Illinois 2023-2024 Regular Session

Illinois Senate Bill SB0147 Latest Draft

Bill / Introduced Version Filed 01/25/2023

                            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
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
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.
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    LRB103 25543 CPF 51892 b
A BILL FOR
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1  AN ACT concerning safety.
2  Be it enacted by the People of the State of Illinois,
3  represented in the General Assembly:
4  Section 1. Short title. This Act may be cited as the Paint
5  Stewardship Act.
6  Section 5. Findings. The General Assembly finds that:
7  (1) Leftover architectural paints present significant
8  waste management issues for counties and municipalities.
9  Managing the end-of-life of architectural paint can be costly
10  and present environmental, health, and safety risks if not
11  properly managed.
12  (2) Nationally, an estimated 10% of architectural paint
13  purchased by consumers is leftover. Current governmental
14  programs collect only a fraction of the potential leftover
15  paint for proper reuse, recycling, or disposal. In northern
16  Illinois, there are only 4 permanent household hazard waste
17  facilities and these facilities do not typically accept latex
18  paint, the most common paint purchased by consumers.
19  (3) It is in the best interest of this State for paint
20  manufacturers to assume responsibility for development and
21  implementation of a cost-effective paint stewardship program
22  that will: educate consumers on strategies to reduce the
23  generation of leftover paint; provide opportunities to reuse

 

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
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.
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A BILL FOR

 

 

New Act



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1  leftover paint; and collect, transport, and process leftover
2  paint for end-of-life management, including reuse, recycling,
3  energy recovery, and disposal. Requiring paint manufacturers
4  to assume responsibility for the collection, recycling, reuse,
5  transportation, and disposal of leftover paint will provide
6  more opportunities for consumers to properly manage their
7  leftover paint, provide fiscal relief for this State and local
8  governments in managing leftover paint, keep paint out of the
9  waste stream, and conserve natural resources.
10  (4) Similar architectural paint stewardship programs are
11  currently operating in 11 jurisdictions and are successfully
12  diverting a significant portion of the collected paint waste
13  from landfills. These paint stewardship programs are saving
14  counties and municipalities the cost of managing paint waste
15  and have been successful at recycling leftover paint into
16  recycled paint products as well as other products. For
17  instance, in the state of Oregon, 64% of the latex paint
18  collected in the 2019-2020 fiscal year was recycled into paint
19  products; and, in Minnesota, 48% of the latex paint collected
20  during the same time period was reused or recycled into paint
21  products. Given the lack of access to architectural paint
22  collection programs in Illinois, especially for leftover latex
23  architectural paint, and the demonstrated ability of the paint
24  industry to collect and recycle a substantial portion of
25  leftover architectural paint, this legislation is necessary.
26  It will create a statewide program that diverts a significant

 

 

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1  portion of paint waste from landfills and facilitates
2  recycling of leftover paint into paint and other products.
3  (5) Establishing a paint stewardship program in Illinois
4  will create jobs as the marketplace adjusts to the needs of a
5  robust program that requires transporters and processors.
6  Certain infrastructure already exists in the State and the
7  program may attract additional resources.
8  (6) Legislation is needed to establish this program in
9  part because of the risk of antitrust lawsuits. The program
10  involves activities by competitors in the paint industry and
11  may affect the costs or prices of those competitors. As
12  construed by the courts, the antitrust laws impose severe
13  constraints on concerted action by competitors that affect
14  costs or prices. Absent State legislation, participation in
15  this program would entail an unacceptable risk of class action
16  lawsuits. The risk can be mitigated by legislation that would
17  bar application of federal antitrust law under the "state
18  action" doctrine. Under that doctrine, federal antitrust law
19  does not apply to conduct that is (1) undertaken pursuant to a
20  clearly expressed and affirmatively articulated state policy
21  to displace or limit competition, and (2) actively supervised
22  by the State.
23  (7) To ensure that this defense will be available to
24  protect participants in the program, it is important for State
25  legislation to be specific about the conduct it is authorizing
26  and to express clearly that the State is authorizing that

 

 

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1  conduct pursuant to a conscious policy decision to limit the
2  unfettered operation of market forces. It is also critical for
3  the legislation to provide for active supervision of the
4  conduct that might otherwise be subject to antitrust attack.
5  In particular, the legislation must provide for active
6  supervision of the decisions concerning the assessments that
7  will fund the program. A clear articulation of the State's
8  purposes and policies and provisions for active State
9  supervision of the program will ensure that industry
10  participation in the program will not trigger litigation.
11  (8) To ensure that the costs of the program are
12  distributed in an equitable and competitively neutral manner,
13  the program will be funded through an assessment on each
14  container of paint sold in this State. That assessment will be
15  sufficient to recover, but not exceed, the costs of sustaining
16  the program and will be reviewed and approved by the Illinois
17  Environmental Protection Agency. Funds collected through the
18  assessment will be used by the representative organization to
19  operate and sustain the program.
20  Section 10. Definitions. In this Act:
21  "Agency" means the Environmental Protection Agency.
22  "Architectural paint" means interior and exterior
23  architectural coatings sold in containers of 5 gallons or
24  less. "Architectural paint" does not include industrial
25  original equipment or specialty coatings.

 

 

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1  "Collection site" means any location, service, or event at
2  which architectural paint is accepted into a postconsumer
3  paint collection program pursuant to a postconsumer paint
4  collection program plan.
5  "Director" means the Director of the Environmental
6  Protection Agency.
7  "Environmentally sound management practices" means
8  procedures for the collection, storage, transportation, reuse,
9  recycling, and disposal of architectural paint to be
10  implemented by a manufacturer or representative organization
11  or by the manufacturer's or representative organization's
12  contracted partners to comply with all applicable federal,
13  State, and local laws and any rules, regulations, and
14  ordinances for the protection of human health and the
15  environment. These procedures shall address adequate
16  recordkeeping, tracking and documenting of the final
17  disposition of materials, and appropriate environmental
18  liability coverage for the representative organization.
19  "Household waste" has the same meaning as defined in 40
20  CFR 261.4(b)(1).
21  "Postconsumer paint" means architectural paint not used
22  and no longer wanted by a purchaser.
23  "Manufacturer" means a manufacturer of architectural paint
24  who sells, offers for sale, or distributes the architectural
25  paint in the State under the manufacturer's own name or brand.
26  "Program" means the postconsumer paint stewardship program

 

 

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1  established pursuant to Section 15.
2  "Recycling" means a method, technique, or process designed
3  to remove any contaminant from waste so as to render the waste
4  reusable, or any process by which materials that would
5  otherwise be disposed of or discarded are collected,
6  separated, or processed and returned to the economic
7  mainstream in the form of raw materials or products.
8  "Representative organization" means a nonprofit
9  organization established by a manufacturer to implement the
10  postconsumer paint stewardship program.
11  "Retailer" means a company that offers architectural paint
12  or other allied products for retail sale in the State.
13  "Very small quantity generator" has the same meaning as
14  defined in 40 CFR 260.10.
15  Section 15. Paint stewardship program plan.
16  (a) A manufacturer of architectural paint sold at retail
17  in the State or a representative organization shall submit to
18  the Director a plan for the establishment of a postconsumer
19  paint stewardship program. The program shall seek to reduce
20  the generation of postconsumer paint, promote its reuse and
21  recycling, and manage the waste stream using environmentally
22  sound management practices.
23  (b) The plan submitted by the manufacturer or
24  representative organization to the Agency under this Section
25  shall:

 

 

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1  (1) Provide a list of participating manufacturers and
2  brands covered by the program.
3  (2) Provide information on the architectural paint
4  products covered under the program, such as interior or
5  exterior water-based and oil-based coatings, primers,
6  sealers, or wood coatings.
7  (3) Describe how it will provide for convenient and
8  cost-effective statewide collection of postconsumer
9  architectural paint in the State. The manufacturer or
10  representative organization may coordinate the program
11  with existing household hazardous waste collection
12  infrastructure as is mutually agreeable. A paint retailer
13  may be authorized by the manufacturer or representative
14  organization as a paint collection site if the paint
15  retailer volunteers to act as such, complies with all
16  applicable laws, rules, and regulations, and the retail
17  location is consistent with the maintenance of a
18  cost-effective network of paint collection locations.
19  (4) Establish a goal for the number and geographic
20  distribution of collection sites for postconsumer
21  architectural paint using geographic modeling and the
22  following criteria:
23  (A) at least 90% of State residents shall have a
24  collection site within a 15-mile radius; and
25  (B) one site shall be available for every 50,000
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1  the Director.
2  (5) Describe how postconsumer paint will be managed in
3  an environmentally and economically sound manner using the
4  following strategies and in the following order: reuse,
5  recycling, energy recovery, and disposal. Incineration
6  within the State shall not be utilized.
7  (6) Describe education and outreach efforts to inform
8  consumers about the program. These materials should
9  include:
10  (A) information about collection opportunities for
11  postconsumer paint;
12  (B) information about the fee for the operation of
13  the program that shall be included in the purchase
14  price of all architectural paint sold in the State;
15  and
16  (C) efforts to promote the source reduction,
17  reuse, and recycling of architectural paint.
18  (7) Be reviewed by an independent auditor to assure
19  that any added fee to paint sold in the State as a result
20  of the postconsumer paint stewardship program does not
21  exceed the costs to operate and sustain the program in
22  accordance with sound management practices. The
23  independent auditor shall verify that the amount added to
24  each unit of paint will cover the costs and sustain the
25  postconsumer paint stewardship program.
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1  select the independent auditor under paragraph (7) of
2  subsection (b) in consultation with the Agency. The Agency
3  shall review the work product of the independent auditor. The
4  cost of any work performed by the independent auditor shall be
5  funded by the program.
6  (d) Not later than 60 days after submission of the plan
7  under this Section, the Director shall make a determination in
8  writing whether to approve the plan as submitted or disapprove
9  the plan.
10  (e) The Agency shall enforce the plan and may, by rule or
11  regulation, establish enforcement procedures. If circumstances
12  require an adjustment of the paint stewardship fee, the
13  manufacturer or representative organization shall request the
14  adjustment by submitting to the Agency a justification for the
15  adjustment as well as financial reports to support the
16  request, including a 5-year projection of the financial status
17  of the organization. The Agency shall review the request to
18  determine if the proposed fee adjustment will generate
19  revenues sufficient to pay the program expenses, including any
20  accumulated debt, and develop a reasonable reserve level
21  sufficient to sustain the program. If a decrease in the paint
22  fee is requested, the Agency shall review the request to
23  determine if the proposed fee adjustment and the resulting
24  decreased revenue is sufficient to pay program expenses and
25  maintain a reasonable reserve level sufficient to sustain the
26  program.

 

 

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1  (f) No later than the implementation date of the program,
2  information regarding the approved plan, the names of
3  participating manufacturers, and the brands of architectural
4  paint covered by the program shall be posted on the Agency's
5  website and on the website of the manufacturer or
6  representative organization.
7  (g) Upon implementation of the program, each manufacturer
8  shall include in the price of any architectural paint sold to
9  retailers and distributors in the State the per container
10  amount in the approved program plan. Manufacturers are
11  responsible for filing, reporting, and remitting the paint
12  stewardship assessment for each container of architectural
13  paint to the representative organization. A retailer or
14  distributor shall not deduct this amount from the purchase
15  price.
16  Section 20. Incineration prohibited. No person may
17  incinerate leftover architectural paint collected pursuant to
18  an approved paint stewardship plan as required by Section 15.
19  Section 25. Plan submission. The plan required by Section
20  15 shall be submitted not later than 12 months after the
21  authorization of the program is final. The Agency may grant an
22  extension of time to submit the plan for good cause.
23  Section 30. Sale of paint.

 

 

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1  (a) A manufacturer or retailer shall not sell or offer for
2  sale architectural paint to any person in the State unless the
3  manufacturer of a paint brand or the manufacturer's
4  representative organization is implementing an approved paint
5  stewardship plan as required by Section 15.
6  (b) A retailer shall be in compliance with this Act if, on
7  the date the architectural paint was offered for sale, the
8  retailer's manufacturer is listed on the Agency's website as
9  implementing or participating in an approved program or if the
10  paint brand is listed on the Agency's website as being
11  included in the program.
12  (c) A paint collection site authorized under the
13  provisions of this Act shall not charge any additional amount
14  for the disposal of paint when it is offered for disposal.
15  (d) No retailer is required to participate in a paint
16  stewardship program as a collection site. A retailer may
17  participate as a paint collection site on a voluntary basis.
18  (e) Nothing in this Act shall require a retailer to track,
19  file, report, submit, or remit a paint stewardship assessment,
20  sales data, or any other information on behalf of a
21  manufacturer, distributor, or representative organization.
22  Section 35. Liability. A manufacturer or representative
23  organization participating in a postconsumer paint stewardship
24  program shall not be liable for any claim of a violation of
25  antitrust, restraint of trade, unfair trade practice, or other

 

 

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1  anticompetitive conduct arising from conduct undertaken in
2  accordance with the program.
3  Section 40. Annual report. Annually, a manufacturer or
4  representative organization shall submit a report to the
5  Agency that details the program. The report shall include:
6  (1) a description of the methods used to collect and
7  transport postconsumer paint collected in the State;
8  (2) the volume and type of postconsumer paint
9  collected and a description of the methods used to process
10  the paint, including reuse, recycling, and other methods;
11  (3) samples of educational materials provided to
12  consumers of architectural paint; and
13  (4) the total cost of the program and an independent
14  financial audit. An independent financial auditor shall be
15  chosen by the manufacturer or representative organization.
16  The report or information relating to the report shall be
17  posted on the Agency's website and on the website of the
18  manufacturer or representative organization.
19  Section 45. Annual report submission. A manufacturer or
20  representative organization shall submit the first annual
21  report detailing the postconsumer paint collection program as
22  required by Section 15 to the Director on or before July 1 of
23  the second year following official implementation of the
24  program, and annually thereafter. The Agency may extend the

 

 

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1  time for submission of the annual report for cause shown.
2  Section 50. Disclosure. Financial, production, or sales
3  data reported to the Agency by a manufacturer, retailer, or
4  representative organization shall not be subject to
5  disclosure, but the Director may release a summary form of the
6  data that does not disclose financial, production, or sales
7  data of the manufacturer, retailer, or representative
8  organization.
9  Section 55. Program plan submission fee. A manufacturer or
10  representative organization submitting a program plan shall
11  pay an administrative fee to the Agency at the time of
12  submission. The Agency may establish a variable fee based on
13  relevant factors, including, but not limited to, the portion
14  of architectural paint sold in the State by members of the
15  manufacturer or representative organization compared to the
16  total amount of architectural paint sold in the State by all
17  manufacturers or representative organizations that submit a
18  plan.
19  Section 60. Oversight fee. A manufacturer or
20  representative organization operating a stewardship program
21  shall pay to the Agency the costs it incurs in overseeing the
22  stewardship program. The Agency shall set the fee at an amount
23  that, when paid by every manufacturer or representative

 

 

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1  organization that submits a plan, is adequate to reimburse the
2  Agency's full costs of administering this Act. The total
3  amount of annual fees collected under this Section must not
4  exceed the amount necessary to reimburse costs incurred by the
5  Agency to administer this Act.
6  Section 65. Timing of oversight fee. A manufacturer or
7  representative organization subject to Section 60 must pay the
8  Agency's administrative fee annually. The annual
9  administrative fee may not exceed 5% of the aggregate
10  stewardship fee added to the cost of all architectural paint
11  sold by manufacturers in the State for the preceding calendar
12  year. The Agency may extend the time for payment upon good
13  cause shown.
14  Section 70. Implementation. A manufacturer or
15  representative organization shall implement the postconsumer
16  paint collection plan within 6 months of the date that the
17  program plan is approved. The Agency may extend the date of
18  implementation for good cause shown.
19  Section 75. Postconsumer paint from households and small
20  businesses.
21  (a) Generators of household waste and very small quantity
22  generators are authorized to transport or send their
23  architectural paints to a paint collection site to the extent

 

 

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