Bill Text: HI SB2275 | 2010 | Regular Session | Introduced

Hawaii Senate Bill 2275 (Prior Session Legislation)

Introduced

Bill Title: Architectural Paint Stewardship Program; Office of Environmental Quality Control

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Introduced - Dead) 2010-02-04 - (S) The committee on ENE deferred the measure. [SB2275 Detail]

Download: Hawaii-2010-SB2275-Introduced.html

THE SENATE	S.B. NO.	2275
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII

A BILL FOR AN ACT

relating to architectural paint.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that it is in the best interest of the State for architectural paint manufacturers to finance and manage an environmentally sound, cost-effective architectural paint stewardship pilot program that undertakes responsibility for the development and implementation of strategies to reduce the generation of post-consumer architectural paint; promote the reuse of post-consumer architectural paint; and collect, transport, and process post-consumer architectural paint for end-of-product-life management, including reuse, recycling, energy recovery, and disposal.

SECTION 2. Chapter 342I, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . Architectural paint stewardship program

§342I-A Definitions. For the purposes of this part:

"Architectural paint" means interior and exterior architectural coatings sold in containers of five gallons or less but does not include industrial coatings, specialty coatings, or the coatings on original equipment or materials used in construction.

"Director" means the director of environmental quality control.

"Distributor" means a company that has a contractual relationship with one of more producers to market and sell architectural paint to retailers in this State.

"Energy recovery" means recovery in which all or a part of the solid waste materials of architectural paint are processed to use the heat content or other forms of energy from the solid waste materials.

"Post-consumer architectural paint" means architectural paint not used and no longer wanted by its purchaser.

"Producer" means a person or entity that manufactures architectural paint that is sold or offered for sale in this State.

"Program" means the statewide architectural paint stewardship program established by this part.

"Recycling" means any process by which discarded products, components, and byproducts are transformed into new usable or marketable materials in a manner in which the products may lose their original composition but does not include energy recovery or energy generation by means of combusting discarded products, components, or byproducts with or without other waste products from post-consumer architectural paint.

"Retailer" means any person who sells or offers for sale architectural paint in this State.

"Reuse" means the return of a product into the economic stream for use in the same kind of application intended at the time of the product's original manufacture without a change in the product's original composition.

"Sell" or "sale" means the transfer of title for consideration and includes remote sales conducted through sales outlets, catalogs, the Internet, or other electronic means.

§342I-B Participation in architectural paint stewardship program. (a) No producer, distributor, or retailer shall sell or offer for sale architectural paint to any person in this State unless the producer of the architectural paint is a current participant in a statewide architectural paint stewardship program organized by a stewardship organization. For the purposes of this part, a distributor or retailer is in compliance with this section if, on the date that the architectural paint was purchased or ordered from the producer or its agent, the website maintained by the office of environmental quality control lists the producer and the producer's product brand as participating in an architectural paint stewardship program.

(b) At the time of sale to an end user, a seller, including a producer, distributer, or retailer shall provide the purchaser with information on available end-of-product-life management options offered through an architectural paint stewardship program.

§342I-C Architectural paint stewardship assessment. (a) Pursuant to chapter 91, the director of environmental quality control shall establish a uniform, statewide architectural paint stewardship assessment that is sufficient to pay for the cost of collecting, transporting, and processing post-consumer architectural paint and other necessary operating expenses of an approved architectural paint stewardship program.

(b) The architectural paint stewardship assessment shall be added to the cost of each unit of architectural paint sold by a producer to a retailer, distributor, or end user in the State.

(c) Each producer shall collect the architectural paint stewardship assessment added to each unit of architectural paint sold in the State and shall remit the collected amount to the architectural paint stewardship program with which the producer is affiliated pursuant to section 342I-D.

§342I-D Architectural paint stewardship program; stewardship organization; establishment. (a) No later than January 1, 2011, each producer who sells or offers for sale architectural paint in this State shall establish or join a stewardship organization that shall meet the criteria established by this section.

(b) A stewardship organization shall be a corporation, non-profit corporation, or other entity created by a producer or group of producers to implement the architectural paint stewardship program described in this part.

(c) No later than March 1, 2011, a stewardship organization shall submit a plan for a statewide architectural paint stewardship program to the director of environmental quality control for approval.

(d) Every plan submitted pursuant to subsection (c) shall:

(1) Provide for convenient and available statewide collection of post-consumer architectural paint in all areas of the State;

(2) Identify each producer participating in the program and the brands of architectural paint produced by each producer;

(3) Include a funding mechanism whereby each architectural paint producer remits to the stewardship organization payment of the architectural paint stewardship assessment established under section 342I-C for each container of architectural paint the producer produces for sale in this State; provided that the architectural paint stewardship assessment shall not be collected directly from the end user at the point of collection of post-consumer architectural paint;

(4) Provide for the development and implementation of strategies to reduce the generation of post-consumer architectural paint;

(5) Include strategies to promote the reuse of post-consumer architectural paint;

(6) Include plans for the negotiation and execution of contracts for the collection, transportation, and processing of post-consumer architectural paint that include recycling, energy recovery, and disposal using sound management practices;

(7) Provide for the promotion of the architectural paint stewardship program, including through the distribution of educational materials describing collection opportunities, waste prevention, reuse, recycling, and disposal. All educational materials distributed pursuant to this paragraph shall include a statement that funding for the operation of the architectural paint stewardship program comes from the architectural paint stewardship assessment established by section 342I-C and added to the price of architectural paint sold in the State; and

(8) Ensure that the architectural paint stewardship program shall be operated according to sound management practices, which shall include adequate recordkeeping and the tracking and documentation of the use, reuse, recycling, energy recovery, and disposal of architectural paint within the State.

(e) The director of environmental quality control shall approve each plan that meets the criteria established by subsection (d).

(f) Beginning on July 1, 2011 or sixty days after the plan is approved under subsection (e), the stewardship organization shall implement the architectural paint stewardship program approved by the director under this section and shall begin its operations which shall include implementation of all required elements of the approved plan.

§342I-E Stewardship organization not a restraint on trade. A stewardship organization operating pursuant to this part and subject to the supervision of the office of environmental quality control shall be immune from federal or state antitrust laws for the limited purpose of establishing and operating an architectural paint stewardship program. The activities of the stewardship organization that comply with this part shall not be deemed a conspiracy or combination in restraint of trade or an illegal monopoly, or an attempt to lessen competition or fix prices arbitrarily, or the creation of a combination or pool, or to accomplish any improper or illegal purpose. Any cooperation or agreement to establish or operate a stewardship organization under this part shall not be considered as illegal, in restraint of trade, or as part of a conspiracy or combination to accomplish an illegal purpose or act.

§342I-F Oversight of stewardship organizations. (a) The office of environmental quality control shall supervise the conduct of a stewardship organization, including but not limited to conduct related to payments made by architectural paint producers to the stewardship organization for the architectural paint stewardship assessment.

(b) The office of environmental quality control may require a stewardship organization to take any action that the director deems necessary to:

(1) Ensure that a stewardship organization is operating in compliance with this part;

(2) Ensure that an architectural paint stewardship program is in compliance with this part; and

(3) Enjoin conduct that is not authorized by the office of environmental quality control or by law.

(c) Effective July 1, 2011, the office of environmental quality control shall publish on its website a list of producers currently in compliance with section 342I-D and the brand names of the architectural paint products produced by those producers for sale in this State.

(d) The director may designate employees of the office of environmental quality control to carry out the responsibilities of the director or of the office of environmental quality control pursuant to this part.

(e) The director shall adopt rules pursuant to chapter 91 to carry out the purposes of this part.

§342I-G Reporting requirements. (a) No later than September 1, 2012, and by September 1 of each successive year, a stewardship organization shall submit a report to the director describing the annual operations of the stewardship organization. The report shall contain, at minimum:

(1) A description of the methods used to collect, transport, recycle, process, reuse, recover energy from, and dispose of post-consumer architectural paint;

(2) The types of architectural paint collected in the State under the post-consumer architectural paint stewardship program and the total volume of each type collected;

(3) The volume of post-consumer architectural paint collected in the State by method of disposition including reuse, recycling, energy recovery, and disposal;

(4) An independent financial audit of the architectural paint stewardship program including itemized statements of program expenditures and costs and an evaluation of the funding mechanism;

(5) Samples of educational materials provided to consumers of architectural paint;

(6) An evaluation of the methods used to disseminate educational materials and an assessment of the effectiveness of educational materials, including measurable levels of waste prevention and reuse; and

(7) An analysis of the environmental costs and benefits of collecting and recycling latex paint.

(b) Data contained in the annual report of a stewardship organization submitted pursuant to this section shall not be subject to disclosure under chapter 92; provided that the department may disclose information contained in the reports in aggregate form.

§342I-H Enforcement and penalties. (a) In accordance with chapter 91, the office of environmental quality control may issue declaratory rulings, hold contested case hearings, and issue decisions and orders to enforce this part. An action may be initiated by the office of environmental quality control or upon petition by an interested party pursuant to section 91-8.

(b) The office of environmental quality control may issue penalties upon a finding of noncompliance with this part. Penalties may include, but shall not be limited to, fines established by the director pursuant to chapter 91 and orders to cease the sale of architectural paint within the State.

§342I-I Product stewardship fund. (a) There is established outside of the state treasury a special fund to be known as the product stewardship fund to be administered by the office of environmental quality control to implement the policies and goals of this part. The fund shall consist of fees paid by stewardship organizations pursuant to section 342I-J. Interest earned from the balance of the fund shall become a part of the fund. The office of environmental quality control shall adopt rules regarding the distribution of moneys from the fund, including for administrative and personnel costs associated with oversight of stewardship organizations.

(b) The office of environmental quality control shall require all stewardship organizations to contribute to the product stewardship fund in accordance with section 342I-J.

(c) The office of environmental quality control shall designate the method by which contributions to the product stewardship fund shall be collected.

§342I-J Fees. (a) The following fees shall be paid by stewardship organizations to the office of environmental quality control for deposit into the product stewardship fund:

(1) $10,000 upon submission of a plan for approval pursuant to section 342I-D; provided that the fee shall be returned to the stewardship organization if the plan does not receive approval; and

(2) $10,000 annually thereafter on a date to be determined by the office of environmental quality control.

(b) As an alternative to the fees specified in this section, the office of environmental quality control may establish a fee schedule that is based on an average of the results of the financial audits described in section 342I-G; provided that fees adopted pursuant to this subsection shall not exceed 0.05 per cent of the average architectural paint stewardship program costs reported in the financial audits.

(c) All fees collected under this section shall be deposited into the product stewardship fund established by section 342I-I."

SECTION 3. The office of environmental quality control shall submit a report to the legislature no later than sixty days before the commencement of the 2015 regular session describing the results of the architectural paint stewardship program, recommending whether the program should be made permanent, and recommending any modifications necessary to improve its functioning and efficiency. The report shall include an accounting of fees collected and deposited into the product stewardship fund.

SECTION 4. This Act shall take effect on July 1, 2010, and shall be repealed on June 30, 2015.

INTRODUCED BY:	_____________________________

Report Title:

Architectural Paint Stewardship Program; Office of Environmental Quality Control

Description:

Establishes a pilot program to require producers of architectural paint sold in this State to establish or join a stewardship organization to implement an architectural paint stewardship program that provides for the collection, transportation, and processing of post-consumer architectural paint. Provides for oversight by the office of environmental quality control. Establishes the product stewardship fund to offset administrative costs.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.