STATE OF NEW YORK ________________________________________________________________________ 1038 2017-2018 Regular Sessions IN ASSEMBLY January 10, 2017 ___________ Introduced by M. of A. STIRPE, LUPARDO, BRONSON, LOPEZ, THIELE, GOTT- FRIED, ROSENTHAL, FAHY, JENNE, OTIS, SKOUFIS, MOSLEY, BRINDISI, DenDEKKER, MAGNARELLI, SKARTADOS, HEVESI, BARRETT, SIMOTAS, CUSICK, SIMON, PICHARDO, WOERNER, RYAN, MOYA, GUNTHER, KIM, MAGEE, LENTOL, WEPRIN, JAFFEE, QUART, CAHILL, ABBATE, HUNTER, SANTABARBARA, M. G. MILLER, TITONE, RODRIGUEZ, STECK, SOLAGES, GALEF, CYMBROWITZ, COLTON, SIMANOWITZ, SEPULVEDA, KAVANAGH -- Multi-Sponsored by -- M. of A. BUCHWALD, KEARNS -- read once and referred to the Committee on Environmental Conservation AN ACT to amend the environmental conservation law, in relation to establishing the paint stewardship program The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Article 27 of the environmental conservation law is amended 2 by adding a new title 20 to read as follows: 3 TITLE 20 4 PAINT STEWARDSHIP PROGRAM 5 Section 27-2001. Definitions. 6 27-2003. Paint stewardship program. 7 27-2005. Regulations. 8 27-2007. Reporting. 9 § 27-2001. Definitions. 10 When used in this title: 11 1. "Architectural paint" means interior and exterior architectural 12 coatings sold in containers of five gallons or less. Architectural paint 13 does not include industrial, original equipment or specialty coatings. 14 2. "Distributor" means a person that has a contractual relationship 15 with one or more producers to market and sell architectural paint to 16 retailers or directly to consumers or end-users in the state. 17 3. "Environmentally sound management practices" means procedures for 18 the collection, storage, transportation, reuse, recycling and disposal EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD04737-01-7

A. 1038 2 1 of architectural paint, to be implemented by the producer or represen- 2 tative organization or such representative organization's contracted 3 partners to ensure compliance with all applicable federal, state and 4 local laws, regulations and ordinances and the protection of human 5 health and the environment. Environmentally sound management practices 6 include, but are not limited to, record keeping, the tracking and docu- 7 menting of the fate of post-consumer paint in and outside of the state, 8 and environmental liability coverage for professional services and for 9 the operations of the contractors working on behalf of the producer or 10 representative organization. 11 4. "Paint stewardship assessment" means the amount added to the 12 purchase price of architectural paint sold in the state that is neces- 13 sary to cover the cost of collecting, transporting and processing post- 14 consumer paint by the producer or representative organization pursuant 15 to the paint stewardship program. 16 5. "Paint stewardship program" or "program" means a program for the 17 management of post-consumer paint operated by a producer or represen- 18 tative organization. 19 6. "Post-consumer paint" means architectural paint that is not used 20 and that is no longer wanted by a purchaser of architectural paint. 21 7. "Producer" means a manufacturer of architectural paint who sells, 22 offers for sale, distributes or contracts to distribute architectural 23 paint in the state. 24 8. "Recycling" means the series of activities by which recyclables are 25 collected, sorted, processed and converted into raw materials or used in 26 the production of new products. This term excludes thermal treatment or 27 the use of waste as a fuel substitute or for energy production. 28 9. "Representative organization" means a nonprofit organization 29 created by producers to implement the paint stewardship program 30 described in section 27-2003 of this title. 31 10. "Retailer" means any person who offers architectural paint for 32 sale at retail in the state. 33 11. "Reuse" means the return of a product into the economic stream for 34 use in the same kind of application as the product was originally 35 intended to be used, without a change in the product's identity. 36 12. "Sell" or "sale" means any transfer for consideration of title or 37 the right to use, from a manufacturer or retailer to a person, includ- 38 ing, but not limited to, transactions conducted through retail sales 39 outlets, catalogs, mail, the telephone, the internet, or any electronic 40 means; this does not include samples, donations, and reuse. 41 § 27-2003. Paint stewardship program. 42 1. On or before March first, two thousand eighteen, a producer or a 43 representative organization shall submit a plan for the establishment of 44 a paint stewardship program to the department for approval. The program 45 shall minimize the public sector involvement in the management of post- 46 consumer paint by reducing the generation of post-consumer paint, nego- 47 tiating agreements to collect, transport, reuse, recycle, and/or burn 48 for energy recovery at an appropriately licensed facility post-consumer 49 paint using environmentally sound management practices. The program 50 shall minimize the public sector involvement in the management of post- 51 consumer paint by reducing the generation of post-consumer paint, nego- 52 tiating agreements to collect, transport, reuse, recycle, and/or combust 53 for energy recovery at an appropriately authorized facility, including 54 permittees, post-consumer paint using environmentally sound management 55 practices.

A. 1038 3 1 2. The program shall provide for convenient and available state-wide 2 collection of post-consumer paint that, at a minimum, provides at least 3 one permanent collection site located within a fifteen mile radius of 4 all "incorporated cities" and "census-designated places" in the state; 5 and one additional permanent collection site for every thirty thousand 6 people located in those areas, unless otherwise approved by the depart- 7 ment. Where a permanent collection site cannot be located within a 8 fifteen mile radius of an incorporated city or census-designated place, 9 the program shall provide for at least one collection event annually. 10 The program shall not charge a fee to the consumer at the time of 11 collection of post-consumer architectural paint. 12 3. The plan submitted to the department pursuant to this section 13 shall: 14 (a) identify each producer participating in the paint stewardship 15 program and the brands of architectural paint sold in the state covered 16 by the program; 17 (b) identify how the producer or representative organization will 18 provide convenient, statewide accessibility to the program; 19 (c) set forth the process by which an independent auditor will be 20 selected and identify the criteria used by the producer or represen- 21 tative organization in selecting an independent auditor; 22 (d) identify, in detail, the educational and outreach program that 23 will be implemented to inform consumers and retailers of the program and 24 how to participate; 25 (e) identify, in detail, the operational plans for interacting with 26 retailers on the proper handling and management of post-consumer paint; 27 (f) include the proposed, audited paint assessment as identified in 28 this section and the criteria upon which the assessment is based; 29 (g) include the targeted annual collection rate; 30 (h) include a description of the intended treatment, storage, trans- 31 portation and disposal options and methods for the collected post-con- 32 sumer paint; and 33 (i) be accompanied by a fee in the amount of five thousand dollars for 34 each producer, or ten thousand dollars for each product stewardship 35 organization to be deposited into the environmental regulatory account 36 as established in section 72-1009 of this chapter, to cover the review 37 of said plan by the department. 38 4. The commissioner shall approve or reject a plan submitted under 39 this section within ninety days of submission and, if rejected, inform 40 the producer or representative organization in writing as to any defi- 41 ciencies in said plan. A producer or representative organization shall 42 amend and resubmit any rejected plans for reconsideration within sixty 43 days of notification of the rejection of said plan. The commissioner 44 shall approve or reject said plan within thirty days of resubmission. A 45 plan shall be approved by the commissioner if it meets the required 46 elements under subdivision three of this section. 47 5. Not later than three months after the date the plan is approved, 48 the representative organization shall implement the paint stewardship 49 program. 50 6. On or before March first, two thousand eighteen, the proposed 51 uniform paint stewardship assessment for all architectural paint sold in 52 the state shall be reviewed by an independent auditor to assure that the 53 assessment is consistent with the budget of the paint stewardship 54 program described in this section and the independent auditor shall 55 recommend an amount for the paint stewardship assessment to the depart- 56 ment. The department shall approve the paint stewardship assessment

A. 1038 4 1 based upon the independent auditor's recommendation. The department 2 shall be responsible for the approval of such paint stewardship assess- 3 ment based upon the independent auditor's recommendation. If the paint 4 stewardship assessment previously approved by the department pursuant to 5 this section is proposed to be changed, the producer or representative 6 organization shall submit the new, adjusted uniform paint stewardship 7 assessment to an independent auditor for review. After such review has 8 been completed, the producer or representative organization shall submit 9 the results of said auditor's review and a proposal to amend the paint 10 stewardship assessment to the department for review. The department 11 shall review and approve, in writing, the adjusted paint stewardship 12 assessment before the new assessment can be implemented. Any proposed 13 changes to the paint stewardship assessment shall be submitted to the 14 department no later than sixty days prior to the date the producer or 15 representative organization anticipates the adjusted assessment to take 16 effect. 17 7. On and after the date of implementation of the paint stewardship 18 program pursuant to this section, the paint stewardship assessment shall 19 be added to the cost of all architectural paint sold to retailers and 20 distributors in the state by each producer. On and after such implemen- 21 tation date, each retailer or distributor, as applicable, shall add the 22 amount of such paint stewardship assessment to the purchase price of all 23 architectural paint sold in the state. 24 8. Any retailer may participate, on a voluntary basis, as a paint 25 collection point pursuant to such paint stewardship program and in 26 accordance with any applicable provision of law or regulation. 27 9. Each producer and the representative organization shall be immune 28 from liability for any claim of a violation of antitrust law or unfair 29 trade practice if such conduct is a violation of antitrust law, to the 30 extent such producer or representative organization is exercising 31 authority pursuant to the provisions of this section. 32 10. Not later than the implementation date of the paint stewardship 33 program, the department shall list the names of participating producers 34 and the brands of architectural paint covered by such paint stewardship 35 program on its website. 36 11. (a) On and after the implementation date of the paint stewardship 37 program, no producer, distributor or retailer shall sell or offer for 38 sale architectural paint to any person in the state if the producer of 39 such architectural paint is not a member of the representative organiza- 40 tion. 41 (b) No retailer or distributor shall be found to be in violation of 42 the provisions of this section if, on the date the architectural paint 43 was ordered from the producer or its agent, the producer or the subject 44 brand of architectural paint was listed on the department's website in 45 accordance with the provisions of this section. 46 (c) Notwithstanding any other provision of law, a retailer carrying 47 out duties or responsibilities imposed by this title shall incur no 48 civil liability or penalty of any sort unless it is determined by a 49 court of competent jurisdiction that such retailer has acted in a gross- 50 ly negligent manner in the transport or storage of paint and/or altering 51 the contents of a returned paint container. 52 12. Producers or the representative organization shall provide retail- 53 ers with educational materials regarding the paint stewardship assess- 54 ment and paint stewardship program to be distributed at the point of 55 sale to the consumer. Such materials shall include, but not be limited 56 to, information regarding available end-of-life management options for

A. 1038 5 1 architectural paint offered through the paint stewardship program and 2 information that notifies consumers that a charge for the operation of 3 such paint stewardship program is included in the purchase price of all 4 architectural paint sold in the state. 5 13. On or before October fifteenth, two thousand nineteen, and annual- 6 ly thereafter, each operator of a program shall submit a report to the 7 commissioner that details the paint stewardship program for the prior 8 year's program from July first to June thirtieth. Said report shall 9 include a copy of the independent audit detailed in paragraph (d) of 10 this subdivision. Such annual report shall include: 11 (a) a detailed description of the methods used to collect, transport 12 and process post-consumer paint in the state including detailing 13 collection methods made available to consumers and an evaluation of the 14 program's collection convenience; 15 (b) the overall volume of post-consumer paint collected in the state; 16 (c) the volume and type of post-consumer paint collected in the state 17 by method of disposition, including reuse, recycling and other methods 18 of processing or disposal; 19 (d) the total cost of implementing the program, as determined by an 20 independent financial audit, as performed by an independent auditor; 21 (e) an evaluation of the adequacy of the program's funding mechanism; 22 (f) samples of all educational materials provided to consumers of 23 architectural paint and retailers; 24 (g) a detailed list of efforts undertaken and an evaluation of the 25 methods used to disseminate such materials including recommendations, if 26 any, for how the educational component of the program can be improved; 27 and 28 (h) the annual report shall be accompanied by a fee in the amount of 29 three thousand dollars to be deposited into the environmental regulatory 30 account, established pursuant to section 72-1009 of this chapter to 31 cover the review of said plan by the department. 32 14. The representative organization shall update the plan, as needed, 33 when there are changes proposed to the current program. A new plan or 34 amendment will be required to be submitted to the department for 35 approval when: 36 (a) there is a change to the amount of the assessment; or 37 (b) there is an addition to the products covered under the program; or 38 (c) there is a revision of the product stewardship organization's 39 goals; or 40 (d) every four years, if requested, in writing, by the department. 41 The operator of the paint stewardship program shall notify the depart- 42 ment annually, in writing, if there are no changes proposed to the 43 program and the producer or representative organization intends to 44 continue implementation of the program as previously approved by the 45 department. 46 § 27-2005. Regulations. 47 The department is hereby authorized to promulgate rules and regu- 48 lations as may be necessary to implement and carry out the provisions of 49 this title. 50 § 27-2007. Reporting. 51 Not later than January fifteenth, two thousand twenty, and biennially 52 thereafter, the commissioner shall submit a report to the legislature 53 and the governor that describes the results and activities of the paint 54 stewardship program as enacted pursuant to this title including any 55 recommendations to improve the functioning and efficiency of the paint 56 stewardship program, as necessary.

A. 1038 6 1 § 2. The environmental conservation law is amended by adding a new 2 section 71-2730 to read as follows: 3 § 71-2730. Enforcement of title 20 of article 27 of this chapter. 4 1. Civil penalties under this section shall be assessed by the commis- 5 sioner after a hearing or opportunity to be heard pursuant to the 6 provisions of section 71-1709 of this article, or shall be assessed by 7 the court in any action or proceeding pursuant to this section. In addi- 8 tion to any civil penalties, any retailer or producer, as those terms 9 are defined in section 27-2001 of this chapter, may by similar process 10 be enjoined from continuing such violation. 11 2. All penalties collected pursuant to this section shall be paid over 12 to the commissioner for deposit to the environmental protection fund 13 established pursuant to section ninety-two-s of the state finance law. 14 § 3. This act shall take effect immediately.