Illinois 2023-2024 Regular Session

Illinois Senate Bill SB0147 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB0147 Introduced 1/25/2023, by Sen. Linda Holmes SYNOPSIS AS INTRODUCED: New Act Creates the Paint Stewardship Act. Contains the findings of the General Assembly. Provides that manufacturers of architectural paint sold at retail in the State or representative organizations shall submit to the Director of the Environmental Protection Agency a plan for the establishment of a postconsumer paint stewardship program. Requires the program to meet specified requirements. Provides that manufacturers or retailers shall not sell or offer for sale architectural paint to any person in the State unless the manufacturer of a paint brand or representative organization is implementing an approved paint stewardship plan. Prohibits the incineration of leftover architectural paint collected pursuant to an approved paint stewardship plan. Provides that manufacturers or representative organizations shall submit reports with specified requirements. Provides that manufacturers or representative organizations participating in a postconsumer paint stewardship program shall not be liable for any claim of a violation of antitrust, restraint of trade, unfair trade practice, or other anticompetitive conduct arising from conduct undertaken in accordance with the program. Provides for administrative and oversight fees to be paid to the Agency. Provides that manufacturers or representative organizations shall implement the postconsumer paint collection plan within 6 months of the date that the program plan is approved. Contains provisions regarding postconsumer paint from households and small businesses. Contains other provisions. LRB103 25543 CPF 51892 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB0147 Introduced 1/25/2023, by Sen. Linda Holmes SYNOPSIS AS INTRODUCED: New Act New Act Creates the Paint Stewardship Act. Contains the findings of the General Assembly. Provides that manufacturers of architectural paint sold at retail in the State or representative organizations shall submit to the Director of the Environmental Protection Agency a plan for the establishment of a postconsumer paint stewardship program. Requires the program to meet specified requirements. Provides that manufacturers or retailers shall not sell or offer for sale architectural paint to any person in the State unless the manufacturer of a paint brand or representative organization is implementing an approved paint stewardship plan. Prohibits the incineration of leftover architectural paint collected pursuant to an approved paint stewardship plan. Provides that manufacturers or representative organizations shall submit reports with specified requirements. Provides that manufacturers or representative organizations participating in a postconsumer paint stewardship program shall not be liable for any claim of a violation of antitrust, restraint of trade, unfair trade practice, or other anticompetitive conduct arising from conduct undertaken in accordance with the program. Provides for administrative and oversight fees to be paid to the Agency. Provides that manufacturers or representative organizations shall implement the postconsumer paint collection plan within 6 months of the date that the program plan is approved. Contains provisions regarding postconsumer paint from households and small businesses. Contains other provisions. LRB103 25543 CPF 51892 b LRB103 25543 CPF 51892 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB0147 Introduced 1/25/2023, by Sen. Linda Holmes SYNOPSIS AS INTRODUCED:
3	3	New Act New Act
4	4	New Act
5	5	Creates the Paint Stewardship Act. Contains the findings of the General Assembly. Provides that manufacturers of architectural paint sold at retail in the State or representative organizations shall submit to the Director of the Environmental Protection Agency a plan for the establishment of a postconsumer paint stewardship program. Requires the program to meet specified requirements. Provides that manufacturers or retailers shall not sell or offer for sale architectural paint to any person in the State unless the manufacturer of a paint brand or representative organization is implementing an approved paint stewardship plan. Prohibits the incineration of leftover architectural paint collected pursuant to an approved paint stewardship plan. Provides that manufacturers or representative organizations shall submit reports with specified requirements. Provides that manufacturers or representative organizations participating in a postconsumer paint stewardship program shall not be liable for any claim of a violation of antitrust, restraint of trade, unfair trade practice, or other anticompetitive conduct arising from conduct undertaken in accordance with the program. Provides for administrative and oversight fees to be paid to the Agency. Provides that manufacturers or representative organizations shall implement the postconsumer paint collection plan within 6 months of the date that the program plan is approved. Contains provisions regarding postconsumer paint from households and small businesses. Contains other provisions.
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8	8	A BILL FOR
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11	11	1 AN ACT concerning safety.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 1. Short title. This Act may be cited as the Paint
15	15	5 Stewardship Act.
16	16	6 Section 5. Findings. The General Assembly finds that:
17	17	7 (1) Leftover architectural paints present significant
18	18	8 waste management issues for counties and municipalities.
19	19	9 Managing the end-of-life of architectural paint can be costly
20	20	10 and present environmental, health, and safety risks if not
21	21	11 properly managed.
22	22	12 (2) Nationally, an estimated 10% of architectural paint
23	23	13 purchased by consumers is leftover. Current governmental
24	24	14 programs collect only a fraction of the potential leftover
25	25	15 paint for proper reuse, recycling, or disposal. In northern
26	26	16 Illinois, there are only 4 permanent household hazard waste
27	27	17 facilities and these facilities do not typically accept latex
28	28	18 paint, the most common paint purchased by consumers.
29	29	19 (3) It is in the best interest of this State for paint
30	30	20 manufacturers to assume responsibility for development and
31	31	21 implementation of a cost-effective paint stewardship program
32	32	22 that will: educate consumers on strategies to reduce the
33	33	23 generation of leftover paint; provide opportunities to reuse
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37	37	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB0147 Introduced 1/25/2023, by Sen. Linda Holmes SYNOPSIS AS INTRODUCED:
38	38	New Act New Act
39	39	New Act
40	40	Creates the Paint Stewardship Act. Contains the findings of the General Assembly. Provides that manufacturers of architectural paint sold at retail in the State or representative organizations shall submit to the Director of the Environmental Protection Agency a plan for the establishment of a postconsumer paint stewardship program. Requires the program to meet specified requirements. Provides that manufacturers or retailers shall not sell or offer for sale architectural paint to any person in the State unless the manufacturer of a paint brand or representative organization is implementing an approved paint stewardship plan. Prohibits the incineration of leftover architectural paint collected pursuant to an approved paint stewardship plan. Provides that manufacturers or representative organizations shall submit reports with specified requirements. Provides that manufacturers or representative organizations participating in a postconsumer paint stewardship program shall not be liable for any claim of a violation of antitrust, restraint of trade, unfair trade practice, or other anticompetitive conduct arising from conduct undertaken in accordance with the program. Provides for administrative and oversight fees to be paid to the Agency. Provides that manufacturers or representative organizations shall implement the postconsumer paint collection plan within 6 months of the date that the program plan is approved. Contains provisions regarding postconsumer paint from households and small businesses. Contains other provisions.
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43	43	A BILL FOR
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68	68	1 leftover paint; and collect, transport, and process leftover
69	69	2 paint for end-of-life management, including reuse, recycling,
70	70	3 energy recovery, and disposal. Requiring paint manufacturers
71	71	4 to assume responsibility for the collection, recycling, reuse,
72	72	5 transportation, and disposal of leftover paint will provide
73	73	6 more opportunities for consumers to properly manage their
74	74	7 leftover paint, provide fiscal relief for this State and local
75	75	8 governments in managing leftover paint, keep paint out of the
76	76	9 waste stream, and conserve natural resources.
77	77	10 (4) Similar architectural paint stewardship programs are
78	78	11 currently operating in 11 jurisdictions and are successfully
79	79	12 diverting a significant portion of the collected paint waste
80	80	13 from landfills. These paint stewardship programs are saving
81	81	14 counties and municipalities the cost of managing paint waste
82	82	15 and have been successful at recycling leftover paint into
83	83	16 recycled paint products as well as other products. For
84	84	17 instance, in the state of Oregon, 64% of the latex paint
85	85	18 collected in the 2019-2020 fiscal year was recycled into paint
86	86	19 products; and, in Minnesota, 48% of the latex paint collected
87	87	20 during the same time period was reused or recycled into paint
88	88	21 products. Given the lack of access to architectural paint
89	89	22 collection programs in Illinois, especially for leftover latex
90	90	23 architectural paint, and the demonstrated ability of the paint
91	91	24 industry to collect and recycle a substantial portion of
92	92	25 leftover architectural paint, this legislation is necessary.
93	93	26 It will create a statewide program that diverts a significant
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104	104	1 portion of paint waste from landfills and facilitates
105	105	2 recycling of leftover paint into paint and other products.
106	106	3 (5) Establishing a paint stewardship program in Illinois
107	107	4 will create jobs as the marketplace adjusts to the needs of a
108	108	5 robust program that requires transporters and processors.
109	109	6 Certain infrastructure already exists in the State and the
110	110	7 program may attract additional resources.
111	111	8 (6) Legislation is needed to establish this program in
112	112	9 part because of the risk of antitrust lawsuits. The program
113	113	10 involves activities by competitors in the paint industry and
114	114	11 may affect the costs or prices of those competitors. As
115	115	12 construed by the courts, the antitrust laws impose severe
116	116	13 constraints on concerted action by competitors that affect
117	117	14 costs or prices. Absent State legislation, participation in
118	118	15 this program would entail an unacceptable risk of class action
119	119	16 lawsuits. The risk can be mitigated by legislation that would
120	120	17 bar application of federal antitrust law under the "state
121	121	18 action" doctrine. Under that doctrine, federal antitrust law
122	122	19 does not apply to conduct that is (1) undertaken pursuant to a
123	123	20 clearly expressed and affirmatively articulated state policy
124	124	21 to displace or limit competition, and (2) actively supervised
125	125	22 by the State.
126	126	23 (7) To ensure that this defense will be available to
127	127	24 protect participants in the program, it is important for State
128	128	25 legislation to be specific about the conduct it is authorizing
129	129	26 and to express clearly that the State is authorizing that
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140	140	1 conduct pursuant to a conscious policy decision to limit the
141	141	2 unfettered operation of market forces. It is also critical for
142	142	3 the legislation to provide for active supervision of the
143	143	4 conduct that might otherwise be subject to antitrust attack.
144	144	5 In particular, the legislation must provide for active
145	145	6 supervision of the decisions concerning the assessments that
146	146	7 will fund the program. A clear articulation of the State's
147	147	8 purposes and policies and provisions for active State
148	148	9 supervision of the program will ensure that industry
149	149	10 participation in the program will not trigger litigation.
150	150	11 (8) To ensure that the costs of the program are
151	151	12 distributed in an equitable and competitively neutral manner,
152	152	13 the program will be funded through an assessment on each
153	153	14 container of paint sold in this State. That assessment will be
154	154	15 sufficient to recover, but not exceed, the costs of sustaining
155	155	16 the program and will be reviewed and approved by the Illinois
156	156	17 Environmental Protection Agency. Funds collected through the
157	157	18 assessment will be used by the representative organization to
158	158	19 operate and sustain the program.
159	159	20 Section 10. Definitions. In this Act:
160	160	21 "Agency" means the Environmental Protection Agency.
161	161	22 "Architectural paint" means interior and exterior
162	162	23 architectural coatings sold in containers of 5 gallons or
163	163	24 less. "Architectural paint" does not include industrial
164	164	25 original equipment or specialty coatings.
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175	175	1 "Collection site" means any location, service, or event at
176	176	2 which architectural paint is accepted into a postconsumer
177	177	3 paint collection program pursuant to a postconsumer paint
178	178	4 collection program plan.
179	179	5 "Director" means the Director of the Environmental
180	180	6 Protection Agency.
181	181	7 "Environmentally sound management practices" means
182	182	8 procedures for the collection, storage, transportation, reuse,
183	183	9 recycling, and disposal of architectural paint to be
184	184	10 implemented by a manufacturer or representative organization
185	185	11 or by the manufacturer's or representative organization's
186	186	12 contracted partners to comply with all applicable federal,
187	187	13 State, and local laws and any rules, regulations, and
188	188	14 ordinances for the protection of human health and the
189	189	15 environment. These procedures shall address adequate
190	190	16 recordkeeping, tracking and documenting of the final
191	191	17 disposition of materials, and appropriate environmental
192	192	18 liability coverage for the representative organization.
193	193	19 "Household waste" has the same meaning as defined in 40
194	194	20 CFR 261.4(b)(1).
195	195	21 "Postconsumer paint" means architectural paint not used
196	196	22 and no longer wanted by a purchaser.
197	197	23 "Manufacturer" means a manufacturer of architectural paint
198	198	24 who sells, offers for sale, or distributes the architectural
199	199	25 paint in the State under the manufacturer's own name or brand.
200	200	26 "Program" means the postconsumer paint stewardship program
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211	211	1 established pursuant to Section 15.
212	212	2 "Recycling" means a method, technique, or process designed
213	213	3 to remove any contaminant from waste so as to render the waste
214	214	4 reusable, or any process by which materials that would
215	215	5 otherwise be disposed of or discarded are collected,
216	216	6 separated, or processed and returned to the economic
217	217	7 mainstream in the form of raw materials or products.
218	218	8 "Representative organization" means a nonprofit
219	219	9 organization established by a manufacturer to implement the
220	220	10 postconsumer paint stewardship program.
221	221	11 "Retailer" means a company that offers architectural paint
222	222	12 or other allied products for retail sale in the State.
223	223	13 "Very small quantity generator" has the same meaning as
224	224	14 defined in 40 CFR 260.10.
225	225	15 Section 15. Paint stewardship program plan.
226	226	16 (a) A manufacturer of architectural paint sold at retail
227	227	17 in the State or a representative organization shall submit to
228	228	18 the Director a plan for the establishment of a postconsumer
229	229	19 paint stewardship program. The program shall seek to reduce
230	230	20 the generation of postconsumer paint, promote its reuse and
231	231	21 recycling, and manage the waste stream using environmentally
232	232	22 sound management practices.
233	233	23 (b) The plan submitted by the manufacturer or
234	234	24 representative organization to the Agency under this Section
235	235	25 shall:
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246	246	1 (1) Provide a list of participating manufacturers and
247	247	2 brands covered by the program.
248	248	3 (2) Provide information on the architectural paint
249	249	4 products covered under the program, such as interior or
250	250	5 exterior water-based and oil-based coatings, primers,
251	251	6 sealers, or wood coatings.
252	252	7 (3) Describe how it will provide for convenient and
253	253	8 cost-effective statewide collection of postconsumer
254	254	9 architectural paint in the State. The manufacturer or
255	255	10 representative organization may coordinate the program
256	256	11 with existing household hazardous waste collection
257	257	12 infrastructure as is mutually agreeable. A paint retailer
258	258	13 may be authorized by the manufacturer or representative
259	259	14 organization as a paint collection site if the paint
260	260	15 retailer volunteers to act as such, complies with all
261	261	16 applicable laws, rules, and regulations, and the retail
262	262	17 location is consistent with the maintenance of a
263	263	18 cost-effective network of paint collection locations.
264	264	19 (4) Establish a goal for the number and geographic
265	265	20 distribution of collection sites for postconsumer
266	266	21 architectural paint using geographic modeling and the
267	267	22 following criteria:
268	268	23 (A) at least 90% of State residents shall have a
269	269	24 collection site within a 15-mile radius; and
270	270	25 (B) one site shall be available for every 50,000
271	271	26 residents of the State unless otherwise approved by
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282	282	1 the Director.
283	283	2 (5) Describe how postconsumer paint will be managed in
284	284	3 an environmentally and economically sound manner using the
285	285	4 following strategies and in the following order: reuse,
286	286	5 recycling, energy recovery, and disposal. Incineration
287	287	6 within the State shall not be utilized.
288	288	7 (6) Describe education and outreach efforts to inform
289	289	8 consumers about the program. These materials should
290	290	9 include:
291	291	10 (A) information about collection opportunities for
292	292	11 postconsumer paint;
293	293	12 (B) information about the fee for the operation of
294	294	13 the program that shall be included in the purchase
295	295	14 price of all architectural paint sold in the State;
296	296	15 and
297	297	16 (C) efforts to promote the source reduction,
298	298	17 reuse, and recycling of architectural paint.
299	299	18 (7) Be reviewed by an independent auditor to assure
300	300	19 that any added fee to paint sold in the State as a result
301	301	20 of the postconsumer paint stewardship program does not
302	302	21 exceed the costs to operate and sustain the program in
303	303	22 accordance with sound management practices. The
304	304	23 independent auditor shall verify that the amount added to
305	305	24 each unit of paint will cover the costs and sustain the
306	306	25 postconsumer paint stewardship program.
307	307	26 (c) A manufacturer or representative organization shall
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318	318	1 select the independent auditor under paragraph (7) of
319	319	2 subsection (b) in consultation with the Agency. The Agency
320	320	3 shall review the work product of the independent auditor. The
321	321	4 cost of any work performed by the independent auditor shall be
322	322	5 funded by the program.
323	323	6 (d) Not later than 60 days after submission of the plan
324	324	7 under this Section, the Director shall make a determination in
325	325	8 writing whether to approve the plan as submitted or disapprove
326	326	9 the plan.
327	327	10 (e) The Agency shall enforce the plan and may, by rule or
328	328	11 regulation, establish enforcement procedures. If circumstances
329	329	12 require an adjustment of the paint stewardship fee, the
330	330	13 manufacturer or representative organization shall request the
331	331	14 adjustment by submitting to the Agency a justification for the
332	332	15 adjustment as well as financial reports to support the
333	333	16 request, including a 5-year projection of the financial status
334	334	17 of the organization. The Agency shall review the request to
335	335	18 determine if the proposed fee adjustment will generate
336	336	19 revenues sufficient to pay the program expenses, including any
337	337	20 accumulated debt, and develop a reasonable reserve level
338	338	21 sufficient to sustain the program. If a decrease in the paint
339	339	22 fee is requested, the Agency shall review the request to
340	340	23 determine if the proposed fee adjustment and the resulting
341	341	24 decreased revenue is sufficient to pay program expenses and
342	342	25 maintain a reasonable reserve level sufficient to sustain the
343	343	26 program.
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354	354	1 (f) No later than the implementation date of the program,
355	355	2 information regarding the approved plan, the names of
356	356	3 participating manufacturers, and the brands of architectural
357	357	4 paint covered by the program shall be posted on the Agency's
358	358	5 website and on the website of the manufacturer or
359	359	6 representative organization.
360	360	7 (g) Upon implementation of the program, each manufacturer
361	361	8 shall include in the price of any architectural paint sold to
362	362	9 retailers and distributors in the State the per container
363	363	10 amount in the approved program plan. Manufacturers are
364	364	11 responsible for filing, reporting, and remitting the paint
365	365	12 stewardship assessment for each container of architectural
366	366	13 paint to the representative organization. A retailer or
367	367	14 distributor shall not deduct this amount from the purchase
368	368	15 price.
369	369	16 Section 20. Incineration prohibited. No person may
370	370	17 incinerate leftover architectural paint collected pursuant to
371	371	18 an approved paint stewardship plan as required by Section 15.
372	372	19 Section 25. Plan submission. The plan required by Section
373	373	20 15 shall be submitted not later than 12 months after the
374	374	21 authorization of the program is final. The Agency may grant an
375	375	22 extension of time to submit the plan for good cause.
376	376	23 Section 30. Sale of paint.
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387	387	1 (a) A manufacturer or retailer shall not sell or offer for
388	388	2 sale architectural paint to any person in the State unless the
389	389	3 manufacturer of a paint brand or the manufacturer's
390	390	4 representative organization is implementing an approved paint
391	391	5 stewardship plan as required by Section 15.
392	392	6 (b) A retailer shall be in compliance with this Act if, on
393	393	7 the date the architectural paint was offered for sale, the
394	394	8 retailer's manufacturer is listed on the Agency's website as
395	395	9 implementing or participating in an approved program or if the
396	396	10 paint brand is listed on the Agency's website as being
397	397	11 included in the program.
398	398	12 (c) A paint collection site authorized under the
399	399	13 provisions of this Act shall not charge any additional amount
400	400	14 for the disposal of paint when it is offered for disposal.
401	401	15 (d) No retailer is required to participate in a paint
402	402	16 stewardship program as a collection site. A retailer may
403	403	17 participate as a paint collection site on a voluntary basis.
404	404	18 (e) Nothing in this Act shall require a retailer to track,
405	405	19 file, report, submit, or remit a paint stewardship assessment,
406	406	20 sales data, or any other information on behalf of a
407	407	21 manufacturer, distributor, or representative organization.
408	408	22 Section 35. Liability. A manufacturer or representative
409	409	23 organization participating in a postconsumer paint stewardship
410	410	24 program shall not be liable for any claim of a violation of
411	411	25 antitrust, restraint of trade, unfair trade practice, or other
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422	422	1 anticompetitive conduct arising from conduct undertaken in
423	423	2 accordance with the program.
424	424	3 Section 40. Annual report. Annually, a manufacturer or
425	425	4 representative organization shall submit a report to the
426	426	5 Agency that details the program. The report shall include:
427	427	6 (1) a description of the methods used to collect and
428	428	7 transport postconsumer paint collected in the State;
429	429	8 (2) the volume and type of postconsumer paint
430	430	9 collected and a description of the methods used to process
431	431	10 the paint, including reuse, recycling, and other methods;
432	432	11 (3) samples of educational materials provided to
433	433	12 consumers of architectural paint; and
434	434	13 (4) the total cost of the program and an independent
435	435	14 financial audit. An independent financial auditor shall be
436	436	15 chosen by the manufacturer or representative organization.
437	437	16 The report or information relating to the report shall be
438	438	17 posted on the Agency's website and on the website of the
439	439	18 manufacturer or representative organization.
440	440	19 Section 45. Annual report submission. A manufacturer or
441	441	20 representative organization shall submit the first annual
442	442	21 report detailing the postconsumer paint collection program as
443	443	22 required by Section 15 to the Director on or before July 1 of
444	444	23 the second year following official implementation of the
445	445	24 program, and annually thereafter. The Agency may extend the
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456	456	1 time for submission of the annual report for cause shown.
457	457	2 Section 50. Disclosure. Financial, production, or sales
458	458	3 data reported to the Agency by a manufacturer, retailer, or
459	459	4 representative organization shall not be subject to
460	460	5 disclosure, but the Director may release a summary form of the
461	461	6 data that does not disclose financial, production, or sales
462	462	7 data of the manufacturer, retailer, or representative
463	463	8 organization.
464	464	9 Section 55. Program plan submission fee. A manufacturer or
465	465	10 representative organization submitting a program plan shall
466	466	11 pay an administrative fee to the Agency at the time of
467	467	12 submission. The Agency may establish a variable fee based on
468	468	13 relevant factors, including, but not limited to, the portion
469	469	14 of architectural paint sold in the State by members of the
470	470	15 manufacturer or representative organization compared to the
471	471	16 total amount of architectural paint sold in the State by all
472	472	17 manufacturers or representative organizations that submit a
473	473	18 plan.
474	474	19 Section 60. Oversight fee. A manufacturer or
475	475	20 representative organization operating a stewardship program
476	476	21 shall pay to the Agency the costs it incurs in overseeing the
477	477	22 stewardship program. The Agency shall set the fee at an amount
478	478	23 that, when paid by every manufacturer or representative
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489	489	1 organization that submits a plan, is adequate to reimburse the
490	490	2 Agency's full costs of administering this Act. The total
491	491	3 amount of annual fees collected under this Section must not
492	492	4 exceed the amount necessary to reimburse costs incurred by the
493	493	5 Agency to administer this Act.
494	494	6 Section 65. Timing of oversight fee. A manufacturer or
495	495	7 representative organization subject to Section 60 must pay the
496	496	8 Agency's administrative fee annually. The annual
497	497	9 administrative fee may not exceed 5% of the aggregate
498	498	10 stewardship fee added to the cost of all architectural paint
499	499	11 sold by manufacturers in the State for the preceding calendar
500	500	12 year. The Agency may extend the time for payment upon good
501	501	13 cause shown.
502	502	14 Section 70. Implementation. A manufacturer or
503	503	15 representative organization shall implement the postconsumer
504	504	16 paint collection plan within 6 months of the date that the
505	505	17 program plan is approved. The Agency may extend the date of
506	506	18 implementation for good cause shown.
507	507	19 Section 75. Postconsumer paint from households and small
508	508	20 businesses.
509	509	21 (a) Generators of household waste and very small quantity
510	510	22 generators are authorized to transport or send their
511	511	23 architectural paints to a paint collection site to the extent
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