SENATE BILL 143 M3 2lr0965 (PRE–FILED) CF HB 18 By: Senator West Requested: October 26, 2021 Introduced and read first time: January 12, 2022 Assigned to: Education, Health, and Environmental Affairs A BILL ENTITLED 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 Section 9–1701(a), (i), and (m) 22 Annotated Code of Maryland 23 (2014 Replacement Volume and 2021 Supplement) 24 BY adding to 25 Article – Environment 26 Section 9–1701(b–1), (i–1), (o–1) through (o–3), (r–2) through (r–4); and 9–1733 to be 27 under the new part “Part V. Paint Stewardship Program” 28 Annotated Code of Maryland 29 (2014 Replacement Volume and 2021 Supplement) 30 2 SENATE BILL 143 BY repealing and reenacting, with amendments, 1 Article – Environment 2 Section 9–1701(i–1), 9–1702, and 9–1707(f) 3 Annotated Code of Maryland 4 (2014 Replacement Volume and 2021 Supplement) 5 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6 That the Laws of Maryland read as follows: 7 Article – Environment 8 9–1701. 9 (a) In this subtitle the following words have the meanings indicated. 10 (B–1) (1) “ARCHITECTURAL PAINT ” MEANS INTERIOR AND EXTERIOR 11 ARCHITECTURAL COATIN GS SOLD IN CONTAINER S OF 5 GALLONS OR LESS . 12 (2) “ARCHITECTURAL PAINT ” DOES NOT INCLUDE IND USTRIAL 13 COATINGS, ORIGINAL EQUIPMENT C OATINGS, OR SPECIALTY COATING S. 14 (i) “Director” means the Director of the Office of Recycling. 15 (I–1) “DISTRIBUTOR” MEANS A COMPANY THAT HAS A CONTRACTUAL 16 RELATIONSHIP WITH ON E OR MORE PRODUCERS TO MARKET AND SELL 17 ARCHITECTURAL PAINT TO RETAILERS IN THE STATE. 18 [(i–1)] (I–2) “Food residuals” means material derived from the processing or 19 discarding of food, including pre– and post–consumer vegetables, fruits, grains, dairy 20 products, and meats. 21 (m) “Office” means the Office of Recycling within the Department. 22 (O–1) “PAINT STEWARDSHIP ASS ESSMENT” MEANS THE AMOUNT ADD ED TO 23 THE PURCHASE PRICE O F ARCHITECTURAL PAINT SOL D IN THE STATE THAT IS 24 NECESSARY TO COVER T HE PAINT STEWARDSHIP PROGRAM’S COST OF 25 COLLECTING, TRANSPORTING , AND PROCESSING POSTC ONSUMER PAINT 26 STATEWIDE. 27 (O–2) “POSTCONSUMER PAINT ” MEANS ARCHITECTURAL PAINT NOT USED 28 AND NO LONGER WANTE D BY A PURCHASER . 29 (O–3) “PRODUCER” MEANS A MANUFACTURER OF ARCHITECTURAL PAI NT 30 THAT SELLS, OFFERS FOR SALE , OR DISTRIBUTES THE P AINT IN THE STATE UNDER 31 THE PRODUCER ’S OWN NAME OR BRAND . 32 SENATE BILL 143 3 (R–2) “REPRESENTATIVE ORGANI ZATION” MEANS A NONPROFIT 1 ORGANIZATION CREATED BY PRODUCERS TO IMPLEMENT A PAINT STEWARDSHIP 2 PROGRAM. 3 (R–3) “RETAILER” MEANS ANY PERSON THA T OFFERS ARCHITECTUR AL PAINT 4 FOR SALE AT RETAIL I N THE STATE. 5 (R–4) “SALE” OR “SELL” MEANS ANY TRANSFER O F TITLE FOR 6 CONSIDERATION , INCLUDING REMOTE SA LES CONDUCTED THROUG H SALES 7 OUTLETS, CATALOGUES , THE INTERNET, OR ANY OTHER SIMILAR ELECTRONIC 8 MEANS. 9 9–1702. 10 (a) There is an Office of Recycling created within the Department. 11 (b) The Secretary shall appoint a Director and sufficient staff to perform the 12 functions of the Office. After July 1, 1989, the number of staff shall be as provided in the 13 budget. 14 (c) The Secretary may adopt regulations to carry out the provisions of this 15 subtitle. 16 (d) The Office shall: 17 (1) Assist the counties in developing an acceptable recycling plan required 18 under § 9–1703 of this subtitle and § 9–505 of this title, including technical assistance to 19 the local governments; 20 (2) Coordinate the efforts of the State to facilitate the implementation of 21 the recycling goals at the county level; 22 (3) Review all recycling plans submitted as part of a county plan as 23 required under § 9–505 of this title and advise the Secretary on the adequacy of the 24 recycling plan; 25 (4) Administer the Statewide Electronics Recycling Program under Part IV 26 of this subtitle; [and] 27 (5) Promote the development of markets for recycled materials and 28 recycled products in the State in accordance with § 9–1702.1 of this subtitle; AND 29 (6) REVIEW AND APPROVE PL ANS AND ANNUAL REPOR TS, INCLUDING 30 THE PAINT STEWARDSHI P ASSESSMENT, SUBMITTED IN ACCORDA NCE WITH A PAINT 31 STEWARDSHIP PROGRAM ESTABLISHED U NDER PART V OF THIS SUBTITLE . 32 4 SENATE BILL 143 (e) Beginning on January 1, 1990, and biannually thereafter, the Office shall, in 1 coordination with the Maryland Environmental Service, study and report to the Governor 2 and, subject to § 2–1257 of the State Government Article, the General Assembly on: 3 (1) The identification and location of recycling centers, including an 4 analysis of existing recycling centers and the need to expand these facilities or construct 5 new recycling centers; 6 (2) Programs necessary to educate the public on the need to participate in 7 recycling efforts; 8 (3) The economics and financing of existing and proposed systems of waste 9 disposal and recycling; 10 (4) State procurement policies for the purchase of recycled materials; 11 (5) Programs necessary to reduce the amount of solid waste generated for 12 disposal by a State agency or unit; 13 (6) The liaison role with local governments, the federal government, and 14 the private sector; 15 (7) The percentage reduction in the amount of solid waste that has been 16 achieved by each county; and 17 (8) Economically feasible methods for the recycling of scrap automobile 18 tires, batteries, and white goods. 19 (f) (1) By December 1, 1988, the Office shall, in coordination with the 20 Maryland Environmental Service and the Governor’s Task Force on Solid Waste, make 21 recommendations to the General Assembly for the financing of a comprehensive system of 22 recycling at the State and local level, including funding for recycling centers, recycling 23 equipment, recycling education, and marketing strategies. 24 (2) After the financing recommendations are made under paragraph (1) of 25 this subsection, each county may submit to the Office and the Governor a detailed request 26 for funds necessary to assist in the development and implementation of a recycling plan 27 under guidelines developed by the Office. 28 (g) In studying feasible methods for the management and recycling of used tires 29 under subsection (e)(9) of this section, the Office of Recycling shall consult with the 30 appropriate industry, including representatives of: 31 (1) Tire manufacturers; 32 (2) Tire dealers; and 33 SENATE BILL 143 5 (3) Tire recyclers. 1 9–1707. 2 (f) (1) There is a State Recycling Trust Fund. 3 (2) The Fund shall consist of: 4 (i) The newsprint recycling incentive fee; 5 (ii) The telephone directory recycling incentive fee collected under § 6 9–1709 of this subtitle; 7 (iii) The covered electronic device manufacturer registration fee 8 collected under § 9–1728 of this subtitle; 9 (IV) THE PAINT STEWARDSHIP PROGRAM PLAN AND ANNU AL 10 REPORT REVIEW FEES C OLLECTED UNDER § 9–1733(B) AND (H) OF THIS SUBTITLE; 11 [(iv)] (V) All fines and penalties collected under this subtitle; 12 [(v)] (VI) Money appropriated in the State budget to the Fund; and 13 [(vi)] (VII) Any other money from any other source accepted for the 14 benefit of the Fund. 15 (3) The Secretary shall administer the Fund. 16 (4) The Treasurer shall hold the Fund separately and the Comptroller shall 17 account for the Fund. 18 (5) At the end of each fiscal year, any unspent or unencumbered balance in 19 the Fund that exceeds $2,000,000 shall revert to the General Fund of the State in 20 accordance with § 7–302 of the State Finance and Procurement Article. 21 (6) In accordance with the State budget, the Fund shall be used only: 22 (i) To provide grants to the counties to be used by the counties to 23 develop and implement local recycling plans; 24 (ii) To provide grants to counties that have addressed methods for 25 the separate collection and recycling of covered electronic devices in accordance with § 26 9–1703(c)(1) of this subtitle; 27 6 SENATE BILL 143 (iii) To provide grants to municipalities to be used by the 1 municipalities to implement local covered electronic device recycling programs; [and] 2 (IV) TO COVER THE COSTS OF THE PAINT STEWARDSHIP 3 PROGRAM PLAN REVIEW U NDER § 9–1733(B) OF THIS SUBTITLE , THE ANNUAL 4 REPORT REVIEW UNDER § 9–1733(H) OF THIS SUBTITLE , AND ASSOCIATED COSTS 5 FOR PROGRAM COMPLIANCE OV ERSIGHT; AND 6 [(iv)] (V) To carry out the purposes of the land management 7 administration. 8 (7) (i) The Treasurer shall invest the money in the Fund in the same 9 manner as other State money may be invested. 10 (ii) Any investment earnings of the Fund shall be credited to the 11 General Fund of the State. 12 9–1731. RESERVED. 13 9–1732. RESERVED. 14 PART V. PAINT STEWARDSHIP PROGRAM. 15 9–1733. 16 (A) (1) ON OR BEF ORE JANUARY 1, 2023, PRODUCERS OF 17 ARCHITECTURAL PAINT SOLD AT RETAIL IN TH E STATE, OR A REPRESENTATIVE 18 ORGANIZATION ACTING ON A PRODUCER ’S BEHALF, SHALL SUBMIT A PLAN FOR THE 19 ESTABLISHMENT OF A PAINT STEWARDSHIP PROGRAM TO THE DEPARTMENT FOR 20 APPROVAL. 21 (2) THE PLAN SHALL MINIMI ZE PUBLIC SECTOR INV OLVEMENT IN , 22 AND FINANCIAL RESPON SIBILITY FOR, THE MANAGEMENT OF PO STCONSUMER 23 PAINT BY: 24 (I) REDUCING ITS GENERATI ON; 25 (II) PROMOTING ITS REUSE A ND RECYCLING ; AND 26 (III) NEGOTIATING AND EXECU TING AGREEMENTS TO COLLEC T, 27 TRANSPORT, REUSE, RECYCLE, PROCESS FOR RESOURCE RECOVERY, AND DISPOSE 28 OF POSTCONSUMER PAIN T. 29 (3) THE PLAN SHALL PROVID E FOR CONVENIENT AND AVAILABLE 30 STATEWIDE COLLECTION OF POSTCONSUMER PAIN T THAT: 31 SENATE BILL 143 7 (I) PROVIDES FOR COLLECTI ON RATES AND CONVENIENC E 1 EQUAL TO OR GREATER THAN THE COLLECTION PROGRAMS AVAILABLE T O 2 CONSUMERS PRIOR TO T HE PAINT STEWARDSHIP PROGRAM; 3 (II) IDENTIFIES EACH PRODU CER PARTICIPATING IN THE 4 PAINT STEWARDSHIP PROGRAM AND THE BRAND S OF ARCHITECTURAL P AINT SOLD 5 IN THE STATE THAT ARE COVERE D BY THE PROGRAM; 6 (III) DESCRIBES HOW THE PAINT STEWARDSHIP PROGRAM MAY 7 BE IMPLEMENTED IN CO ORDINATION WITH EXIS TING HOUSEHOLD HAZAR DOUS 8 WASTE COLLECTION INF RASTRUCTURE IN A MAN NER THAT IS MUTUALLY 9 AGREEABLE; AND 10 (IV) PROVIDES GEOGRAPHIC M ODELING TO DETERMINE THE 11 NUMBER AND DISTRIBUT ION OF SITES FOR COL LECTION OF POSTCONSU MER PAINT 12 BASED ON THE FOLLOWI NG CRITERIA: 13 1. AT LEAST 90% OF THE RESIDENTS OF THE STATE 14 SHALL HAVE A COLLECT ION SITE WITHIN A 15–MILE RADIUS; AND 15 2. UNLESS OTHERWISE APPR OVED BY THE 16 DEPARTMENT , ONE ADDITIONAL COLLE CTION SITE SHALL BE ESTABLISHED FOR 17 EVERY 50,000 RESIDENTS OF A GEOGR APHICAL AREA DESIGNA TED UNDER FEDERAL 18 LAW AS AN URBANIZED AREA. 19 (4) THE PLAN MAY IDENTIFY A RETAILER AS A POS TCONSUMER PAINT 20 COLLECTION SITE IF : 21 (I) THE RETAILER VOLUNTEE RS TO ACT AS A POSTC ONSUMER 22 PAINT COLLECTION SIT E; 23 (II) THE RETAILER IS IN CO MPLIANCE WITH ALL AP PLICABLE 24 LAWS AND REGULATIONS ; AND 25 (III) THE SITE LOCATION OF THE RETAILER IS CONSISTENT WITH 26 MAINTAINING A COST –EFFECTIVE NETWORK OF POSTCONSUMER PAINT 27 COLLECTION LOCATIONS . 28 (5) THE PLAN SHALL ESTABL ISH: 29 (I) A UNIFORM PAINT STEWAR DSHIP ASSESSMENT FOR ALL 30 ARCHITECTURAL PAINT SOLD IN THE STATE; AND 31 8 SENATE BILL 143 (II) A MECHANISM FOR PAINT PRODUCERS PART ICIPATING IN A 1 PAINT STEWARDSHIP PROGRAM TO REMIT TO T HE REPRESENTATIVE 2 ORGANIZATION PAYMENT OF THE PAINT STEWARD SHIP ASSESSMENT FOR EACH 3 CONTAINER OF ARCHITE CTURAL PAINT SOLD IN THE STATE. 4 (6) THE TOTAL AMOUNT OF T HE PAINT STEWARDSH IP ASSESSMENT 5 MAY NOT EXCEED THE C OSTS OF IMPLEMENTING THE PAINT STEWARDSHIP 6 PROGRAM. 7 (7) (I) THE PAINT STEWARDSHIP ASSESSMENT SHALL BE 8 EVALUATED BY AN INDE PENDENT FINANCIAL AU DITOR, AS DESIGNATED BY THE 9 DEPARTMENT , TO ENSURE THE COSTS OF IMPLEMENTING T HE PAINT 10 STEWARDSHIP PROGRAM ARE COVERED B UT NOT EXCEEDED . 11 (II) THE COST OF ANY WORK PERFORMED BY AN INDE PENDENT 12 FINANCIAL AUDITOR SH ALL BE FUNDED BY THE PROGRAM. 13 (8) PAINT STEWARDSHIP ASS ESSMENTS MAY BE USED ONLY TO 14 IMPLEMENT THE PAINT STEWARDSHIP PROGRAM. 15 (B) (1) THE DEPARTMENT SHALL REVI EW: 16 (I) THE PAINT STEWARDSHIP PROGRAM PLAN REQUIRED 17 UNDER SUBSECTION (A) OF THIS SECTION; AND 18 (II) THE WORK PRODUCT OF T HE INDEPENDENT FINAN CIAL 19 AUDITOR DESIGNATED B Y THE DEPARTMENT TO EVALUAT E PAINT STEWARDSHIP 20 ASSESSMENTS . 21 (2) THE PRODUCER OR REPRE SENTATIVE ORGANIZATI ON THAT 22 SUBMITS A PLAN FOR A PPROVAL SHALL PAY A PLAN REVIEW FEE TO T HE 23 DEPARTMENT TO BE DEPO SITED IN THE STATE RECYCLING TRUST FUND UNDER § 24 9–1707 OF THIS SUBTITLE THA T COVERS THE DEPARTMENT’S COST OF PLAN 25 REVIEW, INCLUDING ASSOCIATED COSTS FOR PROGRAM COMPLIANCE OV ERSIGHT, 26 AS DETERMINED BY THE DEPARTMENT . 27 (3) IF THE DEPARTMENT DETERMINES THAT THE PAINT 28 STEWARDSHIP PROGRAM PLAN , INCLUDING THE PAINT STEWARDSHIP 29 ASSESSMENT , COMPLIES WIT H THE REQUIREMENTS O F SUBSECTION (A) OF THIS 30 SECTION, THE DEPARTMENT SHALL APPR OVE THE PROGRAM. 31 (4) THE DEPARTMENT SHALL LIST ON ITS WEBSITE THE P RODUCERS 32 AND BRANDS IMPLEMENT ING OR PARTICIPATING IN AN APPROVED PAINT 33 STEWARDSHIP PROGRAM. 34 SENATE BILL 143 9 (C) (1) A PRODUCER OR REPRESEN TATIVE ORGANIZATION SHALL 1 IMPLEMENT ITS PAINT STEWARDSHIP PROGRAM PLAN WITHIN 6 MONTHS AFTER 2 THE PLAN’S APPROVAL BY THE DEPARTMENT . 3 (2) BEGINNING OCTOBER 1, 2023, OR 6 MONTHS AFTER PLAN 4 APPROVAL, WHICHEVER IS LATER : 5 (I) A PRODUCER OR RETAILER MAY NOT SELL OR OFFE R FOR 6 SALE A BRAND OF ARCH ITECTURAL PAINT TO A NY PERSON IN THE STATE, UNLESS 7 THE PRODUCER OF THE BRAND OR A REPRESENT ATIVE ORGANIZATION O F WHICH 8 THE PRODUCER IS A ME MBER IS IMPLEMENTING AN APPROVED PAINT 9 STEWARDSHIP PROGRAM; 10 (II) A PRODUCER SHALL ADD T HE PAINT STEWARDSHIP 11 ASSESSMENT ESTABLISH ED UNDER AN APPROVED PAINT STEWARDSHIP PROGRAM 12 TO THE COST OF ALL A RCHITECTURAL PAINT S OLD TO RETAILERS AND 13 DISTRIBUTED IN THE STATE; AND 14 (III) EACH RETAILER OR DIST RIBUTOR SHALL ADD A PAINT 15 STEWARDSHIP ASSESSME NT TO THE PURCHASE P RICE OF ALL ARCHITEC TURAL 16 PAINT SOLD IN THE STATE. 17 (D) A PRODUCER OR REPRESEN TATIVE ORGANIZATION PARTICIPATING IN 18 AN APPROVED PAINT STEWARDSHIP PROGRAM SHALL PROVIDE CONSUMERS WITH 19 EDUCATIONAL MATERIALS REGARDING THE PROGRAM THAT INCLUDE : 20 (1) INFORMATION REGARDING AVAILABLE END –OF–LIFE 21 MANAGEMENT OPTIONS F OR ARCHITECTURAL PAI NT OFFERED THROUGH T HE 22 PROGRAM; AND 23 (2) INFORMATION THAT NOTI FIES CONSUMERS THAT AN 24 ASSESSMENT TO COVER THE COSTS OF IMPLEMENTING THE PROGRAM IS INCLUDED 25 IN THE PURCHASE PRIC E OF ALL ARCHITECTUR AL PAINT SOLD IN THE STATE. 26 (E) FOLLOWING THE IMPLEME NTATION OF THE PAINT STEWARDSHIP 27 PROGRAM, A RETAILER COMPLIES WITH THE REQUIREMENT S OF THIS SECTION IF, 28 ON THE DATE THE ARC HITECTURAL PAINT WAS ORDERED FROM THE PRO DUCER OR 29 ITS AGENT, THE PRODUCER OF THE PAINT BRAND IS LISTE D ON THE DEPARTMENT ’S 30 WEBSITE AS IMPLEMENT ING OR PARTICIPATING IN AN APPROVED PAINT 31 STEWARDSHIP PROGRAM. 32 10 SENATE BILL 143 (F) A POSTCONSUMER PAINT C OLLECTION SITE THAT IS IDENTIFIED IN THE 1 PLAN MAY NOT CHARGE AN ADDITIONAL FEE FO R THE DISPOSAL OF PA INT WHEN IT 2 IS OFFERED FOR DISPO SAL. 3 (G) A PRODUCER OR REPRESEN TATIVE ORGANIZATION THAT ORGANIZES 4 THE COLLECTION , TRANSPORT, AND PROCESSING OF PO STCONSUMER PAINT IN 5 ACCORDANCE WITH AN APPROVED PAINT STEWARDSHIP PROGRAM SHALL BE 6 IMMUNE FROM LIABILIT Y FOR ANY CLAIM OF A VIOLATION OF ANTITRU ST, 7 RESTRAINT OF TRADE , OR UNFAIR TRADE PRAC TICE ARISING FROM CO NDUCT 8 UNDERTAKEN IN ACCORD ANCE WITH THE PROGRAM. 9 (H) (1) BEGINNING APRIL 1, 2024, AND ANNUALLY THEREAF TER, THE 10 PRODUCER OR REPRESEN TATIVE ORGANIZATION SHALL SUBMIT A REPOR T TO THE 11 DEPARTMENT THAT DETAI LS THE PAINT STEWARDSHIP PROGRAM, INCLUDING: 12 (I) A DESCRIPTION OF THE M ETHODS USED TO COLLE CT, 13 TRANSPORT, AND PROCESS POSTCONS UMER PAINT IN THE STATE; 14 (II) THE VOLUME OF POSTCON SUMER PAINT COLLECTE D IN 15 THE STATE; 16 (III) THE VOLUME AND TYPE O F POSTCONSUMER PAINT 17 COLLECTED IN THE STATE BY METHOD OF DI SPOSITION, INCLUDING REUSE , 18 RECYCLING, AND OTHER METHODS OF PROCESSING OR DI SPOSAL, THAT INCLUDES 19 AN ACCOUNTING OF THE VOLUME OF POSTCONSUM ER PAINT COLLECTED I N THE 20 STATE FOR EACH COUNTY IN THE STATE; 21 (IV) THE TOTAL COST OF IMP LEMENTING AND ADMINI STERING 22 THE PROGRAM, AS DETERMINED BY AN INDEPENDENT FINANCIA L AUDIT FUNDED 23 BY THE PAINT STEWARDSHI P ASSESSMENT ; AND 24 (V) SAMPLES OF EDUCATIONA L MATERIALS USED TO INFORM 25 CONSUMERS OF ARCHITE CTURAL PAINT. 26 (2) THE PRODUCER OR REPRE SENTATIVE ORGANIZATI ON THAT 27 SUBMITS A REPORT REQ UIRED UNDER THIS SEC TION SHALL PAY A REP ORT REVIEW 28 FEE TO THE DEPARTMENT TO BE DEPO SITED IN THE STATE RECYCLING TRUST 29 FUND UNDER § 9–1707 OF THIS SUBTITLE THA T COVERS THE DEPARTMENT ’S COST 30 OF REPORT REVIEW , INCLUDING ASSOCIATED COSTS FOR PROGRAM COMPLIANCE 31 OVERSIGHT, AS DETERMINED BY THE DEPARTMENT . 32 (I) (1) THE DEPARTMENT SHALL REVI EW THE ANNUAL REPORT 33 REQUIRED UNDER SUBSE CTION (H) OF THIS SECTION AND : 34 SENATE BILL 143 11 (I) EVALUATE THE TOTAL CO STS OF THE PAINT STEWARDSHIP 1 PROGRAM, INCLUDING ALL EXPENS ES AND REVENUES , TO DETERMINE WHETHER 2 THE PAINT STEWARDSHI P ASSESSME NT MEETS OR EXCEEDS THE COSTS OF THE 3 PROGRAM IN ACCORDANCE WITH SUBSECTION (A)(5) OF THIS SECTION; AND 4 (II) DETERMINE WHETHER THE PLAN IS BEING IMPLEM ENTED 5 IN ACCORDANCE WITH S UBSECTION (A) OF THIS SECTION. 6 (2) IF THE DEPARTMENT DETERMINES THAT THE PAINT 7 STEWARDSHIP ANNUAL R EPORT, INCLUDING THE PAINT STEWARDSHIP 8 ASSESSMENT , COMPLIES WITH THE RE QUIREMENTS OF SUBSEC TION (A) OF THIS 9 SECTION, THE DEPARTMENT SHALL APPR OVE THE ANNUAL REPOR T. 10 (3) THE PRODUCER OR REPRE SENTATIVE ORGANIZATI ON SHALL 11 MAKE THE APPROVED ANNUAL REPO RT AVAILABLE TO THE PUBLIC. 12 (J) (1) FINANCIAL, PRODUCTION , OR SALES DATA REPORT ED TO THE 13 DEPARTMENT BY A PRODU CER OR THE REPRESENT ATIVE ORGANIZATION S HALL BE 14 KEPT CONFIDENTIAL BY THE DEPARTMENT AND MAY NO T BE SUBJECT TO PUBL IC 15 INSPECTION. 16 (2) THE DEPARTMENT MAY RELEAS E SUMMARY DATA THAT DOES 17 NOT DISCLOSE FINANCI AL, PRODUCTION , OR SALES DATA OF A P RODUCER, 18 RETAILER, OR REPRESENTATIVE OR GANIZATION. 19 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 20 1, 2022. 21