BILL NUMBER: AB 1343	CHAPTERED
	BILL TEXT

	CHAPTER  420
	FILED WITH SECRETARY OF STATE  SEPTEMBER 28, 2010
	APPROVED BY GOVERNOR  SEPTEMBER 28, 2010
	PASSED THE SENATE  AUGUST 31, 2010
	PASSED THE ASSEMBLY  AUGUST 31, 2010
	AMENDED IN SENATE  AUGUST 31, 2010
	AMENDED IN SENATE  JULY 13, 2009
	AMENDED IN SENATE  JUNE 24, 2009
	AMENDED IN ASSEMBLY  MAY 4, 2009

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

                        FEBRUARY 27, 2009

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


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1343, Huffman. Solid waste: architectural 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.
   The California Integrated Waste Management Act of 1989,
administered by the Department of Resources Recycling and Recovery,
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 department. On or before April 1, 2012,
a manufacturer or designated stewardship organization would be
required to submit to the department 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 department, on each container of architectural paint sold in
this state. The bill would require the plan to be reviewed and
approved by the department within 90 days of receipt.
   This bill would require, on or before July 1, 2012, or 3 months
after a plan is approved by the department, 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 listed on the department's
Internet Web site as being in compliance with the bill's
requirements. The prohibition would be in effect on the 120th day
after a notice listing the manufacturers that are in compliance is
posted on the department's Internet Web site and would remain in
effect with regard to a noncompliant manufacturer until that
manufacturer is listed on the department's Internet Web site or can
otherwise demonstrate compliance, as prescribed.
   This bill would authorize the department to administratively
impose civil penalties for violations of the act.
   The bill would also require a stewardship organization to pay the
department annual administrative fees in the amount that is
sufficient to cover the department's full costs of administering and
enforcing the program.
   The bill would establish the Paint Recovery Account in the
Integrated Waste Management Fund, would require the fees to be
deposited in this account, and would require the department to expend
those fees, upon appropriation by the Legislature, to cover the
department's costs to implement the bill's provisions. The bill would
also establish the Paint Recovery Penalty Subaccount in the
Integrated Waste Management Fund, would require the penalties
collected to be deposited in that subaccount, and would authorize the
department to expend those funds, upon appropriation by the
Legislature, to cover the department's costs to implement the bill's
provisions.
    The bill would require manufacturers to submit a report to the
department by July 1, 2013, and each year thereafter, describing
their paint recovery efforts.
   The bill would provide that certain actions taken pursuant to the
program established by the bill do not violate the Cartwright Act or
the Unfair Practices Act.


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 former California Integrated Waste Management Board
estimated 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 former board estimated 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.
  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 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 aerosol spray
paint or architectural coatings purchased for industrial or original
equipment manufacturer use.
   (b) "Consumer" means a purchaser or owner of architectural paint,
including a person, business, corporation, limited partnership,
nonprofit organization, or governmental entity.
   (c) "Department" means the Department of Resources Recycling and
Recovery.
   (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 a 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 department 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) is posted
on the department's Internet Web site, and shall apply to any
manufacturer that is not listed on the department's Internet Web
site, and shall remain in effect until the manufacturer is listed on
the department's Internet Web site or can demonstrate compliance as
described in paragraph (2) of subdivision (c).
   (c) (1) On July 1, 2012, or upon the date the first plan is
approved, whichever date is earlier, the department shall post on its
Internet Web site a list of manufacturers for which the department
has approved a plan pursuant to subdivision (a) of Section 48704. The
department shall update this posting no less than once every six
months thereafter. On and after April 1, 2013, the department shall
post a notice on its Internet Web site listing manufacturers that are
in compliance with this chapter pursuant to subdivision (b) of
Section 48705 and shall update this posting no less than once every
six months.
   (2) A manufacturer that is not listed on the department's Internet
Web site pursuant to this section, but demonstrates to the
satisfaction of the department that it is in compliance with this
chapter before the next notice is required to be posted pursuant to
this section, may request a certification letter from the department
stating that the manufacturer is in compliance. The manufacturer who
receives that letter shall be deemed to be in compliance with this
chapter.
   (d) A wholesaler or a retailer that distributes or sells
architectural paint shall monitor the department'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 April 1, 2012, a manufacturer or
designated stewardship organization shall submit an architectural
paint stewardship plan to the department.
   (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 department as part of the plan, and shall be
sufficient to recover, but not exceed, the cost of the architectural
paint stewardship program. The plan shall require that any surplus
funds be put back into the program to reduce the costs of the
program, including the assessment amount.
   (c) The plan shall address the coordination of the architectural
paint stewardship program with existing local household hazardous
waste collection programs as much as this is reasonably feasible and
is mutually agreeable between those programs.
   (d) The plan shall include goals established by the manufacturer
or stewardship organization to reduce the generation of postconsumer
paint, to promote the reuse of postconsumer paint, and for the proper
end-of-life management of postconsumer paint, including recovery and
recycling of postconsumer paint, as practical, based on current
household hazardous waste program information. The goals may be
revised by the manufacturer or stewardship organization based on the
information collected for the annual report.
   (e) 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.
   (f) Any retailer may participate, on a voluntary basis, as a paint
collection point pursuant to the paint stewardship program.
   48704.  (a) The department shall review the plan within 90 days of
receipt, and make a determination whether or not to approve the
plan. The department shall approve the plan if it provides for the
establishment of a paint stewardship program that meets the
requirements of Section 48703.
   (b) (1) The approved plan shall be a public record, except that
financial, production, or sales data reported to the department by a
manufacturer or the stewardship organization is not a public record
under the California Public Records Act, as described in Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1 of the
Government Code and shall not be open to public inspection.
   (2) Notwithstanding paragraph (1), the department may release a
summary form of financial, production, or sales data if it does not
disclose financial, production, or sales data of a manufacturer or
stewardship organization.
   (c) On or before July 1, 2012, or three months after a plan is
approved pursuant to subdivision (a), whichever date is later, the
manufacturer or stewardship organization shall implement the
architectural paint stewardship program described in the approved
plan.
   (d) The department shall enforce this chapter.
   (e) (1) The stewardship organization shall pay the department an
annual administrative fee pursuant to paragraph (2).
   (2) The department shall impose fees in an amount that is
sufficient to cover the department's full costs of administering and
enforcing this chapter, including any program development costs or
regulatory costs incurred by the department prior to the submittal of
the stewardship plans. Fee revenues collected under this section
shall only be used to administer and enforce this chapter.
   (f) (1) A civil penalty may be administratively imposed by the
department on any person who violates this chapter in an amount of up
to one thousand dollars ($1,000) per violation per day.
   (2) A person who intentionally, knowingly, or negligently violates
this chapter may be assessed a civil penalty by the department of up
to ten thousand dollars ($10,000) per violation per day.
   48705.  (a) On or before July 1, 2013, 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 department describing its architectural paint
recovery efforts. At a minimum, the report shall include all of the
following:
   (1) The total volume of architectural paint sold in this state
during the preceding calendar year.
   (2) The total volume of postconsumer architectural paint recovered
in this state during the preceding calendar year.
   (3) A description of methods used to collect, transport, and
process postconsumer architectural paint in this state.
   (4) The total cost of implementing the architectural paint
stewardship program.
   (5) An evaluation of how the architectural paint stewardship
program's funding mechanism operated.
   (6) An independent financial audit funded from the paint
stewardship assessment.
   (7) Examples of educational materials that were provided to
consumers the first year and any changes to those materials in
subsequent years.
   (b) The department shall review the annual report required
pursuant to this section and within 90 days of receipt shall adopt a
finding of compliance or noncompliance with this chapter.
   48706.  (a) Except as provided in subdivision (c), an action
solely to increase the recycling of architectural paint by a
producer, stewardship organization, or retailer that affects the
types or quantities being recycled, or the cost and structure of any
return program, is not a violation of the statutes specified in
subdivision (b).
   (b) The following statutes are not violated by an action specified
in subdivision (a):
   (1) The Cartwright Act (Chapter 2 (commencing with Section 16700)
of Part 2 of Division 7 of the Business and Professions Code).
   (2) The Unfair Practices Act (Chapter 4 (commencing with Section
17000) of Part 2 of Division 7 of the Business and Professions Code).

   (c) Subdivision (a) shall not apply to any agreement establishing
or affecting the price of paint, except for the architectural paint
stewardship assessment, or the output or production of paint, or any
agreement restricting the geographic area or customers to which paint
will be sold.