BILL ANALYSIS AB 1343 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1343 (Huffman) As Amended August 31, 2010 Majority vote ----------------------------------------------------------------- |ASSEMBLY: |48-29|(June 2, 2009) |SENATE: |21-15|(August 31, | | | | | | |2010) | ----------------------------------------------------------------- Original Committee Reference: NAT. RES. SUMMARY : Establishes the architectural paint recovery program. The Senate amendments 1)Updated the administrative agency responsible for the architectural paint recovery program from the California Integrated Waste Management Board (CIWMB) to the recently created Department of Resources Recycling and Recovery (Cal-Recycle) 2)Extend the date for manufactures to submit stewardship plans to Cal-Recycle from January 1, 2010, to April 1, 2012 . 3)Extends the dates for Cal-Recycle to post the list of manufacturers in compliance with the Chapter to conform with the extended plan due-date. 4)Requires the stewardship organization to pay Cal-Recycle administrative fees in an amount determined by Cal-Recycle to be sufficient to cover its costs. 5)Limits the anti-trust exemption for stewardship activities related to the product stewardship assessment or the output or production for paint or any agreement restricting the geographic area or customers to which paint will be sold. 6)Remove the program sunset. AS PASSED BY THE ASSEMBLY , this bill: 1)Required a manufacturer of paint sold in California, individually or through a representative organization, to AB 1343 Page 2 implement a recovery program "to undertake responsibility for the development and implementation of strategies" to reduce generation, promote reuse, and manage waste paint through the collection, transport, and processing of postconsumer paint. 2)Authorized the manufacturer to establish a fee on consumers to cover the costs of the program. 3)Required, by July 1, 2010, and annually thereafter, a manufacturer to submit a report to the CIWMB describing its paint recovery efforts. 4)By January 1, 2012, required CIWMB to submit a report to the Legislature describing the results of the program and to recommend whether or not the program should be extended and any modifications needed. Required CIWMB to include information about any financial savings to state or local government. 5)Specified that any action taken by a manufacturer under the program is not a violation of the Cartwright Act, the Unfair Practices Act, or any other state law relating to antitrust, regulation of trade, or regulation of commerce. 6)Sunsets on July 1, 2013, and is repealed on January, 1, 2014. FISCAL EFFECT : According to the Assembly Appropriations Committee, one-time special fund costs in the range of $150,000 to $300,000 to CIWMB to review reports submitted by paint manufacturers and to prepare the report required by this bill. (Integrated Waste Management Account) COMMENTS : 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. For consumers, it is classified as a household hazardous waste (HHW). According to CIWMB, leftover paint is the largest source of HHW in California. In fiscal year 2007-2008, 2.4 million gallons of AB 1343 Page 3 leftover paint were collected, comprising 29% of HHW. 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, only 5% of households in California use local HHW programs. In 2003, the Paint Product Stewardship Initiative (PPSI) began facilitating a national dialogue to reduce the generation of leftover paint, while increasing reuse and recycling opportunities. In 2007, PPSI mediated an agreement among paint manufacturers, government agencies, recyclers, contractors, and other interested parties to establish an industry-funded paint stewardship organization that will collect and manage leftover paint using a "pass-through" cost to consumers. As a first step in implementing the agreement, in 2008 a demonstration project was established in Minnesota. This bill is consistent with the national effort by authorizing manufacturers to implement the program through a representative organization. According to the author, this bill will reduce the financial burden on local governments and protect the environment by requiring manufacturers to take responsibility for establishing and financing a safe and reliable system for the recovery and proper management of leftover paint. Analysis Prepared by : Elizabeth MacMillan / NAT. RES. / (916) 319-2092 FN: 0006913