Creates provisions relating to a post-consumer paint recycling program

SECOND REGULAR SESSION HOUSE BILL NO. 2162 103RD GENERAL ASSEMBL Y INTRODUCED BY REPRESENT A TIVE DOLAN. 5517H.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) Addre ss adequate r ecordkeeping, 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" or "paint prod uct", ar chitectural paint and additional pr oducts as 29 defined in an appr oved prog ram plan. "Paint" or "paint pr oduct" shall not include 30 industrial or original equipment coatings; 31 (10) "Paint assessment fee", cost added per container of paint by pro ducers. 32 Such cost shall cover the cost to operate and sustain the progra m authorized under this 33 section and shall be verified by an independent financial auditor; 34 (1 1) "Post-consumer paint", arch itectural paint not used and no longer wanted 35 by a pur chaser; 36 (12) "Pr oducer", a manufactur er of ar chitectural paint that sells, offers for sale, 37 or distributes the archi tectural paint in this state under the pr oducer's own name or 38 brand. "Pr oducer" does not include a r etailer who sells, offers for sale, or distributes 39 within or into the state ar chitectural paint manufactur ed or trademarked by a person 40 other than the ret ailer; 41 (13) "Pro gram", the post-consumer paint collection pro gram established under 42 this section; 43 (14) "Recycling", the separation and r euse or rem anufactur e of materials that 44 might otherwise be disposed of as solid waste; 45 (15) "Repr esentative organization", a nonpr ofit organization established by 46 pr oducers to implement the pro gram; 47 (16) "Retailer", a person who offers archi tectural paint or other allied pr oducts 48 for sale at r etail in this state. 49 2. Pr oducers of arch itectural paint sold at ret ail in this state may establish or 50 join a repr esentative organization. The duties under this section shall be met by the 51 r epresent ative organization on behalf of all its member pr oducers. Any pr oducer who is 52 not a member of a repr esentative organization shall meet the duties under this section 53 separately . 54 3. (1) A rep res entative organization or a prod ucer of arc hitectural paint sold at 55 r etail in this state that is not a member of such repr esentative organization shall develop HB 2162 2 56 and submit to the dir ector for the dir ector's appr oval a plan for the establishment of a 57 post-consumer paint collection prog ram. Additional paint pr oducts may be pro posed in 58 a subsequent prog ram plan in consultation with the department. The prog ram shall be 59 structur ed to: 60 (a) Reduce the generation of post-consumer paint; 61 (b) Pr omote the reu se and recyc ling of post-consumer paint; 62 (c) Manage the post-consumer paint waste str eam using envir onmentally sound 63 management practices; and 64 (d) Limit the department's r ole to oversight activities that include appr oving the 65 pr ogram plan and r eviewing the annual r eport. 66 (2) The plan submitted under this section shall: 67 (a) Pr ovide a list of participating prod ucers and brands covered by the prog ram; 68 (b) Pr ovide information on the archi tectural paint pr oducts cover ed under the 69 pr ogram, such as interior or exterior water - and oil-based coatings, primers, sealers, or 70 wood coatings; 71 (c) Describe how the pr ogram will pr ovide for convenient and cost-effective 72 statewide collection of post-consumer paint in this state. The pr oducers or 7 3 r epresent ative organization may coordinate the pr ogram with existing household 74 hazardous waste collection infrastructur e as is mutually agreeab le. A paint reta iler 75 shall be authorized by the pr oducers or r epresent ative organization as a paint collection 76 site only if the paint ret ailer voluntarily agrees to act as such and complies with all 77 applicable laws and r egulations and the r etail location is consistent with the 7 8 maintenance of a cost-effective network of paint collection locations; 79 (d) Establish a goal for the number and geographic distribution of sites for 80 collection of post-consumer paint based on the following criteria: 81 a. At least ninety per cent of Missouri r esidents shall have a collection site within 82 a fifteen-mile radius, and one site shall be established for every fifty thousand res idents 83 of the state unless otherwise appr oved by the director; or 84 b. If the pro gram is unable to meet the requ irem ents of this subsection, a 85 collection event or other department-appro ved collection service shall be scheduled on a 86 periodic basis to serve such res idents; 87 (e) Describe how post-consumer paint will be managed in the most 8 8 envir onmentally and economically sound manner using the following strategies in the 89 following order: reu se, recycl ing, energy reco very , and disposal; 90 (f) Describe education and outreach efforts to inform consumers about the 91 pr ogram. Such efforts shall include, but not be limited to: 92 a. Information about collection opportunities for post-consumer paint; HB 2162 3 93 b. Information about the charge for the operation of the pro gram that shall be 94 included in the pur chase price of all architect ural paint sold in this state; and 95 c. Efforts to pr omote the sour ce r eduction, reu se, and recy cling of ar chitectural 96 paint; 97 (g) Establish a per -container cost to be added to arch itectural paint sold in this 98 state as a r esult of the prog ram. This per -container cost, known as the paint assessment 99 fee, shall be reviewed by an independent financial auditor to ensur e that any added cost 100 to paint sold in this state as a res ult of the pr ogram does not exceed the costs to operate 101 and sustain the pr ogram in accordance with sound management practices; and 102 (h) Describe how the pr ogram will compensate service provi ders for activities 103 conducted under the progr am that may include: 104 a. The collection of post-consumer ar chitectural paint and archi tectural paint 105 containers thr ough permanent collection sites, collection events, or curbside services; 106 b. The r euse or pr ocessing of post-consumer ar chitectural paint at a permanent 107 collection site; and 108 c. The transportation, r ecycling, and pr oper disposal of post-consumer 10 9 ar chitectural paint. 110 (3) The independent financial auditor r equir ed under paragraph (g) of 111 subdivision (2) of this subsection shall be selected by the rep res entative organization 112 after consultation with the department. The independent financial auditor shall verify 113 that the cost added to each unit of paint will cover the costs of the pr ogram. The 114 department shall r eview the work prod uct of the independent financial auditor . The 115 cost of any work performed by such independent financial auditor shall be funded by 116 the paint assessment fees authorized by the pro gram. 117 (4) Each manufactur er under the plan shall include in the price of any 118 ar chitectural paint sold to ret ailers or distributors in the state the per -container amount 119 of the fee set forth in the plan or fee adjustment. If a repr esentative organization 120 implements the plan for a manufactur er , the manufactur er shall be re sponsible for 121 filing, repor ting, and rem itting any fee assessed under this section for each container of 122 ar chitectural paint to the r epresent ative organization. A r etailer or distributor shall not 123 deduct the amount of the fee fro m the pur chase price of any archi tectural paint the 124 r etailer or distributor sells. 125 (5) No later than sixty days after the submission of a plan under this section, the 126 dir ector shall make a written determination of whether to appr ove the plan as 127 submitted or disappr ove the plan. If the dir ector finds the plan does not meet the 128 r equir ements of this section, the dir ector shall provi de a written explanation of the 129 nonconforming items. W ithin sixty days following r eceipt of the director's written HB 2162 4 130 explanation of items that do not meet the requ irem ents of this section, the r epresent ative 131 organization or the pr oducer of ar chitectural paint shall submit a revised plan to the 132 dir ector for appr oval. 133 (6) The department shall enfor ce the pr oducer's or the r epr esentative 13 4 organization's compliance with the plan and may , by regul ation or by using existing 135 r egulations pr omulgated under sections 260.230, 260.240, and 260.249, establish 136 enfor cement pro cedur es and penalties. 137 (7) No later than the implementation date of the pr ogram, information 138 r egarding the appr oved plan, the names of participating pr oducers, and the brands of 139 ar chitectural paint cover ed by the prog ram shall be posted on the department's website 140 and on the website of the repr esentative organization. 141 (8) The plan requi red under this subsection shall be submitted to the department 142 not later than twelve months after the effective date of this section. The department 143 may , for good cause shown, grant an extension of the deadline for submission. 144 (9) Nothing in this section shall be construed to requi re the department to 145 develop the plan or establish the pr ogram authorized under this section. Such 146 r equir ement shall be the sole r esponsibility of the pr oducers or r epresen tative 147 organization. 148 (10) Nothing in this section shall req uire a ret ailer to track, file, repor t, submit, 149 or rem it a fee assessed under this section, sales data, or any other information on behalf 150 of a manufactur er , distributor , or r epresent ative organization. Nothing in this section 151 shall pr ohibit a manufactur er and a re tailer fr om entering into rem itter agreements . 152 4. (1) The department shall establish an administrative fee to be paid by each 153 pr oducer or rep rese ntative organization submitting a plan under this section. The 154 department shall set the fee at an amount that, when paid by every pr oducer or 155 r epr esentative organization that submits a plan, is adequate to re imburse the 15 6 department's full costs of administering this section. The total amount of annual fees 157 collected under this subdivision shall not exceed the amount necessary to reim burse 158 costs incurr ed by the department to administer this section. The department may 159 consider relev ant factors when establishing the fee including, but not limited to, the 160 portion of archi tectural paint sold in the state by the prod ucer or the members of the 161 r epresent ative organization compared to the total amount of ar chitectural paint sold in 162 the state by all pr oducers or re present ative organizations submitting a plan. 163 (2) Each prod ucer or repr esentative organization implementing a plan under 164 this section shall pay the administrative fee req uired in subdivision (1) of this subsection 165 on or before July 1, 2027, and annually ther eafter . Each year after the initial payment, 166 the annual administrative fee shall not exceed five percen t of the aggr egate pr ogram fee HB 2162 5 167 added to the cost of all archi tectural paint sold by pr oducers in the state for the 168 pr eceding calendar year . The department may extend the time for payment upon good 169 cause shown. 170 5. Upon implementation of the pro gram, each pr oducer shall include in the price 171 of any ar chitectural paint sold to r etailers and distributors in this state the per -container 172 amount, known as the paint assessment fee, in the appr oved plan. No r etailer or 173 distributor shall deduct such amount fr om the purch ase price. 174 6. Retailers may incorporate the fee as part of the price amount displayed to 175 consumers of arch itectural pr oducts. Retailers shall not be req uire d to incorporate the 176 fee as part of the price amount displayed to consumers for archi tectural pr oducts, 177 pr ovided that the ret ailers make information about the fee available to consumers of 178 ar chitectural paint prod ucts prior to pur chase. 179 7. (1) After the pr ogram is implemented, no prod ucer or r etailer shall sell or 180 offer for sale arch itectural paint to any person in this state unless the prod ucer of a 181 paint brand or a r epresent ative organization is implementing or participating in the 182 pr ogram as req uired by this section. 183 (2) A reta iler shall be deemed to be in compliance with this section if, on the date 184 the archi tectural paint was offered for sale, the pr oducer is listed on the department's 185 website as implementing or participating in the prog ram or if the paint brand is listed 186 on the department's website as being included in the pr ogram. 187 (3) A paint collection site authorized under this section shall not charge any 188 additional amount for the disposal of paint when the paint is offer ed for disposal. 189 (4) A producer or the repr esentative organization that organizes the collection, 190 transport, and pr ocessing of post-consumer paint in accordance with the pr ogram shall 191 not be liable for any claim of a violation of antitrust, res traint of trade, unfair trade 192 practice, or other anticompetitive activity arising fr om conduct undertaken in 19 3 accordance with the pr ogram under this section. 194 (5) Before Mar ch thirty-first of each year , the pr oducers or repr esentative 195 organization shall submit an annual r eport for the pr evious year to the dir ector that 196 details the progra m. The first repo rt shall be submitted after the first full year of 197 implementation. The dir ector may , for good cause shown, extend the deadline for filing 198 the rep ort. The re port or information relat ing to the repo rt shall be posted on the 199 department's website and on the website of the r epresent ative organization. The report 200 shall contain at least the following: 201 (a) A description of the methods used to collect, transport, and pr ocess post- 202 consumer paint in this state; HB 2162 6 203 (b) The volume and type of post-consumer paint collected by method of 204 disposition, containing information about reu se, re cycling, other methods of pr ocessing, 205 and any other r elated and appr opriate information; 206 (c) Samples of educational materials pro vided to consumers of ar chitectural 207 paint; 208 (d) The total cost of the progr am; and 209 (e) An independent financial audit completed by an individual financial auditor 210 chosen by the prod ucers or the rep res entative organization. 211 (6) Financial, pr oduction, or sales data rep orted to the department by a 212 pr oducer or by the repr esentative organization shall not be subject to disclosur e, but the 213 dir ector may relea se a summary form of such data that does not disclose financial, 214 pr oduction, or sales data of the pr oducer , ret ailer , or r epresent ative organization. 215 (7) The prod ucers or the repr esentative organization shall implement the 216 pr ogram re quir ed under this section on January 1, 2028, or six months after the 217 appr oval of the plan under this section, whichever occurs later . 218 8. (1) Generators of household wastes and conditionally exempt small quantity 219 generators may transport or send architect ural paints to a paint collection site to the 220 extent permitted by a pr ogram appr oved by the direc tor . 221 (2) Paint collection sites may collect and temporarily store ar chitectural paints 222 generated by entities specified in subdivision (1) of this subsection in accordance with 223 the req uirements of the pr ogram in lieu of any otherwise applicable req uire ments of 224 state laws or reg ulations. 225 (3) Nothing in this section shall be construed to res trict the collection of 226 ar chitectural paint by a pro gram wher e such collection is authorized by any other state 227 laws or regu lations. 228 (4) Nothing in this section shall be construed to affect any r equir ements 229 applicable to facilities that tr eat, dispose, or recycl e ar chitectural paint under any other 230 state laws or reg ulations. 231 9. The director may pro mulgate all necessary rules and regul ations for the 232 administration of this section. Any rule or portion of a rule, as that term is defined in 233 section 536.010, that is crea ted under the authority delegated in this section shall 234 become effective only if it complies with and is subject to all of the provi sions of chapter 235 536 and, if applicable, section 536.028. This section and chapter 536 are nonseverable 236 and if any of the powers vested with the general assembly pursuant to chapter 536 to 237 r eview , to delay the effective date, or to disappr ove and annul a rule are subsequently HB 2162 7 238 held unconstitutional, then the grant of rulemaking authority and any rule pr oposed or 239 adopted after August 28, 2026, shall be invalid and void. ✔ HB 2162 8