Sonoma County Reaches $1.43M Settlement With Kelly-Moore Paints

SONOMA COUNTY, CA — Ten California counties, including Sonoma, have reached a $1.43 million settlement with Kelly-Moore Paint Company to resolve allegations of illegal dumping of hazardous waste and failure to properly dispose consumer information, the Contra Costa County District Attorney's Office announced Monday.

Kelly-Moore Paints was founded in 1946 in San Carlos, and now owns and operates 106 stores in California. In Sonoma County, Kelly-Moore Paints has locations in Petaluma, Rohnert Park, Santa Rosa and Windsor.

Joining Contra Costa County District Attorney Diana Becton in the lawsuit were the district attorneys of Alameda, Monterey, Placer, San Francisco, San Joaquin, San Mateo, Santa Clara, Sonoma and Yolo counties.

The settlement announced Monday resolves allegations the company violated California state laws governing hazardous waste by routinely and illegally disposing of paint colorants, paint, electronic devices, aerosol products, and other hazardous wastes into company waste bins destined for municipal landfills not authorized to accept hazardous waste.

The lawsuit also resolves allegations that Kelly-Moore failed to shred customer records containing confidential information before disposal.

"My office will always strive to protect the environment and public health by holding companies accountable for violating our environmental laws," Contra Costa DA Diana Becton said. "This settlement not only acts as a deterrent against other potential violators but more importantly contains injunctive provisions to ensure Kelly Moore will maintain environmental compliance into the foreseeable future."

The lawsuit stemmed from an investigation of Kelly-Moore initiated by the California Department of Toxic Substance Control, or DTSC.

From March 2016 through December 2018, inspectors from the DTSC, and investigators from other district attorney offices statewide, did a series of undercover inspections of waste bins originating at 29 separate Kelly-Moore locations. It was alleged that the inspections revealed numerous instances of unlawful disposal of hazardous waste paint colorants, paint, electronic devices, aerosol products, and other hazardous wastes.

It was further alleged that Kelly-Moore broke laws meant to protect confidential consumer information by illegally disposing of customer records without having rendered personal information unreadable.

According to the district attorneys, when prosecutors notified Kelly-Moore company officials of the suspected unlawful disposals, company officials immediately agreed to cooperate and promptly implemented measures and dedicated additional resources toward environmental compliance at its stores.

Stores are required to properly manage hazardous waste and to retain their waste in segregated, labeled containers to minimize the risk of exposure to employees and customers and to ensure that incompatible wastes do not combine to cause dangerous chemical reactions.

Hazardous waste produced by Kelly-Moore stores through damage, spills, and returns is now collected by state-registered haulers, taken to proper disposal facilities, and properly documented and accounted for, the district attorneys said Monday.

$1.43 Million Settlement

The settlement with the district attorneys of 10 California counties requires Kelly-Moore to pay a total of $1.43 million: $825,000 for civil penalties, $178,750 for supplemental environmental projects, and $425,000 for reimbursement of investigative and enforcement costs.

Kelly-Moore gets a credit of $125,000 against the penalties if it undertakes at least $250,000 in environmental enhancement work not required by law.

In addition, the settlement includes provisions requiring Kelly-Moore to employ a California-based compliance employee to oversee Kelly-Moore’s hazardous waste compliance program and to undergo a trash receptacle audit to ensure hazardous wastes and confidential consumer information is properly disposed of at all stores. The results of the audit must be shared with the public.

The company must also comply with 28 injunctive requirements pertaining to environmental and confidential consumer information protection laws.