HB 1504-FN - AS INTRODUCED

 

 

2024 SESSION

24-2720

08/10

 

HOUSE BILL 1504-FN

 

AN ACT relative to architectural paint recycling.

 

SPONSORS: Rep. Parshall, Ches. 8; Rep. Dutzy, Hills. 6

 

COMMITTEE: Environment and Agriculture

 

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ANALYSIS

 

This bill establishes an architectural paint recycling program administered by the department of environmental services.

 

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

24-2720

08/10

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty Four

 

AN ACT relative to architectural paint recycling.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  New Subdivision; Architectural Paint Recycling Program.  Amend RSA 149-M by inserting after section 63 the following new subdivision:

Architectural Paint Recycling Program

149-M:64 Architectural Paint Collection Program.

I.(a) Each manufacturer of architectural paint sold in New Hampshire shall, individually or through a representative organization, establish and maintain a collection and stewardship program for the disposal of post consumer architectural paint.  The department of environmental services shall review and approve such program.  For the purpose of this section, "manufacturer" means the holder of the brand name of the architectural paint.

(b) The stewardship program shall include the following:

(1) Description of end-of-life management process, involving collection, transport, recycle, and processing of post-consumer paint.

(2) Contact information for all persons responsible for the program;

(3) A list of paint brands and producers covered under the program;

(4) Goals for reduction of post-consumer paint.

(5) A list of all collection sites and processors, both existing and potential.

(6) A method and time frame in which to ensure coverage of at least 90 percent of New Hampshire residents shall have a permanent collection site within 25-mile radius).

(7)  A description of ways the program will coordinate with existing solid-waste collection programs and time frame in which to ensure this is complete.

(8) A budget and proposed funding mechanism.

(9) Add an assessment to purchase price of all architectural paint sold.

(10) Conduct education and outreach materials. Provide assistance and education to contractors, retailers, residents, and municipalities to encourage the return of architectural paint to established recycling collection points.

II. The program shall be operational 6 months after the effective date of this section.

III.(a) Each manufacturer, individually or as a group, shall propose to the department for review and approval the collection program required under paragraph I, no later than 3 months after the effective date of this section.

(1) The proposed program may be a new program or include appropriate enhancements to an existing program.

(2) The proposed program shall include an education and outreach component that identifies the mechanisms for providing the necessary information to contractors, service technicians, residents, retailers, and municipalities on an initial and ongoing basis, and identifies the appropriate persons to develop and utilize such mechanisms. Such mechanisms may include, but shall not be limited to, public service announcements, written materials, signage, and visual aids.

(b) If the program proposal is approved, with or without conditions, the manufacturer shall implement the program by the date required in paragraph II.

(c) If the entire program is disapproved, the department shall inform the manufacturer of the reasons for the disapproval. The manufacturer shall have 30 days thereafter to submit a new program.

(d) If the new program is disapproved, the manufacturer shall be out of compliance for the purposes of paragraph IV beginning on the date the new program is disapproved by the department, if that date is later than the implementation date specified in paragraph II.

(e) The department shall take into account the experience of relevant paint collection programs in other states, and shall approve a proposed manufacturer collection program if it contains terms and conditions sufficient for the department to conclude that the proposed program represents the best available approach for improving architectural paint collection in this state.

(f) The department shall provide opportunities for stakeholders, including representatives from wholesalers, contractors, retailers, and environmental groups to provide input into the development and implementation of the collection program, including opportunities prior to the submission of the initial proposals.

(g) An independent financial audit shall be conducted to ensure paint stewardship assessment does not exceed amount required for stewardship program to take place, and that the assessment is added to cost of all architectural paint products sold in state.

IV. A manufacturer not in compliance with this section is prohibited from offering architectural paint for sale in this state. No New Hampshire manufacturer shall sell or offer for sale architectural paint unless they are part of a paint stewardship program.

V.(a) Effective 6 months after the effective date of this section, a wholesaler shall not sell a architectural paint in the state unless the wholesaler acts as a collection site for architectural paint. A wholesaler may meet the requirements of this paragraph by participating as a collection site in a manufacturer collection program described in paragraph I.

(b) A wholesaler shall distribute point-of-sale instructions, educational materials, and signage regarding the importance of recycling architectural paint.

(c) No wholesaler or retailer shall offer for sale in this state any architectural paint of a manufacturer that is not in compliance with this section.

(d) A retailer may be required to facilitate the resident recycling program by distributing manufacturer provided, educational materials and/or posting signage regarding the importance of recycling architectural paint and the location of available collection locations for residents.

(e) The department shall set goals for the collection of architectural paint within 4 months of the date of the first annual report of the manufacturer's program. In determining such goals, the department shall review and determine a percentage of paint, which may be more or less than the actual number reported in the annual program, to establish the next year's goal. The department may also obtain input from interested stakeholders, including but not limited to, manufacturers, non-governmental entities, municipalities, and the recycling community.

(f) The department may alter any element of the previously developed manufacturer collection program, including but not limited to, the number and location of the collection points and the roles of architectural paint manufacturers, wholesalers, retailers, service contractors, and municipal governments in the collection programs, provided such alterations are consistent with the requirements of this and other applicable laws.

VI.(a) For each collection program established under this section, the manufacturer associated with that program shall submit an annual report to the department, by a date to be determined by the department, that includes at a minimum:

(1) The amount of architectural paint collected and recycled by that manufacturer under this section during the previous year.

(2)  An evaluation of the effectiveness of the manufacturer's collection and recycling program.

(3) An accounting of the administrative costs incurred in the course of administering the collection and recycling program developed under this section.

(b) The department shall make available information about the collection and recycling of architectural paint in the state. This information shall be updated annually.

(c) The department shall review the progress of each program and submit a report to the general court by November 1, 2025. The report shall include an assessment of whether the program goals are being met, an assessment of whether any further requirements for retailers, or discounts, savings coupons, or similar programs, should be implemented, and a proposal for any other adjustments that may be required to ensure that the architectural paint program is effective. Prior to submitting the report, the department shall consult with all relevant stakeholders and provide a public comment period.

VII.  The department shall adopt rules under RSA 541-A to enforce the plan, including the circumstances under which a new plan or an amendment to the plan shall be filed by the producer or representative organization.

2  Effective Date.  This act shall take effect 60 days after its passage.

 

LBA

24-2720

11/24/23

 

HB 1504-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to architectural paint recycling.

 

FISCAL IMPACT:      [ X ] State              [ X ] County               [ X ] Local              [    ] None

 

 

Estimated State Impact - Increase / (Decrease)

 

FY 2024

FY 2025

FY 2026

FY 2027

Revenue

$0

$0

$0

$0

Revenue Fund(s)

None

 

Expenditures

$0

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Funding Source(s)

General Fund

 

Appropriations

$0

$0

$0

$0

Funding Source(s)

None

 

• Does this bill provide sufficient funding to cover estimated expenditures? [X] No

• Does this bill authorize new positions to implement this bill? [X] No

 

Estimated Political Subdivision Impact - Increase / (Decrease)

 

FY 2024

FY 2025

FY 2026

FY 2027

County Revenue

$0

$0

$0

$0

County Expenditures

$0

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Local Revenue

$0

$0

$0

$0

Local Expenditures

$0

Indeterminable Decrease

Indeterminable Decrease

Indeterminable Decrease

 

METHODOLOGY:

The Department of Environmental Services states this bill would amend RSA 149-M (Solid Waste Management Act) to establish a take back program for collection and recycling/disposal of post-consumer “architectural paint.”  The program would be coordinated by paint manufacturers individually or through a “representative organization,” with the Department providing oversight and enforcement. Implementation of the program would begin 6 months after the effective date of the bill, and manufacturers would submit a proposed stewardship program to the Department for approval no later than 3 months after the effective date.  Upon implementation, manufacturers, wholesalers and retailers would be prohibited from selling architectural paint in New Hampshire from manufacturers not participating in the program. Due to the number of variables in this bill, the Department is unable to accurately calculate complete costs or impacts, however the Department makes the following assumptions concerning the fiscal impact of the bill:

 

  • The bill would be effective October 1, 2024, and implementation of the program would be on April 1, 2025 (6 months after effective date).

 

  • The program will likely be coordinated through a single representative organization instead of by individual manufacturers as has been done in other states with paint take back programs.

 

  • The representative organization would manage the day-to-day operations and financial aspects of the program, including collection and management of paint, development of educational materials, submittal of annual reports, and contracting with independent auditors.

 

  • The program would be funded by a fee added to the price of new architectural paint sold within the state.  The Department assumes the fees would be deposited into an account controlled by the representative organization, and the organization would use the funds to cover  the organization’s costs to run the program.

 

  • The Department would be responsible for general administration and enforcement,  approving the program, rulemaking, reviewing annual reports submitted by the  manufacturers, evaluating program efficacy, assuring compliance by manufacturers, and submitting reports to the General Court.  These responsibilities extend beyond the scope of the Department's existing duties, and cannot be absorbed within the existing budget.

 

  • The Department assumes the additional responsibilities would necessitate the creation of a new staff position; Environmentalist IV, LG 27.   The position would need to be filled no later than December 1, 2024.  The estimated cost of salary, benefits and other expenses for this position is $73,000 in FY 2025, $114,000 in FY 2026 and $118,000 in FY 2027.  The bill  does not currently include language to establish this position.

 

  • The bill does not specify a source of funds for the Department's administrative duties. therefore, it is assumed an appropriation from the General Fund would be required.  The bill does not currently include an appropriation.

 

  • Currently, the cost of managing post-consumer paint is borne primarily by local governments (municipalities and solid waste districts).  Implementation of this bill would likely reduce local expenditures and the cost burden would shift to consumers purchasing new paint.  The Department is not in a position to precisely quantify such fiscal impacts.

 

  • The cost of construction and renovation projects implemented by state, county and local entities would likely increase due to the fee added to the purchase price of new paint. The Department is not in a position to precisely quantify such fiscal impacts.

 

  • The bill is not expected to impact state, county or local revenues.

AGENCIES CONTACTED:

Department of Environmental Services