SF 3775

3rd Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to solid waste; establishing a pilot program to collect and process used
paint; requiring reports; appropriating money.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin PAINT STEWARDSHIP PILOT PROGRAM.
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new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin The purpose of the paint stewardship pilot program
established under this section is to allow paint manufacturers to develop and implement
a program to collect, transport, and process postconsumer paint to reduce the costs and
environmental impacts of the disposal of postconsumer paint in Minnesota.
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new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin For purposes of sections 1 to 3, the following terms have
the meanings given.
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new text begin (a) "Architectural paint" means interior and exterior architectural coatings, including
paints and stains purchased for commercial or homeowner use, but does not include
architectural coatings purchased for industrial or original equipment manufacturer use.
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new text begin (b) "Commissioner" means the commissioner of the Pollution Control Agency.
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new text begin (c) "Cost recovery system" means a system whereby the costs of the paint
stewardship pilot program are included in the final purchase price of the product.
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new text begin (d) "Consumer paint stewardship assessment" means the amount charged by the
retailer or distributor on each purchase of architectural paint sold in containers of one
quart or larger.
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new text begin (e) "Distributor" means a company that has a contractual relationship with one or
more manufacturers to market and sell architectural paint to retailers.
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new text begin (f) "Manufacturer" means a manufacturer of architectural paint.
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new text begin (g) "Paint stewardship assessment" means the amount paid by each manufacturer
that is equal to the amount of the consumer paint stewardship assessment for architectural
paint the manufacturer sells.
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new text begin (h) "Postconsumer paint" means architectural paint not used by the purchaser.
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new text begin (i) "Representative organization" means the nonprofit organization created by the
manufacturers to implement the paint stewardship pilot program described in subdivision
3.
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new text begin (j) "Retailer" means a person who sells architectural paint at retail.
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new text begin Subd. 3. new text end

new text begin Plan. new text end

new text begin (a) Starting July 1, 2008, manufacturers of architectural paint sold at
retail must, through a representative organization, implement a pilot stewardship program
to undertake responsibility for the development and implementation of strategies to reduce
the generation of postconsumer paint, promote the reuse of postconsumer paint, and
collect, transport, and process the end-of-life management of postconsumer paint. A cost
recovery system must be established to collect an assessment on all architectural paint
sold to recover from consumers the cost of collecting, storing, transporting and reusing or
disposing of postconsumer paint in an environmentally sound fashion. The cost recovery
system shall fund the pilot stewardship program in the following manner:
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new text begin (1) each architectural paint manufacturer shall remit a paint stewardship assessment
to the representative organization implementing the paint stewardship pilot program based
on the amount of architectural paint it sells in this state;
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new text begin (2) each Minnesota retailer or distributor of architectural paint shall include a
consumer paint stewardship assessment in the price of all architectural paint it sells; and
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new text begin (3) an architectural paint manufacturer shall recover the paint stewardship
assessments by invoicing each of its Minnesota retailers or distributors of architectural
paint, who shall remit payment for the assessments to the architectural paint manufacturer.
The funds used by retailers and distributors to pay the invoices shall be derived from the
consumer paint stewardship assessment attached to the sale of architectural paints by
retailers and distributors.
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new text begin (b) To ensure that the consumer cost recovery mechanism is equitable and
sustainable, a uniform consumer paint stewardship assessment is established for all
architectural paint sold. The consumer paint stewardship assessment must be reviewed
by the commissioner and must be sufficient to recover, but not exceed, the costs of the
paint stewardship pilot program and shall not exceed $.40 per container. Any assessments
collected that exceed the cost of the program, as reported in the audit required under
section 3, must be remitted by the representative organization to the commissioner of the
Pollution Control Agency, who shall deposit the assessments in the environmental fund.
Assessments deposited in the environmental fund are appropriated to the commissioner of
the Pollution Control Agency for distribution to counties to conduct household hazardous
waste activities.
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new text begin (c) Material shall be provided to the consumer by the manufacturer or representative
of the manufacturer in a manner designed to ensure that consumers are made aware
that a consumer paint stewardship assessment is included in the final sales price of the
architectural paint.
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new text begin Subd. 4. new text end

new text begin Nonpublic data. new text end

new text begin Data reported to the commissioner by a manufacturer
or organization of manufacturers is classified as nonpublic data, as defined in Minnesota
Statutes, section 13.02, subdivision 9, except that the commissioner may release the data
in summary form in which individual manufacturers, distributors, or retailers are not
identified and from which neither their identities nor any other characteristics that could
uniquely identify an individual manufacturer or retailer is ascertainable.
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Sec. 2. new text begin CONDUCT AUTHORIZED.
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new text begin A manufacturer or organization of manufacturers that organizes collection, transport,
and processing of postconsumer paint under section 1 may engage in anticompetitive
conduct only to the extent necessary to plan and implement its chosen organized collection
or recycling system and is immune from liability for the conduct under state laws relating
to antitrust, restraint of trade, unfair trade practices, and other regulation of trade or
commerce.
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Sec. 3. new text begin REPORTS.
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new text begin (a) Beginning July 1, 2009, and each year thereafter, manufacturers of architectural
paint sold at retail in this state must, through a representative organization, submit a report
to the commissioner describing the paint stewardship pilot program. At a minimum,
the report must contain:
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new text begin (1) a description of methods used to collect, transport, and process postconsumer
paint in all regions of Minnesota;
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new text begin (2) the total cost of implementing the pilot program as determined by an independent
financial audit funded from the paint stewardship assessment;
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new text begin (3) an evaluation of how the pilot program's funding mechanism operated;
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new text begin (4) examples of educational materials that were provided to consumers of
architectural paint and an evaluation of those methods;
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new text begin (5) an analysis of the environmental costs and benefits of collecting and recycling
latex paint;
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new text begin (6) an evaluation of the feasibility of donating usable postconsumer paint to
charitable organizations, nonprofit organizations, and K-12 schools; and
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new text begin (7) an evaluation of possible rebates of or exemptions from the consumer paint
stewardship assessment for educational institutions or volunteer community improvement
programs.
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new text begin (b) By January 15, 2010, the commissioner shall submit a report to the chairs and
ranking minority members of the committees in the senate and house of representatives
that have primary jurisdiction over solid waste policy describing the results of the paint
stewardship pilot program and recommending whether it should be made permanent
and any modifications to improve the functioning and efficiency of the program. The
report shall include an analysis of the potential costs avoided by state and local units
of government as a result of the program.
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Sec. 4. new text begin EXPIRATION.
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new text begin Sections 1 to 3 expire June 30, 2010.
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Sec. 5. new text begin EFFECTIVE DATE.
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new text begin Sections 1 to 4 are effective the day following final enactment.
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