BILL ANALYSIS SB 484 Page 1 Date of Hearing: June 28, 2005 ASSEMBLY COMMITTEE ON HEALTH Wilma Chan, Chair SB 484 (Migden) - As Amended: June 15, 2005 SENATE VOTE : 23-15 SUBJECT : Cosmetics: chronic health effects. SUMMARY : Establishes the California Safe Cosmetics Act of 2005. Specifically, this bill : 1)Makes a number of findings and declarations, including that testing has determined that some cosmetic products contain substances known or suspected to cause cancer and reproductive toxicity, there is a lack of ingredient labeling on certain products, there is a heavy use of cosmetics by women of childbearing age, and there is an availability to alternative substances for use in cosmetics. 2)Defines a "chemical identified as causing cancer or reproductive toxicity" as a chemical identified pursuant to Proposition 65 (Prop 65) or identified by an authoritative body, as defined, as a substance: a) Listed as known or reasonably anticipated to be a human carcinogen in a National Toxicology Report on carcinogens; b) Given an overall carcinogenicity evaluation of Group 1, Group 2A, or Group 2B by the International Agency for Research on Cancer (IARC); c) Identified as a Group A, Group B1, or Group B2 carcinogen, or as a known or likely carcinogen by the United States Environmental Protection Agency (EPA); and, d) Identified as having some or clear evidence of adverse developmental, male reproductive, or female reproductive toxicity effects in a report by an expert panel of the National Toxicology Program's Center for the Evaluation of Risks to Human Reproduction. 3)Requires the manufacturer of any cosmetic product subject to regulation by the Food and Drug Administration (FDA) that is SB 484 Page 2 sold in this state, commencing January 1, 2007, to, on a schedule determined by the Division of Environmental and Occupational Disease Control (DEODC) of the Department of Health Services (DHS), provide DEODC with a complete and accurate list of its cosmetic products, as specified, that are sold in the state as of the date of submission and identify by product any ingredient, as defined, that is a chemical identified as causing cancer or reproductive toxicity, including any chemical that is: a) Contained in the product for purposes of fragrance or flavoring; or, b) Identified by the phrase "and other ingredients" and determined to be a trade secret, as specified. Requires any ingredient identified pursuant to this bill to be considered to be a trade secret and be treated by the office in a manner consistent with current federal law. Prohibits any ingredients considered to be a trade secret from being subject to the California Public Records Act for the purposes of this bill. 4)Requires the manufacturer, if an ingredient identified pursuant to this bill is removed from a product and removed from the list of chemicals known to cause cancer or reproductive toxicity under Prop 65 or is no longer a chemical identified as causing cancer or reproductive toxicity by an authoritative body, to submit that information to the DEODC. Requires DEODC, upon receipt of new information and after verifying its accuracy, to revise the manufacturer's information on record. Prohibits the manufacturer from being under obligation to submit subsequent information on the presence of the ingredient in the product unless subsequent changes require submittal of the information. 5)Exempts any cosmetics manufacturer with annual aggregate sales of cosmetic products, both within and outside of California, of less than $1 million, based on the manufacturer's most recent tax year filing from the provisions contained in #3) and #4) above. 6)Permits DEODC, in order to determine potential health effects of exposure to ingredients in cosmetics sold in the state, to conduct an investigation of one or more cosmetic products that contain chemicals identified as causing cancer or reproductive SB 484 Page 3 toxicity or other ingredients of concern to DEODC. Permits such an investigation to include, but not be limited to, a review of available health effects data and studies, worksite health hazard evaluations, epidemiological studies to determine the health effects of exposures to chemicals in various subpopulations, and exposure assessments to determine total exposures to individuals in various settings. 7)Permits the manufacturer of any product subject to the investigation to submit relevant health effects data and studies to DEODC. Permits DEODC, in order to further the purposes of an investigation, to require manufacturers to submit relevant health effects data and studies available to the manufacturer and other available information as requested, including, but not limited to, the concentration of the chemical in the product, the amount by volume or weight of the product that comprises the average daily application or use, and sales and use data necessary to determine where the product is used in the occupational setting. 8)Requires DEODC to establish reasonable deadlines for the submittal of information. Specifies that failure by a manufacturer to submit the information in compliance with the requirements of DEODC constitutes a violation of this bill. 9)Requires DEODC, if it determines pursuant to an investigation that an ingredient in a cosmetic product is potentially toxic at the concentrations present in the product or under the conditions used, to immediately refer the results of its investigation to the Division of Occupational Safety and Health (DOSH) in the Department of Industrial Relations (DIR) and the Office of Environmental Health Hazard Assessment (OEHHA). 10)Requires DOSH, within 180 days after it receives the results of an investigation, to develop and present one or more proposed occupational health standards to the DIR Occupational Safety and Health Standards Board (OSHSB), unless DOSH affirmatively determines, in a written finding within 90 days, that a standard is not necessary to protect the health of an employee who has regular exposure to the hazard for the period of his or her working life. Requires the written finding to identify the reasons for the determination and the factual basis for the finding. SB 484 Page 4 11)Requires DEODC, as early as feasible within existing resources, to determine whether the products identified as in violation of the Cosmetic Ingredient Review's (CIR) safe use recommendations have been adequately substantiated for safety pursuant to federal law. Requires DEODC, for any product adequately substantiated for safety, to determine if the product contains any ingredient that the CIR has found is not safe for the specific use indicated on the product's label. 12)Requires DEODC, if it finds that a product has been adequately substantiated for safety despite containing an ingredient that the CIR has found is not safe for the specific use indicated on the product's label, to refer its findings to the Attorney General and the FDA for possible enforcement action pursuant to this bill and the federal Food, Drug and Cosmetic Act. EXISTING LAW : 1)Regulates the packaging, labeling, and advertising of food, drugs, and cosmetics under the Sherman Food, Drug, and Cosmetic Law. Prohibits a person from manufacturing, selling, delivering, holding, offering for sale, or receiving in commerce any cosmetic that is adulterated, and prohibits a person from adulterating any cosmetic. Prohibits a person from manufacturing or selling any cosmetic that is misbranded, as prescribed. 2)Under Prop 65, requires the Governor to revise and publish a list of chemicals that have been scientifically proven to cause cancer or reproductive toxicity each year. Prohibits any person in the course of doing business in California from knowingly exposing any individual to a chemical known to the state to cause cancer or reproductive toxicity without first giving clear and reasonable warning. 3)Pursuant to federal law, requires the FDA to request the manufacturer, packer, or distributor of a cosmetic product to submit, among other information, a list of ingredients in each of its products, and to provide ingredient information to a licensed physician who requests assistance in determining whether an ingredient in the product is the cause of a problem for which the patient is being treated. Requires any change in information to be filed within 60 days after the product enters into commercial distribution. Makes specific labeling SB 484 Page 5 requirements, including mandating that all ingredients be listed on the label. Permits manufacturers to submit a request of confidentiality of identity of an ingredient by presenting factual and legal grounds for that request. Requires a product to bear a warning statement, prominently and conspicuously displayed on the label, whenever necessary or appropriate to prevent a health hazard that may be associated with the product. Requires each ingredient used in a cosmetic product to be adequately substantiated for safety prior to marketing and requires any product whose safety is not substantiated to contain a conspicuous statement so stating. Permits the FDA to collect samples for examination of products and to take action through the U. S. Department of Justice to remove adulterated and misbranded cosmetics from the market. FISCAL EFFECT : According to the Senate Appropriations Committee analysis, $100,000 general fund (GF) for the receipt of disclosures by DHS in fiscal year (FY) 2005-06; GF costs of $863,000 in FY 2006-07 and $1.2 million GF in FY 2007-08 for the receipt of disclosures, testing, and environmental investigation. The testing and investigation costs are discretionary on the part of DHS, and would be subject to the availability of funding in future budgets. Costs to DIR are unknown and depend upon the number of submittals by DHS following an investigation. COMMENTS : 1)PURPOSE OF THIS BILL According to the author, chemicals that cause cancer and birth defects should not be in products that are used regularly by women of child-bearing age, especially when there are safe alternatives. Neither DHS nor the FDA has any statutory authority to analyze cosmetic products for their possible long-term health impacts, such as cancer and birth defects. The law also shields cosmetic manufacturers from informing the public about toxic chemicals used in their products for fragrance and flavoring. Recent studies suggest these ingredients can include chemicals that cause cancer and birth defect. This bill requires cosmetic manufacturers to tell DHS what chemicals in their products cause cancer or reproductive toxicity and gives the state the authority to protect the public from dangerous exposures to those chemicals. SB 484 Page 6 2)PROPOSITION 65 . The Safe Drinking Water and Toxic Enforcement Act of 1986 (commonly known as Prop 65), provides two primary mechanisms for administratively listing chemicals that are known to the state to cause cancer or reproductive toxicity. A chemical may be listed under Prop 65 when a body considered to be authoritative by the state's qualified experts has formally identified the chemical as causing cancer or reproductive toxicity. The entities identified as "authoritative bodies" for purposes of Prop 65 include the EPA, the International Agency for Research on Cancer, the FDA, the National Institute for Occupational Safety and Health, and the National Toxicology Program (NTP). As the lead agency for the implementation of Prop 65, OEHHA lists chemicals as known to the state to cause reproductive toxicity. 3)COSMETIC LABELING . According to the FDA, all cosmetics, whether they are sold on a retail basis to consumers or marketed for salon or workplace use, are subject to the Food, Drug and Cosmetics Act. This law and subsequent regulations require the cosmetic label to state the name and place of business of the manufacturer, packer or distributor; an accurate statement of the quantity of contents; and any appropriate directions for safe use and/or warning statements. This information must comply with additional regulatory requirements and be prominent and appear in the proper location on the label. Regulations enacted under the Fair Packaging and Labeling Act require ingredients to be listed on the labels of cosmetics sold on a retail basis to consumers. Ingredients are listed in descending order of predominance. The FDA states that consumers can use the ingredient declaration to identify ingredients they wish to avoid. Cosmetic products and ingredients are not subject to FDA testing or approval, with the exception of color additives. According to the FDA, cosmetic manufacturers are responsible for substantiating the safety of their products and ingredients before marketing. The FDA is not authorized to require recalls of "hazardous" cosmetics, but does monitor companies that conduct product recall and may request a recall if the manufacturer is not willing to remove dangerous products from the market. SB 484 Page 7 4)COSMETIC INGREDIENT REVIEW . According to the CIR website, it was established in 1976 by the Cosmetic, Toiletry & Fragrance Association (CTFA) with support of the FDA and the Consumer Federation of America (CFA). Although funded by CTFA, CIR and the review process are independent from CTFA and the cosmetics industry. According to the CIR, it reviews and assesses the safety of ingredients used in cosmetics in an open, unbiased, and expert manner, and publishes the results in the open, peer-reviewed scientific literature. The seven CIR Expert Panel voting members include physicians and scientists who have been publicly nominated by consumer, scientific and medical groups, government agencies and industry. Three liaison members serve as non-voting members representing the FDA, CFA, and CTFA. Working on the "high priority" ingredients, the CIR conducts literature searches, compile data, and prepare draft reports. If the scientific literature contains insufficient information, CIR requests the industry or other interested parties to undertake specific studies or to provide previously unpublished data. After completion of a development process that includes multiple opportunities for public comment and open, public discussion of the report, a final report is issued. These final reports are available from CIR and published in the International Journal of Toxicology. A May 1992 article in the FDA's consumer magazine said the CIR was the "most well-known of industry-sponsored self-regulation . . . sponsored by the CTFA." The CIR is accomplished by a panel of scientific and medical experts who evaluate cosmetic ingredients for safety and publish detailed reviews of available safety data. The article went on to say that "A finding of safety by the CIR provides a degree of confidence that the ingredient can safely be used in cosmetics," and that in the absence of CIR, there would be no systematic examination of the safety of individual cosmetic ingredients. 5)EUROPEAN UNION BAN . According to the sponsors of this bill, National Environmental Trust, Breast Cancer Action, and Breast Cancer Fund, in January 2003, the European Parliament prohibited the use in cosmetics of certain chemicals that cause cancer, reproductive harm, or mutagenicity. The ban, SB 484 Page 8 which took effect in September of 2004, is absolute for chemicals that fall in categories 1 and 2 of these substances. For category 3, it is conditional, meaning a manufacturer may use the chemicals only if the proposed use is determined to be safe. The categories denote the level of certainty that the chemical harms human health. Category 1 substances are those that are known to cause the specified health problems in humans. Category 2 substances are known to cause the effects in animals and the scientific literature is strong enough that the European Union has determined to treat the chemicals as though they cause the effects in humans. Category 3 substances have also shown health effects in animals, but the scientific literature is less robust than for category 2. These terms correspond to the terms "known," "probable," and "possible" used by the EPA to describe health effects of chemicals. 6)RELATED LEGISLATION . AB 908 (Chu) prohibits a person or entity, on or after January 1, 2007, from manufacturing, selling, or distributing in commerce any cosmetic that contains dibutyl phthalate (DBP) or di-(2-ethylhexyl) phthalate (DEHP) and provides that any cosmetic is misbranded if it is sold by an Internet Web site where the list of ingredients in the cosmetic is not easily and readily available to be viewed by the prospective purchaser before the purchase is completed. AB 908 failed passage in the Assembly Committee on Health when it was heard on April 19, 2005 by a vote of 5-5. 7)PREVIOUS LEGISLATION . Last year, AB 2025 (Chu) would have required the manufacturer of any cosmetic or personal care product sold in California to submit to OEHHA a list of ingredients contained in the product, including the name of each ingredient for purposes of fragrance or flavoring and the name of each ingredient identified by the phrase "and other ingredients." AB 2025 would also have required the manufacturer to identify any ingredient that is a chemical identified as causing cancer or reproductive toxicity or to declare in writing to OEHHA that its products do not contain any chemical identified as causing cancer or reproductive toxicity. Finally, the bill would have prohibited any person from manufacturing, processing, or distributing in a cosmetic or personal care product that contains a chemical identified as causing cancer or reproductive toxicity. AB 2025 was set to be heard in the Assembly Committee on Health, but the SB 484 Page 9 hearing of this bill was cancelled at the request of the author. Also last year, AB 2012 (Chu) was amended in the Senate to require, by January 1, 2006, the manufacturer of any cosmetic or personal care product subject to regulation by the FDA and manufactured, processed, or distributed in commerce in the state to notify OEHHA of any ingredient in its product that is a chemical identified as causing cancer or reproductive toxicity, as specified. This bill failed passage in the Assembly Committee on Health by a vote of 4-5. 8)SUPPORT . The National Environmental Trust (NET) states that men use multiple cosmetic and personal care products and women use an estimated 25 such products a day. NET states that a class of chemicals called phthalates, known to cause cancer and reproductive toxicity are used in cosmetic products and that a national laboratory found phthalates in 52 of 72 products tested even though the chemical was not listed on the product label. NET writes that in 1978 the U.S. Governmental Accounting Office told Congress that certain cosmetics marketed in the United States contain ingredients that may cause cancer, cause birth defects, or have other health consequences. Numerous supporters claim that those most at risk to exposure to carcinogens and reproductive toxins are nail and beauty salon workers and that these women are generally of child-bearing age. Breast Cancer Action states that not only do women of child-bearing age frequently use personal care products, they also transfer many of the chemicals they contain across the placental cord to the developing fetus. Asian Americans for Civil Rights and Equity, the California Nurses Association, Asian Health Services, the Asian Pacific Environmental Network, and California Women Lawyers claim the FDA does not review cosmetic ingredients for their health and safety before they come to market nor have the authority to recall hazardous products and relies instead on the industry's self-policing committee, the CIR, for information on product safety. Garden of Eve writes they take responsibility for the safety of their products and believe it is necessary in their industry's best interest to provide U.S. consumers the same protection provided to European consumers. The California League of Conservation Voters state that this bill is a responsible proposal that recognizes fiscal constraints and reduces mandated costs to a minimum. SB 484 Page 10 9)OPPOSE . Raffaello Research Laboratories, Inc states that this bill would require all manufacturers of personal care products and cosmetics who sell products in California to report every ingredient, including trace amounts of any chemical, in their products to DHS. Raffaello argues that Prop 65 allows trace levels of chemicals known to cause cancer or reproductive toxicity and that trace levels of these chemicals are found in water and food. A number of companies, including GAR Laboratories, Alberto Culver Company, TCR Industries, Universal Packaging Systems, Inc., Kimberly-Clark, Creative Nail Design, American International Industries, and SMAP Manufacturing, Inc. write that every cosmetic manufacturer who sells products in California is already subject to a long list of federal and state laws and rules governing everything from product formulation to air quality. Estee Lauder writes that this bill references chemical lists prepared by three different institutions without providing exceptions for unintended or unavoidable trace amounts of ingredients, an exception recognized under federal regulations, EU law, and other existing California law. Numerous individuals write that that this bill is not based on sound scientific evidence or standard safety practice. The California Chamber of Commerce contends that this bill places an unnecessary burden on the hundreds of cosmetic and personal care product manufacturers in this state and provides no benefit to public health and will only serve to charge the state government and manufacturers with new and significant costs. The Grocery Manufacturers of America states that this bill requires the reporting of chemicals even though they are present in forms or at levels that pose no health risk. 10) SUGGESTED AMENDMENTS . a) On page 6, line 24, "division" should replace the word "office." b) In order to conform with other language related to DEODC duties, the author may wish to delete the word "shall" on page 9, line 11 and insert "may." REGISTERED SUPPORT / OPPOSITION : Support SB 484 Page 11 National Environmental Trust (sponsor) Breast Cancer Fund (co-sponsor) Breast Cancer Action (co-sponsor) AMURIE toxic free products Asian Americans for Civil Rights and Equality (AACRE) Asian Communities for Reproductive Justice (ACRJ) Asian Health Services Asian Immigrant Women Advocates Asian Pacific Environmental Network (APEN) Association of Asian Pacific Community Health Organizations (AAPCHO) California Black Women's Health Project California Church IMPACT/California Council of Churches California Commission on the Status of Women California Interfaith Partnership for Children's Health and the Environment California League of Conservation Voters California Nurses Association California Women Lawyers Center for Environmental Health Center for Ethics and Toxics (CETOS) Chinese for Affirmative Action/Center for Asian American Advocacy (CAA) Commonweal Biomonitoring Center Dropwise Essentials East Bay Asian Consortium Ecology Action of Santa Cruz Environment California Environmental Justice Coalition for Water Filipino American Coalition for Environmental Solutions (FACES) Filipinos for Affirmative Action (FAA) Friends Committee on Legislation Friends of the Earth Garden of Eve J.P. Durga, LLC Learning Disabilities Association of California Marie Veronique Skin Therapy Mariun Cancer Project National Brain Tumor Foundation National Resources Defense Council Orange County Interfaith Coalition for the Environment Physicians for Social Responsibility San Francisco-Bay Area Chapter Presbyterians for Restoring Creation Sierra Club California SB 484 Page 12 Silicon Valley Toxics Coalition The Women's Foundation of California United Food and Commercial Workers VietUnity 153 individuals Opposition 2-2-0 Laboratories Alberto Culver American Chemistry Council American Health and Beauty Aids Institute American International Industries Anna Nails BioOrganic Concepts California Botana International, Inc. California Chamber of Commerce California Grocers Association California Retailers Association Chicago Aerosol Clinical Industry Council Color Techniques Cosmetic, Toiletry, and Fragrance Association Cosmoceutical Research Center Creative Nail Design Derma e DERMdoctor Dermix Dial Corporation Doctors' Dermatologic Corporation Elizabeth Arden Environ Skin Care Estee Lauder Companies, Inc. Flavor and Extract Manufacturers Association Floratech Formulation Research Laboratories, LLC Fragrance Materials Association GAR Labs Gillette Company Grocery Manufacturers of America Herbalife Innovative Body Science International Cosmetics Johnson & Johnson Kao Brands Company SB 484 Page 13 Kimberly Clark Corporation Laboratoire Dr. Renaud Laclede, Inc. Levlad, Inc. Maleface Skin Care MDPar International Corporation Murad Nailtiques Neostrata Company Nitrilife NuSkin Nyakio Bath and Body OPI Products, Inc. Pacific World Procter & Gamble Raffaello Research Laboratories Randall International, LLC Sacramento Asian Pacific Chamber of Commerce Sacramento Hispanic Chamber of Commerce Schroeder & Tremayne, Inc. Schwarzkopf Professional SEPPIC Shaklee Corporation SMAP Manufacturing Spatz Laboratories TCR Industries Unilever Universal Packaging Systems USANA Victoria Consulting Wella Corporation 156 individuals Analysis Prepared by : Melanie Moreno / HEALTH / (916) 319-2097