Bill Text: CA SB707 | 2023-2024 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Responsible Textile Recovery Act of 2024.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Passed) 2024-09-28 - Chaptered by Secretary of State. Chapter 864, Statutes of 2024. [SB707 Detail]

Download: California-2023-SB707-Amended.html

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Amended  IN  Senate  March 20, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill

No. 707

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Introduced by Senator Newman
(Coauthor: Senator Wiener)

February 16, 2023

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An act to add Section 42970.5 to, and to add Chapter 20.5 (commencing with Section 42984) to Part 3 of Division 30 of the Public Resources Code, relating to solid waste.

LEGISLATIVE COUNSEL'S DIGEST

SB 707, as amended, Newman. Responsible Textile Recovery Act of 2023.

The California Integrated Waste Management Act of 1989, administered by the Department of Resources Recycling and Recovery, generally regulates the disposal, management, and recycling of solid waste. The act establishes stewardship programs for various products, including, among others, carpet, mattresses, and pharmaceutical and sharps waste.

This bill would enact the Responsible Textile Recovery Act of 2023, which would require producers, as defined, either individually independently or through the creation of one or more stewardship organizations, to establish a stewardship program for the collection and recycling of a covered product. This bill would define a “covered product” to include any apparel, textile, or textile article that is unsuitable for reuse by a consumer in its current state or condition. condition, except as specified. The bill would require a program operator, as defined, to submit a complete stewardship plan to the department for review and approval, disapproval, or conditional approval. The bill would require the program operator to review the plan at least every 5 years after approval. The bill would also require a program operator to submit an annual report to the department. The bill would require all reports and records provided to the department to be provided under penalty of perjury. By expanding the scope of the crime of perjury, the bill would impose a state-mandated local program. The bill would restrict public access to certain information collected for the purpose of administering a stewardship program.

This bill would require the department to post on its internet website a list of producers that are in compliance with the requirements of the program. The bill would require the department to adopt regulations governing the program, and would authorize, beginning January 1, 2032, the department to adopt regulations establishing minimum recycling efficiency. The bill would require program operators to pay fees to the department, not to exceed the department’s actual and reasonable regulatory costs to implement and enforce the provisions of the act. The bill would establish the Textile Stewardship Recovery Fund in the State Treasury for the deposit of all moneys received from program operators and would make the moneys in the fund available to the department, upon appropriation by the Legislature, for purposes of the program. The bill would also authorize the department to impose administrative civil penalties for a violation of the program’s requirements, not to exceed $10,000 per day, or not to exceed $50,000 per day for an intentional, knowing, or reckless violation, as specified. The bill would create the Textile Stewardship Recovery Penalty Account in the fund for the deposit of penalties, which would be available for expenditure upon appropriation by the Legislature. The bill would also exempt textiles made from synthetic fibers, and carpet made from synthetic fibers, from the carpet stewardship program.

Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

This bill would make legislative findings to that effect.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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Bill Text

The people of the State of California do enact as follows:

SECTION 1.Section 42970.5 is added to the Public Resources Code, to read:

42970.5.

This chapter does not apply to textiles, as defined in Section 42984, made from synthetic fibers or carpet made from synthetic fibers.

SEC. 2.SECTION 1.

 Chapter 20.5 (commencing with Section 42984) is added to Part 3 of Division 30 of the Public Resources Code, to read:

CHAPTER  20.5. Responsible Textile Recovery Act of 2023

Article  1. General Provisions

42984.

 For purposes of this chapter, the following definitions apply:

(a) “Apparel” means clothing and accessory items intended for regular wear or formal occasions, including, but not limited to, undergarments, shirts, pants, skirts, dresses, overalls, bodysuits, costumes, vests, dancewear, suits, saris, scarves, tops, leggings, school uniforms, leisurewear, athletic wear, sports uniforms, everyday swimwear, formal wear, onesies, bibs, diapers, footwear, and everyday uniforms for workwear. Clothing items intended for regular wear or formal occasions does not include personal protective equipment or clothing items for exclusive use by the United States military.

(b) “Authorized collector” means a person or entity that has entered into an agreement with a program operator to collect covered products.

(c) “Authorized sorter” means a person or entity that has entered into an agreement with a program operator to sort covered products collected by authorized collectors.

(d) “Authorized repair business” means a person or entity that has entered into an agreement with a program operator to repair covered products for resale after collection by an authorized collector or after sorting by an authorized sorter.

(e) “Brand” means a trademark, including both a registered trademark and an unregistered trademark, a logo, a name, a symbol, a word, an identifier, or a traceable mark that identifies a covered textile and identifies the owner or licensee of the brand.

(f) “Collection site” means a permanent or temporary location operated by an authorized collector at which covered products are collected and prepared for transport in accordance with the requirements of this chapter.

(g) “Consumer” means an owner of a covered product, including a person, business, corporation, limited partnership, nonprofit organization, or governmental entity, and includes the ultimate purchaser, owner, or lessee of a covered product, who is not, as to that covered product, the distributor, importer, producer, recycler, retailer, or stewardship organization.

(h) (1) “Covered Product” means any apparel, textile, or textile article that is unsuitable for reuse by a consumer in its current state or condition.

(2) “Covered product” does not include a product covered under the Used Mattress Recovery and Recycling Act (Chapter 21 (commencing with Section 42985)).

(i) “Department” means the Department of Resources Recycling and Recovery or a successor agency.

(j) “Distributor” means a company that has a contractual relationship with one or more producers to market and sell covered textiles to a retailer.

(k) “Importer” means either of the following:

(1) A person qualifying as an importer of record for purposes of Section 1484(a)(2)(B) of Title 19 of the United States Code with regard to the import of a covered textile that is sold, distributed for sale, or offered for sale in or into the state that was manufactured or assembled by a company outside of the United States.

(2) A person importing into the state for sale, distributing for sale, or offering for sale in the state a covered textile that was manufactured or assembled by a company physically located outside of the state.

(l) “Local jurisdiction” means a city, county, city and county, or a regional agency formed pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the Government Code or Article 3 (commencing with Section 40970) of Chapter 1 of Part 2 of this code, or a special district that provides solid waste collection services.

(m) “Mail-back program” means a method of collecting covered products using prepaid, preaddressed mailing envelopes that are reusable, recyclable, or compostable.

(n) “Person” has the same meaning as set forth in Section 40170.

(o) (1) “Producer” means a person who manufactures a covered product and who owns or is the licensee of the brand or trademark under which that covered product is sold, offered for sale, or distributed for sale in or into the state.

(2) If there is no person in the state who is the producer for purposes of paragraph (1), the producer of the covered product is the owner of a brand or trademark or, if the owner is not in the state, the exclusive licensee of a brand or trademark under which the covered product is sold, imported for sale, offered for sale, or distributed for sale in or into the state. For purposes of this subdivision, an exclusive licensee is a person holding the exclusive right to use a trademark or brand in the state in connection with the manufacture, sale, or distribution for sale in or into the state of the covered product.

(3) If there is no person in the state who is the producer for purposes of paragraph (1) or (2), the producer of the covered product is the person who sells, offers for sale, or is the importer or distributor of the covered textile in or into the state for sale in or into the state.

(4) For purposes of this chapter, the sale of a covered textile shall be deemed to occur in the state if the covered textile is delivered to the consumer in the state.

(5) “Producer” does not include a seller of secondhand apparel, secondhand textiles, or secondhand textile articles.

(p) “Program operator” means a producer, or a stewardship organization on behalf of a group of producers, which is responsible for implementing a stewardship program in accordance with the requirements of this chapter.

(q)“Recycler” means a person or entity who recovers fiber, yarn, or fabric and reuses or reprocesses that recovered fiber, yarn, or fabric into new, usable products.

(r)

(q) “Recycling” has the same meaning as set forth in subdivision (a) of Section 25121.1 of the Health and Safety Code. “Recycling” does not include any of the following:

(1) Combustion.

(2) Incineration.

(3) Energy generation.

(4) Fuel production.

(5) Beneficial reuse in the construction and operation of a solid waste landfill, including use of alternative daily cover.

(6) Other forms of disposal, as defined in subdivision (b) of Section 40192.

(s)

(r) “Recycling efficiency rate” means the ratio of the weight of covered products recycled by a program operator to the weight of those covered products collected by the program operator.

(t)

(s) “Repair” means any alteration or improvement of damaged covered materials deemed worth the cost of repair by criteria established by the stewardship plan, including, but not limited to, any of the following:

(1) Washing at a commercial laundry.

(2) Upcycling, redesign, and repurposing.

(3) Mending rips, holes, seams, and hems.

(4) Removing and repairing surface damages, such as pilling, stain removal, or abrasion.

(5) Securing and reattaching buttons and other fastenings.

(6) Dying, redying, overdying, or printing of images on covered products.

(u)

(t) “Retailer” means a person who sells or offers for sale a covered product in or into the state to a person through any means, including, but not limited to, sales outlets, catalogs, the telephone, the internet, or any electronic means.

(v)

(u) “Secondhand apparel” means any apparel items that has been previously owned by a consumer.

(w)

(v) “Secondhand textile” means a usable textile item that has been previously owned by a consumer.

(x)

(w) “Secondhand textile article” means a usable textile article that has been previously owned by a consumer.

(y)

(x) “Secondhand markets” means a retailer who sells secondhand apparel, secondhand textiles, or secondhand textile articles, including, but not limited to, thrifts, online resale platforms, and flea markets.

(z)

(y) “Stewardship organization” means an organization exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986 (26 U.S.C. Sec. 501(c)(3)) that is established by a group of producers in accordance with this chapter to develop and implement a stewardship program.

(aa)

(z) “Stewardship plan” or “plan” means a plan developed by program operator pursuant to this chapter for the collection, transportation, repair, recycling, and the safe and proper management of covered products.

(ab)

(aa) “Stewardship program” means a program established by a program operator pursuant to this chapter for the free at drop off, convenient, and safe collection, transportation, repair, recycling, and otherwise proper management of covered products.

(ac)

(ab) “Textile” means any item made in whole or in part from a natural, manmade, or synthetic fiber, yarn, or fabric, and includes, but is not limited to, leather, cotton, silk, jute, hemp, wool, viscose, nylon, or polyester. “Textile” does not include disposable hygiene products made from paper, including, but not limited to, toilet paper, paper towels or tissues, or disposable absorbent hygiene products.

(ad)

(ac) “Textile articles” means textile goods of a type customarily used in households and businesses, and include, but are includes, but is not limited to, apparel, accessories, handbags, backpacks, draperies, shower curtains, furnishings, upholstery, beddings, bedding, towels, napkins, and tablecloths. “Textile articles” does not include any of the following:

(1) Either of the following items regulated under the Safer Consumer Products Program (Chapter 55 (Commencing with Section 69501) of Division 4.5 of Title 22 of the California Code of Regulations):

(A) Carpets and rugs.

(B) Treatments containing polyfluoroalkyl for use on converted textiles or leathers.

(2) Component parts from a vehicle, as defined in Section 670 of the Vehicle Code, including, but not limited to, an off-highway motor vehicle, as defined in Section 38012 of the Vehicle Code, such as seats and carpets or synthetic flooring.

(3) Component parts from a vessel, as defined in Section 21 of the Harbors and Navigation Code, such as seats, synthetic flooring, and boat covers.

(4) Filtration media and filter products used in industrial applications, including, but not limited to, chemical or pharmaceutical manufacturing, and environmental control technologies.

(5) Textile articles used in or for laboratory analysis and testing.

(6) Component parts from an aircraft, as defined in Section 21012 of the Public Utilities Code.

(7) Stadium shades or other architectural fabric structures. For purposes of this subparagraph, “architectural fabric structure” means a permanent fabric structure that is intrinsic to a building’s design or construction.

(ad) “Textile recycler” means a person or entity that recovers fiber, yarn, or fabric and reprocesses that recovered fiber, yarn, or fabric into new, usable products.

42984.1.

 (a) The department, acting in accordance with Article 1 (commencing with Section 11340) to Article 8 (commencing with Section 11350), inclusive, of the Administrative Procedure Act, as set forth in Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, shall adopt regulations to implement this chapter with an effective date of no earlier than December 31, 2025.

(b) Beginning January 1, 2032, the department may adjust, through regulations adopted by the department, the minimum required collection sites to ensure that consumers have sufficient and convenient access to collection sites if the department determines, after consultation with program operators and the advisory committee, that an adjustment will increase the collection of covered products.

(c) Beginning January 1, 2032, the department may establish, through regulations adopted by the department, a minimum recycling efficiency rate for covered products collected and recycled by program operators. The department may, if it determines necessary, establish different recycling efficiency rates for different covered products.

(d) (1) No later than 90 days after the effective date of regulations adopted pursuant to this section, the department shall create appoint an advisory body committee for the purposes of consulting with producers and stewardship organizations with approved plans. Membership in the advisory committee may include, but is not limited to, representatives from local governments, recyclers, retailers, authorized collectors, authorized sorters, authorized repair businesses, nongovernmental organizations, environmental organizations, community-based justice and public health organizations, and the solid waste industry.

(2) Participation on the advisory body committee shall be voluntary.

(3) The advisory body committee is not a state body for purposes of as that term is used in Section 11121 of the Government Code, but shall provide advanced public notice about meetings, allow public participation in all meetings, and vote on written recommendations at public meetings.

Article  2. Producers

42984.2.

 (a) In order to comply with the requirements of this chapter, a producer may establish and implement a stewardship program independently, or as part of a group of producers through membership in a stewardship organization exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986 (21 U.S.C. 501(c)(3)). Producers may establish one or more stewardship organizations to comply with the requirements of this chapter.

(1) A producer shall not sell, distribute for sale, offer for sale, or import for sale a covered product in or into this state unless the producer is in compliance with this chapter and any regulations in effect and adopted pursuant to Section 42984.1.

(2) Every producer shall, no later than 180 days after the effective date of this chapter, notify all persons through which it is selling, distributing, importing, or offering for sale a covered product in or into the state for sale in or into the state whether it will comply with this chapter individually or through a stewardship organization.

(3) Each producer covered under a stewardship organization shall register with that stewardship organization in accordance with the procedures and requirements established by that stewardship organization and shall comply with those procedures and requirements.

(b) A producer is not in compliance with this chapter and is subject to penalties pursuant to Article 7 (commencing with Section 42984.15) if, commencing two years from the adoption of regulations pursuant to Section 42984.1, a covered product sold or offered for sale by the producer is not subject to an approved stewardship plan that has been approved by the department pursuant to Section 42984.5.

42984.3.

 (a) No later than 180 days after the effective date of this chapter, individual producers shall provide to the department, in a form and manner established by the department, a list of covered products and brands of covered products that the producer sells, distributes for sale, imports for sale, or offers for sale in or into the state.

(b) A producer shall update the list described in subdivision (a) and provide the updated list to the department on or before January 15 of each year or upon request of the department.

Article  3. Program Operators

42984.4.

 (a) (1) A program operator shall include as a collection site under its stewardship program any entity that offers in writing to participate in the stewardship program and agrees to comply with any program operator requirements that are consistent with that program operator’s approved stewardship plan, even if the minimum thresholds described in subdivision (e) of Section 42984.7 as applicable, have been achieved.

(2) A program operator shall include as a collection site under its stewardship program any local jurisdiction that offers in writing to participate in the stewardship program and agrees to comply with any program operator requirements that are consistent with that program operator’s approved stewardship plan, even if the minimum thresholds described in subdivision (e) of Section 42984.7, as applicable, have been achieved.

(3) A program operator shall include the offering entity or local jurisdiction as a collection site in the stewardship program within 90 days of receiving the written offer to participate, confirming that the offering entity will comply with any program operator requirements that are consistent with that program operator’s approved stewardship plan, even if the minimum thresholds described in subdivision (e) of Section 42984.7, as applicable, have been achieved.

(4) The program operator shall not be required to respond to offers pursuant to this paragraph until the program operator’s stewardship plan has been approved by the department.

(b) A program operator may suspend or terminate a collection site that does not comply with all applicable state, federal, or municipal laws and regulations or adhere to the rules and conditions imposed by the program operator pursuant to paragraph (5) of subdivision (g) of Section 42984.7.

(c) A collection site shall be operated to ensure that covered products are collected safely and handled in accordance with all applicable state, federal, and municipal laws and regulations and the rules and conditions of the stewardship plan. Authorized collectors may divert usable apparel, textiles, and textile articles without damage for sale in domestic secondhand markets.

(d) A program operator shall require all contractors to pay the state minimum wage.

Article  4. Stewardship Plan for Covered Products

42984.5.

 (a) Within 12 months of the effective date of the regulations adopted by the department pursuant to Section 42984.1, a program operator shall develop and submit to the department a complete stewardship plan, in accordance with the requirements of this chapter, for the collection, transportation, repair, sorting, recycling, and the safe and proper management of covered products in the state. No program operator serving more than one producer may limit its stewardship plan for covered products to the covered products of the producers participating in that stewardship program.

(b) The department shall review the stewardship plan for compliance with this chapter and shall approve, disapprove, or conditionally approve the plan within 120 days of receipt of the plan. The department may consult with or submit a stewardship plan for review to the Department of Toxic Substances Control if the department determines it is necessary for making a determination of approval of a stewardship plan. If the department consults with the Department of Toxic Substances Control, then the department shall approve, disapprove, or conditionally approve the plan within 180 days of receipt of the plan.

(c) If the department disapproves a stewardship plan submitted by a program operator, the department shall explain how the stewardship plan does not comply with this chapter and provide written notice to the program operator within 30 days of disapproval. The program operator may resubmit to the department a revised stewardship plan within 60 days of the date the written notice was issued, and the department shall review the revised stewardship plan within 90 days of resubmittal. If a revised stewardship plan is disapproved by the department, a producer operating under the stewardship plan shall not be in compliance with this chapter until the department approves a stewardship plan submitted by a program operator that covers the producer’s products.

(d) Within 24 months of the effective date of the regulations adopted by the department pursuant to Section 42984.1, a program operator shall have a complete stewardship plan approved by the department and each producer shall be subject to an approved stewardship plan in order to be in compliance with this chapter.

(e) The approved plan shall be a public record, except that financial, production, financial or sales data reported to the department by the program operator is not a public record for purposes of the California Public Records Act (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code) and shall not be open to public inspection. The department may release financial, production, or sales data in summary form only so the information cannot be attributable to a specific producer or distributor or to any other entity.

42984.6.

 (a) Within 12 months of the approval of the stewardship plan by the department pursuant to Section 42984.5, a program operator shall fully implement its stewardship program.

(b) An individual producer or a program operator may petition the department to investigate a noncompliant producer, and the department shall respond to the petition in a timely manner.

42984.7.

 A stewardship plan for covered products shall include all of the following:

(a) The names of producers and brands of covered products covered under the stewardship plan.

(b) A description of the consultative process by which the program operator consulted with the advisory body committee created pursuant to subdivision (d) of Section 42984.1 to receive advice on the development and implementation of the stewardship plan, including all correspondence between the program operator and the advisory committee and a detailed explanation of how and why the program operator decided to adopt or not adopt each recommendation by the advisory committee.

(c) (1) A description of the method to establish and administer a means for fully funding the stewardship program in a manner that equitably distributes the stewardship program’s costs among the producers that are part of the stewardship organization. organization that reflects production and sales volumes and the cost of repairing, recycling, or otherwise managing covered products. For producers that elect to meet the requirements of this chapter individually, without joining a stewardship organization, a description of the proposed method to establish and administer a means for fully funding the stewardship program.

(2) The stewardship plan shall include a stewardship program budget, for the next three calendar years, which includes a funding level and anticipated revenues and costs sufficient to cover the budgeted costs, including, but not limited to, administrative costs, operational costs, and capital costs, to operate the stewardship program in a prudent and responsible manner. Administrative costs shall include the department’s anticipated actual, reasonable, and direct regulatory costs to implement and enforce this chapter as the criteria for all the costs are defined in the regulations adopted pursuant to Section 42984.1. For purposes of this paragraph, stewardship program implementation begins once the department approves a program operator’s stewardship plan, except the department’s costs shall include actual, reasonable, and direct regulatory development costs and other startup regulatory costs incurred prior to stewardship plan submittal and approval.

(d) A description of methodologies for measuring, and meeting or exceeding the recycling efficiency rate established by the department pursuant to subdivision (c) of Section 42984.1, as applicable. If a minimum recycling rate has not been established by the department, a program operator shall instead include a target recycling efficiency rate for covered products recycled by the program operator.

(e) A description of how the program operator will provide for a free and convenient collection system for covered products in each county of the state that meets both of the following requirements:

(1) A minimum of 10 collection sites per county or one collection site per 25,000 people, whichever is greater, except as identified in this paragraph.

(A) A county with a population of 18,000 and under, as reported annually by the Department of Finance, shall have a minimum of three collection sites.

(B) A county with a population of between 18,001 and 50,000, as reported annually by the Department of Finance, shall have a minimum of four collection sites.

(C) A county with a population between 50,001 and 100,000, as reported annually by the department of Finance, shall have a minimum of eight collection sites.

(2) The collection sites in each county shall be spread throughout the county to facilitate widespread access and convenience.

(f) A description of how a program operator and its authorized collection sites will allow a consumer to drop off covered products at a collection site at no charge.

(g) A description of how collection sites will be authorized and managed, including all of the following:

(1) A description of the process by which entities and local jurisdictions can request to be a collection site pursuant to Section 42984.4.

(2) A description of how the program operator will provide to collection sites at no cost the appropriate containers for covered products, training, signage, safety guidance, and educational materials.

(3) An explanation of the process by which the program operator will provide for the collection and transport of covered products from the collection sites to an authorized sorter, or directly to an authorized repair business, or recycling facility.

(4) A description of how the program operator will maintain all collection and transport records and make them available to the department upon request.

(5) A list of all proposed rules, conditions and requirements for authorized collectors, authorized sorters, and authorized repair businesses, including a template proposed agreement for each of those types of entities, as applicable.

(h) A description of the process by which covered products will be sorted, processed, and recycled following collection at collection sites, including all of the following:

(1) A description of how covered products will be handled and managed according to the waste hierarchy as defined in Section 40051.

(2) A description of how covered products will be sorted by authorized sorters, including a description of how the flow of covered products to and from an authorized sorter will be tracked.

(3) A description of how the program operator will maximize the repair and recycling of all covered products.

(4) A description of how the program operator will minimize disposal of covered products collected by the program operator.

(5) A description of how the program operator will prioritize the use of sorting, repair, and recycling facilities located closer to the point of collection to minimize transportation-related emissions and increase accountability for the ultimate disposition of the covered products.

(i) A comprehensive statewide education and outreach program designed to educate consumers and promote participation in the collection, repair, and recycling program offered by the program operator. At a minimum, the comprehensive statewide education and outreach program shall include all of the following:

(1) A description of the education and communications strategy being implemented to effectively promote participation in the stewardship program and provide the information necessary for effective participation by consumers, retailers, local jurisdictions, and others.

(2) An internet website that publicizes the location of collection sites and provides information to consumers on how to drop covered products at the free and convenient network of collection sites offered by the stewardship program, including any information reasonably necessary to safely and conveniently access the collection, repair, and recycling services offered by the program operator.

(3) All signage and materials required for collection sites by the program operator, and the method by which collection sites can access replacement materials at no cost to the collection site.

(4) A description of efforts to support participation by all California communities, including a description of efforts to communicate with consumers in languages other than English.

(5) A description of strategies, goals, and metrics used to determine the success of the statewide education and outreach program.

(A) The statewide education and outreach program shall promote the safe and proper management of covered products, including source reduction, environmentally preferable purchasing, and repairing covered products. This includes education and training for authorized collectors to incentivize domestic resale of usable textiles.

(B) The statewide education and outreach program shall not promote the disposal of covered products in a manner inconsistent with the services offered by the stewardship plan.

(C) The statewide education and outreach plan shall include information for consumers about how to avoid improper disposal of covered products.

(6) (A) A description of how the program operators will annually assess and evaluate the efficacy of the comprehensive statewide education and outreach program and periodically adjust strategies to maximize participation in the stewardship program.

(B) Any program operator serving more than one producer shall coordinate with other program operators on the education and outreach programs that they implement pursuant to this subdivision.

(j) Coordination with, and a description of the efforts and methods used to coordinate activities with, all of the following entities who are responsive to a request from the program operator:

(1) Other program operators.

(2) Existing textile collection, repair, and recycling programs.

(3) Community-based organizations that contact the program operator and that are qualified to run or support collection events.

(k) Consultation with the California Environmental Protection Agency’s Environmental Justice Task Force regarding methods to supplement those of the program operator to collect covered products for repair or recycling in areas and communities that face unique challenges associated with proper waste management, such as poverty, language barriers, and illegal disposal.

(l) A contingency plan in the event the stewardship plan expires, is disapproved, or is revoked. The contingency plan shall describe how the stewardship plan objectives can be carried out in the absence of a plan, either by the program operator or through an entity such as an escrow company.

(m) Develop a program in coordination with other program operators to support commercial laundries for laundering-covered products that includes funding for microfiber filtration devices.

(n) Develop strategies to address counterfeit goods that are illegal for secondhand markets to resell pursuant to Section 350 of the Penal Code.

(o) Develop strategies to address green design challenges for covered products, such as, but not limited to compostability, reduction and removal of harmful chemicals, microfiber shedding, and mixed material blends.

42984.8.

 (a) In preparing a stewardship plan pursuant to Section 42984.7, and any updates to the plan pursuant to Section 42984.9, a program operator shall engage in a consultative process with the advisory body committee created by the department pursuant to subdivision (d) of Section 42489.1. A program operator shall provide sufficient time and shall consider all written recommendations from the advisory body committee during the plan development process.

(b) A program operator shall consider the advisory body’s committee’s recommendations. If the producer or stewardship organization decides not to incorporate the advisory body’s committee’s written recommendations into the plan, the program operator shall provide a brief written explanation to the department and the advisory body committee that explains the basis for the decision and also indicates whether the program operator plans to incorporate the recommendations into a subsequent stewardship plan, subsequent amendments to the plan, or a subsequent annual report.

42984.9.

 (a) A program operator shall review its stewardship plan at least every five years after approval by the department and determine whether revisions to the plan are necessary.

(b) If a program operator determines that revisions to the plan are necessary, the program operator shall submit to the department a revised plan for review and approval employing the procedures set forth in Section 42984.5. The stewardship organization shall submit the revised plan pursuant to this subdivision within 90 days of the review deadline outlined pursuant to subdivision (a).

(c) If a program operator determines that no revisions to the plan are necessary, the program operator shall send a letter to the department no later than 30 days after the review deadline outlined in subdivision (a), explaining that the program operator has reviewed the plan, consulted with the advisory committee, and determined that no revisions are needed. The department may disapprove the program operator’s determination within 30 days of receipt of that determination if the department concludes that the program operator cannot implement the objectives of this chapter without revising the stewardship plan. In the event the department disapproves the program operator’s determination, the program operator shall submit to the department a revised stewardship plan for review and approval in accordance with Section 42984.5. The program operator shall submit the revised plan pursuant to this subdivision within 90 days of receipt of the department’s disapproval.

Article  5. Financial Provisions

42984.10.

 (a) No later than 90 days before a budget is submitted to the department, the department shall notify each program operator of each agency’s respective anticipated actual and reasonable regulatory costs directly related to implementing and enforcing this chapter in relation to the program operator’s activities as the criteria for those costs are defined in the regulations adopted pursuant to Section 42984.1. This may include the actual and reasonable costs associated with regulatory regulation development pursuant to Section 42984.1 and other startup activities prior to stewardship plan submittal and approval, relative to the role of the program operator’s program compared to other programs.

(b) Program operators shall, on a schedule determined by the department, pay the department fees incurred to reimburse the department for incurred costs as described in subdivision (a). The fees shall not exceed the department’s actual and reasonable regulatory costs to implement and enforce this chapter. The fees shall be paid by each producer, either individually, if the producer is complying with the requirements of this chapter individually, or through a stewardship organization.

(c) (1) The department shall deposit all moneys received from a program operator pursuant to this section into the Textile Stewardship Recovery Fund, which is hereby established in the State Treasury.

(2) Upon appropriation by the Legislature, moneys in the Textile Stewardship Recovery Fund shall be expended by the department to implement and enforce this chapter, as well as to reimburse any outstanding loans made from other funds used to finance regulation, development, and startup costs of the department’s activities pursuant to this chapter.

(3) The money in the Textile Stewardship Recovery Fund shall not be expended for any other purpose.

42984.11.

 Each producer shall, either individually or through a stewardship organization, pay all administrative and operational costs associated with establishing and implementing the stewardship program in which it participates, including, but not limited to, the cost of collection, transportation, sorting, repairing, recycling, and the safe and proper management of covered products.

Article  6. Records, Audits, and Reports

42984.12.

 (a) A program operator shall keep board minutes, books, and records that clearly reflect the activities and transactions of the program operator.

(b) A program operator shall retain, at the program operator’s expense, an independent public accountant, certified in the United States, to annually audit the accounting books of the program operator.

(c) The program operator shall include the audit in its annual report submitted pursuant to Section 42984.13 commencing within 18 months of plan approval by the department. The department shall review the audit for compliance with this chapter and consistency with the program operator’s stewardship plan. The department shall notify the program operator of any compliance issues or inconsistencies.

(d) The department may conduct its own audit if it determines that an audit is necessary to enforce the requirements of this chapter and that the audit conducted pursuant to subdivision (b) is not adequate for this purpose. The program operator may obtain copies of the department’s audit upon request.

(e) The department shall not publicly disclose any confidential proprietary or trade secret information in an audit conducted pursuant to this section.

42984.13.

 A program operator shall annually submit to the department, in the form and manner, and by the date, determined by the department, an annual report, which the department shall make publicly available that includes all of the following information for the preceding calendar year:

(a) The program operator’s costs and revenues.

(b) (1) An estimate of the quantity of covered products sold in or into the state by the producers covered by the program operator’s stewardship plan, as determined by the best available commercial information, potentially including the application of California population data to the national sales information and the discarded covered textiles collected for repair and recycling through the stewardship program.

(2) The estimate described in paragraph (1) shall include an estimate of covered products sold into the state, broken down by fiber type and United States Harmonized Tariff Schedule (HTS) number.

(c) A list of the stewardship program’s collection sites, by name, location, and type.

(d) The total weight of covered products, respectively, that were collected. collected, broken down by fiber type categories.

(e) A list of each authorized sorter, authorized repair business, and textile recycling facility used by the stewardship program, including both of the following:

(1) Name and location.

(2) Total weight of covered products handled by each location.

(f) An updated list of the names and corporate mailing addresses of producers, as described in subdivision (a) of Section 42984.7 and brands of covered textiles covered under the stewardship plan.

(g) The total weight and number of covered textiles sold in or into the state attributed to a producer, who is a registered participant of the program operator’s plan, which are collected in the state and repaired or recycled by the program operator during the preceding calendar year, including a description of the methodology and information used to determine and calculate these values.

(h) A complete accounting of the ultimate disposition of all covered products collected by the program operator, including the total weight of covered products that were repaired and recycled.

(i) A description of methods used to collect, transport, repair, and recycle covered products by the program operator.

(j) A description of outreach efforts and education, including, but not limited to, education and outreach provided to consumers, collection sites, manufacturers, distributors, and retailers by the program operator for the purpose of promoting the collection, repair, reuse and recycling of covered products. This includes messaging on environmentally preferable purchasing and repairing covered textiles.

(k) Findings from the evaluation of the comprehensive statewide education and outreach program required by paragraph (8) of subdivision (i) of Section 42984.7.

(l) A description of consultation with the California Environmental Protection Agency’s Environmental Justice Task Force and other relevant stakeholders for collecting covered textiles for repair and recycling in areas and communities that face unique challenges.

(m) A description of actions taken by the program operator to pay all administrative and operational costs associated with establishing and implementing the stewardship program.

(n) A report on activities the program operator has undertaken to prioritize the use of sorting, repair, and recycling facilities located closer to the point of generation to minimize transportation emissions and increase accountability for the ultimate disposition of collected covered products.

(o) The progress toward attaining the goals included in the program operator’s stewardship plan.

(p) Any modifications or revisions to the stewardship plan.

(q) Any other information deemed relevant by the program operator for the department to determine compliance with the approved stewardship plan.

(r) Any other information required by regulations promulgated pursuant to Section 42984.1.

42984.14.

 (a) No later than 120 days after the date the department receives the annual report submitted by a program operator pursuant to Section 42984.13, the department shall notify the program operator if the annual report is compliant or noncompliant.

(b) (1) If the department determines that the annual report is noncompliant due to failure to meet the requirements of Section 42984.13, the program operator shall resubmit a revised annual report addressing the department’s written reasons for its decision within 30 days of the department’s response.

(2) The department, within 60 days from the date a program operator resubmits a revised annual report, shall determine whether the annual report is compliant or noncompliant.

(3) If the department determines a revised annual report submitted pursuant to paragraph (1) is noncompliant, the program operator may submit only one additional revised annual report, subject to review in accordance with paragraph (2).

Article  7. Enforcement

42984.15.

 (a) Within 24 months of the effective date of regulations pursuant to Section 42984.1, and on or before July 1 of each year thereafter, the department shall post on its internet website a list of producers that are in compliance with this chapter. The department shall list, as appropriate, the reported brands of covered products for each producer.

(b) A producer that is not listed on the department’s internet website pursuant to subdivision (a) that demonstrates compliance with this chapter before the next list is posted by the department may either be added to the internet website or be provided a certification letter from the department stating that the producer of a covered product is in compliance with this chapter.

(c) (1) A retailer, importer, or distributor shall monitor the department’s internet website to determine if a producer, brand, or covered product is in compliance with this chapter for that brand of covered product.

(2) Except as provided in subdivision (d), on and after the date a stewardship plan is approved by the department pursuant to Section 42984.5, a retailer, importer, or distributor shall not sell, distribute, offer for sale, or import a covered product in or into the state for sale in the state unless the producer of the covered product is listed as in compliance pursuant to this section for that brand and covered product.

(d) (1) Notwithstanding paragraph (2) of subdivision (c), a retailer, importer, or distributor may sell, offer for sale, import, or distribute a covered product if, on the date the retailer or distributor sells or offers for sale the covered product in or into the state, the producer, brand, or covered product was listed as compliant on the department’s internet website.

(2) Notwithstanding paragraph (2) of subdivision (c), a retailer or distributor may, for any existing inventory in stock before the initial list was posted by the department pursuant to subdivision (a), sell or distribute that inventory for sale in or into the state.

(e) (1) If the department determines a producer is not in compliance with this chapter, the department shall remove the producer, along with its brands and covered products, from the list of compliant producers posted on the department’s internet website pursuant to subdivision (a).

(2) The department shall list on its internet website a producer, along with its brands and covered products, if the department subsequently determines that the producer is in compliance with this chapter.

42984.16.

 (a) The department may impose an administrative civil penalty on a producer, program operator, stewardship organization, manufacturer, distributor, retailer, or importer that is in violation of this chapter. The amount of the administrative civil penalty shall not exceed ten thousand dollars ($10,000) per day, but, if the violation is intentional, knowing, or reckless, the department may impose an administrative civil penalty of not more than fifty thousand dollars ($50,000) per day. The department shall establish, through regulations adopted by the department pursuant to Section 42984.1, a process that shall include an informal hearing process by which the penalties will be assessed.

(b) The department shall deposit all penalties collected pursuant to this section into the Textile Stewardship Recovery Penalty Account, which is hereby created in the Textile Stewardship Recovery Fund. These moneys shall be available for expenditure upon appropriation by the Legislature.

(c) This chapter does not limit or restrict the department’s enforcement authority pursuant to Chapter 6.5 (commencing with Section 25100) of Division 20 of the Health and Safety Code and its implementing regulations, if any.

(d) The Administrative Adjudication Bill of Rights, as set forth in Chapter 4.5 (commencing with Section 11425.10) of Part 1 of Division 3 of Title 2 of the Government Code, applies to hearings conducted under this chapter and mandates minimum due process.

42984.17.

 (a) Upon a written finding that a producer, program operator, stewardship organization, manufacturer, distributor, retailer, or importer site has not met a material requirement of this chapter, in addition to any other penalties authorized under this chapter, the department may, after affording the entity a reasonable opportunity to respond to, or rebut, the finding, take any of the following actions to ensure compliance with the requirements of this chapter:

(1) Revoke the program operator’s stewardship plan approval or require the program operator to resubmit the plan.

(2) Remove the producer, along with its brands and covered textiles from the department’s list of compliant producers, as specified in Section 42984.15.

(3) Impose additional compliance reporting requirements.

(4) Post the noncompliant entity onto a list of noncompliant entities.

(b) If a stewardship plan is revoked pursuant to paragraph (1) of subdivision (a) or terminated by the program operator that submitted the plan, a producer no longer subject to that plan may, without being subject to administrative civil penalties pursuant to Section 42984.16, sell or offer for sale covered products in or into the state for a period of up to one year after the stewardship plan was terminated or revoked if the producer continues to operate under the most recent approved stewardship plan to which the producer was subject.

42984.18.

 (a) A producer, program operator, stewardship organization, manufacturer, distributor, retailer, or importer shall do both of the following:

(1) Upon request, provide the department with reasonable and timely access, as determined by the department, to its facilities and operations, as necessary to determine compliance with this chapter.

(2) Upon request, provide the department with relevant records necessary to determine compliance with this chapter.

(b) The records required by this chapter shall be maintained and accessible for three years. All reports and records provided to the department pursuant to this chapter shall be provided under penalty of perjury.

(c) (1) The department may impose administrative civil penalties pursuant to Section 42984.16 on a producer, program operator, stewardship organization, manufacturer, distributor, retailer, or importer that fails to provide the department with the access required pursuant to this section.

(2) The department may post a notice on the department’s internet website that is maintained pursuant to Section 42984.15 that a producer that fails to provide the department with access pursuant to this section, along with the producer’s brands and covered products, is no longer in compliance with this chapter.

42984.19.

 After the time for judicial review under Section 11523 of the Government Code has expired, the department may apply to the small claims court or superior court, depending on the jurisdictional amount and any other remedy sought, in the county where the penalties, restitution, or other remedy was imposed by the department, for a judgment to collect any unpaid civil penalties or restitution or to enforce any other remedy provided by this chapter. The application, which shall include a certified copy of the final agency order or decision, shall constitute a sufficient showing to warrant the issuance of the judgment. The court clerk shall enter the judgment immediately in conformity with the application. The judgment so entered shall have the same force and effect as and shall be subject to all the provisions of law relating to a judgment in a civil action and may be enforced in the same manner as any other judgment of the court. The court shall make enforcement of the judgment a priority.

Article  8. Antitrust Immunity

42984.20.

 (a) Except as provided in subdivision (c), an action specified in subdivision (b) that is taken by a program operator that relates to any of the following is not a violation of the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), the Unfair Practices Act (Chapter 4 (commencing with Section 17000) of Part 2 of Division 7 of the Business and Professions Code), or the Unfair Competition Law (Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code).

(b) Subdivision (a) applies to all of the following actions taken by a program operator:

(1) The creation, implementation, or management of a stewardship plan approved or conditionally approved by the department pursuant to Article 3 (commencing with Section 42984.4) and the determination of the types or quantities of covered products repaired, reused, recycled, or otherwise managed pursuant to a stewardship plan.

(2) The determination of the cost and structure of an approved stewardship plan.

(3) The establishment, administration, collection, or disbursement of a charge associated with funding the implementation of this chapter.

(c) Subdivision (a) does not apply to an agreement that does any of the following:

(1) Fixes a price of or for covered products, except for an agreement related to costs or charges associated with participation in a stewardship plan approved or conditionally approved by the department and otherwise in accordance with this chapter.

(2) Fixes the output or production of covered products.

(3) Restricts the geographic area in which, or customers to whom, covered products will be sold.

SEC. 3.SEC. 2.

 The Legislature finds and declares that Section 1 of this act, which adds Section 42984.5 of to the Public Resources Code, imposes a limitation on the public’s right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:

It is in the best interest of the public to provide limited protection of certain financial, production, and sales data of program participants, in order to protect the interests of businesses and the privacy of their data regarding their customers.

SEC. 4.SEC. 3.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.