Added by Stats. 2024, Ch. 864, Sec. 1. (SB 707) Effective January 1, 2025.
This act may be known, and shall be cited, as the Responsible Textile Recovery Act of 2024.
Article 1 - General Provisions
California Public Resources Code — §§ 42984-42984.3
Sections (23)
Added by Stats. 2024, Ch. 864, Sec. 1. (SB 707) Effective January 1, 2025.
(a)The intent of this chapter is to establish a statewide extended producer responsibility program for apparel and textile articles that emphasizes repair and reuse, and minimizes generation of hazardous waste, generation of greenhouse gases, environmental impacts, environmental justice impacts, and public health impacts.
(b)Due to distinct market elements associated with the textile and apparel industry that can utilize direct-to-consumer transactions from an overseas manufacturer to a consumer, the provisions of this chapter associated with online marketplaces are intended to be unique to this sector.
Added by Stats. 2024, Ch. 864, Sec. 1. (SB 707) Effective January 1, 2025.
(a)The purpose of this chapter is to increase the amount of postconsumer apparel and textile articles that are diverted from landfills and reused, repaired, 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.
(b)It is the purpose of this chapter that any producer, regardless of whether that producer is domiciled in California, who sells, offers for sale, or distributes a covered product into the state shall be responsible for complying with this chapter.
Added by Stats. 2024, Ch. 864, Sec. 1. (SB 707) Effective January 1, 2025.
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 July 1, 2028. The department’s regulations shall encourage recycling that minimizes generation of hazardous waste, generation of greenhouse gases, environmental impacts, environmental justice impacts, and public health impacts.
Amended by Stats. 2025, Ch. 67, Sec. 173. (AB 1170) Effective January 1, 2026.
(a)(1) “Apparel” means clothing and accessory items intended for regular wear or formal occasions and outdoor activities. For purposes of this chapter “apparel” includes only undergarments, shirts, pants, skirts, dresses, overalls, bodysuits, costumes, vests, dancewear, suits, saris, scarves, tops, leggings, school uniforms, leisurewear, athletic wear, sports uniforms, swimwear, formal wear, onesies, bibs, footwear, handbags, backpacks, knitted and woven accessories, jackets, coats, snow pants, ski pants, and everyday uniforms for workwear.
(2)“Apparel” does not include any of the following:
(A)Personal protective equipment or clothing items for use by the United States
military.
(B)Personal protective equipment worn to protect the wearer from health or environmental hazards.
(C)Reusable products designed to collect and absorb urine and feces, or reusable products regulated by the United States Food and Drug Administration that are designed to collect and absorb menstruation or vaginal discharge.
(b)“Authorized collector” means a person or entity that has entered into an agreement with a PRO to collect covered products.
(c)“Authorized sorter” means a person or entity that has entered into an agreement with a PRO 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 PRO 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 product and identifies the owner or licensee of the brand.
(f)“Collection box” means an unattended container, box, receptacle, or similar device used for soliciting and collecting donations of covered products, including apparel or textile articles.
(g)“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.
(h)“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 PRO.
(i)(1) “Covered product” means an apparel or textile article.
(2)“Covered product” does not include any of the following:
(A)A product covered under the Used Mattress Recovery and Recycling Act (Chapter 21 (commencing with Section 42985)).
(B)A product covered under the Electronic Waste Recycling Act of 2003 (Chapter 8.5
(commencing with Section 42460)).
(C)A product covered under the Product Stewardship for Carpets law (Chapter 20 (commencing with Section 42970)).
(D)An automated, motorized, battery, or manual window covering that is operated using an electric motor or other automated system, or manually adjusted by pulling cords or lifting mechanisms.
(j)“Department” means the Department of Resources Recycling and Recovery or a successor agency.
(k)“Distributor” means a company that has a contractual relationship with one or more producers to market and sell covered products to a retailer.
(l)“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 product 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 product that was manufactured or assembled by a company physically located outside of the state.
(m)“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.
(n)“Mail-back program” means a method of collecting covered products using prepaid, preaddressed mailing envelopes, boxes, or other means that are reusable, recyclable, or compostable.
(o)“Needs assessment” means a needs assessment prepared pursuant to Section 42984.6.
(p)“Nonprofit thrift store” has the same meaning as set forth in Section 6363.3 of the Revenue and Taxation Code.
(q)“Online marketplace” has the same meaning as set forth in Section 1749.8 of the Civil Code.
(r)“Person” has the same meaning as set forth in Section 40170.
(s)(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, regardless of whether the trademark is registered. 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), then the producer of the covered product is the person that imports the covered product into the state for sale or distribution.
(4)If there is no other person in the state who is the producer for purposes of paragraph (1), (2), or (3), the producer of the covered product is the distributor, retailer, or wholesaler who sells the product in or into the state.
(5)For the purposes of this chapter, the sale of a covered product shall be deemed to occur in the state if the covered product is delivered to the consumer in the state.
(6)This chapter does not prohibit a person who manufactures, distributes, imports, offers for sale, or sells the covered product from assuming some or all of the duties and liabilities of the producer of the covered product and
relieving from those duties and liabilities any other person who manufactures, distributes, imports, offers for sale, or sells the covered product.
(7)“Producer” does not include a seller that only sells secondhand covered products.
(8)“Producer” does not include a seller with less than one million dollars ($1,000,000) in annual aggregate global turnover adjusted annually pursuant to the California Consumer Price Index for All Urban Consumers for all items, as determined by the Department of Industrial Relations. The aggregate global turnover of a producer within the meaning of this chapter shall be calculated by adding together the respective turnovers of all of the following:
(A)The producer concerned.
(B)Those entities in which the producer is
concerned, directly or indirectly, as follows:
(i)Owns more than one-half the capital or business assets.
(ii) Has the power to exercise more than one-half the voting rights.
(iii) Has the power to appoint more than one-half the members of the supervisory board, the administrative board, or bodies legally representing the undertakings.
(iv) Has the right to manage the entities’ affairs.
(C) Those entities that have in the producer concerned the rights or powers listed in subparagraph (B).
(D) Those entities in which an entity referred to in subparagraph (C) has the rights or powers listed in subparagraph (B).
(E) Those entities in which two or more entities as referred to in subparagraphs (A) to (D), inclusive, jointly have the rights or powers listed in subparagraph (B).
(t)“Producer responsibility organization” or “PRO” means an organization that is exempt from taxation under Section 501(c)(3) of the federal Internal Revenue Code of 1986, is formed for the purpose of implementing a plan to meet the requirements of this chapter, and is approved by the department.
(u)“Producer responsibility plan” or “plan” means the plan developed by the PRO for the collection, transportation, repair, recycling, and the safe and proper management of covered products pursuant to subdivision (a) of Section 42984.8 and submitted to the department for approval pursuant to subdivision (b) of Section 42984.8.
(v)“Recycle” or “recycling” has the same meaning as set forth in paragraphs (1), (2), and (3) of subdivision (aa) of Section 42041. To be considered recycled, covered products shall be recycled into new, reused, or reconstituted products.
(w)“Repair” means any alteration or improvement of damaged covered product deemed worth the cost of repair by criteria established by the plan, including, but not limited to, any of the following:
(1)Redesigning and repurposing.
(2)Mending rips, holes, seams, and hems.
(3)Removing and repairing surface damage, such as pilling, stain removal, or abrasion.
(4)Securing and reattaching
buttons and other fastenings.
(5)Dyeing, redyeing, overdyeing, or printing of images on covered products.
(6)Preparation for reuse and resale.
(x)“Responsible end market” has the same meaning as set forth in subdivision (ad) of Section 42041.
(y)“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.
(z)“Reuse” means the resale of a collected covered product to a consumer for its original intended use with or without repair.
(aa) “Secondhand
covered product” means any covered product that has been previously owned by a consumer.
(ab) “Secondhand markets” means a retailer who sells secondhand covered products, including, but not limited to, thrift stores, collection box operators, online resale platforms, and flea markets.
(ac) “Sell” has the same meaning as set forth in Section 6006 of the Revenue and Taxation Code.
(ad) “Stewardship program” means a program established by a PRO pursuant to this chapter for the free, convenient, and safe collection, transportation, repair, recycling, and otherwise proper management of covered products.
(ae) (1) “Textile article” means an item customarily used in households or businesses that are made entirely or primarily from a
natural, artificial, or synthetic fiber, yarn, or fabric. For purposes of this chapter, “textile article” includes only blankets, curtains, fabric window coverings, knitted and woven accessories, towels, tapestries, bedding, tablecloths, napkins, linens, and pillows.
(2)“Textile article” does not include single-use products including paper towels, paper napkins, toilet paper, facial tissue, and wet or dry wipes.
(af) “Third-party seller” has the same meaning as set forth in Section 1749.8 of the Civil Code.
Amended by Stats. 2025, Ch. 67, Sec. 174. (AB 1170) Effective January 1, 2026.
A plan for covered products shall be designed to accept and manage all postconsumer covered products and shall include all of the following:
(a)The names and contact information, including email address, phone number, and mailing and physical addresses, of producers and brands of covered products covered under the plan.
(b)(1) A description of the method to establish and administer a means for fully funding the PRO in a manner that distributes the PRO’s costs among the producers that are part of the stewardship organization using a per unit eco-modulated fee that reflects California sales volumes, existing producer collection, repair, reuse, and recycling programs that help achieve the purpose of
this chapter, and the cost of reusing, repairing, recycling, or otherwise managing covered products pursuant to subdivision (a) of Section 42984.4.
(2)A five-year budget that establishes a funding level sufficient to operate the PRO in a prudent and responsible manner. The budget shall demonstrate how estimated revenues will cover all budgeted costs for each cost category.
(3)Budgeted costs shall include, but not be limited to, administrative costs, education and outreach costs, operational costs, capital costs, and a reserve to operate the PRO should there be unexpected events, such as losses of income, and large unbudgeted expenses in order to protect the recycling infrastructure the PRO relies upon in its plan, during any lapse in producer participation during the life of the program. The plan shall include a description of the types of activities related to each line-item
cost category. The reserve cost category shall include a reserve level amount and description justifying the reserve level amount indicated.
(4)The PRO shall maintain reserve funds sufficient to operate the plan for no less than six months. If a new plan submitted by a PRO is approved by the department, the PRO shall establish its reserve and maintain the required reserve fund balance by the end of the second year of plan operation.
(5)Administrative costs shall include the department’s actual and reasonable regulatory costs, which include full personnel costs, to implement and enforce this chapter as the criteria for all the costs that are defined in the regulations adopted pursuant to Section 42984.2. For the purposes of this paragraph, PRO implementation begins once the department approves a PRO’s plan, except the department’s costs shall include actual regulatory development
costs and other startup costs incurred prior to plan submittal and approval.
(c)Quantifiable five-year and annual performance standards and metrics unless or until the department publishes performance standards pursuant to Section 42984.19. The PRO shall amend its plan to meet or exceed the performance standards published by the department.
(d)A description of how the PRO will provide for a free and convenient dropoff or collection system for covered products, which shall include permanent collection sites and may include temporary collection sites and mail-back options, in each county of the state that meets both of the following requirements:
(1)Provides for a minimum of 10 permanent collection sites or one permanent collection site per 25,000 people, whichever is greater, except as provided below:
(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 locations.
(B)A county with a population of between 18,001 and 50,000, inclusive, as reported annually by the Department of Finance, shall have a minimum of four collection locations.
(C)A county with a population between 50,001 and 100,000, inclusive, as reported annually by the Department of Finance, shall have a minimum of eight collection locations.
(2)Provides for a reasonable geographic spread of permanent collection sites and an explanation for the geographic spread.
(e)A description of how collection sites will be authorized and managed,
including all of the following:
(1)A description of the process by which local jurisdictions can request to be a collection site pursuant to Section 42984.7.
(2)A description of how the PRO 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 PRO will provide for the transport of covered products at no cost from the collection sites to an authorized sorter, or directly to an authorized repair business, or recycling facility.
(4)A description of how collection sites will be allowed to divert collected covered products to secondhand markets for reuse. Any diversion by collection sites pursuant to this
paragraph shall be consistent with the rules established pursuant to paragraph (5).
(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.
(6)A description of how the PRO will prioritize the use of secondhand markets and nonprofit thrift stores, as described in Section 6363.3 of the Revenue and Taxation Code, when establishing collection sites to meet the minimum requirements in subdivision (d).
(7)How collection sites will be instructed to identify and reject counterfeit covered products.
(f)(1) A description of the process by which collected covered
products will be sorted, transported, processed, reused, and recycled following collection at collection sites, including all of the following:
(2)A description of how covered products will be handled and managed according to the waste management practices pursuant to Section 40051, including both of the following:
(A)(i) How the plan will prioritize the reuse, including repair, of collected covered products.
(ii) Products designed for use by infants and children under 12 years of age with components that pose a risk of detachment, thus creating choking hazards, or containing components subject to Part 1303 (commencing with Section 1303.1) and Part 1307 (commencing with Section 1307.1) of Title 16 of the Code of Federal Regulations, including, but not limited to, metallic, vinyl, or plastic
snaps, zippers, grommets, closures, or appliqués may be excluded from repair and reuse by the PRO.
(B)(i) How the plan will include the incentive payments, grants, and market development investments specified in clause (vii) to encourage reuse over recycling and other methods.
(ii) 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 authorized collectors, authorized sorters, authorized repair businesses, and recyclers will be tracked through final disposition.
(iii) A description of how the PRO will maximize the reuse and recycling of all covered products.
(iv) A description of how the PRO will minimize disposal of covered products
collected by the PRO.
(v)A description of how the PRO will prioritize, to the extent feasible, the use and development 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.
(vi) A description of the annual assessment the PRO will conduct and the metrics it will use to determine how collection, sorting, and transportation outcomes aligned with projections.
(vii) A description of how the plan will provide incentive payments, grants, and market development investments to support the infrastructure necessary to effectively implement the plan, including how incentive payments, grants, and market development investments will prioritize infrastructure closer to the
point of generation pursuant to clause (v).
(viii) A description of how the actions taken pursuant to clause (vii) will ensure that covered products are reused or recycled and have responsible and economically viable end markets.
(g)A comprehensive statewide education and outreach program designed to educate consumers and promote participation in the program offered by the PRO. At a minimum, the comprehensive statewide education and outreach program shall include all of the following:
(1)A description of the education and communications for strategy being implemented to effectively promote participation in the stewardship program and provide the information necessary for effective participation by consumers, retailers, distributors, wholesalers, local jurisdictions, and others.
(2)A joint internet website in coordination with all other PROs, as applicable, that publicizes the location of collection sites and provides information to consumers on how to drop off covered products at the free and convenient network of collection sites offered by the PRO, including any information reasonably necessary to safely and conveniently access the collection, repair, and recycling services offered by the PRO.
(3)Signage that is prominently displayed and easily visible.
(4)All signage and materials required for collection sites by the PRO, and the method by which collection sites can access replacement materials at no cost to the collection site.
(5)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.
(6)Promotional materials or activities, or both, that explain the purpose of the PRO and the means by which it is being carried out.
(7)A description of how the PRO will encourage users to separate products that are not covered products from covered products, when appropriate, before submitting the covered products to an authorized collection site or mail-back program.
(8)Materials designed to inform third-party sellers on online platforms of their duty to comply with the law and how to join the PRO.
(9)Information to the public on secondhand markets and the benefits of reuse, including repair.
(10)(A) The statewide education and outreach program shall promote the safe and proper management of covered products, including information on where consumers can purchase repaired and reused covered products. This includes education and training for authorized collectors to incentivize domestic resale of usable covered products.
(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 plan.
(C)The statewide education and outreach plan shall include information for consumers about how to avoid improper disposal of covered products.
(h)A description of the strategies, goals, and metrics the PRO will use to annually assess and evaluate the efficacy of the comprehensive statewide
education and outreach program.
(i)A description of how the PRO will coordinate with other PROs to avoid confusion to the public regarding program activities, including, but not limited to, education and outreach, including establishing point-of-sale messaging, a joint website, and toll-free telephone number for purposes of providing information on the program.
(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 PRO:
(1)Other PROs.
(2)Existing collection, reuse, and recycling programs.
(3)Community-based organizations, including nonprofit thrift stores as described
in Section 6363.3 of the Revenue and Taxation Code, that contact the PRO and that are qualified to run or support collection events.
(k)A contingency plan in the event the plan expires or is revoked. 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 plan, subject to the direction of the department, until such time as a new plan is approved. Upon plan expiration or revocation of the plan, the balance of the PRO’s operating reserves collected pursuant to paragraph (4) of subdivision (b) shall be transferred to the control of the trustee within five calendar days. All documents, digital records, contracts, and files related to the operation of the plan shall be transferred to the control of the trustee within five calendar days.
(l)Develop a program to support laundries for laundering covered products that includes funding for technology that reduces water consumption and improves microfiber and microplastic filtration.
(m)A description of how the plan will address the presence of PFAS and other chemicals regulated under Chapter 6.6 (commencing with Section 25249.5) of Division 20 of the Health and Safety Code and Chapter 12.5 (commencing with Section 108945) of, and Chapter 13.5 (commencing with Section 108970) of, Part 3 of Division 104 of the Health and Safety Code, including, but not limited to, the actions and investments needed to avoid contamination in the recycling process and available end markets for recycled material that cannot be remanufactured into textiles or textile articles in California.
(n)Develop strategies to address
design challenges for covered products, including, but not limited to, compostability, reduction and removal of harmful chemicals, microfiber and microplastic shedding, and mixed material blends.
(o)A description of how the PRO will minimize the negative environmental and human health impacts of all operations associated with the plan, including impacts from collected covered products exported outside of California.
(p)A process by which the financial activities of the PRO or individual producers that are related to implementation of the plan will be subject to an independent audit consistent with generally accepted accounting principles (GAAP).
Added by Stats. 2024, Ch. 864, Sec. 1. (SB 707) Effective January 1, 2025.
(a)A producer of a covered product sold, offered for sale, imported, or distributed in or into the state shall achieve the performance standards pursuant to subdivision (c) of Section 42984.10.
(b)After March 1, 2032, a producer of a covered product sold, offered for sale, imported, or distributed in or into the state shall achieve the performance standards adopted by the department pursuant to Section 42984.19.
Added by Stats. 2024, Ch. 864, Sec. 1. (SB 707) Effective January 1, 2025.
(a)A PRO shall review its plan at least every five years after approval by the department and determine whether revisions to the plan are necessary.
(b)If a PRO determines that revisions to the plan are necessary, the PRO shall submit to the department a revised plan for review and approval employing the procedures set forth in Section 42984.8. The stewardship organization shall submit the revised plan to the department pursuant to this subdivision at least 12 months prior to the review deadline outlined in subdivision (c). The revised plan shall include a cover letter that summarizes the revisions to the plan within 90 days of the review deadline outlined pursuant to subdivision (a).
(c)If a PRO determines that no revisions to the plan are necessary, the PRO shall send a letter to the department 12 months prior to the review deadline outlined in subdivision (a), explaining that the PRO has reviewed the plan and determined that no revisions are needed. The department may disapprove the PRO’s determination within 30 days of receipt of that determination if the department concludes that the PRO cannot implement the objectives of this chapter without revising the plan. If the department disapproves the PRO’s determination, the PRO shall submit to the department a revised plan for review and approval employing the procedures set forth in Section 42984.8. The PRO shall submit the revised plan pursuant to this subdivision within 60 days of receipt of the department’s disapproval, unless the department determines that additional time is needed.
Added by Stats. 2024, Ch. 864, Sec. 1. (SB 707) Effective January 1, 2025.
(a)Each PRO shall pay all administrative and operational costs associated with establishing and implementing the 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.
(b)A PRO shall establish a method for fully funding the PRO in a manner that distributes the program’s costs among participating producers that reflects sales volumes and the eco-modulated fee criteria included in the plan pursuant to Section 42984.10. The funding mechanism shall demonstrate adequate funding for all administrative and operational costs of the program, to be borne by participating producers, and shall distribute
participating producers’ costs in consideration of the cost of managing their specific covered products according to the approved plan.
(c)Within nine months of the effective date of the regulations, the department shall notify each PRO of its estimated regulatory costs as the criteria for those costs are defined in the regulations adopted pursuant to Section 42984.2, which includes full personnel costs, related to implementing and enforcing this chapter. This shall include the actual reasonable costs associated with regulation development pursuant to Section 42968.2 and other startup activities prior to plan submittal and approval.
(d)The PRO shall, on a schedule determined by the department, pay the department fees to cover the department’s incurred costs as described in subdivision (c). The fees shall not exceed the department’s actual and reasonable regulatory costs to
implement and enforce this chapter.
(e)(1) The department shall deposit all moneys received from a PRO 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.
Added by Stats. 2024, Ch. 864, Sec. 1. (SB 707) Effective January 1, 2025.
(a)Upon approval of the PRO’s plan, the PRO shall charge each participant producer annual fees that are eco-modulated as described in the plan. The intent of the eco-modulated fee is to incentivize design choices that facilitate the achievement of goals as outlined in the plan, including reuse, repair, and recycling through reduced fees, while using malus fees to disincentivize practices and materials incongruent with the plan. The PRO shall consider existing producer collection, repair, reuse, and recycling programs in developing the eco-modulated fee structure.
(b)The PRO shall account for the costs to ensure each covered product and covered product category meet the requirements of the chapter, including minimization of environmental
and public health impacts along the entire supply chain of covered products or covered product category.
Added by Stats. 2024, Ch. 864, Sec. 1. (SB 707) Effective January 1, 2025.
(a)A PRO shall keep board minutes, books, and records that clearly reflect the activities and transactions of the PRO.
(b)A PRO shall include in its plan a process by which the financial activities of the organization or individual producers 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.
(c)The department may audit the PRO or individual producer annually.
(d)Failure of a PRO or producer, or their respective agent who holds records, to produce documents or data
that is requested by the department, required to be collected or generated to carry out operation of the plan in the form and manner determined by the department, as part of a department audit, or review of a third-party audit, constitutes a violation of this chapter.
Added by Stats. 2024, Ch. 864, Sec. 1. (SB 707) Effective January 1, 2025.
(a)A PRO shall retain an independent public accountant, certified in the United States, to annually audit the accounting books of the PRO. The department shall review the independent certified public accountant audit for compliance with this chapter and consistency with the PRO’s plan and annual report, submitted pursuant to this chapter. After the department conducts its own audit, the department shall notify the PRO of any conduct or practice that does not comply with this chapter or of any inconsistencies identified in the audit. The PRO may obtain copies of the department’s audit, including proprietary information contained in the department’s audit, upon request, and withhold from disclosure confidential proprietary information to the extent allowed under Section 1040 of the Evidence Code and
Section 7929.000 of the Government Code. The items submitted to the department as part of the independent audit shall include:
(1)Financial statements audited in accordance with generally accepted accounting principles (GAAP).
(2)An audit of the PRO’s compliance with this chapter.
(3)An audit of the PRO’s adherence to, execution of, and consistency with its plan.
(b)The PRO shall include the independent audit in its annual report submitted to the department pursuant to Section 42984.17 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 PRO’s plan.
Added by Stats. 2024, Ch. 864, Sec. 1. (SB 707) Effective January 1, 2025.
A PRO shall annually submit to the department, in the form and manner and by the date determined by the department, an annual report and make that report publicly available on the PRO’s internet website. The report shall include at minimum, all of the following information for the preceding calendar year unless otherwise specified:
(a)The PRO’s costs, according to the cost categories established in the plan, and revenues.
(b)A summary of any anticipated changes to allocations in cost categories for the next calendar year.
(c)Any changes to the distribution of a participating producer’s costs.
(d)The amounts of the eco-modulated fees based on the criteria established pursuant to subdivision (b) of Section 42984.14 and the PRO’s evaluation of the effectiveness of the eco-modulated fees.
(e)An updated list of producers participating in the plan and an updated list of the names and contact information, including email address, telephone number, and physical and mailing addresses of producers and brands of covered products covered under the plan.
(f)A list of the PRO’s collection sites, by name, location, and type.
(g)(1) The amount of covered products sold in or into the state by the producers covered by the PRO’s plan.
(2)The amount described in paragraph
(1)shall be broken down by fiber type category and Harmonized Tariff Schedule of the United States (HTS) number.
(h)The total weight of covered products, respectively, that were collected, broken down by fiber type categories.
(i)The total weight of covered products, by category, that were collected and deemed reusable by each respective authorized collector and authorized sorter.
(j)A list of each authorized sorter, authorized repair business, and covered product recycling facility used by the PRO, including both of the following:
(1)Name and location.
(2)Total weight of covered products handled by each location.
(k)The total weight and number of covered products sold in or into the state attributed to a producer, who is a registered participant of the PRO’s plan, which are collected in the state and reused or recycled by the PRO, including a description of the methodology and information used to determine and calculate these values.
(l)A complete accounting of the ultimate disposition of all covered products collected by the PRO, including the total weight of covered products that were repaired and recycled.
(m)Metrics and a description of the progress toward attaining the performance standards included in the plan.
(n)A description of methods used to collect, transport, repair, and recycle covered products by the PRO, including a description of all of the following:
(1)How the PRO handled and managed covered products according to the waste hierarchy as defined in Section 40051.
(2)How the PRO maximized reuse and recycling of all covered products.
(3)How the PRO minimized disposal of all covered products collected by the PRO.
(4)Results of the PRO’s assessment of the efficacy of the collection, sorting, and transportation process.
(o)A description of how the PRO provided incentive payments, grants, and market development investments to support the infrastructure necessary to effectively implement the plan, including how incentive payments, grants, and market development investments prioritized infrastructure closer to the point of generation.
(p)A description of outreach efforts and education, including, but not limited to, the PRO’s evaluation of the efficacy of the comprehensive statewide education and outreach program pursuant to subdivision (g) of Section 42984.10.
(q)A description of how the PRO coordinated with other PROs and entities pursuant to subdivision (j) of Section 42984.10.
(r)A report on activities the PRO has undertaken to prioritize the use of sorting 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.
(s)An analysis of whether the PRO met performance standards established by the PRO pursuant to subdivision (c) of Section 42984.10 or
by the department pursuant to Section 42984.19.
(t)A description of how the PRO addressed the presence of PFAS and other chemicals regulated under Chapter 6.6 (commencing with Section 25249.5) of Division 20 of the Health and Safety Code and Chapter 12.5 (commencing with Section 108945) of, and Chapter 13.5 (commencing with Section 108970) of, Part 3 of Division 104 of the Health and Safety Code, including, but not limited to, the actions taken and investments made to avoid contamination in the recycling process, and the availability of end markets for recycled material that could not be remanufactured into textiles or textile articles in California.
(u)Any other information deemed relevant by the PRO for the department to determine compliance with the approved plan.
(v)Any other information required by
regulations adopted pursuant to Section 42984.2.
Added by Stats. 2024, Ch. 864, Sec. 1. (SB 707) Effective January 1, 2025.
(a)No later than 120 days after the date the department receives the annual report submitted by a PRO pursuant to Section 42984.17, the department shall notify the PRO if the annual report is compliant or noncompliant.
(b)If the department determines that the annual report is noncompliant due to failure to meet the requirements of this chapter, the department may require the resubmittal of the annual report or take enforcement action.
Added by Stats. 2024, Ch. 864, Sec. 1. (SB 707) Effective January 1, 2025.
After March 1, 2032, the department may establish, review, and may adjust performance standards and the dates by which they are required to be achieved based on information included in the plan and annual reports, other information provided by the PRO, department waste characterization studies, needs assessment, and economic and any other relevant information, as determined by the department.
Added by Stats. 2024, Ch. 864, Sec. 1. (SB 707) Effective January 1, 2025.
(a)Within 12 months of the effective date of regulations pursuant to Section 42984.2, 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. The department’s
list of compliant entities shall be available on the department’s internet website in a machine-readable format.
(c)(1) A retailer, importer, distributor, or online marketplace shall monitor the department’s internet website where compliant producers are posted, as provided in subdivision (a), to determine if a producer, brand, or covered product is in compliance with this chapter for that producer of covered products.
(2)Except as provided in subdivision (d), on and after the date a plan is approved by the department pursuant to Section 42984.8, a retailer, importer, distributor, or online marketplace 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, distributor, or online marketplace may sell, offer for sale, import, or distribute a covered product if the retailer, importer, distributor, or online marketplace has fulfilled the obligations for those covered products which the retailer, importer, distributor, or online marketplace sells, offers for sale, imports, or distributes pursuant to paragraph (6) of subdivision (s) of Section 42984.3.
(2)Notwithstanding paragraph (2) of subdivision (c), a retailer, importer, distributor, or online marketplace 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.
(3)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.
Amended by Stats. 2025, Ch. 67, Sec. 175. (AB 1170) Effective January 1, 2026.
(a)An administrative 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 or knowing.
(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.
(c)The department shall establish, through regulations adopted pursuant to Section 42984.2, a
process that shall include an informal hearing process by which the penalties will be assessed.
(d)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. Upon appropriation by the Legislature, moneys in the Textile Stewardship Recovery Penalty Account shall be available for expenditure by the department on activities related to the collection and recycling of covered products, grants for related purposes, and the administration and enforcement of this chapter.
(e)The Administrative Adjudication Bill of Rights, as set forth in Article 6 (commencing with Section 11425.10) of Chapter 4.5 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.
Added by Stats. 2024, Ch. 864, Sec. 1. (SB 707) Effective January 1, 2025.
Upon a written finding that a producer, PRO, 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 take one or both of the following actions to ensure compliance with the requirements of this chapter, 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:
(a)Revoke the PRO’s plan approval or require the PRO to resubmit the plan.
(b)Require additional reporting relating to compliance with the material requirement of this chapter that
was not met.
Added by Stats. 2024, Ch. 864, Sec. 1. (SB 707) Effective January 1, 2025.
(a)A producer, PRO, 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, within 14 days, 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 five 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 42984.21 on a producer, PRO, 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 42984.20 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.
Added by Stats. 2024, Ch. 864, Sec. 1. (SB 707) Effective January 1, 2025.
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.
Added by Stats. 2024, Ch. 864, Sec. 1. (SB 707) Effective January 1, 2025.
(a)Except as provided in subdivision (c), an action specified in subdivision (b) that is taken by a PRO 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 PRO:
(1)The creation, implementation, or management of a
plan approved by the department pursuant to Article 4 (commencing with Section 42984.8) and the determination of the types or quantities of covered products repaired, reused, recycled, or otherwise managed pursuant to a plan.
(2)The determination of the cost and structure of an approved 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 plan 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.
Added by Stats. 2024, Ch. 864, Sec. 1. (SB 707) Effective January 1, 2025.
This chapter does not grant a city, county, city and county, special district, or joint powers authority any new authority over solid waste hauling operations pursuant to a franchise agreement and does not affect, limit, or abrogate in any manner any franchise granted to a solid waste enterprise for the handling of solid waste.
Added by Stats. 2024, Ch. 864, Sec. 1. (SB 707) Effective January 1, 2025.
An online marketplace shall annually do the following in accordance with regulations adopted by the department pursuant to Section 42984.2:
(a)(1) Notify the department and the PRO of all third-party sellers with sales of covered products over one million dollars ($1,000,000) sold on their online marketplace in the preceding year and provide all required information. If a third-party seller does not have any sales in California during the preceding year then the online marketplace shall not provide their information to the department.
(2)The amount of sales described in paragraph (1) includes only those transactions through the online marketplace for which payment is
processed by the online marketplace directly or through its payment processor.
(b)Provide all third-party sellers described in (a) with the information on requirements of law as provided by the PRO pursuant to paragraph (8) of subdivision (g) of Section 42984.10.