Creates provisions relating to a post-consumer paint recycling program

FIRST REGULAR SESSION HOUSE BILL NO. 1216 103RD GENERAL ASSEMBL Y INTRODUCED BY REPRESENT A TIVE DOLAN. 2721H.01I JOSEPH ENGLER, Chief Clerk AN ACT T o amend chapter 701, RSMo, by adding thereto one new section relating to paint recycling. Be it enacted by the General Assembly of the state of Missouri, as follows: Section A. Chapter 701, RSMo, is amended by adding thereto one new section, to be 2 known as section 701.151, to read as follows: 701.151. 1. As used in this section, the following terms mean: 2 (1) "Administrative fee", a fee set by the department to reim burse the 3 department for administering this section and paid by each producer or r epresent ative 4 organization submitting a plan under this section; 5 (2) "Ar chitectural paint", interior and exterior ar chitectural coatings sold in 6 containers of five gallons or less. "Ar chitectural paint" shall not be construed to include 7 industrial, original equipment, or specialty coatings; 8 (3) "Collection site", any location, event, or other department-appro ved 9 collection service at which arch itectural paint is accepted into a post-consumer paint 10 collection pro gram under a post-consumer paint collection pr ogram plan; 11 (4) "Conditionally exempt small quantity generator", the meaning ascribed to 12 "very small generator" under 40 CFR 262.14; 13 (5) "Department", the department of natural res ource s; 14 (6) "Dir ector", the dir ector of the department of natural r esources , or the 15 dir ector's designee; 16 (7) "Envir onmentally sound management practices", pro cedure s for the 17 collection, storage, transportation, reuse, rec ycling, energy recovery , and disposal of 18 ar chitectural paint that shall: EXPLANA TION — Matter enclosed in bold-faced brackets [thus] in the above bill is not enacted and is intended to be omitted from the law . Matter in bold-face type in the above bill is proposed language. 19 (a) Be implemented by pr oducers or a rep res entative organization or by 20 contracted partners of the pro ducers or a repr esentative organization to ensur e 21 compliance with all applicable federal, state, and local laws and any regu lations and 22 ordinances for the protecti on of human health and the envir onment; 23 (b) Addr ess adequate record keeping, tracking, and documenting of the final 24 disposition of materials; and 25 (c) Addr ess appr opriate envir onmental liability coverage for the repr esentative 26 organization; 27 (8) "Household waste", the same definition as in 10 CSR 80.2-010; 28 (9) "Paint assessment fee", cost added per container of paint by pro ducers. 29 Such cost shall cover the cost to operate and sustain the progra m authorized under this 30 section and shall be verified by an independent financial auditor; 31 (10) "Post-consumer paint", arch itectural paint not used and no longer wanted 32 by a pur chaser; 33 (1 1) "Pr oducer", a manufactur er of arch itectural paint that sells, offers for sale, 34 or distributes the archi tectural paint in this state under the pr oducer's own name or 35 brand. "Pr oducer" does not include a r etailer who sells, offers for sale, or distributes 36 within or into the state ar chitectural paint manufactur ed or trademarked by a person 37 other than the ret ailer; 38 (12) "Pro gram", the post-consumer paint collection pro gram established under 39 this section; 40 (13) "Recycling", the separation and r euse or rem anufactur e of materials that 41 might otherwise be disposed of as solid waste; 42 (14) "Repr esentative organization", a nonpr ofit organization established by 43 pr oducers to implement the pro gram; 44 (15) "Retailer", a person who offers archi tectural paint or other allied pr oducts 45 for sale at r etail in this state. 46 2. Pr oducers of arch itectural paint sold at ret ail in this state may establish or 47 join a repr esentative organization. The duties under this section shall be met by the 48 r epresent ative organization on behalf of all its member pr oducers. Any pr oducer who is 49 not a member of a repr esentative organization shall meet the duties under this section 50 separately . 51 3. (1) A rep res entative organization or a prod ucer of arc hitectural paint sold at 52 r etail in this state that is not a member of such repr esentative organization shall develop 53 and submit to the dir ector for the dir ector's appr oval a plan for the establishment of a 54 post-consumer paint collection pr ogram. The pro gram shall be structured to: 55 (a) Reduce the generation of post-consumer paint; HB 1216 2 56 (b) Pr omote the reu se and recyc ling of post-consumer paint; 57 (c) Manage the post-consumer paint waste str eam using envir onmentally sound 58 management practices; and 59 (d) Limit the department's r ole to oversight activities that include appr oving the 60 pr ogram plan and r eviewing the annual r eport. 61 (2) The plan submitted under this section shall: 62 (a) Pr ovide a list of participating prod ucers and brands covered by the prog ram; 63 (b) Pr ovide information on the archi tectural paint pr oducts cover ed under the 64 pr ogram, such as interior or exterior water - and oil-based coatings, primers, sealers, or 65 wood coatings; 66 (c) Describe how the pr ogram will pr ovide for convenient and cost-effective 67 statewide collection of post-consumer paint in this state. The pr oducers or 6 8 r epresent ative organization may coordinate the pr ogram with existing household 69 hazardous waste collection infrastructur e as is mutually agreeab le. A paint reta iler 70 shall be authorized by the pr oducers or r epresent ative organization as a paint collection 71 site only if the paint ret ailer voluntarily agrees to act as such and complies with all 72 applicable laws and r egulations and the r etail location is consistent with the 7 3 maintenance of a cost-effective network of paint collection locations; 74 (d) Establish a goal for the number and geographic distribution of sites for 75 collection of post-consumer paint based on the following criteria: 76 a. At least ninety per cent of Missouri r esidents shall have a collection site within 77 a fifteen-mile radius and one site shall be established for every fifty thousand res idents 78 of the state unless otherwise appr oved by the director; or 79 b. If the pro gram is unable to meet the requ irem ents of this subsection, a 80 collection event or other department-appro ved collection service shall be scheduled on a 81 periodic basis to serve such res idents; 82 (e) Describe how post-consumer paint will be managed in the most 8 3 envir onmentally and economically sound manner using the following strategies in the 84 following order: reu se, recycl ing, energy reco very , and disposal; 85 (f) Describe education and outreach efforts to inform consumers about the 86 pr ogram. Such efforts shall include, but not be limited to: 87 a. Information about collection opportunities for post-consumer paint; 88 b. Information about the charge for the operation of the pro gram that shall be 89 included in the pur chase price of all architect ural paint sold in this state; and 90 c. Efforts to pr omote the sour ce r eduction, reu se, and recy cling of ar chitectural 91 paint; HB 1216 3 92 (g) Establish a per -container cost to be added to arch itectural paint sold in this 93 state as a r esult of the prog ram. This per -container cost, known as the paint assessment 94 fee, shall be reviewed by an independent financial auditor to ensur e that any added cost 95 to paint sold in this state as a res ult of the pr ogram does not exceed the costs to operate 96 and sustain the pr ogram in accordance with sound management practices; and 97 (h) Describe how the pr ogram will compensate service provi ders for activities 98 conducted under the progr am that may include: 99 a. The collection of post-consumer ar chitectural paint and archi tectural paint 100 containers thr ough permanent collection sites, collection events, or curbside services; 101 b. The r euse or pr ocessing of post-consumer ar chitectural paint at a permanent 102 collection site; and 103 c. The transportation, r ecycling, and pr oper disposal of post-consumer 10 4 ar chitectural paint. 105 (3) The independent financial auditor r equir ed under paragraph (g) of 106 subdivision (2) of this subsection shall be selected by the rep res entative organization 107 after consultation with the department. The independent financial auditor shall verify 108 that the cost added to each unit of paint will cover the costs of the pr ogram. The 109 department shall r eview the work prod uct of the independent financial auditor . The 110 cost of any work performed by such independent financial auditor shall be funded by 111 the paint assessment fees authorized by the pro gram. 112 (4) Each manufactur er under the plan shall include in the price of any 113 ar chitectural paint sold to ret ailers or distributors in the state the per -container amount 114 of the fee set forth in the plan or fee adjustment. If a repr esentative organization 115 implements the plan for a manufactur er , the manufactur er shall be re sponsible for 116 filing, repor ting, and rem itting any fee assessed under this section for each container of 117 ar chitectural paint to the r epresent ative organization. A r etailer or distributor shall not 118 deduct the amount of the fee fro m the pur chase price of any archi tectural paint the 119 r etailer or distributor sells. 120 (5) No later than sixty days after the submission of a plan under this section, the 121 dir ector shall make a written determination of whether to appr ove the plan as 122 submitted or disappr ove the plan. If the dir ector finds the plan does not meet the 123 r equir ements of this section, the dir ector shall provi de a written explanation of the 124 nonconforming items. W ithin sixty days following r eceipt of the director's written 125 explanation of items that do not meet the requ irem ents of this section, the r epresent ative 126 organization or the pr oducer of ar chitectural paint shall submit a revised plan to the 127 dir ector for appr oval. HB 1216 4 128 (6) The department shall enfor ce the pr oducer's or the r epr esentative 12 9 organization's compliance with the plan and may , by regul ation or by using existing 130 r egulations pr omulgated under sections 260.230, 260.240, and 260.249, establish 131 enfor cement pro cedur es and penalties. 132 (7) No later than the implementation date of the pr ogram, information 133 r egarding the appr oved plan, the names of participating pr oducers, and the brands of 134 ar chitectural paint cover ed by the prog ram shall be posted on the department's website 135 and on the website of the repr esentative organization. 136 (8) The plan requi red under this subsection shall be submitted to the department 137 not later than twelve months after the effective date of this section. The department 138 may , for good cause shown, grant an extension of the deadline for submission. 139 (9) Nothing in this section shall be construed to requi re the department to 140 develop the plan or establish the pr ogram authorized under this section. Such 141 r equir ement shall be the sole r esponsibility of the pr oducers or r epresen tative 142 organization. 143 (10) Nothing in this section shall req uire a ret ailer to track, file, repor t, submit, 144 or rem it a fee assessed under this section, sales data, or any other information on behalf 145 of a manufactur er , distributor , or r epresent ative organization. Nothing in this section 146 shall pr ohibit a manufactur er and a re tailer fr om entering into rem itter agreements . 147 4. (1) The department shall establish an administrative fee to be paid by each 148 pr oducer or rep rese ntative organization submitting a plan under this section. The 149 department shall set the fee at an amount that, when paid by every pr oducer or 150 r epr esentative organization that submits a plan, is adequate to re imburse the 15 1 department's full costs of administering this section. The total amount of annual fees 152 collected under this subdivision shall not exceed the amount necessary to reim burse 153 costs incurr ed by the department to administer this section. The department may 154 consider relev ant factors when establishing the fee including, but not limited to, the 155 portion of archi tectural paint sold in the state by the prod ucer or the members of the 156 r epresent ative organization compared to the total amount of ar chitectural paint sold in 157 the state by all pr oducers or re present ative organizations submitting a plan. 158 (2) Each prod ucer or repr esentative organization implementing a plan under 159 this section shall pay the administrative fee req uired in subdivision (1) of this subsection 160 on or before July 1, 2026, and annually ther eafter . Each year after the initial payment, 161 the annual administrative fee shall not exceed five percen t of the aggr egate pr ogram fee 162 added to the cost of all archi tectural paint sold by pr oducers in the state for the 163 pr eceding calendar year . The department may extend the time for payment upon good 164 cause shown. HB 1216 5 165 5. Upon implementation of the pro gram, each pr oducer shall include in the price 166 of any ar chitectural paint sold to r etailers and distributors in this state the per -container 167 amount, known as the paint assessment fee, in the appr oved plan. No r etailer or 168 distributor shall deduct such amount fr om the purch ase price. 169 6. Retailers may incorporate the fee as part of the price amount displayed to 170 consumers of arch itectural pr oducts. Retailers shall not be req uire d to incorporate the 171 fee as part of the price amount displayed to consumers for archi tectural pr oducts, 172 pr ovided that the ret ailers make information about the fee available to consumers of 173 ar chitectural paint prod ucts prior to pur chase. 174 7. (1) After the pr ogram is implemented, no prod ucer or r etailer shall sell or 175 offer for sale arch itectural paint to any person in this state unless the prod ucer of a 176 paint brand or a r epresent ative organization is implementing or participating in the 177 pr ogram as req uired by this section. 178 (2) A reta iler shall be deemed to be in compliance with this section if, on the date 179 the archi tectural paint was offered for sale, the pr oducer is listed on the department's 180 website as implementing or participating in the prog ram or if the paint brand is listed 181 on the department's website as being included in the pr ogram. 182 (3) A paint collection site authorized under this section shall not charge any 183 additional amount for the disposal of paint when the paint is offer ed for disposal. 184 (4) A producer or the repr esentative organization that organizes the collection, 185 transport, and pr ocessing of post-consumer paint in accordance with the pr ogram shall 186 not be liable for any claim of a violation of antitrust, res traint of trade, unfair trade 187 practice, or other anticompetitive activity arising fr om conduct undertaken in 18 8 accordance with the pr ogram under this section. 189 (5) Before Mar ch thirty-first of each year , the pr oducers or repr esentative 190 organization shall submit an annual r eport for the pr evious year to the dir ector that 191 details the progra m. The first repo rt shall be submitted after the first full year of 192 implementation. The dir ector may , for good cause shown, extend the deadline for filing 193 the rep ort. The re port or information relat ing to the repo rt shall be posted on the 194 department's website and on the website of the r epresent ative organization. The report 195 shall contain at least the following: 196 (a) A description of the methods used to collect, transport, and pr ocess post- 197 consumer paint in this state; 198 (b) The volume and type of post-consumer paint collected by method of 199 disposition, containing information about reu se, re cycling, other methods of pr ocessing, 200 and any other r elated and appr opriate information; HB 1216 6 201 (c) Samples of educational materials pro vided to consumers of ar chitectural 202 paint; 203 (d) The total cost of the progr am; and 204 (e) An independent financial audit completed by an individual financial auditor 205 chosen by the prod ucers or the rep res entative organization. 206 (6) Financial, pr oduction, or sales data rep orted to the department by a 207 pr oducer or by the repr esentative organization shall not be subject to disclosur e, but the 208 dir ector may relea se a summary form of such data that does not disclose financial, 209 pr oduction, or sales data of the pr oducer , ret ailer , or r epresent ative organization. 210 (7) The prod ucers or the repr esentative organization shall implement the 211 pr ogram re quir ed under this section on January 1, 2027, or six months after the 212 appr oval of the plan under this section, whichever occurs later . 213 8. (1) Generators of household wastes and conditionally exempt small quantity 214 generators may transport or send architect ural paints to a paint collection site to the 215 extent permitted by a pr ogram appr oved by the direc tor . 216 (2) Paint collection sites may collect and temporarily store ar chitectural paints 217 generated by entities specified in subdivision (1) of this subsection in accordance with 218 the req uirements of the pr ogram in lieu of any otherwise applicable req uire ments of 219 state laws or reg ulations. 220 (3) Nothing in this section shall be construed to res trict the collection of 221 ar chitectural paint by a pro gram wher e such collection is authorized by any other state 222 laws or regu lations. 223 (4) Nothing in this section shall be construed to affect any r equir ements 224 applicable to facilities that tr eat, dispose, or recycl e ar chitectural paint under any other 225 state laws or reg ulations. 226 9. The director may pro mulgate all necessary rules and regul ations for the 227 administration of this section. Any rule or portion of a rule, as that term is defined in 228 section 536.010, that is crea ted under the authority delegated in this section shall 229 become effective only if it complies with and is subject to all of the provi sions of chapter 230 536 and, if applicable, section 536.028. This section and chapter 536 are nonseverable 231 and if any of the powers vested with the general assembly pursuant to chapter 536 to 232 r eview , to delay the effective date, or to disappr ove and annul a rule are subsequently 233 held unconstitutional, then the grant of rulemaking authority and any rule pr oposed or 234 adopted after August 28, 2025, shall be invalid and void. ✔ HB 1216 7