HOUSE BILL NO. 2162 103RD GENERAL ASSEMBLY
INTRODUCED BY REPRESENTATIVE DOLAN.
5517H.01I JOSEPH ENGLER, Chief Clerk
AN ACT To amend chapter 701, RSMo, by adding thereto one new section relating to paint recycling.
Be it enacted by the General Assembly of the state of Missouri, as follows:
Section A. Chapter 701, RSMo, is amended by adding thereto one new section, to be 2 known as section 701.151, to read as follows: 701.151. 1. As used in this section, the following terms mean: 2 (1) "Administrative fee", a fee set by the department to reimburse the 3 department for administering this section and paid by each producer or representative 4 organization submitting a plan under this section; 5 (2) "Architectural paint", interior and exterior architectural coatings sold in 6 containers of five gallons or less. "Architectural paint" shall not be construed to include 7 industrial, original equipment, or specialty coatings; 8 (3) "Collection site", any location, event, or other department-approved 9 collection service at which architectural paint is accepted into a post-consumer paint 10 collection program under a post-consumer paint collection program plan; 11 (4) "Conditionally exempt small quantity generator", the meaning ascribed to 12 "very small generator" under 40 CFR 262.14; 13 (5) "Department", the department of natural resources; 14 (6) "Director", the director of the department of natural resources, or the 15 director's designee; 16 (7) "Environmentally sound management practices", procedures for the 17 collection, storage, transportation, reuse, recycling, energy recovery, and disposal of 18 architectural paint that shall:
EXPLANATION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted from the law. Matter in bold-face type in the above bill is proposed language. HB 2162 2
19 (a) Be implemented by producers or a representative organization or by 20 contracted partners of the producers or a representative organization to ensure 21 compliance with all applicable federal, state, and local laws and any regulations and 22 ordinances for the protection of human health and the environment; 23 (b) Address adequate recordkeeping, tracking, and documenting of the final 24 disposition of materials; and 25 (c) Address appropriate environmental liability coverage for the representative 26 organization; 27 (8) "Household waste", the same definition as in 10 CSR 80.2-010; 28 (9) "Paint" or "paint product", architectural paint and additional products as 29 defined in an approved program plan. "Paint" or "paint product" shall not include 30 industrial or original equipment coatings; 31 (10) "Paint assessment fee", cost added per container of paint by producers. 32 Such cost shall cover the cost to operate and sustain the program authorized under this 33 section and shall be verified by an independent financial auditor; 34 (11) "Post-consumer paint", architectural paint not used and no longer wanted 35 by a purchaser; 36 (12) "Producer", a manufacturer of architectural paint that sells, offers for sale, 37 or distributes the architectural paint in this state under the producer's own name or 38 brand. "Producer" does not include a retailer who sells, offers for sale, or distributes 39 within or into the state architectural paint manufactured or trademarked by a person 40 other than the retailer; 41 (13) "Program", the post-consumer paint collection program established under 42 this section; 43 (14) "Recycling", the separation and reuse or remanufacture of materials that 44 might otherwise be disposed of as solid waste; 45 (15) "Representative organization", a nonprofit organization established by 46 producers to implement the program; 47 (16) "Retailer", a person who offers architectural paint or other allied products 48 for sale at retail in this state. 49 2. Producers of architectural paint sold at retail in this state may establish or 50 join a representative organization. The duties under this section shall be met by the 51 representative organization on behalf of all its member producers. Any producer who is 52 not a member of a representative organization shall meet the duties under this section 53 separately. 54 3. (1) A representative organization or a producer of architectural paint sold at 55 retail in this state that is not a member of such representative organization shall develop HB 2162 3
56 and submit to the director for the director's approval a plan for the establishment of a 57 post-consumer paint collection program. Additional paint products may be proposed in 58 a subsequent program plan in consultation with the department. The program shall be 59 structured to: 60 (a) Reduce the generation of post-consumer paint; 61 (b) Promote the reuse and recycling of post-consumer paint; 62 (c) Manage the post-consumer paint waste stream using environmentally sound 63 management practices; and 64 (d) Limit the department's role to oversight activities that include approving the 65 program plan and reviewing the annual report. 66 (2) The plan submitted under this section shall: 67 (a) Provide a list of participating producers and brands covered by the program; 68 (b) Provide information on the architectural paint products covered under the 69 program, such as interior or exterior water- and oil-based coatings, primers, sealers, or 70 wood coatings; 71 (c) Describe how the program will provide for convenient and cost-effective 72 statewide collection of post-consumer paint in this state. The producers or 73 representative organization may coordinate the program with existing household 74 hazardous waste collection infrastructure as is mutually agreeable. A paint retailer 75 shall be authorized by the producers or representative organization as a paint collection 76 site only if the paint retailer voluntarily agrees to act as such and complies with all 77 applicable laws and regulations and the retail location is consistent with the 78 maintenance of a cost-effective network of paint collection locations; 79 (d) Establish a goal for the number and geographic distribution of sites for 80 collection of post-consumer paint based on the following criteria: 81 a. At least ninety percent of Missouri residents shall have a collection site within 82 a fifteen-mile radius, and one site shall be established for every fifty thousand residents 83 of the state unless otherwise approved by the director; or 84 b. If the program is unable to meet the requirements of this subsection, a 85 collection event or other department-approved collection service shall be scheduled on a 86 periodic basis to serve such residents; 87 (e) Describe how post-consumer paint will be managed in the most 88 environmentally and economically sound manner using the following strategies in the 89 following order: reuse, recycling, energy recovery, and disposal; 90 (f) Describe education and outreach efforts to inform consumers about the 91 program. Such efforts shall include, but not be limited to: 92 a. Information about collection opportunities for post-consumer paint; HB 2162 4
93 b. Information about the charge for the operation of the program that shall be 94 included in the purchase price of all architectural paint sold in this state; and 95 c. Efforts to promote the source reduction, reuse, and recycling of architectural 96 paint; 97 (g) Establish a per-container cost to be added to architectural paint sold in this 98 state as a result of the program. This per-container cost, known as the paint assessment 99 fee, shall be reviewed by an independent financial auditor to ensure that any added cost 100 to paint sold in this state as a result of the program does not exceed the costs to operate 101 and sustain the program in accordance with sound management practices; and 102 (h) Describe how the program will compensate service providers for activities 103 conducted under the program that may include: 104 a. The collection of post-consumer architectural paint and architectural paint 105 containers through permanent collection sites, collection events, or curbside services; 106 b. The reuse or processing of post-consumer architectural paint at a permanent 107 collection site; and 108 c. The transportation, recycling, and proper disposal of post-consumer 109 architectural paint. 110 (3) The independent financial auditor required under paragraph (g) of 111 subdivision (2) of this subsection shall be selected by the representative organization 112 after consultation with the department. The independent financial auditor shall verify 113 that the cost added to each unit of paint will cover the costs of the program. The 114 department shall review the work product of the independent financial auditor. The 115 cost of any work performed by such independent financial auditor shall be funded by 116 the paint assessment fees authorized by the program. 117 (4) Each manufacturer under the plan shall include in the price of any 118 architectural paint sold to retailers or distributors in the state the per-container amount 119 of the fee set forth in the plan or fee adjustment. If a representative organization 120 implements the plan for a manufacturer, the manufacturer shall be responsible for 121 filing, reporting, and remitting any fee assessed under this section for each container of 122 architectural paint to the representative organization. A retailer or distributor shall not 123 deduct the amount of the fee from the purchase price of any architectural paint the 124 retailer or distributor sells. 125 (5) No later than sixty days after the submission of a plan under this section, the 126 director shall make a written determination of whether to approve the plan as 127 submitted or disapprove the plan. If the director finds the plan does not meet the 128 requirements of this section, the director shall provide a written explanation of the 129 nonconforming items. Within sixty days following receipt of the director's written HB 2162 5
130 explanation of items that do not meet the requirements of this section, the representative 131 organization or the producer of architectural paint shall submit a revised plan to the 132 director for approval. 133 (6) The department shall enforce the producer's or the representative 134 organization's compliance with the plan and may, by regulation or by using existing 135 regulations promulgated under sections 260.230, 260.240, and 260.249, establish 136 enforcement procedures and penalties. 137 (7) No later than the implementation date of the program, information 138 regarding the approved plan, the names of participating producers, and the brands of 139 architectural paint covered by the program shall be posted on the department's website 140 and on the website of the representative organization. 141 (8) The plan required under this subsection shall be submitted to the department 142 not later than twelve months after the effective date of this section. The department 143 may, for good cause shown, grant an extension of the deadline for submission. 144 (9) Nothing in this section shall be construed to require the department to 145 develop the plan or establish the program authorized under this section. Such 146 requirement shall be the sole responsibility of the producers or representative 147 organization. 148 (10) Nothing in this section shall require a retailer to track, file, report, submit, 149 or remit a fee assessed under this section, sales data, or any other information on behalf 150 of a manufacturer, distributor, or representative organization. Nothing in this section 151 shall prohibit a manufacturer and a retailer from entering into remitter agreements. 152 4. (1) The department shall establish an administrative fee to be paid by each 153 producer or representative organization submitting a plan under this section. The 154 department shall set the fee at an amount that, when paid by every producer or 155 representative organization that submits a plan, is adequate to reimburse the 156 department's full costs of administering this section. The total amount of annual fees 157 collected under this subdivision shall not exceed the amount necessary to reimburse 158 costs incurred by the department to administer this section. The department may 159 consider relevant factors when establishing the fee including, but not limited to, the 160 portion of architectural paint sold in the state by the producer or the members of the 161 representative organization compared to the total amount of architectural paint sold in 162 the state by all producers or representative organizations submitting a plan. 163 (2) Each producer or representative organization implementing a plan under 164 this section shall pay the administrative fee required in subdivision (1) of this subsection 165 on or before July 1, 2027, and annually thereafter. Each year after the initial payment, 166 the annual administrative fee shall not exceed five percent of the aggregate program fee HB 2162 6
167 added to the cost of all architectural paint sold by producers in the state for the 168 preceding calendar year. The department may extend the time for payment upon good 169 cause shown. 170 5. Upon implementation of the program, each producer shall include in the price 171 of any architectural paint sold to retailers and distributors in this state the per-container 172 amount, known as the paint assessment fee, in the approved plan. No retailer or 173 distributor shall deduct such amount from the purchase price. 174 6. Retailers may incorporate the fee as part of the price amount displayed to 175 consumers of architectural products. Retailers shall not be required to incorporate the 176 fee as part of the price amount displayed to consumers for architectural products, 177 provided that the retailers make information about the fee available to consumers of 178 architectural paint products prior to purchase. 179 7. (1) After the program is implemented, no producer or retailer shall sell or 180 offer for sale architectural paint to any person in this state unless the producer of a 181 paint brand or a representative organization is implementing or participating in the 182 program as required by this section. 183 (2) A retailer shall be deemed to be in compliance with this section if, on the date 184 the architectural paint was offered for sale, the producer is listed on the department's 185 website as implementing or participating in the program or if the paint brand is listed 186 on the department's website as being included in the program. 187 (3) A paint collection site authorized under this section shall not charge any 188 additional amount for the disposal of paint when the paint is offered for disposal. 189 (4) A producer or the representative organization that organizes the collection, 190 transport, and processing of post-consumer paint in accordance with the program shall 191 not be liable for any claim of a violation of antitrust, restraint of trade, unfair trade 192 practice, or other anticompetitive activity arising from conduct undertaken in 193 accordance with the program under this section. 194 (5) Before March thirty-first of each year, the producers or representative 195 organization shall submit an annual report for the previous year to the director that 196 details the program. The first report shall be submitted after the first full year of 197 implementation. The director may, for good cause shown, extend the deadline for filing 198 the report. The report or information relating to the report shall be posted on the 199 department's website and on the website of the representative organization. The report 200 shall contain at least the following: 201 (a) A description of the methods used to collect, transport, and process post- 202 consumer paint in this state; HB 2162 7
203 (b) The volume and type of post-consumer paint collected by method of 204 disposition, containing information about reuse, recycling, other methods of processing, 205 and any other related and appropriate information; 206 (c) Samples of educational materials provided to consumers of architectural 207 paint; 208 (d) The total cost of the program; and 209 (e) An independent financial audit completed by an individual financial auditor 210 chosen by the producers or the representative organization. 211 (6) Financial, production, or sales data reported to the department by a 212 producer or by the representative organization shall not be subject to disclosure, but the 213 director may release a summary form of such data that does not disclose financial, 214 production, or sales data of the producer, retailer, or representative organization. 215 (7) The producers or the representative organization shall implement the 216 program required under this section on January 1, 2028, or six months after the 217 approval of the plan under this section, whichever occurs later. 218 8. (1) Generators of household wastes and conditionally exempt small quantity 219 generators may transport or send architectural paints to a paint collection site to the 220 extent permitted by a program approved by the director. 221 (2) Paint collection sites may collect and temporarily store architectural paints 222 generated by entities specified in subdivision (1) of this subsection in accordance with 223 the requirements of the program in lieu of any otherwise applicable requirements of 224 state laws or regulations. 225 (3) Nothing in this section shall be construed to restrict the collection of 226 architectural paint by a program where such collection is authorized by any other state 227 laws or regulations. 228 (4) Nothing in this section shall be construed to affect any requirements 229 applicable to facilities that treat, dispose, or recycle architectural paint under any other 230 state laws or regulations. 231 9. The director may promulgate all necessary rules and regulations for the 232 administration of this section. Any rule or portion of a rule, as that term is defined in 233 section 536.010, that is created under the authority delegated in this section shall 234 become effective only if it complies with and is subject to all of the provisions of chapter 235 536 and, if applicable, section 536.028.