Cal. Public Resources Code § 42989

(a) The mattress recycling organization shall set the amount of the mattress recycling charge that shall be added to the purchase price of a mattress at the point of sale and include the charge amount in the annual budget. (b) (1) The amount of the state mattress recycling charge shall be sufficient to fund the revenue requirements set forth in the approved budget. (2) The mattress recycling organization shall set the charge as a flat rate and not as a percentage of the purchase price. The organization shall not set more than two different charges to accommodate mattress size differentials. (c) (1) The mattress recycling organization may change the amount of the charge in accordance with subdivision (b), but the mattress recycling organization shall not change the amount of the charge more frequently than annually, and shall provide no less than 180 days’ notice to the public before the change in the amount of the charge takes effect. (2) If the mattress recycling organization provides notice that it intends to reduce the charge, the organization shall provide the department with information about how it will effectively implement the program at the reduced fee. The department may disapprove that change within 60 days of the notice if the department finds that the reduction makes the organization unable to effectively implement the requirements or objectives of this chapter. (d) The charge shall be included in the annual program budget for approval by the department. (e) It is the intent of the Legislature to ensure the proceeds of the mattress recycling charge are used to prioritize the use of in-state processing facilities over the use of out-of-state processing facilities to the extent economically practical.