.
- Specifies requirements for performance standards, annual reports, and audits.
- Requires any local jurisdiction that offers to participate in the PRO's stewardship program as a collection site to comply with all applicable federal, state, or municipal laws or adhere to the rules established by the PRO and requires the PRO to notify CalRecycle if a collection site fails to comply with specified requirements.
Background
- Textiles waste is a growing environmental problem. According to CalRecycle’s 2020 ‘Facility-Based Characterization of Solid Waste in California’ report, textiles, including apparel, textile (cloth), and textile articles (such as linens, curtains, etc.) were the sixth most prevalent material type disposed of by single-family residences in 2018. Overall, Californians disposed of nearly 1.2 million metric tons of textiles in 2018, making up about 3% of California’s total waste stream.
Textile waste has been supercharged by the rise of fast fashion. “Fast fashion” is an approach to the design, creation, and marketing of clothing that emphasizes making fashion trends quickly and cheaply available to consumers. Retailers and producers benefit from frequently updating styles to incentivize shopping. Fast fashion has contributed to a global doubling of clothing production from 2000 to 2014. Fast fashion provides clothes to consumers for lower prices, but sacrifices the quality and longevity of garments in the process: this leads to more waste.
Dealing with all this waste is expensive: in 2021, approximately 1.2 million tons of textiles were disposed of, costing California taxpayers more than $70 million dollars in disposal costs.
This waste comes with a carbon cost as well: textile and garment industries account for between 6-8% of total global carbon emissions, or some 1.7 billion tons in carbon emissions per year.
- Reuse and Recycle: What is currently done with old textiles? According to CalRecycle, 95% of California’s textile waste is reusable or recyclable, meaning that the textiles are in a condition for reuse or still have tags identifying the material used (tags are important to recycling since it is critical to know what the material type of a textile is to select the proper recycling processes for that material).
Both recycling and reuse for used textiles begin when textiles are discarded--either when businesses toss out scrap or surplus material, or when consumers throw out old clothes or textile household items, like sheets, curtains, and pillows. Once these materials have been collected, they are sorted to separate reusable material from material that is only eligible for recycling or landfilling.
According to CalRecycle, only 10-15% of garments donated or sold to second-hand markets are directly resold in the stores where they are deposited. Of the remaining material, 30% is cut down to rags, 20% is converted into recycled fibers for uses such as carpet padding, insulation, and pillow stuffing, 5% is landfilled in-State, and 45% is sent overseas for further processing. Items that are sent overseas may or may not have a long second life: of the 15 million used garments that flow into Ghana every week, an estimated 40% are deemed worthless upon arrival and landfilled. This off-shore landfilling comes at a carbon cost, since shipping is a carbon-intensive process.
Recycling - Recycling textiles is a multistep process. Natural fibers are mechanically processed: for example, cotton textiles are shredded, the fibers are separated, and then re-spun with virgin fibers into yarn to make new textiles. Synthetic fibers, such as polyester, can sometimes be mechanically processed by shredding, cleaning, molding into pellets, and then extruding into new fibers. If mechanical processing is not possible, the textiles can also undergo the more intensive process of chemical processing, where the synthetic material is broken down into its component molecules to remove contaminants and then reformed into fibers.
Blends of materials, either different types of natural, synthetic, or both are typically not eligible for chemical processing, but can be mechanically processed and downcycled: blended fabrics are shredded and pulled to transform them into fibers of shorter length to produce other composite materials such as thermal insulation or carpet for use in the building industry.
The current recovery rate for textiles in the U.S. is approximately 15%, while the remaining 85% of discarded clothing and textiles are sent to landfill or incineration. Just 1 percent of recycled clothes are turned back into new garments—the gold standard for recycling towards a zero-waste economy.
- Introduction to EPR. According to CalRecycle, extended producer responsibility (EPR) is a strategy that places shared responsibility for end-of-life product management on the producers and all entities involved in the product chain, instead of on the general public and local governments. EPR programs rely on industry, formalized in a product stewardship organization, to develop and implement approaches to create a circular economy that makes business sense, with oversight and enforcement provided by the government. This approach provides flexibility for manufacturers, based on their expertise in designing products and the systems that bring these products to market, to design systems to capture those products at the end-of-life to meet statutory goals. Currently, there are five statewide EPR programs: paint, carpet, mattresses, pharmaceutical and sharps waste, and plastic packaging, and single-use plastic items. To date, 33 U.S. states have passed 124 EPR laws covering 15 products, although to date no EPR laws cover textiles. Internationally, France currently has the only EPR law for textiles.
There are several key elements to any EPR program that should be carefully evaluated to develop a working EPR program that avoids loopholes. These elements are part of CalRecycle’s “EPR checklist” and include considerations of (1) the scope of the program: what and who is captured in the covered product and PRO universe; (2) requirements for the stewardship organization; (3) funding for the program; and (4) oversight for the program.
Comments
- Purpose of Bill. According to the author, “the fashion industry is considered a top industrial polluter, accounting for approximately 10% of global carbon emissions. A well-designed and effectively administered statewide textile extended producer responsibility (EPR) program has the potential to develop previously untapped or underutilized upcycled and recycled clothing and fiber markets, as well as to support ongoing efforts to encourage the repair and reuse of clothing and other textiles in California. In so doing, this bill will facilitate a transition to a sustainable, market-aligned, circular economy for textiles that will unlock new production and consumption opportunities to the benefit of the environment, all at a relatively low cost to both the State and consumers alike.”
- Legislative launch, PRO and CalRecycle drive. This bill creates a structure for a new EPR program for textiles, outlining what entities will be in the PRO, what products will be captured in the textile universe, setting specific timelines to develop and deploy a stewardship plan, giving clear authority to CalRecycle to approve and monitor the plan and program, and setting up an enforcement mechanism for the program. In this way, this bill is a culmination of EPR program lessons-learned over the years, providing detailed clarity on a number of implementation and enforcement pitfalls faced by other EPR programs. In regards to the contents of the stewardship plan developed by the PRO and approved by CalRecycle, this bill is more hands off than many EPR programs. This bill requires that the plan develop a strategy to deploy a set number of collection sites, depending on the size of the jurisdiction. However, while it tasks the stewardship plan with considering and setting goals, the bill itself does not set goals that will be established in the stewardship plan, such as recycling rates, postconsumer recycled content rates, appropriate levels of PFAS etc. This gives industry more opportunity to develop appropriate metrics for success in these areas, with overview from CalRecycle, which may be a practical approach given the complexity and variety of the covered products in the program, and that the PRO is tasked with completing a needs assessment that will inform these metrics. On the other hand, the Legislature’s role in determining appropriate goals and metrics of success from a policy perspective is very limited.
Related/Prior Legislation
SB 1187 (Kamlager, Chapter 616, Statutes of 2022) required CalRecycle to establish a three-year pilot project located in the Los Angeles and Ventura Counties partnering with garment manufacturers to study and report on the feasibility of recycling fabric.
SB 54 (Allen, Chapter 75, Statutes of 2022) established the Plastic Pollution Prevention and Packaging Producer Responsibility Act, which sets minimum content requirements for single-use packaging and food service ware and source reduction requirements for plastic single-use packaging and food service ware through an extended producer responsibility program.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
According to the assembly appropriations committee: “CalRecycle estimates costs of $3,257,000 annually in fiscal years 2025-26 and 2026-27 for 18 permanent full-time positions, increasing to $4,552,000 for fiscal year 2027-28 for 27 permanent full-time positions. These staff will receive written notices, review plans and reports, audit, conduct enforcement, and provide ongoing assistance.
“This bill provides for CalRecycle’s costs to be reimbursable by required PRO deposits into the Textile Stewardship Recovery Fund which would not occur for several years. CalRecycle notes that this bill does not identify an initial fund source for start-up costs. CalRecycle states that a loan would be needed and identifies the Electronic Waste Management Program fund as a source of that loan, although this lack of start-up funding also creates cost pressure on the General Fund.”
SUPPORT: (Verified 8/27/24)
5 Gyres Institute
Accelerating Circularity, INC.
Ambercycle
Aquafil
Aquafil Carpet Recycling
Association of California Goodwills
Basf Corporation
Boardrider
California Chapters of The Solid Waste Association of North America's Legislative Task Force
California Environmental Voters
California Product Stewardship Council
California Resource Recovery Association
Californians Against Waste
Calpirg, California Public Interest Research Group
Castro Valley Sanitary District
Cbu Productions
Changing Markets Foundation
Circ, INC.
Cirtex
City of Roseville
City of San Jose
City of Sunnyvale
City of Thousand Oaks
Clean Brands
Coare
County of Santa Clara
Coyuchi
Crra
Delta Diablo
Eco Now Upcycled
Eco-catalyst INC
Ellerali
Environmental Working Group
Eorte
Ethix Merch
Everlane
Fashion Revolution USA
Fibershed
Fort Ord Environmental Justice Network
Friends Committee on Legislation of California
Full Circle Environmental
Geoown AB
Gibc INC Dba Ragroyalty.com
Grace Veterinary, INC
Greenwaste
H&m
Haelixa
Heal the Bay
Intrinsic Advanced Materials, LLC
Jdg Group, INC
Laci
Le Marche (PRIVATE) Limited
Luna Refab
Mara Hoffman
Marmot
Materevolve
Mend It, INC.
Mojave Desert and Mountain Recycling Authority
Molte Volte
National Stewardship Action Council
Northern California Recycling Association
Ocean+main
Operations Reformation
Ouros Industries
Outerknown
Plastic Oceans International
Plastic Pollution Coalition
Plsreturnit INC
Product Stewardship Institute
Project Ropa
R3 Consulting Group, INC.
Ravel
Recyclesmart
Renewcell
Repeat Reuse, INC
Republic Services INC.
Resource Recovery Coalition of California
Rethinkwaste
Roboro
Salinas Valley Recycles
Salinas Valley Solid Waste Authority
Santa Barbara County Resource Recovery & Waste Management Authority
Santa Barbara County Resource Recovery & Waste Management Division
Santa Clara County Recycling and Waste Reduction Commission
Scullyspark
Sea Hugger
Secondary Materials and Recycled Textiles Association
Seventh Generation Advisors
Sew You LLC
Sierra Club
Sierra Club California
Sixone Labs LTD
Social Compassion in Legislation
Sohocolab
Solana Center for Environmental Innovation
Solid Waste Environmental Excellence Performance Standard
Sortile
South Bayside Waste Management Authority Dba Rethinkwaste
St. Catherine University
St. Vincent De Paul Society of Lane Co., INC
Stand Up to Trash
Stopwaste
Surfrider Foundation
Sustainable Works
The Center for Oceanic Awareness, Research, and Education
The Fashion Connection
Threadhaus Co.
Upcycle It Now
Usagain
Western Placer Waste Management Authority
Wishtoyo Chumash Foundation
Zero Panik
Zero Waste Company
Zero Waste San Diego
Zero Waste Sonoma
Zero Waste USA
OPPOSITION: (Verified 8/27/24)
American Apparel & Footwear Association
Cal Chamber
Prepared by: Brynn Cook / E.Q. / (916) 651-4108
8/28/24 22:09:19
**** END ****
SENATE THIRD READING
STR Bill Id:SB 707
Author:(Newman)
As Amended Ver:August 22, 2024
Majority vote
SUMMARY
Establishes the Responsible Textile Recovery Act of 2024, which creates an extended producer responsibility (EPR) program for stewardship of waste textiles under the oversight of the Department of Resources Recycling and Recovery (CalRecycle).
Major Provisions
- Requires CalRecycle to adopt regulations to implement this bill to be effective no earlier than January 1, 2028.
- Applies to any producer that sells, offers for sale, or distributes a "covered product," defined as an apparel or textile article.
- Requires producers of covered products to form and join a producer responsibility organization (PRO), a nonprofit 501(c)(3), and sell textile products in California only under a PRO plan approved by CalRecycle under the following timeline:
- The PRO, by January 1, 2026, is required to submit to CalRecycle an application describing its governing board and financial plan to pay for all of CalRecycle's costs attributed to the PRO, with CalRecycle required to approve an adequate plan by March 1, 2026.
- A producer of covered products is required to join an approved PRO by July 1, 2026.
- The PRO, by March 1, 2027, in consultation with CalRecycle and local jurisdictions, is required to submit an initial statewide needs assessment to determine steps and investment needed to meet the requirements of this bill, with CalRecycle to approve, conditionally approve, or disapprove the needs assessment within 90 days of submission.
- The PRO, within 12 months of regulations taking effect, is required to submit to CalRecycle a PRO stewardship plan for collection, transportation, repair, sorting, recycling, and safe and proper management of textile products in the state, with CalRecycle having 120 days to review and approve, disapprove, or conditionally approve the plan.
- A producer of covered products is subject to penalties upon approval of a PRO plan, or January 1, 2030, whichever is sooner.
- Establishes the Textile Stewardship Recovery Fund for the deposit of all moneys received from PROs for use by CalRecycle to implement this bill.
- Requires CalRecycle to post on its internet website a list of producers in compliance with this bill, and authorizes CalRecycle to assess civil penalties up to $10,000 per day for violations or $50,000 per day for intentional or knowing violations, and to revoke a PRO's plan approval.
- Specifies requirements for performance standards, annual reports, and audits.
- Requires any local jurisdiction that offers to participate in the PRO's stewardship program as a collection site to comply with all applicable federal, state, or municipal laws or adhere to the rules established by the PRO and requires the PRO to notify CalRecycle if a collection site fails to comply with specified requirements.
COMMENTS
Textile waste. According to CalRecycle's 2020 Facility-Based Characterization of Solid Waste in California report, textiles, including apparel, fabric, and textile articles (such as linens, curtains, etc.) were the sixth most prevalent material type disposed of by single-family residences in 2018. Overall, Californians disposed of nearly 1.2 million metric tons of textiles in 2018, making up about 3% of California's total waste stream.
The generation of textile waste has been supercharged by the rise of fast fashion. "Fast fashion" is an approach to the design, creation, and marketing of clothing that emphasizes making fashion trends quickly and cheaply available to consumers. Retailers and producers benefit from frequently updating styles to incentivize shopping. Fast fashion contributed to a global doubling of clothing production from 2000 to 2014. Fast fashion provides clothes to consumers for lower prices but sacrifices the quality and longevity of garments in the process, leading to more waste.
Dealing with all this waste is expensive; in 2021, California ratepayers paid more than $70 million dollars in disposal costs. Textile waste comes with a carbon cost as well; textile and garment industries account for between 6-8% of total global carbon emissions, or some 1.7 billion tons in carbon emissions per year.
Managing waste textiles. According to CalRecycle, 95% of California's textile waste is reusable or recyclable, meaning that the textiles are in a condition that allows them to be reused, or that still have tags identifying the materials used. Tags are critical for textile recycling in order to identify the material type.
Both reuse and recycling for used textiles begin when textiles are discarded, either when businesses toss out scrap or surplus material, or when consumers dispose of old clothes or textile household items, like sheets, curtains, and pillows. Once these materials have been collected, they can be sorted to separate reusable material from material that is only eligible for recycling or landfilling.
According to CalRecycle, only 10-15% of garments donated or sold to second-hand markets are directly resold in the stores where they are collected. Of the remaining material, 30% is cut down to rags, 20% is converted into recycled fibers for uses such as carpet padding, insulation, and pillow stuffing, 5% is landfilled in the state, and 45% is sent overseas for further processing or eventual disposal. Items that are sent overseas may or may not have a second life. For example, of the 15 million used garments that flow into Ghana every week, an estimated 40% are deemed worthless upon arrival and landfilled. This off-shore landfilling comes at a high carbon cost, since shipping overseas is a carbon-intensive process.
Recycling textiles is a multistep process. Natural fibers are mechanically processed. For example, cotton textiles are shredded, the fibers are separated, and then re-spun with virgin fibers into yarn to make new textiles. Synthetic fibers, such as polyester, can sometimes be mechanically processed by shredding, cleaning, molding into pellets, and then extruding into new fibers. If mechanical processing is not possible, the textiles can also undergo the more intensive process of chemical processing, where the synthetic material is broken down into its component molecules to remove contaminants and then reformed into fibers. Blends of materials, either different types of natural fibers, synthetic fibers, or both, are typically not eligible for chemical processing, but can be mechanically processed and downcycled into composite materials, such as thermal insulation or carpet for use in the building industry.
The current recovery rate for textiles in the United States is approximately 15%, while the remaining 85% of discarded clothing and textiles are sent to landfill or incineration. Just 1% of recycled clothes are turned back into new garments, which is the gold standard for a circular economy.
Pilot programs. According to the bill's sponsor, the California Product Stewardship Council (CPSC), there are various textile recycling pilot projects underway or completed in San Francisco, the City of Los Angeles, the County of Los Angeles, and the County of Alameda. Additionally, SB 1187 (Kamlager), Chapter 616, Statutes of 2022, requires CalRecycle to establish a three-year pilot project in the Counties of Los Angeles and Ventura to study and report on the feasibility of recycling fabric; however, this program has not received funding through the Budget process.
EPR. According to CalRecycle, EPR is a strategy that places shared responsibility for end-of-life management for products on the producers and all entities involved in the product chain, instead of entirely on local governments and ratepayers. EPR programs rely on industry, formalized in a product stewardship organization, to develop and implement approaches to create a circular economy that makes business sense, with oversight and enforcement provided by a government entity. This approach provides flexibility for manufacturers to design products in a way that facilitates recycling and to develop systems to capture those products at the end-of-life to meet statutory goals.
According to the Author
The fashion industry is considered a top industrial polluter, accounting for approximately 10% of global carbon emissions. As textiles decompose, they emit high levels of methane gas, a major contributor to global warming. The phenomenon of "fast fashion," which revolves around the marketing and sale of low-cost, low-quality garments that go out of vogue with increasing speed, is a major contributor to this alarming environmental trend.
A well-designed and effectively administered statewide textile [EPR] program has the potential to develop previously untapped or underutilized upcycled and recycled clothing and fiber markets, as well as to support ongoing efforts to encourage the repair and reuse of clothing and other textiles in California. In so doing, SB 707 will facilitate a transition to a sustainable, market-aligned, circular economy for textiles that will unlock new production and consumption opportunities to the benefit of the environment, all at a relatively low cost to both the state and consumers alike.
Arguments in Support
A coalition of supporters state:
Textiles are the fifth most common material and the fastest growing category in residential and commercial waste streams in California. Textile and clothing producers over-produce hard-to manage materials that can absorb, tangle, and combust if mixed into plastic recycling system. The cost burden for managing unusable textiles has fallen on thrifts, collectors, and secondhand markets, while producers keep making products with no plan for what to do with them when they are no longer wearable. For too long, textiles collected under the guise of recycling ended up in markets with less infrastructure and environmental protections. Industry efforts to increase textile reuse, repair, and recycling options have proven siloed and lacking transparency.
Arguments in Opposition
None on file.
FISCAL COMMENTS
According to the Assembly Appropriations Committee, CalRecycle estimates costs of $3,257,000 annually in fiscal years 2025-26 and 2026-27 for 18 permanent full-time positions, increasing to $4,552,000 for fiscal year 2027-28 for 27 permanent full-time positions. These staff will receive written notices, review plans and reports, audit, conduct enforcement, and provide ongoing assistance.
This bill provides for CalRecycle's costs to be reimbursable by required PRO deposits into the Textile Stewardship Recovery Fund which would not occur for several years. CalRecycle notes that this bill does not identify an initial fund source for start-up costs. CalRecycle states that a loan would be needed and identifies the Electronic Waste Management Program fund as a source of that loan, although this lack of start-up funding also creates cost pressure on the General Fund.
According to the Legislative Analyst's Office, the General Fund faces a structural deficit in the tens of billions of dollars over the next several fiscal years.
VOTES
SENATE FLOOR: 32-8-0
YES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dodd, Durazo, Eggman, Glazer, Gonzalez, Hurtado, Laird, Limón, McGuire, Menjivar, Min, Newman, Padilla, Portantino, Roth, Rubio, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener
NO: Dahle, Grove, Jones, Nguyen, Niello, Ochoa Bogh, Seyarto, Wilk
ASM NATURAL RESOURCES: 9-3-0
YES: Bryan, Bauer-Kahan, Connolly, Friedman, Kalra, Muratsuchi, Pellerin, Wicks, Wood
NO: Flora, Hoover, Lackey
ASM APPROPRIATIONS: 11-3-1
YES: Wicks, Arambula, Bryan, Calderon, Wendy Carrillo, Mike Fong, Grayson, Haney, Hart, Pellerin, Villapudua
NO: Sanchez, Dixon, Ta
ABS, ABST OR NV: Jim Patterson
UPDATED
VERSION: August 22, 2024
CONSULTANT: Elizabeth MacMillan / NAT. RES. / (916) 319-2092 FN: 0004479
SENATE THIRD READING
STR Bill Id:SB 707
Author:(Newman)
As Amended Ver:August 19, 2024
Majority vote
SUMMARY
Establishes the Responsible Textile Recovery Act of 2024, which creates an extended producer responsibility (EPR) program for stewardship of waste textiles under the oversight of the Department of Resources Recycling and Recovery (CalRecycle).
Major Provisions
- Requires CalRecycle to adopt regulations to implement this bill to be effective no earlier than January 1, 2028.
- Applies to any producer that sells, offers for sale, or distributes a "covered product," defined as an apparel or textile article.
- Requires producers of covered products to form and join a producer responsibility organization (PRO), a nonprofit 501(c)(3), and sell textile products in California only under a PRO plan approved by CalRecycle under the following timeline:
- The PRO, by January 1, 2026, is required to submit to CalRecycle an application describing its governing board and financial plan to pay for all of CalRecycle's costs attributed to the PRO, with CalRecycle required to approve an adequate plan by March 1, 2026.
- A producer of covered products is required to join an approved PRO by July 1, 2026.
- The PRO, by March 1, 2027, in consultation with CalRecycle and local jurisdictions, is required to submit an initial statewide needs assessment to determine steps and investment needed to meet the requirements of this bill, with CalRecycle to approve, conditionally approve, or disapprove the needs assessment within 90 days of submission.
- The PRO, within 12 months of regulations taking effect, is required to submit to CalRecycle a PRO stewardship plan for collection, transportation, repair, sorting, recycling, and safe and proper management of textile products in the state, with CalRecycle having 120 days to review and approve, disapprove, or conditionally approve the plan.
- A producer of covered products is subject to penalties upon approval of a PRO plan, or January 1, 2030, whichever is sooner.
- Establishes the Textile Stewardship Recovery Fund for the deposit of all moneys received from PROs for use by CalRecycle to implement this bill.
- Requires CalRecycle to post on its internet website a list of producers in compliance with this bill, and authorizes CalRecycle to assess civil penalties up to $10,000 per day for violations or $50,000 per day for intentional or knowing violations, and to revoke a PRO's plan approval.
- Specifies requirements for performance standards, annual reports, and audits.
- Requires any local jurisdiction that offers to participate in the PRO's stewardship program as a collection site to comply with all applicable federal, state, or municipal laws or adhere to the rules established by the PRO and requires the PRO to notify CalRecycle if a collection site fails to comply with specified requirements.
COMMENTS
Textile waste. According to CalRecycle's 2020 Facility-Based Characterization of Solid Waste in California report, textiles, including apparel, fabric, and textile articles (such as linens, curtains, etc.) were the sixth most prevalent material type disposed of by single-family residences in 2018. Overall, Californians disposed of nearly 1.2 million metric tons of textiles in 2018, making up about 3% of California's total waste stream.
The generation of textile waste has been supercharged by the rise of fast fashion. "Fast fashion" is an approach to the design, creation, and marketing of clothing that emphasizes making fashion trends quickly and cheaply available to consumers. Retailers and producers benefit from frequently updating styles to incentivize shopping. Fast fashion contributed to a global doubling of clothing production from 2000 to 2014. Fast fashion provides clothes to consumers for lower prices but sacrifices the quality and longevity of garments in the process, leading to more waste.
Dealing with all this waste is expensive; in 2021, California ratepayers paid more than $70 million dollars in disposal costs. Textile waste comes with a carbon cost as well; textile and garment industries account for between 6-8% of total global carbon emissions, or some 1.7 billion tons in carbon emissions per year.
Managing waste textiles. According to CalRecycle, 95% of California's textile waste is reusable or recyclable, meaning that the textiles are in a condition that allows them to be reused, or that still have tags identifying the materials used. Tags are critical for textile recycling in order to identify the material type.
Both reuse and recycling for used textiles begin when textiles are discarded, either when businesses toss out scrap or surplus material, or when consumers dispose of old clothes or textile household items, like sheets, curtains, and pillows. Once these materials have been collected, they can be sorted to separate reusable material from material that is only eligible for recycling or landfilling.
According to CalRecycle, only 10-15% of garments donated or sold to second-hand markets are directly resold in the stores where they are collected. Of the remaining material, 30% is cut down to rags, 20% is converted into recycled fibers for uses such as carpet padding, insulation, and pillow stuffing, 5% is landfilled in the state, and 45% is sent overseas for further processing or eventual disposal. Items that are sent overseas may or may not have a second life. For example, of the 15 million used garments that flow into Ghana every week, an estimated 40% are deemed worthless upon arrival and landfilled. This off-shore landfilling comes at a high carbon cost, since shipping overseas is a carbon-intensive process.
Recycling textiles is a multistep process. Natural fibers are mechanically processed. For example, cotton textiles are shredded, the fibers are separated, and then re-spun with virgin fibers into yarn to make new textiles. Synthetic fibers, such as polyester, can sometimes be mechanically processed by shredding, cleaning, molding into pellets, and then extruding into new fibers. If mechanical processing is not possible, the textiles can also undergo the more intensive process of chemical processing, where the synthetic material is broken down into its component molecules to remove contaminants and then reformed into fibers. Blends of materials, either different types of natural fibers, synthetic fibers, or both, are typically not eligible for chemical processing, but can be mechanically processed and downcycled into composite materials, such as thermal insulation or carpet for use in the building industry.
The current recovery rate for textiles in the United States is approximately 15%, while the remaining 85% of discarded clothing and textiles are sent to landfill or incineration. Just 1% of recycled clothes are turned back into new garments, which is the gold standard for a circular economy.
Pilot programs. According to the bill's sponsor, the California Product Stewardship Council (CPSC), there are various textile recycling pilot projects underway or completed in San Francisco, the City of Los Angeles, the County of Los Angeles, and the County of Alameda. Additionally, SB 1187 (Kamlager), Chapter 616, Statutes of 2022, requires CalRecycle to establish a three-year pilot project in the Counties of Los Angeles and Ventura to study and report on the feasibility of recycling fabric; however, this program has not received funding through the Budget process.
EPR. According to CalRecycle, EPR is a strategy that places shared responsibility for end-of-life management for products on the producers and all entities involved in the product chain, instead of entirely on local governments and ratepayers. EPR programs rely on industry, formalized in a product stewardship organization, to develop and implement approaches to create a circular economy that makes business sense, with oversight and enforcement provided by a government entity. This approach provides flexibility for manufacturers to design products in a way that facilitates recycling and to develop systems to capture those products at the end-of-life to meet statutory goals.
According to the Author
The fashion industry is considered a top industrial polluter, accounting for approximately 10% of global carbon emissions. As textiles decompose, they emit high levels of methane gas, a major contributor to global warming. The phenomenon of "fast fashion," which revolves around the marketing and sale of low-cost, low-quality garments that go out of vogue with increasing speed, is a major contributor to this alarming environmental trend.
A well-designed and effectively administered statewide textile [EPR] program has the potential to develop previously untapped or underutilized upcycled and recycled clothing and fiber markets, as well as to support ongoing efforts to encourage the repair and reuse of clothing and other textiles in California. In so doing, SB 707 will facilitate a transition to a sustainable, market-aligned, circular economy for textiles that will unlock new production and consumption opportunities to the benefit of the environment, all at a relatively low cost to both the state and consumers alike.
Arguments in Support
A coalition of supporters state:
Textiles are the fifth most common material and the fastest growing category in residential and commercial waste streams in California. Textile and clothing producers over-produce hard-to manage materials that can absorb, tangle, and combust if mixed into plastic recycling system. The cost burden for managing unusable textiles has fallen on thrifts, collectors, and secondhand markets, while producers keep making products with no plan for what to do with them when they are no longer wearable. For too long, textiles collected under the guise of recycling ended up in markets with less infrastructure and environmental protections. Industry efforts to increase textile reuse, repair, and recycling options have proven siloed and lacking transparency.
Arguments in Opposition
None on file
FISCAL COMMENTS
According to the Assembly Appropriations Committee, CalRecycle estimates costs of $3,257,000 annually in fiscal years 2025-26 and 2026-27 for 18 permanent full-time positions, increasing to $4,552,000 for fiscal year 2027-28 for 27 permanent full-time positions. These staff will receive written notices, review plans and reports, audit, conduct enforcement, and provide ongoing assistance.
This bill provides for CalRecycle's costs to be reimbursable by required PRO deposits into the Textile Stewardship Recovery Fund which would not occur for several years. CalRecycle notes that this bill does not identify an initial fund source for start-up costs. CalRecycle states that a loan would be needed and identifies the Electronic Waste Management Program fund as a source of that loan, although this lack of start-up funding also creates cost pressure on the General Fund.
According to the Legislative Analyst's Office, the General Fund faces a structural deficit in the tens of billions of dollars over the next several fiscal years.
VOTES
SENATE FLOOR: 32-8-0
YES: Allen, Alvarado-Gil, Archuleta, Ashby, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dodd, Durazo, Eggman, Glazer, Gonzalez, Hurtado, Laird, Limón, McGuire, Menjivar, Min, Newman, Padilla, Portantino, Roth, Rubio, Skinner, Smallwood-Cuevas, Stern, Umberg, Wahab, Wiener
NO: Dahle, Grove, Jones, Nguyen, Niello, Ochoa Bogh, Seyarto, Wilk
ASM NATURAL RESOURCES: 9-3-0
YES: Bryan, Bauer-Kahan, Connolly, Friedman, Kalra, Muratsuchi, Pellerin, Wicks, Wood
NO: Flora, Hoover, Lackey
ASM APPROPRIATIONS: 11-3-1
YES: Wicks, Arambula, Bryan, Calderon, Wendy Carrillo, Mike Fong, Grayson, Haney, Hart, Pellerin, Villapudua
NO: Sanchez, Dixon, Ta
ABS, ABST OR NV: Jim Patterson
UPDATED
VERSION: August 19, 2024
CONSULTANT: Elizabeth MacMillan / NAT. RES. /(916) 319-2092 FN: 0004084
Date of Hearing: August 7, 2024
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Buffy Wicks, Chair
SBPCA Bill Id:SB 707
Author:(Newman) – As Amended Ver:July 3, 2024
Policy Committee: | Natural Resources | Vote: | 9 - 3 |
|
| ||
|
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Urgency: No State Mandated Local Program: Yes Reimbursable: No
SUMMARY:
This bill enacts the Responsible Textile Recovery Act of 2024 establishing an extended producer responsibility (EPR) program for stewardship of waste textiles under the oversight of the Department of Resources Recycling and Recovery (CalRecycle).
Specifically, this bill, among other things:
- Requires CalRecycle to adopt regulations to implement this bill to be effective no earlier than January 1, 2028.
- Applies to any producer that sells, offers for sale, or distributes a “textile article,” defined as any item customarily used in households or business that are made from a natural, artificial, or synthetic fiber, yard, or fabric.
- Requires producers of textile articles to form and join a producer responsibility organization (PRO), a nonprofit 501(c)(3), and sell textile products in California only under a PRO plan approved by CalRecycle under the following timeline:
- The PRO, by January 1, 2026, is required to submit to CalRecycle an application describing its governing board and financial plan to pay for all of CalRecycle’s costs attributed to the PRO, with CalRecycle required to approve an adequate plan by March 1, 2026.
- A producer of textile articles is required to join an approved PRO by July 1, 2026.
- The PRO, by March 1, 2027, in consultation with CalRecycle and local jurisdictions, is required to submit an initial statewide needs assessment to determine steps and investment needed to meet the requirements of this bill, with CalRecycle to approve, conditionally approve, or disapprove the needs assessment within 90 days of submission.
- The PRO, within 12 months of regulations taking effect, is required to submit to CalRecycle a PRO stewardship plan for collection, transportation, repair, sorting, recycling, and safe and proper management of textile products in the state, with CalRecycle having 120 days to review and approve, disapprove, or conditionally approve the plan.
- A producer of textile articles is subject to penalties upon approval of a PRO plan, or January 1, 2030, whichever is sooner.
- Establishes the Textile Stewardship Recovery Fund for the deposit of all moneys received from PROs for use by CalRecycle to implement this bill.
- Requires CalRecycle to post on its internet website a list of producers in compliance with this bill, and authorizes CalRecycle to assess civil penalties up to $10,000 per day for violations or $50,000 per day for intentional or knowing violations, and to revoke a PRO’s plan approval.
- Specifies requirements for performance standards, annual reports, and audits.
- Requires any local jurisdiction that offers to participate in the PRO’s stewardship program as a collection site to comply with all applicable federal, state, or municipal laws or adhere to the rules established by the PRO and requires the PRO to notify CalRecycle if a collection site fails to comply with specified requirements.
FISCAL EFFECT:
CalRecycle estimates costs of $3,257,000 annually in fiscal years 2025-26 and 2026-27 for 18 permanent full-time positions, increasing to $4,552,000 for fiscal year 2027-28 for 27 permanent full-time positions. These staff will receive written notices, review plans and reports, audit, conduct enforcement, and provide ongoing assistance.
This bill provides for CalRecycle’s costs to be reimbursable by required PRO deposits into the Textile Stewardship Recovery Fund which would not occur for several years. CalRecycle notes that this bill does not identify an initial fund source for start-up costs. CalRecycle states that a loan would be needed and identifies the Electronic Waste Management Program fund as a source of that loan, although this lack of start-up funding also creates cost pressure on the General Fund.
According to the Legislative Analyst’s Office, the General Fund faces a structural deficit in the tens of billions of dollars over the next several fiscal years.
COMMENTS:
- Purpose. The text of this bill provides:
The purpose of [this bill] is to increase the amount of postconsumer apparel and textile articles that are diverted from landfills and reused, repaired, and recycled into secondary products or otherwise managed in a manner that is consistent with the state’s waste management hierarchy…[the] purpose of [this bill] is that any producer, regardless of whether the producer is domiciled in California, who sells, offers for sale, or distributes a covered product into the state to be responsible for complying with the Act.
- Background. According to a 2020 CalRecycle report, textiles, including apparel, fabric, and textile articles (such as linens, curtains, etc.) were the sixth most prevalent material type disposed of by single-family residences in 2018. Overall, Californians disposed of nearly 1.2 million metric tons of textiles in 2018, making up about 3% of California’s total waste stream. The generation of textile waste has been supercharged by the rise of fast fashion, an approach to design, creation, and marketing of clothing that emphasizes making fashion trends available to consumers quickly and cheaply, leading to more waste.
Dealing with textile waste is expensive. In 2021, Californians paid more than $70 million in disposal costs. Textile waste comes with a carbon cost as well; textile and garment industries account for between 6% and 8% of total global carbon emissions, or some 1.7 billion tons in carbon emissions per year. According to CalRecycle, 95% of California's textile waste is reusable or recyclable, meaning the textiles are in a condition allowing reuse or still have tags identifying the materials used.
According to CalRecycle, EPR is a strategy that places shared responsibility for end-of-life management of products on the producers and all entities involved in the product chain, instead of entirely on local governments and ratepayers. EPR programs rely on industry, formalized in a product stewardship organization, to develop and implement approaches to create a circular economy that makes business sense, with oversight and enforcement provided by a government entity. This approach provides flexibility for manufacturers to design products in a way that facilitates recycling and to develop systems to capture those products at the end-of-life to meet statutory goals.
This bill establishes an EPR for textile products, following EPR programs already established in California for carpet, paint, pharmaceuticals, household batteries, and mattresses.
- Related Legislation. SB 1143 (Allen), of the current legislative session, establishes an EPR for household hazardous waste. SB 1143 is pending in this committee.
SB 615 (Allen), of the current legislative session, requires producers of electric vehicle (EV) batteries to be responsible for the recapture, repair, reuse, or recycling of EV batteries. SB 615 is pending in this committee.
SB 1066 (Blakespear), of the current legislative session, establishes an EPR for marine flares. SB 1066 is pending in this committee.
Analysis Prepared by: Jacqueline Kinney / APPR. / (916) 319-2081
Date of Hearing: July 1, 2024
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Luz Rivas, Chair
SBPCA Bill Id:SB 707
Author:(Newman) – As Amended Ver:June 10, 2024
SENATE VOTE: 32-8
SUBJECT: Responsible Textile Recovery Act of 2024
SUMMARY: Establishes an extended producer responsibility (EPR) program (i.e., stewardship program) for waste textiles.
EXISTING LAW:
- The California Integrated Waste Management Act of 1989, administered by the Department of Resources Recycling and Recovery (CalRecycle), generally regulates the disposal, management, and recycling of solid waste. Establishes a state recycling goal that 75% of solid waste generated is to be diverted from landfill disposal through source reduction, recycling, and composting by 2020. (Public Resources Code (PRC) 40000 et seq.)
- Establishes the Plastic Pollution Prevention and Packaging Producer Responsibility Act, which imposes minimum content requirements for single-use packaging and food ware and source reduction requirements for plastic single-use packaging and food ware, to be achieved through an EPR program. (PRC 42040 et seq.)
- Establishes the Used Mattress Recovery and Recycling Act, which creates an EPR program for the collection and recycling of used mattresses. (PRC 42985 et seq.)
- Establishes the Electronic Waste Recycling Act of 2003, which requires consumers to pay a fee for specified electronic devices, defined to include video screens larger than four inches and battery-embedded products and establishes processes for consumers to return, recycle, and ensure the safe disposal of covered electronic devices. (PRC 42460 et seq.)
- Requires CalRecycle to establish a three-year pilot project located in the Los Angeles and Ventura Counties partnering with garment manufacturers to study and report on the feasibility of recycling fabric. (PRC 40512)
- Establishes, upon appropriation from the Legislature, a Zero-Waste equity grant program that can be used for repair and extending the life of products including textiles. (PRC 42999.5)
- Defines “recycle” or “recycling” as the process of collecting, sorting, cleansing, treating, and reconstituting materials that would otherwise ultimately be disposed of onto land or into water or the atmosphere, and returning them to, or maintaining them within, the economic mainstream in the form of recovered material for new, reused, or reconstituted products, including compost, that meet the quality standards necessary to be used in the marketplace. Specifies that “recycling” does not include combustion, incineration, energy generation, fuel production (except anaerobic digestion), and other forms of disposal. (PRC 42041 (aa))
THIS BILL establishes the Responsible Textile Recovery Act of 2024 (Act), which:
- States that the purpose of the Act is to increase the amount of postconsumer apparel and textile articles that are diverted from landfills and reused, repaired, and recycled into secondary products or otherwise managed in a manner that is consistent with the state’s waste management hierarchy. States that the purpose of the Act is that any producer, regardless of whether the producer is domiciled in California, who sells, offers for sale, or distributes a covered product into the state to be responsible for complying with the Act.
- Requires CalRecycle to adopt regulations to implement the bill’s requirements with an effective date no earlier than January 1, 2028.
- Requires producers of covered products to form and join a producer responsibility organization (PRO) for the purposes of complying with the Act. Requires the governing body of the PRO to submit an application to CalRecycle by January 1, 2026, describing how the PRO meets the requirements to be an approved PRO. If approved, requires the PRO to proceed to carry out the requirements of the bill.
- Requires CalRecycle to approve a PRO that meets the requirements of the Act by March 1, 2024. Requires that the PRO have a governing board, as specified, and demonstrate that it has adequate financial responsibility and financial controls in place. Authorizes CalRecycle to approve additional PROs after January 1, 2035, as specified.
- Requires producers of covered products to join the approved PRO by July 1, 2026.
- Specifies that upon approval of a PRO plan (plan), or January 1, 2030, whichever is sooner, a producer is subject to penalties under the Act unless the producer is a member of a PRO and all covered products are accounted for in the plan. If an entity becomes a producer, requires the producer to join the PRO and comply with the Act within 90 days.
- Specifies that a producer is not in compliance with the Act and is subject to penalties if a covered product sold or offered for sale by the producer is not subject to an approved plan.
- Requires the PRO to prepare an initial statewide needs assessment to determine the necessary steps and investment needed for covered products to achieve the requirements of the Act by March 1, 2027. Requires that the needs assessments be updated every five years. Authorizes the PRO to prepare different needs assessments covering different covered products. Requires the PRO to develop the needs assessment in consultation with CalRecycle and local jurisdictions. Requires CalRecycle to approve, conditionally approve, or disapprove the needs assessment within 90 days of submission.
- Requires the needs assessment to:
- Be designed to inform the program budget and plan; and,
- Include an evaluation of specified factors relating to covered products and covered product categories, including the existing scope of disposal and collection and recycling needs to comply with the Act.
- Requires the PRO to include any local jurisdiction that offers to participate in the stewardship program and to comply with the PRO requirements as a collection site within 90 days. Authorizes the PRO to suspend or terminate a collection site that does not comply with all applicable federal, state, or municipal laws or adhere to the rules established by the PRO and requires the PRO to notify CalRecycle if a collection site fails to comply with specified requirements.
- Requires that collection sites be operated and managed to ensure that covered products are collected safely and handled properly. Allows collectors and authorized sorters to divert reusable covered products for sale in secondhand markets.
- Requires the PRO, within 12 months of the effective date of the regulations, to develop and submit a complete plan to CalRecycle. Requires the stewardship plan to cover the collection, transportation, repair, sorting, recycling, and the safe and proper management of covered products in the state, as specified. Prohibits a PRO from limiting the stewardship plan to covered products of the producers participating in the program. Requires CalRecycle to review and approve, disapprove, or conditionally approve the plan within 120 days of receipt.
- Requires, by July 1, 2030, “program operators” to have a complete plan approved by CalRecycle and requires that each producer to be subject to an approved plan. Requires, within three months of the approval of a plan, the program operator to begin to implement the plan and to fully implement the plan within 12 months.
- Requires a plan to be designed to accept and manage all postconsumer covered products and include:
- The names and contact information of producers and brands of covered products covered by the plan;
- A description of the method to establish and administer a means of fully funding the PRO in a manner that distributes the costs among producers using a per unit eco-modulated fee that reflects California sales volumes and the cost of reuse, repair, recycling, and otherwise managing covered products;
- A five-year budget that fully funds the stewardship program;
- Quantifiable five-year and annual performance standards and metrics until CalRecycle publishes performance standards;
- A description of how the PRO will provide for a free and convenient drop-off or collection system for covered products in each county and how the collection sites will be authorized and managed;
- A description of the process by which collected covered products will be sorted, transported, processed, repaired, reused, and recycled, as specified;
- A description of how collection sites will be authorized and managed, as specified;
- A description of the process by which collected covered products will be sorted, transported, processed, reused, and recycled following collection, as specified;
- A comprehensive statewide education and outreach program to educate consumers and promote participation in the program, as specified;
- A description of the strategies, goals, and metrics the PRO will use to annually assess and evaluate the efficacy of the comprehensive statewide education and outreach program;
- A description of efforts to coordinate with specified entities;
- Information to the public on secondhand markets and the benefits of reuse, including repair;
- A requirement that the statewide education and outreach campaign to promote the safe and proper management of covered products;
- Coordination with, and a description of the efforts and methods used to coordinate activities with, other PROs, existing collection and recycling programs, and community-based organizations;
- A contingency plan in the event the plan expires or is revoked;
- Develop a program in coordination with other program operators to support laundries for laundering covered products;
- A description of how the plan will address per- and polyfluoroalkyl substances (PFAS) and other chemical contamination;
- Develop strategies to address design challenges for covered products;
- A description of how the PRO will minimize the negative environmental impacts of all operations associated with the plan; and,
- A process by which the financial activities of the PRO or individual producers that are related to implementation of the plan will be subject to an independent audit.
- Requires producers of covered products sold, offered for sale, imported, or distributed in or into the state to achieve the performance standards set by the PRO. Authorizes CalRecycle, after March 1, 2032, to establish, review, and adjust performance standards based on information included in the plan, annual reports, and other information provided by the PRO, CalRecycle waste characterization studies, the needs assessment, and economic and any other relevant information.
- Requires the PRO to review the plan at least every five years after approval and determine what revisions may be necessary. Establishes a process for plan revisions.
- Requires the PRO to pay all administrative and operational costs associated with establishing and implementing the program in which it participates, including the cost of collection, transportation, sorting, repairing, recycling, and the safe and proper management of covered products.
- Requires the PRO to establish a method for fully funding the PRO in a manner that distributes the program’s costs among participating producers that reflects sales volumes and the eco-modulated fee criteria included in the plan.
- Establishes the Textile Stewardship Recovery Fund for the purpose of implementing enforcing the bill’s requirements.
- Requires the PRO to retain an independent public accountant to annually audit the accounting books of the PRO, which must be included as part of its annual report. Authorizes CalRecycle to conduct its own audits.
- Requires the program operator to submit an annual report to CalRecycle that includes specified information. Requires the annual report to include the annual audit and:
- The PRO’s costs and revenues;
- A summary of anticipated changes to allocations for the next calendar year;
- The amounts of the eco-modulated fees;
- The producers participating in the plan and an updated list of the names and contact information;
- The amount of covered products sold in or into the state by producers covered by the plan broken down by fiber type;
- A list of the PRO’s collection sites;
- The total weight of covered products, by category, collected and deemed reusable;
- A list of each authorized sorter, repair business, and textile article recycling facility;
- An updated list of the names and contact information for producers and brands covered under the plan;
- The total weight and number of covered products sold in or into the state attributed to a producer covered by the plan that are collected and reused or recycled by the PRO;
- A complete accounting of the ultimate disposition of all covered products collected by the PRO;
- A description of how the PRO provided incentive payments, grants, and market development incentives to support infrastructure;
- A report on how the PRO prioritized the use of sorting and recycling facilities located closer to the point of generation to minimize transportation cost and increase accountability;
- An analysis of whether the PRO met the performance standards; and,
- A description of how the PRO addressed PFAS and other chemical contamination.
- Authorizes CalRecycle, after March 1, 2032, to establish, review, and adjust the performance standards and the dates by which they must be achieved.
- Requires CalRecycle, within 12 months of the effective date of the regulations, and on or before July 1 thereafter, to post a list of compliant producers, brands, and covered products. Requires retailers, importers, and distributors to monitor the list and prohibits the sale of noncompliant products. Authorizes the sale of existing inventory in stock before the before the initial list was posted by CalRecycle.
- Establishes administrative civil penalties of up to $10,000 per day, and up to $50,000 per day for intentional or knowing violations. Requires CalRecycle or the court to consider specified factors when determining the amount of a penalty. Requires CalRecycle to establish an informal hearing process. In addition to assessing penalties for violations, authorizes CalRecycle to revoke a PRO’s plan approval.
- Establishes anti-trust immunity for PRO actions and provides justification for limitations on the public’s access to specified information.
- Specifies that nothing in the bill grants any city, county, city and county, special district, or joint powers authority with any new authority over solid waste handling or solid waste franchise agreements.
- Requires online marketplaces to annually:
- Notify CalRecycle and the PRO of all third-party sellers with sales of covered products over $1 million in the preceding year and provide required information; and,
- Provide all third-party sellers with information on the requirements of law as provided by the PRO.
- Defines terms used in the bill, including:
- “Apparel as clothing and accessory items intended for regular wear or formal occasions and outdoor activities. Specifies that for purposes of the bill, “apparel” includes only undergarments, shirts, pants, skirts, dresses, overalls, bodysuits, costumes, vest, dancewear, suits, saris, scarves, tops, leggings, school uniforms, leisurewear, athletic wear, sports uniforms, everyday swimwear, formal wear, onsies, bibs, footwear, handbags, backpacks, knitted and woven accessories, jackets, coats, snow pants, ski pants, and everyday uniforms for workwear. Specifies that “apparel” does not include personal protective equipment or clothing items for use by the United States military, personal protective equipment worn to protect the wearer from health or environmental hazards, and reusable products designed to collect and absorb urine and feces or reusable products regulated by the United States Food and Drug Administration that are designed to collect and absorb menstruation or vaginal discharge.
- “Brand” as a trademark, including both a registered trademark and an unregistered trademark, logo, name, symbol, word, identifier, or traceable mark that identifies a covered product and identifies the owner or licensee of the brand.
- “Covered product” as an apparel or textile article. Excludes products covered by the Used Mattress Recovery and Recycling Act, the Electronic Waste Recycling Act, the Product Stewardship for Carpets Law, or an automated, motorized, battery, or manual window covering.
- “Importer” as either:
- A person qualifying as an importer or record, as specified; or,
- A person importing into the state for sale, distribution for sale, or offering for sale in the state a covered product that was manufactured or assembled by a company physically located outside of the state.
- “Online marketplace” as a consumer-directed, electronically accessed platform for which all of the following are true:
- The platform includes features that allow for, facilitate, or enable third-party sellers to engage in the sale, purchase, payment, storage, shipping, or delivery of a consumer product in the state;
- The features above are used by third-party sellers; and,
- The platform has a contractual relationship with consumers governing the use of the platform to purchase consumer products.
- “Producer” as a person who manufactures a covered product and who owns or is the licensee of the brand or trademark under which that covered product is sold, offered for sale, or distributed for sale in the state. If there is no person who meets this requirement, the producer is the owner of a brand or trademark or the exclusive licensee of a brand or trademark, regardless of whether the trademark is registered. If there is no person who meets these requirements, the producer is the person that imports the covered product into the state for sale or distribution. If there is no person who meets these requirements, the producer is the distributor, retailer, or wholesaler who sells the product in or into the state. Specifies that the sale of a covered product is deemed to occur in the state if the covered product is delivered to the consumer in the state. Excludes from this definition sellers that only sell secondhand covered products and sellers with less than $1 million in annual aggregate global turnover, as specified.
- “Producer responsibility organization” as an organization exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code that is formed for the purpose of implementing a plan to meet the requirements of the Act, and is approved by CalRecycle.
- “Recycle” or “recycling” as having the same meaning as set forth in PRC 42041 (aa), excluding references to plastics and as otherwise applicable.
- “Stewardship program” as a program established by a PRO pursuant to the Act for the free, convenient, and safe collection, transportation, repair, recycling, and otherwise proper management of covered products.
- “Textile article” as any item customarily used in households or business that are made entirely or primarily from a natural, artificial, or synthetic fiber, “yard,” or fabric.
FISCAL EFFECT: Unknown
COMMENTS:
- Textile waste. According to CalRecycle’s 2020 Facility-Based Characterization of Solid Waste in California report, textiles, including apparel, fabric, and textile articles (such as linens, curtains, etc.) were the sixth most prevalent material type disposed of by single-family residences in 2018. Overall, Californians disposed of nearly 1.2 million metric tons of textiles in 2018, making up about 3% of California’s total waste stream.
The generation of textile waste has been supercharged by the rise of fast fashion. “Fast fashion” is an approach to the design, creation, and marketing of clothing that emphasizes making fashion trends quickly and cheaply available to consumers. Retailers and producers benefit from frequently updating styles to incentivize shopping. Fast fashion contributed to a global doubling of clothing production from 2000 to 2014. Fast fashion provides clothes to consumers for lower prices but sacrifices the quality and longevity of garments in the process, leading to more waste.
Dealing with all this waste is expensive; in 2021, California ratepayers paid more than $70 million dollars in disposal costs. Textile waste comes with a carbon cost as well; textile and garment industries account for between 6-8% of total global carbon emissions, or some 1.7 billion tons in carbon emissions per year.
- Managing waste textiles. According to CalRecycle, 95% of California's textile waste is reusable or recyclable, meaning that the textiles are in a condition that allows them to be reused, or that still have tags identifying the materials used. Tags are critical for textile recycling in order to identify the material type.
Both reuse and recycling for used textiles begin when textiles are discarded, either when businesses toss out scrap or surplus material, or when consumers dispose of old clothes or textile household items, like sheets, curtains, and pillows. Once these materials have been collected, they can be sorted to separate reusable material from material that is only eligible for recycling or landfilling.
According to CalRecycle, only 10-15% of garments donated or sold to second-hand markets are directly resold in the stores where they are collected. Of the remaining material, 30% is cut down to rags, 20% is converted into recycled fibers for uses such as carpet padding, insulation, and pillow stuffing, 5% is landfilled in the state, and 45% is sent overseas for further processing or eventual disposal. Items that are sent overseas may or may not have a second life. For example, of the 15 million used garments that flow into Ghana every week, an estimated 40% are deemed worthless upon arrival and landfilled. This off-shore landfilling comes at a high carbon cost, since shipping overseas is a carbon-intensive process.
Recycling textiles is a multistep process. Natural fibers are mechanically processed. For example, cotton textiles are shredded, the fibers are separated, and then re-spun with virgin fibers into yarn to make new textiles. Synthetic fibers, such as polyester, can sometimes be mechanically processed by shredding, cleaning, molding into pellets, and then extruding into new fibers. If mechanical processing is not possible, the textiles can also undergo the more intensive process of chemical processing, where the synthetic material is broken down into its component molecules to remove contaminants and then reformed into fibers. Blends of materials, either different types of natural fibers, synthetic fibers, or both, are typically not eligible for chemical processing, but can be mechanically processed and downcycled into composite materials, such as thermal insulation or carpet for use in the building industry.
The current recovery rate for textiles in the United States is approximately 15%, while the remaining 85% of discarded clothing and textiles are sent to landfill or incineration. Just 1% of recycled clothes are turned back into new garments, which is the gold standard for a circular economy.
- Pilot programs. According to the bill’s sponsor, the California Product Stewardship Council (CPSC), there are various textile recycling pilot projects underway or completed in San Francisco, the City of Los Angeles, the County of Los Angeles, and the County of Alameda. Additionally, SB 1187 (Kamlager), Chapter 616, Statutes of 2022, requires CalRecycle to establish a three-year pilot project in the Counties of Los Angeles and Ventura to study and report on the feasibility of recycling fabric; however, this program has not received funding through the Budget process.
- EPR. According to CalRecycle, EPR is a strategy that places shared responsibility for end-of-life management for products on the producers and all entities involved in the product chain, instead of entirely on local governments and ratepayers. EPR programs rely on industry, formalized in a product stewardship organization, to develop and implement approaches to create a circular economy that makes business sense, with oversight and enforcement provided by a government entity. This approach provides flexibility for manufacturers to design products in a way that facilitates recycling and to develop systems to capture those products at the end-of-life to meet statutory goals.
There are several key elements that should be carefully evaluated to develop a successful EPR program. These elements are part of CalRecycle’s “EPR checklist” and include considerations of: (1) the scope of the program (what and who is captured in the covered product and PRO universe); (2) requirements for the PRO; (3) funding for the program; and, (4) oversight for the program.
- Author’s statement:
The fashion industry is considered a top industrial polluter, accounting for approximately 10% of global carbon emissions. As textiles decompose, they emit high levels of methane gas, a major contributor to global warming. The phenomenon of “fast fashion,” which revolves around the marketing and sale of low-cost, low-quality garments that go out of vogue with increasing speed, is a major contributor to this alarming environmental trend.
A well-designed and effectively administered statewide textile [EPR] program has the potential to develop previously untapped or underutilized upcycled and recycled clothing and fiber markets, as well as to support ongoing efforts to encourage the repair and reuse of clothing and other textiles in California. In so doing, SB 707 will facilitate a transition to a sustainable, market-aligned, circular economy for textiles that will unlock new production and consumption opportunities to the benefit of the environment, all at a relatively low cost to both the state and consumers alike.
- The big picture. This bill is intended to create a statewide EPR program to manage the volumes of textile waste generated in California. The program would require producers, through a PRO, to design and implement a program to collect and recycle, reuse, repair, or otherwise properly manage textile wastes, including apparel, linens, and accessories.
- Details matter. This bill establishes a broad framework for an EPR program, including the basic components of an EPR program, but leaves the details open for the PRO or CalRecycle to develop through the plan or as part of the regulations.
This bill models the definition of producer after prior EPR legislation, which starts with the brand owner and steps down to the importer or retailer to ensure that there is an entity located within the state that is responsible for ensuring compliance with the bill’s requirements. This has worked well previously, but it may not be able to capture many fast fashion producers, as a significant portion of fast fashion apparel is shipped directly to in-state consumers from companies located overseas. These products would be collected and managed by the in-state program operators, but it may be difficult, if not impossible, to enforce the requirements on overseas producers.
The bill appears to include commercial entities that rent textiles, such as uniforms, medical gowns, and commercial linens, which are collected, laundered, and reused repeatedly. At the end of the useful life, the textiles are generally repurposed for industrial uses, such as rags and insulation. The author may wish to consider whether entities that are participating in reuse activities should be included as producers or not.
This bill establishes clear metrics for collection sites, requiring the PRO to provide at least 10 collection sites per county, or one collection site for every 25,000 people, whichever is greater. As drafted, the PRO would have to collect all materials covered by the bill, whether or not their stewardship plan covers all covered products. This is important to ensure convenience for consumers, but may be somewhat challenging for program operators if there are multiple plans covering different covered products.
This bill does not establish collection or recycling goals or timelines. Instead, the bill requires the PRO to establish five-year and annual “performance standards and metrics” until CalRecycle adopts a performance standard when it reassesses the program’s regulations in 2032.
- Suggested amendments: The committee may wish to make the following amendments to the bill:
- Clarify PRO responsibility to approve collection sites.
- Clarify the definition of recycling.
- Make a number of organizational, technical, and clarifying changes.
REGISTERED SUPPORT / OPPOSITION:
Support
5 Gyres Institute
A Voice for Choice Advocacy
Ambercycle
Aquafil Carpet Recycling
Association of California Goodwills
BASF Corporation
Boardrider
California Environmental Voters
California Product Stewardship Council
Californians Against Waste
CALPIRG
Castro Valley Sanitary District
CBU Productions
Center for Oceanic Awareness, Research, & Education
Changing Markets Foundation
Circ, INC.
Cirtex
City of Alameda
City of Roseville
City of San Jose
City of Sunnyvale
City of Thousand Oaks
Clean Brands
Climate Reality Project, Los Angeles Chapter
Climate Reality Project, San Fernando Valley
County of Santa Barbara
Coyuchi
CRRA
Delta Diablo
Democrats of Rossmoor
Eco New Upcycled
Eco-Catalyst, Inc.
Ellerali
Environmental Working Group
Everlane
Fashion Revolution USA
Fibershed
Fort Ord Environmental Justice Network
Friends Committee on Legislation of California
Full Circle Environmental
Grace Veterinary, Inc.
Greenwaste Recovery
Haelixa
Heal the Bay
Ikea
Intrinsic Advanced Materials, LLC
JDG Group, Inc.
Laci
Le Marche Limited
Luna Lab
Lymi, Inc. Dba Reformation
Mara Hoffman
Marmot
Materevolve
Mend It, Inc.
Mojave Desert and Mountain Recycling Authority
Molte Volte
National Stewardship Action Council
Northern California Recycling Association
Ocean+Main
Operations Reformation
Ouros Industries
Outerknown
Plastic Oceans International
Plastic Pollution Coalition
Plsreturnit Inc.
Product Stewardship Institute
Project Ropa
R3 Consulting Group, Inc.
Ravel
Recology
Renewcell
Repeat Reuse, Inc.
Republic Services
Resource Recovery Coalition of California
Rethink Waste
Roboro
Rural County Representatives of California
Salinas Valley Solid Waste Authority
Santa Barbara Count Resource Recovery and Waste Management Division
Santa Barbara County Solid Waste Local Task Force
Santa Clara County Recycling and Waste Reduction Commission
Savers
Scullyspark
Sea Hugger
Seventh Generation Advisors
Sew You, LLC
Sierra Club California
Sixone Labs LTD
Social Compassion in Legislation
Sohocolab
Solana Center for Environmental Innovation
Solid Waste Environmental Excellence Performance Standard
Sortile
South Bayside Waste Management Authority Dba Rethinkwaste
St. Catherine University
Stand Up to Trash
Stopwaste
Surfrider Foundation
Sustainable Works
The Center for Oceanic Awareness, Research, and Education
The Fashion Connection
Threadhous Co.
Upcycle It Now
USAgain
Western Placer Waste Management Authority
Wishtoyo Chumash Foundation
Zero Panik
Zero Waste Company
Zero Waste San Diego
Zero Waste Sonoma
Zero Waste USA
Opposition
Accelerating Circularity, Inc.
American Apparel & Footwear Association
American Circular Textiles Group
California Chamber of Commerce
California Manufacturers and Technology Association
Analysis Prepared by: Elizabeth MacMillan / NAT. RES. /
Date of Hearing: July 10, 2023
ASSEMBLY COMMITTEE ON NATURAL RESOURCES
Luz Rivas, Chair
SBPCA Bill Id:SB 707
Author:(Newman) – As Amended Ver:July 3, 2023
SENATE VOTE: 32-8
SUBJECT: Responsible Textile Recovery Act of 2023
SUMMARY: Establishes an extended producer responsibility (EPR) program for waste textiles.
EXISTING LAW:
- The California Integrated Waste Management Act of 1989, administered by the Department of Resources Recycling and Recovery (CalRecycle), generally regulates the disposal, management, and recycling of solid waste. Establishes a state recycling goal that 75% of solid waste generated is to be diverted from landfill disposal through source reduction, recycling, and composting by 2020. (Public Resources Code (PRC) 40000 et seq.)
- Establishes the Plastic Pollution Prevention and Packaging Producer Responsibility Act, which imposes minimum content requirements for single-use packaging and food ware and source reduction requirements for plastic single-use packaging and food ware, to be achieved through an EPR program. (PRC 42040 et seq.)
- Establishes the Used Mattress Recovery and Recycling Act, which creates an EPR program for the collection and recycling of used mattresses. (PRC 42985 et seq.)
- Establishes the Electronic Waste Recycling Act of 2003, which requires consumers to pay a fee for specified electronic devices, defined to include video screens larger than four inches and battery-embedded products and establishes processes for consumers to return, recycle, and ensure the safe disposal of covered electronic devices. (PRC 42460 et seq.)
- Requires CalRecycle to establish a three-year pilot project located in the Los Angeles and Ventura Counties partnering with garment manufacturers to study and report on the feasibility of recycling fabric. (PRC 40512)
- Establishes, upon appropriation from the Legislature, a Zero-eWaste equity grant program that can be used for repair and extending the life of products including textiles. (PRC 42999.5)
THIS BILL:
- Requires CalRecycle to adopt regulations to implement the bill’s requirements with an effective date no earlier than December 31, 2025. Authorizes CalRecycle to reassess the regulations beginning January 1, 2032, including adjusting the minimum recycled collection rates, establishing minimum recycling efficiency rates, or establishing other criteria.
- Requires, no sooner than 90 days after the effective date of the regulations, CalRecycle to appoint an advisory committee to consult with producers and stewardship organizations (SO) with approved plans. Requires the advisory committee to include, but not limited to, representatives from local governments, recyclers, retailers, nonprofit thrift stores, authorized collectors, authorized sorters, authorized repair businesses, nongovernmental organizations, environmental organizations, community-based justice and public health organizations, the second-hand industry, and the solid waste industry.
- Authorizes producers to establish and implement a stewardship program independently or as part of one or more stewardship organizations (SO).
- Prohibits producers from selling, distributing for sale, offering for sale, or importing for sale any apparel or textile article in or into unless the producer is in compliance with any regulations in effect adopted pursuant to the bill.
- Requires producers opting to comply with the program through an SO to register with the SO and comply with all procedures and requirements of the SO.
- Specifies that producers are not in compliance with the bill and subject to penalties if, commencing two years from the adoption of regulations, a covered product sold or offered for sale by the producer is not subject to an approved stewardship plan.
- Requires producers, within 180 days of the effective date of this bill , to provide CalRecycle a list of covered products that the producer sells, distributes for sale, imports for sale, or offers for sale in or into the state. Requires the list to be updated on or before January 15 of every year or upon the request of CalRecycle.
- Requires a program operator to establish a method of fully funding the stewardship program in a manner that equitably distributes the program’s costs among participating producers that reflects the production and sales volumes. Requires the funding mechanism to incentivize green design by modulating distribution of costs to consider the cost of repairing, recycling, or otherwise managing specific covered products.
- Requires that all collection sites be operated to ensure that covered products are collected safely and handled in accordance with all applicable state, federal, and municipal laws and regulations and the rules and conditions of the stewardship plan. Allows authorized collectors and authorized sorters to divert reusable apparel and textile articles for sale in secondhand markets.
- Requires program operators, within 12 months of the effective date of the regulations, to develop and submit a complete stewardship plan to CalRecycle. Requires the stewardship plan to cover the collection, transportation, repair, sorting, recycling, and the safe and proper management of covered products in the state, as specified. Prohibits a program operator from limiting the stewardship plan to covered products of the producers participating in the program.
- Requires CalRecycle to review and approve, disapprove, or conditionally approve the plan within 120 days of receipt, unless CalRecycle consults with the Department of Toxic Substances Control, in which case it has 180 days. Establishes a process for revisions to the plan.
- Requires, within 24 months of the effective date of the regulations, program operators to have a complete stewardship plan approved by CalRecycle and requires that each producer to be subject to an approved stewardship plan.
- Requires, within 12 months of the approval of a stewardship plan, the program operator to fully implement the stewardship program.
- Requires CalRecycle to respond to requests for petitions to investigate noncompliant producers in a timely manner.
- Establishes required components for a stewardship plan, including:
- The names of producers and brands of covered products covered by the plan;
- A budget that fully funds the stewardship program;
- A description of methodologies used to measure and achieve the recycling efficiency rate or other criteria established by CalRecycle;
- A description of how the program operator will provide for a free and convenient collection system for covered products in each county and how the collection sites will be authorized and managed;
- A description of the process by which collected covered products will be sorted, transported, processed, repaired, reused, and recycled;
- A comprehensive statewide education and outreach program to educate consumers and promote participation in the program;
- A description of efforts to coordinate with specified entities;
- A contingency plan in the event the stewardship plan expires, is disapproved, or revoked.
- Develop a program in coordination with other program operators to support laundries for laundering covered products; and,
- A description of how the program operator will minimize the negative environmental impacts of all operations associated with the plan.
- Requires a program operator to review its stewardship plan at least every five years and determine whether plan revisions are necessary and, if necessary, submit the revised plan for review and approval. Authorizes CalRecycle to require plan revisions, as specified.
- Requires the program operator to pay CalRecycle’s costs associated with administering the program, as specified. Establishes the Textile Stewardship Recovery Fund for the purpose of implementing enforcing the bill’s requirements.
- Requires each producer, individually or through an SO, to pay all administrative and operational costs associated with establishing and implementing the stewardship program in which it participates.
- Requires the program operator to keep board minutes, books, and records that clearly reflect the activities and transactions of the program operator. Requires the program operator to retain an independent public accountant to annually audit the accounting books of the program operator, which must be included as part of its annual report. Authorizes CalRecycle to conduct its own audits.
- Requires the program operator to submit an annual report to CalRecycle that includes specified information about the preceding calendar year. Requires CalRecycle to determine if the annual report is in compliance with the program within 120 days of receipt.
- Requires CalRecycle, within 24 months of the effective date of the regulations, and on or before July 1 thereafter, to post a list of compliant producers, brands, and covered products. Requires retailers, importers, and distributors to monitor the list and prohibits the sale of noncompliant products.
- Establishes administrative civil penalties of up to $10,000 per day, and up to $50,000 per day for intentional, knowing, or reckless violations.
- In addition to assessing penalties for violations, authorizes CalRecycle to revoke a program operator’s stewardship plan approval, remove the producer from the website, impose additional compliance reporting requirements, and post the noncompliant entity to a list of noncompliant entities.
- Allows producers under a plan that was terminated or revoked to continue to continue to sell or offer for sale covered products for up to one year after the plan was terminated or revoked if the producer operates under the most recent approved plan.
- Establishes inspection, recordkeeping, and auditing requirements.
- Establishes anti-trust immunity for stewardship organization actions and provides justification for limitations on the public’s access to specified information.
- Specifies that nothing in the bill grants any city, county, city and county, special district, or joint powers authority with any new authority over solid waste handling or solid waste franchise agreements.
- Defines terms used in the bill, including:
- “Apparel” as clothing and accessory items intended for regular wear or formal occasions, including, but not limited to, undergarments, shirts, pants, skirts, dresses, overalls, bodysuits, costumes, vests, dancewear, suits, saris, scarves, tops, leggings, school uniforms, leisurewear, athletic wear, sports uniforms, everyday swimwear, formal wear, onsies, bibs, diapers, footwear, handbags, backpacks, and everyday uniforms for workwear. Excludes personal protective equipment or clothing items exclusively for use by the United States military.
- “Brand” as a trademark, including both a registered trademark and an unregistered trademark, logo, name, symbol, word, identifier, or traceable mark that identifies a covered textile article and identifies the owner or licensee of the brand.
- “Covered product” as any postconsumer apparel or postconsumer textile article that is unwanted by a consumer. Excludes products covered by the Used Mattress Recovery and Recycling Act or the Electronic Waste Recycling Act.
- “Importer” as either:
- A person qualifying as an importer or record, as specified; or,
- A person importing into the state for sale, distribution for sale, or offering for sale in the state a covered textile article that was manufactured or assembled by a company physically located outside of the state.
- “Producer” as a person who manufactures a covered product and who owns or is the licensee of the brand or trademark under which that covered product is sold, offered for sale, or distributed for sale in the state. If there is no person who meets this requirement, the producer is the owner of a brand or trademark or the exclusive licensee of a brand or trademark. If there is no person who meets these requirements, the producer is the person who sells, offers for sale, or is the importer or distributor of the covered textile article. Excludes sellers of secondhand apparel or secondhand textile articles.
- “Stewardship organization” (SO) means an organization exempt from taxation under Section 501 (c)(3) of the federal Internal Revenue Code that is established or designated by a group of producers in accordance with this chapter to develop and implement a stewardship program.
- “Stewardship program” as a program established by a program operator pursuant to the bill for the free at drop off, convenient, and safe collection, transportation, repair, recycling, and otherwise proper management of covered products.
- “Textile article” as any item customarily used in households or business that are made entirely or primarily from a natural, artificial, or synthetic fiber, yard, or fabric, including, blankets, curtains and fabric window coverings, knitted and woven accessories , towels, tapestries, bedding, tablecloths, napkins, linens, pillows, and fabric sold by the bolt at retail.
FISCAL EFFECT: According to the Senate Appropriations Committee, unknown ongoing costs, possibly in the millions of dollars annually (special fund), for CalRecycle to implement and administer the EPR program that would be established by this bill. CalRecycle notes that the initial fund source is not identified and a loan would be required. Once an SO is established, the fund source would be the Textile Stewardship Recovery Fund, which would be established by this bill. These costs would eventually be offset by reimbursements paid by the producer responsibility organization.
COMMENTS:
- Textile waste. According to CalRecycle’s 2020 Facility-Based Characterization of Solid Waste in California report, textiles, including apparel, textile (fabric), and textile articles (such as linens, curtains, etc.) were the sixth most prevalent material type disposed of by single-family residences in 2018. Overall, Californians disposed of nearly 1.2 million metric tons of textiles in 2018, making up about 3% of California’s total waste stream.
The generation of textile waste has been supercharged by the rise of fast fashion. “Fast fashion” is an approach to the design, creation, and marketing of clothing that emphasizes making fashion trends quickly and cheaply available to consumers. Retailers and producers benefit from frequently updating styles to incentivize shopping. Fast fashion has contributed to a global doubling of clothing production from 2000 to 2014. Fast fashion provides clothes to consumers for lower prices, but sacrifices the quality and longevity of garments in the process leading to more waste.
Dealing with all this waste is expensive; in 2021, California ratepayers paid more than $70 million dollars in disposal costs. Textile waste comes with a carbon cost as well; textile and garment industries account for between 6-8% of total global carbon emissions, or some 1.7 billion tons in carbon emissions per year.
- Managing waste textiles. According to CalRecycle, 95% of California's textile waste is reusable or recyclable, meaning that the textiles are in a condition that allows them to be reused, or that still have tags identifying the materials used. Tags are critical for textile recycling in order to identify the material type.
Both reuse and recycling for used textiles begin when textiles are discarded, either when businesses toss out scrap or surplus material, or when consumers dispose of old clothes or textile household items, like sheets, curtains, and pillows. Once these materials have been collected, they can be sorted to separate reusable material from material that is only eligible for recycling or landfilling.
According to CalRecycle, only 10-15% of garments donated or sold to second-hand markets are directly resold in the stores where they are collected. Of the remaining material, 30% is cut down to rags, 20% is converted into recycled fibers for uses such as carpet padding, insulation, and pillow stuffing, 5% is landfilled in the state, and 45% is sent overseas for further processing or eventual disposal. Items that are sent overseas may or may not have a long second life. For example, of the 15 million used garments that flow into Ghana every week, an estimated 40% are deemed worthless upon arrival and landfilled. This off-shore landfilling comes at a high carbon cost, since shipping overseas is a carbon-intensive process.
Recycling textiles is a multistep process. Natural fibers are mechanically processed. For example, cotton textiles are shredded, the fibers are separated, and then re-spun with virgin fibers into yarn to make new textiles. Synthetic fibers, such as polyester, can sometimes be mechanically processed by shredding, cleaning, molding into pellets, and then extruding into new fibers. If mechanical processing is not possible, the textiles can also undergo the more intensive process of chemical processing, where the synthetic material is broken down into its component molecules to remove contaminants and then reformed into fibers.
Blends of materials, either different types of natural fibers, synthetic fibers, or both, are typically not eligible for chemical processing, but can be mechanically processed and downcycled into composite materials, such as thermal insulation or carpet for use in the building industry.
The current recovery rate for textiles in the United States is approximately 15%, while the remaining 85% of discarded clothing and textiles are sent to landfill or incineration. Just one-percent of recycled clothes are turned back into new garments, which is the gold standard for recycling towards a circular economy.
- Pilot programs. According to the bill’s sponsor, the California Product Stewardship Council (CPSC), there are various textile recycling pilot projects underway or completed in San Francisco, the City of Los Angeles, the County of Los Angeles, and the County of Alameda. Additionally, SB 1187 (Kamlager), Chapter 616, Statutes of 2022, requires CalRecycle to establish a three-year pilot project in the Counties of Los Angeles and Ventura to study and report on the feasibility of recycling fabric; however, this program has not received funding through the Budget process.
- EPR. According to CalRecycle, EPR is a strategy that places shared responsibility for end-of-life management for products on the producers and all entities involved in the product chain, instead of entirely on local governments and ratepayers. EPR programs rely on industry, formalized in a product stewardship organization, to develop and implement approaches to create a circular economy that makes business sense, with oversight and enforcement provided by a government entity. This approach provides flexibility for manufacturers to design products in a way that facilitates recycling and to develop systems to capture those products at the end-of-life to meet statutory goals.
There are several key elements that should be carefully evaluated to develop a successful EPR program. These elements are part of CalRecycle’s “EPR checklist” and include considerations of: (1) the scope of the program (what and who is captured in the covered product and SO universe); (2) requirements for the SO; (3) funding for the program; and, (4) oversight for the program.
- Author’s statement:
The fashion industry is considered a top industrial polluter, accounting for approximately 10% of global carbon emissions. As textiles decompose, they emit high levels of methane gas, a major contributor to global warming. The phenomenon of “fast fashion,” which revolves around the marketing and sale of low-cost, low-quality garments that go out of vogue with increasing speed, is a major contributor to this alarming environmental trend.
A well-designed and effectively administered statewide textile [EPR] program has the potential to develop previously untapped or underutilized upcycled and recycled clothing and fiber markets, as well as to support ongoing efforts to encourage the repair and reuse of clothing and other textiles in California. In so doing, SB 707 will facilitate a transition to a sustainable, market-aligned, circular economy for textiles that will unlock new production and consumption opportunities to the benefit of the environment, all at a relatively low cost to both the state and consumers alike.
- The big picture. This bill is intended to create a statewide EPR program to manage the volumes of textile waste generated in California. The program would require producers, either individually or through one or more SOs, to design and implement a program to collect and recycle, reuse, repair, or otherwise properly manage textile wastes, including apparel, bulk fabric, and other textile articles.
- Details matter. This bill establishes a broad framework for an EPR program, including the basic components of an EPR program, but leaves the details open for the producer responsibility organization or CalRecycle to develop through the plan or as part of the regulations.
“Apparel” is defined broadly to include, but not be limited to, nearly all items of clothing and accessories that are worn. “Textile article” is also defined, but uses terminology that aligns with federal harmonized tariff schedule (HTS) codes, which are widely used by industry to describe individual items in commerce. Using two different definitions, one that will have to be interpreted by CalRecycle (apparel) and the other that is based on accepted industry standards (textile articles) may create confusion about what types of textiles and textile products are covered by the bill. Additionally, the stated focus of the bill is to address the significant waste generated by the fast fashion industry, but the bill includes fabric sold by the bolt at retail, which is used by consumers who make their own clothes or textile items and is arguably the opposite end of the spectrum from fast fashion.
This bill models the definition of producer after prior EPR legislation, which starts with the brand owner and steps down to the importer or retailer to ensure that there is an entity located within the state that is responsible for ensuring compliance with the bill’s requirements. This has worked well previously, but it may not be able to capture many fast fashion producers, as a significant portion of fast fashion apparel is shipped directly to in-state consumers from companies located overseas. These products would be collected and managed by the in-state program operators, but it may be difficult or impossible to require overseas producers to participate in the program.
Program operators will also continue to be responsible for the collection and management of items collected from the reuse and repair market. For example, a pair of jeans imported into the state and sold by a member of a stewardship organization who participates in the program, including paying the relevant fees and complying with program requirements. When those jeans are collected by a program operator, sorted, and used as fabric by a different manufacturer to make a new item like a skirt or a throw pillow, that manufacturer only covered by the program as a reuse facility. This means that program operators of the stewardship program will continue to be responsible for the collection and reuse or recycling of the fabric that skirt or pillow is made from until it is recycled into a product that is not a textile or disposed.
This bill establishes clear metrics for collection sites, requiring each program operator to provide at least 10 collection sites per county, or one collection site for every 25,000 people, whichever is greater. This appears to be required for every program operator, including every producer opting to implement the program individually. As drafted, all producer responsibility organizations would have to collect all materials covered by the bill, whether or not their stewardship plan covers all covered products. This will provide convenience for consumers, but may be somewhat challenging for program operators if there are multiple stewardship plans covering different covered products.
This bill does not establish any recycling goals or timelines. CalRecycle is required to adopt regulations to implement the bill, but there is no timeline for those regulations to be adopted or to go into effect other than “no earlier than December 31, 2025.” While this should alleviate any concerns about CalRecycle’s capacity to adopt the regulations quickly, it may result in an indefinite delay before the program goes into effect. Moreover, it precludes CalRecycle from adopting a minimum recycling efficiency rate (i.e., the percentage of material collected that is actually recycled) when developing the program’s regulations. Instead, the bill allows CalRecycle to adopt a minimum recycling efficiency rate when it reassesses the program’s regulations in 2032. So, for at least the first several years of the program’s operation, program operators will not have any specific targets to achieve beyond collection. If CalRecycle decides not to adopt a rate in 2032, the bill allows program operators to include one, at their discretion, in a stewardship plan revision. The bill also precludes CalRecycle from adopting, “other criteria” for the program until 2032, which may include things like recycled content requirements or limitations on certain types of products or materials that may hinder recycling. While EPR programs appropriately allow producers to determine how to achieve the goals of the programs, it is the role of policy makers to establish clear objectives and timelines for those programs.
According to the author, they are working with CalRecycle to receive technical assistance to refine the bill’s provisions. Many prior bills that established EPR programs took multiple years to allow adequate time for negotiations with all stakeholders. If this bill moves forward, the author and sponsors should continue to work with stakeholders, the administration, and this committee to ensure that the bill can be effectively implemented and that the program fulfills the goals of the author.
- Suggested amendments: The committee may wish to make the following amendments to the bill:
- Correct references to “covered product” and “apparel and textile articles” throughout the bill.
- Revise the definition of “apparel” to include knitted and woven accessories and remove handbags and backpacks.
- Exempt products covered by the state’s carpet EPR law to avoid potentially duplicative regulation of carpets and rugs.
- Revise the definition of “textile article” to remove knitted and woven accessories and clarify that the list of textile articles is exclusive.
- Revise the effective date from “no earlier than December 31, 2025” to “no later than December 31, 2026” and extend the date CalRecycle is authorized to revise the regulations from 2032 to 2033.
- Authorize CalRecycle to establish a minimum recycling efficiency rate and other program criteria by regulation and specify that the regulations can be revised no more frequently than every two years.
- Require the program operator to consult the advisory committee when determining whether revisions to the stewardship plan are necessary.
- Clarify the reporting requirements for apparel and textile articles sold in the state and covered products collected by the program operator for reuse, recycling, or disposal.
- Authorize CalRecycle to require, by regulation, producers or program operators to meet program requirements if it determines that a producer or program operator has not achieved any of the requirements of the program.
- Clarify that the statement that the bill does not grant a city, county, city and county, special district, or joint powers authority any new authority over solid waste franchises is legislative intent.
- Make related technical and clarifying amendments.
- Correct references to “covered product” and “apparel and textile articles” throughout the bill.
REGISTERED SUPPORT / OPPOSITION:
Support
5 Gyres Institute
Ambercycle
Aquafil Carpet Recycling
Boardrider
California Environmental Voters
California Product Stewardship Council
Californians Against Waste
CALPIRG
Castro Valley Sanitary District
CBU Productions
Center for Oceanic Awareness, Research, & Education
Changing Markets Foundation
Circ, INC.
Cirtex
City of Roseville
City of San Jose
City of Sunnyvale
Climate Reality Project, Los Angeles Chapter
Climate Reality Project, San Fernando Valley
County of Santa Barbara
Coyuchi
Delta Diablo
Environmental Working Group
Everlane
Fashion Revolution USA
Fibershed
Fort Ord Environmental Justice Network
Friends Committee on Legislation of California
Full Circle Environmental
Grace Veterinary, INC
Greenwaste Recovery
Heal the Bay
Luna Lab
Lymi, INC. Dba Reformation
Mara Hoffman
Marmot
Materevolve
Mojave Desert and Mountain Recycling Authority
National Stewardship Action Council
Northern California Recycling Association
Ocean+main
Ouros Industries
Plastic Oceans International
Plastic Pollution Coalition
Plsreturnit INC
Product Stewardship Institute
R3 Consulting Group, INC.
Ravel
Recology
Renewcell
Repeat Reuse, INC
Republic Services INC.
Resource Recovery Coalition of California
Roboro
Rural County Representatives of California
Salinas Valley Solid Waste Authority
Santa Barbara County Solid Waste Local Task Force
Santa Clara County Recycling and Waste Reduction Commission
Scullyspark
Sea Hugger
Seventh Generation Advisors
Sierra Club California
Social Compassion in Legislation
Solana Center for Environmental Innovation
Sortile
South Bayside Waste Management Authority Dba Rethinkwaste
St. Catherine University
Stand Up to Trash
Sustainable Works
The Fashion Connection
Upcycle It Now
USAgain
Western Placer Waste Management Authority (WPWMA)
Wishtoyo Chumash Foundation
Zero Waste Company
Zero Waste San Diego
Zero Waste Sonoma
Zero Waste USA
Opposition
Accelerating Circularity, INC.
American Apparel & Footwear Association
American Circular Textiles Group
California Chamber of Commerce
California Manufacturers and Technology Association
Analysis Prepared by: Elizabeth MacMillan / NAT. RES. /
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB 707 |
THIRD READING
Bill No: SB 707
Author: Newman (D), et al.
Amended: 5/23/23
Vote: 21
SENATE ENVIRONMENTAL QUALITY COMMITTEE: 5-2, 3/29/23
AYES: Allen, Gonzalez, Hurtado, Menjivar, Skinner
NOES: Dahle, Nguyen
SENATE JUDICIARY COMMITTEE: 9-0, 4/25/23
AYES: Umberg, Allen, Ashby, Caballero, Durazo, Laird, Min, Stern, Wiener
NO VOTE RECORDED: Wilk, Niello
SENATE APPROPRIATIONS COMMITTEE: 5-2, 5/18/23
AYES: Portantino, Ashby, Bradford, Wahab, Wiener
NOES: Jones, Seyarto
SUBJECT: Responsible Textile Recovery Act of 2023
SOURCE: California Product Stewardship Council
DIGEST:
This bill establishes the Responsible Textile Recovery Act of 2023, which creates an Extended Producer Responsibility (EPR) program for textiles with oversight from the Department of Resources Recycling and Recovery (CalRecycle).
ANALYSIS:
Existing law:
- Regulates, generally, under the California Integrated Waste Management Act (IWMA) of 1989, administered by the Department of Resources Recycling and Recovery (CalRecycle), the disposal, management, and recycling of solid waste. The act establishes EPR programs for various products, including, among others, carpet, mattresses, and pharmaceutical and sharps waste. (PRC §§ 40000 et. seq.) Establishes under IWMA a state recycling goal that 75% of solid waste generated is to be diverted from landfill disposal through source reduction, recycling, and composting by 2020. (PRC § 41780.01)
- Requires CalRecycle to establish a three-year pilot project located in the Los Angeles and Ventura Counties partnering with garment manufacturers to study and report on the feasibility of recycling fabric. (PRC § 40512)
- Establishes, upon appropriation from the Legislature, a Zero-eWaste equity grant program that can be used for repair and extending the life of products including textiles (PRC § 42999.5).
This bill establishes the Responsible Textile Recovery Act of 2023, which creates an EPR program for apparel, textiles, or textile articles. Specifically, this bill:
- Defines “covered product” to include any apparel, textile (e.g. cloth), or textile article (e.g. bed sheets, curtains, etc.) exempting carpets and mattresses that are already in other EPR programs.
- Requires CalRecycle to set regulations to implement this chapter by December 31, 2025, and authorizes CalRecycle to adjust regulations pertaining to collection sites and minimum recycling efficiency rate for covered products collected and recycled by program operators beginning January 1, 2032.
- Requires CalRecycle to establish an advisory body no later than 90 days after the effective date of regulations adopted pursuant to this bill.
- Establishes a producer responsibility organization (PRO) that would submit to CalRecycle a stewardship plan within 12 months of regulations being developed. CalRecycle will review the Plan and approve, disprove, or conditionally approve the plan.
- Requires the PRO to review the stewardship plan at least every five years thereafter.
- Requires PROs to pay fees to CalRecycle, not to exceed the department’s actual and reasonable regulatory costs to implement and enforce the provisions of the Act.
- Requires the stewardship program to submit an annual report to the department, under penalty of perjury, and requires the department to post online a list of producers that are in compliance with the program requirements.
- States that a retailer, importer, or distributor shall not sell, distribute or import covered products into the State unless the producer is on the list of producers in compliance with program requirements.
- Authorizes the department to impose a civil penalty on a producer, PRO, or importer manufacturer, distributor, or retailer that does not meet the requirements of the chapter. The civil penalties can be up to $10,000 per day or up to $50,000 per day if the violation is intentional, knowing, or reckless.
- Establishes a Textile Stewardship Recovery Penalty Account for these penalties for the deposit of penalties, which would be available for expenditure upon appropriation by the Legislature.
Background
- Textiles waste is a growing environmental problem. According to CalRecycle’s 2020 ‘Facility-Based Characterization of Solid Waste in California’ report, textiles, including apparel, textile (cloth), and textile articles (such as linens, curtains, etc.) were the sixth most prevalent material type disposed of by single-family residences in 2018. Overall, Californians disposed of nearly 1.2 million metric tons of textiles in 2018, making up about 3% of California’s total waste stream.
Textile waste has been supercharged by the rise of fast fashion. “Fast fashion” is an approach to the design, creation, and marketing of clothing that emphasizes making fashion trends quickly and cheaply available to consumers. Retailers and producers benefit from frequently updating styles to incentivize shopping. Fast fashion has contributed to a global doubling of clothing production from 2000 to 2014. Fast fashion provides clothes to consumers for lower prices, but sacrifices the quality and longevity of garments in the process: this leads to more waste.
Dealing with all this waste is expensive: in 2021, approximately 1.2 million tons of textiles were disposed of, costing California taxpayers more than $70 million dollars in disposal costs.
This waste comes with a carbon cost as well: textile and garment industries account for between 6-8% of total global carbon emissions, or some 1.7 billion tons in carbon emissions per year.
- Reuse and Recycle: What is currently done with old textiles? According to CalRecycle, 95% of California’s textile waste is reusable or recyclable, meaning that the textiles are in a condition for reuse or still have tags identifying the material used (tags are important to recycling since it is critical to know what the material type of a textile is to select the proper recycling processes for that material).
Both recycling and reuse for used textiles begin when textiles are discarded--either when businesses toss out scrap or surplus material, or when consumers throw out old clothes or textile household items, like sheets, curtains, and pillows. Once these materials have been collected, they are sorted to separate reusable material from material that is only eligible for recycling or landfilling.
According to CalRecycle, only 10-15% of garments donated or sold to second-hand markets are directly resold in the stores where they are deposited. Of the remaining material, 30% is cut down to rags, 20% is converted into recycled fibers for uses such as carpet padding, insulation, and pillow stuffing, 5% is landfilled in-State, and 45% is sent overseas for further processing. Items that are sent overseas may or may not have a long second life: of the 15 million used garments that flow into Ghana every week, an estimated 40% are deemed worthless upon arrival and landfilled. This off-shore landfilling comes at a carbon cost, since shipping is a carbon-intensive process.
Recycling - Recycling textiles is a multistep process. Natural fibers are mechanically processed: for example, cotton textiles are shredded, the fibers are separated, and then re-spun with virgin fibers into yarn to make new textiles. Synthetic fibers, such as polyester, can sometimes be mechanically processed by shredding, cleaning, molding into pellets, and then extruding into new fibers. If mechanical processing is not possible, the textiles can also undergo the more intensive process of chemical processing, where the synthetic material is broken down into its component molecules to remove contaminants and then reformed into fibers.
Blends of materials, either different types of natural, synthetic, or both are typically not eligible for chemical processing, but can be mechanically processed and downcycled: blended fabrics are shredded and pulled to transform them into fibers of shorter length to produce other composite materials such as thermal insulation or carpet for use in the building industry.
The current recovery rate for textiles in the U.S. is approximately 15%, while the remaining 85% of discarded clothing and textiles are sent to landfill or incineration. Just 1 percent of recycled clothes are turned back into new garments—the gold standard for recycling towards a zero-waste economy.
- Introduction to EPR. According to CalRecycle, extended producer responsibility (EPR) is a strategy that places shared responsibility for end-of-life product management on the producers and all entities involved in the product chain, instead of on the general public and local governments. EPR programs rely on industry, formalized in a product stewardship organization, to develop and implement approaches to create a circular economy that makes business sense, with oversight and enforcement provided by the government. This approach provides flexibility for manufacturers, based on their expertise in designing products and the systems that bring these products to market, to design systems to capture those products at the end-of-life to meet statutory goals. Currently, there are five statewide EPR programs: paint, carpet, mattresses, pharmaceutical and sharps waste, and plastic packaging, and single-use plastic items. To date, 33 U.S. states have passed 124 EPR laws covering 15 products, although to date no EPR laws cover textiles. Internationally, France currently has the only EPR law for textiles.
There are several key elements to any EPR program that should be carefully evaluated to develop a working EPR program that avoids loopholes. These elements are part of CalRecycle’s “EPR checklist” and include considerations of (1) the scope of the program: what and who is captured in the covered product and PRO universe; (2) requirements for the stewardship organization; (3) funding for the program; and (4) oversight for the program.
Comments
- Purpose of Bill. According to the author, “the fashion industry is considered a top industrial polluter, accounting for approximately 10% of global carbon emissions. A well-designed and effectively administered statewide textile extended producer responsibility (EPR) program has the potential to develop previously untapped or underutilized upcycled and recycled clothing and fiber markets, as well as to support ongoing efforts to encourage the repair and reuse of clothing and other textiles in California. In so doing, SB 707 will facilitate a transition to a sustainable, market-aligned, circular economy for textiles that will unlock new production and consumption opportunities to the benefit of the environment, all at a relatively low cost to both the State and consumers alike.”
- What are the big-picture goals? This bill outlines clear metrics for collection sites, but does not set any other specific goals for the EPR program. Existing EPR programs have set goals for recycling, source reduction, recycling efficiency rate, or other strategies that are used to drive progress and evaluate the success of EPR programs. By giving license to CalRecycle and then the stewardship organizations to set and prioritize these goals and identify how the program will be funded, the bill minimizes the role of the Legislature in steering textile reduction and recycling policy. While EPRs operate by allowing producers, with their insider-knowledge of industry, to develop solutions, it is the role of policy makers to set clear objectives for industry-led product stewardship organizations to steer towards. Developing more clear goals for the program, a lengthy and iterative process, will allow the Legislature to make clear their policy goals in reducing textile waste.
- Using existing infrastructure. One of the most challenging aspects of any successful EPR program is developing a strong collection and transportation infrastructure. In this respect, textiles have a leg up on most industries, because textile collection sites are already widely used by the public (e.g. Goodwill and Salvation Army drop-off locations). To maximize the use of this existing infrastructure, SB 707 could explicitly direct producers to work with second-hand markets to piggyback on these existing sites. Including this level of operational specificity in SB 707 would be appropriate because second-hand markets are not identified as producers in the bill, meaning that they will not be part of any PRO and would not be involved in developing the Stewardship Program which determines the overall collection policy for the program.
Related/Prior Legislation
SB 1187 (Kamlager, Chapter 616, Statutes of 2022) required CalRecycle to establish a three-year pilot project located in the Los Angeles and Ventura Counties partnering with garment manufacturers to study and report on the feasibility of recycling fabric.
SB 54 (Allen, Chapter 75, Statutes of 2022) established the Plastic Pollution Prevention and Packaging Producer Responsibility Act, which sets minimum content requirements for single-use packaging and food service ware and source reduction requirements for plastic single-use packaging and food service ware through an extended producer responsibility program.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
According to the Senate Appropriations Committee, unknown ongoing costs, possibly in the millions of dollars annually (special fund), for CalRecycle to implement and administer the EPR program that would be established by this bill. CalRecycle notes that the initial fund source is not identified and a loan would be required. Once a stewardship organization is established, the fund source would be the Textile Stewardship Recovery Fund, which would be established by this bill. These costs would eventually be offset by reimbursements paid by the producer responsibility organization.
SUPPORT: (Verified 5/18/23)
California Product Stewardship Council (source)
5 Gyres Institute
Accelerating Circularity, Inc.
Ambercycle
Aquafil Carpet Recycling
California Environmental Voters
California Resource Recovery Association
Californians Against Waste
CALPIRG
Castro Valley Sanitary District
CBU Productions
Changing Markets Foundation
Circ, Inc.
Cirtex
City of Roseville
City of San Jose
City of Thousand Oaks
COARE
County of Santa Clara
Environmental Working Group
Fashion Revolution USA
Fibershed
Friends Committee on Legislation of California
Heal the Bay
Materevolve
National Stewardship Action Council
Northern California Recycling Association
Plastic Pollution Coalition
Product Stewardship Institute
R3 Consulting Group, Inc.
Ravel
Repeat Reuse, Inc.
Republic Services Inc.
Roboro
Salinas Valley Solid Waste Authority
Santa Barbara County Resource Recovery & Waste Management Authority
Santa Clara County Recycling and Waste Reduction Commission
Scullyspark
Sea Hugger
Secondary Materials and Recycled Textiles Association
Sierra Club
Sortile
South Bayside Waste Management Authority
St. Catherine University
Sustainable Works
Upcycle It Now
Western Placer Waste Management Authority
Wishtoyo Chumash Foundation
Zero Waste Company
Zero Waste San Diego
Zero Waste Sonoma
OPPOSITION: (Verified 5/18/23)
None received
Prepared by: Brynn Cook / E.Q. / (916) 651-4108
5/23/23 13:28:32
**** END ****
SENATE COMMITTEE ON
Senator Anthony Portantino, Chair
2023 - 2024 Regular Session
SB 707 (Newman) - Responsible Textile Recovery Act of 2023
Version: | Policy Vote: |
Urgency: | Mandate: |
Hearing Date: | Consultant: |
Bill Summary:
This bill would require producers of textiles to establish an extended producer responsibility (EPR) or stewardship program for the collection, transportation, recycling, and the safe and proper management of apparel, textiles, or textile articles in California.
*********** ANALYSIS ADDENDUM – SUSPENSE FILE ***********
The following information is revised to reflect amendments
adopted by the committee on May 18, 2023
Fiscal Impact:
- Unknown ongoing costs, possibly in the millions of dollars annually (special fund), for the Department of Resources Recycling and Recovery (CalRecycle) to implement and administer the EPR program that would be established by this bill. CalRecycle notes that the initial fund source is not identified and a loan would be required. Once a stewardship organization is established, the fund source would be the Textile Stewardship Recovery Fund, which would be established by this bill. These costs would eventually be offset by reimbursements paid by the producer responsibility organization.
Author Amendments:
These amendments would narrow the scope of covered products by exempting toys, furniture and upholstery.
-- END --
SENATE COMMITTEE ON APPROPRIATIONS
Senator Anthony Portantino, Chair
2023 - 2024 Regular Session
SB 707 (Newman) - Responsible Textile Recovery Act of 2023
Version: April 11, 2023 | Policy Vote: E.Q. 5 - 2, JUD. 9 - 0 |
Urgency: No | Mandate: Yes |
Hearing Date: May 8, 2023 | Consultant: Ashley Ames |
Bill Summary:
This bill would require producers of textiles to establish an extended producer responsibility (EPR) or stewardship program for the collection, transportation, recycling, and the safe and proper management of apparel, textiles, or textile articles in California.
Fiscal Impact:
- The Department of Resources Recycling and Recovery (CalRecycle) estimates initial costs of around $1.6 million (special fund) in the first budget year that would increase substantially once compliance and enforcement (including auditing) activities commence. CalRecycle notes that the initial fund source is not identified and a loan would be required. Once a stewardship organization is established, the fund source would be the Textile Stewardship Recovery Fund, which would be established by this bill. These costs would eventually be offset by reimbursements paid by the producer responsibility organization.
Background:
Extended producer responsibility (EPR). EPR refers to a waste management strategy that makes the manufacturer of a product responsible for the products’ entire life–cycle costs including its end–of–life costs associated with recycling or disposal. These costs have traditionally been borne by local governments (and ultimately tax payers) through municipal waste disposal programs. This traditional structure results in an “externality” or a situation where the costs of recycling or disposal are not paid by the buyer or seller of the product, but rather by a third party (such as tax payers). EPR shifts the costs of managing a product at its end of life from waste disposal programs to the manufacturer of the product. By requiring manufacturers to cover end–of–life costs, these costs are incorporated or “internalized” into the total cost of the product when it is sold. Therefore, the price that consumers pay reflects the entire cost of the product—its production and disposal. This means that the people making and using the product cover all of its costs, rather than local governments and taxpayers covering a share of disposal costs. Moreover, manufacturers have a financial incentive to design products that are inexpensive to recycle. In California, EPR is already used for carpet, mattresses, and paint.
Mixed results for California EPR programs. To date, the Legislature has enacted four EPR programs of which CalRecycle has enforcement authority – paint, carpet, mattresses, and pharmaceutical and sharps waste – showing varying degrees of success. While CalRecycle does not appear to have oversight issues with the paint stewardship program, CalRecycle was subject to an audit for its oversight of the mattress recycling program. The carpet recycling program has encountered the most challenges of the EPR programs with the enforcement history of the carpet stewardship organization being extensive and complicated. Only enacted in 2018, the pharmaceutical and sharps waste program is still in development.
Textiles waste is a growing environmental problem. According to CalRecycle’s 2020 ‘Facility-Based Characterization of Solid Waste in California’ report, textiles, including apparel, textile (cloth), and textile articles (such as linens, curtains, etc.) were the sixth most prevalent material type disposed of by single-family residences in 2018. Overall, Californians disposed of nearly 1.2 million metric tons of textiles in 2018, making up about 3% of California’s total waste stream.
Textile waste has been supercharged by the rise of fast fashion. “Fast fashion” is an approach to the design, creation, and marketing of clothing that emphasizes making fashion trends quickly and cheaply available to consumers. Retailers and producers benefit from frequently updating styles to incentivize shopping. Fast fashion has contributed to a global doubling of clothing production from 2000 to 2014. Fast fashion provides clothes to consumers for lower prices, but sacrifices the quality and longevity of garments in the process: this leads to more waste.
Dealing with all this waste is expensive: in 2021, approximately 1.2 million tons of textiles were disposed of, costing California taxpayers more than $70 million dollars in disposal costs.
This waste comes with a carbon cost as well: textile and garment industries account for between 6-8% of total global carbon emissions, or some 1.7 billion tons in carbon emissions per year.
Proposed Law:
This bill would require producers of textiles to establish an EPR or stewardship program for the collection, transportation, recycling, and the safe and proper management of apparel, textiles, or textile articles in California. Specifically, this bill would:
- Establish the Responsible Textile Recovery Act (Act) of 2023, which would create an EPR program for a covered product, which includes any apparel, textiles, or textile articles.
- Define “covered product” to include any apparel, textile (e.g. cloth), or textile article (e.g. bed sheets, curtains, etc.) exempting carpets and mattresses that are already in other EPR programs.
- Require CalRecycle to set regulations to implement this chapter by December 31, 2025, and authorize CalRecycle to adjust regulations pertaining to collection sites and minimum recycling efficiency rate for covered products collected and recycled by program operators beginning January 1, 2032.
- Require CalRecycle to establish an advisory body no later than 90 days after the effective date of adopted regulations.
- Establish a producer responsibility organization (PRO) that would submit to CalRecycle a stewardship plan within 12 months of regulations being developed. CalRecycle must review the plan and approve, disprove, or conditionally approve the plan.
- Require the stewardship program to submit an annual report to the department, under penalty of perjury, and requires the department to post online a list of producers that are in compliance with the program requirements.
- Prohibit a retailer, importer, or distributor from selling, distributing, or importing covered products into the state unless the producer is on the list of producers in compliance with program requirements.
- Authorize the department to impose an administrative civil penalty on a producer, PRO, or importer manufacturer, distributor, or retailer that does not meet the requirements of the Act. The administrative civil penalty cannot exceed $10,000 per day, but if the violation is intentional, knowing, or reckless the penalty cannot exceed $50,000 per day.
Related Legislation:
SB 1187 (Kamlager, Chapter 616, Statutes of 2022) requires CalRecycle to establish a three-year pilot project located in the Los Angeles and Ventura Counties partnering with garment manufacturers to study and report on the feasibility of recycling fabric.
SB 54 (Allen, Chapter 75, Statutes of 2022) establishes the Plastic Pollution Prevention and Packaging Producer Responsibility Act, which sets minimum content requirements for single-use packaging and food service ware and source reduction requirements for plastic single-use packaging and food service ware through an extended producer responsibility program.
Staff Comments:
CalRecycle notes that there are costs associated with any new EPR program that range in excess of $1 million dollars for department staff to develop and adopt regulations, administer the stewardship program, review plans and reports, assess product stewardship performance standards, conduct audits, and provide legal and administrative support to the program, among other things. The ability to recoup costs of administration and enforcement of the EPR program is common in EPR frameworks and paid for by the producer responsibility organization.
-- END --
Senator Thomas Umberg, Chair
2023-2024 Regular Session
Bill No: SB 707 (Author:Newman)
Version: April 11, 2023
Hearing Date: April 25, 2023
Fiscal: Yes
Urgency: No
Consultant: AM
SUBJECT
Responsible Textile Recovery Act of 2023
DIGEST
This bill requires producers of textiles to establish an extended producer responsibility (EPR) or stewardship program for the collection, transportation, recycling, and the safe and proper management of apparel, textiles, or textile articles in California.
EXECUTIVE SUMMARY
Textiles and textile articles make up a growing percentage of California’s solid waste, contribute to global warming, and cause environmental degradation to soil and water.
This bill is intended to address these issues by establishing an EPR program for apparel, textiles, and textile articles. The bill is sponsored by the California Products Stewardship Council and supported by numerous environmental and other organizations. The bill opposed by the California Manufacturers & Technology Association. This bill passed the Senate Environmental Quality Committee on a vote of 5 to 2.
PROPOSED CHANGES TO THE LAW
Existing law:
- The California Integrated Waste Management Act (IWMA) of 1989, administered by the Department of Resources Recycling and Recovery (CalRecycle), generally regulates the disposal, management, and recycling of solid waste. The act establishes extended producer responsibility (EPR) programs for various products, including, among others, carpet, mattresses, and pharmaceutical and sharps waste. (Pub. Res. Code § 40000 et. seq.)
- Establishes under IWMA a state recycling goal that 75% of solid waste generated is to be diverted from landfill disposal through source reduction, recycling, and composting by 2020. (Pub. Res. Code § 41780.01)
- Requires CalRecycle to establish a three-year pilot project located in the Los Angeles and Ventura Counties partnering with garment manufacturers to study and report on the feasibility of recycling fabric. (Pub. Res. Code § 40512)
- Establishes, upon appropriation from the Legislature, a Zero-eWaste equity grant program that can be used for repair and extending the life of products including textiles. (Pub. Res. Code § 42999.5).
This bill:
- Establishes the Responsible Textile Recovery Act (Act) of 2023, which creates an EPR program for a covered product, which includes any apparel, textiles, or textile articles.
- Defines “covered product” to include any apparel, textile (e.g. cloth), or textile article (e.g. bed sheets, curtains, etc.) exempting carpets and mattresses that are already in other EPR programs.
- Requires CalRecycle to set regulations to implement this chapter by December 31, 2025, and authorizes CalRecycle to adjust regulations pertaining to collection sites and minimum recycling efficiency rate for covered products collected and recycled by program operators beginning January 1, 2032.
- Requires CalRecycle to establish an advisory body no later than 90 days after the effective date of adopted regulations.
- Establishes a producer responsibility organization (PRO) that would submit to CalRecycle a stewardship plan within 12 months of regulations being developed. CalRecycle must review the plan and approve, disprove, or conditionally approve the plan.
- Requires the stewardship program to submit an annual report to the department, under penalty of perjury, and requires the department to post online a list of producers that are in compliance with the program requirements.
- Prohibits a retailer, importer, or distributor from selling, distributing, or importing covered products into the state unless the producer is on the list of producers in compliance with program requirements.
- Authorizes the department to impose an administrative civil penalty on a producer, PRO, or importer manufacturer, distributor, or retailer that does not meet the requirements of the Act. The administrative civil penalty cannot exceed $10,000 per day, but if the violation is intentional, knowing, or reckless the penalty cannot exceed $50,000 per day.
COMMENTS
- Stated need for the bill
The author writes:
The fashion industry is considered a top industrial polluter, accounting for approximately 10% of global carbon emissions. As textiles decompose, they emit high levels of methane gas, a major contributor to global warming. The phenomenon of “fast fashion,” which revolves around the marketing and sale of low-cost, low-quality garments that go out of vogue with increasing speed, is a major contributor to this alarming environmental trend.
A well-designed and effectively administered statewide textile extended producer responsibility (EPR) program has the potential to develop previously untapped or underutilized upcycled and recycled clothing and fiber markets, as well as to support ongoing efforts to encourage the repair and reuse of clothing and other textiles in California. In so doing, SB 707 will facilitate a transition to a sustainable, market-aligned, circular economy for textiles that will unlock new production and consumption opportunities to the benefit of the environment, all at a relatively low cost to both the State and consumers alike.
- This bill establishes the Responsible Textile Recovery Act of 2023
This bill intends to address the growing problem of textile waste by establishing and EPR program for any apparel, textile (e.g. cloth), or textile article (e.g. bed sheets, curtains, etc.). Carpets and mattresses that are already covered under other EPR programs in the state are exempt from the Act’s provisions.
- Extended producer responsibility (EPR) programs
The Senate Environmental Quality Committee’s analysis of this bill provides useful background on product stewardship programs or extended producer responsibility (EPR), which is at the heart of this bill:
[EPR] is a strategy that places shared responsibility for end-of-life product management on the producers and all entities involved in the product chain, instead of on the general public and local governments. EPR programs rely on industry, formalized in a product stewardship organization, to develop and implement approaches to create a circular economy that makes business sense, with oversight and enforcement provided by the government. This approach provides flexibility for manufacturers, based on their expertise in designing products and the systems that bring these products to market, to design systems to capture those products at the end-of-life to meet statutory goals. [1]
California currently has five statewide EPR programs for paint, carpet, mattresses, pharmaceutical and sharps waste, and plastic packaging, and single-use plastic items.[2]
- Growing problem of textile waste and its effects on the environment
The Senate Environmental Quality Committee’s analysis explored the growing problem of textile waste and its effects on the environment. The analysis notes:
- Textiles, including apparel, textile (cloth), and textile articles (such as linens, curtains, etc.) were the sixth most prevalent material type disposed of by single-family residences in 2018;
- In 2018, Californians disposed of nearly 1.2 million metric tons of textiles accounting for about 3% of California’s total waste stream;
- Dealing with textile waste is expensive costing California taxpayers more than $70 million dollars in disposal costs in 2021 to dispose of approximately 1.2 million tons of textiles.
- Textile and garment industries account for between 6 to 8% of total global carbon emissions, which is 1.7 billion tons in carbon emissions per year; and
- CalRecycle found that 95% of California’s textile waste is reusable or recyclable but the current recovery rate for textiles in the United States is approximately 15%, while the remaining 85% are sent to landfills or incineration.[3]
- The Dormant Commerce Clause
Section 8 of Article I of the United States Constitution grants the United States Congress the power to regulate interstate commerce.[4] The converse proposition—that states may not usurp Congress’s express power to regulate interstate commerce—is known as the “Dormant Commerce Clause.”[5] The Dormant Commerce Clause serves as an absolute bar to regulations that discriminate against interstate commerce, i.e., by favoring in-state businesses or excluding out-of-state businesses.[6] But “[s]tate laws that ‘regulat[e] even-handedly [across all in-state and out-of-state businesses] to effectuate a legitimate local public interest…will be upheld unless the burden imposed upon such commerce is clearly excessive in relation to the putative local benefits.’ ”[7] This bill’s provisions apply equally to producers who manufacture a covered product (any apparel, textile, or textile article) and who owns or is the licensee of the brand or trademark under which that covered product is sold, offered for sale, or distributed for sale in or into the state. As such, the bill does not favor in-state businesses over out-of-state businesses.
A statute may also violate the dormant Commerce Clause, even if it "regulates even handedly to effectuate a legitimate local public interest, and its effects on interstate commerce are only incidental" and the burden imposed on commerce “is clearly excessive in relation to the putative local benefits." (Pike v. Bruce Church, Inc. (1970) 397 U.S. 137, 142.) As this bill’s provisions are intended to address the serious environmental impacts posed by covered products, this bill would likely not be found to excessively burden interstate commerce in violation of the Dormant Commerce Clause.
- Access to records
The bill also provides that while an approved stewardship plan is a public record, financial or sales data reported to CalRecycle by the program operator is not a public record for purposes of the California Public Records Act and is not open to public inspection. It authorizes CalRecycle to release this data in summary form only, so it cannot be attributable to a specific entity. As this imposes a limitation on the public’s right of access to this information, the bill provides the following justification: “It is in the best interest of the public to provide limited protection of certain financial, production, and sales data of program participants, in order to protect the interests of businesses and the privacy of their data regarding their customers.”
The bill also prohibits CalRecycle from disclosing any confidential proprietary information contained in audits. Producers and stewardship organizations are required to make their annual reports publicly available free of charge, but if the report contains trade secrets or confidential information protected under existing law, they need only provide a description of the information and its relevance to the stewardship program omitting any of the trade secret or confidential information.
- Antitrust immunity
As with most of the EPR schemes provided for in California law, this bill includes express exemptions from various laws regulating anticompetitive behavior and unfair competition and practices. The bill provides that certain activities engaged in by producers and stewardship organizations, including the creation, implementation, management, cost assessments, and structuring of a stewardship plan and the establishment, administration, collection, or disbursement of a charge associated with funding the implementation of this bill are categorically exempt from being considered violations of the Cartwright Act (California’s primary antitrust law), the Unfair Practices Act, or the Unfair Competition Law.
Concerns have been raised about the monopolistic possibilities inherent in stewardship programs, and strong government oversight is critical to ensure this regulatory scheme is operated in an evenhanded manner and results in the ambitious goals it sets out to accomplish. These laws are extremely important to ensuring consumers are protected and free and fair competition is fostered. Mitigating these concerns to an extent, the bill specifically provides that the exemptions do not apply to an agreement that does the following:
- fixes a price of or for covered products, except for an agreement related to costs or charges associated with participation in a stewardship plan approved or conditionally approved by the department and otherwise in accordance with the Act;
- fixes the output or production of covered products; or
- restricts the geographic area in which, or customers to whom, covered products will be sold.
This language is also similar to that found in other EPR programs.
3. Statements in support
The California Product Stewardship Council, sponsor of the bill, writes in support:
Textiles have been identified as a top material, and fastest growing category, in residential and commercial waste streams in California. Local governments face costly challenges expanding textile collection and sorting since the materials can absorb, tangle, and combust if mixed into plastic recycling systems. The cost burden for managing unusable textiles has fallen on thrifts, collectors, and secondhand markets, while producers keep making products with no plan for what to do with them when they are no longer wearable. Local governments have attempted to include textiles in curbside programs, but costs and logistics are burdensome. San Francisco’s program resulted in high-contamination rates and consumer confusion. Castro Valley experienced high rates of unusable textiles collected curbside.
SB 707 (Newman) would require producers of textiles and textile articles to design and fund an extended producer responsibility program to collect, repair, and recycle these items. The program would use California’s network of thrift and secondhand businesses to collect unwanted textiles for sorting and recycling, with textiles that can be reused or repaired being sorted for those purposes. The bill would have strong oversight by state regulators and a robust education and outreach requirement to ensure that consumers know how to access the program.
California continues to lead by holding producers accountable for planning and funding an ongoing repair and recycling program for managing unusable textiles and apparel. California has the opportunity to make a global impact by establishing a first-of-its kind EPR program for textiles that builds on the precedent set in the state by other EPR programs. Currently, France is the only one to have a textile EPR program in the entire world, however it needs improvements on internalizing waste costs, global accountability, and transparency. It’s up to California, a top global waste generator, to take impactful actions to address textile waste and sets the stage for as a center for sustainable fashion.
4. Statements in opposition
The California Manufacturers & Technology Association is opposed unless amended writing:
As currently structured, SB 707 is largely unworkable and overly burdensome. It establishes a costly extended producer responsibility (EPR) program for manufacturers and consumers of covered products. We are significantly concerned that SB 707 is poorly defined in terms of the scope of products subject to the EPR, extends potential liability and safety concerns for manufactured products, and ultimately establishes what can only be considered "mini waste disposal sites" across cities and counties in California.
They highlight as areas of concerns where they would like to see changes being:
- The scope of covered products, stating the bill includes items beyond clothing and accessories.
- An exclusion for children's apparel and textile products with potentially detachable components or falling under the Federal Small Parts Ban (16 CFR § 1501.3) and products with restrictions on Lead (16 CFR part 1303) and/or Phthalates (16 CFR part 1307).
- Challenges in establishing collection sites under the bill’s current provisions.
- Increased workload for CalRecycle.
SUPPORT
California Product Stewardship Council (sponsor)
5 Gyres Institute
Accelerating Circularity, Inc.
Ambercycle
Aquafil Carpet Recycling
California Environmental Voters
California Resource Recovery Association
Californians Against Waste
CALPIRG, California Public Interest Research Group
Castro Valley Sanitary District
CBU Productions
Changing Markets Foundation
Circ, Inc.
Cirtex
City of Roseville
City of San Jose
City of Sunnyvale
City of Thousand Oaks
Center for Oceanic Awareness, Research, and Education (COARE)
County of Santa Clara
Environmental Working Group
Fashion Revolution USA
Fibershed
Fort Ord Environmental Justice Network
Friends Committee on Legislation of California
Heal the Bay
Mara Hoffman Inc.
Marmot
Materevolve
National Stewardship Action Council
Northern California Recycling Association
Ouros Industries
Plastic Oceans International
Plastic Pollution Coalition
Product Stewardship Institute
R3 Consulting Group, Inc.
Ravel
Recology
Reformation
Renewcell AB
Repeat Reuse, Inc.
Republic Services Inc.
Resource Recovery Coalition of California
ReThink Waste (South Bayside Waste Management Authority)
Roboro
Salinas Valley Solid Waste Authority
Santa Barbara County Resource Recovery & Waste Management Authority
Santa Clara County Recycling and Waste Reduction Commission
Seventh Generation Advisors
ScullySpark
Sea Hugger
Sierra Club CA
Sortile
St. Catherine University
Stand Up to Trash
Sustainable Works
The Fashion Connection
Upcycle It Now
US Again
Western Placer Waste Management Authority (WPWMA)
Wishtoyo Chumash Foundation
Zero Waste Company
Zero Waste San Diego
Zero Waste Sonoma
OPPOSITION
California Manufacturers & Technology Association
RELATED LEGISLATION
Pending Legislation: None known.
Prior Legislation: SB 1187 (Kamlager, Ch. 616, Stats. 2022) requires CalRecycle to establish a three-year pilot project located in the Los Angeles and Ventura Counties partnering with garment manufacturers to study and report on the feasibility of recycling fabric.
PRIOR VOTES:
Senate Environmental Quality Committee (Ayes 5, Noes 2)
**************
Sen. Environmental Quality Comm. analysis of SB 707 (2023-24 reg. sess.) as amended Mar. 20, 2023 at p. 4. ↑
Ibid. ↑
Id. at p. 2-3. ↑
U.S. Const., art. I, § 8, cl. 3. ↑
See Gibbons v. Ogden (1824) 22 U.S. 1. ↑
E.g., Dean Milk Co. v. Madison (1951) 340 U.S. 349, 354. ↑
South Dakota v. Wayfair, Inc. (2018) 138 S.Ct. 2080, 2091. ↑
SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
Senator Allen, Chair
2023 - 2024 Regular
Bill No: SB 707
Author: | Newman | ||
Version: | 3/20/2023 | Hearing Date: | 3/29/2023 |
Urgency: | No | Fiscal: | Yes |
Consultant: | Brynn Cook | ||
SUBJECT: Responsible Textile Recovery Act of 2023
DIGEST: Establishes the Responsible Textile Recovery Act of 2023, which would create an Extended Producer Responsibility (EPR) program for textiles with oversight from the Department of Resources Recycling and Recovery (CalRecycle).
ANALYSIS:
Existing law:
- The California Integrated Waste Management Act (IWMA) of 1989, administered by the Department of Resources Recycling and Recovery (CalRecycle), generally regulates the disposal, management, and recycling of solid waste. The act establishes extended producer responsibility (EPR) programs for various products, including, among others, carpet, mattresses, and pharmaceutical and sharps waste. (PRC §§ 40000 et. seq.) Establishes under IWMA a state recycling goal that 75% of solid waste generated is to be diverted from landfill disposal through source reduction, recycling, and composting by 2020. (PRC § 41780.01)
- Requires CalRecycle to establish a three-year pilot project located in the Los Angeles and Ventura Counties partnering with garment manufacturers to study and report on the feasibility of recycling fabric. (PRC § 40512)
- Establishes, upon appropriation from the Legislature, a Zero-eWaste equity grant program that can be used for repair and extending the life of products including textiles (PRC § 42999.5).
This bill:
- Establishes the Responsible Textile Recovery Act of 2023, which would create an Extended Producer Responsibility (EPR) program for apparel, textiles, or textile articles.
- Defines “covered product” to include any apparel, textile (e.g. cloth), or textile article (e.g. bed sheets, curtains, etc.) exempting carpets and mattresses that are already in other EPR programs.
- Requires CalRecycle to set regulations to implement this chapter by December 31, 2025, and authorizes CalRecycle to adjust regulations pertaining to collection sites and minimum recycling efficiency rate for covered products collected and recycled by program operators beginning January 1, 2032.
- Requires CalRecycle to establish an advisory body no later than 90 days after the effective date of regulations adopted pursuant to this section
- Establishes a producer responsibility organization (PRO) that would submit to CalRecycle a stewardship plan within 12 months of regulations being developed. CalRecycle will review the Plan and approve, disprove, or conditionally approve the plan.
- Requires the PRO to review the stewardship plan at least every five years thereafter.
- Requires PROs to pay fees to CalRecycle, not to exceed the department’s actual and reasonable regulatory costs to implement and enforce the provisions of the act.
- Requires the stewardship program to submit an annual report to the department, under penalty of perjury, and requires the department to post online a list of producers that are in compliance with the program requirements.
- States that a retailer, importer, or distributor shall not sell, distribute or import covered products into the State unless the producer is on the list of producers in compliance with program requirements.
- Authorizes the department to impose a civil penalty on a producer, PRO, or importer manufacturer, distributor, or retailer that does not meet the requirements of the chapter. The civil penalties can be up to $10,00 per day or up to $50,000 per day if the violation is intentional, knowing, or reckless.
- Establishes a Textile Stewardship Recovery Penalty Account for these penalties for the deposit of penalties, which would be available for expenditure upon appropriation by the Legislature.
Background
- Textiles waste is a growing environmental problem. According to CalRecycle’s 2020 ‘Facility-Based Characterization of Solid Waste in California’ report, textiles, including apparel, textile (cloth), and textile articles (such as linens, curtains, etc.) were the sixth most prevalent material type disposed of by single-family residences in 2018. Overall, Californians disposed of nearly 1.2 million metric tons of textiles in 2018, making up about 3% of California’s total waste stream.
Textile waste has been supercharged by the rise of fast fashion. “Fast fashion” is an approach to the design, creation, and marketing of clothing that emphasizes making fashion trends quickly and cheaply available to consumers. Retailers and producers benefit from frequently updating styles to incentivize shopping. Fast fashion has contributed to a global doubling of clothing production from 2000 to 2014. Fast fashion provides clothes to consumers for lower prices, but sacrifices the quality and longevity of garments in the process: this leads to more waste.
Dealing with all this waste is expensive: in 2021, approximately 1.2 million tons of textiles were disposed of, costing California taxpayers more than $70 million dollars in disposal costs.
This waste comes with a carbon cost as well: textile and garment industries account for between 6-8% of total global carbon emissions, or some 1.7 billion tons in carbon emissions per year.
- Reuse and Recycle: What is currently done with old textiles? According to CalRecycle, 95% of California’s textile waste is reusable or recyclable, meaning that the textiles are in a condition for reuse or still have tags identifying the material used (tags are important to recycling since it is critical to know what the material type of a textile is to select the proper recycling processes for that material).
Both recycling and reuse for used textiles begin when textiles are discarded--either when businesses toss out scrap or surplus material, or when consumers throw out old clothes or textile household items, like sheets, curtains, and pillows. Once these materials have been collected, they are sorted to separate reusable material from material that is only eligible for recycling or landfilling.
According to CalRecycle, only 10-15% of garments donated or sold to second-hand markets are directly resold in the stores where they are deposited. Of the remaining material, 30% is cut down to rags, 20% is converted into recycled fibers for uses such as carpet padding, insulation, and pillow stuffing, 5% is landfilled in-State, and 45% is sent overseas for further processing. Items that are sent overseas may or may not have a long second life: of the 15 million used garments that flow into Ghana every week, an estimated 40% are deemed worthless upon arrival and landfilled. This off-shore landfilling comes at a carbon cost, since shipping is a carbon-intensive process.
Recycling - Recycling textiles is a multistep process. Natural fibers are mechanically processed: for example, cotton textiles are shredded, the fibers are separated, and then re-spun with virgin fibers into yarn to make new textiles. Synthetic fibers, such as polyester, can sometimes be mechanically processed by shredding, cleaning, molding into pellets, and then extruding into new fibers. If mechanical processing is not possible, the textiles can also undergo the more intensive process of chemical processing, where the synthetic material is broken down into its component molecules to remove contaminants and then reformed into fibers.
Blends of materials, either different types of natural, synthetic, or both are typically not eligible for chemical processing, but can be mechanically processed and downcycled: blended fabrics are shredded and pulled to transform them into fibers of shorter length to produce other composite materials such as thermal insulation or carpet for use in the building industry.
The current recovery rate for textiles in the U.S. is approximately 15%, while the remaining 85% of discarded clothing and textiles are sent to landfill or incineration. Just 1 percent of recycled clothes are turned back into new garments—the gold standard for recycling towards a zero-waste economy.
- Introduction to EPR. According to CalRecycle, extended producer responsibility (EPR) is a strategy that places shared responsibility for end-of-life product management on the producers and all entities involved in the product chain, instead of on the general public and local governments. EPR programs rely on industry, formalized in a product stewardship organization, to develop and implement approaches to create a circular economy that makes business sense, with oversight and enforcement provided by the government. This approach provides flexibility for manufacturers, based on their expertise in designing products and the systems that bring these products to market, to design systems to capture those products at the end-of-life to meet statutory goals. Currently, there are five statewide EPR programs: paint, carpet, mattresses, pharmaceutical and sharps waste, and plastic packaging, and single-use plastic items. To date, 33 U.S. states have passed 124 EPR laws covering 15 products, although to date no EPR laws cover textiles. Internationally, France currently has the only EPR law for textiles.
There are several key elements to any EPR program that should be carefully evaluated to develop a working EPR program that avoids loopholes. These elements are part of CalRecycle’s “EPR checklist” and include considerations of (1) the scope of the program: what and who is captured in the covered product and PRO universe; (2) requirements for the stewardship organization; (3) funding for the program; and (4) oversight for the program.
Comments
- Purpose of Bill. According to the author, “the fashion industry is considered a top industrial polluter, accounting for approximately 10% of global carbon emissions. A well-designed and effectively administered statewide textile extended producer responsibility (EPR) program has the potential to develop previously untapped or underutilized upcycled and recycled clothing and fiber markets, as well as to support ongoing efforts to encourage the repair and reuse of clothing and other textiles in California. In so doing, SB 707 will facilitate a transition to a sustainable, market-aligned, circular economy for textiles that will unlock new production and consumption opportunities to the benefit of the environment, all at a relatively low cost to both the State and consumers alike.”
- What are the big-picture goals? This bill outlines clear metrics for collection sites, but does not set any other specific goals for the EPR program. Existing EPR programs have set goals for recycling, source reduction, recycling efficiency rate, or other strategies that are used to drive progress and evaluate the success of EPR programs. By giving license to CalRecycle and then the stewardship organizations to set and prioritize these goals and identify how the program will be funded, the bill minimizes the role of the Legislature in steering textile reduction and recycling policy. While EPRs operate by allowing producers, with their insider-knowledge of industry, to develop solutions, it is the role of policy makers to set clear objectives for industry-led product stewardship organizations to steer towards. Developing more clear goals for the program, a lengthy and iterative process, will allow the Legislature to make clear their policy goals in reducing textile waste.
Moreover, the current language specifies that in 2032, CalRecycle can re-open their regulations to set recycling efficiency rates goals for materials in the program: this language implies that CalRecycle cannot include recycling efficiency rates goals before 2032, and may imply that CalRecycle cannot set targets for other metrics (such as targets for post-consumer recycled content) when reopening the regulations. This could hamper the Department’s ability to steer or update policy, leaving it in the hands of the producers.
Suggested amendment: Clarifying that CalRecycle may consider setting targets for metrics beyond recycling efficiency rates when it reopens its regulations for the program in 2032 will ensure that the Department has the authority to apply the right tools to achieve reductions in textile waste.
- Incorporating advice from old-hats at the game. The bill specifies collection site goals for the stewardship program, including collection sites that will be available to the public. These collection sites can use existing collection infrastructure, such as donation drop-offs for thrift stores. This co-location is important for creating a path for reusable textiles that are exempted from this EPR program but that could be valuable to second-hand markets.
Given that second-hand markets play such an important role in this EPR program they should have a seat at the table when the Stewardship Plan is being developed. The bill appropriately does not consider second-hand markets to be producers (which are required to pay into the program). As such, second-hand markets will not be part of the stewardship organization: to ensure that reuse markets can still participate in the discourse, however, representation from this sector of the industry could be added to the advisory committee established in the bill. The committee may wish to add representatives from second-hand markets to the EPR textile Advisory Committee created in the bill to ensure second-hand markets are able to weigh in on policy that directly affects their business.
- Define Recycling. The bill currently references the definition of “recycling” used in Section 25121.1 of the Health and Safety Code, which defines recycling as “using reusing, or reclaiming a recyclable material.” While this definition is broad and captures all elements of recycling, it doesn’t provide a clear intention of the end goals of this recycling: focusing on helps establish the intent of recycling and can help direct the tools, types, and approaches to recycling that should be used.
The definition of recycling in SB 707 currently includes “reuse”—given that the bill excludes textiles that can be reused, the definition of recycling should be changed to exclude “reuse.” The committee may wish to replace the current definition of recycling in the bill with the definition used in Senate Bill 54, which includes objectives for recycling, to provide important context as to what should quality as “recycling.”
- Timeline matchup. The Textile Stewardship Plan, once it is released in 2026, must be reviewed by the PRO every five years: however, the bill requires that the Plan include a budget for three years. The timeline for budget planning and review should be brought into alignment so as not to strand the program implementation plan without a funding plan.
Suggested amendment. Align the budget and Stewardship Plan review timelines to ensure that the Program is not operating “blind” with respect to how much money it can allocate to different goals in its Stewardship Plan.
- Committee amendments. Staff recommends the committee adopt the bolded amendments contained in comments 2,3,4 &5 above.
DOUBLE REFERRAL:
If this measure is approved by the Senate Environmental Quality Committee, the do pass motion must include the action to re-refer the bill to the Senate Judiciary Committee.
Related/Prior Legislation
SB 1187 (Kamlager, Chapter 616, Statutes of 2022) requires CalRecycle to establish a three-year pilot project located in the Los Angeles and Ventura Counties partnering with garment manufacturers to study and report on the feasibility of recycling fabric.
SB 54 (Allen, Chapter 75, Statutes of 2022) establishes the Plastic Pollution Prevention and Packaging Producer Responsibility Act, which sets minimum content requirements for single-use packaging and food service ware and source reduction requirements for plastic single-use packaging and food service ware through an extended producer responsibility program.
SOURCE:
California Product Stewardship Council
SUPPORT:
5 Gyres Institute
Accelerating Circularity, INC.
Ambercycle
Aquafil Carpet Recycling
California Environmental Voters
California Product Stewardship Council
California Resource Recovery Association
Californians Against Waste
Calpirg, California Public Interest Research Group
Castro Valley Sanitary District
Cbu Productions
Changing Markets Foundation
Circ, INC.
Cirtex
City of Roseville
City of San Jose
Coare
County of Santa Clara
Environmental Working Group
Fashion Revolution USA
Fibershed
Friends Committee on Legislation of California
Heal the Bay
Materevolve
National Stewardship Action Council
Northern California Recycling Association
Plastic Pollution Coalition
Product Stewardship Institute
R3 Consulting Group, INC.
Ravel
Repeat Reuse, INC
Republic Services INC.
Roboro
Salinas Valley Solid Waste Authority
Santa Barbara County Resource Recovery & Waste Management Authority
Santa Clara County Recycling and Waste Reduction Commission
Scullyspark
Sea Hugger
Sierra Club
Sortile
South Bayside Waste Management Authority (SBWMA ) / Rethinkwaste
St. Catherine University
Sustainable Works
Upcycle It Now
Western Placer Waste Management Authority (WPWMA)
Wishtoyo Chumash Foundation
Zero Waste Company
Zero Waste San Diego
Zero Waste Sonoma
OPPOSITION:
None received
-- END --
Discussed in Hearing
Senate Floor
Senate Standing Committee on Environmental Quality
Assembly Floor
Assembly Standing Committee on Natural Resources
Senate Floor
Senate Standing Committee on Judiciary
Senate Standing Committee on Environmental Quality
Bill Author
Bill Co-Author(s):