(a)
The department shall approve a producer responsibility organization if it meets the requirements of this chapter, including all of the following:
(1)
A governing board consisting of producers that represent the diversity of covered products placed in the market by those entities. The governing board shall include nonvoting members with representation from the following types of entities:
(A)
A circular economy environmental nongovernmental organization.
(B)
A retailer that sells covered products.
(C)
A labor representative from a floor covering
joint apprenticeship program in northern California that is approved by the Division of Apprenticeship Standards.
(D)
A labor representative from a floor covering joint apprenticeship program in southern California that is approved by the Division of Apprenticeship Standards.
(2)
The producer responsibility organization shall demonstrate in its producer responsibility plan that it has adequate financial responsibility and financial controls in place, including fraud prevention measures and an audit schedule, to ensure proper management of funds.
(3)
The activities of the producer responsibility organization are limited to carrying out the requirements of this chapter.
(b)
In the event that the department determines that the producer responsibility
organization no longer meets the requirements of this chapter or fails to implement or administer an approved producer responsibility plan in a manner that effectuates the purposes of this chapter, the department may revoke its approval of the producer responsibility plan and may approve another producer responsibility plan pursuant to Section 42968.72.
(c)
(1)
Upon approval of a producer responsibility plan pursuant to Section 42968.30, or commencing January 1, 2029, whichever is sooner, a producer shall not sell, offer for sale, import, or distribute a covered product in the state unless all the following are met:
(A)
The producer is a participant of the producer responsibility organization.
(B)
The covered product is accounted for in the producer responsibility plan.
(C)
The department has approved the producer responsibility plan.
(2)
If a person does not qualify as a producer and is not subject to this chapter before January 1, 2029, but, after January 1, 2029, meets the definition of a producer, then that person shall become a participant of the producer responsibility organization and comply with the requirements of this chapter prior to beginning to sell, offer for sale, import, or distribute covered products in the state.
(d)
A producer not in compliance with this chapter is subject to penalties pursuant to this chapter if a covered product sold or offered for sale by the producer is not subject to a producer responsibility plan that has been approved by the department pursuant to Section 42968.30.
