BILL ANALYSIS                                                                                                                                                                                                    



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          ASSEMBLY THIRD READING


          AB  
          708 (Jones-Sawyer)


          As Amended  June 2, 2015


          Majority vote


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          |Committee       |Votes |Ayes                 |Noes                 |
          |                |      |                     |                     |
          |                |      |                     |                     |
          |----------------+------+---------------------+---------------------|
          |Business &      |8-6   |Bonilla, Bloom,      |Jones, Baker, Chang, |
          |Professions     |      |Burke, Eggman,       |Dodd, Gatto, Wilk    |
          |                |      |Holden, Mullin,      |                     |
          |                |      |Ting, Wood           |                     |
          |                |      |                     |                     |
          |----------------+------+---------------------+---------------------|
          |Appropriations  |9-5   |Gomez, Bonta,        |Bigelow, Chang,      |
          |                |      |Eggman, Eduardo      |Gallagher, Jones,    |
          |                |      |Garcia, Gordon,      |Wagner               |
          |                |      |Holden, Quirk,       |                     |
          |                |      |Rendon, Weber        |                     |
          |                |      |                     |                     |
          |                |      |                     |                     |
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          SUMMARY:  Requires the manufacturer of a designated consumer  
          product manufactured after July 1, 2017, for retail sale in  
          California, to disclose the 20 most prevalent ingredients  
          contained in the product on the product label and on the  
          manufacturer's Web site, as specified, including information if  








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          the product has more than 20 ingredients, and requires the  
          manufacturer to list any ingredient found on the list of candidate  
          chemicals, as specified, on the product label.  Specifically, 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, but does not include home appliances. 


          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  
               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, 








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             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, 2017, 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 Web site, and provide the Internet Web  
            site and page address on the label of the designated product  
            along with a statement directing the consumer to the Internet  
            Web site for information concerning ingredients contained in the  
            product.  


          7)Requires the 20 most prevalent ingredients 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.


          8)Specifies that if there are more than 20 ingredients, the label  
            must state the number of remaining ingredients and that they are  
            available at the manufacture's Internet Web site, except that if  
            the product contains any additional ingredient listed on the  








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            informational list of candidate chemicals posted on the Internet  
            Web site of the Department of Toxic Substances Control (DTSC),  
            as specified, that ingredient must be listed on the label.


          9)States that manufacturers do not have to list the weight of any  
            ingredient in the product.


          10)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.


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


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


          13)Requires a manufacturer to provide a statement on their Web  
            site, if the product contains a chemical listed on the  
            informational list of candidate chemicals posted on the DTSC  
            Internet Web site, as specified, that additional information  
            about any potential health impacts of the ingredients may be  
            obtained from the Internet Web sites for the following, along  
            with the link to the Internet Web sites:









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             a)   The informational list of candidate chemicals posted on  
               the Internet Web site of the DTSC, as specified; and, 
             b)   The Household Products Database of the National Library of  
               Medicine. 


          EXISTING LAW:


          Federal Law


          1)Establishes the Federal Food, Drug, and Cosmetic Act, giving  
            authority to the United States Food and Drug Administration  
            (FDA) to oversee the safety of food, drugs, and cosmetics.  (21  
            United States Code (U.S.C.) Section 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 U.S.C. Section 1451 et seq.)


          3)Establishes the Toxic Substances Control Act 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. Section  
            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  








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            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 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)


            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.)


          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, annual costs to the DTSC of approximately $500,000 to  
          $800,000 to enforce the provisions of this bill.  Although this  
          bill does not require DTSC to enforce its provisions, DTSC assumes  
          it is required to enforce this bill because of the Health and  
          Safety Code in which the bill is placed, which includes  
          enforcement authority for DTSC.


          COMMENTS:



          Purpose.  This bill is sponsored by the Environmental Working  
          Group and the Breast Cancer Fund.  According to the author,  








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          "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."


          Background.  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.   
          Beginning July 1, 2017, this bill will require designated consumer  
          cleaning products manufactured for sale in California to include a  
          list of the product's 20 most prevalent ingredients on the product  
          label along with a link to the manufacturer's Web site where  
          consumers will also be able to find the relevant list of product  
          ingredients.  If there are more than 20 ingredients in a product,  
          the product label must include the number of additional  
          ingredients and state that the remaining ingredients are available  
          on the manufacturer's Web site.  In addition, this bill requires  
          the manufacturer's to include on the product label, any of those  
          chemicals that are found the DTSC's candidate chemical list.  










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          Similar Federal Legislation.  Last year, New York Representative  
          Steve Israel 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 Web  
          site 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, 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  








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          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.  


          Voluntary Ingredient Disclosures.  As part of a voluntary effort  
          undertaken by industry representatives, the Consumer Product  
          Ingredient Initiative provides a 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  








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          the manufacturer's Web site, 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 Web site.  


          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 Web site 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 does not require a manufacturer to  
          list the weight of an ingredient in the product.  


          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 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 United  
          States, 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  








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          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.  The 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 $1 million or  
          more in aggregate sales of those cosmetic products within and  
          outside of California are required to report.  Subsequently, the  
          California Safe Cosmetics Program 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), 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 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  








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          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 a specified number of the product's  
          ingredients on the product label and on the manufacturer's Web  
          site. 


          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  
          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  








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          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."


          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]."  








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          Analysis Prepared by:                                               
                          Kala Tailor / B. & P. / (916) 319-3301  FN:  
          0000883