AB 2398: Information for Retailers from National Floor Trends

National Floor Trends article offers retailers information about AB2398

An article that appears in the June, 2011 issue of National Floor Trends gives a great overview of what retailers need to know about AB 2398, California’s recycling law for carpet.

Appropriately titled, “What Retailers Need to Know About California AB 2398”, the story is written by NFT associate editor Michael Chmielecki. The article is so good, I am tempted to put the entire text into this blog, but I will try and restrain myself and just publish big excerpts.

“Implementation for AB 2398 is right around the corner as flooring retailers 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 and or 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.”

“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 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 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.  [accounting firm handling AB 2398 funds –ed.] 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.

Anyone found not 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.”

This new law in California is not an easy one to understand – it seems to me that there are plenty of ways for a retailer to inadvertently slip up and fall out of compliance. Thanks to Michael Chmielecki and National Floor Trends for helping the carpet industry spread the word.

For additional perspective, you may want to read the following related blog posts:

• New CARE Webpage Devoted to California AB2398 Carpet Recycling Law
• AB 2398 For Carpet Retailers and Dealers: CARE's Sikorski Explains
• Carpet Recycling 'Growing Like Crazy' in California: Ron Greitzer, LA Fibers

~Bethany