BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 1343|
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                                 THIRD READING


          Bill No:  AB 1343
          Author:   Huffman (D), et al
          Amended:  7/13/09 in Senate
          Vote:     21

           
           SENATE ENV. QUALITY COMMITTEE  :  5-2, 7/6/09
          AYES:  Simitian, Corbett, Hancock, Lowenthal, Pavley
          NOES:  Runner, Ashburn
           
          ASSEMBLY FLOOR  :  48-29, 6/2/09 - See last page for vote


           SUBJECT  :    Solid waste:  architectural paint:  recovery  
          program

           SOURCE  :     Californians Against Waste


           DIGEST  :    This bill establishes the architectural paint  
          recovery program and enforced by the California Integrated  
          Waste Management Board for recycling and reuse purposes for  
          the number one source of household waste.

           ANALYSIS  :    

          Existing law:

          1. Establishes the Mercury Thermostat Collection Act of  
             2008 that sets forth a program for manufacturers of  
             mercury-containing thermostats to manage the waste  
             thermostats.  (Section 25214.8.10 et seq. of the Health  
             and Safety Code)
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          2. Requires every retailer of cell phones sold in this  
             state shall have in place a system for the acceptance  
             and collection of used cell phones for reuse, recycling,  
             or proper disposal.  (Section 42494 of the Public  
             Resources Code)

          3. Establishes the Rechargeable Battery Recycling Act of  
             2006 that requires every retailer to have in place a  
             system for the acceptance and collection of used  
             rechargeable batteries for reuse, recycling, or proper  
             disposal (Section 42453 of the Public Resources Code)

          4. Establishes the Electronic Waste Recycling Act, overseen  
             by the California Integrated Waste Management Board  
             (CIWMB) in partnership with the Department of  Toxic  
             Substances Control (DTSC), to collect and recycle  
             electronic waste (Section 42460 et seq. of the Public  
             Resources Code and Section 25214.10 et seq. of the  
             Health and Safety Code)

          5. Prohibits the disposal of liquid latex paint in the land  
             or into the waters of the state unless authorized by  
             applicable provisions of law.   (Section 25217.1 of the  
             Health and Safety Code)  

          6. Allows for management, storage and transportation of  
             latex paint for recycling as described.  (Sections  
             25217.3 and 25217 of the Health and Safety Code)

          7. Prohibits the disposal of hazardous waste, including  
             most oil-based paints, in a solid waste landfill.

          8. Authorizes the Air Resources Board and local air  
             districts to adopt and enforce rules regarding  
             architectural paints or coatings, including achieving a  
             feasible reduction in volatile organic compounds emitted  
             by the architectural paint or coating.  (Section 40916  
             of the Health and Safety Code)

          9. Requires state agencies to use recycled latex paint with  
             at least 50 percent postconsumer recycled content.   
             (Section 12209 of the Public Contract Code)


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          This bill:  

          1. Makes findings and declarations regarding the management  
             of post consumer architectural paint. 

          2. Establishes the Architectural Paint Recovery Program  
             (Program) and states the purpose of the Program is to  
             require paint manufacturers to develop and implement a  
             program to manage paint and reduce the costs and  
             environmental impacts of postconsumer paint in  
             California. 

          3. Requires  manufacturers of architectural paint,  
             individually or through a stewardship organization,  
             submit an architectural paint stewardship plan to the  
             CIWMB 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.

          4. Prohibits manufacturers or retailers from selling  
             architectural paint in this state unless the  
             manufacturer is in compliance with the new chapter.

          5. Requires the CIWMB, on July 1, 2011, and on January 1  
             and July 1 annually thereafter, to post a notice on its  
             Internet website listing manufacturers that are not in  
             compliance with this chapter and requires a wholesaler  
             or a retailer that distributes or sells architectural  
             paint shall monitor CIWMB's website to determine if the  
             sale of a manufacturer's architectural paint is in  
             compliance with this chapter.  

          6. Requires, on or before January 1, 2011, a manufacturer  
             or designated stewardship organization shall submit an  
             architectural paint stewardship plan to the CIWMB.  The  
             plan shall:

             A.    Demonstrate sufficient funding for the  
                architectural paint stewardship program as described  
                in the plan, including a funding mechanism for  

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                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.

                (1)      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.

                (2)      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.

                (3)      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.

             B.    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. 

             C.    Include goals established by the manufacturer or  
                stewardship organization to reduce the generation of  
                postconsumer paint, to promote the reuse 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.

             D.    Include consumer, contractor, and retailer  
                education and outreach efforts to promote the source  

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                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.

          7. Requires, on or before July 1, 2011, or two months after  
             a plan is approved, the manufacturer or stewardship  
             organization to implement the architectural paint  
             stewardship program described in the approved plan.  

          8. Requires the CIWMB to 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.

          9. Requires, 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 CIWMB  
             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  

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                to those materials in subsequent years.  

          10.Requires the CIWMB to review the annual report required  
             within 90 days of receipt shall adopt a finding of  
             compliance or noncompliance with the provisions of this  
             chapter and to enforce this chapter.  The board shall  
             enforce this chapter.

          11.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 in the plan.

          12.Establishes that a civil penalty may be administratively  
             imposed by the CIWMB on any person who violates this  
             chapter in an amount of $1,000 for each violation and  
             for any person who intentionally, knowingly, or  
             negligently violates this chapter may be assessed a  
             civil penalty by the CIWMB of up to $10,000 for each  
             violation.

          13.Requires 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.  

          14.States that 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.

           Comments  

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          Both latex and oil-based paints are considered hazardous  
          waste in California, making their disposal in a solid waste  
          landfill prohibited.  Paint contains resins, solvents,  
          pigments, and additives.  While latex paint is less  
          hazardous than oil-based, its ingredients are hazardous to  
          public health and the environment.  Paint should not be  
          allowed to "dry out" for disposal, or poured down storm  
          drains or into the sewer system.  According to CIWMB,  
          postconsumer paint is the largest source of household  
          hazardous waste in California.  In the 2007-08 fiscal year,  
          2.4 million gallons of postconsumer paint was collected,  
          comprising 29 percent of household hazardous waste.   
          Management of this paint costs local governments  
          approximately $6-8 per gallon, for a total estimated cost  
          of $14-18 million annually.  According to the author's  
          office, only five percent of households in California use  
          local household hazardous waste programs.

           NOTE:  Please refer to the Senate Environmental Quality  
                 Committee analysis for background information on  
                 product stewardship and the extended producer  
                 responsibility programs.

           Related legislation  .  AB 283 (Chesbro), 2009-10 Session,  
          creates the California Product Stewardship Act to establish  
          an extended producer responsibility framework that  
          encourages producers to be comprehensively responsible for  
          the life cycle of their products.  (In the Assembly  
          Appropriations Committee.)

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

           ASSEMBLY FLOOR  : 
          AYES:  Ammiano, Arambula, Beall, Blumenfield, Brownley,  
            Buchanan, Caballero, Charles Calderon, Carter, Chesbro,  
            Coto, Davis, De La Torre, De Leon, Eng, Evans, Feuer,  
            Fong, Fuentes, Galgiani, Hall, Hayashi, Hernandez, Hill,  
            Huffman, Jones, Krekorian, Lieu, Bonnie Lowenthal, Ma,  
            Mendoza, Monning, Nava, John A. Perez, V. Manuel Perez,  
            Portantino, Price, Ruskin, Salas, Saldana, Skinner,  
            Solorio, Swanson, Torlakson, Torres, Torrico, Yamada,  
            Bass

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          NOES:  Adams, Anderson, Bill Berryhill, Tom Berryhill,  
            Blakeslee, Conway, Cook, DeVore, Duvall, Fletcher,  
            Fuller, Gaines, Garrick, Gilmore, Hagman, Harkey, Huber,  
            Jeffries, Knight, Logue, Miller, Nestande, Niello,  
            Nielsen, Silva, Smyth, Audra Strickland, Tran, Villines
          NO VOTE RECORDED:  Block, Emmerson, Furutani


          TSM:mw  7/22/09   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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