BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 757
                                                                  Page  1

          Date of Hearing:  June 30, 2009

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                  Mike Feuer, Chair
                     SB 757 (Pavley) - As Amended:  June 23, 2009

           SENATE VOTE  :   21-13
           
          SUBJECT  :  LEAD WHEEL WEIGHTS

           KEY ISSUE  :  SHOULD THE LEGISLATURE PROHIBIT THE MANUFACTURE,  
          SALE, AND INSTALLATION OF LEAD WHEEL WEIGHTS IN CALIFORNIA AND  
          ENACT SPECIFIED CIVIL AND ADMINISTRATIVE PENALTIES FOR  
          VIOLATIONS OF THE PROHIBITION?
           
          FISCAL EFFECT  :  As currently in print this bill is keyed fiscal.

                                      SYNOPSIS
          
          This bill, co-sponsored by the Center for Environmental Health  
          and Clean Water Action, seeks to prohibit the manufacture, sale,  
          and installation of lead wheel weights, and enacts specified  
          civil and administrative penalties for violations of the  
          prohibition.  Lead wheel weights are commonly used to balance  
          vehicle wheels, but regularly separate from vehicles upon impact  
          with curbs or potholes.  Separated wheel weights are inevitably  
          ground into smaller particles by roadway traffic, and the  
          resulting lead dust can wash into storm drains, streams, and  
          reservoirs, where it may contaminate supplies of drinking water.  
           Lead is a potent neurotoxin, linked to cancer and brain damage,  
          and does not easily break down in the environment.  This bill  
          seeks to codify the settlement in a recent Proposition 65  
          enforcement action, in which leading manufacturers of lead wheel  
          weights agreed to phase out their use in California.  The bill  
          clarifies that new lead alternatives in wheel weights will still  
          be subject to the evaluation process prescribed by existing  
          Green Chemistry law.  Supporters of the bill contend that the  
          bill will not only protect the environment and public health,  
          but will also create a level playing field to enable "good  
          actor" companies, who are eradicating lead from their products,  
          to effectively compete with overseas companies who continue to  
          manufacture lead wheel weights.  There is no known opposition to  
          this bill.  After passing off the Senate floor with by a 21-13  
          vote, the bill was approved by the Assembly Environmental Safety  
          and Toxics Committee by a 5-1 vote.








                                                                  SB 757
                                                                  Page  2


           SUMMARY  :  Seeks to prohibit the manufacture, sale, and  
          installation of lead wheel weights, and enacts specified civil  
          and administrative penalties for violations of the prohibition.   
          Specifically,  this bill  :    

          1)Prohibits the manufacture, sale, or installation of a wheel  
            weight in California that contains more than 0.1 percent  
            (0.1%) lead by weight.

          2)Provides that a person who violates these provisions shall not  
            be subject to criminal penalties, but may be enjoined by a  
            court and subject to an administrative or civil penalty not to  
            exceed $2,500 per day for each violation.

          3)Requires the presiding officer or the court, in assessing the  
            amount of an administrative or civil penalty, to consider a  
            number of specified factors, including:  1) the nature and  
            extent of the violation; 2) the number and severity of the  
            violations; 3) the economic effect of the penalty on the  
            violator; 4) any good faith efforts taken by the violator to  
            comply; 5) the willfulness of the misconduct; 6) the deterrent  
            effect of the penalty; and 7) any other factors that justice  
            may require.

          4)Requires administrative and civil penalties collected pursuant  
            to this legislation to be deposited in the Hazardous Waste  
            Control Account, for expenditure by the Department of Toxic  
            Substances Control (DTSC), to implement and enforce these  
            provisions.

          5)Provides that if an alternative to lead contained in wheel  
            weights is identified as a chemical of concern, pursuant to  
            the Green Chemistry law, then the lead alternative shall be  
            subject to the prescribed evaluation process to best limit its  
            exposure to the public or reduce the level of hazard it poses  
            to human health or the environment.

          6)Provides that nothing in this legislation shall prohibit or  
            restrict the authority of the DTSC, pursuant to the Green  
            Chemistry law, to take actions on a chemical or chemical  
            ingredient in wheel weights, including, but not limited to, an  
            alternative to lead.

           EXISTING LAW  :  








                                                                  SB 757
                                                                  Page  3


          1)Pursuant to the Safe Drinking Water and Toxic Enforcement Act  
            of 1986, enacted by Proposition 65:

             a)   Prohibits persons from knowingly discharging or  
               releasing a chemical known to the state to cause cancer or  
               reproductive toxicity into water or onto or into land where  
               such chemical passes or probably will pass into any source  
               of drinking water.  (Health & Safety Code Section 25249.5.)

             b)   Provides that a person who violates these provisions  
               shall not be subject to criminal penalties, but may be  
               enjoined by a court and subject to a civil penalty not to  
               exceed $2,500 per day for each violation.

             c)   Requires the court, in assessing the amount of any civil  
               penalty, to consider a number of specified factors,  
               including: 1) the nature and extent of the violation; 2)  
               the number and severity of the violations; 3) the economic  
               effect of the penalty on the violator; 4) any good faith  
               efforts taken by the violator to comply; 5) the willfulness  
               of the misconduct; 6) the deterrent effect of the penalty;  
               and 7) any other factors that justice may require.

          2)Prohibits the manufacturing, shipping, selling, offering for  
            sale, or offering for promotional purposes, of specified types  
            of jewelry, unless the jewelry complies with certain  
            requirements on its composition that restrict the amount of  
            lead that may be present.  Specifies administrative and civil  
            penalties for violation of this prohibition, and requires the  
            officer or court to consider various factors in assessing the  
            amount of the penalty.  (Health & Safety Code Section 25214.1  
            et seq.)

          3)Pursuant to the Green Chemistry Initiative:

             a)   Requires the DTSC, by January 1, 2011, to adopt  
               regulations to establish a process to identify and  
               prioritize chemicals or chemical ingredients in products  
               that may be considered a "chemical of concern," in  
               accordance with a review process, as specified.

             b)   Requires the DTSC to adopt regulations to establish a  
               process for evaluating chemicals of concern in products,  
               and their potential alternatives in order to determine how  








                                                                  SB 757
                                                                  Page  4

               best to limit exposure or to reduce the level of hazard  
               posed by a chemical of concern, as specified.  (Health and  
               Safety Code Section 25251 et seq.)
           
          COMMENTS  :  This bill, co-sponsored by the Center for  
          Environmental Health and Clean Water Action, seeks to prohibit  
          the manufacture, sale, and installation of lead wheel weights,  
          and enacts specified civil and administrative penalties for  
          violations of the prohibition.  

           Separated Lead Wheel Weights Can Contaminate Drinking Water,  
          Posing Health Risks  :  Lead has long been the material of choice  
          in weights used to balance vehicle wheels.  According to the  
          U.S. Geological Survey, about 65,000 tons of lead wheel weights  
          are in use in over 200 million cars and trucks that are driven  
          in the U.S.  Unfortunately, these lead weights regularly  
          separate from vehicles upon impact with curbs or potholes and  
          are ground into lead dust by traffic as they lie in the roadway.  
           The lead dust can wash into storm drains, streams, and  
          reservoirs, where it may contaminate supplies of drinking water.

          The Environmental Protection Agency (EPA) considers lead and  
          lead compounds to be "persistent bioaccumulative toxic"  
          chemicals because they remain in the environment for a long  
          time, are not readily destroyed, and build up or accumulate in  
          body tissue.  Lead is a potent neurotoxin that is linked to  
          cancer and can cause brain damage, including irreparable harm to  
          the brains of children and developing fetuses.  Lead exposure  
          can result in mental retardation, learning and behavioral  
          disabilities, as well as impaired growth, motor function, vision  
          and hearing.

           This Bill Codifies A Recent Settlement of a Proposition 65  
          Enforcement Action  .  In August 2008, Chrysler and three other  
          lead wheel weight makers agreed to end shipment and installation  
          of lead wheel weights in California by the end of 2009 as part  
          of the settlement of a Proposition 65 enforcement action brought  
          by the Center for Environmental Health, one of the co-sponsors  
          of this bill.  ("Lead wheel weights to be phased out in  
          California by end of 2009,"  Los Angeles Times  , 8/21/2008.)  The  
          settlement was approved by Alameda County Superior Court Judge  
          Barbara Miller and, according to the author, marks the  
          first-ever legally binding statewide rule phasing out lead wheel  
          weights in the U.S.  This bill seeks to codify this settlement,  
          in order to encourage other companies to begin phasing out use  








                                                                  SB 757
                                                                  Page  5

          of these weights and to ensure that lead does not one day make  
          its way back into wheel weights sold or installed in California.

           The Bill's Proposed Penalties Largely Mirror Those From  
          Proposition 65  .  Under the penalty provisions of this bill,  
          violators of the prohibition on lead wheel weights shall not be  
          subject to criminal penalties, but may be enjoined by a court  
          and subject to a civil penalty not to exceed $2,500 per day for  
          each violation.  As befits a bill that arises from a civil  
          action to enforce Proposition 65, it is appropriate that the  
          penalty provisions under this bill mirror existing penalties for  
          violations of Proposition 65.  (See Health & Safety Code Section  
          25249.7.)  In addition, the factors that the court must consider  
          in assessing the amount of the penalty are identical to the  
          factors currently required under Proposition 65.  

          In addition to authorizing the court to assess penalties in a  
          civil action, this bill also authorizes an administrative  
          penalty if there is an action filed with the Office of  
          Administrative Hearings.

           The Bill Seeks to Create a Level Playing Field for "Good Actor"  
          Companies.   According to the author, the EPA is sponsoring a  
          voluntary initiative to reduce the use of lead wheel weights,  
          but has not officially banned them.  Many companies have joined  
          the initiative, including General Motors, Ford, Chrysler,  
          Toyota, Costco, Bridgestone Firestone, and Wal-Mart, presumably  
          because there are economically viable alternatives that can be  
          made from less hazardous materials than lead.  In addition, the  
          U.S. Defense Department and the U.S. Postal Service are phasing  
          out lead wheel weights in their fleets nationwide.

          With the agreement of Chrysler and three leading manufacturers  
          to phase out lead wheel weights in California as part of the  
          recent settlement of that lawsuit, the bill is not only useful  
          in codifying the planned phase out of lead wheel weights  
          reflected in the settlement, but also will enable companies who  
          are eradicating lead from their products to effectively compete  
          with overseas companies who continue to manufacture lead wheel  
          weights.  As Clean Water Action explains in its letter of  
          support:

               While these [voluntary phase-out] actions are to be  
               applauded, lead wheel weights are still manufactured  
               overseas, putting companies moving away from lead at a  








                                                                  SB 757
                                                                  Page  6

               disadvantage.  SB 757 will not only serve to protect  
               the environment and public health, but provide a level  
               playing field on which "good actor" companies can  
               effectively compete.

          By prohibiting the manufacture, sale, and installation of lead  
          wheel weights throughout California, this bill levels the  
          playing field by ensuring that no company doing business in the  
          state has an economic incentive to "fill the void" and establish  
          itself as the primary source of lead wheel weights in place of  
          the companies who previously were the leading manufacturers of  
          these toxic auto parts.  Presumably for this reason, the bill is  
          even supported by at least one manufacturer of lead wheel  
          weights, Perfect Equipment, Inc., that was a defendant in the  
          Proposition 65 enforcement action.  There is no known opposition  
          to the bill.

           Recent Amendments Clarify That Lead Alternatives in Wheel  
          Weights Will Be Evaluated Under the Green Chemistry Law to  
          Ensure Health and Environmental Safety.   Lead wheel weights are  
          already being phased out in California, and this bill is  
          intended to further expedite that outcome.  However, the bill  
          does not prescribe an alternative substance that manufacturers  
          must use to replace lead in wheel weights.  Wheel weights in  
          California may be expected to contain a number of other  
          chemicals or substances used by manufacturers instead of lead,  
          some of which may be just as harmful to human health or the  
          environment as lead.

          To ensure that wheel weights containing alternative chemicals  
          intended to replace lead do not perpetuate the risks to public  
          health and environmental safety posed by lead, the author has  
          recently amended the bill to clarify that alternative chemical  
          ingredients in wheel weights will be subject to the review and  
          regulatory process set forth by last year's Green Chemistry  
          Initiative (Health & Safety Code Section 25251 et seq.) to  
          identify so-called "chemicals of concern" and limit the level of  
          hazard they pose to human health and the environment.  The  
          author's amendment also clarifies that nothing in this bill will  
          prohibit or restrict DTSC's authority, pursuant to the Green  
          Chemistry law, to take appropriate action on any chemical found  
          in wheel weights, including a lead alternative.

           REGISTERED SUPPORT / OPPOSITION  :









                                                                  SB 757
                                                                  Page  7

           Support 
           
          Clean Water Action (co-sponsor)
          Center for Environmental Health (co-sponsor)
          American Federation of State, County and Municipal Employees  
          (AFSCME)
          Consumers Union
          East Bay Municipal Utility District (EBMUD)
          Environmental Working Group
          Perfect Equipment, Inc.
          Planning and Conservation League
          Sierra Club California
          Worksafe
           
            Opposition 
           
          None on file


           Analysis Prepared by  :    Anthony Lew / JUD. / (916) 319-2334