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AB-863 Carpet recycling: carpet stewardship organizations: fines: succession: training.(2023-2024)

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Date Published: 07/06/2023 09:00 PM
AB863:v95#DOCUMENT

Amended  IN  Senate  July 06, 2023
Amended  IN  Assembly  May 22, 2023
Amended  IN  Assembly  March 30, 2023
Amended  IN  Assembly  March 21, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 863

Introduced by Assembly Member Aguiar-Curry
(Coauthor: Senator Dodd)

February 14, 2023

An act to amend Section 42978 of, and to add Sections 42972.8, 42978.5, and 42980 to, the Public Resources Code, relating to recycling.


LEGISLATIVE COUNSEL'S DIGEST


AB 863, as amended, Aguiar-Curry. Carpet recycling: carpet stewardship organizations: fines: succession: procedure. training.
Existing law establishes a carpet stewardship program to increase the amount of postconsumer carpet that is diverted from landfills and recycled into secondary products. Existing law requires a manufacturer of carpets sold in this state to submit, either individually or through a carpet stewardship organization, a carpet stewardship plan that meets specified requirements to the Department of Resources Recycling and Recovery. Existing law imposes a carpet stewardship assessment per unit of carpet sold in the state that is remitted to the carpet stewardship organization and may be expended to carry out the organization’s carpet stewardship plan. Existing law requires the carpet stewardship plan to provide sufficient funding to carry out the plan, including for grants to state-approved apprenticeship programs for training apprentice and journey-level carpet installers in proper carpet recycling practices. Existing law requires a carpet stewardship organization to include in the plan a description of the process by which the carpet stewardship organization will transfer assessment funds to a successor carpet stewardship organization in the event that should become necessary. Existing law requires a carpet stewardship organization in possession of assessment funds to, as directed by the department, transfer those funds to a successor carpet stewardship organization with an approved plan. Existing law authorizes the department to administratively impose civil penalties on any person who is in violation of any provision of the carpet stewardship laws, of up to $5,000 per day or $10,000 per day if the violation is intentional, knowing, or negligent.
This bill would amend those penalties to $10,000 per day or $50,000 per day if the violation is intentional, knowing, or reckless. The bill would make a carpet stewardship organization that violates a provision of the carpet stewardship law 3 times ineligible to act as an agent on behalf of manufacturers to design, submit, and administer a carpet stewardship plan and would apply, in that event, the successorship process.
This bill would require a the department-approved carpet stewardship organization, as part of its carpet stewardship plan, from organization to prioritize the assessments received for carpets sold for use in California, to expend at least 95% California on activities to carry out the carpet stewardship plan within California, and at least 10% make available up to 10% of those assessments for grants to apprenticeship programs for training apprentice and journey-level carpet installers in proper carpet recycling practices, including the installation and removal techniques that maximize the recyclability of carpet. as provided. The bill would authorize the department, if it determines that a carpet stewardship organization or manufacturer has not complied with one or more of the requirements of the carpet stewardship laws, to adopt regulations that establish requirements for carpet stewardship organizations or manufacturers to take specific actions to bring those entities into compliance with those laws.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.Section 42972.8 is added to the Public Resources Code, to read:
42972.8.

(a)A carpet stewardship organization, as part of its carpet stewardship plan, shall comply with both of the following requirements:

(1)At least 95 percent of the assessments collected pursuant to Section 42972 for the sale of carpet for use in California shall be expended on activities to carry out the plan within California.

(2)At least 10 percent of the assessments collected pursuant to Section 42972 for the sale of carpet for use in California shall be expended on grants to apprenticeship programs approved by the Chief of the Division of Apprenticeship Standards for training apprentice and journey-level carpet installers in proper carpet recycling practices, including the installation and removal techniques that maximize the recyclability of carpet.

(b)This section shall apply to assessments received by a carpet stewardship organization on or after January 1, 2024.

SECTION 1.

 Section 42972.8 is added to the Public Resources Code, to read:

42972.8.
 (a) For purposes of this section, both of the following definitions apply:
(1) “Apprenticeship program” means a program approved by the Chief of the Division of Apprenticeship Standards for training apprentice and journey-level carpet installers in proper carpet recycling practices.
(2) “The program” means the carpet stewardship organization approved by the department pursuant to this chapter.
(b) (1) The program shall prioritize expenditure of assessments collected pursuant to Section 42972 for the sale of carpet for use in California on activities to carry out the plan within California.
(2) Consistent with paragraph (4) of subdivision (a) of Section 42972, commencing with the fiscal year beginning July 1, 2024, and for each fiscal year thereafter, the program shall make available up to 10 percent of the assessments collected pursuant to Section 42972 for the sale of carpet for use in California for grants to apprenticeship programs, subject to the requirements and conditions of this section.
(c) An apprenticeship program shall apply to the department for a grant authorized pursuant to paragraph (2) of subdivision (b). An apprenticeship program that has received a grant under this chapter, including before July 1, 2024, is not eligible to apply for a grant pursuant to paragraph (2) of subdivision (b) until both of the following conditions are met:
(1) All the funds from the previous grant awarded to the apprenticeship program have been expended for training apprentice and journey-level carpet installers on proper carpet recycling practices.
(2) The apprenticeship program complies with subdivision (f) related to the funds received from the previous grant awarded.
(d) The program shall award grants under this section only to eligible apprenticeship programs that apply to the program and propose to use the grant funds for purposes that advance carpet recycling in this state.
(e) In any fiscal year, after the total moneys have been awarded to the apprenticeship program applicants, any funds that remain from the amount described in paragraph (2) of subdivision (b) shall be returned to the program to achieve the other objectives of the carpet stewardship plan described in Section 42972.
(f) An apprenticeship program that receives a grant pursuant to this section shall report to the program and submit receipts to the program verifying that the grant funds have been expended for the purposes outlined and approved in the grant application, as prescribed by the program and consistent with this section.

SEC. 2.

 Section 42978 of the Public Resources Code is amended to read:

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) Fifty thousand dollars ($50,000) per day if the violation is intentional, knowing, or reckless.
(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.

SEC. 3.

 Section 42978.5 is added to the Public Resources Code, to read:

42978.5.
 (a) A carpet stewardship organization, as specified in paragraph (1) of subdivision (e) of Section 42971, that violates this chapter three or more times shall be ineligible to act as an agent on behalf of a manufacturer to design, submit, and administer a carpet stewardship plan pursuant to this chapter.
(b) If a carpet stewardship organization becomes ineligible pursuant to subdivision (a) to operate as a carpet stewardship organization under this chapter, the successor provisions in subdivisions (b), (c), and (d) of Section 42972.7 shall apply.

SEC. 4.

 Section 42980 is added to the Public Resources Code, to read:

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.