Section 42972.7 - Trust fund or escrow account for unexpended funds and ongoing consumer assessments(a)(1) A carpet stewardship organization, as part of its carpet stewardship plan, shall set up a trust fund or an escrow account, into which it shall deposit all unexpended funds and ongoing consumer assessments, for use in accordance with this section in the event that the plan terminates or is revoked.(2) For purposes of this subdivision, "unexpended funds" means assessment money in the stewardship organization's accounts that the stewardship organization is not already obligated to pay pursuant to a contract, claim, or similar mechanism.(b) If a carpet stewardship plan terminates or is revoked, the trustee or escrow agent of a trust fund or escrow account set up pursuant to subdivision (a) shall do both of the following, starting within 30 days: (1) Accept carpet stewardship assessment payments directly from manufacturers into the trust fund or escrow account that would have been made to the stewardship organization prior to the carpet stewardship plan's termination or revocation.(2) Make payments from the trust fund or escrow account as the department shall direct, in writing, to implement the most recently approved plan.(c) If a new carpet stewardship plan has not been approved by the department within one year after termination or revocation, the department may make modifications to the previously approved plan, as it deems necessary, and continue to direct payments from the trust fund or escrow account in accordance with paragraph (2) of subdivision (b) to implement the modified plan.(d) A trustee or escrow agent in possession of assessment funds shall, as directed by the department, transfer those funds to a successor carpet stewardship organization with an approved plan.Ca. Pub. Res. Code § 42972.7
Added by Stats 2019 ch 680 (AB 729),s 4, eff. 1/1/2020.