§ 27-2003. Postconsumer paint collection program.

1. No later than July first, two thousand twenty, a producer, either
individually or cooperatively, or a representative organization shall
submit to the department for the department's approval a plan for the
establishment of a postconsumer paint collection program. Such plan
shall be accompanied by a fee of five thousand dollars for an individual
producer or, in the case of a representative organization or producers
acting collectively, a fee of ten thousand dollars. The program will
minimize public sector involvement in the management of postconsumer
paint by reducing its generation, promoting its reuse and recycling and
negotiating and executing agreements to collect, transport, reuse,
recycle and properly dispose of postconsumer paint using environmentally
sound management practices.

2. A producer may satisfy the postconsumer paint collection program
requirement of this section by agreeing to participate collectively with
other producers. Any such collective postconsumer paint collection
program shall meet the same requirements as an individual producer. Such
program shall submit a registration to the department along with a
registration fee of ten thousand dollars.

3. The plan submitted by the producer or representative organization
to the department under this section shall:

(a) provide a list of each participating producer and brands covered
by the program.

(b) provide information on the architectural paint products covered
under the program.

(c) describe how the producer or representative organization will
collect, transport, recycle, and process postconsumer paint for
end-of-life management, including recycling and disposal, using
environmentally sound management practices.

(d) describe how it will provide for convenient and cost-effective
statewide collection of postconsumer paint in the state. The producer or
representative organization may coordinate the program with existing
municipal waste collection infrastructure as is mutually agreeable. A
paint retailer may participate, on a voluntary basis, as a paint
collection site if the paint retailer volunteers to act as such and
complies with all applicable laws and regulations.

(e) provide geographic modeling to determine the number and
distribution of sites for collection of postconsumer paint based on the
following criteria (i) at least ninety percent of New York residents
shall have a collection site within a fifteen mile radius; and (ii) one
additional collection site will be established for every fifty thousand
residents of an urbanized area (as defined by the United States Census
Bureau), unless the producer is a small business taxpayer as defined in
paragraph (f) of subdivision one of section two hundred ten of the tax
law or unless otherwise approved by the commissioner.

(f) describe the intended treatment, storage, transportation and
disposal options and methods for the collection of postconsumer paint.
The management of paint under the program shall promote reuse and
recycling.

(g) describe in detail education and outreach efforts to inform
consumers and retailers about the program. These materials should
include (i) information about collection opportunities for postconsumer
paint; (ii) information about the charge for the operation of the
program that shall be included by the producer in the price charged to
the retailer of all architectural paint sold in the state; and (iii)
efforts to promote the source reduction, reuse, and recycling of
architectural paint.

(h) set forth the process by which an independent financial auditor
will be selected and identify the criteria used by the producer or
representative organization in selecting an independent auditor.

(i) identify, in detail, the operational plans for interacting with
retailers on the proper handling and management of postconsumer paint.

(j) include the targeted annual collection rate.

(k) be reviewed by an independent financial auditor to assure that any
added cost to paint sold in the state as a result of the postconsumer
paint collection program does not exceed the costs of the program. The
independent auditor shall verify that the amount added to each unit of
paint will cover the costs of the postconsumer paint collection program.

4. The independent financial auditor may be selected by the department
and the department shall review the work product of any such independent
auditor. The department may terminate the services of any such
independent auditor. The cost of any work performed by such independent
auditor shall be funded by the program.

5. The department shall approve or reject a plan submitted under this
section within sixty days of submission and, if rejected, inform the
producer or representative organization in writing as to any
deficiencies in said plan. A producer or representative organization
shall amend and resubmit any rejected plans for reconsideration within
sixty days of notification of the rejection of said plan. The department
shall approve or reject said plan within thirty days of resubmission.

6. Beginning not later than January first, two thousand twenty-one or
six months after the plan is approved under subdivision five of this
section, whichever occurs later, the producer or representative
organization shall implement the postconsumer paint collection program
utilizing collection sites established pursuant to paragraph (e) of
subdivision three of this section.

7. Not later than the implementation date of the program, information
regarding the approved plan, the names of participating producers, and
the brands of architectural paint covered by the program shall be posted
on the department's website and on the website of the producer and
representative organization.

8. Upon implementation of the program, each producer shall include in
the price of any architectural paint sold to retailers and distributors
in the state the per container amount in the approved program plan. A
retailer or distributor shall not deduct this amount from the purchase
price.

9. A producer or retailer shall not sell, or offer for sale,
architectural paint to any person in the state unless the producer and
the producer's brands are registered with the department pursuant to
section 27-2003 of this title on and after the date of implementation of
the postconsumer paint collection program.

10. (a) A retailer shall be in compliance with this section if, on the
date the architectural paint was offered for sale, the producer is
listed on the department's website as implementing or participating in
an approved program or if the paint brand is listed on the department's
website as being included in the program.

(b) A paint collection site authorized under the provisions of this
section shall not charge any additional amount for the disposal of paint
when it is offered for disposal.

11. (a) A producer or the representative organization that organizes
the collection, transport and processing of postconsumer paint, in an
action solely to increase the recycling of architectural paint by a
producer, representative organization, or retailer that affects the
types and quantities being recycled or the cost and structure of any
return program shall not be liable for any claim of a violation of
antitrust, restraint of trade or unfair trade practice arising from
conduct undertaken in accordance with the program pursuant to this
section.

(b) Provided however, paragraph (a) of this subdivision shall not
apply to any agreement establishing or affecting the price of paint
except for the postconsumer paint collection assessment or the output or
production of paint or any agreement restricting the geographic area or
customers to which paint will be sold.

12. The operator of the postconsumer paint collection program shall
update the plan, as needed, when there are changes proposed to the
current program. A new plan or amendment will be required to be
submitted to the department for approval when:

(a) there is an addition to the products covered under the program; or

(b) there is a revision of the program's goals; or

(c) every four years from the date of approval of a previous plan.

The operator of the postconsumer paint collection program shall notify
the department annually, in writing, if there are no changes proposed to
the program and the producer or representative organization intends to
continue implementation of the program as previously approved by the
department.

13. Any person who becomes a producer after July first, two thousand
twenty shall submit a plan to the department prior to selling or
offering for sale in the state any architectural paint, and must comply
with the requirements of this title.