BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1343
                                                                  Page 1


          ASSEMBLY THIRD READING
          AB 1343 (Huffman)
          As Amended  May 4, 2009
          Majority vote 

           NATURAL RESOURCES   7-2         APPROPRIATIONS      12-5        
           
           ------------------------------------------------------------------ 
          |Ayes:|Skinner, Brownley,        |Ayes:|De Leon, Ammiano, Charles  |
          |     |Chesbro,                  |     |Calderon, Davis, Fuentes,  |
          |     |De Leon, Hill, Huffman,   |     |Hall, John A. Perez,       |
          |     |Logue                     |     |Price, Skinner, Solorio,   |
          |     |                          |     |Torlakson, Krekorian       |
          |     |                          |     |                           |
          |-----+--------------------------+-----+---------------------------|
          |Nays:|Gilmore, Knight           |Nays:|Nielsen, Duvall, Harkey,   |
          |     |                          |     |Miller,                    |
          |     |                          |     |Audra Strickland           |
           ------------------------------------------------------------------ 

           SUMMARY  :  Establishes the architectural paint recovery program.   
          Specifically,  this bill  : 

          1)Requires a manufacturer of paint sold in California,  
            individually or through a representative organization, to  
            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)Authorizes the manufacturer to establish a fee on consumers to  
            cover the costs of the program.  

          3)Requires, by July 1, 2010, and annually thereafter, a  
            manufacturer to submit a report to the California Integrated  
            Waste Management Board (CIWMB) describing its paint recovery  
            efforts.

          4)Requires, by January 1, 2012, 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.  Requires CIWMB to include  
            information about any financial savings to state or local  
            government.  








                                                                  AB 1343
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          5)Specifies 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.   


           EXISTING LAW  :

          1)Prohibits the disposal of latex architectural paint in the  
            land or waters of the state and solid waste landfills.  

          2)Permits recyclable latex paint to be collected and processed  
            for recycling.

          3)Requires state agencies to use recycled latex paint with at  
            least 50% postconsumer recycled content.  
           
          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  
          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.   









                                                                  AB 1343
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          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 


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