BILL ANALYSIS Ó AB 708 Page 1 Date of Hearing: April 28, 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 place of business of the product's manufacturer, packer, or distributor. (15 USC Sec. 1451 et seq.) AB 708 Page 2 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) 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.) AB 708 Page 3 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 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 AB 708 Page 4 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 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 AB 708 Page 5 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. 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. AB 708 Page 6 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 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 AB 708 Page 7 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 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, AB 708 Page 8 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 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. AB 708 Page 9 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 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 AB 708 Page 10 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 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 AB 708 Page 11 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. 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 AB 708 Page 12 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 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 AB 708 Page 13 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: 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." AB 708 Page 14 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]." AUTHOR'S AMENDMENTS: In an effort to address some of the issues raised in the previous committee analysis of this bill as well as some of the issues raised during the April 21, 2015 committee hearing where this measure was heard, but not voted upon, the author will be taking amendments to: 1) make it clear that the provisions of this measure do not apply to home appliances; 2) allow a phase-in date for manufactures to comply with the requirements of this bill, which will stipulate that products manufactured after July 1, 2016 but not later than December 31, 2016 will be required to provide the specified labeling information; 3) reduce the amount of product ingredients that are required to be provided on the label from "all ingredients" to the "20 most prevalent ingredients" and require the manufacturer on the product label to specify the number of remaining ingredients and state that they are available on the manufacturer's website, except if the product contains ingredients listed on a specified chemical hazard database, those ingredients would need to be included on the label; 4) delete any reference to font size specifications; and 5) require a manufacturer to list any chemicals on the product label which are found on any of the specified chemical hazard databases, including the Safer Consumer Product Regulations, and the Household Products Database. AB 708 Page 15 The author seeks to provide the following amendments to this bill to achieve the aforementioned goals: On page 2, line 16, after "252251." Insert: but does not include home appliances . On page 3, line 22, strike:after July 1, 2016, and insert: beginning July 1, 2016, but no later than December 31, 2016, On page 3, in line 32, after "the" insert: twenty most prevalent after "ingredient" strike:present at concentrations of more than 1 percentOn page 3, in line 35, after "product" insert: If there are more than twenty ingredients, the label shall state the number of remaining ingredients and that they are available at the manufacturer's website, except that if the product contains any additional ingredients listed on any of the chemical hazard databases listed below, that ingredient must also be listed on the label On page 3, in line 35, after "product" strike:ingredients present at concentrations of 1 percent or less may be listed in any order.On page 4, strike lines 18 and 19 inclusive. On page 4, after "Web site" insert: (d) If the product contains any chemicals listed on any of the chemical hazard databases listed below, the manufacturer shall post on the website a statement that additional information about any potential health AB 708 Page 16 impacts of the ingredients may be obtained from the following websites and post a link to the website: (1) Safer Consumer Products Regulations - Informational List of Candidate Chemicals and Chemical Groups at the California Department of Toxic Substances Control (2) The Household Products Database - U.S. Department of Health & Human Services. REGISTERED SUPPORT: 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 Machinists California Conference of the Amalgamated Transit Union California Healthy Nail Salon Collaborative 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 Children's Defense Fund-California Clean Water Action Coalition for Clean Air Communication Workers of America, District 9 AB 708 Page 17 Consumer Federation of California Dolores Street Community Services Earth Mama & Angel Baby Organics 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 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 Women's Voices for the Earth Worksafe Two individuals REGISTERED OPPOSITION: Alliance of Automobile Manufacturers AB 708 Page 18 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 Grocery Manufactures Association 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) International Fragrance Association, North America (oppose unless amended) Two individuals Analysis Prepared by:Elissa Silva / B. & P. / (916) 319-3301