BILL ANALYSIS Ó AB 237 Page 1 Date of Hearing: May 18, 2011 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair AB 237 (Galgiani) - As Amended: May 10, 2011 Policy Committee: HealthVote:13-1 Urgency: No State Mandated Local Program: No Reimbursable: No SUMMARY This bill requires certain manufacturers of cosmetics sold in California to disclose their ingredients. Specifically, this bill: 1)Requires any manufacturer of cosmetic products sold in California that does not currently comply with a voluntary federal cosmetic ingredients reporting program to provide similar information as that disclosed to the federal program, to the Department of Public Health (DPH). 2)Requires DPH to post on its website notifications by the FDA which identify unsafe ingredients that should be removed from cosmetics subject to these reporting requirements. 3)Requires the program to be conducted within existing resources. FISCAL EFFECT 1) Costs to DPH, likely between $50,000 and $100,000, to receive reports and perform related activities. 2) The bill specifies that it shall be implemented within existing resources only. However, the bill's provisions require increased workload to the department, which would result in General Fund cost pressure to fund these activities. COMMENTS AB 237 Page 2 1)Rationale . 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)Background . The Voluntary Cosmetic Reporting Program (VCRP) is an FDA post-market voluntary reporting system for use by manufacturers, packers, and distributors of cosmetic products in the United States. Companies voluntarily submit information about cosmetic ingredients and this information is used by an independent scientific panel to determine priorities for safety review. The Food and Drug Branch within DPH regulates food, drugs, medical devices, cosmetics and certain other consumer goods under the Sherman Food, Drug, and Cosmetic Act. The Sherman Act addresses the packaging, labeling, and advertising of consumer goods. 3)Related Legislation . AB 595 (Dymally) of 2007 contained 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. Analysis Prepared by : Lisa Murawski / APPR. / (916) 319-2081