BILL ANALYSIS Ó AB 708 Page 1 ASSEMBLY THIRD READING AB 708 (Jones-Sawyer) As Amended January 27, 2016 Majority vote ------------------------------------------------------------------- |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, Eggman, |Bigelow, Chang, | | | |Eduardo Garcia, |Gallagher, Jones, | | | |Gordon, Holden, |Wagner | | | |Quirk, Rendon, Weber | | | | | | | | | | | | ------------------------------------------------------------------- SUMMARY: Requires the manufacturer of a cleaning product manufactured after January 1, 2017, for retail sale in California, to disclose a full list of the product ingredients on the manufacturer's Web site, as specified, and requires the manufacturer to include a specified statement regarding any AB 708 Page 2 ingredient found on the list of candidate chemicals, as specified. Specifically, this bill: 1)Defines a "chemically formulated consumer product" to mean a product or part of the product that is used, brought, or leased for use by a person for any purpose, excluding home appliances, 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 "cleaning 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) "General 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 AB 708 Page 3 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. 3)Defines an "incidental ingredient" to mean a contaminant in or on feedstock, water, or processing equipment, or byproducts or intermediates unintentionally introduced during formulation, that are present at a level of 25 parts per million or more and have no technical or functional effect in the finished cleaning product. 4)Defines "ingredient" to mean a chemical intentionally added to a cleaning product or the intentional breakdown product of a chemical that has an effect on the cleaning product and specifies that "ingredient" does not include an incidental ingredient. 5)Defines a "manufacturer" to mean "a person or entity that manufactures, assembles, produces, packages, repackages, or relabels a cleaning product that is sold, distributed, or used in this state." 6)Requires the manufacturer of a cleaning product manufactured after January 1, 2017, for retail sale in this state, to disclose each ingredient contained in the product on the manufacturer's Internet Web site, and provide the Internet Web site and page address on the label of the cleaning product along with a statement directing the consumer to the Internet Web site for a full list of ingredients contained in the product. 7)Requires the ingredients disclosed on the manufacturers' Web site to be listed in descending order of predominance.AB 708 Page 48)States that manufacturers do not have to list the weight of any ingredient in the product on the label or on the Web site, and ingredients present at a concentration of not more than 1% may be listed without respect to order of predominance after the ingredients present at a concentration of more than 1%. 9)Requires ingredients to be listed by their Consumer Specialty Product Association (CSPA) Consumer Product Ingredients Dictionary name, or where this is not available, their International Nomenclature Cosmetic Ingredient (INCI) name, or where this not available, their International Union of Pure and Applied Chemistry (IUPAC) name, or where this is not available, the common chemical name and the Chemical Abstract Service (CAS) number.10)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: 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 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.) AB 708 Page 5 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.) EXISTING STATE 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 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) AB 708 Page 6 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, "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 AB 708 Page 7 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 January 1, 2017, this bill will require designated consumer cleaning products manufactured for sale in California to include on the product label, a link to the manufacturer's Web site where consumers will be able to find the relevant list of product ingredients. Similar Federal Legislation. In 2014, 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 AB 708 Page 8 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 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 AB 708 Page 9 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 the manufacturer's Web site, by phone, or some other electronic means. This bill would require that ingredients are to be posted on 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 AB 708 Page 10 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 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 cleaning 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 DPH all products sold in California on or after January 1, 2007, which contain ingredients known or suspected to AB 708 Page 11 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 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 full list of the product's ingredients on the manufacturer's Web site. Analysis Prepared by: Elissa Silva / B. & P. / (916) 319-3301 FN: 0002605 AB 708 Page 12