State of Illinois
2013 and 2014


Introduced 2/15/2013, by Sen. Linda Holmes


New Act
30 ILCS 105/5.826 new

    Creates the Paint Stewardship Act. Requires each producer to join the representative organization. Requires the representative organization to submit a plan to the Director of the Environmental Protection Agency for the establishment of a paint stewardship program. Sets forth requirements for the program. Requires the representative organization, in conjunction with an independent auditor, to propose, and the Agency to approve, a fee that will be added to the cost of all architectural paint sold to retailers and distributors in this State. Creates a state-action antitrust exemption for actions taken under the Act. Prohibits, after the implementation of the paint stewardship program, a producer, distributor, or retailer from selling or offering for sale architectural paint to any person in the State if the producer is not a member of the representative organization. Authorizes the imposition of civil penalties for violations of the Act. Sets forth fees for the program. Amends the State Finance Act. Creates the Paint Stewardship Fund. Effective January 1, 2015.

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1    AN ACT concerning safety.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 1. Short title. This Act may be cited as the Paint
5Stewardship Act.
6    Section 5. Definitions.
7    "Agency" means the Illinois Environmental Protection
9    "Architectural paint" means interior and exterior
10architectural coatings sold in containers of 5 gallons or less.
11"Architectural paint" does not include industrial, original
12equipment, or specialty coatings.
13    "Director" means the Director of the Illinois
14Environmental Protection Agency.
15    "Distributor" means a company that has a contractual
16relationship with one or more producers to market and sell
17architectural paint to retailers in this State.
18    "Energy recovery" means the process by which all or a
19portion of solid waste materials are processed or combusted in
20order to use the heat content or other forms of energy derived
21from those solid waste materials.
22    "Environmentally sound management practices" means
23procedures for the collection, storage, transportation, reuse,



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1recycling, and disposal of architectural paint, to be
2implemented by the representative organization or that
3organization's contracted partners to ensure (i) compliance
4with all applicable federal, State, and local laws,
5regulations, and ordinances and (ii) the protection of human
6health and the environment. Environmentally sound management
7practices include, but are not limited to, record-keeping, the
8tracking and documenting of the fate of post-consumer paint
9inside and outside of this State, and environmental liability
10coverage for professional services and the operations of the
11contractors working on behalf of the representative
13    "Fund" means the Paint Stewardship Fund.
14    "Paint stewardship assessment" means the amount added to
15the purchase price of architectural paint sold in this State
16that is necessary to cover the cost of collecting,
17transporting, and processing post-consumer paint by the
18representative organization pursuant to the paint stewardship
20    "Post-consumer paint" means architectural paint that is
21not used and that is no longer wanted by a purchaser of
22architectural paint.
23    "Producer" means a manufacturer of architectural paint who
24sells, offers for sale, distributes, or contracts to distribute
25architectural paint in this State.
26    "Recycling" means any process by which discarded products,



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1components, or by-products are transformed into new, usable, or
2marketable materials in a manner in which the original products
3may lose their identity. "Recycling" does not include energy
5    "Representative organization" means the nonprofit
6organization created by producers to implement the paint
7stewardship program described in Section 10 of this Act.
8    "Retailer" means any person who offers architectural paint
9for sale at retail in this State.
10    "Reuse" means the return of a product into the economic
11stream for use in the same kind of application as the product
12was originally intended to be used, without a change in the
13product's identity.
14    "Sell" or "sale" means any transfer of title for
15consideration, including, but not limited to, remote sales
16conducted through sales outlets, catalogues, the Internet, or
17any other similar electronic means.
18    Section 10. Paint stewardship program.
19    (a) On or before March 1, 2015, each producer shall join
20the representative organization, and the representative
21organization shall submit a plan for the establishment of the
22paint stewardship program described in this Section to the
23Director for approval. The paint stewardship program shall:
24        (1) minimize public sector involvement in the
25    management of post-consumer paint by: (A) reducing the



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1    generation of post-consumer paint, (B) promoting the reuse
2    and recycling of post-consumer paint, and (C) negotiating
3    and executing agreements to collect, transport, reuse,
4    recycle, burn for energy recovery, and dispose of
5    post-consumer paint using environmentally sound management
6    practices;
7        (2) provide for convenient and available Statewide
8    collection of post-consumer paint that, at a minimum,
9    provides for collection rates and levels of convenience
10    that are equal to, or greater than, those provided by the
11    collection programs available to consumers before the
12    implementation of the paint stewardship program;
13        (3) propose a paint stewardship assessment; and
14        (4) include a funding mechanism that requires each
15    producer who participates in the representative
16    organization to remit to the representative organization
17    payment of the paint stewardship assessment for each
18    container of architectural paint the producer sells in this
19    State.
20    (b) The plan shall identify each producer participating in
21the paint stewardship program and the brands of architectural
22paint sold in this State covered by the program, and it shall
23address the coordination of the paint stewardship program with
24existing household hazardous waste collection infrastructure,
25as much as is reasonably feasible and mutually agreeable.
26    (c) The Director may approve a plan that meets the



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1requirements of subsections (a) and (b). Not later than 3
2months after submission of the plan, the Director shall
3determine whether to approve the plan.
4    (d) Not later than 3 months after the date the plan is
5approved pursuant to subsection (c), the representative
6organization shall implement the paint stewardship program.
7    (e) Any retailer may participate, on a voluntary basis and
8in accordance with any applicable provision of law or
9regulation, as a paint collection point.
10    (f) Not later than the implementation date of the paint
11stewardship program, the Agency shall list the names of
12participating producers and the brands of architectural paint
13covered by the paint stewardship program on its website.
14    (g) The Paint Stewardship Fund is hereby created as a
15special fund in the State Treasury. Upon submission of the
16paint stewardship plan required by this Section, each
17representative organization shall pay to the Agency a fee of
18$10,000, which the Agency shall deposit into the Paint
19Stewardship Fund. Upon approval of a paint stewardship program,
20the representative organization shall also pay to the Agency an
21annual fee of $20,000, which the Agency shall deposit into the
22Fund. Moneys in the Fund and interest attributable to those
23moneys shall be appropriated to the Agency for the following
24purposes: review and approval of plans for the establishment of
25a paint stewardship program, oversight and enforcement of the
26program, and other reasonable administrative costs of the



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2    Section 15. Paint stewardship assessment.
3    (a) On or before March 1, 2015, the representative
4organization shall propose a uniform paint stewardship
5assessment for all architectural paint sold in this State. An
6independent auditor shall review the proposed paint
7stewardship assessment to ensure that it does not exceed the
8costs of maintaining the paint stewardship program, and the
9auditor shall recommend an amount for the paint stewardship
10assessment to the Agency. The Agency shall approve the paint
11stewardship assessment.
12    (b) On and after the date of implementation of the paint
13stewardship program, the paint stewardship assessment shall be
14added to the cost of all architectural paint sold to retailers
15and distributors in this State by each producer. On and after
16the implementation date, each retailer or distributor, as
17applicable, shall add the amount of the paint stewardship
18assessment to the purchase price of all architectural paint
19sold in this State.
20    Section 20. State-action antitrust exemption. Each
21producer and the representative organization shall be immune
22from liability for any claim of a violation of antitrust law or
23unfair trade practice if the conduct is a violation of
24antitrust law, to the extent the producer or representative



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1organization is exercising authority pursuant to the
2provisions of this Act.
3    Section 25. Enforcement.
4    (a) On and after the implementation date of the paint
5stewardship program, no producer, distributor, or retailer
6shall sell or offer for sale architectural paint to any person
7in this State if the producer of the architectural paint is not
8a member of the representative organization.
9    (b) No retailer or distributor shall be found to be in
10violation of the provisions of subsection (a) if, on the date
11the architectural paint was ordered from the producer or its
12agent, the producer or the subject brand of architectural paint
13was listed on the Agency's website in accordance with the
14provisions of subsection (f) of Section 10.
15    (c) The Director may, after providing notice and
16opportunity to be heard, impose a civil penalty in the amount
17of $500 a day against any person who violates the terms of this
19    Section 30. Consumer education. Producers or the
20representative organization shall provide consumers with
21educational materials regarding the paint stewardship
22assessment and paint stewardship program. Those materials
23shall include, but not be limited to, information regarding
24available end-of-life management options for architectural



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1paint offered through the paint stewardship program and
2information that notifies consumers that a charge for the
3operation of the paint stewardship program is included in the
4purchase price of all architectural paint sold in this State.
5    Section 35. Report to the Environmental Protection Agency.
6On or before October 15, 2016, and annually thereafter, the
7representative organization shall submit a report to the
8Director that details the paint stewardship program. The report
9shall include, but not be limited to: (1) a description of the
10methods used to collect, transport, and process post-consumer
11paint in this State; (2) the volume of post-consumer paint
12collected in this State; (3) the volume and type of
13post-consumer paint collected in this State by method of
14disposition, including reuse, recycling, and other methods of
15processing; (4) the total cost of implementing the program, as
16determined by an independent financial audit, as performed by
17the independent auditor; and (5) samples of educational
18materials provided to consumers of architectural paint and an
19evaluation of the methods used to disseminate those materials.
20    Section 50. The State Finance Act is amended by adding
21Section 5.826 as follows:
22    (30 ILCS 105/5.826 new)
23    Sec. 5.826. The Paint Stewardship Fund.



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1    Section 99. Effective date. This Act takes effect January
21, 2015.