Chief Sponsor: Don L. Ipson

Senate Sponsor: ____________


8     General Description:
9          This bill provides for the creation of a statewide paint stewardship program.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     directs the Division of Waste Management and Radiation Control (DWMRC),
14     within the Department of Environmental Quality, to administer the Paint
15     Stewardship Act;
16          ▸     requires a producer of architectural paint or a paint stewardship organization to
17     prepare and present for approval to DWMRC a plan for a statewide paint
18     stewardship program (program);
19          ▸     describes the program, including certain requirements for producers, distributors,
20     and retailers of architectural paint offered for sale within Utah;
21          ▸     prohibits a producer, distributor, or retailer of architectural paint from offering for
22     sale or selling architectural paint in Utah unless the producer, distributor, or retailer
23     participates in the program;
24          ▸     requires producers, distributors, and retailers of architectural paint to add a paint
25     stewardship assessment to the cost of architectural paint to fund the program;
26          ▸     requires the stewardship organization that DWMRC approves to organize and
27     administer the program and report to DWMRC; and

28          ▸     limits the liability of certain participants in the program.
29     Money Appropriated in this Bill:
30          None
31     Other Special Clauses:
32          None
33     Utah Code Sections Affected:
34     AMENDS:
35          19-1-105, as last amended by Laws of Utah 2015, Chapter 451
36     ENACTS:
37          19-6-1301, Utah Code Annotated 1953
38          19-6-1302, Utah Code Annotated 1953
39          19-6-1303, Utah Code Annotated 1953
40          19-6-1304, Utah Code Annotated 1953
41          19-6-1305, Utah Code Annotated 1953
42          19-6-1306, Utah Code Annotated 1953
43          19-6-1307, Utah Code Annotated 1953

45     Be it enacted by the Legislature of the state of Utah:
46          Section 1. Section 19-1-105 is amended to read:
47          19-1-105. Divisions of department -- Control by division directors.
48          (1) The following divisions are created within the department:
49          (a) the Division of Air Quality, to administer Title 19, Chapter 2, Air Conservation
50     Act;
51          (b) the Division of Drinking Water, to administer Title 19, Chapter 4, Safe Drinking
52     Water Act;
53          (c) the Division of Environmental Response and Remediation, to administer:
54          (i) Title 19, Chapter 6, Part 3, Hazardous Substances Mitigation Act; and
55          (ii) Title 19, Chapter 6, Part 4, Underground Storage Tank Act;
56          (d) the Division of Waste Management and Radiation Control, to administer:
57          (i) Title 19, Chapter 3, Radiation Control Act;
58          (ii) Title 19, Chapter 6, Part 1, Solid and Hazardous Waste Act;

59          (iii) Title 19, Chapter 6, Part 2, Hazardous Waste Facility Siting Act;
60          (iv) Title 19, Chapter 6, Part 5, Solid Waste Management Act;
61          (v) Title 19, Chapter 6, Part 6, Lead Acid Battery Disposal;
62          (vi) Title 19, Chapter 6, Part 7, Used Oil Management Act;
63          (vii) Title 19, Chapter 6, Part 8, Waste Tire Recycling Act;
64          (viii) Title 19, Chapter 6, Part 10, Mercury Switch Removal Act;
65          (ix) Title 19, Chapter 6, Part 11, Industrial Byproduct Reuse; [and]
66          (x) Title 19, Chapter 6, Part 12, Disposal of Electronic Waste Program; and
67          (xi) Title 19, Chapter 6, Part 13, Paint Stewardship Act; and
68          (e) the Division of Water Quality, to administer Title 19, Chapter 5, Water Quality Act.
69          (2) Each division is under the immediate direction and control of a division director
70     appointed by the executive director.
71          (3) (a) A division director shall possess the administrative skills and training necessary
72     to perform the duties of division director.
73          (b) A division director shall hold one of the following degrees from an accredited
74     college or university:
75          (i) a four-year degree in physical or biological science or engineering;
76          (ii) a related degree; or
77          (iii) a degree in law.
78          (4) The executive director may remove a division director at will.
79          (5) A division director shall serve as the executive secretary to the policymaking board,
80     created in Section 19-1-106, that has rulemaking authority over the division director's division.
81          Section 2. Section 19-6-1301 is enacted to read:
Part 13. Paint Stewardship Act

83          19-6-1301. Title.
84          This part is known as the "Paint Stewardship Act."
85          Section 3. Section 19-6-1302 is enacted to read:
86          19-6-1302. Definitions.
87          As used in this part:
88          (1) "Administering stewardship organization" means the stewardship organization that
89     the division approves to administer the program under Section 19-6-1303.

90          (2) "Architectural paint" means an interior or exterior architectural coating that is:
91          (a) sold in a container of five gallons or less; and
92          (b) not an industrial, equipment, or specialty coating.
93          (3) "Director" means the director of the division.
94          (4) "Distributor" means a company that has a contractual relationship with one or more
95     producers to market and sell architectural paint to retailers in Utah.
96          (5) "Division" means the Division of Waste Management and Radiation Control,
97     created in Section 19-1-105.
98          (6) "Energy recovery" means recovery in which all or a part of the solid waste materials
99     of architectural paint is processed in order to use the heat content or other forms of energy from
100     the solid waste materials.
101          (7) "Environmentally sound management practices" means policies implemented by a
102     producer or a stewardship organization, in accordance with Subsection 19-6-1305(4).
103          (8) "Paint stewardship assessment" means the amount, established under Section
104     19-6-1304, that is:
105          (a) added to the purchase price of architectural paint sold in Utah; and
106          (b) necessary to cover the cost of collecting, transporting, and processing
107     post-consumer architectural paint managed through the program.
108          (9) "Post-consumer paint" means architectural paint not used and no longer wanted by
109     the purchaser of the architectural paint.
110          (10) "Producer" means a manufacturer of architectural paint that sells, offers for sale,
111     or distributes the paint in Utah under the producer's own name or brand.
112          (11) "Program" means the statewide architectural paint stewardship program described
113     in this part.
114          (12) (a) "Recycling" means any process by which discarded products, components, and
115     by-products are transformed into new usable or marketable materials in a manner by which the
116     original products may lose their original composition.
117          (b) "Recycling" does not include energy recovery or energy generation by means of
118     combusting discarded products, components, or by-products of architectural paint or other
119     waste products.
120          (13) "Retailer" means any person in Utah that sells or offers for sale, at retail,

121     architectural paint.
122          (14) "Reuse" means the return of a product into the economic stream for use in the
123     same kind of application as originally intended for the product, without a change in the
124     product's original composition.
125          (15) "Sell" or "sale" means any transfer of ownership for consideration, including
126     remote sales conducted through sales outlets, catalogues, the Internet, or similar electronic
127     means.
128          (16) "Stewardship organization" means a corporation, nonprofit organization, or other
129     legal entity, created by a producer or group of producers to implement the program described in
130     this part.
131          Section 4. Section 19-6-1303 is enacted to read:
132          19-6-1303. Paint stewardship program.
133          (1) On or before April 1, 2017, a producer or a stewardship organization shall submit
134     to the director for approval a plan for the establishment of a statewide architectural paint
135     stewardship program.
136          (2) The division shall ensure that the plan described in Subsection (1):
137          (a) provides for convenient and available statewide collection of post-consumer
138     architectural paint in rural and urban areas;
139          (b) identifies each producer participating in the program and the brands of architectural
140     paint sold by each producer in Utah;
141          (c) provides for collection rates and convenience equal to or greater than the collection
142     programs available to consumers before the program's implementation;
143          (d) addresses the reasonably feasible and mutually agreeable coordination of the
144     program with the existing household hazardous waste collection infrastructure;
145          (e) includes a funding mechanism for the program where:
146          (i) each producer, distributor, and retailer participating in the program collects a paint
147     stewardship assessment, described in Section 19-6-1304, for each container of architectural
148     paint the producer, distributor, or retailer sells in Utah; and
149          (ii) each producer participating in the program remits to the administering stewardship
150     organization the funds collected under Subsection (2)(e)(i); and
151          (f) minimizes public sector involvement in the management of post-consumer

152     architectural paint by:
153          (i) reducing the generation of post-consumer architectural paint;
154          (ii) promoting the reuse and recycling of post-consumer architectural paint; and
155          (iii) negotiating and executing agreements to collect, transport, reuse, recycle, burn for
156     energy recovery, and dispose of post-consumer architectural paint using environmentally sound
157     management practices.
158          (3) The division shall list on the division's website the producers described in
159     Subsection (2)(b), including the producers' brands in accordance with Section 19-6-1305.
160          Section 5. Section 19-6-1304 is enacted to read:
161          19-6-1304. Paint stewardship assessment.
162          (1) (a) The administering stewardship organization shall establish a uniform paint
163     stewardship assessment for all architectural paint sold in Utah, subject to approval by the
164     division, in accordance with Section 63J-1-504.
165          (b) The division shall ensure that the paint stewardship assessment established under
166     Subsection (1)(a) is sufficient to recover, but not exceed, the costs of the program.
167          (2) (a) A producer that participates in the program shall remit all funds collected under
168     Subsection (2)(b) to the administering stewardship organization.
169          (b) A producer that participates in the program shall add the paint stewardship
170     assessment, described in Subsection (1), to the cost of all architectural paint sold to retailers
171     and distributors in Utah.
172          (c) A retailer or distributor:
173          (i) shall add the paint stewardship assessment, described in Subsection (1), to the
174     purchase price of all architectural paint sold in Utah; and
175          (ii) may not:
176          (A) describe the paint stewardship assessment as a recycling fee at the point of retail;
177     or
178          (B) charge a fee to the consumer at the point of collection of post-consumer
179     architectural paint.
180          (3) The administering stewardship organization shall:
181          (a) use the funds remitted under Subsection (2)(a) to administer the program; and
182          (b) remit to the division any excess funds not used to administer the program under

183     Subsection (3)(a).
184          Section 6. Section 19-6-1305 is enacted to read:
185          19-6-1305. Paint stewardship program -- Participation.
186          (1) Beginning no later than three months after the plan is approved under Section
187     19-6-1303, the administering stewardship organization shall:
188          (a) implement the program; and
189          (b) minimize public sector involvement in the management of post-consumer
190     architectural paint, in accordance with Subsection 19-6-1303(2)(f).
191          (2) (a) Beginning on the day on which the administering stewardship organization
192     approved by the division implements the program, a producer, distributor, or retailer may not
193     sell or offer for sale architectural paint to any person in Utah, unless the producer of the offered
194     architectural paint or paint brand participates in the program.
195          (b) A retailer is in compliance with Subsection (2)(a) if, on the date the retailer orders
196     the architectural paint from the producer or the producer's agent, the division lists on the
197     division's website, as described in Subsection 19-6-1303(3), the producer, along with the
198     producer's product brand that the retailer orders, as participating in the program.
199          (3) At the time of a sale of architectural paint to a consumer, a producer or retailer shall
200     provide the consumer with information on the paint stewardship assessment and the program,
201     including:
202          (a) information regarding available end-of-product-life management options for
203     architectural paint offered through the paint stewardship program;
204          (b) information promoting waste prevention, reuse, and recycling; and
205          (c) a notification to the consumer that funding for the operation of the program is
206     included in the purchase price of all architectural paint sold in Utah.
207          (4) A producer or stewardship organization participating in the program shall
208     implement environmentally sound management practices for the collection, storage,
209     transportation, reuse, recycling, and disposal of architectural paint:
210          (a) that ensure:
211          (i) compliance with all applicable federal, state, and local laws, regulations, and
212     ordinances; and
213          (ii) the protection of human health and the environment; and

214          (b) including:
215          (i) adequate record keeping, tracking, and documenting of the disposition of materials
216     processed under the program; and
217          (ii) adequate environmental liability coverage for:
218          (A) professional services; and
219          (B) the operations of the contractors working on behalf of the producer.
220          Section 7. Section 19-6-1306 is enacted to read:
221          19-6-1306. Stewardship organization report.
222          (1) On or before October 15, 2017, and on or before October 15 of each subsequent
223     year, the administering stewardship organization that the division approves to implement the
224     program shall submit a report to the director that details the program, including:
225          (a) a description of the methods used to collect, transport, and process post-consumer
226     paint in Utah;
227          (b) the volume, and type, of post-consumer paint collected in Utah, in sum, and
228     categorized by method of disposition, including reuse, recycling, and other methods;
229          (c) an independent financial audit of the program, funded from the paint stewardship
230     assessment;
231          (d) a description of program costs;
232          (e) an evaluation of the program's funding mechanism;
233          (f) (i) samples of educational materials and information provided to consumers of
234     architectural paint, in accordance with Subsection 19-6-1305(3);
235          (ii) an evaluation of the methods used to disseminate consumer educational materials
236     and information; and
237          (iii) an assessment of the effectiveness of consumer education and outreach, including
238     levels of waste prevention and reuse; and
239          (g) an analysis of the environmental costs and benefits of collecting and recycling
240     architectural paint.
241          (2) The director may release a summary form of the data reported to the division under
242     this section, if the summary does not disclose financial, production, or sales data of a producer,
243     retailer, or stewardship organization.
244          Section 8. Section 19-6-1307 is enacted to read:

245          19-6-1307. Producer and stewardship organization immunity.
246          A producer participating in the program and the administering stewardship organization
247     are immune from liability for any claim, under state law, of a violation of antitrust, restraint of
248     trade, or unfair trade practice arising from conduct undertaken in accordance with the program.

Legislative Review Note
Office of Legislative Research and General Counsel