BILL ANALYSIS Ó AB 237 Page 1 Date of Hearing: May 3, 2011 ASSEMBLY COMMITTEE ON HEALTH William W. Monning, Chair AB 237 (Galgiani) - As Introduced: February 3, 2011 SUBJECT : Cosmetics: misbranding. SUMMARY : Permits the Department of Public Health (DPH) to, within existing resources, require any manufacturer of cosmetic products that does not currently comply with the applicable parts of the federal Food and Drug Administration (FDA) Voluntary Cosmetic Reporting Program (VCRP), to provide to the department information of the same kind disclosed through the federal program. EXISTING LAW : 1)Regulates, under the Sherman Food, Drug, and Cosmetic Law, the packaging, labeling, and advertising of food, drugs, and cosmetics. 2)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. 3)Requires the manufacturer of any cosmetic product subject to regulation by the FDA that is sold in this state to, on a schedule, and in electronic or other format, as determined by the Division of Environmental and Occupational Disease Control (DEODC) of the DPH, provide DEODC with a complete and accurate list of its cosmetic products that, as of the date of submission, are sold in the state and contain any ingredient that is a chemical identified as causing cancer or reproductive toxicity, as specified. 4)Creates, under federal regulation, a program for voluntary registration of cosmetic product establishments and cosmetic product ingredients, called the VCRP. FISCAL EFFECT : This bill has not been analyzed by a fiscal committee. COMMENTS : AB 237 Page 2 1)PURPOSE OF THIS BILL . According to the author, this bill provides new accountability and transparency for cosmetic products sold in California, without adding new costs to state government. The author states that based upon recent health concerns related to other FDA regulated products, this proposal, if enacted, would provide a new level of protection for consumers, and cosmetic manufacturers. 2)VCRP . According to the FDA, the VCRP is a post-market reporting system for use by manufacturers, packers, and distributors of cosmetic products. The VCRP applies only to cosmetic products being sold to consumers in the United States and not to cosmetic products for professional use only, such as products used in beauty salons, spas, or skin care clinics. It also does not apply to hotel samples. The federal regulation for the VCRP (Title 21, Part 720: Voluntary Filing of Cosmetic Product Ingredient and Cosmetic Raw Material Composition Statements) also exempts fragrance and/or flavor from the reporting requirements. The information received by the FDA from the VCRP is entered into a computer database. If it is determined that a cosmetic ingredient presently being used is harmful and should be removed from product use, the FDA can notify the manufacturers and distributors of affected products by using a mailing list (or email list for those who participate via Internet) generated from the VCRP database. Those whose products are not in the registration database are not on the notification mailing list. According to the FDA, information from the VCRP database assists the Cosmetic Ingredient Review (CIR) Expert Panel in determining its priorities for ingredient safety review. 3)CIR Expert Panel . According to the CIR Website, it was established in 1976 by the Cosmetic, Toiletry, and Fragrance Association (CTFA) with support of the FDA and the Consumer Federation of America. 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 open, peer-reviewed scientific literature. The seven voting members of the CIR Expert Panel include physicians and scientists who have been publicly nominated by consumer, scientific and medical groups, government agencies, and the industry. After completion of a development process that includes multiple AB 237 Page 3 opportunities for public comment and open, public discussion of the report, a final report is issued, which is available from CIR and published in the International Journal of Toxicology. A May 1992 article in the FDA's consumer magazine called CIR the "most well-known of industry-sponsored self-regulation . . . sponsored by the CTFA." 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. 4)Existing DPH authority . DPH currently must access the VCRP data through the federal Freedom of Information Act process. According to the CTFA, the FDA has indicated that DPH could bypass the Freedom of Information Act process and request the information through the FDA Federal-State relations division. However, if DPH chooses to bypass the Freedom of Information Act process altogether and request the information through the FDA Federal-State relations division, there are no mandates that require the information be provided; therefore no guarantee that DPH would receive the information requested. In addition, DPH has enforcement authority to inspect and have access to any record, file, paper, process, control, and facility that has a bearing on whether the cosmetic is adulterated, misbranded or falsely advertised. 5)Previous legislation . AB 1879 (Feuer and Huffman), Chapter 559, Statutes of 2008, requires the Department of Toxic Substances Control (DTSC), by January 1, 2011, to establish a process to identify, evaluate, and prioritize chemicals and chemical ingredients in products that may be considered a "chemical of concern." AB 1879 also authorizes DTSC to take a range of regulatory actions to limit exposure to chemicals of concern. Additionally, AB 1879 requires DTSC to establish a Green Ribbon Science Panel to advise them on technical and scientific matters and establish a procedure for the protection of information that is claimed to be a trade secret. The proposed regulations from November 2010 have been withheld from submission to the Office of Administrative Law and are being reconsidered. SB 509 (Simitian), Chapter 560, Statutes of 2008, requires DTSC, by January 1, 2011, to establish a Toxics Information Clearinghouse, a decentralized, Web-based system for the AB 237 Page 4 collection, maintenance, and distribution of information on chemicals used in daily life. SB 509 also requires the Office of Health Hazard Assessment (OEHHA), by January 1, 2011, to evaluate and specify hazard traits and environmental and toxicological end-points for the Clearinghouse. DTSC is required to evaluate and prioritize the chemicals using the criteria provided by OEHHA. AB 595 (Dymally) of 2007 contained substantially similar provisions to this bill and was held on suspense in the Senate Appropriations Committee. SB 484 (Migden), Chapter 729, Statutes of 2006, the California Safe Cosmetics Act, requires cosmetic manufacturers to provide DPH with a complete and accurate list of its cosmetic products that, as of the date of submission, are sold in the state and contain any ingredient that is a chemical identified as causing cancer or reproductive toxicity, as specified. DPH launched an online reporting system on June 15, 2009. Companies subject to reporting under the Safe Cosmetics Act were initially required to submit all reportable cosmetic products by December 15, 2009, however compliance with the law has not been completed by all companies. As of December 2010, DPH had identified 791 chemicals that meet the burden of proof required for mandatory reporting under the California Safe Cosmetic Act. AB 2025 (Chu) of 2004 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 the 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 hearing was cancelled at the request of the author. AB 237 Page 5 6)SUPPORT . The Personal Care Products Council states that this bill is important as it will provide DPH with additional tools necessary to protect consumers. The American Congress of Obstetricians and Gynecologists, District IX - California (ACOG) writes in support that this bill will provide accountability and transparency for cosmetic products sold in California. ACOG states that the National Institute of Occupational Safety and Health found 884 chemicals used in personal care products and cosmetics known to be toxic and that this bill will give DPH new authority to request ingredient data from cosmetic manufacturers who fail to voluntarily report under the VCRP. Estée Lauder Companies and the Professional Beauty Federation of California, also in support, write that this bill will help ensure the safety of products sold in California by cosmetic manufacturers. 7)OPPOSITION . The Breast Cancer Fund writes that should California adopt this bill, fragrances and flavorings will be exempt from disclosure due to the federal law, which will reverse the positive precedent set by the California Safe Cosmetics Act and represents a step backward on the road to full ingredient transparency. 8)POLICY CONCERNS . a) The author and the sponsor write that this bill is a consumer protection measure. Specifically the background material provided by the author states that this bill will provide "new accountability and transparency for cosmetics products." However, it is unclear how this bill, as currently drafted, would accomplish this. As stated above, the VCRP is a program meant to notify companies if it is determined that a cosmetic ingredient is harmful and should be removed from product use. This bill places no such requirement on DPH, nor does it require DPH to publically report the information. It is unclear what DPH would use the information for. b) This bill would permit DPH to require cosmetic companies who have not reported ingredients under the VCRP to report that information. However, DPH states that they have no mechanism, regulatory or otherwise, to identify all cosmetic manufacturers in California. Therefore, while DPH can determine which companies have voluntarily reported under the VCRP, they could not compare that to a list of AB 237 Page 6 all companies to determine which were not reporting. Additionally, this bill would apply to any cosmetic manufacturer, regardless of whether or not it sells products in California. If the author's intent is to simply compile a list of cosmetic ingredients from companies not already reporting to the VCRP, this bill should be amended to require cosmetic companies who do not participate in the VCRP to report ingredient information as follows: 111821.The State Department of Public Health may, within existing resources, requireany manufacturer of cosmetic products is sold in this state that does not currently comply with the applicable parts of the federal Food and Drug Administration Voluntary CosmeticReportingRegistration Program, set forth in Parts 710 and 720 of Title 21 of the Code of Federal Regulations, toshall providetothe department with informationof the same kind disclosedisclosed through the federal Food and Drug Administration Voluntary CosmeticReportingRegistration Program. REGISTERED SUPPORT / OPPOSITION : Support Personal Care Products Council (sponsor) American Congress of Obstetricians and Gynecologists, District IX - California Estée Lauder Companies Professional Beauty Federation of California Opposition Breast Cancer Fund Analysis Prepared by : Melanie Moreno / HEALTH / (916) 319-2097