BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 237
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          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  :   








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           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 








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            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 








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            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.









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           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 








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               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, require  any 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 Cosmetic  Reporting  
                Registration  Program, set forth in Parts 710 and 720 of 
               Title 21 of the Code of Federal Regulations  , to   shall 
                provide  to  the department  with  information  of the same kind 
               disclose   disclosed  through the federal Food and Drug 
               Administration Voluntary Cosmetic  Reporting   Registration  
               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