BILL ANALYSIS                                                                                                                                                                                                    



                                                                     AB 708


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          Date of Hearing:  April 21, 2015


                   ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS


                                Susan Bonilla, Chair


          AB 708  
          Jones-Sawyer - As Amended April 14, 2015


          SUBJECT:  Consumer products:  content information.


          SUMMARY:  Requires the manufacturer of a designated consumer  
          product manufactured after July 1, 2016, for retail sale in  
          California, to disclose each ingredient contained in the product  
          on the product label, and on the manufacturer's website, as  
          specified.  


          EXISTING LAW:


          Federal Law


          1)Establishes the Federal Food, Drug, and Cosmetic Act, giving  
            authority to the U.S. Food and Drug Administration (FDA) to  
            oversee the safety of food, drugs, and cosmetics.  (21 U.S.C.  
            Sec. 301 et seq.)


          2)Establishes the Fair Packaging and Labeling Act (FPLA) which  
            directs the Federal Trade Commission and the FDA to issue  
            regulations requiring all "consumer commodities" be labeled to  
            disclose net contents, identity of commodity, and name and  








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            place of business of the product's manufacturer, packer, or  
            distributor.  (15 USC Sec. 1451 et seq.)


          3)Establishes the Toxic Substances Control Act (TSCA) which  
            granted the Federal Environmental Protection Agency the  
            authority to create a regulatory framework to collect data on  
            chemicals in order to evaluate, assess, mitigate, and control  
            risks that may be posed by their manufacture, processing, and  
            use.  (15 U.S.C. Sec. 2601 et seq.)



          California Law


          1)Establishes the California Safe Cosmetic Act (CSCA) of 2005,  
            which requires the manufacturer, packer, or distributor named  
            on a product label to provide to the California Safe Cosmetics  
            Program in the Department of Public Health (DPH) a list of all  
            cosmetic products that contain any ingredients known or  
            suspected to cause cancer, birth defects, or other  
            reproductive harm.  (Health and Safety Code (HSC) Section  
            111791 et seq.)


          2)Requires the Department of Toxic and Substance Control, (DTSC)  
            on or before January 1, 2011, to adopt regulations to  
            establish a process to identify and prioritize those chemicals  
            or chemical ingredients in consumer products that may be  
            considered as being a chemical of concern, as specified, and  
            requires the DTSC to establish an identification and  
            prioritization process that includes, but is not limited to,  
            all of the following considerations: the volume of the  
            chemical in commerce in this state; the potential for exposure  
            to the chemical in a consumer product; and the potential  
            effects on sensitive subpopulations, including infants and  
            children.  (HSC Section 25252)









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          3)Establishes the Safe Drinking Water and Toxic Enforcement Act  
            of 1986, (Proposition 65), which requires the State to publish  
            a list of chemicals known to cause cancer or birth defects or  
            other reproductive harm and must be updated at least once a  
            year.  (HSC Section 25249.5 et seq.)




          THIS BILL:


          1)Defines a "chemically formulated consumer product" to mean a  
            consumer product that is manufactured from chemicals or  
            chemical compounds to be used by household, institutional,  
            commercial, and industrial consumers without further  
            processing for specific purposes where dilution by the  
            consumer is not considered further processing.

          2)Defines a "consumer product" as a product or part of the  
            product that is used, brought, or leased for use by a person  
            for any purposes, as specified. 


          3)Defines "designated consumer product" to mean any product  
            included in the following categories:


             a)   "Air care product" means a chemically formulated  
               consumer product designed, or labeled to indicate that the  
               purpose of the product is, to mask odors or to freshen,  
               clean, scent or deodorize the air;


             b)   "Automotive product" means a chemically formulated  
               consumer product designed, or labeled to indicate that the  
               purpose of the product is, to maintain the appearance of a  
               motor vehicle, as specified, including products for  








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               washing, waxing, polishing, cleaning, or treating the  
               exterior or interior surfaces of motor vehicles, but does  
               not include automotive paint or paint repair products;


             c)   "Cleaning product" means a soap, detergent, or other  
               chemically formulated consumer product designed, or labeled  
               to indicate that the purpose of the product is, to clean or  
               disinfect surfaces, including, but not limited to, floors,  
               furniture, countertops, showers and baths, or other hard  
               surfaces, such as stovetops, microwaves, and other  
               appliances, fabric care, or dish or other ware washing;  
               and, 


             d)   "Polish or floor maintenance product" means a chemically  
               formulated consumer product, such as polish, wax, or a  
               restorer designed, or labeled to indicate that the purpose  
               of the product is, to polish, protect, buff, condition,  
               temporarily seal, or maintain furniture, floors, metal,  
               leather, or other surfaces.  


          4)Defines "ingredient" to mean "a chemical in a designated  
            consumer product."


          5)Defines a "manufacturer" to mean "a person or entity that  
            manufactures, assembles, produces, packages, repackages, or  
            relabels a designated consumer product that is sold,  
            distributed, or used in this state."


          6)Requires the manufacturer of a designated consumer product  
            manufactured after July 1, 2016, for retail sale in this  
            state, to disclose each ingredient contained in the product on  
            the product label and post the product ingredient information  
            on the manufacturer's Internet website, and provide the  
            Internet website and page address on the label of the  








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            designated product along with a statement directing the  
            consumer to the Internet website for information concerning  
            ingredients contained in the product.  


          7)Requires each ingredient contained in the designated consumer  
            product to be listed on the product label in order of weight,  
            as measured by the ingredient's percentage weight of the total  
            weight of all ingredients in the product, and authorizes  
            ingredients present at one percent or less of the total weight  
            to be listed in any order.


          8)States that manufacturers do not have to list the weight of  
            any ingredient.


          9)Requires ingredients in a designated consumer product to be  
            identified by the Chemical Abstract Service (CAS) number and  
            either the Consumer Specialty Products Association (CSPA)  
            Consumer Product Ingredients Dictionary name or the  
            International Nomenclature Cosmetic Ingredient name, and if  
            there is no specified name, requires the ingredients to be  
            identified by the CAS number and the International Union of  
            Pure Applied Chemistry name, and if those names are not  
            available, requires the product to be identified by the CAS  
            number and common chemical name.


          10)Requires the manufacturer, when identifying an ingredient  
            name, to also identify which of the nomenclature references  
            were used for ingredient identification.


          11)Requires each ingredient to have an explanation and purpose  
            for being on the designated consumer product on the  
            manufacturer's Internet website.










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          12)Requires the disclosure information to be in a type size no  
            smaller than 6-point font.


          13)Provides that no reimbursement is required by this bill  
            pursuant to Section 6 of Article XIIB of the California  
            Constitution because the only costs that may be incurred by a  
            local agency or school district will be incurred because this  
            act creates a new crime or infraction, eliminates a crime or  
            infraction, or changes the penalty for a crime or infraction.


          FISCAL EFFECT:  Unknown.  This bill is keyed fiscal by the  
          Legislative Counsel.   


          COMMENTS:



          1)Purpose.  This bill is sponsored by the  Environmental Working  
            Group  and the  Breast Cancer Fund  .  According to the author,  
            "Cleaning product manufacturers through advertisements  
            encourage consumers and business owners to keep their homes  
            and workplaces clean and fresh using their products.  But  
            what isn't well known is that our culture for cleaning leads  
            to frequent and repeated exposure to toxic chemicals that may  
            harm Californians.  However, unlike food, cosmetics, and  
            drugs, most cleaning product manufacturers are not required  
            to disclose ingredients.  Absent any state mandate for  
            ingredient disclosure, consumers are left in the dark when it  
            comes to purchasing cleaning products they feel are safe for  
            them, their families, or their workers."

            "Disproportionately low-wage workers, women, immigrants, and  
            people of color work in much needed service industries that  
            require complex and often hazardous cleaning solutions.   
            However, all ingredients are not always listed on the labels.   
            [This bill] would require that manufacturers clearly identify  








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            ingredients in common household products, particularly  
            cleaning products, air care products, automotive products, and  
            floor maintenance products. By being open and transparent,  
            consumers can make an informed choice about the types of  
            products they want to buy and use in their households and  
            local businesses."


          2)Background.  Beginning July 1, 2016, this bill will require  
            designated consumer cleaning products manufactured for sale in  
            California to include a list of the product's ingredients on  
            the product label along with a link to the manufacturer's  
            website where consumers will also be able to find the relevant  
            list of product ingredients.  This bill is specifically  
            targeting "cleaning products," including commercial and  
            consumer-household products, which are not required to  
            disclose product ingredients under current disclosure laws,  
            unlike personal care products and food.  


            Similar Federal Legislation.  Last year, Representative Steve  
            Israel (NY) introduced the "Cleaning Product Right to Know Act  
            of 2014," which would have required a cleaning product  
            manufactured or offered for sale, distributed in commerce, or  
            imported into the United States to bear a label listing each  
            of its ingredients and would have allowed the Consumer Product  
            Safety Commission (Commission) to exempt certain products from  
            labeling requirements, including those ingredients found at  
            such a low level detection is not technically possible, or  
            providing five-year exemption periods for ingredients that a  
            manufacturer would deem to be a trade secret.  In addition,  
            the legislation would have required the manufacturer to make  
            available on its website a complete list of ingredients, among  
            other provisions.  However, the federal legislation did not  
            move, and according to the author's office there is not a  
            similar federal law pending.   


            Need for Product Label Disclosures.  A 2011 study, Dirty  








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            Secrets: What's Hiding in Your Cleaning Products?,  
            commissioned by Women's Voices for the Earth, conducted an  
            independent laboratory review of many household cleaning  
            products and reported that some of the ingredients in common  
            household products contain reproductive toxins and allergens,  
            yet none of those chemicals were listed on the product's  
            ingredient label.  Further, the Environmental Working Group  
            created a "Guide to Healthy Cleaning," which reviewed the  
            chemical ingredients of many cleaning products, and noted,  
            "its researchers discovered that it took hard work to find out  
            what potentially toxic chemicals were in them. Unlike  
            manufacturers of cosmetics and personal care products,  
            companies that make cleaning products are not required to list  
            the ingredients they put in their formulations on the package,  
            bottle or box?just seven percent of cleaning products  
            adequately disclosed their contents."  


            Further, the Work-Related Asthma Prevention Program,  
            established at the Department of Public Health, tracks  
            information about workers with asthma in California, and helps  
            workers avoid getting asthma from their job.  The program  
            reported that nearly 10% of all work-related asthma cases were  
            caused by exposure to cleaning products.  Most of these cases  
            had new asthma that started only after they began work -  
            implying that the exposures caused their asthma.  The program  
            also reported that about one in five people (almost 20%) used  
            cleaning products directly, such as janitors.  The other 80%  
            of workers attributed their asthma symptoms to cleaning  
            products used nearby.  Many workplaces, like schools,  
            hospitals, and restaurants are places where everyone,  
            including children, can be affected by cleaning products.


            Federal law requires employers to make available to workers  
            and their representatives Safety Data Sheets (SDSs) (formerly  
            known as Material Safety Data Sheets or MSDSs) for each  
            substance which provides detailed information about chemical  
            hazards, their effects, how to prevent exposure and emergency  








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            treatment if an exposure occurs.  However, the SDSs are not  
            required to disclose all chemicals contained in the product.   
            While many household consumer products have SDSs for some of  
            their products, such as Proctor and Gamble's Tide products,  
            and Seventh Generation's products, they are not required for  
            consumer disclosure and manufacturers are not required to  
            disclose all of the products' ingredients.  In addition, not  
            all SDSs are easy to access and they are not required to be  
            provided in a standardized format across manufacturers.  This  
            bill would require the ingredients listed on the product label  
            to be no smaller than 6-point font.  


            Voluntary Ingredient Disclosures.  This bill would require  
            designated household products and industrial products,  
            including air care products utilized for freshening or  
            cleaning; automotive products such as washing or waxing  
            products (not paint or paint repair products);  cleaning  
            products including soaps, detergents, disinfectants, dishware  
            wash; and, polish or floor maintenance products, to disclose  
            to the consumer each ingredient contained in the consumer  
            products in order of weight, except for those ingredients  
            under one percent of the total weight of all ingredients.  The  
            weight of each ingredient would not be required to be  
            disclosed.  In addition to labeling the ingredients on the  
            product, this bill also requires the manufacturer to list the  
            product ingredients on their website and provide on the label  
            a website address and a statement directing the consumer to  
            the website.  Currently, a number of household product  
            manufacturers list a product's ingredient on their website.  


            As part of a voluntary effort undertaken by industry  
            representatives, the Consumer Product Ingredient Initiative  
            provides a voluntary framework for industry members to comply  
            with voluntary ingredient disclosure.  According to the CSPA,  
            the industry-led initiative will help consumers make more  
            informed choices about the products they use in and around  
            their homes.  Member companies, working with other industry  








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            trade organizations, developed the initiative for four product  
            categories, including: 1) air care, 2) automotive care, 3)  
            cleaning, and 4) polish and floor maintenance products.   
            However, the voluntary initiative suggests that participating  
            groups have the option to provide the ingredient list on the  
            product label, on the manufacturer's website, by phone, or  
            some other electronic means.  This bill would require that  
            ingredients are to be posted on both the product label and the  
            manufacturer's website.  


            As noted by the author, there are a number of companies who  
            are complying with the voluntary initiative by making product  
            ingredient information available to consumers. However, it is  
            unclear the number of participating companies who comply with  
            the voluntary initiative as there is no a formal list of  
            participants.  Concerns have been raised with the voluntary  
            program as it is not consistent amongst companies, because  
            ingredients may be disclosed over the phone, via a website or  
            on the product label directly.  Further, because it is  
            voluntary, companies could chose to omit certain ingredients.   
            Lastly, voluntary ingredient disclosures don't always contain  
            the product ingredients contained in the various "fragrances"  
            which are related to a products unique smell.  According to  
            some industry groups, the chemical elements of "fragrances"  
            are often considered proprietary information or "trade  
            secrets."  This bill attempts to address this issue by  
            allowing ingredients found in concentrations under one percent  
            to be listed in any order and not by weight.  


            Federal Regulations.  Federal laws regulate numerous consumer  
            products.  Regulations are done through a diverse array of  
            federal regulatory entities as products are regulated through  
            different regulatory mandates.  For example, the Fair  
            Packaging and Labeling Act (FPLA) requires each package of  
            household consumer commodities that is included under the FPLA  
            to contain a label which bears a statement identifying the  
            commodity (like detergent), the name and place of business of  








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            the manufacturer, packer or distributor, and the net quantity  
            of contents in terms of weight, measure or numerical count.   
            The Commission is charged with protecting the public from  
            unreasonable risks of injury or death associated with the use  
            of the thousands of types of consumer products under the  
            agency's jurisdiction.  The EPA regulates some of the  
            pesticides for sale in the U.S., while the Federal Hazardous  
            Substances Act (Act) requires precautionary labeling on the  
            immediate container of hazardous household products to help  
            consumers safely store and use those products and to give them  
            information about immediate first aid steps to take if an  
            accident happens.  The Act also allows the Commission to ban  
            certain products that are so dangerous or if the nature of the  
            hazard is so severe that labeling is not adequate to protect  
            consumers.  As each regulatory agency has a mission with  
            respect to consumer products, there is no federal mandate that  
            requires a household consumer product to list all of its  
            ingredients.  The closest requirements may be found under  
            pesticide regulations, which have stringent reporting  
            requirements under the EPA.  



            California Disclosure Requirements.  Product information and  
            labeling requirements are not new to California.  The  
            California Safe Cosmetics Act (CSCA) requires manufacturers,  
            packers, and distributors of cosmetic products to report to  
            the Department of Public Health (DPH) all products sold in  
            California on or after January 1, 2007, which contain  
            ingredients known or suspected to cause cancer, birth defects,  
            or other reproductive harm, and makes this information  
            available to the public.  However, only those companies making  
            one million dollars or more in aggregate sales of those  
            cosmetic products within and outside of California are  
            required to report.  Subsequently, the California Safe  
            Cosmetics Program (CSCP) was established to implement the  
            CSCA. 










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            Food labeling is also required.  Certain label information  
            such as the responsible firm's name and address and ingredient  
            declaration is required while other information may be  
            voluntarily displayed.  

            Green Chemistry.  AB 1879 (Feuer and Huffman), Chapter 559,  
            Statutes of 2008, established the "Green Chemistry" Law.  In  
            an effort to provide better awareness about the ingredients in  
            household products, the law authorizes and requires the  
            Department of Toxic Substances Control (DTSC) to adopt  
            regulations to establish a process to identify and prioritize  
            chemicals in consumer products and to establish a process for  
            evaluating chemicals of concern in consumer products and their  
            potential alternatives.  The objective of Green Chemistry is  
            to evaluate certain chemicals within consumer products that  
            are known to be of concern and for DTSC to provide input and  
            make recommendations for safer alternatives.  The Green  
            Chemistry program does not mandate or specify labeling  
            requirements for consumer products.  This bill does not  
            require or recommend that manufacturers use alternative  
            products, but instead disclose the ingredients of the products  
            on the product label and on the manufacturer's website. 


          3)Prior Related Legislation.  SB 928 (Simitian) of 2010, would  
            have required manufacturers to disclosure the chemical content  
            of specified types of cleaning products sold in California.   
            NOTE: This bill was held in the Assembly Appropriations  
                                                                          Committee.  


          ARGUMENTS IN SUPPORT: 


          The  Environmental Working Group  writes in support, "Unlike food  
          and cosmetic products, current law does not require  
          manufacturers to disclose the ingredients in cleaning products  
          to consumers or workers. While some companies are beginning to  
          disclose cleaning product ingredients, many chemicals remain  








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          hidden, particularly those that are found in fragrances.  
          Consumers who want to make educated purchases are often in the  
          dark when it comes to how to purchase safe cleaning products.  
          California's own Department of Public Health has come out with  
          recommendations for using "green" cleaning products in schools  
          to help protect children, teachers, and workers.  [This bill]  
          would help everyone discover what is in their cleaning product  
          so that they can avoid an ingredient that they know is affecting  
          their health now or in the future."


          The  Breast Cancer Fund  writes in support, "Current law does not  
          require manufacturers to disclose the ingredients in cleaning  
          products to consumers or workers.  While some companies are  
          beginning to disclose cleaning product ingredients, many  
          chemicals remain hidden, particularly those that are found in  
          fragrances.  Consumers who want to make educated purchases are  
          often in the dark when it comes to how to purchase safe cleaning  
          products."


          The  Service Employees International Union  writes in support,  
          "[This bill will give workers the information they need to be  
          aware of the risks and dangers associated with handling the  
          dangerous ingredients in cleaning products."


          The  California Teamsters Public Affairs Council  writes in  
          support, "The Teamsters support this measure because many of our  
          members are exposed to cleaning products every day at the  
          worksite.  Despite the evidence that chemical exposure is a  
          serious hazard to the health and safety of workers, the law does  
          not require manufacturers to disclose the ingredients of  
          cleaning products on the label."


          ARGUMENTS IN OPPOSITION:










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          The  California Chamber of Commerce ,  Alliance of Automobile  
          Manufacturers  ,  Association of Home Appliance Manufacturers  ,  
           American Chemistry Council  ,  American Coatings Association  ,  
           California Paint Council  ,  California Pool & Spa Association  ,   
          California Manufacturers & Technology Association  ,  California  
          Retailers Association  ,  Chemical Industry Council of California  ,  
           National Federation of Independent Businesses  ,  Pharmaceutical  
          Researchers and Manufacturers of America (PhRMA  ), and  SPI: The  
          Plastics Industry Trade Association  write in opposition, "One of  
          the most troubling aspects of [this bill] is that it fails to  
          provide protection of confidential business information (CBI).   
          The promise of safer consumer products depends utterly on the  
          protection of CBI."


          The  International Fragrance Association, North America  , is  
          opposed unless amended and writes, "IFRA North America's chief  
          concern with [this bill] is its lack of protections for  
          intellectual property.  Protection of intellectual property is  
          critical to the success of industries highly invested in  
          research and development and is recognized and protected under  
          several federal and state statutes and programs such as the  
          Federal, Food Drug and Cosmetic Act, [EPA's] Safer Choice  
          Program and the [CSCA]."  



          POLICY ISSUES FOR CONSIDERATION: 


          The CSCP mandates the DPH to collect information on hazardous  
          and potentially hazardous ingredients in cosmetic products sold  
          in California and make the information available to the public  
          in a manner that will allow consumers to check those product  
          ingredients against a list of harmful ingredients listed on the  
          DPH's website.  This bill, as currently written, does not  
          provide a similar mechanism which would allow a consumer to be  
          able to compare chemical ingredients against a known list of  
          harmful chemical ingredients.  The author may wish to consider  








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          adding a provision to this bill that would provide consumers  
          with the appropriate resources to understand chemical  
          ingredients by, for example, including a reference to a  
          repository of easily accessible information where consumers can  
          find out about household product chemicals which may or may not  
          be of concern.   

          This bill would also require that ingredients must be disclosed  
          on the product label along with a link to the manufacturer's  
          website and a statement directing consumers to the website.  As  
          noted earlier, this bill requires all ingredients to be listed,  
          no matter what percent or fraction of a percent an ingredient  
          might represent relative to the entire weight of ingredients.   
          In the event that an ingredient list may be extremely long, the  
          author may wish to consider providing an exemption for  
          ingredient labels on products (but not on the website) when an  
          ingredient list is over a certain amount of ingredients which  
          may impede a consumer's ability to read the list of ingredients.  
           In addition, this bill requires the product labels to be in a  
          type size no less than six-point.  The author may wish to  
          explain the need to dictate the font size for labels as its  
          creating a standardized format for portions of the label but not  
          all.  


          As written, this bill would require manufacturers to comply with  
          the product labeling requirement by July 1, 2016.  This would  
          allow manufacturer's approximately six months or less to  
          possibly repackage many products.  In order to provide industry  
          with an appropriate amount of time to comply with the  
          requirements of this bill and ensure products are properly  
          labeled, the author may wish to consider a phase-in approach  
          such as beginning July 1, 2016, but no later than December 31,  
          2016. 


          REGISTERED SUPPORT:










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          Environmental Working Group (sponsor)


          Breast Cancer Fund (sponsor)


          Alameda County Department of Environmental Health 


          Alliance of Nurses for Healthy Environments


          American Lung Association in California


          Ava Anderson


          Black Women for Wellness


          BlueGreen Alliance


          Breast Cancer Action


          California Conference of the Amalgamated Transit Union


          California Conference of Machinists


          California Healthy Nail Salon Collaborative










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          California Labor Federation


          California League of Conservation Voters


          California School Employees Association


          California Teamsters Public Affairs Council 


          Californians for a Healthy and Green Economy


          CALPIRG


          Center for Environmental Health


          Clean Water Action


          Coalition for Clean Air


          Communication Workers of America, District 9


          Consumer Federation of California


          Dolores Street Community Services 


          Earth Mama & Angel Baby Organics










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          Engineers and Scientists of California


          Instituto de Educacion Popular del Sur de California


          International Longshore & Warehouse Union


          Molly's Suds


          Mujeres Unidas y Activas


          National Council for Occupational Safety and Health


          Natural Resources Defense Council


          Pesticide Action Network, North America


          Physicians for Social Responsibility, Los Angeles


          Planet Inc.


          Professional and Technical Engineers


          Regional Asthma Management and Prevention


          San Francisco Bay Area Physicians for Social Responsibility










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          San Francisco Day Labor Program and Women's Collective


          SEIU California


          Seventh Generation


          Shecology


          Sierra Club California


          Silent Spring Institute


          The Honest Company


          The Keep a Breast Foundation


          Thrive Market


          Teens Turning Green


          United Steel Workers, District 12


          UNITE-HERE, AFL-CIO


          Utility Workers Union of America










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          Women's Voices for the Earth


          Worksafe


          Two individuals




          REGISTERED OPPOSITION:


          Alliance of Automobile Manufacturers
          American Chemistry Council 
          American Coatings Association
          Association of Home Appliance Manufacturers
          California Chamber of Commerce 
          California Manufacturers & Technology Association 
          California Paint Council
          California Pool & Spa Association
          California Retailers Association 
          Chemical Industry Council of California
          National Federation of Independent Businesses
          Pharmaceutical Researchers and Manufacturers of America (PhRMA)
          Specialty Equipment Market Association


          SPI: The Plastics Industry Trade Association
          The American Cleaning Institute


          Southwest California Legislative Council


          Consumer Specialty Products Association (oppose unless amended)










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          International Fragrance Association, North America (oppose  
          unless amended)


          Two individuals







          Analysis Prepared by:Elissa Silva / B. & P. / (916) 319-3301