California enacts first-in-the-nation apparel and textile recovery law

On September 22, 2024, California Governor Gavin Newsom signed into law the Responsible Textile Recovery Act (the Act), also known as SB 707, requiring manufacturers and distributors to participate in an extended producer responsibility (EPR) program for apparel and certain textile products.

EPR programs follow a “producer pays” principle, aiming to shift the costs and responsibilities of managing end-of-life products from taxpayers and local governments to the producers and sellers of those products. California’s first-in-the-nation apparel and textile stewardship framework is part of a growing EPR trend in the state and across the country, notably for plastics and packaging, and is one of several EPR bills California passed in the final days of its legislative session. Other EPR bills impact products such as electric vehicle batteries (SB 615), marine flares (SB 1066), carpet (AB 863), and paint (SB 1143).

Covered products and definitions

SB 707 covers apparel and textile products, defined to include clothing; undergarments; accessories such as handbags, backpacks, and scarves; footwear; swimwear; uniforms; curtains and fabric window coverings; knitted and woven home accessories; towels; bedding, including pillows; and table linens, among other categories.

As with other EPR statutes in California, SB 707 creates a tiered definition of a “producer.” The definition defaults to the in-state manufacturer, brand owner, or licensee of a covered product. If there is no such entity, the producer is instead the in-state trademark owner or exclusive licensee; if none, the in-state importer into California; if none, the in-state distributor, retailer, or wholesaler. Sellers with less than $1 million in annual global turnover are exempt, as are sellers of only secondhand covered products.

Requirements for producers under SB 707

Under the new law, a producer of any such item sold in California, including products delivered to California consumers, must form a producer responsibility organization (PRO) by January 1, 2026; join the PRO by July 1, 2026; and participate in the PRO’s product stewardship plan by July 1, 2030 – or when CalRecycle approves the PRO plan, whichever is sooner.

Covered producers will have to pay fees to the PRO based on their California sales volume, existing initiatives aligned with SB 707 (such as collection and repair programs), and the relative costs of managing their products compared to others covered by the program.

The law also requires any online marketplace to annually inform CalRecyle of all third-party sellers that sold more than $1 million in covered products on its platform in the preceding year, unless none of those sales were to California consumers. The online marketplace must also provide instructive materials created by the PRO to inform sellers of their obligations under the Act.

SB 707 will require the PRO to develop a statewide plan to collect, transport, repair, sort, and recycle postconsumer apparel and textile products. The stewardship program will include the creation of collection systems for covered products such as drop-off sites and mail-back options; education and outreach programs to consumers and other stakeholders; performance standards, such as recovery rates that producers, through the PRO, must meet; a plan to clean and launder covered products; and a plan to manage PFAS and other chemicals to avoid contamination in the recycling process, among other elements.

The Act authorizes CalRecycle to impose administrative civil penalties up to $10,000 per day for violating the program’s requirements, or $50,000 per day for an intentional or knowing violation.

The future of EPR

As EPR gains momentum across the country, sustainable fashion and textile recovery laws may follow in other states. A bill proposed in New York, for example, would require fashion sellers to follow standardized environmental due diligence policies, make supply chain disclosures, and contribute to a state fashion remediation fund.

Similar programs have also been implemented abroad. France was the first country to enact an EPR program for linen, clothing, and footwear in 2007, and the EU has proposed rules to create textile EPR programs in member states.

Manufacturers, brand owners, distributors, and retailers of apparel and other textile products should closely monitor rulemaking by CalRecycle under SB 707 as well as future efforts related to California’s stewardship program. Liaising with trade groups may also assist producers in preparing for compliance.

For questions about the implications of SB 707 and other EPR laws for your business, please contact any of the authors.