<a id="pl.1.3"></a><var>1.3</var>paint; requiring reports.<br/>
<a id="pl.1.4"></a><var>1.4</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
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<a id="bill.0.1.0"></a><a id="pl.1.5"></a><var>1.5</var>    Section 1. <b>PAINT STEWARDSHIP PILOT PROGRAM.</b><br/>
<a id="pl.1.6"></a><var>1.6</var>    Subdivision 1. <b>Definitions.</b> For purposes of sections 1 to 3, the following terms <br/>
<a id="pl.1.7"></a><var>1.7</var>have the meanings given.<br/>
<a id="pl.1.8"></a><var>1.8</var>    (a) "Architectural paint" means interior and exterior architectural coatings, including <br/>
<a id="pl.1.9"></a><var>1.9</var>paints and stains purchased for commercial or homeowner use, but does not include <br/>
<a id="pl.1.10"></a><var>1.10</var>architectural coatings purchased for industrial or original equipment manufacturer use.<br/>
<a id="pl.1.11"></a><var>1.11</var>    (b) "Commissioner" means the commissioner of the Pollution Control Agency.<br/>
<a id="pl.1.12"></a><var>1.12</var>    (c) "Consumer-based cost recovery system" means a system whereby the costs of <br/>
<a id="pl.1.13"></a><var>1.13</var>the paint stewardship pilot program are passed on to consumers through the purchase <br/>
<a id="pl.1.14"></a><var>1.14</var>price of the product.<br/>
<a id="pl.1.15"></a><var>1.15</var>    (d) "Consumer paint stewardship fee" means the fee charged by the retailer or <br/>
<a id="pl.1.16"></a><var>1.16</var>distributor on each purchase of architectural paint sold in the state.<br/>
<a id="pl.1.17"></a><var>1.17</var>    (e) "Distributor" means a company that has a contractual relationship with one or <br/>
<a id="pl.1.18"></a><var>1.18</var>more manufacturers to market and sell architectural paint to retailers in this state.<br/>
<a id="pl.1.19"></a><var>1.19</var>    (f) "Manufacturer" means a manufacturer of architectural paint.<br/>
<a id="pl.1.20"></a><var>1.20</var>    (g) "Paint stewardship fee" means the fee paid by each manufacturer that is equal to <br/>
<a id="pl.1.21"></a><var>1.21</var>the amount of the consumer paint stewardship fee for architectural paint the manufacturer <br/>
<a id="pl.1.22"></a><var>1.22</var>sells in this state.<br/>
<a id="pl.1.23"></a><var>1.23</var>    (h) "Postconsumer paint" means architectural paint not used by the purchaser.<br/>
<a id="pl.1.24"></a><var>1.24</var>    (i) "Retailer" means a person who sells architectural paint at retail in this state.<br/>
<a id="pl.2.1"></a><var>2.1</var>    Subd. 2. <b>Purpose.</b> The purpose of the paint stewardship pilot program established <br/>
<a id="pl.2.2"></a><var>2.2</var>under this section is to allow paint manufacturers to develop and implement a program to <br/>
<a id="pl.2.3"></a><var>2.3</var>collect, transport, and process postconsumer paint to reduce the costs and environmental <br/>
<a id="pl.2.4"></a><var>2.4</var>impacts of the disposal of postconsumer paint in Minnesota.<br/>
<a id="pl.2.5"></a><var>2.5</var>    Subd. 3. <b>Plan.</b> (a) Starting July 1, 2008, manufacturers of architectural paint <br/>
<a id="pl.2.6"></a><var>2.6</var>sold at retail in this state must, through a representative organization, implement a pilot <br/>
<a id="pl.2.7"></a><var>2.7</var>stewardship program to undertake responsibility for the development and implementation <br/>
<a id="pl.2.8"></a><var>2.8</var>of strategies to reduce the generation of postconsumer paint, promote the reuse of <br/>
<a id="pl.2.9"></a><var>2.9</var>postconsumer paint, and collect, transport, and process the end-of-life management of <br/>
<a id="pl.2.10"></a><var>2.10</var>postconsumer paint. A consumer-based cost recovery system must be established to <br/>
<a id="pl.2.11"></a><var>2.11</var>collect a fee assessed on all architectural paint sold in this state to recover from consumers <br/>
<a id="pl.2.12"></a><var>2.12</var>the cost of collecting, storing, transporting and reusing or disposing of postconsumer paint <br/>
<a id="pl.2.13"></a><var>2.13</var>in an environmentally sound fashion. The consumer-based cost recovery system shall fund <br/>
<a id="pl.2.14"></a><var>2.14</var>the pilot stewardship program in the following manner:<br/>
<a id="pl.2.15"></a><var>2.15</var>    (1) each architectural paint manufacturer shall pay a paint stewardship fee to the <br/>
<a id="pl.2.16"></a><var>2.16</var>representative organization implementing the paint stewardship pilot program based on <br/>
<a id="pl.2.17"></a><var>2.17</var>the amount of architectural paint it sells in this state;<br/>
<a id="pl.2.18"></a><var>2.18</var>    (2) each Minnesota retailer or distributor of architectural paint shall include a <br/>
<a id="pl.2.19"></a><var>2.19</var>consumer paint stewardship fee in the price of all architectural paint it sells in this state; and<br/>
<a id="pl.2.20"></a><var>2.20</var>    (3) an architectural paint manufacturer shall recover the paint stewardship fees by <br/>
<a id="pl.2.21"></a><var>2.21</var>invoicing each of its Minnesota retailers or distributors of architectural paint, who shall <br/>
<a id="pl.2.22"></a><var>2.22</var>remit payment for the fees to the architectural paint manufacturer. The funds used by <br/>
<a id="pl.2.23"></a><var>2.23</var>retailers and distributors to pay such invoices shall be derived from the consumer paint <br/>
<a id="pl.2.24"></a><var>2.24</var>stewardship fee attached to the sale of architectural paints by retailers and distributors.<br/>
<a id="pl.2.25"></a><var>2.25</var>    (b) To ensure that the consumer cost recovery mechanism is equitable and <br/>
<a id="pl.2.26"></a><var>2.26</var>sustainable, a uniform consumer paint stewardship fee is established for all architectural <br/>
<a id="pl.2.27"></a><var>2.27</var>paint sold in this state. The assessed consumer paint stewardship fee must be reviewed by <br/>
<a id="pl.2.28"></a><var>2.28</var>the commissioner and must be sufficient to recover the costs of the program and shall not <br/>
<a id="pl.2.29"></a><var>2.29</var>exceed $.30 per gallon or per container.<br/>
<a id="pl.2.30"></a><var>2.30</var>    (c) Material shall be provided to the consumer by the manufacturer or representative <br/>
<a id="pl.2.31"></a><var>2.31</var>of the manufacturer in a manner designed to ensure that consumers are made aware that a <br/>
<a id="pl.2.32"></a><var>2.32</var>consumer paint stewardship fee is included in the final sales price of the architectural paint.<br/>
<a id="pl.2.33"></a><var>2.33</var>    (d) The commissioner of the Pollution Control Agency may appoint an independent <br/>
<a id="pl.2.34"></a><var>2.34</var>auditor to review the paint stewardship pilot program.<br/>
<a id="pl.2.35"></a><var>2.35</var>    (e) Architectural paint purchased by a public or private educational institution, for <br/>
<a id="pl.2.36"></a><var>2.36</var>painting a building used primarily for educational or related administrative activities, is <br/>
<a id="pl.3.1"></a><var>3.1</var>exempt from the paint stewardship fee established under this subdivision. The educational <br/>
<a id="pl.3.2"></a><var>3.2</var>institution shall provide documentation, as required by the commissioner, as to the use of <br/>
<a id="pl.3.3"></a><var>3.3</var>the paint. Retailers and distributors shall retain the documentation of the amount of paint <br/>
<a id="pl.3.4"></a><var>3.4</var>sold exempt under this paragraph, and this paint will be excluded from calculating the fee <br/>
<a id="pl.3.5"></a><var>3.5</var>and remittances under paragraph (a), clauses (1) and (3).<br/>
<a id="pl.3.6"></a><var>3.6</var>    Subd. 4. <b>Nonpublic data.</b> Data reported to the commissioner by a manufacturer <br/>
<a id="pl.3.7"></a><var>3.7</var>or organization of manufacturers is classified as nonpublic data, as defined in Minnesota <br/>
<a id="pl.3.8"></a><var>3.8</var>Statutes, section 13.02, subdivision 9, except that the commissioner may release the <br/>
<a id="pl.3.9"></a><var>3.9</var>data in summary form in which individual manufacturers or retailers are not identified <br/>
<a id="pl.3.10"></a><var>3.10</var>and from which neither their identities nor any other characteristics that could uniquely <br/>
<a id="pl.3.11"></a><var>3.11</var>identify an individual manufacturer or retailer is ascertainable.<br/>
<a id="pl.3.12"></a><var>3.12</var>    Subd. 5. <b>Exemption.</b> Architectural paint used in, including paint donated for, the <br/>
<a id="pl.3.13"></a><var>3.13</var>Metro Paint-A-Thon sponsored by the Greater Minneapolis Council of Churches is not <br/>
<a id="pl.3.14"></a><var>3.14</var>subject to the consumer paint stewardship fee.<br/>
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<a id="bill.0.2.0"></a><a id="pl.3.15"></a><var>3.15</var>    Sec. 2. <b>ANTICOMPETITIVE CONDUCT.</b><br/>
<a id="pl.3.16"></a><var>3.16</var>    A manufacturer or organization of manufacturers that organizes collection, transport, <br/>
<a id="pl.3.17"></a><var>3.17</var>and processing of postconsumer paint under section 1 may engage in anticompetitive <br/>
<a id="pl.3.18"></a><var>3.18</var>conduct to the extent necessary to plan and implement its chosen organized collection <br/>
<a id="pl.3.19"></a><var>3.19</var>or recycling system and is immune from liability under state laws relating to antitrust, <br/>
<a id="pl.3.20"></a><var>3.20</var>restraint of trade, unfair trade practices, and other regulation of trade or commerce.<br/>
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<a id="bill.0.3.0"></a><a id="pl.3.21"></a><var>3.21</var>    Sec. 3. <b>REPORTS.</b><br/>
<a id="pl.3.22"></a><var>3.22</var>    (a) Beginning July 1, 2009, and each year thereafter, manufacturers of architectural <br/>
<a id="pl.3.23"></a><var>3.23</var>paint sold at retail in this state must, through a  representative organization, submit a report <br/>
<a id="pl.3.24"></a><var>3.24</var>to the commissioner describing the paint stewardship pilot program. At a minimum, <br/>
<a id="pl.3.25"></a><var>3.25</var>the report must contain:<br/>
<a id="pl.3.26"></a><var>3.26</var>    (1) a description of methods used to collect, transport, and process postconsumer <br/>
<a id="pl.3.27"></a><var>3.27</var>paint in all regions of Minnesota;<br/>
<a id="pl.3.28"></a><var>3.28</var>    (2) the total cost of implementing the pilot program;<br/>
<a id="pl.3.29"></a><var>3.29</var>    (3) an evaluation of how the pilot program's funding mechanism operated;<br/>
<a id="pl.3.30"></a><var>3.30</var>    (4) examples of educational materials that were provided to consumers of <br/>
<a id="pl.3.31"></a><var>3.31</var>architectural paint and an evaluation of those methods;<br/>
<a id="pl.3.32"></a><var>3.32</var>    (5) an analysis of the environmental costs and benefits of collecting and recycling <br/>
<a id="pl.3.33"></a><var>3.33</var>latex paint; and<br/>
<a id="pl.4.1"></a><var>4.1</var>    (6) an evaluation of the feasibility of donating useable postconsumer paint to <br/>
<a id="pl.4.2"></a><var>4.2</var>charitable organizations, nonprofit organizations, and K-12 schools.<br/>
<a id="pl.4.3"></a><var>4.3</var>    (b) By January 1, 2011, the commissioner shall submit a report to the chairs and <br/>
<a id="pl.4.4"></a><var>4.4</var>ranking minority members of the committees in the senate and house of representatives <br/>
<a id="pl.4.5"></a><var>4.5</var>that have primary jurisdiction over solid waste policy describing the results of the paint <br/>
<a id="pl.4.6"></a><var>4.6</var>stewardship pilot program and recommending whether it should be made permanent and <br/>
<a id="pl.4.7"></a><var>4.7</var>any modifications to improve the functioning and efficiency of the program.<br/>
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<a id="bill.0.4.0"></a><a id="pl.4.8"></a><var>4.8</var>    Sec. 4. <b>EXPIRATION.</b><br/>
<a id="pl.4.9"></a><var>4.9</var>    Sections 1 to 3 expire  January 31, 2011.<br/>
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<a id="bill.0.5.0"></a><a id="pl.4.10"></a><var>4.10</var>    Sec. 5. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.4.11"></a><var>4.11</var>    Sections 1 to 4 are effective the day following final enactment.<br/>