California Code of Regulations › Title 14 - Natural Resources › Division 7 - Department of Resources Recycling and Recovery › Chapter 11 - Product Stewardship › Article 3 - Used Mattress Recovery and Recycling Program › Section 18964 - Mattress Recycling Organization Annual Report

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(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
(B) Capital costs
(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.