AB 904: Carpet recycling.
- Session Year: 2025-2026
- House: Assembly
- Latest Version Date: 2026-09-27
Current Status:
Passed
(2026-09-27: Chaptered by Secretary of State - Chapter 508, Statutes of 2026.)
Introduced
In Committee
Awaiting First Chamber Vote
Passed First Chamber
In Committee
Awaiting Second Chamber Vote
Passed Second Chamber
Enacted
(1)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. The act includes a product stewardship for carpet program and a successor carpet producer responsibility program, and requires the product stewardship for carpet program to become inoperative upon the completion of certain conditions related to the implementation of the successor carpet producer responsibility program.
Existing law, the product stewardship for carpet program, requires a manufacturer of carpets sold in this state, individually or through a carpet stewardship organization, to submit a carpet stewardship plan to the department, which is required to include specified elements, including achieving specified carpet recycling rates and a funding mechanism that provides sufficient funding to carry out the plan. Existing law authorizes the department to administratively impose a civil penalty of $10,000 per day on any person in violation of the program or $25,000 per day if the violation is intentional, knowing, or negligent, as specified.
This bill would instead authorize the department to impose administrative, rather than civil, penalties in those amounts, and to impose an administrative penalty of $25,000 per day if the violation is intentional or knowing.
Existing law requires a carpet stewardship organization to include nonvoting board members with representation from, among others, a retailer that sells carpet.
This bill would instead require the stewardship organization to create a governing board for the stewardship program, with 14 voting members, as specified.
Existing law requires a manufacturer of carpets sold in this state, individually or through a carpet stewardship organization, to submit to the department an annual report describing its activities to achieve the purposes of the program, as provided. Existing law authorizes a carpet stewardship organization to award grants and subsidies to incentivize the recycling of carpet materials that have the highest recyclability.
This bill would require a carpet stewardship organization to include in its annual report specified information related to the grants and subsidies provided pursuant to the program, as specified.
(2)Existing law, the successor carpet producer responsibility program, requires producers of covered products to form and join a single producer responsibility organization (PRO) for the collection and recycling of a covered product. Existing law defines PRO to include, among others, the carpet stewardship organization, as defined by the product stewardship for carpet program. Existing law defines a covered product as carpet, as defined, and requires the PRO to develop a producer responsibility plan for the collection, transportation, recycling, and the safe and proper management of covered products in the state.
This bill would remove the carpet stewardship organization from the definition of PRO. The bill would redefine carpet to have the same definition used by the product stewardship for carpet program.
Existing law requires an assessment to be added to the price of all covered products sold in the state to fund the program. Existing law also requires the costs of the program to be borne by producers of covered products, as provided.
This bill would eliminate the requirement for the costs of the program to be borne by producers of covered products.
Existing law requires, no later than January 1, 2029, a person who removes a covered product as part of the installation of a covered product to transport, or contract to transport, all of the removed covered product to an approved collection site, as provided. Under existing law, an approved collection site is a solid waste facility that has agreed to be a collection site for the PRO.
This bill would exempt a covered product from this transport requirement if certain conditions are met, including that it is returned to the producer. The bill would recast approved collection sites and would expand them to include certain carpet recycling centers, municipal facilities, and retailers.
Existing law requires the governing board of a PRO to include 4 nonvoting members, including, but not limited to, a nonvoting member representing a nonprofit organization established to promote a circular economy and to address environmental issues. Existing law requires the PRO to submit an annual report to the department on or before July 1 of each year, as provided. Existing law requires a producer to publish on its internet website, for each of its covered products, an environmental product declaration that identifies a covered products components, as provided.
This bill would instead require the PRO to create a governing board for the program, with 14 voting members, as specified. The bill would require the annual report to be submitted on or before September 1 of each year, instead of July 1 of each year. The bill would instead require a producer to publish on its internet website, for each of its covered products, the components that constitute more than 1% of the products weight and any component that is a hazardous chemical, as specified.
Existing law requires the PRO to submit to the department an annual report, as specified, and to make the report publicly available on the PROs internet website. Existing law requires the PRO to provide annual grants to apprenticeship programs for training carpet installers in proper carpet recycling techniques, as provided.
This bill would require the PRO to include in its annual report specified information related to the grants and incentive payments provided pursuant to the program, as specified.
Existing law requires a producer responsibility plan, among other things, to explain how producers will use standardized stamping or some other means to provide a visual mark on the back of a covered product that is a synthetic material to allow expeditious sorting of the carpet, as provided.
This bill would instead require a producer responsibility plan to explain how producers will use standardized stamping or some other means to provide a visual mark on the back of a covered product that provides the name of the producer, the date of manufacture, and a listing of the types of face fibers and backing materials contained in the product.
Existing law requires a producer responsibility plan to describe how the PRO will provide free dropoff and convenient collection system for covered products.
This bill would require a producer responsibility plan to instead provide the ability for people to drop off postconsumer carpet, free of charge, at collection sites that are open according to a prescribed schedule.
Existing law requires a producer responsibility plan to provide annual grants to apprenticeship programs, as provided.
This bill would require a producer responsibility plan to additionally allocate $2,000,000 annually to apprenticeship programs operated by labor organizations, as provided.
Existing law requires the department to review a submitted producer responsibility plan and to approve or disapprove the producer responsibility plan, as provided. Existing law requires, if the PRO subsequently submits a revised producer responsibility plan and the department disapproves the revised plan, the PRO to revise and resubmit the revised plan consistent with the departments direction.
This bill would authorize, rather than require, the PRO to resubmit one additional revised producer responsibility plan if the initial revised plan is disapproved and would delete the requirement for the revised plan to be consistent with the departments direction.
Existing law requires a producer responsibility plan in effect as of January 1, 2025, to continue in effect, as provided, until it expires or is revoked, as provided.
This bill would repeal this provision.
Existing law requires a producer responsibility plan to prioritize expenditure of assessments collected pursuant to the product stewardship for carpet program on activities to carry out the producer responsibility plan, including grants for apprenticeship programs.
This bill would instead require a producer responsibility plan to require the expenditure of assessments collected pursuant to the carpet producer responsibility program to be used for activities that support the implementation of the producer responsibility plan, including grants for apprenticeship programs.
Existing law authorizes the department to establish, review, and adjust performance standards, which may include, but are not limited to, collection, reduction in disposal, and maximizing recycling. Existing law requires the producer responsibility plan to meet any performance standards published by the department. Existing law requires the department to use sales data to establish the performance standard for recycling carpet, as specified.
This bill would eliminate the requirement for the department to use sales data to establish the performance standard for recycling carpet.
Existing law authorizes the department to determine the PRO ineligible to act as the PRO if the PRO violates the provisions of the carpet producer responsibility program 3 or more times.
This bill would require the above-described violations to be knowing or intentional violations.
Existing law requires the department to adopt regulations to implement the program with an effective date no earlier than December 31, 2026.
This bill would instead require the department to adopt the regulations no later than January 1, 2029.
(1)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. The act includes a product stewardship for carpet program and a successor carpet producer responsibility program, and requires the product stewardship for carpet program to become inoperative upon the completion of certain conditions related to the implementation of the successor carpet producer responsibility program.
Existing law, the product stewardship for carpet program, requires a manufacturer of carpets sold in this state, individually or through a carpet stewardship organization, to submit a carpet stewardship plan to the department, which is required to include specified elements, including achieving specified carpet recycling rates and a funding mechanism that provides sufficient funding to carry out the plan. Existing law authorizes the department to administratively impose a civil penalty of $10,000 per day on any person in violation of the program or $25,000 per day if the violation is intentional, knowing, or negligent, as specified.
This bill would instead authorize the department to impose administrative, rather than civil, penalties in those amounts, and to impose an administrative penalty of $25,000 per day if the violation is intentional or knowing.
Existing law requires a carpet stewardship organization to include nonvoting board members with representation from, among others, a retailer that sells carpet.
This bill would instead require the stewardship organization to create a governing board for the stewardship program, with 14 voting members, as specified.
Existing law requires a manufacturer of carpets sold in this state, individually or through a carpet stewardship organization, to submit to the department an annual report describing its activities to achieve the purposes of the program, as provided. Existing law authorizes a carpet stewardship organization to award grants and subsidies to incentivize the recycling of carpet materials that have the highest recyclability.
This bill would require a carpet stewardship organization to include in its annual report specified information related to the grants and subsidies provided pursuant to the program, as specified.
(2)Existing law, the successor carpet producer responsibility program, requires producers of covered products to form and join a single producer responsibility organization (PRO) for the collection and recycling of a covered product. Existing law defines PRO to include, among others, the carpet stewardship organization, as defined by the product stewardship for carpet program. Existing law defines a covered product as carpet, as defined, and requires the PRO to develop a producer responsibility plan for the collection, transportation, recycling, and the safe and proper management of covered products in the state.
This bill would remove the carpet stewardship organization from the definition of PRO. The bill would redefine carpet to have the same definition used by the product stewardship for carpet program.
Existing law requires an assessment to be added to the price of all covered products sold in the state to fund the program. Existing law also requires the costs of the program to be borne by producers of covered products, as provided.
This bill would eliminate the requirement for the costs of the program to be borne by producers of covered products.
Existing law requires, no later than January 1, 2029, a person who removes a covered product as part of the installation of a covered product to transport, or contract to transport, all of the removed covered product to an approved collection site, as provided. Under existing law, an approved collection site is a solid waste facility that has agreed to be a collection site for the PRO.
This bill would exempt a covered product from this transport requirement if certain conditions are met, including that it is returned to the producer. The bill would recast approved collection sites and would expand them to include certain carpet recycling centers, municipal facilities, and retailers.
Existing law requires the governing board of a PRO to include 4 nonvoting members, including, but not limited to, a nonvoting member representing a nonprofit organization established to promote a circular economy and to address environmental issues. Existing law requires the PRO to submit an annual report to the department on or before July 1 of each year, as provided. Existing law requires a producer to publish on its internet website, for each of its covered products, an environmental product declaration that identifies a covered products components, as provided.
This bill would instead require the PRO to create a governing board for the program, with 14 voting members, as specified. The bill would require the annual report to be submitted on or before September 1 of each year, instead of July 1 of each year. The bill would instead require a producer to publish on its internet website, for each of its covered products, the components that constitute more than 1% of the products weight and any component that is a hazardous chemical, as specified.
Existing law requires the PRO to submit to the department an annual report, as specified, and to make the report publicly available on the PROs internet website. Existing law requires the PRO to provide annual grants to apprenticeship programs for training carpet installers in proper carpet recycling techniques, as provided.
This bill would require the PRO to include in its annual report specified information related to the grants and incentive payments provided pursuant to the program, as specified.
Existing law requires a producer responsibility plan, among other things, to explain how producers will use standardized stamping or some other means to provide a visual mark on the back of a covered product that is a synthetic material to allow expeditious sorting of the carpet, as provided.
This bill would instead require a producer responsibility plan to explain how producers will use standardized stamping or some other means to provide a visual mark on the back of a covered product that provides the name of the producer, the date of manufacture, and a listing of the types of face fibers and backing materials contained in the product.
Existing law requires a producer responsibility plan to describe how the PRO will provide free dropoff and convenient collection system for covered products.
This bill would require a producer responsibility plan to instead provide the ability for people to drop off postconsumer carpet, free of charge, at collection sites that are open according to a prescribed schedule.
Existing law requires a producer responsibility plan to provide annual grants to apprenticeship programs, as provided.
This bill would require a producer responsibility plan to additionally allocate $2,000,000 annually to apprenticeship programs operated by labor organizations, as provided.
Existing law requires the department to review a submitted producer responsibility plan and to approve or disapprove the producer responsibility plan, as provided. Existing law requires, if the PRO subsequently submits a revised producer responsibility plan and the department disapproves the revised plan, the PRO to revise and resubmit the revised plan consistent with the departments direction.
This bill would authorize, rather than require, the PRO to resubmit one additional revised producer responsibility plan if the initial revised plan is disapproved and would delete the requirement for the revised plan to be consistent with the departments direction.
Existing law requires a producer responsibility plan in effect as of January 1, 2025, to continue in effect, as provided, until it expires or is revoked, as provided.
This bill would repeal this provision.
Existing law requires a producer responsibility plan to prioritize expenditure of assessments collected pursuant to the product stewardship for carpet program on activities to carry out the producer responsibility plan, including grants for apprenticeship programs.
This bill would instead require a producer responsibility plan to require the expenditure of assessments collected pursuant to the carpet producer responsibility program to be used for activities that support the implementation of the producer responsibility plan, including grants for apprenticeship programs.
Existing law authorizes the department to establish, review, and adjust performance standards, which may include, but are not limited to, collection, reduction in disposal, and maximizing recycling. Existing law requires the producer responsibility plan to meet any performance standards published by the department. Existing law requires the department to use sales data to establish the performance standard for recycling carpet, as specified.
This bill would eliminate the requirement for the department to use sales data to establish the performance standard for recycling carpet.
Existing law authorizes the department to determine the PRO ineligible to act as the PRO if the PRO violates the provisions of the carpet producer responsibility program 3 or more times.
This bill would require the above-described violations to be knowing or intentional violations.
Existing law requires the department to adopt regulations to implement the program with an effective date no earlier than December 31, 2026.
This bill would instead require the department to adopt the regulations no later than January 1, 2029.
(1)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. The act includes a product stewardship for carpet program and a successor carpet producer responsibility program, and requires the product stewardship for carpet program to become inoperative upon the completion of certain conditions related to the implementation of the successor carpet producer responsibility program.
Existing law, the product stewardship for carpet program, requires a manufacturer of carpets sold in this state, individually or through a carpet stewardship organization, to submit a carpet stewardship plan to the department, which is required to include specified elements, including achieving specified carpet recycling rates and a funding mechanism that provides sufficient funding to carry out the plan. Existing law authorizes the department to administratively impose a civil penalty of $10,000 per day on any person in violation of the program or $25,000 per day if the violation is intentional, knowing, or negligent, as specified.
This bill would instead authorize the department to impose administrative, rather than civil, penalties in those amounts, and to impose an administrative penalty of $25,000 per day if the violation is intentional or knowing.
Existing law requires a carpet stewardship organization to include nonvoting board members with representation from, among others, a retailer that sells carpet.
This bill would instead require the stewardship organization to create a governing board for the stewardship program, with 14 voting members, as specified.
Existing law requires a manufacturer of carpets sold in this state, individually or through a carpet stewardship organization, to submit to the department an annual report describing its activities to achieve the purposes of the program, as provided. Existing law authorizes a carpet stewardship organization to award grants and subsidies to incentivize the recycling of carpet materials that have the highest recyclability.
This bill would require a carpet stewardship organization to include in its annual report specified information related to the grants and subsidies provided pursuant to the program, as specified.
(2)Existing law, the successor carpet producer responsibility program, requires producers of covered products to form and join a single producer responsibility organization (PRO) for the collection and recycling of a covered product. Existing law defines PRO to include, among others, the carpet stewardship organization, as defined by the product stewardship for carpet program. Existing law defines a covered product as carpet, as defined, and requires the PRO to develop a producer responsibility plan for the collection, transportation, recycling, and the safe and proper management of covered products in the state.
This bill would remove the carpet stewardship organization from the definition of PRO. The bill would redefine carpet to have the same definition used by the product stewardship for carpet program.
Existing law requires an assessment to be added to the price of all covered products sold in the state to fund the program. Existing law also requires the costs of the program to be borne by producers of covered products, as provided.
This bill would eliminate the requirement for the costs of the program to be borne by producers of covered products.
Existing law requires, no later than January 1, 2029, a person who removes a covered product as part of the installation of a covered product to transport, or contract to transport, all of the removed covered product to an approved collection site, as provided. Under existing law, an approved collection site is a solid waste facility that has agreed to be a collection site for the PRO.
This bill would exempt a covered product from this transport requirement if certain conditions are met, including that it is returned to the producer. The bill would recast approved collection sites and would expand them to include certain carpet recycling centers, municipal facilities, and retailers.
Existing law requires the governing board of a PRO to include 4 nonvoting members, including, but not limited to, a nonvoting member representing a nonprofit organization established to promote a circular economy and to address environmental issues. Existing law requires the PRO to submit an annual report to the department on or before July 1 of each year, as provided. Existing law requires a producer to publish on its internet website, for each of its covered products, an environmental product declaration that identifies a covered products components, as provided.
This bill would instead require the PRO to create a governing board for the program, with 14 voting members, as specified. The bill would require the annual report to be submitted on or before September 1 of each year, instead of July 1 of each year. The bill would instead require a producer to publish on its internet website, for each of its covered products, the components that constitute more than 1% of the products weight and any component that is a hazardous chemical, as specified.
Existing law requires the PRO to submit to the department an annual report, as specified, and to make the report publicly available on the PROs internet website. Existing law requires the PRO to provide annual grants to apprenticeship programs for training carpet installers in proper carpet recycling techniques, as provided.
This bill would require the PRO to include in its annual report specified information related to the grants and incentive payments provided pursuant to the program, as specified.
Existing law requires a producer responsibility plan, among other things, to explain how producers will use standardized stamping or some other means to provide a visual mark on the back of a covered product that is a synthetic material to allow expeditious sorting of the carpet, as provided.
This bill would instead require a producer responsibility plan to explain how producers will use standardized stamping or some other means to provide a visual mark on the back of a covered product that provides the name of the producer, the date of manufacture, and a listing of the types of face fibers and backing materials contained in the product.
Existing law requires a producer responsibility plan to describe how the PRO will provide free dropoff and convenient collection system for covered products.
This bill would require a producer responsibility plan to instead provide the ability for people to drop off postconsumer carpet, free of charge, at collection sites that are open according to a prescribed schedule.
Existing law requires a producer responsibility plan to provide annual grants to apprenticeship programs, as provided.
This bill would require a producer responsibility plan to additionally allocate $1,000,000 $2,000,000 annually to apprenticeship programs operated by labor organizations, as provided.
Existing law requires the department to review a submitted producer responsibility plan and to approve or disapprove the producer responsibility plan, as provided. Existing law requires, if the PRO subsequently submits a revised producer responsibility plan and the department disapproves the revised plan, the PRO to revise and resubmit the revised plan consistent with the departments direction.
This bill would authorize, rather than require, the PRO to resubmit one additional revised producer responsibility plan if the initial revised plan is disapproved and would delete the requirement for the revised plan to be consistent with the departments direction.
Existing law requires a producer responsibility plan in effect as of January 1, 2025, to continue in effect, as provided, until it expires or is revoked, as provided.
This bill would repeal this provision.
Existing law requires a producer responsibility plan to prioritize expenditure of assessments collected pursuant to the product stewardship for carpet program on activities to carry out the producer responsibility plan, including grants for apprenticeship programs.
This bill would instead require a producer responsibility plan to require the expenditure of assessments collected pursuant to the carpet producer responsibility program to be used for activities that support the implementation of the producer responsibility plan, including grants for apprenticeship programs.
Existing law authorizes the department to establish, review, and adjust performance standards, which may include, but are not limited to, collection, reduction in disposal, and maximizing recycling. Existing law requires the producer responsibility plan to meet any performance standards published by the department. Existing law requires the department to use sales data to establish the performance standard for recycling carpet, as specified.
This bill would eliminate the requirement for the department to use sales data to establish the performance standard for recycling carpet.
Existing law authorizes the department to determine the PRO ineligible to act as the PRO if the PRO violates the provisions of the carpet producer responsibility program 3 or more times.
This bill would additionally authorize the department to determine the PRO ineligible to act as the PRO if the department disapproves the PROs annual report 3 or more times. The bill would establish a rebuttable presumption that any violation of a statute or regulation, or any missed goal, of the program during a reporting period following a reporting period in which the same statute, regulation, or goal was the basis for a violation, is knowing or intentional. require the above-described violations to be knowing or intentional violations.
Existing law requires the department to adopt regulations to implement the program with an effective date no earlier than December 31, 2026.
This bill would instead require the department to adopt the regulations no later than January 1, 2029.
(1)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. The act includes a product stewardship for carpet program and a successor carpet producer responsibility program, and requires the product stewardship for carpet program to become inoperative upon the completion of certain conditions related to the implementation of the successor carpet producer responsibility program.
Existing law, the product stewardship for carpet program, requires a manufacturer of carpets sold in this state, individually or through a carpet stewardship organization, to submit a carpet stewardship plan to the department, which is required to include specified elements, including achieving specified carpet recycling rates and a funding mechanism that provides sufficient funding to carry out the plan. Existing law authorizes the department to administratively impose a civil penalty of $10,000 per day on any person in violation of the program or $25,000 per day if the violation is intentional, knowing, or negligent, as specified.
This bill would instead authorize the department to impose administrative, rather than civil, penalties in those amounts, and to impose an administrative penalty of $25,000 per day if the violation is intentional or knowing.
Existing law requires a carpet stewardship organization to include nonvoting board members with representation from, among others, a retailer that sells carpet.
This bill would instead require the stewardship organization to create a governing board for the stewardship program, with 14 voting members, as specified.
Existing law requires a manufacturer of carpets sold in this state, individually or through a carpet stewardship organization, to submit to the department an annual report describing its activities to achieve the purposes of the program, as provided. Existing law authorizes a carpet stewardship organization to award grants and subsidies to incentivize the recycling of carpet materials that have the highest recyclability.
This bill would require a carpet stewardship organization to include in its annual report specified information related to the grants and subsidies provided pursuant to the program, as specified.
(2)Existing law, the successor carpet producer responsibility program, requires producers of covered products to form and join a single producer responsibility organization (PRO) for the collection and recycling of a covered product. Existing law defines PRO to include, among others, the carpet stewardship organization, as defined by the product stewardship for carpet program. Existing law defines a covered product as carpet, as defined, and requires the PRO to develop a producer responsibility plan for the collection, transportation, recycling, and the safe and proper management of covered products in the state.
This bill would remove the carpet stewardship organization from the definition of PRO. The bill would redefine carpet to have the same definition used by the product stewardship for carpet program.
Existing law requires an assessment to be added to the price of all covered products sold in the state to fund the program. Existing law also requires the costs of the program to be borne by producers of covered products, as provided.
This bill would eliminate the requirement for the costs of the program to be borne by producers of covered products.
Existing law requires, no later than January 1, 2029, a person who removes a covered product as part of the installation of a covered product to transport, or contract to transport, all of the removed covered product to an approved collection site, as provided. Under existing law, an approved collection site is a solid waste facility that has agreed to be a collection site for the PRO.
This bill would exempt a covered product from this transport requirement if certain conditions are met, including that it is returned to the producer. The bill would recast approved collection sites and would expand them to include certain carpet recycling centers, municipal facilities, and retailers.
Existing law requires the governing board of a PRO to include 4 nonvoting members, including, but not limited to, a nonvoting member representing a nonprofit organization established to promote a circular economy and to address environmental issues. Existing law requires the PRO to submit an annual report to the department on or before July 1 of each year, as provided. Existing law requires a producer to publish on its internet website, for each of its covered products, an environmental product declaration that identifies a covered products components, as provided.
This bill would instead require the PRO to create a governing board for the program, with 14 voting members, as specified. The bill would require the annual report to be submitted on or before September 1 of each year, instead of July 1 of each year. The bill would instead require a producer to publish on its internet website, for each of its covered products, the components that constitute more than 1% of the products weight and any component that is a hazardous chemical, as specified.
Existing law requires the PRO to submit to the department an annual report, as specified, and to make the report publicly available on the PROs internet website. Existing law requires the PRO to provide annual grants to apprenticeship programs for training carpet installers in proper carpet recycling techniques, as provided.
This bill would require the PRO to include in its annual report specified information related to the grants and incentive payments provided pursuant to the program, as specified.
Existing law requires a producer responsibility plan, among other things, to explain how producers will use standardized stamping or some other means to provide a visual mark on the back of a covered product that is a synthetic material to allow expeditious sorting of the carpet, as provided.
This bill would instead require a producer responsibility plan to explain how producers will use standardized stamping or some other means to provide a visual mark on the back of a covered product that provides the name of the producer, the date of manufacture, and a listing of the types of face fibers and backing materials contained in the product.
Existing law requires a producer responsibility plan to describe how the PRO will provide free dropoff and convenient collection system for covered products.
TheThis bill would require a producer responsibility plan to instead provide the ability for people to drop off postconsumer carpet, free of charge, at certain facilities and with certain availabilities. collection sites that are open according to a prescribed schedule.
Existing law requires a producer responsibility plan to provide annual grants to apprenticeship programs, as provided.
This bill would require a producer responsibility plan to additionally allocate $1,000,000 annually to apprenticeship programs operated by labor organizations, as provided.
Existing law requires the department to review a submitted producer responsibility plan and to approve or disapprove the producer responsibility plan, as provided. Existing law requires, if the PRO subsequently submits a revised producer responsibility plan and the department disapproves the revised plan, the PRO to revise and resubmit the revised plan consistent with the departments direction.
This bill would authorize, rather than require, the PRO to resubmit one additional revised producer responsibility plan if the initial revised plan is disapproved and would delete the requirement for the revised plan to be consistent with the departments direction.
Existing law requires a producer responsibility plan in effect as of January 1, 2025, to continue in effect, as provided, until it expires or is revoked, as provided.
This bill would repeal this provision.
Existing law requires a producer responsibility plan to prioritize expenditure of assessments collected pursuant to the product stewardship for carpet program on activities to carry out the producer responsibility plan, including grants for apprenticeship programs.
This bill would instead require a producer responsibility plan to prioritize require the expenditure of assessments collected pursuant to the carpet producer responsibility program on to be used for activities to carry out that support the implementation of the producer responsibility plan, including grants for apprenticeship programs.
Existing law authorizes the department to establish, review, and adjust performance standards, which may include, but are not limited to, collection, reduction in disposal, and maximizing recycling. Existing law requires the producer responsibility plan to meet any performance standards published by the department. Existing law requires the department to use sales data to establish the performance standard for recycling carpet, as specified.
This bill would eliminate the requirement for the department to use sales data to establish the performance standard for recycling carpet.
Existing law authorizes the department to determine the PRO ineligible to act as the PRO if the PRO violates the provisions of the carpet producer responsibility program 3 or more times.
This bill would require the violations to be knowing or intentional violations. additionally authorize the department to determine the PRO ineligible to act as the PRO if the department disapproves the PROs annual report 3 or more times. The bill would establish a rebuttable presumption that any violation of a statute or regulation, or any missed goal, of the program during a reporting period following a reporting period in which the same statute, regulation, or goal was the basis for a violation, is knowing or intentional.
Existing law requires the department to adopt regulations to implement the program with an effective date no earlier than December 31, 2026.
This bill would instead require the department to adopt the regulations no later than January 1, 2028. 2029.
(1)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. The act includes a product stewardship for carpet program and a successor carpet producer responsibility program, and requires the product stewardship for carpet program to become inoperative upon the completion of certain conditions related to the implementation of the successor carpet producer responsibility program.
Existing law, the product stewardship for carpet program, requires a manufacturer of carpets sold in this state, individually or through a carpet stewardship organization, to submit a carpet stewardship plan to the department, which is required to include specified elements, including achieving specified carpet recycling rates and a funding mechanism that provides sufficient funding to carry out the plan. Existing law authorizes the department to administratively impose a civil penalty of $10,000 per day on any person in violation of the program or $25,000 per day if the violation is intentional, knowing, or negligent, as specified.
This bill would instead authorize the department to impose administrative, rather than civil, penalties in those amounts, and to impose an administrative penalty of $25,000 per day if the violation is intentional or knowing.
Existing law requires a carpet stewardship organization to include nonvoting board members with representation from, among others, a retailer that sells carpet.
This bill would instead require the stewardship organization to create a governing board for the stewardship program, with 13 14 voting members, as specified.
Existing law requires a manufacturer of carpets sold in this state, individually or through a carpet stewardship organization, to submit to the department an annual report describing its activities to achieve the purposes of the program, as provided. Existing law authorizes a carpet stewardship organization to award grants and subsidies to incentivize the recycling of carpet materials that have the highest recyclability.
This bill would require a carpet stewardship organization to include in its annual report specified information related to the grants and subsidies provided pursuant to the program, as specified.
(2)Existing law, the successor carpet producer responsibility program, requires producers of covered products to form and join a single producer responsibility organization (PRO) for the collection and recycling of a covered product. Existing law defines PRO to include, among others, the carpet stewardship organization, as defined by the product stewardship for carpet program. Existing law defines a covered product as carpet, as defined, and requires the PRO to develop a producer responsibility plan for the collection, transportation, recycling, and the safe and proper management of covered products in the state.
This bill would remove the carpet stewardship organization from the definition of PRO. The bill would redefine carpet to have the same definition used by the product stewardship for carpet program.
Existing law requires an assessment to be added to the price of all covered products sold in the state to fund the program. Existing law also requires the costs of the program to be borne by producers of covered products, as provided.
This bill would eliminate the requirement for the costs of the program to be borne by producers of covered products.
Existing law requires, no later than January 1, 2029, a person who removes a covered product as part of the installation of a covered product to transport, or contract to transport, all of the removed covered product to an approved collection site, as provided. Under existing law, an approved collection site is a solid waste facility that has agreed to be a collection site for the PRO.
This bill would exempt a covered product from this transport requirement if certain conditions are met, including that it is returned to the producer. The bill would recast approved collection sites and would expand them to include certain carpet recycling centers, municipal facilities, and retailers.
Existing law requires the governing board of a PRO to include 4 nonvoting members, including, but not limited to, a nonvoting member representing a nonprofit organization established to promote a circular economy and to address environmental issues. Existing law requires the PRO to submit an annual report to the department on or before July 1 of each year, as provided. Existing law requires a producer to publish on its internet website, for each of its covered products, an environmental product declaration that identifies a covered products components, as provided.
This bill would instead require the PRO to create a governing board for the program, with 13 14 voting members, as specified. The bill would require the annual report to be submitted on or before September 1 of each year, instead of July 1 of each year. The bill would instead require a producer to publish on its internet website, for each of its covered products, the components that constitute more than 1% of the products weight and any component that is a hazardous chemical, as specified.
Existing law requires the PRO to submit to the department an annual report, as specified, and to make the report publicly available on the PROs internet website. Existing law requires the PRO to provide annual grants to apprenticeship programs for training carpet installers in proper carpet recycling techniques, as provided.
This bill would require the PRO to include in its annual report specified information related to the grants and incentive payments provided pursuant to the program, as specified.
Existing law requires a producer responsibility plan, among other things, to explain how producers will use standardized stamping or some other means to provide a visual mark on the back of a covered product that is a synthetic material to allow expeditious sorting of the carpet, as provided.
This bill would instead require a producer responsibility plan to explain how producers will use standardized stamping or some other means to provide a visual mark on the back of a covered product that provides the name of the producer, the date of manufacture, and a listing of the types of face fibers and backing materials contained in the product.
Existing law requires a producer responsibility plan to describe how the PRO will provide free dropoff and convenient collection system for covered products.
The bill would require a producer responsibility plan to instead provide the ability for people to drop off postconsumer carpet, free of charge, at certain facilities and with certain availabilities.
Existing law requires a producer responsibility plan to provide annual grants to apprenticeship programs, as provided.
This bill would require a producer responsibility plan to additionally allocate $1,000,000 annually apprenticeship programs operated by labor organizations, as provided.
Existing law requires a producer responsibility plan in effect as of January 1, 2025, to continue in effect, as provided, until it expires or is revoked, as provided.
This bill would repeal this provision.
Existing law requires a producer responsibility plan to prioritize expenditure of assessments collected pursuant to the product stewardship for carpet program on activities to carry out the producer responsibility plan, including grants for apprenticeship programs.
This bill would instead require a producer responsibility plan to prioritize expenditure of assessments collected pursuant to the carpet producer responsibility program on activities to carry out the producer responsibility plan, including grants for apprenticeship programs.
Existing law authorizes the department to establish, review, and adjust performance standards, which may include, but are not limited to, collection, reduction in disposal, and maximizing recycling. Existing law requires the producer responsibility plan to meet any performance standards published by the department. Existing law requires the department to use sales data to establish the performance standard for recycling carpet, as specified.
This bill would eliminate the requirement for the department to use sales data to establish the performance standard for recycling carpet.
Existing law authorizes the department to determine the PRO ineligible to act as the PRO if the PRO violates the provisions of the carpet producer responsibility program 3 or more times.
This bill would require the violations to be knowing or intentional violations.
Existing law requires the department to adopt regulations to implement the program with an effective date no earlier than December 31, 2026.
This bill would instead require the department to adopt the regulations no later than January 1, 2028.
(1)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. The act includes a product stewardship for carpet program and a successor carpet producer responsibility program, and requires the product stewardship for carpet program to become inoperative upon the completion of certain conditions related to the implementation of the successor carpet producer responsibility program.
Existing law, the product stewardship for carpet program, requires a manufacturer of carpets sold in this state, individually or through a carpet stewardship organization, to submit a carpet stewardship plan to the department, which is required to include specified elements, including achieving specified carpet recycling rates and a funding mechanism that provides sufficient funding to carry out the plan. Existing law authorizes the department to administratively impose a civil penalty of $10,000 per day on any person in violation of the program or $25,000 per day if the violation is intentional, knowing, or negligent, as specified.
This bill would instead authorize the department to impose administrative, rather than civil, penalties in those amounts, and to impose an administrative penalty of $25,000 per day if the violation is intentional or knowing.
Existing law requires a carpet stewardship organization to include nonvoting board members with representation from, among others, a retailer that sells carpet.
This bill would instead require the stewardship organization to create a governing board for the stewardship program, with 13 voting members, as specified.
Existing law requires a manufacturer of carpets sold in this state, individually or through a carpet stewardship organization, to submit to the department an annual report describing its activities to achieve the purposes of the program, as provided. Existing law authorizes a carpet stewardship organization to award grants and subsidies to incentivize the recycling of carpet materials that have the highest recyclability.
This bill would require a carpet stewardship organization to include in its annual report specified information related to the grants and subsidies provided pursuant to the program, as specified.
(2)Existing law, the successor carpet producer responsibility program, requires producers of covered products to form and join a single producer responsibility organization (PRO) for the collection and recycling of a covered product. Existing law defines PRO to include, among others, the carpet stewardship organization, as defined by the product stewardship for carpet program. Existing law defines a covered product as carpet, as defined, and requires the PRO to develop a producer responsibility plan for the collection, transportation, recycling, and the safe and proper management of covered products in the state.
This bill would remove the carpet stewardship organization from the definition of PRO. The bill would redefine carpet to have the same definition used by the product stewardship for carpet program.
Existing law requires an assessment to be added to the price of all covered products sold in the state to fund the program. Existing law also requires the costs of the program to be borne by producers of covered products, as provided.
This bill would eliminate the requirement for the costs of the program to be borne by producers of covered products.
Existing law requires, no later than January 1, 2029, a person who removes a covered product as part of the installation of a covered product to transport, or contract to transport, all of the removed covered product to an approved collection site, as provided. Under existing law, an approved collection site is a solid waste facility that has agreed to be a collection site for the PRO.
This bill would exempt a covered product from this transport requirement if certain conditions are met, including that it is returned to the producer. The bill would recast approved collection sites and would expand them to include certain carpet recycling centers, municipal facilities, and retailers.
Existing law requires the governing board of a PRO to include 4 nonvoting members, including, but not limited to, a nonvoting member representing a nonprofit organization established to promote a circular economy and to address environmental issues. Existing law requires the PRO to submit an annual report to the department on or before July 1 of each year, as provided. Existing law requires a producer to publish on its internet website, for each of its covered products, an environmental product declaration that identifies a covered products components, as provided.
This bill would instead require the PRO to create a governing board for the program, with 13 voting members, as specified. The bill would require the annual report to be submitted on or before September 1 of each year, instead of July 1 of each year. The bill would instead require a producer to publish on its internet website, for each of its covered products, the components that constitute more than 1% of the products weight and any component that is a hazardous chemical, as specified.
Existing law requires the PRO to submit to the department an annual report, as specified, and to make the report publicly available on the PROs internet website. Existing law requires the PRO to provide annual grants to apprenticeship programs for training carpet installers in proper carpet recycling techniques, as provided.
This bill would require the PRO to include in its annual report specified information related to the grants and incentive payments provided pursuant to the program, as specified.
Existing law requires a producer responsibility plan, among other things, to explain how producers will use standardized stamping or some other means to provide a visual mark on the back of a covered product that is a synthetic material to allow expeditious sorting of the carpet, as provided.
This bill would instead require a producer responsibility plan to explain how producers will use standardized stamping or some other means to provide a visual mark on the back of a covered product that provides the name of the producer, the date of manufacture, and a listing of the types of face fibers and backing materials contained in the product.
Existing law requires a producer responsibility plan to describe how the PRO will provide free dropoff and convenient collection system for covered products.
The bill would require a producer responsibility plan to instead provide the ability for people to drop off postconsumer carpet, free of charge, at certain facilities and with certain availabilities.
Existing law requires a producer responsibility plan to provide annual grants to apprenticeship programs, as provided.
This bill would require a producer responsibility plan to additionally allocate $1,000,000 annually apprenticeship programs operated by labor organizations, as provided.
Existing law requires a producer responsibility plan in effect as of January 1, 2025, to continue in effect, as provided, until it expires or is revoked, as provided.
This bill would repeal this provision.
Existing law requires a producer responsibility plan to prioritize expenditure of assessments collected pursuant to the product stewardship for carpet program on activities to carry out the producer responsibility plan, including grants for apprenticeship programs.
This bill would instead require a producer responsibility plan to prioritize expenditure of assessments collected pursuant to the carpet producer responsibility program on activities to carry out the producer responsibility plan, including grants for apprenticeship programs.
Existing law authorizes the department to establish, review, and adjust performance standards, which may include, but are not limited to, collection, reduction in disposal, and maximizing recycling. Existing law requires the producer responsibility plan to meet any performance standards published by the department. Existing law requires the department to use sales data to establish the performance standard for recycling carpet, as specified.
This bill would eliminate the requirement for the department to use sales data to establish the performance standard for recycling carpet.
Existing law authorizes the department to determine the PRO ineligible to act as the PRO if the PRO violates the provisions of the carpet producer responsibility program 3 or more times.
This bill would require the violations to be knowing or intentional violations.
Existing law requires the department to adopt regulations to implement the program with an effective date no earlier than December 31, 2026.
This bill would instead require the department to adopt the regulations no later than January 1, 2028.
(1)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. The act includes a product stewardship for carpet program and a successor carpet producer responsibility program, and requires the product stewardship for carpet program to become inoperative upon the completion of certain conditions related to the implementation of the successor carpet producer responsibility program.
Existing law, the product stewardship for carpet program, requires a manufacturer of carpets sold in this state, individually or through a carpet stewardship organization, to submit a carpet stewardship plan to the department, which is required to include specified elements, including achieving specified carpet recycling rates and a funding mechanism that provides sufficient funding to carry out the plan. Existing law authorizes the department to administratively impose a civil penalty of $10,000 per day on any person in violation of the program or $25,000 per day if the violation is intentional, knowing, or negligent, as specified.
This bill would instead authorize the department to impose administrative, rather than civil, penalties in those amounts, and to impose an administrative penalty of $25,000 per day if the violation is intentional or knowing.
Existing law requires a carpet stewardship organization to include nonvoting board members with representation from, among others, a retailer that sells carpet.
This bill would instead require the stewardship organization to create a governing board for the stewardship program, with 13 voting members, as specified.
Existing law requires a manufacturer of carpets sold in this state, individually or through a carpet stewardship organization, to submit to the department an annual report describing its activities to achieve the purposes of the program, as provided. Existing law authorizes a carpet stewardship organization to award grants and subsidies to incentivize the recycling of carpet materials that have the highest recyclability.
This bill would require a carpet stewardship organization to include in its annual report specified information related to the grants and subsidies provided pursuant to the program, as specified.
(2)Existing law, the successor carpet producer responsibility program, requires producers of covered products to form and join a single producer responsibility organization (PRO) for the collection and recycling of a covered product. Existing law defines PRO to include, among others, the carpet stewardship organization, as defined by the product stewardship for carpet program. Existing law defines a covered product as carpet, as defined, and requires the PRO to develop a producer responsibility plan for the collection, transportation, recycling, and the safe and proper management of covered products in the state.
This bill would remove the carpet stewardship organization from the definition of PRO. The bill would redefine carpet to have the same definition used by the product stewardship for carpet program.
Existing law requires an assessment to be added to the price of all covered products sold in the state to fund the program. Existing law also requires the costs of the program to be borne by producers of covered products, as provided.
This bill would eliminate the requirement for the costs of the program to be borne by producers of covered products.
Existing law requires, no later than January 1, 2029, a person who removes a covered product as part of the installation of a covered product to transport, or contract to transport, all of the removed covered product to an approved collection site, as provided. Under existing law, an approved collection site is a solid waste facility that has agreed to be a collection site for the PRO.
This bill would exempt a covered product from this transport requirement if certain conditions are met, including that it is returned to the producer. The bill would recast approved collection sites and would expand them to include certain carpet recycling centers, municipal facilities, and retailers.
Existing law requires the governing board of a PRO to include 4 nonvoting members, including, but not limited to, a nonvoting member representing a nonprofit organization established to promote a circular economy and to address environmental issues. Existing law requires the PRO to submit an annual report to the department on or before July 1 of each year, as provided. Existing law requires a producer to publish on its internet website, for each of its covered products, an environmental product declaration that identifies a covered products components, as provided.
This bill would instead require the PRO to create a governing board for the program, with 13 voting members, as specified. The bill would require the annual report to be submitted on or before September 1 of each year, instead of July 1 of each year. The bill would instead require a producer to publish on its internet website, for each of its covered products, the components that constitute more than 1% of the products weight and any component that is a hazardous chemical, as specified.
Existing law requires the PRO to submit to the department an annual report, as specified, and to make the report publicly available on the PROs internet website. Existing law requires the PRO to provide annual grants to apprenticeship programs for training carpet installers in proper carpet recycling techniques, as provided.
This bill would require the PRO to include in its annual report specified information related to the grants and incentive payments provided pursuant to the program, as specified.
Existing law requires a producer responsibility plan, among other things, to explain how producers will use standardized stamping or some other means to provide a visual mark on the back of a covered product that is a synthetic material to allow expeditious sorting of the carpet, as provided.
This bill would instead require a producer responsibility plan to explain how producers will use standardized stamping or some other means to provide a visual mark on the back of a covered product that provides the name of the producer, the date of manufacture, and a listing of the types of face fibers and backing materials contained in the product.
Existing law requires a producer responsibility plan to describe how the PRO will provide free dropoff and convenient collection system for covered products.
The bill would require a producer responsibility plan to instead provide the ability for people to drop off postconsumer carpet, free of charge, at certain facilities and with certain availabilities.
Existing law requires a producer responsibility plan to provide annual grants to apprenticeship programs, as provided.
This bill would require a producer responsibility plan to additionally allocate $1,000,000 annually apprenticeship programs operated by labor organizations, as provided.
Existing law requires a producer responsibility plan in effect as of January 1, 2025, to continue in effect, as provided, until it expires or is revoked, as provided.
This bill would repeal this provision.
Existing law requires a producer responsibility plan to prioritize expenditure of assessments collected pursuant to the product stewardship for carpet program on activities to carry out the producer responsibility plan, including grants for apprenticeship programs.
This bill would instead require a producer responsibility plan to prioritize expenditure of assessments collected pursuant to the carpet producer responsibility program on activities to carry out the producer responsibility plan, including grants for apprenticeship programs.
Existing law authorizes the department to establish, review, and adjust performance standards, which may include, but are not limited to, collection, reduction in disposal, and maximizing recycling. Existing law requires the producer responsibility plan to meet any performance standards published by the department. Existing law requires the department to use sales data to establish the performance standard for recycling carpet, as specified.
This bill would eliminate the requirement for the department to use sales data to establish the performance standard for recycling carpet.
Existing law authorizes the department to determine the PRO ineligible to act as the PRO if the PRO violates the provisions of the carpet producer responsibility program 3 or more times.
This bill would require the violations to be knowing or intentional violations.
Existing law requires the department to adopt regulations to implement the program with an effective date no earlier than December 31, 2026.
This bill would instead require the department to adopt the regulations no later than January 1, 2028.
(1)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. The act includes a product stewardship for carpet program and a successor carpet producer responsibility program, and requires the product stewardship for carpet program to become inoperative upon the completion of certain conditions related to the implementation of the successor carpet producer responsibility program.
Existing law, the product stewardship for carpet program, requires a manufacturer of carpets sold in this state, individually or through a carpet stewardship organization, to submit a carpet stewardship plan to the department, which is required to include specified elements, including achieving specified carpet recycling rates and a funding mechanism that provides sufficient funding to carry out the plan. Existing law authorizes the department to administratively impose a civil penalty of $10,000 per day on any person in violation of the program or $25,000 per day if the violation is intentional, knowing, or negligent, as specified.
This bill would instead authorize the department to impose administrative, rather than civil, penalties in those amounts, and to impose an administrative penalty of $25,000 per day if the violation is intentional or knowing.
Existing law requires a carpet stewardship organization to include nonvoting board members with representation from, among others, a retailer that sells carpet.
This bill would instead require the stewardship organization to create a governing board for the stewardship program, with 13 voting members, as specified.
Existing law requires a manufacturer of carpets sold in this state, individually or through a carpet stewardship organization, to submit to the department an annual report describing its activities to achieve the purposes of the program, as provided. Existing law authorizes a carpet stewardship organization to award grants and subsidies to incentivize the recycling of carpet materials that have the highest recyclability.
This bill would require a carpet stewardship organization to include in its annual report specified information related to the grants and subsidies provided pursuant to the program, as specified.
(2)Existing law, the successor carpet producer responsibility program, requires producers of covered products to form and join a single producer responsibility organization (PRO) for the collection and recycling of a covered product. Existing law defines PRO to include, among others, the carpet stewardship organization, as defined by the product stewardship for carpet program. Existing law defines a covered product as carpet, as defined, and requires the PRO to develop a producer responsibility plan for the collection, transportation, recycling, and the safe and proper management of covered products in the state.
This bill would remove the carpet stewardship organization from the definition of PRO. The bill would redefine carpet to have the same definition used by the product stewardship for carpet program.
Existing law requires an assessment to be added to the price of all covered products sold in the state to fund the program. Existing law also requires the costs of the program to be borne by producers of covered products, as provided.
This bill would eliminate the requirement for the costs of the program to be borne by producers of covered products.
Existing law requires, no later than January 1, 2029, a person who removes a covered product as part of the installation of a covered product to transport, or contract to transport, all of the removed covered product to an approved collection site, as provided. Under existing law, an approved collection site is a solid waste facility that has agreed to be a collection site for the PRO.
This bill would exempt a covered product from this transport requirement if certain conditions are met, including that it is returned to the producer. The bill would recast approved collection sites and would expand them to include certain carpet recycling centers, municipal facilities, and retailers.
Existing law requires the governing board of a PRO to include 4 nonvoting members, including, but not limited to, a nonvoting member representing a nonprofit organization established to promote a circular economy and to address environmental issues. Existing law requires the PRO to submit an annual report to the department on or before July 1 of each year, as provided. Existing law requires a producer to publish on its internet website, for each of its covered products, an environmental product declaration that identifies a covered products components, as provided.
This bill would instead require the PRO to create a governing board for the program, with 13 voting members, as specified. The bill would require the annual report to be submitted on or before September 1 of each year, instead of July 1 of each year. The bill would instead require a producer to publish on its internet website, for each of its covered products, the components that constitute more than 1% of the products weight and any component that is a hazardous chemical, as specified.
Existing law requires the PRO to submit to the department an annual report, as specified, and to make the report publicly available on the PROs internet website. Existing law requires the PRO to provide annual grants to apprenticeship programs for training carpet installers in proper carpet recycling techniques, as provided.
This bill would require the PRO to include in its annual report specified information related to the grants and incentive payments provided pursuant to the program, as specified.
Existing law requires a producer responsibility plan, among other things, to explain how producers will use standardized stamping or some other means to provide a visual mark on the back of a covered product that is a synthetic material to allow expeditious sorting of the carpet, as provided.
This bill would instead require a producer responsibility plan to explain how producers will use standardized stamping or some other means to provide a visual mark on the back of a covered product that provides the name of the producer, the date of manufacture, and a listing of the types of face fibers and backing materials contained in the product.
Existing law requires a producer responsibility plan to describe how the PRO will provide free dropoff and convenient collection system for covered products.
The bill would require a producer responsibility plan to instead provide the ability for people to drop off postconsumer carpet, free of charge, at certain facilities and with certain availabilities.
Existing law requires a producer responsibility plan to provide annual grants to apprenticeship programs, as provided.
This bill would require a producer responsibility plan to additionally allocate $1,000,000 annually apprenticeship programs operated by labor organizations, as provided.
Existing law requires a producer responsibility plan in effect as of January 1, 2025, to continue in effect, as provided, until it expires or is revoked, as provided.
This bill would repeal this provision.
Existing law requires a producer responsibility plan to prioritize expenditure of assessments collected pursuant to the product stewardship for carpet program on activities to carry out the producer responsibility plan, including grants for apprenticeship programs.
This bill would instead require a producer responsibility plan to prioritize expenditure of assessments collected pursuant to the carpet producer responsibility program on activities to carry out the producer responsibility plan, including grants for apprenticeship programs.
Existing law authorizes the department to establish, review, and adjust performance standards, which may include, but are not limited to, collection, reduction in disposal, and maximizing recycling. Existing law requires the producer responsibility plan to meet any performance standards published by the department. Existing law requires the department to use sales data to establish the performance standard for recycling carpet, as specified.
This bill would eliminate the requirement for the department to use sales data to establish the performance standard for recycling carpet.
Existing law authorizes the department to determine the PRO ineligible to act as the PRO if the PRO violates the provisions of the carpet producer responsibility program 3 or more times.
This bill would require the violations to be knowing or intentional violations.
Existing law requires the department to adopt regulations to implement the program with an effective date no earlier than December 31, 2026.
This bill would instead require the department to adopt the regulations no later than January 1, 2028.
Existing law, the Child Care and Development Services Act, administered by the State Department of Social Services, requires the department to administer childcare and development programs that offer a full range of services to eligible children from infancy to 13 years of age, inclusive. Existing law designates the department as the single state agency responsible for the promotion, development, and provision of care of children in the absence of their parents during the workday. Existing law defines workday for purposes of the act to mean the time that a parent requires temporary care for a child for specified reasons, including to undertake training in preparation for a job or to undertake or retain a job.This bill would revise workday to additionally include the time that a parent requires temporary care for a child to search for a job, provide care for oneself during a pregnancy-related leave from work, or provide care for a family member during a period of paid family leave. The bill would also additionally define parental incapacity to mean the temporary or permanent inability of a childs parent or parents to provide care and supervision of the child for any part of the day, including due to specified conditions.Existing law requires that parents meet at least one specified requirement in specified areas, including that they are a current aid recipient, income eligible, and the family needs the childcare services because the parents are engaged in vocational training or incapacitated or are employed or seeking employment.The bill would additionally include that a family may be eligible for services if a parent is employed or seeking employment, including while on family and medical leave from employment. The bill would additionally require that, at the time of certification or recertification, if a parent is on family and medical leave from employment, the parent provide a self-attestation form, signed under penalty of perjury, that they are on leave. By expanding the crime of perjury, this bill would impose a state-mandated local program. 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.Existing law, the Child Care and Development Services Act, administered by the State Department of Social Services, requires the department to administer childcare and development programs that offer a full range of services to eligible children from infancy to 13 years of age, inclusive. Existing law designates the department as the single state agency responsible for the promotion, development, and provision of care of children in the absence of their parents during the workday. Existing law defines workday for purposes of the act to mean the time that a parent requires temporary care for a child for specified reasons, including to undertake training in preparation for a job or to undertake or retain a job.
This bill would revise workday to additionally include the time that a parent requires temporary care for a child to search for a job, provide care for oneself during a pregnancy-related leave from work, or provide care for a family member during a period of paid family leave. The bill would also additionally define parental incapacity to mean the temporary or permanent inability of a childs parent or parents to provide care and supervision of the child for any part of the day, including due to specified leaves. conditions.
Existing law requires that parents meet at least one specified requirement in specified areas, including that they are a current aid recipient, income eligible, and the family needs the childcare services because the parents are engaged in vocational training or incapacitated. incapacitated or are employed or seeking employment.
The bill would additionally include that a family may be eligible for services if a parent is on pregnancy or family leave. employed or seeking employment, including while on family and medical leave from employment. The bill would additionally authorize a parent to sign an attestation form stating that they are on leave and that being on leave does not require a medical incapacity form. require that, at the time of certification or recertification, if a parent is on family and medical leave from employment, the parent provide a self-attestation form, signed under penalty of perjury, that they are on leave. By expanding the crime of perjury, this bill would impose a state-mandated local program.
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.
Existing law, the Child Care and Development Services Act, administered by the State Department of Social Services, requires the department to administer childcare and development programs that offer a full range of services to eligible children from infancy to 13 years of age, inclusive. Existing law designates the department as the single state agency responsible for the promotion, development, and provision of care of children in the absence of their parents during the workday. Existing law defines workday for purposes of the act to mean the time that a parent requires temporary care for a child for specified reasons, including to undertake training in preparation for a job or to undertake or retain a job.
This bill would revise workday to additionally include the time that a parent requires temporary care for a child to search for a job, provide care for oneself during a pregnancy-related leave from work, or provide care for a family member during a period of paid family leave. The bill would also additionally define parental incapacity to mean the temporary or permanent inability of a childs parent or parents to provide care and supervision of the child for any part of the day, including due to specified leaves.
Existing law requires that parents meet at least one specified requirement in specified areas, including that they are a current aid recipient, income eligible, and the family needs the childcare services because the parents are engaged in vocational training or incapacitated.
The bill would additionally include that a family may be eligible for services if a parent is on pregnancy or family leave. The bill would additionally authorize a parent to sign an attestation form stating that they are on leave and that being on leave does not require a medical incapacity form. By expanding the crime of perjury, this bill would impose a state-mandated local program.
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.
Existing law, the Child Care and Development Services Act, administered by the State Department of Social Services, requires the department to administer childcare and development programs that offer a full range of services to eligible children from infancy to 13 years of age, inclusive. Existing law designates the department as the single state agency responsible for the promotion, development, and provision of care of children in the absence of their parents during the workday. Existing law defines workday for purposes of the act to mean the time that a parent requires temporary care for a child for specified reasons, including to undertake training in preparation for a job or to undertake or retain a job.
This bill would revise workday to additionally include the time that a parent requires temporary care for a child to search for a job, provide care for oneself during a pregnancy-related leave from work, or provide care for a family member during a period of paid family leave.
Existing law requires the State Department of Social Services, in collaboration with the State Department of Education, to implement a reimbursement system plan that establishes reasonable standards and assigned reimbursement rates. Existing law also requires the department, in collaboration with the State Department of Education, to develop and conduct an alternative methodology, as specified, in order to set reimbursement rates for state-subsidized childcare and development services.This bill would make a technical, nonsubstantive change to these provisions.Existing law requires the State Department of Social Services, in collaboration with the State Department of Education, to implement a reimbursement system plan that establishes reasonable standards and assigned reimbursement rates. Existing law also requires the department, in collaboration with the State Department of Education, to develop and conduct an alternative methodology, as specified, in order to set reimbursement rates for state-subsidized childcare and development services.
This bill would make a technical, nonsubstantive change to these provisions.
For purposes of this chapter, the following definitions apply:
(a)Apprenticeship program means a program approved by the Chief of the Division of Apprenticeship Standards for training apprentice and journey-level carpet installers in proper carpet installation, reuse, and recycling practices to maximize the chances of achieving the goals of the program.
(b)Authorized collector means a person or entity that has entered into an agreement with the producer responsibility organization to collect covered products.
(c)Brand means a name, symbol, word, or mark that identifies a covered product rather than its components, and attributes the covered product to the owner or licensee of the brand as the producer.
(d)(1)Carpet means a manufactured article that is used in commercial or residential buildings affixed or placed on the floor or building walking surface as a decorative or functional building interior feature and that is primarily constructed of a top visible surface of synthetic or natural face fibers or yarns or tufts attached to a backing system derived from synthetic or natural materials.
(2)Carpet includes, but is not limited to, a commercial or a residential broadloom carpet or modular carpet tiles.
(3)Carpet does not include a rug, pad, cushion, or underlayment used in conjunction with, or separately from, a carpet.
(e)Closed loop recycling means recycling in which products or materials are reclaimed and returned to the original process or processes in which they were generated and they are reused in the production process.
(f)Collection site means and includes, but is not limited to, a carpet recycling center, municipal facility that accepts carpet, retailer that sells a covered product, producers regional distribution center, or solid waste facility that has agreed to be a collection site for the producer responsibility organization, as described in Section 42968.23.
(g)Consumer means a purchaser, owner, or lessee of a covered product, including a person, business, corporation, limited partnership, nonprofit organization, or governmental entity.
(h)(1)Covered product means carpet.
(2)Covered product does not include carpet that meets the requirements in Section 42357 to be labeled compostable.
(i)Department means the Department of Resources Recycling and Recovery.
(j)Environmental nongovernmental organization means a nonprofit organization established to address environmental issues related to waste and recycling.
(k)Permanent collection site means a permanent location in the state where discarded covered product may be returned at no cost, by a consumer or another party on behalf of a consumer, to be reused, recycled, or otherwise managed.
(l)Postconsumer covered product means a covered product that is no longer used for its manufactured purpose.
(m)(1)Postconsumer recycled content means material derived from postconsumer covered product.
(2)Postconsumer recycled content does not include material derived from recycled beverage containers, as defined in Section 14505.
(n)Processor means a company that uses a process, including, but not limited to, shredding, grinding, sheering, or depolymerization, to convert discarded covered products into finished recycled output that is ready to be used as an input material for manufacturing products.
(o)(1)Producer means a person who manufactures a covered product and who sells, offers for sale, or distributes a covered product in or into the state under that persons own name or brand.
(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 or exclusive licensee of a brand or trademark under which the covered product is sold or distributed in or into the state, whether or not 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 party that imports the covered product into the state for sale, distribution, or installation.
(4)If there is no person in the state who is the producer for purposes of paragraph (1), (2), or (3), then the producer of the covered product is the distributor, wholesaler, or retailer who sells the product in or into the state.
(p)Producer responsibility organization means an organization that is exempt from taxation under Section 501(c)(3) of the United States Internal Revenue Code of 1986, is formed for the purpose of implementing a producer responsibility plan to meet the requirements of this chapter and is approved by the department pursuant to Section 42968.21.
(q)Producer responsibility plan means the plan developed by the producer responsibility organization that complies with Section 42968.32 and is submitted to the department for approval pursuant to Section 42968.30.
(r)(1)Recycle or recycling means the process of 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 that meet the quality standards necessary to be used in the marketplace.
(2)Recycle or recycling does not include any of the following:
(A)Combustion.
(B)Incineration.
(C)Energy generation.
(D)Fuel production, except for anaerobic digestion of source separated organic materials.
(E)Other forms of disposal.
(3)To be considered recycled, covered products shall be sent to a responsible end market.
(s)Retailer means a person who offers new covered products in a retail sale, as defined in Section 6007 of the Revenue and Taxation Code, including a retail sale through any means, including remote offerings such as sales outlets, catalogs, or an internet website, online marketplace, or other similar electronic means.
(t)(1)Sell or sale means a transfer of title of a covered product for consideration, including a remote sale conducted through a sales outlet, catalog, or internet website, online marketplace, or similar electronic means.
(2)Sell or sale includes a lease through which a covered product is provided to a consumer by a distributer, importer, manufacturer, retailer, wholesaler, or event carpet and flooring rental service.
(3)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.
(u)Solid waste facility means a solid waste facility, as defined in Section 40194, that accepts under its normal operating conditions covered materials for collection, storing, and handling, whether for recycling or disposal.
(v)Wholesaler means a person who offers new covered product for sale in this state in a sale that is not a retail sale, as defined in Section 6007 of the Revenue and Taxation Code, and in which the covered product is intended to be resold.
SEC. 2.Section 42968.1 of the Public Resources Code is amended to read:42968.1.The department shall adopt regulations to implement this chapter in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The regulations shall have an effective date no later than January 1, 2029.
SEC. 3.Section 42968.4 of the Public Resources Code is amended to read:42968.4.(a)Subject to subdivision (b), a producer shall publish on its internet website, for each of its covered products, the components that constitute more than 1 percent of the total composition of the product by weight and any intentionally added component that is listed by the Department of Toxic Substances Control as a Candidate Chemical pursuant to Section 69502.2 of Title 22 of the California Code of Regulations.
(b)Subdivision (a) does not require a producer to reveal a trade secret, as defined in Section 3426.1 of the Civil Code.
SEC. 4.Section 42968.21 of the Public Resources Code is amended to read:42968.21.(a)The department shall approve a producer responsibility organization if it meets the requirements of this chapter, including all of the following:
(1)The producer responsibility organization shall create a governing board for the program and the voting members of the governing board shall be appointed as follows:
(A)The producer responsibility organization shall appoint eight voting members with at least one voting member who is a representative of the Carpet and Rug Institute.
(B)The Speaker of the Assembly shall appoint three voting members, one representing each of the following:
(i)An environmental organization that is involved in promoting recycling programs and the circular economy.
(ii)A retailer that sells covered products in California.
(iii)A labor representative from northern California who is from a floor covering joint apprenticeship program in California that is approved by the Division of Apprenticeship Standards.
(C)The President pro Tempore shall appoint three voting members, one representing each of the following:
(i)A collector or hauler who participates in the California producer responsibility program.
(ii)A recycler of carpet located in California.
(iii)A labor representative from southern California who is from a floor covering joint apprenticeship program in California that is approved by the Division of Apprenticeship Standards.
(2)A producer responsibility organization shall pay the travel costs and other expenses for the voting members identified in paragraph (1) to participate in all meetings of the governing board.
(3)The producer responsibility organization shall demonstrate in its producer responsibility plan 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.
(4)The activities of the producer responsibility organization are limited to carrying out the requirements of this chapter.
(b)In the event that the department determines that the producer responsibility organization no longer meets the requirements of this chapter or fails to implement or administer an approved producer responsibility plan in a manner that effectuates the purposes of this chapter, the department may revoke its approval of the producer responsibility plan pursuant to paragraph (1) of subdivision (c) of Section 42968.71, and may approve another producer responsibility plan.
(c)(1)Upon approval of a producer responsibility plan pursuant to Section 42968.30, a producer shall not sell, offer for sale, import, or distribute a covered product in the state unless all of the following are met:
(A)The producer is a participant of the producer responsibility organization.
(B)The covered product is accounted for in the producer responsibility plan.
(C)The department has approved the producer responsibility plan.
(2)If a person does not qualify as a producer and is not subject to this chapter before or upon approval of a producer responsibility plan, but after the approval of a producer responsibility plan the person meets the definition of a producer, then that person shall become a participant of the producer responsibility organization and comply with the requirements of this chapter prior to beginning to sell, offer for sale, import, or distribute covered products in the state.
(d)A producer not in compliance with this chapter is subject to penalties pursuant to this chapter if a covered product sold or offered for sale by the producer is not subject to a producer responsibility plan that has been approved by the department pursuant to Section 42968.30.
SEC. 5.Section 42968.23 of the Public Resources Code is amended to read:42968.23.(a)(1)The producer responsibility organization shall include as a collection site under its producer responsibility plan a solid waste facility that offers in writing to participate in the producer responsibility plan and agrees to comply with any program operator requirements that are consistent with the approved producer responsibility plan.
(2)The producer responsibility organization shall include the solid waste facility as a collection site within 90 days of receiving the written offer to participate, confirming that the offering entity will comply with any producer responsibility organization requirements that are consistent with an approved producer responsibility plan.
(3)The producer responsibility organization shall not be required to respond to offers pursuant to this subdivision until its producer responsibility plan has been approved by the department.
(b)The producer responsibility organization may suspend or terminate use of 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 producer responsibility organization pursuant to subdivision (h) of Section 42968.32.
(c)A participant of the producer responsibility organization with an approved producer responsibility plan shall comply with the requirements of this chapter. The producer responsibility organization shall notify the department within 30 calendar days of any the following:
(1)The end of any three-month period in which the producer responsibility organization unsuccessfully attempted to obtain a fee, records, or information from a participant producer, or received incomplete or incorrect records or information required by this chapter.
(2)The date a producer no longer participates in the producer responsibility organizations approved producer responsibility plan.
(3)Any instance of noncompliance by a participant producer.
SEC. 6.Section 42968.30 of the Public Resources Code is amended to read:42968.30.(a)Within 12 months of the effective date of the regulations adopted by the department pursuant to Section 42968.1, the producer responsibility organization shall develop and submit to the department a complete producer responsibility plan, in accordance with the requirements of this chapter, for the collection, transportation, recycling, and the safe and proper management of covered products in the state.
(b)The department shall review the producer responsibility plan for compliance with this chapter and may approve or disapprove the producer responsibility plan within 120 days of receipt of the producer responsibility plan.
(c)If the department disapproves a producer responsibility plan submitted by the producer responsibility organization, the department shall explain how the producer responsibility plan does not comply with this chapter and provide written notice to the producer responsibility organization within 60 days of disapproval. The producer responsibility organization may resubmit to the department a revised producer responsibility plan within 30 days of the date the written notice was issued, and the department shall review the revised producer responsibility plan within 60 days of its receipt of the resubmittal. The producer responsibility organization may resubmit to the department one additional revised producer responsibility plan within 30 days of the date the written notice was issued, and the department shall review the revised producer responsibility plan within 60 days of its receipt of the resubmittal. If the producer responsibility organization elects not to submit a revised producer responsibility plan or submits a revised plan that is disapproved, the disapproval is final and the producer responsibility organization and producers may be subject to penalties. Within 24 months of the effective date of the regulations adopted by the department pursuant to Section 42968.1, the producer responsibility organization shall have a complete producer responsibility plan approved by the department and each producer shall be subject to an approved producer responsibility plan to be in compliance with this chapter.
(d)The approved producer responsibility plan shall be a public record, except that financial or sales data reported to the department by the producer responsibility organization 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 to any other entity.
SEC. 7.Section 42968.32 of the Public Resources Code is amended to read:42968.32.A producer responsibility plan for covered products shall do all of the following:
(a)Be designed to accept and manage all postconsumer-covered products.
(b)Include the name and contact information of each producer and brand covered under the producer responsibility plan. The contact information shall include the producers email address, phone number, and mailing and physical address.
(c)Explain the producer responsibility organizations funding methods, and explain how those methods will fully fund the producer responsibility organization.
(d)(1)Include the fee required by Section 42968.51 and a description of how it is calculated.
(2)Include the fee required by Section 42968.52, a description of how it is calculated, and an explanation of how it complies with Section 42968.52.
(e)Include a five-year budget that establishes a funding level sufficient to operate the producer responsibility organization in a prudent and responsible manner. The budget shall demonstrate how estimated revenues will cover all budgeted costs for each cost category. Budgeted costs shall include, but not be limited to, administrative costs, education and outreach costs, operational costs, capital costs, and a reserve.
(1)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 are defined in the regulations adopted pursuant to Section 42968.1. For purposes of this paragraph, producer responsibility organization implementation begins once the department approves the producer responsibility organizations producer responsibility plan, except the departments costs shall include actual regulatory development costs and other startup costs incurred prior to producer responsibility plan submittal and approval.
(2)The reserve shall include funds to operate the producer responsibility organization should there be unexpected events, losses of income, or large unbudgeted expenses. It shall also protect the recycling infrastructure the producer responsibility organization relies on in its producer responsibility plan during any lapse in producer participation during the life of the program. The reserve cost category shall include a reserve level amount and description justifying the reserve level amount indicated. The producer responsibility organization shall maintain reserve funds sufficient to operate the producer responsibility plan for no less than six months. In the event that a new producer responsibility organization is approved by the department, the producer responsibility organization shall establish its reserve and maintain the required reserve fund balance by the end of the second year of producer responsibility plan operation. In the event that the producer responsibility organizations producer responsibility plan expires or is revoked, the reserve balance shall be transferred to a successor producer responsibility organization or a trustee, pursuant to subdivision (j).
(f)Include quantifiable five-year and annual performance standards and metrics for each covered product category until such time as the department publishes performance standards pursuant to Section 42968.34. The producer responsibility organization shall amend its producer responsibility 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 the Administrative Procedure Act (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 recycling.
(g)(1)Include provisions for all of the following:
(A)The ability for people to drop off, at no charge, postconsumer carpet at a collection site.
(B)The payment of a reasonable amount to the collection sites described in subparagraph (A) for accepting, collecting, storing, transporting, and handling of postconsumer carpet.
(C)Collection sites described in subparagraph (A) that are open at least 20 hours per week over at least four days per week. Collection sites described in subparagraph (A) shall be available on Saturdays, as follows:
(i)For a county with a population of 25,000 people or more, 25 percent of collection sites described in subparagraph (A) shall be open every Saturday.
(ii)For a county with a population of fewer than 25,000 people, at least two Saturdays each month.
(iii)If a county is part of a rural regional agency, as defined in Section 40183, then the counties of the regional agency shall count as one county to meet the requirement of one collection site described in subparagraph (A) site per county.
(D)Notwithstanding subparagraph (C), collection sites described in subparagraph (A) in a county with a population of fewer than 5,000 people shall only be required to meet the minimum hours described in subparagraph (C) or have Saturday operation at least two Saturdays a month.
(E)Collection sites in each county of the state that provide for a reasonable geographic spread of permanent collection sites and an explanation for the geographic spread.
(2)The department may by regulation adjust the minimum number of required collection sites described in subparagraph (A) of paragraph (1) to ensure that consumers have sufficient convenient access to collection sites, applicable to a producer responsibility plan addressing collection of covered products, if the department has substantial evidence that allowing for this adjustment will increase the collection of covered products or is otherwise justified considering the population or geographic attributes of the county. For counties bordering another state, the number of collection sites within that county may include a facility located in an adjacent state if that facility is regularly involved in the management of that countys solid waste and recyclables.
(h)Describe how collection sites will be authorized and managed, including all of the following:
(1)The process by which the producer responsibility organization will provide for the collection, storage, and transport of covered products from the collection sites to an authorized recycling facility.
(2)How the producer responsibility organization will ensure the cost-effective sorting of covered products using the best available technology to avoid any recyclable materials from being disposed.
(3)How the producer responsibility organization will maintain all collection and transport records and make them available to the department upon request.
(4)A list of all proposed rules, conditions, and requirements for authorized collectors, including a template proposed agreement.
(5)How the producer responsibility organization will maximize the recycling of covered products, including prioritizing reuse and closed loop recycling.
(6)How the producer responsibility organization will maximize the collection and reuse of convention carpet, including no less than 20 percent reuse by 2028.
(7)The process by which covered products will be managed following collection at collection sites, including:
(A)How covered products will be handled and managed according to the waste hierarchy as defined in Section 40051.
(B)How the producer responsibility organization will maximize the recycling of covered products.
(C)How the producer responsibility organization will minimize disposal of covered products collected by the producer responsibility organization.
(8)A description of the producer responsibility organizations annual assessment and the metrics it will use to determine how collection, sorting, and transportation outcomes aligned with projections.
(9)How the producer responsibility organization will improve the collection, processing, and recycling operations for covered products, including, but not limited to, pilot programs to test new processes, methods, or equipment.
(10)How collection sites will be operated to ensure that covered products are collected at no cost, safely, and handle covered product in accordance with all applicable state and federal law.
(i)(1)Describe the statewide education and outreach programs efforts to various audiences, including, but not limited to, consumers, commercial building owners, covered product installation contractors, construction and demolition contractors, retailers, and wholesalers to promote their participation in achieving the purposes of the producer responsibility plan. These education and outreach materials shall include, but are not limited to, any of the following:
(A)Signage that is prominently displayed and easily visible.
(B)Written materials and templates of materials to be provided to covered product installation contractors and consumers at the time of purchase or delivery or both.
(C)Promotional materials or activities, or both, that explain the purpose of the producer responsibility organization and the means by which it is being carried out.
(D)An internet website that publicizes the location of collection sites and provides information on how to drop off covered products at the free and convenient network of collection sites offered by the producer responsibility organization, including any information reasonably necessary to safely and conveniently access the collection and recycling services offered by the producer responsibility organization.
(E)All signage and materials required for collection sites by the producer responsibility organization, and a description of the method by which collection sites can access replacement materials at no cost to the collection site.
(F)A description of efforts to support participation by all California communities, including a description of efforts to communicate in languages other than English.
(G)A description of strategies, goals, and metrics used to determine the success of the producer responsibility plan implementation and statewide education and outreach program.
(2)The statewide education and outreach program shall promote the safe and proper management of covered products, including source reduction and environmentally preferable purchasing of covered products.
(3)The statewide education and outreach plan program shall include information for consumers about how to avoid improper disposal of covered products.
(4)The statewide education and outreach program shall include a survey to consumers and contractors regarding their awareness of the producer responsibility plan, their use of resources available to them under the producer responsibility plan, including collection sites, and why they do or do not use those resources. The survey shall occur once every three years.
(j)Include a contingency plan that takes effect in the event the producer responsibility 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 producer responsibility plan, subject to the direction of the department, until that time as a new producer responsibility plan is approved. Upon producer responsibility plan expiration or revocation of the producer responsibility plan, the balance of the producer responsibility organizations operating reserves collected pursuant to subdivision (d) shall be transferred to the control of the trustee within five calendar days, along with all documents, digital records, contracts, and files related to the operation of the producer responsibility plan.
(k)Allocate annual grants to apprenticeship programs for training apprentices and journey-level carpet installers in proper carpet recycling techniques, including installation and removal techniques that maximize the recyclability of carpet. The producer responsibility plan shall provide for annual grants to joint apprenticeship programs approved by the Division of Apprenticeship Standards to train carpet installers, with the amount divided evenly between programs in northern California and southern California.
(l)(1)Require the expenditure of assessments collected pursuant to Section 42968.52 to be used for activities that support the implementation of the producer responsibility plan in California.
(2)The program shall annually allocate two million dollars ($2,000,000), plus the cost-of-living adjustment pursuant to subparagraph (B) of paragraph (4), for grants to apprenticeship programs pursuant to subparagraph (A) of paragraph (4), subject to the requirements and conditions of this section. Any portion of these funds that are not awarded and used in a year shall be credited to the amount to be allocated or awarded in the following year pursuant to this section, thereby reducing the amount allocated or awarded in the following year by the amount of the credit.
(3)The apprenticeship program shall submit a report pursuant to subparagraph (E) of paragraph (4) to the producer responsibility organization and the department outlining its expenditure of the grant funds for purposes of this program prior to receipt of new grants.
(4)(A)Consistent with subdivision (e), commencing on January 1, 2027, and annually thereafter, the program shall allocate one million dollars ($1,000,000) to each apprenticeship program, as described in clauses (i) and (ii), operated by a labor organization in both of the following groupings of counties, subject to the requirements of this paragraph:
(i)An apprenticeship program that includes, but is not limited to, the Counties of Alameda, Contra Costa, Del Norte, Fresno, Humboldt, Kings, Lake, Madera, Marin, Mariposa, Mendocino, Merced, Monterey, Napa, San Benito, San Francisco, San Joaquin, San Mateo, Santa Clara, Santa Cruz, Solano, Sonoma, Stanislaus, and Tulare.
(ii)An apprenticeship program that includes, but is not limited to, the Counties of Imperial, Inyo, Kern, Los Angeles, Mono, Orange, Riverside, San Bernardino, San Diego, Santa Barbara, and Ventura.
(B)Commencing on January 1, 2028, and annually thereafter, the funding amounts shall be adjusted by the producer responsibility organization to reflect changes in the California Consumer Price Index, rounded to the nearest one thousand dollars ($1,000), not to exceed 3 percent in any year, subject to available funds.
(C)An application for funding shall be submitted on or before February 15 of each year. Funding shall be awarded on or before March 15 of each year, except that funding may be divided into two payments, with the second payment provided on or before July 1 of the year of the award.
(D)The producer responsibility organization may, at its sole discretion, authorize a one-time extension of up to three months solely to complete an apprenticeship program already underway. Any funds not expended within the extension period shall revert to the producer responsibility organization.
(E)Prior to receipt of any subsequent grant, each apprenticeship program receiving funding under this paragraph shall submit a report to the producer responsibility organization and the department outlining the expenditure of grant funds for purposes of this program. The report shall include all of the following:
(i)Total funds received and expended.
(ii)Utilization of funds, categorized by expense type, including receipts and invoices for preapproved supplies and equipment.
(iii)Number of individuals trained.
(iv)Demographic data, if required by the producer responsibility organization.
(v)Cost per trainee.
(vi)Program outcomes and performance metrics.
(vii)Any remaining unexpended funds.
(viii)Other information pertinent to the program.
(m)Provide for the payment to a collection site for accepting, collecting, storing, transporting, and handling covered products in an amount determined by the collection site and the producer responsibility organization. Payment of these costs shall be reflected in the budget pursuant to subdivision (e).
(n)Explain how producers will use standardized stamping or some other means to provide a visual mark on the back of a covered product that provides the name of the producer, the date of manufacture, and a listing of the types of face fibers and backing materials contained in the product. This requirement to implement standardized stamping or other means to provide a visual mark shall become operative six months after the effective date of the regulations adopted by the department pursuant to Section 42968.1 or July 1, 2028, whichever is later.
(o)Require carpet to contain 5 percent of postconsumer recycled carpet content by 2028. The department may, for the year 2029 and any year thereafter, set the rate for postconsumer recycled carpet to be required in carpet.
(p)Include written certification by an authorized representative of the producer responsibility organization that, at the time of submission to the department, the producer responsibility plan, including all aspects of the producer responsibility plan related to the collection, transportation, and management of covered products, is in compliance with all applicable state and federal laws and regulations.
SEC. 8.Section 42968.34 of the Public Resources Code is amended to read:42968.34.(a)The department may establish, review, and may adjust performance standards based on information included in the producer responsibility plan and annual reports, other information provided by the producer responsibility organization, department waste characterization studies, and economic and any other relevant information.
(b)Performance standards published by the department pursuant to this section shall not be subject to the requirements of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
SEC. 9.Section 42968.40 of the Public Resources Code is amended to read:42968.40.(a)(1)No later than January 1, 2029, a person that, as part of the installation of a covered product, removes a covered product from a residence or business shall transport, or contract to transport, all of the removed covered products to a collection site. Covered material collected at a collection site shall be transported to a recycling facility designated by the producer responsibility organization.
(2)Paragraph (1) does not apply to a covered product if all of the following are met:
(A)The covered product is returned to its producer.
(B)The producer collects, maintains, and provides to the producer responsibility organization, the information necessary for the collection to be included in the producer responsibility organizations performance metrics.
(C)The producers return process is subject to audit by the producer responsibility organization and the department.
(b)A collection site shall ensure that covered products are collected in the prescribed conditions required by the approved producer responsibility plan. The conditions shall include, but are not limited to, the following requirements:
(1)A covered product shall be kept in a location that allows it to remain dry at all times.
(2)A container holding a collected covered product shall be free of all contaminated discarded waste items.
(3)A collection site shall permit a processors prescribed container to be housed on site for loading and for pickup at the collection site, if the processor is approved by the producer responsibility plan.
SEC. 10.Section 42968.62 of the Public Resources Code is amended to read:42968.62.On or before September 1 of each year, the producer responsibility organization shall submit in the form and manner determined by the department an annual report and make the report publicly available on the producer responsibility organizations internet website. The report shall include all of the following information for the preceding calendar year:
(a)The producer responsibility organizations revenues and costs, with the costs according to the cost categories established in the producer responsibility plan.
(b)A summary of any anticipated changes to allocations in cost categories for the following calendar year.
(c)The square footage, yardage, weight, or other metric, as determined by the department, of covered products, by carpet type, for each of the following:
(1)Covered product that was collected.
(2)Covered product that was processed.
(3)Covered product that was recycled.
(4)Covered product that was disposed.
(d)A list of the producer responsibility organizations collection sites, by name, location, and type.
(e)An updated list of the names and contact information, including email address, phone number, and physical and mailing addresses of producers.
(f)A description of methods used to collect, transport, recycle, and divert covered products by the producer responsibility organization including a description of all of the following:
(1)How the producer responsibility organization handled and managed covered products according to the priority of waste management practices provided in Section 40051.
(2)How the producer responsibility organization maximized recycling of all covered products.
(3)How the producer responsibility organization minimized disposal of all covered products collected by the producer responsibility organization.
(4)Results of the producer responsibility organizations assessment of the efficacy of the collection, sorting, and transportation process pursuant to paragraph (8) of subdivision (h) of Section 42968.32.
(g)A description of how the producer responsibility organization improved the collection, processing, and recycling operations for covered products, including, but not limited to, pilot programs to test new processes, methods, or equipment.
(h)A description of outreach efforts and education, including, but not limited to, education and outreach provided by the producer responsibility organization for the purpose of promoting the collection, reuse, and recycling of covered products. This includes messaging on environmentally preferable purchasing.
(i)Findings from the evaluation of the comprehensive statewide education and outreach program required by subdivision (i) of Section 42968.32.
(j)A report on activities the producer responsibility organization 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.
(k)All of the following information related to grants and incentive payments provided by the producer responsibility organization pursuant to this chapter:
(1)The name and address of each recipient of a grant or incentive payment.
(2)The amount of each grant and incentive payment, with grant amounts broken down by category and by recipient.
(3)The number of applicants and recipients of a grant broken down by category.
(4)A detailed description of the criteria used to evaluate applications and to award the grants.
(5)A timeline of the process and a description of when applications were announced, the deadline to apply, the length of the review process, and the date the grants or incentive payments were awarded.
(6)An explanation of why certain recipients are chosen for incentive payments and others are not.
(7)A separate list identifying any grant or incentive payment provided to any of the following and an explanation as to why the grant or incentive payment does not involve a conflict of interest:
(A)A member of the producer responsibility organizations board of directors.
(B)A member of the governing board described in Section 42968.21.
(C)A family member or employee of a person described in subparagraph (A) or (B).
(l)A report on achievement of the performance standards required by subdivision (f) of Section 42968.32 and the progress toward meeting the performance standards. If the standards were not met, a description of efforts made along with a full description of the corrective actions taken to achieve the performance standards.
(m)Any other information deemed relevant by the producer responsibility organization for the department to determine compliance with the approved producer responsibility plan.
(n)Any other information required by regulations adopted pursuant to Section 42968.1.
SEC. 11.Section 42968.72 of the Public Resources Code is amended to read:42968.72.(a)If the producer responsibility organization knowingly or intentionally violates this chapter three or more times, the department may determine the producer responsibility organization permanently ineligible to act as the producer responsibility organization on behalf of producers to design, submit, and administer a producer responsibility plan pursuant to this chapter.
(b)If the producer responsibility organization becomes ineligible pursuant to subdivision (a), then the department may revoke approval of the producer responsibility organization pursuant to paragraph (1) of subdivision (c) of Section 42968.71.
SEC. 12.Section 42973.7 of the Public Resources Code is amended to read:42973.7.(a)The carpet stewardship organization shall create a governing board for the program and the voting members of the governing board shall be appointed as follows:
(1)The carpet stewardship organization shall appoint eight voting members with at least one voting member who is a representative of the Carpet and Rug Institute.
(2)The Speaker of the Assembly shall appoint three voting members, one representing each of the following:
(A)An environmental organization that is involved in promoting recycling programs and the circular economy.
(B)A retailer that sells covered products in California.
(C)A labor representative from northern California who is from a floor covering joint apprenticeship program in California that is approved by the Division of Apprenticeship Standards.
(3)The President pro Tempore of the Senate shall appoint three voting members, one representing each of the following:
(A)A collector or hauler who participates in the California carpet stewardship program.
(B)A recycler of carpet located in California.
(C)A labor representative from southern California who is from a floor covering joint apprenticeship program in California that is approved by the Division of Apprenticeship Standards.
(b)A carpet stewardship organization shall pay the travel costs and other expenses for the voting members identified in subdivision (a) to participate in all meetings of the governing board.
SEC. 13.Section 42976 of the Public Resources Code is amended to read:42976.On or before September 1 of each year, a manufacturer of carpet sold in the state shall, individually or through a carpet stewardship organization, submit to the department a report describing its activities to achieve the purposes of this chapter, as described in Section 42970, and to comply with Section 42975. At a minimum, the report shall include all of the following:
(a)The amount of carpet sold by square yards and weight, in the state during the reporting period. A carpet stewardship organization with more than one manufacturer may use average weight.
(b)The amount of postconsumer carpet recycled, by weight, during the reporting period.
(c)The amount of postconsumer carpet recovered but not recycled, by weight, and its ultimate disposition.
(d)The total cost of implementing the carpet stewardship plan.
(e)An evaluation of the effectiveness of the carpet stewardship plan, and anticipated steps, if needed, to improve performance.
(f)Examples of educational materials that were provided to consumers during the reporting period.
(g)All of the following information related to grants awarded by the carpet stewardship organization pursuant to this chapter:
(1)The name and address of each recipient of a grant or subsidy.
(2)The amount of each grant and subsidy, with grant amounts broken down by category and by recipient.
(3)The number of applicants and recipients of a grant broken down by category.
(4)A detailed description of the criteria used to evaluate applications and to award the grants.
(5)A timeline of the process and a description of when applications were announced, the deadline to apply, the length of the review process, and the date the grants and subsidies were awarded.
(6)An explanation of why certain recipients are chosen for grants and subsidies and others are not.
(7)A separate list identifying any grant or subsidy provided to any of the following and an explanation as to why the grant or subsidy does not involve a conflict of interest:
(A)A member of the carpet stewardship organizations board of directors.
(B)A member of the governing board described in Section 42973.7.
(C)A family member or employee of a person described in subparagraph (A) or (B).
SEC. 14.Section 42978 of the Public Resources Code is amended to read:42978.(a)An administrative 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)Twenty-five thousand dollars ($25,000) per day if the violation is intentional or knowing.
(b)In assessing or reviewing the amount of an administrative 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.
For purposes of this chapter, the following definitions apply:
(a)Apprenticeship program means a program approved by the Chief of the Division of Apprenticeship Standards for training apprentice and journey-level carpet installers in proper carpet installation, reuse, and recycling practices to maximize the chances of achieving the goals of the program.
(b)Authorized collector means a person or entity that has entered into an agreement with the producer responsibility organization to collect covered products.
(c)Brand means a name, symbol, word, or mark that identifies a covered product rather than its components, and attributes the covered product to the owner or licensee of the brand as the producer.
(d)(1)Carpet means a manufactured article that is used in commercial or residential buildings affixed or placed on the floor or building walking surface as a decorative or functional building interior feature and that is primarily constructed of a top visible surface of synthetic or natural face fibers or yarns or tufts attached to a backing system derived from synthetic or natural materials.
(2)Carpet includes, but is not limited to, a commercial or a residential broadloom carpet or modular carpet tiles.
(3)Carpet does not include a rug, pad, cushion, or underlayment used in conjunction with, or separately from, a carpet.
(e)Closed loop recycling means recycling in which products or materials are reclaimed and returned to the original process or processes in which they were generated and they are reused in the production process.
(f)Collection site means and includes, but is not limited to, a carpet recycling center, municipal facility that accepts carpet, retailer that sells a covered product, producers regional distribution center, or solid waste facility that has agreed to be a collection site for the producer responsibility organization, as described in Section 42968.23.
(g)Consumer means a purchaser, owner, or lessee of a covered product, including a person, business, corporation, limited partnership, nonprofit organization, or governmental entity.
(h)(1)Covered product means carpet.
(2)Covered product does not include carpet that meets the requirements in Section 42357 to be labeled compostable.
(i)Department means the Department of Resources Recycling and Recovery.
(j)Environmental nongovernmental organization means a nonprofit organization established to address environmental issues related to waste and recycling.
(k)Permanent collection site means a permanent location in the state where discarded covered product may be returned at no cost, by a consumer or another party on behalf of a consumer, to be reused, recycled, or otherwise managed.
(l)Postconsumer covered product means a covered product that is no longer used for its manufactured purpose.
(m)(1)Postconsumer recycled content means material derived from postconsumer covered product.
(2)Postconsumer recycled content does not include material derived from recycled beverage containers, as defined in Section 14505.
(n)Processor means a company that uses a process, including, but not limited to, shredding, grinding, sheering, or depolymerization, to convert discarded covered products into finished recycled output that is ready to be used as an input material for manufacturing products.
(o)(1)Producer means a person who manufactures a covered product and who sells, offers for sale, or distributes a covered product in or into the state under that persons own name or brand.
(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 or exclusive licensee of a brand or trademark under which the covered product is sold or distributed in or into the state, whether or not 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 party that imports the covered product into the state for sale, distribution, or installation.
(4)If there is no person in the state who is the producer for purposes of paragraph (1), (2), or (3), then the producer of the covered product is the distributor, wholesaler, or retailer who sells the product in or into the state.
(p)Producer responsibility organization means an organization that is exempt from taxation under Section 501(c)(3) of the United States Internal Revenue Code of 1986, is formed for the purpose of implementing a producer responsibility plan to meet the requirements of this chapter and is approved by the department pursuant to Section 42968.21.
(q)Producer responsibility plan means the plan developed by the producer responsibility organization that complies with Section 42968.32 and is submitted to the department for approval pursuant to Section 42968.30.
(r)(1)Recycle or recycling means the process of 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 that meet the quality standards necessary to be used in the marketplace.
(2)Recycle or recycling does not include any of the following:
(A)Combustion.
(B)Incineration.
(C)Energy generation.
(D)Fuel production, except for anaerobic digestion of source separated organic materials.
(E)Other forms of disposal.
(3)To be considered recycled, covered products shall be sent to a responsible end market.
(s)Retailer means a person who offers new covered products in a retail sale, as defined in Section 6007 of the Revenue and Taxation Code, including a retail sale through any means, including remote offerings such as sales outlets, catalogs, or an internet website, online marketplace, or other similar electronic means.
(t)(1)Sell or sale means a transfer of title of a covered product for consideration, including a remote sale conducted through a sales outlet, catalog, or internet website, online marketplace, or similar electronic means.
(2)Sell or sale includes a lease through which a covered product is provided to a consumer by a distributer, importer, manufacturer, retailer, wholesaler, or event carpet and flooring rental service.
(3)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.
(u)Solid waste facility means a solid waste facility, as defined in Section 40194, that accepts under its normal operating conditions covered materials for collection, storing, and handling, whether for recycling or disposal.
(v)Wholesaler means a person who offers new covered product for sale in this state in a sale that is not a retail sale, as defined in Section 6007 of the Revenue and Taxation Code, and in which the covered product is intended to be resold.
SEC. 2.Section 42968.1 of the Public Resources Code is amended to read:42968.1.The department shall adopt regulations to implement this chapter in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The regulations shall have an effective date no later than January 1, 2029.
SEC. 3.Section 42968.4 of the Public Resources Code is amended to read:42968.4.(a)Subject to subdivision (b), a producer shall publish on its internet website, for each of its covered products, the components that constitute more than 1 percent of the total composition of the product by weight and any intentionally added component that is listed by the Department of Toxic Substances Control as a Candidate Chemical pursuant to Section 69502.2 of Title 22 of the California Code of Regulations.
(b)Subdivision (a) does not require a producer to reveal a trade secret, as defined in Section 3426.1 of the Civil Code.
SEC. 4.Section 42968.21 of the Public Resources Code is amended to read:42968.21.(a)The department shall approve a producer responsibility organization if it meets the requirements of this chapter, including all of the following:
(1)The producer responsibility organization shall create a governing board for the program and the voting members of the governing board shall be appointed as follows:
(A)The producer responsibility organization shall appoint eight voting members with at least one voting member who is a representative of the Carpet and Rug Institute.
(B)The Speaker of the Assembly shall appoint three voting members, one representing each of the following:
(i)An environmental organization that is involved in promoting recycling programs and the circular economy.
(ii)A retailer that sells covered products in California.
(iii)A labor representative from northern California who is from a floor covering joint apprenticeship program in California that is approved by the Division of Apprenticeship Standards.
(C)The President pro Tempore shall appoint three voting members, one representing each of the following:
(i)A collector or hauler who participates in the California producer responsibility program.
(ii)A recycler of carpet located in California.
(iii)A labor representative from southern California who is from a floor covering joint apprenticeship program in California that is approved by the Division of Apprenticeship Standards.
(2)A producer responsibility organization shall pay the travel costs and other expenses for the voting members identified in paragraph (1) to participate in all meetings of the governing board.
(3)The producer responsibility organization shall demonstrate in its producer responsibility plan 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.
(4)The activities of the producer responsibility organization are limited to carrying out the requirements of this chapter.
(b)In the event that the department determines that the producer responsibility organization no longer meets the requirements of this chapter or fails to implement or administer an approved producer responsibility plan in a manner that effectuates the purposes of this chapter, the department may revoke its approval of the producer responsibility plan pursuant to paragraph (1) of subdivision (c) of Section 42968.71, and may approve another producer responsibility plan.
(c)(1)Upon approval of a producer responsibility plan pursuant to Section 42968.30, a producer shall not sell, offer for sale, import, or distribute a covered product in the state unless all of the following are met:
(A)The producer is a participant of the producer responsibility organization.
(B)The covered product is accounted for in the producer responsibility plan.
(C)The department has approved the producer responsibility plan.
(2)If a person does not qualify as a producer and is not subject to this chapter before or upon approval of a producer responsibility plan, but after the approval of a producer responsibility plan the person meets the definition of a producer, then that person shall become a participant of the producer responsibility organization and comply with the requirements of this chapter prior to beginning to sell, offer for sale, import, or distribute covered products in the state.
(d)A producer not in compliance with this chapter is subject to penalties pursuant to this chapter if a covered product sold or offered for sale by the producer is not subject to a producer responsibility plan that has been approved by the department pursuant to Section 42968.30.
SEC. 5.Section 42968.23 of the Public Resources Code is amended to read:42968.23.(a)(1)The producer responsibility organization shall include as a collection site under its producer responsibility plan a solid waste facility that offers in writing to participate in the producer responsibility plan and agrees to comply with any program operator requirements that are consistent with the approved producer responsibility plan.
(2)The producer responsibility organization shall include the solid waste facility as a collection site within 90 days of receiving the written offer to participate, confirming that the offering entity will comply with any producer responsibility organization requirements that are consistent with an approved producer responsibility plan.
(3)The producer responsibility organization shall not be required to respond to offers pursuant to this subdivision until its producer responsibility plan has been approved by the department.
(b)The producer responsibility organization may suspend or terminate use of 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 producer responsibility organization pursuant to subdivision (h) of Section 42968.32.
(c)A participant of the producer responsibility organization with an approved producer responsibility plan shall comply with the requirements of this chapter. The producer responsibility organization shall notify the department within 30 calendar days of any the following:
(1)The end of any three-month period in which the producer responsibility organization unsuccessfully attempted to obtain a fee, records, or information from a participant producer, or received incomplete or incorrect records or information required by this chapter.
(2)The date a producer no longer participates in the producer responsibility organizations approved producer responsibility plan.
(3)Any instance of noncompliance by a participant producer.
SEC. 6.Section 42968.30 of the Public Resources Code is amended to read:42968.30.(a)Within 12 months of the effective date of the regulations adopted by the department pursuant to Section 42968.1, the producer responsibility organization shall develop and submit to the department a complete producer responsibility plan, in accordance with the requirements of this chapter, for the collection, transportation, recycling, and the safe and proper management of covered products in the state.
(b)The department shall review the producer responsibility plan for compliance with this chapter and may approve or disapprove the producer responsibility plan within 120 days of receipt of the producer responsibility plan.
(c)If the department disapproves a producer responsibility plan submitted by the producer responsibility organization, the department shall explain how the producer responsibility plan does not comply with this chapter and provide written notice to the producer responsibility organization within 60 days of disapproval. The producer responsibility organization may resubmit to the department a revised producer responsibility plan within 30 days of the date the written notice was issued, and the department shall review the revised producer responsibility plan within 60 days of its receipt of the resubmittal. The producer responsibility organization may resubmit to the department one additional revised producer responsibility plan within 30 days of the date the written notice was issued, and the department shall review the revised producer responsibility plan within 60 days of its receipt of the resubmittal. If the producer responsibility organization elects not to submit a revised producer responsibility plan or submits a revised plan that is disapproved, the disapproval is final and the producer responsibility organization and producers may be subject to penalties. Within 24 months of the effective date of the regulations adopted by the department pursuant to Section 42968.1, the producer responsibility organization shall have a complete producer responsibility plan approved by the department and each producer shall be subject to an approved producer responsibility plan to be in compliance with this chapter.
(d)The approved producer responsibility plan shall be a public record, except that financial or sales data reported to the department by the producer responsibility organization 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 to any other entity.
SEC. 7.Section 42968.32 of the Public Resources Code is amended to read:42968.32.A producer responsibility plan for covered products shall do all of the following:
(a)Be designed to accept and manage all postconsumer-covered products.
(b)Include the name and contact information of each producer and brand covered under the producer responsibility plan. The contact information shall include the producers email address, phone number, and mailing and physical address.
(c)Explain the producer responsibility organizations funding methods, and explain how those methods will fully fund the producer responsibility organization.
(d)(1)Include the fee required by Section 42968.51 and a description of how it is calculated.
(2)Include the fee required by Section 42968.52, a description of how it is calculated, and an explanation of how it complies with Section 42968.52.
(e)Include a five-year budget that establishes a funding level sufficient to operate the producer responsibility organization in a prudent and responsible manner. The budget shall demonstrate how estimated revenues will cover all budgeted costs for each cost category. Budgeted costs shall include, but not be limited to, administrative costs, education and outreach costs, operational costs, capital costs, and a reserve.
(1)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 are defined in the regulations adopted pursuant to Section 42968.1. For purposes of this paragraph, producer responsibility organization implementation begins once the department approves the producer responsibility organizations producer responsibility plan, except the departments costs shall include actual regulatory development costs and other startup costs incurred prior to producer responsibility plan submittal and approval.
(2)The reserve shall include funds to operate the producer responsibility organization should there be unexpected events, losses of income, or large unbudgeted expenses. It shall also protect the recycling infrastructure the producer responsibility organization relies on in its producer responsibility plan during any lapse in producer participation during the life of the program. The reserve cost category shall include a reserve level amount and description justifying the reserve level amount indicated. The producer responsibility organization shall maintain reserve funds sufficient to operate the producer responsibility plan for no less than six months. In the event that a new producer responsibility organization is approved by the department, the producer responsibility organization shall establish its reserve and maintain the required reserve fund balance by the end of the second year of producer responsibility plan operation. In the event that the producer responsibility organizations producer responsibility plan expires or is revoked, the reserve balance shall be transferred to a successor producer responsibility organization or a trustee, pursuant to subdivision (j).
(f)Include quantifiable five-year and annual performance standards and metrics for each covered product category until such time as the department publishes performance standards pursuant to Section 42968.34. The producer responsibility organization shall amend its producer responsibility 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 the Administrative Procedure Act (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 recycling.
(g)(1)Include provisions for all of the following:
(A)The ability for people to drop off, at no charge, postconsumer carpet at a collection site.
(B)The payment of a reasonable amount to the collection sites described in subparagraph (A) for accepting, collecting, storing, transporting, and handling of postconsumer carpet.
(C)Collection sites described in subparagraph (A) that are open at least 20 hours per week over at least four days per week. Collection sites described in subparagraph (A) shall be available on Saturdays, as follows:
(i)For a county with a population of 25,000 people or more, 25 percent of collection sites described in subparagraph (A) shall be open every Saturday.
(ii)For a county with a population of fewer than 25,000 people, at least two Saturdays each month.
(iii)If a county is part of a rural regional agency, as defined in Section 40183, then the counties of the regional agency shall count as one county to meet the requirement of one collection site described in subparagraph (A) site per county.
(D)Notwithstanding subparagraph (C), collection sites described in subparagraph (A) in a county with a population of fewer than 5,000 people shall only be required to meet the minimum hours described in subparagraph (C) or have Saturday operation at least two Saturdays a month.
(E)Collection sites in each county of the state that provide for a reasonable geographic spread of permanent collection sites and an explanation for the geographic spread.
(2)The department may by regulation adjust the minimum number of required collection sites described in subparagraph (A) of paragraph (1) to ensure that consumers have sufficient convenient access to collection sites, applicable to a producer responsibility plan addressing collection of covered products, if the department has substantial evidence that allowing for this adjustment will increase the collection of covered products or is otherwise justified considering the population or geographic attributes of the county. For counties bordering another state, the number of collection sites within that county may include a facility located in an adjacent state if that facility is regularly involved in the management of that countys solid waste and recyclables.
(h)Describe how collection sites will be authorized and managed, including all of the following:
(1)The process by which the producer responsibility organization will provide for the collection, storage, and transport of covered products from the collection sites to an authorized recycling facility.
(2)How the producer responsibility organization will ensure the cost-effective sorting of covered products using the best available technology to avoid any recyclable materials from being disposed.
(3)How the producer responsibility organization will maintain all collection and transport records and make them available to the department upon request.
(4)A list of all proposed rules, conditions, and requirements for authorized collectors, including a template proposed agreement.
(5)How the producer responsibility organization will maximize the recycling of covered products, including prioritizing reuse and closed loop recycling.
(6)How the producer responsibility organization will maximize the collection and reuse of convention carpet, including no less than 20 percent reuse by 2028.
(7)The process by which covered products will be managed following collection at collection sites, including:
(A)How covered products will be handled and managed according to the waste hierarchy as defined in Section 40051.
(B)How the producer responsibility organization will maximize the recycling of covered products.
(C)How the producer responsibility organization will minimize disposal of covered products collected by the producer responsibility organization.
(8)A description of the producer responsibility organizations annual assessment and the metrics it will use to determine how collection, sorting, and transportation outcomes aligned with projections.
(9)How the producer responsibility organization will improve the collection, processing, and recycling operations for covered products, including, but not limited to, pilot programs to test new processes, methods, or equipment.
(10)How collection sites will be operated to ensure that covered products are collected at no cost, safely, and handle covered product in accordance with all applicable state and federal law.
(i)(1)Describe the statewide education and outreach programs efforts to various audiences, including, but not limited to, consumers, commercial building owners, covered product installation contractors, construction and demolition contractors, retailers, and wholesalers to promote their participation in achieving the purposes of the producer responsibility plan. These education and outreach materials shall include, but are not limited to, any of the following:
(A)Signage that is prominently displayed and easily visible.
(B)Written materials and templates of materials to be provided to covered product installation contractors and consumers at the time of purchase or delivery or both.
(C)Promotional materials or activities, or both, that explain the purpose of the producer responsibility organization and the means by which it is being carried out.
(D)An internet website that publicizes the location of collection sites and provides information on how to drop off covered products at the free and convenient network of collection sites offered by the producer responsibility organization, including any information reasonably necessary to safely and conveniently access the collection and recycling services offered by the producer responsibility organization.
(E)All signage and materials required for collection sites by the producer responsibility organization, and a description of the method by which collection sites can access replacement materials at no cost to the collection site.
(F)A description of efforts to support participation by all California communities, including a description of efforts to communicate in languages other than English.
(G)A description of strategies, goals, and metrics used to determine the success of the producer responsibility plan implementation and statewide education and outreach program.
(2)The statewide education and outreach program shall promote the safe and proper management of covered products, including source reduction and environmentally preferable purchasing of covered products.
(3)The statewide education and outreach plan program shall include information for consumers about how to avoid improper disposal of covered products.
(4)The statewide education and outreach program shall include a survey to consumers and contractors regarding their awareness of the producer responsibility plan, their use of resources available to them under the producer responsibility plan, including collection sites, and why they do or do not use those resources. The survey shall occur once every three years.
(j)Include a contingency plan that takes effect in the event the producer responsibility 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 producer responsibility plan, subject to the direction of the department, until that time as a new producer responsibility plan is approved. Upon producer responsibility plan expiration or revocation of the producer responsibility plan, the balance of the producer responsibility organizations operating reserves collected pursuant to subdivision (d) shall be transferred to the control of the trustee within five calendar days, along with all documents, digital records, contracts, and files related to the operation of the producer responsibility plan.
(k)Allocate annual grants to apprenticeship programs for training apprentices and journey-level carpet installers in proper carpet recycling techniques, including installation and removal techniques that maximize the recyclability of carpet. The producer responsibility plan shall provide for annual grants to joint apprenticeship programs approved by the Division of Apprenticeship Standards to train carpet installers, with the amount divided evenly between programs in northern California and southern California.
(l)(1)Require the expenditure of assessments collected pursuant to Section 42968.52 to be used for activities that support the implementation of the producer responsibility plan in California.
(2)The program shall annually allocate two million dollars ($2,000,000), plus the cost-of-living adjustment pursuant to subparagraph (B) of paragraph (4), for grants to apprenticeship programs pursuant to subparagraph (A) of paragraph (4), subject to the requirements and conditions of this section. Any portion of these funds that are not awarded and used in a year shall be credited to the amount to be allocated or awarded in the following year pursuant to this section, thereby reducing the amount allocated or awarded in the following year by the amount of the credit.
(3)The apprenticeship program shall submit a report pursuant to subparagraph (E) of paragraph (4) to the producer responsibility organization and the department outlining its expenditure of the grant funds for purposes of this program prior to receipt of new grants.
(4)(A)Consistent with subdivision (e), commencing on January 1, 2027, and annually thereafter, the program shall allocate one million dollars ($1,000,000) to each apprenticeship program, as described in clauses (i) and (ii), operated by a labor organization in both of the following groupings of counties, subject to the requirements of this paragraph:
(i)An apprenticeship program that includes, but is not limited to, the Counties of Alameda, Contra Costa, Del Norte, Fresno, Humboldt, Kings, Lake, Madera, Marin, Mariposa, Mendocino, Merced, Monterey, Napa, San Benito, San Francisco, San Joaquin, San Mateo, Santa Clara, Santa Cruz, Solano, Sonoma, Stanislaus, and Tulare.
(ii)An apprenticeship program that includes, but is not limited to, the Counties of Imperial, Inyo, Kern, Los Angeles, Mono, Orange, Riverside, San Bernardino, San Diego, Santa Barbara, and Ventura.
(B)Commencing on January 1, 2028, and annually thereafter, the funding amounts shall be adjusted by the producer responsibility organization to reflect changes in the California Consumer Price Index, rounded to the nearest one thousand dollars ($1,000), not to exceed 3 percent in any year, subject to available funds.
(C)An application for funding shall be submitted on or before February 15 of each year. Funding shall be awarded on or before March 15 of each year, except that funding may be divided into two payments, with the second payment provided on or before July 1 of the year of the award.
(D)The producer responsibility organization may, at its sole discretion, authorize a one-time extension of up to three months solely to complete an apprenticeship program already underway. Any funds not expended within the extension period shall revert to the producer responsibility organization.
(E)Prior to receipt of any subsequent grant, each apprenticeship program receiving funding under this paragraph shall submit a report to the producer responsibility organization and the department outlining the expenditure of grant funds for purposes of this program. The report shall include all of the following:
(i)Total funds received and expended.
(ii)Utilization of funds, categorized by expense type, including receipts and invoices for preapproved supplies and equipment.
(iii)Number of individuals trained.
(iv)Demographic data, if required by the producer responsibility organization.
(v)Cost per trainee.
(vi)Program outcomes and performance metrics.
(vii)Any remaining unexpended funds.
(viii)Other information pertinent to the program.
(m)Provide for the payment to a collection site for accepting, collecting, storing, transporting, and handling covered products in an amount determined by the collection site and the producer responsibility organization. Payment of these costs shall be reflected in the budget pursuant to subdivision (e).
(n)Explain how producers will use standardized stamping or some other means to provide a visual mark on the back of a covered product that provides the name of the producer, the date of manufacture, and a listing of the types of face fibers and backing materials contained in the product. This requirement to implement standardized stamping or other means to provide a visual mark shall become operative six months after the effective date of the regulations adopted by the department pursuant to Section 42968.1 or July 1, 2028, whichever is later.
(o)Require carpet to contain 5 percent of postconsumer recycled carpet content by 2028. The department may, for the year 2029 and any year thereafter, set the rate for postconsumer recycled carpet to be required in carpet.
(p)Include written certification by an authorized representative of the producer responsibility organization that, at the time of submission to the department, the producer responsibility plan, including all aspects of the producer responsibility plan related to the collection, transportation, and management of covered products, is in compliance with all applicable state and federal laws and regulations.
SEC. 8.Section 42968.34 of the Public Resources Code is amended to read:42968.34.(a)The department may establish, review, and may adjust performance standards based on information included in the producer responsibility plan and annual reports, other information provided by the producer responsibility organization, department waste characterization studies, and economic and any other relevant information.
(b)Performance standards published by the department pursuant to this section shall not be subject to the requirements of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
SEC. 9.Section 42968.40 of the Public Resources Code is amended to read:42968.40.(a)(1)No later than January 1, 2029, a person that, as part of the installation of a covered product, removes a covered product from a residence or business shall transport, or contract to transport, all of the removed covered products to a collection site. Covered material collected at a collection site shall be transported to a recycling facility designated by the producer responsibility organization.
(2)Paragraph (1) does not apply to a covered product if all of the following are met:
(A)The covered product is returned to its producer.
(B)The producer collects, maintains, and provides to the producer responsibility organization, the information necessary for the collection to be included in the producer responsibility organizations performance metrics.
(C)The producers return process is subject to audit by the producer responsibility organization and the department.
(b)A collection site shall ensure that covered products are collected in the prescribed conditions required by the approved producer responsibility plan. The conditions shall include, but are not limited to, the following requirements:
(1)A covered product shall be kept in a location that allows it to remain dry at all times.
(2)A container holding a collected covered product shall be free of all contaminated discarded waste items.
(3)A collection site shall permit a processors prescribed container to be housed on site for loading and for pickup at the collection site, if the processor is approved by the producer responsibility plan.
SEC. 10.Section 42968.62 of the Public Resources Code is amended to read:42968.62.On or before September 1 of each year, the producer responsibility organization shall submit in the form and manner determined by the department an annual report and make the report publicly available on the producer responsibility organizations internet website. The report shall include all of the following information for the preceding calendar year:
(a)The producer responsibility organizations revenues and costs, with the costs according to the cost categories established in the producer responsibility plan.
(b)A summary of any anticipated changes to allocations in cost categories for the following calendar year.
(c)The square footage, yardage, weight, or other metric, as determined by the department, of covered products, by carpet type, for each of the following:
(1)Covered product that was collected.
(2)Covered product that was processed.
(3)Covered product that was recycled.
(4)Covered product that was disposed.
(d)A list of the producer responsibility organizations collection sites, by name, location, and type.
(e)An updated list of the names and contact information, including email address, phone number, and physical and mailing addresses of producers.
(f)A description of methods used to collect, transport, recycle, and divert covered products by the producer responsibility organization including a description of all of the following:
(1)How the producer responsibility organization handled and managed covered products according to the priority of waste management practices provided in Section 40051.
(2)How the producer responsibility organization maximized recycling of all covered products.
(3)How the producer responsibility organization minimized disposal of all covered products collected by the producer responsibility organization.
(4)Results of the producer responsibility organizations assessment of the efficacy of the collection, sorting, and transportation process pursuant to paragraph (8) of subdivision (h) of Section 42968.32.
(g)A description of how the producer responsibility organization improved the collection, processing, and recycling operations for covered products, including, but not limited to, pilot programs to test new processes, methods, or equipment.
(h)A description of outreach efforts and education, including, but not limited to, education and outreach provided by the producer responsibility organization for the purpose of promoting the collection, reuse, and recycling of covered products. This includes messaging on environmentally preferable purchasing.
(i)Findings from the evaluation of the comprehensive statewide education and outreach program required by subdivision (i) of Section 42968.32.
(j)A report on activities the producer responsibility organization 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.
(k)All of the following information related to grants and incentive payments provided by the producer responsibility organization pursuant to this chapter:
(1)The name and address of each recipient of a grant or incentive payment.
(2)The amount of each grant and incentive payment, with grant amounts broken down by category and by recipient.
(3)The number of applicants and recipients of a grant broken down by category.
(4)A detailed description of the criteria used to evaluate applications and to award the grants.
(5)A timeline of the process and a description of when applications were announced, the deadline to apply, the length of the review process, and the date the grants or incentive payments were awarded.
(6)An explanation of why certain recipients are chosen for incentive payments and others are not.
(7)A separate list identifying any grant or incentive payment provided to any of the following and an explanation as to why the grant or incentive payment does not involve a conflict of interest:
(A)A member of the producer responsibility organizations board of directors.
(B)A member of the governing board described in Section 42968.21.
(C)A family member or employee of a person described in subparagraph (A) or (B).
(l)A report on achievement of the performance standards required by subdivision (f) of Section 42968.32 and the progress toward meeting the performance standards. If the standards were not met, a description of efforts made along with a full description of the corrective actions taken to achieve the performance standards.
(m)Any other information deemed relevant by the producer responsibility organization for the department to determine compliance with the approved producer responsibility plan.
(n)Any other information required by regulations adopted pursuant to Section 42968.1.
SEC. 11.Section 42968.72 of the Public Resources Code is amended to read:42968.72.(a)If the producer responsibility organization knowingly or intentionally violates this chapter three or more times, the department may determine the producer responsibility organization permanently ineligible to act as the producer responsibility organization on behalf of producers to design, submit, and administer a producer responsibility plan pursuant to this chapter.
(b)If the producer responsibility organization becomes ineligible pursuant to subdivision (a), then the department may revoke approval of the producer responsibility organization pursuant to paragraph (1) of subdivision (c) of Section 42968.71.
SEC. 12.Section 42973.7 of the Public Resources Code is amended to read:42973.7.(a)The carpet stewardship organization shall create a governing board for the program and the voting members of the governing board shall be appointed as follows:
(1)The carpet stewardship organization shall appoint eight voting members with at least one voting member who is a representative of the Carpet and Rug Institute.
(2)The Speaker of the Assembly shall appoint three voting members, one representing each of the following:
(A)An environmental organization that is involved in promoting recycling programs and the circular economy.
(B)A retailer that sells covered products in California.
(C)A labor representative from northern California who is from a floor covering joint apprenticeship program in California that is approved by the Division of Apprenticeship Standards.
(3)The President pro Tempore of the Senate shall appoint three voting members, one representing each of the following:
(A)A collector or hauler who participates in the California carpet stewardship program.
(B)A recycler of carpet located in California.
(C)A labor representative from southern California who is from a floor covering joint apprenticeship program in California that is approved by the Division of Apprenticeship Standards.
(b)A carpet stewardship organization shall pay the travel costs and other expenses for the voting members identified in subdivision (a) to participate in all meetings of the governing board.
SEC. 13.Section 42976 of the Public Resources Code is amended to read:42976.On or before September 1 of each year, a manufacturer of carpet sold in the state shall, individually or through a carpet stewardship organization, submit to the department a report describing its activities to achieve the purposes of this chapter, as described in Section 42970, and to comply with Section 42975. At a minimum, the report shall include all of the following:
(a)The amount of carpet sold by square yards and weight, in the state during the reporting period. A carpet stewardship organization with more than one manufacturer may use average weight.
(b)The amount of postconsumer carpet recycled, by weight, during the reporting period.
(c)The amount of postconsumer carpet recovered but not recycled, by weight, and its ultimate disposition.
(d)The total cost of implementing the carpet stewardship plan.
(e)An evaluation of the effectiveness of the carpet stewardship plan, and anticipated steps, if needed, to improve performance.
(f)Examples of educational materials that were provided to consumers during the reporting period.
(g)All of the following information related to grants awarded by the carpet stewardship organization pursuant to this chapter:
(1)The name and address of each recipient of a grant or subsidy.
(2)The amount of each grant and subsidy, with grant amounts broken down by category and by recipient.
(3)The number of applicants and recipients of a grant broken down by category.
(4)A detailed description of the criteria used to evaluate applications and to award the grants.
(5)A timeline of the process and a description of when applications were announced, the deadline to apply, the length of the review process, and the date the grants and subsidies were awarded.
(6)An explanation of why certain recipients are chosen for grants and subsidies and others are not.
(7)A separate list identifying any grant or subsidy provided to any of the following and an explanation as to why the grant or subsidy does not involve a conflict of interest:
(A)A member of the carpet stewardship organizations board of directors.
(B)A member of the governing board described in Section 42973.7.
(C)A family member or employee of a person described in subparagraph (A) or (B).
SEC. 14.Section 42978 of the Public Resources Code is amended to read:42978.(a)An administrative 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)Twenty-five thousand dollars ($25,000) per day if the violation is intentional or knowing.
(b)In assessing or reviewing the amount of an administrative 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.
For purposes of this chapter, the following definitions apply:
(a)Apprenticeship program means a program approved by the Chief of the Division of Apprenticeship Standards for training apprentice and journey-level carpet installers in proper carpet installation, reuse, and recycling practices to maximize the chances of achieving the goals of the program.
(b)Authorized collector means a person or entity that has entered into an agreement with the producer responsibility organization to collect covered products.
(c)Brand means a name, symbol, word, or mark that identifies a covered product rather than its components, and attributes the covered product to the owner or licensee of the brand as the producer.
(d)(1)Carpet means a manufactured article that is used in commercial or residential buildings affixed or placed on the floor or building walking surface as a decorative or functional building interior feature and that is primarily constructed of a top visible surface of synthetic or natural face fibers or yarns or tufts attached to a backing system derived from synthetic or natural materials.
(2)Carpet includes, but is not limited to, a commercial or a residential broadloom carpet or modular carpet tiles.
(3)Carpet does not include a rug, pad, cushion, or underlayment used in conjunction with, or separately from, a carpet.
(e)Closed loop recycling means recycling in which products or materials are reclaimed and returned to the original process or processes in which they were generated and they are reused in the production process.
(f)Collection site means and includes, but is not limited to, a carpet recycling center, municipal facility that accepts carpet, retailer that sells a covered product, producers regional distribution center, or solid waste facility that has agreed to be a collection site for the producer responsibility organization, as described in Section 42968.23.
(g)Consumer means a purchaser, owner, or lessee of a covered product, including a person, business, corporation, limited partnership, nonprofit organization, or governmental entity.
(h)(1)Covered product means carpet.
(2)Covered product does not include carpet that meets the requirements in Section 42357 to be labeled compostable.
(i)Department means the Department of Resources Recycling and Recovery.
(j)Environmental nongovernmental organization means a nonprofit organization established to address environmental issues related to waste and recycling.
(k)Permanent collection site means a permanent location in the state where discarded covered product may be returned at no cost, by a consumer or another party on behalf of a consumer, to be reused, recycled, or otherwise managed.
(l)Postconsumer covered product means a covered product that is no longer used for its manufactured purpose.
(m)(1)Postconsumer recycled content means material derived from postconsumer covered product.
(2)Postconsumer recycled content does not include material derived from recycled beverage containers, as defined in Section 14505.
(n)Processor means a company that uses a process, including, but not limited to, shredding, grinding, sheering, or depolymerization, to convert discarded covered products into finished recycled output that is ready to be used as an input material for manufacturing products.
(o)(1)Producer means a person who manufactures a covered product and who sells, offers for sale, or distributes a covered product in or into the state under that persons own name or brand.
(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 or exclusive licensee of a brand or trademark under which the covered product is sold or distributed in or into the state, whether or not 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 party that imports the covered product into the state for sale, distribution, or installation.
(4)If there is no person in the state who is the producer for purposes of paragraph (1), (2), or (3), then the producer of the covered product is the distributor, wholesaler, or retailer who sells the product in or into the state.
(p)Producer responsibility organization means an organization that is exempt from taxation under Section 501(c)(3) of the United States Internal Revenue Code of 1986, is formed for the purpose of implementing a producer responsibility plan to meet the requirements of this chapter and is approved by the department pursuant to Section 42968.21.
(q)Producer responsibility plan means the plan developed by the producer responsibility organization that complies with Section 42968.32 and is submitted to the department for approval pursuant to Section 42968.30.
(r)(1)Recycle or recycling means the process of 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 that meet the quality standards necessary to be used in the marketplace.
(2)Recycle or recycling does not include any of the following:
(A)Combustion.
(B)Incineration.
(C)Energy generation.
(D)Fuel production, except for anaerobic digestion of source separated organic materials.
(E)Other forms of disposal.
(3)To be considered recycled, covered products shall be sent to a responsible end market.
(s)Retailer means a person who offers new covered products in a retail sale, as defined in Section 6007 of the Revenue and Taxation Code, including a retail sale through any means, including remote offerings such as sales outlets, catalogs, or an internet website, online marketplace, or other similar electronic means.
(t)(1)Sell or sale means a transfer of title of a covered product for consideration, including a remote sale conducted through a sales outlet, catalog, or internet website, online marketplace, or similar electronic means.
(2)Sell or sale includes a lease through which a covered product is provided to a consumer by a distributer, importer, manufacturer, retailer, wholesaler, or event carpet and flooring rental service.
(3)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.
(u)Solid waste facility means a solid waste facility, as defined in Section 40194, that accepts under its normal operating conditions covered materials for collection, storing, and handling, whether for recycling or disposal.
(v)Wholesaler means a person who offers new covered product for sale in this state in a sale that is not a retail sale, as defined in Section 6007 of the Revenue and Taxation Code, and in which the covered product is intended to be resold.
SEC. 2.Section 42968.1 of the Public Resources Code is amended to read:42968.1.The department shall adopt regulations to implement this chapter in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The regulations shall have an effective date no later than January 1, 2029.
SEC. 3.Section 42968.4 of the Public Resources Code is amended to read:42968.4.(a)Subject to subdivision (b), a producer shall publish on its internet website, for each of its covered products, the components that constitute more than 1 percent of the total composition of the product by weight and any intentionally added component that is listed by the Department of Toxic Substances Control as a Candidate Chemical pursuant to Section 69502.2 of Title 22 of the California Code of Regulations.
(b)Subdivision (a) does not require a producer to reveal a trade secret, as defined in Section 3426.1 of the Civil Code.
SEC. 4.Section 42968.21 of the Public Resources Code is amended to read:42968.21.(a)The department shall approve a producer responsibility organization if it meets the requirements of this chapter, including all of the following:
(1)The producer responsibility organization shall create a governing board for the program and the voting members of the governing board shall be appointed as follows:
(A)The producer responsibility organization shall appoint eight voting members with at least one voting member who is a representative of the Carpet and Rug Institute.
(B)The Speaker of the Assembly shall appoint three voting members, one representing each of the following:
(i)An environmental organization that is involved in promoting recycling programs and the circular economy.
(ii)A retailer that sells covered products in California.
(iii)A labor representative from northern California who is from a floor covering joint apprenticeship program in California that is approved by the Division of Apprenticeship Standards.
(C)The President pro Tempore shall appoint three voting members, one representing each of the following:
(i)A collector or hauler who participates in the California producer responsibility program.
(ii)A recycler of carpet located in California.
(iii)A labor representative from southern California who is from a floor covering joint apprenticeship program in California that is approved by the Division of Apprenticeship Standards.
(2)A producer responsibility organization shall pay the travel costs and other expenses for the voting members identified in paragraph (1) to participate in all meetings of the governing board.
(3)The producer responsibility organization shall demonstrate in its producer responsibility plan 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.
(4)The activities of the producer responsibility organization are limited to carrying out the requirements of this chapter.
(b)In the event that the department determines that the producer responsibility organization no longer meets the requirements of this chapter or fails to implement or administer an approved producer responsibility plan in a manner that effectuates the purposes of this chapter, the department may revoke its approval of the producer responsibility plan pursuant to paragraph (1) of subdivision (c) of Section 42968.71, and may approve another producer responsibility plan.
(c)(1)Upon approval of a producer responsibility plan pursuant to Section 42968.30, a producer shall not sell, offer for sale, import, or distribute a covered product in the state unless all of the following are met:
(A)The producer is a participant of the producer responsibility organization.
(B)The covered product is accounted for in the producer responsibility plan.
(C)The department has approved the producer responsibility plan.
(2)If a person does not qualify as a producer and is not subject to this chapter before or upon approval of a producer responsibility plan, but after the approval of a producer responsibility plan the person meets the definition of a producer, then that person shall become a participant of the producer responsibility organization and comply with the requirements of this chapter prior to beginning to sell, offer for sale, import, or distribute covered products in the state.
(d)A producer not in compliance with this chapter is subject to penalties pursuant to this chapter if a covered product sold or offered for sale by the producer is not subject to a producer responsibility plan that has been approved by the department pursuant to Section 42968.30.
SEC. 5.Section 42968.23 of the Public Resources Code is amended to read:42968.23.(a)(1)The producer responsibility organization shall include as a collection site under its producer responsibility plan a solid waste facility that offers in writing to participate in the producer responsibility plan and agrees to comply with any program operator requirements that are consistent with the approved producer responsibility plan.
(2)The producer responsibility organization shall include the solid waste facility as a collection site within 90 days of receiving the written offer to participate, confirming that the offering entity will comply with any producer responsibility organization requirements that are consistent with an approved producer responsibility plan.
(3)The producer responsibility organization shall not be required to respond to offers pursuant to this subdivision until its producer responsibility plan has been approved by the department.
(b)The producer responsibility organization may suspend or terminate use of 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 producer responsibility organization pursuant to subdivision (h) of Section 42968.32.
(c)A participant of the producer responsibility organization with an approved producer responsibility plan shall comply with the requirements of this chapter. The producer responsibility organization shall notify the department within 30 calendar days of any the following:
(1)The end of any three-month period in which the producer responsibility organization unsuccessfully attempted to obtain a fee, records, or information from a participant producer, or received incomplete or incorrect records or information required by this chapter.
(2)The date a producer no longer participates in the producer responsibility organizations approved producer responsibility plan.
(3)Any instance of noncompliance by a participant producer.
SEC. 6.Section 42968.30 of the Public Resources Code is amended to read:42968.30.(a)Within 12 months of the effective date of the regulations adopted by the department pursuant to Section 42968.1, the producer responsibility organization shall develop and submit to the department a complete producer responsibility plan, in accordance with the requirements of this chapter, for the collection, transportation, recycling, and the safe and proper management of covered products in the state.
(b)The department shall review the producer responsibility plan for compliance with this chapter and may approve or disapprove the producer responsibility plan within 120 days of receipt of the producer responsibility plan.
(c)If the department disapproves a producer responsibility plan submitted by the producer responsibility organization, the department shall explain how the producer responsibility plan does not comply with this chapter and provide written notice to the producer responsibility organization within 60 days of disapproval. The producer responsibility organization may resubmit to the department a revised producer responsibility plan within 30 days of the date the written notice was issued, and the department shall review the revised producer responsibility plan within 60 days of its receipt of the resubmittal. The producer responsibility organization may resubmit to the department one additional revised producer responsibility plan within 30 days of the date the written notice was issued, and the department shall review the revised producer responsibility plan within 60 days of its receipt of the resubmittal. If the producer responsibility organization elects not to submit a revised producer responsibility plan or submits a revised plan that is disapproved, the disapproval is final and the producer responsibility organization and producers may be subject to penalties. Within 24 months of the effective date of the regulations adopted by the department pursuant to Section 42968.1, the producer responsibility organization shall have a complete producer responsibility plan approved by the department and each producer shall be subject to an approved producer responsibility plan to be in compliance with this chapter.
(d)The approved producer responsibility plan shall be a public record, except that financial or sales data reported to the department by the producer responsibility organization 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 to any other entity.
SEC. 7.Section 42968.32 of the Public Resources Code is amended to read:42968.32.A producer responsibility plan for covered products shall do all of the following:
(a)Be designed to accept and manage all postconsumer-covered products.
(b)Include the name and contact information of each producer and brand covered under the producer responsibility plan. The contact information shall include the producers email address, phone number, and mailing and physical address.
(c)Explain the producer responsibility organizations funding methods, and explain how those methods will fully fund the producer responsibility organization.
(d)(1)Include the fee required by Section 42968.51 and a description of how it is calculated.
(2)Include the fee required by Section 42968.52, a description of how it is calculated, and an explanation of how it complies with Section 42968.52.
(e)Include a five-year budget that establishes a funding level sufficient to operate the producer responsibility organization in a prudent and responsible manner. The budget shall demonstrate how estimated revenues will cover all budgeted costs for each cost category. Budgeted costs shall include, but not be limited to, administrative costs, education and outreach costs, operational costs, capital costs, and a reserve.
(1)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 are defined in the regulations adopted pursuant to Section 42968.1. For purposes of this paragraph, producer responsibility organization implementation begins once the department approves the producer responsibility organizations producer responsibility plan, except the departments costs shall include actual regulatory development costs and other startup costs incurred prior to producer responsibility plan submittal and approval.
(2)The reserve shall include funds to operate the producer responsibility organization should there be unexpected events, losses of income, or large unbudgeted expenses. It shall also protect the recycling infrastructure the producer responsibility organization relies on in its producer responsibility plan during any lapse in producer participation during the life of the program. The reserve cost category shall include a reserve level amount and description justifying the reserve level amount indicated. The producer responsibility organization shall maintain reserve funds sufficient to operate the producer responsibility plan for no less than six months. In the event that a new producer responsibility organization is approved by the department, the producer responsibility organization shall establish its reserve and maintain the required reserve fund balance by the end of the second year of producer responsibility plan operation. In the event that the producer responsibility organizations producer responsibility plan expires or is revoked, the reserve balance shall be transferred to a successor producer responsibility organization or a trustee, pursuant to subdivision (j).
(f)Include quantifiable five-year and annual performance standards and metrics for each covered product category until such time as the department publishes performance standards pursuant to Section 42968.34. The producer responsibility organization shall amend its producer responsibility 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 the Administrative Procedure Act (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 recycling.
(g)(1)Include provisions for all of the following:
(A)The ability for people to drop off, at no charge, postconsumer carpet at a collection site.
(B)The payment of a reasonable amount to the collection sites described in subparagraph (A) for accepting, collecting, storing, transporting, and handling of postconsumer carpet.
(C)Collection sites described in subparagraph (A) that are open at least 20 hours per week over at least four days per week. Collection sites described in subparagraph (A) shall be available on Saturdays, as follows:
(i)For a county with a population of 25,000 people or more, 25 percent of collection sites described in subparagraph (A) shall be open every Saturday.
(ii)For a county with a population of fewer than 25,000 people, at least two Saturdays each month.
(iii)If a county is part of a rural regional agency, as defined in Section 40183, then the counties of the regional agency shall count as one county to meet the requirement of one collection site described in subparagraph (A) site per county.
(D)Notwithstanding subparagraph (C), collection sites described in subparagraph (A) in a county with a population of fewer than 5,000 people shall only be required to meet the minimum hours described in subparagraph (C) or have Saturday operation at least two Saturdays a month.
(E)Collection sites in each county of the state that provide for a reasonable geographic spread of permanent collection sites and an explanation for the geographic spread.
(2)The department may by regulation adjust the minimum number of required collection sites described in subparagraph (A) of paragraph (1) to ensure that consumers have sufficient convenient access to collection sites, applicable to a producer responsibility plan addressing collection of covered products, if the department has substantial evidence that allowing for this adjustment will increase the collection of covered products or is otherwise justified considering the population or geographic attributes of the county. For counties bordering another state, the number of collection sites within that county may include a facility located in an adjacent state if that facility is regularly involved in the management of that countys solid waste and recyclables.
(h)Describe how collection sites will be authorized and managed, including all of the following:
(1)The process by which the producer responsibility organization will provide for the collection, storage, and transport of covered products from the collection sites to an authorized recycling facility.
(2)How the producer responsibility organization will ensure the cost-effective sorting of covered products using the best available technology to avoid any recyclable materials from being disposed.
(3)How the producer responsibility organization will maintain all collection and transport records and make them available to the department upon request.
(4)A list of all proposed rules, conditions, and requirements for authorized collectors, including a template proposed agreement.
(5)How the producer responsibility organization will maximize the recycling of covered products, including prioritizing reuse and closed loop recycling.
(6)How the producer responsibility organization will maximize the collection and reuse of convention carpet, including no less than 20 percent reuse by 2028.
(7)The process by which covered products will be managed following collection at collection sites, including:
(A)How covered products will be handled and managed according to the waste hierarchy as defined in Section 40051.
(B)How the producer responsibility organization will maximize the recycling of covered products.
(C)How the producer responsibility organization will minimize disposal of covered products collected by the producer responsibility organization.
(8)A description of the producer responsibility organizations annual assessment and the metrics it will use to determine how collection, sorting, and transportation outcomes aligned with projections.
(9)How the producer responsibility organization will improve the collection, processing, and recycling operations for covered products, including, but not limited to, pilot programs to test new processes, methods, or equipment.
(10)How collection sites will be operated to ensure that covered products are collected at no cost, safely, and handle covered product in accordance with all applicable state and federal law.
(i)(1)Describe the statewide education and outreach programs efforts to various audiences, including, but not limited to, consumers, commercial building owners, covered product installation contractors, construction and demolition contractors, retailers, and wholesalers to promote their participation in achieving the purposes of the producer responsibility plan. These education and outreach materials shall include, but are not limited to, any of the following:
(A)Signage that is prominently displayed and easily visible.
(B)Written materials and templates of materials to be provided to covered product installation contractors and consumers at the time of purchase or delivery or both.
(C)Promotional materials or activities, or both, that explain the purpose of the producer responsibility organization and the means by which it is being carried out.
(D)An internet website that publicizes the location of collection sites and provides information on how to drop off covered products at the free and convenient network of collection sites offered by the producer responsibility organization, including any information reasonably necessary to safely and conveniently access the collection and recycling services offered by the producer responsibility organization.
(E)All signage and materials required for collection sites by the producer responsibility organization, and a description of the method by which collection sites can access replacement materials at no cost to the collection site.
(F)A description of efforts to support participation by all California communities, including a description of efforts to communicate in languages other than English.
(G)A description of strategies, goals, and metrics used to determine the success of the producer responsibility plan implementation and statewide education and outreach program.
(2)The statewide education and outreach program shall promote the safe and proper management of covered products, including source reduction and environmentally preferable purchasing of covered products.
(3)The statewide education and outreach plan program shall include information for consumers about how to avoid improper disposal of covered products.
(4)The statewide education and outreach program shall include a survey to consumers and contractors regarding their awareness of the producer responsibility plan, their use of resources available to them under the producer responsibility plan, including collection sites, and why they do or do not use those resources. The survey shall occur once every three years.
(j)Include a contingency plan that takes effect in the event the producer responsibility 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 producer responsibility plan, subject to the direction of the department, until that time as a new producer responsibility plan is approved. Upon producer responsibility plan expiration or revocation of the producer responsibility plan, the balance of the producer responsibility organizations operating reserves collected pursuant to subdivision (d) shall be transferred to the control of the trustee within five calendar days, along with all documents, digital records, contracts, and files related to the operation of the producer responsibility plan.
(k)Allocate annual grants to apprenticeship programs for training apprentices and journey-level carpet installers in proper carpet recycling techniques, including installation and removal techniques that maximize the recyclability of carpet. The producer responsibility plan shall provide for annual grants to joint apprenticeship programs approved by the Division of Apprenticeship Standards to train carpet installers, with the amount divided evenly between programs in northern California and southern California.
(l)(1)Require the expenditure of assessments collected pursuant to Section 42968.52 to be used for activities that support the implementation of the producer responsibility plan in California.
(2)The program shall annually allocate one two million dollars ($1,000,000), ($2,000,000), plus the cost-of-living adjustment pursuant to subparagraph (B) of paragraph (4), for grants to apprenticeship programs pursuant to subparagraph (A) of paragraph (4), subject to the requirements and conditions of this section. Any portion of these funds that are not awarded and used in a year shall be credited to the amount to be allocated or awarded in the following year pursuant to this section, thereby reducing the amount allocated or awarded in the following year by the amount of the credit.
(3)The apprenticeship program shall submit a report pursuant to subparagraph (E) of paragraph (4) to the producer responsibility organization and the department outlining its expenditure of the grant funds for purposes of this program prior to receipt of new grants.
(4)(A)Consistent with subdivision (e) of Section 42968.32, (e), commencing on January 1, 2027, and annually thereafter, the program shall allocate one million dollars ($1,000,000) divided between the following to each apprenticeship programs program, as described in clauses (i) and (ii), operated by a labor organization in both of the following groupings of counties, subject to the requirements of this paragraph:
(i)An apprenticeship program that includes, but is not limited to, the Counties of Alameda, Contra Costa, Del Norte, Fresno, Humboldt, Kings, Lake, Madera, Marin, Mariposa, Mendocino, Merced, Monterey, Napa, San Benito, San Francisco, San Joaquin, San Mateo, Santa Clara, Santa Cruz, Solano, Sonoma, Stanislaus, and Tulare.
(ii)An apprenticeship program that includes, but is not limited to, the Counties of Imperial, Inyo, Kern, Los Angeles, Mono, Orange, Riverside, San Bernardino, San Diego, Santa Barbara, and Ventura.
(B)Commencing on January 1, 2028, and annually thereafter, the funding amounts shall be adjusted by the producer responsibility organization to reflect changes in the California Consumer Price Index, rounded to the nearest one thousand dollars ($1,000), not to exceed 3 percent in any year, subject to available funds.
(C)An application for funding shall be submitted on or before February 15 of each year. Funding shall be awarded on or before March 15 of each year, except that funding may be divided into two payments, with the second payment provided on or before July 1 of the year of the award.
(D)The producer responsibility organization may, at its sole discretion, authorize a one-time extension of up to three months solely to complete an apprenticeship program already underway. Any funds not expended within the extension period shall revert to the producer responsibility organization.
(E)Prior to receipt of any subsequent grant, each apprenticeship program receiving funding under this paragraph shall submit a report to the producer responsibility organization and the department outlining the expenditure of grant funds for purposes of this program. The report shall include all of the following:
(i)Total funds received and expended.
(ii)Utilization of funds, categorized by expense type, including receipts and invoices for preapproved supplies and equipment.
(iii)Number of individuals trained.
(iv)Demographic data, if required by the producer responsibility organization.
(v)Cost per trainee.
(vi)Program outcomes and performance metrics.
(vii)Any remaining unexpended funds.
(viii)Other information pertinent to the program.
(m)Provide for the payment to a collection site for accepting, collecting, storing, transporting, and handling covered products in an amount determined by the collection site and the producer responsibility organization. Payment of these costs shall be reflected in the budget pursuant to subdivision (e).
(n)Explain how producers will use standardized stamping or some other means to provide a visual mark on the back of a covered product that provides the name of the producer, the date of manufacture, and a listing of the types of face fibers and backing materials contained in the product. This requirement to implement standardized stamping or other means to provide a visual mark shall become operative six months after the effective date of the regulations adopted by the department pursuant to Section 42968.1 or July 1, 2028, whichever is later.
(o)Require carpet to contain 5 percent of postconsumer recycled carpet content by 2028. The department may, for the year 2029 and any year thereafter, set the rate for postconsumer recycled carpet to be required in carpet.
(p)Include written certification by an authorized representative of the producer responsibility organization that, at the time of submission to the department, the producer responsibility plan, including all aspects of the producer responsibility plan related to the collection, transportation, and management of covered products, is in compliance with all applicable state and federal laws and regulations.
SEC. 8.Section 42968.34 of the Public Resources Code is amended to read:42968.34.(a)The department may establish, review, and may adjust performance standards based on information included in the producer responsibility plan and annual reports, other information provided by the producer responsibility organization, department waste characterization studies, and economic and any other relevant information.
(b)Performance standards published by the department pursuant to this section shall not be subject to the requirements of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
SEC. 9.Section 42968.40 of the Public Resources Code is amended to read:42968.40.(a)(1)No later than January 1, 2029, a person that, as part of the installation of a covered product, removes a covered product from a residence or business shall transport, or contract to transport, all of the removed covered products to a collection site. Covered material collected at a collection site shall be transported to a recycling facility designated by the producer responsibility organization.
(2)Paragraph (1) does not apply to a covered product if all of the following are met:
(A)The covered product is returned to its producer.
(B)The producer collects, maintains, and provides to the producer responsibility organization, the information necessary for the collection to be included in the producer responsibility organizations performance metrics.
(C)The producers return process is subject to audit by the producer responsibility organization and the department.
(b)A collection site shall ensure that covered products are collected in the prescribed conditions required by the approved producer responsibility plan. The conditions shall include, but are not limited to, the following requirements:
(1)A covered product shall be kept in a location that allows it to remain dry at all times.
(2)A container holding a collected covered product shall be free of all contaminated discarded waste items.
(3)A collection site shall permit a processors prescribed container to be housed on site for loading and for pickup at the collection site, if the processor is approved by the producer responsibility plan.
SEC. 10.Section 42968.62 of the Public Resources Code is amended to read:42968.62.On or before September 1 of each year, the producer responsibility organization shall submit in the form and manner determined by the department an annual report and make the report publicly available on the producer responsibility organizations internet website. The report shall include all of the following information for the preceding calendar year:
(a)The producer responsibility organizations revenues and costs, with the costs according to the cost categories established in the producer responsibility plan.
(b)A summary of any anticipated changes to allocations in cost categories for the following calendar year.
(c)The square footage, yardage, weight, or other metric, as determined by the department, of covered products, by carpet type, for each of the following:
(1)Covered product that was collected.
(2)Covered product that was processed.
(3)Covered product that was recycled.
(4)Covered product that was disposed.
(d)A list of the producer responsibility organizations collection sites, by name, location, and type.
(e)An updated list of the names and contact information, including email address, phone number, and physical and mailing addresses of producers.
(f)A description of methods used to collect, transport, recycle, and divert covered products by the producer responsibility organization including a description of all of the following:
(1)How the producer responsibility organization handled and managed covered products according to the priority of waste management practices provided in Section 40051.
(2)How the producer responsibility organization maximized recycling of all covered products.
(3)How the producer responsibility organization minimized disposal of all covered products collected by the producer responsibility organization.
(4)Results of the producer responsibility organizations assessment of the efficacy of the collection, sorting, and transportation process pursuant to paragraph (8) of subdivision (h) of Section 42968.32.
(g)A description of how the producer responsibility organization improved the collection, processing, and recycling operations for covered products, including, but not limited to, pilot programs to test new processes, methods, or equipment.
(h)A description of outreach efforts and education, including, but not limited to, education and outreach provided by the producer responsibility organization for the purpose of promoting the collection, reuse, and recycling of covered products. This includes messaging on environmentally preferable purchasing.
(i)Findings from the evaluation of the comprehensive statewide education and outreach program required by subdivision (i) of Section 42968.32.
(j)A report on activities the producer responsibility organization 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.
(k)All of the following information related to grants and incentive payments provided by the producer responsibility organization pursuant to this chapter:
(1)The name and address of each recipient of a grant or incentive payment.
(2)The amount of each grant and incentive payment, with grant amounts broken down by category and by recipient.
(3)The number of applicants and recipients of a grant broken down by category.
(4)A detailed description of the criteria used to evaluate applications and to award the grants.
(5)A timeline of the process and a description of when applications were announced, the deadline to apply, the length of the review process, and the date the grants or incentive payments were awarded.
(6)An explanation of why certain recipients are chosen for incentive payments and others are not.
(7)A separate list identifying any grant or incentive payment provided to any of the following and an explanation as to why the grant or incentive payment does not involve a conflict of interest:
(A)A member of the producer responsibility organizations board of directors.
(B)A member of the governing board described in Section 42968.21.
(C)A family member or employee of a person described in subparagraph (A) or (B).
(l)A report on achievement of the performance standards required by subdivision (f) of Section 42968.32 and the progress toward meeting the performance standards. If the standards were not met, a description of efforts made along with a full description of the corrective actions taken to achieve the performance standards.
(m)Any other information deemed relevant by the producer responsibility organization for the department to determine compliance with the approved producer responsibility plan.
(n)Any other information required by regulations adopted pursuant to Section 42968.1.
SEC. 11.Section 42968.72 of the Public Resources Code is amended to read:42968.72.(a)If the department disapproves a producer responsibility organizations annual report, or determines the producer responsibility organization has violated knowingly or intentionally violates this chapter, chapter three or more times, the department may determine the producer responsibility organization permanently ineligible to act as the producer responsibility organization on behalf of producers to design, submit, and administer a producer responsibility plan pursuant to this chapter.
(b)There is a rebuttable presumption that any violation of a statute or regulation, or any missed goal, during a reporting period following a reporting period in which the same statute, regulation, or goal was the basis for a violation, is knowing or intentional for purposes of this section and Section 42978.(c)(b)If the producer responsibility organization becomes ineligible pursuant to subdivision (a), then the department may revoke approval of the producer responsibility organization pursuant to paragraph (1) of subdivision (c) of Section 42968.71.
SEC. 12.Section 42973.7 of the Public Resources Code is amended to read:42973.7.(a)The carpet stewardship organization shall create a governing board for the program and the voting members of the governing board shall be appointed as follows:
(1)The carpet stewardship organization shall appoint eight voting members with at least one voting member who is a representative of the Carpet and Rug Institute.
(2)The Speaker of the Assembly shall appoint three voting members, one representing each of the following:
(A)An environmental organization that is involved in promoting recycling programs and the circular economy.
(B)A retailer that sells covered products in California.
(C)A labor representative from northern California who is from a floor covering joint apprenticeship program in California that is approved by the Division of Apprenticeship Standards.
(3)The President pro Tempore of the Senate shall appoint three voting members, one representing each of the following:
(A)A collector or hauler who participates in the California carpet stewardship program.
(B)A recycler of carpet located in California.
(C)A labor representative from southern California who is from a floor covering joint apprenticeship program in California that is approved by the Division of Apprenticeship Standards.
(b)A carpet stewardship organization shall pay the travel costs and other expenses for the voting members identified in subdivision (a) to participate in all meetings of the governing board.
SEC. 13.Section 42976 of the Public Resources Code is amended to read:42976.On or before September 1 of each year, a manufacturer of carpet sold in the state shall, individually or through a carpet stewardship organization, submit to the department a report describing its activities to achieve the purposes of this chapter, as described in Section 42970, and to comply with Section 42975. At a minimum, the report shall include all of the following:
(a)The amount of carpet sold by square yards and weight, in the state during the reporting period. A carpet stewardship organization with more than one manufacturer may use average weight.
(b)The amount of postconsumer carpet recycled, by weight, during the reporting period.
(c)The amount of postconsumer carpet recovered but not recycled, by weight, and its ultimate disposition.
(d)The total cost of implementing the carpet stewardship plan.
(e)An evaluation of the effectiveness of the carpet stewardship plan, and anticipated steps, if needed, to improve performance.
(f)Examples of educational materials that were provided to consumers during the reporting period.
(g)All of the following information related to grants awarded by the carpet stewardship organization pursuant to this chapter:
(1)The name and address of each recipient of a grant or subsidy.
(2)The amount of each grant and subsidy, with grant amounts broken down by category and by recipient.
(3)The number of applicants and recipients of a grant broken down by category.
(4)A detailed description of the criteria used to evaluate applications and to award the grants.
(5)A timeline of the process and a description of when applications were announced, the deadline to apply, the length of the review process, and the date the grants and subsidies were awarded.
(6)An explanation of why certain recipients are chosen for grants and subsidies and others are not.
(7)A separate list identifying any grant or subsidy provided to any of the following and an explanation as to why the grant or subsidy does not involve a conflict of interest:
(A)A member of the carpet stewardship organizations board of directors.
(B)A member of the governing board described in Section 42973.7.
(C)A family member or employee of a person described in subparagraph (A) or (B).
SEC. 14.Section 42978 of the Public Resources Code is amended to read:42978.(a)An administrative 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)Twenty-five thousand dollars ($25,000) per day if the violation is intentional or knowing.
(b)In assessing or reviewing the amount of an administrative 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.
For purposes of this chapter, the following definitions apply:
(a)Apprenticeship program means a program approved by the Chief of the Division of Apprenticeship Standards for training apprentice and journey-level carpet installers in proper carpet installation, reuse, and recycling practices to maximize the chances of achieving the goals of the program.
(b)Authorized collector means a person or entity that has entered into an agreement with the producer responsibility organization to collect covered products.
(c)Brand means a name, symbol, word, or mark that identifies a covered product rather than its components, and attributes the covered product to the owner or licensee of the brand as the producer.
(d)(1)Carpet means a manufactured article that is used in commercial or residential buildings affixed or placed on the floor or building walking surface as a decorative or functional building interior feature and that is primarily constructed of a top visible surface of synthetic or natural face fibers or yarns or tufts attached to a backing system derived from synthetic or natural materials.
(2)Carpet includes, but is not limited to, a commercial or a residential broadloom carpet or modular carpet tiles.
(3)Carpet does not include a rug, pad, cushion, or underlayment used in conjunction with, or separately from, a carpet.
(e)Closed loop recycling means recycling in which products or materials are reclaimed and returned to the original process or processes in which they were generated and they are reused in the production process.
(f)Collection site means and includes, but is not limited to, a carpet recycling center, municipal facility that accepts carpet, retailer that sells a covered product, producers regional distribution center, or solid waste facility that has agreed to be a collection site for the producer responsibility organization, as described in Section 42968.23.
(g)Consumer means a purchaser, owner, or lessee of a covered product, including a person, business, corporation, limited partnership, nonprofit organization, or governmental entity.
(h)(1)Covered product means carpet.
(2)Covered product does not include carpet that meets the requirements in Section 42357 to be labeled compostable.
(i)Department means the Department of Resources Recycling and Recovery.
(j)Environmental nongovernmental organization means a nonprofit organization established to address environmental issues related to waste and recycling.
(k)Permanent collection site means a permanent location in the state where discarded covered product may be returned at no cost, by a consumer or another party on behalf of a consumer, to be reused, recycled, or otherwise managed.
(l)Postconsumer covered product means a covered product that is no longer used for its manufactured purpose.
(m)(1)Postconsumer recycled content means material derived from postconsumer covered product.
(2)Postconsumer recycled content does not include material derived from recycled beverage containers, as defined in Section 14505.
(n)Processor means a company that uses a process, including, but not limited to, shredding, grinding, sheering, or depolymerization, to convert discarded covered products into finished recycled output that is ready to be used as an input material for manufacturing products.
(o)(1)Producer means a person who manufactures a covered product and who sells, offers for sale, or distributes a covered product in or into the state under that persons own name or brand.
(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 or exclusive licensee of a brand or trademark under which the covered product is sold or distributed in or into the state, whether or not 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 party that imports the covered product into the state for sale, distribution, or installation.
(4)If there is no person in the state who is the producer for purposes of paragraph (1), (2), or (3), then the producer of the covered product is the distributor, wholesaler, or retailer who sells the product in or into the state.
(p)Producer responsibility organization means an organization that is exempt from taxation under Section 501(c)(3) of the United States Internal Revenue Code of 1986, is formed for the purpose of implementing a producer responsibility plan to meet the requirements of this chapter and is approved by the department pursuant to Section 42968.21.
(q)Producer responsibility plan means the plan developed by the producer responsibility organization that complies with Section 42968.32 and is submitted to the department for approval pursuant to Section 42968.30.
(r)(1)Recycle or recycling means the process of 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 that meet the quality standards necessary to be used in the marketplace.
(2)Recycle or recycling does not include any of the following:
(A)Combustion.
(B)Incineration.
(C)Energy generation.
(D)Fuel production, except for anaerobic digestion of source separated organic materials.
(E)Other forms of disposal.
(3)To be considered recycled, covered products shall be sent to a responsible end market.
(s)Retailer means a person who offers new covered products in a retail sale, as defined in Section 6007 of the Revenue and Taxation Code, including a retail sale through any means, including remote offerings such as sales outlets, catalogs, or an internet website, online marketplace, or other similar electronic means.
(t)(1)Sell or sale means a transfer of title of a covered product for consideration, including a remote sale conducted through a sales outlet, catalog, or internet website, online marketplace, or similar electronic means.
(2)Sell or sale includes a lease through which a covered product is provided to a consumer by a distributer, importer, manufacturer, retailer, wholesaler, or event carpet and flooring rental service.
(3)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.
(u)Solid waste facility means a solid waste facility, as defined in Section 40194, that accepts under its normal operating conditions covered materials for collection, storing, and handling, whether for recycling or disposal.
(v)Wholesaler means a person who offers new covered product for sale in this state in a sale that is not a retail sale, as defined in Section 6007 of the Revenue and Taxation Code, and in which the covered product is intended to be resold.
SEC. 2.Section 42968.1 of the Public Resources Code is amended to read:42968.1.The department shall adopt regulations to implement this chapter in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The regulations shall have an effective date no later than January 1, 2028. 2029.
SEC. 3.Section 42968.4 of the Public Resources Code is amended to read:42968.4.(a)Subject to subdivision (b), a producer shall publish on its internet website, for each of its covered products, the components that constitute more than 1 percent of the total composition of the product by weight and any intentionally added component that is listed by the Department of Toxic Substances Control as a Candidate Chemical pursuant to Section 69502.2 of Title 22 of the California Code of Regulations.
(b)Subdivision (a) does not require a producer to reveal a trade secret, as defined in Section 3426.1 of the Civil Code.
SEC. 4.Section 42968.21 of the Public Resources Code is amended to read:42968.21.(a)The department shall approve a producer responsibility organization if it meets the requirements of this chapter, including all of the following:
(1)The producer responsibility organization shall create a governing board for the program and the voting members of the governing board shall be appointed as follows:
(A)The producer responsibility organization shall appoint eight voting members with at least one voting member who is a representative of the Carpet and Rug Institute.
(B)The Speaker of the Assembly shall appoint three voting members, one representing each of the following:
(i)An environmental organization that is involved in promoting recycling programs and the circular economy.
(ii)A retailer that sells covered products in California.
(iii)A labor representative from northern California who is from a floor covering joint apprenticeship program in California that is approved by the Division of Apprenticeship Standards.
(C)The President pro Tempore shall appoint three voting members, one representing each of the following:
(i)A collector or hauler who participates in the California producer responsibility program.
(ii)A recycler of carpet located in California.
(iii)A labor representative from southern California who is from a floor covering joint apprenticeship program in California that is approved by the Division of Apprenticeship Standards.
(2)A producer responsibility organization shall pay the travel costs and other expenses for the voting members identified in paragraph (1) to participate in all meetings of the governing board.
(3)The producer responsibility organization shall demonstrate in its producer responsibility plan 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.
(4)The activities of the producer responsibility organization are limited to carrying out the requirements of this chapter.
(b)In the event that the department determines that the producer responsibility organization no longer meets the requirements of this chapter or fails to implement or administer an approved producer responsibility plan in a manner that effectuates the purposes of this chapter, the department may revoke its approval of the producer responsibility plan pursuant to paragraph (1) of subdivision (c) of Section 42968.71, and may approve another producer responsibility plan.
(c)(1)Upon approval of a producer responsibility plan pursuant to Section 42968.30, a producer shall not sell, offer for sale, import, or distribute a covered product in the state unless all of the following are met:
(A)The producer is a participant of the producer responsibility organization.
(B)The covered product is accounted for in the producer responsibility plan.
(C)The department has approved the producer responsibility plan.
(2)If a person does not qualify as a producer and is not subject to this chapter before or upon approval of a producer responsibility plan, but after the approval of a producer responsibility plan the person meets the definition of a producer, then that person shall become a participant of the producer responsibility organization and comply with the requirements of this chapter prior to beginning to sell, offer for sale, import, or distribute covered products in the state.
(d)A producer not in compliance with this chapter is subject to penalties pursuant to this chapter if a covered product sold or offered for sale by the producer is not subject to a producer responsibility plan that has been approved by the department pursuant to Section 42968.30.
SEC. 5.Section 42968.23 of the Public Resources Code is amended to read:42968.23.(a)(1)The producer responsibility organization shall include as a collection site under its producer responsibility plan a solid waste facility that offers in writing to participate in the producer responsibility plan and agrees to comply with any program operator requirements that are consistent with the approved producer responsibility plan.
(2)The producer responsibility organization shall include the solid waste facility as a collection site within 90 days of receiving the written offer to participate, confirming that the offering entity will comply with any producer responsibility organization requirements that are consistent with an approved producer responsibility plan.
(3)The producer responsibility organization shall not be required to respond to offers pursuant to this subdivision until its producer responsibility plan has been approved by the department.
(b)The producer responsibility organization may suspend or terminate use of 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 producer responsibility organization pursuant to subdivision (h) of Section 42968.32.
(c)A participant of the producer responsibility organization with an approved producer responsibility plan shall comply with the requirements of this chapter. The producer responsibility organization shall notify the department within 30 calendar days of any the following:
(1)The end of any three-month period in which the producer responsibility organization unsuccessfully attempted to obtain a fee, records, or information from a participant producer, or received incomplete or incorrect records or information required by this chapter.
(2)The date a producer no longer participates in the producer responsibility organizations approved producer responsibility plan.
(3)Any instance of noncompliance by a participant producer.
SEC. 6.Section 42968.30 of the Public Resources Code is amended to read:42968.30.(a)Within 12 months of the effective date of the regulations adopted by the department pursuant to Section 42968.1, the producer responsibility organization shall develop and submit to the department a complete producer responsibility plan, in accordance with the requirements of this chapter, for the collection, transportation, recycling, and the safe and proper management of covered products in the state.
(b)(1)The department shall review the producer responsibility plan for compliance with this chapter and may approve or disapprove the producer responsibility plan within 120 days of receipt of the producer responsibility plan.
(2)If the department disapproves a revised producer responsibility plan, the department shall explain how the revised producer responsibility plan does not comply with this chapter and provide written notice to the producer responsibility organization within 60 days of disapproval.(c)If the department disapproves a producer responsibility plan submitted by the producer responsibility organization, the department shall explain how the producer responsibility plan does not comply with this chapter and provide written notice to the producer responsibility organization within 60 days of disapproval. The producer responsibility organization may resubmit to the department a revised producer responsibility plan within 30 days of the date the written notice was issued, and the department shall review the revised producer responsibility plan within 60 days of its receipt of the resubmittal. The producer responsibility organization shall then revise and may resubmit to the department one additional revised producer responsibility plan consistent with the departments direction within 30 days, otherwise days of the date the written notice was issued, and the department shall review the revised producer responsibility plan within 60 days of its receipt of the resubmittal. If the producer responsibility organization elects not to submit a revised producer responsibility plan or submits a revised plan that is disapproved, the disapproval is final and the producer responsibility organization and producers may be subject to penalties. Within 24 months of the effective date of the regulations adopted by the department pursuant to Section 42968.1, the producer responsibility organization shall have a complete producer responsibility plan approved by the department and each producer shall be subject to an approved producer responsibility plan to be in compliance with this chapter.
(d)The approved producer responsibility plan shall be a public record, except that financial or sales data reported to the department by the producer responsibility organization 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 to any other entity.
SEC. 7.Section 42968.32 of the Public Resources Code is amended to read:42968.32.A producer responsibility plan for covered products shall do all of the following:
(a)Be designed to accept and manage all postconsumer-covered products.
(b)Include the name and contact information of each producer and brand covered under the producer responsibility plan. The contact information shall include the producers email address, phone number, and mailing and physical address.
(c)Explain the producer responsibility organizations funding methods, and explain how those methods will fully fund the producer responsibility organization.
(d)(1)Include the fee required by Section 42968.51 and a description of how it is calculated.
(2)Include the fee required by Section 42968.52, a description of how it is calculated, and an explanation of how it complies with Section 42968.52.
(e)Include a five-year budget that establishes a funding level sufficient to operate the producer responsibility organization in a prudent and responsible manner. The budget shall demonstrate how estimated revenues will cover all budgeted costs for each cost category. Budgeted costs shall include, but not be limited to, administrative costs, education and outreach costs, operational costs, capital costs, and a reserve.
(1)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 are defined in the regulations adopted pursuant to Section 42968.1. For purposes of this paragraph, producer responsibility organization implementation begins once the department approves the producer responsibility organizations producer responsibility plan, except the departments costs shall include actual regulatory development costs and other startup costs incurred prior to producer responsibility plan submittal and approval.
(2)The reserve shall include funds to operate the producer responsibility organization should there be unexpected events, losses of income, or large unbudgeted expenses. It shall also protect the recycling infrastructure the producer responsibility organization relies on in its producer responsibility plan during any lapse in producer participation during the life of the program. The reserve cost category shall include a reserve level amount and description justifying the reserve level amount indicated. The producer responsibility organization shall maintain reserve funds sufficient to operate the producer responsibility plan for no less than six months. In the event that a new producer responsibility organization is approved by the department, the producer responsibility organization shall establish its reserve and maintain the required reserve fund balance by the end of the second year of producer responsibility plan operation. In the event that the producer responsibility organizations producer responsibility plan expires or is revoked, the reserve balance shall be transferred to a successor producer responsibility organization or a trustee, pursuant to subdivision (j).
(f)Include quantifiable five-year and annual performance standards and metrics for each covered product category until such time as the department publishes performance standards pursuant to Section 42968.34. The producer responsibility organization shall amend its producer responsibility 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 the Administrative Procedure Act (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 recycling.
(g)(1)Include provisions for all of the following:
(A)The ability for people to drop off, at no charge, postconsumer carpet at a recycler, carpet recycling center, permitted solid waste facility, a collection location approved by the producer responsibility organization, or other municipal facility that accepts carpet. site.
(B)The payment of a reasonable amount to the facilities collection sites described in subparagraph (A) for accepting, collecting, storing, transporting, and handling of postconsumer carpet.
(C)Facilities Collection sites described in subparagraph (A) that are open at least 20 hours per week over at least four days per week. Facilities Collection sites described in subparagraph (A) shall be available on Saturdays, as follows:
(i)For a county with a population of 25,000 people or more, 25 percent of facilities collection sites described in subparagraph (A) shall be open every Saturday.
(ii)For a county with a population of fewer than 25,000 people, at least two Saturdays each month.
(iii)If a county is part of a rural regional agency, as defined in Section 40181, 40183, then the counties of the regional agency shall count as one county to meet the requirement of one facility collection site described in subparagraph (A) site per county.
(D)Notwithstanding subparagraph (C), facilities collection sites described in subparagraph (A) in a county with a population of fewer than 5,000 people shall only be required to meet the minimum hours described in subparagraph (C) or have Saturday operation at least two Saturdays a month.
(E)Collection sites in each county of the state that provide for a reasonable geographic spread of permanent collection sites and an explanation for the geographic spread.
(2)The department may by regulation adjust the minimum number of required collection sites described in subparagraph (A) of paragraph (1) to ensure that consumers have sufficient convenient access to collection sites, applicable to a producer responsibility plan addressing collection of covered products, if the department has substantial evidence that allowing for this adjustment will increase the collection of covered products or is otherwise justified considering the population or geographic attributes of the county. For counties bordering another state, the number of collection sites within that county may include a facility located in an adjacent state if that facility is regularly involved in the management of that countys solid waste and recyclables.
(h)Describe how collection sites will be authorized and managed, including all of the following:
(1)The process by which the producer responsibility organization will provide for the collection, storage, and transport of covered products from the collection sites to an authorized recycling facility.
(2)How the producer responsibility organization will ensure the cost-effective sorting of covered products using the best available technology to avoid any recyclable materials from being disposed.
(3)How the producer responsibility organization will maintain all collection and transport records and make them available to the department upon request.
(4)A list of all proposed rules, conditions, and requirements for authorized collectors, including a template proposed agreement.
(5)How the producer responsibility organization will maximize the recycling of covered products, including prioritizing reuse and closed loop recycling.
(6)How the producer responsibility organization will maximize the collection and reuse of convention carpet, including no less than 20 percent reuse by 2028.
(7)The process by which covered products will be managed following collection at collection sites, including:
(A)How covered products will be handled and managed according to the waste hierarchy as defined in Section 40051.
(B)How the producer responsibility organization will maximize the recycling of covered products.
(C)How the producer responsibility organization will minimize disposal of covered products collected by the producer responsibility organization.
(8)A description of the producer responsibility organizations annual assessment and the metrics it will use to determine how collection, sorting, and transportation outcomes aligned with projections.
(9)How the producer responsibility organization will improve the collection, processing, and recycling operations for covered products, including, but not limited to, pilot programs to test new processes, methods, or equipment.
(10)How collection sites will be operated to ensure that covered products are collected at no cost, safely, and handle covered product in accordance with all applicable state and federal law.
(i)(1)Describe the statewide education and outreach programs efforts to various audiences, including, but not limited to, consumers, commercial building owners, covered product installation contractors, construction and demolition contractors, retailers, and wholesalers to promote their participation in achieving the purposes of the producer responsibility plan. These education and outreach materials shall include, but are not limited to, any of the following:
(A)Signage that is prominently displayed and easily visible.
(B)Written materials and templates of materials to be provided to covered product installation contractors and consumers at the time of purchase or delivery or both.
(C)Promotional materials or activities, or both, that explain the purpose of the producer responsibility organization and the means by which it is being carried out.
(D)An internet website that publicizes the location of collection sites and provides information on how to drop off covered products at the free and convenient network of collection sites offered by the producer responsibility organization, including any information reasonably necessary to safely and conveniently access the collection and recycling services offered by the producer responsibility organization.
(E)All signage and materials required for collection sites by the producer responsibility organization, and a description of the method by which collection sites can access replacement materials at no cost to the collection site.
(F)A description of efforts to support participation by all California communities, including a description of efforts to communicate in languages other than English.
(G)A description of strategies, goals, and metrics used to determine the success of the producer responsibility plan implementation and statewide education and outreach program.
(2)The statewide education and outreach program shall promote the safe and proper management of covered products, including source reduction and environmentally preferable purchasing of covered products.
(3)The statewide education and outreach plan program shall include information for consumers about how to avoid improper disposal of covered products.
(4)The statewide education and outreach program shall include a survey to consumers and contractors regarding their awareness of the producer responsibility plan, their use of resources available to them under the producer responsibility plan, including collection sites, and why they do or do not use those resources. The survey shall occur once every three years.
(j)Include a contingency plan that takes effect in the event the producer responsibility 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 producer responsibility plan, subject to the direction of the department, until that time as a new producer responsibility plan is approved. Upon producer responsibility plan expiration or revocation of the producer responsibility plan, the balance of the producer responsibility organizations operating reserves collected pursuant to subdivision (d) shall be transferred to the control of the trustee within five calendar days, along with all documents, digital records, contracts, and files related to the operation of the producer responsibility plan.
(k)Allocate annual grants to apprenticeship programs for training apprentices and journey-level carpet installers in proper carpet recycling techniques, including installation and removal techniques that maximize the recyclability of carpet. The producer responsibility plan shall provide for annual grants to joint apprenticeship programs approved by the Division of Apprenticeship Standards to train carpet installers, with the amount divided evenly between programs in northern California and southern California.
(l)(1)Prioritize Require the expenditure of assessments collected pursuant to Section 42968.52 on to be used for activities to carry out that support the implementation of the producer responsibility plan in California.
(2)The program shall annually allocate one million dollars ($1,000,000), plus the cost-of-living adjustment pursuant to subparagraph (B) of paragraph (4), for grants to apprenticeship programs pursuant to subparagraph (A) of paragraph (4), subject to the requirements and conditions of this section. Any portion of these funds that are not awarded and used in a year shall be credited to the amount to be allocated or awarded in the following year pursuant to this section, thereby reducing the amount allocated or awarded in the following year by the amount of the credit.
(3)The apprenticeship program shall submit a report pursuant to subparagraph (E) of paragraph (4) to the producer responsibility organization and the department outlining its expenditure of the grant funds for purposes of this program prior to receipt of new grants.
(4)(A)Consistent with subparagraph (A) of paragraph (4) of subdivision (a) (e) of Section 42972, 42968.32, commencing on January 1, 2027, and annually thereafter, the program shall allocate one million dollars ($1,000,000) to an divided between the following apprenticeship program programs operated by a labor organization in both of the following groupings of counties, subject to the requirements of this paragraph:
(i)An apprenticeship program that includes, but is not limited to, the Counties of Alameda, Contra Costa, Del Norte, Fresno, Humboldt, Kings, Lake, Madera, Marin, Mariposa, Mendocino, Merced, Monterey, Napa, San Benito, San Francisco, San Joaquin, San Mateo, Santa Clara, Santa Cruz, Solano, Sonoma, Stanislaus, and Tulare.
(ii)An apprenticeship program that includes, but is not limited to, the Counties of Imperial, Inyo, Kern, Kings, Los Angeles, Mono, Mono, Orange, Riverside, San Bernardino, San Diego, Santa Barbara, Tulare, and Ventura.
(B)Commencing on January 1, 2028, and annually thereafter, the funding amounts shall be adjusted by the producer responsibility organization to reflect changes in the California Consumer Price Index, rounded to the nearest one thousand dollars ($1,000), not to exceed 3 percent in any year, subject to available funds.
(C)An application for funding shall be submitted on or before February 15 of each year. Grants Funding shall be awarded on or before March 15 of each year, except that grants funding may be divided into two payments, with the second payment provided on or before July 1 of the year of the award.
(D)The producer responsibility organization may, at its sole discretion, authorize a one-time extension of up to three months solely to complete an apprenticeship program already underway. Any funds not expended within the extension period shall revert to the producer responsibility organization.
(E)Prior to receipt of any subsequent grant, each apprenticeship program receiving funding under this paragraph shall submit a report to the producer responsibility organization and the department outlining the expenditure of grant funds for purposes of this program. The report shall include all of the following:
(i)Total funds received and expended.
(ii)Utilization of funds, categorized by expense type, including receipts and invoices for preapproved supplies and equipment.
(iii)Number of individuals trained.
(iv)Demographic data, if required by the producer responsibility organization.
(v)Cost per trainee.
(vi)Program outcomes and performance metrics.
(vii)Any remaining unexpended funds.
(viii)Other information pertinent to the program.
(m)Provide for the payment to a collection site for accepting, collecting, storing, transporting, and handling covered products in an amount determined by the collection site and the producer responsibility organization. Payment of these costs shall be reflected in the budget pursuant to subdivision (e).
(n)Explain how producers will use standardized stamping or some other means to provide a visual mark on the back of a covered product that provides the name of the producer, the date of manufacture, and a listing of the types of face fibers and backing materials contained in the product. This requirement to implement standardized stamping or other means to provide a visual mark shall become operative six months after the effective date of the regulations adopted by the department pursuant to Section 42968.1 or July 1, 2028, whichever is later.
(o)Require carpet to contain 5 percent of postconsumer recycled carpet content by 2028. The department may, for the year 2029 and any year thereafter, set the rate for postconsumer recycled carpet to be required in carpet.
(p)Include written certification by an authorized representative of the producer responsibility organization that, at the time of submission to the department, the producer responsibility plan, including all aspects of the producer responsibility plan related to the collection, transportation, and management of covered products, is in compliance with all applicable state and federal laws and regulations.
SEC. 8.Section 42968.34 of the Public Resources Code is amended to read:42968.34.(a)The department may establish, review, and may adjust performance standards based on information included in the producer responsibility plan and annual reports, other information provided by the producer responsibility organization, department waste characterization studies, and economic and any other relevant information.
(b)Performance standards published by the department pursuant to this section shall not be subject to the requirements of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
SEC. 9.Section 42968.40 of the Public Resources Code is amended to read:42968.40.(a)(1)No later than January 1, 2029, a person that, as part of the installation of a covered product, removes a covered product from a residence or business shall transport, or contract to transport, all of the removed covered products to a collection site. Covered material collected at a collection site shall be transported to a recycling facility designated by the producer responsibility organization.
(2)Paragraph (1) does not apply to a covered product if all of the following are met:
(A)The covered product is returned to its producer.
(B)The producer collects, maintains, and provides to the producer responsibility organization, the information necessary for the collection to be included in the producer responsibility organizations performance metrics.
(C)The producers return process is subject to audit by the producer responsibility organization and the department.
(b)A collection site shall ensure that covered products are collected in the prescribed conditions required by the approved producer responsibility plan. The conditions shall include, but are not limited to, the following requirements:
(1)A covered product shall be kept in a location that allows it to remain dry at all times.
(2)A container holding a collected covered product shall be free of all contaminated discarded waste items.
(3)A collection site shall permit a processors prescribed container to be housed on site for loading and for pickup at the collection site, if the processor is approved by the producer responsibility plan.
SEC. 10.Section 42968.62 of the Public Resources Code is amended to read:42968.62.On or before September 1 of each year, the producer responsibility organization shall submit in the form and manner determined by the department an annual report and make the report publicly available on the producer responsibility organizations internet website. The report shall include all of the following information for the preceding calendar year:
(a)The producer responsibility organizations revenues and costs, with the costs according to the cost categories established in the producer responsibility plan.
(b)A summary of any anticipated changes to allocations in cost categories for the following calendar year.
(c)The square footage, yardage, weight, or other metric, as determined by the department, of covered products, by carpet type, for each of the following:
(1)Covered product that was collected.
(2)Covered product that was processed.
(3)Covered product that was recycled.
(4)Covered product that was disposed.
(d)A list of the producer responsibility organizations collection sites, by name, location, and type.
(e)An updated list of the names and contact information, including email address, phone number, and physical and mailing addresses of producers.
(f)A description of methods used to collect, transport, recycle, and divert covered products by the producer responsibility organization including a description of all of the following:
(1)How the producer responsibility organization handled and managed covered products according to the priority of waste management practices provided in Section 40051.
(2)How the producer responsibility organization maximized recycling of all covered products.
(3)How the producer responsibility organization minimized disposal of all covered products collected by the producer responsibility organization.
(4)Results of the producer responsibility organizations assessment of the efficacy of the collection, sorting, and transportation process pursuant to paragraph (8) of subdivision (h) of Section 42968.32.
(g)A description of how the producer responsibility organization improved the collection, processing, and recycling operations for covered products, including, but not limited to, pilot programs to test new processes, methods, or equipment.
(h)A description of outreach efforts and education, including, but not limited to, education and outreach provided by the producer responsibility organization for the purpose of promoting the collection, reuse, and recycling of covered products. This includes messaging on environmentally preferable purchasing.
(i)Findings from the evaluation of the comprehensive statewide education and outreach program required by subdivision (i) of Section 42968.32.
(j)A report on activities the producer responsibility organization 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.
(k)All of the following information related to grants and incentive payments provided by the producer responsibility organization pursuant to this chapter:
(1)The name and address of each recipient of a grant or incentive payment.
(2)The amount of each grant and incentive payment, with grant amounts broken down by category and by recipient.
(3)The number of applicants and recipients of a grant broken down by category.
(4)A detailed description of the criteria used to evaluate applications and to award the grants.
(5)A timeline of the process and a description of when applications were announced, the deadline to apply, the length of the review process, and the date the grants or incentive payments were awarded.
(6)An explanation of why certain recipients are chosen for incentive payments and others are not.
(7)A separate list identifying any grant or incentive payment provided to any of the following and an explanation as to why the grant or incentive payment does not involve a conflict of interest:
(A)A member of the producer responsibility organizations board of directors.
(B)A member of the governing board described in Section 42968.21.
(C)A family member or employee of a person described in subparagraph (A) or (B).
(l)A report on achievement of the performance standards required by subdivision (f) of Section 42968.32 and the progress toward meeting the performance standards. If the standards were not met, a description of efforts made along with a full description of the corrective actions taken to achieve the performance standards.
(m)Any other information deemed relevant by the producer responsibility organization for the department to determine compliance with the approved producer responsibility plan.
(n)Any other information required by regulations adopted pursuant to Section 42968.1.
SEC. 11.Section 42968.72 of the Public Resources Code is amended to read:42968.72.(a)If the department disapproves a producer responsibility organizations annual report, or determines the producer responsibility organization knowingly or intentionally violates has violated this chapter chapter, three or more times, the department may determine the producer responsibility organization permanently ineligible to act as the producer responsibility organization on behalf of producers to design, submit, and administer a producer responsibility plan pursuant to this chapter.
(b)There is a rebuttable presumption that any violation of a statute or regulation, or any missed goal, during a reporting period following a reporting period in which the same statute, regulation, or goal was the basis for a violation, is knowing or intentional for purposes of this section and Section 42978.
(b)(c)If the producer responsibility organization becomes ineligible pursuant to subdivision (a), then the department may revoke approval of the producer responsibility organization pursuant to paragraph (1) of subdivision (c) of Section 42968.71.
SEC. 12.Section 42973.7 of the Public Resources Code is amended to read:42973.7.(a)The carpet stewardship organization shall create a governing board for the program and the voting members of the governing board shall be appointed as follows:
(1)The carpet stewardship organization shall appoint eight voting members with at least one voting member who is a representative of the Carpet and Rug Institute.
(2)The Speaker of the Assembly shall appoint three voting members, one representing each of the following:
(A)An environmental organization that is involved in promoting recycling programs and the circular economy.
(B)A retailer that sells covered products in California.
(C)A labor representative from northern California who is from a floor covering joint apprenticeship program in California that is approved by the Division of Apprenticeship Standards.
(3)The President pro Tempore of the Senate shall appoint three voting members, one representing each of the following:
(A)A collector or hauler who participates in the California carpet stewardship program.
(B)A recycler of carpet located in California.
(C)A labor representative from southern California who is from a floor covering joint apprenticeship program in California that is approved by the Division of Apprenticeship Standards.
(b)A carpet stewardship organization shall pay the travel costs and other expenses for the voting members identified in subdivision (a) to participate in all meetings of the governing board.
SEC. 13.Section 42976 of the Public Resources Code is amended to read:42976.On or before September 1 of each year, a manufacturer of carpet sold in the state shall, individually or through a carpet stewardship organization, submit to the department a report describing its activities to achieve the purposes of this chapter, as described in Section 42970, and to comply with Section 42975. At a minimum, the report shall include all of the following:
(a)The amount of carpet sold by square yards and weight, in the state during the reporting period. A carpet stewardship organization with more than one manufacturer may use average weight.
(b)The amount of postconsumer carpet recycled, by weight, during the reporting period.
(c)The amount of postconsumer carpet recovered but not recycled, by weight, and its ultimate disposition.
(d)The total cost of implementing the carpet stewardship plan.
(e)An evaluation of the effectiveness of the carpet stewardship plan, and anticipated steps, if needed, to improve performance.
(f)Examples of educational materials that were provided to consumers during the reporting period.
(g)All of the following information related to grants awarded by the carpet stewardship organization pursuant to this chapter:
(1)The name and address of each recipient of a grant or subsidy.
(2)The amount of each grant and subsidy, with grant amounts broken down by category and by recipient.
(3)The number of applicants and recipients of a grant broken down by category.
(4)A detailed description of the criteria used to evaluate applications and to award the grants.
(5)A timeline of the process and a description of when applications were announced, the deadline to apply, the length of the review process, and the date the grants and subsidies were awarded.
(6)An explanation of why certain recipients are chosen for grants and subsidies and others are not.
(7)A separate list identifying any grant or subsidy provided to any of the following and an explanation as to why the grant or subsidy does not involve a conflict of interest:
(A)A member of the carpet stewardship organizations board of directors.
(B)A member of the governing board described in Section 42973.7.
(C)A family member or employee of a person described in subparagraph (A) or (B).
SEC. 14.Section 42978 of the Public Resources Code is amended to read:42978.(a)An administrative 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)Twenty-five thousand dollars ($25,000) per day if the violation is intentional or knowing.
(b)In assessing or reviewing the amount of an administrative 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.
For purposes of this chapter, the following definitions apply:
(a)Apprenticeship program means a program approved by the Chief of the Division of Apprenticeship Standards for training apprentice and journey-level carpet installers in proper carpet installation, reuse, and recycling practices to maximize the chances of achieving the goals of the program.
(b)Authorized collector means a person or entity that has entered into an agreement with the producer responsibility organization to collect covered products.
(c)Brand means a name, symbol, word, or mark that identifies a covered product rather than its components, and attributes the covered product to the owner or licensee of the brand as the producer.
(d)(1)Carpet means a manufactured article that is used in commercial or residential buildings affixed or placed on the floor or building walking surface as a decorative or functional building interior feature and that is primarily constructed of a top visible surface of synthetic or natural face fibers or yarns or tufts attached to a backing system derived from synthetic or natural materials.
(2)Carpet includes, but is not limited to, a commercial or a residential broadloom carpet or modular carpet tiles.
(3)Carpet does not include a rug, pad, cushion, or underlayment used in conjunction with, or separately from, a carpet.
(e)Closed loop recycling means recycling in which products or materials are reclaimed and returned to the original process or processes in which they were generated and they are reused in the production process.
(f)Collection site means and includes, but is not limited to, a carpet recycling center, municipal facility that accepts carpet, retailer that sells a covered product, producers regional distribution center, or solid waste facility that has agreed to be a collection site for the producer responsibility organization, as described in Section 42968.23.
(g)Consumer means a purchaser, owner, or lessee of a covered product, including a person, business, corporation, limited partnership, nonprofit organization, or governmental entity.
(h)(1)Covered product means carpet.
(2)Covered product does not include carpet that meets the requirements in Section 42357 to be labeled compostable.
(i)Department means the Department of Resources Recycling and Recovery.
(j)Environmental nongovernmental organization means a nonprofit organization established to address environmental issues related to waste and recycling.
(k)Permanent collection site means a permanent location in the state where discarded covered product may be returned at no cost, by a consumer or another party on behalf of a consumer, to be reused, recycled, or otherwise managed.
(l)Postconsumer covered product means a covered product that is no longer used for its manufactured purpose.
(m)(1)Postconsumer recycled content means material derived from postconsumer covered product.
(2)Postconsumer recycled content does not include material derived from recycled beverage containers, as defined in Section 14505.
(n)Processor means a company that uses a process, including, but not limited to, shredding, grinding, sheering, or depolymerization, to convert discarded covered products into finished recycled output that is ready to be used as an input material for manufacturing products.
(o)(1)Producer means a person who manufactures a covered product and who sells, offers for sale, or distributes a covered product in or into the state under that persons own name or brand.
(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 or exclusive licensee of a brand or trademark under which the covered product is sold or distributed in or into the state, whether or not 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 party that imports the covered product into the state for sale, distribution, or installation.
(4)If there is no person in the state who is the producer for purposes of paragraph (1), (2), or (3), then the producer of the covered product is the distributor, wholesaler, or retailer who sells the product in or into the state.
(p)Producer responsibility organization means an organization that is exempt from taxation under Section 501(c)(3) of the United States Internal Revenue Code of 1986, is formed for the purpose of implementing a producer responsibility plan to meet the requirements of this chapter, chapter and is approved by the department pursuant to Section 42968.21.
(q)Producer responsibility plan means the plan developed by the producer responsibility organization that complies with Section 42968.32 and is submitted to the department for approval pursuant to Section 42968.30.
(r)(1)Recycle or recycling means the process of 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 that meet the quality standards necessary to be used in the marketplace.
(2)Recycle or recycling does not include any of the following:
(A)Combustion.
(B)Incineration.
(C)Energy generation.
(D)Fuel production, except for anaerobic digestion of source separated organic materials.
(E)Other forms of disposal.
(3)To be considered recycled, covered products shall be sent to a responsible end market.
(s)Retailer means a person who offers new covered products in a retail sale, as defined in Section 6007 of the Revenue and Taxation Code, including a retail sale through any means, including remote offerings such as sales outlets, catalogs, or an internet website, online marketplace, or other similar electronic means.
(t)(1)Sell or sale means a transfer of title of a covered product for consideration, including a remote sale conducted through a sales outlet, catalog, or internet website, online marketplace, or similar electronic means.
(2)Sell or sale includes a lease through which a covered product is provided to a consumer by a distributer, importer, manufacturer, retailer, wholesaler, or event carpet and flooring rental service.
(3)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.
(u)Solid waste facility means a solid waste facility, as defined in Section 40194, that accepts under its normal operating conditions covered materials for collection, storing, and handling, whether for recycling or disposal.
(v)Wholesaler means a person who offers new covered product for sale in this state in a sale that is not a retail sale, as defined in Section 6007 of the Revenue and Taxation Code, and in which the covered product is intended to be resold.
SEC. 2.Section 42968.1 of the Public Resources Code is amended to read:42968.1.The department shall adopt regulations to implement this chapter in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The regulations shall have an effective date no later than January 1, 2028.
SEC. 3.Section 42968.4 of the Public Resources Code is amended to read:42968.4.(a)Subject to subdivision (b), a producer shall publish on its internet website, for each of its covered products, the components that constitute more than 1 percent of the total composition of the product by weight and any intentionally added component that is listed by the Department of Toxic Substances Control as a Candidate Chemical pursuant to Section 69502.2 of Title 22 of the California Code of Regulations.
(b)Subdivision (a) does not require a producer to reveal a trade secret, as defined in Section 3426.1 of the Civil Code.
SEC. 4.Section 42968.21 of the Public Resources Code is amended to read:42968.21.(a)The department shall approve a producer responsibility organization if it meets the requirements of this chapter, including all of the following:
(1)The producer responsibility organization shall create a governing board for the program and the voting members of the governing board shall be appointed as follows:
(A)The producer responsibility organization shall appoint eight voting members with at least one voting member who is a representative of the Carpet and Rug Institute.
(B)The Speaker of the Assembly shall appoint three voting members, one representing each of the following:
(i)An environmental organization that is involved in promoting recycling programs and the circular economy.
(ii)A retailer that sells covered products in California.
(iii)A labor representative from northern California who is from a floor covering joint apprenticeship program in California that is approved by the Division of Apprenticeship Standards. The labor representative shall alternate from northern California and southern California every two years.
(C)The President pro Tempore shall appoint two three voting members, one representing each of the following:
(i)A collector or hauler who participates in the California producer responsibility program.
(ii)A recycler of carpet located in California.
(iii)A labor representative from southern California who is from a floor covering joint apprenticeship program in California that is approved by the Division of Apprenticeship Standards.
(2)A producer responsibility organization shall pay the travel costs and other expenses for the voting members identified in paragraph (1) to participate in all meetings of the governing board.
(3)The producer responsibility organization shall demonstrate in its producer responsibility plan 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.
(4)The activities of the producer responsibility organization are limited to carrying out the requirements of this chapter.
(b)In the event that the department determines that the producer responsibility organization no longer meets the requirements of this chapter or fails to implement or administer an approved producer responsibility plan in a manner that effectuates the purposes of this chapter, the department may revoke its approval of the producer responsibility plan pursuant to paragraph (1) of subdivision (c) of Section 42968.71, and may approve another producer responsibility plan.
(c)(1)Upon approval of a producer responsibility plan pursuant to Section 42968.30, a producer shall not sell, offer for sale, import, or distribute a covered product in the state unless all of the following are met:
(A)The producer is a participant of the producer responsibility organization.
(B)The covered product is accounted for in the producer responsibility plan.
(C)The department has approved the producer responsibility plan.
(2)If a person does not qualify as a producer and is not subject to this chapter before or upon approval of a producer responsibility plan, but after the approval of a producer responsibility plan the person meets the definition of a producer, then that person shall become a participant of the producer responsibility organization and comply with the requirements of this chapter prior to beginning to sell, offer for sale, import, or distribute covered products in the state.
(d)A producer not in compliance with this chapter is subject to penalties pursuant to this chapter if a covered product sold or offered for sale by the producer is not subject to a producer responsibility plan that has been approved by the department pursuant to Section 42968.30.
SEC. 5.Section 42968.23 of the Public Resources Code is amended to read:42968.23.(a)(1)The producer responsibility organization shall include as a collection site under its producer responsibility plan a solid waste facility that offers in writing to participate in the producer responsibility plan and agrees to comply with any program operator requirements that are consistent with the approved producer responsibility plan.
(2)The producer responsibility organization shall include the solid waste facility as a collection site within 90 days of receiving the written offer to participate, confirming that the offering entity will comply with any producer responsibility organization requirements that are consistent with an approved producer responsibility plan.
(3)The producer responsibility organization shall not be required to respond to offers pursuant to this subdivision until its producer responsibility plan has been approved by the department.
(b)The producer responsibility organization may suspend or terminate use of 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 producer responsibility organization pursuant to subdivision (h) of Section 42968.32.
(c)A participant of the producer responsibility organization with an approved producer responsibility plan shall comply with the requirements of this chapter. The producer responsibility organization shall notify the department within 30 calendar days of any the following:
(1)The end of any three-month period in which the producer responsibility organization unsuccessfully attempted to obtain a fee, records, or information from a participant producer, or received incomplete or incorrect records or information required by this chapter.
(2)The date a producer no longer participates in the producer responsibility organizations approved producer responsibility plan.
(3)Any instance of noncompliance by a participant producer.
SEC. 6.Section 42968.30 of the Public Resources Code is amended to read:42968.30.(a)Within 12 months of the effective date of the regulations adopted by the department pursuant to Section 42968.1, the producer responsibility organization shall develop and submit to the department a complete producer responsibility plan, in accordance with the requirements of this chapter, for the collection, transportation, recycling, and the safe and proper management of covered products in the state.
(b)(1)The department shall review the producer responsibility plan for compliance with this chapter and may approve or disapprove the producer responsibility plan within 120 days of receipt of the producer responsibility plan.
(2)If the department disapproves a revised producer responsibility plan, the department shall explain how the revised producer responsibility plan does not comply with this chapter and provide written notice to the producer responsibility organization within 60 days of disapproval.
(c)If the department disapproves a producer responsibility plan submitted by the producer responsibility organization, the department shall explain how the producer responsibility plan does not comply with this chapter and provide written notice to the producer responsibility organization within 60 days of disapproval. The producer responsibility organization may resubmit to the department a revised producer responsibility plan within 30 days of the date the written notice was issued, and the department shall review the revised producer responsibility plan within 60 days of its receipt of the resubmittal. The producer responsibility organization shall then revise and resubmit the producer responsibility plan consistent with the departments direction within 30 days, otherwise the disapproval is final and the producer responsibility organization and producers may be subject to penalties. Within 24 months of the effective date of the regulations adopted by the department pursuant to Section 42968.1, the producer responsibility organization shall have a complete producer responsibility plan approved by the department and each producer shall be subject to an approved producer responsibility plan to be in compliance with this chapter.
(d)The approved producer responsibility plan shall be a public record, except that financial or sales data reported to the department by the producer responsibility organization 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 to any other entity.
SEC. 7.Section 42968.32 of the Public Resources Code is amended to read:42968.32.A producer responsibility plan for covered products shall do all of the following:
(a)Be designed to accept and manage all postconsumer covered postconsumer-covered products.
(b)Include the name and contact information of each producer and brand covered under the producer responsibility plan. The contact information shall include the producers email address, phone number, and mailing and physical address.
(c)Explain the producer responsibility organizations funding methods, and explain how those methods will fully fund the producer responsibility organization.
(d)(1)Include the fee required by Section 42968.51 and a description of how it is calculated.
(2)Include the fee required by Section 42968.52, a description of how it is calculated, and an explanation of how it complies with Section 42968.52.
(e)Include a five-year budget that establishes a funding level sufficient to operate the producer responsibility organization in a prudent and responsible manner. The budget shall demonstrate how estimated revenues will cover all budgeted costs for each cost category. Budgeted costs shall include, but not be limited to, administrative costs, education and outreach costs, operational costs, capital costs, and a reserve.
(1)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 are defined in the regulations adopted pursuant to Section 42968.1. For purposes of this paragraph, producer responsibility organization implementation begins once the department approves the producer responsibility organizations producer responsibility plan, except the departments costs shall include actual regulatory development costs and other startup costs incurred prior to producer responsibility plan submittal and approval.
(2)The reserve shall include funds to operate the producer responsibility organization should there be unexpected events, losses of income, or large unbudgeted expenses. It shall also protect the recycling infrastructure the producer responsibility organization relies on in its producer responsibility plan during any lapse in producer participation during the life of the program. The reserve cost category shall include a reserve level amount and description justifying the reserve level amount indicated. The producer responsibility organization shall maintain reserve funds sufficient to operate the producer responsibility plan for no less than six months. In the event that a new producer responsibility organization is approved by the department, the producer responsibility organization shall establish its reserve and maintain the required reserve fund balance by the end of the second year of producer responsibility plan operation. In the event that the producer responsibility organizations producer responsibility plan expires or is revoked, the reserve balance shall be transferred to a successor producer responsibility organization or a trustee, pursuant to subdivision (j).
(f)Include quantifiable five-year and annual performance standards and metrics for each covered product category until such time as the department publishes performance standards pursuant to Section 42968.34. The producer responsibility organization shall amend its producer responsibility 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 the Administrative Procedure Act (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 recycling.
(g)(1)Include provisions for all of the following:
(A)The ability for people to drop off, at no charge, postconsumer carpet at a recycler, carpet recycling center, permitted solid waste facility, a collection location approved by the producer responsibility organization, or other municipal facility that accepts carpet.
(B)The payment of a reasonable amount to the facilities described in subparagraph (A) for accepting, collecting, storing, transporting, and handling of postconsumer carpet.
(C)Facilities described in subparagraph (A) that are open at least 20 hours per week over at least four days per week. Facilities described in subparagraph (A) shall be available on Saturdays, as follows:
(i)For a county with a population of 25,000 people or more, 25 percent of facilities described in subparagraph (A) shall be open every Saturday.
(ii)For a county with a population of fewer than 25,000 people, at least two Saturdays each month.
(iii)If a county is part of a regional agency, as defined in Section 40181, then the counties of the regional agency shall count as one county to meet the requirement of one facility described in subparagraph (A) site per county.
(D)Notwithstanding subparagraph (C), facilities described in subparagraph (A) in a county with a population of fewer than 5,000 people shall only be required to meet the minimum hours described in subparagraph (C) or have Saturday operation at least two Saturdays a month.
(E)Collection sites in each county of the state that provide for a reasonable geographic spread of permanent collection sites and an explanation for the geographic spread.
(2)The department may by regulation adjust the minimum number of required collection sites described in paragraph (1) to ensure that consumers have sufficient convenient access to collection sites, applicable to a producer responsibility plan addressing collection of covered products, if the department has substantial evidence that allowing for this adjustment will increase the collection of covered products or is otherwise justified considering the population or geographic attributes of the county. For counties bordering another state, the number of collection sites within that county may include a facility located in an adjacent state if that facility is regularly involved in the management of that countys solid waste and recyclables.
(h)Describe how collection sites will be authorized and managed, including all of the following:
(1)The process by which the producer responsibility organization will provide for the collection, storage, and transport of covered products from the collection sites to an authorized recycling facility.
(2)How the producer responsibility organization will ensure the cost-effective sorting of covered products using the best available technology to avoid any recyclable materials from being disposed.
(3)How the producer responsibility organization will maintain all collection and transport records and make them available to the department upon request.
(4)A list of all proposed rules, conditions, and requirements for authorized collectors, including a template proposed agreement.
(5)How the producer responsibility organization will maximize the recycling of covered products, including prioritizing reuse and closed loop recycling.
(6)How the producer responsibility organization will maximize the collection and reuse of convention carpet, including no less than 20 percent reuse by 2028.
(7)The process by which covered products will be managed following collection at collection sites, including:
(A)How covered products will be handled and managed according to the waste hierarchy as defined in Section 40051.
(B)How the producer responsibility organization will maximize the recycling of covered products.
(C)How the producer responsibility organization will minimize disposal of covered products collected by the producer responsibility organization.
(8)A description of the producer responsibility organizations annual assessment and the metrics it will use to determine how collection, sorting, and transportation outcomes aligned with projections.
(9)How the producer responsibility organization will improve the collection, processing, and recycling operations for covered products, including, but not limited to, pilot programs to test new processes, methods, or equipment.
(10)How collection sites will be operated to ensure that covered products are collected at no cost, safely, and handle covered product in accordance with all applicable state and federal law.
(i)(1)Describe the statewide education and outreach programs efforts to various audiences, including, but not limited to, consumers, commercial building owners, covered product installation contractors, construction and demolition contractors, retailers, and wholesalers to promote their participation in achieving the purposes of the producer responsibility plan. These education and outreach materials shall include, but are not limited to, any of the following:
(A)Signage that is prominently displayed and easily visible.
(B)Written materials and templates of materials to be provided to covered product installation contractors and consumers at the time of purchase or delivery or both.
(C)Promotional materials or activities, or both, that explain the purpose of the producer responsibility organization and the means by which it is being carried out.
(D)An internet website that publicizes the location of collection sites and provides information on how to drop off covered products at the free and convenient network of collection sites offered by the producer responsibility organization, including any information reasonably necessary to safely and conveniently access the collection and recycling services offered by the producer responsibility organization.
(E)All signage and materials required for collection sites by the producer responsibility organization, and a description of the method by which collection sites can access replacement materials at no cost to the collection site.
(F)A description of efforts to support participation by all California communities, including a description of efforts to communicate in languages other than English.
(G)A description of strategies, goals, and metrics used to determine the success of the producer responsibility plan implementation and statewide education and outreach program.
(2)The statewide education and outreach program shall promote the safe and proper management of covered products, including source reduction and environmentally preferable purchasing of covered products.
(3)The statewide education and outreach plan program shall include information for consumers about how to avoid improper disposal of covered products.
(4)The statewide education and outreach program shall include a survey to consumers and contractors regarding their awareness of the producer responsibility plan, their use of resources available to them under the producer responsibility plan, including collection sites, and why they do or do not use those resources. The survey shall occur once every three years.
(j)Include a contingency plan that takes effect in the event the producer responsibility 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 producer responsibility plan, subject to the direction of the department, until that time as a new producer responsibility plan is approved. Upon producer responsibility plan expiration or revocation of the producer responsibility plan, the balance of the producer responsibility organizations operating reserves collected pursuant to subdivision (d) shall be transferred to the control of the trustee within five calendar days, along with all documents, digital records, contracts, and files related to the operation of the producer responsibility plan.
(k)Allocate annual grants to apprenticeship programs for training apprentices and journey-level carpet installers in proper carpet recycling techniques, including installation and removal techniques that maximize the recyclability of carpet. The producer responsibility plan shall provide for annual grants to joint apprenticeship programs approved by the Division of Apprenticeship Standards to train carpet installers, with the amount divided evenly between programs in northern California and southern California.
(l)(1)Prioritize expenditure of assessments collected pursuant to Section 42968.52 on activities to carry out the producer responsibility plan in California.
(2)The program shall annually allocate one million dollars ($1,000,000), plus the cost-of-living adjustment pursuant to subparagraph (B) of paragraph (4), for grants to apprenticeship programs pursuant to subparagraph (A) of paragraph (4), subject to the requirements and conditions of this section. Any portion of these funds that are not awarded and used in a year shall be credited to the amount to be allocated or awarded in the following year pursuant to this section, thereby reducing the amount allocated or awarded in the following year by the amount of the credit.
(3)The apprenticeship program shall submit a report pursuant to subparagraph (E) of paragraph (4) to the producer responsibility organization and the department outlining its expenditure of the grant funds for purposes of this program prior to receipt of new grants.
(4)(A) Consistent with subparagraph (A) of paragraph (4) of subdivision (a) of Section 42972, commencing on January 1, 2027, and annually thereafter, the program shall allocate one million dollars ($1,000,000) to an apprenticeship program operated by a labor organization in both of the following groupings of counties, subject to the requirements of this paragraph:
(i)An apprenticeship program that includes, but is not limited to, the Counties of Alameda, Contra Costa, Del Norte, Fresno, Humboldt, Kings, Lake, Madera, Marin, Mariposa, Mendocino, Merced, Monterey, Napa, San Benito, San Francisco, San Joaquin, San Mateo, Santa Clara, Santa Cruz, Solano, Sonoma, Stanislaus, and Tulare.
(ii)An apprenticeship program that includes, but is not limited to, the Counties of Imperial, Inyo, Kern, Kings, Los Angeles, Mono, Orange, Riverside, San Bernardino, San Diego, Santa Barbara, Tulare, and Ventura.
(B)Commencing on January 1, 2028, and annually thereafter, the funding amounts shall be adjusted by the producer responsibility organization to reflect changes in the California Consumer Price Index, rounded to the nearest one thousand dollars ($1,000), not to exceed 3 percent in any year, subject to available funds.
(C)An application for funding shall be submitted on or before February 15 of each year. Grants shall be awarded on or before March 15 of each year, except that grants may be divided into two payments, with the second payment provided on or before July 1 of the year of the award.
(D)The producer responsibility organization may, at its sole discretion, authorize a one-time extension of up to three months solely to complete an apprenticeship program already underway. Any funds not expended within the extension period shall revert to the producer responsibility organization.
(E)Prior to receipt of any subsequent grant, each apprenticeship program receiving funding under this paragraph shall submit a report to the producer responsibility organization and the department outlining the expenditure of grant funds for purposes of this program. The report shall include all of the following:
(i)Total funds received and expended.
(ii)Utilization of funds, categorized by expense type, including receipts and invoices for preapproved supplies and equipment.
(iii)Number of individuals trained.
(iv)Demographic data, if required by the producer responsibility organization.
(v)Cost per trainee.
(vi)Program outcomes and performance metrics.
(vii)Any remaining unexpended funds.
(viii)Other information pertinent to the program.
(m)Provide for the payment to a collection site for accepting, collecting, storing, transporting, and handling covered products in an amount determined by the collection site and the producer responsibility organization. Payment of these costs shall be reflected in the budget pursuant to subdivision (e).
(n)Explain how producers will use standardized stamping or some other means to provide a visual mark on the back of a covered product that provides the name of the producer, the date of manufacture, and a listing of the types of face fibers and backing materials contained in the product. This requirement to implement standardized stamping or other means to provide a visual mark shall become operative six months after the effective date of the regulations adopted by the department pursuant to Section 42968.1 or July 1, 2028, whichever is later.
(o)Require carpet to contain 5 percent of postconsumer recycled carpet content by 2028. The department may, for the year 2029 and any year thereafter, set the rate for postconsumer recycled carpet to be required in carpet.
(p)Include written certification by an authorized representative of the producer responsibility organization that, at the time of submission to the department, the producer responsibility plan, including all aspects of the producer responsibility plan related to the collection, transportation, and management of covered products, is in compliance with all applicable state and federal laws and regulations.
SEC. 8.Section 42968.34 of the Public Resources Code is amended to read:42968.34.(a)The department may establish, review, and may adjust performance standards based on information included in the producer responsibility plan and annual reports, other information provided by the producer responsibility organization, department waste characterization studies, and economic and any other relevant information.
(b)Performance standards published by the department pursuant to this section shall not be subject to the requirements of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
SEC. 9.Section 42968.40 of the Public Resources Code is amended to read:42968.40.(a)(1)No later than January 1, 2029, a person that, as part of the installation of a covered product, removes a covered product from a residence or business shall transport, or contract to transport, all of the removed covered products to a collection site. Covered material collected at a collection site shall be transported to a recycling facility designated by the producer responsibility organization.
(2)Paragraph (1) does not apply to a covered product if all of the following are met:
(A)The covered product is returned to its producer.
(B)The producer collects, maintains, and provides to the producer responsibility organization, the information necessary for the collection to be included in the producer responsibility organizations performance metrics.
(C)The producers return process is subject to audit by the producer responsibility organization and the department.
(b)A collection site shall ensure that covered products are collected in the prescribed conditions required by the approved producer responsibility plan. The conditions shall include, but are not limited to, the following requirements:
(1)A covered product shall be kept in a location that allows it to remain dry at all times.
(2)A container holding a collected covered product shall be free of all contaminated discarded waste items.
(3)A collection site shall permit a processors prescribed container to be housed on site for loading and for pickup at the collection site, if the processor is approved by the producer responsibility plan.
SEC. 10.Section 42968.62 of the Public Resources Code is amended to read:42968.62.On or before September 1 of each year, the producer responsibility organization shall submit in the form and manner determined by the department an annual report and make the report publicly available on the producer responsibility organizations internet website. The report shall include all of the following information for the preceding calendar year:
(a)The producer responsibility organizations revenues and costs, with the costs according to the cost categories established in the producer responsibility plan.
(b)A summary of any anticipated changes to allocations in cost categories for the following calendar year.
(c)The square footage, yardage, weight, or other metric, as determined by the department, of covered products, by carpet type, for each of the following:
(1)Covered product that was collected.
(2)Covered product that was processed.
(3)Covered product that was recycled.
(4)Covered product that was disposed.
(d)A list of the producer responsibility organizations collection sites, by name, location, and type.
(e)An updated list of the names and contact information, including email address, phone number, and physical and mailing addresses of producers.
(f)A description of methods used to collect, transport, recycle, and divert covered products by the producer responsibility organization including a description of all of the following:
(1)How the producer responsibility organization handled and managed covered products according to the priority of waste management practices provided in Section 40051.
(2)How the producer responsibility organization maximized recycling of all covered products.
(3)How the producer responsibility organization minimized disposal of all covered products collected by the producer responsibility organization.
(4)Results of the producer responsibility organizations assessment of the efficacy of the collection, sorting, and transportation process pursuant to paragraph (8) of subdivision (h) of Section 42968.32.
(g)A description of how the producer responsibility organization improved the collection, processing, and recycling operations for covered products, including, but not limited to, pilot programs to test new processes, methods, or equipment.
(h)A description of outreach efforts and education, including, but not limited to, education and outreach provided by the producer responsibility organization for the purpose of promoting the collection, reuse, and recycling of covered products. This includes messaging on environmentally preferable purchasing.
(i)Findings from the evaluation of the comprehensive statewide education and outreach program required by subdivision (i) of Section 42968.32.
(j)A report on activities the producer responsibility organization 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.
(k)All of the following information related to grants and incentive payments provided by the producer responsibility organization pursuant to this chapter:
(1)The name and address of each recipient of a grant or incentive payment.
(2)The amount of each grant and incentive payment, with grant amounts broken down by category and by recipient.
(3)The number of applicants and recipients of a grant broken down by category.
(4)A detailed description of the criteria used to evaluate applications and to award the grants.
(5)A timeline of the process and a description of when applications were announced, the deadline to apply, the length of the review process, and the date the grants or incentive payments were awarded.
(6)An explanation of why certain recipients are chosen for incentive payments and others are not.
(7)A separate list identifying any grant or incentive payment provided to any of the following and an explanation as to why the grant or incentive payment does not involve a conflict of interest:
(A)A member of the producer responsibility organizations board of directors.
(B)A member of the governing board described in Section 42968.21.
(C)A family member or employee of a person described in subparagraph (A) or (B).
(l)A report on achievement of the performance standards required by subdivision (f) of Section 42968.32 and the progress toward meeting the performance standards. If the standards were not met, a description of efforts made to achieve the performance standards.
(m)Any other information deemed relevant by the producer responsibility organization for the department to determine compliance with the approved producer responsibility plan.
(n)Any other information required by regulations adopted pursuant to Section 42968.1.
SEC. 11.Section 42968.72 of the Public Resources Code is amended to read:42968.72.(a)If the producer responsibility organization knowingly or intentionally violates this chapter three or more times, the department may determine the producer responsibility organization permanently ineligible to act as the producer responsibility organization on behalf of producers to design, submit, and administer a producer responsibility plan pursuant to this chapter.
(b)If the producer responsibility organization becomes ineligible pursuant to subdivision (a), then the department may revoke approval of the producer responsibility organization pursuant to paragraph (1) of subdivision (c) of Section 42968.71.
SEC. 12.Section 42973.7 of the Public Resources Code is amended to read:42973.7.(a)The carpet stewardship organization shall create a governing board for the program and the voting members of the governing board shall be appointed as follows:
(1)The carpet stewardship organization shall appoint eight voting members with at least one voting member who is a representative of the Carpet and Rug Institute.
(2)The Speaker of the Assembly shall appoint three voting members, one representing each of the following:
(A)An environmental organization that is involved in promoting recycling programs and the circular economy.
(B)A retailer that sells covered products in California.
(C)A labor representative from northern California who is a floor covering joint apprenticeship program in California that is approved by the Division of Apprenticeship Standards. The labor representative shall alternate from northern California and southern California every two years.
(3)The President pro Tempore of the Senate shall appoint two three voting members, one representing each of the following:
(A)A collector or hauler who participates in the California carpet stewardship program.
(B)A recycler of carpet located in California.
(C)A labor representative from southern California who is from a floor covering joint apprenticeship program in California that is approved by the Division of Apprenticeship Standards.
(b)A carpet stewardship organization shall pay the travel costs and other expenses for the voting members identified in subdivision (a) to participate in all meetings of the governing board.
SEC. 13.Section 42976 of the Public Resources Code is amended to read:42976.On or before September 1 of each year, a manufacturer of carpet sold in the state shall, individually or through a carpet stewardship organization, submit to the department a report describing its activities to achieve the purposes of this chapter, as described in Section 42970, and to comply with Section 42975. At a minimum, the report shall include all of the following:
(a)The amount of carpet sold by square yards and weight, in the state during the reporting period. A carpet stewardship organization with more than one manufacturer may use average weight.
(b)The amount of postconsumer carpet recycled, by weight, during the reporting period.
(c)The amount of postconsumer carpet recovered but not recycled, by weight, and its ultimate disposition.
(d)The total cost of implementing the carpet stewardship plan.
(e)An evaluation of the effectiveness of the carpet stewardship plan, and anticipated steps, if needed, to improve performance.
(f)Examples of educational materials that were provided to consumers during the reporting period.
(g)All of the following information related to grants awarded by the carpet stewardship organization pursuant to this chapter:
(1)The name and address of each recipient of a grant or subsidy.
(2)The amount of each grant and subsidy, with grant amounts broken down by category and by recipient.
(3)The number of applicants and recipients of a grant broken down by category.
(4)A detailed description of the criteria used to evaluate applications and to award the grants.
(5)A timeline of the process and a description of when applications were announced, the deadline to apply, the length of the review process, and the date the grants and subsidies were awarded.
(6)An explanation of why certain recipients are chosen for grants and subsidies and others are not.
(7)A separate list identifying any grant or subsidy provided to any of the following and an explanation as to why the grant or subsidy does not involve a conflict of interest:
(A)A member of the carpet stewardship organizations board of directors.
(B)A member of the governing board described in Section 42973.7.
(C)A family member or employee of a person described in subparagraph (A) or (B).
SEC. 14.Section 42978 of the Public Resources Code is amended to read:42978.(a)An administrative 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)Twenty-five thousand dollars ($25,000) per day if the violation is intentional or knowing.
(b)In assessing or reviewing the amount of an administrative 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.
For purposes of this chapter, the following definitions apply:
(a)Apprenticeship program means a program approved by the Chief of the Division of Apprenticeship Standards for training apprentice and journey-level carpet installers in proper carpet installation, reuse, and recycling practices to maximize the chances of achieving the goals of the program.
(b)Authorized collector means a person or entity that has entered into an agreement with the producer responsibility organization to collect covered products.
(c)Brand means a name, symbol, word, or mark that identifies a covered product rather than its components, and attributes the covered product to the owner or licensee of the brand as the producer.
(d)(1)Carpet means a manufactured article that is used in commercial or residential buildings affixed or placed on the floor or building walking surface as a decorative or functional building interior feature and that is primarily constructed of a top visible surface of synthetic or natural face fibers or yarns or tufts attached to a backing system derived from synthetic or natural materials.
(2)Carpet includes, but is not limited to, a commercial or a residential broadloom carpet or modular carpet tiles.
(3)Carpet does not include a rug, pad, cushion, or underlayment used in conjunction with, or separately from, a carpet.
(e)Closed loop recycling means recycling in which products or materials are reclaimed and returned to the original process or processes in which they were generated and they are reused in the production process.
(f)Collection site means and includes, but is not limited to, a carpet recycling center, municipal facility that accepts carpet, retailer that sells a covered product, producers regional distribution center, or solid waste facility that has agreed to be a collection site for the producer responsibility organization, as described in Section 42968.23.
(g)Consumer means a purchaser, owner, or lessee of a covered product, including a person, business, corporation, limited partnership, nonprofit organization, or governmental entity.
(h)(1)Covered product means carpet.
(2)Covered product does not include carpet that meets the requirements in Section 42357 to be labeled compostable.
(i)Department means the Department of Resources Recycling and Recovery.
(j)Environmental nongovernmental organization means a nonprofit organization established to address environmental issues related to waste and recycling.
(k)Permanent collection site means a permanent location in the state where discarded covered product may be returned at no cost, by a consumer or another party on behalf of a consumer, to be reused, recycled, or otherwise managed.
(l)Postconsumer covered product means a covered product that is no longer used for its manufactured purpose.
(m)(1)Postconsumer recycled content means material derived from postconsumer covered product.
(2)Postconsumer recycled content does not include material derived from recycled beverage containers, as defined in Section 14505.
(n)Processor means a company that uses a process, including, but not limited to, shredding, grinding, sheering, or depolymerization, to convert discarded covered products into finished recycled output that is ready to be used as an input material for manufacturing products.
(o)(1)Producer means a person who manufactures a covered product and who sells, offers for sale, or distributes a covered product in or into the state under that persons own name or brand.
(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 or exclusive licensee of a brand or trademark under which the covered product is sold or distributed in or into the state, whether or not 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 party that imports the covered product into the state for sale, distribution, or installation.
(4)If there is no person in the state who is the producer for purposes of paragraph (1), (2), or (3), then the producer of the covered product is the distributor, wholesaler, or retailer who sells the product in or into the state.
(p)Producer responsibility organization means an organization that is exempt from taxation under Section 501(c)(3) of the United States Internal Revenue Code of 1986, is formed for the purpose of implementing a producer responsibility plan to meet the requirements of this chapter, and is approved by the department pursuant to Section 42968.21.
(q)Producer responsibility plan means the plan developed by the producer responsibility organization that complies with Section 42968.32 and is submitted to the department for approval pursuant to Section 42968.30.
(r)(1)Recycle or recycling means the process of 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 that meet the quality standards necessary to be used in the marketplace.
(2)Recycle or recycling does not include any of the following:
(A)Combustion.
(B)Incineration.
(C)Energy generation.
(D)Fuel production, except for anaerobic digestion of source separated organic materials.
(E)Other forms of disposal.
(3)To be considered recycled, covered products shall be sent to a responsible end market.
(s)Retailer means a person who offers new covered products in a retail sale, as defined in Section 6007 of the Revenue and Taxation Code, including a retail sale through any means, including remote offerings such as sales outlets, catalogs, or an internet website, online marketplace, or other similar electronic means.
(t)(1)Sell or sale means a transfer of title of a covered product for consideration, including a remote sale conducted through a sales outlet, catalog, or internet website, online marketplace, or similar electronic means.
(2)Sell or sale includes a lease through which a covered product is provided to a consumer by a distributer, importer, manufacturer, retailer, wholesaler, or event carpet and flooring rental service.
(3)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.
(u)Solid waste facility means a solid waste facility, as defined in Section 40194, that accepts under its normal operating conditions covered materials for collection, storing, and handling, whether for recycling or disposal.
(v)Wholesaler means a person who offers new covered product for sale in this state in a sale that is not a retail sale, as defined in Section 6007 of the Revenue and Taxation Code, and in which the covered product is intended to be resold.
SEC. 2.Section 42968.1 of the Public Resources Code is amended to read:42968.1.The department shall adopt regulations to implement this chapter in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The regulations shall have an effective date no later than January 1, 2028.
SEC. 3.Section 42968.4 of the Public Resources Code is amended to read:42968.4.(a)Subject to subdivision (b), a producer shall publish on its internet website, for each of its covered products, the components that constitute more than 1 percent of the total composition of the product by weight and any intentionally added component that is listed by the Department of Toxic Substances Control as a Candidate Chemical pursuant to Section 69502.2 of Title 22 of the California Code of Regulations.
(b)Subdivision (a) does not require a producer to reveal a trade secret, as defined in Section 3426.1 of the Civil Code.
SEC. 4.Section 42968.21 of the Public Resources Code is amended to read:42968.21.(a)The department shall approve a producer responsibility organization if it meets the requirements of this chapter, including all of the following:
(1)The producer responsibility organization shall create a governing board for the program and the voting members of the governing board shall be appointed as follows:
(A)The producer responsibility organization shall appoint eight voting members with at least one voting member who is a representative of the Carpet and Rug Institute.
(B)The Speaker of the Assembly shall appoint three voting members, one representing each of the following:
(i)An environmental organization that is involved in promoting recycling programs and the circular economy.
(ii)A retailer that sells covered products in California.
(iii)A labor representative from a floor covering joint apprenticeship program in California that is approved by the Division of Apprenticeship Standards. The labor representative shall alternate from northern California and southern California every two years.
(C)The President pro Tempore shall appoint two voting members, one representing each of the following:
(i)A collector or hauler who participates in the California producer responsibility program.
(ii)A recycler of carpet located in California.
(2)A producer responsibility organization shall pay the travel costs and other expenses for the voting members identified in paragraph (1) to participate in all meetings of the governing board.
(3)The producer responsibility organization shall demonstrate in its producer responsibility plan 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.
(4)The activities of the producer responsibility organization are limited to carrying out the requirements of this chapter.
(b)In the event that the department determines that the producer responsibility organization no longer meets the requirements of this chapter or fails to implement or administer an approved producer responsibility plan in a manner that effectuates the purposes of this chapter, the department may revoke its approval of the producer responsibility plan pursuant to paragraph (1) of subdivision (c) of Section 42968.71, and may approve another producer responsibility plan.
(c)(1)Upon approval of a producer responsibility plan pursuant to Section 42968.30, a producer shall not sell, offer for sale, import, or distribute a covered product in the state unless all of the following are met:
(A)The producer is a participant of the producer responsibility organization.
(B)The covered product is accounted for in the producer responsibility plan.
(C)The department has approved the producer responsibility plan.
(2)If a person does not qualify as a producer and is not subject to this chapter before or upon approval of a producer responsibility plan, but after the approval of a producer responsibility plan the person meets the definition of a producer, then that person shall become a participant of the producer responsibility organization and comply with the requirements of this chapter prior to beginning to sell, offer for sale, import, or distribute covered products in the state.
(d)A producer not in compliance with this chapter is subject to penalties pursuant to this chapter if a covered product sold or offered for sale by the producer is not subject to a producer responsibility plan that has been approved by the department pursuant to Section 42968.30.
SEC. 5.Section 42968.23 of the Public Resources Code is amended to read:42968.23.(a)(1)The producer responsibility organization shall include as a collection site under its producer responsibility plan a solid waste facility that offers in writing to participate in the producer responsibility plan and agrees to comply with any program operator requirements that are consistent with the approved producer responsibility plan.
(2)The producer responsibility organization shall include the solid waste facility as a collection site within 90 days of receiving the written offer to participate, confirming that the offering entity will comply with any producer responsibility organization requirements that are consistent with an approved producer responsibility plan.
(3)The producer responsibility organization shall not be required to respond to offers pursuant to this subdivision until its producer responsibility plan has been approved by the department.
(b)The producer responsibility organization may suspend or terminate use of 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 producer responsibility organization pursuant to subdivision (h) of Section 42968.32.
(c)A participant of the producer responsibility organization with an approved producer responsibility plan shall comply with the requirements of this chapter. The producer responsibility organization shall notify the department within 30 calendar days of any the following:
(1)The end of any three-month period in which the producer responsibility organization unsuccessfully attempted to obtain a fee, records, or information from a participant producer, or received incomplete or incorrect records or information required by this chapter.
(2)The date a producer no longer participates in the producer responsibility organizations approved producer responsibility plan.
(3)Any instance of noncompliance by a participant producer.
SEC. 6.Section 42968.30 of the Public Resources Code is amended to read:42968.30.(a)Within 12 months of the effective date of the regulations adopted by the department pursuant to Section 42968.1, the producer responsibility organization shall develop and submit to the department a complete producer responsibility plan, in accordance with the requirements of this chapter, for the collection, transportation, recycling, and the safe and proper management of covered products in the state.
(b)(1)The department shall review the producer responsibility plan for compliance with this chapter and may approve or disapprove the producer responsibility plan within 120 days of receipt of the producer responsibility plan.
(2)If the department disapproves a revised producer responsibility plan, the department shall explain how the revised producer responsibility plan does not comply with this chapter and provide written notice to the producer responsibility organization within 60 days of disapproval.
(c)If the department disapproves a producer responsibility plan submitted by the producer responsibility organization, the department shall explain how the producer responsibility plan does not comply with this chapter and provide written notice to the producer responsibility organization within 60 days of disapproval. The producer responsibility organization may resubmit to the department a revised producer responsibility plan within 30 days of the date the written notice was issued, and the department shall review the revised producer responsibility plan within 60 days of its receipt of the resubmittal. The producer responsibility organization shall then revise and resubmit the producer responsibility plan consistent with the departments direction within 30 days, otherwise the disapproval is final and the producer responsibility organization and producers may be subject to penalties. Within 24 months of the effective date of the regulations adopted by the department pursuant to Section 42968.1, the producer responsibility organization shall have a complete producer responsibility plan approved by the department and each producer shall be subject to an approved producer responsibility plan to be in compliance with this chapter.
(d)The approved producer responsibility plan shall be a public record, except that financial or sales data reported to the department by the producer responsibility organization 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 to any other entity.
SEC. 7.Section 42968.32 of the Public Resources Code is amended to read:42968.32.A producer responsibility plan for covered products shall do all of the following:
(a)Be designed to accept and manage all postconsumer covered products.
(b)Include the name and contact information of each producer and brand covered under the producer responsibility plan. The contact information shall include the producers email address, phone number, and mailing and physical address.
(c)Explain the producer responsibility organizations funding methods, and explain how those methods will fully fund the producer responsibility organization.
(d)(1)Include the fee required by Section 42968.51 and a description of how it is calculated.
(2)Include the fee required by Section 42968.52, a description of how it is calculated, and an explanation of how it complies with Section 42968.52.
(e)Include a five-year budget that establishes a funding level sufficient to operate the producer responsibility organization in a prudent and responsible manner. The budget shall demonstrate how estimated revenues will cover all budgeted costs for each cost category. Budgeted costs shall include, but not be limited to, administrative costs, education and outreach costs, operational costs, capital costs, and a reserve.
(1)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 are defined in the regulations adopted pursuant to Section 42968.1. For purposes of this paragraph, producer responsibility organization implementation begins once the department approves the producer responsibility organizations producer responsibility plan, except the departments costs shall include actual regulatory development costs and other startup costs incurred prior to producer responsibility plan submittal and approval.
(2)The reserve shall include funds to operate the producer responsibility organization should there be unexpected events, losses of income, or large unbudgeted expenses. It shall also protect the recycling infrastructure the producer responsibility organization relies on in its producer responsibility plan during any lapse in producer participation during the life of the program. The reserve cost category shall include a reserve level amount and description justifying the reserve level amount indicated. The producer responsibility organization shall maintain reserve funds sufficient to operate the producer responsibility plan for no less than six months. In the event that a new producer responsibility organization is approved by the department, the producer responsibility organization shall establish its reserve and maintain the required reserve fund balance by the end of the second year of producer responsibility plan operation. In the event that the producer responsibility organizations producer responsibility plan expires or is revoked, the reserve balance shall be transferred to a successor producer responsibility organization or a trustee, pursuant to subdivision (j).
(f)Include quantifiable five-year and annual performance standards and metrics for each covered product category until such time as the department publishes performance standards pursuant to Section 42968.34. The producer responsibility organization shall amend its producer responsibility 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 the Administrative Procedure Act (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 recycling.
(g)(1)Include provisions for all of the following:
(A)The ability for people to drop off, at no charge, postconsumer carpet at a recycler, carpet recycling center, permitted solid waste facility, a collection location approved by the producer responsibility organization, or other municipal facility that accepts carpet.
(B)The payment of a reasonable amount to the facilities described in subparagraph (A) for accepting, collecting, storing, transporting, and handling of postconsumer carpet.
(C)Facilities described in subparagraph (A) that are open at least 20 hours per week over at least four days per week. Facilities described in subparagraph (A) shall be available on Saturdays, as follows:
(i)For a county with a population of 25,000 people or more, 25 percent of facilities described in subparagraph (A) shall be open every Saturday.
(ii)For a county with a population of fewer than 25,000 people, at least two Saturdays each month.
(iii)If a county is part of a regional agency, as defined in Section 40181, then the counties of the regional agency shall count as one county to meet the requirement of one facility described in subparagraph (A) site per county.
(D)Notwithstanding subparagraph (C), facilities described in subparagraph (A) in a county with a population of fewer than 5,000 people shall only be required to meet the minimum hours described in subparagraph (C) or have Saturday operation at least two Saturdays a month.
(E)Collection sites in each county of the state that provide for a reasonable geographic spread of permanent collection sites and an explanation for the geographic spread.
(2)The department may by regulation adjust the minimum number of required collection sites described in paragraph (1) to ensure that consumers have sufficient convenient access to collection sites, applicable to a producer responsibility plan addressing collection of covered products, if the department has substantial evidence that allowing for this adjustment will increase the collection of covered products or is otherwise justified considering the population or geographic attributes of the county. For counties bordering another state, the number of collection sites within that county may include a facility located in an adjacent state if that facility is regularly involved in the management of that countys solid waste and recyclables.
(h)Describe how collection sites will be authorized and managed, including all of the following:
(1)The process by which the producer responsibility organization will provide for the collection, storage, and transport of covered products from the collection sites to an authorized recycling facility.
(2)How the producer responsibility organization will ensure the cost-effective sorting of covered products using the best available technology to avoid any recyclable materials from being disposed.
(3)How the producer responsibility organization will maintain all collection and transport records and make them available to the department upon request.
(4)A list of all proposed rules, conditions, and requirements for authorized collectors, including a template proposed agreement.
(5)How the producer responsibility organization will maximize the recycling of covered products, including prioritizing reuse and closed loop recycling.
(6)How the producer responsibility organization will maximize the collection and reuse of convention carpet, including no less than 20 percent reuse by 2028.
(7)The process by which covered products will be managed following collection at collection sites, including:
(A)How covered products will be handled and managed according to the waste hierarchy as defined in Section 40051.
(B)How the producer responsibility organization will maximize the recycling of covered products.
(C)How the producer responsibility organization will minimize disposal of covered products collected by the producer responsibility organization.
(8)A description of the producer responsibility organizations annual assessment and the metrics it will use to determine how collection, sorting, and transportation outcomes aligned with projections.
(9)How the producer responsibility organization will improve the collection, processing, and recycling operations for covered products, including, but not limited to, pilot programs to test new processes, methods, or equipment.
(10)How collection sites will be operated to ensure that covered products are collected at no cost, safely, and handle covered product in accordance with all applicable state and federal law.
(i)(1)Describe the statewide education and outreach programs efforts to various audiences, including, but not limited to, consumers, commercial building owners, covered product installation contractors, construction and demolition contractors, retailers, and wholesalers to promote their participation in achieving the purposes of the producer responsibility plan. These education and outreach materials shall include, but are not limited to, any of the following:
(A)Signage that is prominently displayed and easily visible.
(B)Written materials and templates of materials to be provided to covered product installation contractors and consumers at the time of purchase or delivery or both.
(C)Promotional materials or activities, or both, that explain the purpose of the producer responsibility organization and the means by which it is being carried out.
(D)An internet website that publicizes the location of collection sites and provides information on how to drop off covered products at the free and convenient network of collection sites offered by the producer responsibility organization, including any information reasonably necessary to safely and conveniently access the collection and recycling services offered by the producer responsibility organization.
(E)All signage and materials required for collection sites by the producer responsibility organization, and a description of the method by which collection sites can access replacement materials at no cost to the collection site.
(F)A description of efforts to support participation by all California communities, including a description of efforts to communicate in languages other than English.
(G)A description of strategies, goals, and metrics used to determine the success of the producer responsibility plan implementation and statewide education and outreach program.
(2)The statewide education and outreach program shall promote the safe and proper management of covered products, including source reduction and environmentally preferable purchasing of covered products.
(3)The statewide education and outreach plan program shall include information for consumers about how to avoid improper disposal of covered products.
(4)The statewide education and outreach program shall include a survey to consumers and contractors regarding their awareness of the producer responsibility plan, their use of resources available to them under the producer responsibility plan, including collection sites, and why they do or do not use those resources. The survey shall occur once every three years.
(j)Include a contingency plan that takes effect in the event the producer responsibility 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 producer responsibility plan, subject to the direction of the department, until that time as a new producer responsibility plan is approved. Upon producer responsibility plan expiration or revocation of the producer responsibility plan, the balance of the producer responsibility organizations operating reserves collected pursuant to subdivision (d) shall be transferred to the control of the trustee within five calendar days, along with all documents, digital records, contracts, and files related to the operation of the producer responsibility plan.
(k)Allocate annual grants to apprenticeship programs for training apprentices and journey-level carpet installers in proper carpet recycling techniques, including installation and removal techniques that maximize the recyclability of carpet. The producer responsibility plan shall provide for annual grants to joint apprenticeship programs approved by the Division of Apprenticeship Standards to train carpet installers, with the amount divided evenly between programs in northern California and southern California.
(l)(1)Prioritize expenditure of assessments collected pursuant to Section 42968.52 on activities to carry out the producer responsibility plan in California.
(2)The program shall annually allocate one million dollars ($1,000,000), plus the cost of living cost-of-living adjustment pursuant to subparagraph (B) of paragraph (4), for grants to apprenticeship programs pursuant to subparagraph (A) of paragraph (4), subject to the requirements and conditions of this section. Any portion of these funds that are not awarded and used in a year shall be credited to the amount to be allocated or awarded in the following year pursuant to this section, thereby reducing the amount allocated or awarded in the following year by the amount of the credit.
(3)The apprenticeship program shall submit a report pursuant to subparagraph (E) of paragraph (4) to the producer responsibility organization and the department outlining its expenditure of the grant funds for purposes of this program prior to receipt of new grants.
(4)(A) Consistent with subparagraph (A) of paragraph (4) of subdivision (a) of Section 42972, commencing on January 1, 2027, and annually thereafter, the program shall allocate one million dollars ($1,000,000) to an apprenticeship program operated by a labor organization in both of the following groupings of counties, subject to the requirements of this paragraph:
(i)An apprenticeship program that includes, but is not limited to, the Counties of Alameda, Contra Costa, Del Norte, Fresno, Humboldt, Kings, Lake, Madera, Marin, Mariposa, Mendocino, Merced, Monterey, Napa, San Benito, San Francisco, San Joaquin, San Mateo, Santa Clara, Santa Cruz, Solano, Sonoma, Stanislaus, and Tulare.
(ii)An apprenticeship program that includes, but is not limited to, the Counties of Imperial, Inyo, Kern, Kings, Los Angeles, Mono, Orange, Riverside, San Bernardino, San Diego, Santa Barbara, Tulare, and Ventura.
(B)Commencing on January 1, 2028, and annually thereafter, the funding amounts shall be adjusted by the producer responsibility organization to reflect changes in the California Consumer Price Index, rounded to the nearest one thousand dollars ($1,000), not to exceed 3 percent in any year, subject to available funds.
(C)An application for funding shall be submitted on or before February 15 of each year. Grants shall be awarded on or before March 15 of each year, except that grants may be divided into two payments, with the second payment provided on or before July 1 of the year of the award.
(D)The producer responsibility organization may, at its sole discretion, authorize a one-time extension of up to three months solely to complete an apprenticeship program already underway. Any funds not expended within the extension period shall revert to the producer responsibility organization.
(E)Prior to receipt of any subsequent grant, each apprenticeship program receiving funding under this paragraph shall submit a report to the producer responsibility organization and the department outlining the expenditure of grant funds for purposes of this program. The report shall include all of the following:(i)Total funds received and expended.
(ii)Utilization of funds, categorized by expense type, including receipts and invoices for preapproved supplies and equipment.
(iii)Number of individuals trained.
(iv)Demographic data, if required by the producer responsibility organization.
(v)Cost per trainee.
(vi)Program outcomes and performance metrics.
(vii)Any remaining unexpended funds.
(viii)Other information pertinent to the program.
(m)Provide for the payment to a collection site for accepting, collecting, storing, transporting, and handling covered products in an amount determined by the collection site and the producer responsibility organization. Payment of these costs shall be reflected in the budget pursuant to subdivision (e).
(n)Explain how producers will use standardized stamping or some other means to provide a visual mark on the back of a covered product that provides the name of the producer, the date of manufacture, and a listing of the types of face fibers and backing materials contained in the product. This requirement to implement standardized stamping or other means to provide a visual mark shall become operative six months after the effective date of the regulations adopted by the department pursuant to Section 42968.1 or July 1, 2028, whichever is later.
(o)Require carpet to contain 5 percent of postconsumer recycled carpet content by 2028. The department may, for the year 2029 and any year thereafter, set the rate for postconsumer recycled carpet to be required in carpet.
(p)Include written certification by an authorized representative of the producer responsibility organization that, at the time of submission to the department, the producer responsibility plan, including all aspects of the producer responsibility plan related to the collection, transportation, and management of covered products, is in compliance with all applicable state and federal laws and regulations.
SEC. 8.Section 42968.34 of the Public Resources Code is amended to read:42968.34.(a)The department may establish, review, and may adjust performance standards based on information included in the producer responsibility plan and annual reports, other information provided by the producer responsibility organization, department waste characterization studies, and economic and any other relevant information.
(b)Performance standards published by the department pursuant to this section shall not be subject to the requirements of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
SEC. 9.Section 42968.40 of the Public Resources Code is amended to read:42968.40.(a)(1)No later than January 1, 2029, a person that, as part of the installation of a covered product, removes a covered product from a residence or business shall transport, or contract to transport, all of the removed covered products to a collection site. Covered material collected at a collection site shall be transported to a recycling facility designated by the producer responsibility organization.
(2)Paragraph (1) does not apply to a covered product if all of the following are met:
(A)The covered product is returned to its producer.
(B)The producer collects, maintains, and provides to the producer responsibility organization, the information necessary for the collection to be included in the producer responsibility organizations performance metrics.
(C)The producers return process is subject to audit by the producer responsibility organization and the department.
(b)A collection site shall ensure that covered products are collected in the prescribed conditions required by the approved producer responsibility plan. The conditions shall include, but are not limited to, the following requirements:
(1)A covered product shall be kept in a location that allows it to remain dry at all times.
(2)A container holding a collected covered product shall be free of all contaminated discarded waste items.
(3)A collection site shall permit a processors prescribed container to be housed on site for loading and for pickup at the collection site, if the processor is approved by the producer responsibility plan.
SEC. 10.Section 42968.62 of the Public Resources Code is amended to read:42968.62.On or before September 1 of each year, the producer responsibility organization shall submit in the form and manner determined by the department an annual report and make the report publicly available on the producer responsibility organizations internet website. The report shall include all of the following information for the preceding calendar year:
(a)The producer responsibility organizations revenues and costs, with the costs according to the cost categories established in the producer responsibility plan.
(b)A summary of any anticipated changes to allocations in cost categories for the following calendar year.
(c)The square footage, yardage, weight, or other metric, as determined by the department, of covered products, by carpet type, for each of the following:
(1)Covered product that was collected.
(2)Covered product that was processed.
(3)Covered product that was recycled.
(4)Covered product that was disposed.
(d)A list of the producer responsibility organizations collection sites, by name, location, and type.
(e)An updated list of the names and contact information, including email address, phone number, and physical and mailing addresses of producers.
(f)A description of methods used to collect, transport, recycle, and divert covered products by the producer responsibility organization including a description of all of the following:
(1)How the producer responsibility organization handled and managed covered products according to the priority of waste management practices provided in Section 40051.
(2)How the producer responsibility organization maximized recycling of all covered products.
(3)How the producer responsibility organization minimized disposal of all covered products collected by the producer responsibility organization.
(4)Results of the producer responsibility organizations assessment of the efficacy of the collection, sorting, and transportation process pursuant to paragraph (8) of subdivision (h) of Section 42968.32.
(g)A description of how the producer responsibility organization improved the collection, processing, and recycling operations for covered products, including, but not limited to, pilot programs to test new processes, methods, or equipment.
(h)A description of outreach efforts and education, including, but not limited to, education and outreach provided by the producer responsibility organization for the purpose of promoting the collection, reuse, and recycling of covered products. This includes messaging on environmentally preferable purchasing.
(i)Findings from the evaluation of the comprehensive statewide education and outreach program required by subdivision (i) of Section 42968.32.
(j)A report on activities the producer responsibility organization 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.
(k)All of the following information related to grants and incentive payments provided by the producer responsibility organization pursuant to this chapter:
(1)The name and address of each recipient of a grant or incentive payment.
(2)The amount of each grant and incentive payment, with grant amounts broken down by category and by recipient.
(3)The number of applicants and recipients of a grant broken down by category.
(4)A detailed description of the criteria used to evaluate applications and to award the grants.
(5)A timeline of the process and a description of when applications were announced, the deadline to apply, the length of the review process, and the date the grants or incentive payments were awarded.
(6)An explanation of why certain recipients are chosen for incentive payments and others are not.
(7)A separate list identifying any grant or incentive payment provided to any of the following and an explanation as to why the grant or incentive payment does not involve a conflict of interest:
(A)A member of the producer responsibility organizations board of directors.
(B)A member of the governing board described in Section 42968.21.
(C)A family member or employee of a person described in subparagraph (A) or (B).
(l)A report on achievement of the performance standards required by subdivision (f) of Section 42968.32 and the progress toward meeting the performance standards. If the standards were not met, a description of efforts made to achieve the performance standards.
(m)Any other information deemed relevant by the producer responsibility organization for the department to determine compliance with the approved producer responsibility plan.
(n)Any other information required by regulations adopted pursuant to Section 42968.1.
SEC. 11.Section 42968.72 of the Public Resources Code is amended to read:42968.72.(a)If the producer responsibility organization knowingly or intentionally violates this chapter three or more times, the department may determine the producer responsibility organization permanently ineligible to act as the producer responsibility organization on behalf of producers to design, submit, and administer a producer responsibility plan pursuant to this chapter.
(b)If the producer responsibility organization becomes ineligible pursuant to subdivision (a), then the department may revoke approval of the producer responsibility organization pursuant to paragraph (1) of subdivision (c) of Section 42968.71.
SEC. 12.Section 42973.7 of the Public Resources Code is amended to read:42973.7.(a)The carpet stewardship organization shall create a governing board for the program and the voting members of the governing board shall be appointed as follows:
(1)The carpet stewardship organization shall appoint eight voting members with at least one voting member who is a representative of the Carpet and Rug Institute.
(2)The Speaker of the Assembly shall appoint three voting members, one representing each of the following:
(A)An environmental organization that is involved in promoting recycling programs and the circular economy.
(B)A retailer that sells covered products in California.
(C)A labor representative from a floor covering joint apprenticeship program in California that is approved by the Division of Apprenticeship Standards. The labor representative shall alternate from northern California and southern California every two years.
(3)The President pro Tempore of the Senate shall appoint two voting members, one representing each of the following:
(A)A collector or hauler who participates in the California carpet stewardship program.
(B)A recycler of carpet located in California.
(b)A carpet stewardship organization shall pay the travel costs and other expenses for the voting members identified in subdivision (a) to participate in all meetings of the governing board.
SEC. 13.Section 42976 of the Public Resources Code is amended to read:42976.On or before September 1 of each year, a manufacturer of carpet sold in the state shall, individually or through a carpet stewardship organization, submit to the department a report describing its activities to achieve the purposes of this chapter, as described in Section 42970, and to comply with Section 42975. At a minimum, the report shall include all of the following:
(a)The amount of carpet sold by square yards and weight, in the state during the reporting period. A carpet stewardship organization with more than one manufacturer may use average weight.
(b)The amount of postconsumer carpet recycled, by weight, during the reporting period.
(c)The amount of postconsumer carpet recovered but not recycled, by weight, and its ultimate disposition.
(d)The total cost of implementing the carpet stewardship plan.
(e)An evaluation of the effectiveness of the carpet stewardship plan, and anticipated steps, if needed, to improve performance.
(f)Examples of educational materials that were provided to consumers during the reporting period.
(g)All of the following information related to grants awarded by the carpet stewardship organization pursuant to this chapter:
(1)The name and address of each recipient of a grant or subsidy.
(2)The amount of each grant and subsidy, with grant amounts broken down by category and by recipient.
(3)The number of applicants and recipients of a grant broken down by category.
(4)A detailed description of the criteria used to evaluate applications and to award the grants.
(5)A timeline of the process and a description of when applications were announced, the deadline to apply, the length of the review process, and the date the grants and subsidies were awarded.
(6)An explanation of why certain recipients are chosen for grants and subsidies and others are not.
(7)A separate list identifying any grant or subsidy provided to any of the following and an explanation as to why the grant or subsidy does not involve a conflict of interest:
(A)A member of the carpet stewardship organizations board of directors.
(B)A member of the governing board described in Section 42973.7.
(C)A family member or employee of a person described in subparagraph (A) or (B).
SEC. 14.Section 42978 of the Public Resources Code is amended to read:42978.(a)An administrative 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)Twenty-five thousand dollars ($25,000) per day if the violation is intentional or knowing.
(b)In assessing or reviewing the amount of an administrative 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.
For purposes of this chapter, the following definitions apply:
(a)Apprenticeship program means a program approved by the Chief of the Division of Apprenticeship Standards for training apprentice and journey-level carpet installers in proper carpet installation, reuse, and recycling practices to maximize the chances of achieving the goals of the program.
(b)Authorized collector means a person or entity that has entered into an agreement with the producer responsibility organization to collect covered products.
(c)Brand means a name, symbol, word, or mark that identifies a covered product rather than its components, and attributes the covered product to the owner or licensee of the brand as the producer.
(d)(1)Carpet means a manufactured article that is used in commercial or residential buildings affixed or placed on the floor or building walking surface as a decorative or functional building interior feature and that is primarily constructed of a top visible surface of synthetic or natural face fibers or yarns or tufts attached to a backing system derived from synthetic or natural materials.
(2)Carpet includes, but is not limited to, a commercial or a residential broadloom carpet or modular carpet tiles.
(3)Carpet does not include a rug, pad, cushion, or underlayment used in conjunction with, or separately from, a carpet.
(e)Closed loop recycling means recycling in which products or materials are reclaimed and returned to the original process or processes in which they were generated and they are reused in the production process.
(f)Collection site means and includes, but is not limited to, a carpet recycling center, municipal facility that accepts carpet, retailer that sells a covered product, producers regional distribution center, or solid waste facility that has agreed to be a collection site for the producer responsibility organization, as described in Section 42968.23.
(g)Consumer means a purchaser, owner, or lessee of a covered product, including a person, business, corporation, limited partnership, nonprofit organization, or governmental entity.
(h)(1)Covered product means carpet.
(2)Covered product does not include carpet that meets the requirements in Section 42357 to be labeled compostable.
(i)Department means the Department of Resources Recycling and Recovery.
(j)Environmental nongovernmental organization means a nonprofit organization established to address environmental issues related to waste and recycling.
(k)Permanent collection site means a permanent location in the state where discarded covered product may be returned at no cost, by a consumer or another party on behalf of a consumer, to be reused, recycled, or otherwise managed.
(l)Postconsumer covered product means a covered product that is no longer used for its manufactured purpose.
(m)(1)Postconsumer recycled content means material derived from postconsumer covered product.
(2)Postconsumer recycled content does not include material derived from recycled beverage containers, as defined in Section 14505.
(n)Processor means a company that uses a process, including, but not limited to, shredding, grinding, sheering, or depolymerization, to convert discarded covered products into finished recycled output that is ready to be used as an input material for manufacturing products.
(o)(1)Producer means a person who manufactures a covered product and who sells, offers for sale, or distributes a covered product in or into the state under that persons own name or brand.
(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 or exclusive licensee of a brand or trademark under which the covered product is sold or distributed in or into the state, whether or not 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 party that imports the covered product into the state for sale, distribution, or installation.
(4)If there is no person in the state who is the producer for purposes of paragraph (1), (2), or (3), then the producer of the covered product is the distributor, wholesaler, or retailer who sells the product in or into the state.
(p)Producer responsibility organization means an organization that is exempt from taxation under Section 501(c)(3) of the United States Internal Revenue Code of 1986, is formed for the purpose of implementing a producer responsibility plan to meet the requirements of this chapter, and is approved by the department pursuant to Section 42968.21.
(q)Producer responsibility plan means the plan developed by the producer responsibility organization that complies with Section 42968.32 and is submitted to the department for approval pursuant to Section 42968.30.
(r)(1)Recycle or recycling means the process of 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 that meet the quality standards necessary to be used in the marketplace.
(2)Recycle or recycling does not include any of the following:
(A)Combustion.
(B)Incineration.
(C)Energy generation.
(D)Fuel production, except for anaerobic digestion of source separated organic materials.
(E)Other forms of disposal.
(3)To be considered recycled, covered products shall be sent to a responsible end market.
(s)Retailer means a person who offers new covered products in a retail sale, as defined in Section 6007 of the Revenue and Taxation Code, including a retail sale through any means, including remote offerings such as sales outlets, catalogs, or an internet website, online marketplace, or other similar electronic means.
(t)(1)Sell or sale means a transfer of title of a covered product for consideration, including a remote sale conducted through a sales outlet, catalog, or internet website, online marketplace, or similar electronic means.
(2)Sell or sale includes a lease through which a covered product is provided to a consumer by a distributer, importer, manufacturer, retailer, wholesaler, or event carpet and flooring rental service.
(3)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.
(u)Solid waste facility means a solid waste facility, as defined in Section 40194, that accepts under its normal operating conditions covered materials for collection, storing, and handling, whether for recycling or disposal.
(v)Wholesaler means a person who offers new covered product for sale in this state in a sale that is not a retail sale, as defined in Section 6007 of the Revenue and Taxation Code, and in which the covered product is intended to be resold.
SEC. 2.Section 42968.1 of the Public Resources Code is amended to read:42968.1.The department shall adopt regulations to implement this chapter in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The regulations shall have an effective date no later than January 1, 2028.
SEC. 3.Section 42968.4 of the Public Resources Code is amended to read:42968.4.(a)Subject to subdivision (b), a producer shall publish on its internet website, for each of its covered products, the components that constitute more than 1 percent of the total composition of the product by weight and any intentionally added component that is listed by the Department of Toxic Substances Control as a Candidate Chemical pursuant to Section 69502.2 of Title 22 of the California Code of Regulations.
(b)Subdivision (a) does not require a producer to reveal a trade secret, as defined in Section 3426.1 of the Civil Code.
SEC. 4.Section 42968.21 of the Public Resources Code is amended to read:42968.21.(a)The department shall approve a producer responsibility organization if it meets the requirements of this chapter, including all of the following:
(1)The producer responsibility organization shall create a governing board for the program and the voting members of the governing board shall be appointed as follows:
(A)The producer responsibility organization shall appoint eight voting members with at least one voting member who is a representative of the Carpet and Rug Institute.
(B)The Speaker of the Assembly shall appoint three voting members, one representing each of the following:
(i)An environmental organization that is involved in promoting recycling programs and the circular economy.
(ii)A retailer that sells covered products in California.
(iii)A labor representative from a floor covering joint apprenticeship program in California that is approved by the Division of Apprenticeship Standards. The labor representative shall alternate from northern California and southern California every two years.
(C)The President pro Tempore shall appoint two voting members, one representing each of the following:
(i)A collector or hauler who participates in the California producer responsibility program.
(ii)A recycler of carpet located in California.
(2)A producer responsibility organization shall pay the travel costs and other expenses for the nonvoting voting members identified in paragraph (1) to participate in all meetings of the governing board.
(3)The producer responsibility organization shall demonstrate in its producer responsibility plan 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.
(4)The activities of the producer responsibility organization are limited to carrying out the requirements of this chapter.
(b)In the event that the department determines that the producer responsibility organization no longer meets the requirements of this chapter or fails to implement or administer an approved producer responsibility plan in a manner that effectuates the purposes of this chapter, the department may revoke its approval of the producer responsibility plan pursuant to paragraph (1) of subdivision (c) of Section 42968.71, and may approve another producer responsibility plan.
(c)(1)Upon approval of a producer responsibility plan pursuant to Section 42968.30, a producer shall not sell, offer for sale, import, or distribute a covered product in the state unless all of the following are met:
(A)The producer is a participant of the producer responsibility organization.
(B)The covered product is accounted for in the producer responsibility plan.
(C)The department has approved the producer responsibility plan.
(2)If a person does not qualify as a producer and is not subject to this chapter before or upon approval of a producer responsibility plan, but after the approval of a producer responsibility plan the person meets the definition of a producer, then that person shall become a participant of the producer responsibility organization and comply with the requirements of this chapter prior to beginning to sell, offer for sale, import, or distribute covered products in the state.
(d)A producer not in compliance with this chapter is subject to penalties pursuant to this chapter if a covered product sold or offered for sale by the producer is not subject to a producer responsibility plan that has been approved by the department pursuant to Section 42968.30.
SEC. 5.Section 42968.23 of the Public Resources Code is amended to read:42968.23.(a)(1)The producer responsibility organization shall include as a collection site under its producer responsibility plan a solid waste facility that offers in writing to participate in the producer responsibility plan and agrees to comply with any program operator requirements that are consistent with the approved producer responsibility plan.
(2)The producer responsibility organization shall include the solid waste facility as a collection site within 90 days of receiving the written offer to participate, confirming that the offering entity will comply with any producer responsibility organization requirements that are consistent with an approved producer responsibility plan.
(3)The producer responsibility organization shall not be required to respond to offers pursuant to this subdivision until its producer responsibility plan has been approved by the department.
(b)The producer responsibility organization may suspend or terminate use of 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 producer responsibility organization pursuant to subdivision (h) of Section 42968.32.
(c)A participant of the producer responsibility organization with an approved producer responsibility plan shall comply with the requirements of this chapter. The producer responsibility organization shall notify the department within 30 calendar days of any the following:
(1)The end of any three-month period in which the producer responsibility organization unsuccessfully attempted to obtain a fee, records, or information from a participant producer, or received incomplete or incorrect records or information required by this chapter.
(2)The date a producer no longer participates in the producer responsibility organizations approved producer responsibility plan.
(3)Any instance of noncompliance by a participant producer.
SEC. 6.Section 42968.30 of the Public Resources Code is amended to read:42968.30.(a)Within 12 months of the effective date of the regulations adopted by the department pursuant to Section 42968.1, the producer responsibility organization shall develop and submit to the department a complete producer responsibility plan, in accordance with the requirements of this chapter, for the collection, transportation, recycling, and the safe and proper management of covered products in the state.
(b)(1)The department shall review the producer responsibility plan for compliance with this chapter and may approve or disapprove the producer responsibility plan within 120 days of receipt of the producer responsibility plan.
(2)If the department disapproves a revised producer responsibility plan, the department shall explain how the revised producer responsibility plan does not comply with this chapter and provide written notice to the producer responsibility organization within 60 days of disapproval.
(c)If the department disapproves a producer responsibility plan submitted by the producer responsibility organization, the department shall explain how the producer responsibility plan does not comply with this chapter and provide written notice to the producer responsibility organization within 60 days of disapproval. The producer responsibility organization may resubmit to the department a revised producer responsibility plan within 30 days of the date the written notice was issued, and the department shall review the revised producer responsibility plan within 60 days of its receipt of the resubmittal. The producer responsibility organization shall then revise and resubmit the producer responsibility plan consistent with the departments direction within 30 days, otherwise the disapproval is final and the producer responsibility organization and producers may be subject to penalties. Within 24 months of the effective date of the regulations adopted by the department pursuant to Section 42968.1, the producer responsibility organization shall have a complete producer responsibility plan approved by the department and each producer shall be subject to an approved producer responsibility plan to be in compliance with this chapter.
(d)The approved producer responsibility plan shall be a public record, except that financial or sales data reported to the department by the producer responsibility organization 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 to any other entity.
SEC. 7.Section 42968.32 of the Public Resources Code is amended to read:42968.32.A producer responsibility plan for covered products shall do all of the following:
(a)Be designed to accept and manage all postconsumer covered products.
(b)Include the name and contact information of each producer and brand covered under the producer responsibility plan. The contact information shall include the producers email address, phone number, and mailing and physical address.
(c)Explain the producer responsibility organizations funding methods, and explain how those methods will fully fund the producer responsibility organization.
(d)(1)Include the fee required by Section 42968.51 and a description of how it is calculated.
(2)Include the fee required by Section 42968.52, a description of how it is calculated, and an explanation of how it complies with Section 42968.52.
(e)Include a five-year budget that establishes a funding level sufficient to operate the producer responsibility organization in a prudent and responsible manner. The budget shall demonstrate how estimated revenues will cover all budgeted costs for each cost category. Budgeted costs shall include, but not be limited to, administrative costs, education and outreach costs, operational costs, capital costs, and a reserve.
(1)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 are defined in the regulations adopted pursuant to Section 42968.1. For purposes of this paragraph, producer responsibility organization implementation begins once the department approves the producer responsibility organizations producer responsibility plan, except the departments costs shall include actual regulatory development costs and other startup costs incurred prior to producer responsibility plan submittal and approval.
(2)The reserve shall include funds to operate the producer responsibility organization should there be unexpected events, losses of income, or large unbudgeted expenses. It shall also protect the recycling infrastructure the producer responsibility organization relies on in its producer responsibility plan during any lapse in producer participation during the life of the program. The reserve cost category shall include a reserve level amount and description justifying the reserve level amount indicated. The producer responsibility organization shall maintain reserve funds sufficient to operate the producer responsibility plan for no less than six months. In the event that a new producer responsibility organization is approved by the department, the producer responsibility organization shall establish its reserve and maintain the required reserve fund balance by the end of the second year of producer responsibility plan operation. In the event that the producer responsibility organizations producer responsibility plan expires or is revoked, the reserve balance shall be transferred to a successor producer responsibility organization or a trustee, pursuant to subdivision (j).
(f)Include quantifiable five-year and annual performance standards and metrics for each covered product category until such time as the department publishes performance standards pursuant to Section 42968.34. The producer responsibility organization shall amend its producer responsibility plan to meet the performance standards published by the department. Performance standards may include, but are not limited to, collection, reduction in disposal, and maximizing recycling.
(g)(1)Include provisions for all of the following:
(A)The ability for people to drop off, at no charge, postconsumer carpet at a recycler, carpet recycling center, permitted solid waste facility, a collection location approved by the producer responsibility organization, or other municipal facility that accepts carpet.
(B)The payment of a reasonable amount to the facilities described in subparagraph (A) for accepting, collecting, storing, transporting, and handling of postconsumer carpet.
(C)Facilities described in subparagraph (A) that are open at least 20 hours per week over at least four days per week. Facilities described in subparagraph (A) shall be available on Saturdays, as follows:
(i)For a county with a population of 25,000 people or more, 25 percent of facilities described in subparagraph (A) shall be open every Saturday.
(ii)For a county with a population of fewer than 25,000 people, at least two Saturdays each month.
(iii)If a county is part of a regional agency, as defined in Section 40181, then the counties of the regional agency shall count as one county to meet the requirement of one facility described in subparagraph (A) site per county.
(D)Notwithstanding subparagraph (C), facilities described in subparagraph (A) in a county with a population of fewer than 5,000 people shall only be required to meet the minimum hours described in subparagraph (C) or have Saturday operation at least two Saturdays a month.
(E)Collection sites in each county of the state that provide for a reasonable geographic spread of permanent collection sites and an explanation for the geographic spread.
(2)The department may by regulation adjust the minimum number of required collection sites described in paragraph (1) to ensure that consumers have sufficient convenient access to collection sites, applicable to a producer responsibility plan addressing collection of covered products, if the department has substantial evidence that allowing for this adjustment will increase the collection of covered products or is otherwise justified considering the population or geographic attributes of the county. For counties bordering another state, the number of collection sites within that county may include a facility located in an adjacent state if that facility is regularly involved in the management of that countys solid waste and recyclables.
(h)Describe how collection sites will be authorized and managed, including all of the following:
(1)The process by which the producer responsibility organization will provide for the collection, storage, and transport of covered products from the collection sites to an authorized recycling facility.
(2)How the producer responsibility organization will ensure the cost-effective sorting of covered products using the best available technology to avoid any recyclable materials from being disposed.
(3)How the producer responsibility organization will maintain all collection and transport records and make them available to the department upon request.
(4)A list of all proposed rules, conditions, and requirements for authorized collectors, including a template proposed agreement.
(5)How the producer responsibility organization will maximize the recycling of covered products, including prioritizing reuse and closed loop recycling.
(6)How the producer responsibility organization will maximize the collection and reuse of convention carpet, including no less than 20 percent reuse by 2028.
(7)The process by which covered products will be managed following collection at collection sites, including:
(A)How covered products will be handled and managed according to the waste hierarchy as defined in Section 40051.
(B)How the producer responsibility organization will maximize the recycling of covered products.
(C)How the producer responsibility organization will minimize disposal of covered products collected by the producer responsibility organization.
(8)A description of the producer responsibility organizations annual assessment and the metrics it will use to determine how collection, sorting, and transportation outcomes aligned with projections.
(9)How the producer responsibility organization will improve the collection, processing, and recycling operations for covered products, including, but not limited to, pilot programs to test new processes, methods, or equipment.
(10)How collection sites will be operated to ensure that covered products are collected at no cost, safely, and handle covered product in accordance with all applicable state and federal law.
(i)(1)Describe the statewide education and outreach programs efforts to various audiences, including, but not limited to, consumers, commercial building owners, covered product installation contractors, construction and demolition contractors, retailers, and wholesalers to promote their participation in achieving the purposes of the producer responsibility plan. These education and outreach materials shall include, but are not limited to, any of the following:
(A)Signage that is prominently displayed and easily visible.
(B)Written materials and templates of materials to be provided to covered product installation contractors and consumers at the time of purchase or delivery or both.
(C)Promotional materials or activities, or both, that explain the purpose of the producer responsibility organization and the means by which it is being carried out.
(D)An internet website that publicizes the location of collection sites and provides information on how to drop off covered products at the free and convenient network of collection sites offered by the producer responsibility organization, including any information reasonably necessary to safely and conveniently access the collection and recycling services offered by the producer responsibility organization.
(E)All signage and materials required for collection sites by the producer responsibility organization, and a description of the method by which collection sites can access replacement materials at no cost to the collection site.
(F)A description of efforts to support participation by all California communities, including a description of efforts to communicate in languages other than English.
(G)A description of strategies, goals, and metrics used to determine the success of the producer responsibility plan implementation and statewide education and outreach program.
(2)The statewide education and outreach program shall promote the safe and proper management of covered products, including source reduction and environmentally preferable purchasing of covered products.
(3)The statewide education and outreach plan program shall include information for consumers about how to avoid improper disposal of covered products.
(4)The statewide education and outreach program shall include a survey to consumers and contractors regarding their awareness of the producer responsibility plan, their use of resources available to them under the producer responsibility plan, including collection sites, and why they do or do not use those resources. The survey shall occur once every three years.
(j)Include a contingency plan that takes effect in the event the producer responsibility 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 producer responsibility plan, subject to the direction of the department, until that time as a new producer responsibility plan is approved. Upon producer responsibility plan expiration or revocation of the producer responsibility plan, the balance of the producer responsibility organizations operating reserves collected pursuant to subdivision (d) shall be transferred to the control of the trustee within five calendar days, along with all documents, digital records, contracts, and files related to the operation of the producer responsibility plan.
(k)Allocate annual grants to apprenticeship programs for training apprentices and journey-level carpet installers in proper carpet recycling techniques, including installation and removal techniques that maximize the recyclability of carpet. The producer responsibility plan shall provide for annual grants to joint apprenticeship programs approved by the Division of Apprenticeship Standards to train carpet installers, with the amount divided evenly between programs in northern California and southern California.
(l)(1)Prioritize expenditure of assessments collected pursuant to Section 42968.52 on activities to carry out the producer responsibility plan in California.
(2)Commencing with the fiscal year beginning July 1 of the year following plan approval pursuant to Section 42968.30, and for each fiscal year thereafter, the The program shall annually allocate 8 percent of assessments collected pursuant to Section 42968.52, as determined by the department, one million dollars ($1,000,000), plus the cost of living adjustment pursuant to subparagraph (B) of paragraph (4), for grants to apprenticeship programs, programs pursuant to subparagraph (A) of paragraph (4), subject to the requirements and conditions of this section. Any portion of the 8 percent that is these funds that are not awarded and used in a fiscal year shall be credited to the amount to be allocated or awarded in the following fiscal year pursuant to this section, thereby reducing the amount allocated or awarded in the following fiscal year by the amount of the credit.
(3)An apprenticeship program shall apply to the producer responsibility organization for a grant. The apprenticeship program shall submit a report pursuant to subparagraph (E) of paragraph (4) to the producer responsibility organization and the department outlining its expenditure of the grant funds for purposes of this program prior to receipt of new grants.
(4)(A) Consistent with subparagraph (A) of paragraph (4) of subdivision (a) of Section 42972, commencing on January 1, 2027, and annually thereafter, the program shall allocate one million dollars ($1,000,000) to an apprenticeship program operated by a labor organization in both of the following groupings of counties, subject to the requirements of this paragraph:
(i)An apprenticeship program that includes, but is not limited to, the Counties of Alameda, Contra Costa, Del Norte, Fresno, Humboldt, Kings, Lake, Madera, Marin, Mariposa, Mendocino, Merced, Monterey, Napa, San Benito, San Francisco, San Joaquin, San Mateo, Santa Clara, Santa Cruz, Solano, Sonoma, Stanislaus, and Tulare.
(ii)An apprenticeship program that includes, but is not limited to, the Counties of Imperial, Inyo, Kern, Kings, Los Angeles, Mono, Orange, Riverside, San Bernardino, San Diego, Santa Barbara, Tulare, and Ventura.
(B)Commencing on January 1, 2028, and annually thereafter, the funding amounts shall be adjusted by the producer responsibility organization to reflect changes in the California Consumer Price Index, rounded to the nearest one thousand dollars ($1,000), not to exceed 3 percent in any year, subject to available funds.
(C)An application for funding shall be submitted on or before February 15 of each year. Grants shall be awarded on or before March 15 of each year, except that grants may be divided into two payments, with the second payment provided on or before July 1 of the year of the award.
(D)The producer responsibility organization may, at its sole discretion, authorize a one-time extension of up to three months solely to complete an apprenticeship program already underway. Any funds not expended within the extension period shall revert to the producer responsibility organization.
(E)Prior to receipt of any subsequent grant, each apprenticeship program receiving funding under this paragraph shall submit a report to the producer responsibility organization and the department outlining the expenditure of grant funds for purposes of this program. The report shall include all of the following:
(i)Total funds received and expended.
(ii)Utilization of funds, categorized by expense type, including receipts and invoices for preapproved supplies and equipment.
(iii)Number of individuals trained.
(iv)Demographic data, if required by the producer responsibility organization.
(v)Cost per trainee.
(vi)Program outcomes and performance metrics.
(vii)Any remaining unexpended funds.
(viii)Other information pertinent to the program.
(m)Provide for the payment to a collection site for accepting, collecting, storing, transporting, and handling covered products in an amount determined by the collection site and the producer responsibility organization. Payment of these costs shall be reflected in the budget pursuant to subdivision (e).
(n)Explain how producers will use standardized stamping or some other means to provide a visual mark on the back of a covered product that provides the name of the producer, the date of manufacture, and a listing of the types of face fibers and backing materials contained in the product. This requirement to implement standardized stamping or other means to provide a visual mark shall become operative six months after the effective date of the regulations adopted by the department pursuant to Section 42968.1 or July 1, 2028, whichever is later.
(o)Require carpet to contain 5 percent of postconsumer recycled carpet content by 2028. The department may, for the year 2029 and any year thereafter, set the rate for postconsumer recycled carpet to be required in carpet.
(p)Include written certification by an authorized representative of the producer responsibility organization that, at the time of submission to the department, the producer responsibility plan, including all aspects of the producer responsibility plan related to the collection, transportation, and management of covered products, is in compliance with all applicable state and federal laws and regulations.
SEC. 8.Section 42968.34 of the Public Resources Code is amended to read:42968.34.(a)The department may establish, review, and may adjust performance standards based on information included in the producer responsibility plan and annual reports, other information provided by the producer responsibility organization, department waste characterization studies, and economic and any other relevant information.
(b)Performance standards published by the department pursuant to this section shall not be subject to the requirements of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
SEC. 9.Section 42968.40 of the Public Resources Code is amended to read:42968.40.(a)(1)No later than January 1, 2029, a person that, as part of the installation of a covered product, removes a covered product from a residence or business shall transport, or contract to transport, all of the removed covered products to a collection site. Covered material collected at a collection site shall be transported to a recycling facility designated by the producer responsibility organization.
(2)Paragraph (1) does not apply to a covered product if all of the following are met:
(A)The covered product is returned to its producer.
(B)The producer collects, maintains, and provides to the producer responsibility organization, the information necessary for the collection to be included in the producer responsibility organizations performance metrics.
(C)The producers return process is subject to audit by the producer responsibility organization and the department.
(b)A collection site shall ensure that covered products are collected in the prescribed conditions required by the approved producer responsibility plan. The conditions shall include, but are not limited to, the following requirements:
(1)A covered product shall be kept in a location that allows it to remain dry at all times.
(2)A container holding a collected covered product shall be free of all contaminated discarded waste items.
(3)A collection site shall permit a processors prescribed container to be housed on site for loading and for pickup at the collection site, if the processor is approved by the producer responsibility plan.
SEC. 10.Section 42968.62 of the Public Resources Code is amended to read:42968.62.On or before September 1 of each year, the producer responsibility organization shall submit in the form and manner determined by the department an annual report and make the report publicly available on the producer responsibility organizations internet website. The report shall include all of the following information for the preceding calendar year:
(a)The producer responsibility organizations revenues and costs, with the costs according to the cost categories established in the producer responsibility plan.
(b)A summary of any anticipated changes to allocations in cost categories for the following calendar year.
(c)The square footage, yardage, weight, or other metric, as determined by the department, of covered products, by carpet type, for each of the following:
(1)Covered product that was collected.
(2)Covered product that was processed.
(3)Covered product that was recycled.
(4)Covered product that was disposed.
(d)A list of the producer responsibility organizations collection sites, by name, location, and type.
(e)An updated list of the names and contact information, including email address, phone number, and physical and mailing addresses of producers.
(f)A description of methods used to collect, transport, recycle, and divert covered products by the producer responsibility organization including a description of all of the following:
(1)How the producer responsibility organization handled and managed covered products according to the priority of waste management practices provided in Section 40051.
(2)How the producer responsibility organization maximized recycling of all covered products.
(3)How the producer responsibility organization minimized disposal of all covered products collected by the producer responsibility organization.
(4)Results of the producer responsibility organizations assessment of the efficacy of the collection, sorting, and transportation process pursuant to paragraph (8) of subdivision (h) of Section 42968.32.
(g)A description of how the producer responsibility organization improved the collection, processing, and recycling operations for covered products, including, but not limited to, pilot programs to test new processes, methods, or equipment.
(h)A description of outreach efforts and education, including, but not limited to, education and outreach provided by the producer responsibility organization for the purpose of promoting the collection, reuse, and recycling of covered products. This includes messaging on environmentally preferable purchasing.
(i)Findings from the evaluation of the comprehensive statewide education and outreach program required by subdivision (i) of Section 42968.32.
(j)A report on activities the producer responsibility organization 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.
(k)All of the following information related to grants and incentive payments provided by the producer responsibility organization pursuant to this chapter:
(1)The name and address of each recipient of a grant or incentive payment.
(2)The amount of each grant and incentive payment, with grant amounts broken down by category and by recipient.
(3)The number of applicants and recipients of a grant broken down by category.
(4)A detailed description of the criteria used to evaluate applications and to award the grants.
(5)A timeline of the process and a description of when applications were announced, the deadline to apply, the length of the review process, and the date the grants or incentive payments were awarded.
(6)An explanation of why certain recipients are chosen for incentive payments and others are not.
(7)A separate list identifying any grant or incentive payment provided to any of the following and an explanation as to why the grant or incentive payment does not involve a conflict of interest:
(A)A member of the producer responsibility organizations board of directors.
(B)A member of the governing board described in Section 42968.21.
(C)A family member or employee of a person described in subparagraph (A) or (B).
(l)A report on achievement of the performance standards required by subdivision (f) of Section 42968.32 and the progress toward meeting the performance standards. If the standards were not met, a description of efforts made to achieve the performance standards.
(m)Any other information deemed relevant by the producer responsibility organization for the department to determine compliance with the approved producer responsibility plan.
(n)Any other information required by regulations adopted pursuant to Section 42968.1.
SEC. 11.Section 42968.72 of the Public Resources Code is amended to read:42968.72.(a)If the producer responsibility organization knowingly or intentionally violates this chapter three or more times, the department may determine the producer responsibility organization permanently ineligible to act as the producer responsibility organization on behalf of producers to design, submit, and administer a producer responsibility plan pursuant to this chapter.
(b)If the producer responsibility organization becomes ineligible pursuant to subdivision (a), then the department may revoke approval of the producer responsibility organization pursuant to paragraph (1) of subdivision (c) of Section 42968.71.
SEC. 12.Section 42973.7 of the Public Resources Code is amended to read:42973.7.(a)The carpet stewardship organization shall create a governing board for the program and the voting members of the governing board shall be appointed as follows:
(1)The carpet stewardship organization shall appoint eight voting members with at least one voting member who is a representative of the Carpet and Rug Institute.
(2)The Speaker of the Assembly shall appoint three voting members, one representing each of the following:
(A)An environmental organization that is involved in promoting recycling programs and the circular economy.
(B)A retailer that sells covered products in California.
(C)A labor representative from a floor covering joint apprenticeship program in California that is approved by the Division of Apprenticeship Standards. The labor representative shall alternate from northern California and southern California every two years.
(3)The President pro Tempore of the Senate shall appoint two voting members, one representing each of the following:
(A)A collector or hauler who participates in the California carpet stewardship program.
(B)A recycler of carpet located in California.
(b)A carpet stewardship organization shall pay the travel costs and other expenses for the nonvoting voting members identified in subdivision (a) to participate in all meetings of the governing board.
SEC. 13.Section 42976 of the Public Resources Code is amended to read:42976.On or before September 1 of each year, a manufacturer of carpet sold in the state shall, individually or through a carpet stewardship organization, submit to the department a report describing its activities to achieve the purposes of this chapter, as described in Section 42970, and to comply with Section 42975. At a minimum, the report shall include all of the following:
(a)The amount of carpet sold by square yards and weight, in the state during the reporting period. A carpet stewardship organization with more than one manufacturer may use average weight.
(b)The amount of postconsumer carpet recycled, by weight, during the reporting period.
(c)The amount of postconsumer carpet recovered but not recycled, by weight, and its ultimate disposition.
(d)The total cost of implementing the carpet stewardship plan.
(e)An evaluation of the effectiveness of the carpet stewardship plan, and anticipated steps, if needed, to improve performance.
(f)Examples of educational materials that were provided to consumers during the reporting period.
(g)All of the following information related to grants awarded by the carpet stewardship organization pursuant to this chapter:
(1)The name and address of each recipient of a grant or subsidy.
(2)The amount of each grant and subsidy, with grant amounts broken down by category and by recipient.
(3)The number of applicants and recipients of a grant broken down by category.
(4)A detailed description of the criteria used to evaluate applications and to award the grants.
(5)A timeline of the process and a description of when applications were announced, the deadline to apply, the length of the review process, and the date the grants and subsidies were awarded.
(6)An explanation of why certain recipients are chosen for grants and subsidies and others are not.
(7)A separate list identifying any grant or subsidy provided to any of the following and an explanation as to why the grant or subsidy does not involve a conflict of interest:
(A)A member of the carpet stewardship organizations board of directors.
(B)A member of the governing board described in Section 42973.7.
(C)A family member or employee of a person described in subparagraph (A) or (B).
SEC. 14.Section 42978 of the Public Resources Code is amended to read:42978.(a)An administrative 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)Twenty-five thousand dollars ($25,000) per day if the violation is intentional or knowing.
(b)In assessing or reviewing the amount of an administrative 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.
For purposes of this chapter, the following definitions apply:
(a)Apprenticeship program means a program approved by the Chief of the Division of Apprenticeship Standards for training apprentice and journey-level carpet installers in proper carpet installation, reuse, and recycling practices to maximize the chances of achieving the goals of the program.
(b)Approved collection site means a solid waste facility that has agreed to be a collection site for the producer responsibility organization, as described in Section 42968.23.(c)(b)Authorized collector means a person or entity that has entered into an agreement with the producer responsibility organization to collect covered products.
(d)(c)Brand means a name, symbol, word, or mark that identifies a covered product rather than its components, and attributes the covered product to the owner or licensee of the brand as the producer.
(e)(1)Carpet means a floor or stair covering made from thick woven fabric that is used in residential buildings, commercial buildings, conventions, and events, including modular carpet tiles.(2)Carpet does not include area rugs that are 11 feet by 15 feet in size or smaller.(d)(1)Carpet means a manufactured article that is used in commercial or residential buildings affixed or placed on the floor or building walking surface as a decorative or functional building interior feature and that is primarily constructed of a top visible surface of synthetic or natural face fibers or yarns or tufts attached to a backing system derived from synthetic or natural materials.
(2)Carpet includes, but is not limited to, a commercial or a residential broadloom carpet or modular carpet tiles.
(3)Carpet does not include a rug, pad, cushion, or underlayment used in conjunction with, or separately from, a carpet.
(f)Circular economy environmental nongovernmental organization means a nonprofit organization established to promote a circular economy and to address environmental issues.(g)(e)Closed loop recycling means recycling in which products or materials are reclaimed and returned to the original process or processes in which they were generated and they are reused in the production process.
(f)Collection site means and includes, but is not limited to, a carpet recycling center, municipal facility that accepts carpet, retailer that sells a covered product, producers regional distribution center, or solid waste facility that has agreed to be a collection site for the producer responsibility organization, as described in Section 42968.23.
(h)(g)Consumer means a purchaser, owner, or lessee of a covered product, including a person, business, corporation, limited partnership, nonprofit organization, or governmental entity.
(i)(h)(1)Covered product means carpet.
(2)Covered product does not include carpet that meets the requirements in Section 42357 to be labeled compostable.
(j)(i)Department means the Department of Resources Recycling and Recovery.
(j)Environmental nongovernmental organization means a nonprofit organization established to address environmental issues related to waste and recycling.
(k)Permanent collection site means a permanent location in the state where discarded covered product may be returned at no cost, by a consumer or another party on behalf of a consumer, to be reused, recycled, or otherwise managed.
(l)(l)Postconsumer covered product means a covered product that is no longer used for its manufactured purpose.
(m)(1)Postconsumer recycled content means material derived from postconsumer covered product.
(2)Postconsumer recycled content does not include material derived from recycled beverage containers, as defined in Section 14505.
(n)Processor means a company that uses a process, including, but not limited to, shredding, grinding, sheering, or depolymerization, to convert discarded covered products into finished recycled output that is ready to be used as an input material for manufacturing products.
(o)(1)Producer means a person who manufactures a covered product and who sells, offers for sale, or distributes a covered product in or into the state under that persons own name or brand.
(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 or exclusive licensee of a brand or trademark under which the covered product is sold or distributed in or into the state, whether or not 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 party that imports the covered product into the state for sale, distribution, or installation.
(4)If there is no person in the state who is the producer for purposes of paragraph (1), (2), or (3), then the producer of the covered product is the distributor, wholesaler, or retailer who sells the product in or into the state.
(p)Producer responsibility organization means either of the following:
(1)An an organization that is exempt from taxation under Section 501(c)(3) of the United States Internal Revenue Code of 1986, is formed for the purpose of implementing a producer responsibility plan to meet the requirements of this chapter, and is approved by the department pursuant to Section 42968.21.
(2)A carpet stewardship organization, as defined in Section 42971.(q)Producer responsibility plan means the plan developed by the producer responsibility organization that complies with Section 42968.32 and is submitted to the department for approval pursuant to Section 42968.30.
(r)(1)Recycle or recycling means the process of 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 that meet the quality standards necessary to be used in the marketplace.
(2)Recycle or recycling does not include any of the following:
(A)Combustion.
(B)Incineration.
(C)Energy generation.
(D)Fuel production, except for anaerobic digestion of source separated organic materials.
(E)Other forms of disposal.
(3)To be considered recycled, covered products shall be sent to a responsible end market.
(s)Retailer means a person who offers new covered products in a retail sale, as defined in Section 6007 of the Revenue and Taxation Code, including a retail sale through any means, including remote offerings such as sales outlets, catalogs, or an internet website, online marketplace, or other similar electronic means.
(t)(1)Sell or sale means a transfer of title of a covered product for consideration, including a remote sale conducted through a sales outlet, catalog, or internet website, online marketplace, or similar electronic means.
(2)Sell or sale includes a lease through which a covered product is provided to a consumer by a distributer, importer, manufacturer, retailer, wholesaler, or retailer. event carpet and flooring rental service.
(3)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.
(u)Solid waste facility means a solid waste facility, as defined in Section 40194, that accepts under its normal operating conditions covered materials for collection, storing, and handling, whether for recycling or disposal.
(v)Wholesaler means a person who offers new covered product for sale in this state in a sale that is not a retail sale, as defined in Section 6007 of the Revenue and Taxation Code, and in which the covered product is intended to be resold.
SEC. 2.Section 42968.1 of the Public Resources Code is amended to read:42968.1.The department shall adopt regulations to implement this chapter in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). The regulations shall have an effective date no earlier than December 31, 2026. later than January 1, 2028.
SEC. 3.Section 42968.4 of the Public Resources Code is amended to read:42968.4.(a)Subject to subdivision (b), a producer shall publish on its internet website, for each of its covered products, an environmental product declaration that identifies the components and the percentage of each component used in the covered product. the components that constitute more than 1 percent of the total composition of the product by weight and any intentionally added component that is listed by the Department of Toxic Substances Control as a Candidate Chemical pursuant to Section 69502.2 of Title 22 of the California Code of Regulations.
(b)Subdivision (a) does not require a producer to reveal a trade secret, as defined in Section 3426.1 of the Civil Code.
SEC. 4.Section 42968.21 of the Public Resources Code is amended to read:42968.21.(a)The department shall approve a producer responsibility organization if it meets the requirements of this chapter, including all of the following:
(1)A governing board consisting of producers that represent the diversity of covered products placed in the market by those entities. The governing board shall include nonvoting members with representation from the following types of entities:(A)A circular economy environmental nongovernmental organization.(1)The producer responsibility organization shall create a governing board for the program and the voting members of the governing board shall be appointed as follows:
(A)The producer responsibility organization shall appoint eight voting members with at least one voting member who is a representative of the Carpet and Rug Institute.
(B)The Speaker of the Assembly shall appoint three voting members, one representing each of the following:
(i)An environmental organization that is involved in promoting recycling programs and the circular economy.
(B)(ii)A retailer that sells covered products. products in California.
(C)(iii)A labor representative from a floor covering joint apprenticeship program in northern California that is approved by the Division of Apprenticeship Standards. The labor representative shall alternate from northern California and southern California every two years.
(D)A labor representative from a floor covering joint apprenticeship program in southern California that is approved by the Division of Apprenticeship Standards.(C)The President pro Tempore shall appoint two voting members, one representing each of the following:
(i)A collector or hauler who participates in the California producer responsibility program.
(ii)A recycler of carpet located in California.
(2)A producer responsibility organization shall pay the travel costs and other expenses for the nonvoting members identified in paragraph (1) to participate in all meetings of the governing board.
(2)(3)The producer responsibility organization shall demonstrate in its producer responsibility plan 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)(4)The activities of the producer responsibility organization are limited to carrying out the requirements of this chapter.
(b)In the event that the department determines that the producer responsibility organization no longer meets the requirements of this chapter or fails to implement or administer an approved producer responsibility plan in a manner that effectuates the purposes of this chapter, the department may revoke its approval of the producer responsibility plan pursuant to paragraph (1) of subdivision (c) of Section 42968.71, and may approve another producer responsibility plan pursuant to Section 42968.72. plan.
(c)(1)Upon approval of a producer responsibility plan pursuant to Section 42968.30, or commencing January 1, 2029, 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:
(A)The producer is a participant of the producer responsibility organization.
(B)The covered product is accounted for in the producer responsibility plan.
(C)The department has approved the producer responsibility plan.
(2)If a person does not qualify as a producer and is not subject to this chapter before January 1, 2029, but, after January 1, 2029, before or upon approval of a producer responsibility plan, but after the approval of a producer responsibility plan the person meets the definition of a producer, then that person shall become a participant of the producer responsibility organization and comply with the requirements of this chapter prior to beginning to sell, offer for sale, import, or distribute covered products in the state.
(d)A producer not in compliance with this chapter is subject to penalties pursuant to this chapter if a covered product sold or offered for sale by the producer is not subject to a producer responsibility plan that has been approved by the department pursuant to Section 42968.30.
SEC. 5.Section 42968.23 of the Public Resources Code is amended to read:42968.23.(a)The producer responsibility organization shall establish a method for fully funding the producer responsibility organization in a manner that equitably distributes the producer responsibility organizations costs among participating producers, reflecting California sales volumes. The funding mechanism shall demonstrate adequate funding for all administrative and operational costs of the producer responsibility plan, to be borne by participating producers, and modulate the distribution of participating producers costs based on the cost of managing their specific covered products according to the approved producer responsibility plan.(b)42968.23.(a)(1)The producer responsibility organization shall include as an approved a collection site under its producer responsibility plan a solid waste facility that offers in writing to participate in the producer responsibility plan and agrees to comply with any program operator requirements that are consistent with the approved producer responsibility plan.
(2)The producer responsibility organization shall include the solid waste facility as an approved a collection site within 90 days of receiving the written offer to participate, confirming that the offering entity will comply with any producer responsibility organization requirements that are consistent with an approved producer responsibility plan.
(3)The producer responsibility organization shall not be required to respond to offers pursuant to this subdivision until its producer responsibility plan has been approved by the department.
(c)(b)The producer responsibility organization may suspend or terminate use of an approved 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 producer responsibility organization pursuant to subdivision (h) of Section 42968.32.
(d)(c)A participant of the producer responsibility organization with an approved producer responsibility plan shall comply with the requirements of this chapter. The producer responsibility organization shall notify the department within 30 calendar days of any the following:
(1)The end of any three-month period in which the producer responsibility organization unsuccessfully attempted to obtain a fee, records, or information from a participant producer, or received incomplete or incorrect records or information required by this chapter.
(2)The date a producer no longer participates in the producer responsibility organizations approved producer responsibility plan.
(3)Any instance of noncompliance by a participant producer.
SEC. 6.Section 42968.30 of the Public Resources Code is amended to read:42968.30.(a)Within 12 months of the effective date of the regulations adopted by the department pursuant to Section 42968.1, the producer responsibility organization shall develop and submit to the department a complete producer responsibility plan, in accordance with the requirements of this chapter, for the collection, transportation, recycling, and the safe and proper management of covered products in the state.
(b)(1)The department shall review the producer responsibility plan for compliance with this chapter and may approve or disapprove the producer responsibility plan within 120 days of receipt of the producer responsibility plan.
(2)If the department disapproves a revised producer responsibility plan, the department shall explain how the revised producer responsibility plan does not comply with this chapter and provide written notice to the producer responsibility organization within 60 days of disapproval.
(c)If the department disapproves a producer responsibility plan submitted by the producer responsibility organization, the department shall explain how the producer responsibility plan does not comply with this chapter and provide written notice to the producer responsibility organization within 60 days of disapproval. The producer responsibility organization may resubmit to the department a revised producer responsibility plan within 30 days of the date the written notice was issued, and the department shall review the revised producer responsibility plan within 60 days of its receipt of the resubmittal. The producer responsibility organization shall then revise and resubmit the producer responsibility plan consistent with the departments direction within 30 days, otherwise the disapproval is final and the producer responsibility organization and producers may be subject to penalties. Within 24 months of the effective date of the regulations adopted by the department pursuant to Section 42968.1, the producer responsibility organization shall have a complete producer responsibility plan approved by the department and each producer shall be subject to an approved producer responsibility plan to be in compliance with this chapter.
(d)The approved producer responsibility plan shall be a public record, except that financial or sales data reported to the department by the producer responsibility organization 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 to any other entity.
(e)For any producer responsibility plan currently in effect as of January 1, 2025, that producer responsibility plan shall continue in effect under its current terms and assessment structure, operating based on the law in effect at the time of producer responsibility plan approval, until that producer responsibility plan expires or is revoked, except that the producer responsibility organization shall submit a producer responsibility plan amendment by July 1, 2025, to conform that producer responsibility plan to the requirements in subdivisions (c) and (j) of Section 42968.32, and Sections 42968.60 and 42968.61.SEC. 7.Section 42968.32 of the Public Resources Code is amended to read:42968.32.A producer responsibility plan for covered products shall do all of the following:
(a)Be designed to accept and manage all postconsumer covered products.
(b)Include the name and contact information of each producer and brand covered under the producer responsibility plan. The contact information shall include the producers email address, phone number, and mailing and physical address.
(c)Explain the producer responsibility organizations funding methods, and explain how those methods will fully fund the producer responsibility organization in a manner that equitably distributes the producer responsibility organizations costs among the producers pursuant to subdivision (a) of Section 42968.23. organization.
(d)(1)Include the fee required by Section 42968.51 and a description of how it is calculated.
(2)Include the fee required by Section 42968.52, a description of how it is calculated, and an explanation of how it complies with Section 42968.52.
(e)Include a five-year budget that establishes a funding level sufficient to operate the producer responsibility organization in a prudent and responsible manner. The budget shall demonstrate how estimated revenues will cover all budgeted costs for each cost category. Budgeted costs shall include, but not be limited to, administrative costs, education and outreach costs, operational costs, capital costs, and a reserve.
(1)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 are defined in the regulations adopted pursuant to Section 42968.1. For purposes of this paragraph, producer responsibility organization implementation begins once the department approves the producer responsibility organizations producer responsibility plan, except the departments costs shall include actual regulatory development costs and other startup costs incurred prior to producer responsibility plan submittal and approval.
(2)The reserve shall include funds to operate the producer responsibility organization should there be unexpected events, losses of income, or large unbudgeted expenses. It shall also protect the recycling infrastructure the producer responsibility organization relies on in its producer responsibility plan during any lapse in producer participation during the life of the program. The reserve cost category shall include a reserve level amount and description justifying the reserve level amount indicated. The producer responsibility organization shall maintain reserve funds sufficient to operate the producer responsibility plan for no less than six months. In the event that a new producer responsibility organization is approved by the department, the producer responsibility organization shall establish its reserve and maintain the required reserve fund balance by the end of the second year of producer responsibility plan operation. In the event that the producer responsibility organizations producer responsibility plan expires or is revoked, the reserve balance shall be transferred to a successor producer responsibility organization or a trustee, pursuant to subdivision (j).
(f)Include quantifiable five-year and annual performance standards and metrics for each covered product category until such time as the department publishes performance standards pursuant to Section 42968.34. The producer responsibility organization shall amend its producer responsibility 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 the Administrative Procedure Act (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 recycling.
(g)(1)Describe how the producer responsibility organization will provide free dropoff and convenient collection system for covered products, which shall include approved collection sites in each county of the state that provide for a reasonable geographic spread of permanent collection(g)(1)Include provisions for all of the following:
(A)The ability for people to drop off, at no charge, postconsumer carpet at a recycler, carpet recycling center, permitted solid waste facility, a collection location approved by the producer responsibility organization, or other municipal facility that accepts carpet.
(B)The payment of a reasonable amount to the facilities described in subparagraph (A) for accepting, collecting, storing, transporting, and handling of postconsumer carpet.
(C)Facilities described in subparagraph (A) that are open at least 20 hours per week over at least four days per week. Facilities described in subparagraph (A) shall be available on Saturdays, as follows:
(i)For a county with a population of 25,000 people or more, 25 percent of facilities described in subparagraph (A) shall be open every Saturday.
(ii)For a county with a population of fewer than 25,000 people, at least two Saturdays each month.
(iii)If a county is part of a regional agency, as defined in Section 40181, then the counties of the regional agency shall count as one county to meet the requirement of one facility described in subparagraph (A) site per county.
(D)Notwithstanding subparagraph (C), facilities described in subparagraph (A) in a county with a population of fewer than 5,000 people shall only be required to meet the minimum hours described in subparagraph (C) or have Saturday operation at least two Saturdays a month.
(E)Collection sites in each county of the state that provide for a reasonable geographic spread of permanent collection sites and an explanation for the geographic spread.
(2)The department may by regulation adjust the minimum number of required approved collection sites described in paragraph (1) to ensure that consumers have sufficient convenient access to approved collection sites, applicable to a producer responsibility plan addressing collection of covered products, if the department has substantial evidence that allowing for this adjustment will increase the collection of covered products or is otherwise justified considering the population or geographic attributes of the county. For counties bordering another state, the number of approved collection sites within that county may include a facility located in an adjacent state if that facility is regularly involved in the management of that countys solid waste and recyclables.
(h)Describe how approved collection sites will be authorized and managed, including all of the following:
(1)The process by which the producer responsibility organization will provide for the collection, storage, and transport of covered products from the approved collection sites to an authorized recycling facility.
(2)How the producer responsibility organization will ensure the cost-effective sorting of covered products using the best available technology to avoid any recyclable materials from being disposed.
(3)How the producer responsibility organization will maintain all collection and transport records and make them available to the department upon request.
(4)A list of all proposed rules, conditions, and requirements for authorized collectors, including a template proposed agreement.
(5)How the producer responsibility organization will maximize the recycling of covered products, including prioritizing reuse and closed loop recycling.
(6)How the producer responsibility organization will maximize the collection and reuse of convention carpet, including no less than 20 percent reuse by 2028.
(7)The process by which covered products will be managed following collection at approved collection sites, including:
(A)How covered products will be handled and managed according to the waste hierarchy as defined in Section 40051.
(B)How the producer responsibility organization will maximize the recycling of covered products.
(C)How the producer responsibility organization will minimize disposal of covered products collected by the producer responsibility organization.
(8)A description of the producer responsibility organizations annual assessment and the metrics it will use to determine how collection, sorting, and transportation outcomes aligned with projections.
(9)How the producer responsibility organization will improve the collection, processing, and recycling operations for covered products, including, but not limited to, pilot programs to test new processes, methods, or equipment.
(10)How approved collection sites will be operated to ensure that covered products are collected at no cost, safely, and handled handle covered product in accordance with all applicable state and federal laws. law.
(i)(1)Describe the statewide education and outreach programs efforts to various audiences, including, but not limited to, consumers, commercial building owners, covered product installation contractors, construction and demolition contractors, retailers, and wholesalers to promote their participation in achieving the purposes of the producer responsibility plan. These education and outreach materials shall include, but are not limited to, any of the following:
(A)Signage that is prominently displayed and easily visible.
(B)Written materials and templates of materials to be provided to covered product installation contractors and consumers at the time of purchase or delivery, delivery or both.
(C)Promotional materials or activities, or both, that explain the purpose of the producer responsibility organization and the means by which it is being carried out.
(D)An internet website that publicizes the location of approved collection sites and provides information on how to drop off covered products at the free and convenient network of approved collection sites offered by the producer responsibility organization, including any information reasonably necessary to safely and conveniently access the collection and recycling services offered by the producer responsibility organization.
(E)All signage and materials required for approved collection sites by the producer responsibility organization, and a description of the method by which approved collection sites can access replacement materials at no cost to the approved collection site.
(F)A description of efforts to support participation by all California communities, including a description of efforts to communicate in languages other than English.
(G)A description of strategies, goals, and metrics used to determine the success of the producer responsibility plan implementation and statewide education and outreach program.
(2)The statewide education and outreach program shall promote the safe and proper management of covered products, including source reduction and environmentally preferable purchasing of covered products.
(3)The statewide education and outreach plan program shall include information for consumers about how to avoid improper disposal of covered products.
(4)The statewide education and outreach program shall include a survey to consumers and contractors regarding their awareness of the producer responsibility plan, their use of resources available to them under the producer responsibility plan, including collection sites, and why they do or do not use those resources. The survey shall occur once every three years.
(j)Include a contingency plan that takes effect in the event the producer responsibility 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 producer responsibility plan, subject to the direction of the department, until that time as a new producer responsibility plan is approved. Upon producer responsibility plan expiration or revocation of the producer responsibility plan, the balance of the producer responsibility organizations operating reserves collected pursuant to subdivision (d) shall be transferred to the control of the trustee within five calendar days, along with all documents, digital records, contracts, and files related to the operation of the producer responsibility plan.
(k)Allocate annual grants to apprenticeship programs for training apprentices and journey-level carpet installers in proper carpet recycling techniques, including installation and removal techniques that maximize the recyclability of carpet. The producer responsibility plan shall provide for annual grants to joint apprenticeship programs approved by the Division of Apprenticeship Standards to train carpet installers, with the amount divided evenly between programs in northern California and southern California.
(l)(l)(1)Prioritize expenditure of assessments collected pursuant to Section 42972 42968.52 on activities to carry out the producer responsibility plan in California.
(2)Consistent with paragraph (4) of subdivision (a) of Section 42972, commencing Commencing with the fiscal year beginning July 1, 2025, 1 of the year following plan approval pursuant to Section 42968.30, and for each fiscal year thereafter, the program shall allocate 8 percent of assessments collected pursuant to Section 42972, 42968.52, as determined by the department, for grants to apprenticeship programs, subject to the requirements and conditions of this section. Any portion of the 8 percent that is not awarded and used in a fiscal year shall be credited to the amount to be allocated or awarded in the following fiscal year pursuant to this section, thereby reducing the amount allocated or awarded in the following fiscal year by the amount of the credit.
(3)An apprenticeship program shall apply to the producer responsibility organization for a grant. The apprenticeship program shall submit a report to the producer responsibility organization and the department outlining its expenditure of the grant funds for purposes of this program prior to receipt of new grants.
(4)(A) Consistent with subparagraph (A) of paragraph (4) of subdivision (a) of Section 42972, commencing on January 1, 2027, and annually thereafter, the program shall allocate one million dollars ($1,000,000) to an apprenticeship program operated by a labor organization in both of the following groupings of counties, subject to the requirements of this paragraph:
(i)An apprenticeship program that includes, but is not limited to, the Counties of Alameda, Contra Costa, Del Norte, Fresno, Humboldt, Kings, Lake, Madera, Marin, Mariposa, Mendocino, Merced, Monterey, Napa, San Benito, San Francisco, San Joaquin, San Mateo, Santa Clara, Santa Cruz, Solano, Sonoma, Stanislaus, and Tulare.
(ii)An apprenticeship program that includes, but is not limited to, the Counties of Imperial, Inyo, Kern, Kings, Los Angeles, Mono, Orange, Riverside, San Bernardino, San Diego, Santa Barbara, Tulare, and Ventura.
(B)Commencing on January 1, 2028, and annually thereafter, the funding amounts shall be adjusted by the producer responsibility organization to reflect changes in the California Consumer Price Index, rounded to the nearest one thousand dollars ($1,000), not to exceed 3 percent in any year, subject to available funds.
(C)An application for funding shall be submitted on or before February 15 of each year. Grants shall be awarded on or before March 15 of each year, except that grants may be divided into two payments, with the second payment provided on or before July 1 of the year of the award.
(D)The producer responsibility organization may, at its sole discretion, authorize a one-time extension of up to three months solely to complete an apprenticeship program already underway. Any funds not expended within the extension period shall revert to the producer responsibility organization.
(E)Prior to receipt of any subsequent grant, each apprenticeship program receiving funding under this paragraph shall submit a report to the producer responsibility organization and the department outlining the expenditure of grant funds for purposes of this program. The report shall include all of the following:
(i)Total funds received and expended.
(ii)Utilization of funds, categorized by expense type, including receipts and invoices for preapproved supplies and equipment.
(iii)Number of individuals trained.
(iv)Demographic data, if required by the producer responsibility organization.
(v)Cost per trainee.
(vi)Program outcomes and performance metrics.
(vii)Any remaining unexpended funds.
(viii)Other information pertinent to the program.
(m)Provide for the payment to an approved a collection site for accepting, collecting, storing, transporting, and handling covered products in an amount determined by the approved collection site and the producer responsibility organization. Payment of these costs shall be reflected in the budget pursuant to subdivision (e).
(n)Explain how producers will, on and after January 1, 2027, through the use of a will use standardized stamping or some other means, means to provide a visual mark on the back of a covered product that is a synthetic material to allow expeditious sorting of the carpet, by 2027. provides the name of the producer, the date of manufacture, and a listing of the types of face fibers and backing materials contained in the product. This requirement to implement standardized stamping or other means to provide a visual mark shall become operative six months after the effective date of the regulations adopted by the department pursuant to Section 42968.1 or July 1, 2028, whichever is later.
(o)Require carpet to contain 5 percent of postconsumer recycled carpet content by 2028. The department may, for the year 2029 and any year thereafter, set the rate for postconsumer recycled carpet to be required in carpet.
(p)Include written certification by an authorized representative of the producer responsibility organization that, at the time of submission to the department, the producer responsibility plan, including all aspects of the producer responsibility plan related to the collection, transportation, and management of covered products, is in compliance with all applicable state and federal laws and regulations.
SEC. 8.Section 42968.34 of the Public Resources Code is amended to read:42968.34.(a)The department may establish, review, and may adjust performance standards based on information included in the producer responsibility plan and annual reports, other information provided by the producer responsibility organization, department waste characterization studies, and economic and any other relevant information.
(b)The department shall use sales data to establish the performance standard for recycling carpet. The department may decide how many years of sales data to use for establishing the performance standard and the producer responsibility organization may appeal that decision pursuant to appellate procedures established by the department in regulation.(b)Performance standards published by the department pursuant to this section shall not be subject to the requirements of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
SEC. 9.Section 42968.40 of the Public Resources Code is amended to read:42968.40.(a)(1)No later than January 1, 2029, a person that, as part of the installation of a covered product, removes a covered product from a residence or business shall transport, or contract to transport, all of the removed covered products to an approved a collection site. Covered material collected at an approved a collection site shall be transported to a recycling facility designated by the producer responsibility organization.
(2)Paragraph (1) does not apply to a covered product if all of the following are met:
(A)The covered product is returned to its producer.
(B)The producer collects, maintains, and provides to the producer responsibility organization, the information necessary for the collection to be included in the producer responsibility organizations performance metrics.
(C)The producers return process is subject to audit by the producer responsibility organization and the department.
(b)An approved A collection site shall ensure that covered products are collected in the prescribed conditions required by the approved producer responsibility plan. The conditions shall include, but are not limited to, the following requirements:
(1)A covered product shall be kept in a location that allows it to remain dry at all times.
(2)A container holding a collected covered product shall be free of all contaminated discarded waste items.
(3)An approved A collection site shall permit a processors prescribed container to be housed on site for loading and for pickup at the approved collection site, if the processor is approved by the producer responsibility plan.
SEC. 10.Section 42968.62 of the Public Resources Code is amended to read:42968.62.On or before July September 1 of each year, the producer responsibility organization shall submit in the form and manner determined by the department an annual report and make the report publicly available on the producer responsibility organizations internet website. The report shall include all of the following information for the preceding calendar year:
(a)The producer responsibility organizations revenues and costs, with the costs according to the cost categories established in the producer responsibility plan.
(b)A summary of any anticipated changes to allocations in cost categories for the following calendar year.
(c)Any changes to the distribution of participating producers costs pursuant to subdivision (a) of Section 42968.23.(d)(c)The square footage, yardage, weight, or other metric, as determined by the department, of covered products, by carpet type, for each of the following:
(1)Covered product that was collected.
(2)Covered product that was processed.
(3)Covered product that was recycled.
(4)Covered product that was disposed.
(e)(d)A list of the producer responsibility organizations collection sites, by name, location, and type.
(f)(e)An updated list of the names and contact information, including email address, phone number, and physical and mailing addresses of producers.
(g)(f)A description of methods used to collect, transport, recycle, and divert covered products by the producer responsibility organization including a description of all of the following:
(1)How the producer responsibility organization handled and managed covered products according to the priority of waste management practices provided in Section 40051.
(2)How the producer responsibility organization maximized recycling of all covered products.
(3)How the producer responsibility organization minimized disposal of all covered products collected by the producer responsibility organization.
(4)Results of the producer responsibility organizations assessment of the efficacy of the collection, sorting, and transportation processes process pursuant to paragraph (8) of subdivision (h) of Section 42968.32.
(h)(g)A description of how the producer responsibility organization improved the collection, processing, and recycling operations for covered products, including, but not limited to, pilot programs to test new processes, methods, or equipment.
(i)(h)A description of outreach efforts and education, including, but not limited to, education and outreach provided by the producer responsibility organization for the purpose of promoting the collection, reuse, and recycling of covered products. This includes messaging on environmentally preferable purchasing.
(j)(i)Findings from the evaluation of the comprehensive statewide education and outreach program required by subdivision (i) of Section 42968.32.
(k)(j)A report on activities the producer responsibility organization 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.
(k)All of the following information related to grants and incentive payments provided by the producer responsibility organization pursuant to this chapter:
(1)The name and address of each recipient of a grant or incentive payment.
(2)The amount of each grant and incentive payment, with grant amounts broken down by category and by recipient.
(3)The number of applicants and recipients of a grant broken down by category.
(4)A detailed description of the criteria used to evaluate applications and to award the grants.
(5)A timeline of the process and a description of when applications were announced, the deadline to apply, the length of the review process, and the date the grants or incentive payments were awarded.
(6)An explanation of why certain recipients are chosen for incentive payments and others are not.
(7)A separate list identifying any grant or incentive payment provided to any of the following and an explanation as to why the grant or incentive payment does not involve a conflict of interest:
(A)A member of the producer responsibility organizations board of directors.
(B)A member of the governing board described in Section 42968.21.
(C)A family member or employee of a person described in subparagraph (A) or (B).
(l)A report on achievement of the performance standards required by subdivision (f) of Section 42968.32 and the progress toward meeting the performance standards. If the standards were not met, a description of efforts made to achieve the performance standards.
(l)(m)Any other information deemed relevant by the producer responsibility organization for the department to determine compliance with the approved producer responsibility plan.
(m)(n)Any other information required by regulations adopted pursuant to Section 42968.1.
SEC. 11.Section 42968.72 of the Public Resources Code is amended to read:42968.72.(a)If the producer responsibility organization knowingly or intentionally violates this chapter three or more times, the department may determine the producer responsibility organization permanently ineligible to act as the producer responsibility organization on behalf of producers to design, submit, and administer a producer responsibility plan pursuant to this chapter.
(b)If the producer responsibility organization becomes ineligible pursuant to subdivision (a), then the department may revoke approval of the producer responsibility organization pursuant to paragraph (1) of subdivision (c) of Section 42968.71.
SEC. 12.Section 42973.7 of the Public Resources Code is amended to read:42973.7.(a)A The carpet stewardship organization shall include nonvoting board members with representation from the following types of entities: create a governing board for the program and the voting members of the governing board shall be appointed as follows:
(1)A circular economy environmental nongovernmental organization.(1)The carpet stewardship organization shall appoint eight voting members with at least one voting member who is a representative of the Carpet and Rug Institute.
(2)The Speaker of the Assembly shall appoint three voting members, one representing each of the following:
(A)An environmental organization that is involved in promoting recycling programs and the circular economy.
(2)(B)A retailer that sells covered products. products in California.
(3)(C)A labor representative from a floor covering joint apprenticeship program in northern California that is approved by the Division of Apprenticeship Standards. The labor representative shall alternate from northern California and southern California every two years.
(4)A labor representative from a floor covering joint apprenticeship program in southern California that is approved by the Division of Apprenticeship Standards.(3)The President pro Tempore of the Senate shall appoint two voting members, one representing each of the following:
(A)A collector or hauler who participates in the California carpet stewardship program.
(B)A recycler of carpet located in California.
(b)A carpet stewardship organization shall pay the travel costs and other expenses for the nonvoting members identified in subdivision (a) to participate in all board meetings. meetings of the governing board.
SEC. 13.Section 42976 of the Public Resources Code is amended to read:42976.On or before September 1 of each year, a manufacturer of carpet sold in the state shall, individually or through a carpet stewardship organization, submit to the department a report describing its activities to achieve the purposes of this chapter, as described in Section 42970, and to comply with Section 42975. At a minimum, the report shall include all of the following:
(a)The amount of carpet sold by square yards and weight, in the state during the reporting period. A carpet stewardship organization with more than one manufacturer may use average weight.
(b)The amount of postconsumer carpet recycled, by weight, during the reporting period.
(c)The amount of postconsumer carpet recovered but not recycled, by weight, and its ultimate disposition.
(d)The total cost of implementing the carpet stewardship plan.
(e)An evaluation of the effectiveness of the carpet stewardship plan, and anticipated steps, if needed, to improve performance.
(f)Examples of educational materials that were provided to consumers during the reporting period.
(g)All of the following information related to grants awarded by the carpet stewardship organization pursuant to this chapter:
(1)The name and address of each recipient of a grant or subsidy.
(2)The amount of each grant and subsidy, with grant amounts broken down by category and by recipient.
(3)The number of applicants and recipients of a grant broken down by category.
(4)A detailed description of the criteria used to evaluate applications and to award the grants.
(5)A timeline of the process and a description of when applications were announced, the deadline to apply, the length of the review process, and the date the grants and subsidies were awarded.
(6)An explanation of why certain recipients are chosen for grants and subsidies and others are not.
(7)A separate list identifying any grant or subsidy provided to any of the following and an explanation as to why the grant or subsidy does not involve a conflict of interest:
(A)A member of the carpet stewardship organizations board of directors.
(B)A member of the governing board described in Section 42973.7.
(C)A family member or employee of a person described in subparagraph (A) or (B).
SEC. 14.Section 42978 of the Public Resources Code is amended to read:42978.(a)A civil An administrative 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)Twenty-five thousand dollars ($25,000) per day if the violation is intentional, knowing, or negligent. intentional or knowing.
(b)In assessing or reviewing the amount of a civil an administrative 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.
All matter omitted in this version of the bill appears in the bill as amended in the Senate, September 3, 2025. (JR11)The Legislature finds and declares the following:
(a)Too many California families struggle to maintain affordable childcare when there is a disruption in work that interrupts their access to care.
(b)From an unexpected loss of a job to a complicated birth that prolongs leave from work, young families are sometimes cut from the childcare services they need to get back on their feet.
(c)It is the intent of the Legislature to improve access to childcare to support families with young children in finding and maintaining employment during a period of transition by ensuring uninterrupted access to childcare.
SEC. 2.Section 10213.5 of the Welfare and Institutions Code is amended to read:10213.5.As used in this part:
(a)Alternative payments includes payments that are made by one childcare agency to another agency or childcare provider for the provision of childcare and development services, and payments that are made by an agency to a parent for the parents purchase of childcare and development services.
(b)Alternative payment program means a local government agency or nonprofit organization that has contracted with the department pursuant to Section 10225.5, or a migrant alternative payment program pursuant to Chapter 6 (commencing with Section 10235), to provide alternative payments and to provide support services to parents and providers.
(c)Applicant or contracting agency means a school district, community college district, college or university, county superintendent of schools, county, city, public agency, private nontax-exempt agency, private tax-exempt agency, or other entity that is authorized to establish, maintain, or operate services pursuant to this chapter. Private agencies and parent cooperatives, duly licensed by law, shall receive the same consideration as any other authorized entity with no loss of parental decisionmaking prerogatives as consistent with the provisions of this chapter.
(d)Assigned reimbursement rate is that rate established by the contract with the agency and is derived by dividing the total dollar amount of the contract by the minimum child day of average daily enrollment level of service required.
(e)Attendance means the number of children present at a childcare and development facility. Attendance, for purposes of reimbursement, includes excused absences by children because of illness, quarantine, illness or quarantine of their parent, family emergency, or to spend time with a parent or other relative as required by a court of law or that is clearly in the best interest of the child.
(f)Capital outlay means the amount paid for the renovation and repair of childcare and development and preschool facilities to comply with state and local health and safety standards, and the amount paid for the state purchase of relocatable childcare and development and preschool facilities for lease to qualifying contracting agencies.
(g)Caregiver means a person who provides direct care, supervision, and guidance to children in a childcare and development facility.
(h)Childcare and development facility means a residence or building or part thereof in which childcare and development services are provided.
(i)Childcare and development programs means those programs that offer a full range of services for children from infancy to 13 years of age, for any part of a day, by a public or private agency, in centers and family childcare homes. These programs include, but are not limited to, all of the following:
(1)General childcare and development.
(2)Migrant childcare and development.
(3)Childcare provided by the California School Age Families Education Program (Article 7.1 (commencing with Section 54740) of Chapter 9 of Part 29 of Division 4 of Title 2).
(4)Resource and referral.
(5)Childcare and development services for children with exceptional needs.
(6)Family childcare home education network.
(7)Alternative payment.
(8)Schoolage community childcare.
(j)Childcare and development services means those services designed to meet a wide variety of needs of children and their families, while their parents or guardians are working, in training, seeking employment, incapacitated, or in need of respite. These services may include direct care and supervision, instructional activities, resource and referral programs, and alternative payment arrangements.
(k)Children at risk of abuse, neglect, or exploitation means children who are so identified in a written referral from a legal, medical, or social service agency, or emergency shelter.
(l)Children with exceptional needs means either of the following:
(1)Infants and toddlers under three years of age who have been determined to be eligible for early intervention services pursuant to the California Early Intervention Services Act (Title 14 (commencing with Section 95000) of the Government Code) and its implementing regulations. These children include an infant or toddler with a developmental delay or established risk condition, or who is at high risk of having a substantial developmental disability, as defined in subdivision (a) of Section 95014 of the Government Code. These children shall have active individualized family service plans, shall be receiving early intervention services, and shall be children who require the special attention of adults in a childcare setting.
(2)Children 3 to 21 years of age, inclusive, who have been determined to be eligible for special education and related services by an individualized education program team according to the special education requirements contained in Part 30 (commencing with Section 56000) of Division 4 of Title 2 of the Education Code, and who meet eligibility criteria described in Section 56026 of the Education Code and, Article 2.5 (commencing with Section 56333) of Chapter 4 of Part 30 of Division 4 of Title 2 of the Education Code, and Sections 3030 and 3031 of Title 5 of the California Code of Regulations. These children shall have an active individualized education program, shall be receiving early intervention services or appropriate special education and related services, and shall be children who require the special attention of adults in a childcare setting. These children include children with intellectual disabilities, hearing impairments (including deafness), speech or language impairments, visual impairments (including blindness), serious emotional disturbance (also referred to as emotional disturbance), orthopedic impairments, autism, traumatic brain injury, other health impairments, or specific learning disabilities, who need special education and related services consistent with Section 1401(3)(A) of Title 20 of the United States Code.
(m)Closedown costs means reimbursements for all approved activities associated with the closing of operations at the end of each growing season for migrant child development programs only.
(n)Cost includes, but is not limited to, expenditures that are related to the operation of childcare and development programs. Cost may include a reasonable amount for state and local contributions to employee benefits, including approved retirement programs, agency administration, and any other reasonable program operational costs. Cost may also include amounts for licensable facilities in the community served by the program, including lease payments or depreciation, downpayments, and payments of principal and interest on loans incurred to acquire, rehabilitate, or construct licensable facilities, but these costs shall not exceed fair market rents existing in the community in which the facility is located. Reasonable and necessary costs are costs that, in nature and amount, do not exceed what an ordinary prudent person would incur in the conduct of a competitive business.
(o)Elementary school, as contained in former Section 425 of Title 20 of the United States Code (the National Defense Education Act of 1958, Public Law 85-864, as amended), includes early childhood education programs and all child development programs, for the purpose of the cancellation provisions of loans to students in institutions of higher learning.
(p)Family childcare home education network means an entity organized under law that contracts with the department pursuant to Section 10250 to make payments to licensed family childcare home providers and to provide educational and support services to those providers and to children and families eligible for state-subsidized childcare and development services. A family childcare home education network may also be referred to as a family childcare home system.
(q)Health services include, but are not limited to, all of the following:
(1)Referral, whenever possible, to appropriate health care providers able to provide continuity of medical care.
(2)Health screening and health treatment, including a full range of immunization recorded on the appropriate state immunization form to the extent provided by the Medi-Cal Act (Chapter 7 (commencing with Section 14000) of Part 3) and the Child Health and Disability Prevention Program (Article 6 (commencing with Section 124025) of Chapter 3 of Part 2 of Division 106 of the Health and Safety Code), but only to the extent that ongoing care cannot be obtained utilizing community resources.
(3)Health education and training for children, parents, staff, and providers.
(4)Followup treatment through referral to appropriate health care agencies or individual health care professionals.
(r)Higher educational institutions means the Regents of the University of California, the Trustees of the California State University, the Board of Governors of the California Community Colleges, and the governing bodies of any accredited private nonprofit institution of postsecondary education.
(s)Intergenerational staff means persons of various generations.
(t)Dual language learner means children whose first language is a language other than English or children who are developing two or more languages, one of which may be English.
(u)Parent means a biological parent, stepparent, adoptive parent, foster parent, caretaker relative, or any other adult living with a child who has responsibility for the care and welfare of the child.
(v)Program director means a person who, pursuant to Sections 10242 and 10380.5, is qualified to serve as a program director.
(w)Proprietary childcare agency means an organization or facility providing childcare, which is operated for profit.
(x)Resource and referral programs means programs that provide information to parents, including referrals and coordination of community resources for parents and public or private providers of care. Services frequently include, but are not limited to: technical assistance for providers, toy-lending libraries, equipment-lending libraries, toy- and equipment-lending libraries, staff development programs, health and nutrition education, and referrals to social services.
(y)Severely disabled children are children with exceptional needs from birth to 21 years of age, inclusive, who require intensive instruction and training in programs serving pupils with the following profound disabilities: autism, blindness, deafness, severe orthopedic impairments, serious emotional disturbances, or severe intellectual disabilities. Severely disabled children also include those individuals who would have been eligible for enrollment in a developmental center for handicapped pupils under Chapter 7 (commencing with Section 56800) of Part 30 of Division 4 of Title 2 of the Education Code as it read on January 1, 1980.
(z)Short-term respite childcare means childcare service to assist families whose children have been identified through written referral from a legal, medical, or social service agency, or emergency shelter as being neglected, abused, exploited, or homeless, or at risk of being neglected, abused, exploited, or homeless. Childcare is provided for less than 24 hours per day in childcare centers, treatment centers for abusive parents, family childcare homes, or in the childs own home.
(aa)Site supervisor means a person who, regardless of their title, has operational program responsibility for a childcare and development program at a single site. A site supervisor shall hold a permit issued by the Commission on Teacher Credentialing that authorizes supervision of a childcare and development program operating in a single site. The department may waive the requirements of this subdivision if the department determines that the existence of compelling need is appropriately documented.
(ab)Standard reimbursement rate means that rate established by the department pursuant to Section 10280.
(ac)Startup costs means those expenses an agency incurs in the process of opening a new or additional facility before the full enrollment of children.
(ad)California state preschool program means part-day and full-day educational programs for low-income or otherwise disadvantaged three- and four-year-old children.
(ae)Support services means those services that, when combined with childcare and development services, help promote the healthy physical, mental, social, and emotional growth of children. Support services include, but are not limited to: protective services, parent training, provider and staff training, transportation, parent and child counseling, child development resource and referral services, and child placement counseling.
(af)Teacher means a person with the appropriate permit issued by the Commission on Teacher Credentialing who provides program supervision and instruction that includes supervision of a number of aides, volunteers, and groups of children.
(ag)Underserved area means a county or subcounty area, including, but not limited to, school districts, census tracts, or ZIP Code areas, where the ratio of publicly subsidized childcare and development program services to the need for these services is low, as determined by the department.
(ah)Workday means the time that the parent requires temporary care for a child for any of the following reasons:
(1)To undertake training in preparation for a job.
(2)To search for, undertake, or retain a job.
(3)To provide care for oneself during a pregnancy-related leave from work.
(4)To provide care for a family member during a period of paid family leave.
(5)To undertake other activities that are essential to maintaining or improving the social and economic function of the family, are beneficial to the community, or are required because of health problems in the family.
(ai)Homeless children and youth has the same meaning as defined in Section 11434a(2) of the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11301 et seq.).
(aj)Local educational agency means a school district, a county office of education, a community college district, or a school district acting on behalf of one or more schools within the school district.
(ak)Alternative methodology means a cost-based ratesetting method, including a cost estimation model, on which to base payment rates pursuant to the requirements set forth in Section 98.45 of Title 45 of the Code of Federal Regulations.
(al)(1)Effective no later than March 1, 2024, part-time care means care certified for a child for fewer than 25 hours per week.
(2)Effective no later than March 1, 2024, full-time care means care certified for a child for 25 or more hours per week.
(3)Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may implement and administer this subdivision by all-county letters, bulletins, or similar written instructions until regulations are adopted.
(4)The department shall initiate a rulemaking action to adopt regulations to implement this subdivision no later than July 1, 2026.
(5)If the provisions of this subdivision are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 10426, the memorandum of understanding shall be controlling without further legislative action, except that if such provisions of a memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless approved by the Legislature in the annual Budget Act.
(am)Parental incapacity means the temporary or permanent inability of a childs parent or parents to provide care and supervision of the child for any part of the day. This may be due to a physical or mental health condition, or may occur during periods of leave, including, but not limited to, pregnancy-related leave or paid family leave. including a physical or health condition related to pregnancy.
SEC. 3.Section 10271 of the Welfare and Institutions Code is amended to read:10271.(a)(1)The department shall adopt rules and regulations on eligibility, enrollment, and priority of services needed to implement this chapter. In order to be eligible for federal and state subsidized child development services, families shall meet at least one requirement in each of the following areas:(A)A family is (i) a current aid recipient, (ii) income eligible, (iii) homeless, (iv) one whose children are recipients of protective services, or whose children have been identified as being abused, neglected, or exploited, or at risk of being abused, neglected, or exploited, or (v) one who has a member of its household who is certified to receive benefits from Medi-Cal, CalFresh, the California Food Assistance Program, the California Special Supplemental Nutrition Program for Women, Infants, and Children, the federal Food Distribution Program on Indian Reservations, Head Start, Early Head Start, or any other designated means-tested government program, as determined by the department. If a family is deemed eligible pursuant to clause (v), the family shall be prioritized by the income declared on the application for the means-tested government program.(B)A family needs the childcare services (i) because the child is identified by a legal, medical, or social services agency, a local educational agency liaison for homeless children and youths designated pursuant to Section 11432(g)(1)(J)(ii) of Title 42 of the United States Code, a Head Start program, or an emergency or transitional shelter as (I) a recipient of protective services, (II) being neglected, abused, or exploited, or at risk of neglect, abuse, or exploitation, or (III) being homeless or (ii) because the parents are (I) engaged in vocational training leading directly to a recognized trade, paraprofession, or profession, (II) engaged in an educational program for English language learners or to attain a high school diploma or general educational development certificate, (III) employed or seeking employment, (IV) seeking permanent housing for family stability, or (V) incapacitated, or (VI) on pregnancy or family leave.(C)A medical incapacity form shall not be required for a parent on leave to receive services. A parent may sign an attestation stating they are on leave.(2)If only one parent has signed an application for enrollment in childcare services, as required by this chapter or regulations adopted to implement this chapter, and the information provided on the application indicates that there is a second parent who has not signed the application, the parent who has signed the application shall self-certify the presence or absence of the second parent under penalty of perjury. The parent who has signed the application shall not be required to submit additional information documenting the presence or absence of the second parent.(b)Except as provided in Chapter 21 (commencing with Section 10370), priority for federal and state subsidized child development services is as follows:(1)First priority shall be given to neglected or abused children who are recipients of child protective services, or children who are at risk of being neglected or abused, upon written referral from a legal, medical, or social services agency. If an agency is unable to enroll a child in the first priority category, the agency shall refer the family to local resource and referral services to locate services for the child.(2)Second priority shall be given equally to eligible families, regardless of the number of parents in the home, who are income eligible. Within this priority, families with the lowest gross monthly income in relation to family size, as determined by a schedule adopted by the department, shall be admitted first. If two or more families are in the same priority in relation to income, the family that has a child with exceptional needs shall be admitted first. If there is no family of the same priority with a child with exceptional needs, the family of the same priority in which the primary home language is a language other than English shall be admitted first. If there is no family of the same priority in which the primary home language is a language other than English, the family of the same priority that has been on the waiting list for the longest time shall be admitted first. For purposes of determining order of admission, grants of public assistance recipients shall be counted as income.(3)The department shall set criteria for, and may grant specific waivers of, the priorities established in this subdivision for agencies that wish to serve specific populations, including children with exceptional needs or children of prisoners. These new waivers shall not include proposals to avoid appropriate fee schedules or admit ineligible families, but may include proposals to accept members of special populations in other than strict income order, as long as appropriate fees are paid.(c)Notwithstanding any other law, in order to promote continuity of services, a family enrolled in a state or federally funded childcare and development program whose services would otherwise be terminated because the family no longer meets the program income, eligibility, or need criteria may continue to receive child development services in another state or federally funded childcare and development program if the contractor is able to transfer the familys enrollment to another program for which the family is eligible before the date of termination of services or to exchange the familys existing enrollment with the enrollment of a family in another program, provided that both families satisfy the eligibility requirements for the program in which they are being enrolled. The transfer of enrollment may be to another program within the same administrative agency or to another agency that administers state or federally funded childcare and development programs.(d)A physical examination and evaluation, including age-appropriate immunization, shall be required before, or within six weeks of, enrollment. A standard, rule, or regulation shall not require medical examination or immunization for admission to a childcare and development program of a child whose parent or guardian files a letter with the governing board of the childcare and development program stating that the medical examination or immunization is contrary to the parents or guardians religious beliefs, or provide for the exclusion of a child from the program because of a parent or guardian having filed the letter. However, if there is good cause to believe that a child is suffering from a recognized contagious or infectious disease, the child shall be temporarily excluded from the program until the governing board of the childcare and development program is satisfied that the child is not suffering from that contagious or infectious disease.(e)Regulations formulated and promulgated pursuant to this section shall include the recommendations of the State Department of Health Care Services relative to health care screening and the provision of health care services. The department shall seek the advice and assistance of these health authorities in situations where service under this chapter includes or requires care of children who are ill or children with exceptional needs.(f)The department shall establish guidelines for the collection of employer-sponsored childcare benefit payments from a parent whose child receives subsidized childcare and development services. These guidelines shall provide for the collection of the full amount of the benefit payment, but not to exceed the actual cost of childcare and development services provided, notwithstanding the applicable fee based on the fee schedule.(g)The department shall establish guidelines according to which the director or a duly authorized representative of the childcare and development program will certify children as eligible for state reimbursement pursuant to this section.(h)(1)Except as provided in paragraphs (3) and (4), upon establishing initial eligibility or ongoing eligibility for services under this chapter, a family shall be considered to meet all eligibility and need requirements for those services for not less than 24 months, shall receive those services for not less than 24 months before having their eligibility or need recertified, and shall not be required to report changes to income or other changes for at least 24 months.(2)In the event that the eligibility period as described in paragraph (1) ends before the end of a program year, eligibility shall be extended until the end of the program year, as long as applicable age-eligibility requirements are met, as specified in Section 10213.5.(3)A family that establishes initial eligibility or ongoing eligibility on the basis of income shall report increases in income that exceed the threshold for ongoing income eligibility as described in subdivision (b) of Section 10271.5, and the familys ongoing eligibility for services shall at that time be recertified.(4)A family may at any time voluntarily report income or other changes. This information shall be used, as applicable, to reduce the familys fees, increase the familys services, or extend the period of the familys eligibility before recertification.(i)(1)Because a family that meets eligibility requirements at its most recent eligibility certification or recertification is considered eligible until the next recertification, as provided in subdivision (h), a payment made by a child development program for a child during this period shall not be considered an error or an improper payment due to a change in the familys circumstances during that same period.(2)Notwithstanding paragraph (1), the department may seek to recover payments that are the result of fraud.(j)(1)Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and Section 33308.5 of the Education Code, until regulations are filed with the Secretary of State to implement subdivision (h), the department shall implement subdivision (h) through management bulletins or similar letters of instruction on or before October 1, 2017.(2)The department shall initiate a rulemaking action to implement subdivision (h) on or before December 31, 2018. The department shall convene a workgroup of parents, advocates, department staff, child development program representatives, and other stakeholders to develop recommendations regarding implementing subdivision (h).(k)(1)Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and Section 33308.5 of the Education Code, until regulations are filed with the Secretary of State, the department shall implement the changes made to subdivision (h) by the act that added this subdivision through management bulletins or similar letters of instruction on or before December 1, 2023.(2)The department shall initiate a rulemaking action to implement the changes made to subdivision (h) by the act that added this subdivision on or before December 31, 2024.(l)Public funds shall not be paid directly or indirectly to an agency that does not pay at least the minimum wage to each of its employees.SEC. 3.Section 10271 of the Welfare and Institutions Code is amended to read:10271.(a)(1)The department shall adopt rules and regulations on eligibility, enrollment, and priority of services needed to implement this part. In order to be eligible for federal and state subsidized child development services, families shall meet at least one requirement in each of the following areas:
(A)A family is (i) a current aid recipient, (ii) income eligible, (iii) homeless, (iv) one whose children are recipients of protective services, or whose children have been identified as being abused, neglected, or exploited, or at risk of being abused, neglected, or exploited, or (v) one who has a member of its household who is certified to receive benefits from Medi-Cal, CalFresh, the California Food Assistance Program, the California Special Supplemental Nutrition Program for Women, Infants, and Children, the federal Food Distribution Program on Indian Reservations, Head Start, Early Head Start, or any other designated means-tested government program, as determined by the department. If a family is deemed eligible pursuant to clause (v), the family shall be prioritized by the income declared on the application for the means-tested government program.
(B)A family needs the childcare services (i) because the child is identified by a legal, medical, or social services agency, a local educational agency liaison for homeless children and youths designated pursuant to Section 11432(g)(1)(J)(ii) of Title 42 of the United States Code, a Head Start program, or an emergency or transitional shelter as (I) a recipient of protective services, (II) being neglected, abused, or exploited, or at risk of neglect, abuse, or exploitation, or (III) being homeless or (ii) because the parents are (I) engaged in vocational training leading directly to a recognized trade, paraprofession, or profession, (II) engaged in an educational program for English language learners or to attain a high school diploma or general educational development certificate, (III) employed or seeking employment, including while on family and medical leave from employment, (IV) seeking permanent housing for family stability, or (V) incapacitated.
(2)At the time of certification or recertification, if a parent is on family and medical leave from employment consistent with state or federal family or medical leave laws, the parent shall provide a self-attestation, signed under penalty of perjury, that they are on leave and the contractor shall determine their certified schedule based on the employment verification.
(2)(3)If only one parent has signed an application for enrollment in childcare services, as required by this part or regulations adopted to implement this part, and the information provided on the application indicates that there is a second parent who has not signed the application, the parent who has signed the application shall self-certify the presence or absence of the second parent under penalty of perjury. The parent who has signed the application shall not be required to submit additional information documenting the presence or absence of the second parent.
(b)Except as provided in Chapter 21 (commencing with Section 10370), priority for federal and state subsidized child development services is as follows:
(1)First priority shall be given to neglected or abused children who are recipients of child protective services, or children who are at risk of being neglected or abused, upon written referral from a legal, medical, or social services agency. If an agency is unable to enroll a child in the first priority category, the agency shall refer the family to local resource and referral services to locate services for the child.
(2)Second priority shall be given equally to eligible families, regardless of the number of parents in the home, who are income eligible. Within this priority, families with the lowest gross monthly income in relation to family size, as determined by a schedule adopted by the department, shall be admitted first. If two or more families are in the same priority in relation to income, the family that has a child with exceptional needs shall be admitted first. If there is no family of the same priority with a child with exceptional needs, the family of the same priority in which the primary home language is a language other than English shall be admitted first. If there is no family of the same priority in which the primary home language is a language other than English, the family of the same priority that has been on the waiting list for the longest time shall be admitted first. For purposes of determining order of admission, grants of public assistance recipients shall be counted as income.
(3)The department shall set criteria for, and may grant specific waivers of, the priorities established in this subdivision for agencies that wish to serve specific populations, including children with exceptional needs or children of prisoners. These new waivers shall not include proposals to avoid appropriate fee schedules or admit ineligible families, but may include proposals to accept members of special populations in other than strict income order, as long as appropriate fees are paid.
(c)Notwithstanding any other law, in order to promote continuity of services, a family enrolled in a state or federally funded childcare and development program whose services would otherwise be terminated because the family no longer meets the program income, eligibility, or need criteria may continue to receive child development services in another state or federally funded childcare and development program if the contractor is able to transfer the familys enrollment to another program for which the family is eligible before the date of termination of services or to exchange the familys existing enrollment with the enrollment of a family in another program, provided that both families satisfy the eligibility requirements for the program in which they are being enrolled. The transfer of enrollment may be to another program within the same administrative agency or to another agency that administers state or federally funded childcare and development programs.
(d)A physical examination and evaluation, including age-appropriate immunization, shall be required before, or within six weeks of, enrollment. A standard, rule, or regulation shall not require medical examination or immunization for admission to a childcare and development program of a child whose parent or guardian files a letter with the governing board of the childcare and development program stating that the medical examination or immunization is contrary to the parents or guardians religious beliefs, or provide for the exclusion of a child from the program because of a parent or guardian having filed the letter. However, if there is good cause to believe that a child is suffering from a recognized contagious or infectious disease, the child shall be temporarily excluded from the program until the governing board of the childcare and development program is satisfied that the child is not suffering from that contagious or infectious disease.
(e)Regulations formulated and promulgated pursuant to this section shall include the recommendations of the State Department of Health Care Services relative to health care screening and the provision of health care services. The department shall seek the advice and assistance of these health authorities in situations where service under this part includes or requires care of children who are ill or children with exceptional needs.
(f)The department shall establish guidelines for the collection of employer-sponsored childcare benefit payments from a parent whose child receives subsidized childcare and development services. These guidelines shall provide for the collection of the full amount of the benefit payment, but not to exceed the actual cost of childcare and development services provided, notwithstanding the applicable fee based on the fee schedule.
(g)The department shall establish guidelines according to which the director or a duly authorized representative of the childcare and development program will certify children as eligible for state reimbursement pursuant to this section.
(h)(1)Except as provided in paragraphs (3) to (5), inclusive, upon establishing initial eligibility or ongoing eligibility for services under this part, a family shall be considered to meet all eligibility and need requirements for those services for not less than 24 months, shall receive those services for not less than 24 months before having their eligibility or need recertified, and shall not be required to report changes to income or other changes for at least 24 months.
(2)In the event that the eligibility period as described in paragraph (1) ends before the end of a program year, eligibility shall be extended until the end of the program year, as long as applicable age-eligibility requirements are met, as specified in Section 10213.5.
(3)A family that establishes initial eligibility or ongoing eligibility on the basis of income shall report increases in income that exceed the threshold for ongoing income eligibility as described in subdivision (b) of Section 10271.5, and the familys ongoing eligibility for services shall at that time be recertified.
(4)A family may at any time voluntarily report income or other changes. This information shall be used, as applicable, to reduce the familys fees, increase the familys services, or extend the period of the familys eligibility before recertification.
(5)If a family already receiving services pursuant to this part adds an additional child to the family size and the family requests services for that child during the current eligibility period, the familys eligibility period shall be extended, as necessary, to ensure that the additional child receives at least 12 months of eligibility for services before a redetermination of eligibility, as required pursuant to Section 98.21 of Title 45 of the Code of Federal Regulations.
(i)(1)Because a family that meets eligibility requirements at its most recent eligibility certification or recertification is considered eligible until the next recertification, as provided in subdivision (h), a payment made by a child development program for a child during this period shall not be considered an error or an improper payment due to a change in the familys circumstances during that same period.
(2)Notwithstanding paragraph (1), the department may seek to recover payments that are the result of fraud.
(j)(1)Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and Section 33308.5 of the Education Code, until regulations are filed with the Secretary of State to implement subdivision (h), the department shall implement subdivision (h) through management bulletins or similar letters of instruction on or before October 1, 2017.
(2)The department shall initiate a rulemaking action to implement subdivision (h) on or before December 31, 2018. The department shall convene a workgroup of parents, advocates, department staff, child development program representatives, and other stakeholders to develop recommendations regarding implementing subdivision (h).
(k)(1)Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and Section 33308.5 of the Education Code, until regulations are filed with the Secretary of State, the department shall implement the changes made to subdivision (h) by the act that added this subdivision through management bulletins or similar letters of instruction on or before December 1, 2023.
(2)The department shall initiate a rulemaking action to implement the changes made to subdivision (h) by the act that added this subdivision on or before December 31, 2024.
(l)Public funds shall not be paid directly or indirectly to an agency that does not pay at least the minimum wage to each of its employees.
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.
The Legislature finds and declares the following:
(a)Too many California families struggle to maintain affordable childcare when there is a disruption in work that interrupts their access to care.
(b)From an unexpected loss of a job to a complicated birth that prolongs leave from work, young families are sometimes cut from the childcare services they need to get back on their feet.
(c)It is the intent of the Legislature to improve access to childcare to support families with young children in finding and maintaining employment during a period of transition by ensuring uninterrupted access to childcare.
SEC. 2.Section 10213.5 of the Welfare and Institutions Code is amended to read:10213.5.As used in this part:
(a)Alternative payments includes payments that are made by one childcare agency to another agency or childcare provider for the provision of childcare and development services, and payments that are made by an agency to a parent for the parents purchase of childcare and development services.
(b)Alternative payment program means a local government agency or nonprofit organization that has contracted with the department pursuant to Section 10225.5, or a migrant alternative payment program pursuant to Chapter 6 (commencing with Section 10235), to provide alternative payments and to provide support services to parents and providers.
(c)Applicant or contracting agency means a school district, community college district, college or university, county superintendent of schools, county, city, public agency, private nontax-exempt agency, private tax-exempt agency, or other entity that is authorized to establish, maintain, or operate services pursuant to this chapter. Private agencies and parent cooperatives, duly licensed by law, shall receive the same consideration as any other authorized entity with no loss of parental decisionmaking prerogatives as consistent with the provisions of this chapter.
(d)Assigned reimbursement rate is that rate established by the contract with the agency and is derived by dividing the total dollar amount of the contract by the minimum child day of average daily enrollment level of service required.
(e)Attendance means the number of children present at a childcare and development facility. Attendance, for purposes of reimbursement, includes excused absences by children because of illness, quarantine, illness or quarantine of their parent, family emergency, or to spend time with a parent or other relative as required by a court of law or that is clearly in the best interest of the child.
(f)Capital outlay means the amount paid for the renovation and repair of childcare and development and preschool facilities to comply with state and local health and safety standards, and the amount paid for the state purchase of relocatable childcare and development and preschool facilities for lease to qualifying contracting agencies.
(g)Caregiver means a person who provides direct care, supervision, and guidance to children in a childcare and development facility.
(h)Childcare and development facility means a residence or building or part thereof in which childcare and development services are provided.
(i)Childcare and development programs means those programs that offer a full range of services for children from infancy to 13 years of age, for any part of a day, by a public or private agency, in centers and family childcare homes. These programs include, but are not limited to, all of the following:
(1)General childcare and development.
(2)Migrant childcare and development.
(3)Childcare provided by the California School Age Families Education Program (Article 7.1 (commencing with Section 54740) of Chapter 9 of Part 29 of Division 4 of Title 2).
(4)Resource and referral.
(5)Childcare and development services for children with exceptional needs.
(6)Family childcare home education network.
(7)Alternative payment.
(8)Schoolage community childcare.
(j)Childcare and development services means those services designed to meet a wide variety of needs of children and their families, while their parents or guardians are working, in training, seeking employment, incapacitated, or in need of respite. These services may include direct care and supervision, instructional activities, resource and referral programs, and alternative payment arrangements.
(k)Children at risk of abuse, neglect, or exploitation means children who are so identified in a written referral from a legal, medical, or social service agency, or emergency shelter.
(l)Children with exceptional needs means either of the following:
(1)Infants and toddlers under three years of age who have been determined to be eligible for early intervention services pursuant to the California Early Intervention Services Act (Title 14 (commencing with Section 95000) of the Government Code) and its implementing regulations. These children include an infant or toddler with a developmental delay or established risk condition, or who is at high risk of having a substantial developmental disability, as defined in subdivision (a) of Section 95014 of the Government Code. These children shall have active individualized family service plans, shall be receiving early intervention services, and shall be children who require the special attention of adults in a childcare setting.
(2)Children 3 to 21 years of age, inclusive, who have been determined to be eligible for special education and related services by an individualized education program team according to the special education requirements contained in Part 30 (commencing with Section 56000) of Division 4 of Title 2 of the Education Code, and who meet eligibility criteria described in Section 56026 of the Education Code and, Article 2.5 (commencing with Section 56333) of Chapter 4 of Part 30 of Division 4 of Title 2 of the Education Code, and Sections 3030 and 3031 of Title 5 of the California Code of Regulations. These children shall have an active individualized education program, shall be receiving early intervention services or appropriate special education and related services, and shall be children who require the special attention of adults in a childcare setting. These children include children with intellectual disabilities, hearing impairments (including deafness), speech or language impairments, visual impairments (including blindness), serious emotional disturbance (also referred to as emotional disturbance), orthopedic impairments, autism, traumatic brain injury, other health impairments, or specific learning disabilities, who need special education and related services consistent with Section 1401(3)(A) of Title 20 of the United States Code.
(m)Closedown costs means reimbursements for all approved activities associated with the closing of operations at the end of each growing season for migrant child development programs only.
(n)Cost includes, but is not limited to, expenditures that are related to the operation of childcare and development programs. Cost may include a reasonable amount for state and local contributions to employee benefits, including approved retirement programs, agency administration, and any other reasonable program operational costs. Cost may also include amounts for licensable facilities in the community served by the program, including lease payments or depreciation, downpayments, and payments of principal and interest on loans incurred to acquire, rehabilitate, or construct licensable facilities, but these costs shall not exceed fair market rents existing in the community in which the facility is located. Reasonable and necessary costs are costs that, in nature and amount, do not exceed what an ordinary prudent person would incur in the conduct of a competitive business.
(o)Elementary school, as contained in former Section 425 of Title 20 of the United States Code (the National Defense Education Act of 1958, Public Law 85-864, as amended), includes early childhood education programs and all child development programs, for the purpose of the cancellation provisions of loans to students in institutions of higher learning.
(p)Family childcare home education network means an entity organized under law that contracts with the department pursuant to Section 10250 to make payments to licensed family childcare home providers and to provide educational and support services to those providers and to children and families eligible for state-subsidized childcare and development services. A family childcare home education network may also be referred to as a family childcare home system.
(q)Health services include, but are not limited to, all of the following:
(1)Referral, whenever possible, to appropriate health care providers able to provide continuity of medical care.
(2)Health screening and health treatment, including a full range of immunization recorded on the appropriate state immunization form to the extent provided by the Medi-Cal Act (Chapter 7 (commencing with Section 14000) of Part 3) and the Child Health and Disability Prevention Program (Article 6 (commencing with Section 124025) of Chapter 3 of Part 2 of Division 106 of the Health and Safety Code), but only to the extent that ongoing care cannot be obtained utilizing community resources.
(3)Health education and training for children, parents, staff, and providers.
(4)Followup treatment through referral to appropriate health care agencies or individual health care professionals.
(r)Higher educational institutions means the Regents of the University of California, the Trustees of the California State University, the Board of Governors of the California Community Colleges, and the governing bodies of any accredited private nonprofit institution of postsecondary education.
(s)Intergenerational staff means persons of various generations.
(t)Dual language learner means children whose first language is a language other than English or children who are developing two or more languages, one of which may be English.
(u)Parent means a biological parent, stepparent, adoptive parent, foster parent, caretaker relative, or any other adult living with a child who has responsibility for the care and welfare of the child.
(v)Program director means a person who, pursuant to Sections 10242 and 10380.5, is qualified to serve as a program director.
(w)Proprietary childcare agency means an organization or facility providing childcare, which is operated for profit.
(x)Resource and referral programs means programs that provide information to parents, including referrals and coordination of community resources for parents and public or private providers of care. Services frequently include, but are not limited to: technical assistance for providers, toy-lending libraries, equipment-lending libraries, toy- and equipment-lending libraries, staff development programs, health and nutrition education, and referrals to social services.
(y)Severely disabled children are children with exceptional needs from birth to 21 years of age, inclusive, who require intensive instruction and training in programs serving pupils with the following profound disabilities: autism, blindness, deafness, severe orthopedic impairments, serious emotional disturbances, or severe intellectual disabilities. Severely disabled children also include those individuals who would have been eligible for enrollment in a developmental center for handicapped pupils under Chapter 7 (commencing with Section 56800) of Part 30 of Division 4 of Title 2 of the Education Code as it read on January 1, 1980.
(z)Short-term respite childcare means childcare service to assist families whose children have been identified through written referral from a legal, medical, or social service agency, or emergency shelter as being neglected, abused, exploited, or homeless, or at risk of being neglected, abused, exploited, or homeless. Childcare is provided for less than 24 hours per day in childcare centers, treatment centers for abusive parents, family childcare homes, or in the childs own home.
(aa)Site supervisor means a person who, regardless of their title, has operational program responsibility for a childcare and development program at a single site. A site supervisor shall hold a permit issued by the Commission on Teacher Credentialing that authorizes supervision of a childcare and development program operating in a single site. The department may waive the requirements of this subdivision if the department determines that the existence of compelling need is appropriately documented.
(ab)Standard reimbursement rate means that rate established by the department pursuant to Section 10280.
(ac)Startup costs means those expenses an agency incurs in the process of opening a new or additional facility before the full enrollment of children.
(ad)California state preschool program means part-day and full-day educational programs for low-income or otherwise disadvantaged three- and four-year-old children.
(ae)Support services means those services that, when combined with childcare and development services, help promote the healthy physical, mental, social, and emotional growth of children. Support services include, but are not limited to: protective services, parent training, provider and staff training, transportation, parent and child counseling, child development resource and referral services, and child placement counseling.
(af)Teacher means a person with the appropriate permit issued by the Commission on Teacher Credentialing who provides program supervision and instruction that includes supervision of a number of aides, volunteers, and groups of children.
(ag)Underserved area means a county or subcounty area, including, but not limited to, school districts, census tracts, or ZIP Code areas, where the ratio of publicly subsidized childcare and development program services to the need for these services is low, as determined by the department.
(ah)Workday means the time that the parent requires temporary care for a child for any of the following reasons:
(1)To undertake training in preparation for a job.
(2)To search for, undertake, or retain a job.
(3)To provide care for oneself during a pregnancy-related leave from work.
(4)To provide care for a family member during a period of paid family leave.
(5)To undertake other activities that are essential to maintaining or improving the social and economic function of the family, are beneficial to the community, or are required because of health problems in the family.
(ai)Homeless children and youth has the same meaning as defined in Section 11434a(2) of the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11301 et seq.).
(aj)Local educational agency means a school district, a county office of education, a community college district, or a school district acting on behalf of one or more schools within the school district.
(ak)Alternative methodology means a cost-based ratesetting method, including a cost estimation model, on which to base payment rates pursuant to the requirements set forth in Section 98.45 of Title 45 of the Code of Federal Regulations.
(al)(1)Effective no later than March 1, 2024, part-time care means care certified for a child for fewer than 25 hours per week.
(2)Effective no later than March 1, 2024, full-time care means care certified for a child for 25 or more hours per week.
(3)Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may implement and administer this subdivision by all-county letters, bulletins, or similar written instructions until regulations are adopted.
(4)The department shall initiate a rulemaking action to adopt regulations to implement this subdivision no later than July 1, 2026.
(5)If the provisions of this subdivision are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 10426, the memorandum of understanding shall be controlling without further legislative action, except that if such provisions of a memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless approved by the Legislature in the annual Budget Act.
(am)Parental incapacity means the temporary or permanent inability of a childs parent or parents to provide care and supervision of the child for any part of the day. This may be due to a physical or mental health condition, or may occur during periods of leave, including, but not limited to, pregnancy-related leave or paid family leave.
SEC. 3.Section 10271 of the Welfare and Institutions Code is amended to read:10271.(a)(1)The department shall adopt rules and regulations on eligibility, enrollment, and priority of services needed to implement this chapter. In order to be eligible for federal and state subsidized child development services, families shall meet at least one requirement in each of the following areas:
(A)A family is (i) a current aid recipient, (ii) income eligible, (iii) homeless, (iv) one whose children are recipients of protective services, or whose children have been identified as being abused, neglected, or exploited, or at risk of being abused, neglected, or exploited, or (v) one who has a member of its household who is certified to receive benefits from Medi-Cal, CalFresh, the California Food Assistance Program, the California Special Supplemental Nutrition Program for Women, Infants, and Children, the federal Food Distribution Program on Indian Reservations, Head Start, Early Head Start, or any other designated means-tested government program, as determined by the department. If a family is deemed eligible pursuant to clause (v), the family shall be prioritized by the income declared on the application for the means-tested government program.
(B)A family needs the childcare services (i) because the child is identified by a legal, medical, or social services agency, a local educational agency liaison for homeless children and youths designated pursuant to Section 11432(g)(1)(J)(ii) of Title 42 of the United States Code, a Head Start program, or an emergency or transitional shelter as (I) a recipient of protective services, (II) being neglected, abused, or exploited, or at risk of neglect, abuse, or exploitation, or (III) being homeless or (ii) because the parents are (I) engaged in vocational training leading directly to a recognized trade, paraprofession, or profession, (II) engaged in an educational program for English language learners or to attain a high school diploma or general educational development certificate, (III) employed or seeking employment, (IV) seeking permanent housing for family stability, or (V) incapacitated. incapacitated, or (VI) on pregnancy or family leave.
(C)A medical incapacity form shall not be required for a parent on leave to receive services. A parent may sign an attestation stating they are on leave.
(2)If only one parent has signed an application for enrollment in childcare services, as required by this chapter or regulations adopted to implement this chapter, and the information provided on the application indicates that there is a second parent who has not signed the application, the parent who has signed the application shall self-certify the presence or absence of the second parent under penalty of perjury. The parent who has signed the application shall not be required to submit additional information documenting the presence or absence of the second parent.
(b)Except as provided in Chapter 21 (commencing with Section 10370), priority for federal and state subsidized child development services is as follows:
(1)First priority shall be given to neglected or abused children who are recipients of child protective services, or children who are at risk of being neglected or abused, upon written referral from a legal, medical, or social services agency. If an agency is unable to enroll a child in the first priority category, the agency shall refer the family to local resource and referral services to locate services for the child.
(2)Second priority shall be given equally to eligible families, regardless of the number of parents in the home, who are income eligible. Within this priority, families with the lowest gross monthly income in relation to family size, as determined by a schedule adopted by the department, shall be admitted first. If two or more families are in the same priority in relation to income, the family that has a child with exceptional needs shall be admitted first. If there is no family of the same priority with a child with exceptional needs, the family of the same priority in which the primary home language is a language other than English shall be admitted first. If there is no family of the same priority in which the primary home language is a language other than English, the family of the same priority that has been on the waiting list for the longest time shall be admitted first. For purposes of determining order of admission, grants of public assistance recipients shall be counted as income.
(3)The department shall set criteria for, and may grant specific waivers of, the priorities established in this subdivision for agencies that wish to serve specific populations, including children with exceptional needs or children of prisoners. These new waivers shall not include proposals to avoid appropriate fee schedules or admit ineligible families, but may include proposals to accept members of special populations in other than strict income order, as long as appropriate fees are paid.
(c)Notwithstanding any other law, in order to promote continuity of services, a family enrolled in a state or federally funded childcare and development program whose services would otherwise be terminated because the family no longer meets the program income, eligibility, or need criteria may continue to receive child development services in another state or federally funded childcare and development program if the contractor is able to transfer the familys enrollment to another program for which the family is eligible before the date of termination of services or to exchange the familys existing enrollment with the enrollment of a family in another program, provided that both families satisfy the eligibility requirements for the program in which they are being enrolled. The transfer of enrollment may be to another program within the same administrative agency or to another agency that administers state or federally funded childcare and development programs.
(d)A physical examination and evaluation, including age-appropriate immunization, shall be required before, or within six weeks of, enrollment. A standard, rule, or regulation shall not require medical examination or immunization for admission to a childcare and development program of a child whose parent or guardian files a letter with the governing board of the childcare and development program stating that the medical examination or immunization is contrary to the parents or guardians religious beliefs, or provide for the exclusion of a child from the program because of a parent or guardian having filed the letter. However, if there is good cause to believe that a child is suffering from a recognized contagious or infectious disease, the child shall be temporarily excluded from the program until the governing board of the childcare and development program is satisfied that the child is not suffering from that contagious or infectious disease.
(e)Regulations formulated and promulgated pursuant to this section shall include the recommendations of the State Department of Health Care Services relative to health care screening and the provision of health care services. The department shall seek the advice and assistance of these health authorities in situations where service under this chapter includes or requires care of children who are ill or children with exceptional needs.
(f)The department shall establish guidelines for the collection of employer-sponsored childcare benefit payments from a parent whose child receives subsidized childcare and development services. These guidelines shall provide for the collection of the full amount of the benefit payment, but not to exceed the actual cost of childcare and development services provided, notwithstanding the applicable fee based on the fee schedule.
(g)The department shall establish guidelines according to which the director or a duly authorized representative of the childcare and development program will certify children as eligible for state reimbursement pursuant to this section.
(h)(1)Except as provided in paragraphs (3) and (4), upon establishing initial eligibility or ongoing eligibility for services under this chapter, a family shall be considered to meet all eligibility and need requirements for those services for not less than 24 months, shall receive those services for not less than 24 months before having their eligibility or need recertified, and shall not be required to report changes to income or other changes for at least 24 months.
(2)In the event that the eligibility period as described in paragraph (1) ends before the end of a program year, eligibility shall be extended until the end of the program year, as long as applicable age-eligibility requirements are met, as specified in Section 10213.5.
(3)A family that establishes initial eligibility or ongoing eligibility on the basis of income shall report increases in income that exceed the threshold for ongoing income eligibility as described in subdivision (b) of Section 10271.5, and the familys ongoing eligibility for services shall at that time be recertified.
(4)A family may at any time voluntarily report income or other changes. This information shall be used, as applicable, to reduce the familys fees, increase the familys services, or extend the period of the familys eligibility before recertification.
(i)(1)Because a family that meets eligibility requirements at its most recent eligibility certification or recertification is considered eligible until the next recertification, as provided in subdivision (h), a payment made by a child development program for a child during this period shall not be considered an error or an improper payment due to a change in the familys circumstances during that same period.
(2)Notwithstanding paragraph (1), the department may seek to recover payments that are the result of fraud.
(j)(1)Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and Section 33308.5 of the Education Code, until regulations are filed with the Secretary of State to implement subdivision (h), the department shall implement subdivision (h) through management bulletins or similar letters of instruction on or before October 1, 2017.
(2)The department shall initiate a rulemaking action to implement subdivision (h) on or before December 31, 2018. The department shall convene a workgroup of parents, advocates, department staff, child development program representatives, and other stakeholders to develop recommendations regarding implementing subdivision (h).
(k)(1)Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) and Section 33308.5 of the Education Code, until regulations are filed with the Secretary of State, the department shall implement the changes made to subdivision (h) by the act that added this subdivision through management bulletins or similar letters of instruction on or before December 1, 2023.
(2)The department shall initiate a rulemaking action to implement the changes made to subdivision (h) by the act that added this subdivision on or before December 31, 2024.
(l)Public funds shall not be paid directly or indirectly to an agency that does not pay at least the minimum wage to each of its employees.
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.
The Legislature finds and declares the following:
(a)Too many California families struggle to maintain affordable childcare when there is a disruption in work that interrupts their access to care.
(b)From an unexpected loss of a job to a complicated birth that prolongs leave from work, young families are sometimes cut from the childcare services they need to get back on their feet.
(c)It is the intent of the Legislature to improve access to childcare to support families with young children in finding and maintaining employment during a period of transition by ensuring uninterrupted access to childcare.
SEC. 2.Section 10213.5 of the Welfare and Institutions Code is amended to read:10213.5.As used in this part:
(a)Alternative payments includes payments that are made by one childcare agency to another agency or childcare provider for the provision of childcare and development services, and payments that are made by an agency to a parent for the parents purchase of childcare and development services.
(b)Alternative payment program means a local government agency or nonprofit organization that has contracted with the department pursuant to Section 10225.5, or a migrant alternative payment program pursuant to Chapter 6 (commencing with Section 10235), to provide alternative payments and to provide support services to parents and providers.
(c)Applicant or contracting agency means a school district, community college district, college or university, county superintendent of schools, county, city, public agency, private nontax-exempt agency, private tax-exempt agency, or other entity that is authorized to establish, maintain, or operate services pursuant to this chapter. Private agencies and parent cooperatives, duly licensed by law, shall receive the same consideration as any other authorized entity with no loss of parental decisionmaking prerogatives as consistent with the provisions of this chapter.
(d)Assigned reimbursement rate is that rate established by the contract with the agency and is derived by dividing the total dollar amount of the contract by the minimum child day of average daily enrollment level of service required.
(e)Attendance means the number of children present at a childcare and development facility. Attendance, for purposes of reimbursement, includes excused absences by children because of illness, quarantine, illness or quarantine of their parent, family emergency, or to spend time with a parent or other relative as required by a court of law or that is clearly in the best interest of the child.
(f)Capital outlay means the amount paid for the renovation and repair of childcare and development and preschool facilities to comply with state and local health and safety standards, and the amount paid for the state purchase of relocatable childcare and development and preschool facilities for lease to qualifying contracting agencies.
(g)Caregiver means a person who provides direct care, supervision, and guidance to children in a childcare and development facility.
(h)Childcare and development facility means a residence or building or part thereof in which childcare and development services are provided.
(i)Childcare and development programs means those programs that offer a full range of services for children from infancy to 13 years of age, for any part of a day, by a public or private agency, in centers and family childcare homes. These programs include, but are not limited to, all of the following:
(1)General childcare and development.
(2)Migrant childcare and development.
(3)Childcare provided by the California School Age Families Education Program (Article 7.1 (commencing with Section 54740) of Chapter 9 of Part 29 of Division 4 of Title 2).
(4)Resource and referral.
(5)Childcare and development services for children with exceptional needs.
(6)Family childcare home education network.
(7)Alternative payment.
(8)Schoolage community childcare.
(j)Childcare and development services means those services designed to meet a wide variety of needs of children and their families, while their parents or guardians are working, in training, seeking employment, incapacitated, or in need of respite. These services may include direct care and supervision, instructional activities, resource and referral programs, and alternative payment arrangements.
(k)Children at risk of abuse, neglect, or exploitation means children who are so identified in a written referral from a legal, medical, or social service agency, or emergency shelter.
(l)Children with exceptional needs means either of the following:
(1)Infants and toddlers under three years of age who have been determined to be eligible for early intervention services pursuant to the California Early Intervention Services Act (Title 14 (commencing with Section 95000) of the Government Code) and its implementing regulations. These children include an infant or toddler with a developmental delay or established risk condition, or who is at high risk of having a substantial developmental disability, as defined in subdivision (a) of Section 95014 of the Government Code. These children shall have active individualized family service plans, shall be receiving early intervention services, and shall be children who require the special attention of adults in a childcare setting.
(2)Children 3 to 21 years of age, inclusive, who have been determined to be eligible for special education and related services by an individualized education program team according to the special education requirements contained in Part 30 (commencing with Section 56000) of Division 4 of Title 2 of the Education Code, and who meet eligibility criteria described in Section 56026 of the Education Code and, Article 2.5 (commencing with Section 56333) of Chapter 4 of Part 30 of Division 4 of Title 2 of the Education Code, and Sections 3030 and 3031 of Title 5 of the California Code of Regulations. These children shall have an active individualized education program, shall be receiving early intervention services or appropriate special education and related services, and shall be children who require the special attention of adults in a childcare setting. These children include children with intellectual disabilities, hearing impairments (including deafness), speech or language impairments, visual impairments (including blindness), serious emotional disturbance (also referred to as emotional disturbance), orthopedic impairments, autism, traumatic brain injury, other health impairments, or specific learning disabilities, who need special education and related services consistent with Section 1401(3)(A) of Title 20 of the United States Code.
(m)Closedown costs means reimbursements for all approved activities associated with the closing of operations at the end of each growing season for migrant child development programs only.
(n)Cost includes, but is not limited to, expenditures that are related to the operation of childcare and development programs. Cost may include a reasonable amount for state and local contributions to employee benefits, including approved retirement programs, agency administration, and any other reasonable program operational costs. Cost may also include amounts for licensable facilities in the community served by the program, including lease payments or depreciation, downpayments, and payments of principal and interest on loans incurred to acquire, rehabilitate, or construct licensable facilities, but these costs shall not exceed fair market rents existing in the community in which the facility is located. Reasonable and necessary costs are costs that, in nature and amount, do not exceed what an ordinary prudent person would incur in the conduct of a competitive business.
(o)Elementary school, as contained in former Section 425 of Title 20 of the United States Code (the National Defense Education Act of 1958, Public Law 85-864, as amended), includes early childhood education programs and all child development programs, for the purpose of the cancellation provisions of loans to students in institutions of higher learning.
(p)Family childcare home education network means an entity organized under law that contracts with the department pursuant to Section 10250 to make payments to licensed family childcare home providers and to provide educational and support services to those providers and to children and families eligible for state-subsidized childcare and development services. A family childcare home education network may also be referred to as a family childcare home system.
(q)Health services include, but are not limited to, all of the following:
(1)Referral, whenever possible, to appropriate health care providers able to provide continuity of medical care.
(2)Health screening and health treatment, including a full range of immunization recorded on the appropriate state immunization form to the extent provided by the Medi-Cal Act (Chapter 7 (commencing with Section 14000) of Part 3) and the Child Health and Disability Prevention Program (Article 6 (commencing with Section 124025) of Chapter 3 of Part 2 of Division 106 of the Health and Safety Code), but only to the extent that ongoing care cannot be obtained utilizing community resources.
(3)Health education and training for children, parents, staff, and providers.
(4)Followup treatment through referral to appropriate health care agencies or individual health care professionals.
(r)Higher educational institutions means the Regents of the University of California, the Trustees of the California State University, the Board of Governors of the California Community Colleges, and the governing bodies of any accredited private nonprofit institution of postsecondary education.
(s)Intergenerational staff means persons of various generations.
(t)Dual language learner means children whose first language is a language other than English or children who are developing two or more languages, one of which may be English.
(u)Parent means a biological parent, stepparent, adoptive parent, foster parent, caretaker relative, or any other adult living with a child who has responsibility for the care and welfare of the child.
(v)Program director means a person who, pursuant to Sections 10242 and 10380.5, is qualified to serve as a program director.
(w)Proprietary childcare agency means an organization or facility providing childcare, which is operated for profit.
(x)Resource and referral programs means programs that provide information to parents, including referrals and coordination of community resources for parents and public or private providers of care. Services frequently include, but are not limited to: technical assistance for providers, toy-lending libraries, equipment-lending libraries, toy- and equipment-lending libraries, staff development programs, health and nutrition education, and referrals to social services.
(y)Severely disabled children are children with exceptional needs from birth to 21 years of age, inclusive, who require intensive instruction and training in programs serving pupils with the following profound disabilities: autism, blindness, deafness, severe orthopedic impairments, serious emotional disturbances, or severe intellectual disabilities. Severely disabled children also include those individuals who would have been eligible for enrollment in a developmental center for handicapped pupils under Chapter 7 (commencing with Section 56800) of Part 30 of Division 4 of Title 2 of the Education Code as it read on January 1, 1980.
(z)Short-term respite childcare means childcare service to assist families whose children have been identified through written referral from a legal, medical, or social service agency, or emergency shelter as being neglected, abused, exploited, or homeless, or at risk of being neglected, abused, exploited, or homeless. Childcare is provided for less than 24 hours per day in childcare centers, treatment centers for abusive parents, family childcare homes, or in the childs own home.
(aa)Site supervisor means a person who, regardless of their title, has operational program responsibility for a childcare and development program at a single site. A site supervisor shall hold a permit issued by the Commission on Teacher Credentialing that authorizes supervision of a childcare and development program operating in a single site. The department may waive the requirements of this subdivision if the department determines that the existence of compelling need is appropriately documented.
(ab)Standard reimbursement rate means that rate established by the department pursuant to Section 10280.
(ac)Startup costs means those expenses an agency incurs in the process of opening a new or additional facility before the full enrollment of children.
(ad)California state preschool program means part-day and full-day educational programs for low-income or otherwise disadvantaged three- and four-year-old children.
(ae)Support services means those services that, when combined with childcare and development services, help promote the healthy physical, mental, social, and emotional growth of children. Support services include, but are not limited to: protective services, parent training, provider and staff training, transportation, parent and child counseling, child development resource and referral services, and child placement counseling.
(af)Teacher means a person with the appropriate permit issued by the Commission on Teacher Credentialing who provides program supervision and instruction that includes supervision of a number of aides, volunteers, and groups of children.
(ag)Underserved area means a county or subcounty area, including, but not limited to, school districts, census tracts, or ZIP Code areas, where the ratio of publicly subsidized childcare and development program services to the need for these services is low, as determined by the department.
(ah)Workday means the time that the parent requires temporary care for a child for any of the following reasons:
(1)To undertake training in preparation for a job.
(2)To undertake search for, undertake, or retain a job.
(3)To provide care for oneself during a pregnancy-related leave from work.
(4)To provide care for a family member during a period of paid family leave.
(3)(5)To undertake other activities that are essential to maintaining or improving the social and economic function of the family, are beneficial to the community, or are required because of health problems in the family.
(ai)Homeless children and youth has the same meaning as defined in Section 11434a(2) of the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11301 et seq.).
(aj)Local educational agency means a school district, a county office of education, a community college district, or a school district acting on behalf of one or more schools within the school district.
(ak)Alternative methodology means a cost-based ratesetting method, including a cost estimation model, on which to base payment rates pursuant to the requirements set forth in Section 98.45 of Title 45 of the Code of Federal Regulations.
(al)(1)Effective no later than March 1, 2024, part-time care means care certified for a child for fewer than 25 hours per week.
(2)Effective no later than March 1, 2024, full-time care means care certified for a child for 25 or more hours per week.
(3)Notwithstanding the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), the department may implement and administer this subdivision by all-county letters, bulletins, or similar written instructions until regulations are adopted.
(4)The department shall initiate a rulemaking action to adopt regulations to implement this subdivision no later than July 1, 2026.
(5)If the provisions of this subdivision are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 10426, the memorandum of understanding shall be controlling without further legislative action, except that if such provisions of a memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless approved by the Legislature in the annual Budget Act.
SECTION 1.Section 10227.6 of the Welfare and Institutions Code is amended to read:10227.6.(a)It is the intent of the Legislature to use an alternative methodology, which may be referred to as the Cost of Care Alternative Methodology, as defined in subdivision (ak) of Section 10213.5, to inform the setting of reimbursement rates for subsidized childcare.(b)Reimbursement rates are subject to agreement and codification by the Legislature.(c)The department, in collaboration with the State Department of Education, shall develop and conduct an alternative methodology. The department shall begin the process of data collection and analysis pursuant to developing an alternative methodology by July 1, 2023, and consult with the State Department of Education on data collection, analysis, and methodology for preschool programs. The alternative methodology shall build on the recommendations of the working group established pursuant to Section 10280.2 and shall be aligned with the recommendations of the Joint Labor Management Committee established pursuant to subdivision (a) of Section 10280.2.(d)No later than February 15, 2024, the department, in collaboration with the State Department of Education and the Joint Labor Management Committee established pursuant to subdivision (a) of Section 10280.2, using information from the cost estimation model, shall define elements of the base rate and any enhanced rates to inform the states proposed single rate structure and rates. These elements shall be subject to the mandated public engagement state plan process and legislative review. The department shall report to the Senate Health and Human Services budget subcommittees, Assembly and Senate Education budget subcommittees, and the Legislative Analysts Office on progress made to conduct an alternative methodology and cost estimate model.(e)No later than May 15, 2024, the department shall report on the status of the draft Child Care and Development Fund state plan to the Senate Health and Human Services budget subcommittees, Assembly and Senate Education budget subcommittees, and the Legislative Analysts Office on the states proposed single rate structure to be submitted to the United States Department of Health and Human Services, Administration for Children and Families.(f)No later than July 1, 2024, the department shall submit necessary information to support use of a single rate structure using the alternative methodology to the United States Department of Health and Human Services, Administration for Children and Families in the Child Care and Development Fund state plan or an amendment to the state plan. The department shall provide a copy of the Child Care and Development Fund state plan or amendment to the state plan submitted to the United States Department of Health and Human Services, Administration for Children and Families to the Senate Health and Human Services budget subcommittees, Assembly and Senate Education budget subcommittees, and the Legislative Analysts Office no later than July 10, 2024.(g) (1)Within 60 days of federal approval of the single rate structure utilizing the alternative methodology in the state plan, the department, in collaboration with the State Department of Education, shall provide the Assembly Committee on Budget, the Senate Committee on Budget and Fiscal Review, and the Legislative Analysts Office with a report that outlines the implementation components for the approved single rate structure. For a period of 30 days, the Legislature shall have the opportunity to review and provide feedback regarding draft guidance for implementation of policies. The report shall include all of the following:(A)The departments plan to set new reimbursement rates under the alternative methodology by no later than July 1, 2025.(B)The estimated costs and estimated timelines associated with the implementation components of the approved single rate structure, including, but not limited to, state operations resources, technology and infrastructure changes, and any regulatory or statutory changes necessary to implement the approved single rate structure.(2)The department shall, from October 1, 2024, to January 1, 2026, inclusive, provide the Assembly Committee on Budget, the Senate Committee on Budget and Fiscal Review, and the Legislative Analysts Office with quarterly updates on the implementation of the new reimbursement rates set under the alternative methodology. The quarterly updates shall include any changes to the information provided in the report described in paragraph (1).(h)The Governor and the Legislature shall, by no later than July 1, 2025, establish reimbursement rates based on the alternative methodology. Provider reimbursement rates shall not be reduced from the reimbursement rates that were in effect on June 30, 2024, pursuant to Sections 10280 and 10374.5 of this code and Section 8242 of the Education Code, inclusive of the cost of care plus rates established pursuant to subdivision (b) of Section 10277.1 and subdivision (b) of Section 10277.2.(i)(1)If the new reimbursement rates established pursuant to subdivision (h) do not take effect on July 1, 2025, the department shall provide the Legislature with a timeline for transitioning from the rates that are in effect on July 1, 2025, to the new rates established pursuant to subdivision (h).(2)Any temporary reimbursement rates established as part of the transition timeline required by paragraph (1) shall be, at minimum, equivalent to the reimbursement rates established pursuant to Sections 10280 and 10374.5 of this code and Section 8242 of the Education Code, inclusive of the cost of care plus rates established pursuant to subdivision (b) of Section 10277.1 and subdivision (b) of Section 10277.2.(j)The single rate structure shall apply to all programs funded by the State Department of Social Services under Chapter 3 (commencing with Section 10225), Chapter 6 (commencing with Section 10235), Chapter 7 (commencing with Section 10240), Chapter 8 (commencing with Section 10250), Chapter 9 (commencing with Section 10260), Chapter 21 (commencing with Section 10370), and Chapter 2 (commencing with Section 11461.6) of Part 2, and the State Department of Education under Chapter 2 (commencing with Section 8200) of Part 6 of Division 1 of Title 1 of the Education Code.(k)If the United States Department of Health and Human Services, Administration for Children and Families does not approve the alternative methodology developed pursuant to this section, the department shall develop and conduct a survey of the market rates for childcare services.(l)If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 10426, the memorandum of understanding shall be controlling without further legislative action, except that if such provisions of a memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless approved by the Legislature in the annual Budget Act.(a)It is the intent of the Legislature to use an alternative methodology, which may be referred to as the Cost of Care Alternative Methodology, as defined in subdivision (ak) of Section 10213.5, to inform the setting of reimbursement rates for subsidized childcare.
(b)Reimbursement rates are subject to agreement and codification by the Legislature.
(c)The department, in collaboration with the State Department of Education, shall develop and conduct an alternative methodology. The department shall begin the process of data collection and analysis pursuant to developing an alternative methodology by July 1, 2023, and consult with the State Department of Education on data collection, analysis, and methodology for preschool programs. The alternative methodology shall build on the recommendations of the working group established pursuant to Section 10280.2 and shall be aligned with the recommendations of the Joint Labor Management Committee established pursuant to subdivision (a) of Section 10280.2.
(d)No later than February 15, 2024, the department, in collaboration with the State Department of Education and the Joint Labor Management Committee established pursuant to subdivision (a) of Section 10280.2, using information from the cost estimation model, shall define elements of the base rate and any enhanced rates to inform the states proposed single rate structure and rates. These elements shall be subject to the mandated public engagement state plan process and legislative review. The department shall report to the Senate Health and Human Services budget subcommittees, Assembly and Senate Education budget subcommittees, and the Legislative Analysts Office on progress made to conduct an alternative methodology and cost estimate model.
(e)No later than May 15, 2024, the department shall report on the status of the draft Child Care and Development Fund state plan to the Senate Health and Human Services budget subcommittees, Assembly and Senate Education budget subcommittees, and the Legislative Analysts Office on the states proposed single rate structure to be submitted to the United States Department of Health and Human Services, Administration for Children and Families.
(f)No later than July 1, 2024, the department shall submit necessary information to support use of a single rate structure using the alternative methodology to the United States Department of Health and Human Services, Administration for Children and Families in the Child Care and Development Fund state plan or an amendment to the state plan. The department shall provide a copy of the Child Care and Development Fund state plan or amendment to the state plan submitted to the United States Department of Health and Human Services, Administration for Children and Families to the Senate Health and Human Services budget subcommittees, Assembly and Senate Education budget subcommittees, and the Legislative Analysts Office no later than July 10, 2024.
(g) (1)Within 60 days of federal approval of the single rate structure utilizing the alternative methodology in the state plan, the department, in collaboration with the State Department of Education, shall provide the Assembly Committee on Budget, the Senate Committee on Budget and Fiscal Review, and the Legislative Analysts Office with a report that outlines the implementation components for the approved single rate structure. For a period of 30 days, the Legislature shall have the opportunity to review and provide feedback regarding draft guidance for implementation of policies. The report shall include all of the following:
(A)The departments plan to set new reimbursement rates under the alternative methodology by no later than July 1, 2025.
(B)The estimated costs and estimated timelines associated with the implementation components of the approved single rate structure, including, but not limited to, state operations resources, technology and infrastructure changes, and any regulatory or statutory changes necessary to implement the approved single rate structure.
(2)The department shall, from October 1, 2024, to January 1, 2026, inclusive, provide the Assembly Committee on Budget, the Senate Committee on Budget and Fiscal Review, and the Legislative Analysts Office with quarterly updates on the implementation of the new reimbursement rates set under the alternative methodology. The quarterly updates shall include any changes to the information provided in the report described in paragraph (1).
(h)The Governor and the Legislature shall, by no later than July 1, 2025, establish reimbursement rates based on the alternative methodology. Provider reimbursement rates shall not be reduced from the reimbursement rates that were in effect on June 30, 2024, pursuant to Sections 10280 and 10374.5 of this code and Section 8242 of the Education Code, inclusive of the cost of care plus rates established pursuant to subdivision (b) of Section 10277.1 and subdivision (b) of Section 10277.2.
(i)(1)If the new reimbursement rates established pursuant to subdivision (h) do not take effect on July 1, 2025, the department shall provide the Legislature with a timeline for transitioning from the rates that are in effect on July 1, 2025, to the new rates established pursuant to subdivision (h).
(2)Any temporary reimbursement rates established as part of the transition timeline required by paragraph (1) shall be, at minimum, equivalent to the reimbursement rates established pursuant to Sections 10280 and 10374.5 of this code and Section 8242 of the Education Code, inclusive of the cost of care plus rates established pursuant to subdivision (b) of Section 10277.1 and subdivision (b) of Section 10277.2.
(j)The single rate structure shall apply to all programs funded by the State Department of Social Services under Chapter 3 (commencing with Section 10225), Chapter 6 (commencing with Section 10235), Chapter 7 (commencing with Section 10240), Chapter 8 (commencing with Section 10250), Chapter 9 (commencing with Section 10260), Chapter 21 (commencing with Section 10370), and Chapter 2 (commencing with Section 11461.6) of Part 2, and the State Department of Education under Chapter 2 (commencing with Section 8200) of Part 6 of Division 1 of Title 1 of the Education Code.
(k)If the United States Department of Health and Human Services, Administration for Children and Families does not approve the alternative methodology developed pursuant to this section, the department shall develop and conduct a survey of the market rates for childcare services.
(l)If the provisions of this section are in conflict with the provisions of a memorandum of understanding reached pursuant to Section 10426, the memorandum of understanding shall be controlling without further legislative action, except that if such provisions of a memorandum of understanding require the expenditure of funds, the provisions shall not become effective unless approved by the Legislature in the annual Budget Act.
|
Date
|
Status
|
|---|---|
| Sep 27, 2026 | Chaptered by Secretary of State - Chapter 508, Statutes of 2026. |
| Sep 27, 2026 | Approved by the Governor. |
| Sep 14, 2026 | Enrolled and presented to the Governor at 1:30 p.m. |
| Aug 31, 2026 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 72. Noes 2.). |
| Aug 31, 2026 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 72. Noes 2. Page 7032.). |
| Aug 31, 2026 | Senate amendments concurred in. To Engrossing and Enrolling. |
| Aug 31, 2026 | In Assembly. Concurrence in Senate amendments pending. |
| Aug 31, 2026 | Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0.). |
| Aug 28, 2026 | Read second time. Ordered to third reading. |
| Aug 27, 2026 | Read third time and amended. Ordered to second reading. |
| Aug 24, 2026 | Read second time. Ordered to third reading. |
| Aug 21, 2026 | Read third time and amended. Ordered to second reading. |
| Aug 17, 2026 | Read second time. Ordered to third reading. |
| Aug 13, 2026 | Read second time and amended. Ordered returned to second reading. |
| Aug 13, 2026 | From committee: Amend, and do pass as amended. (Ayes 7. Noes 0.) (August 13). |
| Aug 3, 2026 | In committee: Referred to APPR. suspense file. |
| Jul 2, 2026 | Read second time and amended. Re-referred to Com. on APPR. |
| Jul 2, 2026 | From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (July 1). |
| Jun 23, 2026 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on E.Q. |
| Jun 22, 2026 | Re-referred to Com. on E.Q. |
| Jun 15, 2026 | Re-referred to Com. on RLS. pursuant to Senate Rule 29.10 (c). |
| Jun 15, 2026 | Read second time and amended. Ordered returned to second reading. |
| Jun 15, 2026 | Ordered to second reading. |
| Jun 15, 2026 | From inactive file. |
| Sep 11, 2025 | Ordered to inactive file at the request of Senator Grayson. |
| Sep 4, 2025 | Read second time. Ordered to third reading. |
| Sep 3, 2025 | Read third time and amended. Ordered to second reading. |
| Jul 1, 2025 | Read second time. Ordered to third reading. |
| Jun 30, 2025 | From committee: Be ordered to second reading pursuant to Senate Rule 28.8. |
| Jun 17, 2025 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 0.) (June 16). Re-referred to Com. on APPR. |
| May 28, 2025 | Referred to Com. on HUMAN S. |
| May 20, 2025 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 19, 2025 | Read third time. Passed. Ordered to the Senate. (Ayes 62. Noes 4. Page 1605.) |
| May 15, 2025 | Read second time. Ordered to third reading. |
| May 14, 2025 | From committee: Do pass. (Ayes 12. Noes 2.) (May 14). |
| Apr 30, 2025 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 1.) (April 29). Re-referred to Com. on APPR. |
| Apr 23, 2025 | Re-referred to Com. on HUM. S. |
| Apr 22, 2025 | From committee chair, with author's amendments: Amend, and re-refer to Com. on HUM. S. Read second time and amended. |
| Mar 25, 2025 | Re-referred to Com. on HUM. S. |
| Mar 24, 2025 | Referred to Com. on HUM. S. |
| Mar 24, 2025 | From committee chair, with author's amendments: Amend, and re-refer to Com. on HUM. S. Read second time and amended. |
| Feb 20, 2025 | From printer. May be heard in committee March 22. |
| Feb 19, 2025 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 31, 2026 | AB 904 Aguiar-Curry Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Aug 31, 2026 | Assembly 3rd Reading AB904 Aguiar-Curry By Cabaldon | Senate Floor |
Passed |
|
| Aug 13, 2026 | Do pass as amended | Senate Standing Committee on Appropriations |
Passed |
|
| Aug 3, 2026 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Jul 1, 2026 | Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] | Senate Standing Committee on Environmental Quality |
Passed |
|
| Jun 16, 2025 | Do pass, but first be re-referred to the Committee on [Appropriations] | Senate Standing Committee on Human Services |
Passed |
|
| May 19, 2025 | AB 904 Aguiar-Curry Assembly Third Reading | Assembly Floor |
Passed |
|
| May 14, 2025 | Do pass. | Assembly Standing Committee on Appropriations |
Passed |
|
| Apr 29, 2025 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Human Services |
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
|
|---|---|---|
| Alameda County Waste Management Authority | ** Support | |
| California Product Stewardship Council | ** Support | |
| Carpet & Rug Institute | ** Support | |
| Child Action, Inc. | ** Support | |
| Child Care Resource Center | ** Support | |
| Children Now | ** Support | |
| DISTRICT COUNCIL 16, INTERNATIONAL UNION OF PAINTERS AND ALLIED TRADES | ** Support | |
| District Council 36, International Union of Painters and Allied Trades | ** Support | |
| Grace Institute - End Child Poverty in Ca | ** Support | |
| Los Angeles Unified School District | ** Support | |
| Silicon Valley Community Foundation | ** Support | |
| TOOTRiS | ** Support |
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 904
Author:(Aguiar-Curry)
As Amended Ver:August 27, 2026
Majority vote
SUMMARY
Revises the state's carpet extended producer responsibility program (EPR), including adding reporting requirements to grants allocated to apprenticeship programs, requiring $2 million be allocated, and requiring that the carpet assessment be external.
Senate Amendments
- Delete the prior version of the bill.
- Revise definitions within the carpet EPR program, including the definition of "carpet" to mean a manufactured article that is used in commercial or residential buildings affixed or placed on the floor or building walking surface as a decorative or functional building interior feature and that is primarily constructed of a top visible surface of synthetic or natural face fibers, yarns, or tufts attached to a backing system derived from synthetic or natural materials. Excludes rugs, pads, cushions, or underlayment used in conjunction with, or separately from, carpet.
- Revise the membership of the governing board of the Producer Responsibility Organization (PRO), as specified, and requires the PRO to pay the travel expenses of governing board members.
- Specify that, upon the approval of a Producer Responsibility Plan (PRP), that a producer shall not sell, offer for sale, import, or distribute carpet in the state unless it complies with the requirements of the carpet EPR program, as specified.
- Require the PRP to include provisions for:
- The ability for people to drop off, at no charge, postconsumer carpet at a recycler, carpet recycling center, permitted solid waste facility, a collection location approved by the PRO, or other municipal facility that accepts carpet;
- The payment of a reasonable amount to these facilities for accepting, collecting, storing, transporting, and handling postconsumer carpet; and,
- Facilities that are open at least 20 hours per week over a minimum of four days per week, as specified.
- Revise the amount of funding directed toward apprenticeship programs to allocate $2 million annually, instead of 8% of total funds, and requires the funding to be adjusted going forward to reflect changes in the California Consumer Price Index.
- Establish additional guidance for the awarding of funds to apprenticeship programs.
- Require the labeling of carpet to include the name of the producer, the date of manufacture, and a listing of the types of face fibers and backing materials, as specified.
- Change the due date for the PRO annual report from July1 to September 1 of each year; requires the report to include specified information relating to grants and incentive payments provided by the PRO; and, requires it to include a report on achievement of the performance standards and progress toward meeting the performance standards, as specified.
- Revise the types of violations that are subject to a penalty of up to $25,000 per day to only include those that are intentional or knowing, rather than intentional, knowing, or negligent and changes the penalties from civil to administrative.
- Authorize CalRecycle to determine the PRO permanently ineligible to act as the PRO if it knowingly or intentionally violates the provisions governing the operation of the carpet EPR program three or more times.
- Make related technical and clarifying changes to the existing carpet EPR law.
COMMENTS
California's carpet EPR program has faced ongoing challenges with implementation, compliance, and enforcement. In response to these ongoing issues, the state's original carpet stewardship program was overhauled by AB 863 (Aguiar-Curry), Chapter 675, Statutes of 2024. The majority of AB 863's changes will likely not take effect until at least 2027. Among other provisions, AB 863:
- Established explicit goals that must be accomplished in the PRP;
- Required 8% of all assessments collected be spent on union apprenticeship programs; and,
- Increased penalties for program violations from up to $5,000 per day to up to $10,000 per day for most violations, and from up to $10,000 per day to up to $25,000 per day for knowing, intentional, and negligent violations.
Overhauling the 2010 carpet stewardship law was intended to create a fresh start for the troubled program. However, it's important to note the changes mandated by AB 863 – even though the bill became law on January 1, 2025 – will not take effect until CalRecycle:
- Adopts new regulations by December 31, 2026;
- Approves a new PRP submitted by the PRO;
- Notifies the PRO 90 days before notifying the Legislature that it is prepared to implement the requirements of AB 863; and,
- Submits to the relevant committees of the Legislature a letter indicating the conditions specified conditions have been met, that CalRecycle is prepared to implement the new law, and that the PRO is prepared to implement the new PRP.
In 2025, AB 80 (Aguiar Curry) was introduced to make further changes to the carpet program; however, AB 80 was held on the Senate Appropriations Suspense file. AB 904 picks up where AB 80 left off, including most of the changes proposed in AB 80.
Some of these changes add transparency (reporting on allocation of funding to apprenticeship programs and keeping the fee external), and others address nuts-and-bolts issues with the program that were not contemplated in AB 80 (adding concrete requirements to collection site requirements and changing the exact composition of the governing board). Altogether, AB 904 makes changes to a program that was heftily amended in 2024: those 2024 changes have not yet been implemented, making it unclear how this will change existing law in practice.
According to the Author
While AB 863 (Aguiar-Curry, 2024) strengthened accountability requirements for the statewide consumer-funded carpet recycling program, CARE continues to lack a representative model of governance, and perfectly recyclable carpet is currently being landfilled due to a lack of convenient collection sites and proper sorting. This bill improves accountability and representation within CARE's governance structure by adding additional nonvoting members across different manufacturers to the governing board. To improve recyclability, this bill increases collection site density, heightens product composition and backstamping standards, and ensures effective implementation in AB 863 to encourage more sustainable production practices.
Arguments in Support
A coalition of supporters state, "by implementing technical program updates, AB 904 ensures that manufacturers show greater transparency by updating disclosure, labeling, and reporting requirements."
Arguments in Opposition
None on file
FISCAL COMMENTS
According to the Senate Appropriations Committee, CalRecycle estimates ongoing costs of $439,000 in 2027-28 and $575,0000 annually thereafter (special fund) to develop and promulgate regulations, provide ongoing legal technical expertise, conduct investigations, inspections, and verify compliance with requirements regarding product composition, and conduct audits of the producer's return process.
VOTES:
ASM HUMAN SERVICES: 5-1-1
YES: Lee, Calderon, Elhawary, Jackson, Celeste Rodriguez
NO: Tangipa
ABS, ABST OR NV: Castillo
ASM APPROPRIATIONS: 12-2-1
YES: Wicks, Arambula, Calderon, Caloza, Dixon, Elhawary, Fong, Mark González, Hart, Pacheco, Pellerin, Solache
NO: Sanchez, Tangipa
ABS, ABST OR NV: Ta
ASSEMBLY FLOOR: 62-4-13
YES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Connolly, Davies, Elhawary, Fong, Gabriel, Garcia, Gipson, Mark González, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Krell, Lee, Lowenthal, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Patel, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas
NO: DeMaio, Lackey, Sanchez, Tangipa
ABS, ABST OR NV: Castillo, Chen, Dixon, Ellis, Flora, Gallagher, Jeff Gonzalez, Hadwick, Kalra, Macedo, Papan, Patterson, Ta
UPDATED
VERSION: August 27, 2026
CONSULTANT: Elizabeth MacMillan / NAT. RES. / (916) 319-2092 FN: 0004437
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-4171 | AB 904 |
THIRD READING
Bill No: AB 904
Author: Aguiar-Curry (D)
Amended: 8/27/26 in Senate
Vote: 21
Prior votes not relevant.
SENATE ENVIRONMENTAL QUALITY COMMITTEE: 7-0, 7/1/26
AYES: Blakespear, Valladares, Allen, Dahle, Gonzalez, Hurtado, Menjivar
SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/13/26
AYES: Cervantes, Seyarto, Cabaldon, Dahle, Grayson, Richardson, Wahab
ASSEMBLY FLOOR: 62-4, 5/19/25 - See last page for vote
SUBJECT: Carpet recycling
SOURCE: Author
DIGEST:
This bill makes numerous substantive changes to the carpet extended producer responsibility program, including adding reporting requirements to grants allocated to apprenticeship programs, requiring $2 million be allocated to apprenticeship programs, and requiring that the carpet assessment be external.
Senate Floor Amendments of 8/27/2026 double the amount of funding allocated from the carpet recycling program to apprenticeship programs, from $1 million to $2 million dollars per year and removes the changes from the previous floor amendments that give the Department of Resources Recycling and Recovery (CalRecycle) authority to make a producer responsibility organization ineligible to operate the program if the agency disproves the producer responsibility organization (PRO)’s annual report three or more times, and removes a clarification that any unfixed or repeated violation is presumed to be knowing or intentional for purposes of enforcement.
ANALYSIS:
Existing law:
- Establishes the Carpet Producer Responsibility Program (PRP) (Public Resources Code (PRC) §42968 et seq.) and the Product Stewardship for Carpets Program (PRC §42970 et seq.) to promote the collection and recycling of carpet. The program’s provisions:
- Establish the Carpet America Recovery Effort (CARE) as the producer responsibility organization (PRO) used in California (PRC §42971).
- Require carpet manufacturers and distributors to publish on their internet websites an environmental product declaration identifying the components and the percentage of each component used in the carpet (PRC §42968.4).
- Require the PRO to create a funding mechanism that equitably distributes the PRO’s costs among participating producers, based proportionally on their California sales volumes (PRC §42968.23).
- Require that by January 1, 2029, anyone who removes carpet from a home or business as part of a carpet installation project to have that old carpet taken to an approved collection site (PRC §42968.40).
- Require the PRO to submit an annual report to CalRecycle and make it available on the PRO’s internet website by July 1 of each year (PRC §42968.62).
- Require a PRO organization formed under (a) above to include nonvoting board members with representatives.
- Allow CalRecycle to impose a civil penalty of up to $25,000 per day for any violation that is intentional, knowing, or negligent or a civil penalty of up to $10,000 for other violations (PRC §42978).
- Beginning July 1, 2025, requires that the program allocate 8 percent of assessments on covered products per year, as determined by CalRecycle, to grants for apprenticeship programs.
This bill:
- Pushes back the timeline requiring CalRecycle to finalize regulations from January 1, 2028, to January 1, 2029.
- Expands the definition of an approved carpet collection site to include a carpet recycling center, a municipal facility that accepts carpet, a retailer that sells carpet, and a producer’s regional distribution center.
- Eliminates the requirement for carpet manufacturers and distributors to publish on their internet websites an environmental product declaration identifying all of the components and the percentage of each component used in the carpet. Instead, this bill requires them to only publish the components that constitute more than 1% of the carpet by weight and any intentionally added component listed by the Department of Toxic Substances Control as a Candidate Chemical pursuant to Section 69502.2 of Title 22 of the California Code of Regulations.
- Replaces the current PRO funding mechanism based proportionally on the California sales volumes of participating producers with one that leaves it up to the PRO to decide how to fund the organization.
- Eliminates the requirement for the PRO to submit amendments to its PRP to conform the plan to California law by July 1, 2026, and eliminates a requirement that the PRP include an explanation of how the PRO will be funded based on an assessment tied to each participating producer’s California sales volume.
- Replaces the requirement that a PRP explain how carpet makers will provide a visual mark on the back of carpet that is a synthetic material to allow carpet to be sorted quickly with a requirement to provide the name of the carpet maker, the date of manufacture, and a listing of the carpet’s face fibers and backing materials.
- Replaces the requirement that 8% of assessments go to grants for apprenticeship programs and instead specifies that $2 million annually shall go to grants for apprenticeship programs, with funding allocated between apprenticeship programs in northern and southern California.
- Specifies reporting requirements for the apprenticeship grants, including among other provisions
- The amount of each grant and incentive payment, with grant amounts broken down by category and by recipient.
- The number of applicants and recipients of a grant broken down by category.
- A detailed description of the criteria used to evaluate applications and to award the grants.
- Replaces the governing board composed of non-voting members in existing law with a governing board of voting members, and specifies the makeup of the governing board.
- Establishes certain exemption for the requirement that, on and after January 1, 2029, any person who removed a covered product from a residence of business transport the products to an approved collection site.
- Changes the due date for the PRO’s annual report from July 1 of each year to September 1 of each year.
- Revises the types of violations that are subject to a civil penalty of up to $25,000 per day to only include those that are intentional or knowing, rather than intentional, knowing, or negligent, and specifies what can count as intentional or knowing for the PRO.
Background
How The Carpet Stewardship Program Is Organized. Generally speaking, California’s carpet stewardship program operates in the following manner:
- State law requires California – through CalRecycle – to contract with Carpet America Recovery Effort (CARE), a third-party nonprofit PRO in Georgia.
- CARE has a board of directors, which is made up primarily of representatives from carpet mills.
- CARE’s board of directors created a stewardship planning committee consisting of some members of the CARE board of directors and non-board of director members. This committee – which also includes some non-voting members – makes all the decisions about what to do with and how to spend the money collected from California consumers. The committee shares its decisions with the board of directors, but it appears from CARE’s annual reports that only some of that information is made public.
Where Does The Money Go? According to CARE’s 2023 annual report, it spent $30.4 million collected from California carpet buyers in the following fashion:
- $23.2 million in subsidies:
- $10 million to seven Tier 1 Processors that essentially take apart collected carpets so the materials can be used to make other products;
- $9.8 million to ten Tier 2 Manufacturers that take the recycled output generated by Tier 1 Processors and turn it into other projects; and
- $3.4 million to 10 carpet collectors and sorters that provide the materials to Tier 1 Processors.
- $4 million in expenses, which includes collecting carpet ($2.1 million), education & outreach ($1.1 million) and grants ($601,000); and
- $3.1 million in administrative costs, which includes $2.4 million to CARE and $688,000 in fees paid to CalRecycle.
CARE’s new assessments fees – which were increased by 37%-54% on
February 1, 2025 – are:
- Broadloom carpet: $1.05/square yard (sy) (up from $0.70/sy) for carpet with less than 10% recycled content, and $0.96/sy (up from $0.62/sy) for carpet with 10% or more recycled content.
- Carpet tile: $1.49/sy (up from $0.99) for carpet with less than 10% recycled content, and $1.40/sy (up from $0.91) for carpet with 10% or more recycled content.
Comments
Purpose of Bill. According to the author, “While AB 863 (Aguiar-Curry, 2024) strengthened accountability requirements for the statewide consumer-funded carpet recycling program, CARE continues to lack a representative model of governance, and perfectly recyclable carpet is currently being landfilled due to a lack of convenient collection sites and proper sorting. This bill improves accountability and representation within CARE’s governance structure by adding additional nonvoting members across different manufacturers to the governing board. To improve recyclability, this bill increases collection site density, heightens product composition and backstamping standards, and ensures effective implementation in AB 863 to encourage more sustainable production practices.”
Starting Over…again. In 2024, the state’s original carpet stewardship program was overhauled by AB 863 (Aguiar-Curry, Chapter 675, Statutes of 2024), but for reasons explained below, the changes will likely not take effect until January 1, 2027, at the earliest. Among other provisions, AB 863:
- Set explicit goals that must be accomplished in the PRP;
- Required 8% of all assessments collected be spent on union apprenticeship programs;
- Increased penalties for program violations from up to $5,000 per day to up to $10,000 per day for most violations, and from up to $10,000 per day to up to $25,000 per day for knowing, intentional, and negligent violations; and
Overhauling the 2010 carpet stewardship law was intended to create a fresh start for a program that has somewhat of a checkered history. However, it’s important to note the changes mandated by AB 863 – even though the bill became law on January 1, 2025 – will not take effect until CalRecycle:
a) Adopts new regulations, which AB 863 required CalRecycle to complete by December 31, 2026;
b) Approves a new PRP submitted by the PRO;
c) Notifies the PRO 90 days before notifying the Legislature that it is prepared to implement the new requirements of AB 863; and
d) Submits to the relevant committees of the Legislature a letter indicating the conditions in a), b), and c) above have been met, that CalRecycle is prepared to implement the new law, and that the PRO is prepared to implement the new PRP.
In 2025, AB 80 (Aguiar Curry) was introduced to make further significant changes to the carpet program. AB 80 was held on the Senate Appropriations Suspense file. AB 904 picks up where AB 80 left off, including most of the changes proposed in AB 80. However, AB 904 differs from AB 80 in some ways:
- Allocations for grants to apprenticeship programs. Instead of dedicating 8% of assessments for grants to apprenticeship program, AB 904 allocates $1 million annually for these grants. It also establishes reporting requirements, where the grant awardees must report on how the money is being spent and how it is advancing the goals of the carpet stewardship program.
- Governing board member allocation. Changes the composition of the voting board, and specifically reduces the apprenticeship representation from two members (one northern and one southern) to just one apprenticeship representative, with the position changing every two years between a northern and southern representative.
- External vs. internal fees. Reverts to existing law’s external fee, when an internal fee had been contemplated under AB 80.
- Prescribing collection site criteria. Establishes collection requirements, to be met through the stewardship program, for carpets. This includes requirements that at least a quarter of collection facilities be open on Saturdays in areas with populations of 25,000 people or more.
- Other. Makes technical changes to the definition of non-profit (a PRO must be a nonprofit) and ‘carpet’, strikes provision that CalRecycle’s adjustment of performance standards be subject to the APA, and clarifies that violations and fines apply to knowing and intentional, not negligent, violations of the program, among others.
Some of these changes add transparency (reporting on allocation of funding to apprenticeship programs; keeping the fee external), and others address nuts-and-bolts issues with the program that were not contemplated in AB 80 (adding concrete requirements to collection site requirements, changing the exact composition of the governing board). Altogether, AB 904 makes changes to a program that was heftily amended in 2024: those 2024 changes have not yet been implemented, making it unclear how this will change existing law in practice.
Pushing paper In 2021, prior to AB 863 and updates to the carpet stewardship program, the carpet stewardship program PRO reported that they budgeted $100,000 per year for incentives and grants to support state-approved apprenticeship programs for training apprentice and journey-level carpet installers in proper carpet recycling practices. AB 904, like AB 80 and existing law through AB 863, provides significantly more funding for apprenticeship programs. AB 904 allocates a whopping $2 million per year to apprenticeship programs.
Unlike existing law and attempts to update the carpet stewardship program, AB 904 requires that apprenticeship programs provide detailed reports on how they are spending that grant funding; however, AB 904 does not authorize these reports to be used to inform subsequent grants, meaning that if the gains to the program were miniscule or a grantee spent funds inefficiently, that information would be known, but not considered when allocating them another grant.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
The Department of Resources Recycling and Recovery (CalRecycle) estimates ongoing costs of $439,000 in 2027-28 and $575,0000 annually thereafter (special fund) to develop and promulgate regulations, provide ongoing legal technical expertise, conduct investigations, inspections, and verify compliance with requirements regarding product composition, and conduct audits of the producer’s return process.
SUPPORT: (Verified 8/26/26)
Alameda County Waste Management Authority
California Product Stewardship Council
Carpet & Rug Institute
Child Action, INC.
District Council 16, International Union of Painters and Allied Trades
District Council 36, International Union of Painters and Allied Trades
Los Angeles Unified School District
Silicon Valley Community Foundation
OPPOSITION: (Verified 8/26/26)
None received
ASSEMBLY FLOOR: 62-4, 5/19/25
AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Connolly, Davies, Elhawary, Fong, Gabriel, Garcia, Gipson, Mark González, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Krell, Lee, Lowenthal, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Patel, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas
NOES: DeMaio, Lackey, Sanchez, Tangipa
NO VOTE RECORDED: Castillo, Chen, Dixon, Ellis, Flora, Gallagher, Jeff Gonzalez, Hadwick, Kalra, Macedo, Papan, Patterson, Ta
Prepared by: Brynn Cook / E.Q. / (916) 651-4108
8/28/26 11:28:53
**** END ****
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-4171 | AB 904 |
THIRD READING
Bill No: AB 904
Author: Aguiar-Curry (D)
Amended: 8/21/26 in Senate
Vote: 21
SENATE HUMAN SERVICES COMMITTEE: 4-0, 6/16/25
AYES: Arreguín, Becker, Limón, Wahab
NO VOTE RECORDED: Ochoa Bogh
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SENATE ENVIRONMENTAL QUALITY COMMITTEE: 7-0, 7/1/26
AYES: Blakespear, Valladares, Allen, Dahle, Gonzalez, Hurtado, Menjivar
SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/13/26
AYES: Cervantes, Seyarto, Cabaldon, Dahle, Grayson, Richardson, Wahab
ASSEMBLY FLOOR: 62-4, 5/19/25 - See last page for vote
SUBJECT: Carpet recycling
SOURCE: Author
DIGEST:
This bill makes numerous substantive changes to the carpet extended producer responsibility program, including adding reporting requirements to grants allocated to apprenticeship programs, requiring $1million be allocated, and requiring that the carpet assessment be external.
Senate floor amendments of 8/21/2026 push back the deadline by which CalRecycle must finalize the regulations for this program January 1, 2028 to January 1, 2029; allows CalRecycle to deem a PRO ineligible to operate the program if they submit a plan that CalRecycle disapproves three times; and specifies that ‘knowing and intentional’ violations of the act include a violation that has not been corrected between reporting periods, among other technical changes.
ANALYSIS:
Existing law:
- Establishes the Carpet Producer Responsibility Program (PRP) (Public Resources Code (PRC) §42968 et seq.) and the Product Stewardship for Carpets Program (PRC §42970 et seq.) to promote the collection and recycling of carpet. The program’s provisions:
- Establish the Carpet America Recovery Effort (CARE) as the producer responsibility organization (PRO) used in California (PRC §42971).
- Require carpet manufacturers and distributors to publish on their internet websites an environmental product declaration identifying the components and the percentage of each component used in the carpet (PRC §42968.4).
- Require the PRO to create a funding mechanism that equitably distributes the PRO’s costs among participating producers, based proportionally on their California sales volumes (PRC §42968.23).
- Require that by January 1, 2029, anyone who removes carpet from a home or business as part of a carpet installation project to have that old carpet taken to an approved collection site (PRC §42968.40).
- Require the PRO to submit an annual report to the Department of Resources Recycling and Recovery (CalRecycle) and make it available on the PRO’s internet website by July 1 of each year (PRC §42968.62).
- Require a PRO organization formed under (a) above to include nonvoting board members with representatives.
- Allow CalRecycle to impose a civil penalty of up to $25,000 per day for any violation that is intentional, knowing, or negligent or a civil penalty of up to $10,000 for other violations (PRC §42978).
- Beginning July 1, 2025, requires that the program allocate 8 percent of assessments on covered products per year, as determined by CalRecycle, to grants for apprenticeship programs.
This bill:
- Pushes back the timeline requiring CalRecycle to finalize regulations from January 1, 2028, to January 1, 2029.
- Expands the definition of an approved carpet collection site to include a carpet recycling center, a municipal facility that accepts carpet, a retailer that sells carpet, and a producer’s regional distribution center.
- Eliminates the requirement for carpet manufacturers and distributors to publish on their internet websites an environmental product declaration identifying all of the components and the percentage of each component used in the carpet. Instead, this bill requires them to only publish the components that constitute more than 1% of the carpet by weight and any intentionally added component listed by the Department of Toxic Substances Control as a Candidate Chemical pursuant to Section 69502.2 of Title 22 of the California Code of Regulations.
- Replaces the current PRO funding mechanism based proportionally on the California sales volumes of participating producers with one that leaves it up to the PRO to decide how to fund the organization.
- Eliminates the requirement for the PRO to submit amendments to its PRP to conform the plan to California law by July 1, 2026, and eliminates a requirement that the PRP include an explanation of how the PRO will be funded based on an assessment tied to each participating producer’s California sales volume.
- Replaces the requirement that a PRP explain how carpet makers will provide a visual mark on the back of carpet that is a synthetic material to allow carpet to be sorted quickly with a requirement to provide the name of the carpet maker, the date of manufacture, and a listing of the carpet’s face fibers and backing materials.
- Replaces the requirement that 8% of assessments go to grants for apprenticeship programs and instead specifies that $1 million annually shall go to grants for apprenticeship programs, with funding allocated between apprenticeship programs in northern and southern California.
- Specifies reporting requirements for the apprenticeship grants, including among other provisions
- The amount of each grant and incentive payment, with grant amounts broken down by category and by recipient.
- The number of applicants and recipients of a grant broken down by category.
- A detailed description of the criteria used to evaluate applications and to award the grants.
- Replaces the governing board composed of non-voting members in existing law with a governing board of voting members, and specifies the makeup of the governing board.
- Establishes certain exemption for the requirement that, on and after January 1, 2029, any person who removed a covered product from a residence of business transport the products to an approved collection site.
- Changes the due date for the PRO’s annual report from July 1 of each year to September 1 of each year.
- Revises the types of violations that are subject to a civil penalty of up to $25,000 per day to only include those that are intentional or knowing, rather than intentional, knowing, or negligent, and specifies what can count as intentional or knowing for the PRO.
- Authorizes CalRecycle to determine the PRO ineligible to act as the PRO if the CalRecycle disapproves the PRO’s annual report 3 or more times.
Background
How The Carpet Stewardship Program Is Organized. Generally speaking, California’s carpet stewardship program operates in the following manner:
- State law requires California – through CalRecycle – to contract with Carpet America Recovery Effort (CARE), a third-party nonprofit PRO in Georgia.
- CARE has a board of directors, which is made up primarily of representatives from carpet mills.
- CARE’s board of directors created a stewardship planning committee consisting of some members of the CARE board of directors and non-board of director members. This committee – which also includes some non-voting members – makes all the decisions about what to do with and how to spend the money collected from California consumers. The committee shares its decisions with the board of directors, but it appears from CARE’s annual reports that only some of that information is made public.
Where Does The Money Go? According to CARE’s 2023 annual report, it spent $30.4 million collected from California carpet buyers in the following fashion:
- $23.2 million in subsidies:
- $10 million to seven Tier 1 Processors that essentially take apart collected carpets so the materials can be used to make other products;
- $9.8 million to ten Tier 2 Manufacturers that take the recycled output generated by Tier 1 Processors and turn it into other projects; and
- $3.4 million to 10 carpet collectors and sorters that provide the materials to Tier 1 Processors.
- $4 million in expenses, which includes collecting carpet ($2.1 million), education & outreach ($1.1 million) and grants ($601,000); and
- $3.1 million in administrative costs, which includes $2.4 million to CARE and $688,000 in fees paid to CalRecycle.
CARE’s new assessments fees – which were increased by 37%-54% on
February 1, 2025 – are:
- Broadloom carpet: $1.05/square yard (sy) (up from $0.70/sy) for carpet with less than 10% recycled content, and $0.96/sy (up from $0.62/sy) for carpet with 10% or more recycled content.
- Carpet tile: $1.49/sy (up from $0.99) for carpet with less than 10% recycled content, and $1.40/sy (up from $0.91) for carpet with 10% or more recycled content.
Comments
Purpose of Bill. According to the author, “While AB 863 (Aguiar-Curry, 2024) strengthened accountability requirements for the statewide consumer-funded carpet recycling program, CARE continues to lack a representative model of governance, and perfectly recyclable carpet is currently being landfilled due to a lack of convenient collection sites and proper sorting. This bill improves accountability and representation within CARE’s governance structure by adding additional nonvoting members across different manufacturers to the governing board. To improve recyclability, this bill increases collection site density, heightens product composition and backstamping standards, and ensures effective implementation in AB 863 to encourage more sustainable production practices.”
Starting Over…again. In 2024, the state’s original carpet stewardship program was overhauled by AB 863 (Aguiar-Curry, Chapter 675, Statutes of 2024), but for reasons explained below, the changes will likely not take effect until January 1, 2027, at the earliest. Among other provisions, AB 863:
- Set explicit goals that must be accomplished in the PRP;
- Required 8% of all assessments collected be spent on union apprenticeship programs;
- Increased penalties for program violations from up to $5,000 per day to up to $10,000 per day for most violations, and from up to $10,000 per day to up to $25,000 per day for knowing, intentional, and negligent violations; and
Overhauling the 2010 carpet stewardship law was intended to create a fresh start for a program that has somewhat of a checkered history. However, it’s important to note the changes mandated by AB 863 – even though the bill became law on January 1, 2025 – will not take effect until CalRecycle:
a) Adopts new regulations, which AB 863 required CalRecycle to complete by December 31, 2026;
b) Approves a new PRP submitted by the PRO;
c) Notifies the PRO 90 days before notifying the Legislature that it is prepared to implement the new requirements of AB 863; and
d) Submits to the relevant committees of the Legislature a letter indicating the conditions in a), b), and c) above have been met, that CalRecycle is prepared to implement the new law, and that the PRO is prepared to implement the new PRP.
In 2025, AB 80 (Aguiar Curry) was introduced to make further significant changes to the carpet program. AB 80 was held on the Senate Appropriations Suspense file. AB 904 picks up where AB 80 left off, including most of the changes proposed in AB 80. However, AB 904 differs from AB 80 in some ways:
- Allocations for grants to apprenticeship programs. Instead of dedicating 8% of assessments for grants to apprenticeship program, AB 904 allocates $1 million annually for these grants. It also establishes reporting requirements, where the grant awardees must report on how the money is being spent and how it is advancing the goals of the carpet stewardship program.
- Governing board member allocation. Changes the composition of the voting board, and specifically reduces the apprenticeship representation from two members (one northern and one southern) to just one apprenticeship representative, with the position changing every two years between a northern and southern representative.
- External vs. internal fees. Reverts to existing law’s external fee, when an internal fee had been contemplated under AB 80.
- Prescribing collection site criteria. Establishes collection requirements, to be met through the stewardship program, for carpets. This includes requirements that at least a quarter of collection facilities be open on Saturdays in areas with populations of 25,000 people or more.
- Other. Makes technical changes to the definition of non-profit (a PRO must be a nonprofit) and ‘carpet’, strikes provision that CalRecycle’s adjustment of performance standards be subject to the APA, and clarifies that violations and fines apply to knowing and intentional, not negligent, violations of the program, among others.
Some of these changes add transparency (reporting on allocation of funding to apprenticeship programs; keeping the fee external), and others address nuts-and-bolts issues with the program that were not contemplated in AB 80 (adding concrete requirements to collection site requirements, changing the exact composition of the governing board). Altogether, AB 904 makes changes to a program that was heftily amended in 2024: those 2024 changes have not yet been implemented, making it unclear how this will change existing law in practice.
Pushing paper. In 2021, prior to AB 863 and updates to the carpet stewardship program, the carpet stewardship program PRO reported that they budgeted $100,000 per year for incentives and grants to support state-approved apprenticeship programs for training apprentice and journey-level carpet installers in proper carpet recycling practices. AB 904, like AB 80 and existing law through AB 863, provides significantly more funding for apprenticeship programs ($1 million per year, which is a change from the 8% allocated in existing law).
Unlike existing law and attempts to update the carpet stewardship program, AB 904 requires that apprenticeship programs provide detailed reports on how they are spending that grant funding; however, AB 904 does not authorize these reports to be used to inform subsequent grants, meaning that if the gains to the program were miniscule or a grantee spent funds inefficiently, that information would be known, but not considered when allocating them another grant.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
The Department of Resources Recycling and Recovery (CalRecycle) estimates ongoing costs of $439,000 in 2027-28 and $575,0000 annually thereafter (special fund) to develop and promulgate regulations, provide ongoing legal technical expertise, conduct investigations, inspections, and verify compliance with requirements regarding product composition, and conduct audits of the producer’s return process.
SUPPORT: (Verified 8/23/26)
Alameda County Waste Management Authority
California Product Stewardship Council
Carpet & Rug Institute
Child Action, INC.
District Council 16, International Union of Painters and Allied Trades
District Council 36, International Union of Painters and Allied Trades
Los Angeles Unified School District
Silicon Valley Community Foundation
OPPOSITION: (Verified 8/23/26)
None received
ASSEMBLY FLOOR: 62-4, 5/19/25
AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Connolly, Davies, Elhawary, Fong, Gabriel, Garcia, Gipson, Mark González, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Krell, Lee, Lowenthal, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Patel, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas
NOES: DeMaio, Lackey, Sanchez, Tangipa
NO VOTE RECORDED: Castillo, Chen, Dixon, Ellis, Flora, Gallagher, Jeff Gonzalez, Hadwick, Kalra, Macedo, Papan, Patterson, Ta
Prepared by: Brynn Cook / E.Q. / (916) 651-4108
8/24/26 11:59:30
**** END ****
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-4171 | AB 904 |
THIRD READING
Bill No: AB 904
Author: Aguiar-Curry (D)
Amended: 8/13/26 in Senate
Vote: 21
SENATE HUMAN SERVICES COMMITTEE: 4-0, 6/16/25
AYES: Arreguín, Becker, Limón, Wahab
NO VOTE RECORDED: Ochoa Bogh
SENATE ENVIRONMENTAL QUALITY COMMITTEE: 7-0, 7/1/26
AYES: Blakespear, Valladares, Allen, Dahle, Gonzalez, Hurtado, Menjivar
SENATE APPROPRIATIONS COMMITTEE: 7-0, 8/13/26
AYES: Cervantes, Seyarto, Cabaldon, Dahle, Grayson, Richardson, Wahab
ASSEMBLY FLOOR: 62-4, 5/19/25 - See last page for vote
SUBJECT: Carpet recycling
SOURCE: Author
DIGEST:
This bill makes numerous substantive changes to the carpet extended producer responsibility program, including adding reporting requirements to grants allocated to apprenticeship programs, requiring $1million be allocated, and requiring that the carpet assessment be external.
ANALYSIS:
Existing law:
- Establishes the Carpet Producer Responsibility Program (PRP) (Public Resources Code (PRC) §42968 et seq.) and the Product Stewardship for Carpets Program (PRC §42970 et seq.) to promote the collection and recycling of carpet. The program’s provisions:
- Establish the Carpet America Recovery Effort (CARE) as the producer responsibility organization (PRO) used in California (PRC §42971).
- Require carpet manufacturers and distributors to publish on their internet websites an environmental product declaration identifying the components and the percentage of each component used in the carpet (PRC §42968.4).
- Require the PRO to create a funding mechanism that equitably distributes the PRO’s costs among participating producers, based proportionally on their California sales volumes (PRC §42968.23).
- Require that by January 1, 2029, anyone who removes carpet from a home or business as part of a carpet installation project to have that old carpet taken to an approved collection site (PRC §42968.40).
- Require the PRO to submit an annual report to the Department of Resources Recycling and Recovery (CalRecycle) and make it available on the PRO’s internet website by July 1 of each year (PRC §42968.62).
- Require a PRO organization formed under (a) above to include nonvoting board members with representatives.
- Allow CalRecycle to impose a civil penalty of up to $25,000 per day for any violation that is intentional, knowing, or negligent or a civil penalty of up to $10,000 for other violations (PRC §42978).
- Beginning July 1, 2025, requires that the program allocate 8 percent of assessments on covered products per year, as determined by CalRecycle, to grants for apprenticeship programs.
This bill:
- Expands the definition of an approved carpet collection site to include a carpet recycling center, a municipal facility that accepts carpet, a retailer that sells carpet, and a producer’s regional distribution center.
- Eliminates the requirement for carpet manufacturers and distributors to publish on their internet websites an environmental product declaration identifying all of the components and the percentage of each component used in the carpet. Instead, this bill requires them to only publish the components that constitute more than 1% of the carpet by weight and any intentionally added component listed by the Department of Toxic Substances Control as a Candidate Chemical pursuant to Section 69502.2 of Title 22 of the California Code of Regulations.
- Replaces the current PRO funding mechanism based proportionally on the California sales volumes of participating producers with one that leaves it up to the PRO to decide how to fund the organization.
- Eliminates the requirement for the PRO to submit amendments to its PRP to conform the plan to California law by July 1, 2026.
- Eliminates a requirement that the PRP include an explanation of how the PRO will be funded based on an assessment tied to each participating producer’s California sales volume.
- Replaces the requirement that a PRP explain how carpet makers will provide a visual mark on the back of carpet that is a synthetic material to allow carpet to be sorted quickly with a requirement to provide the name of the carpet maker, the date of manufacture, and a listing of the carpet’s face fibers and backing materials.
- Replaces the requirement that 8% of assessments go to grants for apprenticeship programs and instead specifies that $1 million annually shall go to grants for apprenticeship programs, with funding allocated between apprenticeship programs in northern and southern California.
- Specifies reporting requirements for the apprenticeship grants, including among other provisions
- The amount of each grant and incentive payment, with grant amounts broken down by category and by recipient.
- The number of applicants and recipients of a grant broken down by category.
- A detailed description of the criteria used to evaluate applications and to award the grants.
- Replaces the governing board composed of non-voting members in existing law with a governing board of voting members, and specifies the makeup of the governing board.
- Establishes certain exemption for the requirement that, on and after January 1, 2029, any person who removed a covered product from a residence of business transport the products to an approved collection site.
- Changes the due date for the PRO’s annual report from July 1 of each year to September 1 of each year.
- Revises the types of violations that are subject to a civil penalty of up to $25,000 per day to only include those that are intentional or knowing, rather than intentional, knowing, or negligent.
Background
How The Carpet Stewardship Program Is Organized. Generally speaking, California’s carpet stewardship program operates in the following manner:
- State law requires California – through CalRecycle – to contract with Carpet America Recovery Effort (CARE), a third-party nonprofit PRO in Georgia.
- CARE has a board of directors, which is made up primarily of representatives from carpet mills.
- CARE’s board of directors created a stewardship planning committee consisting of some members of the CARE board of directors and non-board of director members. This committee – which also includes some non-voting members – makes all the decisions about what to do with and how to spend the money collected from California consumers. The committee shares its decisions with the board of directors, but it appears from CARE’s annual reports that only some of that information is made public.
Where Does The Money Go? According to CARE’s 2023 annual report, it spent $30.4 million collected from California carpet buyers in the following fashion:
- $23.2 million in subsidies:
- $10 million to seven Tier 1 Processors that essentially take apart collected carpets so the materials can be used to make other products;
- $9.8 million to ten Tier 2 Manufacturers that take the recycled output generated by Tier 1 Processors and turn it into other projects; and
- $3.4 million to 10 carpet collectors and sorters that provide the materials to Tier 1 Processors.
- $4 million in expenses, which includes collecting carpet ($2.1 million), education & outreach ($1.1 million) and grants ($601,000); and
- $3.1 million in administrative costs, which includes $2.4 million to CARE and $688,000 in fees paid to CalRecycle.
CARE’s new assessments fees – which were increased by 37%-54% on
February 1, 2025 – are:
- Broadloom carpet: $1.05/square yard (sy) (up from $0.70/sy) for carpet with less than 10% recycled content, and $0.96/sy (up from $0.62/sy) for carpet with 10% or more recycled content.
- Carpet tile: $1.49/sy (up from $0.99) for carpet with less than 10% recycled content, and $1.40/sy (up from $0.91) for carpet with 10% or more recycled content.
Comments
Purpose of Bill. According to the author, “While AB 863 (Aguiar-Curry, 2024) strengthened accountability requirements for the statewide consumer-funded carpet recycling program, CARE continues to lack a representative model of governance, and perfectly recyclable carpet is currently being landfilled due to a lack of convenient collection sites and proper sorting. This bill improves accountability and representation within CARE’s governance structure by adding additional nonvoting members across different manufacturers to the governing board. To improve recyclability, this bill increases collection site density, heightens product composition and backstamping standards, and ensures effective implementation in AB 863 to encourage more sustainable production practices.”
Starting Over…again. In 2024, the state’s original carpet stewardship program was overhauled by AB 863 (Aguiar-Curry, Chapter 675, Statutes of 2024), but for reasons explained below, the changes will likely not take effect until January 1, 2027, at the earliest. Among other provisions, AB 863:
- Set explicit goals that must be accomplished in the PRP;
- Required 8% of all assessments collected be spent on union apprenticeship programs;
- Increased penalties for program violations from up to $5,000 per day to up to $10,000 per day for most violations, and from up to $10,000 per day to up to $25,000 per day for knowing, intentional, and negligent violations; and
Overhauling the 2010 carpet stewardship law was intended to create a fresh start for a program that has somewhat of a checkered history. However, it’s important to note the changes mandated by AB 863 – even though the bill became law on January 1, 2025 – will not take effect until CalRecycle:
a) Adopts new regulations, which AB 863 required CalRecycle to complete by December 31, 2026;
b) Approves a new PRP submitted by the PRO;
c) Notifies the PRO 90 days before notifying the Legislature that it is prepared to implement the new requirements of AB 863; and
d) Submits to the relevant committees of the Legislature a letter indicating the conditions in a), b), and c) above have been met, that CalRecycle is prepared to implement the new law, and that the PRO is prepared to implement the new PRP.
In 2025, AB 80 (Aguiar Curry) was introduced to make further significant changes to the carpet program. AB 80 was held on the Senate Appropriations Suspense file. AB 904 picks up where AB 80 left off, including most of the changes proposed in AB 80. However, AB 904 differs from AB 80 in some ways:
- Allocations for grants to apprenticeship programs. Instead of dedicating 8% of assessments for grants to apprenticeship program, AB 904 allocates $1 million annually for these grants. It also establishes reporting requirements, where the grant awardees must report on how the money is being spent and how it is advancing the goals of the carpet stewardship program.
- Governing board member allocation. Changes the composition of the voting board, and specifically reduces the apprenticeship representation from two members (one northern and one southern) to just one apprenticeship representative, with the position changing every two years between a northern and southern representative.
- External vs. internal fees. Reverts to existing law’s external fee, when an internal fee had been contemplated under AB 80.
- Prescribing collection site criteria. Establishes collection requirements, to be met through the stewardship program, for carpets. This includes requirements that at least a quarter of collection facilities be open on Saturdays in areas with populations of 25,000 people or more.
- Other. Makes technical changes to the definition of non-profit (a PRO must be a nonprofit) and ‘carpet’, strikes provision that CalRecycle’s adjustment of performance standards be subject to the APA, and clarifies that violations and fines apply to knowing and intentional, not negligent, violations of the program, among others.
Some of these changes add transparency (reporting on allocation of funding to apprenticeship programs; keeping the fee external), and others address nuts-and-bolts issues with the program that were not contemplated in AB 80 (adding concrete requirements to collection site requirements, changing the exact composition of the governing board). Altogether, AB 904 makes changes to a program that was heftily amended in 2024: those 2024 changes have not yet been implemented, making it unclear how this will change existing law in practice.
Pushing paper. In 2021, prior to AB 863 and updates to the carpet stewardship program, the carpet stewardship program PRO reported that they budgeted $100,000 per year for incentives and grants to support state-approved apprenticeship programs for training apprentice and journey-level carpet installers in proper carpet recycling practices. AB 904, like AB 80 and existing law through AB 863, provides significantly more funding for apprenticeship programs ($1 million per year, which is a change from the 8% allocated in existing law).
Unlike existing law and attempts to update the carpet stewardship program, AB 904 requires that apprenticeship programs provide detailed reports on how they are spending that grant funding; however, AB 904 does not authorize these reports to be used to inform subsequent grants, meaning that if the gains to the program were miniscule or a grantee spent funds inefficiently, that information would be known, but not considered when allocating them another grant.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
The Department of Resources Recycling and Recovery (CalRecycle) estimates ongoing costs of $439,000 in 2027-28 and $575,0000 annually thereafter (special fund) to develop and promulgate regulations, provide ongoing legal technical expertise, conduct investigations, inspections, and verify compliance with requirements regarding product composition, and conduct audits of the producer’s return process.
SUPPORT: (Verified 8/13/26)
Alameda County Waste Management Authority
California Product Stewardship Council
Carpet & Rug Institute
Child Action, INC.
District Council 16, International Union of Painters and Allied Trades
District Council 36, International Union of Painters and Allied Trades
Los Angeles Unified School District
Silicon Valley Community Foundation
OPPOSITION: (Verified 8/13/26)
None received
ASSEMBLY FLOOR: 62-4, 5/19/25
AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Connolly, Davies, Elhawary, Fong, Gabriel, Garcia, Gipson, Mark González, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Krell, Lee, Lowenthal, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Patel, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas
NOES: DeMaio, Lackey, Sanchez, Tangipa
NO VOTE RECORDED: Castillo, Chen, Dixon, Ellis, Flora, Gallagher, Jeff Gonzalez, Hadwick, Kalra, Macedo, Papan, Patterson, Ta
Prepared by: Brynn Cook / E.Q. / (916) 651-4108
8/17/26 10:37:59
**** END ****
SENATE COMMITTEE ON
Senator Sabrina Cervantes, Chair
2025 - 2026 Regular Session
AB 904 (Aguiar-Curry) - Carpet recycling
Version: | Policy Vote: |
Urgency: | Mandate: |
Hearing Date: | Consultant: |
Bill Summary:
This bill would make numerous substantive changes to the carpet extended producer responsibility (EPR) program, including adding reporting requirements to grants allocated to apprenticeship programs, requiring $1million be allocated, and requiring that the carpet assessment be external.
*********** ANALYSIS ADDENDUM – SUSPENSE FILE ***********
The following information is revised to reflect amendments
adopted by the committee on August 13, 2026
Fiscal Impact:
- The Department of Resources Recycling and Recovery (CalRecycle) estimates ongoing costs of $439,000 in 2027-28 and $575,0000 annually thereafter (special fund) to develop and promulgate regulations, provide ongoing legal technical expertise, conduct investigations, inspections, and verify compliance with requirements regarding product composition, and conduct audits of the producer’s return process.
Committee Amendments:
Committee amendments would balance legislative appointments to the producer responsibility organization’s governing board.
-- END --
SENATE COMMITTEE ON
Senator Sabrina Cervantes, Chair
2025 - 2026 Regular Session
AB 904 (Aguiar-Curry) - Carpet recycling
Version: | Policy Vote: |
Urgency: | Mandate: |
Hearing Date: | Consultant: |
Bill Summary:
This bill would make numerous substantive changes to the carpet extended producer responsibility (EPR) program, including adding reporting requirements to grants allocated to apprenticeship programs, requiring $1million be allocated, and requiring that the carpet assessment be external.
Fiscal Impact:
- The Department of Resources Recycling and Recovery (CalRecycle) estimates ongoing costs of $439,000 in 2027-28 and $575,0000 annually thereafter (special fund) to develop and promulgate regulations, provide ongoing legal technical expertise, conduct investigations, inspections, and verify compliance with requirements regarding product composition, and conduct audits of the producer’s return process.
Background:
- California's carpet stewardship program is administered not by the state directly but by Carpet America Recovery Effort (CARE), a Georgia-based nonprofit producer responsibility organization that CalRecycle is required by statute to contract with, and which controls both the setting and the spending of fees collected from California carpet buyers.
- Governance. CARE's board is composed primarily of carpet mill representatives, and the board created a stewardship planning committee — drawn from board and non-board members, including some non-voting ones — that makes all decisions about how California ratepayer money is spent. The committee reports to the board, but CARE's annual reports suggest only some of that information becomes public.
- How the money flows. Unlike the tire recycling program, where CalRecycle apportions grants itself, funds go directly to CARE. CARE decides how much revenue it wants, calculates a per-square-yard charge across four carpet categories (recycled and non-recycled broadloom, recycled and non-recycled carpet squares), and submits it to CalRecycle for approval. Once approved, CARE assesses the fee on manufacturers using a sales-volume formula in statute; manufacturers pass it to retailers as an external fee, and retailers pass it to consumers, who see it itemized on their bills.
- Recycling chain. Removed carpet is supposed to go to CARE-overseen authorized collection facilities, then be sorted and shipped to recyclers that convert it into other products, typically building materials such as insulation.
- 2023 spending ($30.4 million). $23.2 million in subsidies — $10 million to seven Tier 1 processors that break down collected carpet, $9.8 million to ten Tier 2 manufacturers that turn that output into new products, and $3.4 million to ten collectors and sorters; $4 million in expenses, including $2.1 million for carpet collection, $1.1 million for education and outreach, and $601,000 in grants; and $3.1 million in administrative costs, of which $2.4 million went to CARE and $688,000 to CalRecycle in fees.
- Fee increases effective February 1, 2025 (37%–54%). Broadloom rose to $1.05/square yard from $0.70 for carpet with less than 10% recycled content and to $0.96 from $0.62 for carpet at 10% or more. Carpet tile rose to $1.49/sy from $0.99 below the 10% threshold and to $1.40 from $0.91 at or above it.
Proposed Law:
This bill would:
- Expand the definition of an approved carpet collection site to include a carpet recycling center, a municipal facility that accepts carpet, a retailer that sells carpet, and a producer’s regional distribution center.
- Eliminate the definition of “circular economy environmental nongovernmental organization” and replaces it with a definition of an “environmental nongovernmental organization” that is a “nonprofit organization established to address environmental issues related to waste and recycling.”
- Eliminate the requirement for carpet manufacturers and distributors to publish on their internet websites an environmental product declaration identifying all of the components and the percentage of each component used in the carpet. Instead, this bill requires them to only publish the components that constitute more than 1% of the carpet by weight and any intentionally added component listed by the Department of Toxic Substances Control as a Candidate Chemical pursuant to Section 69502.2 of Title 22 of the California Code of Regulations.
- Replace the current PRO funding mechanism based proportionally on the California sales volumes of participating producers with one that leaves it up to the PRO to decide how to fund the organization.
- Eliminate the requirement for the PRO to submit amendments to its PRP to conform the plan to California law by July 1, 2026.
- Eliminate a requirement that the PRP include an explanation of how the PRO will be funded based on an assessment tied to each participating producer’s California sales volume.
- Replace the requirement that a PRP explain how carpet makers will provide a visual mark on the back of carpet that is a synthetic material to allow carpet to be sorted quickly with a requirement to provide the name of the carpet maker, the date of manufacture, and a listing of the carpet’s face fibers and backing materials.
- Replace the requirement that 8% of assessments go to grants for apprenticeship programs and instead specifies that $1 million annually shall go to grants for apprenticeship programs, with funding allocated between apprenticeship programs in northern and southern California.
- Specify reporting requirements for the apprenticeship grants, including:
- The amount of each grant and incentive payment, with grant amounts broken down by category and by recipient.
- The number of applicants and recipients of a grant broken down by category.
- A detailed description of the criteria used to evaluate applications and to award the grants.
- A timeline of the process and a description of when applications were announced, the deadline to apply, the length of the review process, and the date the grants or incentive payments were awarded.
- An explanation of why certain recipients are chosen for incentive payments and others are not.
- A report on achievement of the performance and the progress toward meeting the performance standards. If the standards were not met, a description of efforts made to achieve the performance standards.
- A separate list identifying any grant or incentive payment provided to any of the following and an explanation as to why the grant or incentive payment does not involve a conflict of interest with the PRO’s board of directors or governing board.
- Replace the governing board composed of non-voting members in existing law with a governing board of voting members, as specified.
- Exempt the following from the requirement that, on and after January 1, 2029, any person who removed a covered product from a residence of business transport the products to an approved collection site:
- If the covered product is returned to the producer;
- If the producer’s return process and guidelines are included in the PRO’s approved producer responsibility plan;
- If the producer collects, maintains, and provides to the PRO the information necessary for the collection to be included in the PRO’s performance metrics; and,
- If the producer’s return process is subject to audit by the PRO and CalRecycle.
- Change the due date for the PRO’s annual report from July 1 of each year to September 1 of each year.
- Revise the types of violations that are subject to a civil penalty of up to $25,000 per day to only include those that are intentional or knowing, rather than intentional, knowing, or negligent.
Related Legislation:
AB 80 (Aguiar-Curry, 2025), would have made substantive changes to the carpet stewardship program. This bill died in this committee.
AB 863 (Aguiar-Curry, Chapter 675, Statutes of 2024) replaced the existing state extended producer responsibility (EPR) program for carpet and replaces it with an expanded EPR program under one producer responsibility organization (PRO), with numerous additional requirements and enforcement mechanisms against noncompliance from the PRO.
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SENATE COMMITTEE ON ENVIRONMENTAL QUALITY
Senator Blakespear, Chair
2025 - 2026 Regular
Bill No: AB 904
Author: | Aguiar-Curry | ||
Version: | 9/3/2025 | Hearing Date: | 7/1/2026 |
Urgency: | No | Fiscal: | Yes |
Consultant: | Brynn Cook | ||
SUBJECT: Childcare services: workday
DIGEST: This bill makes numerous substantive changes to the carpet extended producer responsibility program, including adding reporting requirements to grants allocated to apprenticeship programs, requiring $1million be allocated, and requiring that the carpet assessment be external.
ANALYSIS:
Existing law:
Establishes the Carpet Producer Responsibility Program (Public Resources Code (PRC) §42968 et seq.) and the Product Stewardship for Carpets Program (PRC §42970 et seq.) to promote the collection and recycling of carpet. The programs:
- Establish the Carpet America Recovery Effort (CARE) as the producer responsibility organization (PRO) used in California (PRC §42971).
- Limit approved carpet collection sites to solid waste facilities that have agreed to accept carpet from the PRO (PRC §42968).
- Require carpet manufacturers and distributors to publish on their internet websites an environmental product declaration identifying the components and the percentage of each component used in the carpet (PRC §42968.4).
- Require the PRO to create a funding mechanism that equitably distributes the PRO’s costs among participating producers, based proportionally on their California sales volumes (PRC §42968.23).
- Require a producer responsibility plan (PRP) to, among other things, explain how carpet makers will, beginning January 1, 2027, provide a visual mark on the back of carpet that is a synthetic material to allow carpet to be sorted quickly (PRC §42968.32).
- Require that by January 1, 2029, anyone who removes carpet from a home or business as part of a carpet installation project to have that old carpet taken to an approved collection site (PRC §42968.40).
- Require the PRO to submit an annual report to the Department of Resources Recycling and Recovery (CalRecycle) and make it available on the PRO’s internet website by July 1 of each year (PRC §42968.62).
- Require carpet to contain 5% of postconsumer recycled carpet content by 2028. The department may, for the year 2029 and any year thereafter, set the rate for postconsumer recycled carpet to be required in carpet.
- Require a PRO organization formed under (a) above to include nonvoting board members with representatives from:
- A circular economy environmental nongovernmental organization;
- A retailer that sells carpet;
- A labor representative from a floor covering joint apprenticeship program in northern California approved by the Division of Apprenticeship Standards; and
- A labor representative from a floor covering joint apprenticeship program in southern California approved by the Division of Apprenticeship Standards (PRC §42973.7, PRC §42968.21).
- Allow CalRecycle to impose a civil penalty of up to $25,000 per day for any violation that is intentional, knowing, or negligent or a civil penalty of up to $10,000 for other violations (PRC §42978).
- Beginning July 1, 2025, requires that the program allocate 8 percent of assessments on covered products per year, as determined by CalRecycle, to grants for apprenticeship programs
This bill:
- Expands the definition of an approved carpet collection site to include a carpet recycling center, a municipal facility that accepts carpet, a retailer that sells carpet, and a producer’s regional distribution center.
- Eliminates the definition of “circular economy environmental nongovernmental organization” and replaces it with a definition of an “environmental nongovernmental organization” that is a “nonprofit organization established to address environmental issues related to waste and recycling.”
- Eliminates the requirement for carpet manufacturers and distributors to publish on their internet websites an environmental product declaration identifying all of the components and the percentage of each component used in the carpet. Instead, this bill requires them to only publish the components that constitute more than 1% of the carpet by weight and any intentionally added component listed by the Department of Toxic Substances Control as a Candidate Chemical pursuant to Section 69502.2 of Title 22 of the California Code of Regulations.
- Replaces the current PRO funding mechanism based proportionally on the California sales volumes of participating producers with one that leaves it up to the PRO to decide how to fund the organization.
- Eliminates the requirement for the PRO to submit amendments to its PRP to conform the plan to California law by July 1, 2026.
- Eliminates a requirement that the PRP include an explanation of how the PRO will be funded based on an assessment tied to each participating producer’s California sales volume.
- Replaces the requirement that a PRP explain how carpet makers will provide a visual mark on the back of carpet that is a synthetic material to allow carpet to be sorted quickly with a requirement to provide the name of the carpet maker, the date of manufacture, and a listing of the carpet’s face fibers and backing materials.
- Replaces the requirement that 8% of assessments go to grants for apprenticeship programs and instead specifies that $1 million annually shall go to grants for apprenticeship programs, with funding allocated between apprenticeship programs in northern and southern California.
- Specifies reporting requirements for the apprenticeship grants, including:
- The amount of each grant and incentive payment, with grant amounts broken down by category and by recipient.
- The number of applicants and recipients of a grant broken down by category.
- A detailed description of the criteria used to evaluate applications and to award the grants.
- A timeline of the process and a description of when applications were announced, the deadline to apply, the length of the review process, and the date the grants or incentive payments were awarded.
- An explanation of why certain recipients are chosen for incentive payments and others are not.
- A report on achievement of the performance and the progress toward meeting the performance standards. If the standards were not met, a description of efforts made to achieve the performance standards.
- A separate list identifying any grant or incentive payment provided to any of the following and an explanation as to why the grant or incentive payment does not involve a conflict of interest with the PRO’s board of directors or governing board.
- Replaces the governing board composed of non-voting members in existing law with a governing board of voting members. The governing board shall be appointed as follows:
- A circular economy environmental nongovernmental organization.
- The carpet stewardship organization shall appoint eight voting members with at least one voting member who is a representative of the Carpet and Rug Institute.
- The Speaker of the Assembly shall appoint representatives for:
- An environmental organization that is involved in promoting recycling programs and the circular economy.
- A retailer that sells covered products in California.
- A labor representative from a floor covering joint apprenticeship program in alternating northern and southern California that is approved by the Division of Apprenticeship Standards.
- A labor representative from a floor covering joint apprenticeship program in southern California that is approved by the Division of Apprenticeship Standards.
- The President pro Tempore of the Senate shall appoint two voting members, one representing each of the following:
- A collector or hauler who participates in the California carpet stewardship program.
- A recycler of carpet located in California.
- Exempts the following from the requirement that, on and after January 1, 2029, any person who removed a covered product from a residence of business transport the products to an approved collection site:
- If the covered product is returned to the producer;
- If the producer’s return process and guidelines are included in the PRO’s approved producer responsibility plan;
- If the producer collects, maintains, and provides to the PRO the information necessary for the collection to be included in the PRO’s performance metrics; and,
- If the producer’s return process is subject to audit by the PRO and CalRecycle.
- Changes the due date for the PRO’s annual report from July 1 of each year to September 1 of each year.
- Revises the types of violations that are subject to a civil penalty of up to $25,000 per day to only include those that are intentional or knowing, rather than intentional, knowing, or negligent.
Background
- 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 seven statewide EPR programs: paint, carpet, mattresses, pharmaceutical and sharps waste, and plastic packaging, single-use plastic items, and textiles.
- Not All Carpet Is Magic. Discarded carpet is one of the most prevalent waste materials in California landfills, making up more than 1% of the total waste thrown away in the state in 2021. Carpet doesn’t just take up a lot of space in landfills, it also isn’t easy to manage and is found often at illegal dumping sites.
To divert carpet from landfills and, hopefully, from illegal dumping sites, AB 2398 (Pérez, Chapter 681, Statutes of 2010) was enacted to try and create a recycling market for old carpets.
- How The Carpet Stewardship Program Is Organized. Generally speaking, California’s carpet stewardship program operates in the following manner:
- State law requires California – through CalRecycle – to contract with Carpet America Recovery Effort (CARE), a third-party nonprofit PRO in Georgia.
- CARE has a board of directors, which is made up primarily of representatives from carpet mills.
- CARE’s board of directors created a stewardship planning committee consisting of some members of the CARE board of directors and non-board of director members. This committee – which also includes some non-voting members – makes all the decisions about what to do with and how to spend the money collected from California consumers. The committee shares its decisions with the board of directors, but it appears from CARE’s annual reports that only some of that information is made public.
- Follow The Money. Unlike the tire recycling program, where CalReycle is tasked with apportioning grant funding out to applicants, the money from California’s carpet stewardship program goes directly to CARE, which then apportions the funding. Loosely speaking, the money flows like this:
- CARE decides on the amount of money it wants to raise to spend on subsidies, grants, etc.
- CARE calculates a per-square-yard charge for four types of carpet – a) recycled content broadloom; b) non-recycled content broadloom; c) recycled content carpet squares; and d) non-recycled content carpet squares – and submits the request to CalRecycle.
- Once the fee is approved by CalRecycle, CARE uses a formula in state statute (based on the volume of sales by manufacturer) to assess the fee on the carpet manufacturers.
- After the carpet manufactures pay this “external fee,” they pass it along in the same “external fee” fashion – to carpet retailers, who in turn pass it along to California carpet buyers who see the external fee on their bills.
Under the program, when carpet is removed from a building, it’s supposed to be taken to authorized collection facilities overseen by CARE. From there, the carpets are sorted and shipped to a recycling facility, where they can be recycled into other products, generally building products, such as insulation.
- Where Does The Money Go? According to CARE’s 2023 annual report, it spent $30.4 collected from California carpet buyers in the following fashion:
- $23.2 million in subsidies:
- $10 million to seven Tier 1 Processors that essentially take apart collected carpets so the materials can be used to make other products;
- $9.8 million to ten Tier 2 Manufacturers that take the recycled output generated by Tier 1 Processors and turn it into other projects; and
- $3.4 million to 10 carpet collectors and sorters that provide the materials to Tier 1 Processors.
- $4 million in expenses, which includes collecting carpet ($2.1 million), education & outreach ($1.1 million) and grants ($601,000); and
- $3.1 million in administrative costs, which includes $2.4 million to CARE and $688,000 in fees paid to CalRecycle.
CARE’s new assessments fees – which were increased by 37%-54% on
February 1, 2025 – are:
- Broadloom carpet: $1.05/square yard (sy) (up from $0.70/sy) for carpet with less than 10% recycled content, and $0.96/sy (up from $0.62/sy) for carpet with 10% or more recycled content.
- Carpet tile: $1.49/sy (up from $0.99) for carpet with less than 10% recycled content, and $1.40/sy (up from $0.91) for carpet with 10% or more recycled content.
- Carpet Stewardship vs. Carpet Extended Producer Responsibility (EPR). Under a traditional EPR program – regardless of the product involved – the manufacturers of the product pay a fee to a third-party entity (a for-profit, a non-profit or a governmental entity) which is then responsible for managing the collection and/or recycling of the product in question. In an EPR program, the fee paid by the manufacturer is an “internal fee,” meaning the buyers of the product never see it as a separate line item on their invoice or receipt. This fee may be partially or fully rolled into the total cost paid by the end customer, just as labor, electricity, tariff, and other internal and overhead costs are included in the final price tag paid by the customer.
California’s carpet program operates with an external fee, making it technically a ‘carpet stewardship’ program, not an EPR. In the carpet stewardship program, the fee is passed along down the supply chain and the end customer sees the carpet stewardship fee as a separate line item on their receipt when they buy carpet. This is virtually identical to how California’s tire recycling program works. In the tire program, everyone who buys a new tire also pays a separate $1.75 fee – which shows up as a separate line item on their bill – that the retailer collects and passes on to the state. That tire money eventually winds up in the hands of CalRecycle, which awards grants to entities to manage waste tires, regulate waste tire facilities and haulers, expand the uses and recyclability of used tires, and much more.
- Is Carpet Being Recycled? CARE’s 2024 report on recycling found that:
- California’s carpet recycling rate has been rising since 2015 (when it was 10.1%), hitting 35% in 2023 (according to a CARE report in March 2025, the unofficial California recycling rate for 2024 was 38.5%);
- Of the carpet collected, 71% of it was recycled into other products;
- There were 110 different products using California’s recycled carpet;
- The automotive and construction industries used 66 million pounds of recycled California carpet; and
- There are 137 public drop-off sites for carpet spread across the state’s 58 counties, along with 200 private sites.
It is also worth considering what recovered carpets are recycled into. Carpets can be downcycled into various different products, depending on their composition (carpets can be made from natural or synthetic fibers, and synthetic fibers are often combined in different components). For example, when nylon-based carpets are recycled, they are broken down into three main components: polypropylene, Nylon 6 and calcium carbonate. Polypropylene, which is mainly used for carpet backing, can be reused in injection molding production and the calcium carbonate used to stabilize the carpet is used for road construction and concrete. The Nylon 6 recovered from carpets can – along with other waste, like reclaimed fishing nets or textile scraps – be used to create more nylon, which can be used for fiber in carpet, furniture, clothing and more. Carpets can be recycled into:
- Building materials & construction materials, such as:
- Miura Board: a durable, 100% recycled alternative to wood and plastic used for outdoor fixtures like boardwalks and ramps
- Concrete, where recycled carpet fibers are used to strengthen concrete and prevent cracking
- Tile backer board
- Roofing shingles
- Construction sheeting
- Insulation materials
- Automotive and transportation-related materials, such as:
- Automotive plastic components
- Carpet material incorporated into truck parts
- Railroad ties
- Cargo vehicle flooring
- Composites for sound barrier walls in transportation infrastructure
- Other products, such as:
- Door & floor mats
- Wheel stops
- Park benches and picnic tables
- Plastic-wood composites
- Erosion control products
- Stepping stones and decorative concrete blocks
- Porous walkway systems
- Rubber garden edging
- Industrial absorbents
Recent changes to the carpet program through AB 863 (Aguiar-Curry, Chapter 675, Statutes of 2024) require that new carpet contain 5% recycled carpet, establishing a closed-loop recycling requirement beginning in 2028.
Comments
- Purpose of Bill. According to the author, “Since July 2011, California consumers have paid a carpet stewardship assessment fee when purchasing carpet sold in California. This fee funds a statewide carpet recycling program known as the Carpet America Recovery Effort (CARE), which is a Producer Responsibility Organization (PRO) designed and implemented by carpet manufacturers with CalRecycle oversight. However, CARE has repeatedly failed to administer the program effectively and equitably and has required oversight and repeated enforcement by CalRecycle. Recyclers and collectors have left the state or gone out of business due to a lack of feedstock, while carpet is still being landfilled.
While AB 863 (Aguiar-Curry, 2024) strengthened accountability requirements for the statewide consumer-funded carpet recycling program, CARE continues to lack a representative model of governance, and perfectly recyclable carpet is currently being landfilled due to a lack of convenient collection sites and proper sorting. This bill improves accountability and representation within CARE’s governance structure by adding additional nonvoting members across different manufacturers to the governing board. To improve recyclability, this bill increases collection site density, heightens product composition and backstamping standards, and ensures effective implementation in AB 863 to encourage more sustainable production practices.” - Starting Over…again. In 2024, the state’s original carpet stewardship program was overhauled by AB 863 (Aguiar-Curry, Chapter 675, Statutes of 2024), but for reasons explained below, the changes will likely not take effect until January 1, 2027, at the earliest. AB 863:
- Moved the program under a single PRO and eliminated use of the term CSO, or carpet stewardship organization;
- Set explicit goals that must be accomplished in the PRP;
- Precluded plastic from beverage containers in the state’s bottle bill recycling program from being used to meet the requirement to use post-consumer waste in carpets;
- Increased reporting requirements and enforcement;
- Required 8% of all assessments collected be spent on union apprenticeship programs;
- Increased penalties for program violations from up to $5,000 per day to up to $10,000 per day for most violations, and from up to $10,000 per day to up to $25,000 per day for knowing, intentional, and negligent violations; and
- Established a three-strikes-and-you’re-out rule, meaning if the PRO (or a manufacturer) violates the provisions of the program three times, it can no longer operate the program.
Overhauling the 2010 carpet stewardship law was intended to create a fresh start for a program that has somewhat of a checkered history. However, it’s important to note the changes mandated by AB 863 – even though the bill became law on January 1, 2025 – will not take effect until CalRecycle:
a) Adopts new regulations, which AB 863 required CalRecycle to complete by December 31, 2026;
b) Approves a new PRP submitted by the PRO;
c) Notifies the PRO 90 days before notifying the Legislature that it is prepared to implement the new requirements of AB 863; and
d) Submits to the relevant committees of the Legislature a letter indicating the conditions in a), b), and c) above have been met, that CalRecycle is prepared to implement the new law, and that the PRO is prepared to implement the new PRP.
In 2025, AB 80 (Aguiar Curry) was introduced to make further significant changes to the carpet program. Specifically, AB 80 made many of the same changes proposed now in AB 904, including:
- Expanding the definition of “approved collection site” to include a carpet recycling center, municipal facility that accepts carpet, and a retailer that sells a covered product.
- Striking the definition of “circular economy environmental nongovernmental organization” and instead defines “environmental nongovernmental organization” as a nonprofit organization established to address environmental issues related to waste and recycling.
- Clarifying that CalRecycle regulations to implement the program shall have an effective date no later than December 31, 2026.
- Rather than requiring producers to publish environmental product declarations for each covered product, requires producers to publish the components that constitute more than one percent of the total composition of the product by weight and any component that is listed by the Department of Toxic Substances Control as a candidate chemical, pursuant to Section 69502.2 of Title 22 of the California Code of Regulations.
- Requiring producers to explain how they will use standardized stamping or some other means to provide a mark on the back of a covered product that provides the name of the manufacturer, the date of manufacture, and a listing of face fibers and backing materials contained in the product.
- Exempts the following from the requirement that, on and after January 1, 2029, any person who removed a covered product from a residence of business transport the products to an approved collection site:
AB 80 was held on the Senate Appropriations Suspense file. AB 904 picks up where AB 80 left off, including most of the changes proposed in AB 80. However, AB 904 differs from AB 80 in some ways:
- Allocations for grants to apprenticeship programs. Instead of dedicating 8% of assessments for grants to apprenticeship program, AB 904 allocates $1 million annually for these grants. It also establishes reporting requirements, where the grant awardees must report on how the money is being spent and how it is advancing the goals of the carpet stewardship program.
- Governing board member allocation. Changes the composition of the voting board, and specifically reduces the apprenticeship representation from two members (one northern and one southern) to just one apprenticeship representative, with the position changing every two years between a northern and southern representative.
- External vs. internal fees. Reverts to existing law’s external fee, when an internal fee had been contemplated under AB 80.
- Prescribing collection site criteria. Establishes collection requirements, to be met through the stewardship program, for carpets. This includes requirements that at least a quarter of collection facilities be open on Saturdays in areas with populations of 25,000 people or more.
- Other. Makes technical changes to the definition of non-profit (a PRO must be a nonprofit) and ‘carpet’, strikes provision that CalRecycle’s adjustment of performance standards be subject to the APA, and clarifies that violations and fines apply to knowing and intentional, not negligent, violations of the program, among others.
Some of these changes add transparency (reporting on allocation of funding to apprenticeship programs; keeping the fee external), and others address nuts-and-bolts issues with the program that were not contemplated in AB 80 (adding concrete requirements to collection site requirements, changing the exact composition of the governing board).
Altogether, AB 904 makes changes to a program that was heftily amended in 2024: those 2024 changes have not yet been implemented, making it unclear how this will change existing law in practice.
One change that seems likely is that requiring CalRecycle to go through an APA process to adjust the performance standards of the program will make that process more transparent, but also more time intensive and costly. The author and committee may wish to amend this portion to revert to existing law in AB 863, which waives the requirement that CalRecycle go through the APA process in adjusting performance standards for these reasons.
- Pushing paper. In 2021, prior to AB 863 and updates to the carpet stewardship program, the carpet stewardship program PRO reported that they budgeted $100,000 per year for incentives and grants to support state-approved apprenticeship programs for training apprentice and journey-level carpet installers in proper carpet recycling practices. AB 904, like AB 80 and existing law through AB 863, provides significantly more funding for apprenticeship programs ($1 million per year, which is a change from the 8% allocated in existing law).
Unlike existing law and attempts to update the carpet stewardship program, AB 904 requires that apprenticeship programs provide detailed reports on how they are spending that grant funding. This will help answer the question “do apprenticeship programs need this funding, and is a million dollars a year necessary to advance the goals of the carpet stewardship program?”
It is less clear what can be done with this information. Currently, while AB 904 requires reporting on how grants are expended, it does not specify that these reports can be used to inform subsequent grants, meaning that if the gains to the program were miniscule or a grantee spent funds inefficiently, that information would be known, but not considered when allocating them another grant.
In addition, neither CalRecycle nor the PRO has the ability to change the annual $1 million allocation to apprenticeship program grants. If the reports show that $1 million is inadequate to support the needs of the program and more should be allocated (as in existing law through AB 863), or that most of that $1 million is far more than is needed for the program, nothing can be done (without further legislation).
In short, while the reports add transparency, in the current structure of the bill, they information they contain cannot be used to improve the program.
As the bill continues through the legislative process, the author and committee may wish to specify that the information in the reports should be considered when allocating subsequent grants to apprenticeship programs, and give CalRecycle the authority to adjust the $1 million allocation to apprenticeship programs at the time the PRO develops a new stewardship plan (every 4 years).
- Committee amendments. Staff recommends the committee adopt the bolded amendments contained in comment 2.
Related/Prior Legislation
AB 80 (Aguiar-Curry, 2025), would have made substantive changes to the carpet stewardship program. This bill was held in the Senate Appropriations Committee.
AB 863 (Aguiar-Curry, Chapter 675, Statutes of 2024) replaced the existing state extended producer responsibility (EPR) program for carpet and replaces it with an expanded EPR program under one producer responsibility organization (PRO), with numerous additional requirements and enforcement mechanisms against noncompliance from the PRO.
SOURCE:
California Product Stewardship Council
SUPPORT:
Carpet & Rug Institute
OPPOSITION:
None received
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SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB 904 |
THIRD READING
Bill No: AB 904
Author: Aguiar-Curry (D)
Amended: 9/3/25 in Senate
Vote: 21
SENATE HUMAN SERVICES COMMITTEE: 4-0, 6/16/25
AYES: Arreguín, Becker, Limón, Wahab
NO VOTE RECORDED: Ochoa Bogh
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
ASSEMBLY FLOOR: 62-4, 5/19/25 - See last page for vote
SUBJECT: Childcare services: workday
SOURCE: Author
DIGEST:
This bill amends the definition of “workday” to include time a parent requires child care in order to search for a job, care for oneself during pregnancy-related leave from work, or care for a family member during a period of paid family leave. This bill codifies the definition of “parental incapacity” and requires a parent to provide a self-attestation at the time of eligibility certification or recertification if they are on family and medical leave from employment.
Senate Floor Amendments of 9/3/25 revise the meaning of and references to parental incapacity for subsidized child care eligibility.
ANALYSIS:
Existing law:
- Defines “childcare and development services” to mean services designed to meet a wide variety of children and families’ needs while parents and guardians are working, in training, seeking employment, incapacitated, or in need of respite. (Welfare and Institutions Code (WIC) 10213.5(j))
- Defines “workday” as meaning the time that the parent requires temporary care for a child for any of the following reasons: to undertake training in preparation for a job; to undertake or retain a job; or to undertake other activities that are essential to maintaining or improving the social and economic function of the family, are beneficial to the community, or are required because of health problems in the family. (WIC 10213.5(ah))
- Provides that, in order to be eligible for federal and state subsidized child development services, families shall meet at least one requirement in each of the following areas:
- A family is either:
- A current aid recipient,
- Income eligible,
- Homeless,
- One whose children are recipients of protective services, or whose children have been identified as being or at risk of being abused, neglected, or exploited, or
- One who has a member of its household who is certified to receive benefits from specified means-tested government programs, as determined by the California Department of Social Services (CDSS).
- A family needs the child care services:
- Because the child is identified as:
- A recipient of protective services,
- Being neglected, abused, or exploited, or at risk of neglect, abuse, or exploitation, or
- Being homeless; or
- Because the parents are:
- Engaged in vocational training leading directly to a recognized trade, paraprofession, or profession,
- Engaged in an educational program for English language learners to attain a high school diploma or general educational development certificate,
- Employed or seeking employment,
- Seeking permanent housing for family stability, or
- Incapacitated. (WIC 10271(a))
- Because the child is identified as:
- A family is either:
- Establishes priority for federal and state subsidized child development services as follows:
- First priority shall be given to neglected or abused children who are recipients of child protective services, or children who are at risk of being neglected or abused, as specified.
- Second priority shall be given equally to eligible families, regardless of the number of parents in the home, who are income eligible. Families with the lowest gross monthly income in relation to family size, as determined by a schedule adopted by CDSS, shall be admitted first. If two or more families are in the same priority in relation to income, prioritization shall be as follows: a family with a child with exceptional needs shall be admitted first, then a family in which the primary home language is a language other than English, then the family that has been on the waiting list for the longest time. (WIC 10271(b))
- Requires a family, except as provided, upon establishing initial eligibility or ongoing eligibility for child care services, to be considered to meet all eligibility and need requirements for those services for not less than 24 months, to receive those services for not less than 24 months before having their eligibility or need recertified, and to not be required to report changes to income or other changes for at least 24 months. (WIC 10271(h)(1))
- Requires a family that establishes initial eligibility or ongoing eligibility on the basis of income to report increases in income that exceed the threshold for ongoing income eligibility, which is at or below 85% of the state median income, adjusted for family size, and requires the family’s ongoing eligibility for services to be recertified at that time. (WIC 10271(h)(3))
- Defines “parental incapacity” as the temporary or permanent inability of the child’s parent(s) to provide care and supervision of the child(ren) for any part of the day due to a physical and/or mental health condition. (5 California Code of Regulations (CCR) 18078(r))
- Specifies that, if the basis of need as stated on the application for services is parental incapacity, the following shall apply:
- The certified schedule for early learning and care services shall not exceed 50 hours per week; and,
- The parent’s period of eligibility for early learning and care services shall be for no less than 12 months and the parent shall receive services for not less than 12 months before having eligibility and need recertified. (5 CCR 18088(a))
- Requires documentation of parental incapacity to include a release signed by the incapacitated parent authorizing a legally qualified health professional to disclose information necessary to establish that the parent meets the definition of parental incapacity and needs services. (5 CCR 18088(b))
- Requires the documentation of incapacitation provided by the legally qualified health professional to include: a statement that the parent is incapacitated and incapable of providing care or supervision of the child for part of the day; the days and hours per week that services are recommended to accommodate the incapacitation; the name, business address, telephone number, professional license number, and signature of the legally qualified health professional who is rendering the opinion of incapacitation; and, if applicable, the name of the health organization with which the professional is associated. (5 CCR 18088(c))
- Authorizes the contractor to contact the legally qualified health professional for verification or clarification. (5 CCR 18088(d))
- Requires the contractor to determine the days and hours of the certified schedule based on the parent’s requested days and hours and the recommendation of the health professional. (5 CCR 18088(e))
This bill:
- States the intent of the Legislature to improve access to child care to support families with young children in finding and maintaining employment during a period of transition by ensuring uninterrupted access to child care.
- Amends the definition of “workday” to additionally include time that a parent requires temporary care for a child for any of the following reasons:
- To search for a job.
- To provide care for oneself during a pregnancy-related leave from work.
- To provide care for a family member during a period of family leave.
- Defines “parental incapacity” as the temporary or permanent inability of a child’s parent or parents to provide care and supervision of the child for any part of the day. Specifies this may be due to a physical or mental health condition, including a physical or health condition related to pregnancy.
- Specifies, for purposes of eligibility for federal and state subsidized child development services, a family that needs child care services because the parents are employed or seeking employment includes time while on family and medical leave from employment.
- Requires a parent, if they are on family and medical leave from employment at the time of eligibility certification or recertification, consistent with state or federal family or medical leave laws, to provide a self attestation, under penalty of perjury, that they are on leave. Requires the contractor to determine their certified schedule based on the employment verification.
- Specifies no reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution.
Background
Child Care Eligibility. Certain eligibility and prioritization rules apply to subsidized child care in California. Families are eligible for non-CalWORKs subsidized child care if they meet at least one requirement in each of two areas: eligibility and need. First, they must meet one of the eligibility criteria, which include currently receiving aid, being income eligible, experiencing homelessness, or having children who are recipients of protective services or who have been identified as being, or at risk of being, abused, neglected, or exploited. Second, the family must meet one of the “need” requirements, which are either that the child has been identified as a recipient of protective services or being, or at risk of being, abused, neglected or exploited; or the parents need to be employed or seeking employment, engaged in vocational training, seeking permanent housing for family stability, or are incapacitated.
Definition of Workday. With regard to subsidized child care administration, state law defines “workday” as the time that a parent requires temporary care for a child for any of the following reasons: to undertake training in preparation for a job, to undertake or retain a job, or to undertake other activities that are essential to maintaining or improving the family’s social and economic function, beneficial to the community, or required because of health problems in the family. When determining a parent or family’s allowable hours for child care, an Alternative Payment Program agency must verify the parent’s work or school schedule, then add any time needed to commute to work or school. Under current law, taking leave from work, including pregnancy and family leave, does not qualify a parent to receive subsidized child care. This means that if a parent’s eligibility recertification month lands during the time they are on leave from work they would not have an eligible need for child care. Parents on pregnancy leave can prove their need for child care if they follow steps outlined in regulations to prove parental incapacity, described below. Parents on family leave from work would lose their eligibility, as they would no longer be deemed as having a need for child care.
Parental Incapacity. Title 5 licensing regulations define “parental incapacity” as the temporary or permanent inability of the child’s parent to provide care and supervision of the child for any part of the day due to a physical and/or mental health condition. Regulations additionally describe the required documentation to prove parental incapacitation and determine the certified schedule for care. This process includes obtaining documentation of incapacitation provided by a qualified health professional and signed authorization release allowing the health professional to disclose relevant information. According to Child Action, Inc., an Alternative Payment Program agency, this often results in parents needing to make time to visit their doctor in person to get the incapacity paperwork completed. Additionally, according to Child Action, Inc., Kaiser Permanente, one of the region’s largest healthcare providers, no longer allows doctors to fill out parental incapacity forms. Instead, Kaiser redirects parents to a business services office and uses its own form, creating more administrative hurdles for families.
Benefits of Paid Leave. According to Prenatal-to-3 Policy Impact Center, studies have found that six weeks of paid leave immediately after the birth or adoption of a child leads to improvements in children’s physical health and safety, both in infancy and longer term; increases timely vaccinations; boosts maternal mental health; and increases parent-child activities together, including reading and meals. Additionally, according to a study by the Office of the Assistant Secretary for Planning and Evaluation (ASPE), paid family leave around the time of childbirth can support lower income mothers’ return to work. ASPE found that paid family leave assisted mothers in making child care arrangements by providing time for them to find care and address logistics, and to let babies acclimate to care.
Related/Prior Legislation
SB 792 (Arreguín) of the current legislative session would make a series of changes to child care programs, including: aligning the income cap for disenrollment from subsidized child care programs with the income eligibility cap at 85% of the state median income, extending the family fee exemption for a family with children who are recipients of child protective services, and amending the definition of “attendance.” The bill is pending in the Senate Human Services Committee.
AB 1528 (Committee on Human Services) of the current legislative session would, among other things, extend family fee exemptions from 12 to 24 months for children referred for or at risk of receiving child protective services and amend the definition of “attendance.” The bill is pending in the Senate Human Services Committee.
Comments
This bill seeks to make retaining eligibility for subsidized child care easier for parents by recognizing pregnancy and family leave as an eligible need. Simply being on leave from work would not make someone eligible for child care; the parent or family would still need to be income eligible to receive a child care subsidy. This bill would allow families on leave from work to maintain their existing child care arrangement.
This bill would additionally recognize that care work is real work that often requires one’s whole focus. Taking leave from work to care for oneself during or after pregnancy or to care for a family member can be a vulnerable time. Additionally, it may not be optimal for caretakers to multitask care for a family member and young children. This bill would ensure that families do not have to choose between priorities and would expand the capacity of caretakers to provide for the wellbeing of the whole family.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
SUPPORT: (Verified 9/3/25)
Child Action, Inc.
Child Care Resource Center
Children Now
Grace Institute - End Child Poverty in CA
Silicon Valley Community Foundation
OPPOSITION: (Verified 9/3/25)
None received
ASSEMBLY FLOOR: 62-4, 5/19/25
AYES: Addis, Aguiar-Curry, Ahrens, Alanis, Alvarez, Arambula, Ávila Farías, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Caloza, Carrillo, Connolly, Davies, Elhawary, Fong, Gabriel, Garcia, Gipson, Mark González, Haney, Harabedian, Hart, Hoover, Irwin, Jackson, Krell, Lee, Lowenthal, McKinnor, Muratsuchi, Nguyen, Ortega, Pacheco, Patel, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Ransom, Celeste Rodriguez, Michelle Rodriguez, Rogers, Blanca Rubio, Schiavo, Schultz, Sharp-Collins, Solache, Soria, Stefani, Valencia, Wallis, Ward, Wicks, Wilson, Zbur, Rivas
NOES: DeMaio, Lackey, Sanchez, Tangipa
NO VOTE RECORDED: Castillo, Chen, Dixon, Ellis, Flora, Gallagher, Jeff Gonzalez, Hadwick, Kalra, Macedo, Papan, Patterson, Ta
Prepared by: Diana Dominguez / HUMAN S. / (916) 651-1524
9/6/25 10:30:15
**** END ****
SENATE COMMITTEE ON HUMAN SERVICES
Senator Arreguín, Chair
2025 - 2026 Regular
Bill No: | AB 904 | ||
Author: | Aguiar-Curry | ||
Version: | April 22, 2025 | Hearing Date: | June 16, 2025 |
Urgency: | No | Fiscal: | Yes |
Consultant: | Diana Dominguez | ||
Subject: Childcare services: workday
SUMMARY
This bill would amend the definition of “workday” to include time a parent requires child care in order to search for a job, care for oneself during pregnancy leave from work, or care for a family member during family leave from work. This bill would codify the definition of “parental incapacity” and specify that a medical incapacity form shall not be required for a parent on leave to meet subsidized child care eligibility requirements.
ABSTRACT
Existing Law:
- Establishes the Child Care and Development Services Act to provide child care and development services as part of a coordinated, comprehensive, and cost-effective system serving children from birth to 13 years of age and their parents, including a full range of supervision, health, and support services through full- and part-time programs (WIC 10207 et seq.)
- Defines “childcare and development services” to mean services designed to meet a wide variety of children and families’ needs while parents and guardians are working, in training, seeking employment, incapacitated, or in need of respite. These services may include direct care and supervision, instructional activities, resource and referral programs, and alternative payment arrangements. (WIC 10213.5(j))
- Defines “workday” as meaning the time that the parent requires temporary care for a child for any of the following reasons:
- To undertake training in preparation for a job.
- To undertake or retain a job.
- To undertake other activities that are essential to maintaining or improving the social and economic function of the family, are beneficial to the community, or are required because of health problems in the family. (WIC 10213.5(ah))
- Provides that, in order to be eligible for federal and state subsidized child development services, families shall meet at least one requirement in each of the following areas:
- A family is either:
- A current aid recipient,
- Income eligible,
- Homeless,
- One whose children are recipients of protective services, or whose children have been identified as being or at risk of being abused, neglected, or exploited, or
- One who has a member of its household who is certified to receive benefits from specified means-tested government programs, as determined by CDSS.
- A family needs the child care services:
- Because the child is identified as:
- A recipient of protective services,
- Being neglected, abused, or exploited, or at risk of neglect, abuse, or exploitation, or
- Being homeless; or
- Because the parents are:
- Engaged in vocational training leading directly to a recognized trade, paraprofession, or profession,
- Engaged in an educational program for English language learners to attain a high school diploma or general educational development certificate,
- Employed or seeking employment,
- Seeking permanent housing for family stability, or
- Incapacitated. (WIC 10271(a))
- Because the child is identified as:
- A family is either:
- Establishes priority for federal and state subsidized child development services as follows:
- First priority shall be given to neglected or abused children who are recipients of child protective services, or children who are at risk of being neglected or abused, as specified.
- Second priority shall be given equally to eligible families, regardless of the number of parents in the home, who are income eligible. Families with the lowest gross monthly income in relation to family size, as determined by a schedule adopted by CDSS, shall be admitted first. If two or more families are in the same priority in relation to income, prioritization shall be as follows: a family with a child with exceptional needs shall be admitted first, then a family in which the primary home language is a language other than English, then the family that has been on the waiting list for the longest time. (WIC 10271(b))
- Requires a family, except as provided, upon establishing initial eligibility or ongoing eligibility for child care services, to be considered to meet all eligibility and need requirements for those services for not less than 24 months, to receive those services for not less than 24 months before having their eligibility or need recertified, and to not be required to report changes to income or other changes for at least 24 months. (WIC 10271(h)(1))
- Requires a family that establishes initial eligibility or ongoing eligibility on the basis of income to report increases in income that exceed the threshold for ongoing income eligibility, which is at or below 85% of the state median income, adjusted for family size, and requires the family’s ongoing eligibility for services to be recertified at that time. (WIC 10271(h)(3))
- Defines “parental incapacity” as the temporary or permanent inability of the child’s parent(s) to provide care and supervision of the child(ren) for any part of the day due to a physical and/or mental health condition. (5 CCR 18078(r))
- Specifies that, if the basis of need as stated on the application for services is parental incapacity, the following shall apply:
- The certified schedule for early learning and care services shall not exceed 50 hours per week; and,
- The parent’s period of eligibility for early learning and care services shall be for no less than 12 months and the parent shall receive services for not less than 12 months before having eligibility and need recertified. (5 CCR 18088(a))
- Requires documentation of parental incapacity to include a release signed by the incapacitated parent authorizing a legally qualified health professional to disclose information necessary to establish that the parent meets the definition of parental incapacity, pursuant to (6) above, and needs services. (5 CCR 18088(b))
- Requires the documentation of incapacitation provided by the legally qualified health professional to include:
- A statement that the parent is incapacitated and that the parent is incapable of providing care or supervision of the child for part of the day;
- The days and hours per week that services are recommended to accommodate the incapacitation, taking into account the age of the child and the child’s care needs. This may include time for the parent’s regularly scheduled medical or mental health appointments;
- The name, business address, telephone number, professional license number, and signature of the legally qualified health professional who is rendering the opinion of incapacitation; and,
- If applicable, the name of the health organization with which the professional is associated. (5 CCR 18088(c))
- Authorizes the contractor to contact the legally qualified health professional for verification or clarification. (5 CCR 18088(d))
- Requires the contractor to determine the days and hours of the certified schedule based on the parent’s requested days and hours and the recommendation of the health professional. (5 CCR 18088(e))
This Bill:
- States the intent of the Legislature to improve access to child care to support families with young children in finding and maintaining employment during a period of transition by ensuring uninterrupted access to child care.
- Amends the definition of “workday” to additionally include time that a parent requires temporary care for a child for any of the following reasons:
- To search for a job.
- To provide care for oneself during a pregnancy-related leave from work.
- To provide care for a family member during a period of family leave.
- Defines “parental incapacity” as meaning the temporary or permanent inability of a child’s parent or parents to provide care and supervision of the child for any part of the day. Specifies this may be due to a physical or mental health condition, or may occur during periods of leave, including, but not limited to, pregnancy-related leave or paid family leave.
- Adds a family that needs child care services because the parents are on pregnancy or family leave to the list of eligibility criteria for a family to be eligible for federal and state subsidized child development services.
- Specifies a medical incapacity form shall not be required for a parent on leave to receive federal and state subsidized child development services. Specifies a parent may sign an attestation stating they are on leave.
- Specifies no reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution.
FISCAL IMPACT
According to the Assembly Appropriations Committee, “CDSS estimates minor and absorbable costs. The department indicates this bill is clarifying of existing law.”
BACKGROUND AND DISCUSSION
Purpose of the Bill:
According to the author, “California's child care system is failing many working families by limiting access to care based on unclear eligibility requirements. Parents utilizing family leave or searching for a job often find themselves without the child care support they need. This forces them to delay employment, risk their health, or make impossible choices about caregiving and financial stability. AB 904 clarifies current law to ensure that families can access reliable child care during these critical transitions, such as pregnancy leave, paid family leave, and job searching. By updating our policies, we can better support working parents and promote economic equity across the state. It also reduces bureaucratic barriers, making it easier for parents to verify their status and maintain their child care during these important times. By improving eligibility and reducing paperwork, AB 904 will reduce disruptions for working families and provide stability for our children.”
Subsidized Child Care
California’s subsidized child care system is designed to provide assistance for income eligible parents and guardians who are working, in training, seeking employment, incapacitated, or in need of respite. This care is available through a number of programs. The state’s largest subsidized child care programs are: General Child Care, which includes contracted centers and family child care homes; California State Preschool Program, which provides developmentally, culturally, and linguistically appropriate curriculum to eligible three- and four-year-olds; Alternative Payment Programs, which provide vouchers that can be used to obtain child care in a center, family child care home, or from a license-exempt provider; and CalWORKs Child Care, provided in centers, family child care homes, or license-exempt settings and paid for using vouchers.
Child Care Eligibility
Certain eligibility and prioritization rules apply to subsidized child care in California. Families are eligible for non-CalWORKs subsidized child care if they meet at least one requirement in each of two areas: eligibility and need. First, they must meet one of the eligibility criteria, which include currently receiving aid, being income eligible, experiencing homelessness, or having children who are recipients of protective services or who have been identified as being, or at risk of being, abused, neglected, or exploited. Second, the family must meet one of the “need” requirements, which are either that the child has been identified as a recipient of protective services or being, or at risk of being, abused, neglected or exploited; or the parents need to be employed or seeking employment, engaged in vocational training, seeking permanent housing for family stability, or are incapacitated.
Definition of “Workday”
With regard to subsidized child care administration, state law defines “workday” as the time that a parent requires temporary care for a child for any of the following reasons: to undertake training in preparation for a job, to undertake or retain a job, or to undertake other activities that are essential to maintaining or improving the family’s social and economic function, beneficial to the community, or required because of health problems in the family. When determining a parent or family’s allowable hours for child care, an Alternative Payment Program agency must verify the parent’s work or school schedule, then add any time needed to commute to work or school. Under current law, taking leave from work, including pregnancy and family leave, does not qualify a parent to receive subsidized child care. This means that if a parent’s eligibility recertification month lands during the time they are on leave from work they would not have an eligible need for child care. Parents on pregnancy leave can prove their need for child care if they follow steps outlined in regulations to prove parental incapacity, described below. Parents on family leave from work would lose their eligibility, as they would no longer be deemed as having a need for child care. This bill would add searching for a job, providing care for oneself during a pregnancy-related leave from work, and providing care for a family member during a period of family leave to the definition of “workday”.
Parental Incapacity
Title 5 licensing regulations define “parental incapacity” as the temporary or permanent inability of the child’s parent to provide care and supervision of the child for any part of the day due to a physical and/or mental health condition. Regulations additionally describe the required documentation to prove parental incapacitation and determine the certified schedule for care. This process includes obtaining documentation of incapacitation provided by a qualified health professional and signed authorization release allowing the health professional to disclose relevant information. According to Child Action, Inc., an Alternative Payment Program agency, this often results in parents needing to make time to visit their doctor in person to get the incapacity paperwork completed. Additionally, according to Child Action, Inc., Kaiser Permanente, one of the region’s largest healthcare providers, no longer allows doctors to fill out parental incapacity forms. Instead, Kaiser redirects parents to a business services office and uses its own form, creating more administrative hurdles for families.
This bill would add the definition of “parental incapacity” currently in regulations to statute, and add pregnancy-related leave or paid family leave to the definition. This would expand eligibility for child care under the incapacity label to parents who may be caring for themselves or others and are thus temporarily unable to provide care and supervision of the child for a part of the day.
This bill would additionally add pregnancy or family leave as a qualifying need to be eligible for child care. This means that if a parent is on pregnancy or family leave and meet one of the eligibility criteria, described above, they would be eligible for subsidized child care. This bill would also specify that a medical incapacity form shall not be required, and instead allow a parent to sign an attestation stating they are on leave. Self-certification of income is allowed under certain circumstances for purposes of child care eligibility documentation (5 CCR 18087).
Benefits of Paid Leave
According to Prenatal-to-3 Policy Impact Center[1], studies have found that six weeks of paid leave immediately after the birth or adoption of a child leads to improvements in children’s physical health and safety, both in infancy and longer term; increases timely vaccinations; boosts maternal mental health; and increases parent-child activities together, including reading and meals. Additionally, according to a study[2] by the Office of the Assistant Secretary for Planning and Evaluation (ASPE), paid family leave around the time of childbirth can support lower income mothers’ return to work. ASPE found that paid family leave assisted mothers in making child care arrangements by providing time for them to find care and address logistics, and to let babies acclimate to care.
Related/Prior Legislation:
AB 1528 (Committee on Human Services) would, among other things, extend family fee exemptions from 12 to 24 months for children referred for or at risk of receiving child protective services. AB 1528 has been referred to the Senate Human Services Committee.
SB 792 (Arreguín, 2025) would align the income cap for disenrollment from subsidized child care programs with the income eligibility cap at 85% of the state median income. SB 792 has been referred to the Assembly Human Services Committee.
SB 778 (Limón, 2025) would expand eligibility for migrant child care and development programs to include a family with an individual who has earned at least 40% of their total gross income from employment in fishing, agriculture, or agriculturally related work. SB 778 would also create a statutory framework for how income is certified for these programs. SB 778 has been referred to the Assembly Human Services Committee.
AB 1808 (Stephanie Nguyen, Chapter 356, Statutes of 2024) aligned CalWORKs child care eligibility with other child care programs by considering families receiving CalWORKs child care as meeting all eligibility and need requirements for not less than 24 months, and allowing families to not be required to report changes to income for at least 24 months.
SB 1047 (Limón, Chapter 923, Statutes of 2022) made a family with a member of its household who is certified to receive Medi-Cal, food assistance programs, or any of means-tested government program, as specified, eligible for federal and state subsidized child development services, among other changes.
AB 321 (Valladares, Chapter 903, Statutes of 2022) requires that priority for child care and development programs be given to a child from a family in which the primary home language is a language other than English if there are no families with a child with exceptional needs.
COMMENTS
This bill seeks to make retaining eligibility for subsidized child care easier for parents by recognizing pregnancy and family leave as an eligible need. Simply being on leave from work would not make someone eligible for child care; the parent or family would still need to be income eligible to receive a child care subsidy. This bill would allow families on leave from work to maintain their existing child care arrangement.
This bill would additionally recognize that care work is real work that often requires one’s whole focus. Taking leave from work to care for oneself during or after pregnancy or to care for a family member can be a vulnerable time. Additionally, it may not be optimal for caretakers to multitask care for a family member and young children. This bill would ensure that families do not have to choose between priorities and would expand the capacity of caretakers to provide for the wellbeing of the whole family.
PRIOR VOTES
Assembly Floor: | 62 - 4 |
Assembly Appropriations Committee: | 12 - 2 |
Assembly Human Services Committee: | 5 - 1 |
POSITIONS
Support:
Child Action, INC.
Child Care Resource Center
Oppose:
None received
-- END --
ASSEMBLY THIRD READING
ATR Bill Id:AB 904
Author:(Aguiar-Curry)
As Amended Ver:April 22, 2025
Majority vote
SUMMARY
Expands the definition of "workday" for the purposes of accessing childcare as the time a parent needs temporary care for a child, to include searching for a job and taking pregnancy or paid family leave. Adds to the needs assessment that a family is required to meet to be eligible for subsidized childcare services to include parents being on pregnancy or family leave. Clarifies that a medical incapacity form is not required for a parent on leave to receive services and authorizes a parent to sign an attestation stating they are on leave.
Major Provisions
- Expands the definition of "workday" for the purposes of accessing childcare as the time a parent needs temporary care for a child to include searching for a job, to provide care for oneself during a pregnancy-related leave from work, and to provide care for a family member during a period of paid family leave.
- Defines "parental incapacity" as the temporary or permanent inability of a child's parent or parents to provide care and supervision of the child for any part of the day. This may be due to a physical or mental health condition, or may occur during periods of leave, including, but not limited to, pregnancy-related leave or paid family leave.
- Expands the needs assessment that a family is required to meet to be eligible for subsidized childcare services to include parents on pregnancy or family leave.
- Clarifies that a medical incapacity form is not required for a parent on leave to receive services and that a parent may sign an attestation stating they are on leave.
COMMENTS
Background: Workday. California statute defines "workday" as the time a parent requires temporary care for a child to engage in employment, training, or other activities that support family stability. However, the California Department of Social Services (CDSS) does not use this definition as the basis of determining childcare eligibility. Instead, CDSS relies on the eligibility and need assessment criteria outlined earlier, which are in statute and requires families to meet at least one criterion related to income, family circumstance, or the parent's engagement in specific activities such as employment, education, job search, housing search, or incapacity.
In practice, this means that CDSS evaluates whether a parent qualifies for services based on documented "need" categories rather than using the broader and more flexible statutory definition of "workday." As a result, even though statutory language recognizes a wide range of family-supportive activities as part of the "workday," families may still lose access to childcare if their activity does not clearly fit within CDSS' interpretation of an eligible need category during reassessment or recertification. This creates a disconnect between the statutory intent of flexibility and the administrative application of eligibility, particularly during temporary transitions such as pregnancy-related leave or caregiving periods, when families may still require consistent childcare but fall outside narrowly defined need categories.
Additionally, existing law invokes "workday" once by stating that CDSS is designated as the single state agency responsible for overseeing childcare services when parents are absent due to work or "other activities which require assistance of a third party or parties" (WIC 10211(a)). While this statutory language could reasonably be interpreted to include family leave, such as pregnancy-related leave, paid family leave, or medical recovery periods, as activities during which parents may need support from others to care for their children, the statute does not explicitly name family leave as a qualifying activity.
As a result, the interpretation of this provision remains ambiguous. It provides discretionary authority to CDSS but does not impose a mandate or guarantee that family leave will be recognized as a valid circumstance for childcare eligibility. Furthermore, CDSS does not operationalize this language as a requirement or eligibility pathway. Instead, CDSS relies on more narrowly defined "need" categories and eligibility criteria outlined elsewhere in statute and regulation, such as active employment, job search, education, or verified incapacity, when administering subsidized childcare programs.
This lack of specificity creates a gap between the broad intent of the law to support families when parents cannot provide care and the practical application of eligibility rules. In doing so, it leaves families on leave, who may be recovering from childbirth or caring for seriously ill relatives, without clear or consistent access to the childcare services they need during these critical transitions. This bill seeks to close this gap by explicitly including family leave as part of the "workday" definition, thereby aligning statute with caregiving demands and the broader intent of WIC 10211(a).
Parental Incapacity. Under California regulations, "parental incapacity" is defined as the temporary or permanent inability of a parent to provide care and supervision of their child for any part of the day due to a physical or mental health condition. When a parent applies for early learning and care services on the basis of incapacity, specific provisions apply to how eligibility and services are determined. Parents who qualify under this category must be certified for no more than 50 hours of care per week, regardless of the nature or severity of the condition. However, once certified, they are eligible to receive services for a minimum period of 12 months, during which time their eligibility and need cannot be reassessed or reduced.
To establish eligibility, the parent must submit documentation from a legally qualified health professional. This includes a signed release authorizing the professional to disclose necessary information verifying that the parent meets the definition of incapacity and needs childcare services. The health professional's documentation must clearly state that the parent is incapable of providing care for part of the day and must include a recommendation for the appropriate number of service hours per week, based on the child's age and care needs. This recommendation may also factor in the time needed for the parents' medical or mental health appointments. The documentation must include the provider's full contact information, professional license number, and signature, as well as any applicable health organization affiliation.
Additionally, contractors are authorized to contact the health professional directly to verify or clarify the documentation provided. Based on the parents' request and the health professional's recommendation, the contractor must determine a certified schedule for services that aligns with these regulatory requirements. These regulations seek to ensure that families facing serious health-related challenges have access to stable childcare, while also imposing structured documentation and service limits to guide implementation.
Current Barriers for Families on Leave. Under current law and administrative practice, families who are on leave, such as pregnancy-related leave or PFL, are generally not considered eligible for subsidized childcare unless they qualify under the specific "need" category, such as parental incapacity. The prevailing assumption is that if a parent is on leave from work, they are at home and therefore available and able to care for their children. However, this assumption does not reflect the complex realities faced by many families, particularly low-income households and those managing caregiving challenges.
In practice, this means that parents who are on leave to recover from childbirth or care for a family member may lose access to childcare services if they do not meet the strict documentation requirements for incapacity outlined in regulations. The standard requires a formal diagnosis and detailed verification from a medical professional, which can be burdensome and invasive, particularly for parents dealing with temporary but significant physical or emotional recovery.
Moreover, many parents use family leave not solely for their own recovery, but to care for a newborn or sick loved one while still needing support with older children or respite during periods of high stress. By not recognizing family leave as a legitimate need for childcare assistance, except under the narrow lens of incapacity, the system effectively excludes many families from support during their most vulnerable periods. This gap in eligibility not only undermines the goals of recovery, bonding, and family well-being but also reinforces inequities for parents who lack informal caregiving networks or flexible work benefits.
This bill seeks to address this gap in childcare access by recognizing that parents on leave, such as pregnancy-related leave or PFL, still require support in caring for their children. It does so by ensuring that time on leave is explicitly treated as part of the "workday" for the purposes of childcare access, and by establishing leave as its own distinct category of "need," separate from existing categories such as parental incapacity.
Currently, parents on leave who seek subsidized childcare must often qualify under the "incapacity" category, which requires medical documentation and verification from a licensed health professional. This bill makes it clear that being on leave does not equate to medical incapacity and should not be subject to the same documentation standards by allowing parents to sign an attestation form confirming they are on leave.
In addition, this bill expands the regulatory definition of "parental incapacity" by acknowledging that incapacity may occur during periods of leave, including pregnancy-related or PFL, even if the parent is not diagnosed with a specific physical or mental health condition.
State law establishes a 24-monthly eligibility for childcare services, during which families remain eligible regardless of temporary changes in income, employment, or need status, unless they report income that exceeds 85% of the state median income. This means that if a parent goes on leave and later returns to work within that certification period, they are not obligated to report their return to the contractor unless their income increases beyond the eligibility cap. This bill seeks to provide a stabilizing effect for families and supports the continuity of care for children by ensuring that a return to work after being on leave does not automatically trigger a reassessment of eligibility unless income limits are exceeded. This means that by expanding the "need" criteria to include family leave, this bill allows families to qualify for and begin receiving childcare services while still on leave. This translates to families not having to wait until their leave ends to apply for care, allowing for continuous support during critical periods and reducing gaps in service.
According to the Author
"California's child care system is failing many working families by limiting access to care based on unclear eligibility requirements. Parents utilizing family leave or searching for a job often find themselves without the child care support they need. This forces them to delay employment, risk their health, or make impossible choices about caregiving and financial stability. [This bill] clarifies current law to ensure that families can access reliable child care during these critical transitions, such as pregnancy leave, paid family leave, and job searching. By updating our policies, we can better support working parents and promote economic equity across the state."
Arguments in Support
According to Thriving Families, "[This bill] expands access to subsidized child care by updating the definition of "workday" to include time spent on pregnancy-related leave, paid family leave, and job searching. By recognizing caregiving leave as a legitimate need for child care, the bill ensures families don't lose essential support during critical transitions, helping to stabilize care for children and economic security for parents. This supports smoother transitions back to work, reduces stress from care disruptions, and promotes a whole-family approach that reflects the realities of working parents—especially those in low-income households."
Arguments in Opposition
None on file.
FISCAL COMMENTS
According to the Assembly Appropriations Committee on May 14, 2025, the California Department of Social Services (CDSS) estimates minor and absorbable costs. The department indicates this bill is clarifying of existing law.
VOTES
ASM HUMAN SERVICES: 5-1-1
YES: Lee, Calderon, Elhawary, Jackson, Celeste Rodriguez
NO: Tangipa
ABS, ABST OR NV: Castillo
ASM APPROPRIATIONS: 12-2-1
YES: Wicks, Arambula, Calderon, Caloza, Dixon, Elhawary, Fong, Mark González, Hart, Pacheco, Pellerin, Solache
NO: Sanchez, Tangipa
ABS, ABST OR NV: Ta
UPDATED
VERSION: April 22, 2025
CONSULTANT: Bri-Ann Hernández-Mengual / HUM. S. / (916) 319-2089 FN: 0000453
Date of Hearing: May 14, 2025
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Buffy Wicks, Chair
ABPCA Bill Id:AB 904
Author:(Aguiar-Curry) – As Amended Ver:April 22, 2025
Policy Committee: | Human Services | Vote: | 5 - 1 |
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Urgency: No State Mandated Local Program: Yes Reimbursable: No
SUMMARY:
This bill, for purposes of eligibility for subsidized childcare, revises the definition of a "workday" to additionally include the time a parent requires childcare to search for a job, provide care for oneself during pregnancy leave, or provide care for a family member during paid family leave.
Specifically, for purposes of accessing subsidized childcare under the Child Care and Development Services Act, this bill:
- Expands the definition of “workday” to additionally include the time a parent needs temporary care for a child to search for a job, to provide care for oneself during a pregnancy-related leave from work, or to provide care for a family member during a period of paid family leave.
- Defines “parental incapacity” as the temporary or permanent inability of a child’s parent or parents to provide care and supervision of the child for any part of the day. Specifies this may be due to a physical or mental health condition, or may occur during periods of leave, including, but not limited to, pregnancy-related leave or paid family leave.
- Includes in the family needs assessment a parent being on pregnancy or family leave as a reason a family may be eligible for services.
- Clarifies that a medical incapacity form is not required for a parent on leave to receive services and that a parent may sign an attestation stating they are on leave.
FISCAL EFFECT:
The California Department of Social Services (CDSS) estimates minor and absorbable costs. The department indicates this bill is clarifying of existing law.
COMMENTS:
- Purpose. According to the author:
California's child care system is failing many working families by limiting access to care based on unclear eligibility requirements. Parents utilizing family leave or searching for a job often find themselves without the child care support they need. This forces them to delay employment, risk their health, or make impossible choices about caregiving and financial stability. [This bill] clarifies current law to ensure that families can access reliable child care during these critical transitions, such as pregnancy leave, paid family leave, and job searching. By updating our policies, we can better support working parents and promote economic equity across the state.
- Background. California’s subsidized child care system is designed to provide assistance to parents and guardians who are working, in training, seeking employment, incapacitated, or in need of respite. Families qualify for non-CalWORKs subsidized childcare if they satisfy at least one eligibility requirement (such as receiving public assistance or experiencing homelessness) and one need requirement (such as a child who is receiving protective services, or parents who are employed or seeking permanent housing). Once a family is determined eligible for childcare services, either at initial enrollment or during a recertification, they are considered to meet all eligibility and need requirements for at least 24 months. During this 24-month period, the family is entitled to receive services without having to recertify their eligibility or need.
Workday. Existing statute defines “workday” as the time a parent requires temporary care for a child to engage in employment, training, or other activities that support family stability. However, in determining childcare eligibility, CDSS relies on the eligibility and need assessment criteria, mentioned above, which require a family to meet at least one criterion related to income, family circumstance, or the parent’s engagement in specific activities such as employment, education, job search, housing search, or incapacity.
Pregnancy leave and family leave are not explicitly included in either the definition of workday or as a qualifying activity in the needs assessment CDSS uses to determine subsidized childcare eligibility. This bill clarifies the definition of workday to include these components.
Parental Incapacity. Under existing law, parents on leave who seek subsidized childcare must often qualify under the “incapacity” category, which requires medical documentation and verification from a licensed health professional. This bill clarifies that being on leave does not equate to medical incapacity by allowing parents to sign an attestation form confirming they are on leave.
Existing regulations define “parental incapacity” as “the temporary or permanent inability of a parent to provide care and supervision of their child for any part of the day due to a physical or mental health condition.” This bill clarifies that incapacity may occur during periods of leave, including pregnancy-related or paid family leave, even if the parent is not diagnosed with a specific physical or mental health condition.
- Arguments in Support. According to Child Action, Inc.:
[This bill] modernizes the definition of a "workday" and updates parental incapacity eligibility to reflect real-life circumstances such as childbirth recovery, helping to reduce maternal stress, preserve child care continuity, and support families during vital caregiving or recovery periods.
This bill also streamlines the documentation process by allowing parents to self-attest to their qualifying leave, removing unnecessary barriers to access. These changes will strengthen maternal and child well-being, prevent unnecessary child care disruptions, and support economic stability for California’s working families, especially low-income and single-parent households who face disproportionate barriers under the current system.
Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081
Date of Hearing: April 29, 2025
ASSEMBLY COMMITTEE ON HUMAN SERVICES
Alex Lee, Chair
ABPCA Bill Id:AB 904 (
Author:Aguiar-Curry) – As Amended Ver:April 22, 2025
SUBJECT: Childcare services: workday
SUMMARY: Expands the definition of “workday” for the purposes of accessing childcare as the time a parent needs temporary care for a child, to include searching for a job and taking pregnancy or paid family leave. Adds to the needs assessment that a family is required to meet to be eligible for subsidized childcare services to include parents being on pregnancy or family leave. Clarifies that a medical incapacity form is not required for a parent on leave to receive services and authorizes a parent to sign an attestation stating they are on leave. Specifically, this bill:
- Expands the definition of “workday” for the purposes of accessing childcare as the time a parent needs temporary care for a child to include searching for a job, to provide care for oneself during a pregnancy-related leave from work, and to provide care for a family member during a period of paid family leave.
- Defines “parental incapacity” as the temporary or permanent inability of a child’s parent or parents to provide care and supervision of the child for any part of the day. This may be due to a physical or mental health condition, or may occur during periods of leave, including, but not limited to, pregnancy-related leave or paid family leave.
- Expands the needs assessment that a family is required to meet to be eligible for subsidized childcare services to include parents on pregnancy or family leave.
- Clarifies that a medical incapacity form is not required for a parent on leave to receive services and that a parent may sign an attestation stating they are on leave.
- Makes the following findings and declarations:
- Too many California families struggle to maintain affordable childcare when there is a disruption in work that interrupts their access to care.
- From an unexpected loss of a job to a complicated birth that prolongs leave from work, young families are sometimes cut from the childcare services they need to get back on their feet.
- States legislative intent to improve access to childcare to support families with young children in finding and maintaining employment during a period of transition by ensuring uninterrupted access to childcare.
EXISTING LAW:
State law:
- Establishes the Child Care and Development Services Act to provide childcare and development services as part of a coordinated, comprehensive, and cost-effective system serving children from birth to 13 years of age and their parents including a full range of supervision, health, and support services through full- and part-time programs. (Welfare and Institutions Code [WIC] § 10207 et seq.)
- States legislative intent that all families have access to childcare and development services, through resource and referral where appropriate, and regardless of demographic background or special needs, and that families are provided the opportunity to attain financial stability through employment while maximizing growth and development of their children and enhancing their parenting skills through participation in childcare and development programs. (WIC § 10207.5)
- Defines “childcare and development services” to mean services designed to meet a wide variety of children and families’ needs while parents and guardians are working, in training, seeking employment, incapacitated, or in need of respite. These services may include direct care and supervision, instructional activities, resource and referral programs, and alternative payment arrangements. (WIC § 10213.5(j))
- Provides that the California Department of Social Services (CDSS) is hereby designated as the single state agency responsible for the promotion, development, and provision of care of children in the absence of their parents during the workday or while engaged in other activities which require assistance of a third party or parties. (WIC § 10211(a))
- Defines “workday” to mean the time that the parent requires temporary care for a child for any of the following reasons:
- To undertake training in preparation of a job;
- To undertake, or retain a job; and,
- To undertake other activities that are essential to maintaining or improving the social and economic function of the family, are beneficial to the community, or are required because of health problems in the family. (WIC § 10213.5(ah))
- Establishes eligibility criteria for state-subsidized child development services based on family and child circumstances and need, and requires families to meet at least one requirement in each of the following areas:
- A family is a current aid recipient, income eligible, homelessness, or if a child is or has been abused, neglected, or exploited, as specified; and,
- A family needs the childcare services because the child is identified by a legal, medical, or social services agency, a local educational agency liaison for homeless children and youths, a Head Start program, or an emergency or transitional shelter as a: recipient of protective services; being neglected, abused, or exploited, or at risk of neglect, abuse, or exploitation; or being homeless; or, because the parents are: engaged in an educational program for English language learners or to attain a high school diploma or general educational development certificate; employed or seeking employment; seeking permanent housing for family stability; or incapacitated. (WIC § 10271(a)(1)(A-B))
- Requires a family, except as provided, upon establishing initial eligibility or ongoing eligibility for childcare services, to be considered to meet all eligibility and need requirements for those services for not less than 24 months, to receive those services for not less than 24 months before having their eligibility or need recertified, and to not be required to report changes to income or other changes for at least 24 months. (WIC § 10271(h)(1))
- Requires a family that establishes initial eligibility or ongoing eligibility on the basis of income to report increases in income that exceed the threshold for ongoing income eligibility, which is at or below 85% of the state median income, adjusted for family size, and requires the family’s ongoing eligibility for services to be recertified at that time. (WIC § 10271(h)(3))
- Defines “parental capacity” as the temporary or permanent inability of the child’s parent(s) to provide care and supervision of the child(ren) for any part of the day due to a physical and/or mental health condition. (5 California Code of Regulations [CCR] § 18078(r))
- Specifies that if the basis of need as stated on the application for services is parental incapacity, the following shall apply:
- The certified schedule for early learning and care services shall not exceed 50 hours per week; and,
- The parent’s period of eligibility for early learning and care services shall be for no less than 12 months and the parent shall receive services for not less than 12 months before having eligibility and need recertified. (5 CCR § 18088(a))
- Requires documentation of parental incapacity to include a release signed by the incapacitated parent authorizing a legally qualified health professional to disclose information necessary to establish that the parent meets the definition of parental incapacity, pursuant to 7) above, and needs services. (5 CCR § 18088(b))
- Requires the documentation of incapacitation provided by the legally qualified health professional to include:
- A statement that the parent is incapacitated and that the parent is incapable of providing care or supervision of the child for part of the day;
- The days and hours per week that services are recommended to accommodate the incapacitation, taking into account the age of the child and the child’s care needs. This may include time for the parent’s regularly scheduled medical or mental health appointments;
- The name, business address, telephone number, professional license number, and signature of the legally qualified health professional who is rendering the opinion of incapacitation; and,
- If applicable, the name of the health organization with which the professional is associated. (5 CCR § 18088(c))
- Authorizes the contractor to contact the legally qualified health professional for verification, or clarification of the provided statement in a) of 10) above. (5 CCR § 18088(d))
- Requires the contractor to determine the days and hours of the certified schedule based on the parent’s requested days and hours and the recommendation of the health professional, consistent with the 8) through 11) above. (5 CCR § 18088(e))
- Establishes the Early Education Act to provide an inclusive and cost-effective preschool program that provides high-quality learning experiences, coordinated services, and referrals for families to access health and social-emotional support services through full- and part-day programs and that all families have equitable access to a high-quality preschool program, regardless of race or ethnic status, cultural, religious, or linguistic background, family composition, or children with exceptional needs. (Education Code Section [EDC] § 8200 et seq.)
- The California Family Rights Act (CFRA) provides certain employees up to 12 weeks of unpaid, job-protected leave a year for the purpose of bonding with a child, caring for a parent, spouse, or child with a serious health condition, or due to an employee’s own serious health condition, and requires group health benefits to be maintained during the leave as if employees continued to work instead of taking leave. (Government Code [GOV] § 12945.2)
- Establishes Pregnancy Disability Leave (PDL) provisions, making it an unlawful employment practice, unless based upon a bona fide occupational qualification, for an employer to refuse to allow an employee disabled by pregnancy, childbirth, or a related medical condition to take a leave for a reasonable period of time not to exceed four months and thereafter return to work. The employee is entitled to utilize any accrued vacation leave during this period of time. Also under the Fair Employment and Housing Act, reasonable accommodation of a disability related to pregnancy can include an extended leave of absence. (GOV § 12945)
- Provides, through the State Disability Insurance (SDI) program, short-term wage replacement benefits to eligible workers who are unable to work due to a non-work-related illness or injury for a maximum of 52 weeks. SDI benefits can be used for an illness or injury, either physical or mental, which prevents an employee from performing their regular and customary work and includes elective surgery, pregnancy, childbirth, or other medical conditions. (Unemployment Insurance Code [UIC] § 2601-3308)
- Provides, through the Paid Family Leave (PFL) program, a component of SDI, eligible employees up to eight weeks of wage replacement benefits within a 12-month period to workers who need to take time off work to care for a seriously ill child, spouse, parent, grandparent, grandchild, sibling, or domestic partner; to bond with a minor child within one year of the birth or placement of the child in connection with foster care or adoption; or to participate in a qualifying event because of a family member’s military deployment. (UIC § 3301)
Federal law:
- Establishes the Family Medical Leave Act (FMLA) to provide most employees the right to take up to 12 weeks of job-protected, unpaid time off work for the birth or adoption of a child, due to a serious health condition of the employee, for an exigency arising out of the fact that the employee’s close relative is a military member on active duty, and for the employee to care for a close relative with a serious health condition. Applies these provisions to private employers that employ 50 or more employees during each of 20 or more calendar workweeks in the current or preceding year. (28 United States Code § 2601 et seq., § 2611)
FISCAL EFFECT: Unknown, this bill has not been analyzed by a fiscal committee.
COMMENTS:
Background: Subsidized Childcare. California’s subsidized child care system is designed to provide assistance to parents and guardians who are working, in training, seeking employment, incapacitated, or in need of respite. California’s subsidized childcare is made up of a system of programs serving children from birth through 13 years of age, funded through a mix of federal and state dollars, and administered through a mixed delivery system by local educational agencies, community-based providers, and family childcare providers. Parents participating in California Work Opportunity and Responsibility to Kids (CalWORKs), as well as families transitioning from and no longer receiving CalWORKs aid, can be eligible for childcare, which is offered in three “stages.” The largest programs are: General Child Care, which includes contracted centers and family childcare homes; the California State Preschool Program, which provides developmentally, culturally, and linguistically appropriate curriculum to eligible three- and four-year olds; and, alternative payment programs, which provide vouchers that can be used to obtain childcare in a center, family childcare home, or from a license-exempt provider.
Certain eligibility and prioritization rules apply to subsidized childcare in California. Families qualify for non-CalWORKs subsidized childcare if they satisfy at least one requirement in each of two areas: eligibility and need. First, they must meet one of the eligibility criteria, which includes currently receiving assistance, meeting income eligibility, experiencing homelessness, having children receiving protective services or identified as being at risk of abuse, neglect, or exploitation, or having a household member certified to receive benefits from specified means-tested government programs. Secondly, the family must meet one of the prerequisites for need. This could involve the child being identified by a legal, medical, or social services agency, or residing in an emergency shelter. Alternatively, the parents must either be employed or actively seeking employment; participating in vocational training or educational programs tailored for English language learners or aimed at achieving a high school diploma or general educational development certificate; be in pursuit of permanent housing for family stability; or, incapacitated. Families eligible for subsidized care must demonstrate an income below 85% of the state median income (SMI). Effective July 1, 2024, that amount is $6,593 per month for a family of three, totaling $79,116 annually.
Once a family is determined eligible for childcare services, either at initial enrollment or during a recertification, they are considered to meet all eligibility and need requirements for at least 24 months. During this 24-month period, the family is entitled to receive services without having to recertify their eligibility or need, and they are not required to report any changes to income or other circumstances, unless their circumstances result in income exceeding the 85% of SMI eligibility threshold.
Workday. California statute defines “workday” as the time a parent requires temporary care for a child to engage in employment, training, or other activities that support family stability. However, CDSS does not use this definition as the basis of determining childcare eligibility. Instead, CDSS relies on the eligibility and need assessment criteria outlined earlier, which are in statute and requires families to meet at least one criterion related to income, family circumstance, or the parent’s engagement in specific activities such as employment, education, job search, housing search, or incapacity.
In practice, this means that CDSS evaluates whether a parent qualifies for services based on documented “need” categories rather than using the broader and more flexible statutory definition of “workday.” As a result, even though statutory language recognizes a wide range of family-supportive activities as part of the “workday,” families may still lose access to childcare if their activity does not clearly fit within CDSS’ interpretation of an eligible need category during reassessment or recertification. This creates a disconnect between the statutory intent of flexibility and the administrative application of eligibility, particularly during temporary transitions such as pregnancy-related leave or caregiving periods, when families may still require consistent childcare but fall outside narrowly defined need categories.
Additionally, existing law invokes “workday” once by stating that CDSS is designated as the single state agency responsible for overseeing childcare services when parents are absent due to work or “other activities which require assistance of a third party or parties” (WIC 10211(a)). While this statutory language could reasonably be interpreted to include family leave, such as pregnancy-related leave, paid family leave, or medical recovery periods, as activities during which parents may need support from others to care for their children, the statute does not explicitly name family leave as a qualifying activity.
As a result, the interpretation of this provision remains ambiguous. It provides discretionary authority to CDSS but does not impose a mandate or guarantee that family leave will be recognized as a valid circumstance for childcare eligibility. Furthermore, CDSS does not operationalize this language as a requirement or eligibility pathway. Instead, CDSS relies on more narrowly defined “need” categories and eligibility criteria outlined elsewhere in statute and regulation, such as active employment, job search, education, or verified incapacity, when administering subsidized childcare programs.
This lack of specificity creates a gap between the broad intent of the law to support families when parents cannot provide care and the practical application of eligibility rules. In doing so, it leaves families on leave, who may be recovering from childbirth or caring for seriously ill relatives, without clear or consistent access to the childcare services they need during these critical transitions. This bill seeks to close this gap by explicitly including family leave as part of the “workday” definition, thereby aligning statute with caregiving demands and the broader intent of WIC 10211(a).
Parental Incapacity. Under California regulations, “parental incapacity” is defined as the temporary or permanent inability of a parent to provide care and supervision of their child for any part of the day due to a physical or mental health condition. When a parent applies for early learning and care services on the basis of incapacity, specific provisions apply to how eligibility and services are determined. Parents who qualify under this category must be certified for no more than 50 hours of care per week, regardless of the nature or severity of the condition. However, once certified, they are eligible to receive services for a minimum period of 12 months, during which time their eligibility and need cannot be reassessed or reduced.
To establish eligibility, the parent must submit documentation from a legally qualified health professional. This includes a signed release authorizing the professional to disclose necessary information verifying that the parent meets the definition of incapacity and needs childcare services. The health professional’s documentation must clearly state that the parent is incapable of providing care for part of the day and must include a recommendation for the appropriate number of service hours per week, based on the child’s age and care needs. This recommendation may also factor in the time needed for the parents’ medical or mental health appointments. The documentation must include the provider’s full contact information, professional license number, and signature, as well as any applicable health organization affiliation.
Additionally, contractors are authorized to contact the health professional directly to verify or clarify the documentation provided. Based on the parents’ request and the health professional’s recommendation, the contractor must determine a certified schedule for services that aligns with these regulatory requirements. These regulations seek to ensure that families facing serious health-related challenges have access to stable childcare, while also imposing structured documentation and service limits to guide implementation.
Current Barriers for Families on Leave. Under current law and administrative practice, families who are on leave, such as pregnancy-related leave or PFL, are generally not considered eligible for subsidized childcare unless they qualify under the specific “need” category, such as parental incapacity. The prevailing assumption is that if a parent is on leave from work, they are at home and therefore available and able to care for their children. However, this assumption does not reflect the complex realities faced by many families, particularly low-income households and those managing caregiving challenges.
In practice, this means that parents who are on leave to recover from childbirth or care for a family member may lose access to childcare services if they do not meet the strict documentation requirements for incapacity outlined in regulations. The standard requires a formal diagnosis and detailed verification from a medical professional, which can be burdensome and invasive, particularly for parents dealing with temporary but significant physical or emotional recovery.
Moreover, many parents use family leave not solely for their own recovery, but to care for a newborn or sick loved one while still needing support with older children or respite during periods of high stress. By not recognizing family leave as a legitimate need for childcare assistance, except under the narrow lens of incapacity, the system effectively excludes many families from support during their most vulnerable periods. This gap in eligibility not only undermines the goals of recovery, bonding, and family well-being but also reinforces inequities for parents who lack informal caregiving networks or flexible work benefits.
This bill seeks to address this gap in childcare access by recognizing that parents on leave, such as pregnancy-related leave or PFL, still require support in caring for their children. It does so by ensuring that time on leave is explicitly treated as part of the “workday” for the purposes of childcare access, and by establishing leave as its own distinct category of “need”—separate from existing categories such as parental incapacity.
Currently, parents on leave who seek subsidized childcare must often qualify under the “incapacity” category, which requires medical documentation and verification from a licensed health professional. This bill makes it clear that being on leave does not equate to medical incapacity and should not be subject to the same documentation standards by allowing parents to sign an attestation form confirming they are on leave.
In addition, this bill expands the regulatory definition of “parental incapacity” by acknowledging that incapacity may occur during periods of leave, including pregnancy-related or PFL, even if the parent is not diagnosed with a specific physical or mental health condition.
As mentioned, state law establishes a 24-monthly eligibility for childcare services, during which families remain eligible regardless of temporary changes in income, employment, or need status, unless they report income that exceeds 85% of the SMI. This means that if a parent goes on leave and later returns to work within that certification period, they are not obligated to report their return to the contractor unless their income increases beyond the eligibility cap. This bill seeks to provide a stabilizing effect for families and supports the continuity of care for children by ensuring that a return to work after being on leave does not automatically trigger a reassessment of eligibility unless income limits are exceeded. This means that by expanding the “need” criteria to include family leave, this bill allows families to qualify for and begin receiving childcare services while still on leave. This translates to families not having to wait until their leave ends to apply for care, allowing for continuous support during critical periods and reducing gaps in service.
Family Leave in California. California offers several types of family leave that allow workers to take time off for pregnancy, childbirth, bonding with a new child, or caring for a seriously ill family member. These leave programs vary in terms of eligibility, job protection, and wage replacement, and while they serve overlapping purposes, none currently ensure access to subsidized childcare during the leave period, a gap this bill seeks to address.
- California Family Rights Act provides up to 12 weeks of job-protected, unpaid leave within a 12-month period for eligible employees. Leave may be used for an employee’s birth of a child or placement of a child through adoption of foster care, an employee’s own serious health condition or to care for a child, spouse, parent, grandparent, sibling, or registered domestic partner. CFRA applies to employees who work for an employer with five or more employees and who have completed at least 1,250 hours of work in the prior year;
- Family Medical Leave Act is a federal law with similar provisions but a narrower scope. FMLA also provides 12 weeks of unpaid, job-protected leave, but it only applies to employers with 50 or more employees within a 75-mile radius and requires the same 1,250 hours of prior work. While both CFRA and FMLA protect a parent’s job, neither program includes direct income support or addresses childcare needs during the leave;
- Pregnancy Disability Leave allows workers in California to take up to four months of job-protected leave per pregnancy for conditions related to pregnancy or childbirth, including prenatal care, recovery from delivery, or complications such as postpartum depression. PDL is available to employees working for employers with five or more employees and does not have a minimum hours requirement; and,
- Paid Family Leave provides partial wage replacement, but not job protection, for up to eight weeks for bonding with a new child or caring for a seriously ill family member. Administered by the Employment Development Department, PFL is funded through SDI payroll contributions. Workers must contribute to SDI through payroll deductions or a negotiated agreement to be eligible. PFL can be used in conjunction with CFRA or FMLA to preserve both income and job protection.
While these leave programs serve critical roles in supporting families during vulnerable periods, none guarantee access to subsidized childcare during leave. The assumption that parents on leave can care for their children full-time does not account for the realities of postpartum recovery, caregiving for other children, and managing medical or mental health needs.
A 2020 report by the U.S. Department of Health and Human Services highlighted that PFL helped many low-income mothers secure childcare and manage transitions back to work—but also found that childcare affordability and availability remained significant barriers. Studies from the National Partnership for Women & Families also demonstrate that access to childcare during PFL improves maternal health and reduces financial stress, promoting better outcomes for both parents and children. The National Women’s Law Center (NWLC) additionally finds that flexible childcare policies strengthen job retention and improve economic outcomes for working families, particularly for women. The NWLC notes that affordable childcare increases women’s lifetime earnings and retirement security, reinforcing its long-term benefits for family economic security.
By expanding eligibility for subsidized childcare to include pregnancy-related and family leave as a distinct need category, this bill aligns California’s childcare system with the protections offered under CFRA, PDL, FMLA, and PFL, ensuring that parents have the support they need to care for their children and return to work safely and sustainably. Below is a summary of the leave programs.
| CA Family Rights Act (CFRA) Job Protected | Paid Family Leave (PFL) No Job Protection | Pregnancy Disability Leave (PDL) Job Protected | Family Medical Leave Act (FMLA) Job Protected |
Employers Covered | Five or more employees | One or more (employee pays, employee gets) | Five or more employees | 50+ employees within 75-mile radius |
Employee Eligibility | Worked 1,250 hours in prior 12 months | Once employee earns $300 in base period for fund contribution | Immediate as necessary | Worked 1,250 in prior 12 months |
Reason for Leave | Employee serious health condition; seriously ill family member care; bond with newborn or newly placed adopted or foster child | Care for seriously ill family member; bond with a child within 1 year of birth, foster care or adoption placement; qualifying event because of a family member’s military deployment | Disability due to pregnancy, childbirth or related medical condition | Bond with a child w/in 1 year of birth, adoption or foster care placement OR due to serious pregnancy-related health condition |
Length of Leave | 12 weeks in 12-month period | 8 weeks in 12-month period | Up to 4 months | Up to 12 weeks |
Paid or Unpaid | Unpaid, may run concurrent with other paid leave | Partial wage replacement (70-90%) | Unpaid, may run concurrent with SDI for partial wage replacement | Unpaid, employee can use vacation, paid sick time |
Continued Health Coverage | Yes | No | Yes | Yes |
Author’s Statement: According to the Author, “California's child care system is failing many working families by limiting access to care based on unclear eligibility requirements. Parents utilizing family leave or searching for a job often find themselves without the child care support they need. This forces them to delay employment, risk their health, or make impossible choices about caregiving and financial stability. [This bill] clarifies current law to ensure that families can access reliable child care during these critical transitions, such as pregnancy leave, paid family leave, and job searching. By updating our policies, we can better support working parents and promote economic equity across the state."
Equity Implications: By creating a new, standalone category of “need” for parents on leave, this bill acknowledges the realities faced by families who require childcare during critical periods of transition. It removes the reportedly burdensome requirement of medical verification that is associated with the incapacity category, and instead allows parents to submit an attestation form confirming they are on leave. This streamlined process may reduce administrative barriers that have historically excluded the most vulnerable families, particularly those with limited access to healthcare or who are unfamiliar with navigating complex eligibility systems.
This bill aims to promote gender equity by recognizing caregiving as essential labor, not an automatic indicator of capacity. Women, especially women of color, are more likely to take on unpaid caregiving responsibilities, which often result in missed work opportunities, stalled career advancement, and lower lifetime earnings. Allowing access to subsidized childcare while on leave supports these parents in maintaining stability and planning for a return to the workforce, reinforcing economic opportunity and family wellbeing.
Additionally, this bill seeks to strengthen continuity of care for children. Disruptions in childcare access, especially during the first five years of life, can negatively impact a child’s development and widen existing disparities in school readiness and long-term outcomes. Ensuring that childcare remains available during family leave supports children’s stability and development, while easing the transition for parents back into employment or education. It may help to ensure that no parent is forced to choose between taking necessary leave and losing access to the childcare support that allows them to recover, bond, and return to work.
Staff Comments: To address a technical drafting error, the Author may wish to amend this bill to renumber Section 3 of the bill as follows:
(a) (1) The department shall adopt rules and regulations on eligibility, enrollment, and priority of services needed to implement this chapter. In order to be eligible for federal and state subsidized child development services, families shall meet at least one requirement in each of the following areas:
(A) A family is (i) a current aid recipient, (ii) income eligible, (iii) homeless, (iv) one whose children are recipients of protective services, or whose children have been identified as being abused, neglected, or exploited, or at risk of being abused, neglected, or exploited, or (v) one who has a member of its household who is certified to receive benefits from Medi-Cal, CalFresh, the California Food Assistance Program, the California Special Supplemental Nutrition Program for Women, Infants, and Children, the federal Food Distribution Program on Indian Reservations, Head Start, Early Head Start, or any other designated means-tested government program, as determined by the department. If a family is deemed eligible pursuant to clause (v), the family shall be prioritized by the income declared on the application for the means-tested government program.
(B) A family needs the childcare services (i) because the child is identified by a legal, medical, or social services agency, a local educational agency liaison for homeless children and youths designated pursuant to Section 11432(g)(1)(J)(ii) of Title 42 of the United States Code, a Head Start program, or an emergency or transitional shelter as (I) a recipient of protective services, (II) being neglected, abused, or exploited, or at risk of neglect, abuse, or exploitation, or (III) being homeless or (ii) because the parents are (I) engaged in vocational training leading directly to a recognized trade, paraprofession, or profession, (II) engaged in an educational program for English language learners or to attain a high school diploma or general educational development certificate, (III) employed or seeking employment, (IV) seeking permanent housing for family stability, or (V) incapacitated, or (VI) on pregnancy or family leave.
(C) (2) A medical incapacity form shall not be required for a parent on leave to receive services. A parent may sign an attestation stating they are on leave.
(2) (3) If only one parent has signed an application for enrollment in childcare services, as required by this chapter or regulations adopted to implement this chapter, and the information provided on the application indicates that there is a second parent who has not signed the application, the parent who has signed the application shall self-certify the presence or absence of the second parent under penalty of perjury. The parent who has signed the application shall not be required to submit additional information documenting the presence or absence of the second parent.
RELATED AND PRIOR LEGISLATION:
AB 1528 (Committee on Human Services) of the current legislative session, among other things, extends family fee exemptions from 12 to 24 months for children referred for or at risk of receiving child protective services. AB 1528 is set to be heard by this committee on April 29, 2025.
AB 65 (Aguiar Curry) of the current legislative session, requires K-12 public schools and community college districts to provide up to 14 weeks of paid leave for employees experiencing pregnancy, miscarriage, childbirth, termination of pregnancy, or recovery from those conditions. AB 65 is pending before the Assembly Committee on Appropriations.
AB 2901 (Aguiar Curry) of 2024, would have required school and community college districts to provide up to 14 weeks of paid leave for employees experiencing pregnancy, miscarriage, childbirth, termination of pregnancy, or recovery from those conditions, beginning January 1, 2028, and only if an appropriation is made for this purpose in the budget. AB 2901 died on the Senate inactive file.
SB 1047 (Limon), Chapter 923, Statutes of 2022, expanded from 12 months to 24 months, the period of a family’s eligibility after establishing initial eligibility for state preschool and subsidized child care and development programs, and expanded priority for eligibility, enrollment, and services to include families who receive specified human services benefits.
AB 131 (Committee on Budget), Chapter 116, Statutes of 2021, aimed to expand childcare access for working families by adding thousands of new childcare slots and increasing provider rates. Phased in 200,000 new childcare slots by the 2025-26 fiscal year, with over 145,000 slots added by 2022-23. Promised significant rate increases for childcare and preschool providers, reflecting a collective bargaining agreement with Child Care Providers United, benefiting approximately 40,000 family childcare providers.
REGISTERED SUPPORT / OPPOSITION:
Support
TOOTRiS
Opposition
None on file.
Analysis Prepared by: Bri-Ann Hernández-Mengual / HUM. S. / (916) 319-2089
Discussed in Hearing
50SEC
Senate Floor
53SEC
Assembly Floor
1MIN
Senate Standing Committee on Appropriations
8MIN
Senate Standing Committee on Environmental Quality
7MIN
Senate Standing Committee on Human Services
1MIN
Assembly Floor
1MIN
Assembly Standing Committee on Appropriations
8MIN
Assembly Standing Committee on Human Services
Bill Author
Bill Co-Author(s):