AB 1167

This bill requires paint manufacturers (manufacturers) to operate a program

to collect used paint. The bill defines “paint” as any kind of architectural paint sold

in containers of five gallons or less.

Under the bill, no manufacturer or paint retailer (retailer) may sell paint in this

state unless the manufacturer 1) is operating under a paint stewardship plan that

has been approved by the Department of Natural Resources; 2) pays an initial fee and

an annual fee to DNR; 3) submits annual reports to DNR; and 4) maintains a website

with information about brands covered by an approved paint stewardship plan.

Under the bill, all of these requirements may be undertaken on behalf of a

manufacturer by a paint stewardship organization, which must be a nonprofit

organization organized by or made up of one or more manufacturers.

To be approved by DNR, a proposed paint stewardship plan must include

specific information, such as a list of all the brands of paint the manufacturer sells

in this state; provisions for collecting paint in a cost-effective manner that is

convenient to consumers, without charging a fee at the time or place of collection; a

goal for the number and geographic distribution of paint collection sites; a process

for properly managing collected paint using environmentally sound management

practices; a description of an education and outreach program that the manufacturer

will undertake to inform consumers about paint collection opportunities and to

promote the reduction, reuse, and recycling of paint in this state; and a list of

exemptions to any existing laws that will be needed to allow for the collection and

temporary storage of paint. A manufacturer must also include in its proposed paint

stewardship plan the amount of any fee that the manufacturer or a retailer will

include in the sales price of any paint to cover the costs of implementing and

sustaining the requirements of the bill. Such amount must be reviewed by an

independent auditor, selected by the manufacturer in consultation with DNR, to

ensure that the proposed fee does not exceed the costs to the manufacturer or retailer

to implement and sustain the requirements under the bill.

The bill requires DNR to approve or deny a proposed paint stewardship plan

within 60 days of receipt. If DNR denies a proposed plan, the applicant must submit

an amended plan within 45 days of the denial. The bill requires paint manufacturers

to begin implementing an approved plan within six months of approval.

The bill also requires DNR to maintain a website that lists the names of

manufacturers with approved plans and the brands of paint covered by an approved

paint stewardship plan and includes copies of all annual reports submitted by

manufacturers with approved paint stewardship plans.

Finally, the bill provides that a manufacturer, retailer, or paint stewardship

organization is not liable for any claims of a violation of antitrust laws or laws

relating to fraudulent, deceptive, or unfair methods of competition or trade practices

arising from conduct that complies with an approved paint stewardship plan.