BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:   July 7, 2015


                   ASSEMBLY COMMITTEE ON BUSINESS AND PROFESSIONS


                                Susan Bonilla, Chair


                       SB 763(Leno) - As Amended June 19, 2015


          SENATE VOTE:  30-10


          NOTE:  This bill is double-referred, and if passed by this  
          Committee, it will be referred to the Assembly Environmental  
          Safety and Toxic Materials Committee. 


          SUBJECT:  Juvenile products:  flame retardant chemicals


          SUMMARY:  Requires a juvenile product manufacturer, as defined,  
          to include a label indicating whether the product has added  
          flame retardant chemicals, and requires the Bureau of Electronic  
          and Appliance Repair, Home Furnishings and Thermal Insulation  
          (Bureau) to ensure compliance with labeling and documentation  
          requirements, as specified.  


          EXISTING LAW:   


          1)Establishes the Home Furnishings and Thermal Insulation Act  
            (Act), administered by the Bureau within the Department of  
            Consumer Affairs (DCA).  The Bureau is under the supervision  
            and control of a Chief appointed by the Governor, and the  
            Chief is under the supervision and control of the Director of  








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            DCA.  (Business and Professions Code (BPC) § 19000 et seq.) 


          2)Provides for the licensing and inspection of businesses that  
            manufacture and sell upholstered furniture, bedding, and  
            thermal insulation.   (BPC § 19000 et seq.)
          3)Defines "seating furniture," including children's furniture,  
            movable or stationary, as any furniture made or sold with or  
            without filling material, together with the structural units,  
            which may be used as a support for the body, limbs, or feet  
            when sitting or resting in an upright or reclining position.   
            (BPC § 19006.1)


          4)Defines "bedding" as any quilted pad, packing pad, mattress  
            pad, hammock pad, mattress, comforter, quilt, sleeping bag,  
            box spring, studio couch, pillow or cushion made of leather,  
            cloth or any other material, which is or can be stuffed or  
            filled with any concealed substance or material, which can be  
            used by any human being for sleeping or reclining purposes.   
            (BPC § 19007)


          5)Requires all mattresses and box springs manufactured for sale  
            in this state to be fire retardant, as defined to meet the  
            federal standards for resistance to open-flame test, and  
            authorizes the Bureau to adopt regulations to implement those  
            standards.  (BPC § 19161) 


          6)Requires other bedding products to comply with regulations  
            adopted by the Bureau specifying that those products be  
            resistant to open-flame ignition.  (BPC § 19161) 


          7)Requires all seating furniture sold or offered for sale,  
            including any seating furniture sold to or offered for sale  
            for use in a hotel, motel, or other place of public  
            accommodation, and reupholstered furniture to which filling  








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            materials are added, to be fire retardant and labeled in a  
            manner specified by Bureau.  (BCP 19161)  


          8)Requires all flexible polyurethane foam, except as specified,  
            that is offered for retail sale to be fire retardant, and  
            defines "fire retardant" to mean a product that meets the  
            regulations adopted by the Bureau.  (BPC § 19161.3)


          9)Authorizes the Chief, subject to the approval of the Director  
            of DCA, to exempt items of upholstered furniture which are  
            deemed not to pose a serious fire hazard from the fire  
            retardant requirements.  (BPC § 19161.5) 


          10)Requires, pursuant to TB 117-2013, beginning January 1, 2015,  
            all filling materials and cover fabrics contained in  
            upholstered furniture sold in California to meet certain  
            smolder resistant testing standards, and to be labeled as  
            specified.  (Article 13, Division 3, Title 4, California Code  
            of Regulations § 1374)


          11)Exempts eighteen juvenile products (bassinets, booster seats,  
            car seats, changing pads, floor play mats, highchairs,  
            highchair pads, infant bouncers, infant carriers, infant  
            seats, infant swings, infant walkers, nursing pads, nursing  
            pillows, playpen side pads, playards, portable hook-on chairs,  
            strollers) from meeting the flammability requirements of TB  
            117-2013.  (Article 13, Division 3, Title 4, CCR § 1374.2)


          12)Prohibits a person from manufacturing, processing, or  
            distributing in commerce a product or part of a product that  
            contains more than 1/10th of 1% of pentaBDE or octaBDE (types  
            of polybrominated diphenyl ethers, or "PBDEs"), except as  
            specified.  (Health and Safety Code § 108922)









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          THIS BILL: 


          13)Defines the following terms: 

             a)   "Component" is the separate constituent parts of  
               juvenile products sold in California, specifically cover  
               fabrics, barrier materials, resilient filling materials,  
               and plastic parts.

             b)   "Juvenile product" is a product subject to the Act and  
               intended for use by infants and children under 12 years of  
               age, including: bassinets, booster seats, infant car seats,  
               changing pads, floor play mats, highchairs, highchair pads,  
               infant bouncers, infant carriers, infant seats, infant  
               swings, infant walkers, nursing pads, nursing pillows,  
               playpen side pads, playards, portable hook-on chairs,  
               strollers, children's nap mats, and infant foam crib  
               mattresses.  Provides that products subject to the  
               upholstered furniture labeling requirements are not subject  
               to this bill, and that a "juvenile product" does not  
               include products required to meet federal flammability  
               standards for mattresses and mattress pads. 

             c)   "Added flame retardant chemicals" are flame retardant  
               chemicals that are present in any juvenile product or  
               component thereof at levels above 1,000 parts per million.

             d)   "Flame retardant chemicals" are any chemical, as  
               defined, or chemical compound for which a functional use is  
               to resist or imbibe the spread of fire, including  
               halogenated, phosphorus-based, nitrogen-based, and  
               nanoscale flame retardants, flame retardant chemicals  
               listed as "designated chemicals" pursuant to the California  
               Environmental Contaminant Biomonitoring Program, and any  
               chemical or chemical compound for which "flame retardant"  
               appears on the substance Safety Data Sheet (SDS) pursuant  
               to federal regulations. 








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          14)Requires a manufacturer of juvenile products to have a label  
            securely attached to the product, in plain view, stating  
            whether or not the fabric, filling, and plastic parts of the  
            product contain added flame retardant chemicals, as specified.  


          15)Requires retailers of juvenile products sold through paper  
            catalogs or online in California to place the flame retardant  
            chemical statement clearly and conspicuously, and in close  
            proximity to the juvenile product's price on each page, or  
            webpage, that contains a detailed description of the juvenile  
            product and its price. 

          16)Requires a manufacturer of juvenile products sold in  
            California to retain documentation to show whether flame  
            retardant chemicals were added.  Provides that a written  
            affidavit by the supplier of each component of a juvenile  
            product attesting that flame retardant chemicals were or not  
            added is sufficient documentation.

          17)Requires the Bureau to ensure compliance with these labeling  
            and documentation requirements, and requires, within 30 days  
            of a request by the Bureau, a manufacturer of a juvenile  
            product sold in California to provide the Bureau with  
            documentation establishing the accuracy of the flame retardant  
            chemical statement on the label.

          18)Authorizes the Bureau to assess fines of not less than $2,500  
            and not more than $15,000, depending on specified factors, for  
            the failure of the manufacturer of the juvenile product to  
            maintain the documentation required or to provide requested  
            documentation to the Bureau.

          19)Requires the Bureau to provide the California Department of  
            Toxic Substances Control (DTSC) with samples of components of  
            the product from products marked "contains NO added flame  
            retardant chemicals" for testing for the presence of added  
            flame retardant chemicals, as specified.








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          20)Requires DTSC to provide the results of all testing to the  
            Bureau, and the Bureau to reimburse the DTSC for the costs of  
            testing.  Requires the Bureau to assess available resources no  
            later than August 1 of each fiscal year and determine the  
            number of tests to be conducted in the corresponding fiscal  
            year.

          21)Authorizes the Bureau, if the DTSC's testing shows that a  
            juvenile product is mislabeled because it contains added flame  
            retardant chemicals, to assess fines for violations against  
            manufacturers of the juvenile product and component  
            manufacturers to be held jointly and severally liable for the  
            violation.  Also authorizes the Bureau to request that the  
            label that belong to the same stock keeping unit (SKU)  
            currently produced by the manufacturer be corrected to reflect  
            that flame retardant chemicals are added to the product.

          22)Authorizes the Bureau to assess fines between $2,500 to  
            $10,000, depending on specified factors, or for mislabeling a  
            product.  

          23)Requires the Bureau to adjust all minimum and maximum fines  
            imposed by these provisions for inflation every five years.

          24)Requires the Bureau to make information about any citation  
            issued pursuant to these provisions on the Bureau's website,  
            specifies that it is the duty of the Bureau to receive  
            complaints from consumers regarding juvenile products sold in  
            California, and authorizes the Bureau to adopt regulations to  
            carry out the provisions of the bill.

          25)Provides that fire retardant requirements shall not apply to  
            juvenile products.

          FISCAL EFFECT:  According to the Senate Appropriations Committee  
            Analysis dated 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  








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            enforcement of these requirements, including testing for label  
            accuracy."

          COMMENTS:  


          Purpose.  This bill is sponsored by the  California Professional  
          Firefighters  , the  Center for Environmental Health  , and the  
           Consumer Federation of California  .  According to the author,  
          "This bill requires manufacturers of specific children's  
          products to disclose on a label whether or not the product  
          contains added flame retardant chemicals.  Infants and small  
          children spend hours in close contact with items such as  
          changing pads, nursing pillows, and strollers.  This label will  
          only apply to a narrow class of products that have a history of  
          containing flame retardants in their foam fillings?.Flame  
          retardant chemicals are associated with cancer, decreased  
          fertility, hormone disruption, lower IQ, and hyperactivity.   
          When these chemicals burn, they release dioxin and furans-some  
          of the most toxic chemicals known to science-that put  
          firefighters at high risk for cancer and other serious  
          conditions.  Finally, fire reporting data has raised questions  
          as to whether flame retardants actually provide additional fire  
          safety.  



          As a result of growing public concern, California recently moved  
          away from the open flame test.  The change to a more reasonable  
          smolder test enables manufacturers to meet fire safety with or  
          without the use of flame retardant chemicals.  SB 1019 (Leno)  
          gave consumers a way to know if furniture contains flame  
          retardant chemicals.  However, the SB 1019 label doesn't apply  
          to these child and infant products, since they pose little or no  
          fire risk and were exempted from California's flammability  
          standard.  Testing has proven that exemption from the  
          flammability standard does not mean products are free from flame  
          retardant chemicals.  Parents simply don't know, and lack the  
          information they need to send an important market signal?.SB 763  








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          allows for the free market to operate at its best- when  
          consumers have the knowledge to seek out and purchase what they  
          want?. SB 763 simply gives consumers a way to make informed  
          choices and protect children from harm."  
          Background.  The California Bureau of Home Furnishings and  
          Thermal Insulation (BHFTI) was established in 1911 (AB 547  
          (Ryan), Chapter 73, Statutes of 1911) in response to  
          unscrupulous manufacturing practices in the mattress industry,  
          which contributed to the fires following the 1906 San Francisco  
          earthquake.  BHFTI's jurisdiction was later expanded to include  
          upholstered furniture and other bedding and insulation products.  
           To ensure public safety, BHFTI's licensing population was  
          broadened to include retailers, wholesalers and importers in  
          order to remove dangerous product from the market.  BHFTI also  
          certifies thermal insulation products and publishes an annual  
          directory of those products.  In 2009, ABX4 20 (Strickland),  
          Chapter 18, Statutes of 2009-10, merged BHFTI with the Bureau of  
          Electronic and Appliance Repair together to create the Bureau.  



          California is one of only two states (Ohio is the other) that  
          have product testing laboratories.  California leads the nation  
          in setting industry standards and for its technical expertise in  
          testing and classifying filling materials found in furniture and  
          bedding.  These standards affect the products that are sold  
          across the country, because manufacturers typically produce  
          items that meet California's standards, and distribute those  
          items to the rest of the nation.  The Bureau has access to, and  
          may inspect and test, any article of upholstered furniture,  
          bedding, or insulation, and may condemn, seize, or destroy any  
          of those products that are in violation of the law.  While  
          companies do not need to have their products tested to receive a  
          license, staff may select items for testing to determine if  
          products are in compliance.  The Bureau's laboratory tests  
          roughly 300 samples of upholstered furniture, mattresses,  
          bedding, plumage (feather and down), and thermal insulation each  
          year, and upholstered furniture and mattresses make up the  
          largest share of those samples.  








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          TB 117 and TB 117-2013.  In 1975, California adopted  
          flammability standard TB 117, which required that each component  
          material (such as polyurethane foam) be able to withstand a  
          small open flame, equivalent to a candle, for at least 12  
          seconds.  This performance-based standard did not prescribe the  
          use of flame retardant chemicals, manufacturing methods, or  
          specific materials to meet the standards.  However, furniture  
          manufacturers typically meet TB 117 by treating materials with  
          flame retardants comprised of halogenated compounds.  California  
          is the only state to have established such a standard, but many  
          manufacturers have chosen to meet TB 117 in products that they  
          distribute across the United States.  Significant concern has  
          been raised in recent years with the environmental and health  
          impacts of the flame retardant chemicals that are used to meet  
          the standard. 

          In 2012, Governor Brown directed the Bureau to revise  
          flammability standards for upholstered furniture sold in the  
          state.  According to a statement from the Governor's office,  
          "Toxic flame retardants are found in everything from high chairs  
          to couches and a growing body of evidence suggests that these  
          chemicals harm human health and the environment," stated  
          Governor Brown.  "We must find better ways to meet fire safety  
          standards by reducing and eliminating wherever possible  
          dangerous chemicals."

          In addition to the environmental and health concerns, the Bureau  
          believed that the existing standard did not adequately address  
          the flammability performance of upholstered furniture in an  
          actual fire. In an actual fire, upholstery cover fabric is the  
          first item to ignite, and then exposes the foam underneath to a  
          much larger flame.  The current small open flame testing method  
          does not reflect real-world scenarios.  As a result, the Bureau  
          published TB 117-2013, a revised standard, to test upholstered  
          furniture for smolder ignition, which is the predominant source  
          of fires today.  

          TB117-2013 is a "semi-composite" test in which components are  








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          combined with standard test materials to construct a test  
          specimen.  The standards were crafted based on a comprehensive  
          review, statewide workshops, and public comment, which included  
          over 30,000 comments in support, and a petition that reached  
          over 68,000 signatures in support.  Manufacturers have indicated  
          that they can comply with TB 117-2013 without the use of flame  
          retardant chemicals.  The new TB117-2013 became effective on  
          January 1, 2014, and manufacturers were required to come into  
          full mandatory compliance on January 1, 2015.    

          Exempt Products.  BPC 19161.5 authorizes the Bureau Chief,  
          subject to the approval of the DCA Director, "?to exempt items  
          of upholstered furniture which are deemed not to pose a serious  
          fire hazard" from fire retardant requirements.  Recently, the  
          Bureau, after examining the low flammability risk associated  
          with juvenile products (which tend to use less filling materials  
          and less flammable materials, and are frequently used under care  
          and supervision of adults), has exempted specified juvenile  
          products from toxic flame retardant requirements. In 2010, the  
          Bureau exempted strollers, infant carriers, and nursing pillows  
          from TB 117 standards (4 CCR 1374.2).  Effective January 1,  
          2014, the Bureau exempted an additional 15 juvenile products,  
          including: bassinets, booster seats, car seats, changing pads,  
          floor play mats, highchairs, highchair pads, infant bouncers,  
          infant seats, infant swings, infant walkers, nursing pads,  
          playpen side pads, play yards, and portable hook-on chairs.  In  
          addition, while the Bureau used to require exempt products to  
          display a label that stated the product was exempt from TB 117,  
          exempt products are no longer required to have that label.  

          According to the author, while many juvenile products are exempt  
          from flammability standards, tests have found that flame  
          retardants chemicals are still present in juvenile products that  
          are in close contact with infants and young children, including  
          nap mats, bassinets, changing pads, strollers, playpens, swings,  
          nursing pillows, highchairs, and toddler chairs. 
          Exposure to flame retardant chemicals.  People can be exposed to  
          flame retardants through several routes, including inhalation of  
          dust from consumer products in the home or workplace.  These  








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          chemicals are not chemically bonded to products, and mix with  
          household dust that is ingested, inhaled, or otherwise absorbed  
          into humans, pets, and wildlife.  As consumer products age,  
          small particles of material become dust particles in the air and  
          land on surfaces around the home, including the floor.  Young  
          children crawling and playing on the floor near contaminated  
          dust actually ingest these chemicals through their frequent  
          hand-to-mouth behavior.  As a result, young children have been  
          found to have 3-5 times higher levels of flame retardant  
          chemicals than their mothers.  Because many halogenated flame  
          retardants are fat-soluble, they accumulate in fatty areas such  
          as breast tissue and are mobilized into breast milk, delivering  
          high levels of flame retardants to breast-feeding infants.   
          Infants and toddlers are particularly exposed to flame  
          retardants found in breast milk and dust, and young children in  
          the United States tend to carry higher levels of flame  
          retardants per unit body weight than do adults.  Growing  
          evidence shows that many flame retardant chemicals have serious  
          human and environmental health impacts, including cancer,  
          decreased fertility, hormone disruption, lower IQ, and  
          hyperactivity.  



          Identifying Flame Retardant Chemicals.  In California, flame  
          retardants once commonly used have recently been listed as being  
          known to cause cancer or birth defects or other reproductive  
          harm under Proposition 65 or banned from use in the state.  One  
          of these flame retardants, polybrominated diphenyl ethers  
          (PBDEs), a brominated flame retardant, was frequently added to  
          upholstered furniture, despite being closely linked to another  
          flame retardant that was banned decades ago for being known to  
          be toxic.  PBDEs are the subject of many studies that link them  
          to thyroid disruption, memory and learning problems, delayed  
          mental and physical development, lower IQ, advanced puberty, and  
          reduced fertility.  In 2003, California enacted a ban on penta-  
          and octa-BDEs AB 302 (Chan), Chapter 205, Statutes of 2003, and  
          these flame retardants were voluntarily discontinued in the  
          United States after 2004.  After this ban, manufacturers turned  








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          to chlorinated tris (TDCPP), even though a similar flame  
          retardant was known as early as the 1970s to be toxic.  In 2011,  
          California listed TDCPP and TCEP, another chlorinated tris,  
          under Proposition 65.  
          While manufacturers have phased these specific flame retardants  
                                                                  out of their upholstered furniture products, conclusive studies  
          have not yet been completed on many other flame retardants, in  
          part because new formulations often arise, and as a result,  
          their human health and development affects are not completely  
          understood.  However, because many of these flame retardants are  
          molecularly similar, other types of flame retardants are  
          similarly linked to, and may be likely to cause, adverse health  
          effects.   

           For example, California's Environmental Contaminant  
          Biomonitoring Program, which identifies and monitors "designated  
          chemicals" and their metabolites that are present in the bodies  
          of Californians, or those chemicals that are "known to, or  
          strongly suspected of, adversely impacting human health or  
          development, based upon scientific, peer-reviewed animal, human,  
          or in vitro studies" include many of the chemicals that have  
          since been phased out of use.  These chemicals are the pool from  
          which the program's scientific guidance panel recommends  
          priority chemicals for biomonitoring.  As of June 2014, the  
          priority chemicals list included tens of dozens of brominated  
          and chlorinated organic compounds and their metabolites used as  
          flame retardants, of which close to half are various types of  
          PBDEs and PBDE metabolites.  As a result, while many flame  
          retardant chemicals have been identified as posing risk of  
          significant harm, e.g. certain PBDEs under state statute and  
          TDCPPs and TCEPs under Proposition 65, other flame retardants  
          with similar structures may continue to be used despite the  
          likelihood of causing similar health effects.  
          Prior 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, by including a  
          specified statement; required manufacturer to retain  
          documentation, as specified, of whether or not flame retardant  








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          chemicals were added to the product, and provide that  
          documentation to the Bureau; and authorized the Bureau to assess  
          fines for violations of the above provisions, as specified.


          AB 127 (Skinner), Chapter 579, Statutes of 2013, required the  
          State Fire Marshal, in consultation with the Bureau, to review  
          the flammability standards for building insulation materials,  
          including whether the flammability standards for some insulation  
          materials can only be met with the addition of chemical flame  
          retardants and requires, if deemed appropriate by the State Fire  
          Marshal based on this review, the State Fire Marshal to, by July  
          1, 2015, propose, for consideration by the Building Standards  
          Commission, updated insulation flammability standards.

          AB 2197 (Mitchell) of 2012 would have required BEARHFTI to  
          revise regulations to require all seating furniture sold or  
          offered for sale to meet a smolder flammability test rather than  
          an open flame-test.  STATUS: This bill was held in the Assembly  
          ESTM committee.  



          SB 147 (Leno) of 2011 would have required the Bureau, on or  
          before March 1, 2013, to modify the requirements for  
          flammability of residential upholstered furniture to include a  
          smolder flammability test as an alternative method of  
          compliance.  STATUS: This billed was held in the Senate  
          Committee on Business, Professions, and Economic Development.   
          The intent of this bill and AB 2197 of 2012 was implemented  
          through regulation through the adoption of TB 117-2013.

          SB 1291 (Leno) of 2010 would have required DTSC to include, as a  
          chemical under consideration in the Green Chemistry process, any  
          chemical that is used, or is proposed to be used, as a flame  
          retardant.  STATUS: This bill was held on the Senate Floor.  

          SB 772 (Leno) of 2009 would have exempted "juvenile products,"  
          as defined, from the fire retardant requirements pursuant to  








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          federal law and the regulations of the Bureau, except that the  
          Bureau could have, by regulation modified this exemption if the  
          Bureau determined that any juvenile products posed a serious  
          fire hazard.  STATUS: This bill was held in the Assembly  
          Appropriations Committee.  The provisions of SB 772 have been  
          largely implemented through regulation by BEARHFTI effective  
          December 29, 2010.  

          AB 706 (Leno) of 2008, commencing July 1, 2010, would have  
          required bedding products to comply with certain requirements,  
          including that they not contain a chemical or component not in  
          compliance with alternatives assessment requirements as  
          specified, and required the DTSC to develop and adopt  
          methodology for the coordination and conduct of an alternative  
          assessment to review the classes of chemicals used to meet the  
          fire retardant standards set by BEARHFTI and to meet other  
          requirements as specified.  STATUS: This bill was held on the  
          Senate Floor.  

          AB 302 (Chan), Chapter 205, Statutes of 2003, banned the use of  
          penta and octa PBDEs after January 1, 2008.
          ARGUMENTS IN SUPPORT: 


          The  California Professional Firefighters Association  (sponsor)  
          states, "SB 763 provides consumers a pathway to exercise a  
          choice in purchasing safer juvenile products, which, in turn,  
          creates a direct and positive impact on the reduction of toxic  
          exposures to firefighters....It's important to note that SB  
          763's leading opponent -the American Chemical Council (ACC),  
          which is the chemical industry's trade association - has a $5  
          billion per year vested financial interest in the continued use  
          of flame retardant chemicals?.In recent years, ACC has taken its  
          profit-driven, misinformation campaign on the road, going from  
          statehouse to statehouse in an effort to beat back legislation  
          aimed at disclosing these harmful chemicals and strengthening a  
          consumer's right-to-know?.The opponents' deceptive tactics have  
          repeatedly been called out time and again, particularly for the  
          use of paid consultants shopping suspect conclusions." 








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          The  Center for Environmental Health (CEH)  (sponsor) writes that,  
          "While manufacturers no longer have to meet a flammability  
          standard, there is nothing that prohibits the use of flame  
          retardant chemicals in children's products.  CEH has conducted  
          testing of juvenile products and found flame retardant chemicals  
          in numerous juvenile products including children's nap mats,  
          changing pads, and infant carriers (as worn by parents)?.Flame  
          retardant chemicals can migrate out of products into air and  
          dust where children are exposed to them.  These chemicals are  
          associated with a variety of health concerns, including cancer,  
          lower birth weight, decreased fertility, hormone disruption,  
          lower IQ, and hyperactivity.  Due to children's frequent  
          hand-to-mouth behavior, young children have 3-5 times higher  
          levels of certain flame retardants than their mothers.  It is  
          also of great concern that children of color and children from  
          low-income communities have the highest exposure?.Exposure to  
          toxic chemicals during these critical windows of development can  
          cause subtle changes and permanently alter their development and  
          cause adverse health effects?.Without this type of label it will  
          be impossible for parents to identify products that either do or  
          [do] not contain flame retardant chemicals?.Juvenile products  
          are routinely handed down to family and friends as well as  
          donated to thrift stores, so the ability of these second-hand  
          users to identify products that do or do not contain family  
          retardant chemicals is essential.  It will also provide  
          businesses a standard format to communicate the information to  
          families."



          The  Consumer Federation of California  (sponsor) writes, "SB  
          763's proposed disclosures would provide uniform information to  
          consumers in a simple and accessible manner?.SB 763 will ensure  
          that the public is able to make informed choices, as consumers  
          currently have no way of knowing whether a child's product  
          contains fire retardant chemicals?.Consumers are demanding  
          products without added flame retardants, and currently, they  








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          have absolutely no way to evaluate one product versus another.   
          Without a label indicating the presence of flame retardant  
          chemicals, consumers are not able to send market signals based  
          on their purchasing preferences?.Consumers have a right to know  
          whether harmful substances are present in bassinets, playpens,  
          carriers, and other items that are in immediate contact with  
          their kids as they crawl on the floor or put products in their  
          mouths."
          A number of supporters, including  Breast Cancer Action  ,  Breast  
          Cancer Fund  ,  California League of Conservation Voters  ,  
           Californians for a Healthy and Green Economy ,  Center for  
          Environmental Health  ,  Coalition for Clean Air  ,  Environmental  
          Working Group  ,  Instituto de Educación Popular del Sur de  
          California  ,  Pesticide Action Network North America  ,  Physicians  
          for Social Responsibility - Los Angeles  ,  San Francisco Bay Area  
          Physicians for Social Responsibility  , and  Southern California  
          Coalition for Occupational Safety and Health  write in support,  
          "Manufacturers are able to product safe products without adding  
          toxic flame retardants, yet families have no way of knowing  
          whether a child's product does or does not contain  
          them?.Families have a right to know if the products they  
          purchase for young children contain flame retardant chemicals."


          ARGUMENTS IN OPPOSITION:


          The  Juvenile Products Manufacturers Association (JPMA)  also  
          writes, "In 2013, the [Bureau], in conjunction with the JPMA,  
          concluded that the juvenile products identified in SB 763 were  
          unnecessarily subject to flammability standards as they do not  
          pose a serious fire hazard.  [the Bureau] then exercised its  
          authority to exempt these products from their flammability  
          standards, as specified in the [BPC].  At the same time in 2013,  
          the [Bureau] also removed the labeling requirements for these  
          exempted products stating that 'an exemption label is  
          unnecessary and unduly burdensome on manufacturers.' SB 763  
          would subject companies that do not use flame retardants and are  
          not presently subject to labeling requirements, to comply with a  








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          new regulatory program that requires record keeping and testing  
          data when no potential harm exists.  This requirement would add  
          significant burdens to companies?. JPMA believes it is very  
          important that labeling requirements provide information to the  
          consumer that is easily understood and does not dilute the  
          message it is trying to convey. This can be accomplished in SB  
          763 by removing the labeling requirement for products and  
          components that do not contain intentionally added flame  
          retardants."  


           The  California Retailers Association  state, "While each retailer  
          has a different approach on how products are branded and  
          presented to consumers on a retail website or catalog, there  
          still is a specific format that has been widely adopted to  
          assist in the facilitation of e-commerce sales.  The disclosure  
          statement mandates in SB 763 significantly deviates from the  
          format most major retail websites follow?.It is uncertain how  
          manufacturers would comply with SB 763.  Retailers rely on  
          information from manufacturers when creating item descriptions.   
          This bill will require retailers to adopt complex processing  
          practices of merchandise in order to comply with the law?.SB 763  
          creates a significant administrative burden and requires onerous  
          and confusing processing of juvenile products only for  
          California."


          A joint letter of opposition by the  American Chemistry Council  ,  
           California Chamber of Commerce  ,  California Manufacturers and  
          Technology Association  ,  California Citizens Against Lawsuit  
          Abuse  ,  California Retailers Association  ,  Chemical Industry  
          Council of California  ,  Civil Justice Association of California  ,  
          and the National Federation of Independent Business  argues that  
          these new requirements "?lack scientific justification, conflict  
          with existing California consumer product and chemical safety  
          laws and regulations, and as a result, mislead consumers about  
          the potential safety of these products?.California should  
          recognize that there are many different types of flame  
          retardants with different exposure, health and environmental  








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          profiles. Yet, under SB 763, manufacturers would be required to  
          label whether their product contains a flame retardant  
          regardless of whether the particular chemical presents any  
          meaningful risk to human health or the environment?.SB 763  
          circumvents [Proposition 65's] entire process and undermines the  
          public policy basis for the process by requiring manufacturers  
          to label their products regardless of whether the available  
          scientific evidence justifies such action?The bill also  
          sidesteps the implementation of the Safer Consumer Products  
          regulation (e.g. "Green Chemistry") by the Department of Toxic  
          Substances Control?.[Also,] SB 763 would impose a new labeling  
          requirement on these same products the Bureau has determined are  
          not required to meet the flammability standard and has  
          determined no label is necessary."


          POLICY ISSUES: 


          Labeling Requirements for Products without Flame Retardants.   
          The author asserts that having labels on products without flame  
          retardants are just as important to consumers, in order that  
          they be fully informed and make choices based on having complete  
          information.  The sponsors also assert that the label is  
          necessary because tests have shown that some components continue  
          to have flame retardant chemicals, and that the only way to  
          determine whether or not these chemicals exist is to require  
          manufacturers to know and to label them as such.  For example,  
          if a consumer is looking at two products, one with a label that  
          says flame retardants are present, and another that has no  
          label, how will a consumer know that the one without the label  
          has no flame retardants?  A consumer may assume the product is  
          categorized differently, or may have simply violated a labeling  
          requirement, instead of being able to know conclusively whether  
          flame retardants are present or not.  The sponsors also assert  
          that labels will make it easier for those who use second hand  
          goods to know whether their product contains flame retardants.   
          The author also asserts that requiring a label on all products  
          will help the Bureau implement these provisions by making it  








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          easier for the Bureau to identify and enforce violations of the  
          Act-a person who mislabels a product cannot claim that he or she  
          did not know about the labeling requirement.


          However, opponents of this provision believe that requiring a  
          label is burdensome because many products sold in California are  
          also sold across the country, so it would effectively require a  
          manufacturer to label all products for sale across the country.   
          Opponents also believe that requiring a label on all products  
          will actually serve the opposite purpose: instead of drawing  
          consumers to those products, as the author alleges, such a label  
          will drive those consumers to other products, or confuse  
          consumers.  Opponents believe that because these products are  
          already exempt, and many manufacturers are moving away from  
          using flame retardants, the same affect could be achieved if  
          manufacturers were still subject to the same provisions for  
          mislabeling a product.  Opponents also assert that if products  
          without flame retardants are required to be labeled, there may  
          be less of an incentive for manufacturers to reformulate their  
          components to avoid having the label, as some manufacturers do,  
          for example, to avoid the Proposition 65 warnings. 


          While it may be difficult to determine exactly what consumers  
          want or how knowledge of flame retardants may sway their  
          purchasing decisions, i.e., whether consumers prefer juvenile  
          products with added flame retardants, the Committee may wish to  
          consider whether it is appropriate to first equip consumers with  
          that information prior to making that decision. 


          Online and Paper Catalog Notifications.  Unlike SB 1019 from  
          last year, this bill would also require a statement of whether  
          flame retardants are present to be included in online sales and  
          in paper catalogs.  While it may not be common practice for the  
          Legislature to mandate specified statements on certain  
          purchases, the state is currently looking at similar  
          requirements for Proposition 65 warnings in pending regulations.  








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          Based on concerns that such notice requirements for online sales  
          and paper catalog sales may expose retailers to too much  
          liability, and restrict or complicate existing business  
          practices for retailers, the author may wish to consider  
          deleting the notice requirement for online and paper catalog  
          sales.  


          Delayed Implementation and Clarifications.  In order to provide  
          manufacturers sufficient time to meet the requirements under  
          this bill, the author may wish to consider delaying the  
          operative date until July 1, 2016. In addition, the author may  
          wish to clarify that the use of electronic components with flame  
          retardant chemicals, for example, circuit boards, wiring, and  
          power cords, does not subject a manufacturer to the labeling  
          requirement. 


          AMENDMENT(S): 


          1)On page 6, strike lines 1-17 relating to online and paper  
            catalog sales.
          2)On page 9, add subdivision (f)  Electric and electronic units  
            or components, including, but not limited to, power cords or  
            power supply units, motor assemblies, blue tooth modules,  
            vibration units, light and sound units, circuit boards and  
            wiring, are excluded when determining whether a product  
            contains added flame retardants for purposes of the labeling  
            requirements of this section. The Bureau Chief may, at his or  
            her discretion, subject to the approval of the Director of  
            Consumer Affairs, clarify this list in regulation."  


          3)On page 9, add subdivision (g)  This section shall apply to  
            juvenile products manufactured after July 1, 2016, for retail  








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            sale in the state.  


          REGISTERED SUPPORT:


          California Professional Firefighters (sponsor)
          Center for Environmental Health (sponsor)
          Consumer Federation of California (sponsor)
          American Congress of Obstetricians and Gynecologists, District  
          IX California 
          Alameda County Board of Supervisors
          Alliance for Toxic Free Fire Safety (ATFFS)
          Association of Regional Center Agencies
          BANANAS
          Breast Cancer Action
          Breast Cancer Fund
          (CAL FIRE Local 2881)
          California League of Conservation Voters
          Californians for a Healthy & Green Economy 
          CALPIRG
          Center for Environmental Health
          Child Care Coordinating Council of San Mateo County (4Cs)
          City and County of San Francisco, Department of the Environment 
          City and County of San Francisco, Mayor Edwin Lee 
          Clean Water Action
          Coalition for Clean Air
          Community Action Partnership of Madera County 
          Consumer Attorneys of California
          Dignity Health
          Earthjustice
          Environment California 
          Environmental Working Group
          First 5 Santa Clara County
          Friends of the Earth
          Go Kids
          Grant David Gillham, Inc.
          Health Care Without Harm
          Instituto de Educación Popular del Sur de California








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          International Association of Fire Fighters
          Latinas Contra Cancer
          Mommy Greenest 
          Natural Resources Defense Council (NRDC)
          Naturepedic
          Pathway LA
          Pesticide Action Network North America
          Physicians for Social Responsibility - Los Angeles 
          Plumas Rural Services
          San Francisco Bay Area Physicians for Social Responsibility (SF  
          Bay Area PSR)
          SoCalCOSH
          Trauma Foundation



          REGISTERED OPPOSITION:


          American Chemistry Council
          California Chamber of Commerce
          California Citizens Against Lawsuit Abuse
          California Manufacturers and Technology Association
          California Retailers Association 
          Chemical Industry Council of California 
          Civil Justice Association of California 
          Juvenile Products Manufacturers Association
          National Federation of Independent Business
          Southwest California Legislative Council 



          Analysis Prepared by:Eunie Linden / B. & P. / (916) 319-3301.














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