BILL ANALYSIS                                                                                                                                                                                                    



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          ASSEMBLY THIRD READING
          AB 1656 (Ma and Lieu)
          As Amended March 23, 2010
          Majority vote 

           JUDICIARY           9-0                                         
           
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          |Ayes:|Feuer, Tran, Brownley,    |     |                          |
          |     |Skinner, Hagman, Jones,   |     |                          |
          |     |Knight, Lieu, Monning     |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
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           SUMMARY  :  Requires all clothing apparel for sale in this state  
          that contains genuine animal fur, regardless of price or value  
          of the fur, to carry an attached tag or label stating the animal  
          from which the fur was acquired and the country of origin of any  
          imported fur.  Specifically,  this bill  :   

          1)Prohibits any person from selling or displaying for sale any  
            clothing apparel containing any amount of animal fur,  
            regardless of the overall price or value of the fur, without  
            an attached and conspicuously displayed tag or label that  
            states the animal from which the fur was acquired and the  
            country of origin of any imported furs used.

          2)Defines "fur" to mean any animal skin or part thereof with  
            hair, fleece, or fur fibers attached thereto, either in its  
            raw or processed state.

          3)Defines "clothing apparel" to mean any articles of clothing or  
            covering for any part of the body.

          4)Provides that labeling of clothing apparel pursuant to this  
            bill may be accomplished by adding the required disclosures to  
            the permanent tag attached to the clothing, to the temporary  
            tag used by the merchant to identify the merchandise, or by  
            affixing to the article of clothing, in a conspicuous place, a  
            sticker listing the required disclosures.

          5)Exempts sellers of used articles of clothing made wholly or  
            partly of animal fur from these labeling requirements.









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          6)Provides that each article of clothing not labeled pursuant to  
            these requirements constitutes a separate violation of this  
            act, subject to a civil penalty of not more than $500 for the  
            first violation, and not more than $1,000 for each subsequent  
            violation.

          7)Provides that a retail merchant is not liable for a violation  
            if a manufacturer or supplier for the merchant certifies to  
            that merchant, in the invoice or other written document, that  
            any tag or label attached by the manufacturer or supplier  
            conforms to these labeling requirements, unless the retail  
            merchant knew, or reasonably should have known, that the  
            certification is false.

          8)Provides that nothing in this bill shall be construed to  
            preempt any federal law, or any other statute that prohibits  
            or restricts the sale of fur products.  Further provides that  
            if any provision of this bill is held to be preempted by  
            federal law, the preemption shall not affect other provisions  
            of this bill that can be given effect.

          9) If enacted, becomes operative on September 1, 2011.

           EXISTING LAW  :  

          1)Pursuant to the federal Fur Products Labeling Act (15 U.S.C.  
            69), prohibits the manufacture for sale, sale, advertising,  
            transportation, or distribution of  any fur product which has  
            been shipped and received in commerce, and which is misbranded  
            or falsely or deceptively advertised or invoiced, as defined.   
            These and other related acts are deemed unlawful and  
            constitute unfair methods of competition, and unfair and  
            deceptive practices in commerce under the Federal Trade  
            Commission Act.

          2)Pursuant to Section 301.39 of Title 16 of the Code of Federal  
            Regulations, provides that if the cost of any fur trim or  
            other manufactured fur or furs contained in a fur product does  
            not exceed $150 to the manufacturer of the finished fur  
            product, or if a manufacturer's selling price of a fur product  
            does not exceed $150, then the fur product shall be exempt  
            from the requirements of the Fur Products Labeling Act.  

           FISCAL EFFECT  :  None








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           COMMENTS  :  This bill, sponsored by the Humane Society of the  
          United States, seeks to require all clothing apparel for sale in  
          this state that contains genuine animal fur, regardless of  
          price, to carry an attached tag or label stating the animal from  
          which the fur was acquired and the country of origin of any  
          imported fur.  According to the sponsor, this bill is intended  
          to "close a loophole" in federal law that exempts fur-trimmed  
          garments valued at less than $150 from the requirement to  
          display information about the animal fur on the label of the  
          garment.  Federal law specifically exempts fur products from  
          labeling requirements if the cost of the fur contained in the  
          fur product does not exceed $150 to the manufacturer of the  
          finished fur product, or if the manufacturer's selling price of  
          a fur product does not exceed $150.  

          In addition to extending labeling requirements to every fur  
          garment for sale in the state, regardless of price or value of  
          the fur, this bill specifies two pieces of information appear on  
          the label itself: 1) the animal from which the fur was acquired;  
          and 2) the country of origin of any imported furs used in the  
          item.  Federal law already requires both of these items to  
          appear on the label of every fur product subject to the  
          regulations, in addition to the name of the manufacturer and  
          other disclosures about fur composition, if applicable.   
          Consistent with its stated purpose to simply close the $150  
          federal "loophole" in California, this bill does not require  
          more information to appear on the label than is already required  
          under federal law, nor does it attempt to restrict the  
          manufacture or sale of fur garments.  

          Ultimately, this bill will eliminate the abundance of unlabeled  
          fur garments for sale that pose particular problems for  
          consumers with allergies and ethical objections to items  
          containing real animal fur.  Many garments contain animal fur  
          that has been dyed in non-natural colors, such as pink, red, or  
          blue, with the result that the fur appears fake and can easily  
          be mistaken for faux fur unless accurately labeled.  This bill  
          will particularly benefit consumers who are allergic to any or  
          all types of real animal fur by enabling them to identify and  
          purchase garments made of faux fur or real fur that does not  
          trigger an allergic reaction.  Similarly, this bill will benefit  
          consumers who have ethical objections to real fur or fur farming  
          practices in other countries by facilitating an informed  








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          purchasing decision with peace of mind.

          This bill prohibits the sale or display for sale of "any coat,  
          jacket, garment, or other clothing apparel made wholly or  
          partially of fur" unless specified labeling requirements are  
          met.  The definition of the term "clothing apparel" makes it  
          clear this bill is not intended to apply fur labeling  
          requirements to handbags or purses, but only to articles of  
          clothing or covering for any part of the body.

          Although the Federal Fur Labeling Act does not specifically  
          authorize states to adopt more restrictive labeling requirements  
          for fur products, the Judiciary Committee's research has not  
          identified any successful challenges to state fur labeling laws  
          on federal preemption grounds.  In two of the five states  
          (Delaware and New Jersey) that have passed state fur labeling  
          laws, those laws do not become effective until later this year.   
          In 2006, New York became the first state to specifically pass a  
          law to close the federal loophole, and no preemption challenge  
          to that law has been identified at this time.  In any case, this  
          bill specifically provides that none of its provisions shall be  
          construed to preempt any federal law, or any other statute that  
          prohibits or restricts the sale of fur products.  If any  
          provision is held to be preempted by federal law, it is  
          severable from other provisions that can be given effect.  

          This bill relieves a retail merchant from liability for any  
          violation of these provisions if the manufacturer or supplier  
          for that merchant certifies in writing that any tag or label  
          attached by the manufacturer or supplier conforms to these  
          labeling requirements.  The immunity does not apply if the  
          retail merchant knew, or reasonably should have known, that the  
          certification is false.  This non-liability provision, which  
          mirrors those contained in the recent New Jersey law, allows  
          retailers to rely on written certification from their  
          manufacturers or suppliers of fur apparel that any attached tags  
          or labels, if provided, comply with labeling requirements.  This  
          is reasonable because manufacturers and suppliers are in a  
          better position than retailers to know what type of animal fur  
          was used in the garment (if in fact real animal fur was used)  
          and from what country the fur came from, if imported.  Although  
          there is no requirement that the manufacturer or supplier attach  
          the required tags or labels, retailers have some business  
          leverage to encourage this practice because they could  








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          presumably choose to engage less with any manufacturer or  
          supplier who does not label or certify their fur products.

          In order to afford manufacturers and retailers in California  
          more time to adopt practices to comply with these labeling  
          requirements, the author has amended the bill to become  
          operative on September 1, 2011, if enacted, rather than the  
          original date of January 1, 2011.


           Analysis Prepared by  :    Anthony Lew / JUD. / (916) 319-2334 

                                                                FN: 0003781