The bill requires the PRO to be approved by the department of resources recycling and recovery and the department to adopt regulations to implement the programme no earlier than July 1, 2028.

It would require the PRO to submit to the department, for approval or disapproval, a complete plan for collection, transportation, repair, sorting and recycling and safe and proper management of such products in the state.

Upon approval of a plan, or commencing July 1, 2030, whichever is earlier, the bill would make a producer subject to specified civil penalties, unless the producer is a participant of a PRO.

The bill would require the PRO to review the plan at least every five years after approval and submit an annual report to the department. It would restrict public access to certain information collected for the purpose of administering the programme.

It would require the department to post on its website a list of producers that are in compliance with the requirements of the programme. It would require PROs to pay fees to the department, not to exceed the department’s actual and reasonable regulatory costs to implement and enforce the act.

The bill would establish the Textile Stewardship Recovery Fund in the state treasury for the deposit of all money received from PROs and would make that available to the department, upon appropriation by the legislature.

It would also authorise the department to impose administrative civil penalties for a violation of the programme’s requirements, not to exceed $10,000 per day, or not to exceed $50,000 per day for an intentional or knowing violation.

"We are gratified that the bill that passed today is more implementable and better supports industry efforts towards circularity than what was introduced almost two years ago. American Apparel & Footwear Association president and chief executive officer Steve Lamar said in a statement.

AAFA said amendments in the bill addressed some of its concerns by tightening a loophole for online marketplaces, ensuring brands’ resale efforts will be accounted for, their circularity partners will be able to participate in the programme and removing brand liability for counterfeit products. This collaboration led AAFA to withdraw its opposition to the legislation.

"The industry would have preferred to see some additional amendments, such as language to provide for harmonization with the European Union on the recycling definition, to eliminate restrictions on the sale of recycled textiles, and to fully close the loophole for third-party sellers on online marketplaces,” he added.

Fibre2Fashion News Desk (DS)