BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session SB 763 (Leno) - Juvenile products: flame retardant chemicals ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: May 7, 2015 |Policy Vote: B., P. & E.D. 5 - | | | 2, E.Q. 6 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: Yes (see staff | | |comment) | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: May 28, 2015 |Consultant: Marie Liu | | | | ----------------------------------------------------------------- SUSPENSE FILE. AS AMENDED. Bill Summary: SB 763 would require a manufacturer of juvenile products sold in California to affix a permanent label on the product indicating whether the product has added flame retardant chemicals. This bill would also direct the Bureau of Electronic and Appliance Repair, Home Furnishing and Thermal Insulation Fund (bureau) to ensure compliance with the labeling and documents requirements. Fiscal Impact (as approved on May 28, 2015): Costs pressures, in the low hundreds of thousands of dollars, to the Home Furnishing and Thermal Insulation Fund (HFTI Fund, special) for the enforcement of these requirements, including testing for label accuracy. Background: Existing law establishes the Bureau of Electronic and Appliance Repair, Home Furnishings and Thermal Insulation (Bureau) within the Department of Consumer Affairs (DCA). The SB 763 (Leno) Page 1 of ? bureau is authorized to administer and enforce the Home Furnishings and Thermal Insulation Act (HFTI Act) that provides for the licensing and inspection of businesses that manufacture and sell upholstered furniture, bedding and thermal insulation. Pursuant to the HFTI Act, mattresses, box springs, and upholstered furniture are required in this state to be flame retardant. Existing law (BPC §19094) requires a manufacturer of upholstered furniture to indicate whether or not the product contains added flame retardant chemicals, as defined, by including a specified statement. This section requires manufacturers to retain documents, as specified and to provide that documentation to the bureau. The bureau has the authority to test for labeling accuracy and to assess fines for violations of the requirements or inaccurate labeling. Proposed Law: This bill would require the manufacturer of a juvenile product, as defined, that is sold in California to affix a permanent label on the product indicating whether the product has added flame retardant chemicals. Specifically, this bill would: Define a "juvenile product" as a nonexclusive list of products, including products such as bassinets, floor play mat, changing pad, infant car seat, nursing pillow, infant swing, and children's nap pads that do not have to meet federal flammability standards for mattresses. Define a "flame retardant chemical" with language that is consistent with the definition used for the labeling requirements for upholstered furniture. Require specific notification regarding flame retardants for juvenile products sold in California via a website or paper catalog. Require manufacturers of juvenile products sold in California to retain documentation indicating whether flame retardant SB 763 (Leno) Page 2 of ? chemicals were added. Requires, within 30 days of a request by the bureau, a manufacturer of a product sold in California to provide the Bureau with the documentation establishing the accuracy of the flame retardant chemical statement on the label. Requires the bureau to provide the California Department of Toxic Substances Control (DTSC) with samples of the product or components of the product sold in California from products marked "contains NO added flame retardant chemicals" for testing for the presence of added flame retardant chemicals. Requires DTSC to provide the results of all testing to the Bureau. Authorizes the bureau to issue citations and assess fines for violations of the above provisions, as specified. Fines for not affixing a label, regardless of the label's accuracy, would be assessed at the same level as other violations of the act. Provides that a manufacturer of juvenile products and component suppliers shall be jointly and severally liable for violations of these provisions, as specified. Authorizes the bureau to adopt regulations to carry out the provisions of the bill. Explicitly exempts juvenile products from flame retardant requirements for mattresses. Related Legislation: SB 1019 (Leno) Chapter 862, Statutes of 2014, required an upholstered furniture manufacturer to indicate on the product label whether or not a product contains added flame retardant chemicals. AB 1175 (Ridley-Thomas) would raise the licensure fees that support the HFTI Fund. SB 763 (Leno) Page 3 of ? Staff Comments: This bill authorizes, but does not require, the bureau to adopt regulations to carry out this bill. However the bureau does not believe it will need to adopt regulations based on its experience implementing SB 1019, which is the model for this bill. In implementing SB 1019, the bureau has found that the statutes provide sufficient detail so that additional regulations have not been necessary. As such, there are no costs or cost pressures associated with this provision. This bill will create cost pressures for the bureau's enforcement of the bill's labeling requirements, particularly for testing. As with SB 1019, the testing for enforcement purposes will be performed by DTSC. The bureau would be required to reimburse DTSC for its costs. Testing costs include equipment costs and the staff time to conduct the tests. To provide some context, DTSC estimates that it would cost approximately $150,000 to test 100 products annually. DTSC notes that while it has the capability of conducting these tests, it currently has no capacity to do so. Unless the bureau's enforcement budget increases, any testing of juvenile products will come at the expense of testing other products or other enforcement activities. Staff notes that the HFTI fund currently has a structural deficit in that its current fee structure does not provide enough funds to cover its current appropriations. Future appropriation requests for the bureau's enforcement activities could result in the need for future fee increases. Staff notes that because this bill is an expansion of the HFTI act, the bureau would be authorized to use the HFTI fund to pay for testing and other enforcement activities. However, the definition of juvenile products in this bill is very broad as the only defining requirement is that the product is not subject to federal mattress flammability requirements. The bill lists 21 specific products, but it is a nonexclusive list. There are many products that a person could conceivable consider a "juvenile product" colloquially that are not mattresses (ex: stuffed toys, a children's bike helmet with foam pads, a convertible car seat, etc.) and that are not are not under the bureau's existing jurisdiction. And at least one of the listed 21 products, a baby carrier that is worn by an adult, may also not be under the SB 763 (Leno) Page 4 of ? bureau's existing jurisdiction. Manufactures, retail sellers, and importers of products under the bureau's existing jurisdiction pay a license fee that supports the bureau's activities including enforcement. Staff believes it is questionable whether the HFTI fund should be used to enforce labeling requirements on products that are not made or sold by licensed entities. Staff notes that fees generally must be assessed on the whole regulated community but this bill could create entities that are required to have a label but not required to be licensed. This bill constitutes a state mandate as it creates a new crime. However, under the California Constitution, costs associated with this mandate are not reimbursable. Author amendments (as adopted on May 28, 2015): Amend to define juvenile products as products subject to the Home Furnishing and Insulation Act and intended for use by infants and children under 12 years of age. Committee amendments (as adopted on May 28, 2015): Amend to strike baby carriers that are worn by an adult from the list of specific products subject to the labeling requirements. -- END --