Section 42988.3 - Compliance with reserve requirements(a) On and after January 1, 2021, the mattress recycling organization shall identify strategies in its annual proposed budget to comply, commencing January 1, 2027, with the reserve requirements specified in this section.(b) Commencing January 1, 2027, the mattress recycling organization shall not maintain total reserves exceeding 60 percent of its annual operating expenses, consistent with the requirements of the Financial Accounting Standards Board's Accounting Standards Update 2016-14, Not-for-Profit Entities (Topic 958), and any future updates to that standard.(c) The department, in approving the annual budget, may authorize the total reserves to be increased to up to 75 percent of the organization's annual operating expenses if the department determines the increase is necessary to implement the requirements of this chapter.(d) If the mattress recycling organization's reserves exceed the amount specified in subdivision (b) or (c), the department may require the organization to increase spending on implementing the requirements of this chapter in order to reduce the excess amount of reserves.Ca. Pub. Res. Code § 42988.3
Added by Stats 2019 ch 673 (AB 187),s 9, eff. 1/1/2020.