Section 18964 - Mattress Recycling Organization Annual Report(a) The mattress recycling organization annual report shall be submitted by a corporate officer acting on behalf of a mattress recycling organization that is operating a used mattress recycling program under a department-approved used mattress recovery and recycling plan. The annual report may be submitted electronically according to instructions provided by the department. If the annual report is submitted electronically, the date of electronic submittal will be considered the date of receipt by the department, provided that the organization also submits to the department a hard copy submittal letter referencing the annual report electronic document with the signature of a corporate officer of a mattress recycling organization.(b) The annual report shall follow the outline below and contain the following: (1) Contact information. Identify the corporate officer of the mattress recycling organization responsible for annual report submittal.(2) Executive Summary. The purpose of the Executive Summary is to provide a broad understanding of the mattress recycling organization's program as a whole and to put into context the data and information that will follow. Provide a brief description of the mattress recycling organization's used mattress recovery efforts during the calendar year pursuant to section 18962.(3) A description of the methods used to collect, transport, and process used mattresses in California.(4) Include an updated list of participating manufacturers, renovators, and retailers and any updates to their respective contact information per section 18961(a)(2) and an updated list of brands covered under the plan per section 18961(a)(3).(5) Description of how consumers of mattresses in California had an opportunity to recycle and properly manage their used mattresses, including the number, location, and type of collection points in the program.(6) May include a description of activities to ensure proper collection and management of used mattresses.(7) A description of methods used by the mattress recycling organization to coordinate with existing used mattress collection and recycling programs with regard to the proper management or recycling of discarded or abandoned mattresses.(8) Description of objectives and activities based on the used mattress recovery and recycling plan, per section 18962(a)(2). State objectives from the approved plan and describe progress toward achieving those objectives during the reporting period. Describe any adjustments to objectives stated in the approved plan that may be made for the upcoming reporting period and accompanying rationale for those changes. If any changes are significant or material, as defined, the mattress recycling organization shall amend and resubmit its plan for approval by the department. The annual report shall include: (A) Quantitative information on subdivisions (b), (c), (d), (e), (f), (g), and (j) of section 42990.1 of the Public Resources Code, including conversion factor(s), if used. When describing the uses for the recycled materials, the annual report shall identify the secondary markets to which those materials are sold, and potential end uses of those materials.(B) Qualitative and/or quantitative information on subdivisions (g), (l), and (m) of section 42987.1 of the Public Resources Code.(9) Financing Mechanism. Include the mattress recycling organization's total expenses and revenues associated with the implementation of the used mattress recycling program. Changes to the mattresses recycling charge shall be reflected in the annual program budget for approval by the department. If a mattress recycling organization changes the amount of the mattress recycling charge in the first 12 months during which the mattress recycling charge is being collected per subsection (1) of subdivision (c) of section 42989 of the Public Resources Code, the mattress recycling organization shall provide the department no less than 90 days' notice before the change in the amount of the mattress recycling charge takes place. If a mattress recycling organization conducts activities that are separate from the implementation and management of the California used mattress recycling program, then the annual report shall include documentation on how the collection and use of funds from the California mattress recycling charge were kept separate from other activities of the mattress recycling organization, including the methodology for distribution of shared costs. Consistent with subdivision (a) of section 42990.1 of the Public Resources Code, the annual report shall include the following: (A) Mattress recycling charge per mattress size(C) Education/Outreach costs(D) End-of-life used mattress management costs with line items, if applicable, for collection, transportation, recycling, renovating, reuse, and proper disposal(E) Program administration costs including, but not limited to, the department's costs pursuant to subdivision (a) of section 42988.2 of the Public Resources Code, and third party legal costs. Surplus funds, if any, and detailed rationale for the specified level of surplus.(F) For the first 12 months during which the mattress recycling charge was collected, include a description of any changes to the amount of the mattress recycling charge, and how implementation of the change complied with subsection (1) or (2) of subdivision (c) of section 42989 of the Public Resources Code, if applicable. The mattress recycling organization may also include a description of why the change was made.(10) Education and Outreach. Provide a description of educational materials that were provided, including electronic examples of these materials. Identify any method(s) used to determine the effectiveness of educational and outreach efforts (e.g., surveys, hits on specific web pages, number of participants at events, etc.), if applicable. Describe any changes to those materials that are planned for subsequent years, if applicable.(11) Audits. The annual report shall include an independent financial audit of the used mattress recovery and recycling program funded from the mattress recycling charge. The audit shall be conducted in accordance with auditing standards generally accepted in the United States of America, and standards set forth in Government Auditing Standards issued by the Controller General of the United States. The financial audit submitted to the department shall be prepared by an Independent Certified Public Accountant (CPA). The CPA shall not perform non-audit services for the mattress recycling organization that would impair independence as defined in the Government Auditing Standards issued by the Controller General of the United States (e.g., accounting services, development of internal controls, management decisions). The independent financial audit shall include: (A) Mattress recycling program financial statements, as required by GAAP.(B) An opinion on the mattress recycling organization's compliance with the financial aspects of Chapter 21 (commencing with section 42985), Part 3, Division 30 of the Public Resources Code and Title 14, Division 7, Chapter 11, Article 3 of the California Code of Regulations.(C) Findings and recommendations as they relate to the financial aspects of the program.(D) Management Letter, if issued, by the mattress recycling organization's CPA.(12) Advisory Committee Report. The annual report shall include the report of the advisory committee required by subdivision (k) of section 42990.1 of the Public Resources Code. The mattress recycling organization's annual report may include a description of how it addressed the points or recommendations raised in the advisory committee report.(13) Good faith effort. For annual reports submitted on and after July 1, 2019, a demonstration of good faith effort with the state mattress recycling goals established pursuant to section 42987.5 (b) of the Public Resources Code.(c) The department shall determine if the annual report is complete and notify the submitting mattress recycling organization within 30 days. If the department finds that the annual report is complete, the department's 60-day review period for consideration of approval of the annual report will commence upon the original date of receipt. If the annual report is incomplete, the department shall identify what additional information shall be submitted to make it complete and the annual report shall be resubmitted within not less than 60 days or as determined by the director. If the department determines upon resubmittal that the annual report is complete, the department's 60-day review period for consideration of approval of the annual report will commence upon the original date of receipt of the resubmittal. The department may adopt a determination of compliance or non-compliance by approving, disapproving, or conditionally approving the annual report. (1) If the department conditionally approves the annual report, the department shall identify the deficiencies in the annual report and the mattress recycling organization shall comply with the conditions of approval within not less than 60 days of the notice date or as determined by the director. If the conditions are met, the department shall approve the annual report.(2) If the department disapproves the annual report, the department shall identify the deficiencies in the annual report and the mattress recycling organization shall resubmit an annual report or provide supplemental information requested within not less than 60 days of the notice date or as determined by the director.(3) If the department conditionally approves an annual report and the conditions are not met, the department shall disapprove the annual report.Cal. Code Regs. Tit. 14, § 18964
1. New section filed 7-21-2015; operative 7-21-2015 pursuant to Government Code section 11343.4(b)(3) (Register 2015, No. 30). Note: Authority cited: Sections 40401 and 40502, Public Resources Code. Reference: Sections 42985, 42986, 42987.5, 42990 and 42990.1, Public Resources Code.
1. New section filed 7-21-2015; operative 7/21/2015 pursuant to Government Code section 11343.4(b)(3) (Register 2015, No. 30).