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Breaking Flooring News

What You Need to Know About California AB 2398

By Michael Chmielecki
June 22, 2011
CARE’s Consumer education materials covering AB 2398 include brochures and signage. CARE will also be mailing out postcards to retailers.


Implementation for AB 2398 is right around the corner as flooring retailers/contractors selling carpet in California, and/or shipping it into the state, will be required to collect 5 cents per square yard from customers, beginning July 1. The requirement is part of California’s AB 2398 bill, which was passed last September and is designed to incentivize carpet recycling within the state.

AB 2398 covers both residential and commercial carpet (broadloom and carpet tile) sold or shipped into California. It does not include rugs, underlayment, carpet cushion, samples or synthetic turf. Additionally, any carpet that is sold/installed outside of the state is not subject to the assessment; final sales and installations outside of California can be refunded with an exemption form.

“If you [a retailer] sold carpet to an installer located in California, you would assess that installer. If he then sells the carpet into Nevada, he would provide you an exemption form and you would return that assessment to him. Then you would provide that exemption up to the manufacturer for credit,” explained Georgina Sikorski, Carpet America Recovery Effort’s (CARE) exec. dir. The manufacturer would also be refunded, through a quarterly remittance statement sent to the outside accounting firm HAW, she added.

Georgina Sikorski, CARE’s exec. dir.

CARE is the carpet stewardship organization assigned by the state’s Department of Resources Recycling and Recovery (CalRecycle), and will distribute the assessments to first-line carpet recycling processors as an incentive for them to develop and invest in new recycling and diversion technologies. The assessment does not cover the full costs of recycling, Sikorski noted.


What AB 2398 means for retailers
Beginning July 1, manufacturers will invoice retailers 5 cents per square yard. The retailer must then pass the assessment onto their customers as a separate, after-tax line item on the customer invoice. CARE recommends the line item be labeled as “CA Crpt Stewardship Assessment.”

Retailers in California may only sell carpets from manufacturers in compliance with AB 2398. CalRecycle (www.calrecycle.ca.gov) will post a list of manufacturers in compliance on its website. Retailers and distributors (wholesalers) are required to monitor the list. If a manufacturer is not listed, they are asked to contact their mill sales representative or CARE (www.carpetrecovery.org) directly.

Retailers’ carpet inventory purchased before the assessment was implemented must still include the assessment to consumers for any carpet sold in California, beginning July 1. The assessment must be remitted to HAW. Retailers will only submit funds directly to HAW during this transition period.

Retailers/contractors must also include the assessment as part of the purchase price when selling to general contractors. Retailers picking up the carpet in another state and bringing it to California for sale must inform the manufacturer at the time of pick up that the product will be sold in California so the assessment can be added. The legislation also requires that retailers retain their sales records for three fiscal years.

CalRecycle is responsible for approving manufacturers’ stewardship plans, checking progress on the laws goals, and providing oversight and enforcement. At press time, Sikorski said that she is not aware of any manufacturers that are submitting their own stewardship plans.

Anyone not found in compliance – including manufacturers, retailers and distributors – can be penalized up to $1,000 per day, or $10,000 per day if non-compliance is found to be knowing, negligent or intentional.

CARE has developed a set of consumer educational materials. The materials include a customer point-of-purchase brochure (with a Spanish version available online), a showroom placard to hold the brochures, a window cling and a PowerPoint presentation. Additional consumer education materials are available from manufacturers.

For more information, visit www.carpetrecovery.org/AB2398.php, or contact CARE or CalRecycle directly. 
KEYWORDS: adhesives sustainability

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Michael Chmielecki wrote about the floor covering industry for BNP Media for more than ten years. As editor of Floor Covering Installer and senior editor of Floor Trends, he always sought ways to better connect and inform the installation and contracting community. Mike has a degree in journalism from the University of New Hampshire.

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