SECTIONS 42970-42983 - California Statutes

PUBLIC RESOURCES CODE

SECTION 42970-42983

42970. The purpose of this chapter is to increase the amount of
postconsumer carpet that is diverted from landfills and recycled into
secondary products or otherwise managed in a manner that is
consistent with the state's hierarchy for waste management practices
pursuant to Section 40051.

42971. For purposes of this chapter, and unless the context
otherwise requires, the definitions in this section govern the
construction of this chapter:
(a) "Brand" means a name, symbol, word, or mark that identifies
the carpet, rather than its components, and attributes the carpet to
the owner or licensee of the brand as the manufacturer.
(b) "CARE" means the Carpet America Recovery Effort, a third-party
nonprofit carpet stewardship organization incorporated as a
nonprofit corporation pursuant to Section 501(c)(3) of Title 26 of
the United States Code in 2002 and established to increase the
reclamation and stewardship of postconsumer carpet.
(c) "CARE MOU" means the 2012 Memorandum of Understanding for
Carpet Stewardship, as to be negotiated among the carpet industry,
states, and nongovernmental organization stakeholders as a successor
to the 2002 memorandum of understanding.
(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 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) (1) "Carpet stewardship organization" or "organization" means
either of the following:
(A) An organization appointed by one or more manufacturers to act
as an agent on behalf of the manufacturer to design, submit, and
administer a carpet stewardship plan pursuant to this chapter.
(B) A carpet manufacturer that complies with this chapter as an
individual manufacturer.
(2) Notwithstanding paragraph (1), until April 1, 2015, CARE shall
be the sole carpet stewardship organization pursuant to subparagraph
(A) of paragraph (1).
This paragraph does not restrict the option of an individual
carpet manufacturer to comply with this chapter as a carpet
stewardship organization, on and after January 1, 2011, pursuant to
subparagraph (B) of paragraph (1).
(f) "Carpet stewardship plan" or "plan" means a plan written by an
individual manufacturer or a carpet stewardship organization, on
behalf of one or more manufacturers, that includes all of the
information required by Section 42972.
(g) "Consumer" means a purchaser, owner, or lessee of carpet,
including a person, business, corporation, limited partnership,
nonprofit organization, or governmental entity.
(h) "Department" means the Department of Resources Recycling and
Recovery.
(i) "Label" means a graphic representation of three chasing arrows
with a carpet roll inside the arrows, or an alternative design,
designed by CARE, after consultation with retailers and wholesalers,
and approved by the department for use on all invoices or
functionally equivalent billing documents pursuant to subparagraph
(C) of paragraph (3) of subdivision (c) of Section 42972.
(j) "Manufacturer" means, with regard to a carpet that is sold,
offered for sale, or distributed in the state any of the following:
(1) The person who manufactures the carpet and who sells, offers
for sale, or distributes that carpet in the state under that person's
own name or brand.
(2) If there is no person who sells, offers for sale, or
distributes the carpet in the state under the person's own name or
brand, the manufacturer of the carpet is the owner or licensee of a
trademark or brand under which the carpet is sold or distributed in
the state, whether or not the trademark is registered.
(3) If there is no person who is a manufacturer of the carpet for
the purpose of paragraphs (1) and (2), the manufacturer of that
carpet is the person who imports the carpet into the state for sale
or distribution.
(k) "Postconsumer carpet" means carpet that is no longer used for
its manufactured purpose.
(l) "Recycling" means the process, consistent with Section 40180,
of converting postconsumer carpet into a useful product that meets
the quality standards necessary to be used in the marketplace.
(m) "Retailer" means a person who offers new carpet 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 Web site or other
similar electronic means.
(n) "Sell" or "sales" means a transfer of title of a carpet for
consideration, including a remote sale conducted through a sales
outlet, catalog, Internet Web site or similar electronic means. For
purposes of this chapter, "sell" or "sales" includes a lease through
which a carpet is provided to a consumer by a manufacturer,
wholesaler, or retailer.
(o) "Wholesaler" means a person who offers new carpet 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 carpet is
intended to be resold.

42972. (a) On or before September 30, 2011, a manufacturer of
carpets sold in this state shall, individually or through a carpet
stewardship organization, submit a carpet stewardship plan to the
department that will do all of the following:
(1) Achieve the purposes of this chapter, as described in Section
42970, and meet the requirements of Section 42975.
(2) Include goals that, to the extent feasible based on available
technology and information, increase the recycling of postconsumer
carpet, increase the diversion of postconsumer carpets from
landfills, increase the recyclability of carpets, and incentivize the
market growth of secondary products made from postconsumer carpet.
The goals established in the plan shall, at a minimum, be equal to
the goals established in the CARE MOU, if it has been adopted at the
time the plan is submitted to the department.
(3) Describe proposed measures that will enable the management of
postconsumer carpet in a manner consistent with the state's solid
waste management hierarchy, including, but not limited to, source
reduction, source separation and processing to segregate and recover
recyclable materials, and environmentally safe management of
materials that cannot feasibly be recycled.
(4) Include a funding mechanism, consistent with subdivision (c),
that provides sufficient funding to carry out the plan, including the
administrative, operational, and capital costs of the plan, payment
of fees pursuant to Section 42977, and incentive payments that will
advance the purposes of this chapter.
(5) Include education and outreach efforts to consumers,
commercial building owners, carpet installation contractors, and
retailers to promote their participation in achieving the purposes of
the carpet stewardship plan as described in paragraph (1). These
education and outreach materials may include, but are not limited to,
any of the following:
(A) Signage that is prominently displayed and easily visible to
the consumer.
(B) Written materials and templates of materials for reproduction
by retailers to be provided to carpet installation contractors and
consumers at the time of purchase or delivery or both.
(C) Promotional materials or activities, or both, that explain the
purpose of carpet stewardship and the means by which it is being
carried out.
(6) Include a process by which the financial activities of the
organization or individual manufacturer that are related to
implementation of the plan will be subject to an independent audit,
which may be reviewed by the department.
(b) The plan prepared pursuant to this section shall be designed
to accept and manage all suitable postconsumer carpet, regardless of
polymer type or primary materials of construction.
(c) (1) The funding mechanism required pursuant to paragraph (4)
of subdivision (a) shall establish and provide for, on and after
January 1, 2013, a carpet stewardship assessment per unit of carpet
sold in the state in an amount that cumulatively will adequately fund
the plan and be consistent with the purposes of the chapter. The
assessment shall be remitted to the carpet stewardship organization
on a quarterly basis and the carpet stewardship organization may
expend the assessment only to carry out the plan.
(2) The amount of the assessment and the anticipated revenues from
the assessment shall be specified in the plan and shall be approved
by the department as part of the plan. The amount of the assessment
shall be sufficient to meet, but not exceed, the anticipated cost of
carrying out the plan. The amount of the assessment shall not create
an unfair advantage in the marketplace.
(3) The assessment established pursuant to this subdivision and
Section 42972.5 is exempt from the taxes imposed by Part 1
(commencing with Section 6001) of Division 2 of the Revenue and
Taxation Code and shall meet both of the following requirements:
(A) The assessment shall be added by a manufacturer to the
purchase price of all carpet sold by manufacturers to a California
retailer or wholesaler or otherwise sold for use in the state. The
assessment shall be clearly visible on invoices or functionally
equivalent billing documents as a separate line item and shall be
accompanied by a brief description of the assessment or a label
approved by the department.
(B) Each retailer and wholesaler shall add the assessment to the
purchase price of all carpet sold in the state. The assessment shall
be clearly visible on invoices or functionally equivalent billing
documents as a separate line item and shall be accompanied by a brief
description of the assessment or a label approved by the department.
(d) A carpet stewardship organization that submits a plan pursuant
to this section shall consult with retailers and wholesalers in the
development of the plan, in order to minimize the impacts of the plan
on retailers and wholesalers.
(e) A carpet stewardship organization shall notify the department
within 30 days after instituting a significant or material change to
an approved carpet stewardship plan.

42972.5. (a) Notwithstanding paragraph (1) of subdivision (c) of
Section 42972, on and after July 1, 2011, but not on or after January
1, 2013, a manufacturer of carpet shall add a carpet stewardship
assessment of five cents ($0.05) per square yard to the purchase
price of all carpet sold in the state by that manufacturer. The
assessment added pursuant to this subdivision shall be remitted on a
quarterly basis, as appropriate, to CARE or be retained by the
individual manufacturer referred to in subparagraph (B) of paragraph
(1) of subdivision (d) of Section 42971, for expenditure pursuant to
subdivision (b).
(b) Prior to approval of a carpet stewardship plan, CARE or an
individual manufacturer shall spend revenues from the assessment
imposed pursuant to subdivision (a) only to implement early action
measures that are consistent with the purposes of this chapter and
that are designed to achieve measurable improvements in the landfill
diversion and recycling of postconsumer carpet.

42973. (a) (1) Within 60 days after the department receives a plan
submitted pursuant to Section 42972, it shall review the plan,
determine whether it complies with Section 42972, and notify the
submitter of its decision to approve or not approve the plan.
(2) On or after April 1, 2015, an organization appointed by one or
more manufacturers to act as an agent on behalf of the manufacturer
to design, submit, and administer a carpet stewardship plan pursuant
to this chapter may submit a plan to the department pursuant to
Section 42972 and that plan may be approved by the department,
subject to the requirements of paragraph (1), only if the department
makes both of the following findings:
(A) The plan will not have the effect of reducing the level of
diversion and recycling of postconsumer carpet that has been achieved
pursuant to this chapter at the time the department reviews the
plan.
(B) The amount of the assessment in the plan will not create an
unfair advantage in the marketplace for one or more of the companies
in the organization.
(b) If the department does not approve the plan, it shall describe
the reasons for its disapproval in the notice. The submitter may
revise and resubmit the plan within 60 days after receiving notice of
disapproval and the department shall review and approve or not
approve the revised plan within 60 days after receipt. Any plan not
approved by March 31, 2012, shall be out of compliance with this
chapter and the submitter of the plan is subject to the penalties
specified in Section 42978 until the plan is approved by the
department.

42974. (a) The department shall enforce this chapter.
(b) On and after April 1, 2012, a manufacturer, wholesaler, or
retailer that offers a carpet for sale in this state, or who offers a
carpet for promotional purposes in this state, is not in compliance
with this chapter and is subject to penalties pursuant to Section
42978, if the carpet is not subject to a plan that is submitted by an
organization that includes the manufacturer of that carpet, which
plan has been approved by the department pursuant to Section 42973.
(c) (1) On July 1, 2012, and not later than January 1 and July 1
annually thereafter, the department shall post a notice on its
Internet Web site listing manufacturers that are in compliance with
this chapter.
(2) A manufacturer that is not listed on the department's Internet
Web site pursuant to this subdivision, but demonstrates to the
satisfaction of the department that the manufacturer is in compliance
with this chapter before the next notice is required to be posted,
may request a certification letter from the department stating that
the manufacturer is in compliance. The letter shall constitute proof
of compliance with this chapter.
(d) A wholesaler or retailer that distributes or sells carpet
shall monitor the department's Internet Web site to determine if the
sale of a manufacturer's carpet is in compliance with the
requirements of this chapter. Notwithstanding Section 42978, a
wholesaler or retailer otherwise in compliance with this chapter
shall be deemed in compliance with this section if, on the date the
wholesaler or retailer ordered or purchased carpet, the manufacturer
was listed as a compliant manufacturer on the department's Internet
Web site.

42975. (a) In order to achieve compliance with this chapter, a
carpet stewardship organization shall, on or before July 1, 2013, and
annually thereafter, demonstrate to the department that it has
achieved continuous meaningful improvement in the rates of recycling
and diversion of postconsumer carpet subject to its stewardship plan
and in meeting the other goals included in the organization's plan
pursuant to paragraph (2) of subdivision (a) of Section 42972. In
determining compliance, the department shall consider all of the
following:
(1) The baseline rate of compliance against which the demonstrated
improvement is compared.
(2) The goals included in the CARE MOU.
(3) Information provided in the organization's report to the
department pursuant to Section 42976.
(b) If more than one organization submits a carpet stewardship
plan pursuant to this chapter, the department shall use information
submitted by the organization in its annual report pursuant to
Section 42976 to determine to what extent the recycling and diversion
rates and the achievement of the other goals included in the plan
are attributable to each organization and shall determine compliance
with this chapter accordingly.

42976. On or before July 1, 2013, and each year thereafter, 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.

42977. (a) The carpet stewardship organization submitting a carpet
stewardship plan shall pay the department an annual administrative
fee. The department shall set the fee at an amount that, when paid by
every carpet stewardship organization that submits a carpet
stewardship plan, is adequate to cover the department's full costs of
administering and enforcing this chapter, including any program
development costs or regulatory costs incurred by the department
prior to carpet stewardship plans being submitted. The department may
establish a variable fee based on relevant factors, including, but
not limited to, the portion of carpets sold in the state by members
of the organization compared to the total amount of carpet sold in
the state by all organizations submitting a carpet stewardship plan.
(b) The total amount of annual fees collected pursuant to this
section shall not exceed the amount necessary to recover costs
incurred by the department in connection with the administration and
enforcement of the requirements of this chapter.
(c) The department shall identify the direct development or
regulatory costs it incurs pursuant to this chapter prior to the
submittal of a carpet stewardship plan and shall establish a fee in
an amount adequate to cover those costs, which shall be paid by a
carpet stewardship organization that submits a carpet stewardship
plan. The fee established pursuant to this subdivision shall be paid
in three equal payments pursuant to the schedule specified in
subdivision (d).
(d) A carpet stewardship organization subject to this section
shall pay the department the administrative fee pursuant to
subdivision (a) on or before July 1, 2012, and annually thereafter
and the applicable portion of the fee pursuant to subdivision (c) on
July 1, 2012, and annually thereafter through July 1, 2014. Each year
after the initial payment, the annual administrative fee may not
exceed 5 percent of the aggregate assessment collected for the
preceding calendar year.
(e) The department shall deposit the fees collected pursuant to
this section into the Carpet Stewardship Account created pursuant to
Section 42977.1.

42977.1. (a) The Carpet Stewardship Account and the Carpet
Stewardship Penalty Subaccount are hereby established in the
Integrated Waste Management Fund.
(b) All fees collected by the department pursuant to this article
shall be deposited in the Carpet Stewardship Account and may be
expended by the department, upon appropriation by the Legislature, to
cover the department's costs to implement this chapter.
(c) All civil penalties collected pursuant to this article shall
be deposited in the Carpet Stewardship Penalty Subaccount and may be
expended by the department, upon appropriation by the Legislature, to
cover the department's costs to implement this chapter.

42978. (a) A civil penalty up to the following amounts may be
administratively imposed by the department on any person who is in
violation of any provision of this chapter:
(1) One thousand dollars ($1,000) per day.
(2) Ten thousand dollars ($10,000) per day if the violation is
intentional, knowing, or negligent.
(b) In assessing or reviewing the amount of a civil penalty
imposed pursuant to subdivision (a) for a violation of this chapter,
the department or the court shall consider all of the following:
(1) The nature and extent of the violation.
(2) The number and severity of the violation or violations.
(3) The economic effect of the penalty on the violator.
(4) Whether the violator took good faith measures to comply with
this chapter and the period of time over which these measures were
taken.
(5) The willfulness of the violator's 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.

42979. (a) This chapter does not limit, supersede, duplicate, or
otherwise conflict with the authority of the Department of Toxic
Substances Control under Section 25257.1 of the Health and Safety
Code to fully implement Article 14 (commencing with Section 25251) of
Chapter 6.5 of Division 20 of the Health and Safety Code, including
the authority of the department to include a carpet in a product
registry adopted pursuant to that article.
(b) Notwithstanding subdivision (a), the Department of Toxic
Substances Control shall fully consider the measures taken by the
carpet industry pursuant to this chapter, and the results of those
measures, when considering whether to include carpet in a product
registry adopted pursuant to, or to otherwise regulate carpet
pursuant to, Article 14 (commencing with Section 25251) of Chapter
6.5 of Division 20 of the Health and Safety Code.

42980. (a) On or before January 1, 2014, the department and the
Department of General Services shall complete a study that examines
the specifications for carpet purchases by the state, as provided in
the American National Standards Institute (NSF/ANSI) 140-2009
Standard, Platinum Level, as in effect on January 1, 2011 or the most
current version in effect, and shall submit the study to the
Governor and the Legislature pursuant to Section 9795 of the
Government Code, including recommendation for any appropriate changes
to that standard. In examining the standard and recommending changes
to the standard, the department and the Department of General
Services shall consider all of the following:
(1) Any changes to the standard that would further the purpose of
this chapter.
(2) Any changes to the standard that would improve the
environmental sustainability of carpet purchased by the state.
(3) The life-cycle impacts of proposed changes to the standard.
(4) The impacts of the proposed changes to the standard on source
reduction.
(5) The impacts of the proposed changes to the standard on the
recyclability of carpet.
(6) Economic and technological barriers to the proposed changes to
the standard.
(b) The department and Department of General Services shall hold
at least one workshop to receive comments from interested
stakeholders prior to the completion of the study.
(c) Pursuant to Section 10231.5 of the Government Code, this
section is repealed on January 1, 2018.

42981. (a) Except as provided in subdivision (b), any action by a
carpet stewardship organization or its members that relates to any of
the following is not a violation of the Cartwright Act (Chapter 2
(commencing with Section 16700) of Part 2 of Division 7 of the
Business and Professions Code), the Unfair Practices Act (Chapter 4
(commencing with Section 17000) of Part 2 of Division 7 of the
Business and Professions Code), or the Unfair Competition Law
(Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of
the Business and Professions Code):
(1) The creation, implementation, or management of a carpet
stewardship plan approved by the department pursuant to Section 42973
and the types or quantities of carpet being recycled or otherwise
managed as described in Section 42970.
(2) The cost and structure of an approved carpet stewardship plan.
(3) The establishment, administration, or disbursement of a carpet
stewardship assessment as described in Section 42972 or 42972.5.
(b) Subdivision (a) does not apply to an agreement that does any
of the following:
(1) Fixes a price of or for carpet, except for any agreement
related to a carpet stewardship assessment pursuant to Section
42972.5 or to a carpet stewardship plan approved by the department
and otherwise in accordance with this chapter.
(2) Fixes the output of production of carpet.
(3) Restricts the geographic area in which, or customers to whom,
carpet will be sold.

42982. The Department of General Services shall, to the extent
feasible and within existing resources, take appropriate steps,
including, but not limited to, revising relevant procurement rules,
to ensure that postconsumer carpet that is removed from state
buildings is managed in a manner consistent with the purpose of this
chapter.

42983. It is the intent of the Legislature to review any federal
law that has the purpose of managing postconsumer carpet in a manner
consistent with this chapter and to consider the extent to which the
program created by that federal law will, at a minimum, achieve the
same levels of landfill diversion and recycling of postconsumer
carpet in California as this chapter.