California SB 707

What it is

Senate Bill 707, signed into law by California Governor Gavin Newsom on 22 September 2024, establishes the first mandatory textile extended producer responsibility programme in the United States. The law requires producers of covered textile articles, including apparel, shoes, and accessories, sold to California consumers to participate in an approved producer responsibility organisation (PRO) that funds and operates a statewide textile collection, sorting, and end-of-market programme. The law is administered by CalRecycle under the broader framework of California's circular economy legislation.

The PRO was approved by CalRecycle in February 2026. Landbell USA, a subsidiary of the German EPR services group Landbell, was approved as the initial PRO. Producers subject to the law must register with the approved PRO by July 2026. Full programme rollout, including consumer-facing collection infrastructure and funding mechanisms, proceeds through to July 2030, at which point the programme is expected to be fully operational statewide.

Who it affects

The law applies to producers, defined as the brand owner, importer, or first domestic seller of covered textile articles, with annual aggregate gross revenue exceeding $1 million. The $1 million threshold refers to global revenue, not California-specific sales. A fashion brand with $1.5 million total global revenue selling any products in California is within scope. Secondhand sellers, thrift stores, and resale platforms are explicitly exempt. The scope covers apparel, shoes, and accessories.

The geographic scope is California, but the compliance obligation attaches to any producer selling into California, regardless of where the company is incorporated. US brands headquartered outside California, and non-US brands exporting to California, are within scope if they meet the revenue threshold. This extraterritorial reach, standard for California consumer protection and environmental legislation, means that California SB 707 functions as a de facto national standard for fashion brands operating at scale in the US market.

Key economic implications

SB 707 introduces per-unit fees for all covered textile products sold in California, paid by producers to the PRO to fund collection and processing. Fee levels have not yet been set as of early 2026; the PRO approval and producer registration phases precede fee determination. Fees are expected to be modest in the first years, rising as programme costs become clearer. Given California's market size, even small per-unit fees represent material aggregate obligations for high-volume brands.

The law explicitly establishes California as a policy laboratory for textile EPR in the United States. Several other US states, including New York, Massachusetts, and Washington, have introduced or are considering similar legislation. A fashion brand that builds EPR compliance infrastructure for California will be better positioned to adapt to subsequent state programmes with relatively low incremental cost. Brands that delay registration may find themselves simultaneously managing California enforcement and emerging obligations in additional states without a scalable compliance system.

The programme's end-market development provisions require the PRO to invest in building domestic sorting and recycling capacity for collected textiles. If these targets are met, California could develop a domestic textile recycling sector that creates commercially viable markets for post-consumer textile fibre. Brands with material take-back or recycled fibre commitments have strategic interest in the success of this infrastructure build, which could provide lower-cost or more reliable access to post-consumer recycled textile inputs than currently available.

Where things stand

The PRO was approved in February 2026. Producer registration opens July 2026. Brands within scope should complete registration by the July 2026 deadline to avoid enforcement exposure. CalRecycle has enforcement authority under the law and has indicated it will prioritise compliance with registration requirements. The fee structure and operational programme details will be developed through the PRO's programme plan, subject to CalRecycle approval, meaning the precise financial obligation per unit will become clearer through 2026 and 2027 as the programme plan is finalised.

Official sources

• SB 707 legislative text, California Legislature — https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240SB707