BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
1343 (Huffman)
Hearing Date: 08/27/2009 Amended: 07/13/2009
Consultant: Brendan McCarthy Policy Vote: EQ 5-2
AB 1343 (Huffman)
Page 2
_________________________________________________________________
____
BILL SUMMARY: This bill requires manufacturers of architectural
paint to develop and implement stewardship programs to manage
post-consumer paint. The stewardship plans would be reviewed and
approved by the Integrated Waste Management Board. Manufacturers
will also be required to report annually on the performance of
the stewardship program. The Waste Board would evaluate the
reports and determine compliance with the requirements of the
bill.
_________________________________________________________________
____
Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
Fee revenues ($200) ($150) Special
*
Waste Board implementation $150
$300Special *
*Integrated Waste Management Account.
_________________________________________________________________
____
STAFF COMMENTS: Suspense file. As proposed to be amended.
Current law generally prohibits the disposal of latex paint in
the land or onto waters of the state. Current law also
classifies most oil-based paints as hazardous waste, which
precludes them from being disposed of in solid waste landfills.
According the Integrated Waste Management Board (Waste Board),
post-consumer paint is the largest source of household hazardous
waste in California, making up about one-third of total
household hazardous waste collected in the state. However, only
about 5 percent of households in the state make use of local
household hazardous waste programs.
This bill establishes the Architectural Paint Recovery Program
in the state and generally requires paint manufacturers to
develop and implement a stewardship program for post-consumer
paint. The bill prohibits manufacturers from selling paint in
the state if they are not in compliance with the requirements of
the bill.
AB 1343 (Huffman)
Page 2
The bill defines architectural paint as paint sold in containers
of five gallons or less for commercial or homeowner use,
excluding spray paint or paints sold for industrial or original
equipment manufacturer use.
The bill requires manufacturers, or designated stewardship
organizations, to submit a stewardship plan to the Waste Board.
Manufacturers that are not in compliance with the requirements
of the bill are prohibited from selling paint in the state.
Wholesalers or retailers that sell architectural paint are
required to monitor the Waste Board's website to determine
whether specific architectural paint can be sold in the state.
Beginning January 1, 2011, the bill requires manufacturers of
architectural paint to submit stewardship plans to the Waste
Board. The plans must: 1) demonstrate adequate funding for
implementation, 2) provide for an assessment to be included in
the price of all architectural paint sold in the state, 3)
address the coordination between the stewardship program and
local hazardous household waste programs, 4) include goals for
the reduction of post-consumer paint, and 5) include information
on education and outreach efforts to be undertaken through the
plan. Manufactures are required to implement the plan, upon
approval by the Waste Board.
The bill requires manufacturers to submit annual reports to the
Waste Board describing their recovery efforts. The annual report
must include information on paint sold in the state, paint
recovered under the stewardship program, methods used in the
program, the cost of the program, an evaluation of the funding
mechanism for the stewardship program, and examples of education
materials used.
Manufacturers or stewardship organizations are required under
the bill to pay the Waste Board an unspecified fee to cover the
cost of plan review and approval and thereafter they are
required to pay an annual fee of 0.05 percent of the stewardship
program cost to the Waste Board.
The bill requires the Waste Board to review and approve all
stewardship plans within 90 days of submittal. The Waste Board
is also required to review annual reports from manufacturers or
stewardship organizations and determine compliance with the
requirements of the bill within 90 days. The Waste Board is
AB 1343 (Huffman)
Page 2
required to enforce the provisions of the bill. The bill
authorizes the Waste Board to impose administrative penalties of
$1,000 for violations of the provisions of the bill and
administrative penalties up to $10,000 for intentional
violations.
The Waste Board estimates that the annual fee, as described in
the bill, will generate about $15,000 per year in revenues, plus
unspecified fee revenues for the review of the stewardship
plans.
Committee staff estimates that the Waste Board will require two
to three technical staff positions and one legal counsel
position to review and approve the stewardship plans, to review
annual reports and determine compliance, and to enforce the
provisions of the bill.
The proposed author's amendments would specify that
manufacturers would pay an administrative fee of $50,000 for the
costs of plan review by the Waste Board. The amendments would
also increase the annual fee to 0.5 percent of program costs,
estimated to yield about $150,000 per year in fees.