Sen. Linda Holmes

Filed: 3/12/2013





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2    AMENDMENT NO. ______. Amend Senate Bill 1705 by replacing
3everything after the enacting clause with the following:
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 adhesives and coatings
12recommended by the manufacturer or importer solely for shop
13applications or solely for application to non-stationary
14objects, such as airplanes, ships, boats, automobiles,
15railcars, equipment, and machinery. "Architectural paint" does
16not include any coating not considered an architectural paint



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1under the USEPA's Architectural and Industrial Maintenance
2Coatings Rule.
3    "Director" means the Director of the Illinois
4Environmental Protection Agency.
5    "Distributor" means a company that has a contractual
6relationship with one or more producers to market and sell
7architectural paint to retailers in this State.
8    "Environmentally sound management practices" means
9procedures for the collection, storage, transportation, reuse,
10recycling, and disposal of architectural paint, to be
11implemented by the representative organization or that
12organization's contracted partners to ensure (i) compliance
13with all applicable federal, State, and local laws,
14regulations, and ordinances and (ii) the protection of human
15health and the environment. Environmentally sound management
16practices include, but are not limited to, record-keeping, the
17tracking and documenting of the fate of post-consumer paint
18inside and outside of this State, and environmental liability
19coverage for professional services and the operations of the
20contractors working on behalf of the representative
22    "Fund" means the Solid Waste Management Fund.
23    "Industrial maintenance coating" means a high performance
24architectural coating, including primers, sealers,
25undercoaters, intermediate coats, and topcoats formulated and
26recommended for application to substrates and labeled under the



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1USEPA's Architectural and Industrial Maintenance Coatings Rule
2as, "for industrial use only", "for professional use only",
3"not for residential use", or "not intended for residential
5    "Paint stewardship assessment" means the amount added to
6the purchase price of architectural paint sold in this State
7that is necessary to cover the cost of collecting,
8transporting, and processing post-consumer paint by the
9representative organization pursuant to the paint stewardship
11    "Post-consumer paint" means architectural paint that is
12not used by a purchaser of architectural paint.
13    "Producer" means a manufacturer of architectural paint who
14sells, offers for sale, distributes, or contracts to distribute
15architectural paint in this State.
16    "Recycling, reclamation, or reuse" means a method,
17technique, or process designed to remove any contaminant from
18waste to render the waste reusable, or any process by which
19materials that would otherwise be disposed of or discarded are
20collected, separated, or processed and returned to the economic
21mainstream in the form of raw materials or products.
22    "Representative organization" means the nonprofit
23organization created by producers to implement the paint
24stewardship program described in Section 10 of this Act.
25    "Retailer" means any person who offers architectural paint
26for sale at retail in this State.



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1    "Sell" or "sale" means any transfer of title for
2consideration, including, but not limited to, remote sales
3conducted through sales outlets, catalogues, the Internet, or
4any other similar electronic means.
5    "Shop application" means that a coating is applied to a
6product or a component of a product in a factory, shop, or
7other structure as part of a manufacturing, production, or
8repairing process.
9    Section 10. Paint stewardship program.
10    (a) On or before March 1, 2015, each producer shall join
11the representative organization, and the representative
12organization shall submit a plan for the establishment of the
13paint stewardship program described in this Section to the
14Director. The paint stewardship program shall:
15        (1) minimize public sector involvement in the
16    management of post-consumer paint by: (A) reducing the
17    generation of post-consumer paint, (B) promoting the reuse
18    and recycling of post-consumer paint, and (C) negotiating
19    and executing agreements to collect, transport, reuse,
20    recycle, burn for energy recovery, and dispose of
21    post-consumer paint using environmentally sound management
22    practices;
23        (2) provide for convenient and available Statewide
24    collection of post-consumer paint that, at a minimum,
25    provides for collection rates and levels of convenience



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1    that are equal to, or greater than, those provided by the
2    collection programs available to consumers before the
3    implementation of the paint stewardship program;
4        (3) propose a paint stewardship assessment;
5        (4) include a funding mechanism that requires each
6    producer who participates in the representative
7    organization to remit to the representative organization
8    payment of the paint stewardship assessment for each
9    container of architectural paint the producer sells in this
10    State;
11        (5) describe how the program provides for reasonably
12    convenient and available Statewide collection of leftover
13    paint from covered entities in urban and rural areas of the
14    State, including island communities; and
15        (6) use geographic information modeling to determine
16    the number and distribution of collection sites for the
17    following criteria: 90% of Illinois residents shall have a
18    permanent collection site within 15 miles by road; and one
19    additional permanent site shall be established for every
20    30,000 residents of a population center distributed to
21    provide convenient access in high traffic areas.
22    The representative organization shall maintain a Statewide
23list of producers and post up to date collection locations on
24its website.
25    (b) The plan shall identify each producer participating in
26the paint stewardship program and the brands of architectural



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1paint sold in this State covered by the program, and it shall
2address the coordination of the paint stewardship program with
3existing household hazardous waste collection infrastructure,
4as much as is reasonably feasible and mutually agreeable.
5    (c) Not later than 3 months after submission of the plan,
6the Director shall determine whether the plan satisfies the
7requirements of this Act.
8    (d) Not later than 3 months after the date the plan is
9approved pursuant to subsection (c), the representative
10organization shall implement the paint stewardship program.
11    (e) Any retailer may participate, on a voluntary basis and
12in accordance with any applicable provision of law or
13regulation, as a paint collection point.
14    (f) Not later than the implementation date of the paint
15stewardship program, the Agency shall list the names of
16participating producers and the brands of architectural paint
17covered by the paint stewardship program on its website.
18    (g) Upon submission of the paint stewardship plan required
19by this Section, each representative organization shall pay to
20the Agency a fee of $10,000, which the Agency shall deposit
21into the Solid Waste Management Fund. Upon approval of a paint
22stewardship program, the representative organization shall
23also pay to the Agency an annual fee of $20,000, which the
24Agency shall deposit into the Fund.
25    (h) The Agency shall review the paint stewardship program
26plans it receives for completeness and shall notify the



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1representative organization in writing if a plan is incomplete.
2Within 30 days after receiving a notification of incompleteness
3from the Agency, the representative organization shall submit
4to the Agency a plan that contains all of the required
5information. A new plan or amendment is required to be
6submitted to the Department for approval when:
7        (1) there is a change to the amount of the assessment;
8        (2) there is an addition to the products covered under
9    the program; or
10        (3) there is a revision of the product stewardship
11    organization's goals.
12    Section 15. Paint stewardship assessment.
13    (a) On or before March 1, 2015, the representative
14organization shall propose a uniform paint stewardship
15assessment for all architectural paint sold in this State. An
16independent auditor shall review the proposed paint
17stewardship assessment to ensure that it does not exceed the
18costs of maintaining the paint stewardship program, and the
19auditor shall recommend an amount for the paint stewardship
20assessment to the Agency.
21    (b) On and after the date of implementation of the paint
22stewardship program, the paint stewardship assessment shall be
23added to the cost of all architectural paint sold to retailers
24and distributors in this State by each producer. On and after
25the implementation date, each retailer or distributor, as



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1applicable, shall add the amount of the paint stewardship
2assessment to the purchase price of all architectural paint
3sold in this State.
4    Section 20. State-action antitrust exemption. Each
5producer and the representative organization shall be immune
6from liability for any claim of a violation of antitrust law or
7unfair trade practice if the conduct is a violation of
8antitrust law, to the extent the producer or representative
9organization is exercising authority pursuant to the
10provisions of this Act.
11    Section 25. Enforcement.
12    (a) On and after the implementation date of the paint
13stewardship program, no producer, distributor, or retailer
14shall sell or offer for sale architectural paint to any person
15in this State if the producer of the architectural paint is not
16a member of the representative organization.
17    (b) No retailer or distributor shall be found to be in
18violation of the provisions of subsection (a) if, on the date
19the architectural paint was ordered from the producer or its
20agent, the producer or the subject brand of architectural paint
21was listed on the Agency's website in accordance with the
22provisions of subsection (f) of Section 10.
23    (c) The Attorney General or State's Attorney may request,
24and the Court may impose, after providing notice and



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1opportunity to be heard, a civil penalty in the amount of $500
2a day against any person who violates the terms of this Act.
3    (d) Nothing in this Act prohibits a retailer or distributor
4from selling their inventory of architectural paint existing on
5the effective date of this Act.
6    (e) The penalties provided for in this Section may be
7recovered in a civil action brought in the name of the people
8of the State of Illinois by the State's Attorney of the county
9in which the violation occurred or by the Attorney General. Any
10funds collected under this Section in an action in which the
11Attorney General has prevailed shall be deposited in the
12Environmental Protection Trust Fund, to be used in accordance
13with the provisions of the Environmental Trust Fund Act.
14    Section 30. Consumer education. Producers or the
15representative organization shall provide consumers with
16educational materials regarding the paint stewardship
17assessment and paint stewardship program. Those materials
18shall include, but not be limited to, information regarding
19available end-of-life management options for architectural
20paint offered through the paint stewardship program and
21information that notifies consumers that a charge for the
22operation of the paint stewardship program is included in the
23purchase price of all architectural paint sold in this State.
24    Section 35. Report to the Environmental Protection Agency.



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1On or before October 15, 2016, and annually thereafter, the
2representative organization shall submit a report to the
3Director that details the paint stewardship program. The report
4shall include, but not be limited to: (1) a description of the
5methods used to collect, transport, and process post-consumer
6paint in this State; (2) the volume of post-consumer paint
7collected in this State; (3) the volume and type of
8post-consumer paint collected in this State by method of
9disposition, including reuse, recycling, and other methods of
10processing; (4) the total cost of implementing the program, as
11determined by an independent financial audit, as performed by
12the independent auditor; (5) samples of educational materials
13provided to consumers of architectural paint and an evaluation
14of the methods used to disseminate those materials; and (6) a
15list of collection locations. The Agency may post copies of the
16plan and annual reports on its website.
17    Section 99. Effective date. This Act takes effect January
181, 2015.".