BILL NUMBER: AB 1343	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 24, 2009
	AMENDED IN ASSEMBLY  MAY 4, 2009

INTRODUCED BY   Assembly Member Huffman
   (  Coauthor:   Assembly Member 
 Torlakson   Coauthors:   Assembly
Members   Ma   and Torlakson  )

                        FEBRUARY 27, 2009

   An act to add  and repeal  Chapter 5 (commencing
with Section 48700)  of  to  Part 7 of
Division 30 of the Public Resources Code, relating to solid waste.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1343, as amended, Huffman. Solid waste: architectural 
paint.   paint: recovery program. 
   Existing law prohibits the disposal of latex paint in the land or
waters of the state and authorizes certain persons to accept latex
paint for recycling. 
   This bill would create the architectural paint recovery program
and would require architectural paint manufacturers to develop and
implement strategies to reduce the generation of postconsumer paint,
promote the reuse of postconsumer paint, and manage the end-of-life
of postconsumer paint through collecting, transporting, and
processing. The manufacturers would be allowed to establish a cost
recovery system to collect a fee from the consumer on all
architectural paint sold in this state sufficient to recover the
costs of the end-of-life management of postconsumer paint in an
environmentally sound fashion.  
   The bill would require manufacturers to submit a report to the
California Integrated Waste Management Board by July 1, 2011, and
each year thereafter, describing their paint recovery efforts. On or
before January 1, 2012, the board would be required to submit a
report to the Legislature describing the results of the architectural
paint recovery program, including certain recommendations and
financial analysis.  
   This bill would make the program inoperable on July 1, 2013, and
would repeal these provisions on January 1, 2014.  
   The California Integrated Waste Management Act of 1989,
administered by the California Integrated Waste Management Board, is
required to reduce, recycle, and reuse solid waste generated in the
state to the maximum extent feasible in an efficient cost-effective
manner to conserve water, energy, and other natural resources. 

   This bill would create an architectural paint recovery program
that would be enforced by the board. On or before January 1, 2011, a
manufacturer or designated stewardship organization would be required
to submit to the board an architectural paint stewardship plan to
develop and implement a recovery program to reduce the generation of
postconsumer paint, promote the reuse of postconsumer architectural
paint, and manage the end-of-life of postconsumer architectural
paint, in an environmentally sound fashion, including collection,
transportation, processing, and disposal. The plan would be required
to contain specified elements of an architectural paint stewardship
program, including, but not limited to, an architectural paint
stewardship assessment, approved by the board, on each container of
architectural paint sold in this state. The bill would require the
plan to be reviewed and approved by the board, and if the board does
not act on the plan within 90 days of receipt, it would be deemed
adopted.  
   This bill would require, on or before July 1, 2011, or two months
after a plan is approved by the board, the manufacturer or
stewardship organization to implement the architectural paint
stewardship program described in the approved plan.  
   The bill would also prohibit a manufacturer or retailer from
selling or offering for sale architectural paint to any person in
this state, unless the manufacturer is in compliance with this act.
The prohibition would be in effect on the 120th day after a notice
listing the manufacturer as not being in compliance is posted on the
board's Internet Web site.  
   This bill would authorize the board to administratively impose
civil penalties for violations of the act. The bill would require
manufacturers to submit a report to the board by July 1, 2012, and
each year thereafter, describing their paint recovery efforts. 

   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    The Legislature finds and declares all
of the following:  
   (a) Architectural paint is a priority waste type based on its high
volume, subsequent cost to manage, and high potential for increased
recovery, reuse, and recycling.  
   (b) The Department of Toxic Substances Control has deemed latex
paint as presumed hazardous in California and oil-based paint is
characteristically hazardous, making both latex and oil-based paints
prohibited from disposal in California.  
   (c) The California Integrated Management Waste Board estimates
that architectural paint, both latex and oil-based, comprises the
largest volume of waste product collected at publicly operated
household hazardous waste facilities, 35 percent of total household
hazardous waste collected in California in the 2007-08 fiscal year.
 
   (d) The Department of Toxic Substances Control estimates that the
cost to manage waste architectural paint in California is the single
largest cost to local governments in the household hazardous waste
system.  
   (e) The board estimates that for the 2007-08 fiscal year only 5
percent of California households utilized a household hazardous waste
program.  
   (f) Architectural paint is convenient to buy and inconvenient to
recycle or legally dispose of in California.  
   (g) There has been an ongoing debate on how to better manage
leftover architectural paint since 1989 when the board heard an item
on options to fund a collection and management system.  
   (h) A national dialogue has been ongoing since 2002, yet has not
resulted in any architectural paint collection or financial relief to
California local governments.  
   (i) California has the largest number of latex paint recyclers in
the country: Amazon Environmental (Riverside), Kelly-Moore
(Sacramento), and Visions (Sacramento).  
   (j) State procurement of recycled paint is required. The state
agency "buy recycled" mandates are not being met, and there is no
enforcement mechanism, resulting in only 2 percent compliance
reporting to the board.  
   (k) The board adopted an Overall Framework for an Extended
Producer Responsibility (EPR) guidance document as a policy priority
in January 2008.  
   (l) The EPR framework recognizes that the responsibility for the
end-of-life management of discarded products and materials rests
primarily with the producers, thereby incorporating costs of product
collection, recycling, and disposal into the total product costs so
as to have a reduced impact on human health and the environment.

   SECTION 1.   SEC. 2.   Chapter 5
(commencing with Section 48700) is added to Part 7 of Division 30 of
the Public Resources Code, to read:
      CHAPTER 5.  ARCHITECTURAL PAINT RECOVERY PROGRAM


   48700.  The purpose of the architectural paint recovery program
established pursuant to this chapter is to require paint
manufacturers to develop and implement a program to collect,
transport, and process postconsumer paint to reduce the costs and
environmental impacts of the disposal of postconsumer paint in this
state. 
   48701.  For the purposes of this chapter the following terms have
the following meanings:
   (a) "Board" means the California Integrated Waste Management
Board.
   (b) "Manufacturer" means a manufacturer of architectural paint.
   (c) "Paint" means interior or exterior architectural coatings,
including paints and stains purchased for commercial or homeowner
use, but does not include architectural coatings purchased for
industrial or original equipment manufacturer use.  

   48702.  (a) A manufacturer of paint sold in this state shall,
individually or through a representative organization, implement a
recovery program to develop and implement strategies to reduce the
generation of postconsumer paint, promote the reuse of postconsumer
paint, and manage the end-of-life of postconsumer paint, through
collecting, transporting, and processing.
   (b) A cost recovery system may be established by the manufacturer,
individually or through a representative organization, to collect a
fee from the consumer on all architectural paint sold in this state
sufficient to recover the costs of the end-of-life management of
postconsumer paint in an environmentally sound fashion, including
collection, storage, transportation, reuse, and disposal. 

   48703.  By July 1, 2011, and each year thereafter, a manufacturer
of paint sold in this state shall, individually or through a
representative organization, submit a report to the board describing
its paint recovery efforts. At a minimum, the reports shall include
all of the following:
   (a) The total volume of paint sold in this state during the
preceding calendar year.
   (b) The total volume of postconsumer paint recovered in this state
during the preceding calendar year.
   (c) A description of methods used to collect, transport, and
process postconsumer paint in this state.
   (d) The total cost of implementing the program.
   (e) An evaluation of how the program's funding mechanism operated.

   (f) Examples of educational materials that were provided to
consumers.
   (g) An analysis of the environmental costs and benefits of
collecting and recycling latex paint.
   (h) An evaluation of the feasibility of donating usable
postconsumer paint to charitable organizations, nonprofit
organizations, and kindergarten and grades 1 to 12, inclusive,
schools.  
   48704.  On or before January 1, 2012, the board shall submit a
report to the Legislature describing the results of the architectural
paint recovery program and recommending whether it should be
extended and any modifications needed to improve the functioning and
efficiency of the program. The report shall include an analysis of
the costs avoided by state and local government agencies as a result
of the program.  
   48705.  Any action taken by a manufacturer or representative
organization regarding the cost recovery system or the collecting,
transporting, or processing of postconsumer paint, pursuant to the
requirements of this chapter and only to the extent necessary to plan
and implement the cost recovery system, collection system, or
recycling system, is not a violation of the Cartwright Act (Chapter 2
(commencing with Section 16700) of Part 2 of Division 7 of the
Business and Professions Code), the Unfair Practices Act (Chapter 4
(commencing with Section 17000) of Part 2 of Division 7 of the
Business and Professions Code), or any other state law relating to
antitrust, regulation of trade, or regulation of commerce. 

   48706.  This chapter shall become inoperative on July 1, 2013,
and, as of January 1, 2014, is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2014, deletes
or extends the dates on which it becomes inoperative and is
repealed.  
   48701.  For purposes of this chapter, the following terms have the
following meanings:
   (a) "Architectural paint" means interior and exterior
architectural coatings, sold in containers of five gallons or less
for commercial or homeowner use, but does not include architectural
coatings purchased for industrial or original equipment manufacturer
use.
   (b) "Board" means the California Integrated Waste Management
Board.
   (c) "Consumer" means a purchaser or owner of architectural paint,
including a person, business, corporation, limited partnership,
nonprofit organization, or governmental entity.
   (d) "Distributor" means a person that has a contractual
relationship with one or more manufacturers to market and sell
architectural paint to retailers.
   (e) "Manufacturer" means a manufacturer of architectural paint.
   (f) "Postconsumer paint" means architectural paint not used by the
purchaser.
   (g) "Retailer" means a person that sells architectural paint in
the state to a consumer. A sale includes, but is not limited to,
transactions conducted through sales outlets, catalogs, or the
Internet or any other similar electronic means.
   (h) "Stewardship organization" means the nonprofit organization
created by the manufacturers to implement the architectural paint
stewardship program described in Section 48703.  
   48702.  (a) A manufacturer of architectural paint sold in this
state shall, individually or through a stewardship organization,
submit an architectural paint stewardship plan to the board to
develop and implement a recovery program to reduce the generation of
postconsumer architectural paint, promote the reuse of postconsumer
architectural paint, and manage the end-of-life of postconsumer
architectural paint, in an environmentally sound fashion, including
collection, transportation, processing, and disposal.
   (b) (1) A manufacturer or retailer shall not sell or offer for
sale in this state architectural paint to any person in this state
unless the manufacturer is in compliance with this chapter.
   (2) The sales prohibition in paragraph (1) shall be effective on
the 120th day after the notice described in subdivision (c) lists the
manufacturer on the board's Internet Web site and shall remain in
effect until the manufacturer is no longer listed on the board's
Internet Web site.
   (c) On July 1, 2011, and on January 1 and July 1 annually
thereafter, the board shall post a notice on its Internet Web site
listing manufacturers that are not in compliance with this chapter.
   (d) A wholesaler or a retailer that distributes or sells
architectural paint shall monitor the board's Internet Web site to
determine if the sale of a manufacturer's architectural paint is in
compliance with this chapter.  
   48703.  (a) On or before January 1, 2011, a manufacturer or
designated stewardship organization shall submit an architectural
paint stewardship plan to the board.
   (b) (1) The plan shall demonstrate sufficient funding for the
architectural paint stewardship program as described in the plan,
including a funding mechanism for securing and dispersing funds to
cover administrative, operational, and capital costs, including the
assessment of charges on architectural paint sold by manufacturers in
this state.
   (2) The funding mechanism shall provide for an architectural paint
stewardship assessment for each container of architectural paint
sold by manufacturers in this state and the assessment shall be
remitted to the stewardship organization, if applicable.
   (3) The architectural paint stewardship assessment shall be added
to the cost of all architectural paint sold to California retailers
and distributors, and each California retailer or distributor shall
add the assessment to the purchase price of all architectural paint
sold in the state.
   (4) The architectural paint stewardship assessment shall be
approved by the board as part of the plan, and shall be sufficient to
recover, but not exceed, the cost of the architectural paint
stewardship program.
   (c) The plan shall address the coordination of the architectural
paint stewardship program with local household hazardous waste
programs, including contracting for the costs for architectural paint
collected by the household hazardous waste programs, where
practical.
   (d) The plan shall include consumer, contractor, and retailer
education and outreach efforts to promote the source reduction and
recycling of architectural paint. This information may include, but
is not limited to, developing, and updating as necessary, educational
and other outreach materials aimed at retailers of architectural
paint. These materials shall be made available to the retailers.
These materials may include, but are not limited to, one or more of
the following:
   (1) Signage that is prominently displayed and easily visible to
the consumer.
   (2) Written materials and templates of materials for reproduction
by retailers to be provided to the consumer at the time of purchase
or delivery, or both. Written materials shall include information on
the prohibition of improper disposal of architectural paint.
   (3) Advertising or other promotional materials, or both, that
include references to architectural paint recycling opportunities.
   (e) On or before July 1, 2011, or two months after a plan is
approved pursuant to Section 48704, the manufacturer or stewardship
organization shall implement the architectural paint stewardship
program described in the approved plan.  
   48704.  (a) The board shall review and approve the architectural
paint stewardship plan within 90 days of receipt. A plan not acted
upon by the board within 90 days shall be deemed adopted.
   (b) The board shall review the annual report required pursuant to
Section 48705 and within 90 days of receipt shall adopt a finding of
compliance or noncompliance with the provisions of this act.
   (c) The board shall enforce this chapter.
   (d) The stewardship organization shall pay the board
administrative fees in the amount of ____ dollars ($____) when the
plan is submitted for review and approval and thereafter an annual
administrative fee of 0.05 percent of the architectural paint
stewardship program costs as reported under Section 48705.
   (e) (1) A civil penalty may be administratively imposed by the
board on any person who violates this chapter in an amount of one
thousand dollars ($1,000) for each violation.
   (2) Any person who intentionally, knowingly, or negligently
violates this chapter may be assessed a civil penalty by the board of
up to ten thousand dollars ($10,000) for each violation.
   (3) Any penalties collected by the board shall be used to offset
the cost of the review and approval architectural paint stewardship
plans and annual reports and of enforcement activities.  
   48705.  By July 1, 2012, and each year thereafter, a manufacturer
of architectural paint sold in this state shall, individually or
through a representative stewardship organization, submit a report to
the board describing its architectural paint recovery efforts. At a
minimum, the report shall include all of the following:
   (a) The total volume of architectural paint sold in this state
during the preceding calendar year.
   (b) The total volume of postconsumer architectural paint recovered
in this state during the preceding calendar year.
   (c) A description of methods used to collect, transport, and
process postconsumer architectural paint in this state.
   (d) The total cost of implementing the architectural paint
stewardship program.
   (e) An evaluation of how the architectural paint stewardship
program's funding mechanism operated.
   (f) Examples of educational materials that were provided to
consumers the first year and any changes to those materials in
subsequent years.  
   48706.  Any action taken by a manufacturer or representative
stewardship organization regarding the cost recovery system or the
collecting, transporting, or processing of postconsumer architectural
paint, pursuant to the requirements of this chapter and only to the
extent necessary to plan and implement the cost recovery system,
collection system, or recycling system, is not a violation of the
Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2
of Division 7 of the Business and Professions Code), the Unfair
Practices Act (Chapter 4 (commencing with Section 17000) of Part 2 of
Division 7 of the Business and Professions Code), or any other state
law relating to antitrust, regulation of trade, or regulation of
commerce.