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SB 707 Tracker Update: $10,000-a-Day Fines Loom for Unregistered Producers

AMCIRC's second SB 707 briefing flags $10,000-a-day fines for unregistered producers, a Nov. 12 CalRecycle workshop and a March 2027 hearing on the AAFA lawsuit.

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October 15, 2026
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American Circular Textiles Updates SB 707 Tracker
American Circular Textiles Updates SB 707 TrackerAI-generated

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  1. Unregistered covered producers under SB 707 risk fines of up to $10,000 per day; registration with PRO Landbell USA remains open past the July 1 deadline.

  2. A $1,000 registration fee applies for the cycle running July 1, 2026 through June 30, 2027, funding the needs assessment due to CalRecycle by March 1, 2027.

  3. CalRecycle's next workshop is Nov. 12 in Sacramento and online; regulations can't take effect before July 1, 2028.

  4. A court rejected AAFA's preliminary injunction Sept. 17, and the hearing on its challenge to Landbell's designation is set for March 12, 2027.

  5. Landbell USA was approved as the PRO on Feb. 27; its board includes Target, Gap, Nike, Reformation and Columbia Sportswear.

Unregistered textile producers in California now face fines of up to $10,000 per day, and the next chance to shape the state's textile recovery rules arrives Nov. 12 in Sacramento. That's the practical stakes behind American Circular Textiles' second SB 707 implementation briefing, which updates the coalition's free public tracker covering the law's rollout.

SB 707, passed in 2024, makes producers responsible for a statewide recovery program for used clothing and household textiles. AMCIRC launched its tracker in March to help companies follow the shift from statutory deadlines to implementation detail. The new briefing covers three fronts: Landbell USA's work as the state-designated producer responsibility organization (PRO), CalRecycle's regulatory workshops, and the legal challenge to Landbell's selection.

What happens on Nov. 12?

CalRecycle holds a workshop that day from 10 a.m. to 5 p.m. Pacific, in person in Sacramento and via Zoom. The agenda covers the producer responsibility plan, contingency planning, plan termination, revocation of a PRO's status and annual reports. Participants can comment in person or through Zoom; a separate webcast is observe-only.

It follows workshops on Aug. 13 and Sept. 29, which tackled definitions, online marketplaces, collection access, reuse and repair, responsible end markets, and producer identification and exemptions.

"CalRecycle's informal workshops are where the details of SB 707 will take shape. The whole textile value chain needs to be in that room," Rachel Kibbe, founder and CEO of American Circular Textiles, said in a statement. "Our SB 707 hub is a free resource that puts clear, standardized implementation information in one place, so you show up informed, then get involved. What happens in California sets the template for everyone else."

What's the compliance picture for producers?

The first hard deadline has already passed. CalRecycle approved Landbell USA as the PRO on Feb. 27 and required covered producers to join by July 1. Registration remains open, but the clock is expensive for laggards.

The briefing lists a $1,000 registration fee for the cycle running July 1, 2026, through June 30, 2027. Landbell says that fee funds the needs assessment and program development. Companies registering for the 2026-27 cycle don't have to submit product supply or volume figures.

That needs assessment, due to CalRecycle by March 1, 2027, will map California's existing capacity across collection, hauling, reuse, repair, recycling and disposal. It will also identify infrastructure gaps and investment needs to shape the program's plan and budget. Landbell has said it's outsourcing the work to a third-party contractor; as of Oct. 14, that contractor hadn't been announced, according to AMCIRC.

Landbell's board includes representatives from Target, Gap, Nike, Reformation and Columbia Sportswear, alongside organizations in reuse, recycling and other parts of the textile supply chain.

Does the lawsuit threaten the rollout?

Not yet, and the timeline runs long. AMCIRC expects informal CalRecycle workshops through spring 2027, with formal rulemaking starting around mid-year. Under the agency's timeline, regulations can't take effect before July 1, 2028.

The American Apparel & Footwear Association sued CalRecycle in March, alleging Landbell USA didn't meet the law's requirement that producers form the PRO. AAFA sought a preliminary injunction to pause implementation; the court rejected that request Sept. 17, per the briefing. The underlying challenge proceeds, with a hearing confirmed for March 12, 2027.

Asked for comment, AAFA pointed to its Sept. 18 statement. "We will continue to pursue a Producer Responsibility Organization (PRO) that complies with the law and reflects the full breadth of the industry it serves," Steve Lamar, AAFA's president and CEO, said. AAFA's objections center on producer governance, board representation, nonprofit status and financial oversight — not on SB 707's circularity goals, which the association says it supports.

The sourcing and compliance decision is straightforward: covered producers should register with Landbell now, budget the $1,000 fee for the 2026-27 cycle, and put compliance staff into the Nov. 12 workshop and those that follow.

via Sourcing Journal (Source)

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Olivia Hart

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Senior reporter covering regulation, policy and their impact on Light industry and softgoods manufacturing at Softgoods Report.

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