EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LAW. [Brackets] indicate matter deleted from existing law. Underlining indicates amendments to bill. Strike out indicates matter stricken from the bill by amendment or deleted from the law by amendment. *hb0018* HOUSE BILL 18 M3 2lr0964 HB 127/21 – ENT & ECM (PRE–FILED) CF SB 143 By: Delegate Boyce Delegates Boyce, Amprey, Barve, Foley, Fraser –Hidalgo, Healey, Holmes, Jalisi, Lehman, Lierman, Love, Prettyman, Ruth, Stein, Stewart, Terrasa, and Wells Requested: October 26, 2021 Introduced and read first time: January 12, 2022 Assigned to: Environment and Transportation and Economic Matters Committee Report: Favorable with amendments House action: Adopted Read second time: March 3, 2022 CHAPTER ______ AN ACT concerning 1 Maryland Paint Stewardship 2 FOR the purpose of requiring certain producers of architectural paint sold at retail in the 3 State or a certain representative organization to submit a plan for the establishment 4 of a Paint Stewardship Program to the Department of the Environment for approval 5 on or before a certain date and in accordance with certain requirements; requiring a 6 certain plan to establish a certain assessment on architectural paint sold in the State 7 that is necessary to cover the Paint Stewardship Program’s cost of collecting, 8 transporting, and processing postconsumer paint statewide; requiring the Office of 9 Recycling within the Department to review and approve certain plans, including a 10 certain assessment, submitted in accordance with the Paint Stewardship Program; 11 requiring certain producers and retailers or distributors to add a certain assessment 12 to the cost of all architectural paint sold in the State beginning on a certain date; 13 requiring a certain producer or representative organization to implement a certain 14 program within a certain amount of time after the Department approves a certain 15 plan; prohibiting a producer or retailer from selling or offering for sale certain 16 architectural paint under certain circumstances beginning on a certain date or after 17 a certain amount of time after the Department approves a certain plan, whichever 18 is later; and generally relating to the Paint Stewardship Program. 19 BY repealing and reenacting, without amendments, 20 Article – Environment 21 2 HOUSE BILL 18 Section 9–1701(a), (i), and (m) 1 Annotated Code of Maryland 2 (2014 Replacement Volume and 2021 Supplement) 3 BY adding to 4 Article – Environment 5 Section 9–1701(b–1), (i–1), (o–1) through (o–3), (r–2) through (r–4); and 9–1733 to be 6 under the new part “Part V. Paint Stewardship Program” 7 Annotated Code of Maryland 8 (2014 Replacement Volume and 2021 Supplement) 9 BY repealing and reenacting, with amendments, 10 Article – Environment 11 Section 9–1701(i–1), 9–1702, and 9–1707(f) 12 Annotated Code of Maryland 13 (2014 Replacement Volume and 2021 Supplement) 14 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15 That the Laws of Maryland read as follows: 16 Article – Environment 17 9–1701. 18 (a) In this subtitle the following words have the meanings indicated. 19 (B–1) (1) “ARCHITECTURAL PAINT ” MEANS INTERIOR AND E XTERIOR 20 ARCHITECTURAL COATIN GS SOLD IN CONTAINER S OF 5 GALLONS OR LESS . 21 (2) “ARCHITECTURAL PAINT ” DOES NOT INCLUDE IND USTRIAL 22 COATINGS, ORIGINAL EQUIPMENT C OATINGS, OR SPECIALTY COATING S. 23 (i) “Director” means the Director of the Office of Recycling. 24 (I–1) “DISTRIBUTOR” MEANS A COMPANY THAT HAS A CONTRACTUAL 25 RELATIONSHIP WITH ON E OR MORE PRODUCERS TO MARKET AND SELL 26 ARCHITECTURAL PAINT TO RETAILERS IN THE STATE. 27 [(i–1)] (I–2) “Food residuals” means material derived from the processing or 28 discarding of food, including pre– and post–consumer vegetables, fruits, grains, dairy 29 products, and meats. 30 (m) “Office” means the Office of Recycling within the Department. 31 (O–1) “PAINT STEWARDSHIP ASS ESSMENT” MEANS THE AMOUNT ADD ED TO 32 THE PURCHASE PRICE O F ARCHITECTURAL PAINT SOLD IN THE STATE THAT IS 33 HOUSE BILL 18 3 NECESSARY TO COVER T HE PAINT STEWARDSHIP PROGRAM’S COST OF 1 COLLECTING, TRANSPORTING , AND PROCESSING POSTC ONSUMER PAINT 2 STATEWIDE. 3 (O–2) “POSTCONSUMER PAINT ” MEANS ARCHITECTURAL PAINT NOT USED 4 AND NO LONGER WANTED BY A PURCHASER . 5 (O–3) “PRODUCER” MEANS A MANUFACTURER OF ARCHITECTURAL PAI NT 6 THAT SELLS, OFFERS FOR SALE , OR DISTRIBUTES THE P AINT IN THE STATE UNDER 7 THE PRODUCER ’S OWN NAME OR BRAND . 8 (R–2) “REPRESENTATIVE ORGANI ZATION” MEANS A NONPROFIT 9 ORGANIZATION CREATED BY PRODUCERS TO IMPLEMENT A PAINT STEWARDSHIP 10 PROGRAM. 11 (R–3) “RETAILER” MEANS ANY PERSON THA T OFFERS ARCHITECTUR AL PAINT 12 FOR SALE AT RETAIL I N THE STATE. 13 (R–4) “SALE” OR “SELL” MEANS ANY TRANSFER O F TITLE FOR 14 CONSIDERATION , INCLUDING REMOTE SAL ES CONDUCTED THROUGH SALES 15 OUTLETS, CATALOGUES , THE INTERNET, OR ANY OTHER SIMILAR ELECTRONIC 16 MEANS. 17 9–1702. 18 (a) There is an Office of Recycling created within the Department. 19 (b) The Secretary shall appoint a Director and sufficient staff to perform the 20 functions of the Office. After July 1, 1989, the number of staff shall be as provided in the 21 budget. 22 (c) The Secretary may adopt regulations to carry out the provisions of this 23 subtitle. 24 (d) The Office shall: 25 (1) Assist the counties in developing an acceptable recycling plan required 26 under § 9–1703 of this subtitle and § 9–505 of this title, including technical assistance to 27 the local governments; 28 (2) Coordinate the efforts of the State to facilitate the implementation of 29 the recycling goals at the county level; 30 (3) Review all recycling plans submitted as part of a county plan as 31 required under § 9–505 of this title and advise the Secretary on the adequacy of the 32 recycling plan; 33 4 HOUSE BILL 18 (4) Administer the Statewide Electronics Recycling Program under Part IV 1 of this subtitle; [and] 2 (5) Promote the development of markets for recycled materials and 3 recycled products in the State in accordance with § 9–1702.1 of this subtitle; AND 4 (6) REVIEW AND APPROVE PL ANS AND ANNUAL REPOR TS, INCLUDING 5 THE PAINT STEWARDSHIP AS SESSMENT, SUBMITTED IN ACCORDA NCE WITH A PAINT 6 STEWARDSHIP PROGRAM ESTABLISHED U NDER PART V OF THIS SUBTITLE . 7 (e) Beginning on January 1, 1990, and biannually thereafter, the Office shall, in 8 coordination with the Maryland Environmental Service, study and report to the Governor 9 and, subject to § 2–1257 of the State Government Article, the General Assembly on: 10 (1) The identification and location of recycling centers, including an 11 analysis of existing recycling centers and the need to expand these facilities or construct 12 new recycling centers; 13 (2) Programs necessary to educate the public on the need to participate in 14 recycling efforts; 15 (3) The economics and financing of existing and proposed systems of waste 16 disposal and recycling; 17 (4) State procurement policies for the purchase of recycled materials; 18 (5) Programs necessary to reduce the amount of solid waste generated for 19 disposal by a State agency or unit; 20 (6) The liaison role with local governments, the federal government, and 21 the private sector; 22 (7) The percentage reduction in the amount of solid waste that has been 23 achieved by each county; and 24 (8) Economically feasible methods for the recycling of scrap automobile 25 tires, batteries, and white goods. 26 (f) (1) By December 1, 1988, the Office shall, in coordination with the 27 Maryland Environmental Service and the Governor’s Task Force on Solid Waste, make 28 recommendations to the General Assembly for the financing of a comprehensive system of 29 recycling at the State and local level, including funding for recycling centers, recycling 30 equipment, recycling education, and marketing strategies. 31 (2) After the financing recommendations are made under paragraph (1) of 32 this subsection, each county may submit to the Office and the Governor a detailed request 33 HOUSE BILL 18 5 for funds necessary to assist in the development and implementation of a recycling plan 1 under guidelines developed by the Office. 2 (g) In studying feasible methods for the management and recycling of used tires 3 under subsection (e)(9) of this section, the Office of Recycling shall consult with the 4 appropriate industry, including representatives of: 5 (1) Tire manufacturers; 6 (2) Tire dealers; and 7 (3) Tire recyclers. 8 9–1707. 9 (f) (1) There is a State Recycling Trust Fund. 10 (2) The Fund shall consist of: 11 (i) The newsprint recycling incentive fee; 12 (ii) The telephone directory recycling incentive fee collected under § 13 9–1709 of this subtitle; 14 (iii) The covered electronic device manufacturer registration fee 15 collected under § 9–1728 of this subtitle; 16 (IV) THE PAINT STEWARDSHIP PROGRAM PLAN AND ANNU AL 17 REPORT REVIEW FEES C OLLECTED UNDER § 9–1733(B) AND (H) OF THIS SUBTITLE; 18 [(iv)] (V) All fines and penalties collected under this subtitle; 19 [(v)] (VI) Money appropriated in the State budget to the Fund; and 20 [(vi)] (VII) Any other money from any other source accepted for the 21 benefit of the Fund. 22 (3) The Secretary shall administer the Fund. 23 (4) The Treasurer shall hold the Fund separately and the Comptroller shall 24 account for the Fund. 25 (5) At the end of each fiscal year, any unspent or unencumbered balance in 26 the Fund that exceeds $2,000,000 shall revert to the General Fund of the State in 27 accordance with § 7–302 of the State Finance and Procurement Article. 28 (6) In accordance with the State budget, the Fund shall be used only: 29 6 HOUSE BILL 18 (i) To provide grants to the counties to be used by the counties to 1 develop and implement local recycling plans; 2 (ii) To provide grants to counties that have addressed methods for 3 the separate collection and recycling of covered electronic devices in accordance with § 4 9–1703(c)(1) of this subtitle; 5 (iii) To provide grants to municipalities to be used by the 6 municipalities to implement local covered electronic device recycling programs; [and] 7 (IV) TO COVER THE COSTS OF THE PAINT STEWARDSHIP 8 PROGRAM PLAN REVIEW U NDER § 9–1733(B) OF THIS SUBTITLE , THE ANNUAL 9 REPORT REVIEW UNDER § 9–1733(H) OF THIS SUBTITLE , AND ASSOCIATED COSTS 10 FOR PROGRAM COMPLIANCE OVERSIGHT; AND 11 [(iv)] (V) To carry out the purposes of the land management 12 administration. 13 (7) (i) The Treasurer shall invest the money in the Fund in the same 14 manner as other State money may be invested. 15 (ii) Any investment earnings of the Fund shall be credited to the 16 General Fund of the State. 17 9–1731. RESERVED. 18 9–1732. RESERVED. 19 PART V. PAINT STEWARDSHIP PROGRAM. 20 9–1733. 21 (A) (1) ON OR BEFORE JANUARY 1, 2023, PRODUCERS OF 22 ARCHITECTURAL PAINT SOLD AT RETAIL IN TH E STATE, OR A REPRESENTATIV E 23 ORGANIZATION ACTING ON A PRODUCER ’S BEHALF, SHALL SUBMIT A PLAN FOR THE 24 ESTABLISHMENT OF A PAINT STEWARDSHIP PROGRAM TO THE DEPARTMENT FOR 25 APPROVAL. 26 (2) THE PLAN SHALL MINIMI ZE PUBLIC SECTOR INV OLVEMENT IN , 27 AND FINANCIAL RESPON SIBILITY FOR, THE MANAGE MENT OF POSTCONSUMER 28 PAINT BY: 29 (I) REDUCING ITS GENERATI ON; 30 HOUSE BILL 18 7 (II) PROMOTING ITS REUSE A ND RECYCLING ; AND 1 (III) NEGOTIATING AND EXECU TING AGREEMENTS TO C OLLECT, 2 TRANSPORT, REUSE, RECYCLE, PROCESS FOR RESOURCE RECOVERY, AND DISPOSE 3 OF POSTCONSUMER PAINT. 4 (3) THE PLAN SHALL PROVID E FOR CONVENIENT AND AVAILABLE 5 STATEWIDE COLLECTION OF POSTCONSUMER PAIN T THAT: 6 (I) PROVIDES FOR COLLECTI ON RATES AND CONVENI ENCE 7 EQUAL TO OR GREATER THAN THE COLLECTION PROGRAMS AVAILABLE T O 8 CONSUMERS PRIOR TO T HE PAINT STEWARDSHIP PROGRAM; 9 (II) IDENTIFIES EACH PRODU CER PARTICIPATING IN THE 10 PAINT STEWARDSHIP PROGRAM AND THE BRAND S OF ARCHITECTURAL P AINT SOLD 11 IN THE STATE THAT ARE COVERE D BY THE PROGRAM; 12 (III) DESCRIBES HOW THE PAINT STEWARDSHIP PROGRAM MAY 13 BE IMPLEMENTED IN COORD INATION WITH EXISTIN G HOUSEHOLD HAZARDOU S 14 WASTE COLLECTION INF RASTRUCTURE IN A MAN NER THAT IS MUTUALLY 15 AGREEABLE; AND 16 (IV) PROVIDES GEOGRAPHIC M ODELING TO DETERMINE THE 17 NUMBER AND DISTRIBUT ION OF SITES FOR COL LECTION OF POSTCONSU MER PAINT 18 BASED ON THE FOLLOWI NG CRITERIA: 19 1. AT LEAST 90% OF THE RESIDENTS OF THE STATE 20 SHALL HAVE A COLLECT ION SITE WITHIN A 15–MILE RADIUS; AND 21 2. UNLESS OTHERWISE APPR OVED BY THE 22 DEPARTMENT , ONE ADDITIONAL COLLE CTION SITE SHALL BE ESTABLISHED F OR 23 EVERY 50,000 RESIDENTS OF A GEOGR APHICAL AREA DESIGNA TED UNDER FEDERAL 24 LAW AS AN URBANIZED AREA. 25 (4) THE PLAN MAY IDENTIFY A RETAILER AS A POST CONSUMER PAINT 26 COLLECTION SITE IF : 27 (I) THE RETAILER VOLUNTEE RS TO ACT AS A POSTC ONSUMER 28 PAINT COLLECTIO N SITE; 29 (II) THE RETAILER IS IN CO MPLIANCE WITH ALL AP PLICABLE 30 LAWS AND REGULATIONS ; AND 31 8 HOUSE BILL 18 (III) THE SITE LOCATION OF THE RETAILER IS CONS ISTENT WITH 1 MAINTAINING A COST –EFFECTIVE NETWORK OF POSTCONSUMER PAINT 2 COLLECTION LOCATIONS . 3 (5) THE PLAN SHA LL ESTABLISH: 4 (I) A UNIFORM PAINT STEWAR DSHIP ASSESSMENT FOR ALL 5 ARCHITECTURAL PAINT SOLD IN THE STATE; AND 6 (II) A MECHANISM FOR PAINT PRODUCERS PARTICIPAT ING IN A 7 PAINT STEWARDSHIP PROGRAM TO REMIT TO T HE REPRESENTATIVE 8 ORGANIZATION PAYMENT OF THE PAINT STEWARDSHIP AS SESSMENT FOR EACH 9 CONTAINER OF ARCHITE CTURAL PAINT SOLD IN THE STATE. 10 (6) THE TOTAL AMOUNT OF T HE PAINT STEWARDSHIP ASSESSMENT 11 MAY NOT EXCEED THE C OSTS OF IMPLEMENTING THE PAINT STEWARDSHIP 12 PROGRAM. 13 (7) (I) THE PAINT STEWARDSHIP ASSESSMENT SHALL BE 14 EVALUATED BY AN INDE PENDENT FINANCIAL AU DITOR, AS DESIGNATED BY THE 15 DEPARTMENT , TO ENSURE THE COSTS OF IMPLEMENTING THE PAINT 16 STEWARDSHIP PROGRAM ARE COVERED B UT NOT EXCEEDED . 17 (II) THE COST OF ANY WORK PERFORMED BY AN INDE PENDENT 18 FINANCIAL AUDITOR SHA LL BE FUNDED BY THE PROGRAM. 19 (8) PAINT STEWARDSHIP ASS ESSMENTS MAY BE USED ONLY TO 20 IMPLEMENT THE PAINT STEWARDSHIP PROGRAM. 21 (B) (1) THE DEPARTMENT SHALL REVI EW: 22 (I) THE PAINT STEWARDSHIP PROGRAM PLAN REQUIRED 23 UNDER SUBSECTION (A) OF THIS SECTION; AND 24 (II) THE WORK PRODUCT OF T HE INDEPENDENT FINAN CIAL 25 AUDITOR DESIGNATED B Y THE DEPARTMENT TO EVALUAT E PAINT STEWARDSHIP 26 ASSESSMENTS . 27 (2) THE PRODUCER OR REPRE SENTATIVE ORGANIZATI ON THAT 28 SUBMITS A PLAN FOR A PPROVAL SHALL PAY A PLAN REVIEW FEE TO T HE 29 DEPARTMENT TO BE DEPO SITED IN THE STATE RECYCLING TRUST FUND UNDER § 30 9–1707 OF THIS SUBTITLE THA T COVERS THE DEPARTMENT ’S COST OF PLAN 31 REVIEW, INCLUDING ASSOCIATED COSTS FOR PROGRAM COMPLIANCE OV ERSIGHT, 32 AS DETERMINED BY THE DEPARTME NT. 33 HOUSE BILL 18 9 (3) IF THE DEPARTMENT DETERMINES THAT THE PAINT 1 STEWARDSHIP PROGRAM PLAN , INCLUDING THE PAINT STEWARDSHIP 2 ASSESSMENT , COMPLIES WITH THE RE QUIREMENTS OF SUBSEC TION (A) OF THIS 3 SECTION, THE DEPARTMENT SHALL APPR OVE THE PROGRAM. 4 (4) THE DEPARTMENT S HALL LIST ON ITS WEB SITE THE PRODUCERS 5 AND BRANDS IMPLEMENT ING OR PARTICIPATING IN AN APPROVED PAINT 6 STEWARDSHIP PROGRAM. 7 (C) (1) A PRODUCER OR REPRESEN TATIVE ORGANIZATION SHALL 8 IMPLEMENT ITS PAINT STEWARDSHIP PROGRAM PLAN WITHIN 6 MONTHS AFTER 9 THE PLAN’S APPROVAL BY THE DEPARTMENT . 10 (2) BEGINNING OCTOBER 1, 2023, OR 6 MONTHS AFTER PLAN 11 APPROVAL, WHICHEVER IS LATER : 12 (I) A PRODUCER OR RETAILER MAY NOT SELL OR OFFE R FOR 13 SALE A BRAND OF ARCH ITECTURAL PAINT TO A NY PERSON IN THE STATE, UNLESS 14 THE PRODUCE R OF THE BRAND OR A REPRESENTATIVE ORGAN IZATION OF WHICH 15 THE PRODUCER IS A ME MBER IS IMPLEMENTING AN APPROVED PAINT 16 STEWARDSHIP PROGRAM; 17 (II) A PRODUCER SHALL ADD T HE PAINT STEWARDSHIP 18 ASSESSMENT ESTABLISH ED UNDER AN APPROVED PAINT STEWARDSHIP PROGRAM 19 TO THE COST OF ALL A RCHITECTURAL PAINT S OLD TO RETAILERS AND 20 DISTRIBUTED IN THE STATE; AND 21 (III) EACH RETAILER OR DIST RIBUTOR SHALL ADD A PAINT 22 STEWARDSHIP ASSESSME NT TO THE PURCHASE P RICE OF ALL ARCHITEC TURAL 23 PAINT SOLD IN THE STATE. 24 (D) A PRODUCER OR REPRESENTATIVE OR GANIZATION PARTICIPA TING IN 25 AN APPROVED PAINT STEWARDSHIP PROGRAM SHALL PROVIDE CONSUMERS WITH 26 EDUCATIONAL MATERIAL S REGARDING THE PROGRAM THAT INCLUDE : 27 (1) INFORMATION REGARDING AVAILABLE END –OF–LIFE 28 MANAGEMENT OPTIONS F OR ARCHITECTURAL PAINT OFFERED THROUGH THE 29 PROGRAM; AND 30 (2) INFORMATION THAT NOTI FIES CONSUMERS THAT AN 31 ASSESSMENT TO COVER THE COSTS OF IMPLEME NTING THE PROGRAM IS INCLUDED 32 IN THE PURCHASE PRIC E OF ALL ARCHITECTUR AL PAINT SOLD IN THE STATE. 33 10 HOUSE BILL 18 (E) FOLLOWING THE IMPLEMENTATION OF THE PAINT STEWARDSHIP 1 PROGRAM, A RETAILER COMPLIES WITH THE REQUIREMENT S OF THIS SECTION IF, 2 ON THE DATE THE ARCH ITECTURAL PAINT WAS ORDERED FROM THE PRO DUCER OR 3 ITS AGENT, THE PRODUCER OF THE PAINT BRAND IS LISTE D ON THE DEPARTMENT ’S 4 WEBSITE AS IMPLEMENT ING OR PARTICIPATING IN AN APPROVED PAINT 5 STEWARDSHIP PROGRAM. 6 (F) A POSTCONSUMER PAINT C OLLECTION SITE THAT IS IDENTIFIED IN THE 7 PLAN MAY NOT CHARGE AN ADDITIONAL FEE FO R THE DISPOSAL OF PA INT WHEN IT 8 IS OFFERED FOR DISPO SAL. 9 (G) A PRODUCER OR REPRESEN TATIVE ORGANIZATION THAT ORGANIZES 10 THE COLLECTION , TRANSPORT, AND PROCESSING OF PO STCONSUMER PAINT IN 11 ACCORDANCE WITH AN A PPROVED PAINT STEWARDSHIP PROGRAM SHALL BE 12 IMMUNE FROM LIABILIT Y FOR ANY CLAIM OF A VIOLATION OF ANTITRU ST, 13 RESTRAINT OF TRADE , OR UNFAIR TRADE PRAC TICE ARISING FROM CO NDUCT 14 UNDERTAKEN IN ACCORD ANCE WITH THE PROGRAM. 15 (H) (1) BEGINNING APRIL 1, 2024, AND ANNUALLY THEREAF TER, THE 16 PRODUCER OR REPRESEN TATIVE ORGANIZATION SHALL SUBMIT A REPOR T TO THE 17 DEPARTMENT THAT DETAILS THE PAINT STEWARDSHIP PROGRAM, INCLUDING: 18 (I) A DESCRIPTION OF THE M ETHODS USED TO COLLE CT, 19 TRANSPORT, AND PROCESS POSTCONS UMER PAINT IN THE STATE; 20 (II) THE VOLUME OF POSTCON SUMER PAINT COLLECTE D IN 21 THE STATE; 22 (III) THE VOLUME AND TYPE OF POSTCONSUMER PAIN T 23 COLLECTED IN THE STATE BY METHOD OF DI SPOSITION, INCLUDING REUSE , 24 RECYCLING, AND OTHER METHODS OF PROCESSING OR DISPOS AL, THAT INCLUDES 25 AN ACCOUNTING OF THE VOLUME OF POSTCONSUM ER PAINT COLLECTED I N THE 26 STATE FOR EACH COUNTY IN THE STATE; 27 (IV) THE TOTAL COST OF IMP LEMENTING AND ADMINI STERING 28 THE PROGRAM, AS DETERMINED BY AN INDEPENDENT FINANCIA L AUDIT FUNDED 29 BY THE PAINT STEWARD SHIP ASSESSMENT ; AND 30 (V) SAMPLES OF EDUCATIONA L MATERIALS USED TO INFORM 31 CONSUMERS OF ARCHITE CTURAL PAINT. 32 (2) THE PRODUCER OR REPRE SENTATIVE ORGANIZATI ON THAT 33 SUBMITS A REPORT REQ UIRED UNDER THIS SEC TION SHALL PAY A REP ORT REVIEW 34 FEE TO THE DEPARTMENT TO BE DEPO SITED IN THE STATE RECYCLING TRUST 35 HOUSE BILL 18 11 FUND UNDER § 9–1707 OF THIS SUBTITLE THA T COVERS THE DEPARTMENT’S COST 1 OF REPORT REVIEW , INCLUDING ASSOCIATED COSTS FOR PROGRAM COMPLIANCE 2 OVERSIGHT, AS DETERMINED BY THE DEPARTMENT . 3 (I) (1) THE DEPARTMENT SHALL REVI EW THE ANNUAL REPORT 4 REQUIRED UNDER SUBSE CTION (H) OF THIS SECTION AND : 5 (I) EVALUATE THE TOTAL COSTS OF THE PAINT STEWARDSHIP 6 PROGRAM, INCLUDING ALL EXPENS ES AND REVENUES , TO DETERMINE WHETHER 7 THE PAINT STEWARDSHI P ASSESSMENT MEETS O R EXCEEDS THE COSTS OF THE 8 PROGRAM IN ACCORDANCE WITH SUBSECTION (A)(5) OF THIS SECTION; AND 9 (II) DETERMINE WHETHER THE PLAN IS BEING IMPLEMENTED 10 IN ACCORDANCE WITH S UBSECTION (A) OF THIS SECTION. 11 (2) IF THE DEPARTMENT DETERMINES THAT THE PAINT 12 STEWARDSHIP ANNUAL R EPORT, INCLUDING THE PAINT STEWARDSHIP 13 ASSESSMENT , COMPLIES WITH THE RE QUIREMENTS OF SUBSEC TION (A) OF THIS 14 SECTION, THE DEPARTMENT SHALL APPR OVE THE ANNUAL REPOR T. 15 (3) THE PRODUCER OR REPRE SENTATIVE ORGANIZATI ON SHALL 16 MAKE THE APPROVED AN NUAL REPORT AVAILABL E TO THE PUBLIC. 17 (J) (1) FINANCIAL, PRODUCTION , OR SALES DATA REPORT ED TO THE 18 DEPARTMENT BY A PRODUCER OR THE REPRESENTATIVE ORGAN IZATION SHALL BE 19 KEPT CONFIDENTIAL BY THE DEPARTMENT AND MAY NO T BE SUBJECT TO PUBL IC 20 INSPECTION. 21 (2) THE DEPARTMENT MAY RELEAS E SUMMARY DATA THAT DOES 22 NOT DISCLOSE FINANCI AL, PRODUCTION , OR SALES DATA OF A P RODUCER, 23 RETAILER, OR REPRESENTATIVE OR GANIZATION. 24 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 25 1, 2022. 26