CHAPTER 20. Product Stewardship for Carpets [42970. - 42983.5.]

Cal. Public Resources Code - PRC 20.

in effect

Cal. Public Resources Code - PRC § 42970. Section 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.

Cal. Public Resources Code - PRC § 42971. Section 42971.

For purposes of this chapter, and unless the context otherwise requires, the following definitions 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 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) “Carpet stewardship organization” or “organization” means either of the following: (1) An organization exempt from taxation under Section 501(c)(3) of the Internal Revenue Code of 1986 (26 U.S.C. Sec. 501(c)(3)) that is 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. (2) A carpet manufacturer that complies with this chapter as an individual manufacturer. (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 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 ) “Processor” means a company that uses a process, including, but not limited to, shredding, grinding, sheering, or depolymerization, to convert discarded whole carpet into finished recycled output that is ready to be utilized as an input material for manufacturing products. (m) “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. (n) “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 website or other similar electronic means. (o) “Sell” or “sales” means a transfer of title of a carpet for consideration, including a remote sale conducted through a sales outlet, catalog, or internet website 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. (p) “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.

Cal. Public Resources Code - PRC § 42972. Section 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) Achieve a 24-percent recycling rate for postconsumer carpet by January 1, 2020, and any other recycling rate established by the department pursuant to Section 42972.2. The carpet stewardship plan shall include quantifiable five-year goals and annual goals for how the recycling rate will be achieved and how the carpet stewardship organization or manufacturer plans to do the following: (A) Increase the weight of postconsumer carpet that is recycled and reduce the disposal of postconsumer carpet. (B) Increase the collection convenience for the recycling of postconsumer carpet and increase the collection of postconsumer carpet for recycling. (C) Expand and incentivize markets for products made from postconsumer carpet. (D) Increase processor capacity, including processor capacity in California. (E) Increase the recyclability of carpet. (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) (A) 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, the requirements of Section 42972.7, payment of fees pursuant to Section 42977, and incentive payments that will advance the purposes of this chapter, including incentives or grants to state-approved apprenticeship programs for training apprentice and journey-level carpet installers in proper carpet recycling practices. Any grants or subsidies provided for the recycling of postconsumer carpet shall be structured to incentivize the recycling of carpet materials that have the highest recyclability. The funding mechanism shall account for the need to provide the industry, including carpet installation contractors, with fair notice of changes to the amount of the carpet stewardship assessment established pursuant to subdivision (c). (B) Consistent with subparagraph (A), commencing with the fiscal year beginning July 1, 2025, and for each fiscal year thereafter, the program shall allocate 8 percent of assessments collected pursuant to subdivision (c), 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. (C) 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. (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 consistent with Generally Accepted Accounting Principles (GAAP), which shall be reviewed by the department. (7) (A) Include a contingency plan should the plan expire without approval of a new plan or should the plan be revoked. The contingency plan shall demonstrate how the activities in the plan will continue to be carried out in the absence of a plan by the department through some other entity, such as an escrow company, consistent with Section 42972.7. (B) 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 carpet stewardship plan, subject to the direction of the department, until that time as a new carpet stewardship plan is approved. Upon the carpet stewardship plan expiration or revocation of the carpet stewardship plan, the balance of the carpet stewardship organization’s operating reserves collected pursuant to this chapter 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 carpet stewardship plan. (8) A mechanism for submitting a successor carpet stewardship plan to the department no less than 12 months before the expiration of the submitted carpet stewardship plan. If a carpet stewardship organization fails to submit a successor carpet stewardship plan at least 12 months before the expiration of the carpet stewardship plan, then the carpet stewardship organization shall, upon the expiration of the submitted carpet stewardship plan, cease being the stewardship organization, for purposes of this chapter. (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) In recognition that the material makeup and construction of postconsumer carpet affects the technical and economic recyclability of carpet, the funding mechanism required pursuant to paragraph (4) of subdivision (a) shall establish and be composed of a system of differential assessments that takes into account the financial burden that a particular carpet material has on the stewardship program, and the amount of postconsumer recycled content contained in a particular carpet. Based on market history and modeling, if a certain carpet material requires a higher subsidy to incentivize use in the marketplace, then that material shall have a proportionally higher assessment assigned to it. 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 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. (4) It is the intent of the Legislature that the amount of the assessment be reduced by the stewardship organization as the carpet stewardship program is implemented over time and becomes more efficient. (5) (A) If the amount of the assessment is insufficient to fund the carpet stewardship program, the stewardship organization shall submit a plan update to the department for approval, conditional approval, or disapproval to increase the assessment. (B) If the assessment generates a fund balance at the end of a program year that is greater than one year’s operating costs of the carpet stewardship program, the stewardship organization shall submit a plan update to the department for approval, conditional approval, or disapproval to reduce the assessment. (6) A carpet stewardship organization shall not expend funds from the assessment for any of the following purposes: (A) Penalties imposed pursuant to Section 42978. (B) Costs associated with litigation against the state. (C) Engineered municipal solid waste conversion, as defined in Section 40131.2, the use of cement kilns to burn carpet, or transformation, as defined in Section 40201. (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.

Cal. Public Resources Code - PRC § 42972.1. Section 42972.1.

(a) The Director of Resources Recycling and Recovery shall appoint members to an advisory committee, which shall make recommendations on carpet stewardship plans submitted to the department pursuant to Section 42972. The Speaker of the Assembly and the Senate Committee on Rules shall each appoint one additional member to the advisory committee. The advisory committee may be composed of, among others, individuals in the environmental community, the solid waste industry, and local government, public or private representatives involved in the collection, processing, and recycling of carpet, and other interested parties as determined by the Director of Resources Recycling and Recovery. The Director of Resources Recycling and Recovery shall appoint to the advisory committee one member who represents carpet manufacturers and at least one member who is a representative of either the Southern California Resilient Floor and Decorative Covering Crafts Joint Apprenticeship and Training Committee or the Northern California Floor Covering Finishing Trades Institute Joint Apprenticeship Training Committee. (b) A carpet stewardship organization or manufacturer, as applicable, shall provide to the advisory committee a copy of the carpet stewardship plan or amendments to the plan no less than 30 days before submitting the carpet stewardship plan or amendments to the plan to the department pursuant Section 42972. A carpet stewardship organization or manufacturer, as applicable, shall provide to the advisory committee a copy of the annual report required pursuant to Section 42976 no less than 30 days before submitting the annual report to the department. The advisory committee shall provide comments and recommendations to the carpet stewardship organization or manufacturer and to the department based on their review of the materials. (c) A carpet stewardship organization or manufacturer, as applicable, shall incorporate to the extent feasible the advisory committee’s recommendations into the carpet stewardship plan, amendments to the plan, or annual report before submitting the plan, amendments to the plan, or annual report to the department. If the carpet stewardship organization or manufacturer is unable to incorporate the recommendations, it shall provide a written explanation to the department and the advisory committee. The explanation shall detail whether the carpet stewardship organization or manufacturer plans to incorporate the recommendations into a subsequent carpet stewardship plan, subsequent amendments to the plan, or a subsequent annual report. (d) A member of the advisory committee shall serve without compensation, but shall be reimbursed for actual and necessary travel and other expenses incurred in the performance of his or her official duties.

Cal. Public Resources Code - PRC § 42972.2. Section 42972.2.

(a) The Legislature hereby declares that it is the goal of the state to reach a 24-percent recycling rate for postconsumer carpet by January 1, 2020, and to meet or exceed that rate continually thereafter. (b) No sooner than January 1, 2020, and no less frequently than every three years thereafter, the department shall review and may adjust the recycling rate and program goals set forth in paragraph (2) of subdivision (a) of Section 42972, based on information included in carpet stewardship plans and annual reports, other information provided by carpet stewardship organizations, and economic and any other relevant information.

Cal. Public Resources Code - PRC § 42972.3. Section 42972.3.

(a) The department may audit the carpet stewardship organization or an individual manufacturer annually. (b) It is a violation of this chapter for the carpet stewardship organization, manufacturer, or their respective agent who holds records to fail to produce, as part of a department audit or review of a third-party audit, documents or data that is requested by the department or documents or data that is required to be collected or generated to carry out operation of the carpet stewardship plan in the form and manner determined by the department.

Cal. Public Resources Code - PRC § 42972.7. Section 42972.7.

(a) (1) A carpet stewardship organization, as part of its carpet stewardship plan, shall set up a trust fund or an escrow account, into which it shall deposit all unexpended funds and ongoing consumer assessments, for use in accordance with this section in the event that the plan terminates or is revoked. (2) For purposes of this subdivision, “unexpended funds” means assessment money in the stewardship organization’s accounts that the stewardship organization is not already obligated to pay pursuant to a contract, claim, or similar mechanism. (b) If a carpet stewardship plan terminates or is revoked, the trustee or escrow agent of a trust fund or escrow account set up pursuant to subdivision (a) shall do both of the following, starting within 30 days: (1) Accept carpet stewardship assessment payments directly from manufacturers into the trust fund or escrow account that would have been made to the stewardship organization prior to the carpet stewardship plan’s termination or revocation. (2) Make payments from the trust fund or escrow account as the department shall direct, in writing, to implement the most recently approved plan. (c) If a new carpet stewardship plan has not been approved by the department within one year after termination or revocation, the department may make modifications to the previously approved plan, as it deems necessary, and continue to direct payments from the trust fund or escrow account in accordance with paragraph (2) of subdivision (b) to implement the modified plan. (d) A trustee or escrow agent in possession of assessment funds shall, as directed by the department, transfer those funds to a successor carpet stewardship organization with an approved plan.

Cal. Public Resources Code - PRC § 42973. Section 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.

Cal. Public Resources Code - PRC § 42973.5. Section 42973.5.

A carpet stewardship organization shall provide to the department all data necessary for the department to evaluate the effectiveness of the program as it is described in the carpet stewardship plan and in annual reports submitted by the carpet stewardship organization. This data shall include, but is not limited to, the costs of collection and of processing and recycling postconsumer carpet, and any other data necessary to determine whether the amount of the assessment, as proposed in the stewardship plan pursuant to subdivision (c) of Section 42972, will be sufficient to achieve the goals of this chapter and the goals established in the carpet stewardship plan.

Cal. Public Resources Code - PRC § 42973.7. Section 42973.7.

(a) A carpet stewardship organization shall include nonvoting board members with representation from the following types of entities: (1) A circular economy environmental nongovernmental organization. (2) A retailer that sells covered products. (3) A labor representative from a floor covering joint apprenticeship program in northern California that is approved by the Division of Apprenticeship Standards. (4) A labor representative from a floor covering joint apprenticeship program in southern 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 nonvoting members identified in subdivision (a) to participate in all board meetings.

Cal. Public Resources Code - PRC § 42973.9. Section 42973.9.

A carpet stewardship organization shall be responsible for a carpet stewardship plan and shall make decisions regarding the implementation of a carpet stewardship plan, consistent with this chapter. A carpet stewardship organization shall not delegate any responsibility of its board of directors, or any decisionmaking responsibility regarding a carpet stewardship plan, to a person who is not a member of its board of directors.

Cal. Public Resources Code - PRC § 42974. Section 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 website listing manufacturers that are in compliance with this chapter. (2) A manufacturer that is not listed on the department’s internet website 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 website 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 website. (e) If a carpet stewardship plan that was previously approved by the department pursuant to Section 42973 terminates or is revoked, the department may allow a manufacturer that is no longer subject to that plan because the plan terminated or was revoked to continue to sell carpet in California for a period of one year after the plan terminated or was revoked, without being subject to penalties pursuant to this section or Section 42978, if the manufacturer does either of the following: (1) The manufacturer continues to operate under the most recent approved carpet stewardship plan that the manufacturer was subject to and makes assessment payments to the trust fund or escrow account as provided for in paragraph (1) of subdivision (b) of Section 42972.7. (2) The manufacturer provides the department with an alternative carpet recycling plan governing its own products that are sold in California, and the department approves the manufacturer’s alternative carpet recycling plan.

Cal. Public Resources Code - PRC § 42975. Section 42975.

(a) In order to achieve compliance with this chapter, a carpet stewardship organization shall, on or before September 1 of each year, demonstrate to the department that it has achieved the amount and rates of recycling and a reduction in disposal of postconsumer carpet subject to its stewardship plan and 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, including progress in achieving the goals outlined in subparagraphs (A) to (E), inclusive, of paragraph (2) of subdivision (a) of Section 42972. (2) The quantifiable five-year goals and annual goals included in the carpet stewardship plan pursuant to paragraph (2) of subdivision (a) of Section 42972. (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 rates, the reductions in disposal 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.

Cal. Public Resources Code - PRC § 42976. Section 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.

Cal. Public Resources Code - PRC § 42977. Section 42977.

(a) The carpet stewardship organization submitting a carpet stewardship plan shall pay the department a quarterly 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 fees collected annually 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 pursuant to the schedule specified in subdivision (d). (d) A carpet stewardship organization subject to this section shall pay a quarterly fee to the department to cover the administrative and enforcement costs of the requirements of this chapter pursuant to subdivision (a) on or before July 1, 2012, and every three months thereafter and the applicable portion of the fee pursuant to subdivision (c) on July 1, 2012, and every three months thereafter through July 1, 2014. (e) The department shall deposit the fees collected pursuant to this section into the Carpet Stewardship Account created pursuant to Section 42977.1.

Cal. Public Resources Code - PRC § 42977.1. Section 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.

Cal. Public Resources Code - PRC § 42978. Section 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) Ten thousand dollars ($10,000) per day. (2) Twenty-five thousand dollars ($25,000) 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.

Cal. Public Resources Code - PRC § 42979. Section 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.

Cal. Public Resources Code - PRC § 42980. Section 42980.

If the department determines that a carpet stewardship organization or manufacturer has not complied with one or more of the requirements of this chapter, the department may, through a public process, adopt regulations that establish requirements for carpet stewardship organizations and manufacturers to take specific actions in order to bring the carpet stewardship organization or manufacturer into compliance with this chapter.

Cal. Public Resources Code - PRC § 42981. Section 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. (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 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.

Cal. Public Resources Code - PRC § 42982. Section 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 both of the following requirements are satisfied: (a) Postconsumer carpet that is removed from state buildings is managed in a manner consistent with the purpose of this chapter. (b) Carpet purchased by a state agency contains a minimum amount of postconsumer content that shall be determined by the Department of General Services and published in the State Contracting Manual by July 1, 2018.

Cal. Public Resources Code - PRC § 42983. Section 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.

Cal. Public Resources Code - PRC § 42983.5. Section 42983.5.

This chapter shall become inoperative when all the following are met: (a) The department has adopted regulations pursuant to Section 42968.1. (b) The department has approved a producer responsibility plan, as defined by Section 42968, for the purposes of Chapter 19.5 (commencing with Section 42968). (c) The department has provided notice to the producer responsibility organization of its intent to send the letter described in subdivision (d) at least 90 days before sending the letter. (d) The department has submitted to the relevant committees of the Legislature a letter indicating that the conditions in subdivisions (a) to (c), inclusive, have been met, that the department is prepared to implement Chapter 19.5 (commencing with Section 42968), and that the producer responsibility organization is prepared to implement the producer responsibility plan. The department shall post the letter on its internet website.

Source: CA Legislative Counsel Bulk DataURL: https://downloads.leginfo.legislature.ca.gov/pubinfo_2025.zipFetched: 6/27/2026