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 MemberTorlaksonCoauthors: Assembly Members Ma and Torlakson ) FEBRUARY 27, 2009 An act to addand repealChapter 5 (commencing with Section 48700)ofto 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: architecturalpaint.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.